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09 - June 24, 2014 County Council Agenda Pkg. ORDERS OF THE DAY FOR TUESDAY, June 24, 2014 9:00 A.M. ORDER 1st Meeting Called to Order 2nd Adoption of Minutes June 10, 2014 3rd Disclosure of Pecuniary Interest and the General Nature Thereof 4th Presenting Petitions, Presentations and Delegations DELEGATION: 9:00 a.m. Gary Scandlan, Director, Watson & Associates Economists Ltd. with (attached) 5th MC 6th Reports of Council, Outside Boards and Staff 7th Council Correspondence 1) Items for Consideration (none) 2) Items for Information (Consent Agenda) OTHER BUSINESS 8th 1) Statements/Inquiries by Members 2) Notice of Motion 3) Matters of Urgency 9th Closed Meeting Item 10th Recess 11th Motion to Rise and Report 12th Motion to Adopt Recommendations from the Committee Of The Whole 13th Consideration of By-Law 14th ADJOURNMENT LUNCH WILL NOT BE PROVIDED Deputy Warden for June Councillor Couckuyt NOTICE: Deputy Warden for July Councillor McWilliam July 8, 2014 No Meeting Required July 22, 2014 County Council Meeting 9:00 a.m. August 17 - 20, 2014 AMO Annual Conference, London, Ontario November 7, 2014 1 DRAFT COUNTY COUNCIL MINUTES Tuesday, June 10, 2014 The Elgin County Council met this day at the Administration Building at 9:00 a.m. with all members present. Councillor Mennill (delayed) Warden Marr in the Chair. ADOPTION OF MINUTES Moved by Councillor Jenkins Seconded by Councillor Couckuyt THAT the minutes of the meetings held on May 27, 2014 be adopted. - Carried. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF None. DELEGATIONS Greg Poste, Managing Architect, MMMC Architects with PowerPoint Presentation titled Mr. Poste presented the proposed floor plans for the Terrace Lodge renovations. The renovations include more than fourteen separate projects within the Home including: a new dining room addition to lower north, a new elevator and the enclosure of all decks and balconies. Moved by Councillor Walters Seconded by Councillor Jones THAT the presentation be received and filed. - Carried. Moved by Councillor McWilliam Seconded by Councillor Ens THAT we do now move into Committee Of The Whole Council. - Carried. REPORTS Terrace Lodge - Renovation Director of Engineering Services The director presented Council with a report updating them on the progress of the Terrace Lodge renovation process. The schematic design and construction documents phase of the project is scheduled to be completed by the end of 2014 and the renovation to Terrace Lodge completed in 2015. Moved by Councillor Couckuyt Seconded by Councillor Ens Director of Engineering Services and the Director of Homes and Seniors Services be received and filed; and, THAT the Terrace Lodge Renovation Building Committee be activated for the Terrace Lodge Renovation; and also, THAT County Council approve the schematic drawings. - Carried. 2 County Council 2 June 10, 2014 Term Limits of Council Chief Administrative Officer (deferred from April 22, 2014) The Chief Administrative Officer presented information on three-year council terms for Council directed the resolution to be circulated to all municipal partners and suggested that AMO be asked to conduct a new survey of municipalities regarding council term limits. Moved by Councillor Walters Seconded by Councillor McWilliam WHEREAS Ontario implemented a four year term of Municipal Council in 2006; and, WHEREAS two four year terms have been experienced since this change was initiated; and, WHEREAS having experienced this new term limit it is advisable to reduce the term back to three years for the following reasons: 1) A four year term diminishes the attractiveness of running for office recruiting candidates for smaller, more rural municipalities is more difficult under the longer term (note number of acclamations to office) most municipal politicians have full-time jobs which compete with time available for community participation. 2) A longer time between elections gives electors less opportunity to express their opinion on the performance of their elected officials (resulting in the recent debate over recall provisions). 3) Federal and provincial elections can be held earlier if loss of confidence by the house is experienced local elections cannot be held earlier therefore must wait for full four year term to expire. 4) Potential cost savings to extended term are negligible and may be offset by more by- elections as incumbents leave early to return to work. NOW THEREFORE BE IT RESOLVED THAT the Elgin County Council encourage the Minister of Municipal Affairs and Housing and the Association of Municipalities of Ontario, through the memorandum of understanding discussion mechanism, to review the current term of municipal councils with a view to reducing it to three years at the next practicable opportunity. - Carried. Councillor Mennill arrived at 9:30 a.m. Land Division Committee Responses from Elgin Municipalities (deferred from May Chief Administrative Officer 27, 2014) The Chief Administrative Officer presented the report on the responses from Elgin Municipalities in regards to the make-up and operation of the Elgin County Land Division Committee. Moved by Councillor Mennill Seconded by Councillor Jenkins THAT, effective on January 1, 2015 Land Division Committee consist of seven members. - Carried. Moved by Councillor Jones Seconded by Councillor McWilliam THAT the new Land Division Committee consist of one appointee, either elected or non- elected, from each of Elg and, THAT the report and background information dated April 15, 2014 titled Land Division Committee - Responses from Elgin Municipalities be received and filed. - Carried. 