Correspondence: Greater Victoria Public Library – Juan de Fuca Branch Major Asset Maintenance (JF MAM) Reserve

Major Asset Maintenance Reserve - Planned Projects from Trust Fund

Juan de Fuca Branch Library (JF MAM)

Planned projects and expenditures

Total Expenditures | | | $ 35,041 | $ 7,980 | $ 88,554 | $ 214,000 | $ 40,000 | $ 90,000 | $ 45,000 | $ 90,000 | $ 85,000 | $ 340,000

Approved Budget | | | $ 44,980 | $ 88,000 | $ 214,000 | | | | | | |

Variance - Carry forward to future years | | | $ 9,939 | $ 80,020 | $ 125,446 | | | | | | |

Note on variance:

1. Meeting room walls and door project ($12,000) no longer required. Roof envelope ($4,000) rolled into larger upgrade in 2017. Outer automatic door replacement came in $12,000 under budget. Carpet replacement project expanded and deferred to 2016. Exterior patch and paint project deferred to 2017.
2. Roof envelope and flashing deferred to 2017.

Fund Balances

---

Memo – JF MAM Reserve

Date: November 3, 2016

To: Mayor Young and Council, City of Langford

CC: Jim Bowden, CAO (Langford); Steve Ternent, Treasurer (Langford); Lanny Seaton, Councilor Representative on GVPL Board; Maureen Sawa, CEO (GVPL); Donna Phillips, Director, Finance and Facilities (GVPL)

From: Kevin Murdoch, Chair GVPL Board

Subject: Juan de Fuca Branch Major Asset Maintenance ("JF MAM") Reserve

This memo provides information on our understanding on the arrangement in place between GVPL, the building owners and West Shore Parks and Recreation Society ("WSPRS").

Attachment: Refer to expired agreement between GVPL Board and WSPRS – January 1, 2011 to December 31, 2013 ("JDF Agreement").

Recommendations

THAT the Councils for the Cities of Langford and Colwood, and the Districts of Highlands and Metchosin direct Municipal staff to work with GVPL staff in development of an agreement between the Library Board and the West Shore Municipalities, which outlines the terms of the JF MAM trust fund administration and building maintenance role provided by GVPL.

Background

A JF MAM Reserve was established in 2013 to fund major building component replacement of the existing Juan de Fuca Branch building. As agreed and confirmed with our auditor, KPMG, GVPL acts as administrator of the MAM Reserve fund and holds the funds in trust on behalf of the building owners. According to the Library Operating Agreement, the branch portion of building maintenance costs are the responsibility of the Municipality as part of fulfilling its obligation to provide branch premises.

Municipal contributions to the trust fund have been included in GVPL’s Provisional Budget request on page 4. Contributions to the reserve are split between branch (80%) and administrative space (20%). The contributions for the branch portion are paid by the West Shore Municipalities in accordance with each of their share of the GVPL budget, which is based on property assessment and population.

Accounting Treatment

The WSPRS, in consultation with GVPL, develops and updates a multi-year project plan. GVPL forwards this plan to West Shore Municipalities for approval, along with the library provisional budget in October. Municipal contributions to the reserve fund are included in the GVPL’s Provisional Budget request.

KPMG has confirmed that the trust fund and transactions of the trust fund belong to the building owners. GVPL, as trust fund administrator, notifies the Treasurers of the Municipalities at year end of all transactions incurred in the fund and the fund balance as at December 31st. Municipalities record their proportional share of the trust fund expenditures (capital and/or operating), trust fund contributions, and fund balance in their financial records. GVPL reports these amounts to Treasurers by January 15th following the year end.

Agreements

There is no formal agreement between the GVPL Board and West Shore municipalities which outlines the terms of the trust fund. According to the Library Operating Agreement ("LOA"), municipalities may enter into agreements with building maintenance service providers to fulfill their obligations to provide a branch. Upon renewal of the LOA on January 1, 2017, it will be proposed that a section be added to clarify that the Board may enter into other agreements with Municipalities from time to time for the purposes of expanding on the responsibilities of parties and specific branch arrangements, such as those related to building maintenance, as long as they do not contravene the LOA.

