HomeMy WebLinkAboutFinance & Corp - 2004-09-13 SFINANCE & CORPORATE SERVICES COMMITTEE MINUTES
SEPTEMBER 13~ 2004
CITY OF KITCHENER
The Finance and Corporate Services Committee met in special session this date, commencing at 7:05
p.m.
Present:
Chair - Councillor B. Vrbanovic
Mayor C. Zehr and Councillors J. Smola, J. Gazzola and G. Lorentz., M. Galloway,
and C. Weylie.
Staff:
C. Ladd, Chief Administrator
P. Houston, General Manager, Financial Services & City Treasurer
G. Stewart, General Manager, Development & Technical Services
F. Pizzuto, General Manager, Community Services & Economic Development
R. Browning, Interim General Manager, Strategic Services
R. Pitfield, Director, Corporate Communications and Marketing
D. Gilchrist, Committee Administrator
CSD-04-147 - THE KITCHENER PUBLIC LIBRARY PROJECT
- NEW MAIN BRANCH AND SITE SELECTION
The Committee was in receipt of Community Services Department report CSD-04-147, dated
September 1, 2004, with respect to the proposal for a new central library for the Kitchener
Public Library. Along with this report, the Committee was in receipt of the following reports:
Kitchener Public Library Central Library Project Business Case, dated September 8, 2004,
Impact Analysis and Due Diligence Review of New Main Branch Kitchener Public Library
prepared by Adventus Research, dated September 8, 2004, and Centre Block Site Selection
Justification for KPL New Main Library, Centre Block Steering Committee, dated September 1,
2004.
Councillor B. Vrbanovic thanked those in the gallery for attending this evening. He reminded all
delegations that each would be permitted 5 minutes for their presentation to the Committee.
Presentations will be made in the following order:
· Mr. B. Isaac, Chair of the Kitchener Public Library Board, and Ms. S. Lewis, CEO, Kitchener
Public Library will present the Business Case,
· delegations in support of the Business Case,
· Mr. G. Svoboda, Adventus Research, to present the Impact Analysis and Due Diligence
Review,
· Messrs. Pottkamper, Robson and Robinson will present the report of the Centre Block
Steering Committee,
· unregistered delegations.
Mr. F. Pizzuto advised the Committee the reports are being tabled this evening; however, no
approvals are being sought at this time. Staff wish to come before Council for certain
approvals on October 25, 2004. It is anticipated that over the next 6 weeks, Council and the
public will have an opportunity to review and discuss the material being presented this evening.
Mr. B. Isaac, Chair, Kitchener Public Library Board, tabled the Business Case for the Kitchener
Public Library Central Library Project, dated September 8, 2004. He advised the KPL Board
and staff have worked for over a year and a half preparing this Business Case, during which
time they have sought the advice of both consultants and residents; the result being the
identification of the need for a new central library.
Ms. S. Lewis, CEO, Kitchener Public Library, presented the Business Case. She advised
further expansion of the current main branch of the KPL is not possible. The main branch is
deficient in 11 of the 16 criteria established by Provincial, National and International Library
Associations; including limited accessibility, insufficient technology infrastructure, and
inadequate entrance and exit access and security.
Ms. Lewis stated one of the main goals of a public library system is to teach life long learning to
children, yet the space in the children's area of the library is inadequate, and resources must
be located in places the children cannot see or reach. The lack of space also discourages the
use of the library by young adults. Ms. Lewis continued by advising a new central library would
be a centre for technology, and internet access for those residents who would benefit from its
use but cannot afford their own. In addition, parking would be part of the project, addressing
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- NEW MAIN BRANCH AND SITE SELECTION (CONT'D)
one of the complaints of the current main library. She noted the current library system is
stretched to its limits and cannot support further branches.
With respect to the choice of Centre Block as the location for the central library, Ms. Lewis
advised the site is close to shopping and services, is large enough for future expansion, can
provide adequate on-site parking, is close to public transit, and neighbours other community
facilities.
Ms. Lewis then referred to the Capital Cost Estimates outlined in page 26 of the Business
Case, noting these costs are based on the demolition of the Forsyth building. She also referred
to the funding sources outlined on page 27 of the Business Case, and the 1-time benefits of
construction. In conclusion, Ms. Lewis stated the residents of Kitchener deserve a library that
meets their needs, and the proposed central library would be a vibrant public resource in a
vibrant downtown.
