SECOND MEETING OF THE

2008 BUDGET SUB-COMMITTEE

CANADA ROOM, MARKHAM CIVIC CENTRE

OCTOBER 29, 2007

MINUTES

Budget Sub-Committee:

Councillor D. Horchik, Chair

Regional Councillor J. Heath

Regional Councillor T. Wong

Councillor C. Moretti

Councillor J. Webster

Councillor L. Kanapathi

Deputy Mayor J. Jones, Ex Officio (3:10pm)

Regrets

Councillor V. Burke

Councillor A. Chiu

Staff

J. Livey, Chief Administrative Officer

J. Baird, Commissioner of Development Services

A. Taylor, Commissioner of Corporate Services

A. Seabrooke, Commission Lead & Director,

Strategic Services

P. Loukes, Commission Lead & Director,

Operations

B. Cribbett, Treasurer

A. Brown, Director, Engineering

V. Shuttleworth, Director, Planning & Urban

Design

J. Lustig, Director of Financial and Client Services

S. Chait, Director, Economic Development

J. Carnegie, Director, Corporate Communications

N. Kenea, Chief Information Officer

B. Snowball, Acting Fire Chief

D. Taylor, Acting Director, Strategic Initiatives

S. Andrews, Director, Asset Management

P. Ingham, General Manager, Operations

L. Irvine, Manager, Parks & Open Space

Development

A. Tang, Acting Manager, Financial Planning

D. Milenkovski, Senior Financial Analyst

J. Kee, Committee Clerk

The second 2008 Budget Sub-Committee meeting convened at the hour of 1:15 p.m. with Councillor D. Horchik in the Chair.

1.         MINUTES OF BUDGET SUB-COMMITTEE

MEETING HELD OCTOBER 22, 2007

Moved by Councillor J. Webster

Seconded by Councillor L. Kanapathi

That the minutes of the Budget Sub-Committee meeting held on October 22, 2007 be adopted.

CARRIED

2.         STATUS OF 2008 CAPITAL BUDGET

Mr. Joel Lustig, Director of Financial and Client Services, provided a status update of the “pie” breakdown of the 2008 sources of Capital Funding – ($137.7 Million).

3.         MECHANICS OF THE LIFE CYCLE REPLACEMENT

AND CAPITAL RESERVE FUND

The Director of Financial and Client Services explained the mechanics of the Life Cycle Replacement and Capital Reserve Fund.  For Fiscal Year 2007, the Life Cycle and Operating Funded Capital was $22.6M; for Fiscal Year 2008, the amount will be $32.8M.

It was noted that the Life Cycle and Operating Funded Capital will fluctuate every year for new parks, additional vehicles, new roads, and repair and replacement to existing assets.

Committee briefly discussed the use of other funding sources, including hydro dividends.

4.         STATUS OF GAS TAX FUNDING AND PROPOSED

2008 GAS TAX FUNDED PROJECTS

The Director of Financial and Client Services provided an update on the status of gas tax funding to municipalities which is to be used for building environmentally sustainable infrastructure.  Proposed Gas Tax Funded projects for 2008 totalling $1.3M, include: Sustainability Plan; Pathways Master Plan; Cycling Awareness Program; and Cycling Lanes/Pathways.

Mr. Lustig noted that 2009 Gas Tax Funding will be $6.8M, of which $4.2M is committed to Markham District Energy Inc., and therefore, Gas Tax Funding available for 2009 Capital Projects will be $2.6M.

5.         REVIEW OF CAPITAL PROJECTS BY EXCEPTION

Committee had before it for consideration the 2008 Capital and Other Programs Budget, by Department, Version 1 listing, dated October 9, 2007.  In addition, Members received copies of new and adjusted Capital Projects, dated October 25, 2007.

It was noted that the locations of the Projects listed in the 2008 Capital Budget Binder have been categorized according to the previous Ward boundaries.  Members were advised that the Projects affected will be corrected to reflect the new Wards.

Development Services – Economic Development

The Director of Financial and Client Services advised that Projects marked with an “*” are being transferred from the Capital Budget to the Operating Budget, and will not be in the 2009 Budget base.

Moved by Regional Councillor T. Wong

Seconded by Councillor C. Moretti

That the Development Services - Economic Development Projects be approved.

CARRIED

Development Services - Planning

Project #8024 – Annual Top-up – Environmental Planning Program, and Project #8025 – Annual Top-up – Heritage Façade Improve/Sign Replace – Staff was requested to ensure that the 2007 funds have been spent.

Project #8086 – Civic Centre Master Plan – Staff was requested to delay the Civic Centre Master Plan study until a response has been received from the Royal Conservatory of Music.

Project #8292 – Residential/Non-Commercial Heritage Grant Program – Staff was requested to confirm the funding sources for this Program.

Project #8395 – Threatened Heritage Buildings – Staff was requested to review the terms of reference for the Heritage Preservation Account (Reserve) to determine if funds could be used for this Project, and report back to Committee, by memorandum.

