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June 9/04 Report
Present: Murray Ferguson (chair), Chad Collins, Dave Braden, Phil Bruckler, Maria Pearson, Bill Kelly and Russ Powers
Also present: Terry Whitehead, Dave Mitchell, Brian McHattie, Larry DiIanni (briefly)
No changes to the agenda.
No declarations of interest.
Minutes were approved.
There was a delegation request, but I missed this.
5.1 - By-law to Appoint Authorized Signing Officers - carried. This by-law was amended to provide for the appointment of Salter Hayden as a Deputy Clerk for the City.
Public Meeting
6.1 New Consolidated Development Charges By-law Policies
** (Had to rely on notes to transcribe this discussion, and missed parts.)
Collins: Development undertaken for aeronautical use is exempt from D.C. (development charges). Is this true of Toronto?
(Answer - Mississauga has not collected one dime of D. C. from Pearson airport. They have an agreement that gives them $1 per passenger (24 million in 2003). We are charging Tradeport for warehouses etc. (non-aeronautical).
Are parking garages exempt from D.C.?
(Answer - With parking garages there is no demand on services. You are not coming to a parking garage as a point of attraction. The buildings attached to them pay D.C..
I this the same as other municipalities? (Yes) What's the rationale on farm help houses?
(Answer - Farm help houses are usually temporary..not a big drain on services. Slaughterhouses and greenhouses should be charged. There's a mix of policies in other municipalities.)
McHattie: Re the exemption for affordable housing. Can you explain the rationale? Toronto and Durham have different arrangements. In Hamilton with the new social vision adopted by council, affordable housing and economic development are priorities, but we need to do more work on the former. Perhaps D.C. could be applied to a component of affordable housing but not the whole development.
Rinaldo: Most have a 25% component.
Gary ?: Other municipalities have looked at a whole development charge, but looked at whether some grant relief could be given on an individual basis.
(missed a chunk here)
McHattie: Re the timing of the new by-law...do we have anything to deal with the onrush of development permits and the impact on staff?
(Answer - There's always a rush toward the end of the year..that's why we put policies in place for site plans.)
Braden: I think there'll be a flood of applications. What development charge amount was in effect on the date of applications? Are we able to charge D.C. to help service land in industrial parks that are to come? In the Glanbrook Industrial Park, the part that remains industrial, the city is going to have to cough up some money.
(missed another chunk of discussion here)
Rebecca Wissenz (President of Chamber of Commerce) spoke to the committee.
Uniformity is essential for fairness and clarity. We have to replenish the D.C reserves and pay for economic development. This will make Hamilton attractive to potential investors. Your D.C. strategy allows for significant exemptions (community buildings and hospitals) and is tied in to brownfield policies. It's more palatable across the board. Council's exemption for industrial development has leveled the playing field. Your proposed by-law re industrial development strikes and appropriate balance. "What's good for business is good for the community." Prosperity we think is around the corner. After much deliberation with our members, we think a modest raise in D.C. is not detrimental.
Rinaldo: We're not revisiting Industrial D.C. in the fall, just GO Transit.
Fothergill (Chamber of Commerce) spoke to the committee on how important D.C. is to economic development. His client, Mr. Jobe, who wanted to set up a mini-storage business on Safari Road considered going commercial despite industrial zoning. If he had to pay a commercial rate, the project could not have proceeded. After discussion and negotiations with staff, this property is now considered industrial. The change in the by-law lets this project go ahead. $125,000 in D.C. will go to the city and it will generate $60,000 in taxes.
Mitchell: We have the same dilemma on a couple of properties near the airport. It's in litigation now. We're making corrections now. Where do we stand? To flip-flop back in forth is not a good precedent.
Mr. Arani (Homebuilders Association) spoke in support of the by-law. I'm speaking on behalf of new home purchasers..it impacts on them. It is supportable. We'll have to sell this 60% increase to our members. We are getting something in return stormwater management). This city is fragmented by small ownership (on stakeholders' committee).
Fred Toy (Hamilton-Halton Homebuilders Association): Development pays for development. There's an openness here.
