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071107 Special Council Meeting MinutesMINUTES: Meeting for the Committee "Open Council" Review Access: • Public ID" Private /0%\ CALL TO ORDER DISCLOSURE OF PECUNIARY INTEREST OR THE GENERAL NATURE THEREOF None ADOPTION OF AGENDA No. 1 Moved by Councillor Stephenson Seconded by Councillor Beres AND RESOLVED THAT the Agenda as prepared for the Special Council Meeting of November 7, 2007 be adopted. "Carried" 2008 - ASSET MANAGEMENT PLANS 1.2008 Asset Management Plans /'''N Presented By: Directors Page 1 MINUTES: Meeting for the Committee "Open Council" Asset Mana:110607. doc i 07-043 Final Report.pdf Q 122W 1 2008 Capital Budget Priorities by Dep't Master List.xls itu12300.pdf It was noted that this is replacement, not new capital. We are funding 60% of the replacement cost. Overtime we are moving toward the cost coming from taxation and less coming from debt. Discussion was held regarding gas tax. Discussion was held regarding the overall number, which does not change much year to year, just the mix of the debt and taxes. Discussion was held regarding new assets, i.e. the skatepark. It was noted that new assets are added to the plan as required. Discussion was held regarding the Public Sector Accounting Board and the requirements for recording tangible capital assets, and having them show on the balance sheet, which makes it conform to the General Accounting requirement of the Private Sector, and those assets are depreciated. Depreciation was discussed. We do not know what they will require for depreciation rules and we likely won't know that until the 2009 budget. We currently record debt as an expenditure. In the future, it will no longer be treated as an expenditure. It will be replaced mostly by depreciation, but will still have to be funded. What we are buying into is an evening out of asset replacement. If we opt out of Asset Management, we could end up with spikes. We would still have to pay off the debt. This is a long term plan that separates us from many other municipalities. The funding plan that will be required through PSAB will be required by the Province in the future, but we are ahead of the game and fulfilling those requirements already. PSAB is forcing asset management through tangible capital assets, but we are ahead by already documenting. It was noted that, if one truck for this year is not approved, the money noes not stay in Operations, but rather in the overall asset management. There would be two choices - put amount into reserve or reduce the debt. 2.5% is $250,000, therefore 2.5% additional is being added to the budget for asset management. There is 1.2 million being raised from taxation in 2007. In 2006 we expended 2.6 million for capital projects - sources were 1 million from taxation - 1.25 million from debt - $250,000 came from reserves. This year it is 2.7 million for capital projects -1.3 million will come from taxation (last years plus 2.5%) - 1.2 million from debt - $200,000 from reserves. This is 2.7 on replacement assets. New capital will be dealt with through the budget process. Page 2 MINUTES: Meeting for the Committee "Open Council" Discussion was held regarding maintaining the course. In less than five years we will be paying for all the projects from taxation and then eventually we will be paying down debt, which will be fully retired in 2031. Discussion was held regarding how the 2.5% was determined. Discussion was held regarding new capital projects balancing with the overall budget. It was noted that this is information. Items requiring more information will be flagged. This is the checks and balances. Council approves the budget and asks questions at quarterly statements and when there are over and unders. Discussion was held regarding the funding of $438,000 for THI software. We will get funding for this software from Tilisonburg Hydro overtime. Discussion was held regarding a tangible asset, and if the hydro billing software should be an operating cost. Discussion was held regarding a pool of assets, being the computers. This discussion to be resurrected during the 2007 enterprise budget discussion. Discussion was held regarding the Fleet asset management. Discussion was also held regarding the Gas Tax. Reserve funds were discussed, and the use of reserves for the fire chassis. Discussion was held regarding reporting in the quarterly report that if we sell a replaced asset we show what we received for the sale. Discussion was held regarding re -sending a report that showed justification for maintaining a maintenance department internally because it was cheaper than contracting out our fleet. Discussion was also held regarding pictures of vehicles to be used for the fleet asset. Moved by Councillor Stephenson Seconded by Councillor Lewis THAT staff be asked to provide, in the next four months, a picture of all vehicles, with the fleet number to identify the vehicles. "Carried" Discussion was held regarding investigating a reduced cost from some of the existing local plants and/or local dealerships. Discussion continued regarding approaching the dealerships and a possible tax donation slip. Problems with competition caused by that was noted. Discussion was held regarding sponsorship on our vehicles. It was suggested that, when we go to tender, we could get the hybrid option as a cost comparison. Discussion was held regarding grass cutting and a report to consider outsourcing grass cutting compared with expanding our existing service. Discussion