Regular Agenda
1. Commencement
2. Additions/Deletions
3. Approval of Minutes
4. Consensus Agenda
NOVEMBER 28, 2019 5. Conferences/Training REGULAR BOARD 6. Board Matters MEETING 7. In-Closed Session TOWN OF TOFIELD 5:00 PM
Beaver Municipal Solutions 50117 Range Road 173 BMS Commission Board Ryley, AB T0B 4A0 PH: 780-663-2038 FAX: 780-663-2006
beavermunicipal.com Chairman Brian Ducherer Ryley Vice-Chairman Harold Conquest Tofield Director Jason Ritchie Viking
Director Kevin Smook Beaver County
Director Mark Giebelhaus Holden Board Meeting – November 28, 2019 Town of Tofield 5:00 PM
PRELIMINARY AGENDA ...... 1 - 2 MEETING MINUTES
APPROVAL OF THE SPECIAL MEETING OF NOVEMBER 4, 2019 ...... 3 – 4 APPROVAL OF THE REGULAR MEETING OF NOVEMBER 7, 2019 ...... 5 - 8 REGULAR REPORTS (CONSENSUS AGENDA)
4.1 – FUAL (FOLLOW UP ACTION LIST) ...... 9 – 15 4.2 – OPERATIONS UPDATE...... 16 - 21 CALENDAR OF EVENTS
5.1 – CALENDAR OF EVENTS ...... 22 5.2 – MSL NO.063/19 ...... 23 - 24 5.3 – PROPOSED 2020 MEETING SCHEDULE ...... 25 5.4 – ISSUED LETTERS RESULTING FROM NOV 7 MEETING ...... 26 - 30 5.5 – PAC AGENDA ...... 31 5.6 – DRAFT LETTER OF RECOMMENDATIONS TO BOARD FROM PAC ...... 32 5.7 – MCC MOTIONS ...... 33 BOARD MATTERS
6.1 FIO – BMS-2019-002 NEW ADMIN BUILDING CONCEPTUAL DESIGN PRESENTATION ...... 34 - 50 6.2 RFD – QUARTERLY HR REPORT ...... 51 - 52 6.2.1 - ATTACHMENT – QUARTERLY REPORT IIII ...... 53 - 56 6.3 RFD – WASTE WATER MOBILE TREATMENT UNIT ...... 57 - 59 6.4 FIO – WILLOW PROJECT UPDATE ...... 60 - 61 6.4.1 - ATTACHMENT ...... 62 - 63 6.5 FIO - GPS FUNCTIONALITY REPORT ...... 64 - 66 6.6 BDR – UPDATE ON HOLDEN BOTTLE DEPOT ...... 67 - 69 6.7 BDR – 2020 BUDGET ...... 70 – 82 6.8 RFD – 2019 WORKSTATION UPGRADE ...... 83 - 85
Next Regular Board Meeting December 12, 2019 Town of Tofield
BEAVER MUNICIPAL SOLUTIONS
PRELIMINARY AGENDA REGULAR BOARD MEETING November 28, 2019 5:00 PM Town of Tofield
Board Members:
Chairman: Brian Ducherer Vice Chairman: Harold Conquest Director: Jason Ritchie Director: Kevin Smook Director: Mark Giebelhaus
1. Commencement
2. Additions/Deletions to the Agenda
2.1 Addition – 6.8 – 2019 Workstation Upgrade 2.2 Amendment – 6.7 – RFD to BDR – 2020 Budget 2.3 Amendment – 6.6 – FIO is BDR – Update on Holden Bottle Depot
3. Approval of Minutes
3.1 Minutes of Special Meeting – November 4, 2019 3.2 Minutes of the Regular Meeting – November 7, 2019
4. Regular Reports (Consensus Agenda)
4.1 Follow Up Action List (FUAL) 4.2 Operations Update
5. Conferences/Training/Correspondence
5.1 Events Calendar 5.2 Ministerial Order – MSL:063/19 5.3 Proposed 2020 Meeting Schedule 5.4 Letters Resulting from Nov 7 Meeting 5.5 November 19, 2019 PAC Agenda 5.6 Recommendations resulting from November 19, 2019 PAC Meeting 5.7 MCC Motions of November 20, 2019 Council Meeting
6. Board Matters
6.1 FIO – BMS-2019-002 New Admin Building Conceptual Design Presentation 6.2 RFD – Quarterly HR Report 6.3 RFD – Waste Water Mobile Treatment Unit 6.4 FIO – Willow Project Update 6.5 FIO – GPS System Functionality Report 6.6 BDR – Update on Holden Bottle Depot
AGENDA 2019.11.28 Beaver Municipal Solutions
Page 1 of 85
BEAVER MUNICIPAL SOLUTIONS
PRELIMINARY AGENDA REGULAR BOARD MEETING November 28, 2019 5:00 PM Town of Tofield 6.7 BDR – 2020 Budget 6.8 RFD – 2019 Workstation Upgrade
7. In-Session – FOIP (As Required)
7.1 Section (16) 7.2 Section (17) 7.3 Section (20)
8. Motions Arising From Closed Session
9. Meeting Evaluation Form
9.1 Director Evaluation Form
10. Adjournment
10.1 Motion for Adjournment
Next Meeting December 12, 2019 5:00 PM Town of Tofield
AGENDA 2019.11.28 Beaver Municipal Solutions
Page 2 of 85
BEAVER REGIONAL WASTE MANAGEMENT SERVICES COMMISSION
SPECIAL BOARD MEETING Date: November 4, 2019 Location: Village of Ryley Time: 3:00 P.M.
COMMISSION DIRECTORS present at commencement: Chairman: Brian Ducherer Vice-Chairman: Harold Conquest Director: Jason Ritchie Director: Kevin Smook Director: Mark Giebelhaus
COMMISION DIRECTORS absent at commencement:
ADMINISTRATION present at commencement: General Manager: Pierre Breau, P. Eng., ICD.D Chief Financial Officer: Juvy Ceniza, CPA/CMA PCS: Anne Ruzicka
MINUTES OF MEETING: Executive Assistant: Marilyn Booth
1. Commencement:
Chairman Ducherer called the meeting to order at 3:06 PM.
2. Additions and Deletions
3. Board Matters
3.1 BMS’ Reply to Beaver County Questions:
General Manager reviewed answers to questions posed by Beaver County Council regarding the Municipally Controlled Corporation;
Question Set 1 October 16, 2019 Question Set 2 October 29, 2019 Question Set 3 November 3, 2019
Chairman Ducherer called break at 4:10 pm. Chairman Ducherer resumed commencement at 4:20 pm.
4. Closed Session – FOIP Section 2(16)
19 135 Motion to go In-Session moved by Director Smook at 5:40 pm.
Carried
19 136 Motion to go out-of-session moved by Director Giebelhaus at 6:08pm.
Carried
19 137 Motion to notify public, to return to open meeting moved by Chairman Ducherer at 6:09 pm.
Carried
5. Motions Arising from Closed Session
19 138 Moved by Director Conquest, that the answers to the three questions sets received from Beaver County Council, and Councillors be approved, as
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BEAVER REGIONAL WASTE MANAGEMENT SERVICES COMMISSION discussed, and be presented to Beaver County Council at its November 6, 2019 meeting, per its invitation to BMS/
Carried
6. Adjournment
19 139 Moved by Chairman Ducherer to adjourn the meeting at 6:11 pm.
Carried
Chairman:
General Manager:
Next Regular Meeting November 7, 2019 5:00PM Tofield Chambers
Beaver Municipal Solutions/BMS Organizational Board Meeting – 2019.11.04 . Page 4 of 85
BEAVER REGIONAL WASTE MANAGEMENT SERVICES COMMISSION
REGULAR BOARD MEETING Date: November 7, 2019 Location: Town of Tofield Time: 5:00 PM
COMMISSION DIRECTORS present at commencement: Chairman: Brian Ducherer Vice-Chairman: Harold Conquest, BSc, ICD.D Director: Mark Giebelhaus Director: Kevin Smook Director: Jason Ritchie, BBA, ICD.D
COMMISSION DIRECTORS absent at commencement: N/A
ADMINISTRATION present at commencement: General Manager: Pierre Breau, P. Eng., ICD.D Chief Financial Officer: Juvy Ceniza, CPA/CMA BDR Manager: Greg Olson PCS: Anne Ruzicka HR/Payroll Manager: Jeanie DeGrande. CHRP P/ME Cam Borton, P. Eng., PMP Engineering Coordinator: Meaghan Neufeld., M.Sc.E, E.I.T. EA Marilyn Booth
ADMINISTRATION absent at commencement: Operations Manager: Mark Lowe
1. Call to Order (Regular Meeting)
Chairman Ducherer called the meeting to order at 5:00 pm.
2. Additions/Deletion/Changes to the Agenda
2.1 Added 5.5 – Date for Organizational Meeting
2.2 Deleted 6.4 – FIO – 2020 Preliminary Budget, replaced with MCC Business Plan Revisions.
2.3 Added additional document to 6.3 RFD – Annual Insurance Claim, regarding Security and Fencing
2.4 Added additional documents to 6.5 – RFD – EWMC Hauling Contract Update
2.5 Added 6.6 – FIO – Update on Mud Control at Landfill
2.6 Added 6.7 – RFD – MCC Request for Financial Statements
2.7 Added 6.8 – RFD – Landfill Appraisal
2.8 Added 6.9 – In Session – FOIP Section 2(16)
19 140 Moved by Dir. Smook to approve the agenda, with amendments.
Carried
3. Reading and Approval of the Minutes:
3.1 Minutes of the Regular Meeting of September 19, 2019
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BEAVER REGIONAL WASTE MANAGEMENT SERVICES COMMISSION 19 141 Moved by Dir. Conquest that the Minutes from the Regular Meeting of September 19, 2019, be approved, as presented.
Carried
4. Regular Reports – Consensus Agenda
4.1 Follow up Action List (FUAL)
19 142 Moved by Dir. Giebelhaus to approve the Consensus Agenda for information, as circulated.
Carried
5. Conferences/Training/Correspondence
5.1 Calendar of Events
5.2 Highway 854 Speed limit letter – Beaver County
5.3 Good Neighbor Grant letter – Beaver County.
5.4 Letter of Appointments
5.5 Organizational Meeting Date
19 143 Moved by Dir. Smook that the 2019 Organizational Meeting will be held on November 28, 2019 prior to the Regular Board Meeting.
Carried
6. Board Matters
6.1 FIO – BMS-2019-002 New Administration Building Update
BMS prepared a Request for Proposals (RFP) for an Administrative Building Design and Project Management services for BMS-2019-002 – New Administration Office Building on September 16, 2019. The RFP closed on October 3, 2019, there were nine submissions from interested vendors. BMS granted award of the Building design and Project Management Services to Berry Architecture and Associates (BAA) for $199,518.00 plus GST. The project is budgeted for $1.6 million in the 2019 Capital Budget. Conceptual design to be presented at November 28, Board Meeting.
6.2 FIO – HR Logix Employee Survey Results
BMS conducted an Employee Satisfaction Survey performed by HR Logix in July and August of 2019. BMS employees reported very high levels of engagement with an overall satisfaction score of 83%, with the Culture and Work environment satisfaction rated as 90%. Nevertheless, the survey suggests that improved communication between management and employees is needed. GM will present a suggested action plan on the how improvements to communication can be attained at a future Board Meeting the first quarter of 2020.
6.3 RFD – Annual Insurance Claim, Risk Management Plan
19 144 Moved by Dir. Ritchie that the annual insurance claim report, be accepted as presented.
Carried
6.4 RFD – MCC Business Plan Revisions.
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BEAVER REGIONAL WASTE MANAGEMENT SERVICES COMMISSION 19 145 Moved by Dir. Conquest that version 6 of the MCC Business Plan for BMS/Claystone Waste be approved and submitted to MCC Steering Committee and municipal councils for posting in upcoming public hearings regarding the MCC creation.
Carried
19 146 Moved by Dir. Ducherer that BMS Board of Directors recommends to the member municipal Councils that the MCC Business Plan, version 6, be approved by each Council.
Carried
19 147 Moved by Dir. Ritchie the BMS Board of Directors recommends to the member municipal Councils to each add discussion of the MCC Unanimous Shareholders’ Agreement and Limited Partnership Agreement to a future meeting agenda.
Carried
6.5 RFD – EWMC Hauling Contract Update
19 148 Moved by Dir. Smook that the hauling contract with the City of Edmonton (event No. 934214) be approved, as presented.
Carried
6.6 FIO – Update on Mud Control at BMS Landfill
The tracking of mud onto Secondary Highway 854 from our landfill site, continues to be a concern for BMS and the Public including Alberta Transportation. BMS has proposed the following strategies to mitigate the amount of mud being tracked off of the landfill:
. Additional signage on the highway advising drivers that the area may be slippery at times.
. RubberForm Track Mats to shake mud off of the trucks prior to reaching the highway from the landfill.
. A rubber edge snowblade to be utilized to prevent further spreading of the mud, but to ensure no damage to the paved surface occurs.
