Mike Tess, council chambers, April 25th.
Hey, good morning. I'll call the council meeting, regular schedule council meeting for April 25th to order.
You know, something in the, I'm going to rely on everybody's help here today. From the outside, calm, cool, collective. On the inside, I must whirl in traffic, so bear with me.
I'm going to ask you out the get go in case of a tie we've got six of us up here, what happens today?
Thank you, through Deputy Mayor Gerwin, and the event of a tie, a motion is lost.
In case of a tie it's passed, okay?
No loss.
Oh, okay.
I'm turning up my volume, I already got technical difficulties here.
Thank you.
I know something before we start the meeting, I'm going to do the county land acknowledgement that Sturgeon County recognizes that we're meeting on Treaty 6 territory, their traditional homelands of the Alexander and First Michelle nations, as well as Matys nations of Alberta number 4.
We're all treaty people and we love and cherish this place we call home and the land that provides for us.
a place where our families, friends, and other relatives live and grow.
We commit ourselves to becoming better, treaty people so that this place,
and those we love continue to thrive as long as the sun shines, the grass grows, and the river flows.
And Mr. Sopco, can we carry on with the first, no, no, no.
Now before I'm looking, I'm looking for a motion
for the April 25th regular council meeting to
Yeah, adoption of the agenda. Yeah, and
Councillor Komo has accepted that and
then we'll move on to the
You know, something, it'd be nice if all those in favor would vote.
Okay, thank you. And we'll move on to item 3.1, the April 11th, regular council meeting. I've already read the minutes, and thank you. Councilor Thoms is, and we're all going to vote on that now. All those in favor of accepting that. Thank you. Okay, further on, Mr. Sobko, we are still going to do items
Item 6.1. Yes, through you, Deputy Mayor Durwin, the first item is item 6.1.
The request for property tax cancellation due to fire loss for tax roll 3716005.
And Ms. Duquette will be presenting this item.
Thank you.
Good morning, Deputy Mayor Durwin and Council and members of the public with me today is actually Ms. Valerie Lawson.
And she's going to take us through this request for decision.
Good morning, Council and members of the public.
My name is Valerie Lossin and I'm the Senior Program Lead for Treasury and Financial Planning.
Valerie, you might want to get a little closer to the microphone.
We are bringing forward a request for decision to refund a portion of 2022 property taxes in the amount of $2,074 and $84 cents for tax roll 3716005.
On June 30th, 2022, a fire incident occurred that destroyed the residents' primary dwelling and
for significantly reduce the assessment value of the property.
On July 11th, upon being notified of the fire by protective services, assessment services investigated,
investigated the damage and the property.
This resulted in a reduction in assessment value from approximately $1 million down to a postfire assessment of 376,000.
The property owner has submitted a request to have 2022 property taxes
is adjusted based on the reduced value of the property.
In accordance with Sturgeon County's municipal property tax cancellation, reduction, refund, and deferral policy,
as well as past practices of considering similar situations.
Administration is recommending that $2,074 and $84 be refunded to the property owner.
This represents the pro-rated portion of the 2022 tax levy based on the revised property value.
After today's meeting, administration will notify the property owner of Council's decision, and with that we'd be happy to take any questions.
Thank you very much for the presentation. Any questions from Council?
None at all, okay then.
There we go. Councilor Stang.
Thank you, through the chair. That Council refund the 2022 property taxes in the amount of $2,074.84 for tax rule 371, 6005.
If I could speak to that, it's a truly unfortunate incident that we have to deal with that.
But I will wholeheartedly support this.
Councillor Thomms.
Thanks, three, Mr. Chair.
I'm definitely going to support this as well.
I'm glad we have the opportunity to be able to readjust things on compassionate grounds when
something is traumatizing as a fire occurs for somebody.
So absolutely going to support this and glad that in the past, as well as hopefully going forward,
we have the ability to contemplate these life circumstances.
I'm seeing no other questions then, I'll call the question, all those in favor.
And that looks like a unanimous decision, thank you very much.
Okay, we'll move on to item 6.3,
but that's okay with you, Mr. Southgo.
Yes, thank you, Deputy Mayor Durwin, and I believe Ms. McKinnis will be presenting this item.
Good morning, Deputy Mayor Durwin and members of Council.
For the record, I am Bonnie McGinnis, and I'm the manager of planning and development services.
Item 6.1 is in reference to an application to redistrict lands from A.G.A.
Agriculture to R.V.S. Recreation Vehicle Storage.
The recommendation is that council approve first reading and permit the application
to proceed to public hearing to allow the applicant to present and receive feedback from
the public and council on the proposal.
Jonathan Hems Kirk joins me here this morning and will present this item for council's
consideration after which we are available
to answer any questions from Council.
Perfect.
Thank you very much, Bonnie.
I'm just gonna get my presentation shared up here
on the screen for everyone.
Okay, we should be good to go.
Well, good morning, everyone.
For the record, my name is Jonathan,
he's planning and subdivision officer
treating a bylaw 1627-23,
which is an amendment to our land use bylaw.
So the parcel we're looking at today
is fairly southern in the county.
It's located directly south of Highway 37.
and just a few kilometers to the east of Highway 2.
Looking at some local context for this one,
we can see our subject parcel that is highlighted
in yellow that parcels within our agricultural district
currently.
Most of the parcels in the immediate vicinity
that you can see here on your screen
also share that same agricultural designation
with a few exceptions.
If we go a little bit north and east of Highway 37,
there is a one small existing RV storage operation
and a small general industrial parcel as well.
But for the most part, everything we're seeing here
in the area is egg.
Looking at the parcel itself, size wise,
it's roughly 68 and a half acres.
It is the east half of this quarter section.
There's been one existing parcel subdivided out there
in the northeast portion.
There is a homestead, roughly halfway down the parcel.
It's accessed via a direct approach from Highway 37.
Further to the south of that,
we have an existing agricultural operation, and in the far northwest corner we have a small
piece of land that's a little bit isolated from the remainder of the lot, which is the subject
of this application. So the applicants have come forward and they are proposing, rather,
to redistrict a portion of the lot, roughly nine and a half acres, from its current agricultural
cultural district to our RVS recreational vehicle storage district.
This would create split zoning in the parcel, as the remainder would remain agricultural,
continue to be cultivated, but this portion would become RV storage.
And the intent is to operate a business at that area, access from Highway 37.
And that would be a permitted use within this district.
In the application, it was outlined that in the opinion of our landowner,
that portion there highlighted in red that would be redistricted is isolated from the remainder of the parcel and would make a good position for Arby storage to take place.
Moving on to some of the details of the application. The proposal we have here is for a smaller scale Arby storage operation.
45 units is what they are applying for. They have outlined some of the grading changes in their plans that they would undertake if successfully redistricted.
They've also highlighted a six foot perimeter fence around the area in addition to gated
entries, solar lighting and security cameras to provide assurance to its users.
And lastly, noting that drainage in the area would be going to the north and to the east
through existing culverts and approaches towards the Highway 37 ditch.
Alberta Transportation and Economic Corridors has issued a roadside development permit for
this application for the 45-unit business.
As normal practice, we refer it out to several members of administration and a few comments
to share.
With respect to the application, any future development permit may require some further
details in accordance with general municipal servicing standards.
And the second comment we received is that at a size of 9 and a half acres and a proposal
of only 45 units, there is potential and capacity on these lands for more RB storage to occur,
we could have upwards of 200 units or so that could be allowable in this area, of course,
that would be subject to a new roadside development permit in the future and a new development permit
with the county, but something for consideration given the parcel size.
So lastly, for some relevant
policy and legislation, there is no area structure plan for this portion of the county and so we turn
into our municipal development plan to provide some policy direction and regulation.
Starting first with the neighborhood, this parcel is right on the boundary of a few
of our different neighborhoods in the county, but primarily is located within neighborhood
C, which purpose is to position Sturgeon County as an agricultural leader.
With respect to policy, there's a few here on the screen I'll just quickly touch on, starting
with 5.2.4, which identifies that the county should collaborate with current and future business
owners for opportunities for them to exist here in the county, which we are doing by taking
them through this redistricting process.
5.4.9 ensures that existing infrastructure and road corridors are able to accommodate
the proposed use and potential proposed growth.
In this regard, a roadside development permit has been issued, access would be done directly
via Highway 37.
And lastly, 5.5.14, notes that Council may consider this kind of development on a case-by-case
basis given that several criteria are met. In this case for the application, we don't have any
subdivision proposed. There are no service upgrades required. And lastly, we would need to show that
there is a demonstrated support from the local community, which we would look to achieve through a
future public hearing.