Don McLean: No one can reasonably respond to the complexity of this issue in 5 minutes. There are significant changes we should be making to the process. The fact that both the Chamber and the Homebuilders think this is great should send up some red flags. They've commented on the 60% increase, but 45% is not an increase at all, just a transfer of stormwater costs. For the past 5 years we've been collecting far less than we should be collecting. Now we're just catching up.
Particularly shortchanged with respect to the Lincoln Alexander Parkway and Red Hill Creek Expressway projects. Normal calculation for a new road is that 95% is charged to growth and 5% to existing taxpayers. However, for these two expressways, only 44% has been charged to growth. This single step has reduced the development charges by over $3700 per single-family home. In addition, for the portion that has been included in the development charges, a decision has been made to allocate some of the charges to a post-period benefit (post 2021) which has cut the per home DC by a further $358. However, the city's own studies have concluded that the valley expressway will be reach capacity by 2019 so there won't be any post-2021 capacity on the road to benefit the home buyers after 2019. The Linc, for its part, is close to capacity already. Unfair decisions were made under the Harris government. So we can't collect for a new city hall, or for waste managment, or for 10% of soft services. We have to think hard about adding exemptions to those already imposed by the province. I thank staff for the process but it was extremely rushed and undermined by the loss of senior staff. There was a problem with structure in that a number of private meetings were held between staff and the Homebuilders' Association. We should re-open the process in the fall and look carefully at what we've been rushed through and look at accurate and appropriate figures.
Mitchell: I agree with some of Don's ideas. We have a provincial act that mandates what we can and can't charge for. The provincial act is very discriminatory against industrial cities. Our council has set higher standards for parks etc. and we're not allowed to do this be act. I'd like this council to request the province to change. There should be fairness re deductions on what rural people don't receive. New standard city level results in another service level decrease..a gross inequity. We had an arena that serviced 10,000 people and now it services 22,000.
Gary ?: Good point. The province has asked for insights and comments so your proposal is well timed.
Rinaldo: A task force is being set up. Staff has done a tremendous job despite turnovers. The original by-law included $$ for rolling stock for police. We should follow the act in these cases. And independent auditor did go through project by project and pointed out where we overcharged.
Bruckler: There are some discretionary provisions within the by-law. In the previous act there were areas of concern..no longer charge for commercial parkland (50% merely satisfies neighbourhood requirements..there is a void there for acquisition of city-wide parks. We should include this in our submission.
Mitchell: I will be supporting this. I'd like an amendment, part b, that the committee stay in place and make some recommendations for a future committee. They can be recalled when the GRIDS study is completed. I take it as a positive that the Chamber and the Homebuilders agree. We've worked together under time constraints. That's something that can be corrected.
Pearson: This has been a very intense process. No by-law or process is ever perfect.
Braden: Back to Red Hill. My whole thing is to get D.C. as high as you can. Make sure the people that use it pay for it.
Rinaldo: There's a big difference in terms of growht when we're talking about greenfield development. When N.S. are going into an existing urban area, some has to be allocated to existing residents.
Gary: 100% of the highway is funded to 17% growth. (missed this)
Braden: Do you allocate the users or the need?
Gary: Does pipe accomodate future lands? Are you going to reroute traffic or have back-ups on major arterials?
Braden: If someone goes to the OMB, are our assumptions that there would be credible evidence, useful information?
Gary: We've used city transportation experts, Earth technology and a considerable amount of analysis. We're confident our numbers will hold up.
Braden: What about illegal trailers in illegal trailer parks? How are we going to deal with this?
Gary: If you by-pass normal process, you can impose building charges and collect.
Tim ?: This whole issue will be reviewed. It could be applied in any situation.
Braden: Garden suites (granny flats), school portables? Words used by Mitchell.."farm help houses are often temporary"..we didn't charge D.C.'s.
Gary: Any growth pays a charge. Many municipalities charge a lower rate if it's for temporary use..in place for 3 years.
Braden: This is not appropriate. We're trying to get farm families to look after themselves. If an old, abandoned school is to be sold for condos, are you recommending credit?
Rinaldo: Under the current by-law you get credit. Under the proposed by-law schools are exempted..redevelopment credit is 0. The thinking is they're older buildings. Whatever the rate is at the time is what you collect. Developers know in advance what the credit is and this is reflected in the bid price. Agreement calls for interest rates to be adjusted every 5 years. The city is not at risk at all.
