March 26, 2004 Report
Budget Deliberations - 9:30 am

Actual start time: 9:44 am. Morning session nearly all in camera. Afternoon session: scheduled start time 1 pm. Actual start time: 1:21 pm. Adjournment at 3:50 pm

Attending: All councillors except Kelly who missed the morning session because of dental surgery.

DiIanni: "Want to acknowledge of the death of Firefighter Captain Bob Shaw - 27 year veteran of the force, employed with the city before he went over to the firefighter unit. We extend our most sincere condolences to the family, and we will send official recognition of that".

1. Changes to the Agenda:

Kevin Christensen: "In camera matters regarding organizational structure, a personnel matter, and a property sale to be added this morning". DiIanni: "Thank you and I'll take a motion to move in camera on those aspects in a moment, but I just want to announce that Councillor Kelly will be absent this morning. He had some emergency dental surgery to go to.which might be the first time in history where emergency dental surgery might be preferable and less painful than.(laughter, couldn't hear rest)".

Motion to go in camera: Pearson/Whitehead - CARRIED
Committee provided staff with direction in camera. (City website minutes)

Open session scheduled to resume at 1pm . Actual start time was 1:21 pm. (tape not working 100%, so some small bits are missed here and there)

4. Budget Discussion:
4.1 2004 City of Hamilton Capital Program - revised OPTION D
2004 - 2013 Capital Forecast (FCS04049) (City Wide)
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
committee-of-the-whole/2004/
Mar23%20and%2026/FCS04049%202004%20CAPITAL%20
BUDGET%20-%20REVISED%20OPTION%20D.pdf

Collins: (taking the Chair in the absence of Mayor DiIanni): "In light of the confusion on Tuesday I want to make it clear that we're working from the agenda now". .doesn't preclude anyone from raising any of the issues that were under the capital heading that were on the yellow paper that was distributed by Clerks and the Mayor's office. If you want to raise any of these issues within 4.1, because they are related to capital, you can do that".

The 'yellow' sheet was provided by DiIanni with a point form list of topics that the Councillors requested be addressed. This is how the revised sheet looked when handed out today:

Budget List of Issues/Concerns, Revised as of March 23, 2004 COW Meeting
(*Issues addressed)

*Strategic Directions (added)

Corporate Issues:

• *Employee Performance Incentive Program (referred to SP&B)
• *Staff Overtime
• *Hiring of Consultants
• Freezing employee salaries
• *Organizational structure (added) (just addressed that a.m. in camera)

Capital (Refer to Report 4.1)

• Red Hill Creek Expressway (native treaties)
• Immediate servicing of industrial parks
• Capital budget
• Internal and external debts
• Reserves

Department Issues

• User Fee Increases (HSR rider fare increase and ice rental increase)
• Tree Planting/Urban re-forestation
• Downtown Cleanliness - Implementation of Task Forces
• The cost of paving rural roads compared to the tar and chip process
• Raising revenues enough to freeze support/subsidy levels
• Improvements in efficiencies
• Smoking by-law enforcement (added)
• Restaurant Inspection (added)
• Municipal Act implication respecting Public Works (added)

Policies:

• Procurement cards
• Purchasing/Tendering (added)

McCarthy: If you could just direct me when the issue of employee salaries comes? Collins : ".I will note that you want to come back to that at a later time. On the capital budget, comments, questions?" Mitchell : " .From what I remember about Tuesday, we had an issue about possibly voting on each on of these individually. Maybe if that can be done? And then stop at the ones that need discussion?" Collins : ".we can move the recommendation as it's been put. If the debate carries on for the course of the afternoon we may not be able to vote on those items today. .". Mitchell : "Well, just if you're looking for someone to start it.I would move 'a', to start the process ." Collins : "Mr. Clerk it's ok to separate all the items under 4.1?" Clerk : yes.

Motion : Mitchell/Ferguson :
4.1 a) That the Hamilton Future Fund, as a source of funding in the amount of $15,236,000 for the Solid Waste Management Master Plan (SWMMP) per the 2004 City of Hamilton Capital Budget Program - Option D, be approved.

Braden: " My issue is a little bit bigger, but it's about the Hamilton Future Fund (FF), so I'll just mention it in brief. I think if we have to touch the FF there should be a one time or special reason to use those funds much faster than we agreed to last year. It would seem to me that garbage is an essential service. .We choose not to put the reserves away, so we have to deal with the music as it is. I would actually entertain using FF money to invest.in creating jobs. Or for doing something that we know politically we could never get around to. But in fact, we as politicians can deal with garbage. . So, I think that using one-time fees, that were sort of like winning the lottery, that's not the kind of money we should use for the waste management program. Equally, and not for you to misinterpret it, if the Red Hill Creek Expressway (RHCE) stood on it's own completely, it was something that we would never normally do, but we would like to do it if we had the money. And if it was going to lead to some jobs I would probably be leading the charge to use that money to get a commercial sort of reward. Those monies really are commercial monies. They aren't art monies, environmental monies, they're commercial monies. So, in this case I say lets generate the money with taxes, not just raid the savings account".

Horwath: " I understand the political box this Council is in, in terms of the majority of the Council desiring the building of the RHCE, and the few of who don't think that's the priority of this community. As the Chair of the SWMMP however, I have to tell you that that's what should be the priority of this community. . Could I just get for clarification.$15M.? We're not talking about the entire amount?" Staff (Tony Tollis - Finance): " Yes, that's correct" . Horwath : ".I believe that the SWMMP implementation is one of our most pressing infrastructure needs as a community, as it deals with the fact that we're losing landfill space every year that is very precious to this community, and we need to find the alternatives to stop that from happening at an expedited rate. And that's what that SWMMP does.. So, although I don't believe that our capital budget should be totally taken up the RHCE, and I actually believe that this other project is more important (I find it interesting that we're not talking about raiding that fund for the road. .that would be politically not a very smart thing to do I guess) so it's characterized as 'if we can't fit the Solid Waste Plan in we'll take from the FF'. I do believe that the previous speaker has a good point in regards to economic development and that that should be the priority. Members of Council will recall that the 65% of the FF was actually dedicated to .economic activities, and so that already is a principle, in terms of the interest anyway. The first interest payment that the Council dealt with recommendations last term, 65%. was targeted for economic development.. It seems to me that the principle of job related, or economic related, activities in regards to that fund has already been ingrained - as far at least as the interest piece. In regards to the capital.I'm loath as anyone else to touch that money, and I would prefer that we call it a down-payment on the RHCE rather than the SWMMP. However, it is really a matter of semantics, and as I've done every year so far, and will continue to do, I will not support that road, but I will support us making sure that the SWMMP is implemented, because this community, quite frankly, doesn't have a choice. With the road it does, but with this particular program it doesn't."

