AGENDA REGULAR COUNCIL MEETING

April 24, 2017 at 6:00 pm

PRESENTATIONS

SAMA – 2017 Re-evaluation presentation by Graham Stern

ADOPTION OF THE AGENDA 1. MINUTES

a) Minutes of Council Meeting held on April 10, 2017 2. ORIGINAL COMMUNICATIONS, DELEGATIONS AND PETITIONS

a) Southeast Regional Library Budget Cuts

b) FCM- Invoice for Legal Defense Fund – tabled April 10, 2017

c) Southeast College MOU Agreement

d) NAV Canada Leasing Agreement at Estevan Airport

e) Southeast Transportation Planning Committee Meeting March 28, 2017

f) Estevan Bruins Community Events Permit Celebrity Dinner May 3, 2017

g) Josh LeBlanc Savour the Southeast Community Events Permit May 13, 2017

h) Estevan Rotary Club Community Events Permit for Lobsterfest June 9, 2017

3. WRITTEN REPORTS OF COMMITTEES

a) Smile Services Meeting April 5, 2017

4. EXECUTIVE REPORTS

a) City Manager Budget Consideration and Taxation Effects

b) Public Works Tender Tandem Gravel Truck

c) Public Works Tender 2017 Grader Tender

d) Public Works Tender 2017 Skid Steer

e) Fire Report for March 2017

f) Land Development Condo Conversion of 801 Fourth Street LDR 8-2017

g) Utilities Clerk – Tenant /Landlord Utility Account Policy

5. INTRODUCTION OF BYLAWS 6. PUBLIC HEARINGS AND REPORTS 7. GIVING NOTICE

a) Proclamation Naturopathic Medicine Week May 8 – 14, 2017

b) Proclamation National Public Works Week May 21-27, 2017

c) Operation Clean Sweep May 15 - 22 8. MOTIONS FROM COMMITTEE 9. CONSIDERATION OF BYLAWS

10. INQUIRIES

ADJOURNMENT

April, 2017

ESTEVAN - Council Presentation

Mass appraisal approach which determines the market value through a comparison of valid sales

Preferred for single family or condo residential properties when adequate sales exist

Multiple Regression Analysis (MRA) is the tool used for the Sales Comparison Approach

MRA is a statistical process that: Is objective Requires less property characteristics Can be recalibrated quickly

Overview of the Sales Comparison Approach Using Multiple Regression Analysis (MRA) Techniques

Assessed Value = Land Value + Improvement Value

Land Value considers the; lot size and is adjusted for: neighbourhood, land servicing location factors

Hybrid Model Structure

Assessed Value = Land Value + Improvement Value Improvement Value includes:

living area: main living area basement area basement finish area

and various: interior features (fireplaces, air conditioning, …) PLUS exterior features (garage, deck, porch, patio, shed…)

is adjusted for : Construction style Construction type Quality Condition Neighbourhood Location

Hybrid Model Structure

Number of Sales: 675 (73 vacant land and 602 improved)

Median ASR is 0.997 R-Squared – the % of variation of sale price and

predicted value which can be explained by the model. ESTEVAN: R-squared of 86.8%

Coefficient of Dispersion (COD) – measure of appraisal uniformity by measuring the variation in ASRs. ESTEVAN: COD of 10.7% (10.3% vacant land and 10.7%

on improved)

2015 Model Performance

Variables Used: All of the variables are from the Building Structural Elements (BSE) except location variables

Location Variables in Single Family Residential Models: Abutting Apartment Abutting Green Space Abutting Highway Abutting Commercial Abutting Railway Abutting Main Traffic

2015 ESTEVAN Model

ESTEVAN- NBHD’s

NBHD Adj _Land NBHD 110,140,

150, 180, 190 – factor 1.213

NBHD 120 – factor 1.116

NBHD 130, 170, 250, 300-320 – factor 1.000 (base NBHD)

NBHD Adj _BLDG NBHD 110,140,

150, 180, 190 – factor 1.053

NBHD 120 – factor 1.029

NBHD 130, 170, 250, 300-320 – factor 1.000 (base NBHD)

Location Adjustment (applied to land) Abutting Apartment / Commercial – factor 0.95 Abutting Green Space – factor 1.0 Abutting Highway / Main Traffic – factor 0.86 Abutting Railway – 0.75

Location Adjustment (applied to building)

Abutting Apartment / Commercial – factor 0.988 Abutting Green Space – factor 1.0 Abutting Highway / Main Traffic – factor 0.965 Abutting Railway – 0.938

Land Service Adjustment (based on 2015 Cost Guide)