So with that administration would recommend that Council give first reading to
by law 16, 27, 23, allowing it to proceed to that public hearing stage to hear feedback
from any and all affected parties.
That will conclude my presentation and myself and the rest of our GM are happy to answer
any questions.
Thank you.
Thank you for that report.
A lot more detailed than normally that come before us.
I see the local councillor would like to ask a couple questions.
And thanks to you, Mr. Chair.
So I have a couple of questions. Number one, how does this proposal align with ramp?
First of all, how have we looked at that? And secondly, can you tell me how many RV parks we currently have in the county?
And how many specifically within Division 1 and 2 and maybe just off Highway 37 in that area, please?
Through Deputy Mayor Durwin to Councillor Tombs with regards to compliance with ramp.
The, these lands are primary agricultural lands, but, but ramp doesn't really speak to RV
storage.
It speaks more to sort of the particular uses that, that would be appropriate and some
of these diversified uses are appropriate under, under ramp.
So I guess there would be some consideration that this might not be considered agriculture,
culture, so there may be some consideration in that regard.
Go
ahead, Travis.
I'm Mr. Peter.
And thank you and through the chair, this is to you a supplement on that.
Something that the county is pursuing in the months to come is we are looking at the primate and
call them the marginal lands out in the county to come up with a policy that
And that will accommodate these RV, these storage applications in the future.
So as Council and the public consider these, there will be a model in a framework that will be able to accommodate it.
That certainly will be consistent with ramp but to be made in a sturgeon approach.
It's not clarification before I'm sorry just to further clarify also this is a redistricting
application which has no that does not need to be circulated to the EMRB only statutory
documents need to go to the EMRB for compliance.
Just follow up.
Sorry, and how many RV parks do we have in the vicinity or within the county as a whole
right now, and then I do have one additional question after that.
Thank you.
To answer your question through your deputy mayor to Councillor Thomson, don't have an exact number.
I know we did a bit of an analysis a while back, but perhaps something we can bring back for you for a definitive number as well as division specific as well.
Thank you, Councillor Sting.
Thank you, through the chair.
I know in the past, we've had concerns on Highway 37 considering the traffic load on that.
So having said that, what type of upgrades would be required if this rezoning would go through?
Because that would be substantial in thinking.
Through you, Deputy Mayor Durbin, to Councillor Stang, so with Alberta or, sorry, transportation, economic corridors,
issuing a roadside development permit, inciting no required upgrades for intersection upgrades, or lane tapers, or anything like that,
We can anticipate there's nothing needed in terms of road upgrades for this application.
Councillor Tombs.
Thanks, through you, Mr. Chair.
So my last question with respect to RV parks has there ever been any analysis done on
what occurs to the soil after?
I mean, we have a multitude of vehicles in there with a lot of fluids that could potentially
be leaking in and out of them.
We've talked about drainage, so we know that whatever is in there is likely going to be going
down into the drainage channel.
So can you tell me whether there's any issues with soil contamination and sterilization of
We don't really have any understanding with regards to, in terms of contamination with regards to what happens.
On, with regards to RV storage, most of the vehicles I would assume during the winter would have been winterized, so they would have, you know, most of the fluids would have been drained other than antifreeze. I'm not sure it would be any more significant than machinery in a farm yard or those types of things. I'm not sure it would be significantly different. Go ahead, Councillor Recomo. Thank you. Through the chair.
You mentioned that there's room for, they're looking at 45 room for up to 200 and in light of Councillor Stang's comments about highway 37 and, and reservations with how busy that road is, you know, the, the triggering point where it goes from 45 up to 200, would that trigger an AT look at going, okay, now we may maybe need a side road, and if so, do they own the secondary piece property where they can get over to the next gravel road?
on an access road.
Through you, Deputy Mayor Durbin, to Councilor Cuomo.
So to answer your first part of the question, applicants applying for 45 years, they have
not indicated to anyone at the county that they're looking to do more than that, starting
with a base.
There is potential room for growth.
As soon as they look to exceed past that 45 units, the county issues a development permit
for 45 units, even if they wanted to go up to 75 units, a marginal increase, it would
still require one a new development permit with the county, but also a new roadside development
permit with Alberta transportation. So Alberta transportation would look at the increased growth that's going to be in that area
Is it going to affect the highway or the new approaches needed that we looked at any any increase that we have that'll be taken care of.
Thank you any other questions
That being said that we have the local council
Read in the motion please
Three Mr. Chair
That council give first reading on by law 1627 slash 23 and if I may speak to this
I'm going to support this but I'm going to support this so that I can hear what the surrounding community has to say with respect to RV parks within the area.
I know there have been a number of applications over the last couple of years and like I say I'm curious to hear what the public has to say with respect to that type of business being brought into the area.
Yeah.
Anybody else? Just make one comment, like Councillor Tom was saying, you know,
in the eastern part of Canada, they are required now to lay down a liner and five inches
agrable and then reclaim that afterwards. So there's thoughts that maybe sometime in
the future that would happen, Sturgeon County, with the amount of RV sites we have.
Seeing
All those in favour?
I'll pass unanimously.
Thank you very much.
Okay.
So, 6.3 down.
Mr. Sopco.
Okay.
Thank you.
Deputy Mayor Durwin.
Administration recommends that Council moved item 7.1, which is a closed session item for
the Assessment Complaints Update for Rolls 2820000 and 4940000, so there will be a closed session
motion coming up shortly for a member of council to read.
Okay.
Thank you.
Councillor Thoms.
I can go ahead and put this in close session.
Thank you.
Thanks to you, Mr. Chair.
That council moved to a closed session at 9.22 a.m., pursuant to section 1972.
The municipal government acted in accordance with section 24 by some officials.
In section 25, disclosure harmful to economic and other interests of a public body of the freedom of information and protection of privacy act.
Thank you.
So I guess we'll give you time to clear the galley,
whoever can be here, all
these things.
All those in favor of going to the closed session, thank you.
Thank you.
motion. I feel as though I may be shouldn't until we go for it.
Gary, come
on.
Council Member,
you're going to read in the motion? Sure, again, thanks, through the chair, that council
direct administration to proceed as recommended by administration in the confidential request
for decision of item 7.1 of the April 25, 2023 regular council meeting agenda.
Thank you.
All those in favour?
We see a five to all those opposed? We have five to one decision there. And the next motion, please.
That the council requests for decision of the item 7.1 of the April 25, 2023 regular council agenda remain confidential in accordance with Section 24 advice from officials of the freedom of information and protection of privacy act.
All those in favor?
Fast unanimously.
Recess, Mr. Southgo.
Yes, thank you, Deputy Mayor Derwin.
Administration recommends that Council recess the Council meeting.
And if you can give just a couple of moments for us to transition to committee of the whole.
Take a five-minute break.
Thank you.
Five-minute break, then.
Thank you.
Regular Council.
Item 6.5.
And we have a-
Pardon me?
Yeah.
So any time you, ladies, are ready?
Okay, thank you.
So for the good afternoon, W.D. Mayor Durwin, Council and members of the public.
For the record, my name is Sabrina Duquette, and I'm the manager of corporate finance and treasury.
Today, we have two motions before Council, one to have the audited statements approved.
And another one to transfer the annual surplus to the general operating reserve.
So,
as mentioned, I'm here to present the 2022 financial year and
Report, and joining me is Mr. Hayes, our chief financial officer, and our external auditors, Mr. Chris Chalak and Tanner from MNP-LLP, who will present the audited financial statement results to council.
So in December of 2021, council approved the 2022 operating capital budgets, the sudden motion, the planned financial activities for 2022. In November of 2022, MNP-LLP presented the 2022 audit service
plan to council and administration worked with the auditors to complete the
interim audit. During January and February, financial accounting,
reconcilations working paper development and audit preparation were well
underway to be fully prepared for the audit which occurred in March of 2023.
This was the county's first year of audit with MNPLLP, so more effort was
undertaken to ensure that certain requirements were met and understood. MNP was
as clear in their expectations, timely and professional.
So just to go over responsibilities pertaining to the financial statements, administrations
responsible for the fair preparation and presentation of the statements, and results in accordance
with the Canadian public sector accounting standards, we're also responsible for developing
and monitoring the internal controls.
Council's responsibilities include oversight of management, appointing an independent external
auditor and to approve the audited financial statements. Auditors are required to provide reasonable
assurance that the financial statements are free of material statements and provide an overall
opinion on the statements.
