CITY OF CHESTERMERE AGENDA For the Regular Meeting of Council to be held Monday, October 17, 2016 at 3:15 p.m. in Council Chambers at the Municipal Office
CALL TO ORDER
A. AWARDS
B. ADOPTION OF AGENDA
C. APPOINTMENTS
3 1. Presentation from Chestermere Regional Recreation Centre - Ice Resurfacing Equipment Purchase
D. ADOPTION OF MINUTES
20 1. Regular meeting of Council October 03, 2016 28 2. Public Hearing Minutes October 03, 2016
E. BUSINESS ARISING OUT OF THE MINUTES
1. Action List
F. STAFF REPORTS
30 1. Calgary Regional Partnership Sub-Committee Update
G. ACTIONS/DECISIONS
33 1. Cheque Listing – October 7, 2016 34 2. Ice Resurfacing Equipment Purchase 36 3. West and East Chestermere Student Safety 37 4. Letter of Support: Chestermere Agricultural Society
H. BYLAWS
I. CORRESPONDENCE & INFORMATION
38 1. Minister’s Awards for Excellence in Public Library Service – Hon. Danielle Larivee, Minister of Municipal Affairs 40 2. Rocky View Schools Retirement and Long Service Awards Banquet – Colleen E. Munro, RVS Board Chair 42 3. CUPW, Another Opportunity to Have Your Say in Canada Post Review – Mike Palecek, National President 45 4. Kids Help Phone – Sharon Wood, President and CEO
J. REPORTS
K. QUESTION PERIOD
L. IN CAMERA
1. As per Freedom of Information and Protection of Privacy Act, Part 1, Division 2, Section 241 . – SouthLink update 2. Legal: as per Freedom of Information and Protection of Privacy Act, Part 1, Division 2, Section 27. – Utility Mandate and Regulatory Process (4:00 p.m.)
M. APPOINTMENTS
47 1. Presentation from Stack’d Consulting (5:00 p.m.)
N. NOTICE OF MOTION
O. NEW BUSINESS
P. READING FILE
1. New Publication, The Theory and Practice of Political law, 2nd edition – Thomson Reuters
Q. ADJOURNMENT
2 CRCA OLYMPIA REQUEST
October 2016 Presentation to Chestermere City Council Jody Nouwen CRCA General Manager
3 RATIONALE The Chestermere Regional Recreation Centre requires an update to its current Olympia Millennium Ice Resurfacing machine.
• The unit maintains: 2 arenas (1 standard size and 1 Olympic size) as well as an additional smaller surface for spring rentals.
• The current machine is 10 years old and has 8129 operational hours this translates into 901,232.64 kms
• Average ice resurfacer requires daily maintenance and replacement every 4000-6000 hours which translates in to 4-6 years of operation. Our current unit is 4-6 years past due to be replaced
• *Update – Oct 5th the Olympia broke down is out of service and needs major repairs. We have a replacement onsite that we are paying monthly rent on. 4 JUSTIFICATION Without an Ice resurfacer the CRCA will have the following issues:
Loss of revenue – the two arenas are the major revenue source for the CRCA CRCA users groups affected Ice rink services eliminated for community users Reputation of the CRCA diminishes Fees associated for the rental machine Approx. $2,500/month
5 CRCA ICE USERS 2016
Chestermere Youth hockey 32 teams
Chestermere Adult hockey 58 teams
Ice Edge figure skating Approx. 80 skaters
Numerous weekly public skate and shinny hockey times
Other users: Approx. 175 hockey/ringette teams from Calgary and surrounding areas.
6 CRCA MEMBERSHIPS 2015
The CRCA sold a total of 1042 memberships in 2015. This number includes seniors, individual and family memberships.
*Note the family memberships will have multiple people which means we have more than 1042 members.
