Corporate Services Committee

Report

Meeting #:	17th Meeting of the Corporate Services Committee
Date:	Tuesday, September 25, 2018 at 12:30 P.m. - 1:00 P.m.
Location:	Council Chambers

PRESENT:

• Councillors J. Helmer (Chair),
• J. Morgan,
• P. Hubert,
• M. van Holst,
• and J. Zaifman

ABSENT:

• Mayor M. Brown

ALSO PRESENT:

• A. Barbon, D. Bordin, M. Butlin, B. Card, I. Collins, B. Coxhead, J. Davies, K. Dawtrey, J. Edmunds, M. Galczynski, A. Hagan, M. Johnson, R. Lamon, J.P. McGonigal, J. Millson, K. Scherr, A. Thompson, B. Warner, B. Westlake-Power and R. Wilcox.

   

  The meeting is called to order at 12:30 PM.

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1.

Disclosures of Pecuniary Interest

Councillor J. Morgan discloses a pecuniary interest in Item 2.1, having to do with the City of London 2019 Provincial and Federal Budget Submissions, specific to those matters related to Bus Rapid Transit, as his employer, Western University, has an interest in the project.   

2.

Consent

• That Items 2.3, 2.5 and 2.7 BE APPROVED.

  
  

  Yeas: (5)	J. Helmer, J. Morgan, J. Zaifman, M. van Holst, and P. Hubert
  Absent: (1)	Mayor M. Brown

  
  Motion Passed (5 to 0)

2.3

2018 Mid-Year Capital Budget Monitoring Report

• That, on the recommendation of the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer, the following actions be taken with respect to the 2018 Mid-Year Capital Monitoring Report :
  
  a)    the above-noted report BE RECEIVED for information, it being noted that the life-to-date capital budget represents $1.9 billion with $1.3 billion committed and $0.6 billion uncommitted; it being further noted that the City Treasurer, or designate, will undertake the housekeeping adjustments identified in the Report, in accordance with the Multi-Year Budget Policy adopted by By-law No. CPOL.-45-241;
  
  b)    the status updates of active 2015 life-to-date capital budgets (2015 and prior) having no future budget requests, appended to the staff report dated September 25, 2018 as Appendix “B”, BE RECEIVED for information;
  
  c)    the following actions be taken with respect to the completed Capital Projects identified in Appendix “C”, as appended to the staff report dated September 25, 2018, which have a total of $6.2 million of net surplus funding:
  
  i)      the Capital Projects included in Appendix “C” BE CLOSED;
  ii)     the following actions be taken with respect to the funding associated with the Capital Projects approved for closure in c) i), above:
  
  Rate Supported
  A)   capital receipts funding of $264,943 BE TRANSFERRED to Capital Projects in a net deficit position;
  B)   authorized debt financing of $860,123 BE RELEASED resulting in a reduction of authorized, but unissued debt;
  C)   uncommitted reserve fund drawdowns of $1,511,647 BE RELEASED from the reserve funds which originally funded the projects;
  
  Non-Rate Supported
  D)   uncommitted reserve fund drawdowns of $2,936,042 BE RELEASED from the reserve funds which originally funded the projects;
  E)   authorized debt financing of $887,903 BE RELEASED resulting in a reduction of authorized, but unissued debt; and
  F)    other net non-rate supported funding sources of $226,254 BE ADJUSTED in order to facilitate project closings.

  
  
  
  Motion Passed

2.5

Asset Review: Class A - Vacant Land and Buildings and Class C - Major Venues, Non-Core Services and Assets

• That, on the recommendation of the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer the following actions be taken with respect to Asset Review: Class A and Class C:
  
  a)            the reporting of the proceeds from the sale of surplus lands, and the update on the City of London Class C – Major Venues, Non-Core Services and Assets BE RECEIVED for information;
  
  b)            the Civic Administration BE DIRECTED to allocate $434,716 of net proceeds from the completed sales of surplus land as per the Council approved Sale of Major Assets Policy;
  
  c)            the Civic Administration BE DIRECTED to take no further action regarding the review of the following City-owned heritage assets:
  
  i)              Baty House;
  ii)             Eldon House/Coach House/Greenhouse/ Interpretive Centre/Museum;
  iii)            EP Williams Estate/Gatehouse;
  iv)           Flint Cottage/Flint Shelter/ Springbank Pumphouse;
  v)            Grosvenor Lodge/Carriage House;
  vi)           Park Farm; and,
  
  d)            the Civic Administration BE DIRECTED to bring forward a detailed business case as part of the 2020-2023 Multi-Year Budget to support the costs associated with the transition plan and subsequent disposition of T-Block building.

  
  
  
  Motion Passed

2.7

Vehicle Donation to ReForest London

• That, on the recommendation of the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer, notwithstanding the Procurement of Goods and Services Policy the following actions be taken with respect to the vehicle donation to ReForest London:
  
  a)    the proposed by-law appended to the staff report dated September 25, 2018 as Appendix “A” BE INTRODUCED at the October 2, 2018 meeting of the Municipal Council to make a grant of a City-owned surplus truck to ReForest London; and
  
  b)    the Civic Administration BE AUTHORIZED to transfer $9,500 from the Community Investment Reserve Fund to the Vehicle & Equipment Reserve Fund.

