TOWN OF SMITHERS. Councillor Brienesse, Chair, called the meeting to order (12:32 p.m.).

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1 TOWN OF SMITHERS MINUTES OF THE FINANCE COMMITTEE MEETING HELD IN THE COUNCIL CHAMBERS, 1027 ALDOUS STREET, SMITHERS, B.C. ON TUESDAY, DECEMBER 15, 2015, AT 12:30 PM Council Present: Phil Brienesse, Councillor/Chair Taylor Bachrach, Mayor Gladys Atrill, Councillor Greg Brown, Councillor Shelley Browne, Councillor Bill Goodacre, Councillor Frank Wray, Councillor. Staff Present: Susan Bassett, Acting Chief Administrative Officer Leslie Ford, Director of Finance Mark Allen, Director of Development Services Keith Stecko, Fire Chief Rob Blackburn, Airport Manager Roger Smith, Director of Works and Operations Penny Goodacre, Recording Secretary. 1. CALL TO ORDER Councillor Brienesse, Chair, called the meeting to order (12:32 p.m.). 2. APPROVAL OF AGENDA (including Supplemental Items) 2.1 Browne/ THAT Council approves the agenda. 3. REPORTS 3.1 DRAFT CAPITAL PLAN Report FIN dated November 13, 2015, from L. Ford, Director of Finance, regarding the Draft Five Year Capital Plan and the following attachments were presented: a) Draft 5 Year ( ) Capital Plan; b) Backup Documentation for many of the capital projects/line items: Capital Item A: Facility Capital Maintenance 5 year plan/ Solar Power Pilot Project; Capital Item B: Ranger Park Building Second Floor Completion; Capital Item D: Airport Terminal Expansion Project; Capital Item F: Fire Department Storage Building; Capital Item G: Fire Department 25 year Machinery and Equipment Replacement Program; Capital Item H: Works and Operations 25 year Machinery and Equipment Replacement Program; Capital Item I: Airport 5 year Machinery and Equipment Replacement Program; Capital Item J: Vadim Upgrade Program; Capital Item K: Draft Road Paving Plan; Capital Item M: Chandler Park Redevelopment Project; Capital Item Q: Airport Paving; Capital Item S: Outdoor Lighting around Smithers Public Library; Capital Item T: Cemetery Upgrades; Capital Item U: Victoria Drive to Riverside Well Watermain Network Improvements; and Capital Item W: Sewer Rehabilitation Program; Page 1 of 14

2 3.1 DRAFT CAPITAL PLAN continued c) Supplementary Documentation: Projected Surplus/Reserve Balances over next 5 years (detailed Information about each surplus and reserve); Proposed Five Year Capital ( ) - by year and by Department; 2015 Estimated Actual Capital; and Total value of Town s Tangible capital Assets and accumulated amortization ( ). Discussion: L. Ford, Director of Finance, explained to Council that the capital plan is comprised of the following Capital Asset Categories: Facilities, Machinery and Equipment/IT, Engineered Structures and Utilities. The total presented Five Year Draft Capital Plan is $17,555,729. Each item of the Capital Plan has to have a funding source. Many of the funding sources are the Town s own funds which include: a) Property Taxes; b) Operating Surpluses; c) Capital Reserves; and d) Statutory Reserves. There are also other sources of funds such as: a) Disposal of Assets; b) Fundraising; c) Borrowing; and d) Grants. The Operating Surpluses are as follows: a) General; b) RCMP; c) Utility; and d) Airport. The Capital Reserves are as follows: a) Debenture Surplus; b) Gas Tax; c) Cemetery Capital Replacement; d) Facilities Maintenance; and e) Second Sheet of Ice. The Statutory Bylaw Reserves are as follows: a) Capital Works/Land Sales; b) Recreation Facilities; c) Infrastructure Replacement; d) Parkland Dedication; e) Machinery and Equipment Replacement; f) Airport Machinery and Equipment Replacement; g) Local Improvement Fund (LAS Function); h) Parking Spaces; i) Forestry; j) GHG Emission Reduction; k) Airport Infrastructure; and l) Ambleside Subdivision. The Town of Smithers has completed many capital projects in the last few years and as a result, many of the reserve and surplus funds have been either depleted or at their minimum policy limit. The Town has a policy in place that specifies a minimum balance for the General, Airport, and Utility Surpluses. The Town of Smithers did not receive any gift funding from the Wetzin kwa Community Forest Corporation this year, and as a result some items in the Capital Budget will require another funding source. Page 2 of 14