872 MEMBERSHIPS ARE RESIDENTS FROM CHESTERMERE 84% 170 MEMBERSHIPS ARE RESIDENTS FROM SURROUNDING AREAS 16%
7 2016 OLYMPIA ICEBEAR ELECTRIC
The CRCA has identified the 2016 Olympia Icebear Electric unit as the ideal machine for our facility The unit is electric. Our current unit is propane. We would save on average $7000.00 / year on fuel costs Clean burning unit – Battery technology that will last for approx. 28 floods between charges. The cost per flood with current unit is $2.50, the new Icebear will cost $0.18/flood. The CRCA does between 20-25 floods per day on a weekend. Annual maintenance can be done on site. No need for oil change, transmission or radiator flush. The Icebear will provide the CRCA with a higher quality ice surface because of the updated equipment. Money saved with use of new unit will be allocated to other needs in the facility 8 LEASING COST OF ICEBEAR ELECTRIC
(Monthly Payment x Term of Payment + buyout cost)+GST = Total Unit Cost $2938.75 monthly x 60 Months + $16,500 Buyout = $192,825.00 + GST ($9641.25) = $202,466.25 Administrative Cost from lender ($393.75) + Unit Cost ($202,466.25) = Total cost incurred if unit is leased and bought out at end of 60 month term $202,860.00 If the CRCA did not have to pay lease on a new machine it will save $36,000 per year.
9 3 quotes: Zamboni 650 Engo 200 Red Ice Bear Electric Electric Wolf Maintenance Location Cochrane Acheson, Alberta Calgary
Frame Construction Stainless Steel Construction Structured Steel Steel Frame
Snow Capacity 3.37 m3 3.00 m3 3.0 m3
Water Capacity 253 US Gallon 260 US Gallons 240 US Gallon
Height Clearance 104 " (bin open) 123" (bin open) 114 " (bin open)
Battery Capacity 660 Amp hours 770 Amp Hours 750 Amp Hours Warranty on machine – 2 full years Warranty on Chassis – 25 years corrosion Warranty on Batteries – 5 full years 100% plus 1 year prorated 24 months or 2000 Warranty hours 2 full years Must be sent off Maintenance and site to Zamboni Annual Service Can be done on site at CRCA Shop unknown
Unit Cost $165,00.00 +GST 10 $173,920.00 +GST $146,100 + GST CITY OF CHESTERMERE FUNDING FOR THE CRCA
Request:
• City of Chestermere assist the CRCA with its purchase of a new Olympia. With this the CRCA can try to raise money through grants and fundraisers to cover any remaining balance. OR
• City of Chestermere purchases the Olympia and leases it back to the CRCA on a yearly basis.
11 CITY OF CHESTERMERE FUNDING FOR THE CRCA
Request:
• City of Chestermere work with the CRCA to support the recreation operating budget in the coming years.
• The CRCA is taking measures to become self sufficient through improved programming, increased facility bookings, advertising revenue and possible leases/licenses(with approvals), however support is needed to balance the budget.
12 CITY OF CHESTERMERE RECOGNITION
Should the City of Chestermere approve the requested financial assistance for the CRCA we will pleased to recognize your contribution in the following ways:
City of Chestermere will become the naming entity on the outside of the Recreation Centre for 3 years (value of $300,000) City of Chestermere Rink board in both arenas Public recognition at CRCA events in the 2017 Recognition on digital sign, website and newsletter
