SECOND MEETING OF THE

2007 BUDGET SUB-COMMITTEE

TOWN OF MARKHAM

Canada Room, Markham Civic Centre

FEBRUARY 5, 2007

MINUTES

Budget Sub-Committee Councillor D. Horchik, Chair Regional Councillor J. Heath (1:10 pm) Regional Councillor T. Wong (1:10 pm) Councillor V. Burke Councillor E. Shapero (1:10 pm) Councillor J. Webster Councillor L. Kanapathi Councillor A. Chiu Mayor F. Scarpitti - Ex Officio (1:25 pm) Deputy Mayor J. Jones – Ex Officio (1:20 pm) Councillor J. Virgilio Councillor C. Moretti

Staff J. Livey, Chief Administrative Officer J. Baird, Commissioner of Development Services J. Sales, Commissioner of Community & Fire Services A. Taylor, Commissioner of Corporate Services B. Cribbett, Treasurer J. Lustig, Director of Financial and Client Services A. Brown, Director of Engineering S. Chait, Director, Economic Development V. Shuttleworth, Director, Planning & Urban Design P. Loukes, Director, Operations C. Biss, Chief Executive Officer, Markham Public Libraries B. Roth, Director, Recreation and Culture Services D. Taylor, Acting Director, Strategic Initiatives L. Irvine, Manager, Parks & Open Space Development F. Wong, Manager, Financial Planning A. Tang, Senior Financial Analyst J. Kee, Committee Clerk

The second 2007 Budget Sub-Committee meeting convened at the hour of 1:05 p.m. with Councillor D. Horchik in the Chair.

1. REVIEW AND APPROVAL OF MINUTES OF BUDGET

SUB-COMMITTEE MEETING #1 OF JANUARY 22, 2007

Moved by Councillor A. Chiu

Seconded by Councillor C. Moretti

That the minutes of the Budget Sub-Committee meeting of January 22, 2007 be adopted.

CARRIED

2. RESERVE STUDY – LIFE CYCLE REPLACEMENT

AND CAPITAL RESERVE FUND

Mr. Joel Lustig, Director of Financial and Client Services, provided information relating to the Reserve Study and reviewed the Reserve & Reserve Fund Balances as at the end of November 2006. He presented details regarding the Life Cycle Replacement and Capital Reserve Fund, including: its establishment; purpose; major ongoing sources of funding; asset replacement categories; and life cycle forecast.

Staff advised that almost $500M will be required over the next 20 years for major repairs and replacements of exiting Town assets. There was some discussion relating to Public Sector Accounting Board (PSAB) requirements and future policy recommendations. Staff also advised that the 2007 update of the reserve study will be presented to General Committee in mid-2007. Committee asked that staff include a graph or chart detailing the categories and replacement costs for the next 50 years as part of the 2007 reserve study update to be presented to General Committee.

Moved by Councillor J. Virgilio

Seconded by Councillor E. Shapero

That the presentation of the Director of Financial and Client Services regarding the Reserve Study – Life Cycle Replacement and Capital Reserve Fund, be received.

CARRIED

3. MUNICIPAL FUNDING AGREEMENT - TRANSFER

OF FEDERAL GAS TAX REVENUE

The Director of Financial and Client Services provided background information and details relating to the Federal Gas Tax funding to municipalities for the purpose of building environmentally sustainable infrastructure. The Town is expected to receive $16.9M between 2005 and 2009. In June, 2006 Council agreed to allocate $8M of the Gas Tax to fund Markham District Energy Inc’s capital program. A list of eligible projects, as defined in the Agreement with the Association of Municipalities of Ontario (AMO), was presented, in addition to projects ineligible for funding.

Committee asked staff to follow-up on the requirement for the Town to submit a Community Sustainability Plan as part of the Gas Tax requirements.

Moved by Councillor A. Chiu

Seconded by Councillor J. Webster

That the presentation of the Director of Financial and Client Services regarding the Municipal Funding Agreement for gas tax funding be received.

