December 2, 2019 - Minutes

Date:

Monday, December 2, 2019

Place:

Anderson Room
Richmond City Hall

Present:

Mayor Malcolm D. Brodie, Chair
Councillor Chak Au (entered at 5:39 p.m.)
Councillor Carol Day
Councillor Kelly Greene
Councillor Alexa Loo
Councillor Bill McNulty
Councillor Linda McPhail
Councillor Harold Steves
Councillor Michael Wolfe

Call to Order:

The Chair called the meeting to order at 5:38 p.m.

MINUTES

It was moved and seconded

That the minutes of the meeting of the Finance Committee held on November 4, 2019, be adopted as circulated.

CARRIED

RICHMOND PUBLIC LIBRARY

1.

2020 OPERATING AND CAPITAL BUDGETS FOR RICHMOND PUBLIC LIBRARY
(File Ref. No.) (REDMS No.)

Susan Walters, Chief Librarian, Richmond Public Library, spoke on the Richmond Public Library’s proposed 2020 Operating and Capital Budget, noting that two additional library staff positions and an automated materials handling system to expand services and programs are proposed.

Cllr. Au entered the meeting (5:39 p.m.).

Discussion ensued with regard to pursuing Provincial and grant funding opportunities, and streamlining labour costs.

In reply to queries from Committee, Ms. Walters noted that there are opportunities to place library practicum students in temporary positions; however permanent staff would be required to provide consistent service. Also, Ms. Walters commented on the Inspire Curiosity Campaign with Richmond School District No. 38, noting that the program would only utilize Library staff time and is not anticipated to incur any additional costs.

It was moved and seconded

That the 2020 Richmond Public Library budget of $9,862,500 as presented in Attachment 1 from the Chief Librarian and the Secretary to the Board, be approved.

CARRIED

FINANCE AND CORPORATE SERVICES DIVISION

2.

2020 Capital Budget
(File Ref. No. 03-0985-01) (REDMS No. 6243131 v. 2)

Staff spoke on the proposed 2020 Capital Budget highlighting that the funding for the new Capstan Station was received from developers and will be released to TransLink. Staff added funding for the Minoru Centre for Active Living pool reconstruction was included in the proposed Capital Budget in order to expedite the work; however it is anticipated that those costs will be recovered at a future date.

Discussion ensued with regard to:

§   

the proposed improvements to the Richmond Ice Centre;

§   

the proposed infrastructure upgrades for the Minoru Park Lake;

§   

future development of the Steveston Community Centre;

§   

the feasibility of replacing current fleet vehicles with electric models;

§   

source funding for parks and land acquisition;

§   

the optimization of funds dedicated to affordable housing and the process to transfer funds between different reserve accounts;

§   

expansion of the City’s cycling network;

§   

the proposed accessibility improvements including power-assist doors in the Library Cultural Centre;

Cllr. Greene left the meeting (6:09 p.m.) and returned (6:11 p.m.).

§   

contribution of developers to the Public Art Program and allocation of those funds to specific projects;

§   

deferring funding for the proposed Integration of Emergency Notification System to MyRichmond to a future budget cycle;

§   

communicating proposed improvements to Burkeville drainage utilities to Burkeville residents;

§   

the cost of an electric vehicle autonomous renewable charging station, including maintenance costs;

§   

the feasibility to develop multiple bicycle parks simultaneously;

§   

the proposed utilization of driving simulators to train and evaluate Richmond Fire-Rescue members;

§   

reviewing acquisition options for a joint Richmond Fire-Rescue and Richmond RCMP Command Vehicle;

§   

cost recovery options for various intersection improvements;

§   

the installation of new LED street lights and options to reduce light pollution;

Cllr. Greene left the meeting (6:24 p.m.) and returned (6:27 p.m.).

§   

current enhancement projects underway to improve the ecological drainage network and costs allocated towards invasive species management;

§   

reviewing alternative streetscape recycling containers;

§   

the development of pickle-ball courts in South Arm Park and options to install noise mitigation features in pickle-ball courts;

Cllr. Steves left the meeting (6:37 p.m.).

§   

cost comparisons between concrete medians and delineators in cycling lanes;

§   

utilizing RCMP funding to construct a Community Safety Building Inventory Room;

§   

options to utilize permanent City staff instead of consulting services for certain projects;

Cllr. Steves returned to the meeting (6:37 p.m.).

§   

the contributions of the Steveston Community Association towards playground improvements in  Steveston Community Park; and

§   

proposed installation of intersection cameras and options to install signage alongside those cameras.