13 QUESTIONS?
14 Letter of support
15 Letter of support
16 Letter of support
17 Letter of support
18 THANK YOU Jody Nouwen General Manager Chestermere Regional Community Association 403-272-7170 Ext 228 [email protected]
19 MINUTES OF THE REGULAR COUNCIL MEETING FOR THE CITY OF CHESTERMERE HELD MONDAY OCTOBER 03, 2016 AT 1:00 P.M. IN COUNCIL CHAMBERS AT THE MUNICIPAL OFFICE
PRESENT: Mayor Patricia Matthews Deputy Mayor Gail Smith Councillor Stu Hutchison Councillor Christopher Steeves Councillor Heather Davies Councillor Jennifer Massig Councillor Patrick Watson
REGRETS:
ALSO PRESENT: Randy Patrick, Chief Administrative Officer Tracy Buteau, Director of Corporate Services John Popoff, Director of Development & Infrastructure Services Blake Termeer, Director of Protective Services Donelda Laing, Director of Community Services Jillian Borsuk, Legislative Coordinator Maggie Nguyen, Recording Secretary
GALLERY: 22 People 0 Media CALL TO ORDER
Mayor Patricia Matthews called the meeting to order at 1:00 p.m.
A. AWARDS
B. ADOPTION OF AGENDA
8.010.100316 Moved by Deputy Mayor Smith that the agenda be adopted as 362-16 presented. CARRIED: C. APPOINTMENTS
D. ADOPTION OF MINUTES
1. Regular Council Meeting held September 19, 2016
8.011.100316 Moved by Councillor Massig that the minutes of the Regular 363-16 Meeting held Monday September 19, 2016 be adopted as presented. CARRIED:
2. Special Council Meeting held September 12, 2016
20 8.011.100316 Moved by Councillor Davies that the minutes of the Special 364-16 Meeting held Monday September 12, 2016 be adopted as presented. CARRIED:
E. IN CAMERA
8.014.100316 Moved by Councillor Watson that Council go in camera at 1:10 365-16 P.M. CARRIED:
1. Legal: as per Freedom of Information and Protection of Privacy Act, Part 1, Division 2, Section 27.
8.015.100316 Moved by Councillor Davies that Council go out of in camera at 366-16 2:02 P.M. CARRIED:
Council recessed at 2:02 p.m. Council resumed at 2:11 p.m.
F. BUSINESS ARISING OUT OF THE MINUTES
1. Action List
G. STAFF REPORTS
H. ACTIONS/DECISIONS
1. Cheque Listing – September 23, 2016
4.020.100316 Moved by Councillor Davies that all Cheque Listings as per the 367-16 report dated September 23, 2016 be accepted as information. CARRIED:
1. East Twp. Rd. 240 Bridge Construction Tender
3.017.100316 Moved by Councillor Hutchison that Council approve the award of 368-16 South Link Connection/Township Road 240 Upgrade Contract 1 – Bridge to Westpro, with funds to be drawn from the Roads Off Site Levies Restricted Surplus Account, to proceed with the construction of the East Twp. Rd. 240 Canal Crossing Bridge not to exceed $1,350,000. CARRIED:
2. Multi-year Budgeting Policy # 446
1.017.100316 Moved by Deputy Mayor Smith that Council approve the Multi- 369-16 Year Budgeting Policy #446. CARRIED:
21 3. Restricted Surplus Policy # 447
1.017.100316 Moved by Councillor Davies that Council approve the Restricted 370-16 Surplus Policy #447. CARRIED:
1.017.100316 Moved by Councillor Davies that Council approve the Restricted 371-16 Surplus Account Index & Descriptions attached to the Restricted Surplus Policy #447. CARRIED:
4. Capital Financing and Debt Management Policy # 448
1.017.100316 Moved by Councillor Watson that Council approve the Capital 372-16 Financing and Debt Management Policy # 448 CARRIED:
I. BYLAWS
1. Bylaw #010-16, a bylaw to provide for a general amendment to the City of Chestermere’s Land Use Bylaw 022-10, as amended
3.019.100316 Moved by Councillor Massig that Council table first reading of 373-16 Bylaw #010-16 until Schedule E is fully identified and explained. CARRIED:
Council recessed at 3:11 p.m. Council resumed at 3:18 p.m.
