The District Municipality of Muskoka. Corporate and Emergency Services Committee. Meeting CES Minutes

Transcription

1 The District Municipality of Muskoka Corporate and Emergency Services Committee Meeting CES Minutes Place: Time: Council Chamber, District Administration Building 4:00 p.m. Date: September 17, 2018 Present: Officials Present: Others Present: Committee Chair S. Aitchison; District Chair J. Klinck; Members L. Braid, P. Donaldson, D. Furniss, G. Smith, B. Young M. Duben, Chief Administrative Officer; J. Stevens, Commissioner, Finance and Corporate Services; F. Jahn, Commissioner, Engineering and Public Works; A. Back, Acting Clerk C. Denstedt, Director, I.T. Services; J. Yeo, Director, Facilities and Support Services; L. Kerswell, Coordinator, Records Management; J. Binkley, Administrative Assistant; T. Guthrie, Deputy Clerk Call to Order Committee Chair Aitchison called the meeting to order at 4:03 p.m. Declaration of Pecuniary Interests None were declared. Budgets and Financial Planning a) Status of Reserves and Reserve Funds June 2018 Report CES Councillor Furniss arrived at 4:05 p.m. Moved by J. Klinck and seconded by B. Young R58/2018-CES THAT Report CES , Status of Reserves and Reserve Funds June 2018, be received. Carried.

2 Information Technology Services a) IT Services Staff Resource Report CES Ms. Denstedt reviewed the report for Committee and answered questions in regard to current staffing levels and service needs. In response to concerns regarding multiple FTE requests received by the standing Committees, Ms. Stevens confirmed that a report highlighting all staffing requests would be brought forward during the 2019 budget deliberations as was done in Moved by L. Braid and seconded by P. Donaldson R59/2018-CES THAT funds be included in the 2019 Draft IT Services Division Operating Budget for consideration to amend the IT staff complement to reflect the addition of one (1) full time employee (FTE) position of Technician II. Carried. Facilities Services a) Facilities Services Department Staffing Capital Project Coordinator Contract Extension Report CES Mr. Yeo highlighted the report and stated that if the current contract is not extended, outside consultants would be required to assist with the completion of certain capital projects. Moved by B. Young and seconded by P. Donaldson R60/2018-CES THAT the Draft 2019 Tax Supported Operating Budget include the costs to extend the temporary Capital Project Coordinator position in the Facilities Services Department staff complement until the end of 2019; AND THAT all costs associated with this extension be fully funded from approved capital project budgets with no impact to the net levy. Carried. Finance a) Study of the Cost per Service provided to each Lower Tier in the District Report CES

3 A discussion occurred regarding the work involved to complete the request and whether the District s current accounting software would allow for additional fields to be utilized to identify which municipality(ies) each project should be apportioned to. It was the consensus of Committee to wait for the Provincial Government to review regional governments; however the Chair was directed to send correspondence to the Province to highlight what has been done in the District of Muskoka in regard to Council composition. Ms. Stevens confirmed that she would contact other regional municipalities who had potentially completed a similar process to seek more information. b) 2019 Solid Waste Tipping Fees Report CES Mr. Jahn reviewed the options for solid waste tipping fees for the upcoming year. Ms. Stevens indicated that full cost recovery for solid waste would be proposed in the 2019 budget. c) Temporary Staffing to advance the Corporate Records and Information Management Program Report CES This report was provided for information. New Business a) Municipal Cyber Insurance In response to comments regarding recent cyber-attacks in Ontario, Ms. Stevens confirmed that cyber insurance had been added to the District s insurance policy in Ms. Denstedt noted that the District had recently completed a penetration test to assess the networks security, the results of which had been very successful. She added that as a result of the test, staff would 1) Review security processes and procedures; 2) complete annual penetration tests; and 3) educate end-users (employees) with respect to suspicious s and potential malware. In response to a question regarding back-up protocol, Ms. Denstedt advised that snapshots are taken frequently throughout the day with back-ups completed on a systematic basis. Adjournment Moved by P. Donaldson and seconded by G. Smith P61/2018-CES THAT the Corporate and Emergency Services Committee adjourns to meet again on Thursday, October 18, 2018 at 1:00 p.m. or at the call of the Chair. Carried.

4 The meeting adjourned at 5:18 p.m. Acting Clerk

5 70 PINE STREET, BRACEBRIDGE, ONTARIO P1L 1N3 Telephone (705) / Fax (705) / (705 area code) To: From: Chair and Members Corporate and Emergency Services Committee Sharon Donald Director of Budgets and Financial Planning Date: September 17, 2018 Subject: Status of Reserves and Reserve Funds June 2018 Report: CES Recommendation THAT Report CES , Status of Reserves and Reserve Funds June 2018, be received. Origin In 2005, Council adopted Policy AD:51 Capital Budget Preparation, Monitoring and Reporting. The revised policy requires staff to submit formal reports to the Standing Committees and Council on the status of the District s capital program as at March 31 st, June 30 th, September 30 th and December 31 st. The purpose of this report is to highlight material variances within the reserves and reserve funds. Analysis The Capital Project Quarterly Variance Report Corporate Summary - June 2018 was included on the Standing Committee agendas for the week of August 20 th and September 17 th The overall Tax Supported favourable variance of $65,047 and the Rate Supported favourable variance of $1,961,761 were included in Report CES These impacts are reflected against the respective reserve funds. Schedule A This schedule summarizes the $138,966,720 cash balance of the District s Reserves and Reserve Funds as at June 30, 2018, including transfers from the operating budget, receipts from development fees, grants, capital projects financed and transfers to the operating budget recorded to June 30, Schedule B Schedule B summarizes the projected balances of $76,657,393 in the District s Reserves and Reserve Funds as at June 30, Starting with the cash balance as at June 30, 2018, commitments on open projects are deducted and the balance of the year s outstanding transfers are added. Page 1

