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RFD- 3042 Bylaws   Item #   10. h.    
Regular Council Meeting Agenda
Meeting Date: 06/26/2017  
Title:    C-963-16 - Second and Third Reading - RCMP Facility Borrowing Bylaw - Goodwin
Department: Corporate Services  
Strategic Vision Element: This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan Related Goal: n/a

Request for Decision Summary
This report provides information about proposed borrowing for the RCMP facility in an amount not to exceed $18,000,000.
Proposed Motion
That second reading be given to Bylaw C-963-16 - RCMP Facility Borrowing Bylaw.
That third reading be given to Bylaw C-963-16 - RCMP Facility Borrowing Bylaw.
The City of Spruce Grove and the Town of Stony Plain will cooperate in the detailed business case, design process and construction of an integrated RCMP Facility with joint ownership between the two municipalities. The combined facility will facilitate increased efficiency and coordination of efforts between enforcement services partners.

The approved 2017-2019 Corporate Plan includes a capital initiative for a new RCMP facility with the City's share in the amount of $13,000,000. This capital initiative is budgeted to be funded with borrowing.
Council could direct administration to consider funding other than borrowing.
All advertising and public consultation of the borrowing bylaw will comply with the Municipal Government Act. The key dates pertaining to this borrowing bylaw are
as follows:
  • May 23: First reading of borrowing bylaw
  • May 26 and June 2: Borrowing bylaw advertised in the Examiner
  • June 3 to 17: Fifteen day petition period
  • June 26: Second and third reading of borrowing bylaw
  • June 27: Bylaw signed and comes into effect
  • July 27: Borrowing bylaw is valid if no application is made to the court to have the bylaw declared invalid.

The borrowing bylaw was advertised as required and no petition was received.
The timing of the borrowing bylaw could effect the construction schedule and cost of the roads. The Municipal Government Act requires that the borrowing bylaw is signed before construction starts.

The project is planned to be constructed from 2017 to 2019, subject to approvals from the municipalities, province and the RCMP. Funds would be borrowed when needed for progress payments on construction.
Construction of a new regional facility will provide more efficient service in an integrated building and operations.

Fiscal Impact
Financial Implications:
The borrowing bylaw provides for an amount not to exceed $18,000,000 which is 35% more than the approved budget. Allowing for a higher borrowing amount provides Council with options to change or not change the project budget when more cost information is available.

The scope and schedule of the RCMP facility is determined jointly with the Town of Stony Plain, Province and RCMP and so is especially uncertain. Once detailed design and the construction tender are complete the cost may be more than budgeted. If the cost is more than budget, the project would be brought to Council for consideration of the revised budget.

The borrowing bylaw must be approved before any construction work starts. Design work is already underway and borrowing is needed by year end to fund the design.

A credit facility has been negotiated with CIBC providing a facility loan up to $18,000,000. The credit facility is interest only until construction is complete and then a 25 year amortization period.
RCMP Borrowing Bylaw

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