So to go through the financial assets, overall, there was a decrease
of 18 million from 2021 to 2022 and I'll go through a few of the reasons. So during 2021,
taking us a little bit back in time, the cash and cash equivalence balance was substantial because
because at the time the bank rates were no different than the longer-term investment rates
at that time.
However, during 2022, you'll see a shift in the balances from cash and cash equivalence
to investments due to favorable rates of return for longer-term investments.
Rates at the time of investment in 2022 were higher than historical rates, and they continued
to rise throughout the year.
With the rising interest rates through 2022, the market value of investments exceeded the
curing value, but market costs below costs are considered to be temporary, therefore no
rate downs were recorded or have been recorded.
The net difference from 2021 to 2022 between cash and cash equivalents and investments
is 19.5 million and some of the contributing factors include the county front-ended 9 million
from cash on hand for debt funded capital projects due to several interest rates hikes from
the Bank of Canada. This required administration to amend many borrowing by-laws to incorporate
the new interest rates during 2022. However, cash positions were sufficient to cover and
finance these projects front-ended. As well, capital spending in 2022 was 65 million compared
to 37.5 in 2021. A $27.5 million increase in the capital to programming and relative expenditures,
and that does have cash flow considerations.
So a few key things to note here.
10 million of the capital was in accounts payable.
The trade accounts payable in accruals at your end.
9 million of the funding was front-edited from cash for debts.
And that leaves an additional 8.5 million cash outflow
from spending from 2022 to 2021.
So the financial liabilities reflect an overall decrease
increase of 2.6 million from 2021 to 2022 and the overall decrease in these periods of
time were more significant increase to accounts payable and trade liabilities. That amount
was 7 million between these years. The majority of that increase is also relative to capital
accounts payable and capital cruells at your end in the amount of 5.5 million. The remaining
1.5 million variance relates to various operating expenses accrued and paid or to be paid within
into 2023.
The employee benefit obligations reflected a minimal increase of .14 million, and this
is a combination of a decreased vacation liability and an increase to the retirement
liability.
Retirement liabilities and accounting estimate, considering many variables to arrive at
the final liability results, during 2022 auditors presented to management for consideration to
adopt historical attrition rate modeling for calculation purposes. This was incorporated
into an adjustment in the original estimate in our year in financial statements. Going
forward, NMP-LLP has also recommended an actual variation be performed every three to five
years to validate the reasonability of this estimate and administration increase with this
advice and support set.
Long-term debts decreased by 3.4 million from 2021 to 2022. Increases were anticipated,
but as mentioned previously, debt draws were postponed.
And deferred revenue does have, we recognize more deferred revenue this year
than in 2021 and mostly, again, attributed to more capital spending.
So our revenues were greater than overall than anticipated by $3.9 million.
To start off, we'll talk about a decrease.
We had a municipal tax decrease of 1.6 million due to some assessment changes.
Sales and user charges were greater than anticipated.
However, these are typically offset by a corresponding expense as the majority of these user fees are based on the cost recovery model.
Investment income was greater than anticipated due to conservative budgeting practices.
So the overall income consisted of 2.4 million and 1.7 was in excess of budget.
1.4 million of this amount was actually derived from short-term GICs and just our general operating bank account balance earnings
with the remaining million from long-term investments that did come, come due.
Special levies and tax prepayments mainly due to the community aggregate payment
levie known as cap levie revenue was greater than anticipated as well.
And then just in summary, other revenue was greater than anticipated
from a one-time foreign exchange gain insurance proceeds and an unbudgeted third-party
contribution for work that was completed in 2022, again, which has corresponding cost to that.
Okay, so municipal expenses, so the two largest variances here are salaries, wages and benefits and contracted in general services, salaries, wages and benefits were less than budgeted approximately by $900,000 and resulting mostly from staff vacancies and timing of onboarding the contracted in general service expense, net of purchases from other governments resulted in less than anticipated expenditures mainly resulting from operating projects that have been carried forward into 2020.
So we see these expenditures occur, but in a future financial reporting period.
And then the county did experience a loss and disposal resulting from assets transferred
in annexation process, a couple losses on asset sales, whip write-offs for a studies that
cannot be capitalized, and amount related to a terminated development agreement.
Okay.
So overall the annual excess of revenue over expenses amounts to $34.8 million for 2022.
It's important to note that the presentation of the annual budget varies somewhat from
the legislative financial reporting requirements.
The annual budget presents the capital spend principal debt payments and reserve transfers,
which do not within the financial statement per legislation.
The appearance is different, however, the results are the same.
So to reconcile this difference for council, you can refer to note 2022 titled budget figures.
This represents the 2022 operating surplus total of $5 million.
However for simplicity, I've included the $5 million surplus by division on the screen above you as well to represent it in a different way.
And it's also found within your 2022 financial report.
Okay, so our accumulated surplus, it's detailed in note 15 for council members of the public.
It equates to $401 million, which includes unrestricted deficit of $13.8.
municipal reserves of 71.5 and equating tangible capital assets of 343.9.
Just to cover a couple of the items, the unrestricted deficit amount includes budgeted capital expenditures which were incurred in advance of boring and tax prepayment revenue, which is yet to be recognized.
The reserves will be discussed a little further on within the presentation, however, we have the forming categories within tax stabilization, life cycle, and growth contingency and
special purpose, and then the equity and tangible capital assets has been reconciled with
a note 14.
So moving on to capital, the combination of new projects and projects carried forward
from 2022's consolidated budget for capital was $104.6 million for the year and it consisted
of 165 programs, projects and programs.
So during 2022, that financial activity was $65 million spending.
33.9 was carried forward to complete in future years.
2.4 of the money remaining is restricted funding
that's released back to where it needed to be.
So as an example, debentures, non-discussionary grants
which you can be used for specific purposes into the future.
Just not anything specific, anything not specific within the capital program and then a net amount of 3.2 million which we're recommending Council transfer back into their initiating reserves in a following Council item today.
So
the consolidated tangible capital asset balance amounts to $366 million and $50 million
increase from 2021 to 2022 net of amortization and disposal so we can see a large increase
there.
Municipal reserves at December 31st, we net a front-edded off-site infrastructure amounted
to $71.5 million and $39.8 million remained and committed.
The first chart within here shows the reserve composition details of committed and committed
balances and the second chart represents the uncommitted balances for future needs within
the respective target values represented by the dotted lines.
So tax stabilization has an uncommitted balance of 5.4 million and an uncommitted balance
of $14 million in the target of 5.4 million, the contingency reserves have an
uncommitted amount of $1.2 million with a target balance of $4.5 million, the
lifecycle reserves have an uncommitted balance of $14.6 million and a target
value that's currently under review of $15.6 million and finally the special
purpose have an uncommitted balance of $10 million.
Municipal debt, we had nine
projects approved from 2021 to 2022. The available debt limit at the end of the year was
133.8 million and debt servicing available was 23 million as prescribed by the Municipal
Government Act. So in a good position there from available debt, after the removal of budget
commitments and contingency amounts, the capacity totals a 3.9.
So contingent liabilities,
if applicable, we must disclose within the financial statement notes.
anything that we know of as administration
or based on advice from legal counsel
and the final determination is that there's no litigations
underway that would materially affect
the county's financial position
or results of its operations.
And then future accounting standards,
the asset retirement obligation is one that's coming up.
Administrations currently undertaking efforts
in accordance with the standard to ensure
that we're in compliance.
This one's a more significant change
because it does involve various departments across the county's support to be able to adhere
to the standard by the end of 2023, but we do have a really good start on it, and we're
actually coming to the end of the first section of the first phase of the review for this.
It includes decommissioning, providing estimates for decommissioning, dismantling tangible capital
assets that were acquired, constructed or developed, if reliable to do so, remediation or clean
up of contaminated or tangible capital assets created by its normal use. And as mentioned,
this comes into effect 2023 financial reporting year end. We just need to be able to establish
a liability for those.
The next slide just shows a few other standards that are coming into effect
next year or the year after. So we do have some work to adhere to these standards. So just wanted
to make note of that. They're also within your financial statement notes. That's all I have for
for my portion of the presentation.
I'd like to end with a thank you to my team
and corporate finance.
Lots of hours achieving a successful audit,
which I'm hoping that MNP will present to you shortly.
And a special thanks to all the department staff
across the county and management
who supported in meeting timelines,
inquiries from finance, inquiries from MNP.
It's a collective effort to get us to this point
of the county, so thank you to everybody.
And with that, that concludes my
I am portion of the presentation.
I welcome comments from Mr. Hayes and also from MNP,
following Mr. Hayes.
I thank Council.