Alberta Transportation has agreed with these terms. BMS staff have already started the process to mitigate the amount of mud leaving BMS site.
Installation of RubberForm Track Mats are to be installed at BMS Landfill on November 18, 2019.
6.7 RFD – MCC Request for Financial Statements
19 149 Moved by Dir. Smook that the Board approve the release of Yaremchuk and Annachiarico LLP (YA) comments to member municipalities’ CAO’s for their reference.
Carried
6.8 RFD – Landfill Appraisal and Evaluation
19 150 Moved by Dir Ritchie that Beaver Municipal Solutions prepare an RFP for consulting services to do a detailed appraisal of BMS assets.
Carried
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BEAVER REGIONAL WASTE MANAGEMENT SERVICES COMMISSION
7. Closed Session – FOIP
7.1 Section 2(16) 7.2 Section 2(17) 7.3 Section 2(21)
19 151 Motion to go in-session moved by Dir. Ducherer at 7:50 pm.
Carried
19 152 Motion to go out-of-session moved by Dir. Ritchie at 9:00 pm.
Carried
19 153 Motion to notify public to return to open meeting moved by Ritchie at 9:02 pm.
Carried
9. Motions Arising from Closed Session (Section 2(17))
19 154 Moved by Dir. Ducherer that a response to Beaver County’s correspondence of October 21, 2019 regarding the Good Neighbour Grant be issued stating that the matter of amending the formula of the Good Neighbour Grant be postponed until after the creation of the MCC and the appointment of a professional (non-elected) MCC Board.
Carried
10. Meeting Evaluation Forms – Completed
11. Adjournment
19 155 Moved by Director Ducherer to adjourn the meeting at 9:03pm.
Carried
The next Regular meeting of the Board will be November 28, 2019 at the Town of Tofield
Chairperson
GM
Beaver Municipal Solutions/BMS Regular Board Meeting – 2019.11.07 . Page 8 of 85 4.1 – Follow Up Action List – 2019.11.28
Date Report Who Action Status 2019.01.24 FIO – Resident Transfer Stations GM/PCS Chairman Ducherer expressed concern In Progress regarding out-of-county residents disposing of solid waste at BMS transfer stations for no-fee, similar to in-county residents. The Board directed staff to return with a proposal identifying programs that would be implemented to curtail these occurrences. See in county Residents program 2019.06.27 2019.03.21 Lane Caputo compensation review BMS Mgmt. Management to review the compensation Complete report in detail and discuss possible recommendations to Board at a future Board Meeting 2019.04.25 6.1 – FIO – ATB Wealth Presentation: External/CFO Board has requested that ATB Wealth In Progress Jaclyn Perrot, from ATB Wealth presented details of follow up at a future Board Meeting to investment5 mandate per the MGA, historical fund discuss the plans to better the BMS performance. Portfolio and requests further research information into the university bond index 2019.06.27 Landscape Architectural Plan GM Motion approving concept plan. BMS staff 2020- to meet with architect to develop phase 1 detailed plan and present to Board at November meeting 2019.06.27 19 087 – Annual Community Grants, that the Board PCS Motion Carried. Anne to issue award 2019.11.28 approve the annual community supports grants as letters to grant recipients. Anne to issue recommended by administration letters to three infrastructure grant requestors that motion holding off on infrastructure grants until MCC decided. Grants to be re considered at November Board Meeting 2019.06.27 In County Residents Program PCS Anne to complete program implementation 2019.12.12 plan for future Board RFD – tentatively set
Meeting Follow Up Action List 2019.11.28
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for recommendation at November Board Meeting 2019.06.27 19 088 – New Admin Building: GM Motion Carried. BMS staff to issue RFP Complete that the Board approve a Request for Proposals be and have recommendation for award issued to receipt of submissions from qualified firms ready for November Board Meeting of Design-Build Proposals for a new BMS administration building approximately 3,000 square feet of usable office and meeting space located on BMS lands adjacent the main entrance off of Secondary Highway (North) 854 2019.06.27 GHG Mitigation Plan presented GM GM to update for Board Presentation for Complete September Board Meeting. 2019.06.27 19 089 – Services Charter: that the Board agrees in GM Motion Carried. GM to send Services Complete principle with the Municipal Member Solid Waste Charter to member CAO’s for review, Mgmt., Charter as presented, and that the Charter be comment and inclusion in MCC submitted to the MCC Steering Committee. agreements 2019.07.30 FIO 3.1 – Mud on Highway GM Follow up required for BMS staff to consult Complete with Alberta Transportation on reducing speed zone on Hwy 854 in vicinity of Landfill entrance. Follow up to the request will be shared with the Board at a future Board meeting. It was discussed by the County that Alberta transportation is responsible for any implementation of speed adjustments.. 2019.07.30 FIO 3.2 – Carbon Black Ops/GM A full report regarding the incident for the Complete Carbon Black investigation to be provided to the Board when investigation completed. 2019.08.22 BDR – Claystone Website Presentation. PCS Launch of the new website expected for Complete end of August.
Meeting Follow Up Action List 2019.11.28
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Public Information session to be scheduled 2019.08.22 19 111 – RFD – 2020 Purchase of Track Loader Eng Motion Carried. Engineering to issue Complete that the Board approve the allocation of 2020 capital tender for the purchase of the approved equipment purchase in the estimated amount of up to Track loader $900,000.00 CAD to allow Engineering to tender and order a new Track Loader. Delivery and expense of the equipment would be in 2020.
2019.08.22 19 112 – That the Board request Municipal Affairs to EA Motion Carried. EA to prepare letter to Complete release unit 108, a 2015 973D Track Loader Municipal Affairs. 2019.08.22 19 113 - that the Board approve a budget of OPS Motion Carried. Operations Manager to Complete $87,522.68 + GST to be approved for repair of unit keep Board informed on the results of the 111, Caterpillar Model 973D track loader, S/N Warranty work for unit 111 and provide LCP00442 and staff report back on completed work further information at the September and results of warranty negotiations at the next Board Meeting. practicable Board Meeting.
2019.08.22 19 117 – GM/Board Motion Carried. Complete that the Board approve the draft Operating Draft Operating Agreement to be shared Agreement and forward to the Municipal Member with Municipal Member Councils. Councils for their review with respect to creation of Operating agreement sent to Councils the proposed municipal-controlled corporation, Claystone Waste 2019.08.22 November Board meeting HRPM HR Logix results to presented at Complete November Board Meeting 2019.08.22 November Board Meeting Ops/GM/ENG The functionality of the GPS system in 2019.11.28 Hauling trucks be presented at the November Board Meeting for information 2019.08.22 RFD – Appointment of Financial Auditors CFO RFD to be presented to the Board Complete requesting Y & A be appointed as external financial auditors for the 2019 fiscal year
Meeting Follow Up Action List 2019.11.28
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2019.08.22 RFD – Waste Water Treatment Unit Ops/GM/ENG Recommendation to be presented on 2019.11.28 waste water for November Board Meeting 2019.08.22 Reports Due GM/CFO Annual Insurance Claim and Risk Complete Management Report to be presented at the September Board meeting 2019.08.22 Future Board Meeting CFO CFO to provide Longview proposal of In Progress new computers for BMS and present recommendation at future Board Meeting. Tofield transfer station
2019.09.19 RFD – Quarterly Ops Report OM Motion Carried. Confirmation required 2019.12.12 That the Board approve the Ops Quarterly report as from an independent consultant presented regarding the leachate spill. 2019.09.19 RFD – Appointment of Financial Auditors Y&A. CFO Motion Carried. Complete 2019.09.19 Added Item – 6.4 – FIO – Holden Bottle Depot OM The Board directed staff to consult with 2019.11.28 the operator and the village in order to develop alternate solutions to illegal dumping in the affected area, and report back to the Board on status at its next meeting.
2019.09.19 Added Item – 6.5 – RFD – MCC Business Plan 5.2 Motion Carried. Complete Approval. that version 5.2 of the MCC Claystone Waste business plan be approved. 2019.09.19 Added Item – 6.6 – RFD – Ag Plastic Launch GM/PCS Motion Carried. 2019.12.12 PCS to move forward with implementation. GM to sign agreement
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4.1 – Follow Up Action List – 2019.11.28
Finance Department to set up details in Reflex. Update at December meeting
2019.09.19 Employee Survey HR HRM to present Board with the Lane 2019.11.28 Caputo survey for next Board Meeting 2019.09.19 Willows GM Board recommended GM to provide a 2019.11.28 Final report regarding the Willow Project 2019.09.19 Operations OM/HR Board recommended Management look In Progress into hours of landfill to remain open 7 days a week, to minimize the overtime costs for employees. 2019.11.07 Board Matters: EA Motion Carried. Preliminary agenda for Complete 19 143 – that the 2019 Organizational Meeting will be Organizational Meeting to be posted on held on Nov 28, prior to the Regular Board Meeting website 2019.11.07 FIO – 6.1 - BMS-2019-002 – New Admin Building ENG Conceptual Design to be presented at 2019.11.28 2019.11.28 Board Meeting 2019.11.07 FIO – 6.2 - HR Logix Employee Survey GM GM will present a suggested action plan 2020-Q1 on Employee/Management communication plan at an upcoming Board Meeting. 2019.11.07 19 144 - RFD – Annual Insurance Claim GM Motion Carried Complete that the annual insurance claim report, be accepted as presented 2019.11.07 RFD – MCC Business Plan Revisions; GM/Board Motion Carried. Complete 19 145 - that version 6 of the MCC Business Plan for Version 6 to be submitted to MCC BMS/Claystone Waste be approved and submitted to steering committee. Letters to be MCC Steering Committee and municipal councils for drafted for Chairman signatures. posting in upcoming public hearings regarding the MCC creation
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19 146 - that BMS Board of Directors recommends to the member municipal Councils that the MCC Business Plan, version 6, be approved by each Council.
19 147 - that the BMS Board of Directors recommends to the member municipal Councils to each add discussion of the MCC Unanimous Shareholders’ Agreement and Limited Partnership Agreement to a future meeting agenda.
2019.11.07 19 148 – EWMC Hauling Contract Update GM Motion Carried Complete that the hauling contract with the CoE be approved, as presented 2019.11.07 19 149 – MCC Request for Financial Statements that the Board EA Motion Carried. Document attachments Complete approve the release of Y & A LLP (YA) comments to sent out to CAO’s member municipalities’ CAO for their reference 2019.11.07 19 150 – Landfill Appraisal and Evaluation GM/ENG Motion Carried. BMS to draft the RFP 2019.12.12 that BMS prepare an RFP for Consulting services to for Consulting services and present perform a detailed appraisal of BMS assets awarded contract at an Dec Board Meeting 2019.11.07 In Session – 19 153 GM/EA Motion Carried. Complete that a response to Beaver County’s correspondence A letter to be sent to the Beaver County of October 21, 2019 regarding the Good Neighbour and signed by Chairman Ducherer Grant be issued stating that the matter of amending the formula of the Good Neighbour Grant be
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4.1 – Follow Up Action List – 2019.11.28
postponed until after the creation of the MCC and the appointment of a professional (non-elected) MCC Board
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OPERATIONS UPDATE
Introduction
The following report is the Operations Update for the month of November 2019 for the Board meeting Consensus Agenda.
A more detailed quarterly report will be presented to the Board as an RFD for its December 2019 meeting.
Landfill
Included in this report are summary data regarding waste tonnages disposed and landfill capacity used and remaining.
Waste Comparison by Type 2018 to 2019 YTD Monthly
200000
180000
160000
140000 CS SW 120000 SW (liquid) DW 100000 Clean Concrete Freon (items) 80000 C&D MSW 60000
40000
20000
0 Jun '18 Jun '19 Jul '18 Jul '19 Aug'18 Aug'19 Sep'18 Sep'19 Oct'18 Oct'19
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OPERATIONS UPDATE
Major MSW Customers 2018 to 2019 Comparison 300,000.00
250,000.00
200,000.00
150,000.00
100,000.00
50,000.00
- Customer 1 Customer 2 Customer 3 Customer 4
Jan-Oct 2018 Jan-Oct 2019
MSW continues to come in at expected quantities
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OPERATIONS UPDATE
Collection and Hauling
Hauling operations continue for the City of Edmonton, below is a breakdown comparison between 2018 and 2019 by month. BMS Hauling for COE 2018 to 2019 YTD Change (tonnes) 3,000.00 2,685.23
2,000.00 1,436.97
1,000.00 708.60 684.32 331.06 0.29 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct
-1,000.00 -609.66 -864.99 -924.46
-2,000.00 -1,981.03
-3,000.00
Projects
Capital expenditure and maintenance projects for Operations are managed by our Engineering Department in close cooperation with Operations staff.
