Nov 17/04 Report

Note to readers:

This report has been compiled using several sources including the official minutes prepared by city staff. We have added internet links to agenda items and provided summary information about the main items to allow the reader to understand what they were about. Transcriptions of portions of the meeting may be added at a later date.

(Attendance of Councillors and Staff is not confirmed by CATCH .)

Present: Councillor M. Ferguson (Chairman), Councillor D. Braden (Vice Chairman), Councillors P. Bruckler, C. Collins, M. Pearson, A. Samson

Also Present : Councillor T. Jackson, J. Rinaldo - General Manager, Finance and Corporate Services, C. Graham - General Manager, Human Resources, S. Stewart - A/General Manager, Public Works, Environment and Infrastructure, J. A. Priel - General Manager, Community Services and Public Health, L. A. Coveyduck - General Manager, Planning and Development, P. Barkwell - City Solicitor, R. Male - Director of Financial Services, L. Friday - Director of Taxation, C. Biggs - Legislative Assistant, City Clerk's Office

1. Changes to the Agenda

The Clerk advised of the following changes:
(i) Presentations by:
(aa) Mr. Matt Jelly respecting use of video surveillance in the downtown core;
(Request to appear approved by Committee October 20, 2004)

(bb) Mr. Andrew Norwich, Committee to Save Charity Bingo, respecting a proposed plan to diversify charity bingo establishments. (Request to appear approved by Committee October 20, 2004)

have been rescheduled to the December 8, 2004 meeting of the Committee at the request of the presenters.

(ii) Request to appear from Mr. Tim Penfold, United Brotherhood of Carpenters and Joiners of American, Local 18, respecting the City's Purchasing Policy and Tender Process.

(Pearson/Braden)
That the agenda be approved, as amended. CARRIED.

2. DECLARATIONS OF INTEREST

None declared

3. APPROVAL OF MINUTES

(Pearson/Samson)
That the Minutes of the November 3, 2004 meeting of the Corporate Administration Committee be received and adopted as presented. CARRIED

4. DELEGATIONS REQUESTS

4.1 Mr. Tim Penfold, United Brotherhood of Carpenters and Joiners of America, Local 18 (New Business - Copy)

(Braden/Bruckler)
That Mr. Tim Penfold, United Brotherhood of Carpenters and Joiners of America, Local 18, be given the opportunity to appear before the Committee . CARRIED.

4.2 Mr. Joseph Beattie, Business Manager and Secretary-Treasurer, Hamilton-Brantford, Ontario Building and Construction Trades Council, respecting the City's Purchasing Policy, tender process and Fair Wage Policy (Request to appear approved by Committee on November 3, 2004.)

5. CONSENT ITEMS

5.1 Monthly Status Report of Tenders and Requests for Proposals for October, 2004 (FCS04023(h)) (City Wide)
http://www.city.hamilton.on.ca/Clerk/agendas-minutes-reports/
corporate-administration/2004/Nov17/FCS04023(h)%20October%20
Tenders%20and%20Requests%20for%20Proposals.pdf

(Pearson/Bruckler)
That the Monthly Status Report of Tenders and Requests for Proposals for October 2004 as set out in Appendix 'A' to Report FCS04023(h) be received for information. CARRIED

5.2 Apportionment of Taxes - Pursuant to Section 356 of the Municipal Act, 2001, S.O. 2001, C.25 (FCS04133) (Wards 7, 11 and 15)
http://www.city.hamilton.on.ca/Clerk/agendas-minutes-reports/
corporate-administration/2004/Nov17/FCS04133%20-%20
Apportionment%20of%20Taxes.pdf

Roll #2518 070 871 00580 at 171 Stone Church Road East, Hamilton (Ward 7)

Roll #2518 901 410 48405 at 0 Southbrook Drive, Glanbrook (Ward 11)

Roll #2518 303 820 21000 at 1345 Centre road, Flamborough (Ward 15)

(Pearson/Bruckler)
(a) That the land taxes levied against Roll # 2518 070 871 00580 (171 Stone Church Road East, Hamilton) for the 2003 tax year, be apportioned in the amount of $3,772.18 and split amongst the two parcels, as set out in Appendix A to Report FCS04133;

(b) That the land taxes levied against Roll # 2518 901 410 48405 (0 Southbrook Drive, Glanbrook) for the 2002 and 2003 tax years, be apportioned in the amount of $3,293.00 and split amongst the thirty condominium units, as set out in Appendix A to Report FCS04133;

(c) That the land taxes levied against Roll # 2518 303 820 21000 (1345 Centre Road, Flamborough) for the 2002 and 2003 tax years, be apportioned in the amount of $4,467.99 and split amongst the two parcels, as set out in Appendix A to Report FCS04133;

(d) That the Clerk be authorized to provide the City Treasurer with a copy of this resolution in order that the taxes on the accounts may be adjusted accordingly.

