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HomeMy WebLinkAboutFinance and Administration Advisory Board 1989 ~ , C-l the metropolitan toronto and region conservation authority minutes FINANCE AND ADMINISTRATION April 25, 1989 11/89 ADVISORY BOARD The Finance and Administration Advisory Board met in the Humber Room at the Authority Head Office on Tuesday, Aprjl 25, 1989 The Chairman called the meeting to order at 1.40 p.m PRESENT Chairman Gordon Patterson Members Scott Cavalier John McGinnis Frank McKechnie Kip VanKempen Clarkson, Gordon, Auditors Colin Lipson ABSENT Vice Chairman Richard O'Brien Members Eldred King Dale Martin Bev Salmon Joyce Trimmer MINUTES Res. il Moved by Kip VanKempen Seconded by Frank McKechnie THAT the Minutes of Meeting 17/88 be approved CARRIED C-2 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 11/89, APRIL 25, 1989 SECTION I - ITEMS FOR AUTHORITY CONSIDBRATION 1. RESPONSES TO THE CHANGE IN MUNICIPAL LBVY FUNDING FORMULA BACKGROUND 1984 Review of M.T.R.C.A. In 1984, the Authority's member municipalities and the Province of Ontario conducted a review of Authority activities and structures. The review was conducted by a working group, including the Chief Administrative Officers of Metropolitan Toronto, York, Peel and Durham and an Assistant Deputy Minister of Natural Resources. In the course of the review, alternative funding methods for conservation area recreation development were considered, but, after considering various options, the group recommended that there be no change in the method of using discounted equaiized assessment, but that there be a further review in five years time The Authority resolution that dealt with this matter stated in part There is a need to review the basis on which benefit is determined for the Authority's Watershed Recreation Programs and Black Creek Pioneer Village, and that, in this connection, the staff be directed to consult with the member municipalities with respect to recreation and heritage programs which are compatible with the aims and Objectives of the municipalities, which the Authority might undertake, and that the Authority agreed to negotiate with member municipalities with respect to appropriate designation of benefit and the apportionment of costs with respect to such programs. (Resolution 173, Authority Meeting '4/84, June 27, 1984) . 1988 Metropolitan Toronto Council Request As part of its 1988 capital budget approval, the Council of Metropolitan Toronto requested that "the Authority commence re-negotiating with its member municipalities the cost of sharing conservation area capital and operating costs". 1988 Funding Sub-Co..lttee At Meeting 12/88, the Executive Committee established the Funding Sub- Committee consisting of: Mayor Emil Kolb, Region of Peel Mayor Lorna Jackson, Region of York Mayor William G. McLean, Region of Durham Controller Richard O'Brien, Municipality of Metropolitan Toronto The Sub-Committee was chaired by Mr. William Foster. The Sub-Committee to review the funding formula met on three occasions and considered a variety of alternative methods of achieving greater equity in the process Staff was instructed to review the statistical information relating to percentage of use in Authority facilities by municipality and to discuss the effects of any changes with the appropriate staff of the municipalities affected It was agreed that a basis of apportionment of municipal levy for the development, operation and maintenance of the Conservation Areas, Black Creek Pioneer Village and the Kortright Centre for Conservation related to the percentage use of all facilities by residents of municipalities would have merit. It was further concluded that, since a change from equali zed assessment to percentage use would impact on the annual levy in amounts considerably in excess of inflation, a phase-in period for the change would be appropriate. The report of the Funding Sub-Committee was received and approved by the Executive Committee and adopted by the Authority on December 2, 1988 C-3 PINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 11/89, APRIL 25, 1989 SECTION I - ITEMS POR AUTHORITY CONSIDERATION 1. RESPONSES TO THE CHANGE IN MUNICIPAL LEVY PUNDING PORMULA contd. TECHNICAL ISSUES Staff considered all of the alternatives considered during the 1984 review, as well as some additional variations requested by members of the Funding Sub-Committee The major methods considered were 1) Assessment 2) Population 3) Households 4) Total Attendance 5) Regional Attendance 6) Attendance between Metro and the three Regions and assessment among the Regions 7) Attendance between Metro and the Regions and population among the Regions The Committee recommended that staff review, with staff of the Regions and Metro Toronto, a formula which involved the use of visitor origin information, combined with the existing method using discounted equalized assessment. The Authority had at hand visitor origin data from 1986 visitor surveys. Discounted equalized assessment represented a measure of ability to pay and it was felt that this should continue to be the best method of apportioning costs amongst the fast growing regional jurisdictions The use of visitor origin data could also be tested against survey data being collected on a test basis during the summer of 1988. Indeed, as a result of this testing, the visitor origin breakdown between Metro and the regions proved to be comparable with the results of the application of the new formula. The Funding Formula Committee also considered the problem of phasing-in the formula and the possible implications The Committee arrived at a method which involved 1/5 of the change being implemented in the first year and 2/5 in each succeeding year. The Authority has approved its 1989 levy on member municipalities for the funding formula purposes on the basis of the 1/5 change for the first year. RESPONSES OP MEMBBR MUNICIPALI~IBS Metropolitan Toronto approved the Authority's funding formula and the phase- in as part of its 1989 budget approval process. Metro Toronto was concerned that a three year phase-in was perhaps too long, but agreed with the Authority's concerns in the matter and appreciated the Authority's initiative in responding to Metropolitan Toronto's request for a review of the funding formula. Durham Regional Council considered the proposed funding formula and approved the proposal as submitted by the Authority. Peel Regional Council agreed with the need to review and change the apportionment of costs. While expressing concern and requesting additional information concerning the statistical methods being used, Council was none- the-less willing to accept the proposed formula. Peel Regional Council's main concern, however, was that the three year phase-in was too short an interval and would impose a financial burden upon the Region of Peel. Therefore, the Council of The Regional Municipality of Peel approved a five year phase-in period The Regional Municipality of York stated that the three year phasing was insufficient and that five years would be more appropriate. The Region of York resolution also implied that no change should be made until two years of statistical data was available proposed that the funding change be implemented over five years, following a minimum of two years' data collection (We now have two years of data collected). The problem for the regions is that they must face increasing costs due to the funding formula change, the normal increase resulting from growth in the assessment base, and the Authority's introduction of new programs as part of the Greenspace Plan C-4 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING '1/89, APRIL 25, 1989 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 1. RESPONSES TO THE CHANGE IN MURICIPAL LEVY FUNDING FORMULA contd. Objectives of the Authority As was agreed in 1984, the Authority responded to the request of a member municipality for a review of the funding arrangements relating to conservation area recreation, operations, maintenance and development The objective of the review was to establish a meaningful apportionment of costs of the municipal levy which would be satisfactory to the Authority's member municipalities. The Authority specifically agreed that the relationship with the