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Home My WebLink About02/24/2020 Special Meeting Special General Government Committee Revised Agenda Date:February 24, 2020 Time:9:30 AM Location:Council Chambers, 2nd Floor Municipal Administrative Centre 40 Temperance Street Bowmanville, Ontario Inquiries & Accommodations: For inquiries about this agenda, or to make arrangements for accessibility accommodations for persons attending, please contact: Samantha Gray, Committee Coordinator, at 905-623-3379, ext. 2106 or by email at sgray@clarington.net. Alternate Format: If this information is required in an alternate format, please contact the Accessibility Coordinator, at 905-623-3379 ext. 2131. Audio Record: The Municipality of Clarington makes an audio record of General Government Committee meetings. If you make a delegation or presentation at a General Government Committee meeting, the Municipality will be audio recording you and will make the recording public by publishing the recording on the Municipality’s website. Noon Recess: Please be advised that, as per the Municipality of Clarington’s Procedural By-law, this meeting will recess at 12:00 noon, for a one hour lunch break, unless otherwise determined by the Committee. Cell Phones: Please ensure all cell phones, mobile and other electronic devices are turned off or placed on non-audible mode during the meeting. Copies of Reports are available at www.clarington.net/archive *Late Item added after the Agenda was published. Pages 1.Call to Order 2.Land Acknowledgement Statement 3.Declaration of Interest 4.Delegations 4.1 Liz White, Animal Alliance, Regarding Recommendation #3 in Report CAO-006-20, Organizational Structure Review - Implementation Plan (Grant Thornton Recommendation #8: Outsource Animal Services) 4.2 Kim Marchbank, Team Chelsea Lost Pet Search Group, Regarding Recommendation #3 in Report CAO-006-20, Organizational Structure Review - Implementation Plan (Grant Thornton Recommendation #8: Outsource Animal Services) 4.3 Mel Diebel, Barn Cat Co-op, Regarding Recommendation #3 in Report CAO-006-20, Organizational Structure Review - Implementation Plan (Grant Thornton Recommendation #8: Outsource Animal Services) 4.4 Martin Field Regarding Recommendation #3 in Report CAO-006-20, Organizational Structure Review - Implementation Plan (Grant Thornton Recommendation #8: Outsource Animal Services) 4.5 Andrea Maenza Regarding Recommendation #3 in Report CAO-006-20, Organizational Structure Review - Implementation Plan (Grant Thornton Recommendation #8: Outsource Animal Services) *4.6 David Crome Regarding Report FND-002-20, 2020 Operating and Capital Budgets *4.7 Libby Racansky Regarding Report FND-002-20, 2020 Operating and Capital Budgets 5.Presentations 5.1 Trevor Pinn, Director of Finance/Treasurer – 2020 Operating and Capital Budget February 24, 2020 Special General Government Committee Meeting Page 2 6.Communications - Receive for Information 6.1 Petition from Melinda Diebel Regarding Recommendation #3 in Report CAO-006-20, Organizational Structure Review - Implementation Plan (Grant Thornton Recommendation #8: Outsource Animal Services) 5 7.Communications - Direction *7.1 Correspondence regarding Recommendation #3 in Report CAO-006-20, Organizational Structure Review - Implementation Plan (Grant Thornton Recommendation #8: Outsource Animal Services) 111 Angela James; Caroline Lane; Catherine Rooney; Cheryl Soper; Dave Taylor; Denise Pepin De Vinas; Diane Rancier; Erica Efthimiades; Heather Olynyk; Hilary Oudyk; J. Bronatzky; Jenny Brown; Kelli Greer; Lara Campbell; Linda Power; Melinda Diebel; Michel Burley; Michelle Marleau; Sherri MacNeall; Terri Daniels; Rhiannon Lane; Kim Marchbank; Adam Lamplugh; Aileen and William Hockett, Janet Grixti, Kris and Dave Dennis, Patricia McKee (Motion to Refer to Recommendation #3 in Report CAO-006-20, Organizational Structure Review - Implementation Plan (Grant Thornton Recommendation #8: Outsource Animal Services) *7.2 David Crome Regarding Report FND-002-20, 2020 Operating and Capital Budgets 146 (Motion to Refer to the Consideration of Report FND-002-20, 2020 Operating and Capital Budgets) 8.Staff Reports 8.1 Report CAO-006-20 - Organizational Structure Review - Implementation Plan 150 8.2 Report FND-002-20 - 2020 Operating and Capital Budgets 182 9.Unfinished Business 9.1 FND-027-19 Audit Committee and Value for Taxpayer Committee 237 (Referred from General Government Committee meeting of October 15, 2019) February 24, 2020 Special General Government Committee Meeting Page 3 10.Confidential Reports 10.1 Confidential Report CAO-007-20 - Organizational Structure Review - Human Resource Issues (Distributed Under Separate Cover) 10.2 Confidential Report CAO-008-20 - Director Contracts (Distributed Under Separate Cover) 11.Adjournment February 24, 2020 Special General Government Committee Meeting Page 4 Save Our Clarington Animal Services & Shelter Page 5 Concerned Citizens & Residents started this petition to Clarington Council Clarington Animal Services (CAS) is at risk of being outsourced by Clarington Municipal Council. This is a vital service to our tax payers and to the animals of Clarington. CAS has been ready and willing to take on all needy animals that come through their doors. Found animals are reunited where possible or adopted out when necessary. When animals are unadoptable due to behavioural or health issues then appropriate rescues are sought out for transfers. Adoption centers have been set up so that cats and rabbits can find their forever homes faster. These are just a few examples of the great things that happen at CAS every day. Clarington Animal Services staff have significant relationships, resource arrangements and “tribal knowledge” that would be lost under any outsourcing arrangements. Having watched outsourcing, mergers and other restructuring at other animals services - we do not believe that any cost savings will be significant or sustainable. Further, we have watched those cities that have gone down that road end up with significantly reduced services and a loss of control over the treatment of animals. We will not stand by and allow CAS to be closed in a short-sighted and ill-conceived attempt to save money. Clarington Animal Services belongs to the people of Clarington. We cannot lose this very important Municipal service that is funded by tax payers. We respectfully request that Clarington Council discontinue any studies into closing the Animal Shelter in Clarington, outsourcing Clarington Animal Services or implementing other service reductions with respect to Animal Services in Clarington. Start a petition of your own Start a petition of your own This petition starter stood up and took action. Will you do the same? Start a petition Updates Clarington Council Meeting February 24, 2020 Page 6 SAVE OUR SHELTER CLARINGTON Last year, the Municipality of Clarington commissioned a report from cons… Clarington Council Meeting February 24, 2020 SAVE OUR SHELTER CLARINGTON Last year, the Municipality of Clarington commissioned a report from consulting firm Grant Thornton to provide “an organizational structure review”. The resultant report can be found here: https://www.clarington.net/…/Organizational-Review-Recommen One of the firm’s suggestions was to outsource Clarington animal control services. How this change would occur and who / where / how the replacement would operate is not specified - but most potential options would mean the closing of Clarington Animal Shelter (CAS). We believe that this is a short-sighted and myopic approach to animal services which will inevitably lead to reduced services for the animals and citizens in Clarington. Further, savings from outsourcing often do not materialize and/or are unsustainable over time. In addition, depending on the service provider chosen - Clarington residents can likely expect an increase in user fees such as licenses, adoption fees and pound fees. Lastly, most options for outsourcing will also be located outside of the area - creating issues for citizens who need to reclaim their lost pets. Want to know why outsourcing is a bad idea? Read this: https://www.facebook.com/103954844494861/posts/117860796437599/?d=n The Clarington council members will be considering this recommendation at the February 24 council meeting at 9:30am. We urge everyone who opposes this proposal to make sure that their voices are heard!! Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 1 May, Laura From:Angela <maresaj2003@yahoo.com> Sent:Monday, January 13, 2020 8:05 AM To:animalservcontact Caution: External email. Do not click links or open attachments you do not trust. The public needs animal service to continue for life time animals dont have a voice all pets need a home warmth food and health care workers need more animal spaces more vet care more pay more staff and endless supply of food for these animals I pay lot money for vet care goverment needs to stop these expensive pet care they need there own ohip card lol life got so greedy there no need for it we all should be able to have simple things in life and enjoy it not live in fear Sent from Yahoo Mail on Android Page 111 1 May, Laura From:Angela <maresaj2003@yahoo.com> Sent:Friday, January 24, 2020 5:00 PM To:animalservcontact Subject:My option Caution: External email. Do not click links or open attachments you do not trust. My name is angela james i hear that the city wants to shut animals services shelter again we should never have this conversation we need big better animal shelter more staff lot lower rates for pets care. All pets picked up by workers or team chelsey should go back to owners to its microchipped way to many lost loose pets lot owners not watching them close. We need more staff checking on the care and cleanes of the animals on farms We are the voice for these animals so many i see hear are hurt lost neglected i want keep them all protect them they come first money is not everything how can peolle sleep at night knowing there lot hrs work to be done Sent from Yahoo Mail on Android Page 112 1 May, Laura From:Caroline Lane <caroline@imagine121.com> Sent:Wednesday, February 5, 2020 2:32 PM To:claringtoncouncil@animal-shelter.ca Subject:SAVE CLARINGTON ANIMAL SHELTER Caution: External email. Do not click links or open attachments you do not trust. PLEASE INCLUDE THIS DOCUMENT IN THE FEBRUARY 24th 9:30am SPECIAL BUDGET MEETING AGENDA To Municipality of Clarington Council, Municipal Clerk, other Staff and interested stakeholders. I am writing to you because Clarington Animal Services (CAS) is at risk of being outsourced by Clarington Municipal Council. This is a vital service to our tax payers and to the animals of Clarington. CAS has been ready and willing to take on all needy animals that come through their doors. Found animals are reunited where possible or adopted out when necessary. When animals are unadoptable due to behavioural or health issues then appropriate rescues are sought out for transfers. Adoption centers have been set up so that cats and rabbits can find their forever homes faster. Ferals cats are included in the TNRM program wherever possible. These are just a few examples of the great things that happen at CAS every day. Clarington Animal Services staff have significant relationships, resource arrangements and “tribal knowledge” that would be lost under any outsourcing arrangements. Having watched outsourcing, mergers and other restructuring at other animals services - we do not believe that any cost savings will be significant or sustainable. Further, we have watched those cities that have gone down that road end up with significantly reduced services and a loss of control over the treatment of animals. We will not stand by and allow CAS to be closed in a short-sighted and ill-conceived attempt to save money. Clarington Animal Services belongs to the people of Clarington. We cannot lose this very important Municipal service that is funded by tax payers. I respectfully request that Clarington Council discontinue any studies into closing the Animal Shelter in Clarington, outsourcing Clarington Animal Services or implementing other service reductions with respect to Animal Services in Clarington. Thank you. Caroline Lane 1873 Concession Road 10 Blackstock, On L0B 1B0 Additional personal comments: Page 113 2 I was a member of the Animal Care Services Committee for the Town (now City) of Markham for a number of years, during which time animal control and sheltering was outsourced to the OSPCA at their Newmarket location. Committee members spent many hours at events and in the community, talking to local residents about animal services, and the comment we heard most of all was that the shelter was too far removed geographically from the area it purported to serve, making it difficult for people to visit to search for or claim a missing animal, or to look for a pet to adopt. To address this issue, Markham ended up opening a “satellite” shelter within the town, where residents could see animals (primarily cats) available for adoption, and speak directly with someone if they were missing a pet. Might I add, throughout my tenure with the Committee (2008-2013), Clarington was held up as a shining example of what could be achieved by a caring municipality, and was the model that we constantly asked Markham to follow. CAS is a wonderful resource, please don’t throw it away for the sake of saving a few dollars in the short term. -- Caroline Sent from my iPhone Page 114 1 May, Laura From:Catherine Rooney <crooney905@gmail.com> Sent:Saturday, January 18, 2020 2:10 PM To:animalservcontact Subject:Outsourcing of Clarington Animal Services Caution: External email. Do not click links or open attachments you do not trust. I am writing to protest the outsourcing/ ? closure of Clarington Animal Services. Oshawa Council tried to do the same thing. They wanted to contract with the Humane Society. DRHS has a different mandate and doesn't have the space to accommodate more animals. After much protesting and public petitioning the plan was defeated. There needs to be this service in each area. Clarington is large and growing. Reconsider this decision! Animal Sercices provide a needed service- strays, adoptions, education and more. Catherine Rooney Page 115 1 May, Laura From:Cheryl Soper <cherylmsoper@gmail.com> Sent:Monday, January 13, 2020 5:25 PM To:animalservcontact Subject:Att’n: Animal Shelter Supervisor. Outsourcing Recommendation Caution: External email. Do not click links or open attachments you do not trust. Hello. I just want to voice my opinion that I am against the outsourcing of Clarington’s animal services. There is no indication of who the outsourcing organization will be and am concerned the welfare of our animals may not be as good as it is with Clarington. I do not support the outsourcing of animal services. Sincerely Cheryl Soper Page 116 1 May, Laura From:Dave Taylor <taylorclan@look.ca> Sent:Tuesday, January 14, 2020 5:46 PM To:animalservcontact Subject:Animal Shelter Outsourcing. Caution: External email. Do not click links or open attachments you do not trust. I am totally against this move. I believe it is better for the public and he animals if the shelter remains under the municipality’s administration. David Taylor Sent from my iPad Page 117 1 May, Laura From:DENISE PEPIN DE VINAS <dlpv2008@shaw.ca> Sent:Friday, January 31, 2020 5:43 PM To:animalservcontact; Mayor Shared Mailbox; Neal, Joe; Anderson, Granville; Jones, Janice; Hooper, Ron; Traill, Corinna; Zwart, Margaret; clerk@clarington.net Subject:Save Clarington Animal Shelter Caution: External email. Do not click links or open attachments you do not trust. Good afternoon, ladies and gentlemen! I am writing you today in regards to the closing of the Oshawa Animal Services! So places have closed, are closing! This animal shelter need to stay open! Why? Where will the animals in need of us go? We, as humans, are responsible for taking care of the animals! There are enough people out there that are cruel to animals, that abandon them, discard them like garbage! By closing the Clarington Animal Shelter you will also be doing the same as those people do - discard them like garbage! By closing Clarington Animal Shelter, you will be creating a bigger problem. Growth, in a positive way, is what needed. Not more houses and more people which will create more problems. Clarington Animal Shelter is there for the animals, if they close, will you be there for the animals? I doubt it! We need Clarington Animal Shelter. Thank you Page 118 1 May, Laura From:Diane Rancier (CA) <diane.rancier@pwc.com> Sent:Friday, January 24, 2020 10:50 AM To:animalservcontact Subject:Save Clarington Animal Services Shelter Caution: External email. Do not click links or open attachments you do not trust. To Whom It May Concern My name is Diane and I volunteer for Team Chelsea and I am also one of the administrators on the page. I would like to voice my opinion and concerns on the proposed outsourcing of the Clarington Animal Services. I receive many calls when I am on phone coverage of dogs/cats roaming the streets and being found in Municipality of Clarington. Some during the day and others after hours. When dogs/cats are found during the day hours, Clarington Animal Services promptly addresses these animals and they are either picked up or the dogs get dropped off at the shelter where they are safe while the owner is located. When dogs/cats are found after hours, it becomes a nightmare as Clarington Animal Services does not offer after hours services. I would like to mention that Pickering, Ajax, Whitby and Oshawa ALL have after hours services and Clarington does not! When dogs/cats are found after hours, it becomes a struggle to try to find overnight placement for these dogs/cats until CAS opens in the morning. The Municipality of Clarington should be ADDING the same after hour services as other cities have within the Durham Region and NOT take away, as this outsourcing will lead to even more reduced services for the animals and citizens of Clarington and it will be losing an essential service. What happens to the animals? What happens to all the good hearted volunteers that spend their personal time trying to capture these loose animals. It seems to me that Clarington is NOT looking out for the interests of these animals or the citizens that live in the community. The Municipality of Clarington seems to want to have massive taxes with minimal services. I have also met and have dealt with the amazing staff at CAS and what will happen to them? The animals need their OWN shelter! Please reconsider this proposal of outsourcing and please follow what the other cities in the Durham Region have in place. Put the people and animals first! Kind Regards, Diane Rancier PwC Management Services LP Billing Administrator, Assurance T: 1 416 941 8383 ext 14515 Email: diane.rancier@pwc.com PwC Tower, 18 York Street, Suite 2600 Toronto, ON M5J 0B2 Page 119 1 May, Laura From:Erica Efthimiades <erica.efthimiades@hotmail.com> Sent:Tuesday, January 14, 2020 8:12 AM To:animalservcontact Subject:Clarington Animal Shelter Caution: External email. Do not click links or open attachments you do not trust. To whom it may concern: I would like to preface this letter by mentioning that I worked at the Clarington Animal Shelter for 5 years, from September 2013 - March 2019. This may make me seem biased in my opinion, but I believe it’ll also give insight on the shelter that outside consultants, members of the public, and even Clarington staff outside of the shelter will not have. Being a member of the Clarington Animal Shelter family was one of the best experiences of my life. Every member of that family works hard on a daily basis and go above and beyond for the animals. We’ve all had our turn fostering and adopting strays, we’ve all spent our own money on toys or special supplies, and we’ve all gone in on our own time (outside of business hours) to walk the dogs and medicate whoever needed it. It broke my heart to move on, but being part time and the uncertainty of my employment (due to budget cutting) was the primary reason for my leaving. However, I am always proud to tell people of my previous workplace, to brag to others about our high adoption rates and low euthanasia rates, and to tell everyone about the care and patience given to fearful and neglected stray animals. Objectively, I feel like the population in general has grown to see animals as members of their families and even care for strays and abandoned animals that aren’t part of their families. This is shown through the incredible generosity of donations during the holiday season, the increase of adoptions, and the willingness of the public to adopt special needs and senior pets. A lot of the residents of the municipality are happy to live in Clarington because they know if their pet goes missing that there is a wonderful and safe place for their pet to go until they are able to bring them home. They know that if they find a stray cat or dog that they can call their animal shelter for a safe place and that animal will be cared for until it’s adopted. They know that the stray they bring in won’t be euthanized if it isn’t reclaimed or adopted by a certain date. The Clarington Animal Shelter has spent decades building a relationship and a reputation with the residents of the municipality which has improved their image of the municipality as a whole. Outsourcing the animal shelter would leave a giant question mark as to the quality of the care of the pets in Clarington. Will pets be given the same opportunities for adoption at the new shelter as with the current one? Will residents fear using the new shelter because they aren’t sure of the level of care provided to the animals? Will people go back to seeing the animal shelter as the “pound” or “dog catcher” rather than a shelter for stray and abandoned animals? In my opinion I believe outsourcing the animal shelter would be a huge mistake. Not only would you lose the support of an amazing group of staff members, but you would lower the opinion the municipality to a lot of its animal-loving members of the public. Show me another department that receives thank you gifts and cards for Christmas, that regularly receives happy stories and photos of the animals that they have helped, and that has such a hands-on and involved role in the services they provide. Instead of acting like the shelter and all the animals that they have and will help are just pesky expenses, show your community members that Clarington is proud of their animal shelter and happy to provide a service that will benefit all residents of the municipality, both big and small. Animal care workers, especially those as hard-working and dedicated as the staff at the Clarington Animal Shelter, worry enough about things like burnout and compassion fatigue. When they go Page 120 2 home, they don’t have the luxury of leaving the stress of work in the job. Thank your employees for the years of amazing service and loyalty they have provided by allowing them to continue doing what they love and not having to worry about the quality of care that will be provided to Clarington strays in the future. Like a lot of the staff members at the shelter, I have adopted a pet that may not have gotten the same opportunities if he was brought into another shelter. We all have stories of pets brought to the Clarington Animal Shelter that may have otherwise been euthanized at another animal shelter. Please allow your residents to continue to experience the wonderful quality of service that your current shelter provides. Thank you, Erica Efthimiades Page 121 1 May, Laura From:Heather Olynyk <heatherolynyk@yahoo.ca> Sent:Friday, January 24, 2020 8:14 AM To:animalservcontact Cc:Zwart, Margaret Subject:Clarington Animal Services Caution: External email. Do not click links or open attachments you do not trust. I am concerned about the possible closing or changing of our current municipal animal services shelter. I think they are doing a fine job serving the needs of our community and if anything need more funding- not to be outsourced. That would not be in the best interest of our local animals, local pet owners and local citizens. Sincerely, Heather Olynyk Page 122 1 May, Laura From:Wagar, Donna Sent:Tuesday, January 14, 2020 8:35 AM To:animalservcontact Cc:Hammer, Cindy Subject:Clarington animal services Good morning, I am forwarding your email to our Animal Services Division who will assist you. Thank you Donna Wagar Communications/Information Clerk Office of the CAO Municipality of Clarington 40 Temperance Street, Bowmanville ON L1C 3A6 905-623-3379 ext. 2219 | 1-800-563-1195 www.clarington.net -----Original Message----- From: info@clarington.net <info@clarington.net> On Behalf Of Hilary Oudyk Sent: January 13, 2020 7:21 PM To: Info External email <Info@clarington.net> Subject: Clarington animal services Caution: External email. Do not click links or open attachments you do not trust. I am writing to you today to request that Clarington animal services not be outsourced. This is a valuable resource for our community and the animals in this area. ------------------------------------- Origin: https://www.clarington.net/en/town-hall.asp ------------------------------------- This email was sent to you by Hilary Oudyk<hilary.oudyk@gmail.com> through https://www.clarington.net/. Page 123 1 May, Laura From:Bacon, MaryJane Sent:Monday, January 27, 2020 9:55 AM To:animalservcontact Subject:FW: CAS Mary Jane Bacon Animal Shelter Supervisor Clerks Department Municipality of Clarington 33 Lake Road, Bowmanville ON L1C 4P8 905-623-7651 ext. 2127| 1-800-563-1195 www.clarington.net -----Original Message----- From: Keyzers, Heather Sent: Monday, January 27, 2020 9:47 AM To: Chambers, Michelle <MChambers@clarington.net>; Bacon, MaryJane <mbacon@clarington.net> Subject: FW: CAS Thank you Michelle for advising that Mary Jane is collecting these emails. Please see another that was submitted on Friday. Thank you Heather -----Original Message----- From: Tazy Sedai <nysa9@hotmail.com> Sent: January 24, 2020 7:28 PM To: Neal, Joe <JNeal@clarington.net> Cc: Mayor Shared Mailbox <mayor@clarington.net> Subject: CAS Caution: External email. Do not click links or open attachments you do not trust. To Mr Neal In Regards to your consultation to outsource Animal Services We believe that this is a short-sighted and myopic approach to animal services which will inevitably lead to reduced services for the animals and citizens in Clarington. Further, savings from outsourcing often do not materialize and/or are unsustainable over time. In addition, depending on the service provider chosen - Clarington residents can likely expect an increase in user fees such as licenses, adoption fees and pound fees. Lastly, most options for outsourcing will also be located outside of the area - creating issues for citizens who need to reclaim their lost pets Thank you J. Bronatzky Page 124 1 May, Laura From:Jenny B <jennypennybrown@gmail.com> Sent:Friday, January 24, 2020 7:15 AM To:animalservcontact; Mayor Shared Mailbox; Zwart, Margaret Subject:Clarington Animal Shelter Caution: External email. Do not click links or open attachments you do not trust. Hi- I wanted you all to know that as a resident of Clarington, I oppose the closing of the Clarington Animal Shelter as a possible result of the recommendation to outsource Clarington animal control services. I believe this is a short-sighted approach which will inevitably lead to reduced services for the animals and citizens in Clarington. Is it even proven that savings from outsourcing will materialize? Will this outsourcing result in Clarington residents paying increased user fees? Lastly, if the options for outsourcing are located outside of the area, this will create issues for citizens who need to reclaim their lost pets. Please consider how this recommendation will negatively impact the residents of Clarington and their pets on February 24th. Thanks, Jenny Brown Orono, Ontario Page 125 1 May, Laura From:Barn Cat Co-op <barncatcoop@gmail.com> Sent:Monday, January 13, 2020 3:25 AM To:animalservcontact Subject:Proposed closure of shelter Caution: External email. Do not click links or open attachments you do not trust. To Whom It May Concern, We have learned of the proposed closure of the Clarington Animal Shelter and the plan to outsource lost, found and homeless pets. We are a partnering rescue and have worked with your shelter on many occasions. The services CAS provides is essential to the community of Clarington. Transferring lost family members is clearly not in the best interest of either the pet or their owner. In addition, the shelter supervisor and staff work with partnering rescues, such as ours, to ensure that every animal is given the best possible placement. The fact that your shelter has developed and fostered partnerships to ensure every animal has an opportunity to thrive is something the community of Clarington should be proud of. They are truly providing lifesaving work. We are hoping that you will take the needs of your residents and the animals living within Clarington into consideration when making this decision. Should you have any questions, please do not hesitate to contact me. Thank you for your time and consideration. Kelli Geer 647-466-8424 Page 126 Page 127 1 May, Laura From:lindapower lindapower <lindapower@bell.net> Sent:Monday, January 13, 2020 11:04 AM To:animalservcontact Subject:Outsourcing of Clarington Animal Services Caution: External email. Do not click links or open attachments you do not trust. Attention Animal Services Supervisor: I am writing this letter on behalf of the needy animals in Clarington. For years Clarington/Bowmanville Animal Services has done an excellent job of caring for destitute animals. Outsourcing such a sensitive and valuable service will not work. Outsourcing will only put the animals at risk and will not save money. Community animals need to be protected and cared for by their community and in their community. Linda Power 905-579-7198 Domestic animals require a lifetime commitment. Farm animals need empathy and understanding. Wildlife needs to be respected and protected. Marine mammals deserve their freedom. Please practice compassion for all animals. Page 128 1 May, Laura From:Melinda Diebel <madca3@gmail.com> Sent:Wednesday, February 5, 2020 9:27 AM To:claringtoncouncil@animal-shelter.ca Subject:SAVE CLARINGTON ANIMAL SHELTER Caution: External email. Do not click links or open attachments you do not trust. PLEASE INCLUDE THIS DOCUMENT IN THE FEBRUARY 24th 9:30am SPECIAL BUDGET MEETING AGENDA To Municipality of Clarington Council, Municipal Clerk, other Staff and interested stakeholders. I am writing to you because Clarington Animal Services (CAS) is at risk of being outsourced by Clarington Municipal Council. This is a vital service to our tax payers and to the animals of Clarington. CAS has been ready and willing to take on all needy animals that come through their doors. Found animals are reunited where possible or adopted out when necessary. When animals are unadoptable due to behavioural or health issues then appropriate rescues are sought out for transfers. Adoption centers have been set up so that cats and rabbits can find their forever homes faster. Ferals cats are included in the TNRM program wherever possible. These are just a few examples of the great things that happen at CAS every day. Clarington Animal Services staff have significant relationships, resource arrangements and “tribal knowledge” that would be lost under any outsourcing arrangements. For outsourcing to be “beneficial” one of two things needs to be true: 1. The new provider needs to provide enhanced services / products; or 2. The new provider needs to be cheaper. 1 ENHANCED SERVICES? We have seen many Animal Services outsourced / merged or restructured over the last 10 years. We have not seen many instances where the services with the new provider have been better than the original provider. In fact, in nearly all cases the service provided was dramatically inferior. Some examples of changes we have seen post merger / outsourcing decisions: ❗loss of transparency and accountability (ie. loss of control over how animals are treated) ❗ lower capacity for intakes; ❗ higher euthanasia rates; ❗ no more emergency service; ❗ no longer responding to “loose” animal calls (only after animal secured); ❗ no longer handling any wildlife calls; Page 129 2 ❗ reduced hours; ❗ longer wait times during on hours; ❗ found animals being transported out of the city - causing owners to travel further to reclaim their animals; ❗ fewer staff on hand; ❗ more junior / inexperienced staff with lack of training; and ❗ and many other service issues. 