6 The Reserve Fund projected balance of $76,657,393 is favourable to the 2018 Approved Budget by approximately $6.9 million. Of this favourable amount $5.1 million is related to 2017 transactions or events that occurred in the third and fourth quarter of that year and include financing amendments ($2.3 million), favourable development charges and interest revenue ($0.7 million and 0.3 million, respectively) and net year end surpluses ($1.8 million). Since the opening balance used during the 2018 budget process was based on the June 2017 variance reports, these amounts were not reflected in the budget binders. The remaining $1.8 million is the result of net financing amendments for the first and second quarter of 2018 that reduced the use of reserves. Schedule C Schedule C reflects the impact on planned funding sources (both own source and external funding) due to results reported in the Tax Supported section of the Capital Project Quarterly Variance Report. There was an overall net favourable variance or decreased use of funding totalling $65,047 which is made up of the following: $111,589 net decrease in the use of reserves from projects that are being cancelled or completed under budget; and $46,542 in additional external funding based on the amounts received from municipal contributions for the portion of work completed in conjunction with the District, as well as energy rebates. Schedule D Schedule D reflects the impact on planned funding sources (both own source and external funding) due to results reported in the Rate Supported section of the Capital Project Quarterly Variance Report. There was an overall net favourable variance or decreased use of funding totalling $1,961,761 which is made up of the following: $163,368 net decrease in the use of reserves mainly from projects that are being completed under budget; $1,709,393 net decrease in the use of reserves due to projects being closed in the current year, although may be considered in future budget years; and $89,000 net decrease in external funding based on the cancellation of two local improvement projects. Financial Considerations The financial considerations are included in the Analysis section of the report. Communications Reserves and Reserve Fund Reports are submitted to the Corporate and Emergency Services Committee and Council on the status of the District s capital program as at March 31 st, June 30 th, September 30 th and December 31 st. Page 2

7 Strategic Priorities Click on icons below to view strategies under each priority area: s 2.2, 2.3 Respectfully submitted, Original signed by Sharon Donald, CPA, CMA Director of Budgets and Financial Planning Original signed by Julie Stevens, CPA, CA Commissioner of Finance and Corporate Services Page 3

8 Reserves and Reserve Fund Cash Balances - June 2018 Schedule A Opening Cash Balance January 2018 Transfer from Operating Development Fees / Grants / Donations / Sale of Assets Interest Earned Total Inflows Capital Projects Financed Transfer to Operating Total Outflows Closing Cash Balance June 2018 Capital Funds Corporate Capital $6,584,065 $513,610 $50,504 $564,115 ($56,264) ($21,750) ($78,014) $7,070,166 Computer Equipment 270,559 62,301 2,407 64,708 (78,146) (78,146) 257,121 Fleet Capital 3,460, , ,077 (71,754) (71,754) 3,682,803 Ambulance Capital 2,095, ,545 16, ,024 (358,506) (358,506) 2,039,499 Hospital Financing 4, , ,965 (400,000) (400,000) (94,778) Roads Capital 16,805,584 7,995, ,868 8,145,124 (1,850,870) (1,850,870) 23,099,838 Active Transportation 749,180 5,574 5, ,754 Port Carling Locks 920, ,298 7, ,660 (1,905,548) (1,905,548) (774,217) Environment General 11,410,845 1,297,931 88,914 1,386,845 (164,324) (164,324) 12,633,366 Pines Capital 3,222, ,586 24, ,361 (79,481) (79,481) 3,427,011 Pines Community Support Fund 311,514 3,929 2,315 6,244 (10,016) (10,016) 307,742 Community Housing Capital 3,643, ,835 27, ,257 (3,239) (3,239) 3,771,246 Planning Capital 961,988 51,917 7,317 59,234 (13,835) (13,835) 1,007,388 Airport Capital 1,112, ,586 9, ,665 (34,861) (34,861) 1,345,914 Debt Reduction 24,224,234 1,941, ,916 2,127,085 (137,500) (137,500) 26,213,819 Wastewater Capital 8,562,419 1,933,824 69,704 2,003,528 (1,234,227) (1,234,227) 9,331,720 Water Capital 10,264,928 1,863,633 82,149 1,945,782 (99,075) (99,075) 12,111,635 Solid Waste Capital 5,302,866 1,487,481 44,070 1,531,551 (314,119) (314,119) 6,520,298 Sustainable Infrastructure 4,632,723 34,460 34,460 (674,061) (674,061) 3,993,122 OCIF 1,020, ,182 9, ,758 (26,677) (26,677) 1,701,123 Subtotal Capital Funds $105,559,807 $18,853,049 $704,518 $816,448 $20,374,015 ($6,964,986) ($569,266) ($7,534,251) $118,399,570 Development Charge Funds Roads $1,468,219 $569,893 $11,837 $581,729 ($246,434) ($246,434) $1,803,515 Hauled Sewage 489,042 62,687 3,701 66, ,430 Water 1,359, ,690 10, ,451 (14,943) (14,943) 1,668,266 Wastewater 1,497, ,001 12, ,055 (96,745) (96,745) 1,878,436 Subtotal Development Charge Funds $4,814,144 $0 $1,411,270 $38,354 $1,449,624 ($358,121) $0 ($358,121) $5,905,646 Operating Funds General TS Stabilization $2,751,166 $0 $0 $2,751,166 WSIB 3,636, ,904 22, ,571 (139,756) (139,756) 3,836,933 Self-Insured Employee Benefit 1,900, ,900,305 Corporate Working Funds 2,508, ,508,813 Affordable Housing Initiatives 1,911,718 14,220 14, ,925,938 Muskoka Services Investment 412,532 3,069 3, ,601 Gateway Homes Muskoka 459,639 3,419 3, ,058 Solid Waste Operating 853,343 6,347 6, ,690 Subtotal Operating Funds $14,433,634 $317,904 $0 $49,722 $367,626 $0 ($139,756) ($139,756) $14,661,504 Total $124,807,585 $19,170,953 $2,115,788 $904,524 $22,191,264 ($7,323,107) ($709,022) ($8,032,129) $138,966,720 Page 4

