February 17, 2005 Report - Budgets
1:43 pm to 3:55 pm (At 3:55 the meeting went in camera)

Attendance :

• Braden - absent.
• Bratina (in 1:30 pm , out 2X, missed 1hr.15min)
• Bruckler (in 1:38 pm , out 2X, missed 10min)
• Collins (in 1:38 pm , out 1X, missed 2min)
• Di Ianni (in 2:09 pm , out 2:43 pm , missed 1hr.46min)
• Ferguson (in 1:30 pm , out 3X, missed 22min)
• Jackson (in 1:30 pm , out 2X, missed 14min)
• Kelly - absent
• McCarthy (in 2:00 pm , out 3X, missed 37min)
• McHattie (in 1:30 pm , out 1X, missed 8min)
• Merulla (in 1:27 pm , out 2X, missed 9min)
• Mitchell (in 1:39 pm , out 2X, missed 14min)
• Morelli (in 1:51 pm , out 1X, missed 10min)
• Pearson - Chair (in 1:30 pm , no outs)
• Samson (in 1:39 pm , out 1X, missed 6min)
• Whitehead (in 1:45 pm , out 1X, missed 17min)

Staff: Peace, Rinaldo, Stewart, Coveyduck, Graham, Priel, Kay, Everson, Caterini, Gallagher, Gosnach, Christensen, Tollis, Fenwick.

Press : Spectator (Eric McGuiness); CHML (Ken Mann); CH (mobile cameraman), CATCH (Ed B. & Judy S.);

Budget Agenda:
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
committee-of-the-whole/2005/Budgets/Feb16/Agenda.pdf

(Note: The material below is prepared to the writer's best ability and is a paraphrasing of comments made. There may be errors or omissions or both. For greater certainty the reader should listen to the tape)

5.2.3B City Manager Operating Budget - (Book 2), Appendix 2-6, p. 246. (Not posted. CATCH has hard copy) Link to power point departmental presentation from Jan 11/05:
http://www.hamilton.ca/Finance/2005-budget/pdf-2005/
2005%20Budget%20-%20City%20Manager%20-%20Jan%2010.pdf

Merulla wondered about the public relations budget, asking about $30,000 for an annual report. There are 2 positions. Citizens' satisfaction survey was referred to and there were (to the writer) inconclusive comments about consultants. Merulla  also wondered what the consulting costs were related to.  Peace replied that the line item had been around $77,000 and that he had reduced this for 2005 by $10,000.

Ferguson asked who's the person at the reception desk outside city manager's office? Answer: This person is here on staff through a grant from EMS for a permanent disability work program.

It was moved by Ferguson and seconded by Jackson that the budget be recommended. CARRIED

Planning and Development Department:
Link to power point presentation - department budget information for 2005, presented on Jan 12/05:
http://www.hamilton.ca/Finance/2005-budget/pdf-2005/2005%20Budget
%20-%20Planning%20&%20Development%20-%20Jan%2011.pdf

5.2.4A - Cleanliness and Security in the Downtown Core Task Force Report : http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
committee-of-the-whole/2005/Budgets/Feb16/Cleanliness%20&
%20Secuirty%2005-001%20-%20Report%20-%20Enhancement%20of
%20Services%20Recommendations.pdf

Bratina made the presentation and in so doing thanked Ferguson for his considerable support in the project. The Focus Area is bounded by Queen, Cannon, Victoria and Hunter streets. There were 33 Short Term recommendations (accomplished to date: 26; and in progress: 7) and 13 Long Term Recommendations (11 accomplished to date; 2 in progress). There were 4 recommendations for 2005 with financial implications: 25 more litter containers, information kiosks, alleyway lights, sidewalk and alleyway flushing, increased parks maintenance, extending of Ambassador Program, internal surveillance cameras for businesses. The total cost of 2005 recommendations: Capital: $172,180; Operating: $266,690; Total: $436,870. Bratina said that when FCM (Federation of Canadian Municipalities) was in Hamilton there was praise for the cleanliness of the downtown of the city.

Collins wondered what comes out of the city's budget elsewhere to accommodate this item.

McHattie said he supported Bratina's material and wanted to know if there are indicators for monitoring this program. Bratina said the cost for picking up litter is $1million. McHattie reiterated that he'd like to see some measuring or monitoring to see if progress is being made.

Jackson supported the project, but he wanted staff to bring back a report explaining the Ambassador Program. Bratina explained that former Hamilton Councillor Andrea Horwath worked on this and that 8 people and 2 supervisors were hired for 7 days per week from April to September 2004. Will there be increased park maintenance? The Ambassador Program will include 3 student positions to focus on Wellington Park and on sidewalk planting beds. Jackson said he wants downtown to be safer and cleaner, but has concerns with the city supporting businesses with grants for cameras.