2 CHEAPER? In terms of being the cheaper alternative - the Grant Thornton report does NOT provide a detailed assessment of existing services versus the actual alternatives. Their savings estimate is based on a statistical measure applied to actual current costs. They show an estimated cost savings of less than $160k in total based on this general “rule of thumb”. Based on the PUBLIC report from Grant Thornton (which excluded Appendix B) - it is impossible to know: if viable alternatives actually exist (what organizations have the capacity, are geographical close and have the expertise to deal with stray animal intake); how much money could actually be saved (in order to provide cost savings the other provider need to find a way to either operate cheaper - ie. reduce hours / services, hire inexperienced staff, reduce level of care given to the animals, move to existing facilities - likely outside of Clarington; or find a way to make up revenue in other ways such as higher user fees such as licenses, pound fees and adoption fees or by selling found animals into research). whether this “statistical measure” contemplates the likely closing costs of the existing shelter / staff (ie. termination & severance for staff, lease termination or upkeep costs if the building is owned, disposal and clean-up costs, communications cost re: the cut-over); how long any “cost savings” will persist for (historically many of these outsourcing decisions have resulted in a situation where the costs to reverse the decision or “insource” become so high that the outsourcing partner is able to continually raise fees until they end costing the same or more than status quo); how thoroughly researched this alternative actually is (Whitby in 2017 and Oshawa in 2019 went through similar processes. Once in-depth analysis was done over the alternatives it was determined that in outsourcing was expected to cost taxpayers significantly more money then status quo, plus service reductions were guaranteed and those towns would have lost their ability to regulate the treatment of animals and the function of the third party facility. Some other regions have decided to outsource or merge and typically they suffered from the issues noted above.) Animal services are essential services - they effect the lives of most Clarington residents. Animal services does not just deal with lost and stray dogs. This Municipality is full of pet owners, birders, wildlife photographers, farmers, horse riders, duck feeders, beekeepers, and other citizens needing help with “nuisance” animals. So, how many citizens are affected by the strategic management and ethical treatment of domestic, feral and wild animals? Almost everyone. Outsourcing of this essential service is a bad idea. We will not stand by and allow CAS to be closed in a short-sighted and ill-conceived attempt to save money. Clarington Animal Services belongs to the people of Clarington. We cannot lose this very important Municipal service that is funded by tax payers. Page 130 3 I respectfully request that Clarington Council discontinue any studies into closing the Animal Shelter in Clarington, outsourcing Clarington Animal Services or implementing other service reductions with respect to Animal Services in Clarington. Thank you. Mel Diebel -- Cheers, Mel Page 131 1 May, Laura From:mburley_26@sympatico.ca Sent:Tuesday, January 28, 2020 9:43 PM To:animalservcontact Subject:Save Our Shelter Clarington Caution: External email. Do not click links or open attachments you do not trust. I am very disappointed to learn, as a Clarington resident, that Clarington council is discussing the closure of the animal shelter. Clarington is a continously growing community that requires this service. I fear that if this closure happens, there will be many animals that will suffer, families that will not be united with a lost pet and an increase in stray animals in our area. People may be discouraged to take an animal they have found wondering to a shelter if they must drive 20 mins or so to reach. It would take a shelter outside of the community longer to follow up on a call of a wondering or injured animal, in which time the animal would have moved or the injured animal may not survive. This would also take workers out of Clarington. Workers who are very familiar with the surroundings and who are very compassionate towards the community and its animals. Closing the shelter here in Clarington is not a wise choice and will hurt this community. Michel Burley Page 132 January 13 2020 To Whom It May Concern I have learned about the proposed Closure of Clarington Animal Services today and feel compelled to write you about my experiences with this facility over the last 10 years I have been living in Bowmanville. Not only does it come as shock to me but also a major disappointment that such an essential service could be cut from our local community. I am a local realtor. I work with local cat and dog rescues and I live with animals which have come from shelters. I trap lost cats on Solina Road where I live and bring them to this facility. They have been families lost pets, kittens dumped, hungry & suffering, injured cats that need help.. the list goes on and on. As a busy person I am able to help them by bringing them to this facility up the road to trusting people who I know and who work for the best interest of each intake brought in. A growing community like Clarington also has a growing pet population. As a realtor I know 80% of the homes I go into have pets. How can we even consider out sourcing this service to another area making it more difficult for local rescues & the kind souls like myself who help animals in their neighborhood. Why would we even consider bringing them to a facility out of our area that will then be then overcrowded and lacking funds and resources with all the extra intake. If we need more funding then bring attention to this matter, the public will help. If we need more volunteers then please say so. Whatever we need to do to keep this service local I can assure you the community will come together to help if awareness is brought to the needs of Animal Services. This is lifesaving work Clarington should be proud of. In the last year alone I have rescued and brought at least a dozen animals to this facility which have then been reunited with their families or placed in the local pet stores and found amazing loving homes. I follow the path of all my rescues and the work done at Animal Services is incredible, I know this from experience. Please don’t move this shelter. We need it. We need it for so many reasons. Please think of the well being of the animals when considering this move. Think about our growing community and the additional pressure it would put on other facilities who then may not be able to keep up with their quality of work in their own areas. As someone who works in animal rescue I know this facility is needed for our growing community. Please don’t move it. Thanks kindly, Michelle Marleau 905-449-4353 michelle.marleau@gmail.com Page 133 1 May, Laura From:sheri macneall <smacneall@hotmail.ca> Sent:Saturday, February 1, 2020 8:48 AM To:animalservcontact Subject:Thanks Caution: External email. Do not click links or open attachments you do not trust. Thank you for the wonderful work that you do for animals. I hope your shelter remains intact. Thanks Sheri Page 134 1 May, Laura From:Terri Daniels <terridaniels@rogers.com> Sent:Friday, February 14, 2020 5:19 PM To:claringtoncouncil@animal-shelter.ca Subject:“PLEASE INCLUDE THIS DOCUMENT IN THE FEBRUARY 24th 9:30am SPECIAL BUDGET MEETING AGENDA” - Save Clarington Animal Services and Shelter EXTERNAL Dear Clarington Mayor, Council, Municipal Clerk, Staff and other stakeholders For many years, I have been active in animal protection including sitting as a long standing member of a council appointed Animal Care Committee of another municipality. When a special report was commissioned about animal services in that municipality, Clarington was referenced as a model for what good can be achieved. Clarington, along with the City of Calgary are often cited as being excellent examples of what good animal services departments should be. Clarington has an outstanding reputation for its adoption programs, TNRM programs and for working with the community and rescue groups. When all animals are helped, so are the residents in a community. Outsourcing this service will have unforeseen and unfortunate consequences for the animals. The cost savings are simply not worth the damage to the animals, the residents of Clarington and the municipality's reputation. Please do not consider the removal of this critical and compassionate service. Do not outsource Clarington Animal Services. It provides amazing support to your animals and the residents of Clarington. Kind regards, Terri Daniels Page 135 1 May, Laura From:Rhiannon Lane <rlane@imagine121.com> Sent:Monday, February 17, 2020 3:45 PM To:claringtoncouncil@animal-shelter.ca Subject:SAVE CLARINGTON ANIMAL SHELTER EXTERNAL PLEASE INCLUDE THIS DOCUMENT IN THE FEBRUARY 24th 9:30am SPECIAL BUDGET MEETING AGENDA To Municipality of Clarington Council, Municipal Clerk, other Staff and interested stakeholders. I am writing to you because Clarington Animal Services (CAS) is at risk of being outsourced by Clarington Municipal Council. This is a vital service to our tax payers and to the animals of Clarington. CAS has been ready and willing to take on all needy animals that come through their doors. Found animals are reunited where possible or adopted out when necessary. When animals are unadoptable due to behavioural or health issues then appropriate rescues are sought out for transfers. Adoption centers have been set up so that cats and rabbits can find their forever homes faster. Ferals cats are included in the TNRM program wherever possible. These are just a few examples of the great things that happen at CAS every day. Clarington Animal Services staff have significant relationships, resource arrangements and “tribal knowledge” that would be lost under any outsourcing arrangements. Having watched outsourcing, mergers and other restructuring at other animals services - we do not believe that any cost savings will be significant or sustainable. Further, we have watched those cities that have gone down that road end up with significantly reduced services and a loss of control over the treatment of animals. We will not stand by and allow CAS to be closed in a short-sighted and ill-conceived attempt to save money. Page 136 2 Clarington Animal Services belongs to the people of Clarington. We cannot lose this very important Municipal service that is funded by tax payers. I respectfully request that Clarington Council discontinue any studies into closing the Animal Shelter in Clarington, outsourcing Clarington Animal Services or implementing other service reductions with respect to Animal Services in Clarington. Thank you. Rhiannon Lane 1873 Concession Road 10 Blackstock, ON L0B 1B0 Personal comments : Before living in Clarington I lived in Markham where animal services were outsourced to the OSPCA. With their services outsourced, Markham's residents had little knowledge of what happened to animals picked up by the OSPCA. The OSPCA is extremely resilient to any kind of reporting and is very secretive about what goes on behind their doors. They have illustrated time and time again a level of incompetence that is abhorrent and a total disregard for their privileged position. The City of Markham has little oversight over what goes on at the OSPCA. The disasterous handling of the so-called Ringworm "crisis" and resulting mass euthanasia of Markham animals at the OSPCA Newmarket shelter in 2010 should act as a cautionary tale against outsourcing. When we arrived in Clarington I was relieved to see that Clarington has their own shelter and takes care of animal services in-house. This offers Clarington Council total control over the animal services, and transparency to residents. A locally placed and run shelter is essential and gives peace of mind to residents that there isn't an enormous corporation behind the services they rely on for animals. Please, please do not make a short-sighted decision in a desire to save money. Page 137 1 May, Laura From:Kim Marchbank <kimmarchbank@me.com> Sent:Monday, February 17, 2020 6:58 PM To:claringtoncouncil@animal-shelter.ca Subject:No to Outsourcing Clarington Animal Services. EXTERNAL Good Evening I would like to voice my opinion regarding the bad idea of outsourcing Clarington Animal Services. I am one of the admins for Team Chelsea Lost Pet Search Group and I see firsthand the amount of animal issues daily. Many of them are in Clarington. I am very against this from happening as Animal Services is an essential service for the residents of Clarington and this service is paid for through the taxes of its residents. The municipality of Clarington is full of pet owners and other citizens needing help with animals at any given time. Many citizens will be affected by this outsourcing of animal services in a very negative way. 1. Some examples are loss of accountability, keeping track and control over the lost and found pets in Clarington. 2. Found animals being transported out of the City causing owners to travel further to claim their pets if they can find them at all. 3. More junior inexperienced staff in charge of these animals. 4. No help for wildlife in the area. 5. Lower capacity for intake and the list goes on and on. I find it hard to believe this day and age with our pets being family a community such as Clarington can consider going backwards instead of moving forward in a way that would benefit the citizens as well as the beloved pets in our community. Please do the right thing for the citizens and animals of Clarington and SAY NO TO OUTSOURCING.. Thank you Kim Marchbank Sent from my iPhone Page 138 1 May, Laura From:Adam Lamplugh <adamscott.lamplugh@gmail.com> Sent:Tuesday, February 18, 2020 12:32 PM To:claringtoncouncil@animal-shelter.ca Subject:To Municipality of Clarington Council, Municipal Clerk, other Staff and interested stakeholders. EXTERNAL I am writing to you because Clarington Animal Services (CAS) is at risk of being outsourced by Clarington Municipal Council. This is a vital service to our tax payers and to the animals of Clarington. CAS has been ready and willing to take on all needy animals that come through their doors. Found animals are reunited where possible or adopted out when necessary. When animals are unadoptable due to behavioural or health issues then appropriate rescues are sought out for transfers. Adoption centers have been set up so that cats and rabbits can find their forever homes faster. Ferals cats are included in the TNRM program wherever possible. These are just a few examples of the great things that happen at CAS every day. Clarington Animal Services staff have significant relationships, resource arrangements and “tribal knowledge” that would be lost under any outsourcing arrangements. Having watched outsourcing, mergers and other restructuring at other animals services - we do not believe that any cost savings will be significant or sustainable. Further, we have watched those cities that have gone down that road end up with significantly reduced services and a loss of control over the treatment of animals. We will not stand by and allow CAS to be closed in a short-sighted and ill-conceived attempt to save money. Clarington Animal Services belongs to the people of Clarington. We cannot lose this very important Municipal service that is funded by tax payers. I respectfully request that Clarington Council discontinue any studies into closing the Animal Shelter in Clarington, outsourcing Clarington Animal Services or implementing other service reductions with respect to Animal Services in Clarington. Thank you. Page 139 1 May, Laura From:William Hockett <cricket.51@live.com> Sent:Friday, February 7, 2020 6:32 PM To:animalservcontact Subject:Save the Shelter Caution: External email. Do not click links or open attachments you do not trust. Our municipality has the best animal service! I have met people from out of the area who have come to Clarington to adopt pets because the reputation here is well known. The staff is known for their caring and love of all the animals. Their kindness, skills and screening is noted by everyone. The people I have known throughout the years feel that the staff take extra care to make sure the animal and new owner fit well together. They go the extra mile for all involved. My fear is for the animals. Why take away such wonderful caretakers?? The animals that have been in so long know these people and look forward to seeing them and hearing them each morning. They recognize them and their voices. The new animals coming in are taken in with love right away, their fear lessened because of the staff. This is consistent and sincere. Im afraid it wont be this way with newer people or if the animals have to be taken somewhere else. Please leave it the way it is. Im proud of Bowmanville's shelter as it is. I tell everyone about it. After adopting they agree with me. We are all shocked to think anything can be changing so drastically. It doesnt make any sense to the public, it doesnt sound right. A animal shelter is for the comfort and safety of the animals. If things change they wont have that. What about the staff who have dedicated themselves to these animals and built such a good name for the town? I know they are all hard workers and put heart and soul into the animals. They ve already proved it, please dont change this. The location is excellent for the community and well known. The devoted staff is willing to put in extra effort for the animals and the clients. Just knowing that they are around if I lose my dog and I can call them is a comfort. I dont have far to go living in this area if someone drops her off at the shelter I can pick her up there. Its convenient and not as stressful as if farther away. This is already weighing heavy on the people of Bowmanville, we dont want anything to change our wonderful shelter, we are so proud of it as it is! Sincerely Aileen and William Hockett Page 140 PLEASE INCLUDE THIS DOCUMENT IN THE FEBRUARY 24th 9:30am SPECIAL BUDGET MEETING AGENDA To Municipality of Clarington Council, Municipal Clerk, other Staff and interested stakeholders. I am with Team Chelsea, a volunteer community group that provides services for lost, found and abandoned pets in Durham Region. I am writing to you as I do not support outsourcing Clarington Animal Services. Clarington Animal Services is a much-needed service in the community providing shelter and care for found, abandoned and surrendered pets. The staff at CAS are very knowledgeable and experienced in dealing with the animals and helping unclaimed pets get adopted into suitable homes. In 2019, 3823 lost or stray dogs and cats were secured in Durham Region by members of our group. A large number of these animals were secured in Clarington. Through our partnership with CAS, we have been able to assist through social media to help find the owners of found pets as well promote pets available for adoption at CAS. Clarington Animal Services and volunteers of Team Chelsea have trapped feral cats to help control the cat population and promote responsible pet ownership by way of spay/neutered, and the importance of microchips and proper ID on pets should they become lost. In addition to the above, many injured and orphaned wildlife needed to be secured in Clarington that required treatment and care and transported to licensed rehabilitation facilities. We have also provided help for livestock on the loose such as horse, cows, goats, pigs etc. At present, Municipal Bylaw officers will pickup a secured dog or a secured injured cat during business hours but there are no after-hours services provided by the municipality in Clarington for animals in need of help. The population in Clarington continues to grow with all the new development in the Municipality and the number of animals in need of help will continue to increase. It is my hope that members of this council will recognize how important Clarington Animal Services is to this community and provide the necessary funding needed for CAS to continue to do the wonderful work that they do. Due to the need for animal services, we should be looking at ways to increase services, not taking services away. We ( Team Chelsea ) value our partnership with Clarington Animal Services and work together to help all animals in the Municipality of Clarington. Without this service, what will happen to all the animals? Sincerely, Janet Grixti Page 141 Page 142 From:Kris & Dave Dennis To:claringtoncouncil@animal-shelter.ca Subject:Save our Shelter Date:February 20, 2020 10:37:17 AM EXTERNAL EMAIL YOUR COUNCIL NOW We have drafted a form email below for you to use to let the Clarington Council know that you support Clarington Animal Services staying open and remaining a municipal service. Form letters are more effective if you add a short sentence or two to the top of the letter to personalize it. If you draft your own email / letter - please put the following at the top: “PLEASE INCLUDE THIS DOCUMENT IN THE FEBRUARY 24th 9:30am SPECIAL BUDGET MEETING AGENDA” Please send your emails to the group mailing address we have set-up - it will email the entire Clarington Council, Communications Staff, the Clerk, and the Animal Services Supervisor at the same time. claringtoncouncil@animal-shelter.ca. ————————————————————— SAVE CLARINGTON ANIMAL SHELTER PLEASE INCLUDE THIS DOCUMENT IN THE FEBRUARY 24th 9:30am SPECIAL BUDGET MEETING AGENDA To Municipality of Clarington Council, Municipal Clerk, other Staff and interested stakeholders. I am writing to you because Clarington Animal Services (CAS) is at risk of being outsourced by Clarington Municipal Council. This is a vital service to our tax payers and to the animals of Clarington. CAS has been ready and willing to take on all needy animals that come through their doors. Found animals are reunited where possible or adopted out when necessary. When animals are unadoptable due to behavioural or health issues then appropriate rescues are sought out for transfers. Adoption centers have been set up so that cats and rabbits can find their forever homes faster. Ferals cats are included in the TNRM program wherever possible. These are just a few examples of the great things that happen at CAS every day. Clarington Animal Services staff have significant relationships, resource arrangements and “tribal knowledge” that would be lost under any outsourcing arrangements. Having watched outsourcing, mergers and other restructuring at other animals services - we do not believe that any cost savings will be significant or sustainable. Further, we have watched those cities that have gone down that road end up with significantly reduced services and a loss of control over the treatment of animals. We will not stand by and allow CAS to be closed in a short-sighted and ill-conceived attempt to save money. Clarington Animal Services belongs to the people of Clarington. We cannot lose this very important Municipal service that is funded by tax payers. I respectfully request that Clarington Council discontinue any studies into closing the Animal Shelter in Clarington, Page 143 outsourcing Clarington Animal Services or implementing other service reductions with respect to Animal Services in Clarington. Thank you. Kristin Dennis Sent from my iPhone Page 144 From:Patricia Mckee To:claringtoncouncil@animal-shelter.ca Subject:SOS SAVE OUR SHELTER Date:February 20, 2020 9:21:21 AM EXTERNAL SAVE CLARINGTON ANIMAL SHELTER PLEASE INCLUDE THIS DOCUMENT IN THE FEBRUARY 24th 9:30am SPECIAL BUDGET MEETING AGENDA To Municipality of Clarington Council, Municipal Clerk, other Staff and interested stakeholders. I am writing to you because Clarington Animal Services (CAS) is at risk of being outsourced by Clarington Municipal Council. This is a vital service to our tax payers and to the animals of Clarington. CAS has been ready and willing to take on all needy animals that come through their doors. Found animals are reunited where possible or adopted out when necessary. When animals are unadoptable due to behavioural or health issues then appropriate rescues are sought out for transfers. Adoption centers have been set up so that cats and rabbits can find their forever homes faster. Ferals cats are included in the TNRM program wherever possible. These are just a few examples of the great things that happen at CAS every day. Clarington Animal Services staff have significant relationships, resource arrangements and “tribal knowledge” that would be lost under any outsourcing arrangements. Having watched outsourcing, mergers and other restructuring at other animals services - we do not believe that any cost savings will be significant or sustainable. Further, we have watched those cities that have gone down that road end up with significantly reduced services and a loss of control over the treatment of animals. We will not stand by and allow CAS to be closed in a short-sighted and ill-conceived attempt to save money. Clarington Animal Services belongs to the people of Clarington. We cannot lose this very important Municipal service that is funded by tax payers. I respectfully request that Clarington Council discontinue any studies into closing the Animal Shelter in Clarington, outsourcing Clarington Animal Services or implementing other service reductions with respect to Animal Services in Clarington. Thank you. Patricia McKee Durham Region Resident Page 145 February 21, 2020 Dear Mayor and Members of Council Re: 2020 Budget and Climate Initiatives As you prepare to consider your 2020 budget, please consider taking a “climate change” lens to the decisions you will make. The urgency of the situation In October of 2018 The United Nations Intergovernmental Panel on Climate Change (IPCC) released its landmark Fifth Assessment report indicating that the urgent and signiﬁcant changes are needed to keep global warming below the 1.5 degree threshold (the target set in the Paris Accord), beyond which impacts are signiﬁcant and sustained making the world very different and very dangerous. The IPCC gave the world 12 years to take signiﬁcant steps to reduce greenhouse gases towards pre-industrial levels. Four of those year are during your current term of Council. In November of 2018 The Fourth National Report on Climate Assessment of the USA Government concluded that the impacts of global climate change are already affecting the US and that these impacts will only get worse in the future unless urgent action is taken to curb greenhouse gas emissions. In April 2019 Canada’s Changing Climate Report 2019 noted that Canada as a whole is warming at double the rate of the world average and much higher in northern Canada. Of particular concern: •Oceans are warming and acidifying threatening the health of marine ecosystems. •The weather will include more extreme heat, less extreme cold, longer growing seasons, shorter snow and ice cover, earlier spring peak stream ﬂow, thining glaciers, thawing permafrost and rising sea levels •In general there will be more precipitation but summers will be drier •There will be less freshwater available in summers and potential water shortages •There will be more extreme weather events and coastal ﬂooding due to rising oceans. In November of 2019, 11,000 scientists from 153 countries issued a statement stating that “The climate crisis has arrived and is accelerating faster than many scientists expected. It is more severe than anticipated, threatening natural ecosystems and the fate of humanity….’ Climate change is starting to have a visible impact creating signiﬁcant costs for society. Without strong action, climate change will be an existential crisis for future generations. This is why a number of municipalities are now declaring a climate emergency and taking the actions necessary to reduce emissions. The Federal Carbon Levy As a result of new Provincial government cancelling cap and trade program, the alternative Federal Carbon Levy backstop kicked in 2019. It started at $20 a tonne on April 1st 2019 and gradually increases to $50 a tonne by April 1st 2022. It will be $30 a tonne this year. Page 146 We are all polluters. The purpose of a carbon levy is to change behaviour to pollute less. In other words, by putting a price on carbon, it creates an incentive to take measures to avoid paying it. As you consider ways through the budget to minimize costs, start by understanding the annual cost of the carbon levy to the Municipality. While it may not amount to a lot in the context of your overall budget, it will continue to increase. Understanding the carbon levy costs will help to guide the potential investments that will reduce the Municipality’s carbon emissions. 2020 Budget Suggestions While community level climate change mitigation and adaptation is required, it is corporate operations that Council most readily controls. I understand that staff are currently working on an “action plan”. After 20 years of relatively little action around the world, we must move faster, quicker and deeper than previously thought. My plea to you is this: don’t wait for the plan; take some straight-forward actions with this budget. I have four suggestions for your current budget: 1. All Future Car Purchases should be Electric Vehicles Electric vehicles now offer comparable overall costs to gas fuelled vehicles—after consideration of the $5,000 federal incentive and the lower fuel and maintenance costs. The City of Pickering conducted an analysis of the operating cost of electric vehicles in 2018 and concluded that electric and plug-in hybrids were cheaper than gas-fueled vehicles. Based on an eight year ownership, a plug-in hybrid SUV yielded a cost savings $7500 and an electric compact sedan yielded cost savings $15,800. Over that same 8 years, the environmental savings were 22,242 kg of CO2 from the plug-in hybrid SUV and 43,944 kg of CO2 for the electric compact sedan. This analysis is several years out of day and was prior to the carbon levy. The Plug n Drive Association estimates the cost of charging at night time rates is the equivalent of 25 cents a litre. There are currently about 40 EV and Plug-in Hybrids vehicles on the market, which is continually expanding. In the proposed 2020 budget, the new vehicle proposed for municipal law enforcement is an EV. That is a great step forward. However the Fire Prevention vehicles should also be EV. Fleet vehicles are ideal for EVs because there is no range worry and off-peak charging is readily accomplished at night when vehicles are idle. The Ontario power grid is one of the cleanest in the world with the phase-out of coal. Level 1 and Level 2 charging is easily accommodated without the expense of Level 3 charging stations. Council should adopt a municipal ﬂeet policy that: - that all new sedans/SUVs purchased from 2020 forward be electric vehicles or similar vehicles with zero tailpipe emissions -that Staff monitor future EV opportunities for early introduction of EV or Plug-in Hybrid pickups and vans Page 147 2. Consider moving to a vehicle ﬂeet for building inspectors starting in 2021 In 2019 the Building Division budgeted for approximately $70,000 for travel expenses. The building division is the only group in the Municipality that is on the road daily and yet doesn’t use municipal ﬂeet vehicles. Like Pickering, the Municipality would likely beneﬁt ﬁnancially over the longer term with the introduction of appropriately-sized ﬂeet electric vehicles for inspection duties. This would have the added beneﬁt of carbon emission reduction from municipal activities and it would ensure that inspectors are visible in the community. Building permit fees cover the expenses of building division. Over the year ahead, staff could examine whether any adjustments to fees would be required to accommodate a ﬂeet roll-out. It may be possible to create an entire ﬂeet for inspectors in year 1 through debenturing and repayment from building permit levies over 5 years. This would have zero impact on the tax levy. Council should: Request staff to investigate the creation of ﬂeet EV vehicles for the building inspectors for inclusion in the 2021 budget. 3. Commit to develop the South Bowmanville Recreation Complex as a net zero emission facility The proposed new facility will be a substantial investment that will last for generations. The 2020 budget proposes that the Municipality debenture $4.2 million for the design work on the new facility. Given the need for the Municipality to make signiﬁcant reductions to its carbon emissions in the coming years, any new infrastructure must contribute to this goal. In my experience, when it comes to municipal infrastructure projects, there is often insufﬁcient consideration for the ongoing maintenance and operating costs. As one example, at one point the Newcastle Library Branch building was proposed to be heated using geothermal energy. This item was chopped in order to meet the capital budget limit. The result is that by eliminating the original capital expense, year after year the Library continues to pay to heat the building with fossil fuels which now attracts carbon levy on top of that. On the other hand, the new buildings at Durham College and Ontario Tech operate on geothermal heating and cooling. The geothermal system for the most recent building was largely funded by government grants. Council should direct staff that: The design of the South Bowmanville Recreation Complex should be based on achieving net zero energy consumption and net zero carbon emissions taking into account the entire lifecycle of the building including construction, operation, and decommissioning. 