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Chair Tierney noted that
at the meeting of 10 February, the Board directed staff to revise the 2015
Draft Operating and Capital Budget in order to address the decision of the
Ontario Pay Equity Hearings Tribunal.
Danielle McDonald, CEO, mentioned
that the Board will be receiving a revised presentation of the draft budget
as a result of the Board’s direction. Ms. McDonald thanked Monique Désormeaux
and her team, who worked very closely with staff from the City’s financial
services unit. Staff has
done an admirable job, while respecting the targets, the important work to
advance the Central Library file, and commitment to RFID and services. Ms. McDonald explained
the budget was not easy as a result of the fact that staff had to find
another $250,000 within the operating envelope that was provided. Ms. McDonald
explained that by approving this budget, the organization has to stay focused
as there will not be a lot of room left and no ability to add in new services
through the year unless choices are made and money is pulled from one area
and switched.
Monique Désormeaux,
Division Manager, Corporate Services provided a presentation overview of the2015
Budget. (Held on file with the Chief Executive Officer)
Key highlights:
Staff focused on two priorities,
while staying within the funding envelope allocated by City Council:
- Minimizing the impact of the
changes on direct service to the customer;
- Dealing with non-discretionary
costs associated with maintaining existing services.
Staff is seeking to support key Board
approved strategic and facilities priorities, including the advancement of
RFID in six locations and beginning to address growth needs in the South
Urban area of Ottawa. In order to accommodate the on-going $250K impact to
OPL’s operating budget, staff is recommending reducing the amounts being
permanently transferred from capital to operating, to offset the costs as
shown in the report.
In response to a question
from Trustee Sweet regarding the impact of the conversion of the Orléans
Branch rather than the St-Laurent Branch, Ms. Désormeaux reported that RFID
projects consist of three primary costs: technology, including whether there
is a sorter, smart bins, etc.; capital fit-up costs in order to ensure the
space can physically allow for that equipment to be installed; and finally;
training required for staff to become more familiar both with technology but
also with the service philosophy.
With respect to the
conversion, Ms. Désormeaux described that St-Laurent and Orléans are
essentially the same size and the cost would relatively net out for both
branches. They would accommodate the same kind of technology but have
different fit-up requirements and different staffing structure. Ms.
Désormeaux explained that the Orléans branch has significantly a higher
number of circulation assistants and when the technology is rolled out, there
will be staff efficiencies to be had. She pointed out that that was how they
were able to grow the staffing structure at the Beaverbrook branch by reaping
the savings from the other branches that had converted.
In terms of cost, Ms.
Désormeaux began by saying that some analysis was done on staffing cost in
terms of what structure would be put in place in these branches. By
converting the Orléans branch, they would see a savings of $100,000 on the
compensation cost. Ms. Désormeaux stated that this being a late budget in the
2015 cycle, only half a year would be impacted; of that $100,000 savings
would be cut in half towards the impact of Pay Equity. Ms. Désormeaux
advised that St-Laurent would likely be converted within the next two years
and it is anticipated that all of the RFID’s in all of the locations will be
accomplished by the end of 2017. She said that they have not had any
additional funding from the City to offset the cost of implementing this
technology and by self-funding, it allows OPL to harvest the savings into
those priorities area. Last year, it was the re-opening of the Beaverbrook
Branch, going from 11 FTE’s.
Trustee Wilkinson posed a
question related to the $2.3 million dollars in the budget by asking where
the adjustments in the report were. Ms. Désormeaux indicated that part of the
$2.3 million dollars in retroactivity costs will be paid through the
depletion of the library reserves, flowing through operating. It is anticipated
that there will be deficit at the end the year.
In response to further
questions posed by Trustee Wilkinson on whether there is money in the budget
to pay the $2.3 million dollars and whether the $1.5 million dollars will be
the first charge against next year’s budget, Ms. Désormeaux explained that at
the end of the year when there is a deficit situation, practice is to go
directly to the reserves to offset that deficit, which in this case is $1.5
million dollars. She pointed out that there is constant dialogue with
colleagues at the City in terms of the balance of the retroactivity to see if
there are corporate funds that can be used. She noted that depending on the
efficiencies for 2015, the operating deficit may be less than anticipated
because there are FTE positions that have yet be filled. Ms. Gorton,
Financial Services added that the total cost of the Pay Equity decision should
be known in the middle of the summer; which will be a one-time impact on
controllable cost, that flows through operating. The $2.3 million dollars is
a maximum estimate that could be lower. Ms. Gorton advised that discussions
have been held with Marian Simulik, City Treasurer for funding for unforeseen
opportunities and options will be looked at in the third quarter. She added
that the base budget has been adjusted with the new Pay Equity salary
schedules.
In response to an
inconsistency on page four of the report posed by Trustee Begg, the following
will be implemented in the minutes :
Direction to staff:
The description in the
second bullet of section 1 a) of the report should appropriately read:
·
Reducing
the amounts required for technology licenses equipment/lifecycle and
maintenance/hosting fees.
The Board heard from the
following delegation:
·
Linda
Hoad*, representing the community group Rosemount Expansion and Development
(READ) spoke to the renewal of Rosemount branch being consistently and
continuously on the OPL’s capital facilities priority list since first
approved in 2012, and reconfirmed in the 2013 and 2014 budgets. She asked
that Rosemount remain the highest branch renewal priority; that it be pursued
in tandem with the work for a new central library, not in competition with,
and that all facilities development be based on a integrated and holistic
approach. Ms. Hoad advised that READ would like to assist with the Rosemount
Branch redevelopment and expansion.
Trustee Wilkinson commented
that the Rosemount elevator is scheduled for a modernization/retrofit of approximately
$255,000.
Correspondence was also
received from the following individual:
·
Mr.
Mike Pyndus*
[ *Individuals / groups marked
with an asterisk above either provided comments in writing or by email; all
submissions are held on file with the CEO.]
There
being no further discussion, Chair
Tierney thanked the CEO, Ms. Désormeaux and her team. The report recommendations
were put before the Board and were CARRIED, as presented.
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