Councillor Galloway requested Ms. Lewis provide Council with information on how the total
library system, a main branch and all the branch libraries, compares with provincial standards.
Councillor Gazzola questioned whether a new central library or the Centre Block location is of
prime importance to the KPL. Ms. Lewis responded that location is only one of the many
factors necessary to meet the needs of library users. Other factors include access to public
transit, the ability for future expansion, and a location close to other agencies with which the
library can partner.
Councillor Gazzola requested a copy of the list of the 16 criteria. He then questioned which
three are the most important impacts of the current main library.
Ms. Lewis responded the current main library does not meet the needs of the community, and
has not kept up with the population growth; offering the example of a meeting room which is
now being used for storage, and the story room in the children's area which has had to be put
to another use. She stated one of the biggest problems is limited space to display the
collection in a user-friendly way.
Councillor Gazzola questioned the patronage in the library system and the split between the
main library and branch libraries. Ms. Lewis responded there are 86,000 patrons in the library
system, and a definitive split between users of the branches and the main library is not
possible, as many patrons use both due to the fact that a main library has resources not
available at branch libraries.
Referring to a statement previously made by Ms. Lewis that all residents should be within 15
minutes driving distance of a branch library, Councillor Gazzola requested statistics as to what
percentage of Kitchener residents meet this criteria. He also requested information from Ms.
Lewis on what percentage of the central library that functions as a branch library for Downtown
residents.
Councillor Gazzola then questioned whether books could be warehoused at another location,
and Ms. Lewis responded that they could; however, this would not address the needs identified
in the Business Case. Ms. Lewis explained that recent technology changes have shown there
is still a need for public libraries. The KPL would like to start with a library structure that could
have two more floors added on top of the initial structure.
Mayor Zehr questioned what the community could hope to gain from a new central library, and
what would be the outcome of not building one.
Ms. Lewis responded the benefits to the community would include such things as providing
young adults the facilities they need, a technological centre for individuals and business, a
contribution to the overall economic well being of the community, and the provision of
opportunity for life long learning. However, if a new central library is not constructed, the City
will be dealing with an ageing facility that hampers the ability to meet the community's growing
needs.
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- NEW MAIN BRANCH AND SITE SELECTION (CONT'D)
Councillor G. Lorentz questioned what partnerships the KPL will be pursuing. Ms. Lewis
responded the KPL will be investigating partnerships with the Waterloo Public Library as well as
the universities. The investigation will also include examining the needs of all potential partners
and determining how these needs can be meet.
Councillor Lorentz noted the City of Waterloo is also looking for a new central library, and
questioned Ms. Lewis opinion as to whether one new central library for both municipalities is
sensible. Ms. Lewis responded she could not speak for the City of Waterloo; however, her
experience is that separate libraries, such as exists in Kitchener and Waterloo, is the norm.
Councillor Gazzola stated he would like to see the pursuit of shared library services included in
the Committee's resolution.
Councillor Gazzola then questioned whether floor space in branch libraries is part of the 0.55
square foot per person criteria. Ms. Lewis responded that the 0.55 square foot per person
criteria is for a central library only, and includes administration space and specialized
collections only available at central libraries. This criteria also assumes there is a strong
community library system, otherwise the need for floor space would be two to three times as
much.
Councillor Galloway requested details as to the total number of people serviced by each branch
library. He then questioned how the Business Case would change if a partnership with the City
of Waterloo would be possible. He noted that in January 2003, this Council and the Library
Board undertook initiatives to move this project forward, and part of the direction given at that
time was to commence discussions with the Waterloo Public Library. Councillor Galloway
questioned what is being done at this time to ensure discussions with Waterloo continue. Ms.
Lewis responded the KPL Board is making a commitment to talk with potential partners,
including the Waterloo Public Library, the universities, and other libraries in the Region.
Councillor Galloway stated that at the end of this meeting he would like to put forward a motion
to ensure discussion with Waterloo in this regard moves forward.