4. Expand Tree Planting At this time, there is only one commercially viable solution to sequester carbon out of the atmosphere; that is through vegetation. Clarington has had a net loss in forest cover and vegetation as a result of urbanization and the new 407, not to mention the damage inﬂicted by the emerald ash borer. Page 148 Aggressive action in tree planting can off-set some of the impacts of growth on the Municipality’s carbon budget. The Federal Government’s 2 Billion Trees program will commence with this year’s Federal budget and the program speciﬁcally identiﬁes partnership with municipalities. There is also the existing Highway of Heros Tree Campaign which has been accessed previously by the Municipality. My suggestion to you is to budget $25,000 additional dollars for tree planting on municipal lands particularly valleylands and parks, which if possible could be used as matching dollars to other programs. Summary Given the urgency of the situation, I ask Council to take some readily-apparent actions in the 2020 budget in advance of the completion of the Climate Action Plan. I thank you for your time and consideration. David Crome Cc. Department Heads Page 149 Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Special General Government Committee Date of Meeting: February 24, 2020 Report Number: CAO-006-20 Reviewed By: Andrew C. Allison, CAO Resolution#: File Number: By-law Number: Report Subject: Organizational Structure Review – Implementation Plan Recommendations: 1. That Report CAO-006-20 be received; 2. That Council endorse the organizational structure changes generally as set out in this Report; 3. That Council either, a. direct staff not to pursue Recommendation #8 (Outsource Animal Services); or b. pursue outsourcing in the manner set out in section 3.49 of this Report; 4. That staff be directed to apply for funding under the next intake of the Audit and Accountability Fund in order to assist with the implementation of Recommendation #26 (Key Performance Indicators); and 5. That all interested parties listed in Report CAO-006-20 and any delegations be advised of Council’s decision. Page 150 Municipality of Clarington Page 2 Report CAO-006-20 1. Background 1.1 Through Report FND-021-19, staff were directed to undertake an organizational structure review provided funding was received under the Province’s Audit and Accountability Fund. Due to time constraints, Council directed staff to sole source the contract if the funds were awarded. The Municipality’s application was successful in the amount of $150,000. Grant Thornton LLP (“GT”) was engaged to undertake the review. 1.2 The first step taken by GT was to complete a Current State Assessment. GT then performed an analysis based on six specific areas of impact (cost savings) and what they termed a 4P analysis (Purpose and Strategy, People and Culture, Process and Finances, and Performance and Measurement). This resulted in 30 recommendations and a high-level implementation outline that were presented in GT’s December 4, 2019 report entitled “Municipality of Clarington Organizational Structure Review”. 1.3 In Report CAO-016-19, staff identified that financial implications (e.g. impact on the municipal budget, possible sources of future funding to assist with the implementation), human resource issues (e.g. collective agreement implications, pay equity), physical space requirements, functional analyses of impacted positions, realistic timeframes for implementation and, most importantly, input from staff need to be considered as integral parts of any implementation plan. 1.4 Through Resolution #C-430-19, Council directed staff to prepare an implementation plan and a cost analysis for consideration during the 2020 budget deliberations. This report responds to that direction. It addresses all 30 recommendations in GT’s report, and assesses whether they will help the Municipality improve how services are Report Overview In the summer of 2019, the Ontario Government unveiled the Audit and Accountability Fund for eligible municipalities and school boards to conduct independent financial reviews. Council received funding under this program to undertake an organizational review, focused on our high-level structure. The consulting work was awarded to Grant Thornton who produced a report dated December 4, 2019. This Report provides staff’s rationale for supporting or deviating from the recommendations contained in the Grant T hornton report. Implementation of the recommendations in this Report will not be the end of the process to achieve savings and efficiencies through organizational change. The recommended changes are intended to put in place a structure and set of systems and processes that will encourage and promote further efficiencies. Ongoing adjustments can and will be made as required. Page 151 Municipality of Clarington Page 3 Report CAO-006-20 delivered. Some of staff’s analysis is set out in a compendium report (CAO-007-20) that is confidential because it contains personal information about identifiable individuals. 2. Communication Plan 2.1 Successful change management requires effective communication with all stakeholders. That is why early in the process of reviewing our organizational structure the CAO’s Office built out a plan that informed and engaged staff at all levels as much as feasibly possible. Below is a summary of the steps taken to inform Municipal staff in the preparation of this Report, and the planned future steps (after Council’s decision on March 2, 2020). Date Communication September 20 to October 10 Digital survey (administered by GT confidentially) which produced a total of 128 responses from staff December 4 Department Head meeting to discuss GT report December 4 Management meeting to discuss GT report December 5 Meeting with CUPE Local 74 to discuss GT report December 5 E-mail to all staff to discuss GT report December 12 to February 7 Over 20 meetings with staff potentially affected by GT’s recommendations January 22 Meeting with IAFF 3139 January 30 Meeting with CUPE Local 74 January 29 to February 6 Survey (soliciting comments regarding GT’s recommendations) February 12 E-mail to all staff responding to the survey results February 20 Management meeting to discuss Report CAO-006-20 February 20 E-mail to all staff regarding Report CAO-006-20 February 24 Special General Government Committee meeting March 2 Council meeting March 3 E-mail to all staff (post council decision) March 5 Town Hall Discussion led by CAO Ongoing Status updates (highlighting wins, opportunities and challenges) Page 152 Municipality of Clarington Page 4 Report CAO-006-20 2.2 The survey that was conducted from January 29 through February 6 produced a total of 99 responses from staff. A summary of the themes that emerged from the survey and the CAO’s comments on those themes can be found on the intranet. 3. Restructuring 3.1 The chart below illustrates the recommended corporate structure based on function . It does not represent the recommended divisional structure. 3.2 Staff’s rationale for the recommended structure is set out below (the analysis and comments have been grouped using the recommendation numbering in the GT report). Recommendations 1 through 16, and 19 through 21, from the GT report deal specifically with restructuring. Page 153 Municipality of Clarington Page 5 Report CAO-006-20 GT Recommendation #1: Combine Office of the CAO with Mayor and Council Administrative Support to Form Executive Services 3.3 Staff agree with the rationale that GT offered in support of this recommendation, but do not believe that a formal restructuring of the Offices is necessary to realize the cost savings and efficiencies. 3.4 GT recommended the Mayor’s, Councillors and CAO Offices be combined to create an Executive Services Department. Administrative support within the Offices of the Mayor, Councillors and the CAO (including Communications and Corporate Policy) has recently been restructured. Where there were previously four administrative support positions, there are now three. All three support positions have been reclassified and are stated to be interdependent. From a practical standpoint, the efficiencies have been, and will continue to be, realized without the need for formal restructuring. 3.5 Maintaining separate Offices respects the different roles of these Offices as set out in sections 224, 225 and 227 of the Municipal Act, 2001. 3.6 Timing: The changes needed to realize these cost savings and efficiencies have been made and are reflected in the 2020 Budget. GT Recommendation #2: Move Tourism from CAO to Community Services 3.7 Staff agree with this recommendation. 3.8 Moving the Tourism Division to Community Services presents an opportunity to align with and leverage the community facing services that the Municipality delivers. 3.9 Tourism fits with the work that the Municipality’s community development staff are currently doing. The Tourism team will receive more support if they are aligned with community development staff. Instead of having one customer service point at their Liberty Street location, Tourism can be represented at five major facilities in Clarington, maximizing their presence and reach. There is an opportunity to enhance tourism information sharing with the public at all front desks in our recreation facilities, taking advantage of our existing Community Service Representatives (CSR) group and the large number of customers and visitors who walk through the doors of our facilities each day. 3.10 Having CSRs provide timely tourism information will multiply our tourism ambassadors from the current compliment of three staff members to 30+ well-trained front-line staff promoting Clarington Tourism. With the additional support, Tourism staff will be able to focus on supporting stakeholders, building relationships, marketing initiatives as well as strategies to help grow the tourism industry in Clarington. This will allow the Tourism team to focus more on long-term strategies. Tourism can also be more directly involved Page 154 Municipality of Clarington Page 6 Report CAO-006-20 with event organizers booking facilities. This will connect tourism directly with sporting organizations and create opportunities for tourism to leverage those relationships, and assist organizers looking for tourism focused activities while their teams are in Clarington. Staff believe this approach to destination marketing will generate repeat visits, and tourists wanting to return to and explore our community further. 3.11 In addition to efficiencies generated through collaboration, staff engagement and workflow alignment as described above, there is a potential cost savings of closing the Liberty Street Tourism Office, known as the Visitor’s Center. The 2020 Budget includes a request to create additional space in Community Services that could possibly be used to accommodate the Tourism Division. If the “storefront” operation closes, there would be an annual operating savings of roughly $18,000. Tourism staff will not be physically relocated until Council reviews and considers a full analysis of this option. 3.12 The non-affiliated positions currently within Tourism are consistent with corresponding positions in Community Services. The Tourism team would report to the Manager, Client Services. 3.13 Timing: Moving Tourism over to Community Services can occur almost immediately. The Coordinator, Programmer and Part-time Clerk can continue to work out of the Liberty Street office unless and until Council makes a decision respecting that space. GT Recommendation #3: Move Climate Change from CAO to Planning Services 3.14 Staff agree with this recommendation. 3.15 The Climate Change Response Coordinator is a 24-month contract position (until April 2021) funded in part by the Federation of Canadian Municipalities. Moving the Climate Change Response Coordinator to the new Planning and Development Department would reflect current practice as the Climate Change Response Coordinator currently sits within the Planning Services Department. 3.16 The work of the Climate Change Response Coordinator is largely to coordinate the Municipal efforts to respond to climate change across departments through the development of a corporate climate change action plan. While functionally located in the Planning Services Department, taking action on climate change requires the consideration of climate change impacts in all Municipal decision making. If endorsed by Council, implementation of a climate change action plan will require collaboration from across the corporation, championed by the Inter-Departmental Working Group on Climate Change. 3.17 Timing: This functional realignment can take place immediately. Page 155 Municipality of Clarington Page 7 Report CAO-006-20 GT Recommendations #4 and #5: Add Legal and Clerk’s to Corporate Services 3.18 Staff agree with the rationale that GT offered in support of these recommendations, but do not believe that combining these three departments into one new department is the appropriate step at this time. Instead, staff support a phased approach. Phase 1 – Create a Legislative Services Department 3.19 When the Municipality’s organizational structure was last reviewed approximately 20 years ago, all legal services were outsourced. In 2010, the Municipality created an in - house Legal Department. There are natural synergies that exist between the functions of the Legal Department and the Clerk’s Department, particularly as they relate to by-law enforcement. The recommendation therefore is that these two Departments be combined into one new Department called Legislative Services. 3.20 Since its inception, the Legal Department has provided support to the entire organization on a wide range of real estate services, but responsibility for land acquisitions has remained with the Special Projects Branch of Planning Services. As part of the reorganization, the majority of this portfolio of work will move over to Legislative Services. 3.21 Timing: This realignment will begin in September 2020 and be phased in. Phase 2 – Merge Corporate Services with either Legislative Services or Finance 3.22 GT recommended that Legal, Clerk’s and Corporate Services be combined. It suggested that this could take place in “Year 2-3”. Phase 1 above is a first step towards what GT recommended. 3.23 Staff agree that there could be savings and efficiencies achieved if Legal, Clerk’s and Corporate Services are brought together, but also feel that there could be savings and efficiencies if Corporate Services is combined with Finance – essentially taking the Municipality back to where it was 20 years ago. Another possibility is that the Human Resources Division currently in Corporate Services could be combined with Legislative Services, and IT combined with Finance. 3.24 There is a lot of work that must be undertaken by Corporate Services in order to implement the structural changes recommended in this Report. After much of that work is done, and the newly reorganized departments have had some time to adjust, the issue of whether to reposition Corporate Services or its individual divisions can be assessed. 3.25 Timing: This second phase of restructuring could potentially be implemented in 2021. Page 156 Municipality of Clarington Page 8 Report CAO-006-20 GT Recommendation #6 – Move Accessibility Coordinator from Clerk’s to Community Services 3.26 Staff agree with this recommendation. 3.27 The Municipality is committed to providing an accessible environment in which residents, visitors and employees have equitable access to Municipal programs, services and facilities in a way that respects the dignity and independence of everyone. Our organization is dedicated to ensuring accessible, responsive representation and providing innovative, efficient and affordable services that will enhance the quality of life in our growing and diverse community. 3.28 Currently, the Accessibility Coordinator works closely with Community Services on many aspects of its operations. Community Services administers a large range of programs, and it is vitally important that these programs be appropriately designed from an accessibility standpoint. The Accessibility Coordinator has been working regularly with Community Services older adult and customer service teams and is a valuable in-house resource in other areas of the Department. 3.29 There is potential to realize some cost savings and increase existing levels of services to an even greater extent if this position is formally placed (and physically relocated to be) within the Community Services Department. Paragraphs 3.30 through 3.33 below provide some examples. 3.30 There is an opportunity to reduce contracted work related to accessible building audits. Community Services currently contracts this work out at a cost of approximately $2,500 annually, and it is possible to reduce or perhaps even eliminate this expense if the Department draws upon the Accessibility Coordinator’s expertise. At a minimum, transferring all responsibilities for building accessibility audits to the Accessibility Coordinator could create capacity for building and facility supervisors . 3.31 By placing the position within the Community Services Department, there will be a greater opportunity to increase the collaboration between the Accessibility Coordinator (and the work of the Accessibility Advisory Committee) and the Community Development Coordinator (and the work of the Diversity Advisory Committee). 3.32 Coordination of accessibility training for the large number of part time-staff employed in Community Services each year would be more effective. 3.33 Accessing various sources of funding through grant applications is also a task that Community Services staff work on, and there would be improved collaboration in this area. Page 157 Municipality of Clarington Page 9 Report CAO-006-20 3.34 It is worth noting that, despite a move from Clerk’s to Community Services, the Accessibility Coordinator will continue to provide the valued services to all Departments and the community. 3.35 This non-affiliated position would report to the Manager, Client Services. It would appropriately fit alongside other non-affiliated positions within that business unit. 3.36 Timing: In theory, this position could transition over to Community Services almost immediately, however, the incumbent is currently on maternity leave. The transition plan is therefore to finalize all logistics during Q4 of 2020 and formally move the position into Community Services effective January 2021. GT Recommendation #7: Move Oversight of Volunteers from Community Services to Human Resources 3.37 Staff do not agree with this recommendation. 3.38 There is no clear rationale provided in the GT report in support of this recommendation other than to suggest that there are efficiencies to be realized as a result of “process and finances (P3)” which includes “opportunities as they relate to approaches and processes to provide services and programs, including responses to bottlenecks, inconsistences, cost reductions, and identification of areas that work well.” GT may have seen the onboarding of volunteers as being similar to what the Municipality does with new staff hiring and that led them to conclude that there is a better fit within the Hunan Resources Division of Corporate Services. In the opinion of staff, oversight of volunteers extends well beyond the onboarding function and the vast majority of what is required to properly oversee volunteer work rests outside of Human Resources. 3.39 Currently, the Community Services Department has coordinated the on-line volunteer management program and it is working very well. It was initiated in 2018. Details of the program can be found on page 18 (sections 9.7 and 9.8) of Report CSD-002-19 and on our website. 3.40 In the recent past, responsibility (based on where the funds have been budgeted) for the bi-annual Volunteer Recognition Event has rested with the Clerk’s Department and, more recently, the CAO’s Office. In reality, the event has been very successfully carried out as a result of a total team approach involving almost every Municipal Department. Going forward, Community Services can be the lead Department for this event. 3.41 Timing: As staff feel that oversight of volunteers should remain with Community Services, there are no implementation timing issues. Page 158 Municipality of Clarington Page 10 Report CAO-006-20 GT Recommendation #8: Outsource Animal Services 3.42 Staff do not have enough information to either agree or disagree with this recommendation. The extent of any operational savings cannot be known unless and until the Municipality issues and receives responses to a Request For Proposals (“RFP”) to outsource the service. 3.43 It is important to note that GT’s recommendation to outsource Animal Services refers to sheltering and adoption of animals, not enforcement . In 2015, the Animal Services Division was restructured such that Animal Services Officer duties were separated into two positions - Municipal Law Enforcement Officers and Animal Care Attendants - to streamline enforcement activities. Enforcement of animal-related by-law matters was then removed entirely from Animal Services in 2018 following the Service Delivery Review undertaken by WSCS Consulting Services (See Report CAO-001-18). 3.44 Clarington Animal Services has a long-standing history as a well-respected provider of animal related education, care, shelter and adoption of local animals. During the information gathering and drafting of the 2017 Service Delivery Review report, several residents commented on the key role that Animal Services plays within our community and the professionalism of Animal Services staff. 3.45 There has been a trend in recent years towards outsourcing and partnership arrangements with animal services by municipalities across Ontario. This was highlighted in the 2017 Service Delivery Review report, and a recommendation was provided to further explore it. The exact language was as follows: Recommendation 1 – “Explore partnership opportunities with neighbouring municipalities”. This will be formally investigated before construction of a new facility is contemplated. The current Animal Shelter facility has a limited life. Due to future highway development the current site is not viable. The Development Charges Background Study and the Land Acquisition Strategy (2017) have a scheduled replacement site to be determined for the Animal Shelter. At this point, the timing of new location has been pushed to 2022-2027. This allows for the Municipality of Clarington to fully explore partnership opportunities for Animal Shelter Services.” 3.46 At this point, staff have only undertaken a high-level preliminary analysis regarding this recommendation. The CAO’s Office, the Manager of Internal Audit and the Municipal Clerk have met with staff from Animal Services to discuss this recommendation and its potential impacts. Animal Services staff have indicated that they have several concerns with the recommendation, most notably the need to be able to ensure safe treatment of animals. There were also concerns raised related to resident access to services and potential pitfalls if that access is adjusted/decreased. They are very proud of their very low euthanasia rate as well as their high adoption rates. Since the publication of the GT Page 159 Municipality of Clarington Page 11 Report CAO-006-20 report, several members of the public have filed correspondence with the Municipality and posted comments on social media, conveying their concerns with the possibility of closing the Clarington Animal Shelter. One common concern is the fear of inhumane disposal of animals who are difficult to adopt. 3.47 The background report to the 2015 Development Charges By-law estimated the cost of replacing the existing animal shelter and other capital assets to be approximately $1.85 million. Approximately $135,000 of this amount could be funded through development charges. The balance would have to be funded through other sources. Timing for this work is uncertain. The useful life of the current Shelter is estimated to be 10 years or more. If MTO proceeds with its planned improvements at the Liberty Street interchange, the Shelter will have to be relocated. MTO’s current forecast for that work (if it proceeds) is 2031. 3.48 There are several synergies that could potentially be realized by undertaking a partnership with an outside agency or another municipality. According to the Service Delivery Review report, Whitby and Ajax currently share their animal shelter services and have a lower cost per capita than Clarington and Pickering. 3.49 If Council wishes to follow GT’s recommendation to outsource, staff are recommending that it be done in two stages. The first stage would be to undertake further analysis (including, perhaps most importantly, clarifying and defining service level standards) and develop an invitation only RFP for potential partnership/operator opportunities. The rationale for the invitation only approach is that there are a limited number of potential bidders the Municipality should consider. This would likely include other area municipalities and not-for-profit service providers such as the Humane Society of Durham Region. The second stage would be dependent upon the results of the RFP. Staff would report back to Council to determine if any cost savings or efficiencies could be achieved after having received and reviewed the RFP submissions. 3.50 Timing: An RFP to potentially outsource Animal Services could be issued in Q2 of 2020 and an analysis of any responses could be provided to Council before the 2020 summer recess. GT Recommendation #9: Move Purchasing from Corporate Services to Finance 3.51 Staff agree with this recommendation. 3.52 Purchasing and Finance currently work collaboratively with processes related to invoicing. They also work together on capital projects to ensure that awards are within budgetary limits. Purchasing reports related to the award of a contract require sign off from both the Director of Finance and the Director of Corporate Services. By transferring the Purchasing Division into Finance, the review by the Director of Corporate Services will no longer be necessary. Page 160 Municipality of Clarington Page 12 Report CAO-006-20 3.53 It is anticipated that the automation of several processes relative to invoicing, purchase orders, and electronic requisitions will reduce manual inputs and duplication of steps. By having these processes aligned, the efficiency of purchasing and payable process es will improve. 3.54 The Purchasing Manager leads a functional team in providing services to the whole corporation similar to the existing Manager of Accounting Services, Manager of Taxation Services and Capital Asset Manager. This functional team would integrate within the Finance Department as a unit similar to the other three teams which all have cross functional work processes. The Purchasing Manager would provide insight into how financial policies and processes in the other areas of Finance impact purchasing and vice versa. 3.55 The Purchasing Manager would report directly to the Director of Finance during the transition period. At a future date, Finance will review the internal structure in light of added emphasis on long-term planning, efficiency and the integration of Purchasing into the day to day operations of the Department. 3.56 Timing: This recommendation could be implemented effective September 2020. GT Recommendation #10 – Create Centralized Customer Service 3.57 Staff agree with this recommendation. 3.58 Our organization does not have a single view of the customer. We have a decentralized customer service model that works well at the departmental level, but not necessarily on a corporate level. This can lead to varying customer service experiences and operational inefficiencies. 3.59 Moving forward, staff recognize that centralizing customer services (creating a single point of contact for residents who deal with the Municipality) is desirable. The CAO Office is currently researching best practices and technologies used in other municipalities that have implemented a centralized customer service model. Based on some of the preliminary findings, it is clear that there is a lot of work to be done mapping Clarington’s existing customer service processes and integrating technology to support a new central model. The Municipality also has to look at the expectations of our customers in order to build a framework and system that is multi-dimensional and supports a variety of user experiences. 3.60 Clarington will need to map its list of services and the standard operating practices associated with all of them. This means that we need to map our customer service process for each service from the point of contact with the resident to the outcome/resolution. Once that process is complete, staff will determine which services should be onboarded into the centralized customer service model. This will be a phased Page 161 Municipality of Clarington Page 13 Report CAO-006-20 approach, where simple services with first-contact resolution are onboarded first, and then more complex services will follow. The process is complex and will require the cooperation and work from all departments, dedicated staff time and resources. 3.61 To help support a centralized customer service model, staff will be reviewing our phone system and associated functionality. To support a single-contact philosophy, an investment will need to be made to upgrade to a system that further facilitates customer service and is linked to a robust recording software to allow staff to track each customer service interaction. This will allow the Municipality to build statistics, measurables and establish some key performance indicators as benchmarks for success. 3.62 The Region of Durham is currently working to create a single contact centre for residents. Clarington will be working with the Region to determine how our centralized customer service initiative could appropriately be built into th eir model. 3.63 Timing: Creating a centralized customer service model will require significant staff time, planning, research and monetary investment. A robust plan will be provided for Council consideration once staff have created a business case and prepared the necessary implementation strategy. Even though the GT report suggested that a centralized customer service function will fall under the Clerk, the likelihood is that this will be placed within the CAO’s Office. This restructuring could be initiated beginning in Year 2. Staff agree that this will be a longer-term project requiring a phased approach over the next two to three years. GT Recommendation #11 – Create a Public Works Department 3.64 Staff agree with this recommendation. 3.65 The rationale behind this move is to streamline design, construction and maintenance procedures and functions. As a single department, it will be easier to make more efficient and effective decisions about maintenance, deployment of resources and the management of construction work affecting the total spectrum of engineering and operations functions. 3.66 The full life cycle management of our Municipal Infrastructure will be better served when administered under one group. It will provide a clear unified vision and understanding of infrastructure priorities through strong asset management practices from conceptual design through to long-term life cycle programming. 3.67 The proposed structure will see the creation of three distinct divisions – Infrastructure, Roads & Fleet, and Parks. 3.68 The Infrastructure Division will manage all of the design, construction and contracted maintenance of municipal roads (urban and rural) and stormwater projects. Contracted Page 162 Municipality of Clarington Page 14 Report CAO-006-20 maintenance of Parks will also be overseen by this group with overall management of the park portfolio being overseen by the Parks Division. Their work will include crack sealing, catch basin and manhole repairs, sidewalk repairs, curb repairs, sports field upgrades, fencing repairs, playground replacements, utility locates, grass cutting, sidewalk snow clearing, seniors snow removal, catch basin cleaning, dust control, shouldering, streetlighting, weed spraying, goose control, pavement markings, sign reflectivity, and garbage collection. Over time, some of the contracted maintenance may be transitioned over to Clarington staff as efficiencies are gained and resources become available. 3.69 The Roads & Fleet Division will manage all in-house maintenance of our roads network undertaken by Clarington staff including ditching, grass cutting, pot hole repair, as well as fleet. As part of an ongoing process, staff will explore the feasibility of centralizing the management of the entire municipal fleet under this portfolio. 3.70 The Parks Division will manage the design, construction and maintenance of the entire park system. This Division will also include responsibility for cemetery maintenance and our forestry program. Based on some of the feedback over the past few years, the Parks Division will also engage the public when considering existing playground replacements like what is done with the development of new parks. 3.71 Timing: This is a very large undertaking. The target date for implementation is September 2020. GT Recommendation #12 – Move all Facility & Park Design, Construction and Maintenance to Public Works 3.72 Staff agree with this recommendation insofar as it applies to park design, construction and maintenance. Staff also agree that combining all buildings and facilities related services is the right thing to do, but feel that the Community Services Department is a better fit as compared to the new Public Works Department. Parks 3.73 Our current structure has park design as part of Engineering Services. The parks maintenance is the responsibility of the Operations Department. Benefits will be derived by formally combining these functions. 