As a result of the discussion, staff were directed to provide Council with additional information on the following:

§   

the potential usage of the Industrial Use Fund for affordable housing;

§   

Strategic Real Estate Acquisition Plan in a confidential memorandum;

§   

the cost of an electric vehicle autonomous renewable charging station and the cost to power the station;

§   

feasibility of a Command Vehicle for Richmond Fire-Rescue and Richmond RCMP;

§   

the relative costs of the different types of medians for cycling lanes; and

§   

a map of the current cycling lane network and future network expansion.

It was moved and seconded

(1)

That the 2020 Capital Budget as presented in Appendix 3 totalling $155,651,559 be approved and staff be authorized to commence the 2020 Capital Projects; and

(2)

That the 2020 Capital Budget totalling $155,651,559 and the 2021-2024 Capital Projects be included in the Consolidated 5 Year Financial Plan (2020-2024).

The question on the motion was not called as discussion ensued with regard to expanding the City’s cycling lane network. In reply to queries from Committee, staff noted that the design and installation of a cycling lane typically takes approximately two years and that design costs typically account for approximately 10% of the project’s total cost. Staff added that in some cases, street parking along arterial roads may be modified or removed to accommodate for a new cycling lane.

Cllr. Wolfe left the meeting (6:53 p.m.) and returned (6:55p.m.).

Information on the proposed cycling and pedestrian multi-use pathway on the south side of Steveston Highway from Mortfield Gate to No. 2 Road was distributed (attached to and forming part of these minutes as Schedule 1).

A referral motion to refer the cycling and pedestrian multi-use pathway on the south side of Steveston Highway from Mortfield Gate to No. 2 Road back to staff to explore alternatives was introduced, but failed to receive a seconder.

Discussion then took place on expanding the City’s cycling network and including the design portion costs of such an expansion to the proposed 2020 Capital Budget.

As a result of the discussion, the following amendment motions were introduced:

It was moved and seconded

That funding for the design component of the potential extension of the cycling network at No. 2 Road (Steveston Highway to Williams Road), in the amount of $240,000, as presented in Appendix 9 of the 2020 Capital Budget, be included in the 2020 Capital Budget.

CARRIED

It was moved and seconded

That funding for the design component of the potential extensions of the cycling network at Cook Road (No. 3 Road to Garden City Road) and at Capstan Way (River Road to Sexsmith Road), in the amount of $270,000, as presented in Appendix 9 of the 2020 Capital Budget, be included in the 2020 Capital Budget.

DEFEATED

Opposed: Mayor Brodie
Cllrs. Day
Greene
Steves
Wolfe

It was moved and seconded

That funding for the design component of the potential extension of the cycling network at Steveston Highway (No. 2 Road to Railway Avenue), in the amount of $163,000, as presented in Appendix 9 of the 2020 Capital Budget, be included in the 2020 Capital Budget.

CARRIED

It was moved and seconded

That funding for the design component of the potential extensions of the cycling network at Shell Road (Highway 99 to River Road), River Road (McCallan Road to No. 2 Road), and Gilbert Road (Granville Avenue to Elmbridge Way) in the amount of $947,000, as presented in Appendix 9 of the 2020 Capital Budget, be included in the 2020 Capital Budget.

CARRIED

Opposed: Mayor Brodie
Cllrs. Day
Greene
McNulty

That funding for the design component of the potential extensions of the cycling network at No. 6 Rd (Commerce Parkway to Cambie Road), Bridgeport Road (No. 6 Road to Knight Street Bridge), Garden City Road (Francis Road to Granville Avenue), and Browngate Road (No. 3 Road to Hazelbridge Way) in the amount of $620,000, as presented in Appendix 9 of the 2020 Capital Budget, be included in the 2020 Capital Budget.

DEFEATED

Opposed: Mayor Brodie
Cllrs. Au
Day
Greene
McNulty
McPhail
Steves

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

3.

2020 Proposed Operating Budget
(File Ref. No. 03-0985-01) (REDMS No. 6243776 v. 9)

Cllr. McNulty left the meeting (7:07 p.m.) and returned (7:10 p.m.).

Staff commented on the proposed funding ongoing expenditures for the Emerging Organization Additional Levels, as noted in Attachment 10 of the staff report, noting that Council may incorporate additional priorities itemized in the staff report.

Discussion ensued with regard to the 2020 Corporate Reset as noted in Budget Option 3, and staff advised that the proposed option would reduce the same level of service budget through a review of staffing vacancies and would result in a permanent tax decrease of 1.50%.