Councillor Vrbanovic asked for Ms. Lewis' opinion on how advancements in technology relate
to the proposed new central library. Ms. Lewis responded that technology plays an expanding
role in the way libraries provide services. Technologies provide new additional tools for
libraries and library patrons, but they do not replace the traditional tools. Further, as technology
advances it will occupy more space in libraries. Also, technology provides the potential for
providing other municipal services, and the library can provide kiosks where people can obtain
information about City services.
Councillor Vrbanovic questioned the choice of Centre Block as the location for the new central
library. Ms. Lewis stated it is important to remember that a number of consultants examined
nine sites in terms of the library's needs. Each assessment evaluated the Centre Block as the
best site. As an added bonus, building a new central library on the Centre Block will contribute
to downtown revitalization, but this is not the main reason for this selection of this site.
Councillor Vrbanovic next questioned the Operating Budget of $1.5M, and whether Ms. Lewis
has contemplated how that Budget will be address. Ms. Lewis stated the new central library
will have an additional 47,000 square feet, and more staff will be required. Additional staffing
will also be required to service a larger population, which costs would have to be
accommodated by the municipality in any event. Ms. Lewis stated she appreciates this is a
significant increase in the operating budget; however, it is necessary in order to properly serve
the needs of a growing population.
Councillor Vrbanovic next questioned the inclusion of a 150 parking spaces in the new library
project, when a need for 430 has been identified in the report. Ms. Lewis noted that there are
only 44 spaces available at the current library, so 150 spaces is a significant increase. Further,
there are other parking lots in the area. Since libraries have peak times in the evenings and on
weekends, there should be space available in other nearby parking lots. There is also the
potential to add underground parking.
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Councillor Vrbanovic stated his belief that a joint library is in the best interest of both Kitchener
and Waterloo. Collectively both communities would have the ability to provide the greatest
number of branches, and to maximize capital and operating dollars. Ms. Lewis stated that she
could not respond to Councillor Vrbanovic's comments without first talking to her colleagues in
Waterloo, and she will be touring the Waterloo library next week.
Councillor Vrbanovic concluded his questions by asking whether the library administration
could be located in another building. Ms. Lewis responded that, as a new CEO, it is important
to talk to staff throughout the main branch, and to be visible. Further, her staff works in teams
which would not be possible if administration staff is located elsewhere.
Miss V. Kampijan was the first delegation to speak in support of a new central library. She
advised of the importance of the library to her and other children, but noted the difficulty
children have because the books are located at a level where they cannot easily be seen or
reached.
Ms. S. Morgan noted the difficulties related to wheelchair accessibility in the current main
library, and advised the current lighting in the library is inadequate. Further, persons in
wheelchairs face the same difficulty as children with respect to the resources being on shelves
which are either too high or too Iow.
Ms. S. McGaughey spoke in support of a new central library on behalf of the community's
youth. Her main emphasis was on the lack of space in the current main branch, in the
homework centre, and the teen area generally.
Mr. A. Hook addressed the Committee stating that his opinion that the Duke Street portion of
Forsyth building should not be demolished, and if the building must be demolished, he
requested the Duke Street portion be preserved. Mr. Hook spoke highly of the Kitchener Public
Library system. He questioned why consideration was not being given to the Kaufman building
as a site for the new library.
Ms. M. Hasek spoke on behalf of the Victoria School Seniors' Centre. She spoke in support of
a new central library on the Centre Block, noting it would be close to the new Seniors'
Resource Centre, and would be well used by seniors. She stated that a new central library
must have parking and be accessible by public transit.
Ms. S. Dychuk, a downtown resident, spoke in support of a new central library on the Centre
Block, advising it would be a great location for families, giving the proximity to the Childrens'
Museum and other facilities.
Mr. M. Schreiter spoke to the Committee on behalf of the Community Safety & Crime
Prevention Council, who advised they are in support of the integration of youth services within
the library in Kitchener Centre. Libraries have always played a vital role in creating safe and
healthy downtowns. Further libraries are places that can play a crucial role in enabling young
people to partake in civic life, and including young people in libraries challenges them to plan
and develop with young people's needs and hopes in mind.
Mr. G. Svoboda of Adventus Research presented an overview of the Impact Analysis and Due
Diligence Review. The Report concludes: there is a need for a new, larger central library, and
the Centre Block site is the best overall choice for a downtown location for the new Kitchener
Public Library.
