June 23/04 Report
1:45 - 3:50pm

In attendance :

• Committee members: Kelly (chairing due to absence of DiIanni), Merulla, Collins, Ferguson. Absent: Jackson
• Others: Braden, McHattie, Whitehead
• Staff: Peace (General Manager), Rinaldo (Finance), Coveyduck (Planning), Graham (Human Resouces), Chris Murray (Expressway implementation), Stephen Robichaud (GRIDS), and 5-6 others.
• Public: one
• (Quorum lost twice, briefly. Collins and Merulla talking all though Braden's GRIDS comments.)

Note: The meeting was taped, but I did not realize until later that the hook-ups to the system were not working (on-going problem between June and August), hence notes are not as complete as they should be.

Item 7.1 Presentation: Growth Related Integrated Development Strategy (GRIDS) - Project Status Update :
http://www.city.hamilton.on.ca/Clerk/
agendas-minutes-reports/Strategic-Planning-Budgets/
2004/Jun23/CM04017%20GRIDS_Project%20Status%20Update.pdf

Staff Recommendation:

(a) That Report CM04017, Growth Related Integrated Development Strategy - Status Update be received for information;

(b) That Council of the City of Hamilton confirm that for the purpose of development of the long list of development options in accordance with the approved GRIDS Study Design the following growth projections and employment land needs be utilized and incorporated into the public consultation components of the GRIDS process:

1. a projected population of 622,000 by 2031;
2. a projected household growth of 81,000 households for the 2001-2031 time period;
3. that the minimum employment land needs be established at 285 ha;
4. that to facilitate the development of the Hamilton International Airport as a economic growth node within the City of Hamilton and Golden Horseshoe area, that an additional 400ha - 800ha employment lands be incorporated into the development and evaluation of the growth scenarios; and,

(c) That staff be directed to consult with the Mayor's Advisory Committee regarding the GRIDS growth options for the City of Hamilton for review and evaluation and that the comments from the Mayor's Advisory Committee be incorporated into the growth options for presentation and consideration by Council.

Presentation:
Staff (Steve Robichaud - author of the staff report):
"Population growth projections are based on previous new housing starts."

" In mid-2003 staff began work on comprehensive growth forecasts using updated Census data.The growth scenarios prepared by CSE are based on the assumption that Hamilton will be under pressure to grow more in the next 25 to 30 years than it has grown in the past, due in part to the City's strategic location in the south end of Ontario's Golden Horseshoe.. Based on the City's historical growth rates, the supply of residential land and current provincial infrastructure plans, the 'Current Growth' scenario (as opposed to the 'Aggressive Growth' scenario) is considered most likely in the 2001-2031 time period. The Current Growth scenario is based on the assumption that the City of Hamilton will grow by about 4,000 people per year, which is consistent with our growth rates in the 1996-2001 period and its associated housing starts (approximately 2,000 units on average between 1988-2003) ". (The whole report is important reading - For more information about GRIDS see:
http://environmenthamilton.org/projects/ppp/grids.htm )

Discussion:

Ferguson: He had questions as to the effect that the Provincial Greenbelt legislation will have on the Hamilton's GRIDS process, and whether staff anticipates that the 'holding zone' will be consistent or removed after the one year moratorium. Staff (Robichaud) : I didn't catch the answer in my notes, except that he said something about the Minister deciding. Then Ferguson wanted to know when the moratorium ends. Staff : December. Also a comment about the acknowledgement of the need for some greenfield as well as infield and brownfield development in future scenarios. Kelly: Comment or question about all the other 'processes' going on re evaluation and projection of future growth and associated planning and how that affects the GRIDS process. Staff (Coveyduck): All processes going on in parallel. Ferguson : Wonders about the current applications in the 'holding zone', and whether these will be allowed to proceed.and something about 'removal in two weeks'? Coveyduck : Will check Provincial website re timing . Ferguson : How many holding? Missed the answer. Ferguson: GRIDS completion date? Staff: Summer 2005 Ferguson: (When) employment lands identified? Staff: This summer, then in fall short list .public consultation and costing out to be done. Ferguson: GRIDS shelf life? 20 years? Staff: 30 years. Ferguson: 'Official Plan'.rationalization? Can't go forward without GRIDS? Coveyduck : Yes, but parallel. Ferguson: Will there be community consultation on the Official Plan? Coveyduck: Yes. Kelly : Mayor's advisory committee also (public!)