3 County Council 3 June 10, 2014 Highway #3 Transportation Needs Assessment Study Director of Engineering Services The director presented the report updating County Council on the recent discussions with the Ministry of Transportation regarding the Talbot Line Corridor between Talbotville and Aylmer. Moved by Councillor Mennill Seconded by Councillor Couckuyt May 21, 2014 from the Director of Engineering Services and the Manager of Planning be received and filed. - Carried. Quarterly Information Report Contract Awards; January 1, 2014 to March 31, 2014 Purchasing Coordinator The coordinator presented the report on contracts awarded over $15,000 and less than $100,000 between January and March, 2014. Moved by Councillor McWilliam Seconded by Councillor Walters Information Report - Contract Awards; January 1, 2014 to by the Purchasing Coordinator dated May 23, 2014 be received and filed. - Carried. Central Elgin Municipal Non-Profit Housing Corporation - Tax Reduction Director of Financial Services The director presented the report outlining the Municipality of Central Elginrequest that the County of Elgin apply the residential ratio of one (1) to a property that would otherwise carry the multi-residential ratio of 2.3458. Moved by Councillor Jones Seconded by Councillor Jenkins THAT Council approve a tax ratio of one (1) for the Bel Park project (203 Union Street in Belmont, Municipality of Central Elgin); and, THAT this tax ratio shall apply to taxation as of the effective date of the first supplementary or omitted assessment notice on the property; and, THAT a by-law be prepared; and, THAT the Municipality of Central Elgin be requested to keep the County of Elgin apprised as to the status of the assessment on this property. - Carried. Federal Gas Tax Director of Financial Services The director presented the report explaining a recent announcement from AMO to provide an additional $40,355 in Gas Tax Funding to Elgin County, reducing the year-over-year loss down to $35,199. Moved by Councillor Mennill Seconded by Councillor Couckuyt by the Director of Financial Services dated May 30, 2014 be received and filed. - Carried. 4 County Council 4 June 10, 2014 Edison Drive Bridge - Old Mill Line Extension Director of Engineering Services (Addendum) The director presented the report requesting support for the resolution passed by the The Municipality has also requested that the County act as their constructor to build their new road which is owned by Bayham. Moved by Councillor Wiehle Seconded by Councillor Couckuyt THAT the County of Elgin supports the resolution from the Municipality of Bayham to extend Old Mill Line as a solution to address access restrictions caused by the deterioration of the Edison Drive Bridge; and, THAT $540,000 allocated in the 2014 Capital Budget for Plank Road Resurfacing (6220-14- 04) be re-allocated for the Old Mill Line Extension Project; and, THAT staff be directed and authorized to construct the Old Mill Line extension on behalf of, and as requested by, the Municipality of Bayham. - Carried. CORRESPONDENCE Items for Consideration 1. comment to Ontario Energy board re: Natural Resource Gas Ltd. (NRG) to not grant permission to recover penalty costs from customers associated with NR obligations of its contract to Union Gas Ltd. from: a) Nancie J. Irving, Clerk, Town of Aylmer b) M. Casavecchia-Somers, Chief Administrative Officer/Clerk, Township of Malahide (circulated at meeting) . 2. John Bolognone, City Clerk, City of Kingston with a resolution regarding the prohibition of all Corporate and Union donations in Toronto Municipal Elections. The following recommendation was adopted in regard to Correspondence Item #1: Moved by Councillor Ens Seconded by Councillor Mennill THAT the Corporation of the County of Elgin supports the resolutions from the Municipality of Bayham, the Town of Aylmer and the Township of Malahide re: Natural Resource Gas Ltd. failure to fulfill obligations of its contract to Union Gas Ltd. - Carried. The following recommendation was adopted in regard to Correspondence Item #2: Moved by Councillor Walters Seconded by Councillor Wiehle THAT Correspondence Item #2 be received and filed. - Carried. Items for Information (Consent Agenda) 1. Port Stanley Library with an invitation to their Grand Re-opening on Tuesday, June 24, 2014 at 2:00 p.m. 5 County Council 5 June 10, 2014 2. Linda Long, Executive Director, Quad County Support Services thanking Council for grant. 3. Michael Giroux, President, Canadian Wood Council with information resources about a new wood mid-rise building construction option. Moved by Councillor Jones Seconded by Councillor Jenkins THAT Correspondence Items #1 3 be received and filed. - Carried. OTHER BUSINESS Statements/Inquiries by Members Council directed staff to research options available for staggering appointments to the Land Division Committee to ensure consistency and some continuity at the end of each term. Notice of Motion None. Matters of Urgency None. Closed Meeting Item None. Motion to Adopt Recommendations of the Committee of the Whole Moved by Councillor Jenkins Seconded by Councillor Walters THAT we do now adopt recommendations of the Committee Of The Whole. - Carried. BY- LAWS Moved by Councillor Jones Seconded by Councillor Mennill THAT By-Law No. 14-14 A By-Law to Amend By-Law No. 10-08 Being a By-Law to Authorize the County of Elgin to Enter into an Agreement with the Association of Municipalities of Ontario Respecting the Transfer of Federal Gas Tax Rbe read a first, second and third time and finally passed. - Carried. Moved by Councillor Jones Seconded by Councillor Ens THAT By-Law No. 14-15 -Law to Provide a Schedule of Services and Activities Subject to Fees and Charges by the County of Elgin and to Repeal By-Law No. 13-10 read a first, second and third time and finally passed. - Carried. Moved by Councillor Jenkins Seconded by Councillor Walters THAT By-Law No. 14-Being a By-Law to Adopt Optional Tools for the Purposes of Administering Limits for the Commercial, Industrial and Multi-Residential Property Classes read a first, second and third time and finally passed. - Carried. 