4.2 - Operations Board Meeting 2019.11.28
Page 18 of 85 CAPITAL PROJECTS FORECAST As At October 31, 2019
2019 Actuals Forecasts Project 2019 Budget 2019 Actuals Commitments + Commitment for 2019 YTD Balance Notes 2017025 SE Sediment Pond Design 37,033.42 11,254.92 10,047.53 21,302.45 2,000.00 23,302.45 13,730.97 Warranty $17,500 prepaid and expensed over 2018002 Grader 323,500.00 359,557.50 0.00 359,557.50 0.00 359,557.50 -36,057.50 # of machine hours. PROJECT CLOSED 2018004 Pickup Trucks 6,000.00 3,510.00 0.00 3,510.00 0.00 3,510.00 2,490.00 Carry Forward
2018012 Paving 15,000.00 77,192.50 0.00 77,192.50 0.00 77,192.50 -62,192.50 2018019 Ditch Re-Direction and New Storm Pond Design 111,871.00 46,421.64 12,942.91 59,364.55 5,000.00 64,364.55 47,506.45 cb - extended warranty for Bomag is $94.5K (prepaid asset - expensed over # of machine 2018020 Compactor 2,448,034.00 2,497,509.55 0.00 2,497,509.55 0.00 2,497,509.55 -49,475.55 hours) Project Closed
2018023 Landfill Cell 6 Construction 4,601,379.00 4,317,041.36 0.00 4,317,041.36 0.00 4,317,041.36 284,337.64
2018024 Landfill Cell 3 Capping 307,317.00 304,885.60 0.00 304,885.60 0.00 304,885.60 2,431.40 2018025 RFP - Benchmarking 20,000.00 9,982.00 0.00 0.00 0.00 0.00 20,000.00 Project Closed
2018026 Landfill Gas Feasibility Study 100,000.00 50,655.26 0.00 50,655.26 0.00 50,655.26 49,344.74 Project Closed 2019001 Transfer Site Program 100,000.00 5,648.84 0.00 5,648.84 20,000.00 25,648.84 74,351.16 2019002 Administration Building 1,600,000.00 152,917.17 199,876.98 352,794.15 0.00 352,794.15 1,247,205.85
2019003 Sweeper 400,000.00 99,670.00 0.00 99,670.00 0.00 99,670.00 300,330.00 Project Closed
2019004 Collection Bin Growth and Replacement 100,000.00 99,670.00 0.00 99,670.00 0.00 99,670.00 330.00 Project Closed 2019005 Pump Purchased December 2018 $50,348 used Replacement 50,000.00 0.00 0.00 0.00 0.00 0.00 50,000.00 from 2018 budget. Project Closed 2019006 Light Tower Addition 30,000.00 19,349.13 0.00 19,349.13 0.00 19,349.13 10,650.87 Project Closed
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Page 19 of 85 CAPITAL PROJECTS FORECAST As At October 31, 2019
2019 Actuals Forecasts Project 2019 Budget 2019 Actuals Commitments + Commitment for 2019 YTD Balance Notes
2019007 Monitoring Well Improvements 50,000.00 5,513.00 0.00 5,513.00 0.00 5,513.00 44,487.00
2019008 Paving 400,000.00 471,530.49 3,415.69 474,946.18 0.00 474,946.18 -74,946.18 2019009 Stage 2 Leachate Access Manhole 100,000.00 18,921.42 31,778.58 50,700.00 0.00 50,700.00 49,300.00 2019010 Landscape Architecture Study 100,000.00 9,426.50 36,991.90 46,418.40 0.00 46,418.40 53,581.60 2019011 ERP - Reflex Carry Forward Phase 4 52,172.00 487.50 51,797.00 52,284.50 -112.50 52,172.00 0.00 Carry Forward
2019012 Folding Machine 0.00 10,035.90 0.00 10,035.90 0.00 10,035.90 -10,035.90 Project Closed 2019013 Land 300,000.00 0.00 0.00 0.00 300,000.00 300,000.00 0.00 2019014 GHG Pump Testing 0.00 5,405.19 23,848.21 29,253.40 3,369.59 32,622.99 -32,622.99 2019015 Compost Facility 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Labour 334,713.00 51,845.54 0.00 51,845.54 0.00 51,845.54 282,867.46 Labour Carry Forward 12,561.13 1,031.97 0.00 1,031.97 0.00 1,031.97 11,529.16 Carry Forward 2019016 Business Development 1,790,000.00 286,296.00 145,369.76 431,665.76 0.00 431,665.76 1,358,334.24 2019017 GPS Tracking System 0.00 710.00 710.00 0.00 710.00 -710.00 Project Closed 2019018 Pump Replacement 2 0.00 48,900.00 48,900.00 0.00 48,900.00 -48,900.00 Project Closed Adjustment to balance to budget (less sediment pond, grader difference, pick-up, Carry Forward -107,566.55 0.00 0.00 0.00 0.00 0.00 -107,566.55 ERP)
Totals 13,282,014.00 8,965,368.98 516,068.56 9,471,455.54 330,257.09 9,801,712.63 3,480,301.37
4.2 - Operations Board Meeting 2019.11.28
Page 20 of 85
OPERATIONS UPDATE
4.2 - Operations Board Meeting 2019.11.28
Page 21 of 85 Section 5.1 – BMS Board of Events Calendar – 2018/2019 Date: 2019.11.28
Conferences, Courses, Dates to Remember No Meetings in July
November 4 3 pm – 5 pm Special Board Meeting Village of Ryley Special Board Meeting November 7 5 pm – 7 pm Regular Board Meeting Town of Tofield Regular Meeting (This meeting was moved from October 24) November 19 5 pm – 7 pm PAC Meeting BMS Training Centre Regular Meeting November 28 5 pm – 7 pm Regular Board Meeting Tofield Chambers Regular Meeting November 30 7:30pm – 11 pm BMS Christmas Party Bruce Hotel Please let Lyndie know if you will be able to attend the Christmas Party. [email protected]
December 12 5 pm – 7 pm Regular Board Meeting Tofield Chambers Tentative
Section 5.1 - Board Meeting Events Calendar 2019.11.28
Revision: 4 BRD Date: 2017.11.16 Page 22 of 85 Page 23 of 85 Page 24 of 85 5.3 - 2020 Board Meeting Schedule.xlsx
Proposed Date 2020 Calendar - Board Meeting Dates Month Date Venue Time January 16 Tofield 5:00pm February 27 Tofield 5:00pm March 26 Ryley 5:00pm April 16 Ryley 5:00pm May 21 Viking 5:00pm June 18 Ryley 5:00pm July N/A N/A N/A August 20 Holden 5:00pm September 17 Viking 5:00pm October 15 Ryley 5:00pm November 26 Tofield 5:00pm December 17 Tofield 5:00pm Page 26 of 85
REQUEST FOR DECISION (RFD)
SUBJECT:
Impact of MCC on Recording Member Municipalities Financial Statements
RECOMMENDATION:
That the Board approve the release of Yaremchuk and Annachiarico LLP (YA) comments to member municipalities’ CAOs for their reference.
CFO/GM COMMENTS:
BMS consulted its auditor, YA, on the MCC-related documents to prepare for the change in accounting records as an MCC based on the Unanimous Shareholder Agreement, Limited Partnership Agreement and Operating Agreement.
As part of YA’s reply, they also mentioned how the MCC will impact the financial statements of Member Municipalities from a recording perspective. Please see attached highlighted portion of the email. It talks about accounting standards that CAOs may want to check with their own accountants and auditors.
Under the Limited Partnership laws, 100% of the income will be recorded in each Partner’s financial records based on its share. However, releasing cash as dividend will follow policy and business plan. The CAOs may want to think about how this will impact their financial statements and interpretation of those who use these financial statements.
BMS can arrange a discussion with YA should the CAOs and their auditors need more clarification.
RECOMMENDATION Report/Document: Attached X Available Nil
KEY ISSUE(S)/CONCEPTS DEFINED: See CFO/GM comments.
RELEVANT POLICIES:
STRATEGIC RELEVANCE: Compliance to generally accepted accounting principles.
DESIRED OUTCOME(S): Approval of the recommendation as presented.
RESPONSE OPTIONS:
RFD 6.7 – 2018.11.07 | Beaver Municipal Solutions Revision: 4 RFD Date: 2017.02.23
Page 27 of 85
REQUEST FOR DECISION (RFD)
1. Accept recommendation 2. Request more information, if questions arise in presentation, and request re-submission. 3. Reject recommendation
PREFERED STRATEGY:
Response 1.
IMPLICATIONS OF RECOMMENDATION:
GENERAL: See GM comments.
ORGANIZATIONAL: See GM comments.
FINANCIAL:
FOLLOW UP ACTION:
COMMUNICATION:
OTHER COMMENTS:
Submitted by: Juvy Ceniza, CPA Endorsed by:
Reviewed by: Pierre Breau, P.Eng Reviewers:
RFD 6.7 – 2018.11.07 | Beaver Municipal Solutions Revision: 4 RFD Date: 2017.02.23
Page 28 of 85 Page 29 of 85 Page 30 of 85
BEAVER MUNICIPAL SOLUTIONS
AGENDA PUBLIC ADVISORY COMMITTEE MEETING November 19, 2019 5:00 PM Beaver Municipal Solutions
1. Commencement
2. Additions/Deletions to the Agenda
2.1 Addition – 6.4 – Reports 2.2 Addition – 6.5 – Holden Rural Bin 2.3 Addition – 6.6 – Round Table Discussion
3. Approval of Minutes from the September 19, 2019 PAC Meeting:
4. Regular Reports (Consensus Agenda)
4.1 Follow Up Action List (FUAL)
5. Conferences/Training/Correspondence
5.1 Events Calendar
6. PAC Matters
6.1 FIO - Claystone Park and Administration Building 6.2 FIO – Ag Plastics Update 6.3 FIO – Information Sessions - Questions/Concerns 6.4 FIO – Reports 6.5 FIO – Holden Rural Bin 6.6 Round Table Discussion
7. Meeting Evaluation Form
7.1 Director Evaluation Form
8. Adjournment:
8.1 Motion for Adjournment
Next Meeting January 21, 2019 Beaver Municipal Solutions
AGENDA 2019.11.19 Beaver Municipal Solutions
Page 31 of 85
November 21, 2019
BMS Board of Directors
Attention: Brian Ducherer Harold Conquest Jason Ritchie Kevin Smook Mark Giebelhaus
Dear Board of Directors
RE: November 19, Public Advisory Committee Recommendations
At the November 19, 2019 Public Advisory Committee Meeting, the committee has requested that two motions be conveyed to the BMS Board of Directors for consideration. The motions carried are as follows:
19 017 That, BMS staff recommend to the Board at its next Regular Board Meeting, that the Phase 1 of the Landfill Architectural plan for Claystone Park, move forward with the option to endorse outside sponsorship.
19 018 That the PAC recommends to the Board that rural residents not currently receiving waste collection, be offered a waste bin at a reduced rate for one year to encourage them to use the program.
Please take this letter as a formal request and consider the Public Advisory Committee’s recommendations.
Yours truly,
Mark Svenson – PAC Chairman
PO Box 322 Ryley, AB T0B 4A0 TF 1.855.221.2038 P 780.663.2038 F 780.663.2006 www.beavermunicipal.com Page 32 of 85 Moved by Hrabec that the draft agreements be amended to indicate a Public at Large professional board on day 1 of operations of the MCC (i.e. no transitional board). Recorded vote requested by Hrabec. Carried unanimously.
Moved by Hrabec that Beaver County staff and BMS staff work together to ensure consistent posting of relevant information (Business Plan, MNP Due Diligence Report, Draft agreements such as Unanimous Shareholders Agreement, Limited Partnership Agreement, Operating Service Agreement, all Public Presentations) on County and BMS publications, webpages and social media. Carried.
Moved by Hrabec that Beaver County Council request an agreement or a strategy with BMS, or an amendment to the Business Plan, to deal with cumulative affects/impacts and measurable solutions (to be determined after the public hearing) and to deal with adjacent landowners concerns. Carried.
Moved by Smook that Council recommend to the MCC that a public hearing of all five shareholders be held in Ryley, rather than each shareholder (municipality) holding separate Public Hearings. Carried
Moved by Smook that the new MCC Board review the Salary and Bonus Structure Policy. Recorded vote was requested by Cr. Bruce: For Against Cr. Smook Cr. Bruce Cr. Kallal Cr. Hrabec Cr. Pederson
Page 33 of 85 FOR INFORMATION ONLY (FIO)
SUBJECT:
BMS-2019-002 – New Administrative Office Building
Project Summary:
The subject land is located alongside of Highway 854 (RR173). The location of the building near the landfill site is to ensure that there is a major administrative function for BMS near its main facility in Beaver County and will be built in such a way to enable future expansion and adapt for potential community uses.
BMS has granted award to an architectural landscape company to develop recreational access in the section of land at NW10 and NE10, therefore the design of the new office building must accommodate the project that is being developed.
The purpose of the building is to provide professional office space for BMS general and administrative services including engineering services. BMS’ current office building was constructed in 2011 and also provides space for the BMS truck garage and maintenance departments. The current office space will be used as a training facility for BMS Staff, as it will be better equipped to accommodate large groups, unlike the current Training Centre.
Recent Progress:
November 18, 2019 a Request for Proposals (RFP) for a Construction Manager was posted to Alberta Purchasing Connection. A mandatory site meeting will be held the week of November 25- 29, 2019 and the RFP will close December 4, 2019. Integrating the Construction Manager (ie. Contractor) early in the process allows for real time costing, assessment of risk on LEED items, prevention of large Change Orders during construction, and speeds up the construction timeline.