Townships of Mono and Adjala should continue using discounted equalized assessment All the member municipalities have agreed with the need to change the funding arrangements and that this should be phased-in. The main point of disagreement is the time-frame within which the changes are made AUTHORITY RESPORSE The Authority's objective is to achieve a more equitable apportionment of the municipal levy within a time-frame that is acceptable to our municipal funding partners The solution is to provide a form of "bridge" financing To satisfy the Regions of York and Peel requires that funding changes be phased over five years, 1/5 each year Metro requires that their share be achieved in three years on the basis of 1/5, 2/5, 2/5. Durham has agreed to the three year formula, but from a practical point of view, must be included with Peel and York. All requirements can be met using a "special subsidy" from Authority recreation lease revenues. The five year Conservation Recreation Development Program may have some projects delayed as a result Res. *2 Moved by Frank McKechnie Seconded by Kip VanKempen THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the staff report on responses to the change in municipal levy funding formula, inCluding the responses of the individual regional municipalities, be received; THAT the Regional Municipalities of Peel, York and Durham be advised that the apportionment of the municipal levy under the funding formula adopted by the Authority on December 2, 1988 will be phased-in for their purposes over a five year period; THAT the Municipality of Metropolitan Toronto be advised that the apportionment of the municipal levy under the funding formula adopted by the Authority on December 2, 1988 will be phased-in over a three year period; AND FURTHER THAT staff be directed to advise the Authority's member municipalities each year and so indicate in the Authority's annual budget, the impact of the funding formula upon each member municipality and take such action as is necessary to identify in the budget and utilize lease revenues and such other revenues as may, from time to time, become available to provide the necessary special subsidy to implement the new funding formula CARRIED C-5 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING '1/89, APRIL 25, 1989 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 2. STAFF COMPLEMENT -Alteration to Food Services The Food Service section of the Program Services Division has an existing complement of two Food Service Supervisor positions (SMl classification, salary range $29,594 to $32,883) The Director of Program Services and the Manager of Food Service request that one of the Supervisor positions be downgraded to that of Unit Operator II (CF2 classification, salary range $21,285 to $23,584) The position is currently vacant Res #3 Moved by Scott Cavalier Seconded by John McGinnis THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT one of two Food Service Supervisor positions within the Program Services Division be downgraded to that of Unit Operator II. CARRIED 3. PERSONNEL POLICY B-5 -Paid Holidays Based on practices in other juriSdictions, we feel it is appropriate to make the following changes to our Paid Holiday policy 1 ) To delete Remembrance Day as a paid holiday, while continuing to provide the opportunity for those who wish to attend memorial services to do so; 2 ) To replace the Remembrance Day holiday with a "floating" holiday to be used at a mutually agreed upon time; 3 ) The "floating" holiday must be used in the calendar year; no carry- forward allowed; 4 ) There would be no "pay-in-lieu" available to those who do not use the "floating" holiday. Res. #4 Moved by Frank McKechnie Seconded by Kip VanKempen THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT Personnel Policy B-5, Paid Holidays, be amended to delete Remembrance Day as a paid holiday, while continuing to provide opportunity for attendance at Remembrance Day memorial services and to add one paid "floating" holiday per calendar year to be taken at a mutually agreed upon time, Appendix FA.l69 CARRIED C-6 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 11/89, APRIL 25, 1989 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 4. OPPORTUNITIES FOR IMPROVEMENTS TO INTERNAL CONTROLS -Auditor's Report Each year the Authority's auditors, Clarkson Gordon, in the course of their examination of the financial statements, also evaluate the Authority's system of internal controls The attached report from Clarkson Gordon includes their comments on opportunities for improvements and the response by management of the Authority. Members of the Finance and Administration Advisory Board are given an opportunity to meet with the auditor, without staff from the Finance and Administration Division being present, to discuss with the auditor, any issues which are of concern to members of the Board. Res. #5 Moved by Kip VanKempen Seconded by John McGinnis THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the auditor's report on opportunities for improvements to internal controls be received. CARRIED 5. 1989 FINANCIAL PROGRESS REPORT No. 1 During the first quarter of the year, operations reflect regular, ongoing activities. Until the annual budget is approved at the end of March, no new initiatives are undertaken. Accordingly, the Progress Report identif ies projections to year-end which are consistent with the 1989 Budget approved on March 31, 1989 and which forecast a balanced budget for year-end Capital projects involving construction of works usually do not begin until late Spring Accordingly, no variances are anticipated. Property acquisitions do proceed and these have been itemized. Res. .6 Moved by John McGinnis Seconded by Scott Cavalier THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the 1989 Financial Progress Report No. 1, Appendix FA. 157, be received. CARRIED 6. PERSORRBL POLICY A-14 -Revised Clothing Policy The Authority's Clothing policy, covering uniforms and safety equipment, was approved in 1983. Changing circumstances and staff roles make changes in the policy desirable. In addition, a review of the policy has presented the opportunity to streamline the document and make it easier for supervisors to use The major revisions to the policy are as follows - All employees have been categorized and a standard format has been developed to outline the policy for each category. - A 'standard of dress' has been identified for all employees. This clearly identifies what an employee should be wearing for the performance of a particular job function and permits the enforcement of a dress code by supervisors. C-7 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING '1/89, APRIL 25, 1989 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 6. PERSONNEL POLICY A-14 -Revised Clothing Policy contd. - A distinct uniform has been established for some employees with special requirements where, for instance, a regular work uniform will not suffice - Special circumstances, such as temporary reclassifications and employment contracts, have been covered - Some clothing items have been added to increase the flexibility and appropriateness of the uniform. The requirements of all sections of the Authority have been surveyed to ensure that the policy meets the needs of fie Id staff The revised Clothing Policy provides for a readily identifiable and well dressed staff, contributing to improved public relations. The policy can be easily interpreted by supervisors and it is sensitive to the requirements of employees. The changes in the policy should not have any impact on the Authority's clothing costs, but rather it is likely to reduce administrative costs through improved efficiency. Res i7 Moved by John McGinnis Seconded by Scott Cavalier THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the Revised Personnel POlicy A-14 - Clothing Policy, Appendix FA.146, be approved CARRIED 7. LEAVE OP ABSENCB REQUES~ Personnel Policy B-7, Leaves of Absence, permits that leaves of absence of thirty calendar days or less may be granted by the General Manager. Leaves in excess of thirty calendar days must be approved by the Executive Committee. Mrs. Elizabeth Appleton, Print and Mail Room Clerk, requests an unpaid leave of absence of sixty calendar days immediately