I've nothing more to add other than to say in the year
where you onboard a new auditor, it's a little more work
and the audit process itself is somewhat harrowing
to have all your work independently reviewed by experts.
But I'm comforted that that is a good control
again, flagging any risks or concerns with our finances,
which is something we don't want to take for granted.
And so with that, I'm just pleased with the work, and I look forward to the presentation.
Thank you very much, are we going to have questions from council?
Any, anybody got any questions?
Okay, that's, that's good. Thank you very much for here. I'll go ahead. Yes, thank you through the chair, and I would welcome Mr. Chris Scholeck from MNP to conduct his portion of the presentation. Now on the audited statements and their opinion. Thank you very much.
Good afternoon, everybody. Sorry. You bet. Can you hear me clearly? Excellent. You know what? I'm going to have my colleague join me as well. We'll do some quick. I'll just jump into the next slide.
So, nice to see everyone again.
My name is Chris Chul.
I come a partner with MNP's public service audit team and I'll let my colleague introduce
himself.
I'm Tanner Bowers.
I'm a senior manager out of our Ladoo office and responsible for management of the audit.
So today we're going to go through our audit findings, a recap of the audit process, things
we've identified through the audit process and just other general comments to bring to
your attention as we recap and conclude the audit.
I'll jump right through that slide.
So just from an agenda and administrative process, please, at any one time, if there's
any questions whatsoever, don't wait to the end, shout them out as we go.
It's a lot easier and makes it for a much more constructive conversation.
And if I don't have a direct answer right in front of me, I will make sure to toss
hand around to the bus and make sure he can get back to you.
And so, next slide you're building off on Sabrina's comments.
Really, the purpose of the audit fundamentally is simple.
And it is to give our opinion on whether we agree with the financial information presented
within the financial statements.
As Sabrina mentioned, there are really three parties, management and administration
and finance, who are responsible for the accumulation of their operations throughout the year,
and preparing the financial statements and resulting in accounting records.
Yourself's is counsel, who are responsible for the off-road oversight and review of the financial
information, and then us at MNP, who are, as Andrew had mentioned, the third party that comes
in and really gives an opinion on whether we agree with the financial information as presented.
So, it was a bit of a recap from our audit service plan and audit strategy initially presented.
We had no changes from our initial audit service plan.
Our final materiality was consistent with what was originally presented at $4.5 million,
which represents approximately 4% of your operating budget for the year.
And we still have a comment regarding COVID because as an audit process, we always look backwards.
And so over the prior year, COVID was still an effect for the most part in the beginning of 2022, but no impacts as a result of COVID within these financial statements.
So areas of audit emphasis, as part of our audit process, our audit focuses on areas of higher or highest risk.
Those areas, both that contain some estimation, maintain or require specific manual processes, changes, and other significant balances within your financial statements.
So the next couple slides highlight some of those significant areas and components.
It's not to say we all of our attention is spent on these areas, but
more of our attention is spent on these areas based on our, well, based on history and
based on our professional assessment of the counties overall operations.
So the first section we have there's tangible capital assets, so buildings,
roadways, sewers, all of the significant assets for continued use by the county.
Being this most significant number in any municipal government's financial statements,
there's always some significant estimation and there's always some objective review of these financial assets.
So, we look to make sure, specifically, for those assets that are transferred to the county,
through developers or otherwise, that they're transferred at the appropriate timing.
So there's construction completion certificates or final acceptance certificates that have been received, really where the county has accepted liability and accepted those assets into their books from the devarious developers.
We also look and do some sampling and tracing on purchases, disposals and other asset acquisitions and sales throughout the year.
And no concerns or significant issues of any kind from our auto process.
The next line here we have is, you know, I'm going to jump back, just to defer revenue and government transfers.
Specifically, defer revenue and government transfers typically require and include some type of restriction or
specific purpose as to what the funds are provided for. And anytime there's specific restrictions or purpose,
we look to ensure that those funds are spent, expended on what was originally intended. Or if there if there wasn't originally intended,
budget or amendments received from the original funders.
So we test the outgoing expenditures as part of the process to ensure that they're compliant
with the original agreements and regulations, and no concerns or issues from our side.
And finally, salaries and wages by far the largest operating cost of any government.
So we look to ensure that staff are being paid appropriately, not being paid under or overpaid.
They're receiving the appropriate benefits that any remittances or deductions are being
paid appropriately and within consistent timing, and again, no concerns from our perspective.
You know, I'm just going to jump in there.
Please, I'm talking about salaries and that.
The retirement area was a little bit, they're working on it.
How's that working on this?
Absolutely.
You know what, if you'll bear with me, I'll jump to the next slide,
because it is one of our significant areas of emphasis.
And I'll actually go into a little bit of depth on it, but I'll jump right into that one first.
Post-retirement benefits.
So the retirement benefits, along with the retirement liabilities, and
along with the retirement benefits include some significant estimates.
How many employees are going to last and get to their actually achieve the various outcomes where they'll be able to benefit or receive the payments?
When we expect them to receive the payments, what their salaries are going to be, and proportionately, of those employees that haven't yet reached the thresholds.
how many and what percentage you think are actually going to achieve and hit those thresholds.
So as part of the audit process, we proposed to manage me a little bit of a, I guess,
retro-spective review of attrition rates at employees at at various levels throughout the
county going back, I believe it was five years, and looking at those employees over the last five
years, how many have left, left the county at the various, various years of service and making sure
that as employees kind of over time, incrementally, if they're moving up along their years of service,
we should see if employees are leaving over time, which we would expect in any organization,
there's always going to be some level of attrition, that attrition rate is being reflected in kind
of the model for how much the county is going to have to pay.
And so as part of that assessment, we came up with a little bit of an adjustment to the financial
statements and a material adjustment, but not an adjustment nonetheless, but I think it reflects
Alex, one of our suggestions that will come through as part of our control and process is the value add component of the audit as to really we've suggested and I think management and administration agrees that an actuarial assessment would be beneficial to the county really and it's not an annual actuarial assessment, but because of the complexity and number of estimates involved in coming up with that model how many employees are actually going to ultimately achieve and will
be paid part of the retirement benefit, it provides a bit of a baseline to the
county on an ongoing basis. And so our recommendation, I'm jumping ahead a
couple slides, but is if an actual assessment is kind of obtained in quarter
one of 2024, we can use that information retroactively for the 2023 audit, but
also for 2024 and ongoing years as a stable baseline. So from a timing
perspective, it provides a little bit more benefit and also allows the county, some cost
savings so that you don't have to undertake that assessment on an ongoing or every year,
multi-year basis.
Really, once you've got a baseline from an actuary providing a standard kind of threshold
liability, then it's easy enough to change the model for any significant changes at the
county level, whether that's increases in staffing or changes to the liability account
as deemed by council or administration or otherwise.
Thank you, great question, Councillor.
The other areas of significant audit focus estimates, as Sabrina had mentioned, the
county has transferred a significant amount of the cash pool into estimates throughout the
year.
And as we all know, interest rates have fluctuated dramatically throughout 2022.
So as part of the estimates process and investments and the audit of the investments process, we
We look to ensure that estimates are being appropriately valued and presented in the financial
statements that any non-temperary write downs that may be required.
So, you know, if the investments are intended or will likely be held to maturity and some
unrealized losses that may have occurred, are there that they're not being reflected or
written down.
But if, for an example, investments are held in an entity that has gone into receivership
And you don't expect to ever recover those funds that we've, they've been written down accordingly.
And so as part of our process, we review and agree all investment balances to the third party investment statements.
Re-calculate bond values, especially bonds that are purchased not at initial acquisition.
There's always a bit of an amortization period.
And I'm sure that they're being accurately reflected in the financial statements.
And no issues from our perspective whatsoever.
However, and I guess while we're speaking to investments and building off Sabrina's previous
comment about future accounting pronouncements, next year there's a new financial accounting
pronouncement called Financial Instruments which may change the presentation of investment
slightly to what has been historically, specifically unrealize gains and losses on publicly traded
securities or publicly traded marketable securities, we'll now be presented on a separate statement
and called the statement of re-measurement gains and losses.
I would almost call it a separate income statement,
a separate statement of operations.
That way it peels out any unrealized gains and losses
and unrealized foreign exchanges
from your operational activities throughout the year.
And the last one, sorry, the last one I had was gravel inventory,
specifically while the county doesn't
and I'll hold material balances of gravel,
gravel is always a significant estimate
it to any, I'll call Rome, municipality.
Any time you're holding gravel, there's always significant estimates in assessing the
volume of gravel held and the cost of the gravel.