McHattie : " .Table 2: I just wanted to verify, because we've talked about $15M, we've talked about $60M, we've talked about $100M - the full amount coming forward from the FF. I just wanted clarification: does table 2 include the $15M from the FF.?" Tollis : "Yes it does." McHattie : "Ok. .But I just want to verify because this doesn't seem plausible to me, .in 2005, if we continue down the road we're on right now, and build the expressway and take the $15M from the FF, is it correct that we only have $8.6M in 2005 to other capital projects, fix roads and that sort of thing?" Tollis : "That's correct". McHattie : ".pretty shocking.even if we take $15M from the FF, emphasis in the word future, we've only got $8.6M in 2005 to fix our roads, and only $12.3M in 2006 - we start coming up a bit after that. But it seems incredible to me that.we know we need about $55M/year to fix our roads, and staff's already said that that's not adequate, but that's what we're doing right now. I just wanted to point out the incredulity of only having $8.6M in 2005 to fix our roads!" Ferguson : "$15M is coming from the FF. This is the first year of 4.we've borrowed from $100M portion of the FF and repaid it.." McCarthy : ".In fact in 2005, the $8.6M.(is to cover more than just roads, is it not?)". Tollis : ".because at this point in 2005 we're not assuming any contribution from the FF. If you recall the slides the other day that Joe (Rinaldo) showed, if we were to take an additional, as we did this year with the 15, if we were to take the $21M then we would have $30M available for other projects next year". McCarthy : " .but if my understanding is correct .million is $30M too short for basic infrastructure needs for road maintenance ." McHattie : "Just to clarify, because I didn't understand that we were talking about $50M from the . so that's a $60M withdraw. Help me with the math.on 2005, it's $8.6M here and if we take the $15M from the FF next year.that adds up to 30 or? - 15 plus 8, or?" Tollis : ".I believe Joe's presentation yesterday (Tuesday) assumed that we would entertain taking out the $21M from the reserve.the FF, which the 21 plus the 8 and a half and change we end up with 30. .. There's no commitment by Council to do this. That's simply an option for next year". McHattie : "Thanks for that clarification, we are just talking about $15M for this year. We're talking 15 times 4 then we really are mortgaging the future in a huge way and I think we need to talk about that."

Mitchell : ".capital spending on roads, is the reconstruction of a existing road, ie paving the whole thing, is that taken out of capital? Staff : Yes. Mitchell : ".In part of the ward that I represent. they'd got every road tarred and chipped, because it was very cost feasible to go that way. That municipality at that time knew it could not afford to pave all those roads. The new policy .last summer .two roads out there totally paved. It looks beautiful - we've made them into speed zones.. In my mind, it is not necessary. It is a program that we cannot afford to keep up. So.this Council's got to make some decisions. on policy, because I would suggest that there's a lot of money that could be saved there which would leave money for other projects. .expenditure policy that we know we can't even begin to keep up with. .expressed that last year, and it wasn't dealt with. . (had) calls criticizing the system, because we seem to go to the highest common denominator expense wise. . I would like that decision in the future to be talked about and changed.. I just can't look at these figures here and totally believe them, because we've got some decisions to make".

Whitehead : ".capital re 2005. .I need to understand in regards to the current policies that we have in place.in respect to roads and so forth.in terms of policy - what is the benchmark (figure) required to meet the current policies?" (staff didn't hear or understand the question so he tries again) ".the whole capital expenditure program ... For example, you can break it down, but let's start with roads: what is our projected needs under current policy?" Collins : "Currently there's a phase in, maybe Mr. Crockett you can explain the needs in regards to phase in". Staff (Peter Crockett - Public Works ): "From an overview perspective we're spending over $42M a year on road reconstruction in the 2004 capital budget. Our needs for roads, bridges and sidewalks is estimated at $65-70M a year, in terms of reinvestment in the capital". Whitehead : ".So that doesn't include the other capital needs in our community, is that correct?" Crockett : ".it's roads, bridges and sidewalks. So it doesn't include the water/sewage/storm underneath it". Whitehead : ".rec. centres and other needs - do we have a projection of what those capital needs are"? Crockett : ".We are in the early stages of doing the Facility Asset Management defining in terms of strategic reinvestment in those facilities, but .buildings is about 5M a year". Whitehead : ".assessment determining where the threshold is in respect to those buildings where it becomes unsafe or non-functional?" Crockett : ".that's part of the assessment that we're going through.. 7 key questions that need to be asked in terms of infrastructure reinvestment strategy. .early stages .on the building side. We're going through that now. We spend a considerable amount of time going through it on water/sewer.." (parks to come)

Bruckler : Agrees with some comments made by Braden. "and regards to the SWMMP I think an investment in program is, in fact, an investment in our future, therefore I could support the recommendation for using some of the FF. .On page 8 of the report.re 'work in progress', I'm glad to see that there's a improvement in the balance.(from a negative balance of $50M in 2001 to a positive balance of $39M as of Nov. 2003.) .'work in progress'.will there be sufficient funds there, or .be a surplus in any of those funds for works in progress.?" Crockett : ". tough question to answer. .Within each category we will take a look whether or not we need additional funds. If we do we will come back to Council .to get the funding. .Awards that are coming in below our capital funding envelope, .come back to Council .with a list of roads for reconstruction or resurfacing.".

Merulla : ".do we actually foresee any profits or dividends from Hamilton Hydro in this coming budgetary period?" Collins : .dividends? Tollis : (withholding some.can try to get a forecast ) Collins : "Just to clarify though, does that include union, non-union and the board itself included.the entire corporation?" Tollis : "That's correct".. Merulla : .need that money.report re salaries, bonuses, and other re Hydro.right to ask? Collins : We are the Board of Governors ."you can make that request".

Motion: (Merulla/Morelli)
That as the sole shareholder of the Hamilton Utilities Corporation, that Hamilton Utilities be requested to provide the following information to Council: (i) Forecast from hydro on any forthcoming dividend monies; (ii) Expenses relating to salaries, bonuses, for the entire HUC corporation including the board of governors. CARRIED .