following the completion of her maternity leave. The Director of Finance and Administration and the Manager of Property and Administration concur with Mrs. Appleton's request. Res. t8 Moved by Scott Cavalier Seconded by John McGinnis THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT Mrs. Elizabeth Appleton be granted an unpaid leave of absence of sixty calendar days immediately following completion of her maternity leave. CARRIED C-8 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING '1/89, APRIL 25, 1989 SECTION IV - ITEMS FOR INFORMATION OF THE BOARD 8. ISSUES FOR DISCUSSION AT FINANCE AND ADMINISTRATION ADVISORY BOARD MEETINGS Below is a tentative list of issues which will be discussed at meetings of the Finance and Administration Advisory Board during 1989 April 25th - 1989 Financial Progress Report No. 1 - Auditor's Report on Opportunities for Improvements to Internal Controls - Report on Changes to the Authority Clothing Policy - Report on the Funding Formula Negotiations - Alteration to Staff Complement - Request for Leave of Absence - Amendment to Personnel Policy on Paid Holidays June 20th - 1990 Budget Guidelines - Report on Sick Leave Liability - Report on Use of Co-Operative Natural Gas Purchasing Facilities - Report on Authority Health and Safety Practices July 28th - 1989 Financial Progress Report No 2 - Proposed Complement Changes Affecting 1990 Budget Septe.ber 26th - 1990 Preliminary Estimates - Recommendations on Acquisition of New Accounting System Nove.ber 7th - 1989 Financial Progress Report No. 3 January 16, 1990 - Report on Banking Services Agreement - Statutory Borrowing Resolution - Appointment of Auditors for 1990 Res. #9 Moved by Scott Cavalier Seconded by Frank McKechnie THAT staff report on issues for discussion by the Finance and Administration Advisory Board during 1989 be received. CARRIED TERMINATION ON MOTION, the meeting terminated at 3 40 p.m., April 25, 1989. Gordon Patterson W.A. McLean Chairman Secretary-Treasurer em ~ , C-9 the metropolitan toronto and region conservation authority minutes FINARCE AND ADMIRISTRATIOR July 28, 1989 12/89 ADVISORY BOARD The Finance and Administration Advisory Board met in the 5th Floor Boardroom at the Administration Offices of the Regional Municipality of Peel on Friday, July 28, 1989. The Chairman called the meeting to order at 8 20 a.m PRESENT Chairman Gordon Patterson Vice Chairman Richard O'Brien Members Scott Cavali~r John McGinnis Frank McKechnie Kip VanKempen ABSENT Members Eldred King Dale Martin Joyce Tr immer MINUTES Res. #10 Moved by Richard 0 'Brien Seconded by Scott Cavalier THAT the Minutes of Meeting *1/89 be approved. CARRIED 1. SALARY AND WAGE ADJOSTllENT Res. #11 Moved by Kip Van Kempen Seconded by Scott Cavalier THAT the Board consider the above item in closed session CARRIED The Board rose from closed session C-10 FINANCB AND ADMINISTRATIOR ADVISORY BOARD MEBTIRG '2/89, JULY 28, 1989 SBCTIOR I - ITEMS FOR AUTHORITY CONSIDBRATION 1- SALARY AND WAGB ADJUSTllBRT KBY ISSUB At Meeting #2/89 held on March 31, 1989, the Authority approved an economic adjustment to the Salary and Wage Schedule of 4.5%. This has proved inadequate in the face of rising inflation in the Greater Metro Toronto Region and recent public sector salary and wage settlements Res. 112 Moved by: Frank McKechnie Seconded by: John McGinnis THB BOARD RECOMMENDS TO THB AUTHORITY THAT there be a further econo.ic adjustment to the Authority's 1989 Salary and Wage Schedule of 2'J AND FURTHBR THAT this change be effective August 13, 1989. AMENDMERT Moved by: Richard O'Brien Seconded by: Scott Cavalier THAT the economic adjust.ent to the 1989 Salary and Wage Schedule be 1.5'. THB AMERDMERT WAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NOT CARRIED OR A RECORDBD VO'l'B: YEA RAY JOhn McGinnis SCOtt Cavalier Frank McKechnie Richard O'Brien Gordon Patterson Kip VanKe.pen THB MAIN MO'l'ION WAS.............................................CARRIED BACKGROUND At Authority Meeting #2/89, staff was directed to monitor salary and wage settlements and report to the Finance and Administration Advisory Board at its July meeting ANALYSIS Staff has had the opportunity to review a number of salary and wage settle- ments effective for 1989 in jurisdictions with which the Authority's Salary and Wage Schedule is usually compared; Region of York 5 9% Region of Peel 7 5% * Metro Toronto 7 0% City of North York 6 8% Town of Vaughan 6.5% Town of Markham 4 0% ** * includes provision for parity with positions in the City of Mississauga - ** second year of a 2-year agreement Recent Statistics Canada information identifies the national inflation rate at about 5.4%. In the Greater Toronto Region, the rate is about 1% above the national average The increase is recommended to take effect August 13, 1989, to coincide with the first pay period following the Authority Meeting on July 28, 1989 To reduce the 1989 budgetary impact, retroactive pay is not recommended The additional 2% adjustment, coming part-way through the year, will result in an overall increase for the period April 1989 through March 1990 of about 5 8% The annualized impact of the Authority's 4.5% adjustment on April 1st, combined with the 2% adjustment on August 13th, will result in an overall adjustment on an annualized basis of 6 59% FIRANCIAL IMPLICATIORS The cost of this adJustment will be about $80,000 in 1989. Senior Manage- ment has reviewed the funding implications and believes that this can be accommodated within the approved 1989 Budget The annualized cost of this adjustment will be in the order of $200,000. This will certainly have major financial impl ications for the Authority in 1990 C-11 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING '2/89, JULY 28, 1989 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 2. PERSONNEL POLICY B-5 - PAID HOLIDAYS KEY ISSUE Consistent with benefits extended to staff of comparable jurisdictions, there is a need to add one paid holiday, a "floater", to the Authority's Personnel Policy a-5. MOTION Moved by: Scott Cavalier Seconded by: John McGinnis THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT Personnel Policy B-5, Paid Holidays, be amended by the addition of a new Section (5) , to read as follows: One additional paid holiday, a -floater-, in each calendar year shall be granted to each eligible employee and taken at a time co.patible with the operational require.ents of the Authority and mutually agreed upon by the employee's supervisor. The -floater- .ust be used in the calendar year in which it is granted. There shall be no pay-in-lieu for a -floater- unused at the end of a calendar year for any reason. THE MO'l'ION WAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ROT CAltRIBD Res. 113 Moved by: Richard O'Brien Seconded by: Kip VanKe.pen THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the original aotion recoamended for approval by the Finance and Ad.inistration Advisory Board, at its Meeting '1/89, as follows, be approved: THAT Personnel Policy B-5, Paid Holidays, be amended to delete Re.e.brance Day as a paid holiday, while continuing to provide opportunity for attendance at Re.e.brance Day .e.orial services and to add one paid -floating- holiday per calendar year to be taken at a mutually agreed upon ti.e. 