Braden: As for the mini-storage situation..I'm pleased that we found a solution. I hope we're as open-minded on other issues. On arenas...the old city probably had 1 arena for 6,000. I would like to plan ahead to maintain standards. This lowers our standards. What can you do to help us?
Gary: The D.C. act is not kind. It must be calculated at a city-wide level.
Braden: I'm being charged unfairly for things we just don't get access to. Look at the make-up of the community. There appears to be a severe lack of representation from my community (farm). The dominance of corporate interests is a problem. It puts the rural constituency right off the map. The building community clearly has the ear of the council. I think there are a whole lot of changes that are good. We need to seek some changes from the province. "I want greenfield development to finally pay its real way." The attitude needs to be that is going to come back soon.
Pearson moved to accept. Collins seconded.
It was agreed that an agricultural representative be part of this committee.
Braden pressed for a revisiting of the Act and Rinaldo said that they plan to do this when the GRIDS study comes forward.
Discussion Items
7.1 Sale of 350 Burlington Street East
That staff be directed to execute the Agreement of Purchase and Sale for this .57 acre parcel of land to Demolition and Recycling Inc. for the purchase price of $21,380.00.
That staff be directed to initiate the process to vest the property and that the Treasurer be authorized to cancel the outstanding tax arrears of $124,948.09.
That 350 Burlington Street East be declared surplus.
7.2 - Consolidation of Lottery Licensing By-laws (Ancaster, Hamilton, Flamborough, Stoney Creek)
There is a need to create a unified lottery licence by-law for the City of Hamilton, as there are currently four different lottery licence by-laws in force. The report recommends consolidating these and incorporating the administrative fee structure approved in the 2004 budget.
7.3 Proposed Write-Offs of Outstanding Fines Related to Provincial Offences and Parking Violations
That the City Clerk and the Manager of Hamilton Municipal Parking System be authorized to write-off all outstanding fines deemed uncollectible with a due date of December 31, 1996 and prior.
A brief discussion followed with comments about listing those people who are chronic offenders and setting up a better system of tracking.
Motion carried.
7.4 Revised Reporting Structure for Internal Audit Function and Policies regarding a) Accessibility of Information requested by Members of Council; b) Development of a Code of Conduct on Financial Disclosure fro Members of Council; c) Creation of a Registry of Lobbyists
Recommendation:
- Requests by Council members having significant financial and/or staffing implications be introduced by motion at the appropriate Committee, and the applicable General Manager, or City Manager, communicate to members within 3 working days identifying the date the requested material will be available.
- The City's Procedural By-law be amended to provide for a Code of Conduct for Council Members for financial disclosure, on a voluntary basis, of personal direct holdings as per Appendix "A" to Report CM04014.
- A voluntary lobbyist registry system be implemented by amending the City's Delegation Request form to include lobbyist information, a copy of which will be available through the City Clerk's Office.
- The Internal Audit Mandate be amended to provide for the following:
- The Director, Audit Services shall report to the City Manager for all administrative purposes including budget development, performance reiews, and other issues related to staffing policies;
- iThe Director shall report directly to Council through the Strategic Planning and Budgets Committee for the purposes of work plan development, operational findings and recommendations and policy recommendations;
- The Director be responsible for the process of selection of the external auditor and provide oversight and direction to that process in consultation with the Strategic Planning and Budgets Committee.
Discussion:
Christensen: Internal financial disclosure by members of Council is not mandated (no legislature), just on voluntary basis.
Pearson: Is there a reason why it has to be made available to the public? (she owns property, jointly, with her husband)
Christensen: There is a FOI requirement to have this available.
Whitehead: We should make it mandatory, not voluntary.
Christensen: We don't have any legislative requirement to do that.
Whitehead: I'd like to see us move in this area. How do you define a voluntary lobbyist registry? What is the benefit?
Christensen: It's when a person comes forward who is paid to represent another party. The benefit would be to have a more transparent process.
Collins: I'm concerned with the wording about AOI (Accessibility of Information) regarding time needed by staff. If there is information here in the municipality, in any department, it should be readily available no matter how much staff time it takes. Budget information and historical data shouldn't require council direction and shouldn't be stifled by majority vote. Information is key to everything we do and decisions we make.
