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001220 Regular Council AgendaK THE CORPORATION OF THE TOWN OF TILLSONBURG COUNCIL AGENDA MONDAY — December 20`h, 2000 —3:00 P.M. ORDER OF BUSINESS: A. Closed Session (3:00 to 3:30) AND RESOLVED THAT Council move into Executive — Closed Session. B. Adoption of Agenda AND RESOLVED THAT the Agenda as prepared for the Council Meeting of December 20`h11 2000 be adopted. D. Declarations — Municipal Conflict of Interest Act E. Presentations F. Appointments/Deleeations G. Committee of Adiustment H. Public Hearings I. Reports (3:30) 1. Director of Corporate Services RE: Banking Services "001217 banking report.doe AND RESOLVED THAT the Council of the Town of Tillsonburg hereby accept the banking services proposal dated November 151h, 2000, as submitted by the CIBC; AND THAT the term of the agreement be for a period of three (3) years to commence January 1, 2001 and terminate December 31, 2003. 2. 2000 Year End Reserve Allocations MENU Ej "001215 yearend reserve allocation. J. Communications K. Information L. Resolutions M. By -Laws N. Notice of Motion O. Closed Session AND RESOLVED THAT Council move into Executive — Closed Session. REPORT Town of Tillsonburg DATE: December 19, 2000 TO: David C. Morris, CAO NO: 001217 banking services report FROM: Lynn S. Buchner, CGA, AMCT, Director of Corporate Services RE: Banking Services PURPOSE The purpose of this report is to provide an analysis of submissions received in response to our request for proposals for banking services. BACKGROUND Earlier this year Staff received direction from Council to solicit requests for quotations for the following services: ■ banking; ■ external auditing; and ■ insurance program. As a result of this invitation the Town received four submissions for the provision banking services. The contending financial institutes are CIBC, Bank of Montreal, Royal Bank and Scotiabank. As you will recall, the RFP provided the details of banking services required by the Town. The following summarizes the cost of the banking services submitted by the various financial institutes: Report - 2 - December 19, 2000 Banking Services SERVICE CIBC SCOTIABANK ROYAL MONTREAL Annualized service charges $4,332 $9,660 $17,874 $16,224 Credit Card (2) $0 $0 $0 $60 Annual Interest Income (based on $3.5 m avg monthly balance) $165,357 $156,654 $164,395 $152,302 Annual Interest Expense on Operating Loan (based on $500,000) $530,0001 $531,250 $530,000 $527,500 assumed prime rate of 6.5% The proposals and fees contained therein, were submitted with an understanding of confidentiality. The above analysis identifies the CIBC as the most cost effective of the four proposals submitted. The most significant variance in costs is in the annualized service charge which is largely due to the Royal and Montreal charging $1,200 per month for electronic access to accounts, transactions and reports. Scotiabank's monthly fee for this service is $200 while the CIBC has waived any fee for electronic access. Emphasis on a decision should be based on the annual interest income net of the annualized service charges since it is expected that the consolidated bank balance should remain in a credit position. Based on that premise, the CIBC leads with a positive contribution of $161,000. There is quite a wide variance to the next contender, being Scotiabank, at $147,000, Royal Bank at a near $146,500 and the Bank of Montreal trailing at $136,000. This represents a 9.5% difference between the CIBC and Scotiabank. Another important consideration is customer service. From the proposals received and discussions that took place with the prospective Account Managers, I have concluded that the level of customer service would be fairly similar, with each participant anxious to earn the Town's business. The CIBC, Royal Bank and Scotiabank each have Account Managers that are permanently located at the Tillsonburg Branch. The Bank of Montreal's Account Manager's main office is located in Simcoe. When attempts to contact the various Account Managers and/or their assistants some were easier to make contact with than others. Business hours are very similar with the only exception being the Royal Bank whose hours extend to 8 p.m. on Friday evenings. This however, does not play an important role in our decision since we will have access to our accounts, transactions and reports via our PC