6 County Council 6 June 10, 2014 Moved by Councillor Mennill Seconded by Councillor Couckuyt THAT By-Law No. 14-17 "Being a By-Law to Establish Revenue Neutral Clawback Percentages for Certain Property C be read a first, second and third time and finally passed. - Carried. Moved by Councillor Couckuyt Seconded by Councillor Jenkins THAT By-Law No. 14--Law to Authorize Tax Exemption in Respect of a and third time and finally passed. - Carried. Moved by Councillor Jones Seconded by Councillor McWilliam THAT By-Law No. 14-19 -Law to Confirm Proceedings of the Municipal Council of the Corporation of the County of Elgin at the June 10, 2014 and third time and finally passed. - Carried. ADJOURNMENT Moved by Councillor Walters Seconded by Councillor McWilliam THAT we do now adjourn at 10:26 a.m. and meet again on June 10, 2014 at the County Administration Building Council Chambers at 9:00 a.m. - Carried. Mark McDonald, David Marr, Chief Administrative Officer. Warden. 7 REPORTS OF COUNCIL AND STAFF June 24, 2014 Staff Reports (ATTACHED) Director of Homes and Seniors Services Lab Services - Contract Renewal Director of Homes and Seniors Services YWCA Agreement Renewal Director of Financial Services May Budget Performance Director of Financial Services 2013 Annual Report Director of Community and Cultural Services Funding Agreement for Fourth Floor Museum Renovations Director of Engineering Services Terrace Lodge - Hot Water Tanks Replacement 25 REPORT TO COUNTY COUNCIL FROM: Rhonda L. Duffy, Director of Homes and Seniors Services DATE: June 13, 2014 SUBJECT: Homes Lab Services Contract Renewal INTRODUCTION: The contract for lab services is due for renewal. Lab services are an essential service in the management of all aspects of resident care. DISCUSSION: The current lab service provider has indicated a desire to sign a 5 year renewal with a price increase. Staff has been successful in negotiating a new one year contract with no price escalation. For the upcoming year, staff will be sourcing the market and determining if the Ministry of Health and LongTerm Care will fund any potential increase. A report to council will follow later when more information is known. CONCLUSION: The Lab Services agreement is due for renewal. Staff suggests renewing for one year at current pricing and pursue competitive pricing options under the procurement policy. RECOMMENDATION: THAT the staff be authorized to sign a one year agreement with Life Labs with no increase; and, THAT staff be directed to review the feasibility of applying the procurement policy in relation to future lab service contracts and report back to Council. All of which is Respectfully Submitted Approved for Submission Rhonda L. Duffy Mark G. McDonald Director of Homes and Seniors Services Chief Administrative Officer 26 REPORT TO COUNTY COUNCIL FROM: Rhonda L. Duffy Director of Homes and Seniors Services DATE: May 20, 2014 SUBJECT: YWCA Agreement Renewal INTRODUCTION: In a previous report to council the following recommendation was approved: THAT Council direct staff to sign the 2013/2014 agreement with the YWCA at $2,060 DISCUSSION: In order to ensure a approved an annual fee of $2,060.00, which included a 3% increase, to be charged to the YWCA. This amount is based upon cost recovery only and does not generate additional revenues for the County. In keeping with , staff is recommending a minimum of 3% increase to the 2014/2015 contract. CONCLUSION: The YWCA continues to utilise the Terrace Lodge Pool as a community-based service for therapeutic programs. These programs are of great benefit to the local and surrounding communities and are accessed by individuals of all ages and with various therapeutic needs. RECOMMENDATION: THAT Council direct staff to negotiate a 3% increase for the 2014/2015 agreement with the YWCA; and, THAT Council direct staff to sign the 2014/2015 agreement with the YWCA. All of which is Respectfully Submitted Approved for Submission Rhonda L. Duffy Mark McDonald Director of Homes & Seniors Services Chief Administrative Officer 27 REPORT TO COUNTY COUNCIL FROM: Jim Bundschuh Director of Financial Services DATE: June 13, 2014 SUBJECT: May Budget Performance INTRODUCTION: Attached is the budget comparison for May 2014 for the County with favourable performance for the month of $48 thousand bringing the year-to-date to $179 thousand favourable. DISCUSSION: Highlights of the May budget performance as shown on Attachment I are as follows: Line 18 Homes: $19 thousand favourable performance due to wages & benefits. RECOMMENDATION: May Budget PerformanceJune 13, 2014 be received and filed. All of which is Respectfully Submitted Approved for Submission Jim Bundschuh Mark G. McDonald Director of Financial Services Chief Administrative Officer 28 REPORT TO COUNTY COUNCIL FROM: Jim Bundschuh Director of Financial Services DATE: June 16, 2014 SUBJECT: 2013 Annual Report INTRODUCTION: The attached draft 2013 Annual Report is a document that allows Council to communicate the state of the Corporation to the residents of Elgin County. It speaks to the achievements, the financial results and performance measures for 2013. DISCUSSION: The Financial Information Return (FIR) and the Municipal Performance Measures Program (MPMP) are provincially mandated reporting documents in a standardized format required to be reported to the province and published for the public. The intent of the Annual Report is to make the information from the FIR and the MPMP easy to understand through the use of charts and explanations. The Annual Report, together public. RECOMMENDATION: June 16, 2014 be received and filed; and, THAT the 2013 Annual Report, Financial Information Return (FIR), and MPMP be approved for publication. All of which is Respectfully Submitted Approved for Submission Jim Bundschuh Mark G. McDonald Director of Financial Services Chief Administrative Officer 30 2013 ANNUAL REPORT for the year ended December 31, 2013 31 This page intentionally left blank. 2ANNUAL REPORT 32 Table of Contents Message from the Warden (2013) 4 2013 Awards and Achievements . 