The Corporation of the Town of Tillsonburg

REPORT

DATE: / February 23, 2006
TO: / D.C.Morris, C.A.O
FROM: / S.T. Lund, Director of Operations
SUBJECT: / OPERATIONS 2005 Fourth Quarter Report

PURPOSE

To report to Town Council on the summary of Tillsonburg Operations Services for the year 2005.

General Summary

Operations Services were extremely successful in completing the 2005 business plans all according to budget. All capital and maintenance programs were busy with staff continuing to work as an effective team achieving very good results.

Overall, the net expenditures of $1.9 million were met in Operations Services of the $15.1 million dollar total expenditures. In fact, we estimate we were under budget by $47,000 on our operations plan and well under budget on our capital plan involving roads, sewers and fleet in excess of $150,000.

Building permits were significantly up for the same time last year. All construction values for the year were $26.9 million vs. $25.1 million last year. We issued 308 permits in 2005 vs. 277 in 2004.

Fuel, oil, steel and parts prices have impacted the fleet budget again this year and we have had to increase fleet charges to all town service areas to balance this impact.

In 2006, we are working on capital and maintenance plans in all areas to place Operations Services in good standing for another successful year.

Positive variances were recorded in Enterprise, Operations Admin., Engineering, and Solid Waste while negative variance were posted in Parking, Fleet and Building Services. Adjustments have been made in the Fleet and Building Services areas to remove these variances and Parking should be back on track for 2006.

The overall summary of Operations Services is as follows:

The Town of Tillsonburg
Profit and Loss - Operations
Tburg:Operations - Operations
For the Twelve Months Ending December 31, 2005
December / YTD / 2005 Budget / Variance
Revenues:
Roads - Revenues / 553,201.54 / 670,784.39 / 2,882,398.00 / 2,211,613.61
Parking - Revenues / 45,000.00 / 188,153.19 / 174,700.25 / (13,452.94)
Sanitary Sewers - Revenues / 180,518.67 / 2,458,395.11 / 3,375,110.71 / 916,715.60
Solid Waste & Recycling - Revenues / 20,211.94 / 154,749.79 / 181,088.00 / 26,338.21
Building - Revenues / 6,200.39 / 127,520.38 / 246,432.00 / 118,911.62
Operations Admin - Revenues / 6,963.25 / 150,190.53 / 150,000.00 / (190.53)
Engineering - Revenues / 16,237.00 / 85,500.00 / 69,263.00
Enterprise Services - Revenues / 918,320.01 / 2,356,820.37 / 1,988,755.64 / (368,064.73)
Water - Revenues / 465,313.26 / 2,962,779.60 / 3,005,674.21 / 42,894.61
Fleet - Revenues / 237,312.50 / 993,194.89 / 1,149,595.00 / 156,400.11
- / - / - / -
Total Revenues / 2,433,041.56 / 10,078,825.25 / 13,239,253.81 / 3,160,428.56
- / - / - / -
Expenditures:
Roads - Expenditures / 619,511.45 / 3,664,583.86 / 4,747,550.87 / 1,082,967.01
Parking - Expenditures / 70,139.62 / 200,966.17 / 174,700.00 / (26,266.17)
Sanitary Sewers - Expenditures / 679,991.31 / 2,458,395.11 / 3,375,110.71 / 916,715.60
Solid Waste & Recycling - Expenditures / 50,464.57 / 291,590.54 / 336,468.35 / 44,877.81
Building - Expenditures / 39,791.08 / 223,065.08 / 246,432.00 / 23,366.92
Operations Admin - Expenditures / (204.18) / 73,857.01 / 86,941.00 / 13,083.99
Engineering - Expenditures / (41,356.77) / 70,292.20 / 179,680.00 / 109,387.80
Enterprise Services - Expenditures / 546,354.62 / 2,162,652.02 / 1,887,406.48 / (275,245.54)
Water - Expenditures / 323,638.82 / 2,962,779.60 / 3,005,674.21 / 42,894.61
Fleet - Expenditures / 211,491.38 / 1,011,089.07 / 1,109,594.51 / 98,505.44
- / - / - / -
Total Expenditures / 2,499,821.90 / 13,119,270.66 / 15,149,558.13 / 2,030,287.47
- / - / - / -
- / - / - / -
Net Levy:
Roads - Net Levy / 66,309.91 / 2,993,799.47 / 1,865,152.87 / (1,128,646.60)
Parking - Net Levy / 25,139.62 / 12,812.98 / (0.25) / (12,813.23)
Sanitary Sewers - Net Levy / 499,472.64
Solid Waste & Recycling - Net Levy / 30,252.63 / 136,840.75 / 155,380.35 / 18,539.60
Building - Net Levy / 33,590.69 / 95,544.70 / (95,544.70)
Operations Admin - Net Levy / (7,167.43) / (76,333.52) / (63,059.00) / 13,274.52
Engineering - Net Levy / (41,356.77) / 54,055.20 / 94,180.00 / 40,124.80
Enterprise Services - Net Levy / (371,965.39) / (194,168.35) / (101,349.16) / 92,819.19
Water - Net Levy / (141,674.44)
Fleet - Net Levy / (25,821.12) / 17,894.18 / (40,000.49) / (57,894.67)
- / - / - / -
Total Net Levy / 66,780.34 / 3,040,445.41 / 1,910,304.32 / (1,130,141.09)
- / - / - / -

