city of whitehorse – standing committees

CITY OF WHITEHORSE – STANDING COMMITTEES Tuesday, July 4, 2017 – 5:30 p.m.

Council Chambers, City Hall

CALL TO ORDER

ADOPTION OF AGENDA

PROCLAMATIONS

DELEGATES Stuart Young – Proposed Infill Lots Angela Sale-Roche – Banner Request for Lions’ Clubs

CITY PLANNING COMMITTEE

1. New Business

CITY OPERATIONS COMMITTEE

1. Contract Awards – Winter Road Maintenance Supplies 2. New Business

COMMUNITY SERVICES COMMITTEE

1. New Business

PUBLIC HEALTH AND SAFETY COMMITTEE 1. New Business

DEVELOPMENT SERVICES COMMITTEE

1. New Business

CORPORATE SERVICES COMMITTEE

1. Borrowing of Funds for Operations Building 2. Budget Amendment – CGC Refrigeration System Repairs 3. Budget Amendment – Arctic Winter Games 2020 4. New Business

CITY OF WHITEHORSECITY PLANNING COMMITTEE AGENDA

Date: Tuesday, July 4, 2017

Location: Council Chambers, City Hall

Chair: Betty Irwin Vice-Chair: Robert Fendrick

Pages

1. New Business

CITY OF WHITEHORSECITY OPERATIONS COMMITTEE AGENDA



Chair: Samson Hartland Vice-Chair: Roslyn Woodcock

Pages

1. Contract Awards – Winter Road Maintenance Supplies 1 - 1

2. New Business

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File #: J5002010 ADMINISTRATIVE REPORT

TO: Operations Committee FROM: Administration DATE: July 4, 2017 RE: Contract Awards – Winter Road Maintenance Supplies

ISSUE Award of contracts for the supply of 10mm crushed sand and winter road salt

REFERENCE 2017 Operating and Maintenance Budget – Job # 5002010 RFT 2017-OPS0014 – Supply of 14,000 tonnes of 10mm Crushed Sand RFT 2017-OPS0013 – Supply of 500 tonnes of Road Salt

HISTORY The approved 2017 Operating and Maintenance budget includes funds for sand and road salt for winter road maintenance. As per the Purchasing and Sales Policy, a council resolution is required to award any contract in excess of $100,000. Public tenders for the supply of 10mm crushed sand and for the supply of road salt were advertised online (City website and Biddingo) starting May 16, and in the local newspapers on May 19, with a closing date of May 31, 2017. Two companies picked up tender documents for the supply of crushed sand and one bid was received. The sole bid meets tender specifications and is within budget. Four companies picked up the tender documents for the supply of road salt and two bids were received:

Canadian Lynden Transport Co. $160,000.00 Kode Contracting Ltd. $206,500.00

The low bid submitted meets tender specifications and is within budget.

ALTERNATIVES 1. Award the contract for the supply of crushed sand to Skookum Asphalt and the

contract for the supply of road salt to Canadian Lynden Transport. 2. Cancel the tenders.

ANALYSIS The award of these contracts will provide the Operations Department with the materials necessary for winter road maintenance tasks.

ADMINISTRATIVE RECOMMENDATION THAT Council award the 2017 contract for the supply of 14,000 tonnes of 10mm crushed sand to Skookum Asphalt Ltd. in the amount of $140,500.00; and THAT Council award the 2017 contract for the supply of 500 tonnes of road salt to Canadian Lynden Transport Co. in the amount of $160,000.00.

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CITY OF WHITEHORSECOMMUNITY SERVICES COMMITTEE



Chair: Robert Fendrick Vice-Chair: Samson Hartland

Pages

1. New Business

CITY OF WHITEHORSEPUBLIC HEALTH AND SAFETY COMMITTEE



Chair: Dan Boyd Vice-Chair: Jocelyn Curteanu

Pages

1. New Business

CITY OF WHITEHORSEDEVELOPMENT SERVICES COMMITTEE AGENDA



Chair: Jocelyn Curteanu Vice-Chair: Betty Irwin

Pages

1. New Business

CITY OF WHITEHORSECORPORATE SERVICES COMMITTEE AGENDA



Chair: Roslyn Woodcock Vice Chair: Dan Boyd

Pages

1. Borrowing of Funds for Operations Building 1 - 3

2. Budget Amendment – CGC Refrigeration System Repairs 4 - 5

3. Budget Amendment - Arctic Winter Games 6 - 6

4. New Business

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ADMINISTRATIVE REPORT

TO: Corporate Services Committee FROM: Administration DATE: July 4, 2017 RE: Borrowing of Funds for the Operations Building

ISSUE Borrowing funds for the Operations Building

REFERENCE 2017 – 2020 Capital Budget 2017 Operations Building Financing Plan v.5

HISTORY The 2014 to 2018 capital budget authorized administration to begin replacing the existing Municipal Services Building. In October 2016, a preliminary financing plan was presented to Council which identified three funding sources – Gas Tax funding, a contribution from City reserves, and borrowing. As required under the City’s Debt Management Policy, the 2017 to 2020 Capital Budget Bylaw included the Operations Building project subject to a separate borrowing bylaw. A bylaw authorizing the borrowing of funds is now required.