With respect to the economic impact of the new central library on Centre Block, Mr. Svoboda
advised that the total sustained economic impact is estimated at $49.8M in the first year of
operation, growing to $59.6M by year five. The sustained incremental economic impact is
estimated to be $20.3M in the first year, growing to $30M by year five. Of this, $1.6M is
attributable to staffing impacts and $18.TM-$28.4M to indirect visitor impacts.
Mr. Svoboda then advised of the economic impacts of library construction; with construction
costs of $47.35M, there will be a temporary increase in income in the province of $56.3M, of
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- NEW MAIN BRANCH AND SITE SELECTION (CONT'D)
which $33.6M would be retained in Waterloo Region. He then reviewed the economic impacts
of the inclusion of rental residences as part of the development of the Centre Block.
Mr. Svoboda spoke of the five recommendations in his report:
That the City of Kitchener move forward with its planning and approval process, leading
to a new Kitchener Public Library on the Centre Block site. Consideration should be
given to preserving existing infrastructure and building retention.
2. That the overall design for the Centre Block site include rental residential use.
That serious consideration be given to selective retail use on the site. Suggestions
include a bookstore (shown to be complementary to libraries), and restaurants.
4. That sufficient parking for the library and residential units be included within the design.
In order for the new library to maximize its positive impact to the community, that it work
closely with downtown partners in the private and educational sectors, to ensure that
services are congruent with the needs of these key partners, and that their marketing
outreach programs reflects that.
Mr. Svoboda advised his review did not take into consideration the impact of branch libraries, or
a joint library service with Waterloo.
Councillor J. Gazzola questioned the incremental benefits, and was advised that 72,000
patrons will attend at the new central library in the first year, and of those approximately 75%
will each spend $600 per year in the downtown core.
When questioned, Mr. Svoboda advised he did not interview any current library users for his
report, but used a model. He noted he would have had to interview a statistically significant
number of users for the results to be of value. He also noted that his mandate was to review
the existing Due Diligence. He advised a study undertaken in British Columbia in 1994
calculated the economic benefit profile to be $600, and the economic data was built on that
model.
Several member of the Committee questioned the model used by Adventus Research, noting
that any local interviews conducted were all people who are from the downtown, and that the
analysis should deal with local characteristics. Mr. Pizzuto advised that the Adventus Report
falls within the Terms of Reference provided to the consultant; however, there is additional
work to be done. Councillor Galloway questioned whether the analysis should take a more
local approach, and a closer, local economic analysis be obtained.
Mayor Zehr stated his surprise at the $600 figure, suggesting it is quite Iow for a full year of
spending. He noted there are challenges to this report; however, it is a theoretical model. He
stated it is difficult to obtain accurate data as we cannot go forward in time.
Messrs. H. Pottkamper, C. Robson and R. Robinson, presented the report of the Centre Block
Steering Committee. They advised that each of them is in strong support of the reports being
presented this evening.
Mr. Robson advised the Committee that initially the Centre Block Steering Committee had not
contemplated a library on the Centre Block. Subsequently, it became evident there is need for
a larger central library facility for the City of Kitchener. Through review of available data, the
Centre Block Steering Committee learned that libraries are good for downtowns, as they draw
people to them all the hours they are open. A library is an economic catalyst to revitalizing the
downtown. A vibrant downtown requires there be people there at all times, not just business
people who are in the downtown during business hours only. Mr. Robson stated
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a library is essential to attract developers who will bring residential development to the
downtown. In conclusion, Mr. Robson stated the Centre Block is the right location for a library,
as each benefits from the other, and the downtown benefits from both. Residential
development on the Centre Block should be registered as a condominium, so it can be rented
initially then sold once the market improves.
Mr. R. Robinson addressed the Committee advising the Centre Block Steering Committee has
spent a lot of time meeting with developers, some of whom have confirmed their thoughts and
ideas in writing. He stated his belief that it is necessary to have the Kitchener Public Library
locate on the Centre Block site in order to be a catalyst for residential development, along with
small-scale retail. He stated a design built contract is possible, but successful discussions with
the development industry are required, and these discussions must be outside the usual
request for proposal process. Mr. Robinson made some suggestions as to what might take
place in this regard. He stated it is likely the City will have to contribute the land, and perhaps
some funds for municipal parking.