McHattie : This is the strategic stage to identify population projections. How - reactive or proactive? Re principles . We can say we don't want so many (people). Staff (Robichaud): The process is guided by 9 strategic goals and we'll be asking the public for comment this fall and winter. We'll be presenting options . This may 'hit us like a ton of bricks' unless planning for projected population. McHattie : References Vision 2020 - population projections - should we argue re actual numbers or carrying capacity ? Do it this way? Staff : (not addressing carrying capacity) Thorough evaluation with criterion will look at this to see whether "acceptable to the community". Current mismatch between jobs and housing.may conclude to increase jobs and 'stay' housing."smart growth". McHattie : Employment lands approach. jobs , or jobs/land? Where is tourism in this plan? Staff : "Consultant" will be addressing this. McHattie : Subtract lands/jobs vs. all jobs. Staff : We need "good" jobs."serve industry's needs". McHattie : "Triple bottom line planning - external steering committee".who's on? Staff : Representatives from the Chamber of Commerce, Homebuilding industry, Public Health, Social/Recreation(?), Dofasco, Bay Area Restoration (BARC).'6 member organizations'. McHattie : Population is going down in the older city.there are numerous opportunities for intensification. Staff : Aging stock is why projection.7-13,000 potential units through intensification."go to business to see feasibility, then come up with numbers". Province very clear - look inward first.

Whitehead : Density.employment lands vs. housing.allow low density to be built? Staff (Robichaud): Provincial est. minimum densities. 2700units/yr.demand. An issue. Whitehead: Balance jobs/acreage. Staff: Financial implication of different options.assessment can't.(missed this) Whitehead : Population projections? Ours not growing. Method re projections? Hamilton's not accurate last 10 years. Staff: 2001 census.ours based on past trends. 1996-2001 higher than projected. Province uses a different method. Whitehead : Re an email received from finance.why are there different numbers? Rinaldo: answers, but I missed this.and a couple of other comments. Whitehead : Ad hoc approach to date. concern re long term cost to the taxpayer. Rinaldo : Report coming to Planning (committee).was delayed.new properties have higher value, equaling high taxes.

Kelly: ".I was in Washington recently.".

Braden : Example: Developers took city to court in Flamborough re lack of available (land?).1000-3000/yr.. "There's a difference between need and demand.(if we) etch projections in stone, then they become the bible.love affair with growth.not logical.emotional.boast. (quorum lost briefly at this point.).number is a whim.what happens when we take that number? Flamborough doesn't want more houses" OMB? Airport? 10 years. Businesses leaving.no employment lands.( Kelly : interjects to warn re "5 minute rule") drives development industry to push boundaries.difference between stronger community and (missed this).this is saying open the doors.". Kelly : (angrily) "I take exception to when you pull numbers out of the air.before you make statements re businesses not coming here.look at the facts.doing better.take exception.please read reports before you make these statements". Braden : ".want to believe in a much better future.numbers our literature says.all tied up in employment lands.no plan re this.some isolated successes". Kelly and Braden go back and forth disagreeing about this. Braden : ".I'm a member of the club.". Kelly : ".agree to disagree".

Collins: Comments re the absence of waterfront.using Setting Sail study? Other communities are using waterfront for economic growth . Staff (Robichaud): Setting Sail will be referred to the consultant. Collins: How do we gauge priority for this? Maybe by the dollar amounts for each project? (missed answer) Will the larger list (of projects?) come to Council or just short options? Staff: Brought to Mayor's advisory committee and Council. Kelly: .involved in harbourlands discussion. Coveyduck: .coming in Sept.. Collins: re Port Authority: "What business should they be in"? Not housing, but marine! What does the federal legislation permit? Will staff report on this before September? Kelly: (interjects) "Neil and I talked.". Collins: At the end of the day I just want to make sure that stuff happens and gets built.