COMMENTS

Public Works – Roads

Maintenance activity continued according to schedule and was on budget.

Roads net maintenance costs are shown as $1.37 million vs. an overall budget of $1.27 million however 78k is recoverable from the North Park Drain future DC’s and additional revenue of $40k will bring roads slightly under budget.

Capital projects completed were the annual resurfacing and concrete tenders, Delevan Crescent Area reconstruction, Newell Road Reconstruction Phase 1. COMRIF funding of $167,000 for a portion of Glendale Drive reconstruction and MTO funding of $117,000 for the mall signals were received and these projects are being carried over to 2006 for completion. Sidewalks have been constructed on portions of Quarter Line Road and Broadway to increase pedestrian safety on these important arterial roadways.

Capital costs are $1.271 million with revenues of 418k with the balance to be moved to the balance sheet, which will put capital on budget. Budgeted capital was $2.55 million of which Newell Road is being phased, Clearview Industrial Park Cul de sac, Glendale (COMRIF) and Venison Streets and the mid-block signals are carried over to 2006 which accounts for the difference between actual and budgeted capital amounts. The Delevan Crescent area project came in approximately $150,000 under budget. The additional engineering help for 2006 will move capital forward to make up for this difference next year.

Public Works – Parking

Parking lot maintenance consisted of asphalt patching and sweeping. A negative variance of $12,813 existed in this service since snow removal costs exceeded budget of $55,500 by $28,000. No adjustment is recommended to parking revenues at this time as snow removal costs are down and are expected to remain under-budget for 2006.

The resurfacing of the Baldwin and Washington Grand Municipal Parking Lot 1B came in on budget at $45,000.

Public Works – Solid Waste

This activity represents operation of the two Transfer Stations, special collections and leaf collection programs.

The south end yard waste transfer Station budget is subsidized 100% by the county for leave and brush recycling. Expenses are about $10,000 of an anticipated budget of $30,000 however the disposal of the brush pile was not carried out in 2005 and will have to be done in 2006. This operation is to be subsidized 100% by the county.

The north end transfer station is partially subsidized by the county for the one-day large item collection for about $70,000. The entire budget to operate the transfer station is $100,000 which processes large item, demolition material and scrap metal for residents only. The actual net costs of $30,000 for the transfer station operation that provides a twice a week level of service vs. the County 1 day a year curbside program represents extremely good value.

Abandoned garbage bags in town streets cost us $5,700 this past year to collect and dispose.

The two - 1 day a year programs for Hazardous and white goods day disposal, carried out by the county, have costs in the order $600 which represents town staff costs only.

Overall, expenses are $137,000 of $155,000 for the entire solid waste budget resulting in a positive variance of $18,500 for 2005.