9 Closing Cash Balance March 2018 Reserves and Reserve Fund Projected Balances - June 2018 Commitments on Open Projects Balance of Year Transfers Net of Surplus / (Deficit) Projection Impact of TS Capital Project Quarterly Variance - March 2018 Impact of RS Capital Project Quarterly Variance - March 2018 Projected December 2018 Balance December 2018 (Budget Document) Schedule B Variance Favourable / (Unfavourable) to 2018 Approved Budget Capital Funds Corporate Capital $7,070,166 ($3,754,741) ($371,073) $0 $2,944,352 $5,585,200 ($2,640,848) Computer Equipment 257,121 ($124,638) 62, , ,176 2,607 Fleet Capital 3,682,803 ($188,646) 294, ,788,234 3,687, ,008 Ambulance Capital 2,039,499 ($641,714) 310, ,707,950 1,681,973 25,977 Hospital Financing (94,778) $0 100,000 5,222 4, Roads Capital 23,099,838 ($17,833,169) 8,100, ,000 13,467,173 10,545,863 2,921,310 Active Transportation 754,754 $0 12, , ,171 (6,239) Port Carling Locks (774,217) ($393,589) 1,419, , ,351 (95,369) Environment General 12,633,366 ($8,354,665) 980, ,900 5,896,414 5,284, ,878 Pines Capital 3,427,011 ($185,671) 277,659 11,589 3,530,588 3,625,239 (94,651) Pines Community Support Fund 307,742 $0 (10,100) 297, ,549 29,093 Community Housing Capital 3,771,246 ($1,561,751) 150, ,359,623 2,379,043 (19,420) Planning Capital 1,007,388 ($762,701) 22, , ,403 (46,745) Airport Capital 1,345,914 ($802,528) 271, , ,234 50,440 Debt Reduction 26,213,819 ($1,175,696) (13,952,056) ,086,067 10,623, ,595 Wastewater Capital 9,331,720 ($8,499,293) 1,923, ,553 2,916,805 1,517,895 1,398,910 Water Capital 12,111,635 ($11,337,080) 1,863, ,608 3,007,795 2,463, ,347 Solid Waste Capital 6,520,298 ($5,100,940) 1,487, ,700 3,612, ,661 2,850,878 Sustainable Infrastructure 3,993,122 ($5,178,213) 1,891, ,407 1,044,279 (337,872) OCIF 1,701,123 ($1,507,440) 977,452 1,171,135 1,153,743 17,392 Subtotal Capital Funds 118,399,570 (67,402,475) 5,812, ,589 1,872,761 58,793,975 53,017,819 5,776,156 Development Charge Funds Roads 1,803,515 ($707,188) 549, ,645,342 1,209, ,306 Hauled Sewage 555,430 ($977,467) 452, , ,340 Water 1,668,266 ($123,799) 226, ,771,075 1,636, ,839 Wastewater 1,878,436 ($993,430) 297, ,182, , ,827 Post Period Benefits - Wastewater 0 ($3,594,868) 3,594, Subtotal Development Charge Funds 5,905,646 (6,396,752) 5,119, ,628,875 3,628,564 1,000,311 Operating Funds General TS Stabilization 2,751, ,751,166 2,737,800 13,366 WSIB 3,836,933 (101,544) 3,735,389 3,594, ,611 Self-Insured Employee Benefit 1,900,305 42,294 1,942,599 1,842, ,549 Corporate Working Funds 2,508,813 2,508,813 2,508,813 0 Affordable Housing Initiatives 1,925,938 (1,008,511) 917, , ,768 Muskoka Services Investment 415,601 0 (29,299) 0 386, ,957 39,345 Gateway Homes Muskoka 463,058 (329,901) 133,157 1,049,304 (916,147) Solid Waste Operating 859, , ,694 18,996 Subtotal Operating Funds 14,661,504 0 (1,426,961) ,234,543 13,110, ,488 Total $138,966,720 ($73,799,227) $9,505,550 $111,589 $1,872,761 $76,657,393 $69,756,438 $6,900,955 Page 5