At this board meeting, Barry Architecture and Associates (BAA) will be presenting the proposed building layout and a conceptual rendering of the New Administrative Office Building.
FIO 6.1 – 2019.11.28| Beaver Municipal Solutions
Revision 2 FIO Date: 2015.12.21
Page 34 of 85 Beaver Municipal Solutions Administration Building November 28, 2019 5:00 pm
Page 35 of 85 Agenda
» Who are we? » Update » Site » Floor Plan » 3D Views » LEED » Next Steps » Questions
Page 36 of 85 Who Are We?
Page 37 of 85 Update
Page 38 of 85 Site
SITE PLAN BMS - ADMIN BUILDING
11 - 28 - 2019 X
LEGEND X
R
BUILDING A X
N
G
GRASS E
R
D X
EXISTING ASPHALT 1
7
3 NEW ASPHALT X
CONCRETE 63.7 m SETBACK FROM SECONDARY HIGHWAY X NO-BUILD ZONE 24 STAFF STALLS
X EXISTING FENCE NEW BUILDING X X EXISTING POWER POLE
H
W
SETBACK LINE Y EXISTING FENCE
X
8
5
PROPERTY LINE 4
X
X X
R
A X
N
G X
E
R
D
5 VISITOR STALLS X
1
7 3 BARRIER-FREE
3 X
X STALLS
X X
LANE LANE
H
W
Y
X
8
5
4
X 91.5 m BUILDING SETBACK ON INTERNAL LANE
X EXISTING GATE 0m 5m 15m 20m
X Google Maps - 2018 Satellite Photo 1:400 © BERRY ARCHITECTURE + ASSOCIATES + ARCHITECTURE BERRY ©
Page 39 of 85 Site
View from Range Road 173
Page 40 of 85
Site X
LEGEND X
R
A X BUILDING N
G
E
GRASS R
D X
1
7
EXISTING ASPHALT 3 X NEW ASPHALT 63.7 m SETBACK FROM
SECONDARY HIGHWAY X CONCRETE 28 STAFF STALLS
NO-BUILD ZONE NEW BUILDING X X
X EXISTING FENCE H
W
Y
EXISTING FENCE X
8
EXISTING POWER POLE 5
4
SETBACK LINE X
PROPERTY LINE X X
R
A X
N
G X
E
R
D X
5 VISITOR STALLS
1
7
X 3 X
X 3 BARRIER-FREE STALLS X
LANE LANE
H
W
Y
X
8
5
4
X 91.5 m BUILDING SETBACK ON INTERNAL LANE
X EXISTING GATE 0m 5m 15m 20m
X
SITE PLAN BMS - ADMIN BUILDING 11 - 28 - 2019 © BERRY ARCHITECTURE + ASSOCIATES + ARCHITECTURE BERRY ©
Page 41 of 85 Floor Plan BUILDING SUPPORT FUTURE EXPANSION CONNECTION SPACES GROUPED TOGETHER
MEN OPTION FOR MOVEABLE TABLES TO CREATE A FLEXIBLE SPACE GENERAL MECHANICAL KITCHEN STORAGE LADIES
IT JAN BARRIER MEETING ROOM SPARE OFFICE FOR FREE FUTURE GROWTH
HR MUD ROOM DEPARTMENT MEETING ROOM MEETING ROOM SPARE OFFICE MUD ROOM IN PROXIMITY TO PARKING AND HR ENGINEERING DEPARTMENT MANAGER MANAGER OFFICES COPY/PRINT ADJACENT TO OPERATIONS GENERAL ROOM BUSINESS CORRESPONDING MANAGER MANAGER DEVELOPMENT DEPARTMENTS MANAGER
FINANCE MANAGER ENGINEERING DEPARTMENT
MEETING ROOM COPY/PRINT ROOM WITH ACCESS FROM BOTH SIDES RECEPTION FOR EFFICIENT FLOW PROGRAM + FINANCE ENTRY COMMUNICATION DEPARTMENT DEPARTMENT
DEPARTMENT OFFICES WITH LOTS OF DEPARTMENT CENTRAL ENTRY NATURAL LIGHT OFFICES WITH LOTS OF NATURAL LIGHT
FLOOR PLAN 0m 1m 3m 5m BMS - ADMIN BUILDING 11 - 28 - 2019 © BERRY ARCHITECTURE + ASSOCIATES + ARCHITECTURE BERRY ©
Page 42 of 85 Floor Plan
OFFICE OFFICE OFFICE OFFICE
EXPANSION SCHEMATIC BMS - ADMIN BUILDING 11 - 28 - 2019 STORAGE
0m 1m 3m 5m FUTURE EXPANSION POSSIBLE LAYOUT 144 sq.m. (1,445 sq.ft.)
GROUP OFFICES
MEETING ROOM
MEN
GENERAL MECHANICAL KITCHEN STORAGE LADIES
IT JAN BARRIER MEETING ROOM FREE
HR MUD ROOM DEPARTMENT MEETING ROOM MEETING ROOM
SPARE OFFICE HR MANAGER COPY/PRINT OPERATIONS ROOM GENERAL BUSINESS MANAGER MANAGER DEVELOPMENT MANAGER
FINANCE MANAGER ENGINEERING DEPARTMENT
MEETING ROOM
RECEPTION PROGRAM + FINANCE ENTRY COMMUNICATION DEPARTMENT DEPARTMENT © BERRY ARCHITECTURE + ASSOCIATES + ARCHITECTURE BERRY ©
Page 43 of 85 Exterior Perspective
STUCCO SOLAR PANELS + SOLARTUBES STANDING SEAM METAL ROOFING STONE
HORIZONTAL METAL CLADDING
METAL CLADDING WOOD GRAIN
Page 44 of 85 Exterior Perspective
SOLAR PANELS + SOLARTUBES
STONE STANDING SEAM METAL ROOFING PRE FINISHED METAL FLASHING
HORIZONTAL METAL CLADDING
METAL CLADDING WOOD GRAIN
STUCCO
Page 45 of 85 Exterior Perspective
STONE
PRE FINISHED METAL FLASHING
SOLAR PANELS + SOLARTUBES
STANDING SEAM METAL ROOFING
HORIZONTAL METAL CLADDING
METAL CLADDING WOOD GRAIN
STUCCO
Page 46 of 85 LEED Credit Considerations
Minimum Target: LEED Silver Goal: LEED Gold
Sustainable Sites Rainwater Management Light Pollution Reduction
Water Efficiency Indoor and Outdoor Water Use Reduction
Energy and Atmosphere Enhanced Commissioning Optimize Energy Performance Renewable Energy Production
Indoor Environmental Quality Low-Emitting Materials Thermal Comfort Daylight and Quality Views Acoustic Performance
Innovation Green Building Education
Page 47 of 85 Next Steps
Page 48 of 85 Questions?
Page 49 of 85 Thank you for coming!
Page 50 of 85
REQUEST FOR DECISION (RFD)
SUBJECT:
Quarterly HR/Payroll Report IIII
RECOMMENDATION:
That the Board approve the Quarterly HR/Payroll Report IIII, as presented.
HRPM COMMENTS:
Please refer to the report that follows. 1. Human Resources Update to November 15, 2019
RECOMMENDATION Report/Document: Attached X Available Nil
KEY ISSUE(S)/CONCEPTS DEFINED: N/A
RELEVANT POLICIES: BRD-002
STRATEGIC RELEVANCE: Promote best-in-class employee relations and promote corporate transparency.
DESIRED OUTCOME(S): Approval of the recommendation as presented.
RESPONSE OPTIONS:
1. Accept recommendation 2. Request more information, if questions arise in presentation, and request re-submission. 3. Reject recommendation
PREFERED STRATEGY:
RFD 6.2 – 2019.11.28 | Beaver Municipal Solutions Revision 4 RFD Date: 2016.08.03
Page 51 of 85
REQUEST FOR DECISION (RFD)
Response 1.
IMPLICATIONS OF RECOMMENDATION:
GENERAL:
ORGANIZATIONAL:
FINANCIAL:
FOLLOW UP ACTION:
COMMUNICATION:
OTHER COMMENTS:
Submitted by: Jeanie DeGrande, CPHR Endorsed by:
Reviewed by: Pierre Breau, P. Eng. Reviewers:
RFD 6.2 – 2019.11.28 | Beaver Municipal Solutions Revision 4 RFD Date: 2016.08.03
Page 52 of 85
Human Resources Quarterly Report IIII 2019 To November 15th
Page 53 of 85 Human Resources/Payroll Update To November 15th
HR Highlights
1. Benefits – renewed benefits on June 1st. Went to ASO for Dental as of August 1, 2019 - Cost savings for BMS
2. Training - Dealing with Difficult People – Bullying and Harassment - Managers, Supervisors, Front Line Staff July 8th
3. Employee Golf Tourney - September 8th – 21 golfers. BMS provided door and hole prizes for all golfers. Soggy and chilly day
4. Orientation – the HR team has completed the roll out of the new process. New gates facilitate ensuring people are checking in at the satellite office.
5. Employee Survey – Completed September 15th. Presented to Board November 7th
6. Employee Staff Meetings - November 27th & 28th - upcoming
7. Upcoming - Christmas Party - At Bruce Hotel November 30, 2019 – seating for 100, 104 RSVP. Employee door prizes – ATB Points redeemed
8. Staff Changes to Nov 15th
a) Added:
Landfill Operator (3), Program Assistant
b) Departed:
Program Assistant - terminated Landfill Operator – terminated Landfill Operator - resignation Hauling Operator – lay off Transfer Station Attendant - terminated
c) Staff Changes Transfer Station Attendant > Lead Hand Transfer Station Attendant Contract > permanent full time Hauling Operator Contract > permanent full time
d) On-Leave Landfill Labourer – on Maternity Leave Returned Oct 29th
1
Page 54 of 85 Deliverables for Next Quarter
Over the next three months the HR/P Team has a number of items to focus on, notably: Review Hauling hours, structure, schedules to increase efficiencies within the group Set goals for 2020 – including training plan and metrics
Health/Safety/Environment Update
January 1 – November 15th, 2019
HSE STATS
1. AIP HSE Metrics YTD
Target Up to November 15 2019 Average Workdays lost 0.55 0.015 per employee Near Misses 198 annual 185
2
Page 55 of 85 2. Incident Reporting
2019 up to November 15 Incidents 110 – TOTAL – chart attached Equipment/Property Damage 3 over $10K Lost Time Incidents (WCB) 1
Days Lost (WCB) 1
3. WCB Update
a) TS Attendant – 2017 ladder fall incident – WCB Return to Work program unsuccessful. WCB working through reemployment training. BMS negotiated a severance package.
b) TS Attendant – 2019 – shoulder injury – had repair surgery in July, at work doing modified duties along with rehab – one lost time day (surgery day).
c) Administrative Assistant – 2019 - right wrist repetitive strain injury – at work with modified work program. No lost time.
3
Page 56 of 85 Is i
REQUEST FOR DECISION (RFD)
SUBJECT:
Wastewater Mobile Treatment Unit
RECOMMENDATION:
That that the Board request Municipal Affairs to release Oreco model 1318 PR0H20 mobile wastewater treatment unit serial number 103-2015 for sale .
GM COMMENTS:
The Oreco model PR0H20 mobile wastewater treatment unit was purchased for $1,460,000 in 2014 . (motion 14-037)
It’s purpose was three-fold :
1. To pursue income opportunities related to treating wastewaters produced by oil and gas drilling and processing operations ; 2. To pursue income opportunities related to treating standing waters in municipal wastewater lagoons ; 3. To provide wastewater treatment for landfill leachate and landfill sediment pond standing water .
A period of staff training and pilot testing occurred over 2014 to 2015 in order to prepare the unit for use .
In 2015, the final capital cost of the unit was $1,803,338.10 including additional accessory equipment pieces and controls . The cost for inventoried chemicals is $105,099.76 .
The timing of the acquisition of the unit , and the period of training and testing , unfortunately coincided with the economic downturn in the western Canadian oil and gas industry . Drilling and processing operations in the industry began to decline , and since producers were not being required by government to recycle wastewaters used for hydraulic fracturing operations , income opportunities failed to materialize .
This was not only true for our unit , but also for other similar units operated by other companies .
Lagoon treatment opportunities were pursued with Beaver County , but after two contracts in 2016 and 2017, it was decided that additional investment would be required to improve the unit’s production for lagoon , and that the potential sales forecast at the time did not justify additional capital funds to be used for this business .
In 2017 , a contract was secured with Clean Industrial Technologies to provide wastewater treatment services for a gas processing plant in Fox Creek . This is the last contract work for the unit .
RFD 6.4 – 2019.11.28 | Beaver Municipal Solutions Revision: 4 RFD Date: 2017.02.23
Page 57 of 85 Is i
REQUEST FOR DECISION (RFD)
Revenue summary:
2015 $66,398.45 2016 $71,262.87 2017 $33,033.64 $170,694.96
The current net book value of the unit is $935,868.74 .