GVPL received a request from WSPRS to renew the JDF Agreement between the GVPL Board and WSPRS which expired on December 31, 2013. There is overlap between the LOA and the JDF Agreement. Further, the proposed clarification of roles in the LOA may prevent the Board from entering into direct agreements with building maintenance service providers for branch premises provided by Municipalities. We recommended that a new branch-specific agreement be drafted in 2017, after the LOA has been renewed, which outlines the terms of the JF MAM trust fund administration and building maintenance role that GVPL provides to the building owners.

---

Agreement — GVPLB and West Shore Parks and Recreation Society (2011–2013)

THIS AGREEMENT MADE THIS 14TH DAY OF December, 2011.

BETWEEN:

GREATER VICTORIA PUBLIC LIBRARY BOARD
(hereinafter called the Library Board)

OF THE FIRST PART

AND:

WEST SHORE PARKS AND RECREATION SOCIETY
(hereinafter called the Society)

OF THE SECOND PART

WHEREAS:
The parties to this agreement wish to enter into an agreement whereby the Society will provide maintenance service for the Juan de Fuca Branch Library, and the Library Board will reimburse the Society Board for those services. The parties recognize the Library Operating Agreement, signed and dated January 1, 2009 as the basis for the cost sharing arrangement billed back to the Juan de Fuca Branch owners, namely the municipalities of Colwood, Highlands, Langford and Metchosin.

TERM:
This agreement will be in force from the day on which it is signed by the Library Board and the Society and will be in force from January 1, 2011 until December 31, 2013.

1. The Society will:

a) keep the premises in good and substantial repair and condition including:

i. Regular maintenance and necessary repair or replacement of the heating and cooling plant, plumbing and plumbing fixtures, inside and outside lighting, structural interior fixtures including doors, handrails, ceilings, book-return chutes and other integral building features, external structures including roof, windows, doors, outside painting or varnishing, sidewalks, parking lots, and ground structures including arbours and sculptures.

ii. Snow and ice removal from the parking lot and sidewalks;

iii. Grounds and sprinkler system

iv. Provision and maintenance of bicycle racks and benches;

v. Maintenance, repair, and replacement of security alarms system;

vi. Provide insurance on the building but not the contents.

b) Reimburse the Library Board for the costs of feasibility studies and project management requested by that Municipality in connection with the purchase, lease, construction, alteration, or relocation of a branch provided by that Municipality.

c) Provide project maintenance at the request of the Library Board on a per project cost basis;

d) Provide emergency and demand maintenance on a per call basis.

2. The Library Board will:

a) In consideration of the performance of the Society, or the agreements herein set forth in sub-paragraph 1 (a) (i, ii, iii, iv), pay to the Society a fee that represents the labour costs in accordance with the current CUPE agreement and the current cost of material and services. Any concerns regarding the regular maintenance and repair provided by the Society will be addressed early in the year with the appropriate Library Staff.

b) In consideration of the performance of the Society, or the agreements herein set forth in sub-paragraph 1 (c) pay to the Society the cost including:

i. Labour in accordance with the current CUPE agreement,

ii. Materials including tax,

iii. Any non-Society service required, bill to be provided.

c) In consideration of the performance of the Society, or the agreements herein set forth in sub-paragraph 1 (d) pay to the Society the cost including:

i. Labour where a minimum call-out equals 2.0 hours in accordance with the current CUPE agreement, plus HST/GST,

ii. Materials including tax,

iii. Any non-Society service required, bills to be provided.

d) In consideration of the performance of the Society or the Agreements herein set forth in sub-paragraph 1 (a) (vi), the Library Board will reimburse to the Society the cost of insuring the building as established annually by the Society's insurance broker and invoiced in June.

e) In consideration of the performance of the Society, the Library Board will reimburse the Society the cost of hydro and water as metered. Hydro and water are to be invoiced in June each year for the December to May use, and in December each year for the June to November use.

f) In consideration of the performance of the Society, or the agreements herein set forth in sub-paragraph 1a) v), the Library Board will pay to the Society the actual costs of alarm monitoring on a monthly basis.

IN WITNESS WHEREOF the parties have executed these presents as of the day and year first above written.

THE WEST SHORE PARKS & RECREATION SOCIETY
by its authorized signatories:

Name: ___________________________

Name: Wade Davis

Date: December 14/2011

GREATER VICTORIA PUBLIC LIBRARY BOARD
by its authorized signatories:

Name: ___________________________

Name: ___________________________

Date: December 14 2011

[End of extracted pages 1–8 content]