10 Tax Supported Capital Project Quarterly Variance Report - June 2018 Use of Reserve Funds (Increase) / Decrease Schedule C Energy Rebates Area Municipality Project Number Roads Capital Pines Capital Total Roads ML MR 7 from MR 28 Northerly 3.0 km $75,000 $75, ML MR 7 fr 3km N of MR 28 to Musk/PS Bndry 2.7km $25,000 $25,000 Roads Subtotal - (Increase)/Decrease $100,000 $0 $0 $0 $100,000 Corporate & Emergency Services Electronic Document Management Solution ($34,953) ($34,953) Corporate & Emergency Services Subtotal - (Increase)/Decrease $0 $0 $0 ($34,953) ($34,953) Community Services Pines Kitchen MUA Repl & HVAC Upgrades $11,589 ($11,589) $0 Community Services Subtotal - (Increase)/Decrease $0 $11,589 ($11,589) $0 $0 Tax Supported Grand Total Impact on Financing $100,000 $11,589 ($11,589) ($34,953) $65,047 Reserve Fund Impact - (Increase)/Decrease $111,589 External Funding - (Increase)/Decrease ($46,542) Page 6

11 Use of Reserve Funds (Increase) / Decrease Rate Supported Capital Project Quarterly Variance Report - June 2018 Schedule D Wastewater Capital Solid Waste Capital Environment General Prepaid Special Charges Project Number Water Capital Total Water GH Old Muskoka from Muskoka Beach to MR 18 $62,300 $62, GH Reline MR 169 from Readman to End $110,003 $110, HV Mount Pleasant Court Repl WM $20,576 $20, BB Beaumont Dr CI Repl 315m $20,000 $20, HV Chaffey Shop Electrical & Bldg Upgrades $26,729 $26, BB CO2 System Repl $65,000 $65, GH CO2 System Repl $65,000 $65,000 Water Subtotal - (Increase)/Decrease $369,608 $0 $0 $0 $0 $369,608 Wastewater HV Madeline St LI Sewer Extension $50,000 $50, HV Mount Pleasant Crt Sanitary Sewer Ext $80,017 $39,000 $119, BB Repl/Reline Bird & Richard from Taylor to Woodchester $53,900 $53, BB Lagoon Ln Sludge Cleaning Cells #1,2,3 $585,000 $585, BALA Victaulic Coupling Repl / Clarifier Anchors $26,636 $26, GH Centrifuge Overhaul 2018 $51,900 $51,900 Wastewater Subtotal - (Increase)/Decrease $0 $160,553 $0 $636,900 $89,000 $886,453 Solid Waste RW Compost Pad (RAP, SWM & Bear Fence) $450,000 $450, Land Purchase $255,700 $255,700 Solid Waste Subtotal - (Increase)/Decrease $0 $0 $705,700 $0 $0 $705,700 Public Works - Rate Supported - (Increase)/Decrease $369,608 $160,553 $705,700 $636,900 $89,000 $1,961,761 Reserve Fund Impact - (Increase)/Decrease $1,872,761 External Funding - (Increase)/Decrease $89,000 Page 7

12 70 PINE STREET, BRACEBRIDGE, ONTARIO P1L 1N3 Telephone (705) / Fax (705) / (705 area code) To: From: Chair and Members Corporate and Emergency Services Committee Chantelle Denstedt Director, IT Services Date: September 17, 2018 Subject: IT Services Staff Resource Report: CES Recommendation THAT funds be included in the 2019 Draft IT Services Division Operating Budget for consideration to amend the IT staff complement to reflect the addition of one (1) full time employee (FTE) position of Technician II. Origin Report ITSC , attached as Appendix A, was presented to the Information Technology Steering Committee (ITSC) on September 6, 2018 and was approved by the ITSC for submission to the Corporate and Emergency Services Committee. All staffing requests are to be presented to each respective Standing Committee in the fall and if approved included in the following year s budget for consideration during budget deliberations. Analysis Please see Analysis section of Appendix A. Financial Considerations The following chart illustrates the impact to the 2019 and 2020 IT Services Operating Budgets with the addition of a Technician II FTE. Due to the shared service arrangement, the District charges support services recoveries to other departments and a user fee to the other consortium members. As a result, although the net levy is nil, there is an increase that will be recovered of $64,940 in Page 1

13 Additional Staffing Resource Costs 2019 ($) 2020 ($) Technician II (Class 7) 83,435 85,104 Support Services (computer) 5,130 5,233 Project Revenue (Rentals / Labour) (23,625) (24,098) Total Expenditures 64,940 66,239 Support Services Recovery (District) (42,147) (42,990) Estimated Recoveries from Participants (excluding District) (22,793) (23,249) Net Levy 0 0 Communications Should the recommendation for the addition of one (1) full time employee position of Technician II be approved, the position will be included in the 2019 Draft Tax Supported Operating Budget for final consideration during the budget deliberations. Strategic Priorities Click on icons below to view strategies under each priority area: S 2.1, 2.3, 2.4 Respectfully submitted, Original signed by Chantelle Denstedt Director, IT Services Original signed by Julie Stevens, CPA, CA Commissioner of Finance and Corporate Services Page 2

14 Appendix "A" To: From: Chair and Members Information Technology Steering Committee Chantelle Denstedt Director, IT Services Date: September 6, 2018 Subject: IT Services Staff Resource Report: ITSC Recommendation THAT funds BE INCLUDED in the 2019 Draft IT Services Division Operating Budget for consideration to amend the IT staff complement to reflect the addition of one (1) full time employee position of Technician II. AND THAT staff report back to the Information Technology Steering Committee (ITSC) on its initiatives to improve processes and gain efficiencies. Origin The workload demand on IT Services continues to grow; expectations for technology solutions are greater, and technology is in a constant state of change with cyber-security taking a greater emphasis. Service levels are difficult to maintain with the current staff complement. In order to meet District guidelines for next year s budget, any changes in staff complement for the 2019 budget must be reported to the District Corporate and Emergency Service (CES) Committee for inclusion and consideration in the budget. This report is seeking approval from ITSC to proceed with this reporting to the CES Committee. Ultimately, approval for the position is required by each of the Participating Libraries and Participating Municipalities (Participants) through their 2019 budget process. Background In 2016, staff prepared report CES regarding the ITS Staff Complement which recommended a reorganization of IT Services and the addition of three (3) full time employees. While the three (3) full time employees (FTE) were approved in the 2017 IT Services Operating Budget, for a total of 17 full time employees, the additional Technician II and Desktop Specialist / Packager positions were never filled in order to mitigate the impact of Muskoka Lakes leaving the shared service. Page 1 of 7