No Street $1.33/SQFT Gravel Street $1.1/SQFT No Sewer $0.70/ SQFT No Water $0.95/SQFT No Sidewalk $0.44/SQFT No Curb $0.32/SQFT

Location Adjustment

Land Value: (Land Rate – Land Service Adjustment) * Standard Land

Size * (Subject Land Size/ Standard Land Size) ^ Land Size Exponent

Land Rate: 16 Median/Standard Land Size: 6200 square feet Land Size Exponent: 0.338 Non-Adjusted land size curve Land Size Cap: 130 680 square feet (3 acres) For Example, full serviced subject lot size 6000 square feet

Land Value = (16-0)*6200*(6000/6200)^0.338 = $98,107.64 Note: $98,107.64 is subject to Neighborhood and Location

Adjustment

Land Component

Main Building (Main Living Area, Basement Area and Basement Finish Area: Main Living Area Value = Main Living Area Rate * Main

Living Area * (Main Living Area/ Standard Living Area) ^ Main Living Area Exponent

Main Living Area Rate: $129.047/ square foot Standard Living Area: 1150 square feet Main Living Exponent: - 0.354 (No adjustment form 0

to 1200 square feet) For Example, Main Living Area = 1500 square feet Main Living Area Value = 129.047 * 1500 * (1500/1150)^(-0.354) = $176 193

Building Component – Main Building

Basement Area Basement Value = Basement Rate * Basement Area Basement Rate: $46.129/ square foot For Example, Basement Area = 1500 square feet Basement Area Value = 46.129 * 1500 = $69 194

Basement Finish Area Basement Finish (BF) Value = BF Rate * BF Area Basement Finish Rate: $23.065/ square foot For Example, Basement Room Area = 1000 square feet Basement Room Area Value = 23.065 * 1000 = $23 065

Building Component – Main Building

Other Buildings includes Garage, Deck, Carport, Porch, Patio, and Shed For Linearized Garage Area ≥ 484 sq ft

Garage rate = 40.746 Garage Value = 40.746*Linearized Garage Area*(Linearized

Garage Area/484)^-0.18 For Linearized Garage Area < 484 sq ft

Garage rate = 40.746 Linearized Garage Area Garage Value = 40.746*Linearized Garage Area

Where Linearized Garage Area=attached/built-in garage area+0.9 detached garage area+ 0.9 detached garage quality choice area+0.9 pool enclosure area)

Building Component – Other Buildings

Other Buildings includes Garage, Deck, Carport, Porch, Patio, and Shed

Example: Attached Garage Area = 484 square feet Detached Garage Area = 280 square feet Detached Garage Area = Quality Choice 240 square feet Linearized Garage Area=484+0.9*(280+240)=952 Garage Area Value = 40.746*952*(952/484)^-0.18=34 343

Example of Linearized Garage Area

Deck Area = 300 square feet Patio/Shed/carport area = 0 Deck/Porch/OV/Solarium/Loft value rate = 15.486 Deck/Porch/OV/Solarium/Loft value= 15.486*(Deck

Area+Porch Area+ OV Area+Solarium Area+Loft Area) =15.486*300 =4645.80

Patio/Shed/Car Port rate = 6.452 Patio/Shed/Car Port value= 6.452*(Patio Area+ Shed

Area+ Car Port Area) = 6.452*0 =0

Building Component – Other Buildings

The main building and other buildings (plus fireplace value and plumbing value) are subject to Quality and Condition

Example: Quality Adjustment for class 5=1.05 Condition Adjustment for above average= 1.054

Main Building and Other Buildings’ Adjustments

Class 1 0.600Class 2 0.857Class 3 0.987Class 4 1.000Class 5 1.050Class 6 1.250Class 7 1.300

Excellent 1.562 Superior 1.434 Very Good 1.307 Good 1.194 Above average 1.054 Average 1.000 below Average 0.708 Poor 0.435

Building additional features includes fireplace, hot tub, swimming pool, plumbing , air conditioning, inferior and superior heating

Fireplace Value = Fireplace Rate * Number of Fireplace Fireplace Rate = $5000 Swimming Pool Value = Swimming Pool Rate Swimming Pool Rate = $0 Plumbing Value= Plumbing rate*Number of plumbings

Plumbing rate= $440

Air Conditioning Value = Air Conditioning Rate Air Conditioning Rate = $4000 Heating No Heat= - $20,000

Building Component – Building Additional Features

Depreciation applies to all building components (including main buildings, other buildings and additional building features)

Except Mobile Home, Percentage Good = (1 –(2014- Effective Year Built/200) ^ Age Exponent Age Exponent (except Mobile Home) = 0.890

Mobile Home, Percentage Good = (1 –(2014- Effective Year Built/80) ^ Age Exponent Age Exponent (Mobile Home) = 1.442

For Example, OFD with effective year built = 1990 Percentage Good = (1 – (2014-1990)/200)^0.890 =0.892

Age Adjustment – Depreciation

Follow-up If needed we are available to explain new assessments

to ratepayers (set up by appointments) Provide ongoing phone support Regional 1-800 number for inquiries Support of value

Additional Resources • SAMA’s website - www.sama.sk.ca •On-line manuals, handbooks, FAQs etc • SAMAView

Questions?