'l'BB MO'l'ION WAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .CARRIED RATIONALE Staff has reviewed the policies of other organizations with whom we regular- ly compare the Authority's Compensation Package The results of this review are as follows No. of No. of Paid Floating Holidays Holidays Town of Vaughan 11 1 Town of Markham 10 1 City of North York 10 1 Region of Peel 11 1 Region of York 12 1 Metropolitan Toronto 11 2 Authority (recommended) 11 1 The "Floater" would allow staff to deal with personal leave requirements not already covered under the Authority's existing Personal Leave Policies. Personal needs might include moving day, children's illnesses, and school holidays, etc The "Floater" would be available to all full time staff and must be used in the calendar year. The "Floater" would ~ be cumulative and there would be no pay-in-lieu. C-12 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING .2/89, JULY 28, 1989 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 3. GASAMO - AUTHORITY PARTICIPATION KEY ISSUE Late in 1988, Members of the Finance and Administration Advisory Board requested that staff investigate Authority participation in GASAMO. Res. '14 Moved by: John McGinnis Seconded by: Frank McKechnie THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the following report dated June 7, 1989 on Authority participation in GASAMO be received1 AND FURTHER THAT staff advise when an opportunity to join the GASAMO co-operative arises. CARRIED REPORT Staff was asked to investigate Authority participation in co-operative natural gas purchasing through GASAMO GASAMO is the utility established by the Association of Municipalities of Ontario to take advantage of deregula- tion of the natural gas industry In effect, GASAMO becomes a large natural gas purchaser on behalf of a number of municipalities This is attractive to municipalities which use substantial volumes of natural gas because they can use their buying power to purchase gas at lower prices. The purchase of natural gas is different from most commodities since gas cannot be stored Accordingly, GASAMO must agree to purchase a given quantity and be assured that its members will be able to utilize all of the gas purchased. If more gas is required than purchased, then the cost is usually based on a formula. When too little gas is used by the purchasing agency, the gas must be used elsewhere and there may be penalties During 1988, the Authority purchased about $25,000 worth of natural gas. We estimate that, had we participated in GASAMO, our savings would have been in the order of $2,000 Authority staff contacted the GASAMO representative and has been advised that GASAMO is no longer accepting participants. The savings that had been anticipated from the co-operative venture are no longer as lucrative as had been expected since the price, at source, is increasing and competition amongst major gas users has resulted in retail prices falling. The members of GASAMO who continue to participate are doing so because of the long-term contracts to which they are committed. To participate in the program, if the opportunity occurs, the Authority need only enter into the particular contracts that GASAMO offers to its member organizations and contracts with the actual supplier and local gas company C-13 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING '2/89. JULY 28. 1989 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CORSIDERATION 4. UNFUNDED SICK LEAVE LIABILITY Res. US Moved by Kip VanKempen Seconded by John McGinnis THAT the Board consider the above item in closed session CARRIED The Board rose from closed session KEY ISSUE The Finance and Administration Advisory Board requested that staff report on the Authority's unfunded sick leave liability Res. 116 Moved by: Jobn McGinnis Seconded by: Frank McKecbnie THE BOARD RECOMMERDS TO THE EXECUTIVE COMMITTEE THAT tbe following report on unfunded sick leave liability be received; THAT staff be directed to investigate and bring back to tbe Finance and Administration Advisory Board a report on biring an actuarial consultant to look into Option 3 below; AND FURTHER THAT staff continue to .enitor tbe sick leave liability. CARRIED REPORT In 1981, the Authority introduced short-term sick leave and long-term disability plans and replaced the previous policy whereby Authority staff could accumulate unused sick leave days. The Authority's policy for accumulated sick leave days provides for payout of 50% of the accumulated sick leave up to a maximum of six months upon retirement or termination Those employees who have accumulated sick leave credits may also use them to top up the short-term disability payments which amount to 75% of salary AS at December 31, 1988, the maximum potential liability for accumulated sick leave payments was approximately $741.000 This is down slightly from the 1987 amount of $749,000. The estimated accumulated sick leave liability as at the end of December, 1989 is $749,600. This is an unfunded liability of the Authority Each year, as part of the budgetary process, each division estimates the number of employees who will retire in that year and provides for the sick leave payout in its operating estimates. Budget adjustments are made when unplanned payouts have to be made The value of the liability will increase steadily until 1996, after which time the amounts will decrease. Based on planned age-65 retirements, payouts from the plan will continue until the year 2024 There are essentially three options to be considered Option 1 The Authority will plan from year to year to have This is the status quo. sufficient funds in its budget to cover payouts in the coming year. Average payouts over the next few years are in the $20,000-$30,000 range and are manageable. In 1997. however, almost $120,000 in payouts will be required, which would have a major impact on the budget in that year In looking at other options, the objective would be to smooth out these potential budget variances C-14 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING '2/89, JULY 28, 1989 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 4. UNFUNDED SICK LEAVE LIABILITY contd. Option 2 A second option would be to provide for funding each year for the next five to ten years sufficient to establish a reserve For example, providing the sum of $90,000 annually for the next ten years would provide sufficient funds to pay the annual requirements over the period and establish residual reserve funds to cover all remaining payments After the tenth year, the Authority would have no further operating budget obligations with respect to sick leave liability Option 3 A third alternative is to seek the necessary funding to eliminate the liabili ty now Those members of staff who have accumulated sick leave liability would probably be willing to accept less than their eventual payout today because money in hand has more value than a payout many years away If we assume that inflation is 5% and use a discount factor of 7%, it is reasonable to expect that we could payoff the entire liability, having an actual value of $787,000 at the end of 1990, with $600,000 or about 76% of the actual value There are a number of variations of this option Assuming we cannot raise -$600,000 at one time, we could endeavour to raise varying amounts of fund ing over the next two to three years and accomplish the same purpose. Funding of a reserve fund for sick leave liability is one of the few areas where Ministry of Natural Resources grant money can be placed in a reserve Given the limi ted funding we have had from M.N R in recent years, it is unlikely that they would provide sufficient funding to enable us to establish such a fund We could, however, make a request for funding over and above the rather inadequate funding we now receive, on the basis that M N R would also achieve some savings A similar request could be made of our member municipalities to fund the reserve as a means of reducing future costs. The member municipalities and the province could argue equally well that the annual funding provided to the Authority will be limited in any case and that there is no real advantage to them. In other words, if this is such a good idea, we should fund it from available funding and not seek additional funding to do so It is more likely for the Authority to seek approval to use funding from its own sources. For example, land sale monies could be allocated towards this project. The Authority could apply to use land sale revenues to fund the reserve or eliminate the liability altogether. SUMMARY In conclusion, given the limited funding available to the Authority for its regular activities and the demands on land sale funds, in particular for planned land acquisitions in the Oak Ridges Moraine and elsewhere, it is probably not appropriate at this time to seek funding of our sick leave liability Staff recommends that we continue to pursue Option 1 and deal with the unfunded sick leave liability as we have in the past C-15 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING '2/89, JULY 28, 1989 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 5. FINANCIAL PROGRESS REPORT '2 Res. U7 Moved by: Ricbard O'Brien Seconded by: Kip Van Keapen THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT tbe Financial Progress