FIFTH MEETING OF THE

2009 BUDGET SUB-COMMITTEE

CANADA ROOM, MARKHAM CIVIC CENTRE

DECEMBER 8, 2008

MINUTES

Budget Sub-Committee: Mayor F. Scarpitti Deputy Mayor J. Heath Regional Councillor J. Jones Regional Councillor T. Wong Councillor V. Burke Councillor E. Shapero Councillor J. Virgilio (3:30 p.m.) Councillor J. Webster Councillor C. Moretti Councillor D. Horchik, Chair Councillor L. Kanapathi Councillor A. Chiu Regrets: Regional Councillor G. Landon Councillor E. Shapero

Staff J. Livey, Chief Administrative Officer J. Baird, Commissioner of Development Services A. Taylor, Commissioner of Corporate Services B. Librecz, Commissioner of Community and Fire Services J. Lustig, Director of Financial and Client Services D. Taylor, Acting Director, Strategic Initiatives I. Kutter, Auditor General S. Chait, Director, Economic Development C. Biss, CAO, Markham Public Libraries P. Loukes, Director, Operations P. Ingham, General Manager, Operations A. Brown, Director, Engineering S. Andrews, Director, Asset Management J. Klaus, General Manager, Waterworks S. Tam, Manager, Business Planning and Innovation A. Tang, Manager, Financial Planning J. Kee, Committee Clerk

The Fifth 2009 Budget Sub-Committee meeting convened at the hour of 2:35 p.m. with Councillor D. Horchik in the Chair.

1. MINUTES FROM THE NOV. 24TH AND DEC. 1ST BUDGET

SUB-COMMITTEE MEETINGS (APPENDIX A)

Moved by Councillor A. Chiu

Seconded by Councillor J. Webster

That the minutes of the November 24, 2008 and December 1, 2008 Budget Sub-Committee meetings be adopted.

CARRIED

2. RESPONSES TO QUESTIONS FROM PREVIOUS BUDGET

SUB-COMMITTEE MEETINGS (APPENDIX B)

Committee had before it Appendix B, a document detailing responses to eleven (11) questions from previous Budget Sub-Committee meetings. Mr. Joel Lustig, Director of Financial and Client Services, reviewed the responses and noted that two projects included in this list required approval of Committee.

Project #9056 – Creative City Sector Program

Moved by Councillor J. Webster; Seconded by Councillor A. Chiu

That Project #9056 – Creative City Sector Program – be approved in the amount of $20,000.

CARRIED

Project #9291 – Intersection Improvements; and Project #9292 – Traffic Operational Improvements – Staff presented a listing of the intersections requiring improvements and Committee queried the timing of the improvements at the intersection of Main Street Markham and Bullock/Parkway, with respect to the Class Environmental Assessment study being undertaken. Staff advised that it will be kept on the list, but work will be done later in the spring of 2009, once the EA is completed.

Clarification Regarding the Term “Top-Up” - Staff provided further clarification of the top-up process, and Committee asked that staff provide details on each of the Planning top-up projects, including a full explanation of each program/project. Members were advised that the issue relates to tangible fixed assets, and the Operating projects currently in Capital will continue to be listed as Operating projects, however, due diligence review will continue.

Project #9337 – Growth Management Communications Program

Moved by Councillor A. Chiu; seconded by Councillor C. Moretti

That Project #9337 – Growth Management Communications Program be approved in the amount of $100,000.

CARRIED

Moved by Regional Councillor T. Wong; Seconded by Councillor J. Webster

That the Responses to Questions from Previous Budget Sub-Committee Meetings, Appendix B, be received.

CARRIED

Trees for Tomorrow Projects – Capital Status - A Briefing Note from the Commissioner of Community and Fire Services was distributed providing information on the status of the previously approved Trees for Tomorrow capital projects and associated tree planting programs.

Moved by Mayor F. Scarpitti; Seconded by Councillor L. Kanapathi

That the Briefing Note on the status of the Trees for Tomorrow capital project and associated tree planting programs be received.