CARRIED

5.3 IP Telephony Update (FCS03007(e)) (City Wide)
http://www.city.hamilton.on.ca/Clerk/agendas-minutes-reports/
corporate-administration/2004/Nov17/FCS03007(e)%20IP%20
Telephony%20Update.pdf

The new phone system, maintained by Bell Canada, is being installed incrementally. The project is to replace approximately 3600 phones at over 140 locations. Major problems such as computer virus and electricity black out caused delays. Backup systems and power have been installed to improve the reliability of the system. To date, The IP Telephony project has converted over 3200 phones at over 135 locations throughout the city.

(Pearson/Bruckler)
That report FCS03007(e) respecting the IP Telephony project be received for information. CARRIED.

6. DELEGATIONS

6.3 Mr. Joseph Beattie, Business Manager and Secretary-Treasurer, Hamilton-Brantford, Ontario Building and Construction Trades Council, respecting the City's Purchasing Policy, tender process and Fair Wage Policy

The Committee received a presentation from Mr. Joseph Beattie, Business Manager and Secretary-Treasurer, Hamilton-Brantford, Ontario Building and Construction Trades Council, who appeared before the Committee on behalf of its affiliate members to express concerns with respect to the City's Purchasing Policy, tender process and Fair Wage Policy.

In his presentation, Mr. Beattie requested the Committee's consideration to authorize and direct to staff to open up a formal dialogue with the building trades and contractor representatives leading to any reporting to the Committee on proposals for enhancements to the Fair Wage Policy. Copies of Mr. Beattie's presentation were distributed to the Committee and also retained in the public records of the City Clerk's Office.

(Collins/Samson)
(a) That staff be directed to review the current Fair Wage Policy and bring a report back to the Committee addressing the issues outlined in Mr. Beattie's submission, including statistics and information to give an understanding of what is currently occurring in the industry e.g., repeat offenders (who, how many times the policy has been violated, etc.); a snapshot of what is happening and where violations are taking place;

(b) That in the interim, whatever information is available from staff and/or Mr. Beattie be forwarded to the Committee;

(c) That the report requested in subsection (a) be prepared for presentation to the Committee in the second quarter of 2005. CARRIED.

Mr. Tim Penfold, Organizer, United Brotherhood of Carpenters and Joiners of America - Local 18, respecting the City's Purchasing Policy and Tender Process (New Business - No Copy)

In his presentation, Mr. Penfold stated that he visits job sites on a regular basis and speaks with contractors and employees, and what he is finding is that there is an underground economy that is running rampant by allowing general contractors who hire sub-contractors who then, in turn, give jobs to "independent dependents". He requested the Committee's consideration to review the wording in the City's bid contracts to reflect that all work be performed by certified journey persons and registered apprentices. This would clear up tax issues and safety issues, where there have been unsafe situations waiting to turn into accidents.

The Committee requested that Mr. Penfold provide specific details to Scott Stewart, Acting General Manager, Public Works, Environment and Infrastructure, who will provide full report back to the Committee.

(Pearson/Bruckler)
That staff be requested to investigate the concerns and comments expressed by Mr. Penfold, and report back to the Committee on how these issues can be addressed in tightening up any policies of the City of Hamilton, and more specifically those issues with respect to the use of journey persons and registered apprentices. CARRIED.

(Councillor D. Braden indicated that he wished to be recorded as OPPOSED to this item.)

7. STAFF PRESENTATIONS

7.1 Human Resources Strategy (HUR04015) (City Wide ) - Catherine Graham
http://www.city.hamilton.on.ca/Clerk/agendas-minutes-reports/
corporate-administration/2004/Nov17/HUR04015%20HRStrategy.pdf

The Human Resource Strategy provides a framework for long term direction in human resources management and organizational effectiveness. It is a balanced strategy with a long term focus for the future and tangible activities for 2004 and beyond. Roles and responsibilities are outlined for the City's leadership, the organization, its employees and employee representatives, management and supervisory staff and the Human Resources Department. This Strategy directly supports and attempts to assist the City in its goal to become a "City of Choice for High Performing Public Servants".