Whitehead wanted to know the total for the downtown project, with the staff reply: $1.7M.

Bruckler asked about selling advertising and, later, Mitchell spoke of advertising on stainless steel containers, which program he wanted extended; and he asked for a staff report.

Comments were made by Collins and Ferguson about 'bonusing' and subsidies for just the downtown and would there be similar treatment of other areas - other BIAs in the city? McCarthy, Samson and Jackson echoed these comments. Di Ianni wondered if there were funds for, say, 100 business (getting surveillance cameras) and what would you do if the 101 st business came along? He wanted a clear position on bonusing.

Mitchell wanted the private sector involved and would seek partnerships.

McCarthy asked that the report be referred back to staff.

McHattie called for deleting $50,000 from the total of $438,870 and so moved, was seconded by Collins . This CARRIED.

A motion was made by Mitchell, with Ferguson seconding, that the matter of $50,000 for cameras and bonusing thereon be referred to staff for a report. This motion was DEFEATED. (Although City minutes show just Jackson as opposed).

5.2.4B Planning and Development Operating Budget (Book 2), Appendix 2-1, page 7 (No copy posted, CATCH has hard copy. See departmental power point above for some details on this.)

5.2.4C Planning & Development User Fees (Book 1), Appendix 1-9, pages 69-102
http://www.hamilton.ca/Finance/2005-budget/
pdf-2005/H-P&D%20Development%20Planning.pdf

Merulla asked what is the overtime charge for licensing? Coveyduck responded: About $250,000, with very little of this actually budgeted. Revenues come from building permit fees. Merulla : How many staff would be involved in this overtime amount for licensing? Coveyduck : 15 to 20 individuals would be eligible, but it's not simple. 50 individuals would be involved in licensing and permits.

Whitehead : Is money from licensing and permits used to cover overtime? Coveyduck : Yes, that is correct. In the building department we have an "enterprise model" - self funded, with no impact on the levy. Money from building permits can only be used for this purpose.

Merulla : Are there costs for criminal background checks for staff? Coveyduck : Response not available.

Collins wanted to know if fees are charged for repeat inspections. Coveyduck : 1st inspections are free, but thereafter charges are made. But, in responding to complaints, we treat all inspections as new complaints and at these times we don't charge. She said she'd look into habitual violations situations.

Jackson : What is the amount of revenue you are hoping to generate? Coveyduck : In building permits we haven't increased fees because we are generating more revenues than costs. In animal control we brought to council a proposal for increased fees. In construction fees we've followed consumer price index. Jackson : p. 100, committee of adjustment fees, ranging from $100 to $1000, and you're recommending no change? Coveyduck : there is a supplementary report showing that fees are increasing.

Merulla : Can you tell me where aromatherapy licensing would fall under? The fee? Coveyduck : On p. 82 there are massage parlours, but nothing on aromatherapy. Merulla : That's exactly my point; the aromatherapy places are acting as fronts for body rub parlours. Wants to move that license fee to $10,000/year. Coveyduck : We are only allowed to charge for the exact services given. Merulla : Aromatherapy places are opening up everywhere and the same could apply to adult entertainment parlours, perhaps increasing those fees. Can you report back on this? Coveyduck : A report could be brought back to council. Council approved the fees last year.

Mitchell : Do we have a citywide policy regarding banquet halls licensing? Coveyduck : Check on p. 79 for "public hall." Mitchell : Animal control: we need to have urban and rural standards. Coveyduck : The fees involved here are those approved by City Council 2 months ago.

Whitehead : There are a lot of zeros (reflecting no increase in fee this year). What is included in recovery costs? Coveyduck : Under the Municipal Act we can't charge more for inspections than they cost; and for building permits the same applies. Whitehead : There are increased labour costs for staffing and yet I see no increases in fees.

Bruckler : Are we running a surplus in the licensing division? Coveyduck : Yes we are.

From the City minutes : ( Motion) Ferguson/Bruckler - That the Planning & Development operating budget (Book 2), Appendix 2-1, page 7, $13,374,710 be approved, inclusive of the zero net levy impact program enhancements identified in Operating Budget Book One, Appendix 1-6, page 56 CARRIED That the Planning & Development user fees (Book 1), Appendix 1-9, pages 69-102 be approved as amended by Attachment B to Report FCS05001. CARRIED. Planning & Development user fees (Book 1), Appendix 1-9, pages 69-102 CARRIED. Staff to report back on increasing adult entertainment parlour and aromatherapy fees.

Economic Development Department Link to Power Point departmental presentation:
http://www.hamilton.ca/Finance/2005-budget/pdf-2005/
2005%20Budget%20-%20Economic%20Development%20-%20Jan%2011.pdf

Pearson noted that the Aquafest funding item (#1) will be deferred to the Community Services section of the budget.