6 2013 Budget 9 2013 Financial Results 11 Revenues and Costs 11 Municipal Position 14 Municipal Performance Measures Program 16 Cover and above: the redevelopment of the Elgin County Courthouse which opened in 2014 - the largest building project in the history of Elgin County . COUNTY OF ELGIN 3 33 On behalf of Elgin County Council and staff, we are pleased to provide you with our Annual Report for the year ending December 31, 2013. The County is comprised of seven partner municipalities and spans an area of 186,000 hectares. Idyllic rural landscapes, lush Carolinian forest trails and over 120 km of scenic Lake Erie shorelines draw thousands of tourists to the area each summer. The County government is committed to accessibility for its 50,000 residents and provides a broad range of services that include: maintenance of County roads and bridges, three long-term care homes, ten library branches, an extensive archival collection, economic development services, tourism promotion and a museum that preserves Elgin's rich cultural heritage. Additionally, in 2013, Elgin County constructed a new 3,300 square foot ambulance base in Dutton/Dunwich to better serve residents of western Elgin County. Elgin County is a dynamic and growing community with a diverse base of agricultural, manufacturing, tourism and creative industries. Supporting business is important to Elgin County and resources and organizations are in place to create an environment where entrepreneurs and creative businesses can thrive. In 2013 Elgin County extended its funding of the Elgin Business Resource Centre satellite office in the Town of Aylmer for an additional three years and opened a similar office in Dutton/Dunwich to serve western Elgin County residents. Elgin County Library Services is committed to lifelong learning, creative expression and community engagement and in 2013 County Council adopted a new mission statement and vision to reflect these goals and values. In support of these goals, the County entered into comprehensive renovations of the Port Stanley Library in partnership with the Port Stanley Festival Theatre. Renovations are expected to be completed in 2014. Elgin County's economy is largely driven by agriculture. Rich soils combined with a long growing season make Elgin County the ideal location for producing a variety of crops and agricultural products. Council remains dedicated to helping agricultural entrepreneurs thrive. County Council in partnership with the 2010 International Plowing Match (IPM) Executive Committee awarded the 2nd annual IPM Legacy Agricultural Scholarship in the amount of $2,500 each to two students currently pursuing an agriculture-related education at a post secondary institution. Elgin County supported local farmers and producers in 2013 by participating in the Local Food Challenge, an initiative that saw Elgin County Homes increase their local purchases from 9% in 2012 to 15% in 2013. 4ANNUAL REPORT 34 Economic Developers Council of Ontario award in recognition of the combined 2012 Savour Elgin/Elgin Arts Trail Guide (from left to right: Warden McWilliam, Kathryn Russell, Alan Smith, Kate Burns, EDCO President Robert Brindley) Elgin County was pleased to be the recipient of an Economic Developers Council of Ontario award in recognition of the combined 2012 Savour Elgin/Elgin Arts Trail Guide and three Bronze Awards from the International Economic Development Council for the ElginLicious Marketing Campaign, the Elgin County Heritage Guide Brochure and the Elgin Business Resource Centre Satellite Office Partnership Project. Council and Staff take great pride in being part of such an innovative and progressive community. We look forward working with partner organizations, government organizations, community groups and the private sector, to deliver high quality, sustainable programs and services to meet the needs of Elgin citizens and make Elgin a great place to live, work and raise a family. Cameron McWilliam 2013 Elgin County Warden COUNTY OF ELGIN 5 35 Council and staff are committed to continually reach for new levels of achievement and Progressive by Nature innovation. This mind-set of being has been recognized by outside independent bodies through numerous awards that the County is extremely proud of: Elgin County Economic Development received an Economic Developers Council of Ontario award in recognition of the combined 2012 Savour Elgin/Elgin Arts Trail Guide. Elgin County Economic Development received three Bronze Awards from the International Economic Development Council for the ElginLicious Marketing Campaign, the Elgin County Heritage Guide Brochure and the Elgin Business Resource Centre Satellite Office Partnership Project. The County has achieved much in 2013 including new partnerships, new facilities, new programs and helping create new jobs. The details of the achievements are as follows: County Council in partnership with the 2010 International Plowing Match (IPM) Executive Committee awarded the 2nd annual IPM Legacy Agricultural Scholarship in the amount of $2,500 each to Ms. Jessica Dryfhout of Southwold and Mr. Kyle Krebs of West Elgin. County Council adopted a new mission statement and vision for library services to ensure that the Elgin County Library meets the current and future needs of residents. The mission is as follows: "Elgin County Library provides a welcoming, inclusive and supportive environment that fosters lifelong learning, creative expression, community engagement and cultural vitality in harmony with a rural way of life." Comprehensive renovations to the Port Stanley Library were begun in 2013 in partnership with the Port Stanley Festival Theatre. These renovations when completed in 2014 will result in accessibility improvements, enhanced seating areas, new furnishings and technology upgrades. Elgin County Archives contributed numerous photographs and architectural information for the redevelopment of the Elgin County Courthouse which will open in 2014. This will be the largest building project in the history of Elgin County and St. Thomas and several of the County's historical resources will be on permanent display in the building. 