In reply to queries from Committee, staff noted that the 2020 Corporate Reset is not intended to delay filling staff vacancies or reduce staffing levels. Savings incurred from the 2020 Corporate Reset will stem from the process to fill vacant positions. Staff added that the proposal would reduce the proposed tax increase to 4.82% and reduce potential surpluses. It was further noted that staff are recommending that the proposed 1% Investment in Infrastructure Replacement (Transfer to Reserves) be retained to fund future replacement of City facilities.

Discussion then ensued with regard to (i) the City’s hiring process, (ii) allocation of funds to reserves, and (iii) replacement of ageing City facilities.

As a result of the discussion, staff was directed to provide a memorandum to Council outlining the status of the reserve account.

Cllr. Day left the meeting (7:36 p.m.) and returned (7:38 p.m.).

Discussion ensued with regard to funding sources for the HUB Annual Cycling Education Program in Richmond Elementary Schools, and staff noted that potential grant opportunities can be examined.

It was moved and seconded

That:

(1)

The 2020 Operating Budget as presented in Budget Option 3 be approved as outlined below:

(a)

A same level of service budget increase, after tax growth, of $3,875,707 with a tax increase of 1.69% (less a corporate reset of 1.5%) and non-discretionary external senior government increases of $300,000 with a tax increase of 0.13%, resulting in a combined increase of 0.32% be approved; and

(b)

Ongoing funding for expenditures previously approved by Council totaling $984,045 for the following items: Minoru Centre for Active Living operating budget impact phase-in (Year 7 of 7), and the operating budget impact from developer contributed assets, with a tax increase of 0.43% be approved; and

(c)

Ongoing funding for expenditures previously approved by Council totaling $527,500 for the operating budget phase-in impact of City Centre Community Centre North (Year 2 of 4), with a tax increase of 0.23% be approved; and

(d)

Ongoing funding for expenditures previously approved pursuant to Council’s Safe Community Priority program (Year 2 of 3) in the amount of $7,433,489 with a tax increase of 3.23% including:

(i)

Amounts which were funded by the rate stabilization account in the 2019 budget totaling $4,325,868, with a tax increase of 1.88%; and

(ii)

51 additional RCMP officers and 20 additional municipal employees to support the RCMP Detachment with a three-year phase-in plan (Year 2 of 3), totaling $1,591,821 with a tax increase of 0.69% be approved; and

(iii)

36 additional firefighters with a three-year phase-in plan (Year 2 of 3) in the amount of $1,515,800 with a tax increase of 0.66% be approved; and

(e)

Operating budget impact from the 2020 Capital Budget totaling $644,794 with a three-year phase-in plan for an annual amount of $214,931, resulting in a tax increase of 0.09% per year be approved; and

(f)

Two new positions, specifically a Regular Full-Time Affordable Housing Planner 1 and Regular Part-Time Child Care Program Planner 1 be approved with 0.00% tax increase as summarized in Attachment 9 and position complement control numbers be assigned; and

(g)

Ongoing expenditures for Emerging Organizational Additional Levels with an allowance of $500,000 resulting in a tax increase of 0.22% be approved (refer to the recommended items from staff in Attachment 10); and

(h)

Transfer to reserves for infrastructure replacement needs as per Council’s Long Term Financial Management Strategy in the amount of $2,299,025 with a tax increase of 1.00% be approved; and

(i)

The Rate Stabilization Account be used to reduce the overall impact of additional operating costs for a total of $1,609,318 resulting in a tax decrease of 0.70% be approved; and

(2)

The 2020 Operating Budget, as approved in item 1 above (4.98%), be included in the Consolidated 5 Year Financial Plan (2020-2024).

The question on the motion was not called as the following amendment motions were introduced:

It was moved and seconded

That funding for the Two Librarian Positions - Specializing in Youth, in the amount of $167,150, as presented in Attachment 11 in the 2020 Proposed Operating Budget, be added to the 2020 Proposed Operating Budget – Ongoing expenditures for Emerging Organizational Additional Levels.

CARRIED

Opposed: Cllrs. Day
Greene
Steves

It was moved and seconded

That funding for Environmental Management and Mitigation, in the amount of $178,776, as presented in Attachment 11 in the 2020 Proposed Operating Budget, be added to the 2020 Proposed Operating Budget – Ongoing expenditures for Emerging Organizational Additional Levels.