15 The 2018 IT Services Operating Budget was reduced by two (2) FTEs for a total of 15 FTEs and a summer student was added which offset the lost revenue resulting from the Township of Muskoka Lakes and the Muskoka Lakes Public Library not renewing their contract for IT Services in Analysis 1. Current Workload and Service Levels The following chart illustrates the reduction in the number of systems and physical locations supported between 2017 and 2018, resulting from the departure of Muskoka Lakes, as well as the decrease in IT Services staff complement Increase / (Decrease) Supported Desktop Systems Physical (8%) Physical Locations (8%) IT Services Staff, including Administration (12%) IT Services, Technical Staff Only (17%) There has been a greater decrease in the number of staff than in the physical systems and locations to be supported. In addition, there has been no reduction to the size or maintenance of the Data Center, supporting infrastructure, or in the number of virtual desktop systems. In fact, IT Services has only seen growth. Since early 2017, the following services have been or will be added to IT Services staff workload: District s Port Carling Locks including: o the installation of WiFi services to support Point of Sale (POS) transactions; o external network connectivity to provide vendor access for the support and maintenance of the locks; and o the installation of monitoring cameras. Pines Long Term Care: o An integrated network with patient care systems and the District s network which creates an additional level of complexity, and may have an impact on the Pines operations. New Physical Facilities: o The Paramedic Services and Fire Hall including desktop computing, audio visual and telecommunications; o A new wing at a wastewater facility opening September 2018; and o A new scale house at the Bracebridge Landfill location with the build starting in the spring of Audio Visual (AV) services, in particular: o The Paramedic Services and Fire Hall board room and monitoring equipment installations; and o The District s webcasting services in Council Chamber. o Audio Visual services used to be separate from IT Services, however with the ever changing technology, there needs to be collaboration with IT Services to ensure smooth communication between AV and networking. Page 2 of 7

16 Software Evaluation process and new Software applications: o 15 applications deployed out of 17 requested in 2017; o 12 applications deployed to date out of 23 reviewed in 2018; and o 15 currently in review. o It takes on average 11 hours for IT Services staff to go through each software evaluation review process. Security training and awareness programs for Participants. The following infrastructure activities have been requested of IT Services, and are currently in progress: Analysis of the network infrastructure that supports the District s Engineering and Public Works (EPW) supervisory control and data acquisition (SCADA) systems that monitor the water facilities; Installation of three (3) security cameras at three (3) District EPW salt storage areas; Installation of 200 security cameras at ten (10) District Affordable Housing Units over the next two (2) years; Investigation and implementation of a pilot project to build an in-house IT Services supported wireless telecommunications service between 70 Pine Street and external District and Gravenhurst locations. The goal is to replace current poorly serviced infrastructure offered by local telecommunication providers for any Participant; and Review and analysis for the reprogramming of network firewalls for the District s SCADA system in comparison to the current provider. The IT Services quote came in well under the external quote. Current Staffing Within IT Services there are two types of work that are managed: scheduled and demand. Scheduled work includes, and is not limited to deployment of computer systems, application upgrades, security patching of desktop and server operating systems, database maintenance and backup maintenance, and represents approximately 47% of the internal resources. Demand work load is managed by a triage process through the IT Service Desk. A work order is created and resolved. If it cannot be resolved it is assigned to 2 nd tier of support, either a specialist in applications and databases, or a specialist in hardware, operating systems and networking. If the issue still cannot be resolved and indicates an underlying problem, it is triaged to a 3 rd tier of support. This is a typical process for all Service Desks. The following chart illustrates the number of staff available at each level. State IT Staff Function # of Staff Responsibility Initial Call Service Desk 2 Best attempt 1 st call resolution Escalation to 2 nd Tier Problem Solving Technician II *1 3 Address issue at hand if not resolved at first call. Escalation to 2 nd Tier Problem Solving Applications Analyst *1 3 Address issue at hand if not resolved at first call. Escalation to 3 rd Tier Infrastructure Analyst *1 2 Typically resolving a larger underlying problem. *1 It should be noted that the staff in these functions have other daily operational duties beyond the demand work, including projects, development, hardware delivery and system deployments. Page 3 of 7