April 10, 2017 Regular Council Meeting

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Minutes of the Regular Council Meeting of the City of Estevan held in the Council Chambers on Monday April 10, 2017, 2017 at 6:00 p.m. Present were: Mayor Roy Ludwig, Councillors D. Moore, G. Hoffort, T. Knibbs, S. Veroba, T. Frank, L. Yanish, City Clerk Judy Pilloud, City Manager Jeff Ward, City Controller Trudy Firth, representatives of the media (R. DeRosier, D. Willberg, M. Cinnamon) Jackie Wall, Conner Piche, Randi Milbrandt, Fan Nie

Presentations Mayors Poetry Challenge Presenters: Conner Piche Randi Milbrandt Fan Nie SAMA 2017 Re-evaluation presentation-unable to attend due to illness Agenda 2017-493

Motion moved by Councillor Veroba, seconded by Councillor Frank, to approve the agenda as amended with moving the SAMA presentation to the April 24, 2017 meeting.

Motion Carried Unanimously Minutes

2017-494 Motion moved by Councillor Yanish, seconded by Councillor Moore, that the Minutes of the Regular Council Meeting held on March 27, 2017, be adopted as presented.

Motion Carried Unanimously.

Original Communications, Delegations and Petitions

April 10, 2017 Regular Council Meeting

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FCM Invoice for Legal Defence Fund 2017-495

Motion moved by Councillor Hoffort, seconded by Councillor Knibbs, that the invoice for $ 266.95 be tabled requesting the City Manager for further investigation of this expenditure. Motion Carried Unanimously

Written Reports of Committees Souris Valley Museum Minutes of Jan, Feb & Mar 2017 2017-496

Motion moved by Councillor Yanish, seconded by Councillor Veroba, that the minutes of the Souris Valley Museum for January 18, 2017 , February 15, 2017 and March 15, 2017 be accepted as presented. Motion Carried Unanimously

Executive Reports Public Works Tender for ¾ Ton light truck 2017-497

Motion moved by Councillor Hoffort, seconded by Councillor Knibbs, that Public Works Tender for two ¾ ton light trucks be awarded to Murray GM for the tendered price of $35,608.06 per truck.

Motion Carried Unanimously Land Development Building Permit Report for March 2017 2017-498

Motion moved by Councillor Yanish, seconded by Councillor Moore, that the Land Development Building Permit Report for the month of March, 2017 be approved as presented.

Motion Carried Unanimously

April 10, 2017 Regular Council Meeting

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Land Development Proposed RM of Estevan Subdivision Dukart Drive LDR 7-2017 2017-499

Motion moved by Councillor Hoffort, seconded by Councillor Moore, that the Land Development Service report on Dukart Drive Subdivision be tabled requesting a meeting with RM of Estevan to discuss this subdivision proposal.

In Favour: Councillor Hoffort Opposed: Councillor Veroba Councillor Yanish Councillor Frank Councillor Knibbs Councillor Moore Mayor Ludwig Motion Defeated 2017-500

Motion moved by Councillor Moore, seconded by Councillor Knibbs, that the Land Development Service report of the Dukart Subdivision be accepted as presented and the recommendation to refuse this development as it is in direct conflict with the intent of Section 6 of the inter-municipal agreement between the City of Estevan and RM of Estevan and Land Development be directed to notify Community Planning of this action.

Motion Carried Unanimously Land Development Proposed Re-subdivision – 2 & 3 20014 Alice Road LDR 6-2017 2017-501

Motion moved by Councillor Hoffort, seconded by Councillor Frank, that the Land Development Service report be accepted as presented and as this proposal will not have any impact on the surrounding properties nor will it affect any city services approval of this proposed subdivision be granted.