6ANNUAL REPORT 36 Elgin County Economic Development and Elgin County Homes successfully completed the 2013 Local Food Challenge. With a $15,000 grant from the Greenbelt Fund, Elgin was able meet its goal of increasing local food purchases in its Homes from 9% in 2012 to 15% in 2013, spending a total of $116,050.30 on local (Ontario) food. In 2012 the County of Elgin extended its partnership with the Elgin Business Resource Centre (EBRC) to run a satellite office of the EBRC in eastern Elgin County for an additional three years. In 2013, the eastern satellite office has fielded 496 inquiries, helped to start 16 new businesses and has assisted in the creation of 40 new jobs in Elgin County. In April 2013 the County of Elgin entered into a partnership with the Elgin Business Resource Centre to open a satellite office in western Elgin County. Since its opening in April 2013, this western office has had 354 inquiries, has helped to start 8 businesses and has created 14 jobs. Opening of Elgin Business Resource Centre satellite office in western Elgin County (left to right: Mark Masseo, John Regan, Karen Vecchio, Jim McIntyre, Jeff Yurek, Alan Smith, Mary Bodnar, Warden McWilliam, Mark McDonald) COUNTY OF ELGIN 7 37 The Elgin County Official Plan was approved resulting in a new streamlined process for approvals of official plans, official plan amendments and plans of subdivision/condominium. In 2013, Elgin County constructed a new 3,300 square foot ambulance base in Dutton-Dunwich. In 2013 the County of Elgin updated its multi-year accessibility plan. The late John Clayton Wise was nominated and inducted into the Canadian Agricultural Hall of Fame for 2013. John Wise (1935-2013) Partnership formed with the Municipality of Central Elgin to share Information Technology resources. Partnership formed with the County of Middlesex to share the resources of the Accessibility Coordinator. 8ANNUAL REPORT 38 A key component of Council's strategic vision is to promote and enhance economic opportunities to the greatest extent possible. The 2013 budget balanced the need for fiscal restraint with the creation of economic initiatives designed to improve the local economy. Staff absorbed inflationary costs and found other efficiencies to help lessen the financial impacts. In addition, Council continued to draw-down on reserves to maintain an acceptable tax levy. The significant contribution to the St. Thomas-Elgin General Hospital redevelopment project, the addition of a second satellite office for job creation, an enhanced ambulance presence in Bayham, a new ambulance station in Dutton/Dunwich and an increased investment in the County's road infrastructure along with improvements to Terrace Lodge formed the basis of the budget. In order to carry-out these projects, in the face of reduced assessment revenue, capped funding increases from the Province for long- term care homes and ambulance and a continuing decline in OMPF funds, amoderate increase in taxes was required of $1,276,000. An average household with no change in assessment saw a 2.4% tax increase ($30) or a house with average assessment growth saw a 4.8% increase ($60). Additionally, a special hospital levy of $12.50 on an average household allowed for a $3.5 million donation to the St. Thomas Elgin General Hospital over a ten year period. in the region and improving services to its residents through the following key features of the budget: A $3.5 million commitment over ten years to St. Thomas Elgin General Hospital with further money flowing to the hospital immediately for a cumulative contribution to date of $1.25 million. Not only does our local hospital provide a key service to our residents and serve as an economic engine in its own right, but a strong local hospital is a key decision factor for businesses when determining where to locate. Based on the successful trial in Aylmer, $0.2 million was invested annually in Elgin Business Resource Centre Satellite offices in both the east and west end of the entrepreneurial sector in getting itsbusinesses off to a successful start. Ambulance service was increased in the east end of the County with a day-shift ambulance being stationed at the Straffordville fire hall to reduce response times at a cost of $0.2 million. A new ambulance base was built in Dutton at a cost of $0.8 million. COUNTY OF ELGIN 9 39 An architectural study is underway for a $5 million renovation at the Terrace Lodge long- A further $6 million is planned for capital costs at the Elgin Manor and Bobier Villa long-term care facilities within the next ten years. The County roads received $8 million in spending for the year, with a further $80 million over the next nine years. This investment will improve the driving quality for our residents while preserving the underlying asset, thereby avoiding costly reconstruction in the future. Major road projects for 2013 included: Southminster Bourne Rehabilitation ($1.5 million) o John Wise Line Rehabilitation ($0.8 million) o Largie Bridge Replacement ($0.8 million) o Reconstruction of St. George Street ($0.5 million) o Currie Road Resurfacing ($0.4 million) o Road Sign Replacements throughout Central Elgin and Malahide ($0.4 o million) 22 kilometres of micro-surfacing and gravel shouldering ($0.7 million) o of property taxes and funding from the province. In past years the County has faced reduced revenue from the province through cuts in Ontario Municipal Partnership Fund transfers to Elgin County. At the same time, the closure of the Ford Plant placed pressure on property tax revenue. Rather than increase the tax rate dramatically at the time, County Council approved a ten-year plan that temporarily used reserves to fund the budgeted shortfall, but then rebuilt the reserves by the end of the ten-year period. This was accomplished through efficiencies of $4 million over ten years and gradual tax increases of 4% per annum. In 2013, the County once again faced losses; $0.4 million of provincial funding for long- term care and ambulance and $0.1 million in City of St. Thomas tourism partnership revenue. Residual savings throughout the County operations reduced this lost revenue impact to $0.3 million, equivalent to 1.2% of the levy. This loss was recovered by an incremental levy increase of 0.8%. The budget planned for a $1.5 million reduction in the municipal position and a corresponding reduction in reserves contained within the municipal position as a result of the previously discussed revenue losses. A primary purpose of reserves is to soften the impact of external shocks to the ratepayers. Given that the impact of these revenue losses, the next three year period will require the use of reserves until measured increases in residential taxes bring net income back to a favourable position. Subsequently the municipal position will rise to $207 million representing a 1% increase per annum from the 2012 municipal position of $188 million. Although this rate of increase is below inflation, it is expected that efficiencies from new construction technologies (such as micro- without undermining the condition of its assets. 