17 The Service Desk receives on average 50 work orders each day. See Schedule A for Work Order Volume charts. Even with the departure of Muskoka Lakes, the annual volume of demand work orders is projected to be 13,313 in With the reduction of two staff positions, the ability to manage these demand work orders has been compromised. This is demonstrated in the second chart in Schedule A which shows that although the backlog of work orders has dropped since June 2017, the total backlog is 733 work orders which is 22% above the number from January It should also be noted that Report ITSC was presented to the ITSC on March 1, 2018 regarding workload; due to a concern raised by the Participating Municipalities regarding the lack of IT Services coverage during staff leaves such as vacation. There are three (3) Technician II s that are stationed at the three (3) main Participating Municipalities. When a Technician II is sick or on vacation, there is a reduction in service levels which is noticed by the Participants. 2. Service Satisfaction Levels A number of surveys have been conducted in the past six months that indicate staff at the Participants feel constrained from implementing technology solutions based on the current IT Service staff levels. a. IT Services Business Vision Survey An IT Satisfaction Scorecard survey was launched by Info-Tech in June 2018 and was distributed to 96 management members at the Participating Municipalities and Participating Libraries. The goal of the survey was to understand staff s current level of satisfaction with IT Services, solicit suggestions for improvements and provide a biennial measurement. Overall the summary illustrated that staff rely heavily on and feel constrained by technology and the IT Services department. Staff would like to be more innovative, gain efficiencies in their processes and receive more collaborative support from IT Services. Comments in the survey recognized that the IT Services division is not staffed to be able to support innovation, as they continue to deal with the day to day demands. See Schedule B for specific scorecards on capacity and dependency on IT Services. b. Employee Engagement Survey, District of Muskoka Within the second Employee Engagement survey there was opportunity for staff to provide written feedback to the Chief Administrative Officer regarding recommendations to improve the District. This feedback was summarized into themes that were then shared with the departments. One theme that was highlighted across all District departments was a recommendation to increase the number of IT staff. This recommendation is consistent with the IT Services Business Vision survey above. c. IT Staffing Diagnostic IT Services initiated an internal IT Satisfaction Scorecard survey using Info-Tech Services in August The goal of the survey was to illustrate where IT time is spent and demonstrate the correlation between staffing and business satisfaction. Page 4 of 7

18 Overall, IT staff are spending 47% of their time on administrative duties including meetings and . Info-Tech has confirmed this level of administration is 19% higher than other IT Service departments. IT Services staff will use the results of the survey to look for opportunities of re-alignment between how IT staff are deployed and the priority of the service areas that staff are working on and report back to ITSC on efficiencies gained. See Schedule C for a summary of IT Allocation by function and activity type. 3. External Consulting and Alternative Considerations a. MUSH (Municipalities, Universities, Schools, Hospitals) IT Services staff investigated the possibility of outsourcing services and had meetings with representatives from Muskoka Algonquin Healthcare (MAHC), Trillium Lakelands District School Board (TLDSB), an area municipality and another local IT Service provider. All parties agreed that they struggle with the lack of technical skilled trades in Muskoka, in particular networking and infrastructure *1. One party admitted that they are looking to move away from providing IT support services. Another party requested quotes from District s IT Services for specific technology services. Overall MAHC and TLDSB are interested in pursuing the concept of job sharing based on functionality, as they would be interested in receiving support for services such as networking and infrastructure, however both parties admitted that they did not have extra staff to spare and agreed that this concept would take time to implement. Skills required for IT professionals are vast and specific for the required task at hand. There are many specific roles in the technology sector including program developers, database administrators, network administrators and architects, computer support specialist and information security analysts. The skills required are specific to each technical job. As everyone knows, the skills of an electrician are very different from that of a plumber. The same is true for skills of a network administrator and a server administrator. With the increase in the use and type of technology, operations can no longer employ IT Generalists. b. Recruiting Firm IT Services staff reached out to ARES Staffing Solutions, a recruiting firm specializing in technical resources and a vendor of record with the Government of Ontario. While ARES has been successful in assisting IT Services recruit full time staff, they do not have a pool of technical resources to pull from in the Muskoka area. Realistically, relying on external vendors to assist in day to day operations is not an effective process. It takes approximately a year to onboard IT Services staff so that they have a solid understanding of the current operations. Retaining a contractor requires time and effort from existing staff to onboard, mentor and teach the current approach. Staff spend time getting the contractors up to speed, versus Page 5 *1 Infrastructure is the foundation or framework that supports a system or organization. In computing, information technology infrastructure is composed of physical and virtual resources that support the flow, storage, processing and analysis of data.

19 servicing the current customers, only to have the contractor leave with the skills and knowledge they have gained. A consultation with an Info-Tech resource member regarding the approach for outsourcing a desktop deployment service confirmed the value of hiring your own staff versus outsourcing. IT Services staff recommend building the skills in-house for effective operations, versus hiring temporary, external consultants. 4. Recommended Staffing Based on the addition of services to the IT Services portfolio, the increase in both scheduled and demand work and the results of the satisfaction surveys which indicated that Participants are constrained by IT Services, it is recommended to increase the IT Services complement by one Technician II. This position will be added to the current complement of three (3) Technician II positions and will be responsible for, but not limited to 2 nd tier of support, imaging and deployment of computers systems, basic networking at remote locations and deployment of other hardware and peripherals at all locations. Financial Considerations The following chart illustrates the impact to the 2019 and 2020 IT Services Operating Budgets with the addition of a Technician II FTE. Additional Staffing Resource Costs 2019 ($) 2020 ($) *2 Technician II (Class 7) 83,435 85,104 Support Services (computer) 5,130 5,233 Project Revenue (Rentals / Labour) *1 (23,625) (24,098) Total Expenditures 64,940 66,239 Support Services Recovery (District) (42,147) (42,990) Estimated Recoveries from Participants (excluding District) (22,793) (23,249) *1 From Table 1 *2 Assuming a 2% increase from 2019 to 2020 Net Levy 0 0 It should be noted that based on discussion from report ITSC regarding utilizing the non-core services income towards funding a staffing resource, a billable analysis was performed to determine if this idea is an option. The table below shows that staff are projecting revenue from non-core activities and rentals totalling $23,625 for 2019 and $24,098 for These figures are based on the actuals from 2017 and 2018 and assume that similar activities will occur in 2019 and Staff has included this projected revenue in the table above to partially offset a portion of the additional staff cost ($) 2018 (June YTD) ($) 2019 Projections ($) Labour $18,560 $5,160 14,440 Rentals $9,725 $4,323 9,185 Total Revenue $28,285 $9,483 $23,625 Table 1 Page 6 of 7