Merulla : ".Could someone just refresh my memory regarding the ."(terms of reference regarding the FF)" Tollis : ".the Fund has been set up as a Trust, and there's a Board of Directors appointed to allocate those funds." Merulla : "I just want to emphasize."(dedicated legacy? supports waste expenditure) Tollis : ".my understanding is that the $15M has been approved by the Board to be spent, so what ever terms of reference that they have, I assume that they've been taken into consideration in the approval of the $15M" Collins : "I think that the Councillor just wants to confirm that in fact they have followed the terms of reference." (dedicated fund?) Staff : (No, ok to use for anything) Ferguson: "The legacy portion of the hydro money was the $100M. It was to .(be reinvested and reviewed) in five years time. Kelly : ".that was discussed at the last meeting of the Trust Fund - about the Legacy aspect. The determination made by the Board at the time was that yes, indeed the project did fall within the parameters of the long-term viability and sustainability of the community.." Merulla : "Who set up the terms of reference for the FF?" Collins : ".were they set up by committee, or staff making recommendation to the committee, is that what you're asking?" Merulla : "Basically. I know that Council.approved .the terms of reference weren't amended. Now, . just to follow due diligence would we not have to officially amend the terms of reference in order to pursue this type of initiative.?" Collins : ".Clerks department involved in .committees of the FF? Is there assistance there?" Clerk : (didn't get response) Collins : " .so there's no plan in place, just to confirm, in regards to the conditions for the loan, is that correct.?" Merulla : So it's really an incomplete type of scenario. It hasn't been finalized or completed?" Collins : .yes. Merulla : "And when do we anticipate finalization?" Clerk : Read from the recommendation re when the next board of directors meeting is expected to be held. (no mic) Merulla : ".If we pass this today, we're doing so outside the parameters of the terms of reference and outside of having any outside detailed information related to the issue. Would that be a prudent type of initiative at this point?" DiIanni : ".it wasn't the board of governors, .that made the suggestion to lend.. In fact it was our staff that made the request of the board.and it created a fair amount of discussion.as to whether in fact it fit the legacy aspect of the program or not. . Ultimately we as a Council can reject staff's recommendation for that funding or accept it. .remind you that last year one of our Council colleagues made a recommendation that the interest, . would be used to mitigate tax increases. We did that last year without even going through officially the board of governors..a recommendation that Councillor Jackson made. .I think we're following the appropriate process, and unlike last year, we've actually engaged the board in discussion to see if this could be done. .it's essentially a loan back into the fund, and that's where the continuation of the fund would occur rather than going to a bank.". Merulla : "My point of concern's been highlighted. .staff should have recommended it to us to actually recommend to the board regarding the changes to those terms of reference. It's just.protocol.. At the end of the day it's we Council, not staff that should be providing direction, and that's what the concern is. Am I making myself clear?" DiIanni : "You are.making yourself clear, but the bottom line issue is that the terms have not been changed." Merulla : "I guess my point is that that recommendation should have come to Council first, then to the board - just a matter of due diligence". DiIanni : "But it did.It was spelled out very clearly in the budget books.that was an option staff was recommending." Merulla : "But we (didn't) vote on the budget books". DiIanni : "But in terms of informing Council, before it went to the board, we received that information before it did go in fact to the board, right? We could have said stop, don't even go to the board at that point". Merulla : "My point is we never voted on it moving forward".

Horwath : ".regarding the nature of capital projects and whether there's some savings there, I suspect that Councillor Mitchell could bring to the Public Works committee if he has a good idea on how to change the paving occurs to save money.better place to have that debate. .I just wanted to reconfirm once again that we're not approving anything for 2005, and 2006 or anything further in regards to the principle in the FF. .we have not had that policy debate. We're doing a quick fix of the $15M right now. When we have that policy debate, does that come back to this table, or does that happen at the FF table? .The way that I read the recommendation was that it says very clearly that this is a one time deal.(reads item 4.1 part 'i'). That staff prepare a report to Council and the Hamilton Future Fund Board Of Governors detailing Hamilton Future Fund Reserve funding options and capital budget impacts with regards to the City's capital affordability deficit for the years 2005-2007.) . we are actually going to have that policy debate in regards to the next instalments if they're separate from this particular $15M. That will come back in a report?" Collins : "I'm suggesting it come back to committee for discussion". Horwath: "Absolutely".

Bruckler : "Further to Councillor Merulla's comments in regards to Hydro profits, in the past have they been earmarked for any purpose?" Tollis : "Not to my knowledge. It's revenues, and its maintained.it's kept within.earnings of the corporation, and they allocate them out in terms of dividends as they see fit, or as we would require them to do". Collins : "I think the question was, .where were they allocated in the past, as part of the budget process?" Tollis : "In the general levy". Bruckler : "Is there any provision for that within the current year?" Tollis : "There's 3M in our budget this year for dividends from Hydro". Bruckler : ".tree planting.make some determination if any of those funds could be used, and placed into a capital program, so that we could get our tree planting .on a better path.. Nothing that's earmarked at this point?" Collins : ". tree planning program - part of the levy or part of the capital budget.?" Crockett : "It's part of the levy budget, operating budget". Collins : "Ok, so we will have an opportunity to debate those issues at some point in time". Bruckler : ".I query whether it's a capital or operating item because as I go through the capital items I see .a number of things which I guess are capital maintenance kinds of items. .(Wants to) formulate a capital replacement program (for tree planting) as well, outside maintenance and monitoring, which might more appropriately be a part of the operating. I think there's a need for capital as well as an operating component". Crockett : ".clarify. If we were to institute a tree planting program, that would be done through the capital budgets. .It's the .maintenance programs that are part of the operating budget". Collins : So, Councillor.that does fall under the recommendation of 4.1, but it's not on part 'a' which is the use of the FF".

Braden : ".page 8 of this budget - .the top two sentences talks about reserves, and in many respects I think that the FF is a reserve. Reads: ' The tax capital reserves, which fund the City's capital program, have declined from a high of $102 million in 2000 to a projected $76 million in 2003'. . listen to the next clause,.it's pretty key. It says: 'While not a positive trend', (the decline levels off in 2005 at $49 million. Over the next 4 years, funding from these reserves will be limited.) While not a positive trend! I can accept that staff wants to be supportive of us but to comment about 'not a positive trend', I think that we might as well say that it's very clearly a negative trend to the tune of $25M a year. .This is 25M - it's not a one shot deal - its at least three years here. I just want to make sure the reports are really reflecting the situation as we have it. The second thing. I urge again that you consider using these funds to grow the economy. .grow jobs and grow the potential for jobs. .. no money to put into industrial parks, with one exception, probably for the next 5-10 years. .FF is the only chance that I can see, in this political environment, where we can spring up some money that was made sort of commercially, that we could turn around and invest for real jobs. .we're taking the easy route to use these reserves - the FF - to fund this garbage program which we need to pay for out of taxes. . All the FF money.came from former utilities. I'm a bit of a stickler for principle.acknowledge.that these monies weren't derived from myself and my residents in my area - they came from the City or areas like Lynden .".