So the volume is assessed through third party, internal GPS surveys that do an assessment of
gravel piles and costing is based on, you know, historical crushing costs as no crushing
was done in the year, but no issues from my perspective.
And finally, the last, I'll call significant area of focus is specifically journal entry
testing, and when I see journal entry testing, this is manual accounting processes.
Any time that is not a routine process that goes through the typical accounting cycle,
any time that there is a manual adjustment throughout the financial statements.
And so there's always a bit of a fraud risk in any time that there is a manual adjustment,
because it takes away the kind of implicit IT review or
typical process review within any accounting function.
And with that we use an AI tool called Mindbridge that looks at the county's complete set of accounting records throughout the year and assesses every single transaction for areas of specific risk or other thresholds and uses hundreds of different models including numerical basis and key words and functions to spit out a list of high risk transactions that we specifically focus on and assess.
And so there were six entries throughout the year that we assessed, and there were no issues with any of those entries identified.
So onto the audit status, as of today, the audit is complete, depending approval by yourselves as counsel, and we've got an unqualified or a clean audit opinion.
You know, before I jump on, I really would like to just take a minute to really express our appreciation and give kudos and thanks to Andrew Sirenet, the whole finance team.
You know, as Reno mentioned, a new audit, coming in as new auditors, there's always a significant
amount of transition time, effort, and a lot of initial discussions in assessing and understanding,
working processes, controls, and even internal working papers. I really do want to give a kudos
to the finance team. The audit went incredibly smoothly and it just tells to the kind of excellence
and expertise of the team as a whole.
Adjusted differences are those, any differences that we identify through discresors with management
or through the audit process that are reflected in these financial statements already, whereas
unadjusted differences are not reflected, and this would be applied in that materiality level.
So we have no unadjusted differences, which is fantastic to see, and the only adjusted difference
we have is specifically regarding the retirement liability through some of the attrition rate
analysis that we had done with management.
And those are already reflected in the financial statements.
And now the last couple slides here are, I guess, again, when I build on the value added
component of the audit, the internal control and just operational considerations for
yourselves as council and administration.
So the first one we have here is specific authorization of manual journal entries.
And this ties into that mind-bridge AI testing.
As part of the audit process, especially this year, there's a new audit standard, Canadian
an audit standard that requires us to assess specifically more assessment of internal controls
that would be required in years past, and there's a very explicit requirement for us to
look at the manual journal entry and manual accounting process, and as part of that process
to recommend or ensure that there's a review and recommendation process that there's not
a specific review process in place.
So as part of the current accounting process when there is a manual general journal
entry post that there's not a direct review. So there's not necessarily a requirement or
a direct requirement either through the existing accounting system which my understanding
is doesn't exist in the current accounting system. So there's not a secondary process for
review of journal entries. Our recommendation is
Specifically, is that there is a review process kind of put into place in the interim, and then ultimately when the county works through an assesses and identifies and works towards a new accounting system, that that new accounting system includes an automated process, or not automated process, of a review of all those manual general journal entries, which is quite consistent with some of the new larger accounting systems. They all have built in, I'll call them, internal automated internal controls.
requirements requiring these control processes to be built into place, but it's a recommendation
from our side as it eliminates, fundamentally eliminates some fraud risk that exists within
the county. And from our discussions with management and finance, they agree with our recommendation
and are implementing kind of a process in place while the current ERP assessment and process
for new software is undertaken.
And I spoke to this one earlier, specifically the retirement
benefit liability. Oh, please. Sorry, thank you. Mr. Chair, thank you very much for that.
Just curious, does our current software have the capacity to do that with add-ons or anything,
or is this something that we would have to purchase if we want to eliminate that? So I'm just
wondering what the price take for that little teeny recommendation might end up being.
Please. Through the Chair, to Councillor Tom's full disclosure with the system coming to end of
life in the next couple years. Any of the add-ons we have looked at bringing in are quite significant.
Even the software providers do no longer have internal expertise in how to modify.
They would be going through a learning curve as well so just be just as good as us having somebody
within our own IT department, trying to build that add-on. What Chris is speaking to is we currently
review and approve all journal entries outside of our financial system so there's a very
manual process involved and it's work flow through folders and directories and then in
the system people can post their own journal entries so that's the control that we're talking
about there and through a new financial system there'd be a workflow in place where you could have
all this important documentation in the entry itself there and you could kick it to the next person
who needs to review it which is what we would like to see but currently not an option in our
existing system. Great job setting that in motion. Sabrina has already prepared for a software
ask for finance. Thank you.
Thank you, Councillor.
The last slide we hear we have here regarding
internal control and operational considerations. I've spoken to, but specifically regarding
the retirement benefit liabilities. As previously mentioned, because of the, I would say, the
The scope, number of estimates, and the complexity in the estimates in determining what the actual liability is expected to be to the county at any one time for payment of those retirement liabilities to the various employees.
Our recommendation is that you undertake a national aerial assessment ideally in quarter one of 2024, that way we can benefit from it for multiple audit years and into the ongoing future.
to establish a bit of a baseline and ensure we have a baseline calculation and an actuarially
kind of assessed baseline calculation because while we're, while we're accountants and I feel
like our model is quite strong that we've built out, you know, technically we're not actuaries
and I don't want to stand in front of you and make any, make any assertations that we stand
by that from an actuarial perspective. There's just another level of certainty that comes
was with an actuary providing that estimation.
Please, Councillor.
Anybody else on council have a question, Councillor Thomson?
I'm just going to keep with my same theme.
How much does an actuarial assessment about going to cost?
Please.
Through the chair to Councillor Thomson, I did investigate it a few years ago because it
was actually a management point on our audit findings probably three years ago.
So we did tighten up the liability calculation, we needed to get it off the letter.
So at that time, when I was going over estimates, it seemed to be around $15,000.
But that was a few years ago.
Turn it on, just curious, cyber attack, how is our finance department when it comes to that kind of threat?
Do you guys even handle that?
Is that different department?
Any concerns there at all?
Through you, Deputy Mayor Durwin, I can respond from information services perspective and
the auditors may have some additional findings, but certainly last year we completed a cyber security
audit. We had actually the same firm, different area provide that services for us and came
through the budget process and Council approved cyber security monitoring service as well as
additional service enhancement smaller projects to address the findings of that cyber security audit, so we're implementing those now and certainly that's of top priority for administration.
Okay, thank you for that, just clarification.
Thanks. Okay, Mr. Hayes, go ahead.
Mr. Chair, I just want to add to that that we're also have insurance coverage for an
attack if it's not prevented and we're actually reviewing that coverage now just to make
sure it's sufficient.
And we look forward to getting back to Council.
Good.
Thank you.
Any other questions from Council?
Oh.
Thank you very much, gentlemen.
Thank you, Yelser.
I will wrap this up very quickly.
Just jumping through the next slide.
And we're required as part of our audit process to ensure and confirm that we're independent
as auditors.
We feel that we are.
We've got a secondary letter issued.
And the last note I have on here, well, not on the screen, specifically is in regards to
subsequent events.
We're required as auditors to have a discussion on subsequent events up to the anticipated report
date.
We've discussed with management and the finance team, but just to quickly pass this over to
you, folks on council, has anything major material significant come popped up that you're aware
of that may impact these financial statements in any way that are not currently reflected
in them.
It looks like no.
So.
Wonderful.
That's always the answer I hope to hear.
Well, thank you, Chris.
Are you done?
That's everything.
Okay.
So thanks, Chris and Tanner, for coming out and Tanner, you're talked too much, but anyway.
Yeah.
Just to bring up the hair quote.
Okay.
Mr. Hayes, go ahead.
Thank you, Mr. Chair.
And I just want to offer a remind council that they have the opportunity to speak to the auditors and private should they desire to do so but with that
Thank you very much to our still auditors for for the work done this year and thank you to council for
Their feedback today
Good show. We're so we have thanks. Thanks again guys. Thank you very much. We have two motions
coming out of this and
Council come on
Thank you through the chair the council approve the trip
Yes, sorry. The Council approved the transfer of the 2022 operating surplus in the amount
of $5,303,593 to the general operating reserve.
Any questions from Council?
So no questions, no debate. All those in favor, it's
passed
unanimously and second part.
Through the Chair, the Council will approve the 2022 audited financial statements as prepared by administration and audited by the accounting firm of Myers-Norris Penny.
Any debate? Questions?
I'll call the question. All those in favour?
Okay, thank you.
Mr. Southgoer.
Thank you, Dr. Merger. When the recommendation is to go to item 6.2, we have a couple of items but we think that we can get through them pretty efficiently so we'd recommend to move to item 6.2.