Moved by Councillor L. Kanapathi

Seconded by Councillor J. Webster

That the Development Services – Planning Projects be approved.

CARRIED

Moved by Regional Councillor T. Wong

Seconded by Regional Councillor J. Heath

That new Project #8264, Pathways Master Plan Implementation (Phase 1), presented this date, be approved.

CARRIED

Development Services – Design

Project #8016 – Angus Glen Community Park – Design – Staff was requested to consider parking requirements and vehicle circulation in the park design.

Project #8221 – Mount Joy Pedestrian Bridge and Maintenance Building – There was some discussion with respect to the feasibility of including public washrooms in park maintenance buildings.  Staff advised that unisex staff washrooms are included in these buildings at the present time.

Committee raised the matter of the Town contracting out parks maintenance service in the future.  Staff advised that most of the parks maintenance is carried out by temporary staff, summer students and contract staff.  Concern was expressed with respect to a potential increase in cost with the addition of profit margins if these services were contracted out; however, staff advised that other options are being investigated.

Moved by Councillor C. Moretti

Seconded by Regional Councillor T. Wong

That the Development Services – Design Projects be approved.

CARRIED

Development Services – Engineering

Project #8379 – SWM Strategy #5 – Town Wide SWM Rate Study – In response to a query of Committee regarding Storm Water Management, staff advised that a report will be presented to Development Services Committee as soon as possible relating to the status of the SWM study, including information relating to educational components and safety aspects.

Staff advised that Project #8450 – Sanitary Sewer, 404 Business Park, North of Elgin Mills, has been deleted from the Listing.

The Director of Financial and Client Services advised Committee that the following seven (7) revised and new Projects were also being presented for consideration this date, and that the 2008 Capital and Other Programs Budget Summary Listing will be updated for the next Budget Sub-Committee meeting:

Project #8113 – Cycling Awareness Program – Revised

Project #8114 – Cycling Lanes/Pathways – Revised

Project #8299 – Rodick Road Extension, Phase III – Revised

Project #8470 – Castlemore Avenue Extension – New

Project #8471 – Markham Centre Traffic Study Update – New

Project #8472 – Signal at 16th Avenue and Cachet Court – New

Project #8473 – Yonge/Steeles Transportation Study - New

Moved by Councillor L. Kanapathi

Seconded by Councillor C. Moretti

That the Development Services – Engineering Projects listed, with the exception of Project #8450 – Sanitary Sewer, 404 Business Park, North of Elgin Mills, which was deleted, and the additional seven (7) revised and new Projects presented this date, be approved.

CARRIED

Development Services – Commissioner’s Office

Moved by Councillor J. Webster

Seconded by Councillor L. Kanapathi

That the Development Services – Commissioner’s Office Project #8006 be approved.

CARRIED

CAO, Legal, HR & Strategic Initiatives – Human Resources

Moved by Councillor L. Kanapathi

Seconded by Regional Councillor T. Wong

That the CAO, Legal, HR & Strategic Initiatives – Human Resources Projects be approved.

CARRIED

CAO, Legal, HR & Strategic Initiatives – Strategic Initiatives

Moved by Councillor J. Webster

Seconded by Councillor C. Moretti

That the CAO, Legal, HR & Strategic Initiatives – Strategic Initiatives Projects be approved.

CARRIED

CAO, Legal, HR & Strategic Initiatives – CAO’s Office

Moved by Councillor C. Moretti

Seconded by Councillor L. Kanapathi

That the CAO, Legal, HR & Strategic Initiatives – CAO’s Office Projects be approved.

CARRIED

Corporate Services – Legislative Services

Moved by Councillor L. Kanapathi

Seconded by Councillor J. Webster

That the Corporate Services – Legislative Services Project #8340 be approved.

CARRIED

Corporate Services – ITS

Moved by Regional Councillor J. Heath

Seconded by Councillor C. Moretti

That the Corporate Services – ITS Projects be approved.

CARRIED

Corporate Services – Financial Services

Moved by Councillor J. Webster

Seconded by Councillor L. Kanapathi

That the Corporate Services – Financial Services Projects be approved.

CARRIED

Corporate Services – Corporate Communications

Project #8146 – Exterior Branding at Town Facilities – Members were advised that staff will be looking at the exterior branding of all municipal facilities, with a view to developing a common look and feel throughout the Town.  As there are currently several different categories of signs, with no consistency, cohesive exterior signage will be developed through the services of a design consultant, and a cross-organizational team.  Staff was requested to provide a “Part A type” presentation to General Committee prior to a staff report being prepared for Council’s consideration.

Project #8397 – Town Calendar – Committee requested staff to thoroughly investigate the feasibility of incorporating Markham’s Waste Collection Schedule in the Town’s calendar.

Moved by Councillor C. Moretti

Seconded by Regional Councillor J. Heath

That the Corporate Services – Corporate Communications Projects be approved.