2. Waterford Area Structure Plan, Bylaw 022-15
3.019.100316 Moved by Councillor Massig that Council approve third reading of 374-16 Bylaw 022-15 as amended. - To include a line in Shallow Services Policy to provide flexible infrastructure for the option of providing broadband. CARRIED:
J. CORRESPONDENCE & INFORMATION
1. High School Replacement Project – Minister Brian Mason 2. CUI - September 19, 2016 Regular Meeting of Council Agenda Item C. 1 Utilities Governance Structure: Stack’d Consulting (“the Consultant”) City Utilities Project Check- Point (the “Report”) 3. Letter from City to CUI – Re: September 19, 2016 Regular Meeting of Council Agenda Item C. 1 Utilities Governance Structure: Stack’d Consulting (“the Consultant”) City Utilities Project Check-Point (the “Report”) 4. Another Opportunity to Have Your Say in Canada Post Review – Mike Palecek, National President
22 5. 2016 CN TC Crossing Information – Brent Kossey 6. Association of Alberta Registry Agents and AUMA Support – Pamela Wilson 7. Calgary Branches Poppy Fund – Joey Bleviss, Chief Administrative Officer
8.012.100316 Moved by Deputy Mayor Smith that Council accept 375-16 Correspondence & Information items J1 – J7 as information. CARRIED:
K. COUNCIL REPORTS
REPORT FROM MAYOR MATTHEWS -Attended the grand opening of the Jays Care Foundation baseball diamond -Attended a thank you dinner for Jays Care representatives -Attended a Business Park committee meeting -Participated in a teleconference regarding the 690 Hearing -Met with CAO and the new consultant on CUI Mandate/Reg Review to hear about timelines -Met with outgoing Anchor reporter to hear suggestions about communication efforts in the future -Met, via phone, with former Chair of the Mid-Sized Cities Mayor’s Caucus to learn about presenter opportunities for Chestermere as the host City -Attended a CPC meeting on proposed business in Chestermere -Met weekly with Council communications expert to review upcoming messaging online and in the Anchor -Met weekly with the CAO and Deputy Mayor regarding City updates on outstanding projects -Met with Library Director, Deputy Mayor and library staff regarding programs and future plans for Library growth -Thanks to Deputy Mayor Gail Smith for the excellent coverage while I way away for a week with my family -Met with MLA Leela Aheer to review joint initiatives and to get updates on community efforts at the Provincial level -Spoke with Altalink Government relations representative regarding sponsorship for mid-sized caucus -Spoke with Mayor of Strathmore regarding City Hall building plans for their future growth -Met with Fast Eddy who is running across Canada to raise money and awareness for Breast Cancer research and Alzheimer’s research -Met bi-weekly for Council agenda review where placement of items within the agenda is discussed to facilitate the meeting -Met several times with local Anchor reporter or answered questions via email on City projects, vision and initiatives of Council -Did several media interviews regarding Bee City with Preston Pouteaux
23 -Attended a Human Services Advisory Board meeting regarding FCSS and United Way funding -Met with Jeff Rutter regarding Citizens on Patrol and new executive members initiatives. -Met several times with CAO, Deputy Mayor Smith and staff regarding agenda and activities for Mid-Sized Cities Mayor’s caucus -Attended Junior A Canucks vs Eagles exhibition game in Chestermere and brought greetings on behalf of Council -Met with several media outlets regarding the Municipal Affairs review letter -Met with a resident interested in sitting on committees and potentially running for Council in 2017 -Attended the Annual Country Fair and participated in the annual Parade. Thanks to Paul for the use of his wagon and team again this year! -Attended several days of the Conrich Area 690 Municipal Government Board Appeal hearing and would like to thank staff and consultants for all of their hard work in presenting such a compelling argument against this development -Met with CRP Executive Director and Chair regarding upcoming Fall