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2020-01-22 Finance Committee Agenda Packet - Open SessionCity of Saint John Finance Committee - Open Session AGENDA Wednesday, January 22, 2020 4:30 pm 8th Floor Common Council Chamber (Ludlow Room), City Hall 1. Call to Order Pages 1.1 Approval of Minutes - December 3, 2019 1 -4 1.2 Emergency Response Simulation Project 5-37 1.3 Agreement with N B Power - Backup Fire Protection Service 38-59 1.4 Request to RDC to Share Cost of Seawall 60-63 1.5 Understanding Consolidated Financial Statements 64-72 1.6 2020 General Operating Budget Resolution 73-75 Finance Committee Meeting Open Session December 3, 2019 MINUTES — OPEN SESSION FINANCE COMMITTEE MEETING DECEMBER 3, 2019 AT 4:45 PM Stn FLOOR COMMON COUNCIL CHAMBER (LUDLOW ROOM), CITY HALL Present: Mayor D. Darling Councillor D. Merrithew Councillor S. Casey Councillor D. Reardon Councillor G. Sullivan Councillor G. Norton Also Present: City Manager J. Collin Deputy City Manager N. Jacobsen Commissioner of Finance and Treasurer K. Fudge Comptroller Finance C. Graham City Solicitor J. Nugent Deputy Commissioner Administrative Services I. Fogan Commissioner Growth & Community Development J. Hamilton Commissioner Saint John Water B. McGovern Fire Chief K. Clifford Commissioner Transportation & Environment Services M. Hugenholtz Senior Financial Manager C. Lavigne Senior Financial Manager D. Arbour Deputy Common Clerk P. Anglin Administrative Assistant K. Tibbits 1. Meeting Called To Order Councillor Merrithew called the Finance Committee open session meeting to order. 1.1 Approval of Minutes — November 20, 2019 Moved by Councillor Norton, seconded by Councillor Sullivan: RESOLVED that the minutes of November 20, 2019 be approved. MOTION CARRIED. 1.2 Low Carbon Economy Fund (LCEF) Presentation — Funding Agreements 1.2.1 Low Carbon Economv Fund (LCEF) Aereement — Municir)al Buildines Deer) Ener Retrofit (MBDER) 1.2.2 Low Carbon Economv Fund (LCEF) Agreement — District EnerRv Svstem (DES) Proiect Mr. Yammine reviewed the submitted presentation entitled, "City of Saint John Low Carbon Economy Fund (LCEF)" and provided an overall description of the projects. Moved by Mayor Darling, seconded by Councillor Reardon: 1 1 Finance Committee Meeting Open Session December 3, 2019 RESOLVED that the Finance Committee recommends that Common Council approve the following: That the City enter into the Grant Agreement with Her Majesty the Queen in Right of Canada, as represented by the Minister of the Environment who is responsible for the Environment and Climate Change Canada under the Low Carbon Economy Fund for the District Energy System and Municipal Buildings Deep Energy Retrofit Projects in the form and upon the terms and conditions as submitted; and that the Mayor and Common Clerk be authorized to execute the said Agreement. MOTION CARRIED. 1.3 Reserve Fund Mr. Fudge noted that there is legislation prescribing that any transfers into a reserve or withdrawals from a reserve requires a resolution of Council. Moved by Councillor Sullivan, seconded by Councillor Reardon: RESOLVED that as recommended by the City Manager in the submitted report entitled "Reserve Fund", the Finance Committee recommends that Common Council approve the transfer of: • $120,000 to an Operating Reserve to cover the cost of finishing the City's website project; • $80,000 to the General Capital Reserve to fund a Solid Waste Pilot Project; • $290,244 to the General Capital Reserve to fund two Saint John Fire projects (CAER Initiative and Industrial Hygiene); • $1,334,500 to an Operating Reserve to cover the cost of the City's restructuring plan. MOTION CARRIED. 1.4 Long -Term Financial Plan Policy Mr. Fudge stated that the Long -Term Financial Plan Policy is foundational to ensure that Councils are committed to strong fiscal management. This is an umbrella policy that covers all of the City's financial policies and demonstrates the Finance Committee and Common Council's commitment to financial management, adherence to financial policies, the efficient use of tax payer funds and accountability to the public on the City's financial management. It also implements the requirement of a two -third vote of Council to change any of the best practice financial policies. Moved by Councillor Sullivan, seconded by Councillor Reardon: RESOLVED that as recommended by the City Manager in the submitted report "Long -Term Financial Plan Policy" the Finance Committee recommends that Common Council approve the long-term Financial Plan Policy FAS -020. MOTION CARRIED. 1.5 Long -Term Financial Plan Mr. Fudge commented on the City's first long-term financial plan. The development of this policy, approval of multi-year budgets and setting targets, has spurred a change in culture. The roadmap to financial health and financial sustainability is addressed in this long-term financial plan. Financial management of the City will no longer be conducted on an annual basis through an annual budget process. Ms. Arbour presented a base case scenario, using assumptions supported by strong data and realistic assumptions for growth and inflation; and a stretch goal scenario. The belief is that 2 K Finance Committee Meeting Open Session December 3, 2019 these stretch goals are very attainable with a targeted focus on growth and critical municipal reform. Mr. Collin noted that development of a comprehensive continuous improvement framework is on-going and will change standard practices, although the notion of improving processes is encouraged daily. There is no doubt that there is a culture of continuous improvement within the City. Moved by Mayor Darling, seconded by Councillor Sullivan: RESOLVED that the Finance Committee endorse the presentation and direct staff to complete the Long -Term Financial Plan report to be presented to Common Council on December 16tH 2019. MOTION CARRIED. 1.6 2020 General Operating Budget Mr. Fudge and Mr. Lavigne reviewed the submitted presentation regarding the 2020 General Operating Budget. Mr. Fudge noted that is a legislative requirement to balance the budget in 2021 and therefore, all operating expenditures that are going to be reduced will occur in 2020. Mr. Fudge commented on the barriers to reducing costs and how these barriers can be addressed. The long term financial plan and policies in place are part of this equation. 2020 will be a year of transition for the City of Saint John. Mr. Collin, in response to comments regarding the unused provincial money, stated that there are two aspects to the 2018 "New Deal" agreement to consider: • As part of the agreement, the City agreed to not cut front-line services. The City has advised the Province that it cannot get through 2020 transition without addressing front-line services and asked the province to waive that provision. Early indications indicate that the province is willing to forego this provision during the transition period. • There are very clear parameters as to how the City is permitted to spend the money, based on a "doing business as usual' model. Any expenditure outside of normal business is challenged by the Province. Audits are conducted twice per year to ensure funds are used in accordance with this practice. Moved by Mayor Darling, seconded by Councillor Sullivan: RESOLVED that the Finance Committee: 1. Recognize that Budget 2020 is a transitional budget; 2. Approve the draft 2020 General Operating Budget and direct staff to recommend the 2020 General Operating Budget to Common Council; 3. Direct the City Manager to provide quarterly progress reports on the costs taken out of the system as a percentage of the overall projected deficit. MOTION CARRIED. Adjournment Moved by Councillor Sullivan, seconded by Mayor Darling: RESOLVED that the open session meeting of the Finance Committee be adjourned. MOTION CARRIED. 3 K3 Finance Committee Meeting Open Session December 3, 2019 The Finance Committee open session meeting held on December 3, 2019 was adjourned at 6:30 p.m. 4 CI FINANCE COMMITTEE REPORT Report Date January 20, 2020 Meeting Date January 22, 2020 Chairman Councillor Merrithew and Members of Finance Committee SUBJECT: Emergency Response Simulation Theatre Project OPEN OR CLOSED SESSION This matter is to be discussed in open session of Finance Committee. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Fire Chief Kevin Clifford Deputy Fire Chief Mike Carr Fire Chief Kevin Clifford John Collin RECOMMENDATION It is recommended that the Finance Committee recommends to Common Council that Council: • Approves the proposed renovations to the soon to be vacated Fire Prevention Division located in the second level office space next to the Saint John Emergency Operations Centre (EOC) for the purpose of establishing an emergency planning, preparation, response and testing simulation theatre. • Award a contract as presented by ADMS simulation (Attachment C) for the purpose of providing the City of Saint John with simulation equipment that will support the development of a comprehensive emergency planning, preparation, response and testing simulation theatre. • Approves the adjustment to the 2020 Capital Budget for the purchase of the Emergency Planning, Preparedness, Response Testing Simulation Project based on the appropriateness of the attached business case for a total of $571,385. • Approves the local acquisition of the furniture, monitors and other related electronic equipment necessary for the simulation theatre from the CAER contribution received from Canaport LNG. EXECUTIVE SUMMARY Planning for emergencies is mandated by the Emergency Measures Act of the Province of New Brunswick and is mirrored in the City of Saint John Emergency Measures By-law. All CSA standards relevant to emergency preparedness and 61 -2 - response such as CSA Z731 and CSA Z1600 have imbedded a section that requires training and exercises to evaluate the effectiveness of emergency response plans. Without affirmation that emergency response plans will be effective, the plans created for compliance by stakeholders become only administrative. One challenge within the City of Saint John is the unprecedented number and diversity of industrial and weather-related hazards within the community that require tailored training and exercising to promote a successful response to a hazard event. Therefore, effective planning, preparedness, and response to emergencies are dependent on the ability of the community to validate its various emergency response plans and identify improvement opportunities, ultimately increasing public safety. Council through numerous resolutions has supported the fire service's Community Awareness Emergency Response (CAER) concept. CAER advocates for a structured methodical approach to emergency preparedness base on principles of High Reliability Organizations — HRO (attachment A), The creation of an Emergency Planning, Preparedness, Response and Testing Simulation Theatre is a critical step in ensuring emergency responses competence is at a level this community expects. The Simulation Theatre Project is being advanced during this significant period of austerity as a result of the following opportunity and rational: 1. The new deal with Pt Lepreau provides the financial resources and enriches the collaborative approach between industry and municipality on emergency plans. NB Power and Canaport LNG are models for other entities requiring emergency plan affirmation. Pt Lepreau and CanaPort could be the catalyst for enriching the planning, preparation and response capability of this community. 