Public Works – Sanitary Sewers

Town staff continues to administer the collection system through service contract with the county. The contract however expired at the end of the year and needs to be renewed. The sewer maintenance budget which represents collection of the sewer surcharge on the utility bill which, has revenues to date of $2.46 million of a $3.3 million budget.

No capital of the $755,000 budget was expended for the sanitary sewer construction projects, which were carried over to 2006 for the Northview Drive area sanitary servicing, and the Glendale Drive reconstruction project.

Public Works – Winter Maintenance

A total of $464,000 was spent of a budget of $366,000 for snow plowing and removal on town road and sidewalks. This resulted in being over budget by $98,000 due to unusually bad weather primarily in December 2005, which cost $136,000 for the month. Going forward this area of the budget should be adequate to meet the 2006 requirements due to the mild temperatures experienced until March 2006.

Public Works – Storm Sewers

A negative variance of $136,000 was posted to this account due to P and I payments and a transfer to reserves for which these items were not budgeted. The actual storm sewer operations were on the budget in the amount of $74,000.

Public Works – Street lighting

A total of $170,0000 was been spent to date of a budget of $157,000 for street lighting of town streets. Capital streetlights revenue needs to be posted to cover expenditures from developers, which should balance the account. New streetlights were placed adjacent to the new sidewalks on Quarter Line and Broadway and on North Street east of Tillson Ave.

Operations Administration

Operations administration costs are under-budget. The financial statement shows net revenues of $76,333 of $63,059 due to increase overhead recovery. Revenues and expenses were generally as estimated resulting in a positive variance of $13,274. Management continues to oversee the operational components of the department with success and the majority of the business plan being on track.

Engineering

Engineering continues to be typically very active with the business plan proceeding well according to schedule and budget.

Net expenditures were $54,000 of $94,000 resulting in overall, posted profits of $40,112 for 2005.

Current major project management activities were the completion of the annual curb and sidewalk tender, asphalt resurfacing, Delavan Crescent Area Servicing, Newell Road Reconstruction and Asset Management inventory and value calculating.

Next quarter projects include construction of the Mid Block Pedestrian signals, construction of Glendale Drive reconstruction to an urban standard, Quarterline Road and Northview Drive Sanitary sewer servicing design and tender, asset management projects as approved and hydro conversion and the M8 line construction to service OFI and surrounding area which will occupy our time for the rest of the balance of the year.

Fleet

All fleet assets for the entire town are the responsibility of the Fleet manager to ensure they are safe, reliable and adequately maintained to meet or exceed the asset life expectancy.

The total maintenance expenditures are $628,659 from a budget of $523,794 for a negative variance of $105,000. This variance can be attributed to the fact fuel costs over-ran by $29,000 due to price of crude oil and we have $24,000 in unscheduled maintenance costs due unit #71 Pierce Pumper and Unit #83 Sidewalk plow. Parts and general repair costs make up the difference. For 2006 we have adjusted fleet revenue upwards to come from the various maintenance departments to minimize the variances.

Very late in December we discovered the failure of the diesel fuel tank resulting the removal and replacement of the tanks. This is planned for as part of the 2006 budget process.

All capital vehicle replacements were complete with the exception of the Zamboni unit #116 which was ordered late in 2005. The capital projects are $234,00 to date out of a $585,500 budget amount resulting in a positive variance of $351,000, which is to be expended towards the snowplow truck ($195,000) and Zamboni ($125,000). Overall capital should be under by $18,000.

The town must continue to budget for vehicle replacements through the use of reserves to ensure viability and safety of our fleet operations.

Computerization of maintenance records, inventory, staff training, health and safety standards and fleet monitoring are ongoing long-term goals of this section.

Future directions we are exploring are fleet asset management and GPS for plows, salters and sidewalk plows in order to minimize our exposure to claims liability. City of Woodstock has approved this equipment this year for there winter maintenance fleet.

The new plow trucks are equipped with automatic spreader controls and pre-wetting equipment, which result in a savings in salt materials, which will be beneficial to the environment. It takes approximately 15 tonnes of salt to be placed to cover the whole town for one ice event.

Building Inspection

This report covers the period form January 1, 2005 to December 2005 for the Building Services.