Our auditors have advised that unit may be classified as a non-productive asset , and written off in the 2019 fiscal year .
At this time , we are in discussions with a company that operates Oreco brand and other similar units , Aquapure Technologies , regarding the use of our unit for contract work outside of Canada . Aquapure’s units currently operate in the U.S. , since opportunities are very limited in the Canadian market due to the current state of the western Canadian oil and gas industry . Aquapure has indicated that there are wastewater treatment opportunities , specifically at solid waste landfills , in Central and South America .
There is more development required for a proposal , however , it is possible that our unit could be either rented , or sold , for this work .
Because , the work could be long-term , there is the possibility of a sale of the unit , and therefore a request to Municipal Affairs to release the unit is pro-active .
We will keep the Board apprised of our work on this project , and return with a report on any recommendations on contract work , if work is close to being secured .
RECOMMENDATION Report/Document: Attached Available Nil X
KEY ISSUE(S)/CONCEPTS DEFINED: See GM comments.
RELEVANT POLICIES: Strategic Plan
STRATEGIC RELEVANCE: Compliance to generally accepted accounting principles.
DESIRED OUTCOME(S): Approval of the recommendation as presented.
RESPONSE OPTIONS:
1. Accept recommendation
RFD 6.4 – 2019.11.28 | Beaver Municipal Solutions Revision: 4 RFD Date: 2017.02.23
Page 58 of 85 Is i
REQUEST FOR DECISION (RFD)
2. Request more information, if questions arise in presentation, and request re-submission. 3. Reject recommendation
PREFERED STRATEGY:
Response 1.
IMPLICATIONS OF RECOMMENDATION:
GENERAL: See GM comments.
ORGANIZATIONAL: See GM comments.
FINANCIAL: Potential sale to cover current net book value of asset
FOLLOW UP ACTION: Report to Board
COMMUNICATION: RFD
OTHER COMMENTS:
Submitted by: Endorsed by:
Reviewed by: Pierre Breau, P.Eng Reviewers:
RFD 6.4 – 2019.11.28 | Beaver Municipal Solutions Revision: 4 RFD Date: 2017.02.23
Page 59 of 85
FOR INFORMATION ONLY (FIO)
SUBJECT:
Willow Project Update
Project Summary:
This is a preliminary report on the willow plantation project located at S4-51-17-W4M (B. and L. Convey-Lyons) located approximately 3 kilometres north of the Ryley landfill. A plan of the parcel’s willow planting layout is attached.
A more detailed presentation will be made at the November 28, 2019 Board meeting.
The willow plantation project started as a biosolids land application project in 2013. Approximately 9,540 tonnes of City of Edmonton wastewater treated biosolids were applied to two parcels, S4- 51-17-W4M, and NW21-50-17-W4M.
The former was planted with grasses and hybrid willows (below), and the second was planted with grasses and grain crops. (Wheat) The biosolids land application project was permitted by Alberta Environment under its regulations. Beaver County approved a development permit for the willow plantation.
The application was completed December 16, 2013. The biosolids application was designed to indicate that increased application tonnages to solnetzic (salt-laden) soils could improve fertility of the soils for agricultural purposes with no detrimental effects. The planting of the willows was to demonstrate use of a biomass crop for both alternative energy use and for compostable waste processing bulk amendments. As a pilot project, experimental varieties were employed to determine applicability for further plantation development. Subsequent soil and water quality reports have indicated no detrimental effects to the land, and that the increased biosolids tonnage applications were acceptable in improving the tilth and fertility of the land. There have been no further biosolids application on either parcel since.
Hybrid willow plantings, approximately 400,000 stems of 21 varieties, were installed over 28 hectares (69 acres) in 2014 on S4-51-17-W4M. Maintenance of the plantation, including coppicing in 2016 to improve yield, has continued on the parcel, with the owner compensated with land rental fees. Harvesting of the willow plantation occurred in March 2019. Approximately 60 tonnes of the willow fibre was transported, at cost, for use at the Camrose County administration building biomass boiler. The remaining 40 tonnes of fibre was brought to the landfill for use as alternative cover. These tonnages are green weight. Assuming 30% moisture content, dry weight yield is estimated for the pilot plantation at approximately 70 tonnes.
FIO 6.4 – 2019.11.28 | Beaver Municipal Solutions
Revision 2 FIO Date: 2015.12.21
Page 60 of 85
FOR INFORMATION ONLY (FIO)
The plantation was experimental, and some varieties provided poor yields. A full survival report is expected shortly. Dry tonne yields for established willow plantations are expected to yield up to 9 bone dry tonnes per hectare. (For 28 ha, this would be 252 tonnes) A review of the survival report together with forecast yield estimates will allow analysis of use of the future fibre for incorporation into future composting projects. Municipal composting facilities typically require 1 tonne of dry fibre to 3 – 4 tonnes of source-separated organics.
FIO 6.4 – 2019.11.28 | Beaver Municipal Solutions
Revision 2 FIO Date: 2015.12.21
Page 61 of 85 BEAVER MUNICIPAL SOLUTIONS BIOSOLIDS COPPICE WILLOW & MARGINAL AGRICULTURAL LAND IMPROVEMENT JUNE 2016 F INAL REPORT PAGE 52
Figure 5: Willow sampling points for S4-51-17-W4M.
Page 62 of 85
It is difficult to understand what happened to the plantation between spring 2017, when it was thriving on ~70% of the area, to now, when only ~15% seems to be worth saving. Lack of moisture, combined with a site with a hardpan near the soil surface, could have been enough to push many willows to mortality. With a more open canopy, weed competition also became an issue. Cattle browsing probably compounded the problem this summer.
Recommendations (& Options 1 to 4):
It would be best to delay willow planting until 2021: Replanting of the site with a temporary cover crop would be recommended to prevent weed proliferation and mitigate the risk of soil erosion. In 2020, we will have very limited suitable whip material; however, in 2021 we should have ample material, including Preble, Otisco, Tully and Swedish varieties. This delay will allow Bionera to have better resources dedicated to this project.
If given enough notice, I suspect that Brian Lyons might be interested in doing the site sanitation, disking, and establishment of the cover crop.
Here are the options to consider for 2021:
1. Replant the bulk of the site with willows: 55.4 ac to plant, 9.8 ac to keep a. Do a sanitation spray in areas that cannot shade out weeds b. Do a deep tillage, followed by a finishing disk treatment c. Replant at higher density (~16,000 stems/ha vs 14,000 stems/ha) d. Contract should include inter-row weed maintenance and fill planting to ensure success over time. e. Oversight (field visits every 2 weeks) to review plantation health should also be included. 2. Replant West side only, plant cover crop on East side: 18.3 ac to plant, 7 ac to keep a. Smaller area & cost b. West side would require some intense deep tillage and perhaps soil amendment over the biosolid pad area, as it is poor and compacted 3. Replant East side only, plant cover crop on West side: 37.1 ac to plant, 2.8 ac to keep a. Larger area & cost than West, but less than entire area b. East side looked great from 2015-2017 (except for very SE: salts) 4. Abandon this site and find a better field, with better soil structure and nutrients
Please feel free to contact me to discuss the above options or to propose additional suggestions.
Regards,
MML
Page 63 of 85
FOR INFORMATION ONLY (FIO)
SUBJECT:
BMS-2019-017 – GPS System Functionality Report
Project Summary:
BMS has implemented a GPS tracking system as part of improving efficiency and productivity of our fleet as well as a requirement for the hauling contract with the City of Edmonton.
The system that BMS purchased is PosiTrace GPS. This system is capable of numerous functions but the ones BMS was most interested in was real-time location tracking, speeding, idling times and efficiency of loading times at customer sites, and unloading times at the landfill. Some other functions that have been found to be useful for BMS is fuel consumption, bin drop off locations, improving efficiency of waste collections within Beaver County and tracking of onsite equipment.
Since implementing the PosiTrace GPS in August 2019, fuel efficiency of the individual units has been tracked and shows an overall decrease in litres of fuel per kilometre travelled. We have been reviewing and there are a few differences in the units contributing to the range of fuel efficiency including usage, make of vehicle and make of engine. In the below chart, the differences are shown here as well the changes since implementation:
August 2019 September 2019 October 2019 Hauling Equipment Truck/Engine Daily Ave L/km Daily Ave L/km Daily Ave L/km 201 W-DET-DEF 0.60 0.63 0.60 202 W-DET-DEF 0.67 0.67 0.67 210 W-CUM-DEF 0.58 0.57 0.57 211 W-CUM-DEF 0.57 0.57 0.57 212 W-CUM-DEF 0.58 0.58 0.58 290 W-CAT 0.64 0.62 0.62 291 W-CAT 0.68 0.68 0.67 292 Pro-CUM 0.67 0.67 0.67 293 Pro-CUM 0.65 0.65 0.65 295 I99-CUM 0.65 0.65 0.64 296 Pete-CUM 0.66 0.66 0.66 OVERALL AVERAGE: 0.632 0.632 0.627
Increase over previous month Decrease over previous month
FIO 6.5 – 2019.11.28 | Beaver Municipal Solutions
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FOR INFORMATION ONLY (FIO)
August 2019 September 2019 October 2019 Collections Equipment Truck Type Daily Ave L/km Daily Ave L/km Daily Ave L/km 206 Highway Tractor 0.76 0.76 0.76 207 Pakmor 0.76 0.76 0.75 208 Pakmor 0.64 0.62 0.62 325 Pakmor 0.67 0.66 0.65 209 Multilift 0.61 0.60 0.61 279 Multilift 0.63 0.76 0.62 309 Pickup 0.21 0.20 0.22 326 Pickup 0.23 0.21 0.20 OVERALL AVERAGE: 0.564 0.571 0.554
Increase over previous month Decrease over previous month
The loads and loading times at the different customer sites is being reviewed for efficiency and issues that have occurred. This is completed by running a Geofence Report from the PosiTrace software and then using excel to compile the data. The summary of these reports are shown here:
Units: Loads City of Edmonton Waste Connections KBL or Minutes Clover Bar Transfer Station Transfer Station Month August September October August September October August September October Number of 303 120 364 32 59 31 66 100 60 Loads Average Loading Time 33 35 36 68 65 78 64 66 52 (Minutes) Minimum 18 18 13 39 39 51 25 24 24 Maximum 95 126 329 94 117 146 131 173 107 Median 29 29 31 64 62 63 57 59 51
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Units: Loads Parkland Vermilion Beaver County or Minutes Transfer Station Transfer Station Transfer Stations Month August September October August September October August September October Number of 26 26 25 25 23 24 16 25 27 Loads Average Loading Time 30 37 23 56 67 69 50 52 42 (Minutes) Minimum 13 15 8 45 42 49 21 17 17 Maximum 52 89 49 78 96 122 180 154 140 Median 25 31 20 53 69 67 35 33 29
City of Edmonton Waste Connections KBL Transfer Station Clover Bar Transfer Station 120 400 100 100 80 300 80 60 60 200 40 40 20 100 20 0 0 0 Number of Average Number of Average Loading Number of Average Loading Loads Loading Time Loads Time (Minutes) Loads Time (Minutes) (Minutes)
August September October August September October August September October
Parkland Transfer Vermilion Transfer Beaver County Station Station Transfer Stations 40 80 60 50 30 60 40 20 40 30 20 10 20 10 0 0 0 Number of Average Loading Number of Average Loading Number of Average Loading Loads Time (Minutes) Loads Time (Minutes) Loads Time (Minutes)
August September October August September October August September October
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Revision 2 FIO Date: 2015.12.21
Page 66 of 85
BOARD DIRECTION REQUEST (BDR)
SUBJECT:
Holden Rural Bin Collection Program at Country Bottle Depot
KEY INFORMATION:
The Village of Holden contracts Beaver Municipal Solutions to have weekly waste bin pick up and disposal for their tax-payers. Complaints were received regarding some of these bins, dedicated for Village resident use, being used by rural residents living outside the Village. Outside use sometimes resulted in the bins being full of waste in between scheduled pick ups, which sometimes lead to additional costs for extra pick ups or public litter issues in the Village when bins were overflowing. The outside use had increased significantly with the closure of the Commission’s Holden area transfer station in 2011. County residents were able to take their household waste to the landfill in Ryley or any of the other four transfer stations free of charge. Alternatively they could contract directly with the Commission for a monthly waste bin pick up and disposal service at a cost of $30 per month, plus one-time placement costs.
RELEVANT OBSERVATIONS:
In 2015, a mobile transfer station service was piloted to provide rural residents living near Holden and the Hamlet of Bruce (which was also subject to a transfer station closure in 2011) with free waste disposal service. This initiative was ineffective. In addition, additional bins had been placed at the Beaver County Seed Cleaning Plant in Holden to provide more capacity for rural resident use, but this too was ineffective and the bins removed.