3 FACILITIES: BUILDINGS/STRUCTURES CAPITAL ITEM A - FACILITY CAPITAL MAINTENANCE FIVE YEAR PLAN: The Facilities category includes capital items proposed under the Facility Capital Maintenance program. These items include the following: a) Library heating and ventilation; and b) Gymnastics Building furnace replacement. Development Services has also proposed a Solar Light Pilot Project on the Town Office in the amount of $50,000. The Facility Capital Reserve will require an alternate funding source of revenue, as the annual $25,000 that was being diverted from the Machinery and Equipment Replacement Reserve to the Facility Capital Reserve will be discontinued starting in Solar Light Pilot Project: THAT Council approve the Solar Light Pilot Project at the Town Office in the amount $50,000; with one third of the funding ($16,800) to come from Gas Tax Funds, and remaining two thirds of the funding ($33,200) to come from grant funding. OPPOSED: COUNCILLOR WRAY. Gymnastic Furnace Replacement: THAT the Gymnastics Building furnace replacement in the amount of $7,500 be moved to MOTION WITHDRAWN. THAT the Gymnastics Building furnace replacement budget of $7,500 remain in the 2016 budget; AND THAT Staff hold a conservation with Council regarding alternatives to natural gas furnaces prior to the tender issuing. Facility Maintenance Capital Reserve: THAT Council add $25,000 to the Facility Maintenance Capital Reserve in 2016, with funding to come from annual property taxation with increases of 2% each year. THAT Capital Item A Town Buildings Capital Maintenance Program Five Year Plan , be approved as amended. Page 3 of 14

4 CAPITAL ITEM B- Ranger Park Second Storey Completion Project: The Ranger Park Second Storey Completion Project is subject to gift funding from Wetzin kwa Community Forest; but those funds were not received. Council directed Staff to schedule a Committee of the Whole meeting in the new year to discuss the future of the Ranger Park Building. THAT part of the Ranger Park Second Storey Completion budget amount of $45,000 be removed from the Wetzin kwa Gift Funding as a funding source; AND THAT part of the Ranger Park Second Storey Completion budget amount of $45,000 be funded from General Surplus. THAT the above motion be amended by replacing the wording General Surplus with Gas Tax Funds. The main motion, as amended, was voted on with the final wording being as follows: THAT part of the Ranger Park Second Storey Completion budget amount of $45,000 be removed from the Wetzin kwa Gift Funding as a funding source; AND THAT part of the Ranger Park Second Storey Completion budget amount of $45,000 be funded from Gas Tax Funds. OPPOSED: COUNCILLOR BRIENESSE. CAPITAL ITEM C - FAIRGROUNDS ACCESSIBLE WASHROOM PROJECT: The Fall Fair Washroom Project has been carried over from previous years, due to higher tendered costs than originally estimated. Council directed Staff to consult with Access Smithers prior to issuing the tender package for the Fairgrounds Accessible Washroom Project. THAT Capital Item C Fairgrounds Accessible Washroom Project, be approved as presented. Page 4 of 14

5 CAPITAL ITEM D - AIRPORT TERMINAL EXPANSION PROJECT: The Airport Terminal Expansion Project is pending grant approval. Even without the grant funding, the Town will be required to replace the aging boiler and upgrade the fire alarm system plus do other necessary improvements. Borrowing is the Town s funding source for this project and the cost of the referendum, estimated at $15,000, is within the operating budget and shown to be funded from Airport Surplus. Council directed Staff to schedule a Committee of the Whole meeting to discuss borrowing as an option to fund the necessary Smithers Regional Airport upgrades, should the grant funding for the Airport Terminal Expansion Project be denied. The Mayor mentioned that there may be a possibility to access Regional District of Bulkley Nechako Gas Tax Funds towards Airport Green initiatives out of the necessary list of items. THAT Capital Item D Airport Terminal Expansion Project, be approved as presented. CAPITAL ITEM E - SMITHERS PUBIC LIBRARY (ARTS AND CULTURAL CENTRE) PROJECT: The Smithers Public Library Project was in the past Capital Plans. This Project could now be renamed the Arts and Cultural Centre Project, as it is one of Council`s Strategic Priorities. The only Town funding source is $100,000 short term borrowing; that would have to be repaid over five years within the Debt Repayment Program. This debt repayment would result in an additional $20,000 plus interest to the General Operating Budget over the years as additional debt payments. Page 5 of 14