2. Changes to the Environmental Emergencies Regulations present an opportunity for further voluntary participation of industry and additional revenue. 3. Municipal restructuring dictates a more efficient/more effective approach to emergency planning, preparation and response testing. SJFD/SJEMO will be adopting one format/one model for conducting and participating in emergency response plans review. 4. Introduces SJEMO/Saint John Fire Emergency Response Planning format to the community. The Emergency Planning, Preparedness, Response, Testing Simulation Theatre project has three main components. 1) Renovation of space at No. 1 Fire Station ($172,714) 2) Purchase of the Advanced Disaster Management Simulator (ADMS) computer/software components ($386,921— Net HST after rebate) 3) Council support to use a portion ($32,545) of CanaPort CAER donation ($45,000) to acquire furniture, monitors and electronics for the simulation theatre. C.1 -3 - The Financial and Public Safety Business Case for advancing this project are valid. • Revenue: o Actual Pt Lepreau $1,489,811 • Expense: o Debenture Pymts $631,380 • Safer community and more effective use of emergency planning resources. It is important to note that Saint John Fire Department representatives made an urgent appeal to NB Power for an even higher value within the backup fire response agreement. NB Power considered the appeal; however, after review, they offered that the proposed amount of $142,163 was as high as they could go and that they could not extend any further on the value. NB Power did share that all six of the nuclear facilities across Canada have some level of backup response agreement with their neighbouring communities. Of the six facilities only two pay a fee for the backup fire response support; and the new amount as tentatively agreed between Saint John and Pt Lepreau represents the highest cost that any of the facilities are paying on a per reactor basis. The Advanced Disaster Management (ADMS) Simulator ADMS was selected through an RFP process to provide highly effective training for relevant scenarios resulting in better knowledge of Standard Operating Procedures and Command and Control skills for multi -agency response and coordination. ADMS is an interactive and dynamic virtual reality training platform utilizing artificial intelligence, and physics -based effects and models embedded in the system. Real-time insight into the effects of participants' decisions is immediately identified as the simulation demonstrates the consequences of their decisions. This higher-level experience makes ADMS an effective tool for planning, rehearsing, assessing, and enhancing the skills of the participants required to manage incidents and disasters. The principle advantages of ADMS include: • Decreased operational and training costs • Increased learning retention and on -scene performance • Ability to train anytime without disruption to daily operations • Reduced safety concerns for trainees, staff, and the environment • Ability to create scenarios based on exact circumstances • Structured and objective scoring and assessment capabilities • Control over the entire exercise process by the instructional staff • Increase the efficiency of training more people, more frequently, for more incidents The simulation technology examined as part of this RFP process is capable of replicating hundreds of emergency environments including human, accidental or r� -4 - intentional acts; natural weather events; industrial incidents at fixed sites; or across the whole transportation network be it roads, rail, marine, or air traffic. The simulation theatre can provide numerous emergency planning, preparedness and response testing environments specific to Saint John including threats to public facilities like the City Market/City Hall, Hospitals, Schools, High Rise properties, Nursing Homes, and Public Assembly Events like the night market or public assembly events at Harbour Station or Imperial Theatre to name a few. PREVIOUS RESOLUTION Since 1982 Common Council has approved through a resolution the long- standing agreement with NB Power to provide backup emergency response to the Pt Lepreau Nuclear Generator facility. In addition to an enhanced fee for service, the new agreement presented today provides greater opportunity for Saint John Firefighters to maintain the necessary competence to respond to the Nuclear Generating Facility. The incremental change in the agreement presents a significant opportunity to enhance community safety. The City of Saint John Work Plan received by Council February 20th, 2017 - the Fire Department's immediate objective is to more fully engage key stakeholders, particularly industry and businesses, to introduce CAER, a community-based initiative to enhance public safety through more effective emergency response planning and preparation. In April of 2017 Common Council resolved to authorize the Saint John Fire Department to approach the community's industrial stakeholders to determine their interest in becoming a Saint John Fire Department CAER Partner. In November 2019 Common Council approved the relocation of the Fire Prevention Division for the purpose of advancing the Community Awareness Emergency Response Initiative. The goal of this particular project is to utilize simulation technology to enable first responder and industry collaboration in a pressurized environment to test the effectiveness of emergency response plans as well as the competence of the emergency responder decision -makers. It is proposed that the ideal location for the CAER simulation theatre is the office space adjacent to the Emergency Operation Centre (EOC) in Fire Station 1 on Leinster Street. This space is currently occupied by the Fire Prevention and Investigation Division. January 13th, 2020 Council received during open session staff work priorities for 2019 and noted the following. Plans were underway on the development of a more robust emergency management policy/ a complete risk assessment of city facilities and work places is complete and / that work was beginning on doing a risk assessment of public facilities and communities. The simulation project provides significant support to each of these noted priorities. E:3 -5 - REPORT The City of Saint John has experienced a diverse list of emergency incidents during recent years. The emergency events have occurred across the broad spectrum of incident types (Wind, Ice, snow, flood, and industrial incidents) have pushed this community to the limit over the past five years. Severe weather events are looming as the "new norm" for much of Eastern Canada. Indeed, the Federal Government's focus on climate change adaptation plans is another indicator that we need to be prepared for the new reality. Meanwhile, Saint John City Council's recognition of the need for a safe and secure workplace emphasizes the concern that we need to be prepared for threats that occur as a result of human behaviour. Confirmation of this important diligence has been tragically highlighted through recent incidents in Fredericton and Moncton. The business case for supporting the creation of an emergency planning, preparedness, and response simulation theatre is founded on the combination of recent and historical emergency incidents as well as changes to climate and human behaviour. This community does not have to rely on extreme probabilities as a motivation to host a better planning and preparation environment for emergency incidents; this community simply needs to look at recent history to understand the urgency in having our first responders and community properly prepared for the hazard/risk profile that exists within the Saint John landscape. In addition to the concern about weather and human behaviour incidents, The City of Saint John has an industrial hazard risk profile unlike any other city in Atlantic Canada. In fact, it has a greater industrial hazard risk profile than many other larger urban Centres across Canada. Accessibility to tidal waters and the natural proximity to the North American East Coast market provided much of the incentive for the industrial investment that represents much of our community's diverse hazard risk profile. The 1967 amalgamation of three separate urban planning Centres along with the unabridged urban encroachment near established industrial centres has helped create the hazard/risk landscape that exists within the Saint John Community. The hazard/risk profile is not only diverse but further complicated in that the hazard/risk facilities are integrated within the urban setting. This reality presents numerous challenges with respect to emergency planning, preparation and response competence at the strategic and tactical levels. Our current emergency planning and preparation efforts as it relates to the natural, human and industrial risk profile, needs to be advanced using modern technology, such that a more strategic, structured, methodical, and integrated approach to the emergency planning, preparation and response meets the expectations of our community. -6 - Why Simulation Technology At This Time? During periods of austerity, it is critical to identify opportunities to align efficiency decisions with effectiveness decisions. If indeed emergency services are reduced as a result of the restructuring exercise that the City has undertaken, it will be even more important for emergency officials to have an effective planning, preparation and responses exercise regime. Simulation technology is proven as a realistic and cost-effective means to properly prepare for random emergency events. The frequency of emergency incidents is increasing, and the need for communities to properly plan and prepare to ensure a competent response, is a cornerstone to the role of municipal leaders. Simulation technology with artificial intelligence provides municipal Emergency Management Officials with an emergency planning and preparation environment that truly replicates reality. Participants in simulation testing are challenged on their knowledge with respect to a given emergency response plan and are further tested on their ability to make decisions in a time -pressured urgent environment. The simulation technology examined as part of this RFP process is capable of replicating hundreds of emergency environments including human accidental or intentional acts; natural weather events; industrial incidents at fixed sites; or across the whole transportation network be it roads, rail, marine, or air traffic. The renewal of the long-standing emergency response agreement with NB Power