And I believe Mr. Kett would be presenting that item.
Thank you, it's been a busy day here, so thanks Mr. Sofco for getting us arranged here.
Thank you.
So we will go on with 6.2.
Okay, good afternoon, Deputy Mayor Durwin, Council and members of the public.
For the record, my name is Sabrina Kett, and I'm the manager of corporate finance and treasury.
So as recently approved, financial
statements.
We provided a consolidated overview of financial matters, and specifically, we're now here to talk to you about the 2022 capital program and expenditure activity.
So just to recap, in 2022, the consolidated capital budget was 104.6 million, 65 million spent, 33.9 carried forward, 2.4 in restricted funding still available for specific purposes.
and a net 3.2 reserve transfers back to their initial reserves that they came from, net of 9.9 in savings from capital to projects in 2022 and 6.7 in overages.
So today we're seeking three approvals from Council and before I pass it off to our infrastructure services team, we'll just go through them.
We're looking for Council to approve the reallocation of the 2022 capital project savings to overages.
This is more a housekeeping amendment from the previously approved statements.
So within attachment one, you'll find the capital funding summary.
It's a holistic review of the capital funding outcomes post audit,
including the funding remaining for reallocation.
Attachment two, you'll find the reallocation itself towards the projects that required additional funding.
Attachment three is the distributions back to the original reserves and
portion that will be still available in MSI funding to be reallocated to other qualifying projects.
Second, motion before you today is to approve a reallocation of $4.5 million approximately
to fund a capital project that was anticipated in 2024 to 2023 for the range road to 20 township
road 570 to red water in the amount of 4.2 and bridge file 00889 in the amount of 276,885.
This amendment would not increase the overall funding within the 2023 Meltier capital budget.
It's simply a reallocation of funding forward of capital projects.
Finally, that council would uncommit funding in the green and inclusive community buildings
program in the amount of $400,000 for 2023 and 2024 respectively.
So at this time, I'll pass it over to go through some background on the capital program to Mr. Gary Mehu or Mr. Scott McDougall.
Okay.
Thank you, Mr. Duquette.
And I just want to note that this housekeeping amendment and budget request is really a benefit of multi-rebudgeting.
We're not looking at different years that were approved as projects are multi-year in nature all at the same time.
We're combining them, we're creating a plan for this year.
And I think that provides us a very clean starting point to assess our performance on at the end of the year.
And I think that's a great and finance team, particularly is enthusiastic about this just to know and be able to report back to council on the financial matters related to these projects.
I would say this is also a big benefit of teamwork.
This was done working closely with our operational areas, and we were all aligned on this work, bringing this together today, and there was a lot of work that went on behind the scenes.
So again, a big shout out and appreciation to the T&E team, certainly, and the other areas, utilities, community services areas that were contributing this fleet, protective services, we're all involved, and just thanks to all of them.
And lastly, I think the other piece to this is that within our capital budgeting policy that we're working with in our budget here, we're still staying within our means, we're monitoring what we have available as things that just through this process, or there's overages where there's under savings, we're realigning those amounts and then reconsidering what the priorities are which are brought for you today.
So again, very pleased that this has come forward for you today, and it really sets us up, I believe, for success for this year.
Perfect, and thank you, Mr. Hayes, and through the chair.
I just wanted to give a little bit more background information, and as included in the RFD,
talk a little bit about the great work that was completed, and thank Council for the funding of these projects.
We accomplished a lot of work here over the last several years, and specifically when we look at last year,
we had a capital budget of over 104 million that consisted of over 165 projects.
Of that work, we conducted over $65 million worth of expenditures and
in close to 70 projects that were completed,
several others substantially complete
and several others that will be complete this year.
So a tremendous amount of infrastructure work
that has been undertaken within the county,
we're very pleased that our funds
that we're coming to chat with Council today
still stay within the existing budget.
So we're not asking for any additional funding,
we're looking at reallocation.
So several of the projects came in under budget.
We had a few that did come in over budget,
lots of factors last year that we've talked to Council about.
So some inflationary factors, some supply chain issues,
We did have contamination on a couple of other projects that we had to deal with.
We had additional costs on geotech that we had to undertake with some additional soil conditions.
And we've talked to council previously about a couple of these items.
One of the things we did want to highlight is that we are still, as Mr.
Hayes mentioned, still able to stay within our current budget.
And that's one of the things that we're very proud of as a administration and
council from our overall capital expenditure.
So we did provide a list for you of the entire project scopes.
And as mentioned, we're continuing to take learnings from those as
We go forward. So in increasing some of our geotech on future projects, increasing some of our potential contingencies when we look at certain projects with unknowns as we go forward, and budgeting accordingly as we move forward. So lots of remediation that we talked about as well. And some of these unknowns, we had doubled the dirt volumes on some of these projects due to soil issues that we had to take into account. So that means you have to take material back in to complete the project. We're continuing to strive for high quality projects
when we get back, so improving our infrastructure that will last and we'll get good life cycle
out of those projects as we continue to go forward.
So a few of the projects, as we talked had, have overages, several had undergirds
and that will be largely in relation to motion one and they will go on to talk about the next
two and then can absolutely take any questions council has.
The Range Road 220 project, one of the benefits of a multi-year budget is we are looking at
taking efficiencies into consideration.
So, when we look at that project originally, we had looked at doing gravel and some of the base work in year one, and then paving in year two, where we're able to now move forward and do the entire project in one year.
So, we'll take efficiencies and gains with that.
We had several community engagements as well, and we are recommending now two advance funds, so no new funds, but advancing funds from 2024 into 2023 so that we can complete that project.
Part of the scope of that project, we are looking at a change of potentially paving juniper, and that will come as a result.
of the tenders that we have out there so as long as pricing allows and there's no new funds,
we believe we can do that within the scope that Council's pretty previously approved in 2023
and 2024. So that's relation into number two. Also as we look at bridge files 00889, so we are
undertaking work on Township Road 564's and approved project this year. Through detailed engineering,
there is a bridge that was contemplated in 2024 and that's a culvert replacement. So because we're
working on that road, at the same time, again, we can take efficiencies and we'll continue
to look at our multi-year budget in that aspect and bring that project forward.
So it's no new funds again, it's just moving approved funds from Council from 2024 into
2023 to couple those two projects together, causing less disruption to residents and gaining
efficiencies on a cost expenditure.
So that largely relates to the two asks of acceleration of 2024 to 2023.
And the third motion, as Mr. Kett mentioned, we're looking to uncommit funding from the
green and inclusive community buildings program.
So that was an item that we brought forward to Council two years ago actually when we
started talking about some potential grant opportunities.
It was earmarking funding, so it's a matching program with the feds and province on how
you can move forward to ultimately construct new publicly accessible community buildings that
serve underserved and high needs communities across Canada.
It is a 40% funding commitment and at this time it's still going to be available in the future.
And as we consider, our greater facilities needs and amenities will be coming back to council
our future date with potential options and other grants, but we have no associated project
for this at this time. So our recommendation is to release those funds and then we can use them
for other items. So it's just releasing it back to reserve that then we can reallocate accordingly
with council's discretion. So that's where we're looking at that third option. Again, very pleased
with the work that's occurred between finance and transportation and the other groups. A lot of work
went into looking at how we can clean up our budget so that we're all on the same page going forward and
then we can track projects accordingly and move forward into 2023.
So, quite excited, open for any questions and myself, Andrew, Sabrina, willing to take them.
Thank you.
Thank you very much for that.
Council on any questions from anybody.
There we go.
Thank you, through the chair.
I just wanted to make a comment by the transition to a multi-year budget.
It's giving us flexibility.
Not only are we doing cost savings as far as any interest that we're having to pay, it's definitely, we're starting to see the benefits.
And by moving this money around, we're still seeing benefits and saving the taxpayers money, so I definitely support this, thank you.
Okay, go ahead, ladies first, council comes.
Thank you, I like this ladies first philosophy, it's beautiful.
You know what, mine is just a comment as well, Diana has commended finance, and I guess everybody I'm working on the three year adventure of a budget here, which is great.
Great. I just wanted to thank transportation. It's a huge testimonial to how accurate and prepared you guys are with all the crazy headwinds between the issues underneath soil, the inflationary rate, people unable to get labor, the fact that we're not over in any of these areas, we're just swapping the round from from project to project kind of thing so happy to see that we're ending up with like a level balance and think that's like I say a testimonial to great planning and great execution. So thank you for that. Thank you for that councilman plan.
I'm wondering if there's any tax implication by moving this forward, by moving the project
from 2024 to 2023.