CARRIED

4. REVIEW CAPITAL PROJECTS BY EXCEPTION

Committee had before it for consideration the 2007 Capital and Other Program Budget,

Version 2 listing, dated February 5, 2007 by Department.

CAO, Legal, HR & Strategic Initiatives

Moved by Councillor A. Chiu

Seconded by Councillor C. Moretti

That the Strategic Initiatives Projects be approved.

CARRIED

Corporate Services - ITS

Project #7744, 2007 Corporate ITS Project - Staff advised that the following items relating to this project had been withdrawn following an IT Committee review:

· Parking Permit System ($20,000);

· Internet & Intranet Redesign ($150,000). Staff advised that a report will be presented to General Committee to seek authorization to partner with the Region of York on an RFP for a portal;

· OCR Batch Scanner ($18,000).

In addition, Value Added AMANDA Enhancements ($325,000) was deferred pending a comprehensive report on AMANDA. Committee also requested that staff provide more information on the Human Resources Training Management item ($75,000) in project 7744.

Moved by Regional Councillor T. Wong

Seconded by Regional Councillor J. Jones

That the Corporate Services – ITS Projects #7509, #7698, #7699 be approved;

And that Corporate Services – ITS Project #7744 be approved, as amended.

CARRIED

Corporate Services – Financial Services

Moved by Councillor C. Moretti

Seconded by Councillor A. Chiu

That the Corporate Services – Financial Services Projects be approved.

CARRIED

Corporate Services – Corporate Communications

Moved by Councillor L. Kanapathi

Seconded by Councillor A. Chiu

That the Corporate Services – Corporate Communications Projects be approved.

CARRIED

Development Services – Economic Development

Moved by Regional Councillor T. Wong

Seconded by Councillor L. Kanapathi

That the Development Services – Economic Development Projects be approved.

CARRIED

Development Services – Planning

Committee expressed some concern with respect to the projects relating to Growth Management, namely #7711, #7714, #7715, #7716, & #7722. Line items relating to agricultural policy; vacant land inventory, and the ICI Intensification Study were briefly discussed, and staff advised that these issues will be discussed fully at the upcoming Council Workshop.

Staff advised that project #7772 was withdrawn by the department.

Moved by Councillor A. Chiu

Seconded by Mayor F. Scarpitti

That the Development Services – Planning Projects be approved;

And that Projects #7711, #7714, #7715, #7716, & #7722 be deferred.

CARRIED

Development Services – Design

Project #7622 – Cornell Greenway (Golden Jubilee Greenway) - Committee queried the status of this Project, and following some discussion, requested staff to begin discussions with various parties regarding land ownership and to report back to the next meeting of the Building and Parks Construction Committee.

In response to a query regarding the proposed soccer field at the Angus Glen Community Centre due to the Milliken Reservoir Expansion, staff advised that a report will be coming forward to Council for consideration, and costs are expected to be $400,000, $40,000 of which would be operating budget funded capital.

Moved by Regional Councillor J. Jones

Seconded by Councillor E. Shapero

That the Development Services - Design Projects be approved;

And that a separate line item be established for the proposed Soccer Field at Angus Glen Community Centre in the amount of $400,000 (90% Development Charges & 10% Operating Budget funded).

CARRIED

Development Services – Engineering

Project #7661 – Growth Management – MTPS Transportation Model Update - it was suggested that a strategic transportation plan be prepared, however, following some discussion, staff was requested to provide an update on the MTPS Transportation Model, including Rapid Transit and other public transit options.

Project #7504 – Downstream Improvements Works Program 1 – Construction, and

Project #7773 – Downstream Improvements Works Program II - in response to a request for a summary relating to these Projects, the Director of Engineering advised that details, including costs, would be provided to all Members by email regarding each of the specific erosion site locations.

Project #7660 – Safe Streets Programme – Committee requested staff to consider a safe street strategy for Delmark Blvd. It was noted that an update on the Safe Streets Programme will be presented to Committee in March.