provides the financial resources to attain the identified simulation technology. The incremental revenue from the new agreement will cover the full cost of the simulator theatre across the term of the agreement. It is important to note that in preparing their revenue projection for 2020, the fire service did not budget for any revenue from the expired NB Power contract given the possibility that the agreement would not be renewed. To this end, the full amount of the yearly contract is unplanned revenue moving forward, far exceeding the cost of the simulation theatre project. In addition to the revenue solution from the NB Power contract, recent changes to the Canadian Environmental Protection Act places significant emphasis on hazard facilities to sustain emergency response plans and to create an appropriate emergency exercise calendar. This is a significant change for a number of these municipal hazard sites. To this end, Saint John Fire/Saint John Emergency Measures Organization are developing specialized exercise design competence (Per CSA Standard) to complement our extraordinary Emergency Scene Command and Control experience (Using Incident Command System Canada Ideology). The combination of exercise design competence, proven emergency management experience, and the proposed simulation theatre presents an emergency planning, preparation and response consumer package unequal in Eastern Canada. We have already received expressions of interest to be engaged (for a fee) with our proposed program. Our modest estimate on ito] potential annual revenue from providing a comprehensive emergency planning, preparation and exercise testing solution begins at $100,000. THE SIMULATION THEATRE PROJECT The Simulation Theatre Project as a whole has an estimated cost of $603,930. There are three components to the simulation theatre that council is being asked to consider: 1) Renovation of the soon to be vacated fire prevention office at No 1 Fire Station located next to the City of Saint John Emergency Operations Centre. The Architectural estimate is $172,714 (Attachment B) 2) Purchase of Advanced Disaster Management Simulator (ADMS) components at a cost of $386,921— after HST rebate (Attachment C) 3) As part of the project endorse the local acquisition of furniture, monitors and other related electronic equipment ($32,545) necessary for the simulation theatre from the $45,000 CAER contribution received from Canaport LNG. (Attachment E) PAYING FOR THE SIMULATOR THEATRE PROJECT A cash flow analysis clearly indicates that the stream of revenue created by the NB Power Agreement will cover the obligations as presented by issuing a debenture through the Province. Further explanation of the cash flow component of the project provides the following, 1) Issue a five year debenture through the Province. Finance and Fire reviewed the cost proposed to lease to own the equipment or to borrow for the equipment. Based on a very conservative borrowing estimate of 3.5 % over 5 years, it was clear that borrowing would be the most fiscal option. By borrowing the money to facilitate the simulation theatre project the City is going to save more than $25,000 as opposed to entering into a lease agreement. 2) The NB Power revenue stream (protected from CPI and wage settlements) exceeds the full cost of borrowing for the simulator theatre project by $850,000 See table on next page. 3) The emergency planning, preparedness and response simulator has great potential to provide training income. SJFD/SJEMO projects $100,000 of new revenue (annual beginning 2021) as a result of providing emergency planning, preparedness and response exercises through the simulation theatre. 11 MI IMMERSION SIMULATION & ADMS-COMMAND TRAINING SYSTEM Immersive Simulations The Justice Institute of British Columbia (JIBC) defines emergency management exercises as a simulation of an emergency event used to validate capabilities, plans, processes, policies, and procedures. Immersive simulations are exercises that use technology to realistically model how an emergency scenario would unfold in response to the participant's decision-making. They are scalable, allowing individuals, teams, agencies, and industry stakeholders to exercise together, thus promoting interoperability. Advancements in technology have enabled immersive simulations to reduce costs associated with the number of resources, both personnel and equipment, needed to facilitate realistic multi - stakeholder environments. Immersive simulations are becoming mainstream because they: • Decrease the learning curve for participants when facing a real emergency • Provide a venue for participants to practice their responses • Recreate specific situations on demand • Provide a means for all staff to be trained in a consistent way • Validate and augment training in a specific skill set or procedure 12 5 yr Debenture for Simulation Theatre Project: $571,385 at 3.5 % NB Power Pt LePreau Revenue Received (1% CPI Adjustment each Year) Response Training 2020 0 64,620 (10 months) 53,849 (10 months) 2021 134,276 78,319 65,265 2022 130,276 79,102 65,918 2023 126,276 79,893 66,577 2024 122,276 80,692 67,243 2025 118,276 81,499 67,915 2026 0 82,314 68,594 2027 0 83,137 69,280 2028 0 83,969 69,973 2029 0 84,808 70,672 2030 0 14,276 11,896 631,380 812,629 677,182 812,629 $ 1,489,811 $631,380 NET $ 858,431 IMMERSION SIMULATION & ADMS-COMMAND TRAINING SYSTEM Immersive Simulations The Justice Institute of British Columbia (JIBC) defines emergency management exercises as a simulation of an emergency event used to validate capabilities, plans, processes, policies, and procedures. Immersive simulations are exercises that use technology to realistically model how an emergency scenario would unfold in response to the participant's decision-making. They are scalable, allowing individuals, teams, agencies, and industry stakeholders to exercise together, thus promoting interoperability. Advancements in technology have enabled immersive simulations to reduce costs associated with the number of resources, both personnel and equipment, needed to facilitate realistic multi - stakeholder environments. Immersive simulations are becoming mainstream because they: • Decrease the learning curve for participants when facing a real emergency • Provide a venue for participants to practice their responses • Recreate specific situations on demand • Provide a means for all staff to be trained in a consistent way • Validate and augment training in a specific skill set or procedure 12 -9 - Advanced Disaster Management Simulator (ADMS) ADMS was selected through an RFP process to provide highly effective training for relevant scenarios resulting in better knowledge of Standard Operating Procedures and Command and Control skills for multi -agency response and coordination. ADMS is an interactive and dynamic virtual reality training platform utilizing artificial intelligence, and physics -based effects and models embedded in the system. Real-time insight into the effects of participant's decisions is immediately identified as the simulation demonstrates the consequences of their decisions. This higher-level experience makes ADMS an effective tool for planning, rehearsing, assessing, and enhancing the skills of the participants required to manage incidents and disasters. The principle advantages of ADMS include: • Decreased operational and training costs • Increased learning retention and on -scene performance • Ability to train anytime without disruption to daily operations • Reduced safety concerns for trainees, staff, and the environment • Ability to create scenarios based on exact circumstances • Structured and objective scoring and assessment capabilities • Control over the entire exercise process by the instructional staff • Increase the efficiency of training more people, more frequently, for more incidents Currently, the City of Saint John is faced with a multitude of possible emergency scenarios with varying degrees of stakeholder preparedness and inconsistent formats of emergency response plans. The only way to ensure these plans will be effective is through realistic training scenarios utilizing simulation. The ADMS training system would facilitate the validation of stakeholder emergency response plans in a cost-effective manner, supporting compliance and increasing public safety. STRATEGIC ALIGNMENT Recent council resolution with respect to safe facilities Aligned to safe communities, effective service delivery, financial growth and community confidence. SERVICE AND FINANCIAL OUTCOMES The simulator theatre project is tightly aligned to the new backup fire response agreement as adopted with NB Power. The new 10 -year agreement with NB Power is valued at over $1,420,000 (cost escalation protected) and provides the complete funding for the simulation theatre project. 13 -10 - Emergency plans, preparedness and exercises are critical part of numerous hazard sites, spaces or public assembly, and various levels of commerce and government. The City of Saint John Emergency Planning, Preparing, Response and Exercise simulation theatre will be a centre of excellence and a one-stop shop for those who must meet the rigor of being prepared for unlikely incidents. We will be promoting the simulation theatre as a centre of excellence for everything related to emergency preparedness. Our revenue model for third party users will incorporate the cost to acquire the asset and the cost to replace the asset as well as the full operating cost. Once the simulation theatre is fully functional we will be approaching many of our local hazard sites to share in the acquisition expense upfront. To this end, those who share in the acquisition price will not have the acquisition price included when they wish to utilize the facility for their emergency planning and preparedness needs. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS • The Finance Department has reviewed the financial representations and can attest to the accuracy of the report, as well as ensuring the Capital Budget and Debt Management Policy guidelines are being followed. • The Legal Department will review the Pt. Lepreau contract as it has done in the past prior to it being submitted to Common Council. • The Purchasing Department coordinated the issuance of the RFP for the simulation assets and worked with the fire service in evaluating the proposals as submitted ATTACHMENTS Attachment A- High Reliability Organizations Attachment B- Engineer's Estimate to conduct renovations to the simulation theatre location Attachment C- ADMS SIMULATION proposal Attachment D- Furniture, Monitors and related Equipment Estimate 14 lilliq llqllllli� lipiliq 0 i� v;I F. 11-mm-3we =- MMOTIF Me in* i-m-11MM January 22, 2020 `N The Recommendation: • Finance Committee Recommends to Common 2 Council: • That Common Council approves the proposed renovations to the soon to be vacated Fire Prevention Division located in the second level office space next to the Saint John Emergency Operations Centre (EOC); for the purpose of establishing an emergency planning, preparation, response and testing simulation theatre. • Award a contract as presented by ETC Simulation (ADMS) for the purpose of providing the City of Saint John with simulation equipment that will support the development of a comprehensive emergency planning, preparation, response and testing simulation theatre I SAINT JOHN The Recommendation: • Finance Committee Recommends that Common 3 Council: • Approves the adjustment to the 2020 Capital Budget for the purchase of the Emergency Planning, Preparedness, Response and Testing simulation theatre. • Approve the local acquisition of the furniture , monitors and other electronic equipment necessary for the simulation theatre from the CAER contribution received from Canaport LNG ON SAINT JOHN • Emergency Planning & Preparation critical to effective response • Emergency Measures Act for Province of NB • City of Saint John Emergency Measures By Law • First component of our long standing CAER model • Council through numerous resolutions has supported CAER concept El SAINT JOHN Community Awareness Emergency Response (CAER): Structured Methodical approach to emergency preparedness based on the tenets/principles of High Reliability Organizations (HRO's) • Preoccupation with Failure • Reluctance to Simplify • Sensitivity to Operations • Commitment to Resiliency • Deference to Expertise 5 SAINT JOHN WHY NOW / AT THIS TIME OF AUSTERITY: • Enhanced NB Power agreement with Pt Lepreau provides financial resources: • Did advocated for even higher value without success. • All 6 Nuclear facilities in Canada have Backup Fire Response Agreements • Only two of the 6 Nuclear Facilities have a fee attached to the Backup Fire Response Agreement • Enhanced Saint John Agreement consists of highest fee per reactor • Recent changes to the Environmental Emergencies Regulation (E2) may 0 compel rate paying participants as there is significant more regulation on Industry as it relates to identifying site hazards, and creating and exercising emergency response to the worst and most plausible scenarios at their sites. MIC SAINT JOHN WHY NOW / AT THIS TIME OF AUSTERITY: • Municipal restructure dictates a more efficient / effective approach to emergency planning, preparation and response testing. • SJEMO /SJFD will be adopting one format / one model for conducting and participating in emergency response plans/ emergency exercise review. • SJEMO / SJFD format includes hazard assessment, exercise design, emergency response plan testing by experienced emergency management trainers, and simulation testing. • SJEMO / SJFD will provide an emergency planning, preparation, and response consumer package unequal in Eastern Canada as a significant source of potential revenue. 7 21 SAINT JOHN Three Main Components: • Renovation of space next to the Saint John Emergency Operations Centre (Location is a substantial benefit when SJEMO activates Emergency Operations Centre) • Purchase of ETC Simulation product - Advanced Disaster Management Simulator (ADMS) components • Utilize previous Canaport LNG CAER donation to acquire furniture, monitors, and electronic equipment for the simulation theatre. 0 PA SAINT JOHN The Finance and Public Safety Business Case: • Revenue from the enhanced 10 year agreement with Pt Lepreau $1,489,811 • Debenture Payments to develop Simulation Theatre Project $631,380 • Net Revenue after Expenses $858,431 • Projected revenue from third party engagements with simulator program -$1001000 • Enhanced emergency planning, preparation and response for the City of Saint John = Safer / more Livable City E 23 SAINT JOHN Advanced Disaster Management (ADMS) Simulator: • Selected through RFP • Interactive and dynamic virtual reality training platform utilizing artificial intelligence, and physics -based effects and models embedded in the system. • Real-time insight into the effects of participants decisions is immediately identified as the simulation demonstrates the consequences of their decisions • Effective tool for planning, rehearsing, assessing and enhancing skills of the participants required to manage incidents and disasters. 10 Pz! SAINT JOHN Advanced Disaster Management (ADMS) Simulator: • Decrease operational training cost • Increase learning retention • Ability to train anytime without disruptions to daily operations • Reduced safety concerns for trainees, staff and the environment typical for large scale exercises • Ability to create scenarios based on exact circumstances • Structured and objective scoring and assessment capabilities • Control over the entire exercise process by the instructional staff • Increase the efficiency of training more people, more frequently, for more incidents (all SJFD firefighters exposed to 6 hours of PLNGS incidents) 11 POR SAINT JOHN Advanced Disaster Management (ADMS) Simulator: Simulation Library contains hundreds of scenarios including: • Flood Event • Wind /Hurricane Event • Fire/ Explosion • Numerous incident types within high rise building (fire / human threat etc.) • Detailed exterior and interior incidents at Saint John City Market • Detailed exterior and interior incidents in Schools • Major Incidents at (Pipelines / refineries / chemical plant/ Tank Farms / Railways / Airport / Port / Industrial Storage Facilities / Paper production facilities) • Major Highway Incidents • Incidents at Places of Public Assembly: Night Market / Sparkles / TD Station / Imperial Theatre 12 Pz., SAINT JOHN Input from Other Service Ares and Stakeholders : • Finance Department Review as to finance representations and assured that proposal is aligned to Budget and Debt Management Guideline. • Purchasing Department assured procurement process was followed appropriately. • Legal Department will review NB Power back up fire protection agreement to ensure it is appropriate. • Numerous stakeholders have expressed interest in SJEMO / SJFD's one format/one model for conducting emergency planning, preparation, response testing. • SJEMO — The Simulation Theatre has capacityextension 111111 11111 liq 11 13 PION SAINT JOHN 14 28 SAINT JOHN ATTACHMENT "A" 5 Principles of HROs High Reliability Organizations (HROs) are anomalies. They exist in the kind of very complex, fast -evolving environments where you would expect chaos to prevail. But it doesn't. HROs are able to cope successfully with unexpected conditions. That's what makes these unusual organizations so attractive to researchers. What can we learn from them? Knowledge about HROs is rooted in what we call "heroic" organizations like aircraft carriers and air traffic control systems where a thousand things must go right every moment or someone dies. People like Karl Weick and Kathleen Sutcliffe, two of the most prominent scholars in the field, are beginning to stretch the concepts developed by evaluating HROs to apply to less heroic settings like banking, healthcare and manufacturing. Weick and Sutcliffe use the phrase "mindful organizing," which entails "sense -making, continuous organizing, and adaptive managing" to summarize the approach taken by HROs. ' They identify 5 principles that make up the body of mindful organizing found in successful HROs, and in organizations that aspire to that continuously high reliability. 1. Preoccupation with Failure Systems in modern organizations are complicated, and they experience failures. HROs focus like a laser on failure; they give "continuous attention to anomalies that could be symptoms of larger problems. "The basic insight here is that big problems don't emerge fully formed in an instant. They are almost always preceded by smaller problems or anomalies, or evidence that would point to the big problem if it were given proper attention. What HROs do NOT do is assume that if a control in place succeeds in containing a failure, everything is right. They look deeper into an incident to find underlying causes. They also do not lump a failure with common elements to another into a class that all are alike. Evidence is gathered and evaluated. 2. Reluctance to Simplify Complexity means that organizations have numerous potential sources of failure, and HROs do not apply generalized terms to describe them. It is a common and convenient response to a problem to name a general kind of cause and consider it a solution, e.g., `the bank has a state of the art alarm system' so the failure of the alarm can be fixed by replacing it. What if the alarm's failure is caused by something deeper? What specifically was the cause? In HROs, the occurrence of a failure is taken as an opportunity to dig deeply into the details of the system involved to find a real cause. You differentiate the details within those broad, convenient generalizations. 3. Sensitivity to Operations Operations happen in real time. They include both discrete components and the system they compose. As such, operations generate outcomes that we can observe. The HRO continuously evaluates outcomes to determine if they are in fact serving the objectives of the organization. They do not assume that the continuous outcomes will be the same as planned, assumed, or hoped for. Operations are what an organization does. In this sense, HROs treat them as hands-on experiences from which lessons about the organization can be taken to further improve function in real time. Wel 4. Commitment to Resiliency "The signature of the high reliability organization is not that it is error -free, but that errors don't disable it." HROs are essentially adaptable, learning organizations. They can experience a failure but continue operating under degraded conditions while marshalling resources to restore capacity. To operate like this, HROs can recognize emerging anomalies despite prior beliefs, experiences, or plans. In large part, this requires both open-minded observation and a willingness to react appropriately even under unanticipated condition. 5. Deference to Expertise The fact that an HRO must be open-minded rather than judgmental leads to the idea that the culture of the HRO defers to expertise. The key point, however, is that the "expert" involved is the person with hands-on knowledge of the operation at the point of a failure, not the "expertise" conferred by hierarchical authority. In the HRO, the expert has access to upward reporting, and there is no intimidation from authority to impede the communication. The openness required for the HRO to succeed depends on accurate information from every source. Not every organization will adapt every HRO principle, at least in the short term. Many organizations can improve continuous operational reliability by adapting the pieces that fit. Over time, more and more of the organization can be improved this way, moving toward the "perfect reliability" objective of the HRO. 091 ATTACHMENT "B" ■rir■—i■■■ ■■■■■■■■ ■■■r■■■■ ■■■� ■■■RICHARD & CO. ARCHITECTURE INC. ■■■. ■■■ ■ Dan LeBlanc, BA, BSc. Division Chief — Fire Prevention and Investigation Saint John Fire Department 45 Leinster Street, Saint John E21- 1 H9 Dear Mr. LeBlanc, Order of Magnitude Costing CAER Simulator Room 2019 12 30 Richard & Co. Architecture Inc. (RCA) with Fundy Engineering & Consulting Ltd. has completed the preparation of an order of magnitude cost for the architectural and engineering aspects of the proposed CAER Project at Fire Station No. 1. The costing was prepared for the Fire Department of the City of Saint John (CoSJ). 