On June 1, 2016, a 40 yard rural waste collection bin was placed at the Country Bottle Depot in Holden for use by rural residents. Since implementation of this program, Beaver Municipal Solutions has tipped the 40 yard bin 25 times. A total of 46.95 tonnes of waste was collected since the beginning. This indicates that rural residents have been using this bin. A breakdown of the collection is as follows:
2016 – 4 tips for a total of 8.010 tonnes 2017 – 4 tips for a total of 12.23 tonnes 2018 – 4 tips for a total of 6.860 tonnes 2019 – 13 tips for a total of 19.85.870 tonnes
The lost revenue or potential cost to Beaver Municipal Solutions over this forty-one month period is for the servicing of the bin:
$300 per month for bin potential rental for 41 months ($12,300) $220 per tip (trucking) times 25 tips ($5500) No charge for tonnage (Beaver County residents) BDR 6.6– 2019.11.28| Beaver Municipal Solutions Revision 3 BDR Date: 2015.12.17
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This translates to $134.15 per month. Beaver Municipal Solutions also covered the one-time cost for signage ($2374).
STRATEGIC QUESTIONS:
In October 2019, the Country Bottle Depot relocated into the Village of Holden and the current site is no longer available for the rural waste bin. Staff met with Holden Administration and discussed a number of options:
1. Place a 40 yard bin where the current paper and cardboard bins are located.
Holden Administration is not in favor of this option as there is limited space in this location.
2. Place a 40 yard bin at the location of the former recycling depot (requires owner permission).
This location is not feasible as the ground is too soft for placement of a 40 yard gin, waste tonnage and trucks. Also, although it is one of the main entrances into the Village making it easy access for rural residents, it the site is not manned, it can become an esthetic concern.
3. Place a 40 yard bin on Crop Management Network Inc. site (requires owner permission).
In discussion with the manager at Crop Management Network Inc., he indicated that with the amount of truck traffic in his yard, for safety reasons, he did not want residents walking around his site to dispose of their garbage.
4. Place three 4 yard bins in a group designated for rural residents on the east end of the Village.
This option consists of placing additional 4 yard bins to accommodate rural usage. South of 50 Street, there are three 4 yard waste collection bins that are typically the most used by rural residents. By placing a grouping of three 4 yard bins north of 50 Street and possibly placing a “Rural Bin” sign beside them, we can separate them from the urban bins which are currently paid for by the Village. We do realize urban residents may use these rural bins.
If going this route, responsibility for the cost of these bins would need to be determined. Would it be the responsibility of the Village of Holden, Beaver County or Beaver Municipal Solutions?
5. Do nothing and monitor the situation.
Although appearing to be the simplest solution, this just puts the Village back to the situation from 2016. Recent reports from Village residents indicates that waste is once again being piled up on the ground beside full bins. BDR 6.6– 2019.11.28| Beaver Municipal Solutions Revision 3 BDR Date: 2015.12.17
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BOARD DIRECTION REQUEST (BDR)
The current status of this program is that the 40 yard bin has been removed from the previous location at the bottle depot. The signs at the bottle depot and along the roadways have yet to be removed.
Staff have reviewed all the options and also discussed them with the Public Advisory Committee. Through discussion with this Committee, it was their recommendation that Beaver County rural residents be encouraged to have a bin placed at their residential location. To entice rural County residents to do this, it was suggested that Beaver Municipal Solutions offer a one-year discounted waste collection rate of $25 per month (this is a $5/month savings from the current rate of $30), as most felt that once residents experience the convenience of the collection service, they would continue with the program the following year at the regular price. This suggestion would require Board approval. It does not however, address the existing state in the Village of Holden. To address the current situation, it was the PAC’s recommendation to place three additional 4 yd bins, without specific signage, at Beaver Municipal Solutions’ cost, since there is capacity to do so with little to no impact on the current collection schedule.
In summary, it comes down to the last two options– place extra 4 yard bins in the Village to alleviate the problem of outside rural use or do nothing and monitor the situation. If the former, there would be a cost for adding additional bins, and there would need to be a decision as to who would cover the costs to service these bins. If it is determined that Beaver Municipal Solutions would cover the cost, there is also the matter of equity. If three rural waste bins are placed within the municipality of Holden, will other member municipalities also want the same consideration? The towns of Viking and Tofield both have nearby transfer stations. Ryley is located near the landfill. This option is covering the previously removed transfer station near Holden.
Board direction to Administration is required for this program.
Choices:
1. Place additional 4 yard waste collection bins in the Village of Holden, with the cost to be borne by the Village of Holden. 2. Place additional 4 yard waste collection bins in the Village of Holden, with the cost to be borne by Beaver County. 3. Place additional 4 yard waste collection bins in the Village of Holden, with the cost to be borne by Beaver Municipal Solutions. 4. Do nothing and monitor the situation. 5. Other.
RECOMMENDATION:
Option 3, with no identifying signage
BDR 6.6– 2019.11.28| Beaver Municipal Solutions Revision 3 BDR Date: 2015.12.17
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BOARD DIRECTION REQUEST (BDR)
SUBJECT:
2020 Budget Draft
DEFINE THE TOPIC: Gather Board input on proposed 2020 Operating and Capital Budget with due consideration to 2019 public information sessions and MCC-related meetings.
KEY INFORMATION:
Overview - GM
The BMS Board approved a Strategic Plan in 2016 to go forward with a recommendation to the municipal members to create a municipal-controlled corporation (MCC) based on a transfer of the Commission’s assets . This would conform to legislation permitting municipalities to operate income seeking municipal businesses. The regional services commission model is not meant as an income business for municipalities.
A due diligence steering committee was created in 2017, and draft agreements have been created regarding the new MCC structure, named Claystone Waste Ltd.
The 2019 – 2023 business plan has been created with the creation of the MCC in mind.
The 2020 draft budget for operating and capital is aligned with the current strategic plan, and revenue and expense estimates have been planned to conform to the existing 2019 – 2023 plan.
The development of the MCC has been taken some time, however, and one member municipality has expressed concerns about the drafted MCC documents, with suggestions on changes which could delay the creation of the MCC.
The draft operating budget and capital program are to be presented to the Board assuming a MCC creation, but also sensitizing the Board on the risks to the plan, if the MCC creation is substantially delayed, or no longer pursued.
The operating budget draft for 2020, including 2019 year-end forecast, and impact on the 2019 – 2023 plan will be presented by Chief Financial Officer, Juvy Ceniza.
Operating Budget Draft 1 - CFO
In summary, the 2020 draft operating budget (Attachment 1) is as follows:
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BOARD DIRECTION REQUEST (BDR)
2020 Proposed Budget (in millions) Draft 1 Worst case Best Case SUMMARY: Revenue 24.88$ 22.16$ 27.10$ Operating Expenses 13.11$ 13.05$ 13.19$ Operating Income 11.77$ 9.12$ 13.91$ Amortization and Closure 5.83$ 5.48$ 6.29$ Net Income 5.95$ 3.64$ 7.62$
Revenue assumptions: 1. BMS’ largest customer will bring in the same MSW volume as 2019 at 390k tonnes. The renegotiated rates kick in full year in 2020 which guarantees the minimum volume at 200k tonnes at a 2-tiered rate. As such, the difference of 190k tonnes depends on the customer’s success in implementing its waste strategy. Customer’s success means lower volume sent to landfill.
This same customer will bring in diversion waste at BMS’ maximum acceptance level of 40k tonnes. Diversion waste is at a significantly lower price than MSW but does not come with carbon gas tax.
The new hauling contract takes effect full year as well. The revenues include transactions handled by subcontractor at $332k. As per contract, BMS cannot put a margin on subcontractor transactions. This new hauling contract also opens up the opportunity to haul within the customer’s different locations that is chargeable based on hours or distance. However, there is no reasonable basis to estimate the volume for 2020.
Total revenue for this single customer represent 52.8% of budget, with only 24% covered by minimum put or pay contract.
2. The other MSW contract customers are budgeted to bring in the same volume as 2019. Two of these contracts provide for a CPI increase, which is estimated at 1.3% as of Sept 2019 based on Government of Alberta’s publication https://economicdashboard.alberta.ca
Total revenues for these customers amount to $2.75M, 78.9% of which is guaranteed by contract.
The biggest of these 3 contracts is expiring end of 2020.
3. Waste bin revenue rates and municipal member collection rates budgeted to stay the same. Volume for both is budgeted at 2019 levels. Budgeted revenues for bins at $318k and collection fees at $198k representing 2.1% of total revenue.
4. Customer revenues not covered by long term contracts relatively cover $7.58M or 30.5% of total revenues. A significant amount of detail and market research have been done to budget these items but the probability of a repeat in 2020 is 50%. BMS will attempt to raise prices on
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BOARD DIRECTION REQUEST (BDR)
selected waste types at the risk of losing some customers but be able to cover increasing costs. A spreadsheet detailing volumes and rates will be presented in session.
MSW: A relatively new customer is budgeted to bring in waste and hauling revenues totaling $284k. This customer is not willing to commit volume to BMS.
Contaminated Soil: Please see below the actual revenues generated from this revenue stream since 2012 (no apparent trend).
Row Labels 2012 2013 2014 2015 2016 2017 2018 Contaminated Soil 4,045,150 2,009,228 8,393,146 3,426,420 3,176,373 3,533,658 1,889,723
Soil revenue is expected to hit at least $5.4M in 2019, mostly coming from the LRT project in Edmonton. The remaining amount on this customer’s PO is about $700k with 2 months remaining in 2019. As such, $550k is budgeted to carry over to 2020.
An additional $1.1M is budgeted for contaminated soil in 2020 bringing total budget for this waste type at $1.6M.
Special Waste: One of BMS’ biggest special waste customer is expecting a 15% drop in volume.
Construction and Demolition: Total budget for 2020 is $4.1M, 50% of which is coming from 1 customer. The volume for this customer is expected to double in 2020. Further, 31% of this waste stream is expected to come from a new customer that BMS had budgeted in 2019 but did not materialize. In 2020 though, no trucking revenue is expected from this customer.
Difficult waste: This waste stream picked up in 2019 and expected to continue in 2020 for $356k net of trucking fees.
5. Other revenues pertain to interest from marketable securities and emergency mechanical repairs to customer vehicles budgeted at $420k or 1.7% of total revenues.
6. Simulation assumptions on revenues as follows:
Worst Case: Should BMS’ biggest customer successfully decrease MSW volume by 15k tonnes, the C&D big customer only delivers half of expected volume and the new C&D customer does not materialize again, total revenues expected to be $2.7M lower.
Best Case: Should all assumptions on draft budget materialize and there is significant additional activity in contaminated soils and special waste, total revenues can hit $27.1M in 2020.
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BOARD DIRECTION REQUEST (BDR)
Expenses assumptions: 1. Labour costs continue to be BMS’ biggest expense totaling $7.9M. Existing manpower complement is retained (69 headcount – 18 admin, 24 landfill, 11 hauling, 4 collection, 6 mech and 6 transfer station), with the addition of 1 hauling driver and 1 employee for maternity coverage so total headcount for 2020 is 71. 1% COLA is recommended. Casual wages expected to be the same as 2019 to handle litter picking. Overtime costs at $294k, relatively the same as 2019 to handle operational issues that may arise. The AIP program is expected to be $648k considering a revenue record year for BMS. Statutory labour expenses (CPP, EI, WCB) in accordance with 2020 rates. No new benefits introduced despite record year. LAPP, group benefit and existing benefits budgeted in accordance to published 2020 rates and policy. Staff Training and Development budget is boosted by $35k to achieve operational excellence strategy.
2. Commission board expenses budget increased by $60k. Based on 2019 experience related to MCC (i.e., Steering Committee meetings, public info sessions, other meetings), gaps are evident.
To fix some of the gaps, a budget has been included for the following: - BMS Strategic Planning Session: It is prudent practice to hold this activity every 3 years. The plan created in 2016 is due for a change as well as adoption by all member municipalities. - MCC Steering Committee consultant(s) to create the MCC Board Selection Committee, its mandate, board selection criteria, board compensation, and training. - Consultant to create a land acquisition strategy acceptable to all members. - Consultant to review and recommend revisions to surplus distribution policy and good neighbor policy.
3. Business development budget kept at same level as 2019 but focus is shifted from generating new revenue streams to rebranding and increased communication to stakeholders in the community. As mentioned in the public info sessions, Claystone Waste Ltd. name change is intended to avoid confusion between BMS and Beaver County. Rebranding involves changing email addresses, stickers/logos on equipment, etc. Budget includes consulting to develop a communication strategy to clarify the name change only and that MCC has not been created. Budget also includes more open houses and participation in community activities to increase transparency.
4. Advertising, printing and supplies budget increased by $40k to fund increased communication activities (website, news articles and announcements on existing and additional types of media, etc.) to enhance communication and transparency.
5. IT systems budget increased by $31k primarily to maintain BMS’ network, websites, license renewals and small equipment replacements.
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6. Professional Services budget increased by $277k primarily on Engineering Services to handle landfill matters (sediment pond, fill plan, etc.) and willows. Budget for legal services has been reduced to remove the MCC component.
7. Rentals and leases budget increased by $16k to cover office space in Edmonton. The shared space or a new space depends on KPI results for the major hauling contract.
8. Contracted services budget increased by $689k primarily on subcontract trucking at $558k. The vector/bird control budget was likewise increased by $115k as operational necessity.