Collins : "In regards to the use of the FF, in utilizing those for capital purposes we're in essence expanding the envelope of the capital budget list. .several options in the report .what size of envelope do we want to use for capital budget. We're drawing on interest right now from the FF for the purposes of paying down, or subsidizing the levy if you want to call it that. How much of a levy increase do we mitigate in using the $15M? . The interest that's accrued annually on the global fund is affected. What kind of levy increase do we experience from that?" Tollis : "What we've done in this budget is reduce our dependence on that interest, and you'll note that in the first year - in 2004 we've actually reduced the amount of the interest that's coming to us by $715K. That will take into consideration the fact that the fund has been reduced by the 15M". Collins : "And how many dollars is 715K on an average household, in terms of levy?" Tollis : ".between $1.50 and $2.00". Collins : "And the alternatives.if we want to keep that fund in place for .the reasons that were mentioned, .need to include $15M .regular capital budget.and the block funding process.?" Tollis : "If you want to maintain it at the same level, that's correct." Collins : .we had a supplementary list (of capital projects) that was recommended and now by utilizing some of these (FF) funds we are able to do some of those? Crockett : ".tabled a report that identified what projects could be done in the absence of Option D funding strategy, and there's a series of projects.that fall off the list as unaffordable if the funding isn't available". Collins : looking for a list from staff of non-infrastructure capital projects "And is it possible.to get prior to the conclusion of the budget process - .I'm not looking to hold up 'a,' but if I wanted to ask - if there are any non infrastructure related .that I might be able to substitute for the $15M without touching the fund.. Could staff pull together the list based on the current capital funding list that you've provided for all departments? . Tollis : "What you're asking for is if we redrew the lines, what projects." Collins : "Yes. I don't want to arbitrarily take $15M dollars out of the budget and start picking and choosing projects, but if I was to give you the criteria - that they be non-infrastructure related -you could pull together that list?" Crockett : "Yes. we could" Collins : ".I'd like to see that for information's sake." Ferguson : "Wouldn't that be basically Option 'a'?" Collins : "I don't think.that the capital budget was broken down along infrastructure and non-infrastructure related. It was a block funded scenario, so every department gets funds regardless of what it's allocated towards". Crockett: ". clarification .terminology.. The capital budget funds all of our infrastructure needs, be it facilities, buildings, (etc).so.clarity about what you mean by non-infrastructure capital.vast majority of them are." Collins : Yes, .they are.(but) look at I.T. projects for example. I know there are some departments that don't deal with infrastructure related projects. .some of the service and corporate departments. I know those budgets are small, but if I could get a list of all of those that are non-infrastructure related". Crockett : ".what we could do as a starting point is give you the break down of hard infrastructure and other components .see the breakdown of what that means.." Collins : "That would be great".

Powers : "I think that's a great initiative, and not withstanding your direction of non-infrastructure, I think perhaps there's the ability - if there is infrastructure - I think we can challenge ourselves to look at numbers. I have some things its my intention to.around item 'e' - to offer up as savings. Now, granted, we always get this story that the capital budget has little or no impact into the operating budget, but there's debt components associated with the whole deal. So, I think any contribution helps the whole process. I'm suggesting that amongst ourselves.that each of us take a look at ..try to come up with at least a quarter of a million, or a million dollars, as it affects not only our wards, but overall. I think quite realistically we could come up with half of that $15M. I just don't want to drain that fund, because there are other purposes for that.." Collins : "Mayor DiIanni.could I get a motion on that at some point?

Motion: (Collins/Merulla)
Staff be directed to report back on the breakdown of Non-Infrastructure related capital projects. CARRIED .

Jackson : Confused about the tree planting as to whether under capital or not. There are three elements re trees listed. Which are capital and which are operating? Crockett : ".It is historically come under operating. It could be that tree planting could be a capital funded program if you look at it as street infrastructure - the urban infrastructure - which it is, trees are.. It's historically been an operating budget, that's why it was presented the way that it was." Jackson : "Ok, so.we have some latitude.suggestion to look at some capital dollars through the capital program or through the FF, I think is an excellent one."

Horwath : No problem going through the specifics of the block funding. ".worried about getting rid of the block formula . One of things we have before us for the first time ever, is block funding for housing.. There's $500K allocated to housing. and we are severely, severely, severely in need of more affordable housing.I'm extremely pleased to finally see a dedicated commitment in the block funding to affordable housing. .Bridgewater court.It's probably not near enough .should be something like $10M annually, to meet the affordable housing need in our community, which is about 400 units annually.that's not happened since that report came forward - probably about 4 years ago.. There's another issue in regards to how to fund affordable housing that I'll be raising in the discussion on the operating budgets."

Merulla : ".recommendation before us, is there anyway that we can separate this particular recommendation. .clarification of where we're going from here.I'd like to see some of this accepted as soon as possible". DiIanni : Work through as many of these (items 'a' - 'i') as possible. Item 'a' is related to 'b', 'c', and 'i' - 4 recommendations around the FF and it's use. Group those 4 and come up with a recommendation for them. Merulla : ".vital component is to separate any of the contentious issues, such as consulting. .a lot of this is a block recommendation". DiIanni : "This is the capital program.any member of Council to make modifications .might be important, or separate out whatever chunk of the program. and see what the will of the overall Council is. .ask for staff on the implications.". Merulla : ".aspects that are still in suspended animation - one being the Business Tax Reduction (BTR), and the consultants.which very well could be worth millions of dollars in extra funds to assist in the process.. Could we not table this pending the reports on the BTR, on the consulting fees?" DiIanni : " .BTR.that's a policy issue that's going to affect the operating line not the capital line.. Consultants.we decided that there would be an overall review of the whole business of consulting, .that that would be more for budgets beyond this (one). .Decision on .consulting aspects as it relates to this budget have to be specific cases.up to Council.to highlight where you would like to see some changes". Merulla : ".concerns surrounding consultants was to deal with it for this budgetary period. Will be doing that?" DiIanni : "No. Two issues: going forward.the use of consultants as we do business. The second is the practical reality of having a capital program that uses some consultants and an operating line that might support that as well. .". Merulla: ".premature to move on these recommendations until we have all the information before us". Want to move to table. DiIanni : I'll take a tabling motion, .have other speakers.But it may paralyse any of the work being done because it's a long-term project.. Other speakers, and we might come back to that".

Bruckler : Tree planting. Where are we with that? He was going to make a motion. Later? DiIanni : Yes. Whitehead : ".had asked for a tree planting in the GRID report.status?" Crockett : report. fall 2003. "Council adopted a number of policies.going from a 12 year to a 5 year GRID, those sorts of things.direction was to look at their affordability and bring forward as part of the 2004 budget process. (it's in the budget package). They were deemed unaffordable". Whitehead : Find funds.health issue (etc) "can ill afford to take that out of the program". DiIanni : ".appropriate time will take the recommendation and see what the will of the Council is". .Ready to move on any items.?"

Collins : ".issues re $15M.(if we can ) find ways to reallocate funds to the SWMMP, may be opportunity to not use the FF.." Wants to speak on tree planting etc.is this the time? DiIanni : ".Focus on a recommendation" Collins : Do have one. Clerk : Moved that item 'a' of 4.1 be approved (Ferguson/Mitchell) DiIanni : Deal with that. Collins : Ok. "I want to go through the consultants line by line and if there are dollars there that we can take out.I would like to allocate to SWMMP.to help on the levy.." Still information to come back (in a report from staff), .there are options to whittle this number down and for those reasons I'm not comfortable going ahead this afternoon - on 4A. DiIanni : .could make amendments.for example ' up to $15M'. Horwath : ".appropriate.add the words 'as a maximum source of funding' or 'to the maximum amount of the $15,236M.opportunity at the end of the process to determine exactly what the figure is". DiIanni : Friendly amendment? (There was general approval shown).