Merulla:
Infill? Brownfields? (for more information about brownfields and the ERASE program see: http://www.hamilton.ca/business/redevelop/
brownfields/pdf/brownfields-erase.pdf) Staff: This is a 1 st priority. The Premier says 'look in before out' There's 15-20 years worth of vacant land available in the city. We'll do that first. Merulla: (But, historically Hamilton has been) developing greenfields instead of brownfields. Staff: He's working with a guy (?) on this. Merulla: This in not highlighted in the report". Staff: Comments about housing and employment. There is a problem with brownfields - there are vacant sites but they're not on the market. Merulla: What about regulation exemption? Incentive for brownfield redevelopment? Rinaldo : That was for Slater Steel and only till the end of the year. We do have the ERASE program. I work with Piccioni (staffer on this program) regularly. The write off in taxes is absorbed in the budget. Merulla : ".benefits us down the road." Rinaldo : "Right-offs work very well in Hamilton". Merulla : Make a motion? Rinaldo : ERASE no longer applies to education portion (of taxes?) We're working with the Minister of Municipal Affairs as to how to implement that. (This from an Aug. 2003 Council report ". , the Mayor.(sent) a letter to Ontario's Minister of Municipal Affairs and Housing and Minister of Finance, requesting that the education tax assistance for brownfields that is permitted under Section 365.1 of the Municipal Act be assignable by property owners, in a similar fashion to grants and loans under Section 28 of the Planning Act.)

Ferguson : "This Council has no interest in expanding the urban boundary for residential growth". (I noted this as a question in my notes) Staff : Response references the Provincial green belt. Ferguson : 15 years? What about .? (sounded like scubbie, but could be SCPI - Supporting Communities Partnership Initiative - but this Federal program is usually used to address homelessness issues through funding for housing). OMB hearing? Coveyduck : Boundary expansion depends on the outcome of the 'scubbie', and also the ROPA 9 (Regional Official Plan Amendment) hearing. Ferguson : I want to make that motion (that council has no interest in expanding the urban boundary for residential growth). Coveyduck : Better to wait until GRIDS process is finished - don't want to prejudice the outcome. I understand where council's 'head it' in terms of boundary expansion. Kelly : Concurs, and would like to see the numbers.

Motion : Merulla moves the staff recommendation and it is CARRIED .

Item: 8.1 Process for Consolidated Performance Reporting to the Community. http://www.city.hamilton.on.ca/Clerk/agendas-minutes-reports/
Strategic-Planning-Budgets/2004/Jun23/
CM04020%20Reporting%20Performance
%20to%20the%20Community.pdf

Staff Recommendation:
(a) That the directions for reporting performance to the community as described in City Manager Report (above) be adopted;
(b) That the indicators report for Vision 2020 (including associated funds) be scoped and incorporated into the Annual Report effective for the 2004 Annual Report.

Discussion:
McHattie : He is pleased that the recommendation includes scoping Vision 2020. Whitehead : What about the overtime issue as an example of performance? Staff: (Glen Peace, City Manager) This is service performance. Whitehead: Is there another indicator for this? Peace: Yes, in the budget process. This is a report card.

Motion: Collins/Merulla moved the staff recommendation and it is CARRIED.

Item 8.2 a) Report from External Auditor Grant Thornton - 2003 Audited Financial Statements http://www.city.hamilton.on.ca/Clerk/
agendas-minutes-reports/Strategic-Planning-Budgets/
2004/Jun23/City%20of%20Hamilton%20-
%20(DRAFT)%20Concluding%20memo%20fiscal%202003.pdf

Item 8.3 b) 2003 Audited Financial Report
http://www.city.hamilton.on.ca/Clerk/
agendas-minutes-reports/Strategic-Planning-Budgets/
2004/Jun23/FCS04087%202003%20Audited%20Financial%20Report.pdf

Staff Recommendation: That the 2003 Audited Financial Report for the City of Hamilton as attached to Report (above) be approved.

Discussion:
Staff Remarks (Joe Rinaldo, Finance Manager): We worked very closely with the auditors to accelerate the time frame. (The report is dated May 21 st , although the goal on the schedule presented by GT was May 7 th : from report: " ensure that the 2003 Financial Statements could be completed more timely than the 2002 Financial Statements. (Last year's audit came in dated August 8 th ) Grant Thornton's proposed timing included provisions for improved communication between staff and auditors and improved audit working papers. Grant Thornton's proposed audit schedule indicated that fieldwork would take place between April 5 th and 30 th and the financial statements would be signed off by May 7 th , 2004.")