and deposits in all cases can be made through the night depository service. Consideration has also been given to the compatibility of each of the participants' services with the existing financial service provisions offered by the Town. More specifically, the preauthorized payment function of the Utility and the Town would theoretically work seamlessly with any of the institutions. RECOMMENDATION Based on the supporting financial analysis and the fact that the Town has an established relationship with the CIBC, even though all of the contending participants have offered to assist with transition costs if we were to decide to award our business to another institution, it would significantly minimize confusion for tax and utility services if the Town were to consolidate all E Report - 3 - December 19, 2000 Banking Services banking services with the CIBC. Therefore, it is recommended that the CIBC provide banking services for the Town of Council to consider the following resolution: "THAT Council of the Town of Tillsonburg hereby accepts the banking services proposal dated November 15, 2000 as submitted by the CIBC; AND THAT the term of the agreement be for a period of three (3) years to commence January 1, 2001 and terminate December 31, 2003." Respectfully Submitted, Lynn S. Buchner, CGA, AMCT 3 REPORT Town of Tillsonburg DATE: December 19, 2000 TO: David C. Morris, CAO NO: 001215 FROM: Lynn S. Buchner, CGA, AMCT, Director of Corporate Services RE: 2000 Year End Reserve Allocations PURPOSE To present 2000 year-end reserve adjustments for Council's consideration. BACKGROUND Reserve allocations, both contributions to and from reserves, were established and approved by Council at the time the Business Plans were approved earlier in the year. However, some of the capital projects were not completed during the course of the year, and therefore it is suggested that the associated reserves remain in reserve for future use. The following is a summary of the capital projects that were to be financed by reserve allocations as approved in the 2000 Business Plan: BIA $113,200 Beautification of Downtown — lamp posts — millennium project Corporate Administration $495,833 Sick leave credit payout — actual costs were $595,028, $486,000 of which were for police services $ 95,372 CLASS software — implementation should be complete by the end of this year, therefore, any residual not paid will be set up as payable in 2000 Customer Service �x Report - 2 - 2000 Year End Reserve Allocations December 19, 2000 Planning Airport '✓ ONTO6i� !Y .: % �M fiC �7riofi•J-,rw-wacr�i. /af♦c]c�.� >/ W y } ✓ K!� M `/. A-f•Xi�, {y ��' ♦i'�'M 2. _�.y ' .i 11.♦T' �iC.i �^�1'(�. S �±� i 1�C"t �i . p1�'VdG .ane�+�tF �LdEet IA.4a.:1<^ a 47(.tx �.i"iJ 1-s\:' K ' �.eSM- X f s1a11oi off` _fi'sfbrmh� pled .... MINIM, "50-zE �6�� �.� <i'o•�, Qrage ► c �.ple ed w.l � .EIL.�Y t a�V.S L't1 Museum VO 1'hesrem'a;n�r�g coso€ cpaere f'f�'nd� a n C.. ... .. % ✓< ., <.rwar .C.. ... •.. .a .. ..y<..e{ Y. ]6,. I'MMww�eNe..V.il..a! VJY.S.l��'Yi. -.K �J J'J Recreation $122000 Arena clock repairs — completed actual costs $5,800 Engineering $203,000 . tra. Electronic survey station — ordered at $23,000 'I.RrBA:Y:...i .r. 'Y a. / ♦ MJ.. ,SYhX�� Fleet $242000 $312000 Unit 22 — %2 Ton Truck - $24,011 Unit 89 — John Deere Tractor — $261236 Roads $.$ 'tt t fir 4 WNW forbrnlahona�rkj, nod` r kt+ Rt.►.• 'M. �. P j ,x y kfk a .+tries, }.. Parks $12,253 Soccer field Report - 3 - 2000 Year End Reserve Allocations December 19, 2000 Sanitary Sewers $3401,000 Sewage Treatment Plant upgrade — carried over from 1999 - completed Hydro --2 A 235 7`arf i c ;y c `mplete+c ; 5 . .li!T/. '.J 'W • Sn 'iCY). i':.`t+A Nii`.:. 1' fi..$MJ.s+4: 4i, i. .:. 4/ l: J Water '1{- - >.�.. �'JsJOCa,...e..... : s Klh. y ytz,y�c.�z l j .a. �'.' r yg j'[ -- re vfy.+3C.i%1 i < -.t.