DiIanni : ".any further recommendations on 'a'? Procedural issue.we do have a standing .motion that prevents us from going into the FF.issue Mr. Clerk?" Clerk : 2002 position on the FF - $37M allocated, $100M protected for 5 years.motion steps into this.need to deal with that issue." Merulla : ".exactly the point I was trying to make." DiIanni : ".let's give you credit for that. We're a little slower than you in arriving at the point".(kindly, jokingly) Merulla : ".just don't remember debating the terms of reference." DiIanni : "Good point. It's been made".

Horwath : ".When is it that we have to follow with everything that was done by the previous council and when is it that we have a new mandate? Procedurally.?" Clerk : ".it's appropriate for Council to reconsider an item that the current term of Council has dealt with. I'm not saying you need to reconsider what you've got on the books from the previous term, but you do need to address it, because it's a current item that Council has ownership of. So the $100M and the protection of that for 5 years is still on the books". Horwath : ".is it a matter of changing the motion that says not withstanding the position taken by this Council taken in 2002, and then go on to the motion.? Clerk : . Appropriate".

Motion : (Mitchell/Ferguson)
Notwithstanding the previous decision taken by the former Council on the disposition of the Hamilton Future Funds, Committee recommends the following:
a) That the Hamilton Future Fund, as a source of funding in the maximum amount of $15,236,000 for the Solid Waste Management Master Plan per the 2004 City of Hamilton Capital Budget Program - Option D, be approved. CARRIED . Councillors Braden and McCarthy Opposed.

Jackson/Clerk and DiIanni had a discussion re amendments to 'b' part. Agreed to add in the 'up to a maximum' statement.

Motion : (Jackson/Whitehead)
b) That up to a maximum of $15,236,000 be in the form of a loan, interest accrued, to be repaid over 15-years, beginning in 2007.
CARRIED . Councillor McCarthy opposed

Motion : (Morelli/Merulla)
c) As per 2003 Council direction, that the $4 million annual interest revenue generated from the Hamilton Future Fund and supporting the operating levy, be replaced by a base transfer from the capital levy over the 3-year period 2004 - 2006, as per the proposed 2004 - 2013 City of Hamilton Capital Financing Plan - OPTION D.
CARRIED .

Item 'i' was put next, out of order, as it too deals with the FF.
Motion : (Horwath/Bruckler)
(i) That staff prepare a report to Council and the Hamilton Future Fund Board Of Governors detailing Hamilton Future Fund Reserve funding options and capital budget impacts with regards to the City's capital affordability deficit for the years 2005-2007.
CARRIED .

DiIanni : "Moving 'h'.questions, comments?" McHattie : ".clarification.under 'fleet' it talks about HSR vehicles.$5.7M for new buses.how does this affect our service.?" Crockett : ".replacing 10 buses and retiring 10.doesn't add anything to our service". Whitehead : ".replacing.with the same.size buses.or beginning to take the step in looking at alternative sized buses and prices?" Crockett : Have 10 smaller buses now, and using where appropriate. Choices: 40ft, small, or articulated bus. Articulated buses not available powered by natural gas - the ones available "not recommended in the industry". These new buses would therefore be the 40 ft. because we are "at our max for the small buses". Will be reporting back before buying any, on 18 year life cycle and use of natural gas. Whitehead : ".tour of the HSR garage - certainly a lot of buses in there getting fixed." Pearson : ".purchasing low rise.drop down buses?" Crockett : Yes. A full report coming on all aspects. Kelly : "Obviously I want to be supportive of this.what do we do with the old buses.resell them.?" Crockett : ".try to salvage.get whatever value we can.". Kelly : 10 buses? Crockett : ".11.salvage value .reinvested back into the reserve for the replacement.salvage value built into our reserve calculations over time.for future replacements".

(Merulla/Morelli)
(h) That the 2004 Fleet & Hamilton Emergency Services projected vehicle purchases as per Appendix 1-15 of Book 1 to Report FCS04011, be approved in principle.
CARRIED .

DiIanni : "Motion on 'd', 'e', 'f', or 'g'?" Merulla : "I'll move 'd', upon review".
Motion: ( Mitchell/Kelly)
d) That the revised $69,332,000 2004 Tax-supported Capital Levy - Option D as identified in Table 1, be approved as amended.

Bruckler : Can't approve without tree planting being incorporated within the capital budget. Sites the $1.3M requirement to replace trees currently being lost. He wants to recommend $400,000 per year, as a start, into the capital budget for tree replacement. DiIanni/Clerk : Discussion re motion. Crockett : In the report (breakdown on capital budget re Collins request) will be the implications of adding back the tree planting program. "Bottom line, something's going to fall off the capital budget to add in anything". It will outline in $400K increments. Tree planting has a staff component, which is why it traditionally has been within the operating budget.

Collins : Commonwealth funds - unallocated .amount? Tollis : Overall surplus? Books still open.there is a surplus between $200-$250K.province and feds may ask for some money back" Collins : ".designate those funds, if .receive permission from other levels of government.put towards the tree planting program. Want to make a motion on this. A ward project is being scaled back (King St. project, Potruff to Nash - from $1.2M now down to $900,000).offering the $300K to tree planting.

Motion: (Collins/Morelli)
That the Commonwealth games surplus be utilized towards the tree planting programme subject to approval by the Provincial and Federal Governments. CARRIED .

Motion: (Collins/Jackson)
That $300,000 be re-allocated from the King Street/Potruff to Nash Road project to tree planting programme. CARRIED .

McHattie : Valley Inn Project - $250K this year, 10 year cycle $1.35M. Is this based vehicle or pedestrian use.only pedestrian.less expensive. . Crockett : Funding worse case scenario - both options. Want to make sure have enough funding for whatever the EA (environmental assessment) recommends. If goes pedestrian only, will report back and reallocate savings.

McHattie : Cycling budget ($300K) included in the revised $69M tax supported capital levy Option D? Crockett : Yes, in Option D.