3.74 Given current staff compliments, bringing all park-related responsibilities into one department is a relatively simple task. The current Manager of Parks in Engineering Services, who is responsible for park design and construction, can join with the team of Operations employees who maintain the Municipality’s park infrastructure. This will bring the design, construction and maintenance of all parks into one business unit located within Public Works. Page 163 Municipality of Clarington Page 15 Report CAO-006-20 Buildings and Facilities 3.75 In the opinion of staff, transferring the Building Services Division from Operations to Community Services would streamline many functions and eliminate some duplication. Perhaps most importantly, by combining the work teams, the Municipality could capitalize on the various skills available and the ability to reallocate staff resources to assist on larger projects. This could lead to less reliance on outside contractors in certain situations. Examples of potential cost savings and efficiencies would include (a) assigning the administration of contracted services (mechanical, electrical, life safety) to one supervisor for all municipal buildings in order to free up capacity; (b) facilitating better access to facility supervisors and their staff by Board operated arenas; and (c) enhancing arena board and community hall engagement by assigning a “contact” from our existing community development team to liaise with the boards (which could also facilitate more municipal programming in our rural communities). 3.76 The Building Services Division will report into the Manager, Facility Services along side the existing Aquatic Facilities and Arena Facilities branches. 3.77 Timing: This recommendation can be implemented by September 2020. GT Recommendation #13 – Move Crossing Guards from Planning to Public Works 3.78 Staff agree with this recommendation. 3.79 Crossing guard coordination logically fits with the traffic work currently being undertaken by the Traffic Coordinator and the Traffic Technician in Engineering Services. In addition, the crossing guard program will be better supported with the provision of winter maintenance. These services should be combined structurally and transferred to Public Works. 3.80 Working together, and subject to resource constraints, these positions can potentially tackle a wider range of traffic services and specifically programming related to school zone safety (e.g. Safe Routes to School Promotion; Cycle Safe Program; Pedestrian Safety Program; Walking School Bus Program; and Junior Leader Program). There may also be the possibility to expand community outreach to schools, parents and municipal committees. 3.81 Crossing guard responsibilities will transfer from Planning Services to an Operations Technician 1 who is currently in the Operations Department but will be re positioned in Public Works reporting to the Supervisor, Technical Services. 3.82 Timing: The logistics of transferring part of one FT position from Planning Services over to a position that itself is being modified and repositioned will be challenging. Work on Page 164 Municipality of Clarington Page 16 Report CAO-006-20 this realignment of responsibilities needs to start immediately in order to maintain current levels of service. The target date for formal realignment is September 2020. GT Recommendation #14 – Move Field Booking from Operations to Community Services 3.83 Staff agree with this recommendation. 3.84 From a customer perspective, there is no difference between booking an hour of ice and booking a soccer field. Both Operations and Community Services have con tinually had to redirect inquiries. This has created inefficiencies. Combining the two to provide a “one stop” opportunity for our residents will provide far better customer service. 3.85 In addition to the obvious benefits to customer service, there are other potential efficiencies that can be realized with the transfer of this work to Community Services. An example is the ability to utilize the subject matter expertise in Community Services with respect to ActiveNet. The customer service team will likely be able to more effectively support the administration of sport field usage using this software. 3.86 The Acting Director of Community Services and the Acting Director of Operations feel that these responsibilities can be moved from Operations to Community Services without any staff transfers, but there will be challenges. Staff will need to develop clear procedures to maintain a high level of service to our sport field users, given that the administrative function of these rentals will be in Community Services while the operation and maintenance will be in Public Works. Effective collaboration and communication between the customer service team and the Parks Division of Public Works will be critical to a successful transfer of field permitting. 3.87 Prior to the completion of the organizational review, Community Services made a business case for the approval to hire a new 24 -hour PT Programmer in the customer service area. Moving the field booking function over to Community Services further supports the business case for that position in the 2020 budget. 3.88 Timing: Although this recommendation makes sense in the long term, it will present some challenges during transition. It is proposed that Community Services staff “shadow” Operations through their 2020/21 field allocation and permitting process. This would allow Community Services the opportunity to meet with the various sports field user groups and continue developing the Community Group Registry and Field Allocation policies for the following season. If the proposed implementation plan rolls out as expected, Community Services can officially assume responsibility for this work in September 2020. Page 165 Municipality of Clarington Page 17 Report CAO-006-20 Recommendation #15 – Move Building Services (CBO) from Engineering to Planning and Development 3.89 Staff agree with this recommendation. 3.90 The Chief Building Official is a statutory position. Irrespective of who the CBO reports to, the CBO has statutory autonomy. 3.91 Functionally, there are benefits in realigning Building Services (CBO) with Planning Services and possibly Engineering Development Services. Some of these benefits are discussed under Recommendations #16 and #19 below. An additional efficiency already realized is having Building Services staff reviewing the zoning requirements of building permit applications for decks. 3.92 The Building Services Division will report to the Director of Planning and Development, with the cascading reporting relationships staying the same. There are some staffing implications relating to the division of work responsibilities as some staff who assist with permitting and other building functions also provide support to the rest of Engineering Services. 3.93 Timing: This recommendation can be implemented effective September 2020. GT Recommendation #16 – Move Development Approvals from Engineering to Planning and Development 3.94 Staff recognize the potential benefits of this recommendation, but do not feel that this reorganization is needed at this time. Instead, staff are recommending that this recommendation be revisited in 2021. 3.95 Bringing Engineering Development Services functions into the new Planning and Development Department to align with Building Services (CBO) and Planning Development Review could create efficiencies. For example, the information necessary to issue building permits relates to the subdivision and land use processes that are being carried out by Planning Development Review and Engineering Development Services. These functions already share data bases, mapping and rel ated application files (across many software applications). Formally bringing them together could eliminate some duplication. For Planning Services (Development Review and Community Planning & Design) to approve applications, they require considerable interaction with Engineering Development Services. There could be efficiencies generated simply through better communications that would come with the recommended repositioning. However, the inefficiencies caused by such a repositioning could outweigh the efficiencies. Page 166 Municipality of Clarington Page 18 Report CAO-006-20 3.96 Even if Engineering Development Services is repositioned into a new Planning and Development Department, the division would still require significant input and support from the Infrastructure Division of the new Public Works Department. That support would be required in relation to (a) aligning capital projects with development requirements; (b) reviewing subdivision design and proposed infrastructure to ensure that what is proposed offers the best life cycle option for the infrastructure that will become our asset; and (c) inspecting construction to ensure good workmanship and updates of design standards as required; (d) Development Charge background information related to development supportive infrastructure and strategies ; and (e) knowledge of legislative requirements and changes related to asset management, infrastructure and design. There is a concern that some of the information exchange that happens organically under the current structure may be lost if Development Engineering staff report to Planning and Development. 3.97 If implemented, this realignment would impact three positions in Engineering Services, none of which are dedicated exclusively to Engineering Development Services functions. It would therefore require a realignment of d uties to address the work that would remain in the new Public Works Department 3.98 In the past three years, there have been several process improvements made with respect to development approvals. Many related directly to recommendations developed during the 2017 Process Enhancement Project (PEP) service delivery review. The current working relationship between Engineering Development Services and Planning Services is strong. 3.99 Timing: This recommendation should be revisited in 2021. GT Recommendation #19 – Create a Planning and Development Department 3.100 Staff agree with this recommendation. 3.101 The creation of this new department will align all planning and building services (CBO) functions within one continuum, with the goal of streamlining the application process and creating a more easily navigable system for stakeholders. Subject to a review of Recommendation #16, all development approvals functions could also form part of the continuum. 3.102 There are several expected benefits that can be derived from combining these processes and functions into one department. As an example, this new structure will allow for priority setting and focus on developments with major economic benefit. 3.103 A further consideration is the eventual re-organization of the current Engineering and Planning counter at the MAC. Currently, there is a segregation of duties assumed by staff, which is not necessarily the most efficient model from a customer perspective. If Page 167 Municipality of Clarington Page 19 Report CAO-006-20 the single contact point model is adopted at the counter to help with questions related to all aspects of planning and development, it would increase the customer experience. 3.104 Another consideration pertains to knowledge management and process flow. A more streamlined approach will eliminate some duplication. There are also several additional process improvements that can be realized once these functions are aligned. 3.105 Further implications related to reporting relationships are discussed under Recommendations #15 and #16 above. 3.106 Timing: This recommendation can be implemented effective September 2020. GT Recommendation #20 – Create Formal Economic Development Communication Link Between Planning and Clarington Board of Trade 3.107 Staff agree with this recommendation. 3.108 To increase better two-way communication, a few items have been agreed to amongst CBOT, the CAO’s Office and Planning Services. The first relates to Municipal representation on CBOT’s Board of Directors. While the Municipality does not have a seat on the CBOT Board, we do appoint a staff advisor to attend all Board meetings. Historically, the Municipality’s advisor has been the CAO or the former Corporate Initiatives Officer. As much of the work that impacts CBOT comes from the planning and development functions, it has been agreed that the Manager of Community Planning and Design should take over this responsibility. 3.109 It was also decided that CBOT and the Municipality’s Planning and Engineering Directors should meet at least monthly to discuss what is in the pipeline in terms of planning and economic development applications and initiatives at both the local and regional level. 3.110 Another means to improve communication will be to include CBOT updates in the Planning and Development newsletter (E-update). 3.111 This new approach will continue under the new Planning and Development Department structure with any necessary adjustments. 3.112 Timing: These small changes have taken place. Page 168 Municipality of Clarington Page 20 Report CAO-006-20 GT Recommendation #21 – Move Cemetery Administration from Clerk’s to Community Services 3.113 Staff do not agree with this recommendation. 3.114 Cemetery administration is a public facing and community-oriented service, but there are some practical and legal constraints that impact the feasibility of this recommendation. 3.115 Currently, there is a dedicated private office to meet with families that are purchasing grave sites or planning for interments. This office is in a quiet/accessible area of the Municipal Administrative Centre, which is central to the Municipality. If the cemetery role were to move to Community Services, there would be no readily available office space available for staff to meet with residents. 3.116 The Vital Statistics Act appoints the Municipal Clerk as a Division Registrar by virtue of the Office and is assigned responsibility to receive and sign statements, issue burial permits and acknowledgements of death which are the documents required by the funeral homes in order to bury a body. The Clerk is also responsible for maintaining the death register. While these responsibilities are separate from the management and administration of Clarington’s five active cemeteries, the work and knowledge of the Division Registrar and cemetery administration certainly are logically connected. Staff issuing the burial permits are the same staff who are managing the cemetery administration. If Recommendation #21 were to be implemented, any streamlining inherent in the current process would be lost, thus resulting in an additional unnecessary administrative burden and would therefore be counter to the objectives of the organizational review. 3.117 Currently, cemetery services are undertaken by staff in Clerk’s and Operations. It is a very good working relationship. In 2019, the employees delivering these services were recognized for their high level of service through a nomination under the “Team” category in our annual Staff Awards. The adage “if it ain’t broke, don’t fix it” perhaps applies best to this recommendation. Page 169 Municipality of Clarington Page 21 Report CAO-006-20 4. Service Reviews 4.1 The recommendations below (#17, #18 and #22) were classified as “Other” in the GT report. GT Recommendation #17 – Possible Outsourcing of Forestry 4.2 In Report CAO-003-20, Council was presented with a review of forestry services. Through Resolution # GG-062-20, Council voted to (a) endorse the recommendations of the Forestry Service Delivery Review; and (b) conduct a customer service and work order process review using in-house resources and Lean methodologies. 4.3 Timing: The time frames associated with the various action items under this recommendation were set out in Report CAO-003-20. GT Recommendation #18 – Review of Snow Removal 4.4 Issues relating to possible outsourcing of snow removal were addressed in Report OPD-001-20. Through Resolution #C-022-20, Council voted to pursue a phased approach starting with two snow routes. The phased approach will provi de staff and Council with the ability to determine whether to pursue further outsourcing in the future. 4.5 Timing: The implementation time frames for possible contracting out of snow removal services were discussed in Report OPD-001-20. GT Recommendation #22 – External Review of Fire and Emergency Services 4.6 Staff agree with this recommendation. 4.7 There is $80,000 (fully funded by development charges) in the 2020 budget to undertake a Fire Masterplan. 4.8 Timing: If approved in the budget, the target date for completion will be the end of Q3 in 2020. 5. Human Capital Management GT Recommendation #23 – Formalize Process for Performance Evaluation 5.1 Staff agree with this recommendation. 5.2 GT has recommended two action items under this one recommendation – the creation of formal position descriptions and formal performance evaluations. Page 170 Municipality of Clarington Page 22 Report CAO-006-20 5.3 The Municipality currently does not have formal job descriptions, but we have reasonable proxies for them in the Job Information Questionnaires (JIQs) that are filled out as part of our Pay Equity process. The problem is that we do not have JIQs for all positions. Going forward, staff will work towards implementation of built-out job descriptions for all positions, linked to appropriate departmental a nd corporate level KPIs. 5.4 These measurables will allow for clearer roles, responsibilities, and overall accountability. 5.5 Staff agree with GT that if performance reviews are properly deployed, employees will be more engaged and their performance will improve. Performance reviews are done in order to assist with staff development and to help the organization improve overall. They can also serve as a critical component of succession planning. Effective succession planning does not mean that you identify specific individuals to replace others when the need arises – it means that through honest and direct dialogue regarding career goals, you help prepare employees (and the corporation) to succeed (in both senses of the word) when positions need filling. That dialogue can take place as part of a performance review. 5.6 In 2018, Policy B7 was updated to provide a completely revamped Performance Management Review form. This form can be viewed on the intranet here. The form is to be completed on an annual basis and reviewed semi-annually. It includes sections that define SMART organizational goals and objectives as well as career development goals. Going forward, this form may be adjusted to include references to Key Performance Indicators. 5.7 Policy B7 only applies to non-affiliated positions. 5.8 Timing: Discussions have started with union representatives about the possibility of establishing a system of performance reviews for CUPE staff. GT Recommendation #24 – Create Role for Training In-House 5.9 Staff agree with this recommendation. 5.10 Training and development will be key to the corporation’s future success. 5.11 There is a positive correlation between morale and productivity when effective staff development programs are implemented. Having appropriate training and development can also lead to increased engagement and performance across the organization. 5.12 The Municipality currently takes a patch-work approach to training and development. Most of our training and development is done using outside resources (i.e. courses, Page 171 Municipality of Clarington Page 23 Report CAO-006-20 conferences and consultants). The only exception to this is Emergency & Fire Services which has dedicated training personnel. In 2016, all departmental staff development accounts were rolled into one account (Unclassified Administration – Staff Development). The 2019 budget included $256,000 in this account and the proposed 2020 budget has $276,100. The $20,000 increase for 2020 is the first increase since before 2016. Prior to 2016, the budget was $279,265. A decrease was made for the 2016 budget and left at that level for four bud get years. This account is used to fund all staff development – soft skills (like those mentioned in 5.14 below) as well as technical skills. It is also used to fund mandatory continuous professional learning (CPL) for professionals in our organization. Every department has staff who require CPLs. 5.13 A centralized training regime that is linked to organizational goals and objectives could prove valuable. It could include an entire on-boarding strategy. There are several opportunities that should be explored. The challenge remains that much of this training can be expensive to procure, hence the recommendation from GT to hire someone in - house to provide the service at a decreased cost. 5.14 The Municipality currently has in-house expertise (our Corporate Policy Analyst) in designing and developing educational training courses at the university level. In order to kick start this initiative, the Corporate Policy Analyst could work with Human Resources and other subject matter experts to build and deliver engaging training modules in areas that may include: - Leadership and Management Development Training - Employee On-Boarding - Communication in Organizations - Navigating Organizational Dynamics - How Municipal Government Works (opportunity to offer this to the public to increase two-way communication and engagement with residents) 5.15 In the past, the Municipality has had a customer service training program. It has been run by internal staff (beyond the scope of their day to day job functions), but all of the individuals who were delivering this in-house service have retired. It needs to continue. 5.16 In-house training could also be delivered through lunch and learns on topics like report writing and software training. There are also on-line training modules that could be utilized for a wide range of staff development initiatives. The anticipated added value of these initiatives is hard to quantify, but it could be significant. 5.17 Consideration must also be given to efficiencies that can be created through building out technical training opportunities. The Operations Department is required to certify and train employees in a variety of disciplines. The department currently hires outside contractors to do most of this training. Page 172 Municipality of Clarington Page 24 Report CAO-006-20 5.18 Attention will also have to be given to the anticipated roll-out of several new digital initiatives under the leadership of our IT Division. Currently, IT does not have sufficient human resources to provide software training to departments. 5.19 Timing: Implementation of the training and development initiatives described above can begin immediately. Longer term support for this recommendation will require budget allocation. Operations had included a training officer in their preliminary 2020 budget, but that request was not included in the formal 2020 budget submission to Council because staff felt that, for reasons described above, the issue of whether to hire a training officer requires a corporate wide assessment of staff development requirements. GT Recommendation #25 – Formal Human Capital Management (Leadership Training, Performance Management) Process 5.20 Staff agree with this recommendation. 5.21 It is clear from the recommendations that our Human capital Management (HCM) function needs to be properly resourced and integrated into our overall corporate business planning. The following chart is built based upon industry best practice and research and provides context to some of the early stage HCM re-design work that our Human Resources Division is undertaking and seeking to build upon: Human Capital Management – Recruitment and Retention 5.22 Timing: GT has properly identified that some of this work can start right away (it already has) but will take time and resources to fully implement. Page 173 Municipality of Clarington Page 25 Report CAO-006-20 6. Productivity Improvement GT Recommendation #26 – Implement Key Performance Indicators 6.1 Staff agree with this recommendation. 6.2 One employee responded to the most recent on-line survey as follows: “I am concerned that the organizational review and reorganization will impact the quality o f decision- making at the municipality. What metrics are being used to assess whether the reorganization has been a success? Savings is not the only or best measure for success”. This recommendation is intended to respond directly to these matters. 6.3 In order to achieve and sustain change that will promote our organizational objectives, it is imperative that we have a way to measure our performance. Establishing a set of Key Performance Indicators (KPIs) for each department needs to be an integral part of what we do going forward. There are myriad ways of structuring KPIs, and we will look to establish and report on a set of metrics that build upon our desired outcomes. They must cascade from the department and organizational level objectives through to functions. Effective KPIs require quality data. There may be process and software improvements required to capture the relevant data in a consistent manner. 6.4 Some departments have some performance measurements in place. The CAO’s Office will be working with all departments to better understand their goals, work to create actionable and reportable business plans, and obtain research around KPI best practices in the municipal space. 6.5 Established KPIs will also make resourcing (human and capital) decisions m ore informed, predictable and sustainable. 6.6 Due to the significant impact KPIs can have on how an organization operates and performs, as well as the nuances associated with what each KPI is driving, we will look to obtain an expert consultant through the next round of funding under the Province’s Audit and Accountability Fund to assist us with this process. Some municipalities obtained funding in the first round for this purpose. 6.7 Timing: Staff will be targeting to have some formal KPIs in place by Q4 of 2020. Once in place, the initial plan would be for departments to provide updated KPIs to Council on a semi-annual basis for those KPIs that could be meaningfully reported in that timeframe. Page 174 Municipality of Clarington Page 26 Report CAO-006-20 GT Recommendation #27 – Formalize Support/Processes for Departmental and Team Level Communication 6.8 Staff agree with this recommendation. 6.9 A key part of our overall corporate success, not just with our structural changes but literally everything we do, will be to ensure that we have strong interdepartmental communication. As part of Recommendation #30 (Workflow Automation), communication flows related to processes will be analyzed and reviewed. This could lead to improvements in communication within and across departments. 6.10 The Communications and IT Divisions are currently working on developing a new corporate intranet portal. This secure platform, accessible through mobile devices, will ease communication and information sharing on a corporate level. It will cont ain a central news/information repository for Corporate -wide communications sharing. It will also help facilitate inter-departmental communications, project sharing and teamwork. This is a project identified in the IT Strategic Plan. 6.11 Timing: Effective communication is needed on a continuous basis. GT Recommendation #28 – Review of Department Level Structures 6.12 Staff agree with this recommendation. 6.13 Over the past couple of years, Department Heads have been encouraged to realign and restructure within their individual departments. The recommended organizational structure reflects a lot of what was done in terms of restructuring within individual departments prior to the commencement of the organizational review. 6.14 Departmental structures are not etched in stone. If there is a better way to align functions and positions within the newly created departments, realignment can and will be undertaken. 6.15 Timing: This is an ongoing best practice. 7. Process Improvement GT Recommendation #29 – Process Improvement Initiatives (Lean Methodology) 7.1 Staff agree with this recommendation. 7.2 In 2019, the Office of the CAO began a corporate wide roll-out of Lean Six Sigma methodology training. The training was made available to all staff in all departments (we have experienced challenges rolling the training out in Emergency and Fire Page 175 Municipality of Clarington Page 27 Report CAO-006-20 Services given their scheduling but are looking at on-line alternatives). Lean Six Sigma provides a methodical approach to find efficiencies in processes by eliminating waste and improving value for the customer. 7.3 To date, over 90 staff have been trained and received White/Yellow Belt certification, four have received Green Belt certification, and six are currently pursuing Green Belt certification by undertaking the review of Forestry’s customer service and work order process as described in Report CAO-003-20. 7.4 As part of a Green Belt certification process, employees must review a current workplace process and provide recommendations to improve it. Our first Green Belt cohort worked on the invoice process, which fits into Recommendation #9 (Move Purchasing from Corporate Services to Finance). During their review, t he Green Belt candidates (four employees) examined the current challenges and developed a list of 70 possible improvements, grouped like challenges, and then ranked them into 18 priority items. Of these, 9 have been implemented, 4 are in progress to improvement and 5 have hit roadblocks that will require additional investigation or resources (i.e. IT software, budget changes). A presentation of this cohort’s excellent work and the improvements that they made is available at here. 7.5 It is important to note that White/Yellow Belt projects have also be conducted, albeit on a smaller scale, which so far has facilitated more than 24 small improvements across the organization. As staff become trained at higher belt levels (Green and Black), more complex processes can be reviewed, thereby implementing more significant process improvements. 7.6 Lean should be viewed from both a culture and implementation standpoint. A culture that values lean methodology can be built by ensuring that key staff are appropriately trained, something that is already underway and will continue. The second aspect is implementation. By continuing to graduate small cohorts through to Green Belt certification and potentially onward, there will be staff available across the corporation who can work on these initiatives. Further consideration should be given to investing in training to move key staff towards further belt levels in order to enhance in-house expertise. This will truly create a culture of continuous improvement which is at the core of Lean Methodology. 7.7 Process improvements are also analysed through service delivery reviews. The most recent was the Forestry Services Review Report CAO-003-20. In 2017, the development review process was reviewed (PEP). Animal Services (2017), Information Technology (2017) and Tourism (2018) have also been reviewed. There is currently no formal process to track the implementation and status of Council endorsed recommendations in relation to these reviews. In order to increase transparency and accountability, a formal process around reviewing, prioritizing, implementing and tracking against report recommendations will be implemented. Page 176 Municipality of Clarington Page 28 Report CAO-006-20 7.8 The CAO and Department Heads (with input from all staff) will work to develop a list on an annual basis of processes that could benefit from a process review. As an example, this list could include route optimization within the Public Works Department. That agreed upon list will be prioritized and then resourced as appropriate. In some cases, staff may be best equipped to identify, assess and implement the service improvements, but in other cases the expertise may not reside in-house. 7.9 Several municipalities have established in-house positions for individuals with the skills required to oversee continuous improvement across the entire organization. Larger municipalities have entire divisions dedicated to continuous improvement. The Manager of Clients Services in Community Services has accepted the responsibility of overseeing our Lean / continuous improvement initiative. Going forward, there may be a business case justification to follow the lead of some municipalities and hire a dedicated staff person for this important work. 7.10 Timing: This work has already started and will continue. The expectation is that it will become an integral part of our corporate culture. GT Recommendation #30 – Workflow Automation 7.11 Staff agree with this recommendation. 7.12 Collecting, tracking and reporting appropriate and accurate data using technology will allow staff to make efficient and timely decisions. The GT report recommends that we look at our process around centralizing and storing our data. The Clerk’s Department has begun an Information/Knowledge Management Initiative that will work to transition all departments towards an integrated electronic records management system. 