  
  
  
  Motion Passed

2.1

City of London 2019 Provincial and Federal Budget Submissions

• That, on the recommendation of the Director, Community & Economic Innovation, the following actions be taken with respect to the City of London’s 2018 Budget Submissions:

  
  a)            the Civic Administration BE DIRECTED to submit the City of London 2019 Provincial Budget Submission, as appended to the staff report dated September 25, 2018, to the Government of Ontario as part of the provincial pre-budget submission process;

  b)            the Civic Administration BE DIRECTED to submit the City of London 2019 Federal Budget Submission, as appended to the staff report dated September 25, 2018, to the Government of Canada as part of the federal pre-budget submission process; and,

  c)         the report dated September 25, 2018 with respect to this matter, BE RECEIVED.

  
  Motion Passed

  Voting Record:

  
  
• Moved by: J. Zaifman
  Seconded by: P. Hubert

  Motion to approve parts a) and b):

  That, on the recommendation of the Director, Community & Economic Innovation, the following actions be taken with respect to the City of London’s 2018 Budget Submissions:
  
  a)            the Civic Administration BE DIRECTED to submit the City of London 2019 Provincial Budget Submission, as appended to the staff report dated September 25, 2018, to the Government of Ontario as part of the provincial pre-budget submission process; and,
  
  b)            the Civic Administration BE DIRECTED to submit the City of London 2019 Federal Budget Submission, as appended to the staff report dated September 25, 2018, to the Government of Canada as part of the federal pre-budget submission process.

  
  

  Yeas: (3)	J. Helmer, J. Zaifman, and P. Hubert
  Nays: (1)	M. van Holst
  Recuse: (1)	J. Morgan
  Absent: (1)	Mayor M. Brown

  
  Motion Passed (3 to 1)
• Moved by: J. Zaifman
  Seconded by: P. Hubert

  Motion to approve part c):

  c)         the report dated September 25, 2018 with respect to this matter, BE RECEIVED.

  
  

  Yeas: (5)	J. Helmer, J. Morgan, J. Zaifman, M. van Holst, and P. Hubert
  Absent: (1)	Mayor M. Brown

  
  Motion Passed (5 to 0)

2.2

Reserves Rationalization Report

• Moved by: J. Morgan
  Seconded by: P. Hubert

  That, on the recommendation of the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer, the following actions be taken with respect to The Corporation of the City of London reserves:
  
  a)    the following six (6) reserves BE APPROVED as the reserves of The Corporation of the City of London:

  i)      tax Supported Budget – Operating Budget Contingency Reserve and Operating Efficiency, Effectiveness & Economy Reserve;

  ii)     wastewater & Treatment Rate Supported Budget – Wastewater Budget Contingency Reserve and Wastewater Efficiency, Effectiveness & Economy Reserve;

  iii)    water Rate Supported Budget – Water Budget Contingency Reserve and Water Efficiency, Effectiveness & Economy Reserve;
  
  b)    the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer BE AUTHORIZED to take any and all actions necessary to align the reserves approved in a), above, with the provisions of the City’s Reserve and Reserve Fund Policy; and
  
  c)    the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer BE AUTHORIZED to take the following actions with respect to winding down and terminating reserves currently held by The Corporation of the City of London that are no longer included in the reserves approved in a) above:

  i)      transfer reserve balances identified in Appendix B to the Operating Budget Contingency Reserve and terminate reserves after the transfers are complete;

  ii)     transfer reserve balance identified in Appendix C to the City Facilities Reserve Fund and terminate reserve after the transfer is complete; and

  iii)    convert reserves identified in Appendix D into reserve funds, terminate reserves after the conversions are complete and balances have been transferred, it being noted that Civic Administration will bring forward appropriate reserve fund by-laws to a future Corporate Services Committee meeting.

  
  

  Yeas: (5)	J. Helmer, J. Morgan, P. Hubert, M. van Holst, and J. Zaifman
  Absent: (1)	Mayor M. Brown

  
  Motion Passed (5 to 0)

2.4

2018 Operating Budget Mid-Year Monitoring Report - Property Tax, Water, Wastewater and Treatment Budgets

• Moved by: J. Morgan
  Seconded by: M. van Holst

  That, on the recommendation of the Managing Director, Corporate Services and City Treasurer, Chief Financial Officer, the following actions be taken with respect to 2018 Mid-Year Monitoring:
  
  a)        the 2018 Operating Budget Mid-Year Monitoring Report for the Property Tax Supported Budget (refer to Appendix A as appended to the staff report dated September 25, 2018), Water, and Wastewater & Treatment Budgets BE RECEIVED for information; it being noted that the year-end positions for the net corporate projections below could fluctuate significantly based on factors beyond the control of Civic Administration:
  