Performance Measures

Measure
/ 2003
Actual / 2004
Fourth Quarter / 2005
Fourth
Quarter
Output Measures – Quantity
Residential (value) / 11,034,795 / 13,922,583 / 18,097.35
Commercial (value) / 3,412,845 / 5,558,460 / 4,419,689
Industrial (value) / 3,750,838 / 4,609,800 / 3,393,000
Institutional (value) / 9,975,367 / 1,023,000 / 996,000
TOTAL / 28,168,745 / 25,162,143 / 26,905,724
Efficiency Measures - $ Cost
Building permit turnaround (days) / 5 / 5 / 5
Effectiveness/Customer Service
/ 2003 / 2004 / 2005
Inquiries / 1050 / 1400 / 1528
Compliance Letters / 288 / 250 / 224

Total permit values are $26,905,724 for 2005 compared to $25,162,143 for the same period in 2004 (up by $1.7 million or 7%). This is largely due to residential volume. Commercial and Industrial values are down approximately 20%. Institutional values remained the same at $1 million dollars.

Residential values have exceeded last year’s value of $13.9 million by $4.2 million for 2005. 2003 values are the highest recorded in records dating back to 1992.

Total net building revenue was $95,544 over budget primarily due to the building bylaw and the new rates not becoming effective in 2005. This negative variance can be carried over and recovered from future years when permit fees are adjusted this April 2006

Operating expenses were $223,000 of a budget of $246,00.

Total permits were 308 versus 277 last year or up 11% from 2004.

Staff are training to meet the new provincial mandatory certification requirements, which came full effect in spring 2005.

We have not had a significant permit fee increase for about 15 years.

Subdivision Administration

Baldwin Place Phase 5B and 6 are complete.

Brookside Subdivision nears completion in terms of finalizing the design in order for the last phases to proceed.

Oak Park Subdivision Phase continues with construction.

Woodhaven Subdivisions in the peer review stage. Annandale Subdivision Phase 7 is preparing for construction.

Building in the remaining active subdivisions continues at various levels of activity.

There is no budget for subdivisions since costs are generally recoverable from developers.

Enterprise Services

Enterprise Services represents the diversity of the towns Utility staff functions which include Hydro Services to Tillsonburg Hydro Inc., fibre optic connectivity, hot water heater rentals, traffic signals, street lights, etc.

Major Capital work involves voltage conversion from 4,160 V to 27,600 V, which will result in lower line loss and reduced operating costs. Current capital work involves reconstructing Hydro lines on east hill area and Lake Lisgar Area to remove two substations off service to lower maintenance and operating costs. Staff continues to work to ensure a safe and reliable distribution system the town has enjoyed over the past number of years.

Subdivision servicing work has been active in light of renewed development activity again this year.

Financially, we have exceeded net budgeted revenue of $101,000 by $94,000 due to MSA revenues being higher from Tillsonburg Hydro Inc.

Water and Sanitary Sewer

Water revenue is $2.96 million of a budgeted $3.01 million. Expenses are 2.96 million of 3.01 million budget. We do not anticipate any major budget variances at this time. Capital is slated for Glendale Drive, Venison Street, Maple Lane and Northview Drive Area for 2006.

Staff has been assisting the county in water conservation, customer service, hydrant and main flushing, operational issues and water use enforcement.

Public works and Utility Services staff continues to train to meet and maintain the MOE operators certification standards to ensure our water and sewer systems are operated with integrity, which ensure our high quality of life within the Town of Tillsonburg.

Summary

The high quality standards and staff commitment we maintain in Operations Services are a large part of the essence of the Town of Tillsonburg which continues to attract new growth and development opportunities to the benefit of those live, work and play in our wonderful community.

RECOMMENDATIONS

“That the 4th Quarter Report for the Year 2005 dated February 23, 2005 from the Director of Operations be received.”

PREPARED BY: / S.T.Lund, P.Eng., Director of Operations / APPROVED BY: / D.C.Morris, A.M.C.T., C.A.O.

CORPORATE OFFICE

200 Broadway, Tillsonburg, Ontario, N4G 5A7, Telephone # (519) 842-6428, Fax # (519) 842-9431

Web:

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