Minutes of Special Council Meeting

December 19, 2013 8:00AM

Council Chambers, Town Hall, Arnprior, ON

Present: Mayor David Reid Reeve Walter Stack Councillor Ted Strike Councillor Dan Lynch Councillor Lynn Grinstead

Absent: Councillor Mark Willmer Councillor Lyle Anderson

1. Call to Order

Also Present: Michael Wildman, CAO Maureen Spratt, Town Clerk Renee Couture, Acting Director of Corporate Services/

Treasurer John Steckly, Civil Engineering Technologist Guy Bourgon, Director of Public Works Glenn Arthur, Director of Recreation Services Kaila Bowen, Secretariat Services Assistant

Mayor David Reid called the Special Council meeting to order at 8:00 AM and welcomed those present.

2. Roll Call The roll was called, with all Members of Council being present, except Councillor Mark Willmer and Councillor Lyle Anderson.

3. Adoption of Agenda Resolution No. 474-13 Moved by Walter Stack Seconded by Dan Lynch BE IT RESOLVED THAT the agenda for the Special Meeting of Council dated Thursday, December 19, 2013 be adopted.

4. Disclosures of Pecuniary Interest None

5. Staff Reports Resolution No. 475-13 Moved by Dan Lynch Seconded by Ted Strike

Resolution CARR I ED

THAT Council adopt the Asset Management Plan for the Town of Arnprior as submitted, as a financial planning tool subject to budget approval, prepared on behalf of the Town of Arnprior by Dillon Consulting Ltd., and

THAT Council, recognizing that the Asset Management Plan is a dynamic model, direct the Director of Public Works, in consultation with the Director of Corporate Services/Treasurer to update the Asset Management Plan model annually and recommend updates to related documents such as the Long Range Capital Forecast.

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Report and Resolution CARRIED As Amended

Asset Management Plan - Civil Engineering Technologist

The Civil Engineering Technologist introduced Mr. Luc Begin from Dillon Consulting, the consultant hired to prepare the Town's Asset Management Plan.

Mr. Begin, provided a Power Point Presentation to Council, attached as Appendix A and forming part of these minutes.

Mr. Begin outlined a few key points throughout his presentation with the following representing a summary of his comments:

• In order for municipalities to receive subsidies, all municipalities need to have an Asset Management Plan, as well as how the municipality plans to finance their strategy, in place by the end of 2013.

• The Town has approximately $230 000 000.00 in assets at this time which includes Water Mains, Storm Sewers, Sanitary Sewers, Roads, Sidewalks, Buildings and Facilities, and Vehicles and Equipment. It is important to note that the Buildings and Facilities did not have to be part of the plan, but this was recommended by the province. Staff and Dillon decided to include all of the Capital Assets, for the Town to be able to use this plan as a good planning tool for the future in managing all of these assets.

• The tools presented are dynamic and will change from year to year.

• Overall, over the next ten years the Town will be able to maintain the level of service indicated in the Asset Management Plan for the Road Network at a 0.6 Network Performance Index.

Reeve Stack indicated that the problem is that for any of the major projects needing to be completed, municipalities are reliant on the upper tiers of government for assistance, and there is no longer any consistency in this. This plan will be impacted yearly as to whether the Town of Arnprior does or does not receive funding in the new competitive and lottery formats of grants.

The CAO indicated because a project is in the Asset Management Plan today does not mean it may not change in the future. This is because of the dynamic and fluid nature of infrastructure planning and a number of uncertainties such as grant funding.

On question of Council the following was clarified:

• This plan is a good tool for informing Council and staff what is coming up for repair/ reconstruction.

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• The Asset Management Plan is cumulative of all assets in the Town. The various spikes in the charts show where reserves need to be put in place, to stay with the "Pay as you Go" principle.

• There is flexibility as to when the Town implements the funding for various projects. The graphs were adjusted slightly to reflect what is depicted in the Long Range Capital Forecast, in an effort to make both of these documents cohesive when it comes to timing and funding availability.

• All of the information is linked to the Town's GIS System. It is recommended that the information is updated in the GIS System annually, and only in this database. Both the Civil Engineering Technologist and the Director of Public Works will receive training on how to use the software template, needed to update the necessary information. There should only be one person and back-up, responsible for inputting information into the database.

• The Asset Management Plan is a dynamic document which can change from year to year.

• Through the use of the Long Range Capital Forecast and this Asset Management Plan integrated asset management will be taken into consideration prior to completing projects in order to save funds.

• This plan is today's snapshot of the world. Standards will be starting to be looked at for the Town's cross sections to make sure there is consistency going forward, in order to maximize the financial impact going forward. The Town's debt figures from the FIRs should be an indicator to the province that the Town does require some assistance.

• Staff is looking at enhancing the Rolling Road Rehabilitation Program through the budget process and also going forward in the 10 year Long Range Capital Forecast.

Mayor Reid requested the recommendation wording to be changed to adding the wording "adopt as a tool to assist in budget deliberations." There was consensus that this was an appropriate amendment.