  i)              Property Tax Supported Budget surplus of $2.1 million as identified by Civic Administration, Boards and Commissions. The projected year-end position includes the contributions to Reserve Funds listed in items b) and c);
  ii)             Water Rate Supported Budget surplus of $2.7 million;
  iii)            Wastewater & Treatment Rate Supported Budget surplus of $4.7 million;
  
  b)        the Civic Administration BE AUTHORIZED to contribute the Housing Development Corporation’s year-end operational surplus, if any, to the Housing Development Corporation Reserve Fund which will be used to support housing initiatives and future work of the Housing Development Corporation;
  
  c)        the Civic Administration BE AUTHORIZED to contribute Information Technology Services year-end operational surplus, if any, to the Technology Services Reserve Fund to be used to support investments in corporate systems;
  
  d)        the Civic Administration BE AUTHORIZED to contribute to or drawdown from the Water Capital Reserve Fund to balance year-end operations of the Water Budget should the budget be in a surplus/deficit position;
  
  e)        the Civic Administration BE AUTHORIZED to contribute to or drawdown from the Wastewater Rate Stabilization Reserve to balance year-end operations of the Wastewater & Treatment Budget should the budget be in a surplus/deficit position;
  
  f)         the Civic Administration BE AUTHORIZED to allocate Wastewater & Treatment Budget year-end surplus from the Wastewater Rate Stabilization Reserve to the Sewage Works Reserve Fund should the Wastewater Rate Stabilization Reserve achieve its target balance of 2.5% of the Wastewater & Treatment Revenue Budget, noting that in previous years this Reserve Fund has been drawn from to offset operational deficits; and
  
  g)        the Civic Administration’s contribution of $1,989,623 ($1,760,121 – Property Tax Supported; $76,925 – Water; and $152,577 – Wastewater & Treatment) to the Efficiency, Effectiveness and Economy Reserve in 2018 BE RECEIVED for information.

  
  

  Yeas: (5)	J. Helmer, J. Morgan, J. Zaifman, M. van Holst, and P. Hubert
  Absent: (1)	Mayor M. Brown

  
  Motion Passed (5 to 0)

2.6

Update #2: Harassment and Discrimination - Third Party Review

• Moved by: J. Zaifman
  Seconded by: J. Morgan

  That, on the recommendation of the City Manager and the Managing Director, Corporate Services and Chief Human Resources Officer, the following actions be taken:
  
  a)    the staff report dated September 25, 2018 BE RECEIVED for information; and
  
  b)    the Civic Administration BE AUTHORIZED to exceed Council approved spending limits up to an additional $200,000 for this review as necessary to complete the work which will be awarded as a Single Source Procurement as per section 14.4 (b) of the Procurement of Goods and Services Policy. 

  
  

  Yeas: (5)	J. Helmer, J. Morgan, P. Hubert, M. van Holst, and J. Zaifman
  Absent: (1)	Mayor M. Brown

  
  Motion Passed (5 to 0)

3.

Scheduled Items

3.1

Tax Adjustment Agenda

• Moved by: P. Hubert
  Seconded by: J. Zaifman

  That the recommendations contained in the Tax Adjustment Agenda dated September 25, 2018 BE APPROVED; it being noted that there were no members of the public in attendance to speak before the Corporate Services Committee, at the public hearing associated with the Tax Adjustment Agenda.

  
  

  Yeas: (5)	J. Helmer, J. Morgan, J. Zaifman, M. van Holst, and P. Hubert
  Absent: (1)	Mayor M. Brown

  
  Motion Passed (5 to 0)

  Voting Record:

  
  
• Moved by: P. Hubert
  Seconded by: M. van Holst

  Motion to open the meeting to the public for comment.

  
  

  Yeas: (5)	J. Helmer, J. Morgan, P. Hubert, M. van Holst, and J. Zaifman
  Absent: (1)	Mayor M. Brown

  
  Motion Passed (5 to 0)
• Moved by: P. Hubert
  Seconded by: M. van Holst

  Motion to close the meeting to the public for comment.

  
  

  Yeas: (5)	J. Helmer, J. Morgan, P. Hubert, M. van Holst, and J. Zaifman
  Absent: (1)	Mayor M. Brown

  
  Motion Passed (5 to 0)

4.

Items for Direction

None.

5.

Deferred Matters/Additional Business

None.

6.

Confidential (Enclosed for Members only.)

• Moved by: P. Hubert
  Seconded by: J. Zaifman

  That the Corporate Services Committee convene In Closed Session at 2:07 PM, for consideration of a matter pertaining to reports, advice and recommendations of officers and employees of the Corporation concerning labour relations and employee negotiations in regards to one of the Corporation's unions and litigation or potential litigation affecting the municipality, and advice which is subject to solicitor-client privilege, including communications necessary for that purpose. 

  
  

  Yeas: (5)	J. Helmer, J. Morgan, J. Zaifman, M. van Holst, and P. Hubert
  Absent: (1)	Mayor M. Brown

  
  Motion Passed (5 to 0)

  The Corporate Services Committee convened in closed session from 2:07 PM to 2:12 PM.

  
  

7.

Adjournment

The meeting adjourned at 2:13 PM.