20 Based on the current allocation methodology, the following is the impact per Participant in 2019 and 2020 resulting from the addition of one Technician II. Participant Accommodation Considerations There is physical space in the IT Services division to accommodate one (1) additional staff at no additional expense. Communications This report, and feedback received will be shared with members of the TASC and IT Services staff. Strategic Priorities Allocation (%) The recommendations contained in this report support and substantially move forward all of the IT strategic priorities: 1. Modern, Stable and Secure Computing 2. IT as a Trusted Advisor 3. Efficient Sharing of IT Resources 4. Realize Full Value of IT Investments 5. Acquire, Develop and Retain Skilled IT Staff Total Increase in 2019 by Participant ($) Total Increase in 2020 by Participant ($) Bracebridge ,150 8,312 District ,147 42,990 Gravenhurst ,423 9,611 Bracebridge Public Library ,674 2,728 Gravenhurst Public Library ,546 2,598 Total ,940 66,239 Respectfully submitted, original signed by Chantelle Denstedt Director, IT Services Julie Stevens Commissioner of Finance and Corporate Services Page 7 of 7

21 70 PINE STREET, BRACEBRIDGE, ONTARIO P1L 1N3 Telephone (705) / Fax (705) / (705 area code) To: From: Chair and Members Corporate and Emergency Services Committee Jeff Yeo Director, Facilities and Support Services Date: September 17, 2018 Subject: Facilities Services Department Staffing Capital Project Coordinator Contract Extension Report: CES Recommendation THAT the Draft 2019 Tax Supported Operating Budget include the costs to extend the temporary Capital Project Coordinator position in the Facilities Services Department staff complement until the end of 2019; AND THAT all costs associated with this extension be fully funded from approved capital project budgets with no impact to the net levy. Origin This report is a result of a staff review of available staffing resources to coordinate and oversee projects planned for implementation and completion in All staffing requests are to be presented to each respective Standing Committee in the fall and if approved included in the following year s budget for consideration during budget deliberations. Analysis In July 2017, District Council approved the temporary addition of one full time temporary Capital Project Coordinator position to properly oversee housing capital projects that had been added to the work schedule as a result of grant funding received from the Social Infrastructure Fund (SIF) and Social Housing Improvement Program (SHIP) (Report CES ). The position has been assigned to a number of Capital projects in Below is a list of some of the projects the position is currently involved in: Project Estimated Completion HV GP Upgrade Phase 1 - Soda Ash and Blower Building Fall GH STP Roof Replacement Fall MT WTP Roof Replacement Fall 2018 Page 1

22 Boiler Replacement (175 Lofty Pines) Fall Alice Street Entrance Reno and Common Area Upgrades End of Cambrian Court New Units Spring Solar Generation Net Metering Summer 2019 In consideration of the expected completion of the projects which this position is currently assigned to, projects included in the Draft 2019 Capital Budget and Forecast and added project pressures related to asset management, accessibility and energy reductions, staff expect that this recommendation will ensure sufficient staffing resources necessary to complete the following projects planned in 2019: Project Estimated Completion Cambrian Court New Units Spring Solar Generation Net Metering Summer Electricity Efficiency Audit End of Rosewarne Maintenance Facility End of Lofty Pines MUA System Upgrades End of Pines Interior Finishes Repairs and Replacements Fall of Pine Street Roof Access Guards and Anchors End of and 200 Oakwood Heights Elevator Upgrades Fall of 2019 The Pines Muskoka Room Balcony Repairs End of Pine Street Accessibility Improvements End of Pines Inactive Archives Room End of 2019 Financial Considerations Utilizing outside consultants for capital project coordination, based on historical cost estimates for these services, range between 20% 30% more than using internal staff before any consideration of expenses or disbursements typically charged by outside consultants. In addition, to the favourable costing, utilizing internal staff allows for other capital projects to be redistributed among the staff complement and provides greater cost and work control in the event of any planned or unforeseen changes in assigned project scope. The extension of the temporary Capital Project Coordinator position for the full year in 2019 will ensure sufficient staffing resources to properly manage and coordinate assigned projects with no impact on the net levy. Page 2

23 The following table shows the costs and sources of funding associated with including the position for 12 months in 2019 and confirms no impact on the net levy as a result of this recommendation: Communications Expenditures Salaries and Benefits 12 months $81,700 Office Supplies (Cell Phone and Computer) $5,950 Total Expenditures $87,650 Sources of Funding Social Infrastructure Fund - Cambrian Court $12, Electricity Efficiency Audit $15, Solar Generation Net Metering $10, Rosewarne Maintenance Facility $10, Lofty Pines MUA System Upgrades $5, Pines Interior Finishes Repairs and Replacements $5, Pine Street Roof Access Guards and Anchors $5, and 200 Oakwood Heights Elevator Upgrades $5,000 The Pines Muskoka Room Balcony Repairs $5, Pine Street Accessibility Improvements $5, Pines Inactive Archives Room $10,000 Total Sources of Funding $87,650 Pending the approval of this recommendation, notice of an extension will be provided in accordance with all District policies, procedures and applicable Collective Agreements. Strategic Priorities Click on icons below to view strategies under each priority area: s 2.3, 2.4 s 5.1 Respectfully submitted, Original signed by Jeff Yeo, A.Sc.T. Director, Facilities and Support Services Original signed by Julie Stevens, CPA, CA Commissioner of Finance and Corporate Services Page 3

