City asked to pony up $123,775 to cover cost of EDC downsizing

Saving money sometimes comes at a price.

That appears to be the case with Sault Ste. Marie Economic Development Corp. (EDC).

Last year, the city slashed its EDC funding by $444,656.

Last year's downsizing costs were covered by the EDC.

Now, City Council is being asked to pony up $123,775 toward the EDC's 2018 restructuring costs.

Al Horsman, the city's chief administrative officer, will ask councillors on Monday night to authorize spending of $123,775 to cover termination costs incurred this year.

The EDC has access to $174,615 in reserve funds, but Horsman advises against spending the EDC's own reserves.

"Utilizing SSMEDC reserves for the 2018 termination costs would deplete the reserves to the level that SSMEDC would not be able to leverage other opportunities or mitigate additional unforeseen items," Horsman says.

Completely irrelevant SooToday factoid

The City of Sault Ste. Marie takes in so much of your cash it needs armoured trucks to haul it to the bank.

City Council will be asked Monday to sign a five-year agreement with Brinks Canada Ltd. to service four pickup locations on a five-day-a-week basis.

The contract is worth $151,000 a year plus HST.

"It has been determined that Brinks Canada Ltd. is the sole local provider with this capability," says Tim Gowans, the city's manager of purchasing.

"Brinks Canada Ltd. is the incumbent and has been successfully and efficiently providing this service to the city for years," Gowans says in a report to Mayor Provenzano and city councillors.

This year's $151,000 expenditure will be $7,000 less than what the city paid Brinks last year.

Monday's City Council meeting will be livestreamed on SooToday starting at 4:30 p.m. on Monday.