Report .2, FA.175 herewitb, covering tbe period to July 2, 1989, be received. CARRIBD NEW BUSINBSS Attendance at Meetings Res. U8 Moved by: Ricbard O'Brien Seconded by: Frank McKecbnie THE BOARD RECOMMENDS TO THE BXECUTIVE COMMITTEE THAT staff be directed to reco_end: (a) a aore frequent reporting systea on aeabers' attendance at all Autbority meetings to be circulated to all aunicipalities every tbree aontbs or six months, (b) a metbod of reporting who attends aeetings at wbich tbere is no quorum. CARRIED Consumers Gas Res. U9 Moved by: Ricbard O'Brien Seconded by: Kip VanKe.pen THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT staff be directed to investigate witb Consuaers Gas tbe use of gas-powered vebicles in tbe Autbority's fleet. CARRIBD Rescbedulinq of Meetinqs IT WAS AGREED THAT no changes will be made to the schedule of Finance and Administration Advisory Board meetings for the remainder of the year TERMINATION ON MOTION, the meeting terminated at 9.55 a.m., July 28, 1989 Gordon Patterson W.A. McLean Chairman Secretary-Treasurer em ~ , C-16 the metropolitan toronto and region conservation authority minutes FINANCE AND ADMINISTRATION 26-SEPTEMBER-1989 13/89 ADVISORY BOARD The Finance and Administration Advisory Board met in the Humber Room at the Authority Head Office, 5 Shoreham Drive, Downsview, on Tuesday, September 26, 1989 The Chairman called the meeting to order at 1 30 P m PRESENT Chairman Gordon Patterson Vice Chairman Richard O'Brien Members John McGinnis Joyce Trimmer Kip VanKempen ABSENT Members Scott Cavalier Eldred King Frank McKechnie MINUTES Res. *20 Moved by Kip Van Kempen Seconded by John McGinnis THAT the Minutes of Meeting *2/89 be approved CARRIED 1. 1990 PRELIMINARY ESTIMATES Res. *21 Moved by Joyce Trimmer Seconded by Kip Van Kempen THAT the Board hear staff's presentation on the 1990 Preliminary Estimates CARRIED . C-17 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 13/89, SEPTEMBER 26, 1989 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 1. 1990 PRELIMINARY ESTIMATES This item was recommended for approval at the Conservation and Related Land Management Advisory Board Meeting 14/89, held on Septe.ber 20, 1989, and at the Water and Related Land Management Advisory Board Meeting 15/89, held on Septe.ber 22, 1989. KEY ISSUE The Authority's 1990 Preliminary Estimates are submitted for review Res. 122 Moved by: Kip Van Kempen Seconded by: Joyce Trimmer THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the 1990 Preli.inary Operating and Capital Estimates, Appendix FA.191, be considered by the Authority~ AND FURTHER THAT representatives of the Authority, including the Chairman of the Finance and Administration Advisory Board, meet with officials of the member municipalities and the province to present and discuss the Authority's 1990 Preliminary Operating and Capital Estimates prior to submission of the final budget. AMENDMENT Res. 123 Moved by: Richard O'Brien Seconded by: Kip Van Kempen THAT staff be directed to present to the Authority, when the 1990 Preliminary Estimates are being considered, a report on the changes necessary to produce Estimates within a 7' inflationary guideline, inCluding in the base all comaitments made in 1989, and eXCluding the Greenspace component. THB AMEIIDMBNT WAS ............................................. .CARRIED THE MAIN MOTION, AS AMENDED, WAS ...............................CARRIED BACKGROUND As in past years, the Authority's budget process involves the establishment of a base level of funding in each division using the 1989 approved budget, less any adjustments for non-recurring items Each division's base is less than its 1989 approved budget and will vary depending on the size and type of special projects and other non-recurring items Items within the various programs and activities of each division included in the base level of funding have been explained in a brief narrative section To this base level of funding, each division has added a list of "priority additions" These priority additions are discrete decision packages ranked in decreasing order of priority, i e item 1 is the most important and each item that follows decreases in importance For each priority addition, an explanation is included which illustrates the service level or other improvements which will result if that item is added To achieve the overall spending target for the Authority, a line has been drawn below which items are not funded in the 1990 Preliminary Estimates Items which are listed above the line have been included, but in some cases will be subject to review as provincial and municipal funding availability is known. The priority additions are grouped under major sources of funding (a) administration, (b) water and related, (c) conservation and recreation, (d) levy supported, (e) projects C-18 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 13/89, SEPTEMBER 26, 1989 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 1. 1990 PRELIMINARY ESTIMATES contd. For each funding category, sub-sections identify the divisional priority add i tions included in that category of funding Divisional priorities within each major funding category have been identified In reviewing priority additions, grouping of items by major funding category will assist members in distinguishing those items which are funded 100%, 50% or 45% by the levy It should be noted that while the listing of priority additions within each division is in decreasing order of importance, the divisional group lists are not in priority order H iqhliqhts of the 1990 Preliminary Estimates The major new initiative in 1990 is the implementation of the Greenspace Strategy for the Greater Toronto Region which was approved by the Authority in 1988 Gross expenditure of the Authority, including the Greenspace Strategy, will grow by 10 1%, an increase of just under two million dollars over 1989's approved budget. Because operating and other revenues are predicted to grow only modestly over the 1989 approved budget, net expenditure must rise by 16 4% In 1989, actual operating revenues are down significantly and this is reflected in the modest increases identified for 1990. Removing the Greenspace initiative involving some $492,000, the Preliminary Estimates provide for a 7 6% increase in gross expenditures or 11 5% in net expenditures "Net expenditures" is that portion of the budget funded by municipal levy and Ministry of Natural Resources grant In 1990, implementation of the new recreation funding formula for distribu- tion of the municipal levy amongst the Authority's member municipalities requires an additional contribution of $158,000 from the Conservation Recreation Development Reserve. The effect of this contribution is that the actual amount of funding from MNR grant and municipal levy will increase by 14.8% including Greenspace, or 9 9% without the Greenspace program The municipal levy must rise on average by 9.2% and MNR grant requirements will be 11 2% over 1989, excluding Greenspace Of the gross expenditure increase, almost 1 1 million dollars relates directly to salaries, wages and benefits. The Authority's Preliminary Estimates include an annualization of adjustments made in 1989 as well as an increase of about 6% in salaries and wages identified in the budget guide- lines approved by the Authority earlier this year. About $400,000 is budgeted to improve services and provide for inflation across a variety of activities. Inflation is predicted to be in the 5-6% range in the Greater Toronto Region in 1990. The 1990 Preliminary Estimates include major improvements and services in the Water Resource area to accommodate development control and enforcement, most of which is related directly to implementation of the Greenspace Strategy The gross expenditures for Black Creek Pioneer Village include major development projects which must be funded from other revenues, not levy or grant These expenditures amount to some $230,000. Included in the budget are a number of projects for which funding f rom the Ministry of Natural Resources has been requested. In past years, many of these projects have not been funded and, as a result, matching municipal levy may not be required C-19 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING '3/89, SEPTEMBER 26, 1989 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 1. 