sessions and On-It Transit launch -Attended a CRP Executive Committee meeting where broadband business plans were presented -Met with Senator Doug Black regarding Chestermere needs and priorities were discussed -Attended Committee of the Whole presentations on large scale visionary documents. These are open to the public and their agendas published should anyone wish to attend. -Met with Council to discuss upcoming priorities and committees for 2017 -Attended a Special Meeting of Council -Attended several Policy Review Adhoc Committee meetings where reserves policy was discussed -Presented 2016 as a year in review for the City at the Chamber of Commerce Mayor’s Breakfast. Great attendance, good questions and thanks to the organizers and sponsors. -Attended a Senior’s Forum on senior’s housing in Chestermere and listened to speaker Doug Griffiths, 13 Ways consultant, outline next steps for the group -Presented on Regional Partnership and Growth Management Board impacts on Chestermere to U of C Urban Design grad students -Facilitated the Mid-Sized Cities Mayor’s caucus for the first time here in Chestermere. Mayors, CAO’s and staff attended from all 22 municipalities. Topics discussed included infrastructure with Minister Brian Mason, municipal affairs plans for 2017 and beyond with Minister Danielle Laravee, national pipeline projects and plans with Senator Doug Black, social media, MGA review, broadband planning and more
24 -my sincere thanks to Deputy Mayor Gail Smith for stepping in for me when I had a family emergency this summer and for all her hard work on the Mayor’s caucus event, as well as the day to day support that is very much appreciated!
REPORT FROM DEPUTY MAYOR SMITH
September 7: - Meeting regarding Mid-Sized Cities Mayors’ Caucus - Energizer Night – City Advocate – chatted with numerous residents September 8 – 18: - Vacation. Daily email checks and responses regarding city matters. - Calgary Canucks vs Canmore Eagles Hockey Game at the Rec Centre September 19: - Committee of the Whole – Economic Development Strategies - Council Meeting September 20: - Met with council to discuss upcoming priorities and committees for 2017 September 21: - Discuss Mid-Sized Cities Mayors’ Caucus Agenda and activities - Policy Review Ad Hoc Committee on Budget - Birth Forest – tree planting for 15 new babies in the city – 15 trees. September 22: - Mayor’s Breakfast for the Chamber of Commerce - Aging in Place – Seniors’ Forum with Doug Griffiths at Lakeside Greens – Special thanks to the organizing committee. Next steps for the group to follow. - Policy Review Ad Hoc Committee on Budget September 23: - Attended the Merit Hearing – 690 with Rocky View County September 27: - IT – Drop off laptop and quick update - Streetscape Committee Meeting September 29: - Proud to host the first Mid-Size City Mayors’ Caucus in Chestermere. – Golfed at the Lakeside Golf Course – Special thanks to Glenn Carr and staff. - Dinner with the Minister of Municipal Affairs Danielle Larivee and staff for The Mid-Size City Mayors’ Caucus delegates – At The Landing – Special thanks to John Kittler and staff. September 30: - Mid-Size City Mayors’ Caucus met all day at Camp Chestermere – Special thanks to Shannon and staff.
25 October 1: - Attended the Chestermere Arts Days – Great entertainment and art work! Well done!
REPORT FROM COUNCILLOR HUTCHISON -Sept 19th Business Park Meeting -Sept 20th Committee of Whole (offsite) -Sept 21 Policy Review (Finance) -Sept 22nd Aging in Place Forum @ Lakeside -Sept 22nd Policy Review (Finance) -Sept 23 690 Appeal (Calgary) -Sept 29th Midsize Cities Activities
L. QUESTION PERIOD
M. IN CAMERA
8.014.100316 Moved by Councillor Watson that Council go in camera at 3:49 376-16 P.M. CARRIED:
1. Legal: as per Freedom of Information and Protection of Privacy Act, Part 1, Division 2, Section 27. 2. Legal: as per Freedom of Information and Protection of Privacy Act, Part 1, Division 2, Section 27.
8.015.100316 Moved by Councillor Hutchison that Council go out of in camera at 377-16 4:45 P.M. CARRIED: Council recessed at 4:50 p.m.