McHattie : "And.we're talking about approving the whole capital budget at this time. I think it's important to just talk about the Red Hill project as well.I know we talk about it later on in 'g'. But this time we're already approving it. Just want to ask a question about the status of that project that may influence our decision. It's my understanding the certificate of approval for the Rennie St. landfill site needs to be amended.hasn't been finalized yet. Can we get a quick update about.what happens if we don't get that approved by the MOE (Ministry of the Environment).?" Crockett : "We are going through the C. of A. update process, if we don't get it.will have to report back.. See no reason.that we would not get that.routine". McHattie : "Is that also based on the discussions at the Rennie St. CLC as well.? Staff : We meet with the Rennie St. CLC on a fairly frequent basis.they have a consultant that's assisting them in this process, that we pay for. We're working through the issues on a fairly steady pace, and the understanding.with the MOE is that the CLC will have an opportunity to comment on any amendment to the C. of A. The understanding with the Expressway Implementation Committee is that they would be given an opportunity to be informed about the process, and again, to provide comment. .We are addressing their issues. The information.from these discussions is going to the Ministry, and we stay in pretty good contact with them in terms of the whole C. of A. process.We don't see an issue." McHattie ".I continue be worried about investing in this project at this time. With table two we've got only $8M that's available to other projects next year pending another grab from the FF. It's continuing to be a worrisome project financially. The fact that there's the industrial park that maybe may happen - there may actually be some industrial use in the business park up top if this happens - the pay back on that is still probably at best 4 or 5 years away. At the same time, I look through the capital budget and I only see.$2.4M in downtown renewal, and only $100K set aside for brownfields - The Brownfield Erase Program. So, those are two programs where I see immediate payback, financially - I'm talking economic development here - and those are immediate payback. The Red Hill project does not have immediate payback and that's very disturbing to me from an economic development perspective, which is a priority of this Council. We may not see that another 4 or 5 years, and before we invest another $50M or so in additional infrastructure to service that industrial park. I'll just end up by saying that the tree planting program is very important.where are we up to on that?" DiIanni/Staff : Total of from $700K to $900K. McHattie : Need $1.3M..to replace. Glad to hear we're dealing with it as urban infrastructure, because it certainly is. ".Finish off by saying the $122M from the Province for Red Hill Expressway, we know that some of the MPPs have suggested that money can be used here in Hamilton for other projects - that they'll protect that money if we decide not to build the Red Hill Expressway. In the spirit of the last couple of comments.I'd like to put forth the $122M for tree planting." (cheers from the gallery) DiIanni : "I'll take that as a motion.if you're serious.see what the will of Council is".

DiIanni/Powers/Tollis : They have a discussion of order of items.

Power : "I'm certainly not as generous as Councillor McHattie.but I'm certainly prepared to offer up $33M to do whatever the City wants to do.. 'e' up to $69M.I have $460K of savings (in capital projects from his ward).contingent upon everyone else buying in."

DiIanni/Staff/Clerk : More on procedure and order of items.. (re Powers) "I know the spirit of yours was 'well, if everybody does it, I'll do it too'. Maybe we could turn that around to say 'lead by example, and hopefully others will do that as well".

Howath : Clarification on the tree-planting fund to include the tree and the labour to plant them? Crockett : Yes. But we will also have to get an increase in the complement to hire someone. And, it does not include any ongoing operating costs. Horwath : ".what happens to the surpluses (when projects are completed under budget)?" Crockett : "monies that are a result of favourable tenders" come back to Council. Horwath : "Then it's program by program and surpluses generated into the next line of priority?" She suggests putting that money into trees and annualizing this."until we get a sustainable tree planting program in place". Crockett : ".that's not an annual building of the program, it's a one time.(and the surplus goes to the next related project)" Horwath : Understands. "For the time being.plow back surpluses into the program.this is something Council's prior zed". DiIanni : ".policy direction." Jackson : ".appreciate the spirit.concern.surplus dollars from road resurfacing tenders.I've got roads on the supplementary list, and if we're now suddenly going to.siphon some of that towards the tree planting. - and I'm here supporting, trying to find dollars for that program - I might loose out on some of the roads that are on the.list that won't get done." DiIanni : ".suggest we see this as a policy issue because there are implications".

Mitchell : Agrees re policy issue. ".I want to see the public encouraged to volunteer in it." He describes co-operative tree planting policies in former times in Glanbrook. Encourage this so that "we have more tree planting taking place.it's not uncommon in the rural areas for local people to pay to replace the trees themselves and not have it done by tax dollars in any way, shape or form". Other issue: Page 6 and 7.currently lowest interest rates ever seen. ".with the most environmental problems and infrastructure problems". At these rates the province would allow Hamilton to borrow up to $1.7B. Debt supported debt forecast is $372M in 2006 is 'well below this amount. ".and we're looking into borrowing from ourselves. He wonders if the figures are "misleading." Tollis : ".the amount that we borrow is based on what we need to borrow.we do take advantage of rates.(currently borrowing) $50M because of the rates.but to borrow a lot of money when we don't need it is not prudent". Mitchell : ".who's making that determination whether the need is now or.3 or 4 years from now? .these figures show that we're doing very, very well". He reads out budget line figures for Waste Management construction, plan study, Glanbrook Landfill redesign, storm water improvement, SWARU decommissioning, stating that as far as he knows some of this is not needed and "we ought to be able to save some money on some of these things.how necessary are they. .I know what happens here. We'll get a report back saying you passed it in budget, go spend it". Crockett : ".Glanbrook landfill site was designed to take ash, it need to be redesigned in order to take garbage, because we're not incinerating.new cells opening up.SWARU decommissioning. as part of Superbuild funding.commitment." Mitchell : Doesn't remember the figures being so high at the time of the decision re SWARU."and the figures just seem to keep going higher". Not putting capital back into what it's going to cost to replace the landfill site, which 'will be full in 2011." The energy from waste study is costing millions. "process looks to be a little flawed and I'd like to try to find to save some money in here". DiIanni : Collins wanted to speak to landfill site, "Mr Crockett handled it, do you want to add anything to that? .If you think it's all been said, that's fine". Collins : "I'll let the Councillor reread the reports that we've seen." (laughter)