7.13 Part of this process will involve creating a Records Analysis & Inventory which will provide insight into process and workflow. This information will be funnelled into a newly created implementation team (discussed below in Part 9) that will be responsible for tracking against and supporting each of the recommendations. The Team will also work to reduce redundancies in newly created departments or realigned functions within existing departments, and this information will assist in that work. There will undoubtedly be some overlap created and the check-in process with the Team will allow for ongoing improvements to be made. Further, with the number of digital technologies available and rapidly coming online, it is imperative that each process and workflow be reviewed to determine where there are opportunities to go digital and reduce duplications and redundancies. 7.14 As part of the requirements gathering process for the Municipal Business Solutions (MBS) software, departments undertook several process flow analyses for the services they provide. The implementation team will work with each department to ensure these are current and to build out any missing processes, map communication flows, and Page 177 Municipality of Clarington Page 29 Report CAO-006-20 review for redundancies and efficiencies. This initiative will also enhance knowledge sharing across departments, in addition to improve the way things are done. 7.15 If approved by Council, the MBS system will be Clarington’s most robust software acquisition to date. It will be a multi-departmental solution which includes all departments; most specifically the services of Planning, Engineering, Operations, Clerk’s and Fire. In addition to other workflow initiatives, this comprehensive project was initiated through the IT Strategic Plan and through multi-year budgeting has enabled it to come forward in the 2020 Budget. The MBS system addresses at least seven items from the IT Strategic plan which include the Land Development Office (LDO) replacement, Customer Relations Management, Collaboration tools, Online Strategy, eForms Strategy, remote access and possibly Work Management for Operations. The ability to have multiple departments access the software using a central database will allow for significant benefits to not only the Municipality but to residents and stakeholders. The central database will allow internal and external users to have real-time access to their respective files; whether it be a building permit application, complaint, or development application. Clarington needs to maximize all opportunities to deliver value to its residents, businesses and visitors through modern, technology-enabled services. Customer expectations now include 24/7 access to service information, booking and application processes, status updates and personal account information. In most cases these customer-facing systems and views require access to real-time data and assume that processes will move along in a predictable fashion. 7.16 Examples of opportunities for process improvement include on-line applications, inspection scheduling, on-scene file updates, cross-departmental shared access, and real-time reporting. 7.17 Implementation of this system will facilitate collaboration amongst all departments, and through integration with existing systems, will maximize investments, process improvements and efficiencies, thus realizing Recommendation 30. Other workflow automation projects currently in place or imminent include (but not limited to): electronic agendas and meeting management, electronic invoice approvals, e -procurement, electronic fund transfers, parking ticket issuance and payment collection, marri age license applications and issuance, on-line collaboration, scheduling, sidewalk inspections, Planning Applications Portal (for staff) and Planning online inquiry form. 7.18 This transformation is reflective of best practices and moves Clarington forward to b etter serve our customers. 7.19 The Clerk’s Department is in the initial phase of transitioning all departments to utilizing our electronic records management system, Laserfiche. This initiative provides significant opportunities for workflow automation as it facilitates efficient business processes through electronic information management. The implementation plan Page 178 Municipality of Clarington Page 30 Report CAO-006-20 involves several phases. For each business area, the Clerk’s Department will analyze current information practices and business processes, work with department staff to develop folder structures and implement best practices for recordkeeping and assist in the transition to managing their records within Laserfiche. A major component will also involve integrating Laserfiche with other systems, such as MBS. The software will thus become a critical piece of workflow automation that will allow staff to move, access, and store records across business units and share with external stakeholders, reducing duplication and overall time spent in managing multiple information silos. 7.20 Timing: Major steps have already been taken to automate our workflows. A report is expected to come to Council in Q2 of 2020 dealing with the MBS software purchase. 8. Other Items for Consideration 8.1 As part of the process of reviewing our corporate structure, staff have identified several other areas for improving service delivery that are not addressed directly in the GT report. 8.2 Staff are seeking to formalize relationships with colleges and universities to have a steady stream of co-op/internship students assisting us with the delivery of our services, while at the same time providing students with valuable job experience. We currently utilize students in a number of our departments (i.e. Planning Services, Clerk’s and IT). In the future, the Municipality would benefit from a formal policy respecting the recruitment and effective utilization of these students. Areas that we are currently exploring include GIS, graphic design, engineering technologies, human resources and business processes. 8.3 Staff will be reviewing the possibility of creating centralized responsibility for grant writing. Several of our comparator municipalities have dedicated specific staff to this task. 8.4 Staff will be developing an integrated budget and business plan document that provides a strategic planning framework to guide the allocation of the Municipality’s resources. It will promote a strategic approach to developing budgets, ensuring accountability for deliverables, and monitoring and reporting on the Municipality’s performance. “Clarington Budget 2020 – A Vision for a Strong Community”, prepared by the Director of Finance, is the first step towards this. Page 179 Municipality of Clarington Page 31 Report CAO-006-20 Next Steps – Strategic Execution 8.5 In order to have a successful roll-out of the changes recommended in this Report, a cross-functional implementation team will be established. The following staff will be members of this team: Justin MacLean, Corporate Policy Analyst Kristen Selvig, Human Resources/ Health & Safety Representative Basia Radomski, Manager, Communications Michelle Pick, Manager, Accounting Services Shelagh Staunton, Records/Information and Legislative Projects Coordinator Brajesh Datt, Business Development Supervisor Carlos Salazar, Manager, Community Planning & Design Lee-Ann Reck, Manager of Client Services (Advisor on Lean Initiatives) Rob Farquharson, Building Services II Adam Dunn, Senior Plans Examiner Steve Grigg, Clerk II (Purchasing) Representative from Emergency & Fire Services 8.6 This team’s primary objective will be to oversee and support the implementation of the recommendations set out in this Report. More generally, and perhaps more importantly, it will be overseeing and trying to build a culture of continuous improvement in the Municipality. The work of this team will be administratively supported by the CAO’s Office. 8.7 As part of the first phase of implementation, the CAO and members of the team will host short information sessions with each department. The intention will be to explain how change management works, the plan for continuous improvement, and how they can be a part of it going forward. 8.8 Council will receive semi-annual reports on the progress the changes recommended in this Report until they are fully implemented. 9. Conclusion 9.1 The following comments were made by staff in response to the survey question “Do you have any concerns/questions about the organizational review? It’s great to be able to find ways to improve processes and the overall way of business for the Municipality, but sometimes, it is people and time that [are] required most to ensure a task is done. Page 180 Municipality of Clarington Page 32 Report CAO-006-20 [I am concerned] that the decisions made will be done with cost savings or short- term gains in mind and not overall operational efficiency. This is not a concern solely related to lost jobs but one in not setting up the corporation structure /department structures to meet the current and future challenges in terms of delivering service. Some of the recommendations seem so focused on the potential to save some money (whether in practice they will or not – such as contracting out services) and less concerned about maintaining or improving service levels or the practicality of the change. Change is good, but not if it’s not done without serious thought and a focus solely on the bottom line. 9.2 The theme reflected in these (and many other) comments from staff is that change can be good, and it can lead to better levels of service across the organization, but only if it is done correctly. The expectation is that the organizational structure changes detailed in this Report will respect and build upon our current strengths in order to produce tangible service delivery improvements. Staff Contact: Andrew Allison, CAO, 905-623-3379 ext. 2002 or aallison@clarington.net. List of Interested Parties is available from the Department. Page 181 Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Special General Government Committee Date of Meeting: February 24, 2020 Report Number: FND-002-20 Submitted By: Trevor Pinn, Director of Finance/Treasurer Reviewed By: Andrew C. Allison, CAO Resolution#: File Number: By-law Number: Report Subject: 2020 Operating and Capital Budget Recommendations: 1. That Report FND-002-20 be received; 2. That Council approve the 2020 Operating and Capital budgets, including “external agencies” as outlined in the 2020 Draft Budget Book, at an estimated tax levy impact of 1.83%, exclusive of tax policy impacts, as directed in FND-002-20; 3. That Reserve and Reserve Fund contributions and new Reserve/Reserve funds be approved as shown in the 2020 Draft Budget Book; 4. That the financing of capital projects, as outlined in the attached documents , be approved; 5. That any cash flow shortfall in the Development Charges Reserve Funds be interim financed from the Municipal Capital Works Reserve Fund and General Municipal Reserve Fund, to be repaid with interest, as cash flow permits; 6. That Report FND-002-20 be adopted by resolution in accordance with provisions of Ontario Regulation 284/09 of the Municipal Act, 2001; 7. That the appropriate by-laws to levy the 2020 tax requirement for Municipal, Regional and Education purposes be forwarded to Council for approval, once final tax policy information is available; and 8. That all interested parties listed in Report FND-002-20 and any delegations be advised of Council’s decision. Page 182 Municipality of Clarington Page 2 Report FND-002-20 1. Background 2020 Draft Budget and Levy Impact 1.1 This year’s “Clarington Budget 2020: A vision for a strong community” was released to Council and the public on February 7, 2020. This year’s budget book takes on a new format as the Municipality moves to align budget communication practices with best practices in the sector. The Budget was also placed on our website and has been advertised through social media accounts. 1.2 In September 2019, Council directed Staff to bring forth a budget for 2020 with a target municipal levy increase of 2.0%. Staff worked diligently to meet that target. The draft budget, including proposed new staffing, increased reserve fund transfers and maintaining service levels was reached with a 1.83% municipal levy increase. 1.3 The average residential property assessment for 2020 is approximately $390,700 (2019 - $367,632). A 1.0% increase in the tax levy would be approximately $14.64 annually (2019 - $14.14) on the property tax bill on the average assessment. As a result of the proposed budget the average municipal increase is $26.79. 1.4 A 1% increase in the levy translates into approximately $598,200 in additional revenue (2019 - $567,600) to the Municipality. 1.5 The Province of Ontario has released its rates for education taxes. In 2019, the education portion on the average assessment would have been $592 this is anticipated to increase to $598. The Province’s rates are determined by looking at the assessment base for the whole Province and determining the amount needed to be raised for education. A single rate is applied across the Province for residential taxpayers. 1.6 The Region of Durham’s Budget will be presented to Regional Council in late February. It is anticipated that the impact to the Clarington taxpayer will be lower than the average Durham resident as the assessment base in the other municipalities is higher than in Report Overview The purpose of this report is to provide necessary information to Council in order to approve the 2020 Capital and Operating Budgets. The report includes several important components and the Budget Book provides specific details. There are significant capital considerations for 2020 that further enhance the Municipality’s capital infrastructure. The Budget is continuing to carry out the principles and objectives of these important Council priorities . The 2020 Capital and Operating Budget will consider these items, along with a new Strategic Plan to be adopted later this year. Page 183 Municipality of Clarington Page 3 Report FND-002-20 Clarington. It is anticipated that approximately 50% of the total property tax bill will stil l be related to the Region of Durham; however, at this time it cannot be confirmed. Items for Council Consideration 1.7 The budget book included a list of items for consideration on page 33. These items may have been deferred by Staff in order to meet the 2.0 % target or brought forth by members of Council and the public for consideration. 1.8 Items for consideration include approximately $439,500 in operating costs and $1,830,000 in capital costs. If all these items were to be included there could be an additional 3.93% to the tax levy; however, this could be mitigated through use of development charges (where allowed) or reserve and reserve funds (where feasible). 1.9 An item not included on this list was an increase to the Future Staffing Reserve Fund. It may be desirable, depending on Council’s direction with potential new firefighters, that the contribution to this reserve fund be increased by $125,000 to $375,000. This $125,000 increase represents an increase of 0.21% or $3.06 to the levy. 2. Tax Rate Stabilization 2.1 Historically, Clarington has drawn on our Rate Stabilization Reserve Fund approximately $800,000 per year. 2.2 In 2019, the general draw was decreased by $200,000 to $600,000 with a specific draw for forestry being added. The intention was to transition the reliance on the reserve fund to balance the budget generally towards a more specific use for “one-time” items. This was anticipated to take four years. 2.3 In order to maintain the 2.0% target, a reduction in the transfer from the Tax Rate Stabilization Reserve Fund was not proposed in 2020. 2.4 The balance in the Tax Rate Stabilization Reserve Fund is sufficient to withdraw the proposed $600,000. 3. Tax Policy Changes 3.1 A long-term strategic tax policy plan was initially approved in 2002 by the Region of Durham (who has legislative authority over tax policy), that may have an impact on final tax rates. The 2020 update is anticipated was presented to Regional Finance and Administration Committee in February 2020. Any tax ratio changes impact upon the relative share of the total taxes that each property class pays. A copy of the Region’s report is attached marked Attachment 1. Page 184 Municipality of Clarington Page 4 Report FND-002-20 3.2 The 2020 report included a recommendation that the Region not implement a reduced tax rate for the first $50,000 of assessment on small-scale value-added commercial activities on farms, which was announced by the Province in 2018. This recommendation was due to the limited impact to taxpayers (a total of seven properties in all of Durham Region with a total assessment of $315,000) and the administrative costs of implementation. 3.3 The 2020 report also addressed a request from Whitby for the Region to match support for a heritage property tax rebate. The Region is only allowed to create a program in a municipality that already has a program; therefore, the Region’s program would be limited to Ajax (2 properties), Whitby (30 properties) and Oshawa (8 properties). It was recommended that the Region not match any of the local heritage prope rty tax rebate programs at this time as the Region has an objective of treating similar properties in a similar fashion across the whole region. 3.4 Additionally, Clarington is affected by tax policy decisions made on the education side by the Province of Ontario. This stems from municipalities retaining the education portion of eligible payment in lieu (PIL) properties such as Ontario Power Generation. In the 2008 Provincial Budget, a provincially mandated reduction in the industrial education rate was announced. The rate has not been announced for 2019. This could result in tax policy impacts of lost revenue to Clarington which will be incorporated into the final tax rate by- law. 4. Staffing Requests 4.1 This year, Department Heads are making the following requests:  Planning Services – (a) convert contract Planner I to full-time Planner I ($20,900); and (b) convert full-time Clerk I to full-time Planner II ($24,900)  Community Services – (a) new full-time Aquatic Programmer ($80,800); and (b) new part-time Customer Service Programmer ($51,400)  Operations – (a) temporary worker extensions (two additional months) for five staff ($42,950); and (b) convert part-time Clerk II to full-time ($19,600)  Clerks – new full-time Municipal Law Enforcement Coordinator (no levy impact)  Emergency & Fire Services – four full-time firefighters ($318,400) 4.2 Finance, Legal, Corporate Services and the CAO’s Office have not requested any additional staff for 2020. Page 185 Municipality of Clarington Page 5 Report FND-002-20 4.3 The specific rationale provided by the departments in support of these requests is set out in Attachment 2 to this Report. The compensation figures shown above and in Attachment 2 include salaries and benefits (if applicable). 4.4 All of the staffing requests have been vetted having regard for the recommendations contained in the Grant Thornton Organizational Structure Review Report. In the opinion of staff, none of the requests with or will prejudice the Municipality’s ability to implement any of the recommendations in that report. The one exception is in relation to Emergency & Fire Services (Recommendation #22). Grant Thornton has stated that “our recommendation is that an external review of the fire suppression service delivery model (i.e. the number and composition of staffing, number of firefighters per truck on calls) be completed”. 4.5 Included in the proposed budget for 2020 are all of the above positions except for the four full-time firefighters. As mentioned above, the inclusion of the four firefighters prior to the results of the staffing review, which is included in the 2020 Budget, could prejudice the results. The four firefighters have been included on the Council Consideration list on page 33 of the 2020 Draft Budget. 5. Operating Budget Commentary 5.1 The 2020 Draft Budget Book provides summary information for all the changes in the operating departments and sub-departments. This information was provided to ensure that Council was aware of the projected change from 2019. 5.2 Significant changes to operating includes the movement of forestry related expenses to the Operations Parks sub-department level. This consolidates expenses that may have been in parks, roads and ditching to one activity within the Parks sub-department. 5.3 A significant increase has also been proposed for winter control which better aligns the budget with the actual spend over the past several years. The increase is mainly in materials and supplies and relates to sand and salt. 5.4 We have reviewed revenue accounts and adjusted to better reflect what the Municipality estimates to be achievable. This includes an increase to investment income to better reflect the interest earned on our investments, but also includes decreases in certain programs or Planning Department revenues which are anticipated to result in less revenue than in 2019. 6. Capital Budget Commentar y 6.1 The total capital budget investment of $28,672,886 utilizes approximately $7.6 million of development charges, $4.2 million of new debenture funds, $7.4 million of reserve funds, $463,979 from reserves and $804,904 from external financing sources (grants ). Over Page 186 Municipality of Clarington Page 6 Report FND-002-20 55% of the investment in capital relates to the Engineering and Operations departments which is in line with the Municipality’s asset base (being 55% roads and related). 6.2 Tax levy support in 2020 to the capital budget is $8,294,354 which is $863,71 1 higher than the 2019 tax levy support. This is an increase of 11.6% in the tax levy support to the capital budget. This is achievable through new assessment growth, debt payment repurposing, and operating cost control being reallocated towards the capi tal budget. 6.3 The capital budget recommendations are incorporated in the Draft Budget Book, under the section “Capital Budget” starting on page 132. A description of the project is included for each capital budget item. 6.4 Federal Gas Tax proceeds have been incorporated into the 2020 Budget in the amount of $2,791,328. Interest earned in the Reserve Fund due to timing differences in the receipt of funds versus invoice payments have also been incorporated into the Budget. Formula based funding under the Ontario Community Infrastructure Fund has been included under the Engineering section of the budget in the amount of $1,882,464 . 6.5 As directed in Resolution #C-204-19, passed on May 21, 2019 giving the Director of Finance discretion to identify funding for the add itional cost of Farewell Creek Trail, included in the capital budget is $450,000 funded from a combination of levy, grants, development charges and reserves. 7. Debt Status 7.1 Current projected annual debt repayment obligations for 2020 Budget purposes total $2,688,395 (2019 - $2,839,715) predominantly funded from development charges. Existing debentures include those issued for: Bowmanville Indoor Soccer, Garnet B. Rickard Recreation Complex, Community Care Durham space, Green Road grade separation, Courtice branch library, the Diane Hamre Recreation Complex, as well as retrofits for the Municipal Administration Centre and Pad A of the Garnet B. Rickard Recreation Complex. 7.2 In 2018, two debenture projects were funded internally and will be repaid through transfers between Reserve Funds. The Garnet B. Rickard Recreation Complex parking lot refurbishment will be repaid through a portion of the annual contribution to the Parking Lot Rehabilitation Reserve Fund. The LED light retrofit will be repaid through savings in electricity and maintenance costs for streetlights. 7.3 There are projected needs for $4.2 million in debentures related to the design and construction of the South Bowmanville Recreation Centre. The Municipality has completed grant applications for approximately 75% funding for this project. The timing of the issuance of the debenture will be dependant on the needs of the Region of Durham. Page 187 Municipality of Clarington Page 7 Report FND-002-20 8. Municipal Grant and Sponsorship Programs 8.1 The Municipal Grant program and the Municipal Sponsorship Programs are admin istered through the Community Services Department. The Budget presented via this report includes $60,000 for the municipal grant program and $35,000 for the municipal sponsorship program. The funds are allocated based on Council direction when the appropriate reports are brought forward in compliance with the approved policies for the two programs. 9. Reserve and Reserve Fund Contributions 9.1 Consistent with past practice, increases in reserve and reserve fund contributions are at times deemed appropriate to bolster balances in depleting reserve funds or to begin to put aside funds for an identified need. This is an important part of our asset management strategies. For 2020, there are several increases to the contributions which have been recommended in the Draft Budget Book (page 181) including: Reserve Fund Amount of Increase Facilities/Parks Maintenance Reserve Fund $ 27,000 Community Services Capital Reserve Fund 25,000 Fire Equipment Reserve Fund 25,000 Operations Equipment Reserve Fund 25,500 Community Services Building Refurbishment Reserve Fund 22,500 9.2 An increase to the Pits and Quarries Reserve also occurred; however, it was as a result of increased royalties that will be received in 2020 and is a direct offset. 10. External Agencies 10.1 The requests from the external agencies, including the Clarington Public Library and Museums, Visual Arts Centre, Bowmanville Older Adults Association, Community Care Durham, Newcastle Community Hall, Grandview Children’s Centre Page 188 Municipality of Clarington Page 8 Report FND-002-20 10.2 The largest increase relates to the John Howard Society/Firehouse Youth. In 2019 they were provided $276,731 from the budget; they are requesting a grant of $331,226 which represents a 19.7% increase of approximately $54,500 . This increase relates to the annualization of costs to provide services to the Newcastle Youth Centre and the Loft (Courtice Youth Centre). 11. 2020 Accrual Based Budget for PSAB per Ontario Regulation 284/09 11.1 Public Sector Accounting Board annual reporting requirements for municipal Budgets require that certain accrual-based items be reported to Council in conjunction with the Budget for 2011 onwards. 11.2 Accrual based expenses that are excluded from the 2019 tax-based budget include post- employment benefits and amortization of capital assets. Other items to transfe r to a PSAB Budget include tangible capital asset acquisitions and accounting treatment of debt principal payments. 11.3 There is no immediate financial impact of these PSAB additions or reductions since the tax-based budget approves necessary funds to provide municipal services for 2019, but there are longer term implications. 11.4 The estimated change to the accumulated surplus at the end of 2019 resulting from the above items is as follows: PSAB Additions to the 2020 Budget Adjustment 2020 Dollar Amount Tangible Capital Asset Amortization $ 20,093,171 Post-employment Benefit Estimate 590,000 Total PSAB Additions $ 20,683,171 Page 189 Municipality of Clarington Page 9 Report FND-002-20 PSAB Reductions to the 2020 Budget Adjustment 2020 Dollar Amount Tangible Capital Asset Acquisitions $ (28,672,886) Debt Principal Payments (2,334,033) Total PSAB Reductions $ (31,006,919) Total PSAB Impact Adjustment 2020 Dollar Amount (Increase) / Decrease in Accumulated Surplus $ (10,323,748) 12. Council Options 12.1 The Draft Budget Book includes “Items for Council Consideration” starting on page 34. These items are not part of the proposed budget increase of 1.83%. This list formerly would have been called the “B list”. 12.2 There are 14 items, which would have a total impact of approximately $2.3 million, or 3.93% to the municipal tax levy. Certain projects may be development charge eligible including the Newcastle Community Park and Newtonville Estates Parkette; however, the total cost has been included in this list without consideration for use of development charges. 12.3 Four new firefighters are included on the proposed list as it was recommended through the Grant Thornton report that the Municipality review staffing levels in Fire Services. A Fire Masterplan is proposed to be completed in 2020. The Municipality has been putting aside funds to the Future Staffing Reserve Fund which may be utilized for firefighters or any other new staffing position. The 2019 contribution of $250,000 has been maintained for 2020. Page 190 Municipality of Clarington Page 10 Report FND-002-20 12.4 Not included in the list are the impact of inflation which were not captured. For example, the budget figure for culverts has been relatively maintained; however, the cost of individual culverts has increased which means that the purchasing power of the Municipality and the service we can provide has decreased although the budget has remained the same. 12.5 Also not included in the list is a request from the Royal Canadian Legion for financial support for their banner program. This request was received after the draft budget was sent to print. The impact of the $6,500 request is an impact of 0.01% or $0.16 to the tax levy. 12.6 Any item from this list which Council wishes to add to the budget, or items not on the list which Council wishes to add, will be in addition to the 1.83% proposed municipal levy increase. 13. Concurrence While concurrence is not applicable, the Department Heads have been consulted on the 2020 Budget and provided input into the draft figures and draft budget book. 14. Conclusion This report and accompanying documents are intended to provide Council with the information necessary to make strategic decisions and ultimately adopt a budget for the 2020 fiscal year. Staff Contact: Trevor Pinn, Director of Finance / Treasurer, 905-623-3379 ext.2602 or tpinn@clarington.net. Attachments: Attachment 1 – Region of Durham 2020 Strategic Property Tax Study Attachment 2 – 2020 Staffing Memo from the CAO Interested Parties: The following interested parties will be notified of Council's de cision:  Community Care Durham  The Clarington Public Library and Clarington Museums;  Bowmanville Older Adults Association  John Howard Society of Durham  Newcastle Community Hall  Visual Arts Centre Page 191 If this information is required in an accessible format, please contact 1-800-372-1102 ext. 2304 Header To: Finance and Administration Committee From: Commissioner of Finance Report: #2020-F-03 Date: February 11, 2020 Subject: 2020 Strategic Property Tax Study Recommendations: That the Finance and Administration Committee recommends to Regional Council that: A)For the 2020 property taxation year, the municipal property tax ratios for the following property classes for the Regional Municipality of Durham be set as follows and the requisite by-law be prepared, and approval be granted, Multi-Residential 1.8665 New Multi-Residential 1.1000 Landfill 1.1000 Pipelines 1.2294 Farmland 0.2000 Managed Forests 0.2500 Commercial Broad Class (including Shopping Centres, Office Buildings, Parking Lots and Residual) Occupied 1.4500 Vacant Land 1.4500 Excess Land 1.4500 On Farm 1.4500 Industrial Broad Class (including Large Industrial and Residual) Occupied 2.0235 Vacant Land 2.0235 Excess Land 2.0235 On Farm 2.0235 36 Attachment 1 to FND-002-20 Page 192 Report #2020-F-03 Page 2 of 23 Report: 1.Purpose 1.1 The annual Strategic Property Tax Study accompanies the Business Plans and Budgets and provides an update on various property tax issues related to this significant revenue source. In 2019, budgeted Regional property tax revenue was $669.1 million or 54.7 per cent of the total $1.225 billion gross expenditures for Regional property tax supported services. 1.2 The 2020 Strategic Property Tax Study provides information and analyses on numerous property tax items, including: Assessment base trends including growth and the declining non-residential share which places upward pressure on the residential property tax rates; Impacts from the 2016 reassessment phase-in for the 2020 taxation year and information on the upcoming 2019 reassessment for the property taxation years 2021 to 2024; Update on the vacancy policy phase-out (third and final year) for commercial and industrial properties; Update on the current value assessment (CVA) at risk in assessment dispute processes; Review of Durham’s municipal tax ratios and comparison to comparable municipal jurisdictions; Comparison of average residential home and non-residential property taxes across comparable municipalities; Heritage property tax rebate matching request from a local municipality; and Impact of the Provincial 2020 education property tax rates. 