Motion Carried Unanimously

April 10, 2017 Regular Council Meeting

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Giving Notice Walk for Values Day April 24, 2017 2017-502

Motion moved by Councillor Veroba, seconded by Councillor Moore, proclaim April 24, 2017 as Walk for Values Day

Motion Carried Unanimously Rail Safety Week April 24 – 30, 2017 2017-503

Motion moved by Councillor Moore, seconded by Councillor Hoffort, proclaim the week of April 24 – 30, 2017 as Rail Safety Week

Motion Carried Unanimously Consideration of Bylaws Bylaw 2017-1985 to Provide for Performance Deposits to Contractors

2017-504 Motion moved by Councillor Frank, seconded by Councillor Veroba, that Bylaw 2016-1985 a bylaw to provide for performance deposits to contractors in the City of Estevan, be taken as having been given second reading.

Motion Carried Unanimously

2017-505 Motion moved by Councillor Yanish, seconded by Councillor Knibbs, that Bylaw 2016-1985, as annexed to these Minutes, be taken as having been given third and final reading, approved and adopted for use by the City of Estevan.

Motion Carried Unanimously

April 10, 2017 Regular Council Meeting

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Committee 2017-506

Motion moved by Councillor Frank , seconded by Councillor Hoffort, to move into Committee of the Whole.

Motion Carried Unanimously Open 2017-507

Motion moved by Councillor Frank, seconded by Councillor Hoffort, that Council move into Open Meeting. Motion Carried Unanimously

Adjournment 2017-508

Motion moved by Councillor Moore, seconded by Councillor Hoffort, that the meeting be adjourned, the time being 8:30 p.m.

Motion Carried Unanimously. __________________________

Roy Ludwig Mayor

__________________________ Judy Pilloud City Clerk

DATE: April 24, 2017 TO: Mayor Ludwig and City Council SUBMITTED BY: Jeff Ward, City Manager

RE: BUDGET CONSIDERATION AND TAX EFFECT ITEM OR INQUIRY

Changes to the 2017 budget due to provincial changes in funding

BACKGROUND AND DISCUSSION

During the release of the provincial budget, there were significant changes to the amount of funding received from the provincial government, particularly in relation to the grants in lieu for crown properties, but also a significant reduction in our municipal operating grant due to decreased PST as well as unfavorable census figures. Budget adjustments are required to ensure the City of Estevan is being fiscally responsible. The budget impact in regards to grants in lieu is $650,000 and the reduction in municipal operating grant is $250,000. Administration is currently working on finding efficiencies within departments and using vacancy management and capital cut to reduce costs.

RECOMMENDATIONS

The initial proposed tax increase was 3%, this would provide the city with an additional $440,000. An 8% tax increase will provide $1.1 million and will essentially fill the gap left by the reductions in provincial funding and will ensure that projects that are planned to better the city are left within the budget. Administration has found efficiencies within departments and using vacancy management and capital cuts to facilitate the $240,000 short fall this leaves.

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CONCLUSION

It should be noted that approximately 35% of the tax bill that is paid to the city is money collected on behalf of the school system; this is remitted to the provincial government. The assessment of your property is completed by SAMA which is a provincial agency and uses a base date of January 1, 2015. This reassessment is done every 4 years.

CITY OF ESTEVAN

POLICIES AND PROCEDURES MANUAL

POLICY # 2017-64

SUBJECT: Tenant/Landlord Utility Account

BACKGROUND

In an effort to better manage outstanding rental utility accounts and ensure property owners and tenants know their responsibilities as well as the City of Estevan expectations. This policy will ensure that all Owners of rental properties will be made aware of the obligations in the Cities Act Section 333, as well as what their responsibilities are as an owner in the collection process of accounts by the City of Estevan. A Letter of Understanding will be enforced for all owners of rental properties in order to monitor the acknowledgment of the standards set out by the City of Estevan. The City will also have a form that will be signed off by every tenant that enables the City to discuss the tenant’s account information with the owners of the property.

GOALS

1. Provide current information in relation to tenant/landlord accounts and tax transfers

2. Ensure Landlords are aware of the responsibilities they have as well as what the City of Estevan process of collection of overdue Tenant Accounts

GUIDELINES

1. Property owners that wish to have rental tenants within their premises must review and sign a “Letter of Understanding” in order to properly set up tenant utility accounts.

2. One letter of understanding would be signed as acknowledgment of the policies in place for each owner (not for each property)

3. No accounts will be opened in tenants names unless a letter of understanding has been signed

by the property owner.

4. Tenants will also have to sign off on an Information Release Form, allowing their landlord (owner) to inquire on their account.

5. Failure of the Tenant to sign off on the Information Release Form will deny any rental

accounts to be opened in their name and the account would have to be opened in the property owners name.

City of Estevan Policies & Procedures Manual Policy # 2017-64 Page 2

ACCOUNTABILITY The Utility Clerk is responsible for the consistent application of this policy and ensuring all criteria are met in order to keep a good relationship between owners, tenants and the City of Estevan.