ALTERNATIVES Authorize the borrowing of funds by bylaw Refer the matter back to administration for further consideration

ANALYSIS The 2017 to 2020 capital budget includes $40,720,628 for building a new Operations Building (plus a subsequent amendment to increase the project at a cost of $9,220,000 to include the transit expansion). It was identified in the 2017 Operations Building Financing Plan that up to $18,800,000 of this amount would come from borrowing. Administration invited funding proposals from six major Whitehorse lending agencies. An initial proposal evaluation was conducted, and to confirm the results, BDO Business Advisory Services was contracted. It should be noted that all proposals were prepared using indicative rates. These rates are calculated based on current conditions and used for the purposes of establishing an offer. The final rate will be set 60 days subsequent to construction completion and may be higher or lower than the indicative rate. The preferential proposal is from TD Canada Trust. Based on the analysis done by administration and BDO, this proposal provides the most preferential rate and term for the City while also minimizing risk.

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Administrative Report – Borrowing for the Operations Building July 4, 2017 Page 2 of 2

The TD Canada Trust Operations Building bank financing proposal is made up of 2 parts:

A construction-type loan facility utilizing variable banker’s acceptance and fixed rate options (post-award of the construction contract a draw schedule can be prepared which will utilize more fixed rate draws to lower the cost of borrowing) based on multiple draws at interest-only payments at an indicative floating rate of between 1.62% - 1.95%

A final 20-year term loan at an indicative fixed rate of 2.635% utilizing interest rate swaps to guarantee the rate over the 20 year term. The bank can opt-out of the arrangement in five year intervals. The opt-out provision, if utilized by the bank would require a future renegotiation of the remaining loan amount at a future rate of interest.

The opt-out period is a risk that the City has to consider when entering into this type of borrowing. However, the risk of this occurring is felt to be low as there is a reputational risk to the bank of doing so and as confirmed with representatives of TD Canada Trust, the bank would generally hedge the risk at the time of loan origination. While other proposals increased the opt out period or removed it all together, these options resulted in higher borrowing costs calculated to be higher by up to 5.11% if the full $18,800,000 were borrowed. The 20-year term is very attractive as the term matches the loan amortization period. All other offerings varied slightly in terms of rate of interest with some term variation. A term variation also means that the interest rate would be subject to renegotiation prior to the end of the 20 year period. Assuming the entire $18,800,000 is borrowed and utilizing the 2.635% indicator rate amortized annually with monthly payments, the yearly amount payment will total $1,210,353.54 subsequent to 2020 for the life of the loan. The 20-year-term loan is proposed to entail the following total principal and interest:

Interest $5,407,070.77 Principal $18,800,800.00 Total $24,207,070.77

ADMINISTRATIVE RECOMMENDATION THAT Council direct that Bylaw 2017-25, a bylaw to authorize the borrowing of funds for the new Operations Building from TD Canada Trust, be brought forward for due consideration under the bylaw process.

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CITY OF WHITEHORSE BYLAW 2017-25

A bylaw to authorize the borrowing necessary to fund a Municipal Operations Building

WHEREAS section 251 of the Municipal Act provides that council may by bylaw authorize the borrowing of money for municipal purposes; and WHEREAS the current taxable assessment of all real property in the City of Whitehorse is $2,816,123,566; and WHEREAS $84,483,707 is the total possible principal amount of debt that the City of Whitehorse may owe at any time, being three percent of the current assessed value of all real property in the municipality that is subject to property taxes or grants instead of taxes, and WHEREAS the amount of City of Whitehorse debt as at December 31, 2016 is $8,706,662, no part of which is in arrears; NOW THEREFORE the council of the municipality of the City of Whitehorse, in open meeting assembled, hereby ENACTS AS FOLLOWS:

1. The borrowing of the sum of up to $18,800,000 dollars by way of a loan issued on the credit and security of the City is hereby authorized for the purpose of funding a Municipal Operations Building.

2. The loan to be issued under this bylaw shall be dated upon such day as may be appropriate having regard to the date of the borrowing, and shall be issued for the term of 20 years and shall be issued in such manner that the principal and interest will be combined and made payable in monthly instalments commencing in the month following the borrowing.