37Page 193 Report #2020-F-03 Page 3 of 23 2.The Assessment Base 2.0% 1.7%1.6%1.4%1.4%1.6% 1.1%1.2%1.4% 1.7%1.7%1.8%200920102011201220132014201520162017201820192020Residential Class 84.7% 15.3% Weighted Assessment Base Composition Residential Classes Non-Residential Classes Historic Budgetary Growth 2020 78.7% 21.3% 1998 Assessment Base Trends Assessment Growth 2.1 Historically, Durham Region’s residential growth has been strong relative to the non-residential growth, contributing to a continual decrease in the proportionate share of non-residential assessments in the assessment base. 2.2 For 2020, the estimated total weighted assessment growth is 1.95 per cent. 2.3 Continuing Council’s direction contained in Report #2018-COW-19, the 0.17 per cent of the 2020 growth attributed to the Seaton community has been deferred until Regional departments begin incurring annual operating expenditures related to the Seaton development. This will ensure long term financial sustainability by matching taxable assessment growth and the related property tax revenue from the Seaton community with the budgeted Regional operating costs to service this community. This treatment is unique due to the large scale of the Seaton community and the intense and rapid planned development that will have a measured impact on the Regional expenditures in the near term. Non-Residential Share of Regional Assessment and Taxation Base 2.4 Figure 1 shows the significant decline in the non-residential share of the Region’s property tax base since 1998 and the corresponding increase in the residential share of the tax base. Figure 1 Share of Regional Property Taxes 1998-2020 21.3% 15.3%199820002002200420062008201020122014201620182020Non-Residential 78.7% 84.7%199820002002200420062008201020122014201620182020Residential (including MR) 38Page 194 Report #2020-F-03 Page 4 of 23 2.5 The only exception to the decline in the non-residential share was between 2006- 2012 when non-residential properties experienced a higher valuation increase due to reassessment. A significant number of these reassessment increases were partially reversed through Assessment Review Board (ARB) decisions which contributed to the continued decreasing non-residential share from 2012. 2.6 The decrease in the non-residential share of the Regional taxation base is primarily the result of declines in the industrial property class share. Figure 2 Non-Residential Share of Regional Property Taxes 1998-2020 11.8%11.9% 8.7% 2.7% 21.3% 15.3%199820201998202019982020Commercial Industrial Non-Residential 2.7 The decrease in the non-residential share places upward pressure on the residential property tax rate and has a direct impact when comparing relative tax load as discussed in section 7.10 to 7.14 of this report. 2.8 The changes in Regional taxation shares by property class are the result of: differences in assessment growth across the property classes; different valuation changes across the property classes from reassessments; ARB assessment appeal decisions; and changes to municipal tax ratios. 39Page 195 Report #2020-F-03 Page 5 of 23 3.2016 CVA Reassessment for Taxation Years 2017 to 2020 0.2%2.2% -1.3% -3.4% 2.5% By Property Class 2020 Regional Reassessment Property Taxation Impacts Residential Class Multi - Residential Class Commercial Broad Class Industrial Broad Class Farmland Class Regional Reassessment Tax Impact $7 0.3% Regional Average Home CVA = $483,100 Reassessment Overview 3.1 In 2016, MPAC conducted the provincially mandated reassessment cycle to update the assessment valuation date (from January 1, 2012 to January 1, 2016). Per provincial legislation, assessment increases are phased-in uniformly over the subsequent four-year taxation cycle (2017 to 2020), while assessment decreases are fully implemented in the first year (2017). 3.2 2020 is the fourth and final year of the four-year phase-in of the 2016 CVA reassessment. MPAC is currently working on the next reassessment with a January 1, 2019 valuation date which will be phased-in over the 2021 to 2024 taxation years. Reassessment Impacts 3.3 Reassessment does not result in a change in the total municipal taxation. Municipalities do not collect any additional revenues as a result of reassessment valuation increases. 3.4 Rather, the previous year’s municipal tax rates are discounted by the “Taxation Average” to ensure that the overall reassessment is revenue neutral to municipalities. For the taxation year 2020, the Regional Taxation Average is 6.12 per cent and the 2019 Regional property tax rates will be discounted accordingly. 3.5 Reassessment does result in shifts amongst individual taxpayers and, as a result, Regional taxation shifts occur across property classes and across municipalities. 3.6 A property’s reassessment impact is calculated as follows: Property Reassessment Impact One + Taxation Average Property’s CVA Change – Taxation Average = 3.7 There are different taxation averages for each taxation jurisdiction (region/local municipal and provincial education) as the assessment base for each taxation jurisdiction is different. The reassessment impacts discussed in this report are for the Regional taxation portion of the property tax bill only. 40Page 196 Report #2020-F-03 Page 6 of 23 3.8 A property with a CVA increase of 6.12 per cent in 2020 will have no Regional reassessment taxation impact, as the 2020 Regional taxation average is also 6.12 per cent. 3.9 Figure 3 provides a summary of anticipated Regional taxation shifts that will occur between property classes as a result of the 2020 reassessment phase-in. Figure 3 Estimated Regional Property Taxation Shifts Across Property Tax Classes * The residential class contains multiple property types, including ones that are typically not thought of as being residential (e.g. gravel pits and golf course greens). This Study uses the average single-family detached home as the primary residential comparator and its 2020 Regional reassessment impact is estimated at 0.3 per cent, not the 0.2 per cent estimated for the full residential property tax class shown in the above table. ** Due to small size of Parking Lots class, the dollar impact is below the rounding threshold of the table. Property Class 2020 (fourth/final Year of phase-in) 2017-2020 (full reassessment) $m % $m % Residential * 1.06 0.2% 6.95 1.4% Multi-Residential 0.61 2.2% 2.93 12.2% Commercial Residual (0.85) (1.6%) (5.08) (8.9%) Shopping Centre (0.14) (0.6%) (0.59) (2.5%) Office Buildings (0.07) (4.2%) (0.41) (20.5%) Parking Lots ** -1.1% 0.01 5.4% All Commercial (1.06) (1.3%) (6.07) (7.3%) Industrial Residual (0.37) (3.2%) (2.14) (16.3%) Large Industrial (0.26) (3.8%) (1.73) (21.5%) All Industrial (0.63) (3.4%) (3.87) (18.3%) Farmland 0.07 2.5% 0.30 13.1% Other (0.05) (3.1%) (0.24) (13.3%) Total - - - - 3.10 Figure 4 provides a summary of estimated Regional taxation shifts between local municipalities that occur as a result of the reassessment. Figure 4 Estimated Regional Property Tax Shifts by Local Municipality Local Municipality 2020 (fourth/final year of phase-in) 2017-2020 (full reassessment) $m % $m % Pickering 0.19 0.2% 1.05 1.0% Ajax 0.30 0.3% 1.66 1.5% Whitby 0.74 0.5% 3.64 2.7% Oshawa 0.18 0.1% 0.62 0.5% Clarington (0.48) (0.6%) (2.13) (2.5%) Scugog (0.35) (1.4%) (1.76) (7.1%) Uxbridge (0.36) (1.3%) (1.99) (6.8%) Brock (0.22) (2.0%) (1.09) (9.5%) Total - - - - 41Page 197 Report #2020-F-03 Page 7 of 23 Region-Wide Average Home Impact 3.11 The average Region-wide single-family detached home will have a CVA of $483,100 in 2020 and an estimated 0.3 per cent, or approximately $7 increase in its Regional property taxes as a result of the reassessment. 3.12 The 2016 reassessment showed a more significant degree of variability and larger redistributions than previous reassessments. This was especially true for the single-family detached home which, on average, will experience a 0.3 per cent increase in 2020 Regional taxes due to reassessment. However, this average does not convey the large range of impacts across geographical areas. For example, the average single-family detached home Regional reassessment tax impact ranges from a high of a 0.9 per cent increase in Whitby to a low of a 2.3 per cent decrease in Brock. 3.13 The variance in Regional reassessment taxation impact are a direct result of the variance in the average CVA change of the local specific average home as shown in the figure 5. Figure 5 Average Home 2020 CVA Changes due to Reassessment 6.1% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%PickeringAjaxWhitbyOshawaClaringtonScugogUxbridgeBrockRegionalRegionalTaxationAverage(All Properties)Upcoming MPAC Reassessment 3.14 On April 23, 2019, the Province changed the upcoming reassessment date from January 1, 2020 to January 1, 2019. The accelerated start date will allow MPAC additional time to consult with stakeholders and improve assessment roll accuracy with the hope of reducing future assessment disputes. 3.15 It is anticipated the municipalities will be able to analyze and report on the preliminary results of the reassessment that will impact the taxation years 2021 - 2024 in the late summer or early fall of 2020. 3.16 The resulting CVA changes from the upcoming reassessment for this reduced three-year period will still be phased-in over four tax years (2021-2024). 42Page 198 Report #2020-F-03 Page 8 of 23 4. Completion of Vacancy Discount Phase-Out and Municipal Tax Ratio Reduction for the Occupied Industrial Broad Classes 2.260 2.185 2.104 2.024 2017 2018 2019 2020 Lowering the Industrial Municipal Tax Ratio has resulted in a 10.5% decrease in municipal taxation over 3 years Industrial Municipal Tax Ratio Reductions 4.1 After extensive consultation with the public, business community and local municipalities, Regional Council, as part of the 2018 Strategic Property Tax Study, approved the phase-out of the two property taxation vacancy policies that were applicable to both the commercial and industrial broad classes. More specifically: Regional Council approved a three-year (2018-2020) phase-out of discounts applied to municipal property taxes on parcels in the vacant and excess land subclasses within the broad Commercial and Industrial property tax classes. F or the 2020 property taxation year, the discount will be eliminated for both the Commercial and Industrial broad property tax classes and the vacant and excess land subclasses within the broad classes will have the same tax rate as the applicable occupied tax class. To improve Durham’s industrial competitiveness, Regional Council also directed that any increased municipal property taxation resulting from the phase-out of the vacant and excess land subclass discounts in the Commercial and Industrial broad property tax classes be used to fund a phased-in reduction of the Industrial broad class municipal property taxes through a reduction in the Industrial broad property tax class occupied municipal tax ratio. Over the three- year phase-out program, the industrial broad class occupied municipal tax ratio was reduced by 10.5 per cent assisting in the overall competitiveness of the Regional property tax structure. Regional Council also approved a two-year phase-out (2018-2019) of the vacant unit property tax rebate program available to eligible units in the broad Commercial and broad Industrial property tax classes. This program was eliminated in 2019. 4.2 Figure 6 on the following page, provides the estimated impacts of the vacant and excess land subclasses’ discount phase-out and reduction in the industrial broad class municipal tax ratio. 43Page 199 Report #2020-F-03 Page 9 of 23 Figure 6 2020 Estimated Impact on Total Municipal Property Taxes Resulting from the Vacant Policy Changes and Industrial Ratio Reduction $ millions 2020 Estimated Municipal Taxes (after ratio adjustment & with no budgetary increase) 2020 Estimated Change in Municipal Taxes 2020 Estimated % Change in Municipal Taxes Residential 919.43 0.00 0.0% Multi-Residential 50.98 0.00 0.0% Commercial (broad) Occupied 131.65 0.00 0.0% Vacant Land 4.43 0.49 11.1% Excess Land 1.51 0.17 11.1% Commercial Subtotal 137.59 0.66 0.5% Industrial (broad) Occupied 26.83 (1.02) (3.8%) Vacant Land 3.17 0.28 8.9% Excess Land 0.87 0.08 8.9% Industrial Subtotal 30.87 (0.66) (2.2%) Other 7.31 0.00 0.0% Total 1,146.18 0.00 0.0% Vacant properties and excess land parcels in the broad commercial classes will experience an 11.1 per cent increase in municipal taxes or $0.66 million in 2020. Vacant properties and excess land parcels in the broad industrial classes will experience an 8.9 per cent increase in municipal taxes or $0.36 million in 2020. All properties in the broad occupied industrial property classes will experience a 3.8 per cent decrease in municipal taxes or $1.02 million in 2020. There is no impact on the occupied commercial, residential, multi-residential or farmland property taxes classes as a result of this policy changes. 4.3 Due to the significant uptake in the elimination of the municipal tax rate discounts applied to the vacant and excess land subclasses, the Province recently eliminated the corresponding reduction on the education taxes province-wide (previously the Province simply matched a municipal reduction in the discounts). 5.Municipal Property Tax Reduction for “On Farm” Property Class (Farm Value Added Activities) 5.1 In the 2017 Ontario Economic and Fiscal Review (November, 2017), the Province announced a policy change that provided “municipalities with the flexibility to tax the first $50,000 of assessment on qualifying value added and commercial activities on farms at a rate that is 75 per cent lower than the commercial or industrial tax rate that would otherwise follow.” 5.2 The provincial regulations (Ont. Regulation 361/18) required to implement this new flexibility were filed on May 3, 2018. The Province implemented the full reduction with respect to provincial education taxation in 2018. 44Page 200 Report #2020-F-03 Page 10 of 23 5.3 MPAC completed the property inspections and issued the revised assessment notices in the spring of 2019. The 2018 and 2019 Regional property tax strategy reports deferred the decision whether the Region would adopt the municipal discount for these new subclasses until MPAC had identified the eligible properties and an impact analysis could be completed by the Region. 5.4 There are a very limited number of On-Farm class properties in the Region of Durham. MPAC returned seven properties on the 2020 assessment roll that had assessment in the On-Farm subclass. All these properties had CVA in the Commercial On-Farm subclass, while one property also had CVA in the Industrial On-Farm subclass. The seven properties are located in Clarington (4), Brock (2) and Scugog (1). The total assessment in the combined On-Farm classes is less than $315,000. 5.5 Should the optional municipal discounted tax rate be adopted, the estimated taxation shifts from these seven properties is $2,400 for the Regional portion of property taxes and a total of $1,400 for the three lower tier’s portions. Relative to the size of the taxation bases, the tax shifts are immaterial and would amount to less than $0.01 for the average Regional home. 5.6 Due to the small number of qualifying properties in Durham Region, the limited incentive nature in this program and the local municipal administrative burden associated with adopting the optional municipal tax rate discount, there is little justification to institute the municipal portion of this program. 5.7 It is possible in the future that the Province may change the parameters of this program. However, it is not clear that municipalities will have the opportunity to re- evaluate their participation in an expanded program at that time. 5.8 The program parameters put in place by the Province have the potential to create an inequity amongst similar properties. For example, a property valued at $1,000,100 CVA is not eligible for this reduction, while one valued at $999,900 may be. 5.9 The abrupt application of this threshold or the “cusp” issue make it difficult to justify municipal involvement in this program as the Region of Durham attempts, as much as possible, to treat similar properties in a similar manner. 5.10 For these reasons, it is recommended that the Region of Durham not adopt the municipal property tax rate reduction option for the Commercial and Industrial On- Farm subclasses at this time. Regional staff discussed this recommendation with the Area Treasurers in 2019 who raised no objections. 45Page 201 Report #2020-F-03 Page 11 of 23 6. Assessment at Risk Update 0.52% 0.83%0.80%0.83%0.77% 0.30% 0.23%0.13%0.08%0.17%0.82% 1.07%0.93%0.91%0.94% 2005CVA 3 Years 2008CVA 4 Years 2012CVA 4 Years 2016CVA 3 Years 2006 to 2019 ARB RFR Settled and Forecasted Regional Property Tax Losses Based on medium risk scenario. Assessment Disputes 6.1 At any given point in time, five to ten per cent of the Region’s assessment base can be involved in an assessment or classification dispute. This represents a significant financial risk to the Region and the Area Municipalities. 6.2 More specifically, the dispute process and the resulting assessment settlements, which are typically reductions, represent the following three financial risks to the municipal sector: Municipalities are required to rebate the difference between the previously billed property tax amount based on the original CVA and the revised billing based on the revised CVA (typically lower). The longer the complaint has been outstanding, the more years of municipal taxes that are required to be rebated. The most material complaints are for non-residential assessment. CVA reductions on these types of properties further erodes the non-residential assessment base, shifting taxes to the residential property tax base. Finally, changes to previous assessment cycles have the potential to put downward pressure on the current assessment cycle values, which may result in reduced assessment growth going forward. 6.3 There are two processes by which taxpayers can pursue assessment disputes. The first process, which is mandatory for residential properties, is the Request for Reconsideration (RfR) process. This is an informal process whereby the property owner requests MPAC review the file and the owner ensures that MPAC has up-to-date and correct property information. Through this review, one of the following two outcomes could occur. o MPAC may offer to revise the returned assessment based on more current/accurate information or may confirm the returned assessment as accurate. Should the property owner not agree with the outcome, they have 90 days to file an appeal to the Assessment Review Board (ARB). o If a change in the assessment is proposed by MPAC, a Minutes of Settlement Offer would be provided to the owner and, if it is agreed to by the owner, then the assessment is adjusted. The owner has 90 days to accept the Minutes of Settlement or move on to the next part of the dispute process (ARB appeal). 46Page 202 Report #2020-F-03 Page 12 of 23 The second process is an appeal to the ARB, which is an independent adjudicative body within the Ministry of the Attorney General that decides assessment and classification complaints in Ontario. It can take several years for disputes to reach settlement at the ARB, with many of the more complex commercial and industrial-type complaints resulting in processes that stretch far beyond the current four-year assessment phase-in period. 6.4 In response to the increased volume of assessment appeals and based on stakeholder feedback, in 2017 and 2019, the ARB initiated processes to modify its Rules of Practice and Procedure with the key objective of more timely appeal resolutions. 6.5 Although the number of dispute claims are fairly evenly split between the RfR process (52.1 per cent) and the ARB process (47.9 per cent), the total Assessment at Risk in the ARB process is almost eight times (88.4 per cent) that of the RfR process (11.6 per cent). Further, the estimated Regional taxation losses over the period 2006-2019 in the ARB process ($53 million) are almost four times the losses in the RfR process based on historical analysis ($14 million). 6.6 The next section briefly summarizes the RfR (primarily residential) historical disputes, and the remainder of this section focuses on the higher risk ARB (primarily non-residential) disputes. Request for Reconsideration Process (RfR) Summary 6.7 Figure 7 provides a summary of the estimated Regional taxation losses for the four CVA cycles over the period 2006 to 2019 including both the losses on resolved RfR disputes and the estimated losses on the outstanding RfR disputes based on a medium risk scenario. Figure 7 Request for Reconsideration (RfR): Estimated 2006-2019 Regional Property Taxation Losses as a Share of Total Regional Taxation 0.303%0.234% 0.133%0.077% 0.174%0.008% 0.002% 0.303% 0.234% 0.133% 0.085% 0.176% 2005 CVA Cycle (2006-2008) 2008 CVA Cycle (2009-2012) 2012 CVA Cycle (2013-2016) 2016 CVA Cycle (2017-2019) All Cycles (2006-2019) Resolved Outstanding 6.8 The Regional taxation loss due to the RfR process has continued to decline since the 2005 CVA cycle as shown above. A review by the Ontario Ombudsman in 2006 resulted in significant changes to the MPAC RfR process which is believed to have significantly contributed to this decline. 47Page 203 Report #2020-F-03 Page 13 of 23 Assessment Review Board (ARB) Disputes 6.9 The following analysis covers the last four reassessment cycles (2005, 2008, 2012 and 2016) encompassing taxation years 2006 to 2019. 6.10 Figure 8 outlines the assessment at risk for each reassessment cycle. The significant jump in the assessment at risk in the 2008 CVA cycle was the result of the economic downturn, as well as large group appeals by owners who had significant properties across the Province. This was particularly apparent in the large retail sector. The non-residential disputes are also driven by various economic factors including the declining manufacturing sector and the changes in ‘brick and mortar’ retail sector, driven by on-line shopping. Figure 8 Assessment at Risk in ARB Disputes 2006-2019 ($m) 6.11 The backlog of ARB disputes has decreased over the previous two years, however there is still a material backlog in the 2012 CVA cycle. The majority of the ARB appeals for the 2016 CVA cycle are currently in the appeal process and limited settlements have been reached thus far. 6.12 As illustrated in Figure 9, on the following page, the Regional taxation loss due to the ARB settled disputes over the four CVA cycles is $34.2 million. It is estimated that the outstanding ARB disputes will result in additional Regional taxation losses of $24.9 million under the medium risk scenario (high risk scenario estimate is $29.3 million; while low risk scenario estimate is $19.9 million). $6,212 $9,952 $9,015 $3,450 $6,573 $13,116 $8,990 $1,498 $445 $3,988 $15,604$12,785 $23,513 $21,994 $20,551 2005 CVA Cycle (2006-2008) 2008 CVA Cycle (2009-2012) 2012 CVA Cycle (2013-2016) 2016 CVA Cycle (2017-2019) Withdrawn or CVA Confirmed Resolved Outstanding 48Page 204 Report #2020-F-03 Page 14 of 23 Figure 9 ARB Appeals: Estimated 2006-2019: Regional Property Taxation Loss As a Share of Total Regional Taxation Under a Medium Risk Scenario 6.13 The estimated Regional taxation losses peaked with the 2008 CVA cycle. It is estimated that the 2016 CVA cycle losses will also be significant due to weakness in the auto manufacturing sector and the continued erosion of the large retail sector, as a result of the shift away from brick and mortar stores to on-line shopping. 6.14 The Region has a property tax appeal reserve to mitigate this risk and to fund abnormally high rebates of previous year’s Regional property taxes. The Region has also included an additional provision in its annual budgets since 2016 (the “Adjustment to Assessment Base”) to mitigate property taxation shifts from the reassessment that may be reversed in the appeal process specific to large properties. 6.15 Region staff, through the review of the assessment at risk, examined the sustainability of the Region’s Property Tax Appeal Reserve including the annual contribution to this reserve. Based on this analysis, staff is recommending, as part of the 2020 Property Tax Supported Business Planning and Budget submission, a $195,000 reduction in the annual contribution to the Property Tax Appeal Reserve. This reduction results in an annual contribution of $1.0 million to the reserve in the 2020 Budget. 6.16 Although there is much uncertainty with respect to the outstanding ARB disputes, it is anticipated that the above proposed changes to the current Property Tax Appeals Reserve is appropriate and will assist in mitigating the impact of these taxation losses. Regional staff will continue to monitor the assessment appeals. 0.520% 0.810% 0.421% 0.046% 0.445% 0.024% 0.381% 0.783% 0.325%0.520% 0.834%0.802%0.829%0.770% 2005 CVA Cycle (2006-2008) 2008 CVA Cycle (2009-2012) 2012 CVA Cycle (2013-2016) 2016 CVA Cycle (2017-2019) All Cycles (2006-2019) Resolved Outstanding 49Page 205 Report #2020-F-03 Page 15 of 23 Regional Role in Assessment Disputes 6.17 The Region’s 49 per cent share of total property taxation relies on maintenance of the assessment base and any reduction due to appeals has a direct financial impact on Regional taxation revenues. The Region has ongoing dialogue with the local municipalities when feasible. 6.18 As discussed in previous years’ studies, the Region’s legislative disconnect from the assessment complaint and appeals process due to lack of upper tier inclusion in the relevant provincial legislation represents a financial risk. This impacts the Region’s ability to accurately forecast potential financial losses and effectively monitor and protect the assessment base. 6.19 Regional Council has previously requested that the Province amend the Assessment Act to provide upper tier municipalities with the appeals rights that are commensurate with the responsibilities of the upper tier to set property taxation policy, as well as recognizing the upper tier’s higher share of property tax revenues. To date, no response has been provided or action taken by the Province on this issue. General Motors of Canada 6.20 In late December 2019, General Motors Canada (GM) produced the last vehicle from its Oshawa manufacturing facility. 6.21 GM has begun work on constructing an oval test track for electrical and autonomous vehicles at the site which will support GM’s Canadian Technical Centre campuses located in Oshawa and Markham. Other activities may have been informally referenced, but to date have not been confirmed. 6.22 The 2020 CVA on the property has not been adjusted by MPAC to reflect the change in use of the property. Further, the property is still subject to appeals for all taxation years subsequent to 2012 (two full assessment cycles). 6.23 Finance staff will continue to work in collaboration with Regional Economic Development, City of Oshawa, and MPAC staff on this important file. As more information becomes available, staff will develop more detailed impact analysis and report back to the Finance and Administration Committee, as appropriate. 7. Inter-Municipal Comparisons Municipal Tax Ratios 7.1 The calculation of property taxes is based on a property’s CVAs as included in the returned assessment roll provided by MPAC under the authority of the Assessment Act and the Municipal Act, 2001 where: MPAC is responsible for the classification and CVA assignment for all individual properties in Ontario; and Municipalities must use MPAC information along with budgetary requirements and municipal taxation ratios to calculate annual property tax rates applicable to individual property tax classifications. 50Page 206 Report #2020-F-03 Page 16 of 23 7.2 The upper-tier municipality (e.g. Durham Region) in a two-tiered municipal structure is responsible for property taxation policy decisions related primarily to property classes and municipal property tax ratios. Local municipalities are legislatively required to use the upper tier property classes and municipal property tax ratios in the calculation of local municipal property rates. 7.3 A municipal tax ratio is the degree to which an individual property class is taxed relative to the Residential class. If the Multi-Residential municipal tax ratio is 1.867, then its municipal property taxation rate will be 1.867 times that residential class tax rate. Since municipal tax ratios show the degree to which the non-residential classes are taxed relative to the residential class, the ratios have a direct impact on the competitiveness of municipal non-residential property taxes. Figure 10 2019 Municipal Tax Ratio Comparison Multi-Residential Commercial Industrial Farmland Ratio Rank Ratio Rank Ratio Rank Ratio Rank Durham: (Recommended 2020) 1.8665 4 1.4500 2 2.0235 4 0.2000 2 Toronto 2.3444 9 2.7800 10 2.7632 9 0.2500 5 Peel Region (Mississauga) 1.3461 2 1.5007 4 1.6266 2 0.2500 5 Halton Region 2.0000 7 1.4565 3 2.3599 6 0.2000 2 York Region 1.0000 1 1.2794 1 1.5704 1 0.2500 5 Ottawa * 1.3990 3 1.8576 6 2.4358 7 0.2000 2 Niagara Region 1.9700 6 1.7349 5 2.6300 8 0.2500 5 Waterloo Region 1.9500 5 1.9500 7 1.9500 3 0.2500 5 Hamilton ** 2.5671 10 1.9800 8 3.3696 10 0.1767 1 Windsor *** 2.0000 7 2.0187 9 2.3200 5 0.2500 5 Average 1.8443 1.8008 2.3049 0.2277 Ratios in table have been rounded to three decimal places. * Ottawa has special classes, the broad class ratios are shown ** Hamilton has a Large Industrial class with a ratio of 3.951 *** Windsor has a Large Industrial class with a ratio of 2.938 7.4 As illustrated in Figure 10, Durham Region has a competitive Multi-Residential ratio of 1.867. Durham’s ratio is marginally above the average of the similar municipal comparators. For a local municipality with a large share of multi-residential assessment, any reduction in this ratio would shift significant local municipal taxes to the residential property tax class. 7.5 Durham Region has a competitive commercial ratio of 1.4500. Durham’s ratio is 20 per cent below the average of the comparators (1.8008) in the above table. Durham has the second lowest ratio and is just slightly lower than Halton’s ratio of 1.4565. In several instances, municipalities may be raising the municipal tax ratios to partially offset the inter-class shifting that occurs in a reassessment which is permitted by the Province in special circumstances. 51Page 207 Report #2020-F-03 Page 17 of 23 7.6 Durham Region’s 2020 recommended industrial municipal ratio is 12 per cent below the average of the comparators (2.3049) in the table. Durham is higher than Mississauga, York Region and Waterloo Region. Of note, there are higher ratios for the large industrial class in Hamilton and Windsor which are not considered in this analysis (Durham industrial and large industrial ratios are the same). The phase-out of the vacancy programs resulted in a 10.5 per cent decrease in Durham’s Industrial broad class ratio over the past three years. 7.7 The Province has mandated a maximum farmland municipal tax ratio of 0.25. However, several Ontario municipalities (Durham included) have lowered their ratio from this provincial maximum as a support to the agricultural industry within Durham. 7.8 The remainder of this section provides a summary of the property tax comparisons across comparable municipalities adjusting for the varying market values which then shows the degree to which the market values affect tax rates. 7.9 Caution should be used in interpreting the results of any municipal property tax comparison. These comparisons do not consider municipal services or service levels and a whole range of other unique municipal characteristics (non-residential assessment levels, urban/rural compositions, geographical density and size, and financial sustainability). As such, these comparisons can be useful in showing the impact the assessment base has on property tax rates and to garner an overall impression of general competitiveness, but the results should not in any way be considered a ranking of municipalities or commentary on municipal efficiency or service delivery. Residential Home Property Tax Comparison 7.10 The following residential home property tax comparison is based on the comparison of 10 “average” homes from across all of Durham’s local municipalities. The homes were chosen to reflect, as closely as possible, that municipality’s average home in terms of assessment, age, size and building quality. MPAC provided the CVAs for the comparator municipalities on which the following analysis is based. 7.11 As shown, tax rates and assessments vary significantly between municipalities. In general, they are inversely related (higher assessments allow for a lower tax rate to generate the same tax dollars). 7.12 The residential home comparison found that the comparable municipalities’ average residential tax rate was 14.4 per cent lower than Durham’s. However, assessment values for the comparators were found to be 25.7 per cent higher. The resultant average property tax ($) difference between Durham and the comparator’s average is very minor, at approximately 2.3 per cent, as illustrated in Figure 11 on the following page. 52Page 208 Report #2020-F-03 Page 18 of 23 Figure 11 Residential Home Sample Average: Tax Rate, Assessment and Taxation 100.0 85.6 100.0 125.7 100.0 97.7 Tax Rate X CVA = TaxesDurham AverageDurham AverageDurham AverageComparablesComparablesComparables 7.13 The majority of the large gap in tax rates can be explained by Durham’s much lower market values (assessments). The gap of 14.4 per cent is reduced to 2.3 per cent when Durham’s lower assessments are considered. 7.14 As noted in section 2.7, the lower non-residential share in Durham Region puts upwards pressure on the residential to a greater degree than the comparators. Non-Residential Property Tax Comparisons 7.15 It is difficult to provide a valid non-residential property tax comparison. The primary issue is the uniqueness of the individual properties and the lack of robust sales transactions on which MPAC can base the assessments. 