The Committee received a presentation from Catherine Graham, who outlined the Human Resource Strategy, stating that the Strategy was a long process of development and consultation. Ms. Graham acknowledged several members of the Corporate Management Team in attendance at the meeting in support of the Strategy, as well as staff from the Human Resources Department and a number of employee representatives. Following the presentation, the employee representatives were given the opportunity to address the Committee.

Gus Oliveira, President of C.U.P.E. Local 5167, expressed his thanks to be invited to and participate in this type of initiative; however, the hurdle to improving the work force will be to obtain the buy in from all levels of the corporation. Without the buy in from all of the individuals responsible for overseeing the services and the front line staff, there will not be any improvement.

Kim Cheeseman, President of Local 107 ATU, was recognized and indicated that he had no comments at this time.

Henry Watson, President of the Hamilton Professional Fire Fighters Association Local 228, expressed his appreciation for the opportunity to participate in the development of the Strategy, and echoed the statements of Gus Oliveira in terms of the importance of the implementation of the Strategy to the organization, and to the City of Hamilton. The strategy is great; however, the "proof is in the pudding".

Greg Hoath, President of the International Union of Operating Engineers Local 772, commented that his Union is very supportive of the HR Strategy, and urged Council to support the Strategy and approve the necessary funding. In order to truly want to be the employer of choice, the Strategy begins with Council commitment. Once the employer survey is completed, it must be implemented and followed up.

(Bruckler/Pearson)
(a) That the City of Hamilton Human Resource Strategy, attached as Appendix A to Report HUR04015, be approved;

(b) That consideration be given in the 2005 Capital Budget for funds to provide for an Employee Survey. CARRIED.

8. DISCUSSION ITEMS

8.1 Payment Proposal - 790 Rennie Street, Hamilton (FCS04128) (City Wide, Ward 5)
http://www.city.hamilton.on.ca/Clerk/agendas-minutes-reports/
corporate-administration/2004/Nov17/FCS04128%20790%20
Rennie%20Write-off.pdf

Mr. Alex Sivitilli of CorrugArt Industries Inc. has an agreement with the mortgage holder to take ownership of 790 Rennie Street. The current owner is Walther Real Estate Holdings who will not be benefiting financially in any of these proceedings. Canadian Grinding Wheel was the sole tenant and previous owner of the building and has since gone in receivership. Given the assessed value of the property ($372,000), the suspected contamination on the property and the disrepair that the building is in, the City's ability to recover the full outstanding taxes is very limited. The property has been in tax arrears since 1992. Recently Canadian Grinding Wheel has gone into receivership and the building has been vacant for approximately one year.

(Braden/Bruckler)
(a) That the Treasurer accepts a tax payment settlement of $50,000 for the Brownfield Property known as 790 Rennie Street, Hamilton;

(b) That the Treasurer, under Ontario Regulation 138/04, write-off the balance of taxes, penalty and interest and water arrears outstanding in the amount of $540,941.83. CARRIED.

8.2 Write-Off of Uncollectible Taxes (FCS04134) (City Wide)
http://www.city.hamilton.on.ca/Clerk/agendas-minutes-reports/
corporate-administration/2004/Nov17/FCS04134%20Write-Off
%20of%20Uncollectible%20Taxes.pdf
(includes Schedule A)

Breakdown of Outstanding Balances:

Penalty and Interest $156,163.51

Provincial Education $ 74,094.73

Municipal $198,112.20

Total write-off : $428,370.44

Current tax arrears of $428,370.44 be written off, of which $74,094.73 would be recovered from the Province for education taxes.

(Pearson/Bruckler)
That the General Manager of Finance and Corporate Services be authorized to write-off the property taxes set out in Schedule "A" to Report FCS04134, including the penalty and interest, pursuant to Ontario Regulation 138/04. CARRIED.

