THE CORPORATION OF THE MUNICIPALITY OF PORT HOPE Budget Committee Agenda Town Hall, 56 Queen St Council Chambers
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1 DATE: March 18, CALL TO ORDER THE CORPORATION OF THE MUNICIPALITY OF PORT HOPE Budget Committee Agenda Town Hall, 56 Queen St Council Chambers Disclosure of pecuniary interest and the nature thereof 2. Delegations None. 3. Correspondence TIME: 5:00 p.m. 3.1 D. Kripp, Finance Clerk D. Baxter, Director of Finance Re: Port Hope and District Chamber of Commerce Business Excellence Awards Recommendation that the Budget Committee choose from the following options concerning the Port Hope and District Chamber of Commerce Business Excellence Awards i. Approve a donation from the Council Donation account in the amount of $2,600 plus HST to assist with the cost for the organizations Business Excellence Awards; or ii. Receive as information. 4. Business from Previous Meetings 5. New Business 5.1 B. Odziemkowska, Environmental Compliance Technician Re: Streetlight Retrofit Contract with Langley Utilities Contracting Ltd. Recommendation that Budget Committee recommend to Council that a Bylaw be prepared for presentation to Council on March 25, 2014 to authorize execution of the contract agreement with Langley Utilities Contracting Ltd. for the streetlight electronic ballast conversion program for the Municipal street lighting system, including a payment of $653,952 (plus HST) to Langley Utilities over a sixty (60) month period with payments determined by Finance and, further, repealing By-Law No. 63/ Other Business 7. Question Period 8. Future Budget Meeting(s) Regular Budget Meeting: Budget Committee Agenda March 18, 2014 Page 1 of 2 1
2 Tuesday, April 22, :00 p.m. to 6:00 p.m. Council Chambers Tuesday, May 20, :00 p.m. to 6:00 p.m. Council Chambers Adjourn Budget Committee Agenda March 18, 2014 Page 2 of 2 2
3 Budget Committee - March 18, 2014 Item 3.1 REPORT TO: Municipality of Port Hope 56 Queen Street Port Hope, ON L1A 3Z9 Budget Committee CAO Dir of CS Dir of EDT Dir of FIN Dir of W/ENG Dir of PD Dir of FES Dir of PRC FROM: SUBJECT: Devanne Kripp, Finance Clerk David Baxter, Director of Finance Port Hope and District Chamber of Commerce Business Excellence Awards DATE: March 18, 2014 RECOMMENDATION: That the Budget Committee choose from the following options concerning the Port Hope and District Chamber of Commerce Business Excellence Awards i. Approve a donation from the Council Donation account in the amount of $2,600 plus HST to assist with the cost for the organizations Business Excellence Awards; or ii. Receive as information. BACKGROUND: Port Hope and District Chamber of Commerce is holding their annual Business Excellence Awards at Dalewood Golf Club on Saturday, April 26, The event includes an opening reception, formal dinner and award presentation. The Chamber of Commerce is inviting the Municipality of Port Hope to continue its support of the Business Excellence Awards by providing a Council s Choice Award consistent with previous years. The Port Hope and District Chamber of Commerce is requesting a donation in the amount of $2,600 plus HST as a Platinum Sponsor. Platinum Sponsors receive 8 tickets to attend the Business Excellence Awards, inclusion in all radio and newspaper advertising, exposure in the nomination packages, the opportunity to present an award during the awards ceremony, logo recognition at the event and prominent photos in the event wrap-up distributed with the monthly newsletter. In 2013, Council donated $2,600 plus HST towards this event from the Council Donation account. The current balance remaining in the Council Donation account as of March 13, 2014 is $7,375 from the proposed budget of $8,100. Re: Port Hope and District Chamber of Commerce Business Excellence Awards Report to Budget Committee March 18, 2014 Page 1 of 2 3
4 As this requested amount is consistent with prior year budget allotment this could be used as a source of funding for this request. CONCLUSION: This supports the collaboration and cooperation of the operating principles outlined in the Municipality s Corporate Strategic Plan. Further, it supports the promotion of Economic Development and Tourism. If approved, funding could be utilized from the Council donation account. Original Signed by: Budget Committee - March 18, 2014 Item 3.1 Devanne Kripp, Finance Clerk David Baxter, Director of Finance Re: Port Hope and District Chamber of Commerce Business Excellence Awards Report to Budget Committee March 18, 2014 Page 2 of 2 4
5 Budget Committee - March 18, 2014 Item 3.1 5
6 Budget Committee - March 18, 2014 Item 5.1 Municipality of Port Hope 56 Queen Street Port Hope, ON L1A 3Z9 CAO Dir of CS Dir of EDT Dir of FIN Dir of W/ENG Dir of PD Dir of FES Dir of PRC REPORT TO: FROM: SUBJECT: Budget Committee Beata Odziemkowska, Environmental Compliance Technician Jeanette Davidson, Engineering Services Technician Streetlight Retrofit Contract with Langley Utilities Contracting Ltd. DATE: March 18, 2014 RECOMMENDATION: That Budget Committee recommend to Council that a By-law be prepared for presentation to Council on March 25, 2014 to authorize execution of the contract agreement with Langley Utilities Contracting Ltd. for the streetlight electronic ballast conversion program for the Municipal street lighting system, including a payment of $653,952 (plus HST) to Langley Utilities over a sixty (60) month period with payments determined by Finance and, further, repealing By-Law No. 63/2013. BACKGROUND: On July 30, 2013, Council adopted By-law No.63/2013 