CARRIED

Community and Fire Services – Museum

Moved by Councillor C. Moretti

Seconded by Councillor L. Kanapathi

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

CARRIED

Community and Fire Services – Theatre

It was requested that Project #8274 be deferred, and staff advised that it will be presented at the next meeting of the Budget Sub-Committee with more information.

Moved by Regional Councillor T. Wong

Seconded by Regional Councillor J. Heath

That Community and Fire Services – Theatre Project #8274 – Public Area Upgrade be deferred and referred to the November 12, 2007 Budget Sub-Committee for consideration.

CARRIED

Moved by Regional Councillor J. Heath

Seconded by Regional Councillor T. Wong

That Community and Fire Services – Theatre Project #8090 be approved.

CARRIED

Community and Fire Services – Arts Centres

Project #8418 Varley Gallery Exterior Signage Replacement – In response to Committee’s suggestion that the signage not be replaced until completion of the Exterior Branding review, staff advised that some of the signs are deteriorating and require immediate replacement.  It was also requested that the “directory sign” on Carleton Road be replaced by signage that is artistic and more in keeping with the Gallery.

Moved by Regional Councillor T. Wong

Seconded by Councillor C. Moretti

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

CARRIED

Community and Fire Services – Recreation/Library Construction

Moved by Councillor J. Webster

Seconded by Regional Councillor J. Heath

That Community and Fire Services – Recreation/Library Construction Project #8200 be approved.

CARRIED

Community and Fire Services - Fire

Project #8044 – Back-up Amateur Radio and Generator Facilities for EOC – Committee requested a breakdown of the costs of the proposed Project, and staff advised that details will be presented at the November 12th Budget Sub-Committee meeting.

Project #8098 – Fire Pumper and Equipment for Next Fire Station – Staff was requested to correct the wording of this Project in the 2008 Capital Binder description to read “next fire station”.

Moved by Councillor L. Kanapathi

Seconded by Councillor J. Webster

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

CARRIED

Community and Fire Services – Recreation Services

Project #8009 – Angus Glen C.C. – Exterior Wood Sealant – Committee expressed concern regarding such work being required so soon after the opening of the building, and staff advised that treatment is required to prevent further degradation and colour change in the wood.

Project #8014 – Angus Glen C.C. – Angus Glen Security System Upgrade – Committee queried the need for such an early upgrade, and staff advised that more exterior cameras are needed due to the increased volume of visitors.

Project #8033 – Armadale C.C. – Digital Marquee – In response to Committee’s concern regarding the need to standardize the design and size of digital marquees at Town facilities, staff advised that the Marquees would be included in the external branding review, and there would be standardization before the project moves forward.

Committee expressed some concern regarding the need for signage for public washrooms at Crosby C. C.  Staff advised that that they will be addressing the washroom signage issue on Main Street Unionville, and would also be reporting back to Council in the near future on this matter in general.

Project #8304 – Rouge River C.C. – Basement refurbishing – Staff advised that the Project is for minor work to be done, such as painting and the replacement of well-worn ceiling tiles.  There was some discussion regarding the feasibility of totally refurbishing the basement instead, however, Members were advised that the gutting and replacement of the basement is not in the Master Plan at this time.  Staff will provide more information and options available at the November 12 Budget Sub-Committee meeting.

It was requested that in future more information be provided prior to the annual Budget process with respect to asset life cycle replacement, and staff advised that this will be included when the Reserve Study annual update is provided to Council.

Project #8220 – Morgan Pool – Structural renovations, building – Some concern was expressed with the flooring in the women’s change rooms at Morgan Pool, and staff advised that this will be investigated and a report will be presented at the November 12  Budget Sub-Committee meeting.

Moved by Regional Councillor T. Wong

Seconded by Councillor C. Moretti

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

CARRIED

Community and Fire Services – Operations - Roads

Project #8181 – LED Traffic Signal Retrofit & Replacement Program – Committee raised the matter of “pedestrian countdown traffic signals”.  Members were advised that “audible traffic signals” have been installed at some intersections in Markham, and staff would follow-up on the use of pedestrian countdown traffic signals.

Project #8148 – Fence Replacement – Mowatt Court – Committee queried the status of the Town’s Fence Improvement Program, and staff was requested to provide an update on the Program, including financial information, and the status of the three-way cost sharing agreement, at the November 12 Budget Sub-Committee meeting.

Moved by Deputy Mayor J. Jones

Seconded by Regional Councillor J. Heath

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

CARRIED

6.         NEXT STEPS

The Director of Financial and Client Services advised that the following items would be discussed at the next meeting of the Budget Sub-Committee meeting, scheduled for November 12, 2007:

completion of review of Capital Budget by exception

Councillor requests

status of Operating Budget

status of Building Standards, Planning & Design, Engineering and Waterworks Operating Budgets

ADJOURNMENT

Moved by Councillor J. Webster

Seconded by Councillor C. Moretti

That the second 2008 Budget Sub-Committee meeting adjourn. (3:55 p.m.)

CARRIED