6 CAPITAL ITEM E - SMITHERS PUBIC LIBRARY (ARTS AND CULTURAL CENTRE) PROJECT continued: THAT Council rename the Smithers Public Library Project to the Arts and Cultural Centre ; AND THAT the Arts and Cultural Centre be moved from the 2016 budget into the 2018 budget in the amount of $10 million, with funding to come from one third grants, one third borrowing; and one third fundraising. THAT the above motion be amended by adding AND THAT $100,000 short term borrowing remain as a funding source for the Project The main motion, as amended, was voted on with the final wording being as follows: THAT Council rename the Smithers Public Library Project to the Arts and Cultural Centre ; AND THAT the Arts and Cultural Centre be moved from the 2016 budget into the 2018 budget in the amount of $10 million, with funding to come from one third grants, one third borrowing; and one third fundraising; AND THAT $100,000 short term borrowing remain as a funding source for the Project. Councillor Brienesse called for a short recess (2:00 p.m.) and resumed the meeting (2:23 p.m.). Page 6 of 14

7 CAPITAL ITEM F - FIRE DEPARTMENT: Fire Department Storage Building Project: The Fire Department Storage Building Project was deferred by Council to the 2016 budget discussions. Council discussed the size, location and intended use of the proposed Fire Department Storage Building. K. Stecko, Fire Chief, reiterated the necessity of having all the emergency equipment and supplies located in one readily available location. Atrill/ THAT Council approve the $450,000 budget for the Fire Department Storage Building Project in 2016; AND THAT Council request that Staff provide a new plan for the Fire Department Storage Building, indicating the minimal storage requirement needed at the Central Park location and providing alternate storage locations off-site for the remainder of the items that are required to be stored. MACHINERY AND EQUIPMENT/ IT REPLACEMENTS/ UPGRADES: CAPITAL ITEM G - FIRE DEPARTMENT MACHINERY AND EQUIPMENT REPLACEMENT PROGRAM: The Fire Department s five year Machinery and Equipment replacement program includes the following items: a) Fire Training Centre container; b) Deputy Fire Chief s truck; c) Fire Chief s truck; and d) generator. THAT Capital Item G - Fire Department Machinery and Equipment Replacement Program be approved, as presented. Page 7 of 14

8 CAPITAL ITEM H - WORKS AND OPERATIONS MACHINERY AND EQUIPMENT REPLACEMENT PROGRAM: The Works and Operations Department s five year Machinery and Equipment replacement program includes the following items: a) ice resurfacer; b) half ton pick up; c) loader; d) angle blade; e) one ton flatdeck; f) lawn mower tractor; g) emulsion pump; h) fertilizer spreader; i) backhoe; j) pickup F150; k) pickup one ton utility; l) engineering van; and m) garbage truck. THAT Capital Item H - Works and Operations Machinery and Equipment Replacement Program be approved, as presented. OPPOSED: COUNCILLORS BRIENESSE AND BROWN. Brienesse/ THAT Council gift the old Zamboni to Hazelton once the Town of Smithers has purchased a new ice resurfacer and advise them immediately. CAPITAL ITEM I - AIRPORT MACHINERY AND EQUIPMENT REPLACEMENT PROGRAM: The Airport s five year Machinery and Equipment replacement program includes the following items: a) gate controller; b) ventrac tractor; and c) runway sweeper. Brown/ THAT Capital Item I Airport Machinery and Equipment Replacement Program be approved, as presented. CAPITAL ITEM J - IT SOFTWARE UPGRADES AND REPLACEMENTS Vadim: The ICity Vadim program is required to be upgraded by the end of Atrill/ THAT Council authorizes Staff to upgrade the Vadim ICity software to the E3 platform; AND THAT Capital Item J IT Software Upgrades and Replacements be approved, as presented. Page 8 of 14