to authorize execution of the contract agreement with Langley Utilities Contracting Ltd. for the streetlight electronic ballast conversion program for the Municipal street lighting system. The streetlights retrofit program was completed on February 11, In total, 1,572 streetlights were retrofitted with new electronic ballasts, photo eyes and lights. The original proposal included a retrofit of 1,559 street lights. There were 13 additional lights not included in the initial proposal and as they were not accounted for at the time of executing the agreement with Langley Utilities. Therefore, there is an additional sum of $5,408 (excl. HST) to be paid for the retrofit in comparison to the original cost of $648,544 (excl. HST). The current total cost of the retrofit is $653,952 (excl. HST) as listed in Appendix A (attached). This principal amount of $653,952 will be paid by 60 (sixty) monthly installments beginning in March 2014 as determined by Finance. The HST component was not included in the original calculations of the project cost due to an oversight by both parties. The HST amount of $85,014 will be Re: Streetlight Retrofit Contract with Langley Utilities Contracting Ltd. Page 1 of 2 Report to Budget Committee March 18,
7 paid to Langley Utilities as lump sum. The non-refundable amount of HST of $11,509 will be added to the total cost of the retrofit. Due to the installation of additional lights, the financial plan and savings for the retrofit were recalculated and resulted in additional saving of $451 in annual hydro cost. The Energy Saving Rebate will increase by $223 resulting in total rebate of $26,435 to be paid to the Municipality. The 2014 Draft operating budget is reflective of the operating savings net of repayment to Langley Utilities including the revised amounts noted. Staff has submitted the post-installation report to Veridian in order to receive the Energy Saving Rebate. Veridian is currently revising streetlights inventory for Port Hope in order to provide new billing schedule which will reflect new (lower) billing wattage. The 5-year shared savings contract fully covers all costs of purchasing, installing, maintaining and warranting new fixtures. CONCLUSION: Budget Committee - March 18, 2014 Item 5.1 The proposed new By-law is required to reflect changes in the final cost of the streetlights retrofit as completed on February 11, The completion of the retrofit project through a partnership with Langley Utilities will allow the Municipality to achieve significant long term savings in the operating budget with no initial capital cost. This initiative is in accordance with the Fiscal Responsibility and Sustainability goal of the Corporate Strategic Plan. Original Signed by: Beata Odziemkowska Environmental Compliance Technician Jeanette Davidson Engineering Services Technician Re: Streetlight Retrofit Contract with Langley Utilities Contracting Ltd. Page 2 of 2 Report to Budget Committee March 18,
8 Budget Committee - March 18, 2014 Item Appendix A SCHEDULE A Retained Savings and Yearly Payables to Langley Unit Cost # of Units Revision 5 - March 14, 2014 Total Project Cost $ 653, $ (additional 13 SLs - New Subdivision) Scope of Work: to retrofit 1572 Streetlights within the Municipality with Energy Saving Electronic Ballasts, Long Life Lamps and Photoeyes Expected Start Date for Retrofit Installation: October 2013 (as per Save-On-Energy Project Cost Breakdown) Yearly Payables to Langley**** $ of Rebate/Savings/B Mar - Dec udget (10 months)** Payable to Langley Energy Saving Rebate as per Veridian - 90% Payable to Langley by monthly installments Energy Savings from Veridian - 90% Payable to Langley by monthly installments* Port Hope Street Light Maintenance Annual Budget % payable to Langley by monthly installments*** 91% Formal Proposal - Energy Saving Solution - Electronic Ballasts 2019 Jan - Feb (2 months) ** Total Payments to Langley $ 26, $ 23, $ 23, $ 59, $ 44, $ 53, $ 53, $ 53, $ 53, $ 8, $ 266, $ 80, $ 60, $ 72, $ 72, $ 72, $ 72, $ 12, $ 363, Total Yearly Payments $ 128, $ 126, $ 126, $ 126, $ 126, $ 20, $ 653, $ of Rebate/Savings/B Mar - Dec Total Retained 2019** Jan - Feb Savings by Port Retained Savings for Port Hope udget (10 months) (2 months) Hope Energy Saving Rebate as per Veridian - Port Hope to Retain 10% $ 26, $ 2, $ 2, Energy Savings from Veridian - Port Hope to retain 10%* $ 59, $ 4, $ 5, $ 5, $ 5, $ 5, $ $ 29, Port Hope Street Light Maintenance Annual Budget - Port Hope to Retain = *** Yearly Retained Savings for Port Hope $ 80, $ 6, $ 7, $ 7, $ 7, $ 7, $ 1, $ 36, Total Retained Savings $ 68, * based upon Nov 2012 Billing (31 days). Energy Savings are based upon average cost of energy for the 2012 year - no inflation. Should the cost of energy increase or decrease the payments shall be as indicated on this chart. ** installation completed on February 11, 2014 *** figures are based upon approved application to the Save-on-Energy Program and actual installation inventory assesment. New Ballasts, Lamps & Photoeyes are completey Guaranteed for for 5 years from date of installation. All labour, equipment and materials will be provided at no charge for repair and or replacement, in the event of malfunction or defect. There may be charges for items of maintenance outside of these three items. **** Payables to Langley are due on the 1st day of each month, the first payment is due on the 1st of the month following the completion of the retrofit installation and all following payments are due as already described. 8
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