CARRIED

Project #9288 Train Anti-Whistle Project – The Commissioner of Development Services advised that a briefing note will be distributed to Members for the next Budget Sub-Committee for discussion of this Project.

3. STATUS OF THE 2009 OPERATING BUDGET

The Director of Financial and Client Services provided details of the current status of the 2009 Operating Budget. Members were advised that with the reductions approved at the November 24^th meeting and the December 1^st meeting, the 2009 Operating Budget Shortfall is currently at $0.42M, with a tax rate increase of 0.40%.

Mr. Lustig reviewed further reductions determined by staff, which would bring the 2009 Operating Budget Shortfall to $0.00M, and a tax rate increase of 0.00%.

Moved by Mayor F. Scarpitti; Seconded by Regional Councillor T. Wong

That the following further reductions be approved, providing a revised shortfall of $0.00M and a 0.00% tax rate increase:

• Dog Off Leash Area Fencing $0.04M
• Volunteer Ice Rink $0.03M
• Adopt a Park and Colour Your Corner $0.02M
• 8100 Warden Parks Maintenance $0.05M
• ITS Core Base Architecture $0.01M
• Corporate-wide Expenditure Reductions $0.18M

• Insurance Premium $0.05M
• Chargeback to Waterworks on Water Arrears Activities $0.04M

CARRIED

Mayor F. Scarpitti extended appreciation to the Director, Financial and Client Services, staff, and the Chair of the Budget Sub-Committee for the work undertaken to date.

4. 2010 OPERATING BUDGET PROJECTION

The Director, Financial and Client Services, advised that staff have developed a 2010 Operating Budget projection. He noted that with the implementation of the E3 initiatives in 2009, and other revenue and expenditure assumptions, the forecasted 2010 operating budget shortfall will be approximately $2,960K, or a tax rate increase of 2.8%. Assumptions on items included in the 2010 Operating Budget forecast were reviewed.

There was some discussion regarding the process to deal with motions for the reconsideration of matters, and it was agreed such motions would be dealt with at the next meeting of the Budget Sub-Committee scheduled for January 12, 2009.

In conjunction with this, the Committee Clerk was requested to place the minutes of the Budget Sub-Committee meetings held on November 24, 2008 and December 1, 2008 on the Agenda of the General Committee meeting of January 19, 2009 to be received.

Members briefly discussed the ramp-ups and phase-ins, and staff advised that they will provide a ramp-up reserve continuity schedule to fund winter maintenance, Cornell Fire Station, CSIO and the next community centre/library.

Moved by Councillor A. Chiu; Seconded by Councillor C. Moretti

That the information presented regarding the 2010 Operating Budget projection be received.

CARRIED

5. LIFE CYCLE RESERVE FUND REVENUE ASSUMPTIONS

POWERSTREAM/MEC/MDEI

In response to a query from the last Budget Sub-Committee meeting, the Director, Financial and Client Services, provided details regarding the Life Cycle Replacement and Capital Reserve Fund revenue received from PowerStream interest income and dividend income, Markham Enterprises Inc., and Markham District Energy Inc. He noted that the Reserve Fund will be adjusted and updated in 2009 as a result of the merger of PowerStream with Barrie Hydro.

Staff was requested to provide to Committee a breakdown of the revenue assumptions for the next twenty-five (25) years.

Moved by Regional Councillor J. Jones; Seconded by Councillor V. Burke

That the information presented regarding the Life Cycle Reserve Fund revenue be received.

CARRIED

6. COUNCILLOR’S REQUESTS

The Director, Financial and Client Services requested Members of Committee to forward their requests to staff as soon as possible, so that they will be addressed at the next meeting of the Budget Sub-Committee in January.