Mr. Pottkamper addressed the Committee stating he supports the comments made this
evening concerning a joint library service for Kitchener and Waterloo, and he challenged both
municipal Councils and Library Boards to address this matter. However, he did note there
must be strict timelines in place. If there is to be a new central library on Centre Block there is
a lot of work to be completed to engage the development industry. He recommended that all
negotiations between the two municipalities for a joint library system be concluded in 6-8
months. If an agreement cannot be reached within that time, the City of Kitchener must be
prepared to move forward on its own.
Mr. Pottkamper then stated that in order to deal with the development industry, the City must
go forward with the lowest possible cost for the library. He stated the cost to demolish the
Forsyth building should not be included as part of the cost of constructing a new library, as the
City will incur that cost anyway. Further he noted the City recoups all of its GST. Mr.
Pottkamper pointed out the costs for the library's collection are not part of the construction
costs and should not be included as such.
Mr. Pottkamper concluded by making the following requests:
· the City's endorsement of the documents presented subject to his prior comments,
· the commitment of Council to locate the new Kitchener Public Library on Centre Block,
· the commitment of $32.5M from the City's investment fund,
· without the forgoing commitments it will not be possible to make a viable approach to the
development industry for the development of Centre Block,
· Council's endorsement of the development of a process that meets with the approval of the
integrity advisor that will permit one on one negotiations with a short listed group or single
member of the development industry with safeguards built in to ensure that costs are
competitive;
· that the demolition of the Forsyth building be paid from other funds;
· that any decision to immediately fund the acquisition of new collections for a new central
library be deferred until there is a better sense of the other more fundamental costs of
actually building the library. It may be necessary to recognize that some of these additional
costs may have to be deferred or dealt with by long term fund raising;
· a decision on the part of the City to go forward now to the development industry to
determine if a first rate company can be attracted to develop Centre Block with the library
and with residential housing;
· the City's endorsement that this should be a municipally owned library to ensure that the
lower costs over the long term accrued to the City;
· that appropriate direction be given to the Library Board to seek mutually satisfactory
arrangements for joint uses of the new facility, subject to Waterloo Council issuing
reciprocal direction to its own Library Board;
· direction to the Library Board should include a specific time frame for conclusion of
discussions, with the suggested time frame being 6-8 months and that there should be
regular updating requirements.
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Mr. Pottkamper stated that if the City cannot interest a developer in making this proposal work
within budget and funding raising limits, the City may have no alternative but to set the project
aside at this time.
Councillor Vrbanovic thanked Messrs. Robson, Robinson and Pottkamper for their
presentation, acknowledging their lengthy volunteer commitment to helping Council and the
community with respect to the Centre Block site.
Upon questioning, Mr. Pottkamper advised the Steering Committee's recommendation is to
attract a developer to build the whole project on the basis that the City will own the library. The
developer would own and rent the residential units until such time that the market allows them
to be sold.
Councillor Gazzola questioned whether Council could have more details on the thought of
those developers contacted by the Centre Block Steering Committee, and Mr. Robson advised
he would make this material available to Council over the next few weeks.
Councillor Gazzola then questioned whether $32.5M is an affordable level for a new library.
Mr. Robinson responded that $32.5M should cover costs of constructing the library and surface
parking, but would not pay for anything inside the building.
Councillor Gazzola questioned whether the delegation thought it is reasonable to successfully
negotiate a joint library system for Kitchener and Waterloo. Mr. Pottkamper responded he
believes a joint library system is in the best interest of the citizens of both cities. The challenge
is to find a solution that benefits both.
Mayor Zehr questioned whether the Centre Block Steering Committee would be able to present
Council with a structure as to how to attract private sector partners for this development. Mr.
Pottkamper stated be thinks it is possible. When questioned by Mayor Zehr as to what
financial contribution the City would likely have to make to this project, Mr. Robson replied the
City would probably have to contribute more than the land. Mr. Robson asked the Committee
to see the building of a new central library and development of the Centre Block as part of a
bigger picture.