�v �i•.n ;�- n $403,000 Misc mains — Young Street $303,000 Misc services `C Al l OW Wd $453,000 Meters $103,000 Tools & equipment $47000 Hydrant pressure recorders $5,000 Water level indicators Further to those capital items budgeted for in 2000 to be financed from reserves, the following capital items were budgeted for 2000 to be financed from taxation and were not completed: Roads $73,500 Retaining Wall — 20 Broadway $102000 Erosion Control — 71 Trottier $601,000 Concession Street Sidewalk $35,500 Rubber mud rail — Fourth Street crossing $65,000 Caboose relocation Parks $73,500 Top dresser $2511000 Playground equipment Report - 4 - 2000 Year End Reserve Allocations December 19, 2000 Sanitary Sewer $103,000 Manhole — Otter Creek erosion RECOMMENDATION Since some of the capital projects approved in the 2000 Business Plan were not completed in the year, it is recommended that the reserves allocations associated with those projects remain in reserve for future use. Therefore, it is suggested that Council consider the following resolution: "THAT Staff Report 001215 regarding 2000 Year End Reserve Allocations be received; AND THAT the following reserve allocations previously approved in the 2000 Business Plans remain in reserve for purposes to be considered through future Business Plans: Customer Service $53,000 Gas heater for truck bay — not completed Planning $10,000 South -end redevelopment project — not completed Airport $5%000 Taxiway to private hangers — not completed $430000 Installation of transformer — not completed $3,200 Grass runway restoration — not completed $203,000 Pole barn for storage — not completed Museum $292 The remaining costs of capital were to be funded from the Nevada Account Recreation $6,200 Arena clock repairs — completed actual costs $5,800 Engineering $20,000 Aerial mapping — not completed Roads $913,864 Pedestrian bridge for Cornation Park — not completed $16,000 Parking lots — not completed Hydro $2685,000 Various capital projects — completed $160,235 Water Report - 5 - 2000 Year End Reserve Allocations December 19, 2000 $7001,000 Well site #13 — not completed — County function $5,000 Well site test — Martin — not completed — County function $252000 Booster pump — Southridge — not completed $302000 Hwy 19 — 20" line — not completed AND THAT the following capital projects approved in the 2000 Business Plans to be financed through general taxation be allocated to reserves for completion in 2001: Roads $71,500 Retaining Wall — 20 Broadway $103,000 Erosion Control — 71 Trottier $605,000 Concession Street Sidewalk $32500 Rubber mud rail — Fourth Street crossing $62,000 Caboose relocation Parks $72500 Top dresser $25,000 Playground equipment Sanitary Sewer $107000 Manhole — Otter Creek erosion THE CORPORATION OF THE TOWN OF TILLSONBURG COUNCIL AGENDA MONDAY — December 20`h, 2000 —3:00 P.M. ORDER OF BUSINESS: A. Closed Session (3:00 to 3:30) d AND RESOLVED THAT Council move into Executive — Closed Session. B. Adoption of A enda AND RESOLVED THAT the Agenda as prepared for the Council Meeting of December 20`h, 2000 be adopted. D. Declarations — Municipal Conflict of Interest Act E. Presentations F. Appointments/Delegations G. Committee of Adiustment H. Public Hearings I. Reports (3:30) 1. Director of Corporate Services RE: Banking Services "001217 banking report.doc" AND RESOLVED THAT the Council of the Town of Tillsonburg hereby accept the banking services proposal dated November 15`h, 2000, as submitted by the CIBC; AND THAT the term of the agreement be for a period of three (3) years to commence January 1, 2001 and terminate December 31, 2003. 2. 2000 Year End Reserve Allocations "001215 year end reserve a[IocaUons.dc J. Communications K. Information L. Resolutions M. By -Laws N. Notice of Motion U. Closed Session AND RESOLVED THAT Council move into Executive —Closed Session. REPORT Town of Tillsonburg DATE: December 19, 2000 TO: David C. Morris, CAO NO: 001217 banking services report FROM: Lynn S. Buchner, CGA, AMCT, Director of Corporate Services RE: Banking Services PURPOSE The purpose of this report is to provide an analysis of submissions received in response to our request for proposals for banking services. BACKGROUND Earlier this year Staff received direction from Council to solicit requests for quotations for the following services: ■ banking; ■ external auditing; and ■ insurance program. As a result of this invitation the Town received four submissions for the provision banking services. The contending financial institutes are CIBC, Bank of Montreal, Royal Bank and Scotiabank. As you will recall, the RFP provided the details of banking services required by the Town. The following summarizes the cost of the banking services submitted by the various financial institutes: Report - 2 - December 19, 2000 Banking Services SERVICE CIBC SCOTIABANK ROYAL MONTREAL Annualized service char es $4,332 $9,660 $17,874 $16,224 Credit Card (2) $0 $0 $0 $60 Annual