June 22/05 Report
Start time: 9:40 a.m. Start In Camera: 10.55 a.m.

Attendance: ("A" = Absent)

• Councillor Braden, (Chair)
• Councillor Bruckler
• A - Councillor Collins
• A -Councillor Ferguson
• Councillor Pearson
• Councillor Samson (Vice Chair)

Also Present:

• Councillors Whitehead and McCarthy
• G. Peace - City Manager,
• T. McCabe - Director, Development and Real Estate ,
• S. Stewart - General Manager, Public Works,
• M. Amorosi - Director, Employment & Client Services,
• K. Christenson - City Clerk, J. Lee, Director of Customer Service, Access and Equity, Finance and Corporate Services,
• R. Male - Director of Financial Services, Finance and Corporate Services,
• C. Biggs - Clerk's Office.

Media:

• CHML (Mann)
• Hamilton Spectator (McGuinness)

CATCH: Roberts

6. CONSENT ITEMS

6. 1 Minutes of the May 3, 2005 meeting of the Advisory Committee for Persons with Disabilities
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
corporate-administration/2005/Jun22/Advisory%20Cttee%20for
%20Persons%20with%20Disabilities%20-%20Minutes%20-%20May%203%2005.pdf

6.2 Authorization to Enter into Extension Agreements on Specific Properties for the Payment of Property Tax Arrears (FCS05079 (City Wide)
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
corporate-administration/2005/Jun22/FCS05079%20Extension
%20Agreements%20for%20payment%20of%20tax%20arrears.pdf

Appendix A of this report lists the latest 65 properties to be given Tax Extension Agreements, in accordance with the Municipal Act.

Since the properties are listed by a roll number only and are not identified, Councillors McCarthy and Pearson asks if these properties can be identified as to commercial or residential. Staff will look into this.

6.3 Red Hill Valley Project Financial Status Report (FCS05027(c)/PW05023(c) (City Wide)
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
corporate-administration/2005/Jun22/FCS05027c%20PW05023c%20June
%20CAC%20APR%20MAY%20with%20PAB%20amendments.pdf

"The report highlights the current financial status of the Red Hill Valley Project, based on expenditures realized to May 31, 2005. The expenditures for both April and May are included due to the Committee Schedules over the next few months."

McCarthy: ".in April I notice that we spent $67,314 on - just for April - for legal costs. I'd like a fuller breakdown of that. That seems exorbitant. I don't know about anyone else on our committee but that's frightening and very bothersome. We can't keep going with those expenses." Councillor Braden : "Let's have an update." K. Christenson : "Peter Barkwell (City Solicitor) is in negotiations right now, at 9:30. He said he would try and get here within 45 minutes or so. I wonder if we can just defer this item. He would have further information and be able to clarify those numbers for you at that time." (off mic discussion) Braden: ".can we defer this issue and have Mr. Barkwell explain .". McCarthy : "I think we could have this deferred until the next meeting and have a fuller explanation of the costing out as I think we should be keeping an eye on this. It's exorbitant and we just can't keep going with that kind of a price tag ." Braden : "We hear your point. Members of the Committee . Councillor Pearson , do you have a motion."

Pearson: ".I move that we defer this to the next meeting for the solicitor's input, and I notice on here there is a breakdown of where the charges have been allocated. If we need further information . this report comes to us regularly."

Braden: "Moved by Pearson - "

McCarthy : "I'd like the legal bill, actually, legal bill breakdown." Braden : "We want an extensive breakdown?" McCarthy : "We've obviously been billed for this, with his time and hours and what exactly took place, so I'd like to see that if we can get that for the next meeting. If not, then we'll be told." Braden : ".seconder? Councillor Bruckler . All those in favour of the deferral?"

CARRIED.

6.4 2005 Interim Tax and Rate Budget Variance Report to April 30, 2005 (FCS05080) (City Wide)
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
corporate-administration/2005/Jun22/FCS05080%20Budget%20
Exception%20Report%20April%2030,%202005.pdf
(Pearson/Samson)
Items 6.1, 6.2, 6.4 - CARRIED

7. STAFF PRESENTATIONS

7.1 Consultant's Report: Actuarial Review of City's Property/Casualty Insurance Program (FCS05066) - Referred from Committee of the Whole - October, 2003.
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
corporate-administration/2005/Jun22/FCS05066%20-%20Consultant
%20Actuarial%20Review%20of%20Insurance%20Program.pdf

Power point presentation by Michael Hill (Corporate Service Department, Risk Management) (copy distributed as added agenda item)

Brief summary: Department has 9 staff, and involved in insurance coverage, RFP's, agreements, consulting services agreements, consent forms, special events, etc. Claims broken down into 5 groups, with Public Works having most of the claims. Increases from 2001 to 2004 have risen to almost 1900 claims per year. From 2001 to 2004 the claims "clearly exceeded the budgeted amount every year" - e.g. 2004 budgeted amount was $4,528,000, and actual was $10,885,000. (2004 extremely high due to litigation claims.) Broken down by departments, Public Works is responsible for most of the claims, due to the kind of work done by this department. Total annual claims by Public Works for 2004 = 1338 for a total of $3,160,226.67. For 2006, the estimated budget will be $6,028,000. and increase of $1,500,000.

