March 3/04 Report

Committee Members Present: Ferguson (chair), Braden, Bruckler, Pearson, Collins (Powers - absent)

Also Present: Whitehead, Mitchell

Media: Puxley (Spec), Hughes (CFMU radio), Werner (Brabant), CH T.V. Jennifer ? and cameraman

5.1 Quarterly Status Report on Use of Policy #10 - Emergency Purchasing, and Policy #11 - Negotiations for the 4 th Quarter, 2003 (City Wide) (FCS03093(c))

5.2 Monthly Status Report of Tenders and Requests for Proposals for January, 2004 (City Wide) (FCS04023 )

7.1 Hamilton Utilities Corporation Credit Policy - Art Leitch/John Basilio
Basically the presentation was asking council to support Hamilton Hydro in lobbying the Ministry of Energy and OEB for fair regulation and system/process changes. They are presently facing a financial and credit risk crisis. Credit losses are well in excess of historic levels, and $6.3 million dollars will be written off because of the Stelco situation. Their report outlines HHI's proposal for policy changes (re security requirements from customers, losing a good payment history, refunds of security etc.). The "pre-paid meter" system has been very successful in Woodstock, and they are going to be piloting this in Hamilton.

Discussion:

Art Leitch - The price of electricity will be going up as of April 1, right now being at an artificial low. This will mean an average monthly increase of from $5 - $10 dollars for customers using under 750 kilowatts. Their website will convey a power-wise, conservation theme to customers.

Collins raised concerns about seniors who may have to sell their homes because of payment increases, citing the example of one elderly lady in his ward who is going to be charged even though she made a partial payment. He expressed support for HHI's proposed legal changes, and piloting of pre-paid meters, but asked how assistance can be given to people.

Leitch said that they were concerned as well, and would to see enhanced mechanisms in place to help. He suggested that this be considered in a broader debate. Their plan is to meet with city staff by April and come back with a report of alternatives and options to help customers facing financial hardships.

The committee unanimously carried Collins' motion to forward HHI's proposed legislative changes to council for endorsement. Ferguson added that Social and Public Health is to come back to council with a formula to subsidize all areas - bus fares, water, gas etc..

8.1(a) Employee Parking Policy (City Wide) (HUR03007(a))

8.1(b) Employee Parking Policy (City Wide) (HUR03007/PD03204/FCS03135)

(Note: This report was deferred pending the Accommodation report, which was considered by the Public Works Committee on February 2, 2004. Subsequently, these items were tabled by the Committee on February 18, 2004.)

B. EMPLOYEE PARKING

The issue of employee paid parking was brought to the forefront by amalgamation and by the relocation of city offices in the downtown core. City staff conducted a review of the situation and an employee survey, and after consideration of alternatives, proposed that employees obtain and pay for their own parking spaces, except for those using their vehicles 3 times per week or more for city business. (City councillors will retain their free parking spots, although this was not discussed at the meeting)

Their original report called for this to happen as of July 1, 2004, however in an amendment, they recommended that this be implemented effective January 1, 2005.

Reasons for recommending this option were:

a) savings to the City of $130,000.00 a year

b) no business reason for subsidizing employee parking

c) many employees would choose alternate methods of  commuting, thus freeing up parking spaces in the core for public parking, and supporting the City's Official Plan, the Downtown Transportation Master Plan, Vision 20/20 and the City's Strategic Plan

d) the provision for a discounted transit pass and the recommendation to explore other and cheaper forms of commuting

e) equity, fairness and overall morale

Of the employees surveyed, over 80% drive their own car to work, while about 5% use public transit. Approximately 36% live four to 10 kms from work. When asked about possible commuting options, a third said their car was the only feasible alternative, while the rest were willing to consider alternatives. (In this reporter's opinion a revitalized downtown would go a long way toward encouraging many to move back to the core, especially since they'll now have to pay for parking. While staff seems to be encouraging commuting alternatives, this doesn't seem to gel with the city's overall planning and budgeting initiatives.)

Discussion:

City staff wanted to be fair to people who have had parking privileges, giving them time to make other arrangements. Another issue is that of changing negotiated employment conditions.

Collins posed the question of grandfathering current privileges and what it would cost. He asked, "We've been told you can't take away bonuses. How will this go over?" He wanted to be recorded as opposed.

Staff member said that grandfathering wouldn't save anything the first year, and that it would take 10-15 years to see savings.