Interest Income (based on $3.5 m avg monthly balance) $ l 65,357 $156,654 $164,395 $152,302 Annual Interest Expense on Operating Loan (based on $500,000) $530,000 $531,2501 $530,000 $527,500 assumed prime rate of 6.5% The proposals and fees contained therein, were submitted with an understanding of confidentiality. The above analysis identifies the CIBC as the most cost effective of the four proposals submitted. The most significant variance in costs is in the annualized service charge which is largely due to the Royal and Montreal charging $1,200 per month for electronic access to accounts, transactions and reports. Scotiabank's monthly fee for this service is $200 while the CIBC has waived any fee for electronic access. Emphasis on a decision should be based on the annual interest income net of the annualized service charges since it is expected that the consolidated bank balance should remain in a credit position. Based on that premise, the CIBC leads with a positive contribution of $161,000. There is quite a wide variance to the next contender, being Scotiabank, at $147,000, Royal Bank at a near $146,500 and the Bank of Montreal trailing at $136,000. This represents a 9.5% difference between the CIBC and Scotiabank. Another important consideration is customer service. From the proposals received and discussions that took place with the prospective Account Managers, I have concluded that the level of customer service would be fairly similar, with each participant anxious to earn the Town's business. The CIBC, Royal Bank and Scotiabank each have Account Managers that are permanently located at the Tillsonburg Branch. The Bank of Montreal's Account Manager's main office is located in Simcoe. When attempts to contact the various Account Managers and/or their assistants some were easier to make contact with than others. Business hours are very similar with the only exception being the Royal Bank whose hours extend to 8 p.m. on Friday evenings. This however, does not play an important role in our decision since we will have access to our accounts, transactions and reports via our PC and deposits in all cases can be made through the night depository service. Consideration has also been given to the compatibility of each of the participants' services with the existing financial service provisions offered by the Town. More specifically, the preauthorized payment function of the Utility and the Town would theoretically work seamlessly with any of the institutions. RECOMMENDATION Based on the supporting financial analysis and the fact that the Town has an established relationship with the CIBC, even though all of the contending participants have offered to assist with transition costs if we were to decide to award our business to another institution, it would significantly minimize confusion for tax and utility services if the Town were to consolidate all K Report -3 - December 19, 2000 Banking Services banking services with the CIBC. Therefore, it is recommended that the CIBC provide banking services for the Town of Council to consider the following resolution: "THAT Council of the Town of Tillsonburg hereby accepts the banking services proposal dated November 15, 2000 as submitted by the CIBC; AND THAT the term of the agreement be for a period of three (3) years to commence January 1, 2001 and terminate December 31, 2003." Respectfully Submitted, Lynn S. Buchner, CGA, AMCT 3 REPORT Town of Tillsonburg DATE: December 19, 2000 TO: David C. Morris, CAO NO: 001215 FROM: Lynn S. Buchner, CGA, AMCT, Director of Corporate Services RE: 2000 Year End Reserve Allocations PURPOSE To present 2000 year-end reserve adjustments for Council's consideration. BACKGROUND Reserve allocations, both contributions to and from reserves, were established and approved by Council at the time the Business Plans were approved earlier in the year. However, some of the capital projects were not completed during the course of the year, and therefore it is suggested that the associated reserves remain in reserve for future use. The following is a summary of the capital projects that were to be financed by reserve allocations as approved in the 2000 Business Plan: BIA $11,200 Beautification of Downtown — lamp posts — millennium project Corporate Administration $4953,833 Sick leave credit payout — actual costs were $595,028, $486,000 of which were for police services $ 95,372 CLASS software — implementation should be complete by the end of this year, therefore, any residual not paid will be set up as payable in 2000 Customer Service l ,;000dss beai�r % f'ruck .bay n Gbrnl Report - 2 - 2000 Year End Reserve Allocations December 19, 2000 Planning oo �..cti-. s`' /.J.t Efii �n� ^. t.