8.3 Tax Bill Format Options (FCS04129) (City Wide)
http://www.city.hamilton.on.ca/Clerk/agendas-minutes-reports/
corporate-administration/2004/Nov17/FCS04129%20Tax%20Bill%20Format.pdf

The City currently has different tax rates for all the 6 former municipalities that make up Hamilton. This is expected to carry-on for some time due to the different services provided in the six municipalities. As a result of this, the tax bills have been set up in a way that shows the General Levy Rate that all citizen's of Hamilton are charged, a Police Levy Rate that all citizens of Hamilton are charged, as well as a Social Services Levy Rate that all citizens of Hamilton are charged. There is then a fourth line for an Area Levy Rate by former municipality, that all citizens of that municipality are charged, and this rate is different for each of the 6 municipalities. The description on the tax bill for Glanbrook Taxpayers would be Area Rate - Glanbrook, for Ancaster it would read Area Rate - Ancaster, etc. On top of this is a Transit Area Rate that is also different for each of the six different municipalities, and is only applied against properties that are in the transit area.

Mr. Larry Friday, Director of Taxation, outlined the options for the format of the tax bills. The Committee approved Option 1, with the amendment that "Area Rate with the specific municipality", be amended to show "Area Rated Services".

The Committee requested staff to:

(i) investigate whether it is possible to show the total of the Tax Rate Percentage on the tax bill;

(ii) provide the differential for the area rated services in the pamphlet/guide for the information of residents.

(Bruckler/Pearson)
That Option 1, attached to Report FCS04129, as amended, be approved as the format for the 2005 tax bills. CARRIED.

8.4 ROMA Reciprocal Insurance Program - Premium Retro-Assessment for Town of Dundas - February 15, 1998 to December 31, 2001 (FCS04138) (City Wide)
http://www.city.hamilton.on.ca/Clerk/agendas-minutes-reports/
corporate-administration/2004/Nov17/FCS04138%20Town
%20of%20Dundas%20OMEX1.pdf

A retro assessment is a supplemental premium charged by the reciprocal to cover deficits in funding for claims. The annual premiums forecasted by the OMEX SUG for each of 1998, 1999 and 2000 were insufficient to cover the cost of actual claims incurred and insufficient to fund the claims This resulted in a deficit and the agreement governing the OMEX SUG stipulates that it may not operate with a deficit. Payment of an insurance premium retro assessment totalling $170,819.45 is being requested in accordance with the agreement entered into by the Town of Dundas with the reciprocal.

(Collins/Samson)
That following recommendation be tabled pending direction to staff to report back on alternative funding sources prior to the November 24 Council meeting:

That the insurance premium retro-assessment invoice for the former Town of Dundas in the amount of $170,819.45 be paid to OMEX, ROMA Special Underwriting Group 1 and be funded from the 2004 Operating Budget. CARRIED.

(Pearson/Samson)
That the following be added as sub-section (b):
(b) That staff follow up on an annual basis on any outstanding insurance premiums with respect to Premium Retro-Assessment for the Town of Dundas, and advise the Committee accordingly. CARRIED.

8.5 Development Charge Reserves Status Report as at December 31, 2003 (FCS04132) (City Wide)
http://www.city.hamilton.on.ca/Clerk/agendas-minutes-reports/
corporate-administration/2004/Nov17/FCS04132%202003
%20DC%20Reserve%20Report.pdf (includes Apx. A)

2003 collections decreased from2002 by 30% from $17.7 million to $12.7 million. It should be noted that collections increased by 32% from 2001 to 2002. $15 million was transferred to growth-related capital projects and $2.7 million used to pay external debt. This contributed to the $4.2 million decrease in reserve balances from the previous year.

(Braden/Samson)
That Report FCS04132, Development Charge Reserve Status Report as at December 31, 2003, be received for information. CARRIED

12. GENERAL INFORMATION

Councillor Collins requested staff to investigate the feasibility of having Cable 14 broadcast all or a portion of the budget process, either during the daytime meetings or if necessary, during the evening, in order to give the public the opportunity to view and experience the process. The City Manager responded that he would follow up on this matter.

13. PRIVATE AND CONFIDENTIAL

13.1 Legal Services Restructuring (LS04020) (City Wide) (report not available) 

(Note: Tabled from November 3, 2004 meeting of the Committee.)

On motion (Pearson/Samson) the Committee moved In Camera to discuss a personnel matter. CARRIED.

On motion (Samson/Braden) the Committee reconvened in Open Session.

CARRIED.

(Pearson/Bruckler)
That Report LS04020 respecting Legal Services Restructuring be tabled for two weeks for additional information to be provided. CARRIED.

14. ADJOURNMENT 1:15 p.m.