Career Bridge and Ability Edge – Additional Interns - Members were advised that one request has been received to date for four (4) additional Career Bridge and four (4) Ability Edge interns, at a total cost of $160K. Regional Councillor Tony Wong provided details. Following some discussion, it was suggested that before a decision could be made, staff be requested to provide information respecting potential funding from the Province.

Moved by Deputy Mayor J. Heath; Seconded by Councillor J. Virgilio

That the request for additional Career Bridge and Ability Edge interns be deferred; and

That staff be requested to provide budget details and costing information, and

That the matter be referred to the next Budget Sub-Committee meeting scheduled for January 12, 2009.

CARRIED

7. SUMMARY OF CHANGES TO THE 2009 CAPITAL BUDGET (APPENDIX C)

The Director, Financial and Client Services, reviewed the summary of changes to the previously approved Planning capital projects (Appendix C), showing a total reduction of $138,500.

Moved by Deputy Mayor J. Heath; Seconded by Councillor J. Virgilio

That the following changes, as outlined in Appendix C as follows, be approved:

• Project 9058 – Annual Top Up – Markham Centre Advisory Group
• Project 9059 – Annual Top Up – Heritage Façade Improve/Sign Replacement
• Project 9064 – Annual Top Up – Consultant Studies
• Project 9070 – Annual Top Up – Markham Centre Communications Programme
• Project 9072 – Annual Top Up – OMB Growth Related Hearings
• Project 9077 – Annual Top Up – Milliken & Cornell Public Advisory Support

CARRIED

8. PRE-APPROVAL OF THE 2009 CAPITAL PROJECTS (APPENDIX D)

The Director, Financial and Client Services, distributed copies of Appendix D, a listing of capital projects requiring approval prior to the finalization of the 2009 Budget in order that tenders and contracts may be awarded. He noted that benefits of pre-approving specific capital projects include:

- specific capital projects are started/completed in a timely manner; and

- favourable pricing is obtained from suppliers

Members reviewed each of the Projects requests for pre-approval, as follows:

Development Services – Economic Development:

Project #9052 – China and India Economic Alliance & Investment Attraction –Committee had requested further information regarding this Project, Mr. Stephen Chait, Director of Economic Development, distributed a briefing note outlining details of the program.

Moved by Deputy Mayor J. Heath; Seconded by Councillor L. Kanapathi

That Project #9052, China and India Economic Alliance & Investment Attraction be pre-approved in the amount of $60,000 and forwarded to General Committee on December 15, 2008 and Council on December 16, 2008.

CARRIED

Some concern was expressed regarding pre-approval of the entire Budget request, and following further discussion, it was suggested that the matter be reconsidered. The Chair advised that a motion to reconsider would have to be put forward and would require a two-thirds vote.

Moved by Regional Councillor J. Jones; Seconded by Mayor F. Scarpitti

That the vote on the motion regarding Project #9052 be reconsidered.

CARRIED

(2/3rd vote to consider was required and obtained)

Moved by Regional Councillor J. Jones; Seconded by Mayor F. Scarpitti

That a portion of Capital Project #9052 - China and India Economic Alliance & Investment Attraction, be pre-approved as part of the 2009 Capital Budget, as follows:

a) Participate in Trillium Medical Technology Association (TMTA) business mission to China (Spring 2009) including attendance at world's 2nd largest medical device trade show - $15,000, and

b) Participate in Greater Toronto Marketing Alliance (GTMA) business mission to Mumbai, India (February) to attend "FRAMES" the largest digital media trade show and conference in Asia - $15,000

CARRIED

(Committee agreed to separate the question)

Moved by Regional Councillor T. Wong; Seconded by Councillor J. Webster

That the following Development Services – Economic Development Projects be pre-approved: - #9053 – National Centre for Medical Device Devt. and Special Projects - $40,000;

- #9054 – Economic Alliance and Twinning Program - $15,000; and

That they be forwarded to General Committee on December 15, 2008 and Council on December 16, 2008.