9 ENGINEERED STRUCTURES: CAPITAL ITEM K - ROAD AND STREETS UPGRADES CAPITAL PLAN: Council discussed the fact that many sidewalks, like the roads, within the Town of Smithers are in need of being repaired, upgraded or constructed. Brown/ THAT Council request that Staff prepare a report on the costs associated with installing angle parking along Broadway Avenue between King Street and Main Street; AND THAT this report be presented to Council within six months. OPPOSED: COUNCILLOR BRIENESSE. THAT Council increase the Road Capital/Major Patchwork Annual Plan (funded from taxation) by an additional $20,000; AND THAT Council create a new budget line item called Sidewalk Capital Improvement Plan and reallocate $50,000 from the Road Capital/Major Patchwork Budget into the Sidewalk Capital Improvement Plan. OPPOSED: COUNCILLOR WRAY. THAT Capital Item K - Road and Street Upgrades Capital/Major Patchwork Plan be approved, as amended. CAPITAL ITEM L - GREENWAY/PATHWAYS: THAT Capital Item L Greenways/Pathways be approved, as presented. OPPOSED: COUNCILLOR BROWN. CAPITAL ITEM M - CHANDLER PARK SOCCER FIELD REDEVELOPMENT: THAT Council table Capital Item M Chandler Park Soccer Field Redevelopment Project Phase 1 with a presented budget of $359,000; until the January 5, 2016, Finance Committee meeting. Page 9 of 14

10 CAPITAL ITEM N - PERIMETER TRAIL DEVELOPMENT: THAT Council place $60,000 into the 2016 budget for Perimeter Trail Development, with funding to come from Gas Tax Funds. OPPOSED: COUNCILLORS BRIENESSE, BROWNE, AND WRAY. CAPITAL ITEM O - PARKS/PLAYGROUNDS UPGRADE PLAN: Dogwood Park: THAT Council upgrades the Dogwood Park playground equipment in 2016 at a cost of $30,000, with funds to come from the Recreation Facilities Reserve; AND THAT Capital Item O Parks/Playgrounds Upgrade Plans be approved, as presented. THAT Council add $30,000 to the Recreational Facilities Statutory Reserve in 2016; AND THAT Council increase the Recreational Facilities Statutory Reserve funding by two percent annually; with annual funding to come from Property Taxation. OPPOSED: COUNCILLORS BRIENESSE AND BROWNE. CAPITAL ITEM P - SKATEBOARD PARK EXPANSION AND WILLOWVALE WETALND PROJECTS: A portion of the Skateboard Park Expansion and Willowvale Wetland projects have been placed within the plan to allow the Town to be able to provide tax receipts for the donors towards these projects, but the revenue becomes the Town s and the Town will pay for a corresponding part of the costs. THAT Council defer Capital Item P Skateboard Park Expansion and Willowvale Wetland Projects to the January 5, 2016, Finance Committee meeting; AND THAT Staff report back on the estimated cost of the Skateboard Park Expansion and the Willowvale Wetland Project. Page 10 of 14