CARRIED

Opposed: Mayor Brodie
Cllrs. Greene
Loo
McPhail

It was moved and seconded

That funding for the HUB Annual Cycling Education Program in Elementary Schools in Richmond, in the amount of $75,000, as presented in Attachment 11 in the 2020 Proposed Operating Budget, be added to the 2020 Proposed Operating Budget – Ongoing expenditures for Emerging Organizational Additional Levels.

The question on the amendment motion was not called as discussion ensued with regard to sourcing funding for the HUB Annual Cycling Education Program through the City’s 2020 Council Community Initiatives One-Time Expenditures. It was also expressed that the City seek feedback from Richmond School District No. 38 on funding options for the Cycling Education Program.

As a result of the discussion, the following amendment motion was introduced:

It was moved and seconded

That HUB Annual Cycling Education Program in Elementary Schools in Richmond, as presented in Attachment 11 in the 2020 Proposed Operating Budget, be added to the 2020 Council Community Initiatives One-Time Expenditures.

DEFEATED

Opposed: Cllrs. Day
Loo
McNulty
Steves
Wolfe

In reply to queries from Committee, staff noted that the total tax impact after addition of the amendment motions resulted in a total tax increase of 4.98%.

The question on the main amendment motion was then called and it was CARRIED with Cllr. Au opposed.

It was moved and seconded

That the proposed 1% Investment in Infrastructure Replacement (Transfer to Reserves) be reduced to 0.5%.

DEFEATED

Opposed: Mayor Brodie
Cllrs. Greene
Loo
McNulty
McPhail
Steves
Wolfe

The question on the main motion, as amended, was then called and it was CARRIED with Cllr. Au opposed.

4.

2020 One-Time Expenditures
(File Ref. No. 03-0985-01) (REDMS No. 6243689 v. 3)

Discussion ensued with regard to the proposed 2020 Major Events funding, noting that Council approval of the funding is pending consideration of the 2020 Major Events staff report at the upcoming December 16, 2019 General Purposes Committee meeting. It was noted that the proposed funding amount of $1,040,000 can be considered now as a placeholder in the Budget and further adjustments can be made following consideration of the 2020 Major Events staff report.

It was moved and seconded

That the recommended one-time expenditures totaling $930,869 as outlined in Attachment 1 of the 2020 One-Time Expenditures staff report, be approved with funding from the Rate Stabilization Account and included in the Consolidated 5 Year Financial Plan (2020-2024), together with the amount of $1,040,000, as presented in Attachment 2 of the 2020 One-Time Expenditures staff report, on the condition that the Major Events funding will not be used until Council provides specific approval.

CARRIED

5.

2020 Council Community Initiatives One-Time Expenditures
(File Ref. No. 03-0985-01) (REDMS No. 6243557 v. 7)

It was moved and seconded

(1)

That the one-time expenditure request as outlined in Attachment 1 of the 2020 Council Community Initiatives One-Time Expenditures staff report, be received for information and be funded from the Council Community Initiatives Account and included in the Consolidated 5 Year Financial Plan (2020-2024); and

(2)

That funding for the Automated Materials Handling System and Redesigned Book Return Wall for the Brighouse Branch of the Richmond Public Library in the amount of $108,000, as presented in Attachment 3 of the 2020 One-Time Expenditures staff report, be added to the 2020 Council Community Initiatives One-Time Expenditures and included in the Consolidated 5 Year Financial Plan (2020-2024).

The question on the motion was not called as discussion ensued with regard to alternative sources of funding for the proposed Automated Materials Handling System and Redesigned Book Return Wall.

The question on the motion was then called and it was CARRIED with Cllrs. Au, Day, Greene and Wolfe opposed.

LULU ISLAND ENERGY COMPANY

6.

Lulu Island Energy Company – 2020 Operating and Capital Budgets
(File Ref. No. 10-6600-10-01) (REDMS No. 6337657 v. 2)

Discussion ensued with regard to the staffing expenses and estimated staffing time.

It was moved and seconded

That the Lulu Island Energy Company report titled “Lulu Island Energy Company- 2020 Operating and Capital Budgets”, dated November 5, from the Chief Executive Officer and Chief Financial Officer, Lulu Island Energy Company be received for information.

CARRIED

ADJOURNMENT

It was moved and seconded

That the meeting adjourn (8:08 p.m.).

CARRIED

Certified a true and correct copy of the Minutes of the meeting of the Finance Committee of the Council of the City of Richmond held on Monday, December 2, 2019.

_________________________________

_________________________________

Mayor Malcolm D. Brodie
Chair

Evangel Biason
Legislative Services Coordinator