Through Deputy Mayor to Councilor McLean, directly no.
We're working within our budget.
We're not adding any extra funding or financing through this approval in addition to what was
previously approved.
very broadly our overall capital budget does require a tax input and has tax implications.
So, very broadly, there's tax implications of all our decisions, but things we're not
adding, I would say no.
I see no more questions, so we need somebody to read this into motion.
Go ahead, Councillor Thompson.
Through you, Mr. Chair, that Council approve a reallocation of 2022 capital project savings
It brings in the amount of $9,916,897 to the capital projects listed in Attachment 2 in the amount of $6,691,125.
And the reserves listed in Attachment 3 in the amount of $3,225,772.
Thank you for that, any debate?
No, Councilor Coleman, go ahead.
Thank you, I'm definitely going to support this.
I think this shows that we're being prudent with the money that we have, I think that it also enables us to put it in reserves where if there is a project that comes that really we need to spend a little bit in the beginning to make that project get across the finish line, this is a way to make that occur.
So I definitely will be supporting this.
Thank you.
Myself, I'll definitely be supporting this.
Thank you again, gentlemen, ladies, for bringing this forward.
I mean, 165 projects, overall, and above and below are boundaries.
I mean, the residents of this county can be very proud of these departments working together to save money.
So I think I found a way, though, to help Mr. McClennan with his capital cost.
We can eliminate a bunch of his projects, they'll bring it down to zero.
So just saying, we all work together as a team to make the county a better place.
So as I'm saying, okay, so no more questions, we'll call for the vote.
All those in favor?
An anonymous decision, motion number two, please.
Through you, Mr. Chair, that Council approve the reallocation of $4,476,885 funding from the 2024 capital budget
to the 2023 capital budget for a range road to 20 township road 570 to Redwater in the amount of $4,200,000 and Bridgefile 0800889 township road 564 in the amount of $276,885.
And through you again, Mr. Chair, that Council Uncommit funding for the green and inclusive community buildings program capital project in the amount of $400,000 for 2023 and $400,000 for 2024.
any debate? In a case, all those in favor? Past unanimously. Thank you.
And I think
six point item 6.4 is the final.
We're not giving Scott no break. No, no, no, no,
he has to be able to. Yeah, I know.
We'll have a five minute recess.
Okay, don't maybe use
a big gavel. Let's call the council meeting, regular council meeting, back to order. And
and we'll deal with item, agenda 6.4,
Mr. McDougall.
Thank you, and through the chair, I'm really happy today to present a couple of motions for council considerations surrounding some upgrades to both the County Center Carter Forum as well as the front entrance.
And I did want to walk through a little bit of the background on this file and just open it up for discussion with council.
So, the Sturgeon County Center, we've continued to do minimal renovations through the years
and that's LED lights and other areas through this, some minor painting and different areas
like that.
But we haven't undertaken any major upgrades at the facility.
One of the things I did want you to highlight for a council is we are looking at kind of
a longer term amenity consideration for our facilities and we are looking at some potentials at
this facility, one would be HVAC, and it'd be a major upgrade to the HVAC system.
The other would be the roof.
Those are big items, those would be over a million dollars when we look at that.
So we're looking at more of a longer term amenity, capital asset planning perspective, but
just wanted to make that aware of for council consideration some of the bigger items that we're looking at.
We did have approval back in 2021 under service enhancement firm improvements to the Carter Froom.
And it's one of our main areas that we bring investors into the county and residents and
other. So it's an area that really is one of the first things that those businesses see.
When they come into the county, it's an area that I think everyone agrees we need to do some
improvements to. We've taken a big look and did want to thank our manager of fleet facilities,
Mike Filbrick, who's largely led this up. Taken quite a bit of a scan of some of the other
municipal buildings in our region, so we've seen some of the other counties and some of the buildings
that they have in some of their rooms and are using that to help guide what we could do in our space.
We are limited in some of our space improvements, but there are some options.
So not only have we looked at kind of our own internal needs, but we've looked from an external
perspective, what other municipalities are doing, and have some ideas that we wanted to present
to Council.
There's no shortage, of course, of ideas when we look at options in the space as a limiting
factor, but there are some things that we can do.
And as we go forward, I did break it into kind of five areas for consideration.
And we do have some renderings that we will show as we go through the presentation.
The first area is Carter Froome, so that was the original one that we had looked at doing some improvements there.
The second is the front reception, and the front reception is both looking at how we expand both of our P&D.
P&D area, how we improve kind of the front area, and what we can do from that aspect. The third is the
service last-a-a-v room, so that's kind of the room that puts you to
actually do there to open up
some space and improve the access between both of these rooms as well as public access as well.
The fourth is the public washroom space, so that's the largely outside of the main council chamber doors,
and those are the washrooms largely for public use, and we want to make some improvements to those
both barrier-free and some other areas to assist the public.
The fifth is the screening room.
So we did look at some options about potentially looking at additional screening in the area.
We're not recommending that at this time, but did want to include that for Council consideration
as we go forward.
So each one of these areas has different costs.
And just on the screen, you can see that there are a couple different renderings that we have
included in the package.
Carter Froome as a whole, we would be changing some of the wall structure.
So we'd actually gain room. We're looking at gaining probably three feet on one side and and we have to do some additional electrical work
So we have electrical issues that we need to deal with where we have cords and extensions and a bunch of different things
So we will address that within this you want to have cords on the floors anymore and things like that
We are looking at a frosted kind of open glass. So it's a switch
So you have an open more of an open conceptual feel and it can be closed closed down for more closed-session kind of meetings and private confidential
But it is an upgrade, the furniture will be upgraded, the flooring will be upgraded, the walls will be upgraded, and roof upgraded as we go forward.
So that was one of the initial things we looked at.
The front reception area, when we look at that, we are looking at a couple different things.
So it'll extend into the P&D area.
We're looking at more of a multi-phase thing.
So we will future-proof the design, pending on costing that comes in.
We do want to enhance the experience for residents that they come in as from a P&D perspective as well.
also extending the counters moving into the P&D area,
there'll be some more improvements as we go forward with this.
So this is just a rendering, just a conceptual plan
that we're looking at going over tender with.
Obviously on tendering pricing,
it may allow us to do different things,
expand that area as we go forward.
So just some initial renderings.
The public washrooms that I did mention at the front
and we can go through that in the schematic
was a different area that we looked at,
really looking at barrier-free opportunities, really updating it for handicap access and mobility issues as well as just improving an overall experience for residents in a very cramped spaces right now and want to look at how we improve the overall structure.
We did look at all of these to be undertaken pending council approvals to go inside with council break so to really look at at least disruption as possible.
not guaranteed they can all fit in there pending on Council availability and different scoping, but looking at some of those options as we go forward.
So on the renderings, you can't quite see it, but we would remove some of the curvature the wall would extend out.
The other thing we are looking at doing is improving security, and that's one of the things from different scans that we've had in our area.
That it is possible to move through different doors and things at the county.
So we would be putting swipe cards effectively on those main doors and ensuring that security
is at the forefront and I think very important when we look at society and resident needs
and public needs right now. So security is an absolutely a part of this study as well.
We are recommending a few different cost items for council consideration. We do have some
funding available when we looked at available budget for the upgrade. So we do have Carter
Freeman security improvements previously approved at 136,000. We do have our building accessibility
ability reserve at 200,000 and we do have 10,000 earmarked for security system upgrades.
So largely we have $346,000 associated to these kind of upgrades currently.
And we can proceed with that if that's council's direction.
Largely would be Carter Froome and some smaller areas and we'd phase over time.
The other option for consideration is to look at additional funding.
We do believe in what I've requested and this is an additional up to not take C300,000 and
And that would allow us to undertake the majority of this work, pending contractor availability
and pending tender results through this.
We would look at continuing to improve this and continuing to look at potential additional
improvements in future years for phased improvements for both the P&D area and others.
So it does give us a good base, it gives us a good start on what we can do.
Priorities obviously with the Carter-Froom and Front Reception would be where we would start,
but did want to give counsel the opportunity to look at some of the potential renderings and
and some of the potential options as we go for.
But largely gaining more space in Carterfruim
will be the focus and improving that access
as well as the front counters during
to work on some improvements there.
So maybe I'll stop there, Council,
and open to any questions you may have.
Thank you.
Okay, so we have a bunch of questions.
Councilor, I'll stay and go ahead.
Thank you, through the chair.
So you mentioned the age-vex system.
I know personally we've had more and more
Or crime watch meetings there, and we've been meeting after hours there, and the heat in that room is unbearable.
