Finance Committee Decisions in Brief
March 7, 2016 Meeting
7.1.4 Preliminary Year-End Financial Results
Decision
*The Committee is recommending to City Council:
1) The fuel surplus of $2.441 million not be transferred to the Fuel Stabilization Reserve.
2) The transfer of the Snow Removal and Ice Management Program allowable surplus amount of $0.622 million into the Snow and Ice Management Reserve be approved.
3) The transfer of the preliminary civic surplus of $1.436 million to the Fiscal Stabilization Reserve be approved.
Background
*The City has posted a $1.436 million surplus.
*Prior to the external audit of the City’s year-end financial statements, the Administration tables a report with City Council to inform City Council and the public on the preliminary year-end financial results.
7.1.5 Consultant Services – 2015
Decision
*The Committee received the report as information.
*The Committee resolved Administration report on a review of the value of consulting contracts including some analysis to help clarify what money has been saved using consultants.
*The Committee resolved that Administration report on how the City ensures value for money in the City’s use of consultants on a go-forward basis.
*The Committee resolved that the Power Point presentation be provided to all members of City Council.
Background
*At the January 25, 2016 meeting of City Council, consultant contracts were awarded for an Agency of Record and a Business Case on Recovery Park. Discussions regarding these contracts included the City’s use of consultants. In addition, a media request was received in relation to the City’s use of consultant services and the Administration determined that a report on this topic to the Standing Policy Committee on Finance would be appropriate.
*All external consultant costs were approved in the 2015 Business Plan and Budget. The City has not taken on additional or unexpected costs that were not approved in the budget process.
*The City invested $16 million or 4% of our total City budget on advice and services in support of capital projects – addressing an unprecedented need for construction projects made necessary by an unprecedented period of growth in our community.
*The City invested $2.6 million or 0.4% of our total City budget on advice or services to the City for operations. For example this includes $213,000 for internal audit services that are more cost effective to outsource.
*CFO Kerry Tarasoff presented the Committee with an apples to apples comparison. For example, if the City of Saskatoon used the same criteria as the City of Regina, it would show Saskatoon spent roughly the same as Regina for consultants hired for planning studies or strategic policy advice at $1.8 million and $1.75 million respectively.
7.2.4 Leasing of Civic Property – Bowerman House -1328 Avenue K South
Decision
*The Committee will be reporting to City Council indicating support for the recommendations in the report regarding the new lease and operating agreement with the Meewasin Valley Authority for the City-owned property known as the Bowerman House.
*The Committee resolved Meewasin maintain the premises in accordance with the proposed agreement for a period of five years, in lieu of paying rent.
Background
*The Meewasin Valley Authority requested to continue to lease the Bowerman House from the City.
*The Bowerman House was built in 1907 as a private hunting lodge and summer residence for Allan Bowerman (a member of Saskatoon’s first town council). The building was acquired by the Saskatchewan Anti-Tuberculosis League in 1924, serving thereafter, as a residence for sanatorium doctors until 1987.
*The Bowerman House, and a portion of its surrounding grounds, was designated as a Municipal Heritage Property in 1986. The City purchased the property from the Province in 2004, and leased the house to Meewasin. Meewasin had previously managed the Bowerman House on behalf of the Province.