5.2.5A#2 City of Hamilton Support for the Hamilton Sport Tourism Action Plan :
(Presented by David Adames)
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
committee-of-the-whole/2005/Budgets/Feb16/ECO05002%20
Sport%20Tourism%20Action%20Plan.pdf

Collins : How will recommendations affect the levy? Adames : Cost implications for 2005 are at $65,000 and annualized cost beyond 2005 are at $150,000 plus the staff position. Collins : How do we fund this without increasing the levy? How would this grow assessment? Adames : Sport tourism is a big industry. We hosted the Sailing Championship, the Bell Canadian Open, the Cycling Championship, Vanier Cup, and the National Rugby Championship. We are looking at an annual cost of $200,000, which would create a build-up of knowledge and expertise.

Bruckler : He referred to Sport Moncton as an example of how a small community has worked on tourism.

Merulla : He had heard that 90 per cent of tourism was generated by Ambassadors or persons visiting relatives or friends. Adames : 87 per cent overnight visits were to friends and relatives.

McHattie : He wanted to know what's to take place in next 3 years. Adames : Vanier Cup generated 700 room nights in 2004. The rugby matches generated 1,500 room nights. The City is going after the 2007 Brier (Curling). We need to do assessments before going after events

Thereupon, after more discussion the Committee recommended that Council receive and endorse the Hamilton Sport Tourism Action Plan, that the City set up a reserve account for this project, to be funded initially from surplus funds from the 2010 Commonwealth Games bid, to be augmented by private and grant funds; that funds be retained in the reserve account to offset any costs and liabilities resulting from the possible termination of the Plan. Also that a new staff position be created to coordinate the project and that Councillor Whitehead be appointed to serve on the Sport Tourism Advisory Committee, and that staff is instructed to prepare a financial plan for year one of the implementation of the plan for 2006. 5 part Motion (Ferguson/Bruckler) CARRIED, Collins : recorded as opposed.

5.2.5A #3 1-7 "2005 Council Items Referred to Budget Process" - Two new business clusters
http://www.hamilton.ca/Finance/2005-budget/pdf-2005/
Appendix%201-7%20-%202005%20Council%20Items%20Referred
%20to%20Budget%20Process.pdf

(Note* These new 'clusters of innovation' - economic focus areas - actually started out as three: arts and culture, tourism, and the downtown, but now the first two seem to have been linked together, becoming culture and tourism in some documents, then just 'tourism' in the departmental budget presentation. The word 'culture' has been added to the film cluster. There was a proposal for a 'quality of life/education' cluster, but that seems to have been dropped. For more information on economic clusters see the CATCH article at
http://environmenthamilton.org/CATCH/articles/art_0410/art_041025plan.htm. The City website has information about clusters at
http://www.hamilton.ca/business/development/economic-sectors/default.asp, although it's somewhat outdated as it still lists the pre-dotcom crash cluster of 'information and communications technology' and doesn't list the port as a cluster, although this was included last year.)

Jackson : He referred to p. 58, Book 1: Staff is asking for an additional $300,000 for 3 FTE's ('full-time equivalent' positions)? Everson : Yes, and this not included currently. Jackson : Is this amount just parked somewhere? Rinaldo : If you approve this, you are approving the additional $300,000.

Whitehead : Sault Saint Marie, with 80,000 people has 3 times the budget (of Hamilton for this kind of work).

Bruckler : You have currently 5 business development officers and 6 industry clusters and 2 business development officers? Would staff be devoted to a particular cluster? Everson : Yes, and we have a full time person on brownfields and we are implementing a business retention and expansion program and for this we need bodies. We need to add one junior person re: industry.

Collins : If we make investments in this kind of program, how do we measure if we are successful? Everson : We are down this year by 9 per cent or $349,000. Rinaldo : This is "debt charges falling off." Everson : I am preparing a report and this should answer your questions.

Discussion concluded with the motion that the matter be tabled. (Put in the budget 'parking lot') CARRIED

5.2.5A#4 Appendix 1-7 "2005 Council Items Referred to Budget Process" - Funding support to (IEC) Industry Education Council (Budget Book 1 - page 59)

Jackson : Asked if this matter came out of committee and that wasn't this a staff recommendation? Everson : Yes, the presentation was made to committee and the committee decided to forward this on to the 2005 budget process. Jackson : The recommendation said this will strengthen the relationship between the city and the education sector. In what way? Everson : Presented an outline of relationships between education and the city. Jackson : Where would you put the $35,000? Everson : This could provide for a junior position in business retention.

This matter was also tabled.

5.2.5B Economic Development Operating Budget (Power point presentation on departmental budget:
http://www.hamilton.ca/Finance/2005-budget/pdf-2005/2005%20Budget
%20-%20Economic%20Development%20-%20Jan%2011.pdf)

This matter was deferred.

The meeting adjourned at 3:55 pm.