CARRIED

Development Services – Planning; Design; Engineering; and

CAO, Legal, HR & Strategic Initiatives:

Moved by Councillor C. Moretti; Seconded by Councillor J. Virgilio

That the following Development Services – Directed Growth Strategy Projects be pre-approved:

- #9057 – Growth Management Contract Staff - $227,300;

- #9076 – Growth Management Strategy – Community Infrastructure Capacity

Review –- $75,000;

- #9337 - Growth Management Communications Program - $50,000; and

That the following Development Services – Planning Projects be pre-approved:

- #9059 – Annual Top Up – Heritage Façade Improve/Sign - $17,500;

- #9068 – Markham Centre – Finalize Streetscape Details - $75,000;

- #9069 – Markham Centre U. D. Guidelines – Built Form & Open - $150,000,

- #9349 – Markham Centre – East Precinct Plan - $150,000; and

That the following Development Services – Design Projects be pre-approved:

- #9088 – Leitchcroft (Times Galleria) Community Park – Construction - $2,278,100;

- #9332 – Civic Centre – Interlocking Brick Replacement - $280,100; and

That the following Development Services – Engineering Projects be pre-approved:

- #9300 – Rodick Road Extension – PH III (14^th to Esna Park) - $500,000;

- #9320 – Enterprise Drive – PH II Construction - $7,825,000;

- #9325 – Main Street, Unionville, South of Hwy 7 - $3,696,000; and

That the following CAO, Legal, HR & Strategic Initiatives – Human Resources Projects be pre-approved:

- #9000 – Diversity Initiative – External Consultant - $15,000;

- #9002 – Legislatively Mandated Accessibility Training - $60,000 and

That these Projects be forwarded to General Committee on December 15, 2008 and Council on December 16, 2008.

CARRIED

Community & Fire Services – Recreation Services

Committee requested staff and the Ward Councillor to meet again with representatives of the Unionville Curling Club to discuss possible future plans for redevelopment at Crosby Arena. Staff was also requested to report back prior to the tender being awarded.

Moved by Councillor J. Virgilio; Seconded by Mayor F. Scarpitti

That Community & Fire Services – Recreation Services Project #9139 – Crosby Arena - $800,000 be pre-approved and forwarded to General Committee on December 15, 2008 and Council on December 16, 2008; and

That the Commissioner of Community & Fire Services be requested to report back prior to the tender being awarded.

CARRIED

Moved by Councillor V. Burke; Seconded by Regional Councillor J. Jones

That the following Community & Fire Services – Recreation Services Projects be pre-approved:

- #9136 – Milliken Mills C. C. – Soccer Dome – Field Replacement - $250,000;

- #9162 – Thornhill C. C. – Rink Beam Repair – Low E Ceiling Replacement - $165,000; and

That they be forwarded to General Committee on December 15, 2008 and Council on December 16, 2008.

CARRIED

Community & Fire Services –Operations

There was some discussion regarding the current paving methods, and staff was requested to investigate other options relating to paving technology for roads, parking lots, pathways, and sidewalks.

Moved by Councillor Virgilio; Seconded by Regional Councillor J. Jones

That the following Community & Fire Services – Operations (Roads and Parks) Projects be pre-approved and forwarded to General Committee on December 15, 2008 and Council on December 16, 2008:

- #9166 – Asphalt Resurfacing – Annual Program - $150,000;

- #9168 – Emergency Repairs – Annual Program - $104,000;

- #9170 – Localized Repairs – Curb & Sidewalk – Annual Program - $520,200;

- #9171 – Parking Lots - $506,100;

- #9182 – Railway Crossing Improvements – Annual Program - $30,000;

- #9188 – Trees for Tomorrow – Replacement of Boulevard/Park Trees – Annual Program - $153,000;

- #9186 – Trees for Tomorrow – Paving Pathways & Facilities – Annual Program - $106,100

CARRIED

Community & Fire Services – Facility Assets

Members were advised that this Project includes the design and drawings for space planning changes at the Civic Centre and at 8100 Warden Avenue. It was noted that currently a number of staff are located in the basement of the Civic Centre, and they should be moved to natural light locations as soon as possible.

