Committee Meeting August 25th – 4pm
Quarterly Financial Report Second Quarter 2014.
Chief Financial Officer David Svetlichny presented Council with an overview of the Town’s finances. He stated that all funds are looking good.
The Sewer Operating Fund and capital fund are in line with the approved 2014 Budget but shows administration costs of $16,700 higher than 2013. This is due to allocation changes which reflect the revised time tracking system.
The Water Fund shows Phase 3 as complete for a cost of $700,000 in 2014 and a total project cost of $1,076,000 most of which will be recoverable through grants. The total for this project since its start in 1992 has been almost $10,000,000. Most of which was covered by government grants.
The General Fund received a total of $232,000 from Provincial/Federal Transfer payments in the first part of 2014. It is anticipated that the Provincial Government transfer payments will be approximately $328,000 in the future. Mr. Svetlichny noted an increase of $105,200 which reflects the Deputy Director of Operations salary cost for 2014, a CUPE wage increase of 2%, consulting costs, the hiring of a new CAO to replace Mr. Szalay, higher Dental and Extended Health premiums and previously mentioned time tracking re-allocations to the various funds.
The Airport Clubhouse – Terminal License Agreement has created some issues with regards to potential liability for the Town. The Flying Club owns the building but the Town owns the property and a recent review by a lawyer resulted in a recommendation that the Town should require the Flying Club to carry liability insurance on the structure to cover possible injury to persons using the building. Because the Club is a society there is no ability for an injured person to make a claim but since the Town owns the land it is possible for an insurance company to name the Town in a suit for recovery of their costs. The club maintains that they do not have sufficient income to buy liability insurance at an annual premium of $1,500. Council discussed the Flying Club turning ownership of the building to the Town for coverage and the need to determine the existence of insurance coverage for other business located on Town property. Council will be meeting with the society members of the Club to discuss the next steps required to have the Town held harmless in the event of a claim.
Buchanan Road Source Development – Recommendation of Contract Award. TRUE Consulting has recommended that the Town award this contract in two parts; the first in the amount of $446,000 to Cumming construction and the Electrical Design, Design, Installation and Programming portion to IITS in the amount of $129,360. The project comprises a new irrigation well including a pump, discharge, piping, electrical and controls. The new well has a 600 USgpm and exceeds the existing well by 50%. The second new well is for domestic water use and has a capacity of 1,000 USgpm and will also include a pump, piping, a chlorination system plus electrical and controls. Shawn Goodsell, Director of Public Works advised Council that there will be a further reduction in cost which will see the project completed at $15,000 under the original budget cost.
Toasted Oak Alley Water and Sewer Replacement – Recommendation of Contract Award. TRUE Consulting also recommended to Council that this projects be awarded to Grizzly Excavating of Penticton in the amount of $169,774. Mr Goodsell noted that the Town received only two bids, one from Mike Johnson Excavating Ltd. In the amount of 173,906 and the successful bid from Grizzly Excavating. He commented that it appears most of the local contractors may be very busy with other work thus resulting in a limited response to the invitation to bid.
Council noted that the work must create the minimum of interference for other businesses which use the alley. They were assured by the Director of Public Works that disruption would be at a minimum.