Ferguson : Any irregularities to report? Auditor (Evan ? from Grant Thornton): No. This is not a 'value for $ report. We do a financial audit. Ferguson: Normal year? Staff: (Joe Rinaldo) : Because of amalgamation we need 3-5 years to sort things out. There are still a couple of items to sort out. Letters of recommendations.coming in the next couple of cycles (of meetings?). Also Social Services.unreconciled back several years (97-99).

Collins : What are the differences this year? What about the budget? Rinaldo : Example of MFP.revenues. Collins : Roads.write off? How did you determine the salt inventory item? (on differences page: " Write-off of Roads Inventory inaccurately stated in prior year - found to be listed as an overstatement of $2,000,000. (identified by management subsequent to finalizing 2002 FS)" Grant Thornton : Test inventory (of salt reserves) by going to several sites.staff identified this as one that they wanted to do (have the auditors look more specifically at). .(missed some dialogue between Collins and Rinaldo ) Collins : Salt item.budget pressure? Rinaldo : Variance.salt increased the amount of shortfall for 2004.vacancy rebates. Collins : What is the bottom line? Grant Thornton : Net expenditure $1.7M that should have been reported in previous years.

Merulla : Salt? Clarify? We paid for something we never received? Rinaldo : The salt was used in the previous years but not recorded in those years. Merulla : Was this an assumption.or paid for salt not used? Rinaldo : I don't believe so. Merulla : Checks and balances? Peace : This is noted in auditors Letter of Recommendations.will probably lead to more inventory counting. Merulla : Letter cited.coming? Rinaldo : August. Elaborated on what happened. Merulla : Questions re 'missing' salt. Rinaldo : Not 'missing' but not recorded . Merulla : ".assumptions.prefers to know exactly.$2M important enough issue." We got 19.5M from the Province to cover our social services expenses this year.this is not coming forward for next year.what are we doing about this? Peace : Political discussions.. Rinaldo : Confirms. Merulla : (That money was tied to the by-election.) moving along.Bonuses (in report) under the Act should be reported. Rinaldo : They're in there, except for sick leave.

Whitehead : Wanted more clarification on the salt issue. Rinaldo went through it again.

Motions to receive the reports 8.1 and 8.2 ( Ferguson/Merulla ) were CARRIED .

Item 8.3 Red Hill Creek Valley Park Development Reserve 102030 Update (Wards 4,5,6) http://www.city.hamilton.on.ca/Clerk/agendas-minutes-reports/
Strategic-Planning-Budgets/2004/Jun23/
FCS04094%20%20Red%20Hill%20Creek%20
Account%20102030%20Update.pdf
Staff recommendation : That the Update of the Redhill Creek Valley Park Development Reserve-102030, as outlined in Appendix 1, be received for information.
Background : Council voted on February 27, l998: " That the proceeds from the sale of the Red Hill Valley Property to the Region, required for the Freeway project, be credited to a new interest bearing reserve, ' Reserve for the Red Hill Creek Valley Development', established to address the needs of the Valley consistent with the principles of the Red Hill Creek Recreation and Open Space Master Plan." The initial balance to the Reserve account was $3,222,000. At its meeting held 1999, April 13 th , City Council approved an amended section 6 of the Seventh Report of the Finance and Administration Committee as follows: " That a Sub-Committee consisting of Ward Alderman of Wards 4, 5, and 6 be established for the purpose of recommending the allocation of funds in the Reserve Account set up from the City's sale of surplus Freeway Lands to the Region." This sub-committee recommended that the funding allocation would be equally distributed between the three wards. Balance remaining: $283,139.

Staff comment (Joe Rinaldo ): Background information hard to fin Good news - interest accrued. ($262,400)

Discussion:
"Ferguson: Reserves.02-03 increased? (missed answer)

Braden : When this reserve was set up what was its original purpose? Collins: In the late 80's...Regional Master Plan for Red Hill Valley. there was debate regarding the loss of green space as a result of the expressway being built. Council decided to set up a reserve for the wards affected. The money was earmarked for Parks and Recreation. Braden : What about the affected lands on the mountain? Collins : Yes, Ward 6 will be included. Braden : Concerning the current complaints and possible claims re noise etc.do we have a reserve for that? Rinaldo : No reserve for that in the project.

Merulla : The money has been used for playground structures and skateboard parks.not green spaces.

Whitehead : The amount when it was started? $2.2M? Rinaldo: $3M plus interest.

Motion to receive the report ( Merulla/Ferguson ) CARRIED.