Councillor Steeves entered at 5:00 p.m.
Public Hearing for Bylaw 020-16 called to order 6:00 p.m.
Council resumed 7:00 p.m.
N. NOTICE OF MOTION
Councillor Davies to give notice of motion that information be brought forward regarding safety for children accessing bus stops on West Chestermere Drive and East Chestermere Drive.
O. NEW BUSINESS
1. Tax overdue fees - Lucy Putnam
8.017.100316 Moved by Councillor Davies that Council deny the request of Lucy 378-16 Putnam, for the dismissal of late fees for 2016 taxes. CARRIED:
26
P. READING FILE
1. The River Current – Fall 2016 2. Report to the Community - A Year in Review, 2015-2016 – Olds College
Q. ADJOURNMENT
8.017.100316 Councillor Watson adjourned the meeting at 7:07 P.M. 379-16
______Mayor Patricia Matthews
______Tracy J. Buteau, Director of Corporate Services
27 PUBLIC HEARING MINUTES FOR BYLAW 020-16 FOR THE CITY OF CHESTERMERE HELD MONDAY OCTOBER 03, 2016 AT 6:00 P.M. IN COUNCIL CHAMBERS AT THE MUNICIPAL OFFICE
PRESENT: Mayor Patricia Matthews Deputy Mayor Gail Smith Councillor Heather Davies Councillor Stu Hutchison Councillor Christopher Steeves Councillor Patrick Watson Councillor Jennifer Massig
ALSO PRESENT: Randy Patrick, Chief Administrative Officer Tracy Buteau, Director of Corporate Services John Popoff, Director of Development Services Donelda Laing, Director of Community Services Blake Termeer, Director of Protective Services Jillian Borsuk, Legislative Coordinator Maggie Nguyen, Recording Secretary
GALLERY: 12 people 0 media
Please click here for audio recording
CALL TO ORDER
A. Mayor Matthews called the meeting to order at 6:00 p.m.
B. BYLAW # 020-16
1. Jose Reyes, Planning and Development Manager
Jose Reyes, Planning and Development Manager with the City of Chestermere, presented his staff report and answered questions from Council. Please see the presentation hyperlinked above.
a. Persons speaking in favour
• Roland Schatz, StoreWest (205, 525 28 Street SE, Calgary, AB) - For presentations, click here • Josip Jukic (243136 & 243140 Rainbow Road, Chestermere, AB) • Ken Elias (120 Sienna Passage, Chestermere, AB)
b. Person speaking in opposition • Karen Weyman (243229 Paradise Road, Chestermere, AB)
28 C. ADJOURNMENT
Deputy Mayor Smith adjourned the Public Hearing at 6:51 p.m.
______Mayor Patricia Matthews
______Tracy J. Buteau, Director of Corporate Services
29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 City Utilities Project Check-Point The City of Chestermere CUI Mandate and Rate Regulatory Framework Development Project October 17, 2016
47 Document Purpose
This document provides The City with summary recommendations for CUI’s Mandate and Rate Regulatory Framework
The terms of the project were to: 1. Develop an approved go-forward mandate for CUI, and 2. Establish a formal rate regulatory framework to guide future rate reviews.
This presentation provides: 1. A recap of the approved project work plan; 2. Summary recommendations for The City’s objectives for its Utilities and CUI’s Mandate; 3. Summary recommendations for Rate Regulatory Framework; and 4. Summary recommendations for subsequent implementation steps.