Braden: Cites page 51.'growing our local economy' and page 41 'pay as you go'. Table one: capital levy $69M. ".how much is it that we really intend to spend. How much is - maybe I call it levy? How much is reserves or from the FF, and how much is increasing debt?" page 56, Option D, 2004, 'total affordable new capital gross $173M'. "are we spending $173M this year? .I'm confused". Crocket t: ".we're committing to $173M of expenditure.some of those projects may.be a 2 year cash flow." Braden: ".how much are we borrowing.?" Tollis : The debt for 2004 is $51M. (tape turned over here, may have lost a few words) .including subsidies is approximately $55M, development charges are $16M, transfer from operating - that's the current portion that we fund in the levy - that's $16, and the external debt is $51. (Slide 10 of the power point presentation). Braden : ".what's $69M in (Option)C or D.what is it that we're approving.what do you add to $69M to get up to $182? Tollis: The $69M is the actual amount that's going to the bottom line on the taxes.made up of various different components.additional debt, debt financing, reserves and so on.that's the net amount of money that's actually . taxed for, in order to generate enough funds to do the $180M in projects". Braden : ".strategic goal is job creation, or growing the economy.how much of the $182M or the $69M or the operating budget or the capital budget is going directly to deal with our strategic goal number one.how much of the billion dollars we're going to spend this year.? This is not a facetious question". Crockett : ".it's a difficult question to answer. .I could argue that infrastructure renewal is an economic aspect of urban renewal.but in reality we're an old municipality that's reinvesting in old infrastructure and quite frankly that's a substantial part of Neil (Manager of Economic Development) being able to do his part, in terms of selling the economics of our community." Braden : "Let me be more direct. If we had 20 or 30 or 40 million dollars from the FF, and with that money directly, our number one goal was try to create land that's going to result directly in job creation. Would we not put that into some sort of servicing at Clappison's, or Ancaster or north Glanbrook or near the Airport.where all of the research - that we've hired and paid for through the consultants - tells us is going to generate 65% of all the new jobs? Don't let me put facts and figures in your mouth, but that's what we're told. I want to know if we are spending any money directly, apart from the one Stoney Creek exception, to create jobs or benefit from jobs. Of course, the answer I believe is that we're putting in nothing.." Crockett : $7M for Stoney Creek. "Within the tax budget I believe there was fund approved within the rate budget for sanitary servicing of water out to the Airport and so on.$8M" Braden : "I'm almost satisfied with that, ( DiIanni interjects "I'm not) but just a secondary to that.is it true that there are no funds set aside in the next 10 years to do industrial parks.other than that little $2.5M somewhere.? Crockett : $50M over the 10 years identified in the rate budget. Specific projects not identified, "but did include in the 10 year forecast for the rate budget almost $50M in terms of servicing lands around the Airport". Braden : "I've done my best simply to point out.that we've got a strategic goal that I'm interested in, and our budget falls way short of dealing with that number one goal". DiIanni : ".we're asking political questions of technical staff, and that's not fair". Braden responds (no mic) (laughter) DiIanni : "I rest my case".

Merulla : ".with respect to the expressway itself, how are we doing budgetarily speaking, with targets?" Crockett : "Right now we're on budget. Part of the question, will become a little clearer, and again I'm not trying to be evasive, but part of the question will become a little clearer as we put out our larger contracts over the course of this spring and next fall". Merulla : "I'm working on a project.inner city parkland dedication. Presently brownfield or infill development that's .a residential project, those parkland dedication fees go to a general pot, which I think is a little unfair.. Maybe we should move toward separating parkland dedication - one for development and one for re development..motion in the event that we do have a surplus from the expressway, that those monies be allocated to the .lower escarpment wards for parkland re development, which.would then focus on a number of issues related to the urban sprawl issue and the parkland dedication fees that are attached to that. The inner city doesn't really see any development fees reallocated.."

Motion: (Merulla/Morelli) That Staff report back on the following: That the expressway surplus be dedicated to a special parkland redevelopment fund for inner city wards 1-5. CARRIED .

Whitehead : Can find $ temporarily for tree planting. Reads poem re the value of trees. One time savings only. Crockett : Cautions that there are implications of not doing a road project (if that's what the Councillors are finding for savings). Sewers and water have to be done anyway, and they're attempting to go into a road right of way once only to minimize the disruption on the community, and they've spent time to make sure those budgets are as interlinked as possible. Whitehead : ".programs in both Toronto and Winnipeg.where it will cut costs because it's more on a volunteer basis - the city provides the trees, and a lot of them are donated" He wants to look at these other programs and perhaps change our policies. McHattie : ".The Toronto Tree Advocacy Program, run through the economic development department - interesting, economic development and trees - I've asked Neil Everson to look at that program. Toronto Hydro plays a key role in that program, and I've asked Art Leitch to look at that as well.also a citizen, Gary Henden, who's put together a program similar to the one in Toronto. So we should work together on that".

Collins : Line item Option D.furniture for City Hall. Information requested.

Powers : Offering up 3 project savings: Pg. 195 allocation reduced from $595K down to $300K (retrofit Lions Community Centre). Pg. 242 resurfacing Dundas Driving Park, asked that that $90K project be removed for this year. ".one that will never come back again, on page 240, is removal of $70 for the pedestrian bridge Centennial Park. That will be funded by public subscription, .service clubs". $455K in savings, "and certainly we'd like our fair share of trees in Dundas." Also, has infrastructure ones, but needs to dialogue with staff re the implications. Collins : Intentions? (FF or trees) Powers : (hesitates) ".Trees.I'll come up with some other ones for the FF " Tollis : "Careful. source of funding important.using dedicated reserves won't be able to transfer into something that's not used for that purpose." .

Motion: (Powers/Kelly)
Staff to report back on the following reductions and the implications on the global budget: Page 195 - allocation from $595,000 to $300,000 - retrofit of Dundas Lion community centre. Page 242 - resurfacing of roadway Dundas driving park - remove $90,000

Powers : ".there were a number of recommendations that the previous Council approved at the end of the 2003 budget, that Staff was to take a look at for dialogue this year. I've copied those (and handed them out).and would ask that when we get to those that Staff be in a position to respond to that direction." DiIanni : ".haven't seen that, but we'll take that information".

Whitehead : Has savings to add from project not yet ready to go ahead: William Connell park. Also, DARTS $400K surplus? Horwath : "Put it in taxi-script Mr. Mayor". DiIanni : "That'd be an excellent idea.can we look into that first before we decide what to do with it.DARTS surplus.."

Motion: (Whitehead/Kelly)
Staff to report back on the following reductions: $130,000 - William Connell Community Park $400,000 surplus in DARTS CARRIED .

Jackson : "Bruckler.his was also incorporating some of the suggestions that have now come to light from various members of Council, so that would be all encompassing within Councillor Bruckler's suggestion." DiIanni : "All in favour of that.that's carried".

Motion: ( Bruckler/Collins) That Public Works staff report back on integration of $400,000 per year for tree replacement programme. CARRIED .

McHattie: "I'll move that, in the spirit of trying to offer money, that the funds from the Province.that were set aside for the expressway ( DiIanni interjects "The one's we've spent?") - $122M.be, as per discussion per MPPs last year, and we can verify that, be dedicated for tree planting , in the larger city of Hamilton".

Motion: (McHattie/Horwath)
That the $122 million provincial dollars dedicated to the expressway be reallocated to tree planting. DEFEATED .

McHattie : "I though that'd pass.(Horwath laughs).don't you like tree planting?"

DiIanni : "We're now at a point where I think we can deal with the items 'g', 'f'','e', and 'd' in that order, perhaps. subject to the reviews from before. I need a motion on 'g' - Capital Budget and Financing Plan for the Expressway - . moved by Kelly, seconded by Jackson".