1990 PRELIMINARY ESTIMATES contd. Capital A new flood control project for 1990, entitled "Black Creek Jane/Weston", provides for the enlargement of the culvert underneath Jane Street The Conservation Area Development Project includes $1,800,000 for road, sewer, water and hydro services, plus commencement of the water play pool at the Boyd Conservation Area One million dollars will be available from existing reserves and $800,000 will be funded from the levy and MNR grant equally The pool, slides and land play activities are scheduled to be completed in 1991 at a cost $1,800,000 The Bellamy Road Ravi~e Erosion Control project will be completed in 1990 The $100,000 budget is for clean-up and restoration The Hazard and Conservation Land Acquisition Project (Metro Land Acquisition) is "budgeted to bring total expenditures to the project limit of $48,000,000 The general Land Acquisition Project is budgeted at $1,600,000, of which $500,000 will be raised from MNR grant and municipal levy, with balance to be financed from pending land disposals 2. 1990 PROPOSED FEE SCHEDULE This item was recomaended for approval at the Conservation and Related Land Management Advisory Board Meeting '4/89, held on Septeaber 20, 1989. KEY ISSUE Establishment of the 1990 fee structure for the public use of Authority facilities and programs Res. '24 Moved by: Joyce Tri_er Seconded by: Kip Van Kempen THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the 1990 Fee Schedule for the use of Authority facilities and programs, Appendix CR. 91 herewith, to become effective January 1, 1990, except where noted, be reco..ended for approval to the Authority, AND FURTBBR THAT staff be directed to review the increases in Itea 31, entrace fees to Black Creek Pioneer village, and make a report to the October 27, 1989, Authority meeting. CARRIED BACKGROUND In establishing a recommended Fee Schedule, staff annually reviews charges made by other organizations operating similar facilities Information from our visitor surveys indicating the satisfaction of value for the dollar and general program satisfaction have been taken into account. For specific programs, the operating and delivery costs have been reviewed to ensure that they are recovered. FINANCIAL DETAILS Admission and Program Fees account for a significant portion of operating costs; Conservation Areas - 40 0%, Kortright - 43 8%, Conservation Field Centres - 100%, Black Creek Pioneer village - 60 8% At Kortright Centre and Black Creek, general admission fee increases are proposed The 1990 rates are in line with charges made for similar facilities and reflect individual operating costs. C-20 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 13/89, SEPTEMBER 26, 1989 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 2. 1990 PROPOSED FEE SCHEDULE contd. At Conservation Areas, parking fees account for one third of the total revenue and an increase is proposed. The last parking increase occurred in 1988 In addition, Albion Hills and Bruce's Mill Conservation Areas, based on the availability of swimming, will have a higher parking fee than other areas During the winter at Albion Hills and Bruce's Mill, admission will be totally on a per person basis Previously, skiing has been charged in this manner, while other winter activities have been based on car parking The per person charge will also apply to the Bruce's Mill Maple Syrup Program. Programming changes, including weekend guided tours and the opening of the Mill, will prov ide added value for the dollar. A per person fee for adults fishing in the public Glen Haffy ponds is also proposed , This will permit the recovery of some of the costs associated with providing fishing and will bring the operation more in line with private fishing areas. C-2l FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING .3/89, SEPTEMBER 26, 1989 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 3. PURCHASING POLICIES AND PROCEDURES, APPENDIX I KEY ISSUE A recommendation that the Authority's Purchasing Policies and Procedures be amended, such that the General Manager may designate staff authorized to purchase goods and services in amounts less than $10,000. Designation of staff to purchase goods and services is now the responsibility of the Executive Committee Res. 125 Moved by: Richard O'Brien Seconded by: Joyce Tri_er THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the Executive Committee delegate to the General Manager responsibility for the designation of staff who aay purchase goods and services in a.ounts not to exceed $10,000. CARRIED BACKGROUND Appendix I to the Authority's Purchasing policies and Procedures describes designated staff authorized to purchase goods and services in amounts commensurate with their responsibilities The Purchasing Policy requires that the Authority approve all purchases in excess of $100,000 and that purchases in excess of $25,000 must be approved by the Executive Committee. The General Manager, the Directors and the Administrator of Black Creek Pioneer Village have authority to authorize purchases over $10,000 and less than $25,000. Managers and other responsible staff have limits of less than $10,000, which they may authorize in varying amounts As the needs of the Authority change, various positions are added and taken from the list of staff designated to purchase goods and services Each time these designations change, it is necessary to present a report recommending the changes for approval by the Executive Committee and the Authority. RATIONALE To ensure that the Purchasing Policy can be kept up to date and that staff positions can be given appropriate authority to purchase goods and services, staff is recommending that responsibility be delegated to the General Manager to designate staff involved in purchases of $10,000 and under The need to be able to designate staff on relatively short notice is particu- larly important during the summer programs and construction season. Appendix II of the Purchasing Policy, relating to the designation of staff who may approve invoices for payment in respect to goods and services, does not change. Approval to pay invoices is restricted to senior positions in the Authority. C-22 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 13/89, SEPTEMBER 26, 1989 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION , HEW BUSINESS Charging for Services Res. 126 Moved by: Kip Van Kempen Seconded by: Richard O'Brien THAT staff be directed to investigate the matter of charging for services performed as an additional method of funding. CARRIED . TERMINATION ON MOTION, the meeting terminated at 3 15 P m , September 26, 1989 Gordon Patterson W.A. McLean Chairman Secretary-Treasurer em C\.. , C-23 the metropolitan toronto and region conservation authority minutes FINANCE AND ADMINISTRATION 7-NOVEMBER-1989 14/89 ADVISORY BOARD The Finance and Administration Advisory Board met in the Humber Room at the Authority Head Office, 5 Shoreham Drive, Downsview, on Tuesday, November 7, 1989 The Chairman called the meeting to order at 1 30 P m PRESENT Chairman Gordon Patterson Vice Chairman Richard O'Brien Members Scott Cavalier John McGinnis Frank McKechnie ABSENT Members Eldred King Dale Martin Joyce Trimmer Kip Van Kempen MINUTES Res. #27 Moved by Scott Cavalier Seconded by Frank McKechnie THAT the Minutes of Meeting #3/89 be approved CARRIED C-24 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 14/89, NOVEMBER 7, 1989 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 1. FINANCIAL PROGRESS REPORT NO. 3 -September 24 , 1989 KEY ISSUE Submission of the 1989 third quarter financial progress report Res. 128 Moved by: Frank McKechnie Seconded by: Scott Cavalier THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT Financial Progress Report No. 3, Septeaber 24, 1989, Appendix FA.273, be received. CARRIED ANALYSIS Divisional operating results are explained in detail in the Financial Progress Report The projected deficit of $108,700 represents a variance of one half of one percent of gross expenditures, or abou t 1% of budgeted net expenditures Attendance at tourist attractions throughout the Toronto Region is down As a result, budgeted revenue targets at Black Creek Pioneer Village and at the Indian Line Campground will not