48 Project Work-Plan
We have developed, reviewed, and confirmed key concepts which will underpin CUI’s Mandate and Rate Regulatory Framework Current Project Status
49 Strategic Objectives for the Utilities
The following objectives for The City’s Utilities provide a basis for developing CUI’s Mandate and Rate Regulatory Framework
Alignment to City’s # Objective Supporting Characteristics Strategic Plan • Ensure sufficient financial management and cash position to ensure future operational and capital sustainability; Principle #2: User Pay Achieve Full Cost • Rates reflect total costs of service and are not subsidized by municipal taxes; Principle #4: Economic Recovery & Sustainability 1 • Dividend payment not required for “Regulated” utility services (i.e. water, sewer, Financial storm, and residential waste collection) to customers within Chestermere; and, Initiative #4: Increase the Sustainability • Longer-term – City directs received profits (derived from new business “Non- non-residential tax base and Regulated” opportunities) for approved municipal purposes non-standard revenue
• Provide safe, reliable, and consistent utility services; Principle #4: Environmental Ensure Well & Social Sustainability 2 • Pursue ongoing operational and value-for-money improvements; and, Managed Utilities • Focus on customer service and customer satisfaction outcomes. Principle #6: Fiscally Conservative Principle #4: Sustainability Support Municipal • Support The City make future investments to achieve its vision as “Alberta’s Initiative #5: Create 3 Growth & Oasis: The Recreation and Relaxation Capital”; and, infrastructure and Investment • Support municipal growth. operational capabilities 50 CUI – Summary Mandate
Based on The City’s desired objectives for its Utilities, CUI’s supporting mandate is summarized as follows
City’s Strategic Principles & Initiatives
1. Achieve Full Cost 2. Ensure Well Managed 3. Support Municipal
City’s City’s Recovery & Sustainability Utilities Growth & Investment Objectives for itsfor Utilities i. Ensure ongoing financial self- i. Enable a safe working i. Transfer Utility-associated debt sustainability environment from City to CUI where feasible ii. Provide “Regulated” Utility ii. Adhere to all applicable ii. Support City’s municipal services on a full cost recovery regulations development: basis (no dividend required) iii. Focus on continual operational • Determine and receive funds iii. Evaluate and introduce new improvements and value-for- for Utility’s total costs for growth Summary “Non-Regulated” services on a money • Account and report on capital CUI CUI Mandate for-profit basis (i.e. dividend iv. Focus on customer service contributions and usage payment to The City) • Provide growth capital to support municipal growth 51 Utility Services Return on Equity Expectations
Subject to Dividend Payments to The City
Minimum Return Required for Financial Additional Return Additional Sustainability
* Regulated: Delivered Water, Wastewater, and Storm Water services for City customers, and Solid Waste Collection services for residential City customers (per waste bylaw definitions)
Return on Equity Return Equity on ($$) **Non-Regulated: other services offered by CUI Required Return for Return Required Financial Sustainability Financial Minimum Cost Recovery & Recovery Cost Minimum
Regulated Services * Non-Regulated Services ** Note: proportions not necessarily to scale
52 Summary Rate Regulatory Framework Rates shall be determined based on methods aligned with the Alberta Utilities Commission (AUC)
1. CUI shall use the “Full Utility Basis” to identify rate revenue requirements, i.e.: i. Operating and Maintenance Expenditures (with focus on external vs. internal costs) ii. Depreciation Expense (not including amortization for contributed assets) iii. Return on Rate Base to support: i. Debt Interest Charges ii. Required Cash Position to achieve financial self-sustainability 2. As Shareholder, The City shall receive appropriate organizational reporting and forward- looking plans and forecasts from CUI 3. As Regulator, Council will retain final rate approval decision-making accountabilities 4. A “to-be” rate-setting process and schedule will guide future year’s rate-setting activities
53 Implementation Requirements
The following implementation steps have been identified:
1. Updates to applicable, overarching policy documents to ensure consistency (e.g. Unanimous Shareholder’s Agreement) 2. Establishment of appropriate communication and reporting protocols respecting Council’s role as both “Shareholder” and “Rate Regulator” 3. Development of an “Interim” Rate-Setting Process to support 2017 rate-setting and evolvement towards the desired “to-be” process 4. Review, updates, and confirmation of key administrative and operational processes supported by both CUI and The City, with focus on key interdependencies
54 55