10ANNUAL REPORT 40 2013 Financial Results The consolidated financial statements have been prepared in accordance with generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. The statements and related information are the responsibility of management and include the C-St. Thomas Board of Health. The Municipal Act, 2001 requires that the County appoint an independent auditor to express an opinion as to whether the financial statements present fairly the C and operating results. As part of the annual audit, the auditors will deliver a written report providing their opinion on the results of the financial statement audit. 2¤µ¤­´¤²  ­£ #®²³² The consolidated statement of operations reports annual revenue and expenses for 2013 on a comparative basis to the prior year and the budget. The net of revenue and expenses is the change in economic resources available to the County and thereby results in a change in the accumulated surplus. Sources of Revenue (millions) Other Contributions User Charges $3.2 $5.9 5% 9% Transfer Payments $25.8 41% Requisitions of Local Muncipalities $28.1 45% In 2013, the County received revenue of $62.9 million and incurred expenses of $62.4 loss. The vast majority of revenue is derived from property tax revenue and transfer payments from the provincial and federal governments. COUNTY OF ELGIN 11 41 Last year was the first year that transfer payments were less than tax revenue, and this gap grew by a further 2% in 2013. As previously discussed, annual OMPF (Ontario Municipal Partnership Fund) payments have been reduced resulting in a cumulative loss of $3 million in OMPF transfer payments placing an increased burden on Elgin County rate payers. Spending by Cost Element (millions) Rents/Other External Transfers $0.4 $5.1 1% 8% Amortization Wages & Benefits $9.6 $25.2 15% 41% Materials Contracted Services $6.4 $15.7 10% 25% Other Roads- $1.9 Bridges Other 20% $3.8 $8.3 Ambu- 17% Roads- 33% Homes lance Bridges $16.9 $8.4 $7.7 Other 67% 38% 80% $9.9 45% Of the total expenditures of $62.4 million, wages and benefits account for 40% of those expenditures, with two-thirds of these expenses occurring at the long-term care homes. Contracted services and materials combined account for a further 35% of cost with over half attributed to ambulance and roads-bridges. Fifteen percent of expenses are a result of amortization with this sector being dominated by roads-bridges with 80% of the amortization cost. External transfers are predominately to the City of St. Thomas for providing Social Services. In addition, Provincial Offences fines collected net of expenses flow through as transfers to the local municipalities. A reduction of municipal position of $1.5 million was budgeted due to the funding losses from OMPF and Ford property tax. However, due to tight financial controls and other factors, Elgin more than offset these losses and achieved a net gain of $0.5 million providing performance to budget of $2.0 million. Significant performance to budget is as follows: 12ANNUAL REPORT 42 Tax Write-Offs: The reduced property assessment on the Ford Plant resulted in $0.6 million in reduced revenue for the County from the pre-2009 levels when the property was still assessed at full productive value. This loss has already been accounted for in the preliminary 2014 budget deliberations. The full assessment reduction that was finally agreed upon was not retroactive back to 2009, but rather was phased-inover a four year period. The County had set aside $1.7 million for tax write-offs based on Ford winning the appeal for a full reduction starting in 2009, but the four year phased-in approach that was achieved in the final settlement means that only $0.9 million will have to be repaid by the County. The resulting $0.8 million in good news was applied to the 2014 budget deliberations to help offset the impact of other revenue losses. Wages and Benefits: $0.7 million of favourable performance with 80% of the performance being achieved by the long-term care homes by working fewer hours than budgeted. Operations Cost: Costs for supplies, purchased services and utilities for the homes and the administration building were $0.5 million better than budget. The C transfers, user fees, fines and investment income of $27.6 million more than offset by property tax revenue of $28.1 million. The net spend of $27.6 million is broken out by services to our residents as outlined in the chart below: Net Spending by Service Category (millions) Transportation Assistance to Aged Services Persons $10.1 $3.9 Property 37% 14% Assessment and Support $0.7 Social Services 3% $3.1 11% Library & Cultural Public Health General Planning & Ambulance ServicesServices Services Government Development $2.6$2.9 $0.9 $2.2 $1.2 9%11% 3% 8% 4% COUNTY OF ELGIN 13 43 Transportation is the single largest net cost to Elgin County with 37% of expenditures. Assistance to Aged Persons, Social Services, Library, Ambulance and Public Health services combined account for almost half of the C Expenditures of 12% are the result of general government and planning and development. It is important to note that general government includes the costs of information technology, finance and human resources departments required to support the above mentioned services being provided to our residents. It also