Staff advised that project 7746 – Class EA Old Kennedy Road and Midland Extension was withdrawn by the department.

Moved by Councillor J. Virgilio

Seconded by Regional Councillor T. Wong

That the Development Services – Engineering Projects be approved, with the exception of:

• #7651 – deferred
• #7661 - deferred; and
• #7746 – withdrawn by department.

CARRIED

Development Services – Commissioner’s Office

Staff advised that the one project in this department, Project #7620 was withdrawn by the department.

Community and Fire Services – Museum

Moved by Councillor A. Chiu

Seconded by Regional Councillor J. Heath

That the Community and Fire Services – Museum Projects be approved.

CARRIED

Community and Fire Services – Theatre

Project #7595 – Highway Sign – Committee expressed interest in being involved in the process and design relating to the proposed new highway sign on the Civic Centre property. It was noted that this property at the north/west corner of Highway 7 and Warden Avenue has been designated as the Anthony Roman Centre, and the sign should reflect this. It was suggested that the process should also involve the Theatre Manager, and that the matter could either be reviewed by the Communications Committee initially, and/or that a recommendation be brought forward to the Building and Parks Construction Committee for consideration.

Moved by Regional Councillor T. Wong

Seconded by Councillor E. Shapero

That the Community & Fire Services – Theatre Projects be approved.

CARRIED

Community and Fire Services – Arts Centres

Moved by Councillor J. Virgilio

Seconded by Councillor C. Moretti

That the Community and Fire Services – Arts Centres Projects be approved.

CARRIED

Community and Fire Services – Recreation & Culture Construction

Project #7537 – Thornhill Community Centre – Parking Lot – Staff was requested to provide a financial breakdown of the costs related this project, including the catch-basins and drainage requirements. An email would be prepared by the Commissioner of Community and Fire Services and forwarded to Members.

Moved by Councillor A. Chiu

Seconded by Councillor V. Burke

That the Community and Fire Services – Recreation & Culture Construction Projects be approved.

CARRIED

Community and Fire Services – Fire

Project #7710 – Fire Station – Construction & Furniture – Committee requested staff to provide information at a future Budget Meeting regarding options for the financing of both the east station and the Cathedral station if statistics indicate the need for both; response times and service quality.

The Commissioner of Community and Fire Services advised that such data would be available for the March 5 Budget Sub-Committee meeting, and an update would also be presented with respect to land acquisitions.

It was suggested that staff investigate the possibility of adding another crew and/or more equipment to the Main Street Markham Fire Station or the Riviera Station in the interim.

Moved by Regional Councillor J. Heath

Seconded by Councillor A. Chiu

That the Community and Fire Services – Fire Projects be approved.

CARRIED

Community & Fire Services – Recreation Services

Project #7826 – Rouge River – Outdoor Ramp – Staff was requested to prepare a report for Budget Sub-Committee on the costs of the entire project, including: basement, accessible doors, general access and ramp.

Moved by Councillor A. Chiu

Seconded by Councillor J. Virgilio

That the Community & Fire Services – Recreation Services Projects be approved, with the exception of Project #7826;

And that staff be requested to provide a detailed report to the Budget Sub-Committee on the whole project, including all costs involved.

CARRIED

Community and Fire Services – Operations – Roads

Project #7480 – Main Street Unionville Parking Lot Stair Rehab. – Committee expressed great concern with respect to the limited parking on Main Street Unionville and the land owner’s reluctance to work with the Town. Staff advised that a full report on the current status of parking for the Main Street Unionville (East side) will be presented to Development Services Committee prior to the finalization of the 2007 Budget.

Project #7455 Asphalt Resurfacing – Annual Program – Staff advised that a report is being prepared for General Committee later in February on the current status of roads within the Town.

Moved by Councillor J. Virgilio

Seconded by Regional Councillor J. Heath

That the Community and Fire Services – Operations – Roads Projects be approved;

And that staff be requested to prepare a full report on the status of the parking situation in the Main Street Unionville (East side) for either the Development Services Committee or Budget Sub-Committee prior to the finalization of the 2007 Budget.