1.0 Opinion of Probable Construction Cost Our estimation of probable cost is based on a consideration of demolition and new construction related to architectural, mechanical and electrical improvements associated with the proposed CAER Project at Fire Station No. 1. The probable cost of the work is One Hundred Fifty-two Thousand Seven Hundred and Fifty Dollars ($952, 750.00). 2.0 Scope of Work The scope of work for architectural includes demolition of ceilings, wails and removal of flooring together with the new construction wall, bulkheads, ceilings, flooring, the provision of a doors, frames and hardware, the provision of an accordion folding partition and the provision of a kitchenette. Mechanical improvements include HVAC demolition, redistribution of ductwork, new diffusers, air balancing and controls and plumbing for the new kitchenette. Electrical improvements include demolition, lighting, wiring, communications and fire alarm. A contingency of 20% is included within the probable cost identified. 3.0 Fee for Design Services The anticipated fee for Architectural, Mechanical and Electrical design services will be in the order of Nineteen Thousand Nine Hundred and Sixty-four Dollars ($19,964.00) with services during construction as required on a per diem basis. Please call 609-7047(c) with any questions. Yours truly Richard & Co. Arc ' ture Inc. Michael R. Richard, Architect, AANB, AAPEI, MRAIC 40 Water Street, Saint John, NB, E21. 2AS Tel: (S06) 633-1361 Fax: (S06) 633-1301 mrichard@richardarchitecture.com 31 CAER Project Budget Summary - Jan 17, 2020 Ns $12,600 Monitors $4,950 CCN $1,000 Hardware $2,200 Furniture 1 $7,550 Subtotal $28,300 HSt $4,245 $32,545 ATTACHMENT "D" W Perhaps share with everyone that of the proposal that we received above - we are advancing the following purchase as part of tonight's presentation A ADMS-Canada Training System 257,578 B Geo -specific City Market Building 78,401 C High Rise Building 18,794 D Additional Smart Models & Function 16,553 Total 371,326 We intend to pay for the three day training course with a contribution received from CanaPort LNG Not sure that the value of the extended warranty is there; we have 18 months to decide. We will be canvass other users and review our own experience over the first year. Kelly - If it's too cumbersome to share the text above I can certainly explain tonight, Thank You, Kevin Kevin Clifford BBA CFO Fire Chief / Director SJEMO City of Saint John 506 647 9381 091 SIMULATION N TRAINING SYSTEMS 2100 N. Alafays Trail, Suite 900, Ortando FL. 32826 USA 407-282-3378 1 < 407-282-3582 - ETCSImulationxom Proposed Compensation Model for Deliverables Estimated Total Cost of Delivery RFP 2019 - 691001P for Immersive Simulation Theater Rev. B ETC's pricing below: a. Is Fixed Price. b. Includes a permanent software license. No further annual software license fees are applicable. c. Is submitted in Canadian Dollars (CAD) and calculated with a 1.35 exchange rate on January 19, 2020. d. Is FOB Saint John (Freight prepaid) to City of Saint John, New Brunswick, Canada. e. Does not include sales tax, VAT, and/or customs duties. f. Does not include HST/GST. g. Includes one (1) year Warranty for all ETC -supplied hardware and software. h. Is valid until February 29, 2020. ADMS-CANADA Trainin System: $257,578 (Two Hundred Fifty -Seven Thousand Five Hundred Seventy -Eight CAD) Consisting of one (1) installed Exercise Control Station, one (1) installed Incident Command Station, three (3) installed Field Unit Stations and one (1) portable Field Unit Station. Geo -specific City Market Building: $78,401 (Seventy -Eight Thousand Four Hundred One CAD) Hi - h Rise Building: $18,794 (Eighteen Thousand Seven Hundred Ninety -Four CAD) 2100 N. Alataya Trail, Suite 900, Orlando FL. 32626 USA 407-282-3378 407-282-3582 ETCsimulation.com Additional SmartModels and Functionality: $16,553 (Sixteen Thousand Five Hundred Fifty -Three CAD) Three (3) Day System Training Course: $9.679 (Nine Thousand Six Hundred Seventy -Nine CAD) Software License Fee: No Cost Extended Software Warranty: (OPTIONAL) $8.446 per year (Eight Thousand Four Hundred Forty -Six CAD) ETC requests payments be made in accordance with a milestone payment schedule, as follows: ■ 60% at time of order. ■ 30% within 90 days of contract award. ■ 10% with acceptance and completion of Training Course. WARRANTY: ETC will provide a one (1) year warranty program on all software, including the resolution of any issues detected, and hardware components of the training system. This one (1) year warranty program starts upon on-site acceptance of the training system. The warranty consists of parts and labor for ADMS hardware and ADMS software support. In the unlikely event of a system error, the customer should contact ETC. ETC will respond within one business day with an online diagnosis and servicing of the system via a customer -supplied high speed Internet connection. In the event the system error cannot be resolved via remote access, the computer and/or components will be shipped to ETC at customer's expense. ETC will ship a replacement or repaired ADMS computer or components to the customer at ETC's cost. Except as modified in this section, the remainder of ETC's standard warranty is set forth in the attached ETC's General Terms and Conditions of Sale (Rev. Feb 2016). ASSET LIFE CYCLE: The common use asset life cycle of the proposed hardware is six years. The lifecycle of the delivered software is ten years. KSI SIMULATION TRAINING SYSTE=MS 2100 N. Alataya Trail, Suite 900, Ortando FL 32826 USA 407-282-337a 407-282-3582 - ETCalmulatlon.com Proposed Compensation Model for Deliverables Estimated Total Cost of Delivery RFP 2019 - 691001P for Immersive Simulation Theater Rev. B ETC's pricing below: a. Is Fixed Price. b. Includes a permanent software license. No further annual software license fees are applicable. c. Is submitted in Canadian DdWrs (CAD) and calculated with a 1.35 exchange rate on January 19, 2020. d. Is FOB Saint John (Freight prepaid) to City of Saint John, New Brunswick, Canada. e. Does not include sales tax, VAT, and/'or customs duties. f. Does not include HSTIGST. g. Includes one (1) year Warranty for all ETC -supplied hardware and software. h. is valid until February 29, 2020. ADMS-CANADA Training System: $257.578 (Two Hundred Fifty -Seven Thousand Five Hundred Seventy -Eight CAD) Consisting of one (1) installed Exercise Control Station, one (1) installed Incident Command Station, three (3) installed Field Unit Stations and one (1) portable Field Unit Station. Geo -specific City Market Building: _ $78,401 (Seventy -Eight Thousand Four Hundred One CAD) Hicih Rise Building: $18,794 (Eighteen Thousand Seven Hundred Ninety -Four CAD) 01.1 2100 N. Alafaya Trail, Suite 900, Orlando FL. 32826 USA 407-282-3378 407-282-3582 ETCsimulatlon.com Additional SmartModels and Functionality: $16,553 (Sixteen Thousand Five Hundred Fifty -Three CAD) Three (3) Day System Training Course: $9,679 (Nine Thousand Six Hundred Seventy -Nine CAD) Software License Fee: No Cost Extended Software Warrant OPTIONAL $13,446 Per year (Eight Thousand Four Hundred Forty -Six CAD) ETC requests payments be made in accordance with a milestone payment schedule, as follows: ■ 60% at time of order. • 30% within 90 days of contract award. ■ 10% with acceptance and completion of Training Course. WARRANTY: ETC will provide a one (1) year warranty program on all software, including the resolution of any issues detected, and hardware components of the training system. This one (1) year warranty program starts upon on-site acceptance of the training system. The warranty consists of parts and labor for ADMS hardware and ADMS software support. In the unlikely event of a system error, the customer should contact ETC. ETC will respond within one business day with an online diagnosis and servicing of the system via a customer -supplied high speed Internet connection. In the event the system error cannot be resolved via remote access, the computer and/or components will be shipped to ETC at customer's expense. ETC will ship a replacement or repaired ADMS computer or components to the customer at ETC's cost. Except as modified in this section, the remainder of ETC's standard warranty is set forth in the attached ETC's General Terms and Conditions of Sale (Rev. Feb 2016). ASSET LIFE CYCLE: The common use asset life cycle of the proposed hardware is six years. The lifecycle of the delivered software is ten years. Kul FINANCE COMMITTEE REPORT Report Date January 20, 2020 Meeting Date January 22, 2020 Service Area Public Safety Services Chairman Councillor Merrithew and Members of Finance Committee SUBJECT: Agreement with NB Power for Back-up Fire Protection Services and Response Training at the Point Lepreau Generating Station OPEN OR CLOSED SESSION This matter is to be discussed in open session of the Finance Committee. AUTHORIZATION Primary Author Commissioner/Dept. HeadCity Manager Peter Ehler Rob Nichol Kevin Clifford John Collin RECOMMENDATION It is recommended that the Finance Committee recommends to Common Council that Council: Common Council authorizes the Mayor and Common Clerk to execute the attached 10 year agreement for Backup Fire Protection and Response Training between the City of Saint John Fire Department and NB Power Corporation, Point Lepreau Power Generating Station. EXECUTIVE SUMMARY In 1982, the City of Saint John entered into an agreement with the New Brunswick Power Corporation for the provision of Back-up Fire Protection Service to the utility's Point Lepreau Generating Station. The attached agreement has been amended a couple of times, notably in 1999, and 2013, at which times the stand-by fees were increased. Subsequent to the expiry of the 2013 agreement two six month extensions were adopted by Council with an objective to enable discussions for a more valued agreement from both a revenue and response perspective. The current two month extension granted in December 2019 has provided the opportunity to reach a tentative agreement between the City of Saint John and NB Power that is mutually beneficial to both parties. The new ten (10) year agreement, (March 1St 2020 — February 28th 2030) significantly increases the annual contribution from NB Power and is adjusted annually based on CPI and salary increases. The new agreement increases the annual contribution from $77,544/annum, (2018) to $142,163/annum. A net 011 -2 - increase of $64,619/annum, (83% increase). Site specific training in a simulated environment for all Saint John firefighters has been added to the agreement to ensure proper training for hazards specific to the Point Lepreau Generating Station. Both sides have been very engaged and a fundamental change has been accepted from which the new tentative