Mayor Reid indicated he is concerned for the level of service for the roads and the sidewalks, as he believes this is very low. It is important to look at this during budget deliberations.

Mayor Reid stated that the Town's Tangible Capital Assets are severely understated in our financial plans. Errors were made during the initial process in 2009, and it is very important that we align our financial statements with the Asset Management Plan.

The CAO stated that the Town's 2009 assumptions completed were done using the understated numbers; however the AMP is using appropriate bench mark data which can be imported to correct the original errors. The Treasurer is currently having this discussion with the auditors, on how to go back and insert the correct numbers into our

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statements. The question being asked right now is, do we have to go back to 2009 and update the audits that have been completed.

Mayor Reid stated he would like to see a program put in place looking at the crack filling, sealing, and/or other road maintenance.

Discussion ensued around the Town's potential to go into debt to do a full catch up on infrastructure improvements. Mr. Begin ran the model assuming the Town incurred a large debt to get caught up; however the model did not conclude that this would be cost effective.

Mayor Reid and Council thanked Mr. Begin for his presentation, and the information provided.

Mr. Begin performed a live demonstration of the software tern plates to be used to generate the information to be updated in the Town's GIS system.

6. Confirmatory By-Law Resolution No. 475-13 Moved by Walter Stack Seconded by Dan Lynch THAT By-law No. 6289-13 being a By-law to confirm the proceedings of the Special Meeting of Council held on December 19, 2013 and it is hereby enacted and passed.

7. Adjournment Resolution No. 476-13 Moved by Lynn Grinstead Seconded Ted Strike

Resolution CARRIED

THAT this meeting of Council be adjourned at 9:26AM. Resolution CARRIED

avid Reid, Mayor Maureen Spratt, Town Clerk

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Thursday, December 19th, 2013

Town of ArnpriorDevelopment of an AMP

ONTARIO AMP Program• Ontario Government announced that as part of its

10 year infrastructure plan, it will make $90 million in funding available over a 3 year period for assisting with the sustainability of municipal infrastructure

• Funding made available through the Municipal Infrastructure Investment Initiative (MIII)

• To be eligible municipalities had to prepare an acceptable AMP

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Guide for Development of an AMP

AMP Report Requirements• Main elements required in your AMP:

– Executive summary– Introduction– State of local infrastructure– Desired levels of service– Asset management strategy– Financing strategy

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Town of Arnprior AMP

State of Local InfrastructureAsset Value

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State of Local Infrastructure• Current Needs

Infrastructure Levels of Service

INFRASTRUCTURELEVELS OF SERVICE

MANDATED COMMUNITYOBJECTIVES

INFRASTRUCTURELEVELS OF SERVICE

MANDATED COMMUNITYOBJECTIVES

• Mandated Levels of Service– Minimum Maintenance Standards– Provincial Drinking Water Guidelines– Ontario Building Code– Provincial Fire Code

• Community Objectives– Community Plan– Quality of Life– Social Well Being– Economic and Cultural Development

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Key Elements in Determining Levels of ServiceInfraguide 2002

LEVELS OF

SERVICE

Financial Considerations

Consultation /Communication

RiskTolerance

StrategicAlignment

Asset Understanding

What is the expected remaining service life?

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Data Processing Tool – Linear Assets

Data Processing Tool – Point Assets

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Asset Management Strategy – Linear AssetsRoad Network – Maintain Level of Service

Asset Management Strategy – Linear AssetsSidewalk Network – Maintain Level of Service

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Asset Management Strategy – Linear AssetsWatermain Network – Maintain Level of Service

Asset Management Strategy – Linear AssetsSanitary Network – Maintain Level of Service

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Asset Management Strategy – Linear AssetsRoad Network – Forecasted Expenditures (Arnprior)

Asset Management Strategy – Linear AssetsSidewalk Network – Forecasted Expenditures (Arnprior)

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Asset Management Strategy – Linear AssetsWatermain Network – Forecasted Expenditures (Arnprior)

Asset Management Strategy – Point AssetsBuildings – Yearly Funding Requirements

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Asset Management Strategy – Point AssetsBuildings – Yearly Funding Requirements

Asset Management Strategy – Point AssetsVehicles and Equipment – Yearly Funding Requirements

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10 Year AMP for All Assets

Financing StrategyBrief overviewStrategy described in details in the AMP Report

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Financing StrategyFunding Sources

Reserves and Reserve FundsDevelopment Charges (where applicable)Federal Gas TaxSpecial Area Charges (where applicable)Tax Levy (Assessment)User Fees (Water and Wastewater Fees)Senior Level of Government Funding AssistanceDebt

Potential Financing GapAMP yearly forecasts to maintain LOS - $1.375 M/Yr

Town of Arnprior 2013 - $1,023,000 on all capital projects including AM Projects

– Additional received $550,000 MIII Grant funding

Potential gap in excess of $351,500/year for AM – If MIII funding not matched on yearly basis

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