3. The said loan shall bear interest during the 20 year term at an indicative rate of 2.653% as set out by TD Canada Trust.

4. The said loan shall be signed by the Mayor and the Treasurer of the City, and the Clerk shall affix thereto the corporate seal of the City of Whitehorse.

6. This bylaw shall come into full force and effect upon the final passing thereof. FIRST and SECOND READING: THIRD READING and ADOPTION: _________________________________ Mayor

_________________________________ City Clerk

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TO: Corporate Services Committee FROM: Administration DATE: July 4, 2017 RE: Budget Amendment – CGC Refrigeration System Repairs

ISSUE Funds are required to replace the compressor controllers on the refrigeration system at the Canada Games Centre in 2017.

HISTORY The ice refrigeration system at the Canada Games Centre is a large and complex system to provide cooling for the three ice surfaces as well as waste (free) heat to the facility’s heating systems. The refrigeration system operates using 3 compressors as the main drivers. Each of the three compressors has a control system that operates, monitors and controls the compressor equipment. In June 2017, 2 of the 3 compressor control systems on the refrigeration system at the Canada Games Centre failed and as such, the ice refrigeration system is currently not operational. The Operations Department is no longer able to source parts for the original electronic components. This project involves replacing each of the 3 compressor control systems at the Canada Games Centre with the current version of controller that is supported and warrantied.

ALTERNATIVES 1. Amend the 2017- 2020 capital budget 2. Direct administration to absorb the repairs within existing budgets.

ANALYSIS Restoration of the ice refrigeration system at the Canada Games Centre is critical to the operation of the facility. While 2 of the 3 compressor controllers have failed, all three are being replaced to ensure proper and consistent operation of the system. The specific cause of the failure has not been determined, although it is likely that circuitry or a processor has failed due to age and near constant heavy use. The single currently working controller will be salvaged for parts for possible use in the City’s other two ice refrigeration systems (Mt. McIntyre Rec Centre and Takhini Arena), both of which are similar to the Canada Games Centre. It is anticipated that the same components will have to be replaced at Mt. McIntyre and Takhini Arena as those systems age.

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Administrative Report – Budget Amendment – CGC Refrigeration System Repairs July 4, 2017 Page 2

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The emergency nature of these repairs to this critical City of Whitehorse asset required that the City Manager waive the bidding process and direct award a contract for the repairs based on a bona-fide emergency. The repairs are in progress and, although it is anticipated that these repairs will be complete prior to this administrative report coming before council, arrangements have been made to ensure that Takhini Arena is available for July ice season start up should the Canada Games Centre refrigeration system repairs not be completed. The estimated budget for this project is $70,000. These repairs should be captured in the capital budget in order to ensure that the asset management process recognizes the betterment to the asset and is properly accounted for in the systems. Should the repairs be referred back to administration to be absorbed within existing budgets, priorities will be evaluated and work re-prioritized to fund the repairs.

ADMINISTRATIVE RECOMMENDATION THAT Council amend the 2017-2020 capital budget to add a new 2017 capital project in the amount of $70,000 for Canada Games Centre Ice Refrigeration System Repairs, funded from the General reserve.

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Last amended by N. Felker; 2017-06-29; 10:00:29 AM


TO: Corporate Services Committee FROM: Administration DATE July 4, 2017 RE: Budget Amendment – Arctic Winter Games 2020

ISSUE To amend the 2017 to 2019 operating budget to include 2017 expenses related to the Arctic Winter Games 2020.

HISTORY On May 31, 2017 Council confirmed their intent to host the Arctic Winter Games 2020 in partnership with the Yukon Government. Through the existing 2017 – 2019 operating budget the City has allocated funds annually for the event to go into the Arctic Winter Games trust account.

ALTERNATIVES 1. Amend the operating budget to allow the anticipated 2017 expenses. 2. Do not amend the operating budget and refer the matter back to administration.

ANALYSIS The City’s funding contribution for the Arctic Winter Games was spread out over three years: $50,000 for 2017 and $100,000 for 2018 and 2019. There will be some expenses in 2017 including meeting expenses and travel as well as some start-up costs for the Host Society. Meetings the City is aware of at this time revolve around the Arctic Winter Games International Committee and the signing of the hosting contract and M2 which is the last contingent meeting this fall in NWT before the 2018 Arctic Winter Games they will host. The Host Society typically sends key Host Society members to the M2 meetings. The 2017 expenses will not exceed $50,000.

ADMINISTRATIVE RECOMMENDATION THAT Council direct that the 2017 – 2019 Operating Budget be amended to increase the Parks and Community Development Other Services account (07.1.741.6390) for 2017 by up to $50,000 for the purposes of Arctic Winter Games 2020, funded from the Arctic Winter Games trust account.

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city of whitehorse – standing committees

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