MINUTES

1.

It was moved and seconded

That the minutes of the meeting of the Finance Select Committee held on Monday, April 26th, 2004, be adopted as circulated.

CARRIED

2.

2005 UTILITY BUDGETS

(Report:  Nov. 3, 2004; File No:  12-8060-20-7851/7852/7853)  (REDMS No. 1340951, 1351067, 1350602, 1350421) 

The Manager, Environmental Programs, Suzanne Bycraft, the Manager, Water Services, Steve McClurg, and the Manager, Sewerage & Drainage, J. Doug Anderson, were present to respond to questions from the Committee.  (Prior to discussion of the report, copies of an amended Page 5 to the staff report, and an amended Page 3 to the Proposed Budget background information were circulated to Committee members.)

Discussion then ensued among Committee members and staff on:

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the GVRD 12% year-over-year increase for water purchases and the application of the City’s ‘water levelling’ fund to offset the impact of the increase

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whether the City’s goal of having a certain number of residents switching to water meters was being achieved

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the West Nile Virus Treatment program, the threat posed by catch basins and inspection chambers; the proposed use of ‘briquets’ to control the virus and whether other options had been considered; and the rationale for including $165,000 in the budget prior to Council approval of the treatment plan

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the minimum quarterly water charge for metered properties and the rationale for increasing the amount from $10 to $20

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the rationale for the increase in program costs as a result of increased demand for litter collection

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what action was being undertaken to reduce curb side garbage collection, and at the same time, increase the recycling program; whether anything was being done about the amount of recyclable materials being deposited in garbage and if any opportunity existed to monitor garbage; and the need to reduce the amount of garbage being deposited into landfills.

During the discussion, staff were requested to provide information on those areas which required sewer and water infrastructure replacement, and how many areas had been completed.  Reference was made to a report prepared in 2001, and staff were requested to provide an update to all members of Council.

The Chair referred to the proposed sewer budget and noted that while the rates had increased, expenditures had decreased, and he questioned whether it was achievable to maintain the same sewer rates for 2005 as 2004 by reducing the budget by $170,000.  Staff confirmed that the 2005 sewer budget could be maintained at the 2004 rates, and as a result, advice was given that a new report, and accompanying bylaw would be submitted to Council. 

It was moved and seconded

(1)

That the 2005 Utility Expenditure Budgets (as presented in the staff report dated November 3, 2004 from the Managers of Water, Sewer & Environmental Programs), be approved as the basis for establishing the 2005 Utility Rates.

(2)

That the following bylaws, which bring into effect the 2005 Utility Rates, be introduced and given first, second and third readings:

(a)

Waterworks and Water Rates Bylaw No. 5637, Amendment Bylaw No. 7851 (2005);

(b)

Sanitary Sewer System and Drainage System Bylaw No. 7551, Amendment Bylaw No. 7852 (2005); and

(c)

Solid Waste and Recycling Regulation Bylaw No. 6803, Amendment Bylaw No. 7853 (2005).

CARRIED

3.

2005 CAPITAL BUDGET

(Report:  Nov. 2/04, File No.:  03-0970-01) (REDMS No. 1350414)

The Director of Finance, Andrew Nazareth, accompanied by the Manager, Revenue & Tax, Ivy Wong, briefly reviewed the 2005 Capital Budget report with the Committee.

Discussion then took place on:

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the possible realignment of River Road

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replacement of the Minoru Park Fieldhouse/caretaker suite and park washrooms, and the rationale for including this particular project in the budget when the Parks Master Plan had not yet been completed

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the inclusion of three specific park projects – construction work in the McLennan North Community Park; development of the Terra Nova North-West Quadrant Park; and redevelopment of Steveston Park, and the anticipated cost of each of the three projects

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the rationale for including funding to continue with the waterfront improvement projects when the City was in the process of developing the Olympic Oval

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the renovations to the Britannia Heritage Shipyard at a cost of $400,000