agreement has been identified. The new agreement provides additional value and opportunity for the City and NB Power. It is important to note that fire department representatives made an urgent appeal to NB Power for an even higher value. NB Power considered the appeal however they noted that the tentative amount of $142,163 was a reach for them and that they could not extend any further on the value as tentatively agree. NB Power provided the following information as a testament to the fact that they had extended beyond the industry norm. "All six of the nuclear facilities across Canada have some level of back up response agreement with neighbouring communities; only two of those facilities pay a fee for the backup fire response support and the new amount as tentatively agreed between Saint John and the Pt. Lepreau is the highest value for any of the reactors in Canada". To this end this agreement represents the best negotiated position for all parties. Failure to execute this agreement will result in a termination of the relationship that has been in place since, 1982. In addition there will be a revenue loss of roughly 142k per annum. PREVIOUS RESOLUTION Common Council renewed the previous Back-up Fire Protection Agreement with NB Power in August of 2013 and subsequently agreed to two 6 month extensions concluding in February and December of 2019, and one 2 month extension concluding February 2020. STRATEGIC ALIGNMENT Vibrant Safe City — Contributing as part of a regional response helps to ensure the safety of our larger community. Fiscally Responsible — Advancing the culture of continuous improvement - securing reimbursement for emergency incident planning, preparation and response is consistent with our fiscally responsible approach. SERVICE AND FINANCIAL OUTCOMES Wel -3 - In exchange for the identified stand-by fee, the City is committed to provide emergency response services for NB Power at the Point Lepreau Generating Station. The standby fee shall be $77,544/annum. In addition to the standby fee additional usage fees can be charged for a response to the NB Power site: Dispatch Fee - $1000.00/occurrence Engine or Ladder - $300.00/hour Light Vehicle - $125.00/hour Salary -in accordance with current collective agreement The emergency response service is triggered upon the City's Public Safety Communications Centre receiving a call for assistance from the Point Lepreau Generating Station. Once a call is received the following will be dispatched immediately: • One Incident Commander; • One Engine and Crew; and • One Ladder Truck and Crew, or a second Engine and Crew should a Ladder Truck be unavailable. The City is not required to provide the above if, in the opinion of the Chief it is necessary for any or all of the personnel and / or equipment to remain in or return to the City to provide fire protection services in Saint John. To support competent emergency response, the SJFD shall provision all operational personnel 6 hours / annum of response training specific to the Point Lepreau Generating Station. This training will be conducted in a simulated environment in Saint John which replicates the hazards associated with a response to a nuclear power plant. A response training cost recovery fee associated with the training of all operational staff has been added to the agreement. The fee will recover all cost for the specified training time in accordance with the most current collective agreement between Local 771 and the City and the current management pay scale for the City in place at the time, plus all applicable fringe benefits and WorkSafe NB costs. The base amount for 2020 will be $64,619 adjusted for any increases going forward. Important to note there are 6 nuclear power facilities in Canada, all of which have some sort of mutual response agreements in place. Some with and some without renumeration. Of those with renumeration, this agreement represents the highest value per reactor in the country. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS -4 - This agreement is subject to review of the City Solicitor or designate prior to being submitted to Common Council for consideration. ATTACHMENTS i) Tentative Agreement with NB Power Corporation for Back-up Fire Protection and Response Training. !II This Agreement is made in duplicate by and between: THE CITY OF SAINT JOHN, in the County of Saint John and Province of New Brunswick, a body corporate by Royal Charter (the "City") OF THE FIRST PART -and— NEW BRUNSWICK POWER CORPORATION, a corporation incorporated under the Business Corporations Act, S.N.S. 1981, ch. B-9.1, ("N.B. Power") OF THE SECOND PART WHEREAS N.S. Power is the owner and operator of a Nuclear Generating Station situated at Point Lepreau being in the Counties of Saint John and Charlotte in the Province of New Brunswick (the "Station"); AND WHEREAS the City is the owner and operator of the Saint John Fire Department (the "SJFD"); AND WHEREAS N.S. Power may from time to time require back-up fire protection services to supplement its fire protection capabilities at the Station; AND WHEREAS the City has agreed to provide the service of the SJFD for the aforesaid purpose; NOW THEREFORE THIS AGREEMENT WITNESSETH as follows: 1. Responsibilities of the Citi 1.01 Subject to subsection 1.06 hereof, the SJFD will provide emergency response service for N.S. Power, as dispatched from Saint John, N.S., at the Station. 1.02 The SJFD will participate in semi-annual training/orientation sessions and exercises for the Station that are fully sponsored by N.S. Power. The SJFD will absorb their cost of participation as part of the standby fee detailed in section 4.01 (a) of this agreement. 1.03 Upon the City's Public Safety Communications Centre receiving a call for assistance from the Station, the SJFD will immediately dispatch thereto from Saint John, N.S. the following: (a) One Incident Commander (the "Commander"); :1 VA 2 (b) One Engine and Crew, consisting of: one (1) Officer and three (3) Fire Fighters; and (c) One Ladder Truck and Crew consisting of: one (1) Officer and three (3) Fire Fighters, or, in the alternative, a second Engine and Crew should a Ladder Truck be unavailable. 1.04 The Public Safety Communications Centre will confirm that the call is authentic by calling the Station's Control Room at (506) 659-2540. 1.05 Upon arriving at the Station, the SJFD's personnel will immediately respond to the command post, receive tasking from the Unified Command System, and will continue such work under the joint direction and supervision of the Stations Shift Supervisor ("Supervisor") or his designate and Commander mutually agree that the City's assistance is no longer required. 1.06 The SJFD will make every reasonable effort to provide emergency response as per Section 1.03 (a), (b) and (c) of this agreement however it is recognized by the City and N.S. Power that the primary responsibility of the SJFD is to provide fire protection services within the City of Saint John and it is agreed that the City is not required to provide, at the Station, the SJFD personnel and equipment referred to in subsection 1.03 hereof if, in the opinion of the Chief of the SJFD, it is necessary for any or all of the personnel and/or equipment to remain in or return to the City of Saint John to provide fire protection services in Saint John, N.S. 2. Responsibilities of N.B. Power 2.01 In the event that the back-up assistance of the SJFD is required at the Station, the Supervisor or his delegate will contact the City's Public Safety Communications Centre by telephone at the telephone number 911. The caller will identify him/herself, briefly explain the situation and request assistance. 2.02 The Supervisor will be responsible, in cooperation with the Commander, for the direction, supervision and safety of the SJFD personnel while they are present at the Station. 2.03 At all times during which the SJFD personnel are present at the Station in response to a call for assistance, N.S. Power will be responsible to protect the SJFD personnel from exposure to radiation and, at N.B. Power's expense, will provide the SJFD personnel with meals, dry clothing and such other accommodations as the situation may require, as determined by the Supervisor in consultation with the Commander. 2.04 N.S. Power will provide on an ongoing basis the necessary familiarization and/or orientation to the personnel of the SJFD that are required to respond to the Station. This training shall include support for response training as described in section 3 of this agreement. !191 3 2.05 Any and all specialized training and equipment that is not considered part of traditional structural firefighting, but could be employed when responding to the Station, shall be provided by N.S. Power to the SJFD and shall include, if any, the payment by N.S. Power of all annual certification, recertification, calibration or other occurring or reoccurring costs. 3. Response Training 3.01 The SJFD shall provision all permanent operational personnel with 6 hours of response training specific to the Station annually. This training shall be conducted in a simulated environment with sufficient fidelity that the SJFD Chief is satisfied that SJFD operational staff have sufficient training to safely and effectively respond to the Station. 4. Payment 4.01 N.S. Power will compensate the City as follows for its services provided hereunder: (a) A "standby" fee of $77,544/annum (2018), adjusted for inflation annually utilizing the Sank of Canada inflation calculator for the term identified herein which shall be due within 45 days of this Agreement being duly executed by both parties; (b) A response training cost recovery fee associated with the training of all operational staff as outlined in section 3.01 of this agreement. The fee will recover all cost for the specified training time associated with the training in accordance with the most current collective agreement between I.A.F.F. Local 771 and the City and the most current management pay scale for the City in place at the time, plus all applicable fringe benefits and WorkSafe NS costs. The base amount for 2020 will be $64,619 adjusted for any current year salary increase. (c) A "dispatch" fee of $1,000 for each and every call -out (including cancelled en route calls), regardless of duration; (d) A "user fee", calculated as follows for each person and vehicle provided by the City: Each Hour or Part Thereof Engine or Ladder Truck $300.00 Light Vehicle (excluding cars) $125.00 Personnel In accordance with the most current collective agreement between I.A.F.F. Local 771 and the City and the most current management pay scale for the City in place at the time, plus all applicable fringe benefits and WorkSafe NS costs. !El! rd (e) All overtime rates and associated fringe benefit costs incurred by the City that are in place at the time with respect to: 1) the Fire Fighters and Commander(s) who are dispatched to the Station; and 2) the Fire Fighters and Commander(s) who are called -in to restore the on -duty complement of the SJFD. Overtime rates and associated fringe benefit costs shall be in accordance with the most current collective agreements between I.A.F.F. Local 771 and the City and the most current management pay scale for the City at the time. 4.02 The "user fee" identified in paragraph 4.01(d) hereof shall commence one hour after dispatch of the SJFD and shall continue until the last responding Engine, Ladder Truck or Light Vehicle of the SJFD returns to its Fire Station. 