includes a $0.75 million grant to the hospital redevelopment as part of $3.5 million ten-year commitment. Property Assessment and Support is for payments to the Municipal Property Assessment Corporation (MPAC). MPAC is a not-for-profit corporation whose main responsibility is to provide its customers - property owners, tenants, municipalities, government and business stakeholders - with consistent and accurate property assessments. Every municipality in Ontario is assessed its share of the cost of operating this corporation. -´­¨¢¨¯ « 0®²¨³¨®­ The consolidated statement of financial position reports the Cnancial and non- st financial assets, liabilities and accumulated surplus as of December 31, 2013 on a comparative basis. Financial assets are those assets on hand, which could provide resources to discharge liabilities to finance future operations. The difference between financial assets future activities and to meet its liabilities and commitments. Non-financial assets represent economic resources that will be employed by the County to deliver programs and provide services in the future. The sum of financial assets and non-financial assets represents the accumulated surplus, or municipal equity/position of the County. As a result of the favourable performance to budget, the municipal position remained relatively unchanged with a slight improvement of $0.5 million comprised of a decline in net financial assets of $2.1 million more than offset by an improvement in non-financial assets. The increase in non-financial assets is predominately the result of capital spending in 2013 of $12.3 million being greater than the amortization and write-downs of $9.7million. The decline in financial assets would have been greater had it not been for capital project efficiencies of$3.0 million. These project efficiencies effectively allowed for the addition of Centennial Road project into the 2013 capital budget, and to supplement the already planned funding for the relocation of Dexter Line. In addition, an unallocated capital surplus of $0.9 million was utilized to help maintain an affordable 2014tax increase. 14ANNUAL REPORT 44 Municipal Position (millions) Land & Equipment, Buildings Improvements Furnishings & $19.6 $19.4 Vehicles Roads & Bridges 10% 10% $3.2 $134.2 2% 71% Assets under Construction $5.3 3% Pre-Paid Books $0.4 $1.3 Financial Assets 0% 1% $5.0 3% Equity in roads and bridges comprise 71% of the Cildings account for 10% of the C for roads as well as building, makes up a further 10% of the municipal position. Elgin s financial assets of $5.0 million comprise 3% of the C financial assets are slightly less than one quarterly levy payment. These financial assets play a major role in allowing the County of Elgin to meet its financial obligations during the three-month period between receipts of property tax revenue. consolidated share of the Public Health building. The Public Health building is financed thro sheet. COUNTY OF ELGIN 15 45 -´­¨¢¨¯ « 0¤±¥®±¬ ­¢¤ -¤ ²´±¤² 0±®¦± ¬ Ȩ-0-0ȩ MPMP is a performance measurement and reporting system that promotes local government transparency and accountability. It also provides municipalities with useful data to make informed municipal service level decisions while optimizing available resources.All Ontario municipalities are required to report MPMP efficiency and effectiveness measures for services provided by their municipality. The following are the highlights comparing 2013 to prior years. Adequacy of Roads201120122013 % of paved lane kilometres rated 73.9%56.3%56.3% adequate An adequate road is a road where surface distress is minimal and no maintenance or rehabilitation action is required. The reduction in adequacy in 2012 is the result of a revised, more accurate rating system and a deterioration of the system itself. The deterioration of the system is being addressed by Council through the ten-year plan that sees the annual capital spending on the road system increasing from $9.3 million to $11.8 million over the duration of the plan.This measured deterioration does not mean that the system is at risk or unsafe. As such, the rating for 2013 remains unchanged. Adequacy of 201120122013 Bridges % of bridges and culverts where 83.5%83.5%83.5% the condition is rated as good to very good. A bridge or culvert is rated in good to very good condition if distress to the primary components is minimal, requiring only maintenance. Primary components are the main load carrying components of the structure, including the deck, beams, girders, abutments, foundations. Maintenance Costs201120122013 Per paved lane kilometre$3,966$3,136$3,034 Paved roads are defined as roads with asphalt surface, concrete surface, composite pavement, portland cement or surface treatment. Maintenance includes frost heave/base/utility cut repair, cold mix patching, hot mix patching, shoulder maintenance, surface maintenance, surface sweeping and surface flushing. Surface maintenance activities include crack sealing, spray patching and slurry seal. Also included in these costs are bridge maintenance and winter control costs. Total costs mean operating costs as defined in MPMP, plus amortization and interest on long-term debt, less revenue received from other municipalities for tangible capital assets.Please note that costs in 2011 were elevated due to an incremental payment to a municipal partner for a pumping station. The County of Elgin contracts with its seven member municipalities to provide road maintenance based on a set per kilometre dollar amount. 