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the proposed Stores Warehouse Post Disaster Renovation

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the rationale for the inclusion of funds for affordable housing projects

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the impact of the proposed budget on Richmond property owners if the revenue generated from gaming had not been included in the budget to reduce the proposed property tax increase

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whether construction would be able to proceed on the Hamilton and Sea Island Fire Halls, and how funding would be provided

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how financing would be provided to complete construction of the Olympic Oval on River Road through statutory reserve accounts, unappropriated and appropriated surpluses

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the City’s long term financial strategy and how it compared to the rates being proposed in the budgets now being considered by the Committee

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the current drainage problems occurring in East Richmond and the farming areas and whether the proposed drainage program would result in improvements being made to these areas

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the Britannia Heritage Shipyard; whether a plan existed for the restoration of the site, and the projects to be financed by the proposed $400,000 expenditure

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whether the funds proposed within the Land Acquisition Program were allocated for specific purchases or would there be funds available for unexpected purchases

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how the City would finance the possible acquisition of the DFO lands

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waterfront improvement projects and the need to follow through on the development of the tram route in Steveston

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the annual fleet replacement program

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the Arterial Road Crosswalk Improvement program and whether there were sufficient funds available in the program for unplanned projects

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the lack of funding within the budget for the installation of drainage systems in sports fields, and how funding could be found to improve drainage in parks.

(Councillor Dang left the meeting at 6:30 p.m., during discussion on the above matters, and did not return.)

With reference to the Minoru Park Fieldhouse/Caretaker Suite and park washrooms project, concern was expressed about the construction of the new facility prior to completion of the Parks Master Plan.  As a result of the discussion on the Minoru Park Fieldhouse/Caretaker Suite and park washrooms, staff were requested to delete the project from the budget and to transfer the funds to ‘Parks Minor Capital’. 

However, discussion continued on how the funds would be expended, during which concern was expressed about the possible lack of control.  As a result, the following motion was introduced:

It was moved and seconded

(1)

That the 2005 Capital Budget be adopted for inclusion in the 2005 Five Year Financial Plan (2005 – 2009) Bylaw.

(2)

That staff be authorized to commence construction of the 2005 capital projects effective January 1^st, 2005.

(3)

That the Minoru Park Fieldhouse/Caretaker Suite and park washrooms project, in the amount of $565,000, be re-designated as “Parks Minor Capital”, and that no funds be expended without the approval of Council.

The question on the motion was not called, as staff were requested to provide information to Council on (i) the status of the funds which were available to finance the cost of constructing the community safety buildings; (ii) an analysis of the statutory reserve accounts; and (iii) the status of the budget as it compared to the City’s Long Term Financial Sustainability Strategy.

As well, reference was made to the 2001 Infrastructure report, and staff were requested to report through the Public Works & Transportation Committee on (i) the improvements which have been made to the City’s infrastructure system since 2001, and (ii) what the next steps would be.

The question on the motion was then called, and it was CARRIED.

4.

2005 OPERATING BUDGET

(Report:  Nov. 2/04, File No.:  03-0970-01) (REDMS No. 1350407)

5.

2005 ADDITIONAL LEVEL REQUESTS

(Report:  Nov. 2/04, File No.:  03-0970-01) (REDMS No. 1350749)

It was moved and seconded

That Item Nos. 4 and 5 of the agenda, 2005 Operating Budget and 2005 Additional Level Requests respectively, be referred to a meeting of the Finance Select Committee to be held on Monday, November 15^th, 2004, immediately following the General Purposes Committee.

CARRIED

ADJOURNMENT

It was moved and seconded

That the meeting adjourn (6:45 p.m.).

CARRIED

Certified a true and correct copy of the Minutes of the meeting of the Finance Select Committee of the Council of the City of Richmond held on Tuesday, November 9^th, 2004

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Councillor Kiichi Kumagai
Chair

Fran J. Ashton
Executive Assistant, City Clerk’s Office