Powerpoint presentation by consultant from Dion, Durrell & Associates Inc. (Patrick Mahoney) was included in this presentation. They were retained to review the existing risk management program and provide recommendations. (no copy distributed).

Hill concluded with a summary of analysis including funding claims, funding of potential environmental impairment liability (EIL), cost allocations and risk financing. He also summarized the work of 2 focus groups: Senior Staff and Councillors.

Discussion followed with explanation of the city's risk management including partnering with other community organizations who are running particular programs, request for more frequent reports to see where claims are coming from in order to determine where money should be budgeted, and for information on the cost of insurance for small groups without their own insurance involved with the city.

8. DISCUSSION ITEMS

8.1 Taxation Levels on Vacant Properties Resolution (FCS05058) (City Wide) - Referred from Corporate Administration Committee on June 16, 2004.
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
corporate-administration/2005/Jun22/FCS05058%20Vacant%20Tax
%20Resolution%20from%20HABIA1.pdf

Part Summary from report:

Section 364 of the Municipal Act 2001, legislates that municipalities must provide for a 30% tax reduction for any commercial space vacant for 90 consecutive days or more. For industrial properties the rate is a 35% tax reduction. In the last three years that this program has been in place, the average cost to the City of Hamilton has been $3,022,253 for 480 properties.

Part Recommendation from report:

That Council requests the Minister of Finance for the Province of Ontario amend the vacancy unit tax rebate program for commercial and industrial taxes as follows: "That commercial and industrial property owners be limited to one year of the prescribed rebate, after which if the property is still vacant, the owner will be responsible for the full CVA taxes applicable."

Added at this time (not on agenda):

Moved by Pearson , seconded by Bruckler , that Mary Pocius (International Village BIA representative) speak at this time. Braden states that she has information that is not in the report.

Pocius, speaking on behalf of HABIA (Hamilton Association of Business Improvement Areas) : ".issue across the province of Ontario . at this particular time, if a property is vacant for 90 days, that property owner can apply for what was formerly known as the Business Tax, and have taxes on the property reduced because he does not have a tenancy, has a vacancy, his building is empty. We are of the opinion that . we'll let you do that for a year. That allows for the sale of property, allows for a new owner to investigate the hoops and whistles of redeveloping that property. But from the 366 th day on, you should not be bonused while the community that you have your vacant property in is penalized by your property being vacant. It also avoids speculation. ". besides the costs that are in the report, there are added costs to the community. There is the cost of by-law enforcement, property standards, issues of extra policing, extra fire . all added to everybody else's tax bill while the vacant property owner is being bonused, by being given a reduction in their properties (taxes)."

Pocius gives an example, in detail, of a property in her area that "sat empty for 4-5 years", owned by a developer, and "taken back by the bank." The bank found a buyer, and now the property still sits empty while the "new owner goes through the process of what he is going to redevelop with that property. Everything around it crashed. . We need your help to fix this."

Pearson asks if this vacancy tax applies also to residential? Answer: No.

Bruckler asks if various Chambers (of Commerce) been contacted in respect to this change. Pocius answers that several members of HABIA are actually members of the Chamber of Commerce.

(Pearson/Bruckler)
CARRIED

8.2 Award of Tender C11-21-05 - Tender for the Supply and Delivery of Gasoline, Low Sulphur Diesel Fuel and Bio Diesel at Various Locations throughout the City of Hamilton (FCS05078) (City Wide)
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
corporate-administration/2005/Jun22/FCS05078%20%20Award%20
of%20Tender%20C11-21-05%20Tender%20for%20the
%20Supply%20and%20Delivery%20of%20Gasoline.pdf

(Pearson/Bruckler) No discussion
CARRIED

8.3 Insurance Claims Processed for Hired Contractors (FCS05041/PW05034) (City Wide)
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
corporate-administration/2005/Jun22/FCS05041%20PW05034%20
-Insurance%20Claims%20for%20Hired%20Contractors.pdf

(Pearson/Bruckler) No discussion

8.4 Allocation of Investment Income (FCS05068) (City Wide) - Referred from Corporate Administration Committee on February 25, 2004.
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
corporate-administration/2005/Jun22/FCS05068%20Alloc%20of%20
Investment%20Income.pdf