Like we had our protective services gentleman just literally dripping.
Is there some way within this budget that something can be a quick fix before the full HVAC system is replaced, or changed?
But is that accounted for in this funding request?
Thank you, and through the Chair to the Councillor staying.
Not specifically in this, but it is an item that we're looking at.
So there's different settings on different times of the night that we can adjust and there is inter settings that the team is looking at right now
We have actually installed monitors as well through our HVAC system to see where we can focus in on some of those improvements
Through our normal building operating plan. We do have some of those when I reference kind of that that bigger item is an HVAC system
At some point we would want to suggest to counsel major amenity changes if the overall decision was to
to continue to utilize the Sturgeon County Center.
Those would be future obviously to look at, but there are some internal things that we can do to address those concerns, and we've heard those from other areas as well in the building, so absolutely we'll take that away.
Thank you. Who else right here, okay? Go ahead, Councilor.
Thanks, through you, Mr. Chair, I just wanted to be originally looked at this.
I remember we were also looking at having potentially other venues around which was kind of in the back of my mind, I know when we were thinking about this, and I am terrible at spatial estimation.
Is there any other room, like, is there more than three feet?
We could put into the carter room because now we're not looking at having a board room
off-site and that room is way too small for everything from having visitors to some board
meetings.
So I'm not sure if there's any shifting we could do to make it even larger with the idea
that we may not have any more off-site facilities like that.
Thanks.
Through the Chair to Councillor Thompson, maybe I'll answer it in a couple different ways.
It's actually, when we look at the overall expenditure, it's more than three feet.
we're looking at potentially the front reception and shifting through there.
So we're moving some walls around that should give us, I believe it's about 150 square feet
addition in that area. So it'll, it'll, it sounds like a little, but it's actually going to be
quite a lot from what we're used to. Amenities as a whole is a item that we will be talking to counsel
at in future about other options. And as we continue to, to, to expand and look at those, we'll have to
have other considerations of space. We are limited, but it is an item that we'll be talking to counsel
about in the future for that, but there is some additional space within cartofil.
Councillor Cuomo.
Just to confirm that we're going to be looking through FCM Green Municipal Fund, low-flushtoilates,
the lighting, et cetera, looking at accessing funding from there as well as the possibility.
And through the Chair to Councillor Cuomo, 100%.
So Brennan-Sanmeyer or municipal energy specialist is absolutely focusing on that and we're in
and a combination with finance right now.
So hopefully we were able to get some of those grants
and move forward.
Lots of great potential.
We're moving forward on, like I mentioned,
some of the other ones with LED change outs
in different green energy topics that we can move forward,
but we will chase every one of those that we can.
And my next question is in regards to the drawing
that was up there, and you had TVs above
in the front lobby reception area.
Would we be looking at, and I look at it from the standpoint
that that's a way to advertise what we have coming up, whether it be County Bounty,
a meeting of sorts for just the general public that comes in, they can actually see on those TVs
what's coming up within the county. And through the Chair to Councillor Komo,
that was one of the ideas that came from kind of our environmental scan as well in the region,
several other municipalities do something very similar where they have TVs up and
something that we'd absolutely work with our IT group on going forward. So we did want to hear
mark that as as a potential item when we go for tender on how we can look at those opportunities,
but great opportunity to highlight the county and different things that are happening to residents.
Perfect, thank you.
Matthew, go ahead and clean that up.
Thank you, through the chair.
Can you tell me what year this building was built?
Through the chair of the councilman, and I had it, and I don't know if I still do it.
We're original, the county built the building originally, so we're original tenants of it.
We own the building.
I'd have to get the exact date for you, I can't remember off the top of my head.
I think it's 96.
It's on the plaque right on the front, I think it's 96.
Okay, and then my next question would be, is this to be done in conjunction with further expansion of our facilities?
And the directly kind of what I'm getting at is we've got the egg services department and we've got some things spread out.
Does it make more sense to build a new building than to renovate this one?
Thanks, and through the chair, I'll just confirm the first one was 1994, was the date.
Different amenity question, I think one of the items that administration is going to come back to council with is more of a generalized talk on amenities and when we look at expansion into different areas, whether it's the valley, the heartland and others, there's lots of opportunities to look at, whether it's public works yards, community asset buildings, rack facilities and others.
So we will be coming back to council with more discussions on that.
There's expansion opportunities at this facility.
There's different areas that we see from a siloed to a more of a brought together group.
So lots of opportunities for council decision in the future.
We're going to be coming back as I mentioned with more of a holistic presentation to council on that.
When we look at the Carter Froome and some of these initial upgrades, I think they're more of an immediate need.
When we look at that, there's the future state and the future discussions.
but as we continue to work through investors and bringing other key people into the county,
and this is one of the first areas they see, definitely something for consideration from a future
state as well, though, when we go forward.
Councillor Stang. Thank you, through the chair.
So I'm going to go back to the recommendation from Councillor Como in the sense of the grant money
through FCM or any of those opportunities. Would that change the scope of the project? Would it increase?
Would we add more to it? Can you just maybe talk about that one?
Sure, and through the Chair to Councillor Stang, one of the things that we continue to look at all grant opportunities, whether it's this kind of project or others, if we're successful in achieving some grant opportunities, there's two options, one would be to reduce the overall expenditure, one would be to look at advancing some of the scope though as well, and we've talked about improvements into the P&D area and other areas for expanding that resident experience as well as looking at upgrades to the building and other items, so we would bring that information back to council if we're successful on those type of items.
largely the scope on this is fairly small when we look at kind of what we're looking at and really just the
card of room and front reception so it could be a small scope extension but it wouldn't be something that would be a
significant or fundamental change.
Thank you. Any other questions?
Okay then that be in the case so we need somebody to read the motion and get into debate.
Thank you through the chair that council approve the proposed renovation design and
an associated budget for the Sturgeon County Center,
Cardiff Room and Front Reception.
Thank you, through Chair.
I'm gonna definitely be supporting this.
I look at this as the first phase
of a little bit of a facelift on the county building
from 1994 to now.
I think that there are other rooms we could look at.
I think the Coronado Room is another one.
If you talk about needing a bigger meeting room,
you can go out from the Coronado Room
And they create a bigger room back there.
There's other things that in my mind I could see, but definitely will support this moving forward.
And in regards to the front reception, making it brighter,
the blue color, the new logo, everything, I think it helps shape
our future moving forward to show what an outstanding organization we can be.
We are and can be.
Thank you for that.
Anybody else any questions?
times the bait, sorry, come on.
Thank you, through chair.
I won't support this one.
I do agree that there has to be some consideration into where we're going to build buildings,
where we're going to conduct our meetings or visit with investors.
I would be more in favor of the alternative too, which would be to delay the card of room and
and front reception renovations with consideration
of future facility requirements,
including but not limited to improvements
to council chambers, additional upgrades,
expansions and relocation considerations.
I just think that we need to actually go quite a bit bigger.
Thank you.
Thank you for that.
Just a comment myself.
I'm going to support this.
You know, something we just came out
when I was elected five, six years ago,
110 million dollar county campus
was going to be built. So we've advanced ahead and we're going to be spending approximately
300,000 here. So I'm going to support that. I mean, staffing, staffing is definitely
different. The world's changed as far as working at home and doing that. And you're just
seeing your time schedules and what I'm trying to say. So I'm going to support this. Thank
Thank you.
Any other comments?
If not, call for the vote.
All those in favor.
We've got five and all those opposed.
And one opposed.
Thank you. So that brings us to the next motion. Oh, there's one more. I'm trying to get out here. I'm trying to just eliminate this. No. Next motion, please. Thank you. Thank you. Through the chair, that Council will prove an increase to the Sturgeon County Center, Cardiff Room and Front Reception Renovation Budget in an amount of not to exceed 300,000 funded from the Community Building Priority Reserve. Any debate?
Council Como. So, yes, I'm definitely good.
Excuse me, I'm going to be supporting this, and I think Councillor Stang, this is where FCM Green Municipal Funding, et cetera, will come into play, instead of spending 300,000 if we get a grant, it might only be 200,000.
So, definitely we'll support this and look to the team to try and get every grant possible, if it all possible.
Thank you. Any other debate?
Call the question. All those in favour?
And all those opposed? One opposed, five in favour.
Thank you.
Now this takes us to the end of our meeting.
Councillor Como.
Do you have something to say?
Motion to a jet.
There we go.
We're not the vote man. Do we?
Yes.
All those in favour, please?
Maybe Jazz House.
There we go.
No.
Thank you very much.
Thanks for helping me today, guys.