24 70 PINE STREET, BRACEBRIDGE, ONTARIO P1L 1N3 Telephone (705) / Fax (705) / (705 area code) To: From: Chair and Members Corporate and Emergency Services Committee Julie Stevens Commissioner of Finance and Corporate Services Date: August 23, 2018 Subject: Study of the Cost per Service provided to each Lower Tier in the District Report: CES Recommendation This report is provided for information. Origin On June 11, 2018, the Council of the Township of Georgian Bay approved a motion that reads: BE IT RESOLVED THAT Council of the Township of Georgian Bay requests that the District of Muskoka hires a consultant to undertake a cost study to determine what the cost per service provided is for each lower tier municipality within the District; AND THAT that a Steering Committee be appointed with membership from all of the lower tiers to oversee this process; AND THAT this resolution and report be forwarded to all the other Muskoka Municipal Councils for support. The associated report is available through the following link: Township of Georgian Bay, Seceding from District. Analysis The resolution approved by the Council of Georgian Bay was forwarded to the District. District staff is seeking direction from District Council regarding the request that the District hire a consultant to undertake a cost study to determine the cost per service provided to each of the lower tier municipalities within the District. Should District Council agree in principle to the cost study and proposed Steering Committee, District Council will need to provide clarity on who should be included on the proposed Steering Committee; municipal staff, elected officials or a combination of both. In addition the following steps will need to be completed by District staff in conjunction with the appointed Steering Committee: Page 1

25 Establish the terms of reference for the Steering Committee; Determine the scope of the project or cost study; Determine how the cost of the project will be allocated; Evaluate the staff time required to gather the required information and provide a report on these findings to District Council to consider the project s prioritization; Undertake a procurement process and award the contract; Identify members of an Internal District Project Team to provide the necessary information to the consultants; Assemble the Steering Committee, Consultant and Internal Project Team to outline the requirements of the project, the timeline for completion and necessary documentation; Establish regular meetings with the stakeholders identified above to ensure the project is proceeding on schedule and within scope; and Update District Council on the project s progress on an as-needed basis. It should be noted that the new Provincial government has indicated that it will be undertaking a review of regional government across the Province. Informal consultations were to begin during the annual conference of the Association of Municipalities of Ontario scheduled for August 19 th to August 22 nd. Staff are not certain whether additional formal consultations will take place in the fall of District Council could choose to defer any action related to the requested cost study and Steering Committee until the proposed provincial review of regional governments is undertaken. Financial Considerations Staff has contacted one consulting company who estimated that this project could cost between $40,000 and $150,000. The representative suggested that in order to obtain a meaningful product, the District should budget at the high end of the range. The challenge that was discussed is that the District does not currently utilize activity based costing which would track costs for services by lower tier municipality. In addition, there are some services that are simply not allocated according to boundaries. In order to evaluate the cost per service, an allocation methodology for each service would need to be developed. There is currently no budget for this project included in the 2018 Tax Supported Operating or Capital Budget and Forecast. However, the Delegation of Authority By-law that was approved by District Council and came into effect following the nomination day when the District was declared lame duck allows the Chief Administrative Officer to approve expenditures that are not included in the budget up to maximum of $500,000. Communications Staff from the Township of Georgian Bay have confirmed that no other municipalities have notified them of their support for the Georgian Bay resolution. Should District Council approve the cost study in principle, and provide clarity on the composition of the Steering Committee, District staff will convene meetings to complete the steps noted in the Analysis section. Should District Council choose to not move forward with the project or defer any action until the outcome of the Provincial review on regional governments, District staff will notify each lower tier municipality of this decision. Page 2

26 Strategic Priorities Click on icons below to view strategies under each priority area: s 2.3, 2.4, 2.9 Respectfully submitted, Original signed by Julie Stevens, CPA, CA Commissioner of Finance and Corporate Services Original signed by Michael Duben, B.A. LL.B. Chief Administrative Officer Page 3

27 70 PINE STREET, BRACEBRIDGE, ONTARIO P1L 1N3 Telephone (705) / Fax (705) / (705 area code) To: From: Chair and Members Corporate and Emergency Services Committee Julie Stevens Commissioner of Finance and Corporate Services Fred Jahn Commissioner of Engineering and Public Works Date: September 17, 2018 Subject: 2019 Solid Waste Tipping Fees Report: CES Recommendation This report is provided for information. Origin During discussions regarding the 2019 budget guidelines, members of the Corporate and Emergency Service Committee requested that staff prepare a report regarding solid waste tipping fees and consider moving all fees to full cost recovery. Analysis Alternative Fee Structure Options When reviewing changes in the solid waste fee structure it is important to consider the objectives or guiding principles. From staff s review of other studies on fees and rates, the following guiding principles could be considered: Affordability Financial sustainability Equity Protection of the environment Prior to 2017, the tipping fees for residential and commercial waste were approximately $130 per tonne and did not reflect the actual cost of handling and disposing of waste in the District which is estimated to be $190 per tonne based on the 2018 budget. Annual tipping fee increases for both sectors were based on inflation. As a result, taxation was utilized to subsidize the difference between the actual cost of handling waste and disposal and the tipping fee revenue. As noted in Report PW , the strategy was to start a two-tier tipping fee structure with the residential tipping fee increasing with inflation and the commercial tipping fee increasing over a Page 1