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HomeMy WebLinkAbout2017-09-12 Special MeetingSpecial General Government Committee Minutes September 12, 2017 - 1 - Minutes of a meeting of the Special General Government Committee held on Tuesday, September 12, 2017 at 9:30 AM at the Garnet B. Rickard Recreation Complex. Present Were: Mayor A. Foster, Councillor S. Cooke, Councillor R. Hooper, Councillor J. Neal, Councillor W. Partner, Councillor W. Woo Absent: Councillor C. Traill Staff Present: A. Allison, G. Acorn, T. Cannella, , D. Crome, F. Horvath, F. Langmaid, M. Marano, N. Taylor, G. Weir, A. Greentree, B. Radomski, L. Kent The following staff were present until 11:35 AM: S. Bayes, S. Brake, R. Groen, L. Gordon, H. Lynch, L. Longhurst, M. St. Croix, E. Watson 1 Call to Order Mayor Foster called the meeting to order at 9:30 AM. 2 Adopt the Agenda Resolution #GG-394-17 Moved by Councillor Cooke, seconded by Councillor Hooper That the Agenda for the Special General Government Committee meeting of September 12, 2017 be adopted as presented. Carried 3 Declaration of Interest There were no declarations of interest stated at this meeting. 4 Presentations 4.1 Nancy Taylor, Director of Finance/Treasurer, regarding the Asset Management Plan Nancy Taylor, Director of Finance/Treasurer, made a presentation regarding the Asset Management Plan (AMP). Ms. Taylor explained the objective of today’s Special Meeting is to allow Members of Council to understand the concept of a Corporate Asset Management Plan. The final AMP will be presented to the General Government Committee on September 25, 2017. Ms. Taylor reported that the AMP has been developed wholly by internal resources, and she introduced staff from various departments who were very involved in developing Special General Government Committee Minutes September 12, 2017 - 2 - this significant plan. It was underscored that this is a corporate AMP, not a budget document but rather a high level document which is provides a strategy to move forward in managing Clarington’s capital assets over a 20-year period. The AMP is a living document, that is intended to meet provincial requirements. Through her verbal and power point presentation, Ms. Taylor highlighted the following: What an AMP is, Facts and Figures, and how choices impact asset management planning Limitations of a Corporate Asset Management Plan Vision for desired outcomes Current AMP legislative requirements including proposed legislative deadlines for future “add-on” plans and reports which will build on the current AMP discussed today (the Municipal AMP must be updated at least every 5 years after January 1, 2022) BMA Study Comparative indicating Clarington’s percentage of assets needing repair or replacement in is in the middle at 38.1% Breakdown of costs to replace Clarington’s current assets by type, with a total infrastructure deficit of $91,939,659 Methodology for determining risk and priorities through an analysis of determining asset condition and calculating the consequence of failure and highlighted assumptions used in the methodology – certain categories are assessed based on age priority ranking with further consideration being given to using additional rankings in the future Risks and priorities and top 10 of each asset type Mayor Foster left the room at 10:35 AM. Councillor Woo chaired this portion of the meeting. Mayor Foster re-entered the room at 10:38 AM and assumed Chair. Recess Resolution #GG-395-17 Moved by Councillor Woo, seconded by Councillor Cooke That Committee recess for five minutes. Carried The meeting resumed at 10:56 AM with Mayor Foster in the Chair. Special General Government Committee Minutes September 12, 2017 - 3 - The Director of Finance/Treasurer continued her presentation of the AMP highlighting the following: Key factors affecting service levels Objectives of the AMP Capital Budget Implications of the AMP and financial management strategies Provincial Guidelines for financial management strategy The three AMP Financial Scenarios considered: o 1% increase for first 10 years and 1.5% increase for next 10 years o 1% increase for first 10 years and 1.5% increase for next 10 years – with a roads cap of $9.5 million per year o 2% increase for first 10 years and 1% increase for next 10 years Tax Levy support to Capital (without growth consideration) Application of Reserve Funds Utilization of Debt, being a key consideration factor for Council as the Director of Finance/Treasurer suggested a Debt Policy be set by Council respecting the maximum debt level to be used as a managed financing tool Clarified that effectively the benefit of this exercise is to borrow money in a managed approach to enable expenditures for roads and capital infrastructure at the most economical time Next steps The Director of Finance/Treasurer distributed a copy of the 2017 Asset Management Plan and advised that this document will constitute the attachment to the staff report regarding this matter which will be presented to Committee for consideration at the September 25, 2017 General Government Committee meeting. Ms. Taylor reminded members they are considering a strategy and not a budget when considering the AMP. Members were encouraged to contact the Director of Finance or Erika Watson if they have any questions regarding the AMP. Should there be questions concerning specific assets, Members are encouraged to contact the respective Department Head. The Director of Finance/Treasurer responded to questions of Committee. Recess Resolution #GG-396-17 Moved by Councillor Woo, seconded by Councillor Cooke That Committee recess for five minutes. Carried The meeting resumed at 11:40 AM with Mayor Foster in the Chair.