9. Supplies and materials budget decreased by $177k on account of lower fuel consumption and parts cost.
10. Repairs and maintenance budget increased by $132k mainly on leachate removal in case 2020 turns out to be another wet year.
11. Insurance budget kept at same level as 2019 as the budget is sufficient despite a number of claims.
12. Utilities budget relatively the same as 2019, with the new admin building expected late in the year.
13. Other expenses increased by $370k on account of carbon gas tax. Grants and donations budget remain the same. Bad debts expense increased by $12k due to changing customer profiles.
14. Amortization decreased by $342k as older equipment gets fully amortized.
Operating Income and Net Income budgeted results:
Both operating income and net income 2020 draft amounts are higher than 2019 budget amounts. Both are lower compared to 2019 forecast due to unexpected contaminated soil volume in 2019.
The focus in 2020 is operational excellence, i.e., effective and efficient ways of managing the landfill. This starts with training employees and putting resources to address issues on transparency, communication, mud, birds, public confusion, etc. Operational excellence is not achieved in 1 year.
Other major activities included in the budget pertains to a new strategic plan and working towards solving the gaps amongst members and between member(s) and BMS.
As compared to the 5-year plan amounts below, the increase in total revenues offsets significant increases in operating expense. Operational excellence costs money to set up and implement. Nonetheless, net income results relatively exceeds the plan levels.
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BOARD DIRECTION REQUEST (BDR)
MCC Business Plan v6 Amount Increase (decrease) from 5 yr plan Revenue $ 24,710,648.00 171,152.00 Operating Expense $ 12,320,967.00 785,883.97 Operating Income $ 12,389,681.00 (614,731.97) Net Income $ 5,873,911.00 73,687.35
Achievement of income amounts exposed to significant risk of non-achievement due to lack of contract commitments from customers. Worst case scenario the net income is estimated at $3.6M while under best case scenario, net income is estimated at $7.6M.
Should the draft net income be achieved in 2020, it is recommended to be put in a “rainy day fund” to cover the following: - Future capital equipment replacement - Continued subsidy of member collection activities past 2026 when the contract for BMS’ single largest customer expires - Future changes in strategy, say should the MCC be revisited again
Please consider the Government of Alberta experience when it relied heavily on oil sands revenues and diversification was not a priority. It did not save enough to cover periods of low oil prices and as such, need to make the difficult decisions in the last couple of years to cut services and/or increase taxes. BMS faces the risk associated with 1 single big customer with a waste strategy to get rid of garbage going to landfill and 1 major source of revenue. The main contract ends 2026 and the money will run out in the future. As such, it is recommended to preserve the money generated by operations to prolong subsidies.
Capital Budget Draft 1 – GM
Reference is made to two attachments: Capital Program 2019 – 2020 V.01; Capital Program 2019 – 2023 revised V.01.
Our 2019 capital year-end forecast is for an estimated capital expenditure of $9,563,111 in comparison to a budget of $13,284,014, for an estimated positive variance of $3,720,903.
The positive variance is explained by not completing the new administration building in 2019, not completing a budgeted land acquisition and cancelling purchase of hauling equipment for the construction and demolition waste customer project.
In 2020, proposed capital expenditures are $6,279,807 in comparison to the previous 2019 – 2023 business plan estimate of $6,695,000, a positive variance of $415,193.
However, it is noted that two business development projects related to the construction and demolition customer project are postponed from construction in 2020 to construction now estimated at 2022. The two projects are valued at $3,350,000.
None business development capital projects for 2020 are proposed at $6,067,100, in comparison to BDR 6.7 – 2019.11.28 Beaver Municipal Solutions Revision 3 BDR Date: 2015.12.17
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BOARD DIRECTION REQUEST (BDR) the previous plan estimate of $3, 150,000. The negative variance of $2,917,100 is explained by the construction of the new administration building taking place in 2020, and an increase in the land acquisition budget originally expected to be completed in 2019, and now budgeted in 2020.
In comparison the previous 2019 – 2023 capital program , to the revised program which considers the 2019 year-end outlook , and the proposed 2020 expenditures , overall 5 year capital program expenditures are expected to increase by $1,148,319 . The net increase is explained by the increase in the new administration building budget and the increase in the land acquisition budget.
Because of the better-than expected financial revenue results of 2019, the additional funds expected are available, and no debt issuance is forecast at this time.
No capping projects have been indicated in the revised 2019 – 2023 only because the funding for these projects come from the closure reserve, and expenditures on closure projects are matched by an equal reduction in incumbent closure liability.
RELEVANT OBSERVATIONS:
Despite public assurances that Beaver County wants the MCC, the absence of a motion is the reality. As such, the 2020 budget focuses on solving issues and not revenue generation. By legislation, the Commission is not supposed to make money so funds are allocated to solving operational issues. Customers wanting to go to BMS may be accepted, but revenue opportunities will not be aggressively pursued in the absence of a clear mandate from member municipalities about BMS’s future.
STRATEGIC QUESTIONS:
Will BMS be a business or public works entity?
ESSENTIAL QUESTION:
Is the pursuit of operational excellence at a cost acceptable?
Submitted by: ______Endorsed by:
BDR 6.7 – 2019.11.28 Beaver Municipal Solutions Revision 3 BDR Date: 2015.12.17
Page 76 of 85 Beaver Municipal Solutions Attachment 1 Income Statement Budget - Draft 1 From: 10/01/2019 To: 10/31/2019 Oct 2019 2019 2019 Annual 2020 Budget - Inc (Dec) $ vs % Change vs Inc (Dec) $ vs % Change vs 2020 Worst 2020 Best YTD Actual Forecast Budget Draft 1 2019 Budget 2019 Budget 2019 Forecast 2019 Forecast Case Case Revenue Landfill Disposal Contract 13,878,472 15,201,855 13,394,000 13,548,610 154,610 1.2% (1,653,245) -10.9% 13,151,998 13,548,610 Waste Bin Revenue 280,055 317,775 312,500 318,000 5,500 1.8% 225 0.1% 318,000 318,000 Trucking Revenue 1,972,265 2,325,769 2,485,800 2,815,026 329,226 13.2% 489,257 21.0% 2,815,026 2,815,026 Municipal Contracts 167,785 198,000 198,000 198,000 0 0.0% 0 0.0% 198,000 198,000 Landfill Disposal Revenue 8,657,651 9,655,381 5,831,000 7,582,150 1,751,150 30.0% (2,073,230) -21.5% 5,261,342 9,799,568 Waste Water Treatment 0 0 0 0 0 0.0% 0 0.0% 0 0 Other Revenue 407,276 422,664 218,700 420,014 201,314 92.1% (2,650) -0.6% 420,014 420,014 Total Revenue 25,363,503 28,121,443 22,440,000 24,881,800 2,441,800 10.9% (3,239,643) -11.5% 22,164,379 27,099,218 Expenses Salaries & Wages 4,905,996 5,808,741 6,065,000 6,456,100 391,100 6.4% 647,359 11.1% 6,456,100 6,456,100 Employee Benefits 1,052,387 1,262,900 1,276,500 1,280,250 3,750 0.3% 17,350 1.4% 1,280,250 1,280,250 Staff Training & Development 121,974 146,369 126,000 161,000 35,000 27.8% 14,631 10.0% 161,000 161,000 Commission Board Expenses 116,046 146,525 150,000 210,000 60,000 40.0% 63,475 43.3% 210,000 210,000 Business Development 65,305 78,365 130,000 130,000 0 0.0% 51,635 65.9% 130,000 130,000 Advert, Print & Office Supply 66,494 79,793 72,000 110,700 38,700 53.8% 30,907 38.7% 110,700 110,700 Telecommunications 46,090 56,808 67,000 64,800 (2,200) 0.0% 7,992 0.0% 64,800 64,800 IT Systems 183,673 290,407 200,000 231,300 31,300 15.7% (59,107) -20.4% 231,300 231,300 Professional Services 281,656 395,172 242,000 519,250 277,250 114.6% 124,078 31.4% 519,250 519,250 Rentals a & Leases 114,651 137,581 35,000 51,000 16,000 45.7% (86,581) -62.9% 51,000 51,000 Contracted Services 351,299 538,894 194,000 883,121 689,121 355.2% 344,227 63.9% 883,121 883,121 Supplies & Materials 1,839,496 2,208,590 2,028,000 1,851,094 (176,906) -8.7% (357,496) -16.2% 1,791,250 1,935,421 Repairs & Maintenance 119,725 174,812 43,000 174,800 131,800 306.5% (12) 0.0% 174,800 174,800 Insurance 86,213 103,455 117,500 117,500 0 0.0% 14,045 13.6% 117,500 117,500 Utilities 69,924 83,909 90,000 92,400 2,400 2.7% 8,491 10.1% 92,400 92,400 Other Expenses 636,890 1,000,392 404,000 773,536 369,536 91.5% (226,856) -22.7% 773,536 773,536 (Gain)/Loss (138,409) (138,409) 0 0 0 0.0% 138,409 -100.0% 0 0 Total Expenses 9,919,407 12,374,305 11,240,000 13,106,851 1,866,851 16.6% 732,546 5.9% 13,047,007 13,191,179
Operating Income 15,444,096 15,747,139 11,200,000 11,774,949 574,949 5.1% (3,972,190) -25.2% 9,117,372 13,908,040 Operating Margin 61% 56% 50% 47% 24% 123% 41% 51% Total Amortization and Closure 5,494,157 6,592,989 6,169,200 5,827,351 (341,849) -5.5% (765,638) -11.6% 5,482,291 6,289,822
Net Income 9,949,939 9,154,150 5,030,800 5,947,598 916,798 18.2% (3,206,552) -35.0% 3,635,081 7,618,218 Net Income Margin 39% 33% 22% 24% 16% 28% *** END OF REPORT ***
Page 77 of 85 Capital Program 2019 , 2020 V.01 November 28 , 2019
2020R1 (Nov. 2019 Project 2019 YEO (Nov. 2019) Projects Comments 2019/2020 Projects Variance 2020 Category Capital Project Type Budget 2019) Variance 2019 2020R Budget Budgets Revision(1) No land purchased 2019 . Land acquisition budget increased for Land $ 300,000 $ - $ 300,000 $ 700,000 2020 . -$ 700,000
Buildings Administration building construction postponed to 2020 New Admin Building $ 1,600,000 $ 214,323 $ 1,385,677 $ 2,200,000 . Budget increased . -$ 2,200,000
Public drop-off depot at landfill Transfer Sites Program $ 100,000 $ 25,649 $ 74,351 $ 100,000 $ 198,000 to be completed in 2020 . -$ 98,000 Equipment $ 323,500 $ 359,558 -$ 36,058 Grader purchase 2019 . $ 2,448,034 $ 2,497,510 -$ 49,476 Two compactors purchased 2019 . Skid steer purchase 2019 , in lieu of loader . Dozer purchase in Major Pieces $ 400,000 $ 90,686 $ 309,314 $ 1,000,000 $ 1,100,000 2020 . -$ 100,000 Highway Tractor Replacement $ - $ - $ 200,000 $ 200,000 Purchase 2020 . $ - Bins purchased 2019 , Collection Bin Growth distributed in 2020 . No new and Replacement $ 100,000 $ 99,670 $ 330 $ 100,000 $ - acquisitions required in 2020 . $ 100,000 Other Equipment and Allowances $ 50,000 $ 50,348 -$ 348 Pump replacement 2019 . $ 30,000 $ 25,220 $ 4,780 Light tower replacement 2019 . Net insurance replacements 2019 - light tower and pump . Purchase light towers , pick-up replacement , allowance small $ - $ 28,483 -$ 28,483 $ 200,000 $ 250,000 equipment and tools 2020 . -$ 50,000
Page 78 of 85 Capital Program 2019 , 2020 V.01 November 28 , 2019
2020R1 (Nov. 2019 Project 2019 YEO (Nov. 2019) Projects Comments 2019/2020 Projects Variance 2020 Category Capital Project Type Budget 2019) Variance 2019 2020R Budget Budgets Revision(1)
Infrastructure Land
Landfill Cell 6 $ 4,601,379 $ 4,374,120 $ 227,259 $ - Cell 6 complete in 2019 . $ -
Monitoring well budget Monitoring Well decreased based on Improvements $ 50,000 $ 5,513 $ 44,487 $ 50,000 $ 25,000 requirements $ 25,000 $ 15,000 $ 77,193 -$ 62,193 Paving from 2018 completed .
$ 400,000 $ 474,946 -$ 74,946 Paving in 2019 completed .