(Pearson/Bruckler) No discussion

8.5 Insurance Strategies - Options for 2006 Insurance Policy Procurement (FCS05077) (City Wide)
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
corporate-administration/2005/Jun22/FCS05077%20Insurance%20
Strategies-%20Options%20for%202006%20Insurance%20Policy
%20Procurment.pdf

(Bruckler/Pearson) No discussion
CARRIED

9. OUTSTANDING BUSINESS LIST - Updates

9.1 Implementation of recommendations in report re: Reality of Anti-Racism Work in the City of Hamilton - Due date June 22, 2005. (Item "F" in Outstanding Business)

J. Lee states there is further discussion going on and hopes to report back in October 2005.

9.2 Forecast on Dividend Monies; Expenses - Due date June 22, 2005 (Item "C" in Outstanding Business)

Christenson : "Waiting for some financial statements from Utilities from 2004 . report back to Committee in September (2005). Amend the date to September."

9.3 Purchasing Policy No. 4; Delegated Authority for Acquisition, Disposition or Lease of Properties; Purchasing Policy, Tender Process and Fair Wage Policy - Due date June 22, 2005 . (Item H in Outstanding Business - 3 parts )

T. McCabe : ".I want to move this off the unfinished business and get the Committee support for this. supported by Planning Committee last November . was part of the portfolio of Management Strategy .dealt with part of the recommendation that the delegated authority for the acquisition disposition lease of properties as approved by Council back in 2001 be amended to increase the limits of value for such authority from $150,000 to $250,000 for the City Manager and for the General Manager from $60,000 to $150,000. . over the last 4-5 years, values have increased substantially in real estate, so $60,000 house back when we first set these delegation limits may be $160,000 - $170,000 today. . Council has authority . in terms of which properties we sell. We have to go through the surplus declaration disposition. It's your decision what we sell. So Council makes that decision . in all of our land. The Municipal Act and our property by-law sets restrictions that we must sell at appraised market value. . I don't see any problems with increasing this limit. I'd like the Committee to deal with it and refer it back, or approve it or support it to Council and take it off the Unfinished Business List.

Bruckler is "not sure what the process is for that particular increase . but has no difficulty with the increased amount ."

McCabe responds that it's only a resolution of Council that is needed, not an amendment to the by-law.

Councillor Whitehead questions the process, how the increase is determined, but "the proposal sounds reasonable to me. . It sounds like we have the checks and balances in place and . will have more efficiency if we do authorize it."

Motion:

That the delegate authority for the acquisition, disposition or lease of property as approved by Council in September 2001 be amended to increase the limits of value for such authority from $150,000 to the City Manager to $250,000, and to the General Manager or designate, from $60,000 to $150,000.

(Bruckler/Pearson)
CARRIED

Re Purchasing Policy, Tender Process and Fair Wage Policy:

R. Male : We're in the middle of doing a detail review of the purchasing policies . It's anticipated that will be completed sometime in September. We're targeting to bring back a report to Committee by the end of September or sometime in October, if it's possible to move that date.

CARRIED.

Re Fair Wage Policy update

Male gives an update on the policy part. ".Bringing forward a couple minor amendments on the policy around WSIB and some other concerns that were expressed. Several meetings held to talk about the fair wage policy with various trades associations. . looking at update for wage and benefits scales .

M. Amorosi on the fair wage part: "Wage schedules are largely complete and it was anticipated that . the wage schedule will come forward at the same time as the policy . August."

Whitehead asks if the fair wage policy is incorporated into our . purchasing policy. Male : "The fair wage policy is always a requirement in any construction tenders in excess of $100,000. . We're looking to update the benefit and wage scales to bring them up to 2004 rates ."

9.4 Peel Resolution re: funding of GO Transit Development Charges By-law - Due date June 22, 2005.

Christenson : "We're still dealing with the province and collecting information on the development charges. .consultation will take a little bit longer. We'd like to defer this 'til September on the Outstanding List, as a report back date."

12.  GENERAL INFORMATION/OTHER BUSINESS

As Chair of the Audit Review Committee, Whitehead reminds Councillors that their participation and cooperation is required in respect to interviews to give information to the outside consultant.

Bruckler refers to an added agenda item - correspondence from City of Cambridge re resolution respecting Volunteer and Municipal Trails. He proposes a motion for legal staff to craft an appropriate letter that Council could endorse. Glen Peace : "Would members of Council also support sending this on to the RBG (Royal Botanical Gardens) and the local conservation authority, along with our recommendation that we'll prepare.

(Bruckler/Pearson)
Peace : " . consultation with those two bodies and bring a resolution back."

13. PRIVATE AND CONFIDENTIAL - In Camera

13.1 Non-Union Salary Schedule - Adjustment (HUR05011 ) (City Wide)

(Pearson/Samson)
To go In Camera