was held regarding ramp. The Fire Hall Air Quality was discussed, and it was noted that this is a replacement, and should be here. Discussion was held regarding the TSEC generator connection, as well as certain Page 3 MINUTES: Meeting for the Committee "Open Council" guidelines and rules that we use to make it black or white (maintenance or tangible /&'ON asset). Discussion was held regarding adding more items for Fire under fire dispatch. The downside of not doing the dispatch generator - it will potentially be a problem if our system goes down, as we don't have backup for it. It could jeopardize our service. NOTE: The Generator was flagged. The Chief will bring forward report. NOTE: The Range Hood was flagged, to increase that and add other resources. One document will be provided, if one isn't finished. Discussion was held regarding what Conservation is about. Discussion was held regarding the Simcoe Street Sidewalk. The County is replacing like for like sidewalks, and this is our asset. We will have to carry this as an asset as when it gets replaced. Discussion was held regarding curbing required for parking lots that abut municipal roads Discussion was also held regarding new sidewalks for Simcoe Street. Discussion was held regarding the County contributing to the McKenzie street project. Newell Road was discussed. It needs to be done, and includes storm water management work. Quartertownline to be linked together. /0E1 Quarterline Concession to North Street should be revised to William to North Street. Discussion was held regarding previous work done in the Newell Road area. Participark Deck Replacement is for the deck of the former train bridge (now pedestrian bridge). Timbers on top of the bridge are rotting this would put new concrete in place of the bridge. This would also sand blast the steel and repaint. Concerns were noted regarding approving this bridge expenditure and not approving sidewalks from Charlotte to Quarterline - on Concession Street. NOTE: This should be new capital. It will be removed but we will put an asterisks on it. Moved by Councillor Stephenson THATthe deck replacement be removed from asset management and that those funds be used to finance the sidewalks on Concession Street from Charlotte Avenue to Quarterline. "There was no seconder to this motion." The Director of Operations reported that it is going to get to a point where we are not going to be able to maintain that bridge, and soon it will have to be closed. That could be as early as 2008. Deputy Mayor Renaud commented that this is a lot of money, and noted we need to put sidewalks on Concession Street. It added that what we should be asking is how we can do both. Can we get some funding? Concession Street from Charlotte to Quarterline should be considered in a regular capital /604� budget. Page 4 F MINUTES: Meeting for the Committee "Open Council" NOTE: Item 6 to be red flagged and reported on. What is our strategy and our asset management strategy and what is our plan? Discussion was held regarding development charges. Development charges for those sidewalks will take some time to generate. Councillor Lewis suggested that perhaps this bridge project can be done over two years. That might give us some time for donations or fundraising opportunities. Moved by Councillor Stephenson THAT any existing street be considered an asset and that any sidewalks that not be there be included as an asset. "There was no seconder to this motion." It was noted that there is confidence in the directorship. It was suggested we look at new and existing and perhaps fix the existing. Maybe we need to communicate to AMO that we need more funding. Moved by Mayor Molnar Seconded by Councillor Lewis THAT Concession Street sidewalks be given priority in the new capital budget. "Carried" Quarterline Road - Concession - Baldwin - It was suggested, we need a consolidated report - bring forward the COMRIF report. There needs to be more municipal infrastructure funding. Discussion was held regarding a map that shows all of our trail system. Discussion was also held regarding some major projects, and perhaps one year that is all we should do. Discussion was held regarding incremental assessment from the Quarterline area. The LED light program was discussed, and the savings it will show. Discussion was held regarding an overall strategy for the Airport. It was noted that the floor of the Airport building is rotting, the furnace needs replacing, and the roof needs to be replaced. Discussion was held regarding the rental of a trailer for a period of time. NOTE: This item will be flagged - Airport Terminal Building. Discussion was held regarding Cemetery cleanliness and the by-laws of the Cemetery. Discussion was held regarding the Parks operation building. This is marked, but it is intended to be self-funded. Discussion was held regarding chair and table replacement. It was asked if Museum is operational. Surface treatment to be removed. Discussion was held regarding a Museum fundraiser. It was suggested that the CAO and Page 5 MINUTES: Meeting for the Committee "Open Council" Treasurer take a look at all of the trust funds and consolidate where they can be. There were comments regarding the budget. It was noted that Senior management meets next week regarding the budget. When something is'red flagged' it is not in the budget. RESOLUTIONS ADJOURNMENT Meeting adjourned. Approval Received: (1 of 1) Lana Lund/Tillsonburg (Tuesday November 20, 2007 10:16 PM) /001N Town of Tillsonburg Page 6