Leachate access , cell 2 , design $ 100,000 $ 50,700 $ 49,300 in 2019 . Claystone Park design in 2019 . Infrastructure in 2020 : paving $612,600 , cell leachate access construction $150,000 , site signage $70,000 , security fencing and cameras phase 2 Site and Grounds $400,000 , power to leachate Improvements $ 100,000 $ 46,418 $ 53,582 $ 500,000 $ 1,257,600 pumps cells 7 and 8 , $25,000 . -$ 757,600 Design completed for Water Act alteration permit application in 2019 . Final sediment pond Sediment Pond design in 2020 for construction Construction $ 111,871 $ 145,827 -$ 33,956 $ 136,500 in 2021 . -$ 136,500
Page 79 of 85 Capital Program 2019 , 2020 V.01 November 28 , 2019
2020R1 (Nov. 2019 Project 2019 YEO (Nov. 2019) Projects Comments 2019/2020 Projects Variance 2020 Category Capital Project Type Budget 2019) Variance 2019 2020R Budget Budgets Revision(1)
Completed in 2019 . Future Land Cell 3 capping & capping projects funded through construction services $ 307,317 $ 316,161 -$ 8,844 $ - closure funded . $ - Completed in 2019 . Future Assigned Benchmark capping projects funded through Verification $ 20,000 $ 9,982 $ 10,018 $ - closure funded . $ - Study completed in 2019 . Gas system postponed until completion of fill plan 2030 review and negotiations with AB Landfill Gas Feasibility government re: gas calculation Study $ 100,000 $ 83,279 $ 16,721 $ 1,000,000 $ - assumptions . $ 1,000,000 Subtotal $ 11,157,101 $ 8,975,585 $ 2,181,516 $ 3,150,000 $ 6,067,100 -$ 2,917,100 Related Labour (3% est.) $ 334,713 $ 269,268 $ 65,445 $ 94,500 $ 182,013 -$ 87,513 Savings in 2019 carries to 2020 but net increase in 2020 non-BD projects . ($757,652) Increase due to increased cost for Subtotal $ 11,491,814 $ 9,244,853 $ 2,246,961 $ 3,244,500 $ 6,249,113 administration building . -$ 3,004,613 Business Development C&D prospect $ 1,740,000 $ 308,989 $ 1,431,011 $ - $ - $ - C & D landfill construction postponed to 2022 pending completion of fill plan 2030 C&D prospect $ 1,600,000 $ - review . $ 1,600,000 C & D landfill equipment purchase postponed to 2022 pending completion of fill plan C&D prospect $ 1,750,000 $ - 2030 review . $ 1,750,000
Page 80 of 85 Capital Program 2019 , 2020 V.01 November 28 , 2019
2020R1 (Nov. 2019 Project 2019 YEO (Nov. 2019) Projects Comments 2019/2020 Projects Variance 2020 Category Capital Project Type Budget 2019) Variance 2019 2020R Budget Budgets Revision(1)
Land Water diversion design for construction in 2021 pending fill SE10 Water Diversion $ - $ 29,800 plan 2030 review . -$ 29,800 Related Labour $ 52,200 $ 9,270 $ 42,930 $ 100,500 $ 894 $ 99,606
Net savings in BD capital from not purchasing additional tractors and trailers for C & D . C & D landfill cell and equipment Subtotal Business $ 1,792,200 $ 318,259 $ 1,473,941 $ 3,450,500 $ 30,694 purchases postponed to 2022 . $ 3,419,806 Total $ 13,284,014 $ 9,563,111 $ 3,720,903 $ 6,695,000 $ 6,279,807 $ 415,193
$ 3,720,903 $ 415,193
$ 4,136,096
Page 81 of 85 Capital Program 2019 - 2023 Revised V.01 November 28 , 2019
Category 2019 Budget 2019 YEO 2020 Orig. 2020 Budget 2021 Orig. 2021 Rev. 2022 Orig. 2022 Rev. 2023 Orig. 2023 Rev. 2019 - 2023 Orig. 2019 - 2023 Rev. Variance Land $ 300,000 $ - $ - $ 700,000 $ - $ - $ - $ - $ - $ - $ 300,000 $ 700,000 -$400,000 Sub-Total 1 $ 300,000 $ - $ - $ 700,000 $ - $ - $ - $ - $ - $ - $ 300,000 $ 700,000 -$400,000 Buildings Admin Bldg. $ 1,600,000 $ 214,323 $ - $ 2,200,000 $ - $ - $ - $ - $ - $ - $ 1,600,000 $ 2,414,323 -$814,323 Transfer $ 100,000 $ 25,649 $ 100,000 $ 198,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 $ 523,649 -$23,649 Sub-Total 2 $ 1,700,000 $ 239,972 $ 100,000 $ 2,398,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 2,100,000 $ 2,937,972 -$837,972 Equipment Major $ 3,171,534 $ 2,947,753 $ 1,000,000 $ 1,100,000 $ 1,700,000 $ 2,400,000 $ 2,800,000 $ 1,500,000 $ 1,400,000 $ 1,400,000 $ 10,071,534 $ 9,347,753 $723,781 Tractors $ - $ - $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 800,000 $ 800,000 $0 Bins $ 100,000 $ 99,670 $ 100,000 $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 $ 399,670 $100,330 Other $ 80,000 $ 104,051 $ 200,000 $ 250,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 880,000 $ 954,051 -$74,051 Sub-Total 3 $ 3,351,534 $ 3,151,474 $ 1,500,000 $ 1,550,000 $ 2,200,000 $ 2,900,000 $ 3,300,000 $ 2,000,000 $ 1,900,000 $ 1,900,000 $ 12,251,534 $ 11,501,474 $750,060 Infrastructure Cells $ 4,601,379 $ 4,374,120 $ - $ - $ - $ - $ - $ - $ - $ - $ 4,601,379 $ 4,374,120 $227,259 Wells $ 50,000 $ 5,513 $ 50,000 $ 25,000 $ - $ - $ - $ - $ - $ - $ 100,000 $ 30,513 $69,487 Site and Grounds $ 615,000 $ 649,257 $ 500,000 $ 1,257,600 $ 500,000 $ 1,000,000 $ 100,000 $ 100,000 $ 500,000 $ 500,000 $ 2,215,000 $ 3,506,857 -$1,291,857 Capping $ 307,317 $ 316,161 $ - $ - $ - $ - $ - $ - $ - $ - $ 307,317 $ 316,161 -$8,844 Pond & Other $ 231,871 $ 239,088 $ 1,000,000 $ 136,500 $ 1,000,000 $ 2,365,300 $ - $ - $ - $ - $ 2,231,871 $ 2,740,888 -$509,017 Sub-Total 4 $ 5,805,567 $ 5,584,139 $ 1,550,000 $ 1,419,100 $ 1,500,000 $ 3,365,300 $ 100,000 $ 100,000 $ 500,000 $ 500,000 $ 9,455,567 $ 10,968,539 -$1,512,972 Sub-Total 1 - 4 $ 11,157,101 $ 8,975,585 $ 3,150,000 $ 6,067,100 $ 3,800,000 $ 6,365,300 $ 3,500,000 $ 2,200,000 $ 2,500,000 $ 2,500,000 $ 24,107,101 $ 26,107,985 -$2,000,884 Labour $ 334,713 $ 269,268 $ 94,500 $ 182,013 $ 114,000 $ 190,959 $ 105,000 $ 66,000 $ 75,000 $ 75,000 $ 723,213 $ 783,240 -$60,027 Sub-Total 5 $ 11,491,814 $ 9,244,853 $ 3,244,500 $ 6,249,113 $ 3,914,000 $ 6,556,259 $ 3,605,000 $ 2,266,000 $ 2,575,000 $ 2,575,000 $ 24,830,314 $ 26,891,225 -$2,060,911 Business Development Hauling $ 1,740,000 $ 308,989 $ - $ - $ - $ - $ - $ - $ - $ - $ 1,740,000 $ 308,989 $1,431,011 Cells $ - $ - $ 1,600,000 $ - $ - $ - $ - $ 1,600,000 $ - $ - $ 1,600,000 $ 1,600,000 $0 Equipment $ - $ - $ 1,750,000 $ - $ - $ - $ - $ 1,750,000 $ - $ - $ 1,750,000 $ 1,750,000 $0 Other $ - $ - $ - $ 29,800 $ - $ 515,200 $ - $ - $ - $ - $ - $ 545,000 -$545,000 Sub-total $ 1,740,000 $ 308,989 $ 3,350,000 $ 29,800 $ - $ 515,200 $ - $ 3,350,000 $ - $ - $ 5,090,000 $ 4,203,989 $886,011 Labour $ 52,200 $ 9,270 $ 100,500 $ 894 $ - $ 15,456 $ - $ 100,500 $ - $ - $ 152,700 $ 126,120 $26,580 Sub-Total 6 $ 1,792,200 $ 318,259 $ 3,450,500 $ 30,694 $ - $ 530,656 $ - $ 3,450,500 $ - $ - $ 5,242,700 $ 4,330,109 $912,591 Total 5 - 6 $ 13,284,014 $ 9,563,111 $ 6,695,000 $ 6,279,807 $ 3,914,000 $ 7,086,915 $ 3,605,000 $ 5,716,500 $ 2,575,000 $ 2,575,000 $ 30,073,014 $ 31,221,333 -$1,148,319
Page 82 of 85
REQUEST FOR DECISION (RFD)
SUBJECT:
2019 Workstation Upgrade
RECOMMENDATION:
That the Board approve the unbudgeted expense for the upgrade of workstations at an amount not exceeding $72,000.00
CFO COMMENTS:
Back in July, the IT service provider informed BMS that product support for Windows 7 is ending January 14, 2020. This means issues with compatibility with Windows 10. Further, computers running on Windows 7 are about 5-7 years in age and pose a risk of hardware failure. There were 21 units identified.
Since then, there have been at least 3 computers that crashed and replaced as part of normal operating budget.
While it would have been ideal to replace the computers in conjunction with the new admin building move in, the condition of the existing computers may not last until the fall of 2020.
The IT service provider likewise recommended the shift to MS Office 365 subscription. However, this will further require the shift to Office 365 Exchange Online as well as O365 SharePoint Online. This will have to be evaluated separately in 2020.
Please find attached estimated costs associated with this upgrade.
Description Qty Unit Price Amount Desktops 18 $ 1,170.51 $ 21,069.18 Monitors (2 for each desktop) 36 $ 300.00 $ 10,800.00 Keyboard & mouse 18 $ 65.00 $ 1,170.00 MS Office License 18 $ 600.00 $ 10,800.00 Printers 4 $ 800.00 $ 3,200.00 Accessories (wires, etc) 18 $ 30.00 $ 540.00 Sub-Total hardware $ 47,579.18 Deployment services $ 15,000.00 Total hardware & installation $ 62,579.18 Contingency (15%) $ 9,386.88 Grand Total $ 71,966.06
RFD 6.8 – 2019.11.28| Beaver Municipal Solutions Revision: 4 RFD Date: 2017.02.23
Page 83 of 85
REQUEST FOR DECISION (RFD)
Estimated prices above are based on recent quotes from IT service provider. However, BMS will look for better pricing. Further, BMS may choose not to replace all 18 units depending on need. It is anticipated though that at least 12 units will need to be replaced by December 31, 2019.
For the MS Office License, it is recommended to buy the standard license rather than 365 subscription as the current network does not support Office 365.
Please note that substitution is possible (laptop than desktop) depending on user needs, but total cost will not exceed board motion, if approved.
It is recommended to charge the upgrade cost to 2019 operating expense due to the following:
- The unit price of each unit is below the capitalization threshold of $2500 as per policy FIN-003 Accounting for Tangible Capital Assets. - Technological advances do not create “value” anymore on computers to be considered capital assets.
Funding for upgrade will come from 2019 operating results.
Disposal of old computers (all fully depreciated) recommended as follows: - Offered to employees at minimal cost - Offered to not for profit organizations within member municipalities - Recycling bins
There will be a caveat to those who wish to take over these old computers that the operating system is not supported anymore, the performance is terribly slow and physical condition is not ideal. These units are being replaced for a reason. Units will be wiped for data before disposal. Lastly, best to inquire from Municipal Affairs if disposal through employees and not for profit organizations require approval as these units were considered “capital equipment” at the time of purchase.
RECOMMENDATION Report/Document: Attached Available Nil
KEY ISSUE(S)/CONCEPTS DEFINED: See CFO comments.
RELEVANT POLICIES: FIN-003 Accounting for Tangible Capital Assets
STRATEGIC RELEVANCE: BMS is highly invested in technology and proper user hardware and software are required.
DESIRED OUTCOME(S): Approval of the recommendation as presented.
RFD 6.8 – 2019.11.28| Beaver Municipal Solutions Revision: 4 RFD Date: 2017.02.23
Page 84 of 85
REQUEST FOR DECISION (RFD)
RESPONSE OPTIONS:
1. Accept recommendation 2. Request more information, if questions arise in presentation, and request re-submission. 3. Reject recommendation
PREFERED STRATEGY:
Response 1.
IMPLICATIONS OF RECOMMENDATION:
GENERAL: See CFO comments.
ORGANIZATIONAL: See CFO comments.
FINANCIAL:
FOLLOW UP ACTION:
COMMUNICATION:
OTHER COMMENTS:
Submitted by: Juvy Ceniza, CPA Endorsed by:
Reviewed by: Pierre Breau, P.Eng Reviewers:
RFD 6.8 – 2019.11.28| Beaver Municipal Solutions Revision: 4 RFD Date: 2017.02.23
Page 85 of 85