CONDITIONS

APPROVED BY COUNCIL

RESOLUTION # DATE:

DISTRIBUTION Policy Manuals, Copies to all Department Heads for circulation to Staff

City of Estevan Policies & Procedures Manual Policy # 2017-64 Page 3

SCHEDULE ‘A’

Letter of Understanding

Dear Landlord (Owner), This letter is to ensure that landlords are aware of how the policies set forth by the City of Estevan affect them in relation to tenant accounts. Tenants are required to pay a water meter deposit in order to set up a new account. This deposit fluctuates based on the size of water meter on the property and must be paid to the City of Estevan prior to any arrangements regarding work orders or utility account transfers. This deposit may be applied to the account once the tenant has moved out and a final meter read has been completed. Once the tenant moves out, the account will default back into the owners’ name, unless arrangements have been made with another tenant. Each time the account changes hands, regardless of tenant or owner, there is an account transfer fee of $38.50 applied to the first bill of the new account. Once the tenant has arranged for a final read on their account a final bill will be calculated and mailed out. Failure to set up a final read will result in continued billing towards the tenant on the account. The City does not backdate account activity for tenants that have failed to arrange for a final read. Meter reads must be up to date in order to switch accounts over. A forwarding address must be provided in order to receive final billing. Updating of any forwarding address is the responsibility of the tenant and is not the responsibility of the City of Estevan Staff. The following section of the Cities Act gives the municipality the power to transfer any outstanding tenant accounts onto the property owners’ tax account: Adding amounts to tax roll 333 (1) A council may add the following amounts to the tax roll of a parcel of land:

(a) Unpaid costs relating to service connections of a public utility that are owing with respect to the parcel;

(b) Subject to subsection (1.1), unpaid charges for a utility service provided to the parcel by a public utility that are owing with respect to the parcel, whether the service was supplied to the owner or a tenant of the land or building, if the city has:

(i) Provided prior notice to each of the owner and tenant that the charges for the utility service to the parcel are in arrears;

(ii) Sent a registered letter to each of the owner and tenant respecting the unpaid charges and the consequences of the unpaid charges at least 30 days before the amounts are to be added to the tax roll;

(iii)In the case of any deposit provided to the public utility with respect to the parcel

(A) By the owner, applied the owner’s deposit to the unpaid charges; or

(B) By the tenant, applied the tenant’s deposit to the unpaid charges; and

(iv) Discontinued the utility service to the parcel if it is possible and reasonable, in the opinion of the city, to do so;

As stated, any uncollected bills in relation to a land parcel can be transferred to the property taxes. Ensure that you are checking in with the City of Estevan upon termination of Tenant accounts to ensure billing is up to date. This will allow you as a property owner to withhold deposits and attain proper contact information to follow up on outstanding accounts which could potentially be transferred to your property taxes. The City will provide owner copies of the utility bills for tenant accounts as a courtesy to the property owner. It will be the owner’s responsibility to contact the City of Estevan if there are any questions on tenant accounts or to inquire about the final billing status.

City of Estevan Policies & Procedures Manual Policy # 2017-64 Page 4 Tenants will be required to sign off on an information release form with the City of Estevan in order to release information on their accounts to you (the landlord). If your tenant refuses to sign the information release form, the account will not be transferred into the tenant’s name. In accordance with the information release form, every landlord (owner) will be required to sign off on this letter to acknowledge the understanding of the policies and procedures set forward by the City of Estevan in regards to rental property accounts. If this letter of understanding is not signed off by you (the landlord), then no accounts will be transferred into tenant’s names and the utility account will continuously be kept in the owner’s name. Please note, the City of Estevan will put all efforts into collection of tenant accounts and go through our procedures in order to work with Landlord

City of Estevan Policies & Procedures Manual Policy # 2017-64 Page 5

INFORMATION RELEASE FORM

Civic Address: _______________________________________ Tenant Name: _______________________________________ I, ___________________________________ (Tenants Full Name), authorize the owner of ____________________________________ (Civic Address), access to information regarding my utility account with the City of Estevan. I understand, that by agreeing to these terms, I and the City of Estevan are in compliance with the Privacy Act of Canada: Privacy Act Of Canada (R.S.C., 1985, c. P-21) - Disclosure of personal information

8. (1) Personal information under the control of a government institution shall not, without the consent of the individual to whom it relates, be disclosed by the institution except in accordance with this section.

Tenant Information: ___________________________________ Printed Name ___________________________________ Signature ___________________________________ Date ___________________________________ Phone Number