Braden : "I've been trying to assess.the Native apparent approval of this particular project. I'm starting to call Chiefs one at a time - I've only got two, only one in writing - but I will have more later. By and large the support that's been alluded to doesn't seem to be there. That needs to be dealt with sometime, because I think the assumption here is in this Council is that somehow the two Native governments are in fact in favour - have ratified something. I think we need to be careful with the language. What I find in fact is not what we've been led to believe, so we have a problem. There was a question brought up by Councillor McHattie the other day, and unfortunately, I was the chairman, so I was a bit hamstrung by that problem. But I think what the Natives are now saying is, 'what if you don't get our approval, what are you going to do?' And they are kind of a blunt people - they like answers. So, I think Mr. Mayor that you need to step up to the plate sometime and decide whether or not you're going to answer that question.and I think they need an answer". DiIanni: "Councillor McCarthy" McCarthy : I just want to be recorded as opposed to item 'g'. It comes down to the RHCE in terms of financing. I think it's going to bankrupt the city, so on all issues regarding this I'd like to be recorded as opposed. DiIanni : "Very good. I think we'll probably take a standing recorded vote on that, just to satisfy people.."

Motion: (Kelly/Jackson)
(g) That the 2004 Tax Supported Capital Budget and Financing Plan for the Expressway in the amount $32,909,000, including additional debenture financing in the amount of $17,661,000 as per Appendix 1-14 of Book 1 to Report FCS04011, be approved. CARRIED . Item g) carried on a recorded vote as follows: Yeas: Mayor DiIanni, Councillors Bruckler, Collins, Jackson, Kelly, Mitchell, Merulla, Morelli, Pearson, Whitehead. Total: 10 Nays: Councillors Braden, Horwath, McCarthy, McHattie. Total: 4

Motion: (Jackson/Merulla)
f) That the 2005 to 2013 Departmental Capital Project lists - Option D - which includes the future growth related capital projects required for development purposes as identified in Appendix 2, be approved in principle as a forecast. CARRIED . Councillor McCarthy Opposed

Motion: (Jackson/Collins)
e) That the 2004 Tax Supported Capital Budget and Financing Plan - Option D as identified in Appendix 1, be approved as amended. CARRIED. Councillor McCarthy Opposed

Motion: (Mitchell/Kelly) (on the tape this was seconded by Pearson )
d) That the revised $69,332,000 2004 Tax-supported Capital Levy - Option D as identified in Table 1, be approved as amended. CARRIED ( DiIanni on tape "opposition noted" - but not recorded in city minutes)

Other motions pertaining to 4.1: (but not on the taped portion of the meeting)
(Merulla/Morelli)
(h) That the 2004 Fleet & Hamilton Emergency Services projected vehicle purchases as per Appendix 1-15 of Book 1 to Report FCS04011, be approved in principle. CARRIED.

(Horwath/Bruckler)
(i) That staff prepare a report to Council and the Hamilton Future Fund Board Of Governors detailing Hamilton Future Fund Reserve funding options and capital budget impacts with regards to the City's capital affordability deficit for the years 2005-2007. CARRIED.

(Merulla/Morelli)
That as the sole shareholder of the Hamilton Utilities Corporation, that Hamilton Utilities be requested to provide the following information to Council:
(i) Forecast from hydro on any forthcoming dividend monies;
(ii) Expenses relating to salaries, bonuses, for the entire HUC corporation, including the board of governors. CARRIED .

(Collins/Merulla)
That Staff report back Line item in option D - furniture for city hall - a breakdown of where furniture is being placed. CARRIED .

Other Business: Selection Committee

DiIanni : "Before we adjourn, there's a motion before you in regards to the Selection Committee.try to fix some of the things that need to be fixed.we have some citizens who are waiting for some appointments to be made." Whitehead : (no mic) DiIanni : "I think there's a commitment to have further discussions and revisit that we said, but we just need to recognize the resignations that have been made, first of all, and we need to deal with the interviews that are coming up on Monday as well". Horwath: ".Is it the intent that the Selection Committee will remain a committee of 5 for the remainder of the term?" DiIanni : "Yes.let's see how quickly I can find the compromise that we talked of, and then we can revisit that". Horwath : "Then perhaps a further piece of the motion is required that further discussion regarding selection committee policies and makeup of the committee be undertaken". DiIanni : "I'll take that as an amendment.or perhaps as item 'c', that we immediately review the selection committee process". Horwath : ".dangerous to have that small of a group.. diversity .is extremely important.process is one where various members of Council with various perspectives and backgrounds and interests, sit together to appoint.. That's a healthy process.. I think 5 is too small.. But, having gone through what we went through this week, I fear that it might be a committee of 1 or 3 or so that other people want. I hope.when we resolve.respect all around. .sanctity of that particular committee - it's not the same as other committees. I hope that in review .what's been a gentle people's understanding, at least for the 6 years that I've been here, is reinforced in policy.." Collins : (sarcastically?) ".maybe we want to reduce the number that's been put before us down to a lower number, in light of what's gone on." DiIanni/Collins: Went back and forth re number (DiIanni didn't pick up the sarcasm). Merulla : ".wondering if possible to have resumes for all the candidates circulated to all Councillor members just in the event that I have a friend or relative that I might want to bring forward.to overturn the Committee decision.." DiIanni : "I'll suggest to you that all the information is available through Clerks, and if you're interested you can contact Clerks and see all that". Merulla : "And, are we informing all candidates that the selection is more political than based on merit. Why would we have people waste their time.should we not make it public that's it's politically motivated - if you don't have your nine votes, perhaps if you didn't campaign for somebody or whatever, you're not going to get on. It's really saddening to know that really good people in our community are qualified, are coming forward and are rejected as a result of not being in the political process.inform community of that, quite loudly actually". Whitehead : ".I'm not sure what the relevance of the Selection Committee is and I would suggest that we eliminate (it) altogether, and let Council deal with it like they did Wednesday night". DiIanni : To Clerk: ".if people show up to the Selection Committee, do they have any standing?" Clerk: ".allowed to speak, but not allowed to vote". DiIanni : "So that latitude is there. Ok, we have items 'a', 'b', and 'c', all those in favour? I didn't say against, but I heard majority yeses for these points."

Motion: (Horwath/Kelly)
(a) That the resignations of Councillors B. Morelli, T. Whitehead, C. Collins, S. Merulla from the Selection Committee be received; CARRIED .
(b) That the Membership to the Selection Committee as approved by City Council at its meeting of December 3, 2003, be amended by reducing the membership from 9 members to 5. CARRIED .
(c) That a review of the Selection Committee process be conducted with respect to policy and composition of the committee.
Amendment CARRIED.
For information on the history leading up to this situation see: http://www.environmenthamilton.org/CATCH/council/council_040324.htm.

Mitchell : Advised Council on changes to the membership of the Development Charges Committee. McHattie had joined to make 5 in total, but Councillor Collins resigned, so now it's back to 4, which is what it was set up to be originally.