11 CAPITAL ITEM Q - AIRPORT ENGINEERED STRUCTURES PLAN: Airport Paving Plan: THAT Council approve the Capital Item Q - Airport Paving Plan in the amount of $100,000 with funding to come from the Airport Infrastructure Reserve Funds, as presented. CAPITAL ITEM R - ACCESSIBILITY CURB CUTS: The Accessibility Curb Cuts budget is larger this year due to no company bidding on the 2015 project; as a result the 2015 amounts have been carried forward to make a larger project in THAT $25,000 be placed in the 2016 Accessibility Curb Cuts budget; AND THAT the unused portion of $25,000 from the 2015 Accessibility Curb Cuts budget, not be carried forward. OPPOSED: COUNCILLORS ATRILL, DEFEATED. BRIENESSE, BROWN, BROWNE, GOODACRE, WRAY AND MAYOR BACHRACH. THAT the unused portion of $25,000 from the 2015 Accessibility Curb Cuts budget be carried forward into 2016; AND THAT an additional $25,000 be placed in the 2016 Accessibility Curb Cuts budget; AND THAT starting in 2016 the Accessibility Curb Cuts program be completed every second year in the amount of $50,000. CAPITAL ITEM S - STREETS AND PATHWAY LIGHTS Main Street to Train Station Project: The Main Street to Train Station project was approved by Council in 2015 to place into the 2016 budget; to allow for more discussion on the project. This lighting project is an extension of the street lights on Main Street, along the trail through Veteran s Park to Railway Avenue. This will assist visitors coming from the Train Station to find their way to Main Street in the dark. Page 11 of 14

12 Main Street to Train Station Project continued: THAT Council remove the Main Street to Train Station Project from the budget. OPPOSED: COUNCILLORS ATRILL, BROWN, DEFEATED. BROWNE, GOODACRE, WRAY, AND MAYOR BACHRACH. THAT Capital Item S Street and Pathway Lights be approved, as presented, with the understanding that the Main Street to Train Station Project amount of $25,000 in 2016 is to be used to light the trail along Veteran`s Park to connect Railway Avenue to Main Street. OPPOSED: COUNCILLOR BRIENESSE. THAT the remainder of the agenda be tabled until the January 5, 2016, Finance Committee meeting: 3.1 DRAFT CAPITAL PLAN: Capital Item T: Cemetery Upgrades Capital Item U: Victoria Drive to Riverside Well Watermain Network Improvements Capital Item V: Airport Water Projects Capital Item W: Sewer Rehabilitation Program Capital Item X: Storm Sewer Improvement Program 4.1 Report DEV dated August 18, 2015, from M. Allen, Director of Development Services, regarding the water service request at Elks Park for the Smithers Mountain Bike Association ( ). 4.2 Report dated November 19, 2015, from Councillor Brienesse recommending that Council provide direction to the Bulkley Valley Regional Pool Board regarding pool facility replacement and capital reserve policy ( ). 4. CORRESPONDENCE (A) ITEMS 4.1 SMITHERS MOUNTAIN BIKE ASSOCIATION - WATER SERVICES AT ELKS PARK Report DEV dated August 18, 2015, from M. Allen, Director of Development Services, regarding the water service request at Elks Park for the Smithers Mountain Bike Association, was presented ( ). Page 12 of 14

13 4.2 BV REGIONAL POOL AND RECREATION CENTRE - REQUEST FROM THE REGIONAL DISTRICT OF BULKLEY NECHAKO Report dated November 19, 2015, from Councillor Brienesse recommending that Council provide direction to the Bulkley Valley Regional Pool Board regarding pool facility replacement and capital reserve policy, was presented ( ). 5. SUPPLEMENTAL ITEMS APPROVED FOR DISCUSSION None. 6. OTHER BUSINESS / NEW BUSINESS None. 7. NEXT MEETING DATES 7.1 FINANCE COMMITTEE MEETING DATES The next Finance Committee meeting dates, being held in the Council Chambers, are as follows: Tuesday, January 5, 2016, at 12:30 p.m. Tuesday, January 19, 2016, at 12:30 p.m. Tuesday, February 2, 2016, at 12:30 p.m. Tuesday, March 1, 2016, at 6:30 p.m. Tuesday, April 5, 2016, at 6:30 p.m. Tuesday, April 12, 2016, at 5:30 p.m. 8. ADJOURNMENT 8.1 THAT the meeting be adjourned (4:28 p.m.). Phil Brienesse Councillor/Chair Susan Bassett Acting Chief Administrative Officer Page 13 of 14

14 Certified a True and Correct Copy of the minutes of the Finance Committee meeting held Tuesday, December 15, 2015, at 12:30 p.m. in the Council Chambers, 1027 Aldous Street, Smithers, B.C. Susan Bassett Corporate Administrator Page 14 of 14