4.03 The "dispatch fee" identified in paragraph 4.01(c) hereof shall be in addition to the "user fee". 4.04 All required payments identified in Section 3 hereof shall be made by N.S. Power in full to the City within forty-five (45) days of invoicing. 4.05 Reimbursement for training costs does not include the familiarization training referenced in paragraph 1.02, but does include all specialized training, certifications or courses as mutually agreed upon in paragraph 2.05. 4.06 The annual "standby" fee identified in paragraph 4.01(a) hereof shall increase annually on the anniversary date of each year of the Term based upon the percentage change to the previous 12 months Consumer Price Index (CPI) for New Brunswick, as determined by Statistics Canada. 4.07 If HST is applicable, it shall be in addition to the fees referenced herein. 5. Term This Agreement shall take effect and be binding on the parties hereto for a ten (10) year term that shall commence on March 1St 2020 and conclude on February 28th 2030. This Agreement supersedes and replaces all previous agreements respecting the subject matter of this Agreement. 6. Contact The contact person at the station for clarification of the arrangements herein provided will be the Fire Chief. The contact person in any emergency will be the Duty Shift Supervisor — Telephone (506) 659-6214. Contact number for Saint John Fire Department is 658-2910 Fire Administration. !1'7 5 7. News Releases The SJFD and N.S. Power, as part of the unified command structure, will coordinate on and, wherever possible, align public messaging in the event of an emergency response by the SJFD to the Station. C-1 IN WITNESS WHEREOF the City and N.S. Power have caused this agreement to be duly executed. Signed, Sealed & Delivered by The City of Saint John on the day of 2020. THE CITY OF SAINT JOHN Don Darling, Mayor Jonathan Taylor, Common Clerk Common Council Resolution Date: Signed, Sealed & Delivered by the New Brunswick Power Nuclear Corporation on the day of 2020. NEW BRUNSWICK POWER NUCLEAR CORPORATION Gaetan Thomas President Wanda Harrison Corporate Secretary and General Counsel PROVINCE OF NEW BRUNSWICK COUNTY OF SAINT JOHN I, JONATHAN A. TAYLOR, of the City of Saint John, in the County of Saint John and Province of New Brunswick, MAKE OATH AND SAY: - 1. THAT I am the Common Clerk of the City of Saint John and have custody of the Common Seal hereof. 2. THAT the Seal to the aforegoing instrument affixed is the Common Seal of the City of Saint John and that it was so affixed by Order of the Common Council of the said City. 3. THAT the signature "Don Darling" to the said instrument is the signature of Don Darling, Mayor of the said City, and the signature "Jonathan A. Taylor" thereto is my own signature. 4. THAT we are the proper officers to sign the aforegoing instrument on behalf of the City of Saint John. SWORN TO BEFORE ME at ) the City of Saint John, in the ) County of Saint John and ) Province of New Brunswick ) this day of ) 2020. ) Commissioner of Oaths Being a Solicitor !E:3 Jonathan A. Taylor PROVINCE OF NEW BRUNSWICK COUNTY OF YORK I, WANDA HARRISON, of the City of Fredericton, in the County of York and Province of New Brunswick, MAKE OATH AND SAY: - I. THAT I am the Corporate Secretary and General Counsel of New Brunswick Power Nuclear Corporation and have custody of the Corporate Seal thereof. 2. THAT the Seal to the aforegoing instrument affixed is the Corporate Seal of New Brunswick Power Nuclear Corporation and that it was so affixed by Order of the Board of Directors of New Brunswick Power Nuclear Corporation. 3. THAT the signature "Gaetan Thomas" to the said instrument is the signature of Gaetan Thomas, President of New Brunswick Power Nuclear Corporation, and the signature "Wanda Harrison" thereto is my own signature. 4. THAT we are the proper officers to sign the aforegoing instrument on behalf of New Brunswick Power Nuclear Corporation. SWORN TO BEFORE ME at ) the City of Fredericton, in the ) County of York and Province ) of New Brunswick, this ) day of , 2020. ) Commissioner of Oaths ) Being a Solicitor ) !Loll Wanda Harrison Backup Fire Response to PLNGS Report to the Finance Committee January 22, 2020 MIC • Finance Committee Recommends to Common 2 Council: • That Common Council enter into an agreement with NB Power Corporation for the provision of Back-up Fire Response and Training per the terms and conditions as outlined in the agreement for the period March 1St 2020 — February 28th 2030 51 SAINT JOHN 3 • Stand-by Fee/annum • Response Training Recovery/annum • Agreement Total/annum • Plus any response recovery $77,544 $64,619 $142,163 • Rates are adjusted based on CPI and current salary for duration of the agreement. 6M SAINT JOHN El • The new ten (10) year agreement, (March 1st 2020 — February 28th 2030) significantly increases the annual contribution from NB Power. • Adjusted annually based on CPI and salary increases. • The new agreement increases the annual contribution from $77,544/annum (2018 rate) to $142,163/annum. • Net increase of $64,619/annum • 83 % revenue increase from current agreement. 53 SAINT JOHN 5 • The emergency response service is triggered upon the City's Public Safety Communications Centre receiving a call for assistance from the Point Lepreau Generating Station. Once a call is received the following will be dispatched immediately: • One Incident Commander; • One Engine and Crew; and • One Ladder Truck and Crew, ora second Engine and Crew should a Ladder Truck be unavailable. *5! SAINT JOHN • In addition to "Stand-by" Fee, there is a Usage Fee for Response: Dispatch Fee Engine or Ladder Light Vehicle Salary - $1000.00/occurrence - $300.00/hour - $125.00/hour -based on current collective agreement 6 55 �\ SAINT JOHN Agreement provides for: • A richer training budget. • Site specific training in a simulated environment for all Saint John firefighters to ensure proper training for hazards specific to the Point Lepreau Generating Station. • 6 hours of hazard specific training per firefighter/annum • Training conducted in house. 7 60. SAINT JOHN 0 • Vibrant Safe City — Contributing as part of a regional response helps to ensure the safety of our larger community. • Fiscally Responsible — Advancing the culture of continuous improvement - securing reimbursement for emergency incident planning, preparation and response is consistent with our fiscally responsible approach. SAINT JOHN • "All six of the nuclear facilities across Canada have some level of back up response agreement with neighbouring communities; only two of those facilities pay a fee for the backup fire response support and the new amount as tentatively agreed between Saint John and the Pt. Lepreau is the highest value for any of the reactors in Canada". • This agreement represents the best negotiated position for all parties. Failure to execute this agreement will result in a termination of the relationship that has been in place since 1982. • Without the agreement there will be a revenue loss of roughly 142k per annum. E SAINT JOHN 10 59 SAINT JOHN FINANCE COMMITTEE REPORT Report Date January 20, 2020 Meeting Date January 22, 2020 Chairman David Meritthew and Members of Finance Committee SUBJECT: Fundy Quay Seawall — Provincial Cost Sharing Request OPEN OR CLOSED SESSION This matter is to be discussed in open session of Finance Committee AUTHORIZATION Primary Author Commissioner/Dept. HeadCity Manager Jeffrey Cyr Kevin Fudge John Collin RECOMMENDATION That Common Council direct the Mayor to sign the attached letter to the Province of New Brunswick, requesting 50/50 cost sharing for the remaining Municipal portion of infrastructure costs for the refurbishment and raising of the Fundy Quay Seawall. EXECUTIVE SUMMARY The purpose of this report is to recommend a letter from Common Council to the Province of New Brunswick requesting cost sharing for the Seawall. PREVIOUS RESOLUTION On July 18th, 2019, the Finance Committee resolved that the submitted presentation on the Bi -Lateral Funding Application be received for information. On December 2nd, 2019, Common Council approved an option and ground lease agreement with Fundy Quay Development Inc., for the development of the Fundy Quay. STRATEGIC ALIGNMENT The development of the Fundy Quay is aligned with Council's priorities of Fiscal Responsibility, Growth and Propserity, and Vibrant Safe City. It is also a strategic Growth Concept identified in the City's Central Peninsula Neighbourhood Plan. Aii] -2 - REPORT In late 2018, the City of Saint John prepapred two infrastructure funding proposals which included cost sharing of the Seawall for Fundy Quay. This was undertaken through both the Federal Disaster Mitigation and Adaptation Fund (DMAF) and the Federal -Provincial Integrated Bi -Lateral Agreement (Bi -Lateral). Ultimately, funding was only available through the DMAF program at that time, as no Provincial matching funds were allocated to support the Bi -Lateral program. The City then accepted the DMAF funding, which provides a 40% Federal contribution to the costs of infrastructure construction, but does not include provincial cost sharing. Since the DMAF funding was accepted, the Province has committed funding to the Bi -Lateral program, for which the City has submitted an application for the remaining infrastructure required to allow for the Fundy Quay development to move forward. As these two programs are not stackable, the Seawall could not be included in the new Bi -Lateral application, which also leverages Provincial cost sharing. For this reason, we are recommending the City request that the Province agree to cost share the remaining municipal share of the Seawall project on a 50/50 basis. This would include a capital contribution from the Province of $1,215,000 in both 2020 and 2021, for a total of $2,430,000. This will allow for the City to more comfortably undertake the total infrastructure package required for the development of the Fundy Quay and represents a more balanced approach to cost sharing for the full package of infrastructure improvements for the Fundy Quay. It is currently estimated that the fiscal returns generated for the Province will be roughly 6 times greater than that received by the City of Saint John, while infrastructure commitments would be roughly equal, should the Province cost share the Seawall. SERVICE AND FINANCIAL OUTCOMES Should the Province decide to cost share the remaining portion of the Seawall refurbishment and raising, the City of Saint John would realize a total capital savings of $2.43M over 2020 and 2021. This will allow the City to more cost effectively complete the necessary infrastructure improvements for Fundy Quay. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS The Finance Department was consulted in the preparation of this report. ATTACHMENTS 1. Draft Letter to the Province of New Brunswick AI The Honourable Andrea Anderson -Mason, QC, Minister, Regional Development Corporation Chancery Place, 675 King Street Fredericton NB E313 IE9 Dear Minister Anderson -Mason: The City of Saint John's application for funding for site infrastructure improvements for the Fundy Quay, submitted in June of 2019, through the Investing in Canada Infrastructure Program is an important opportunity for both the City of Saint John and the Province of New Brunswick. The development of the Fundy Quay represents the best and highest profile development opportunity in New Brunswick and will energize the private sector through the development of an iconic and dynamic destination for people to gather, live, learn, play, grow and celebrate. This proposal is critical in addressing the site infrastructure challenges that have been a barrier to its development for the past 20 years, while also mitigating the impacts of sea level rise in Uptown Saint John. In late April of this year, Develop Saint John, acting on behalf of the City, unfolded a call for expressions of interest for the development of the site. Following a thorough review process, the Elias Management Group was selected as the successful private sector proponent to undertake the development of the property. Negotiations on a deal for the property concluded with the signing of an option agreement and ground lease between both parties in December of 2019. Cost Sharing of Seawall Infrastructure In late 2018, the City of Saint John prepared two infrastructure funding proposals which included cost sharing of the Seawall for Fundy Quay. This was undertaken through both the Federal Disaster Mitigation and Adaptation Fund (DMAF) and the Federal -Provincial Integrated Bi -Lateral Agreement (Bi -Lateral). Ultimately, funding was only available through the DMAF program at that time, as no Provincial matching funds were allocated to support the Bi -Lateral program. The City then accepted the DMAF funding, which provides a 40% Federal contribution to the costs of infrastructure construction, but does not include provincial cost sharing. Since the DMAF funding was accepted, the Province has committed funding to the Bi -Lateral program, for which the City has submitted an application for the remaining infrastructure required to allow for the Fundy Quay development to move forward. As these two programs are not stackable, the Seawall could not be included in the new Bi -Lateral application, which also leverages Provincial cost sharing. I' For this reason, we are requesting that the Province cost share the remaining municipal share of the Seawall project on a 50150 basis. This would include a capital contribution from the Province of $1,215,000 in both 2020 and 2021, for a total of $2,430,000. This capital investment would cover the Provincial contribution (30%) of the SKIM Seawall refurbishment, which will include: • The engineering and design of the refurbished Seawall; • The replacement of the existing steel sheet pile wall; • Repair and refurbishment of the existing concrete cope -walls and concrete cribs; • The raising of the Seawall by roughly 1.5m. Provincial cost sharing of this infrastructure investment will allow for the City to more comfortably undertake the total infrastructure package required for the development of the Fundy Quay and represents a more balanced approach to cost sharing for the full package of infrastructure improvements for the Fundy Quay. It is currently estimated that the fiscal returns generated for the Province will be roughly 6 times greater than that received by the City of Saint John, while infrastructure commitments would be roughly equal, should the Province cost share the Seawall. Fiscal Benefits for the Province The Provincial benefits flowing from both the infrastructure work proposed by the City and of the private sector development will be substantial. Based upon the infrastructure construction proposed as part of the City's funding application and the private sector investment proposed by the Elias Management Group, we anticipate the Province seeing a Return -on -Investment of nearly 18 -to -I over the next 25 years, based upon an economic and fiscal impact study prepared by TCI Management Consultants. A high level summary of the impacts are included below. For the Provinces modest investment to cost share the City's Investing In Canada Infrastructure Program application and the refurbishment of the Seawall, it is estimated that the Province could benefit: Highlights of the Fundy Quay Economic Impacts During Construction (One -Time Impacts) 2,043 Jobs in New Brunswick S 170.8 M in GDP $112.8 M in Labour Income S.32.7 M in Provincial Tax Revenue From Site Operations (Annual Impacts) 903 Jobs in New Brunswick $67 M in GDP $45.6 M in Labour Income ,51.3 M inAnnual ProvincialTax Revenue Sincerely, Don Darling Mayor, City of Saint John 2 63 Debunking the Mytq Finance Committee January 22 nd 2020 ll! Background Applicable Legislation Issued by the Public •r Accounting Board • ., • . • Chartered Professional Accountants Canada (CPA) To serve the public interest • strengthening • • in the public sector throuf h �eveloping, recommending and aining acceptance o accounting and financial report stangards of good practice' I PSAS a an extensionofe • -' Principles (GAAP) as defined by CPA Canada Requires the consolidationof all Saint John present one set of financial statements forpublic use 'Paragraph .01 CPA Canada Public Sector Accounting Handbook 67 �' ~� SAINT' JOHN Entities of Consolidation General Funds W&S Funds General Operating Fund Non -Consolidated Fund Based 2018Results -------I Consolidation Process I ✓ Addition of ABCs I I and other funds ✓ Elimination of grants, revenue, expenses between entities ✓ Adjustments I relating to PSAS I ✓ Adjustment of I capital transactions MMMMMIMP/P AZ, Consolidated 2018 Results General Fund Water & Sewer SJ Transit SJ Parking Develop SJ Harbour Station Aquatic Centre Trade & CC SJ Energy LBR Public Library Trust Funds Canada Games Total 8,137, 509 (4,847,044) 1,322,133 (918,924) (481,880) (991,360) (357,558) 21,114, 000 (212,628) (69,161) 21,472 (458,671) 22,193, 289 (P - SAINT' JOHN Consolidated Financial Statements Conclusion Questions ?, FA SAIG*T1' 7(7HN FINANCE COMMITTEE REPORT Report Date January 14, 2020 Meeting Date January 22, 2020 Chairman Councillor Merrithew and Members of Finance Committee SUBJECT: 2020 General Fund Operating Budget OPEN OR CLOSED SESSION This matter is to be discussed in open session of Finance Committee. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Craig Lavigne Kevin Fudge John Collin RECOMMENDATION It is recommended that the Finance Committee endorse the following revised resolutions for the 2020 General Fund Operating Budget and submit to Common Council for approval. RESOLVED by the Finance Committee at its meeting on January 22, 2020; 1. That the sum of $166,708,424 be the total Operating Budget of the City of Saint John for 2020; 2. That the sum of $125,842,974 be the Warrant of the City of Saint John for 2020; 3. That the tax rate for the City of Saint John be $1.785; 4. That Common Council orders and directs the levying by the Minister of Environment and Local Government of said amount on real property liable to taxation under the Assessment Act within the Municipality of Saint John; 5. That Common Council authorizes the Commissioner of Finance and Administrative Services to disburse, at a time acceptable to him, to the named Commissions, Agencies and Committees, the approved funds as contained in the 2020 budget. EXECUTIVE SUMMARY Common Council approved the 2020 Operating Budget at its meeting on December 16th, 2020. The budget brought forward included the full amount of 01 -2 - LNG property tax revenue, and corresponding adjustements to the Unconditional Grant and assessment fees. The Province of New Brunswick repealed the "Act to Comply with the Request of the City of Saint John on Taxation of the LNG Terminal" that capped the property assessment for the Terminal at $18 million and fixed the property tax revenue at $500,000 per year. As a condition for approval, the Province obliged the City to bear all financial risks associated with potential future appeals. The LNG tax base has not been appealed for 3 consecutive years. To conform with Provincial legislation and their own internal processes, the Province has advised it requires a Council resolution for the Operating Budget that reconciles to the tax base issued in November without the LNG assessment. The overall operating budget will remain same at $166,708,424. PREVIOUS RESOLUTION M&C 2019 — 350 — 2020 General Fund Operating Budget STRATEGIC ALIGNMENT N/A REPORT Common Council approved the 2020 Operating Budget at its meeting on December 16th, 2020. The budget brought forward included the full amount of LNG property tax revenue, reduction in Unconditional Grant and increase in assessment fees. The Province has communicated that resolutions from Council for the operating budget have to be based on the actual assessment tax base without the LNG tax base to conform to legislation and their internal processes. Therefor the Province requires resolution of Council without LNG assessment. Background: The Province of New Brunswick repealed the "Act to Comply with the Request of the City of Saint John on Taxation of the LNG Terminal" that capped the property assessment for the Terminal at $18 million and fixed the property tax revenue at $500,000 per year. As a condition for approval, the Province obliged the City to bear all financial risks associated with potential future appeals. The 2020 property assessment for the LNG Terminal is fixed at $18 million dollars until the Province notifies the City in May that the LNG assessment of $98 million has not been appealed for the fiscal year 2020. Once confirmed the City will record the additional property tax revenue and adjust for the reduction in W11 the unconditional grant. The deadline for appeal is April 1St, 2020. If there is an appeal, the LNG assessment will remain at $18 million until the appeal process comes to a conclusion. The LNG assessment has not been appeal over the last 3 consecutive budgets. Below is the summary of changes from previous approved budget and overall budget is the same at $166,708,424. Staff will report back to the Finance Committee once the deadline for appeal has passed and LNG property tax has been confirmed, as well as overall impact on the operating budget.. Summary of Changes Approved Budget Revised Budget Property Tax $127,966,924 $125,842,974 Unconditional Grant $16,131,081 $17,204,756 Provincial Assistance $8,242,960 $9,293,235 Tota I SERVICE AND FINANCIAL OUTCOMES N/A INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS N/A ATTACHMENTS N/A 01 Difference -$2,123,950 $1,073,675 $1,050,275 $0