Pearson: Given that some things could go back 10 years, it could be weeks of work. The key word is "readily" (in reference to information being provided by staff if it is readily available).
Collins: This is still too grey. Between now and the next council meeting, we need to come up with better wording.
Whitehead: I have the same concern as Councillor Collins. Staff should take a look at a true Information officer.
Christensen: We're in the process of putting together a system. This could fall into the records division.
Braden: Are there any parameters?..people we hire?..paid lobbyists? Do we ask them to declare? (Answer - There is no specific requirement to disclose.
Collins: We need to set up criteria for when a report is needed.
7.5 Filling of Vacant Council Seats
Mr. Salter Hayden spoke to this issue. The earliest possible date for a by-election (or by-elections) would be October 1. There would be a significant amount of staff involvement, and holding all by-elections simultaneously would mean a cost-savings and a chance to get the message out more efficiently. Even if the Ward 2 by-election were to be held now, the City would only save about 2 weeks.
Cathy Gazzola (President of the Durand Neighbourhood Association) made a presentation expressing her concerns and asking for a by-election as soon as possible. She said that residents in Ward 2 have already been without a representative at council for a month, and it is unrealistic to expect Mayor DiIanni and staff to deal with the increased workload. She stated that the issues and concerns of Ward 2 are of a different social and economic nature.
Collins: The best we could save is 2 weeks. Is it imperative that we spend $3,000 - 5,000 to speed this up?
Whitehead: I have concerns about putting off representation for this ward. There may not be 3 by-elections. Can you explain the 2 week situation.
Christensen: The resignation of Andrea Horwath went through on May 26. A by-law for an election would have to be passed at the next council meeting on June 16th. When the results of the Federal election on June 28th are known, council would then have to pass another set of by-laws at their June 30th meeting. We could hold a by-election for Ward 2 just after Labour Day.
After discussion it was moved that by-election option (b) be accepted:
That Council give direction on the method by which vacant seats on Council will be filled.
They asked that staff make up a chart showing the various options for holding the by-elections, with dates, costs etc. outlined.
The committee agreed that the election option be approved as the method by which vacant seats are filled. Moved by Collins, seconded by Pearson.
7.6 Slater Steel - Outstanding Taxes
Recommendation: That the City Treasurer be authorized to write off $725,668 in property taxes and water/wastewater arrears for the Slater Steel properties and the balance ($448,007) be paid in instalments of $100,000 per annum until it is fully paid.
Rinaldo: Negotiations on this issue involved Mayor DiIanni, Rinaldo and Delaware Street Capital. By reaching this agreement we preserved jobs and benefits at the company.
Kelly: I want to commend Katz and his folks for coming to the fore to keep this business afloat. I was a little reticent because of legislation. Everyone's going to come to the table. The city has worked hard to clear up the backlog. I think we should consider this and move forward.
Whitehead: I'd like to commend all those involved, not just the staff, but the steelworkers, the non-union people and Delaware Street Capital for showing confidence in the community. Could this be a slippery slope? I've had involvement with Algoma. We have to deal with these issues on an individual basis.
Braden: Will payments start 12 months from now? Does it make sense to wait a year rather than paying over the course of a year?
McHattie: The education portion? We're writing off 100%. What responsibility do we have from the province to cover this?
Rinaldo: The province has passed legislation to permit this.
McHattie: Is the assessment being appealed? There are lots of positives in the deal, but the negative is the taxes coming in.
Rinaldo: We would have to have had some reduction in taxes anyway.
McHattie: Up to $450,000 of property taxes will be a significant drop. What are the guarantees? What discussion has there been about actually staying in the city for any length of time? Are we looking at jobs being lost in the future?
Rinaldo: There's not ever an absolute guarantee, but Katz is here..ask him.
Katz: You're right to thank the workers. This company was being liquiditated before we got involved. We took a business that was shut down, and with the cooperation of the workers and salaried workers who have taken a pay cut, put out $45,000 a day to fund losses because we believe in one thing...human capital. The company would have been closed, machinery cut up - moved to China etc. We don't do this at Delaware Capital. I cannot promise you that it will make money, but the best way is to operate in Hamilton - nowhere else - this I can commit.
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