CARRIED

Community & Fire Services - Operations – Parks

Moved by Regional Councillor J. Heath

Seconded by Councillor C. Moretti

That the Community & Fire Services – Operations – Parks Projects be approved.

CARRIED

Community & Fire Services – Asset Management

Moved by Councillor J. Webster

Seconded by Councillor L. Kanapathi

That the Community & Fire Services – Asset Management Projects be approved.

CARRIED

Community & Fire Services – Capital Works, ROW

Moved by Councillor A. Chiu

Seconded by Councillor J. Webster

That the Community & Fire Services – Capital Works, ROW Projects be approved.

CARRIED

Community & Fire Services – Operations – Fleet

Moved by Councillor A. Chiu

Seconded by Councillor J. Virgilio

That the Community & Fire Services – Operations – Fleet Projects be approved.

CARRIED

Community & Fire Services – Waste Management

Project #7515 – Special Events Recycling – Staff will bring forward a memo to provide details of the funding relating to the Special Events Recycling Program.

Moved by Councillor A. Chiu

Seconded by Councillor L. Kanapathi

That the Community & Fire Services – Waste Management Projects be approved.

CARRIED

Community & Fire Services – Contracts & Utilities

Moved by Councillor J. Virgilio

Seconded by Regional Councillor J. Heath

That the Community & Fire Services – Contracts & Utilities Projects be approved.

CARRIED

Community & Fire Services – Strategic Services

Moved by Councillor A. Chiu

Seconded by Councillor C. Moretti

That the Community & Fire Services – Strategic Services Projects be approved.

CARRIED

Community & Fire Services – Library

Moved by Councillor A. Chiu

Seconded by Councillor J. Virgilio

That the Community & Fire Services – Library Projects be approved.

CARRIED

Community & Fire Services – Waterworks

In response to a query respecting current infrastructure and appropriate capacities, staff advised that a report will be presented in the Spring/Summer of 2007 regarding outcomes of the data being gathered by the new modeling software, which will outline the short term capital funding requirements over the next two to three years.

Moved by Councillor A. Chiu

Seconded by Regional Councillor J. Heath

That the Community & Fire Services – Waterworks Projects be approved.

CARRIED

5. RESPONSES TO QUESTIONS FROM BUDGET

SUB-COMMITTEE MEETING #1

The Director of Financial and Client Services reviewed the response to the question raised at the last Budget Sub-Committee meeting with respect to the “$” value of the additional staff requests and the net impact to the tax rate.

Moved by Councillor J. Webster

Seconded by Councillor A. Chiu

That the information with respect to the “$” value of the additional staff request and the net impact to the tax rate be received.

CARRIED

The Director of Financial and Client Services reviewed the response to the question raised at the last Budget Sub-Committee meeting with respect to the possibility of including the parking lot at Aldergrove Park in capital project #7467 – Localized Repairs – Parking Lots – Annual Program.

Staff will provide a further update to Councillor Chiu on this matter.

Moved by Councillor A. Chiu

Seconded by Councillor J. Webster

That the information with respect to the possibility of including the parking lot at Aldergrove Park in capital project #7467 be received for information.

CARRIED

6. MUNICIPAL FUNDING AGREEMENT FOR FEDERAL

GAS TAX ALLOCATION REPORTS FROM 2005

Committee had before it a copy of the October 17, 2005 staff report entitled “Federal Gas Tax Allocation”. The Director of Financial and Client noted that this was being presented for background information.

7. COPY OF THE MUNICIPAL FUNDING AGREEMENT FOR

THE TRANSFER OF FEDERAL GAS TAX REVENUES

Committee had before it a copy of the Municipal Funding Agreement for the Transfer of Federal Gas Tax Revenues, dated December 1, 2005. The Director of Financial and Client noted that this was also being presented for background information.

ADJOURNMENT

The second 2007 Budget Sub-Committee meeting adjourned at 3.30 p.m.