be met Lack of snow contributed to poor revenue performance in the conservation areas Significant cost reductions in all operating areas helped to offset lower than anticipated revenue performance In 1988, higher than anticipated interest earnings helped offset poor revenue performance In 1989, significant land acquisitions reduced the Authority's ability to use its cash flow to earn additional interest FINANCIAL IMPLICATIONS During the balance of the year, staff will continue to pursue measures to reduce the size of the projected deficit If there is a deficit at year end, it may impact on the 1990 operating budget Staff will report at year end. C-25 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 14/89, NOVEMBER 7, 1989 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 2. COMPUTERIZED ACCOUNTING AND INFORMATION SYSTEMS -Status Report on Acquisition KEY ISSUE The following is a status report on progress towards the acquisition of Computerized Accounting and Information Systems Res. 129 Moved by: Richard O'Brien Seconded by: Scott Cavalier THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the status report on acquistion of Computerized Accounting and Information Systems dated November 7, 1989, be receivedJ AND FURTHER THAT the proposal from Chasse Is Computer Systems Inc. be accepted at an upset price of $160,000, subject to satisfactory arrangements with respect to contract and references being received. CARRIED BACKGROUND AND ANALYSIS Activities to date February 10, 1989 Executive Committee approval of selection of Woods, Gordon as consultants to assist in acquisition of Computerized Accounting System March/Apr il, 1989 Prepared Request For Information and identified about sixty possible hardware and software vendors May 12, 1989 Advertisement placed in the Globe & Mail and Request For Information issued. May 31, 1989 Thirty-five vendors respond to Request For Information June 20, 1989 Meeting #1 of Steering Committee, results in nine vendors being asked to submit detailed proposals July/August, 1989 Detailed Request For Proposal (RFP) prepared and released to nine vendors on August 18, 1989 Nine vendors contacted Brant Computer Services Bull Hn Information Systems Descartes - RAM Digital Equipment of Canada ECS Computer Solutions (IBM) Maxon Computer Systems Prime Computer Systems STM Systems Corporation Sequent Computer Systems/Chassels September 5, 1989 Vendors' meeting attracts five vendors September 25, 1989 Three proposals received Bull Hn Information Systems Chassels/NCR STM Systems Corporation October 1989 Staff and consultants reviewed proposals. Meetings held with Bull Hn and Chassels to review their proposals in detail. A site visit to the Chassels facility is made I C-26 FINANCE AND ADMINISTRATIOR ADVISORY BOARD MEETING '4/89, NOVEMBER 7, 1989 SECTION I - ITEMS FOR AUTHORITY CONSIDERATIOR 2. COMPUTERIZED ACCOORTING AND INFORMATIOR SYSTEMS -Status Report on Acquisition contd. Selection Process Upon completion of site visits, confirmation of references and the remaining analysis of the proposals, a recommendation will be prepared The Steering Committee will be advised of the recommendation. A report will go to Executive Committee Meeting #12/89 on November 24, and, if approved, to Authority Meeting #8/89 on December 8, 1989 Implementation Planning for hardware and software installation will be done in January, February and March 1990. Implementation should occur in April and May with the system fully operational by June 30, 1990 This schedule reflects the need to commit Finance staff to budget and year end activities during January, February and March TERMINATION ON MOTION, the meeting terminated at 2 15 P m , November 7, 1989 Gordon Patterson J.W. D i llane Chairman for Secretary-Treasurer ern ~ , C-27 the metropolitan toronto and region conservation authority minutes FINANCE AND ADMINISTRATION 19-JANUARY-1990 15/89 ADVISORY BOARD The Finance and Administration Advisory Board met in the Board Room at the B~ack Creek Pioneer Village Visitors Centre on Friday, January 19, 1990. The Chairman called the meeting to order at 8 30 a m PRESENT , Chairman Gordon Patterson Vice Chairman Richard O'Brien Members Scott Cavalier Eldred King John McGinnis Joyce Trimmer Kip Van Kempen ABSENT Members Dale Martin Frank McKechnie MINUTES Res. 130 Moved by Richard O'Brien Seconded by John McGinnis THAT the Minutes of Meeting 44/89 be approved. CARRIED DISCLOSURE OF INTEREST Mr Eldred King declared a conflict, as a family member rents farm property from the Authority, in Item 3 herein, and did not participate in discussion or vote on the matter. C-28 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING '5/89, JANUARY 19, 1990 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION l. BANKING SERVICES PROPOSALS -Results of Call for KEY ISSUE At the direction of the Authority, staff called for proposals for the provision of banking services to the Authority Res. '3l Moved by: Richard O'Brien Seconded by: Kip Van Kempen THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the Banking Services Proposal from The Royal Bank of Canada, dated December 21, 1989, and as amended by letter from The Royal Bank, dated January 3, ~990, be accepted; AND FURTH~R THAT the Secretary Treasurer and the Director of Finance and Administration be directed to take such action as is necessary, including the signing of agreements, to implement The Royal Bank of Canada Banking Proposal. CARRIED BACKGROUND At its meeting #7/88, January 20, 1989, the Finance and Administration Advisory Board made the following recommendation, which stated in part "THAT staff be directed to ensure that in the coming year the recommendation for acceptance of banking services be based on a proposal call to all acceptable financial institutions" . As a result of this recommendation, which was approved by the Executive Committee, staff conducted a proposal call - Specifications for banking services were prepared. A key criterion was deposit locations suitable and accessible to the Authority's many operational locations. - Other criteria were generic and the specifications document compared favourably with recent banking specifications used by the Region of Peel and the Town of Vaughan. - 17 financial institutions were identified and sent requests for proposals. The 17 institutions were Bank of Montreal Bank of Nova Scotia Barclays Bank of Canada Canada Trust Canadian Imperial Bank of Commerce Central Guaranty Trust Citibank Canada First City Trust Company General Trust Co. of Canada Inc. Hong Kong Bank of Canada Lloyds Bank of Canada Montreal Trust National Bank of Canada National Trust The Royal Bank of Canada Royal Trust Toronto Dominion Bank C-29 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 15/89, JANUARY 19, 1990 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 1. BANKING SERVICES PROPOSALS -Results of Call for contd. - An advertisement requesting proposals from interested financial institutions was placed in the Toronto Globe and Mail on December 4, 1989 - The proposal call closed on December 21, 1989 ANALYSIS As a result of the proposal process - Four institutions wrote and declined to submit proposals - One institution, The Bank of Nova Scotia, attended at the Authority offices to review our specifications As a result of these discussions, additional information on the Authority's current banking charges was sent to all seventeen institutions. - The National Bank of Canada sent a proposal but it was not received until the day following the closing date - Only one complete proposal was received on time and that was from The Royal Bank of Canada. Because only two responses were received, staff opened and reviewed the proposal from The National Bank in spite of its coming in late. The service charges proposed were $1,220 per month, an amount higher than that proposed by The Royal Bank The National Bank had indicated no provision for direct access to daily balances and transactions. The National Bank proposal did not have deposit locations at four of the locations required by the Authority Accordingly, The National Bank proposal was rejected ROYAL BANK PROPOSAL Staff is recommending acceptance of The Royal Bank proposal because it meets the geographic criterion and the stated terms and conditions of the banking