Mr. M. Schreiter addressed the Committee on behalf of the Kitchener Downtown Business
Association (KDBA), stating the relocation of the Kitchener Public Library centre branch to the
Centre Block would be a major contributor to the social, cultural and economic well being of the
Downtown. Community leaders believe the library must be forward thinking in creating their
fund development strategy that will significantly contribute to the financial viability of the project
beyond the City's possible commitment. Member of the KDBA have been invited to contribute
to this campaign and on September 9, 2004 unanimously passed a resolution to contribute up
to $30,000 to our $100,000 private member campaign. The creation of an innovative fund
development strategy will bring forward the community leaders and businesses that can add
significant partnerships to this relocation project.
Mr. L. Fusco, Wilfrid Laurier University (WLU) School of Social Work, was in attendance in
support of the proposal to build a new central library on the Centre Block site. He advised WLU
is willing to work in partnership with the Kitchener Public Library. The universities have
confidence in the City of Kitchener, are excited that the core is being revitalized, and he is
confident that fund raising goals can be met.
Mr. Fusco noted a separate process has determined the need for a new library. He
acknowledged the possibility of a partnership between the Cities of Waterloo and Kitchener for
a joint library service, but cautioned the establishment of a new central library should not be
delayed for this purpose. He stated the School of Social Work would partners with the
Kitchener Public Library, would house their collection in that building, and would provide an
academic librarian. The proposed library would be across the street, and would be a good
neighbour. He also advised that they will find other ways to partner with the library.
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Mr. S. Scadrin-Waddles, Theatre and Co., spoke of the value of a good public library system,
being one of the reasons he moved to this area. He spoke of the valuable cultural impact of
libraries, which shows a community that is interested in ideas. He stated the City of Kitchener
should have a strong library, and it should be located in the Downtown.
Following the delegations, the Committee members spoke of the need to discuss the possibility
of a joint library system with the City of Waterloo. Some members spoke intensely about the
need for political will before a joint library system can be achieved. It was suggested there is a
need for both Council's to meet to debate and discuss the potential for joint library services.
Mayor Zehr stated that he did not want this Committee to consider the recommendations in
Community Services Department report CSD-04-147 this date, and put forward a three part
motion which would require the Mayor and CAO, and on invitation the CEO of the Kitchener
Public Library, to meet with their counterparts in the City of Waterloo to discuss the potential for
a joint library services. Upon acceptance of a friendly amendment put forward by Councillor M.
Galloway, Mayor Zehr agreed to change his motion to include the fact that the one on one
discussions are intended to lead to a joint meeting of the two Municipal Councils and joint
meeting of the two Library Boards. The motion put forward by Mayor Zehr also encourages
public input. The results of all discussion required in his motion are to be presented at the
October 25, 2004 Council meeting.
Councillor Smola questioned whether this Council has yet decided on the demolition of the
Forsyth building, and was advised the matter is still to be decided and will be as part of this
process.
A recorded vote on this motion was requested.
On motion by Mayor C. Zehr -
it was resolved:
"That the Kitchener Public Library Central Library Project Business Case, the Economic
and Community Impact Analysis of a new Kitchener Public Library Main Branch and the
Site Selection Justification for KPL New Main Library reports be received; and,
That the Kitchener Public Library consult with the public on their proposal for a new
central library, and report the results of those consultations at the October 25, 2004
Council meeting; and,
That the Centre Block Steering Committee develop a proposed structure to attract a
private sector partner(s) to participate in the construction of a new central library and/or
development on the remainder of the Centre Block site, to be presented at the October
25, 2004 Council meeting; and further,
That co-incident with the above, the City of Kitchener Mayor and Chief Administrative
Officer, and by request, the Chief Executive Officer of the Kitchener Public Library,
meet with their counterparts at the City of Waterloo, to request their serious
consideration of the creation of a joint, central library, with the intention that these
meetings will lead to a joint meeting of the two Municipal Councils, and potentially the
two library boards; with the results of the meetings between counterparts to be reported
at the October 25, 2004 Council meeting."
Carried Unanimously
Councillor B. Vrbanovic thanked the three groups who made presentations this evening for
their presentations and countless hours of work.
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2. ADJOURNMENT
On motion, the meeting adjourned at 10:30 p.m.
Dianne Gilchrist
Committee Administrator