16ANNUAL REPORT 46 General 201120122013 Government General Government -% of total 3.6%4.8%5.3% operating costs for governance and corporate management. General government administration includes departments primarily involved in general administration, financial management and human resources. The increases in 2012 and 2013 are due to the $1.25 million in grants to the Elgin St. Thomas General Hospital. Excluding the grant, general government costs have remained stable. Library Services201120122013 Operating costs forlibrary services per person$47.29$48.96$49.39 Operating costs for library services per use$2.78$2.86$2.80 Library uses per person16.9917.1017.61 Electronic library uses as a percentage of total library 35.1%39.8%38.4% uses Non-electronic library uses as a percentage of total 64.9%60.2%61.6% library uses Overall, usage of the library by County residents continues to be high. COUNTY OF ELGIN 17 47 For your online source of information regarding: Consolidated Financial Statements Financial Information Return (FIR) Municipal Performance Measures Program (MPMP) Council Remuneration Salaries over $100,000 Please visit: http://www.elgincounty.ca/ElginCounty/Finance/financefiles.php 450 Sunset Drive St. Thomas, Ontario, N5R 5V1 Tel: (519) 631-1460 Web: elgincounty.ca 18ANNUAL REPORT 48 REPORT TO COUNTY COUNCIL FROM: Brian Masschaele, Director of Community and Cultural Services DATE: June 6, 2014 SUBJECT: Funding Agreement for Fourth Floor Museum Renovations INTRODUCTION: This report outlines terms of the funding agreement for renovations to the fourth floor of the Elgin County Administration Building to accommodate the Elgin County Museum as directed by Council at the meeting of May 13, 2014. DISCUSSION: Renovations to the fourth floor of the Elgin County Administration Building were completed in 2005-06 to accommodate the Elgin County Museum. The total capital renovation cost was approximately $500,000, with $160,000 of that contributed equally Sports, Culture and Tourism Partnerships Initiative (SCTP). meeting, staff were directed to provide further details about the terms of this funding agreement in light of proposed plans to develop a new administration building to house the museum. Relevant excerpts of the SCTP information. Specifically, the agreement does confirm that the County shall not transfer ownership of the facility prior to March 31, 2027 without consent of the province which administered this fund on behalf of the federal government. As the agreement states, the province reserves the right to have all or some of the $160,000 investment re-paid should the space no longer be owned and used by the County. Members of Council may also recall that a substantial portion of the remaining capital costs for this project was covered through a bequest to the Elgin County Museum, resulting in minimal costs to ratepayers for this project. Staff are not aware of any formal conditions in the bequest pertaining to length of occupancy; the only major condition was that the funds had to be used for a museum purpose. Nevertheless, Council will need to consider the intention behind this bequest as part of any future deliberations to potentially vacate the fourth floor. CONCLUSION Given that Council has yet to receive a formal design concept for a new Elgin County Administration Building, it is likely pre-mature to approach the province about the funding implications of transferring ownership of the fourth floor. Staff will certainly tion on a new building is further considered. Staff will also be bringing forward to Council other options for 49 environmentally-controlled storage for museum and archives in the coming weeks as part of these deliberations. RECOMMENDATION: THAT the report titled dated June 6, 2014 be received and filed. All of which is Respectfully Submitted Approved for Submission Brian Masschaele Mark G. McDonald Director of Community and Cultural Services Chief Administrative Officer 50 51 52 53 54 REPORT TO COUNTY COUNCIL FROM: Clayton Watters, Director of Engineering Services DATE: June 10, 2014 SUBJECT: Terrace Lodge - Hot Water Tanks Replacement INTRODUCTION: Terrace Lodge has three different hot water systems that service the following areas: kitchen, laundry and domestic. Each system has a set of two tanks: one that heats the water and one to store the heated water. Natural gas is used to heat the water for the three systems. Recently two hot water tanks for the laundry system were replaced due to leaks in the tanks. Since this project was not included in the approved 2014 Capital Program, staff are recommending that the monies be re-allocated from the Capital Reserve. DISCUSSION: On two separate occasions in recent months, two hot water tanks for the laundry system have been replaced due to leaking. The replaced tanks were four years old. The actual cost to replace the two hot water tanks was $13,887.54 plus taxes. The domestic system heats the water to 120 degrees Fahrenheit and at this temperature the tanks will last between 20 and 30 years. Life expectancy of these tanks decreases considerably as the temperature and usage threshold increases; as a result tanks in the kitchen (180 degrees) and laundry (140 degrees) systems only last between four and six years. Elgin Manor has a modern and efficient hot water system with an estimated cost of $200,000 and an annualized cost of $10,000 per year (20 year life cycle). The Terrace Lodge system has an annualized cost of $7,500 per year. After a review of the options staff determined that the most cost effective solution was to replace the tanks with similar makes and models. In order to fund the project to replace the two hot water tanks at Terrace Lodge, staff are recommending re-allocating funds from the Capital Reserve. CONCLUSION: The two hot water tanks recently purchased and installed at Terrace Lodge were the most cost effective solution. 55 Since this project was not included in the approved 2014 Capital Program, monies are required to fund the replacements and the Capital Reserve is the appropriate source. RECOMMENDATION: THAT staff be authorized to replace the hot water tanks at Terrace Lodge at a total cost of $13,887.54 (plus taxes); and, THAT the funds for this purpose be re-allocated from the Capital Reserve. All of which is Respectfully Submitted Approved for Submission Clayton Watters Mark G. McDonald Director of Engineering Services Chief Administrative Officer 56 57 58 59 60 CLOSED MEETING AGENDA June 24, 2014 Staff Report: 1) Chief Administrative Officer Municipal Act, Section 240.2 (d) labour relations Review of Secondment to Administrative Services.