services specifications in an economical and efficient manner A summary of the key criteria follows Existing Agreement Proposal Interest on borrowing P rime P rime Interest rate on current Prime less 3% Prime less 2 1/2% account balances Value of interest on $33,390 $34,980. current account. balances (based on 1989 experience and prime at 13.5%) Annual Service Charges $8,400. $9,000 ($700. per month) ($750. per month) The Royal Bank is prepared to guarantee the foregoing rates for three years from June 1, 1990 to May 31, 1993. The Agreement may be cancelled by either party on 90 days' written notice. As required by the Authority's borrowing resolution, The Royal Bank is also prepared to extend a $10,000,000 line of credit SUMMARY Staff is satisfied that The Royal Bank will continue to provide superior quali ty banking services to the Authority The proposed fees, charges and other terms and conditions appear consistent with market conditions for banking services Annual savings to the Authority based on 1989 experience will be about $1,000 under the new agreement C-30 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 15/89, JANUARY 19, 1990 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 2. STATUTORY RESOLUTIONS FOR THE 34TH ANNUAL AUTHORITY MEETING KEY ISSUE The Authority is required to adopt statutory resolutions relating to the appointment of auditors and the borrowing of money The Authority's Rules of Conduct, Section XVIII, Banking and Borrowing, require that the borrowing of money by the Authority shall be authorized by a resolution of the Authority The appointment of an auditor is required pursuant to Section 39 of the Conservation Authorities Act Staff of the Authority is satisfied with the performance and services of the firm of Ernst & Young (formerly Clarkson, Gordon) and support their appointment as the Authority's auditors for 1990 Res. 132 Moved by: Richard O'Brien Seconded by: Kip Van Kempen THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the fOllowing resolutions be presented to the 34th Annual Meeting of the Authority: a) Appointment of Auditors , THAT Ernst and Young, Chartered Accountants, be appointed as Auditors of the Authority for the year 1990; b) Borrowing Resolution - 1990 WHEREAS it is necessary for The Metropolitan Toronto and Region Conservation Authority (hereinafter called .the Authority.) to borrow up to the sum of TEN MILLION DOLLARS ($10,000,000.00) required for its purposes until payment to the Authority of any grants and of sums to be paid to the Authority by the participating municipalities designated as such under the Conservation Authorities Act, R.S.O. 1980, Chapter 85, as amended; THAT the Authority may borrow fro. The Royal Bank of Canada or the Authority's member municipalities up to the sum of TEN MILLION DOLLARS ($10,000,000.00) necessary for its purposes on the promissory note or notes of the Authority until payment to the Authority of any grants and of sums to be paid to the Authority by participating municipalities at such rate of interest as the Minister of Natural Resources approvesJ THAT the signing officers of the Authority are hereby authorized to execute for and on behalf of the Authority, a promissory note or notes for the sum to be borrowed under paragraph 11 hereof and to affix thereto, the corporate seal of the Authority; THAT the amount borrowed pursuant to this resolution, together with interest thereon at the rate approved by the Minister of Natural Resources, be a charge upon the whole of the monies received or to be received by the Authority by way of grants as and when such monies are received and of sums received or to be received by the Authority from the participating municipalities as and when such monies are received; AND FURTHER THAT the signing officers of the Authority are hereby authorized and directed to apply, in payment of the monies borrowed pursuant to this resolution, together with interest thereon at the rate approved by the Minister of Natural Resources, all monies received by the Authority by way of grants or sums received by the Authority from the participating municipalities. CARRIED C-3l FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 15/89, JANUARY 19, 1990 SECTION I - ITEMS FOR AUTHORITY CONSIDERATION 3. FARM TAX REBATE PROGRAM KEY ISSUE In 1989, the provincial government changed the guidelines for eligibility for the Farm Tax Rebate Program With these changes the Authority no longer qualifies to receive a rebate for farm land rentals. Res. 133 Moved by: John McGinnis Seconded by: Richard O'Brien THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT the Authority attempt to recover the realty tazes on each farm land rental no longer eligible for the farm tax rebate as part of the rental rate charge to the farmer renting the land. CARRIED BACKGROUND In 1989, the Authority rented 2800 acres of farm land to 31 farmers On this farm land, the Authority paid $57,700 in realty taxes and collected $36,500 in rent An amount of $47,200 was received by the Authority in 1989 relating to farm tax rebates for 1988 , Order In Council No. 1596/89, approved on June 16, 1989, made changes to the eligibility requirements for the farm tax rebates, thus the Authority was not eligible for the farm tax rebates for 1989 taxes The change in the rebate program will result in a revenue loss to the Authority of $57,700 during 1990 4. FARM TAX REBATE PROGRAM - FURTHER ACTION Res. 134 Moved by: Richard O'Brien Seconded by: Eldred King THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE that the Authority request the Treasurer of Ontario to reconsider changes made to the Farm Tax Rebate Program whereby lands not owned by a farmer but rented for farm purposes are no longer eligible for farm tax rebate. CARRIED C-32 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 15/89, JANUARY 19, 1990 SECTION II - ITEMS FOR EXECUTIVE COMMITTEE CONSIDERATION 5. PERSONNEL POLICY A-1, HOURS OF WORK KEY ISSUE Re-wording of Personnel Policy A-7, Hours of Work, to provide flexibility Res. 135 Moved by: Scott Cavalier Seconded by: Eldred King THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT item (1) of Personnel Policy A-1, Hours of Work, be amended to read: -(1) ADMINISTRATIVE HEADQUARTERS EMPLOYEES: Minimum of 35 hours, Monday to Friday inclusive, and a one hour lunch.- AMENDMENT Res. 136 Moved by: Richard O'Brien Seconded by: Kip Van Kempen THAT the resolution be amended to read as follows: WHEREAS it is a goal of the Authority to meet the special needs of some members of staff in their daily schedules, and to extend hours of service to the public when possible; THE BOARD RECOMMENDS TO THE EXECUTIVE COMMITTEE THAT 'window hours' be established between 1:30 a.m. and 5:00 p.m., 'core hours' between 8:30 a.m. and 4:30 p.m., subject to guidelines prepared by the General Manager; AND FURTHER THAT item (1) of Personnel Policy A-1, Hours of Work, be amended to read: - (1) ADMINISTRATIVE HEADQUARTERS EMPLOYEES: Minimum of 35 hours, Monday to Friday inclusive, and a one hour lunch.- THE AMENDMENT WAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CARRIED THE MAIN MOTION, AS AMENDED, WAS ...............................CARRIED RATIONALE The introduction of staggered hours at Head Office will ease the problems of a percentage of the employees, particularly those who use Day Care and those who reside outside of the Greater Metro area The wording of the first paragraph of Personnel Policy A-7, cover ing Head Office employees states n (l) ADMINISTRATIVE HEADQUARTERS EMPLOYEES Monday to Friday inclusive, 8 30 a.m. to 4 30 p m. with one hour for lunch n To allow flexibility to permit staggered hours, the wording of the first paragraph of Personnel POlicy A-7 must be changed C-33 FINANCE AND ADMINISTRATION ADVISORY BOARD MEETING 15/89, JANUARY 19, 1990 SECTION IV - ITEMS FOR INFORMATION OF THE BOARD 6. PROPERTIES RENTED BY THE AUTHORITY FOR FARM PURPOSES Res. 131 Moved by: Joyce Trimmer Seconded by: Eldred King THAT staff provide the Finance and Administration Advisory Board with an inventory of the land that is leased for farm purposes and the kind of crops produced, if known. CARRIED TERMINATION ON MOTION, the meeting terminated at 9 50 a.m., January 19, 1990. , Gordon Patterson W.A. McLean Chairman Secretary-Treasurer em