7.16 This difficulty has increased over the last few years, as a result of significant assessment appeals launched by the non-residential sector across Ontario for the previous two reassessment cycles and the resultant changes (implemented and anticipated in both specific property assessments and MPAC methodology). 7.17 However, the 2019 municipal ratio analysis clearly showed that Durham’s commercial ratio is very competitive with comparator jurisdictions. As well, it is believed that municipal taxation is a lessor consideration in a commercial location decision when compared to factors such as customer density and affluence. Further, commercial growth within the Region has kept pace with residential growth over the past two decades. 7.18 Similar to the residential comparison, a commercial comparison based on 18 properties was conducted. As shown in Figure 12 on the following page, tax rates and assessment vary significantly between municipalities. 53Page 209 Report #2020-F-03 Page 19 of 23 Figure 12 Commercial Sample Average: Tax Rate, Assessment and Taxation 100.0 106.2 100.0 115.5 100.0 111.6 Tax Rate X CVA = TaxesDurham AverageDurham AverageDurham AverageComparablesComparablesComparables7.19 Although the commercial sample showed a high degree of variability, the average comparator municipal tax rates were 6.2 per cent higher than Durham’s, while the average CVA was also higher by 15.5 per cent. The resultant property tax average of the comparators is approximately 11.6 per cent higher than in Durham Region. 7.20 An industrial comparison based on 12 properties was also conducted. Again, as shown in Figure 13, tax rates and assessment vary significantly between municipalities. Figure 13 Industrial Sample Average: Tax Rate, Assessment and Taxation 100.0 94.0 100.0 125.9 100.0 94.3 Tax Rate X CVA = TaxesDurham AverageDurham AverageDurham AverageComparablesComparablesComparables7.21 A high degree of variability exists in the sample, however the averages show that the Durham Region tax rate is 6.0 per cent higher than the comparators’, while the CVA is 25.9 per cent lower. The resultant property tax average on the comparators is approximately 5.7 per cent lower than Durham Region. 7.22 The relative historical weakness of Durham’s industrial property tax competitiveness is the reason for Council’s decision to lower the industrial tax ratio approximately 10.5 per cent between 2018 and 2020 as highlighted in section 4.0. As noted previously, property taxation does not appear to be the significant driver in an industrial business determination of site selection. 54Page 210 Report #2020-F-03 Page 20 of 23 8. Heritage Property Tax Rebates 8.1 On November 29, 2019, the Clerk of the Town of Whitby advised the Regional Clerk that the Council of the Town of Whitby adopted the following resolution (#323- 19) on November 25, 2019. “That the Region of Durham be requested to support heritage preservation by adopting a by-law to provide a Regional property tax rebate for designated heritage properties, including those properties within heritage conservation districts. 8.2 At the December 10, 2019, the correspondence was considered by the Regional Finance and Administration Committee and referred to staff for consideration in the 2020 Property Tax Study. 8.3 During the 14 years since heritage property tax rebate programs have existed in certain lower tier municipalities, Regional Finance staff have regularly consulted the Local Area Treasurers with respect to these programs. 8.4 Historically, Regional Council, in 2006 and 2014, has opted not to adopt a matching heritage property tax rebate program based on the principle that, as much as possible, Regional property taxation policy should treat similar properties across the Region in a similar fashion. 8.5 The legislative authority to grant a heritage rebate comes from Section 365.2 (1) of the Municipal Act, 2001 which empowers a local municipality to implement a program of property tax reductions for eligible heritage properties. 8.6 The upper tier municipality is restricted under Section 365.2 (7) to matching an existing lower tier program and cannot create a rebate program in a local municipality that does not have an existing program. 8.7 Currently, in the Region, there are three local municipal heritage property tax rebate programs with different parameters within each program. Below are the estimated enrollments of the current local programs. Ajax 2 properties Whitby 30 properties Oshawa 8 properties 8.8 For clarity, if Durham Region were to match the existing three local programs, it would be in a position of providing property tax relief (funded by all Regional taxpayers) to heritage properties in three municipalities while not being able to provide similar relief to similar properties in the other five municipalities. Further, the legislation requires the upper tier to “authorize a similar reduction”, so the Regional rebates in each of the three local tiers could also be different (tied to heritage program parameters tailored to meet local objectives and therefore, having unique features as set by the individual local Councils). 8.9 Therefore, in keeping with the Regional objective of treating similar properties in a similar fashion across its jurisdiction, it is recommended that the Region not match any of the local municipal heritage property tax rebate programs at this time. Staff will continue to monitor the evolution of these local programs. 55Page 211 Report #2020-F-03 Page 21 of 23 9.Provincial Education Tax Rates 9.1 On January 20, 2020, the 2020 education tax rates were enshrined in Ontario Regulation 6/20. Figure 14, on the following page, provides the 2020 provincial education tax rates. 2020 Residential Ontario Education Tax Rates 9.2 The residential and multi-residential education property tax rate will be 0.153 per cent in 2020, down from 0.161 per cent in 2019. It is estimated that the Average Region-wide home will experience a 1.1 per cent, or $8 increase in residential education taxes as a result of the 2020 Ontario education property tax rates. 2020 Commercial Education Tax Rates: Durham Region Rates 9.3 The commercial broad class education tax rate (for shopping centres, office buildings, parking lots, on-farm and residual) is set at the provincial target rate of 0.98 per cent in 2020, down from 1.03 in 2019 resulting in an average decrease of approximately 0.7 percent in education taxes for the commercial occupied class. 2020 Industrial Education Tax Rates: Durham Region Rates 9.4 For 2020, the Province lowered the education tax rate for the industrial broad class in Durham Region to the provincial 2020 uniform ceiling rate of 1.25 per cent (down from 1.29 per cent in 2019) resulting in an average decrease of approximately 0.9 per cent in education taxes for the industrial occupied class. New construction in the Industrial broad class receives the lower provincial target property tax rate of 0.98 per cent. 9.5 It is worth noting, that reduction in Provincial education tax rates also reduces the education revenue retained by the local municipalities on eligible payment-in-lieu (PIL) properties. 56Page 212 Report #2020-F-03 Page 22 of 23 Figure 14 2020 Ontario Education Property Tax Rates Property Class Education Tax Rate Residential 0.00153000 Multi-Residential 0.00153000 COMMERCIAL Commercial Occupied, Vacant & Excess Land 0.00980000 Shopping Centres Occupied & Excess Land 0.00980000 Office Buildings Occupied & Excess Land 0.00980000 Parking Lots (Commercial) Occupied & Excess Land 0.00980000 New Construction Occupied, Vacant & Excess Land 0.00980000 INDUSTRIAL Industrial Occupied, Vacant & Excess Land 0.01250000 Large Industrial Occupied & Excess Land 0.01250000 New Construction Occupied, Vacant & Excess Land 0.00980000 Pipelines 0.00980000 Farmland 0.00038250 Commercial On-Farm 0.00245000 Industrial On-Farm 0.00245000 Managed Forests 0.00038250 Farmland Awaiting Development Phase 1 0.00114750 57Page 213 Report #2020-F-03 Page 23 of 23 10.Looking Forward 10.1 Regional Finance staff will continue monitoring future developments with respect to the following and report back to Regional Council on: the January 1, 2019 valuation date and 2019 CVA reassessment to be phased- in over the property tax years 2021 to 2024; outstanding and future 2016 CVA assessment appeals and related settlements (for tax years 2017 to 2020) at the ARB; impacts of General Motors closure of the majority of its auto manufacturing activities and related facilities in Durham Region and potential reuse of the properties; and 10.2 An information report is forthcoming to Regional Council to elaborate on issues surrounding the changing nature of work in the new economy and its potential impacts on property taxation (primarily non-residential) and municipal revenues. Respectfully submitted, Original Signed By Nancy Taylor, BBA, CPA, CA Commissioner of Finance Recommended for Presentation to Committee Original Signed By Elaine C. Baxter-Trahair Chief Administrative Officer 58Page 214 Resolutions from Advisory Committees Durham Region Roundtable on Climate Change Committee 1.Letter from the Regional Chair Henry on behalf of the DRRCC to the Members of Parliament Representing Durham Region Ridings That we recommend to the Finance and Administration Committee for approval and subsequent recommendation to Regional Council: That Regional Chair Henry send the letter with respect to working together to ensure we can meet our collective goals for climate action, as approved by the DRRCC at their meeting on January 17, 2020 to the Members of Parliament representing Durham Region ridings, on behalf of the DRRCC. 59Page 215 Business Case Page 1 of 10 If this information is required in an alternate format, please contact the Accessibility Co-ordinator at 905-623-3379 ext. 2131 Date: October 7, 2019 Subject: Full-Time Municipal Law Enforcement Coordinator 1 Key Issues With the complexity and volume of management and Municipal Law Enforcement (MLE) issues in the department, it has become abundantly clear that a single Manager is not able to properly attend to all the matters in a fashion that meets management’s, Council’s, nor the public’s expectations and our customer service levels. 2 Desired Outcomes Ensure that there is enough oversight of the day-to-day operations of managing the MLE Division as well as addressing the MLE matters which are escalated or assigned (including staff scheduling, training, and projects such as by-law reviews). 3 Scope This applies only to the MLE Division of the Municipal Clerk’s Department. 4 Background Including Current Situation, Statistics, and Service Levels 4.1 The MLE Division The MLE Division represents the enforcement arm of the Municipality and is a unique work environment in that it has several levels of employees and includes two work locations and two collective agreements. The Division is responsible for enforcing over 30 municipal regulatory and licencing by-laws. This includes investigating complaints and preparing correspondence. Where compliance cannot be achieved, the officers must prepare and lay charges for violations, assemble and coordinate all material for court and testify when needed. Page 216 Business Case Page 2 of 10 A second major duty of the Division is to review existing by-laws and research and prepare amendments or repeals of the by-laws as needed. The officers must be familiar with current provincial legislation and court rulings as they affect municipal enforcement. When required, the MLE Manager must prepare written reports and position papers to advise and assist Municipal Council on various matters affecting the Municipality as a whole. In addition the Division administers or enforces or works in accordance with certain Federal and Provincial statutes and regulations, such as the: Canada Evidence Act, Criminal Code of Canada, Provincial Offences Act, Statutory Powers Procedures Act, Ontario Building Code Act, Drainage Act, Fire Protection and Prevention Act, Planning Act, Highway Traffic Act, Dog Owner’s Liability Act, Municipal Act, Cannabis Control Act, Smoke Free Ontario Act, Weed Control Act, Ontario SPCA Act, Municipal Freedom of Information and Protection of Privacy Act, Occupational Health and Safety Act, Accessibility for Ontarians with Disabilities Act. This includes the administering of Provincial protocols in some cases and acting under provincial authority as tribunal referees for specific legislation. 4.2 Current Situation We are experiencing difficulty in meeting the service levels and customer expectations of senior management in the MLE Division. There is one full-time MLE Manager overseeing 18 employees: four full-time MLEO IIs; four full-time MLEO Is; two part-time MLEO Is; two MLE Clerks, in addition to the Animal Services Manager, the part-time Animal Services Clerk and two full-time and two part-time Animal Attendants reporting to the MLE Manager. The MLE Manager position is responsible for a very high profile business unit (both from a Council and public perspective) which deals with volatile clientele. These interactions with the public frequently being negative as matters are escalated to this position. There is a constant barrage of negativity directed to the MLE Manager. Aside from the technical knowledge required for the job, the MLE Manager must be skilled in conflict resolution and mediation with defendants and complainants. Page 217 Business Case Page 3 of 10 The MLE Manager position must work in a high pressure environment and: Provide Division leadership in carrying out core functions as well as adhering to corporate strategies. Provide strategic direction for enforcement, licensing, and animal sheltering. Provide advice to management and Council in the form of reports and memos to Council. Undertake responsibilities in accordance with applicable Provincial legislation and municipal by-laws, corporate policies, and department procedures. Manage staff by setting policies, coordinate/provide training, creating and approving work schedules. Coach and advise officers on current investigations and options for enforcement. Supervise staff to ensure implementation and ongoing compliance with policies and procedures and monitor on-going quality of work and prioritization of dispatch duties. Complete special projects, including regular reviews of regulatory by-laws. Adjudication and advocacy by acting as primary appointee for conducting First Attendance Hearings for parking tickets and as the agent for the Municipality in a Property Standards Appeal. Prepare and administer the annual budget for the Division and create long range plans and forecasts for staffing. Address public complaints regarding MLE services as may be escalated by MLE Officers and/or Clerical staff. In order to provide coverage during a prolonged absence by the MLE Manager, beginning in July, 2019, with the approval of the CAO, we temporarily assigned one of the senior MLEO IIs to the position of MLE Coordinator in order to address MLE escalations (i.e. addressing public complaints regarding MLE services), supervision and training of the MLEO Is, manage work schedules as per the collective agreement, administer First Attendance Hearings for parking infractions, etc. We have extended this temporary position for six months to overlap with the return of the MLE Manager in order to allow the Manager to focus on large files/projects, such as the review/update of the “Vehicle for Hire” by-law and the “Agri-Tourism” framework. The current MLE Manager has a four week of vacation entitlement. Page 218 Business Case Page 4 of 10 4.3 Statistics There is a correlation between MLE activities and the volume of issues escalated to the MLE Manager. Counter Encounters As a general indicator of MLE activity, we can use counter encounter statistics. Counter encounters are in-person interactions at the Trulls Road reception counter and they can include, but are not limited to, the following: Parking Complaints Parking Tickets Parking Permits Property Standards Snow clearing Grass cutting Refreshment Vehicle Licensing First Attendances Sign Licensing Fireworks Licensing Taxi licensing Pet Licensing The following shows the total number of counter encounters at Trulls Road in recent years: Year # Counter Encounters1 Comments 2017 1050 2 2018 1595 2019 (as of September 30th) 1597 Since we are already at 2018 levels, we anticipate a 25% increase over 2018. 1 From manual Trulls Road counter encounter statistics (i.e. excludes telephone encounters). 2 The values for 2017 are lower because the counter statistics for Trulls Road only started May 1st, when the MLE Division moved to Trulls Road. Page 219 Business Case Page 5 of 10 Parking Tickets Similarly, increased numbers of parking tickets issued result in an increased number of first attendances. If a person wishes to dispute a parking ticket, they schedule a first attendance, which is a meeting with the MLE Manager. These are in person meetings which are scheduled Tuesdays and Thursdays between 2:00 PM and 4:00 PM and Wednesdays between 10:00 AM and noon. First attendances are booked in 15 minute increments. The following shows the number of parking tickets issued in recent years: Year # Tickets Issued 3 Comments 2017 8,322 2018 9,753 17% increase over 2017 2019 (as of September 30th) 10,612 Since we are already 8% over 2018 levels, we anticipate a 30% increase over 2018. The following shows the number of first attendances scheduled in recent years: Year # First Attendances4 Comments 2017 501 2018 631 26% increase over 2017 2019 (as of September 30th) 824 Since we are already 31% over 2018 levels, we anticipate a 45% increase over 2018. Municipal On-Street Parking Permits Even the issuance of municipal on-street parking permits (MOPPs) can indicate greater activity escalated to the MLE Manager since the purchasing of parking permits often arises out of escalations to the MLE Manager. 3 Based on Command Centre query of infraction dates. 4 Based on Command Centre query of Court/Scheduled Appointments. Page 220 Business Case Page 6 of 10 The following shows the number of permits issued in recent years: Year # Permits Issued 5 2017 627 2018 927 2019 (as of October 3rd) 985 Online Visitor Parking Passes In an effort to streamline the process of first attendances, in February, 2017, we instituted an online visitor parking pass service where a resident could register for up to seven days of free on-street parking, which should have reduced the number of first attendances arising out of “one-off instances where the public felt a need to park on the street”. The following shows the number of days of visitor parking days: Year # Visitor Pass Days 6 2017 5616 2018 10286 2019 (as of September 30th) 10839 However, although the use of the visitor parking passes has increased dramatically, it has not decreased the number of first attendances. 5 Based on the MOPP excel document – looking at number issued, not the permit number. 6 Based on Command Centre query of online visitor parking passes – each record is a separate day. Page 221 Business Case Page 7 of 10 Municipal Law Occurrences The following are the number of municipal by-law occurrences/cases in recent years showing that, although the percentage of parking complaints may be decreasing, the volume of LDO complaints as a total are increasing (i.e. we are already at 2018 levels as of October 3rd): Year Total # LDO7 Complaints (Of Total) Parking Complaints Only Parking Complaints as a % 2017 1800 709 39% 2018 2936 792 27% 2019 (as of October 3rd) 2903 689 24% Formal Complaints By the very nature of the MLE Division, it is subject to a higher number of formal complaints than the other divisions. The MLE Manager is very involved in these complaints and therefore a great deal of time can be devoted to a complaint. The following is a summary of formal complaints involving the MLE Division in recent years: Year # MLE Division Formal Complaints8 2016 2 2017 6 2018 8 2019 (as of September 30th) 10 4.4 Service Levels The Clerk’s Department strives for exceptional customer service and works toward improving it, so much so that in 2017, we identified a need to have the MLE Manager focus on continuous improvement initiatives. 7 Based on LDO where the occurrence number begins with the corresponding year. 8 These formal complaints may have been just within our complaint procedure and/or they may have been formal complaints to the Ombudsman. Page 222 Business Case Page 8 of 10 As a result, we instituted a Continuous Improvement Plan which identified actions to support the following key strategies or responsibilities: 1. Ensure timely, consistent cooperation and relevant communication with Council, internal clients, Department Head, and CAO 2. Ensure timely and consistent communication with external clients 3. Compliance and Enforcement of Municipal By-laws 4. Division Resources 5. Other management activities outside of the Business Plan See Attachment 1 for details of the work involved to support the above. The MLE Manager strives to minimize the response time for complaints, as well as dedicate time to special projects, and oversee the day to day management of a large and varied team. With only a single senior manager in MLE, it is near impossible to achieve these tasks within regular work time frames, resulting in missed vacations, and regular overtime. Our next steps in our customer service evolution is to implement Key Performance Indicators (KPIs). However, this requires a dedicated amount of time to implement and monitor in order to be successful. At this point, the necessary resources are not available. 5 Alternatives 5.1 Option 1 – Hire a Full-Time MLE Coordinator This option involves hiring a full-time MLE Coordinator. This person would be responsible for assisting the MLE Manager in the day-to-day operation of the MLE Division, and support to the MLE Manager. The position’s main focus is to supervise the MLEO Is (including the development and approval of their work schedules) as well as be the primary appointee for conducting First Attendance Hearings for Parking Tickets. This option provides a backup to the MLE Manager during vacation and other absences. This option would free up the MLE Manager to address escalations from the MLEO IIs, special projects, and providing proactive strategic direction for the Division. See Attachment 2 for a draft of the job posting for this new position. Page 223 Business Case Page 9 of 10 5.2 Option 2 – Status quo This option involves leaving things as status quo. We have worked hard to improve the image and professionalism of the Division and have succeeded in many areas in recent years. However, without a dedicated professional focussed on the core values and duties, this is currently not sustainable. As we have experienced in 2019, this is not a tenable as it is putting too much strain on the current MLE Manager. To remain status quo, the service levels of returned calls, escalations, special projects, etc. will need to be modified. 6 Other Considerations (Strategic Plan, Legal, CUPE, Financial, Environmental, Technological) There are no issues anticipated from the union as this position is non-affiliated and is not taking away from affiliated positions. 6.1 Financial Considerations It is anticipated that the salary of this position would be at a Grade 6 level which, for 2020, is $79,743 to $96,928. See attached draft job posting. 7 Consultation with Other Departments Not applicable 8 Recommendation At this time, therefore, I am recommending that consideration be given to hiring a full- time MLE Coordinator. __________________________ C. Anne Greentree Municipal Clerk CAG/jg Page 224 Business Case Page 10 of 10 Attachment 1 Work that Supports the Continuous Improvement Focus Regular updates to front-line staff Conducting information sessions with client departments and individual Members of Council to understand their needs Development of policies such as: licensing policy, dispatch and investigation policy. Streamlining of processes Managing dispatch data to ensure that it remains current and accurate. Conducting regular systematic review of regulatory by-laws through research and development to provide Council with the necessary background, analysis and recommendations to enable them to implement positive by-law policy changes. Establishing protocols for responding to requests and inquiries from Members of Council. Educate, through consistent, accurate and timely information. Establishing and managing dispatch protocols for follow-up communications with complainants and interested parties. Actively communicating enforcement activities. Developing and implementing a communication plan. Assessing the community needs and engaging residents and stakeholders to ensure by-law meet objectives and promote a safe and positive image. Ensure timely response and dispatch follow up by establishing and managing call priority protocols and anticipating service demands. Establish policies and protocols that provide for enforcement with a focus on “solving the problem” approach. Undertake risk assessments. Promote a professional, impartial, courteous and approachable image. Provide for continuous training/education. Coach and advise officers on current investigations and options for enforcement. Establish and manage staffing succession. Page 225 Attachment 2 to FND-002-20 Planning Services Department Position: Convert Contract Planner I – Special Projects to Full-Time Additional Compensation: $20,900 The conversion of the existing contract Planner 1 to full-time would improve the ability of the Planning Services Department to recruit and retain qualified staff in the Special Projects Branch. The existing contract expires in August. It has been extremely difficult to hire and retain qualified staff on contract. In the past 3 years, Planning Services has gone through 8 planners in this contract position which means that just as they are getting to know and understand the job, they are moving into other positions. It means that having the time and focus to achieve quality output from these contracts has been a challenge and will continue to be unless it becomes a full-time position. The Special Projects Branch serves the other branches on projects suc h as ZONE Clarington, leads planning matters relating to heritage, community improvement and heritage incentive programs, aggregate resources, agriculture, and environmental stewardship and climate change. In addition, Special Projects currently serves the Corporation on real estate (recommended to be transferred to Legal as part of the corporate reorganization), Environmental Assessments by others, environm ental permitting and other environmental study reviews (e.g. the Alternative Fuels proposal for St. Marys Cement, the Region of Durham’s EFW capacity increase and eventual expansion, and Lake Ontario shoreline management matters). Managing a wide array of local issues, Special Projects often requires additional research and analysis to establish a good understanding of the issues. The issues are often complex and dynamic, many issues are tracked for several years in advance (e.g. anaerobic digester) to ensure comments on these projects consider the many potential ramifications for the Municipality as a whole. It is anticipated that having a full-time Planner 1 in addition to the two positions in the Development Review branch would allow for cross-branch transitions. Typically, the Planner 1s move into other positions having a diversified background dealing with the many aspects of land use planning would serve the Department and Corporation well. For the past three years, a Contract Planner 1 has been augmenting the work on Zone Clarington. We are recommending this become part of the full-time complement. Many special projects come with some level of funding for consultants (e.g. St. Marys/EFW air quality expert, Clarington Transformer, Port Granby, EFW EA review, Darlington New Build EA review). For these assignments, the Special Projects Branch serves in a project management capacity. To date, there has not been a mechanism to recover the costs associated with project management for these assignments. With the precedent set by the Secondary Plans, it could be possible, in the future, to recover these costs. In addition, Special Projects has handled grants from FCM (Priority Green and more recently Climate Change). Greater opportunity exists to pursue grant Page 226 Attachment 2 to FND-002-20 opportunities; however, our ability to do so is limited by existing high priority projects and workloads. Grant opportunities require staff time to coordinate the grant application and for project management, reporting and monitoring, if applica tions are successful. In addition to specific project work, the Special Projects Branch also often has community liaison committees or public engagement that continues for years after projects have been completed / constructed. Currently, Special Projects Branch staff represent the Municipality on the St. Marys Cement Community Relations Committee, the Port Granby Discussion Group, the Region of Durham’s Energy from Waste Advisory Committee, and Ministry of Environment, Parks and Conservation required community liaison committees (Clarington Transformer, EFW-WMAC, Ganaraska Windfarm). Being able to share these assignments across additional staff would be a more efficient use of resources. Special Projects is also the liaison for two Council advisory committees, Heritage and Agricultural, and manage community liaison committees for the Bowmanville, Newcastle and Orono Community Improvement Programs. Over the past three years, the amount of overtime being carried out by the Manager of Special Projects (although not paid), the Senior Planner and Planner II in Special Projects has been in excess of approximately 445 hours at time and a half either by payout or banked lieu time, which can be attributed to workload . The amount of overtime can be reduced if this new full-time position is created. Position: Convert Clerk I to Planner II – Community Planning Additional Compensation: $24,900 The addition of a Planner II to the Community Planning Branch would mean the workload for Secondary Plans could be more eff iciently and effectively carried out. The Community Planning Branch has 11 Secondary Plans plus 2 Sub -watershed Plans underway. This workload is a result of the Council adopted policies in OPA 107 allowing a group of landowners to advance timing by funding of a Secondary Plan preparation. To meet the demand, a contract Planner II was hired. The contract expires in December 2020. As noted above, it is very difficult to find and retain contract planners, especially one with experience at a more senior level. We have the opportunity with the vacancy of the Clerk I position to make the Planner II full-time thus providing the incumbent with a greater incentive to remain with the Municipality. It is anticipated that the Planner II would remain in Community Planning until the Secondary Plan and Neighbourhood Plan conversions are complete (3-4 years) at which time we would review whether the position should be repositioned. We would position the Planner II between branches depending on where the need is greatest. This has always been a strength of planning where we have a number of employees cross-trained and able to assist with the workload of any of the branches. Currently all Planner I and Planner IIs answer counter inquiries on a “planner of the day” schedule. Page 227 Attachment 2 to FND-002-20 The impact on our 2020 budget would be an increase of $24,900 which is the difference between the Clerk I and Planner II compensation. This conversion is possible as a direct result of the proposed corporate restructuring. In future years, the remaining monies to fund this position could be mitigated through increased application revenues which are anticipated. Community Services Department Position: Full-Time Aquatic Programmer Compensation: $80,800 The Community Services Department is requesting that a Full-time Aquatic Programmer position be added in the Aquatics area of Recreation Services. This request has been discussed internally at the Department level for the last few budget years and has not been brought forward due to competing budget challenges. The last addition of supervisory staff in this area was in 2007 when a full time Aquatic Programmer position was created by combining two part-time positions in advance of the opening of the Newcastle & District Recreation Complex in 2008. The Manager of Recreation Services oversees the aquatics business unit and the Aquatic Coordinator is responsible for the day to day operations of the area. The Coordinator is assisted by one full-time Programmer and one part-time Programmer. This new position would be located at Diane Hamre Recreation Complex and would provide a full-time programmer at each of the two largest/busiest pool facilities. The existing 24-hour position would be relocated to the Alan Strike Aquatic and Squash Centre which has a smaller aquatic instructional program. Duties and Responsibilities The role of the Aquatic Programmer is to provide day to day support to facility, the staff team and customers. Currently there are three indoor pools and one outdoor pool. The day to day duties of the position would include: assist with recruitment, selection & orientation of