Moved by Regional Councillor J. Jones; Seconded by Councillor J. Virgilio

That Community & Fire Services – Facility Assets Project #9218 – Corporate Space Planning - $500,000 be pre-approved and forwarded to General Committee on December 15, 2008 and Council on December 16, 2008:

CARRIED

Community & Fire Services – Right-of-Way Assets

Moved by Councillor V. Burke; Seconded by Deputy Mayor J. Heath

That Community & Fire Services – Right-of-Way Assets Project #9239 – Glynwood Surcharge Sewer Construction - $275,000 be pre-approved and forwarded to General Committee on December 15, 2008 and Council on December 16, 2008.

CARRIED

Community & Fire Services – Operations - Fleet

Moved by Councillor C. Moretti; Seconded by Mayor F. Scarpitti

That Community & Fire Services – Operations – Fleet Project #9244 – Corporate Fleet Replacement – Annual Program - $362,530 be pre-approved and forwarded to General Committee on December 15, 2008 and Council on December 16, 2008.

CARRIED

Moved by Councillor J. Virgilio; Seconded by Councillor A. Chiu

That Community & Fire Services – Operations – Fleet Project #9247 – Corporate Fleet Refurbishing – Annual Program - $33,600 be pre-approved and forwarded to General Committee on December 15, 2008 and Council on December 16, 2008.

CARRIED

Community & Fire Services - Waterworks

Moved by Councillor J. Webster; Seconded by Regional Councillor J. Jones

That Community & Fire Services – Waterworks Project #9284 – Water Meter Replacement/Upgrade Program - $200,000 be pre-approved and forwarded to General Committee on December 15, 2008 and Council on December 16, 2008.

CARRIED

9. PROPOSED GRANT ALLOCATIONS (APPENDIX E)

Members had before them Appendix E, listing the proposed grant allocations, and the Director of Financial and Client Services reviewed the information, including the Municipal Infrastructure Investment Initiative Grant (MIII); the Federal Gas Tax; the Municipal Road & Bridge Infrastructure Investment Grant; and the Infrastructure Grant.

Committee was reminded that staff had delivered a presentation to General Committee in September of 2008 reviewing the 2008 grants and providing a list of potential projects. A copy of this list of projects recommended by staff to be funded from Grants was presented. Members discussed the projects briefly, and staff advised that the grants have provided the Town an opportunity to move forward with some of the projects.

Staff also provided a list of projects to be funded from Other non-grant funding sources. It was noted that Project #9259 – Library Expansion be identified as “Milliken” only and not Thornhill. In response to a query regarding future plans at the Thornhill Library, and the potential of a library facility at Armadale Community Centre, staff advised that a response would be presented at the next meeting. Committee also queried whether the Milliken Library Feasibility Study will be based on 6000 sq. ft. or 15,000 sq. ft.

Committee queried the process for the rating of the projects, and staff advised that the rating is based on the criteria associated with the grants; and extensive meetings with staff to determine priorities.

Members were advised that approval was not required at this time, and that the entire list of projects will be brought back to the next Budget Sub-Committee meeting for consideration and approval.

Moved by Councillor A. Chiu; Seconded by Councillor Deputy Mayor J. Heath

That the information regarding the proposed grant allocations be received.

CARRIED

10. DATE OF NEXT MEETING

The Mayor complemented staff and the Chair on the information received this date, noting that all had been well thought out and well presented.

The next meeting of the Budget Sub-Committee is scheduled for:

Monday, January 12, 2009

1:30 p.m. to 4:30 p.m.

Canada Room, Markham Civic Centre

ADJOURNMENT

Moved by Regional Councillor T. Wong; Seconded by Councillor J. Virgilio

That the Fifth Budget Sub-Committee meeting adjourn. (5:35 p.m.)

CARRIED