�`4..: e1_.'. ♦ww l: .. :v«+u� T— L•,4 `► k.t_-a_.... .. .. _. �.. a.^ A.YYiCa:::SN;^ Airport 610�: i[s ♦ !. .-, Q1,070,80" ._n»rt.� e t .:.�tl�anei� not^e��m���t ft } f i. . . {a L�IY. 1ldG N w . cf:tw V s att+ of . n M ifik ` t ' / 3A�' FOLK i. td•I'h wfiA..{+'�?:. P..'•.!� VnT.XtAaJSI I ��1Yl].(',4, �..fi-T i1• ` �l.1lh R. .rv.. 4. r: n Iwrn I.w `r�y�����p�Vt�/M Museum .. x �. .., i.w• s-_.. .. ... 'r i .. .r.. N..: •. . � � f..-.... .. a.,s_....+r..s- .-sn.:.....��:�r..n..�:�x �., .'�� Recreation $122000 Arena clock repairs — completed actual costs $5,800 Engineering $203,000 Electronic survey station — ordered at $23,000 Pn�no�cnplet Fleet $242000 $31,000 Unit 22 — % Ton Truck - $243011 Unit 89 — John Deere Tractor — $26,236 Roads L . «r� rS"aIrw74.. , VISION, t r ,p;�L•r' �ECis %'j' a�SC' ''�'{r��`T�'°'aCI� '►r/Ry'.�2?'"{.r �.r�+�r �i... OSI s.xrx— � ���. V����.:sr��i�t�V,� (iL i*'rP •�llo ,. �n`'�ik,.as ._�.>1©6r�nneted Parks $122253 Soccer field Report - 3 - 2000 Year End Reserve Allocations December 19, 2000 Sanitary Sewers $34031000 Sewage Treatment Plant upgrade — carried over from 1999 - completed Hydro .er>r�w. •'r.....,r%latiaN "'6LV..ML 'i'.3pf. s .R.�sia�2 ,C...r :x... .xKf 'I Water ,.ZKr i..vrr �w 't•�R+T ,dNh NOD $40,000 Misc mains — Young Street $302000 Misc services s... k'k ...•�.• <.'0.... ; f' � �e?. r•�•w:. ,i ^asr..»..z v:r� •1. , n• r>..at.....�:. ./'MC� kf a F! $453,000 Meters $1010000 Tools & equipment $42000 Hydrant pressure recorders $5,000 Water level indicators Further to those capital items budgeted for in 2000 to be financed from reserves, the following capital items were budgeted for 2000 to be financed from taxation and were not completed: Roads $73,500 Retaining Wall — 20 Broadway $102000 Erosion Control — 71 Trottier $60,000 Concession Street Sidewalk $3,500 Rubber mud rail — Fourth Street crossing $65,000 Caboose relocation Parks $7,500 Top dresser $255,000 Playground equipment Report - 4 - 2000 Year End Reserve Allocations December 19, 2000 Sanitary Sewer $10,000 Manhole — Otter Creek erosion RECOMMENDATION Since some of the capital projects approved in the 2000 Business Plan were not completed in the year, it is recommended that the reserves allocations associated with those projects remain in reserve for future use. Therefore, it is suggested that Council consider the following resolution: "THAT Staff Report 001215 regarding 2000 Year End Reserve Allocations be received; AND THAT the following reserve allocations previously approved in the 2000 Business Plans remain in reserve for purposes to be considered through future Business Plans. - Customer Service $5,000 Gas heater for truck bay — not completed Planning $103,000 South -end redevelopment project — not completed Airport $591,000 Taxiway to private hangers — not completed $42000 Installation of transformer — not completed $3,200 Grass runway restoration — not completed $202000 Pole barn for storage — not completed Museum $292 The remaining costs of capital were to be funded from the Nevada Account Recreation $6,200 Arena clock repairs — completed actual costs $5,800 Engineering $202000 Aerial mapping — not completed Roads $913,864 Pedestrian bridge for Cognation Park — not completed $163,000 Parking lots — not completed Hydro $268,000 Various capital projects — completed $160,235 Water Report - S - 2000 Year End Reserve Allocations December 19, 2000 $7003,000 Well site # 13 — not completed — County function $53,000 Well site test — Martin — not completed — County function $251,000 Booster pump — Southridge — not completed $302000 Hwy 19 — 20" line — not completed AND THAT the following capital projects approved in the 2000 Business Plans to be financed through general taxation be allocated to reserves for completion in 2001: Roads $73,500 Retaining Wall — 20 Broadway $101,000 Erosion Control — 71 Trottier $603,000 Concession Street Sidewalk $32500 Rubber mud rail — Fourth Street crossing $6,000 Caboose relocation Parks $73,500 Top dresser $25,000 Playground equipment Sanitary Sewer $101,000 Manhole — Otter Creek erosion