Braden felt that this should be implemented as of June or July, 2004, so that inequity would not have to go on until Christmas. "It's a touch issue."

Pearson asked if there was anything in collective agreements, and the answer was yes (ex. public health nurses).

The committee voted unanimously to receive 8.1 (a), but Collins and Braden were opposed to the amendment that recommended an implementation date of January 1, 2005.

8.2 Distribution of Private and Confidential Material (City Wide) (CL04001)

8.3 Report of the 2003 Remuneration and Expenses as Required Under Section 284 of the Municipal Act (City Wide) (FCS04041)

8.4 Councillors' Remuneration - Continuation of One-Third Tax Allowance (City Wide) (FCS04040)

8.5 Catholic Children's Aid Society - Building Loan Renewal (City Wide) (FCS04005)

8.6 Hamilton Conservation Authority - Loan Request for Lakeland Centre (City Wide) (FCS04029)

A motion was passed that the City of Hamilton provide a loan of up to $840,000 to the Hamilton Conservation Authority to fund the financing shorfall in the Lakeland Centre, payable of a period of 10 years and charged an interest rate of 4.92%.

Moneys have been confirmed from the Hamilton Waterfront Trust, Superbuild and the City of Hamilton 2002 Capital Grant totalling $1,625,000. There was little discussion save for a few questions such as who will operate the facilities (Conservation Authority is owner/operator for now). Mitchell raised a question concerning the annual levy of $5,000, and how it compares to the help we give other pools. Rinaldo said he would provide information on this.

8.7 Risk Management - Transit Rolling Stock Policy (FCS04027(a)) (Not e: This Report was requested by the Committee at its meeting held on February 18, 2004.)

The committee moved that the Insurance Policy for the term January 1, 2004 to January 1, 2005 be renewed through Frank Cowan Company Limited, converting coverage from Replacement Cost basis to Actual Cash Value basis, and reducing the deductible from $100,000 per occurrence to $50,000 per occurrence.

8.8 HECFI Operation Review Report

The company KPMG conducted a review of the operation and governance of HECFI, and submitted a report to a sub-committee consisting of DiIanni, Braden, Jackson and Ferguson. The following mandate was approved by the latter:

"The purpose of HECFI is to generate economic activity in the City of Hamilton while providing community benefits through th management of its facilities."

It was recommended and passed that this report be received by the Corporate Administration Committee, that the Purchase Order be increased by $10,000 from $85,000 to $95,000 in order that KPMG present an implementation plan re the operations and governance of HECFI, and that the additional funds required be charged to the HECFI Capital Projects Reserve Dept..

KPMG's report recommends that "if the city wants to provide cultural and entertainment events to the community and enjoy the economic benefits of a convention centre, the city and its citizens must be willing to accept the associated expenses". They stated that HECFI should be returned to its original position as an independent corporation, and urged the city to implement clear lines of accountability and responsibilities. The report does not recommend privatization of these facilities, but in fact, suggests a closer partnership between Tourism Hamilton and HECFI.

*It's interesting to note that the report found 3 major constraints in booking events at the Convention Centre, one of them being "lack of animation in the downtown core".  

Discussion:

Braden felt that $10,000 was "a bit rich, and inappropriate".

Whitehead raised questions about the fact that the report is a good one, but it should be discussed and debated before money is spent on an implementation plan. It's "putting the cart before the horse". "It's talking about wholesale change, and some information needs to be reconciled", he said, and he asked that the report be tabled.

Nobody picked up on his suggestions, and Collins made a motion that city staff explore privatization options and report back to the committee. Collins asked what timelines they were working with, and Ferguson replied that the community wants it resolved as soon as possible.

9.1 Memorandum from J. Rinaldo re: . Tax Deferral Agreement - Glendale Golf Course

The Board of Directors for Glendale has agreed to the following amendments to the existing tax deferral agreement with the City:

a) That the Club waive its right to any further deferrals beginning January1, 2001

b) That the Club agree to a repayment schedule of the balance of the tax deferrals outstanding as of Dec. 31, 2003 - being $792,564

c) That the City agree to reduce the amount currently outstanding by $106,552.48 in recognition that reassessment did not commence in Hamilton until 1975

d) That effective January 1, 2002 interest charges made to the outstanding account balance be effective only on the amount that was deferred according to the original terms of the agreement

Motion passed. Meeting adjourned.