deck level staff coordinate ongoing job specific training and skill development staff supervision, leadership and scheduling assist with staff evaluation and feedback assist with program planning, implementation & evaluation assist in aquatic administrative tasks respond to customer inquiries and feedback Page 228 Attachment 2 to FND-002-20 Justification for Consideration in the 2020 Operating Budget Over the past few years, municipalities across the Province have been experiencing challenges recruiting, hiring and retaining aquatic staff. Unfortunately, Clarington has not been immune to this trend. We are experiencing decreasing staff availability (as a result of increasing academic expectations and extracurricular activities) resulting in a need to hire, train and supervise a greater number of staff to meet our current service levels. We currently employee approximately 100 part-time deck staff and although we do employ head instructors and head guards, the responsibility for the supervision, management of risk and quality control of our programs rests primarily at the programmer level. In addition to the challenges with the quantity of potential staff, we are also experiencing a decrease in the quality/experience of staff. In a very competitive marketplace , potential employees are being offered positions in multiple municipalities with many making their decisions based on schedules and rates of pay. If Clarington is not the employer of choice for these reasons, and we generally are not, many of the most qualified/experienced applicants choose to work in other Durham Region municipalities. Although we do hire Head Guards and Head Instructors with responsibility for on deck supervision of staff during their shifts, the prime responsibility for the supervision of all staff rest with the programmers. Our three indoor swimming pools operate an average of 207 hours per week and the majority of those hours require significant staff resources to operate. To help illustrate the growth in aquatics over the years, we have provided a comparison from 2008 to 2018 on some key performance indicators. Swimming Lessons/Programs – Registered Participants: 2008 5,599 2018 9,894 77% increase Recreational Swim Visits: 2008 70,122 2018 107,788 54% increase Annual Aquatic Revenue: 2008 $ 600,419 2018 $1,152,985 92% increase This is a critical time in Aquatics. The Municipality needs to invest in staff resources in order to grow and develop leadership programs and to assist in the development of future aquatic staff. The addition of this position will allow the Community Services Department to: Enhance community education around aquatic job opportunities and explore potential partnerships to recruit candidates into expanded leadership programs. Create volunteer opportunities to attract and mentor young staff. Keep pace with the increasing community demand for aquatic programming. Page 229 Attachment 2 to FND-002-20 In the recent staff report on future facility development in South Bowmanville, we indicated a concern on the ability to develop adequate resources to properly staff an additional swimming pool. This challenge coupled with the growth that has occurred in the aquatic business unit over the past 10 years has resulted in unmanageable expectations for key staff that is impacting the quality of service we pro vide our customers. If this new FT position is not considered and approved, we will have an urgent need to create a new 24-hour Part Time Aquatic Programmer position. Based on the data and justification above this business unit will not be able to sustain the current levels of service in both the lesson and public swim areas. Additionally, the quality of the service provided to our customers will also suffer. The current marketplace for aquatic professionals is very competitive and staff are concerned that even a permanent part time position may not be able to attract quality candidates, therefore, the priority for staff is the full-time solution. Position: Part-time Customer Service Programmer Compensation: $51,400 This position is needed in order to deal with the increasing demands and growth in this business unit (see details below), As with the creation of any new business unit, you are not always sure the original allocation of staffing resources will be adequate in the long term. This has certainly been the case with Client Services in Community Services. Some justification information below is provided to assist in moving this position forward for 2020. Client Services was created in 2018, and since then the Customer Services area has evolved as a key support to the rest of the Department as it relates to registrations, facility permitting, POS transactions, transfer and withdrawal support and administration. As the other areas of the Department (i.e. aquatics, recreation programs) grow, so does the support provided by the Customer Services team. ActiveNet is a complex Recreation Leisure Software. During implementation, users had a basic knowledge of the system. As requirements and knowledge has grown, there is an identified need to re-build some of the setup of the system based on our business model. This work requires extensive resourcing to complete. Not only does it involve changing structures that were originally created, it also requires annual maintenance as it relates to rates and fees updating. Over the past few years, municipalities have become increasingly accountable to compliance with standards and procedures. With the Coordinator currently supporting the day to day operations, there are a number of key areas that are not receiving the required attention. With the addition of a Part Time Customer Service Programmer to assist with the day to day operation, the following will be able to rece ive more attention from the Co-Ordinator to bring into compliance: Cash Handling and cash audits in conjunction with Finance Page 230 Attachment 2 to FND-002-20 Allocation development of standards and training of full-time staff Structural review of reporting structures, staff portfolios Evaluation of hours of operation and departmental coordination to ensure CSR coverage is paired with peaks in the facilities SOCAN management, reporting and administration Continued standardized operations of Customer Service desks across locations Lean evaluation of Customer Service Desk processes to streamline and evolve efficiencies. Duties and Responsibilities The role of the PT Customer Service Programmer is to assist the Coordinator to provide day to day support to the customer service team. We current ly operate customer service desks in 5 of our larger recreation facilities. The day to day duties of the position include: Assist to hire, train and onboard part time Customer Service Staff Assist with delivery of training and development of Part Time Cust omer Service Staff Assist with the day to day supervision and guidance of PT staff Assist with the day to day operations of Customer Service Desks, including merchandise sales at swimming pool facilities Assist with the submission of content for General Facility Sections General Information Sections of the Recreation and Leisure Guide Assist with the creation and maintenance of customer service procedures for the Customer Service desks Filling this PT position is also essential to the ability of the Department to take on the field permitting responsibilities that are recommended to be transferred from the Operations Department. These responsibilities alone make up the equivalent of 40% of an FTE. This position could also assist with some of the additional responsibilities if accessibility and tourism are transferred over to Community Services. It is a critical time for this section that requires an investment in staff resources in order to continue to administer the workload increase in the area. As the number of customers, programs and transactions increase in all other areas, this will continue to impact the Customer Service team. These new positions requested by Community Services can be accommodated within the Department’s overall 2% target established by Council. Page 231 Attachment 2 to FND-002-20 Operations Department Positions: Five Temporary Workers (40 hours a week for two additional months) Additional Compensation: $42,950 (total for all five positions) The Operations Department is requesting that the term of employment for five existing temporary roads labourers be extended from six months to eight months. The availability of the additional 1,600 hours of work will help to ensure that required service levels continue to be met or can be potentially expanded. The two additional months of employment in April and November will include such duties as pothole patching, litter collection and providing traffic control for ditching operations. Other assigned duties that have recently become more frequent and could be covered by these additional hours include responses to beach flooding, roadway washouts and the clean -up of tree damage on roads from storms. These temporary provide coverage during the summer months when full-time staff requests for vacation and lieu time are the most frequent. The two additional months of April and November that are being requested are becoming more critical to the Operations Department as climate change is causing increased maintenance and damage to municipal infrastructure. Position: Clerk II Part-time to Clerk II Full-time Additional Compensation: $19,600 The Operations Department has requested that one Part-time Clerk II position be increased to a full-time Clerk II position. The existing Part-time Clerk II is currently responsible for completing several duties including the processing of ON1Call locate requests, maintaining spreadsheets for budgetary and statistical information (salt, sand, gravel), preparing accounts receivable requisitions, accepting payments and completing various other clerical services for the Department. Additional assistance is required from the Clerk II role due to the development of new internal tracking processes using “Citywide” software and an increase in work order requests. In 2018, the Operations Department logged 5,529 customer service requests and in 2019 the number grew to 6,472. For 2020, with the refinement of the existing Forestry work order process and the addition of new tracking systems for Fleet Services the number is expected to grow. The development of these new processes will allow the capture of data necessary to properly track and report on performance metrics. Other duties that will be assigned to the full-time Clerk II include the administration of the Seniors Snow Clearing Program and assisting the Administrative Assistant with the input of timesheets for 56 full-time staff and 36 seasonal staff. The full-time Clerk II role is integral to the well-being of the frontline administration of the Department by providing back-up support during very busy periods and at times of employee absence. Page 232 Attachment 2 to FND-002-20 Cle rk ’s De pa Position: Full Time Municipal Law Enforcement Coordinator Compensation: $117,205 The rationale for this position is set out in a Business Case prepared by the Clerk dated October 7, 2019 (attached as Attachment 2.1) This new position can be accommodated within the Department’s overall 2% target established by Council. Emergency & Fire Services Department Positions: Four Full-Time Firefighters Compensation: $318,400 (total for all four positions) The Fire Chief provided the following background information in support of his request for these same four positions in the 2019 Budget: • In 1987, the Municipality began hiring firefighters, progressively staffing Station 1 (Bowmanville) and Station 4 (Courtice) with day shift firefighters. • In 1994 an agreement between the Municipality and Ontario Power Generation required hiring additional firefighters to staff Station 1 24/7 and Station 4 12/7. In time, Station 4 would also be staffed 24/7. • With Stations 1 and 4 staffed 24/7, the total number of firefighters was 32. • In 2003, a formal Fire Master Plan was commissioned highlighting the growth curve in Clarington, increased residential development and increased calls for service that impacted the demand on volunteer firefighters. This, along with future growth and the need to enhance the department’s depth of response , illustrated the need for an increase in staffing with both full-time and volunteer firefighters. • In 2008, a Fire Master Plan update recognized municipal growth influenced by Holburn Bio-Medical Science Park, Courtice Energy Park, Darlington Nuclear Plant refurbishment/expansion, the ITER project, Highway 407 expansion and Go Train expansion through Clarington. The update provided recommendations projected out to 2021 that included hiring 4 firefighters annually along with the construction and staffing of an additional fire station in 2019. Page 233 Attachment 2 to FND-002-20 • In the fall of 2011, the Association (Local 3139) recommended that Council endorse a minimum staffing clause of 4 firefighters per fire truck. The Association referred to several documents and reports including: NFPA 1710- Standard for the Organization and Deployment of Fire Suppression Operations, Emergency Medical Operations and Special Operations to the Public by Career Fire Departments, NFPA 1720 - Standard of the Organization and Deployment of Fire Suppression Operations, Emergency Medical Operations, and Special Operations to the Public by Volunteer Fire Departments, The NIST Report and Operational Planning: An Official Guide to Matching Resource Deployment and Risk from the Office of the Fire Marshal. • Several Reports were provided to Council addressing staffing fire trucks including ESD 003-11, ESD 004-11 and ESD 006-11. • In 2011 full-time firefighters staffed Station 1 and Station 4 24/7 with a total of 49 firefighters. • In February 2014, a full Master Fire Plan was provided to Council. With regards to Firefighters, the Plan recommended staffing Station 2 (Newcastle) with full-time firefighters. In 2015, with the rebuild of Station 2 complete, 16 firefighters were assigned to staff Station 2 24/7. • As of 2015, Station 1 was staffed with 20 firefighters, Station 4 was staffed with 20 firefighters and Station 2 was staffed with 16 firefighters with the additional 4 firefighters to be hired in 2016. The 2016 hiring of an additional 4 firefighters is outstanding and has led to the 2019 budget request. • It should be noted a 2014 analysis by then Deputy Chief Berney, identified that it takes on average 5.2 firefighters to minimize firefighters’ overtime and staff fire trucks with 4 firefighters after taking into consideration the total of vacation time, lieu days, sick days used and fire college assignments. • Hiring an additional 4 firefighters in 2020 would make a total of 60 firefighters providing 24/7 protection at 3 stations in the following staffing model: o Station 1 – 1 Platoon Chief and 4 firefighters (5) per platoon o Station 2 – 1 Captain and 4 Firefighters per platoon o Station 4 – 1 Captain and 4 Firefighters per platoon • Along with a minimum staffing practice of 4 firefighters per fire truck, the Department would only have to rely on volunteer firefighters staffing one truck to secure a depth of response equal to 16 firefighters enhancing firefighter safety, operational efficiency and effective Incident Management. It is for this reason I am strongly urging the additional 4 firefighters. • The fire department is a composite department, with 25 volunteer firefighters approved for each station. Volunteer firefighter hiring and retention is becoming Page 234 Attachment 2 to FND-002-20 increasingly more concerning in a community where a majority o f the working population travels for employment limiting both their daytime availability and hours per day availability. In 2019, we will hire approximately 20 new volunteers to fill vacancies. • Council determines the level of fire protection service to be provided. As Fire Chief, it is my responsibility to interpret the ability of the Department to respond using the collective response data and report to Council the service level provided and recommend changes when warranted. • Industry standards suggest when faced with a moderate risk fire (single family, single storey residential dwelling) a minimum of 16 firefighters is required to arrive timely, provide an effective search to rescue and suppress a fire safely. Our current model that relies equally on full-time and volunteer firefighter numbers to staff fire trucks is not adequate. • The characteristics of Clarington (611 square kilometers, 4 urban areas, several hamlets and a large rural area) will require the use of volunteer firefighters within Fire Services for many years. A fire response model that relies on a depth of response ratio of 3 on-duty full-time fire trucks and 1 fire truck staffed by volunteer firefighters with a minimum of 16 firefighters responding is required. To achieve this, hiring 4 additional firefighters is required. The following additional comments are provided by the Fire Chief in support of this request in the 2020 Budget: • What is new and what I would like to bring to Council’s attention is the evolving trend we are seeing with our volunteers. As Council is aware, we are a Composite Department made up of career and volunteer staff. For years we have relied on support of the volunteers to run calls in their respective areas, as well as, to run calls in conjunction with our career staff. • We have seen a change in our volunteer component over the past several years, however, the impact has reached a point of real concern recently. Typically, we were replacing an average of 10 volunteers annually, however that number is ever increasing: 18 new recruits in our last hiring and we anticipate requiring 22 in our current hiring. This is having a significant impact on our capital and operating costs with respect to PPE and training. • We are also experiencing a decline in response at certain times of the day. Our dispatch model dispatches in two ways: calls in volunteer areas are supported with full-time crews for every call. For calls at our full-time stations, support of our volunteers is often required to assist with motor vehicle collisions along major roadways, medical calls and to stand-by supporting a quick response or in the event of another call. As our calls increase each year, so does the demand on volunteers. Page 235 Attachment 2 to FND-002-20 We are experiencing a decrease in their ability to meet this demand. Often there are not enough to respond. • The previous Master Fire Plan done in 2014 suggested increasing our volunteer numbers at our stations. Times have changed and I believe this recommendation is no longer practical and will not address current issues: calls have increased and declining volunteer response rates have become an area of concern especially during the weekday. • It is also important that I highlight the concern with regards to the opening of the 407. Its full impact is unknown at this point, but it does need to be factored into decisions as this may increase call volumes. As stated in the body of the Grant Thornton Organizational Structure Review Report dated December 4, 2019, the consultants have recommended (#22) “that an external review of the fire suppression service delivery model (i.e. the number and composition of staffing, number of firefighters per truck on calls) be completed”. Page 236 Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: October 15, 2019 Report Number: FND-027-19 Submitted By: Trevor Pinn, Director of Finance/Treasurer Reviewed By: Andrew C. Allison, CAO Resolution #: File Number: By-law Number: Report Subject: Audit Committee and Value for Taxpayer Committee Recommendations: 1. That Report FND-027-19 be received; 2. That the Audit Committee composition, structure and terms of reference be updated to reflect best practices in the industry in place of establishing a separate “Value for Taxpayers Committee”; and 3. That staff be directed to report back to Committee with recommendations on a new Audit Committee structure by November 25, 2019. Page 237 Municipality of Clarington Page 2 Report FND-027-19 1. Background Council Request for “Value for Taxpayers Committee” Current Audit Committee Report Overview At the June 10, 2019 Council meeting there was a resolution “That Staff report back in October 2019 on establishing a Value for Taxpayers Committee which includes Council Representation.” It is recommended that Council consider a revision to the existing Audit Committee in place of creating a new committee and that staff report back on changes to the Audit Committee by November 2019. Page 238 Municipality of Clarington Page 3 Report FND-027-19 2. Review of the Audit Committee Research on Audit Committees Page 239 Municipality of Clarington Page 4 Report FND-027-19 3. Concurrence This report has been reviewed by the Municipal Clerk and the Manager of Internal Audit who concur with the recommendations. 4. Conclusion Staff Contact: Catherine Carr, Manager of Internal Audit, 905-623-3379 ext. 2606, ccarr@clarington.net Attachments: Not Applicable Interested Parties: There are no interested parties to be notified of Council's decision. Page 240 Presentations and Handouts 2020 Draft Budget, February 24,2020 Presentation by Trevor Pinn, Director of Finance / Treasurer Welcome Topics for Discussion •Overview / Introduction •Operating Budgets •Capital Budgets •Reserve and Reserve Funds Overview –The Book •A new format for the Budget Book •Moving towards best practices •Publicly available •A policy document Overview –The Levy •Target set by Council –2.0% •Proposed budget –1.83% •Average residential assessment -$390,700 •Average municipal impact - $26.79 Overview –Council Strategic Plan 2019 to 2022 Strategic Priorities Engaged Communities Strong Economy Sustainable Infrastructure Growth Legacy Projects Environmental Sustainability Strategic Plan –Engaged Communities Engaged Communities New Budget Book Design Standard Clarington Branding Website Renewal for easier accessibility Strategic Plan –Strong Economy Strong EconomyExpanding Servicing Secondary Plans Strategic Plan –Sustainable Infrastructure Growth Sustainable Infrastructure Growth Increased contributions to reserve funds Affordable Housing Policy to be included in 2020 Development Charges Repurposing debt servicing costs to capital investment Strategic Plan –Legacy Projects Legacy Projects Waterfront Development Utilizing reserve funds for establishing Port Granby Nature Reserve South Bowmanville Recreation Centre Design Strategic Plan –Environmental Sustainability Environmental Sustainability Digitizing building department records Investment in software to reduce paper processes Capital projects to improve energy efficiency Electric vehicle and infrastructure investment Operating Budget –Staffing •Planning •Full-Time Planner II -$24,900 •Contract Planner I to Full-Time - $20,900 •Community Services •Full-time Aquatic Programmer - $80,800 •Part-time Customer Service Programmer -$51,400 •Operations •Temporary Worker Extension (five staff for two months) - $42,950 •Part-time Clerk II to full-time - $19,600 •Clerk’s •Full-time Municipal Law Enforcement Coordinator -$0 tax levy impact Capital Budget –Summary By Financing Tax Levy 29% External Financing 3% Reserves 2% Reserve Funds 26% Development Charges 26% DC Debt 13% Debt 1% 2020 Capital Budget Capital Budget –Summary By Department Corporate Services 3% Clerk's 0% Emergency Services 1% Engineering Services 53% Operations 22%Community Services 18% Planning 2% Library 1% Total Cost Reserve Funds -Contributions Reserve Fund Tax Levy Change from 2019 Facilities / Park Maintenance Reserve Fund $ 27,000 Community Services Capital Reserve Fund 25,000 Fire Equipment Reserve Fund 25,000 Operations Equipment Reserve Fund 25,500 Community Services Building Refurbishment Reserve Fund 22,500 Reserves Contributions •There were no changes in the tax levy amounts contributed to the reserves •Pits and Quarries Reserve was increased to reflect the increase in revenue expected in 2020, there is no tax levy impact Reserve Fund -Withdrawal Reserve Fund Withdrawal Parking Lot $ 286,657 General Municipal Capital 250,000 Engineering and Inspection 878,200 Debt Retirement 14,841 Port Granby LLRW 123,695 Perpetual Care 18,500 Rate Stabilization 600,000 Engineering Review 40,000 Reserve Fund –DC Operating Withdrawals DC Reserve Fund Withdrawal General Government $333,000 Library Board 70,507 EMS 86,000 Indoor Recreation 1,616,352 Engineering Parks 13,500 Roads and Related 619,417 Reserves -Withdrawals Reserve Withdrawal Clarington Heritage Committee $ 1,000 Election Expenses 50,000 Challenges Facing Clarington Moving Forward •Organizational review implementation •Uncertainty of changes affecting Development Charge legislation •Potential for increased use of debt moving forward •We DO NOT have a debt capacity issue currently •Capital grant funding at risk Municipality of Clarington 40 Temperance Street Bowmanville, ON L1C 3A6 905-623-3379 Toll Free: 1-800-563-1195 TTY: 1-844-790-1599 info@clarington.net www.clarington.net Thank You Recommendations: Background: Response to CAO Report regarding GT Recommendation #8: Outsource Animal Services: Example of an outsourced service Conclusion: Liz White, Director, Animal Alliance of Canada Animal Alliance of Canada A Brief to the Municipality of Clarington: A Review of the Clarington Animal Service Programme January 27, 2003 Prepared by Liz White, Director Animal Alliance of Canada 221 Broadview Ave., #101 Toronto, ON M4M 2G3 Tel: 416.462.9541 Fax: 416.462.9647 liz@animalalliance.ca Shelly Hawley-Yan, Director Animal Alliance of Canada 221 Broadview Ave., #101 Toronto, ON M4M 2G3 Tel: 519.940.4712 Fax: 519.940.4712 shelly@animalalliance.ca TO: Mayor and Members of Clarington Municipal Council FROM: Liz White, Director, Animal Alliance of Canada and Environment Voters. Shelly Hawley-Yan, Director, Project Jessie Andrea Harrison, Volunteer, Project Jessie Barry MacKay, Senior Programme Co-ordinator, Animal Protection Institue SUBJECT: Clarington Animal Services Programme DATE: January 27, 2003. Dear Mayor and Members of Council, Thank you for the opportunity to appear before Council. I am here tonight to thank you for the time and effort that you and your staff have invested in building an efficient and humane animal service programme. On January 14, 1991, twelve years ago, Animal Alliance asked Council to address a very controversial issue – a ban on the sale of lost and homeless pets from the Clarington shelter to research. At the same time, Animal Alliance made a commitment to Council to assist in building a progressive animal service programme regardless of the outcome of the vote. In the intervening 12 years, Animal Alliance and the Municipality of Clarington have maintained a productive and innovative relationship and as a result, Clarington has developed one of the best animal service programmes in the country. Progressive licensing has increased in the claim rate for dogs, resulting in a drop in euthanasia rates. An aggressive adoption programme has resulted in adoption numbers, particularly for cats, which is substantially higher than most other municipalities with significantly greater reso urces and even higher than most humane societies across the country. Animal Alliance cites Clarington, as a shining example of what can be accomplished with a willing Council, City staff and shelter workers. In our brief to Winnipeg City Council, we reference Clarington in the following statement: In the majority of municipalities across Canada, companion animal bylaws are based on the premise that dogs and cats are nuisances to be controlled and are, therefore, disposable. Animal services is founded on a model of “waste disposal.” While some companion animals can, indeed , cause problems, and reasonable controls are needed, the fact is that most dogs and cats are important, vital members of people’s homes and families. For many people, home and family are empty — incomplete — without a companion animal. Recognizing this, most progressive municipalities — Calgary, Vancouver, Toronto, Clarington, Boston, New York, and Washington, to name just a few — have implemented animal services policies that stress making their communities “animal friendly,” and encourage responsible companion animal guardianship through education and positive regulations. This enlightened attitude not only helps people who share their lives with companion animals and helps keep dogs and cats safe, but also significantly reduces conflicts with, and the anxieties of, non-companion animal owners With a clear vision and a strong commitment, you have made a huge difference for all residents of Clarington - most specifically, for the 50% of residents who share their homes with companion animals. In AAC’s 12 years of experience working with municipal animal service staff, effective animal services programs are only possible with the whole-hearted, enthusiastic support and confidence of companion animal owners, animal services staff and management, and the general public. When municipal governments build public support, licensing programmes become successful, claim rates increase dramatically, adoption rates improve and euthanasia rates decline. It occurred to us, that Council and staff may not realize the significance of what Clarington has achieved, so we have incorporated a brief comparison between the City of Calgary’s programme and that of Clarington. Clarington rivals Calgary, the City most often cited for its progressive animal service programme. Prior to changes in the Calgary Animal service programme, between 50-60% of impounded dogs were returned to their families or adopted and 30-40% were euthanized. By 1999, almost 97% of the dogs were being returned to their families or adopted, and the euthanasia rate had dropped to around 2%. Since the mid-1990s Calgary has funded the entire programme from license revenue. By any measure, Clarington equals Calgary’s dog programme. The percentage of dogs claimed increased from 33% in 1991 to an amazing 62% in 2002. As claim rates went up adoptions decreased proportionately and the number of dogs euthanized decreased from 5% to 0.8%. …/3 3. However, Clarington truly excels in it’s cat programme. Calgary has an exceptional claim rate for cats – the best in the country - but Clarington has exceptionally high adoption and low euthanasia rate. Clarington’s record on cats is virtually unchallenged by any other municipality in Canada. Here are the statistics. In 1991, 48% of the cats were claimed in Calgary, only 8% adopted and close to 44% killed. In 1999, the most recent available statistics, 53% of cats were claimed, 11% adopted and 36% killed. Even though Clarington’s claim rate for cats is only 5%, the adoption rates have soared from 30% to 70% between 1991 and 2002. Accordingly, the number of cats euthanized plunged from 63% in 1991 to approximately 10% in the years 2000 to 2002. We believe that the Clarington Animal Services programme has been so successful because Council and staff recognized the importance of adopting animal service policies that use “best practices,” and serve the best interests of the animals and companion animal owners. The statistics show tremendous public support for the programme. Staff pride in the programme combined with their commitment has resulted in a remarkable achievement. In conclusion, and on behalf of the Board of Animal Alliance, our Project Jessie volunteers who save so many animals, the 50% of Clarington residents who share their homes with companion animals, all the cats and dogs who have not died needlessly - and who were instead, given a second chance in a new home., I want to thank the following people: The members of Clarington Municipal Council 10 years ago who made the initial decision to build an effective, cost-efficient and humane animal services programme. The members of Clarington Council who over the intervening 10 years have continued to support and build Clarington Animal Services programme. The Clerk’s Department who implemented Council’s direction and brought forward progressive ideas to Council such as the Animal Control Advisory Committee. The staff who enforce the by-laws and manage the licensing programme that has been instrumental in increasing the number of dogs claimed every year. And last and in a sense most important, the front line workers who run the shelter, developed and sustained all the important support programmes that have made such a remarkable difference for Clarington residents and their animal companions. Sincerely, Liz White, Director The Climate Change Challenge and The 2020 Budget “Dilution is the Solution” Sudbury Superstack Port Granby EFWContaminated sites St. Marys But Greenhouse Gases Accumulate in the Atmosphere CO2 is approximately 416 ppm The Most Famous Graph this Century Human Civilization has depended on a Stable Climate Five Warmest Years since modern records have been since 2014 Climate Change “Action” Plan 1. Zero Emission Vehicles in Municipal Fleet 2. Create an EV fleet for building inspectors starting in 2021 •Building inspectors are the only division of municipal employees that are on the road daily without fleet vehicles •Building division is not dependent on tax levy funding 3. Commit to Net Zero Carbon Emissions for in the design of the Bowmanville South Recreation Complex 4. Increase Tree Planting Budget