That the Corporate Services and Economic Development Committee confirm the Minutes of the 26 January 1998 Regular and Confidential meetings and the Minutes of the 26 January 1998 Joint Corporate Services and Economic Development Committee/OC Transpo Commission meeting.

CARRIED

CORPORATE SERVICES & ECONOMIC DEVELOPMENT COMMITTEE - APPOINTMENT OF COUNCILLOR R. CANTIN

The Regional Chair, R. Chiarelli, welcomed Councillor R. Cantin to his first meeting as a member of the Corporate Services and Economic Development Committee. Councillor Cantin’s appointment was confirmed by Regional Council at its meeting of 28 January 1998 (Motions 40 and 41 refer).

Councillor A. Munter, Chair, Community Services Committee (CSC), requested this matter be referred to the CSC for a thorough discussion on issues that relate to the assumption of ambulance services by the Region of Ottawa-Carleton. He stated that Council must make policy decisions on whether to let the Province of Ontario finalize the transfer of full administration and delivery by January 1, 2000 and then have Council pay for it, or whether the RMOC should assume these services at an earlier date.

Councillor M. Meilleur expressed total agreement with the request. She noted this matter is directly related to the provision of health services and she stressed the importance of presenting a well developed Council position in discussions with the Province.

The Chief Administrative Officer, M. Beckstead, made reference to the timeline established by the Province for the RFP and he indicated the appointment of the regional representative could be dealt with within a two-week period. He asked for, and was given, the authorization to advise the Province the RMOC will appoint its representative to the provincial Selection Committee by 25 February 1998.

CARRIED

4. PREPARING FOR YEAR 2000 WITHIN THE

Finance Commissioner’s report dated 19 Dec 97

Mr. G. Geddes, Manager, Year 2000 Project, made a presentation on the preparations within the RMOC for the Year 2000. He spoke about a spending plan that calls for a total expenditure of $19.2 million in the next three years, and he provided budget estimates related to that amount. He alluded to a number of cooperative efforts presently underway and he presented Year 2000 options saying the intent is to ensure that the day-to-day business of the regional corporation will not be impacted by technology failures caused by this particular date change.

The Committee heard from the Environment and Transportation Commissioner, M. Sheflin, who began by saying the systems that will be impacted are considered as infrastructure and products that are consumed, much like electricity and fuel: they are an integral part of the RMOC’s operation. The Year 2000 will affect components controlled by the SCADA system at the Lemieux Island and Britannia Pumping water plants, as well as embedded systems that compose part of the water distribution system. In addition, the operations at the Robert O. Pickard Environment Centre and at the Trail Road Landfill site will be affected. Many activities associated with the maintenance of roadway infrastructure are controlled by embedded systems that have a date component. Other systems including distribution networks, pressure zones and reservoir fillings are controlled through the SCADA system: from these automated control processes, the department has made significant gains in efficiency and has kept costs low. For these reasons, the resolution of Year 2000 compliance problems must be considered as an ongoing investment in department’s infrastructure to support day to day business.

Mr. Sheflin went on to say that, while staff will work over the next two years repairing or replacing systems, it must be noted that all problems will not be addressed before January 1, 2000; staff are trying to minimize both the number and the impact of the problems that will have to be resolved after that date. He concluded by saying that all systems would have to have been renewed and replaced over a period of time, however something that may have been done in five years will have to be done before the Year 2000 deadline.

The Social Services Commissioner, D. Stewart spoke about the Improving Client Service (ICS) initiative launched in 1994, saying its aim was to reduce and re-direct administrative resources and focus on employment outcomes. The department is in the final stages of this process and many applications have been automated. The department has 32 applications and 12 mainframe-based, client-led applications, as well as 19 applications associated with the requirements of the senior levels of government.

The Committee heard from Dr. G. Dunkley, Deputy Medical Officer of Health, who indicated the Department is reviewing all its systems and has identified 8 applications that could be done more efficiently. Some programs that are not Year 2000 compliant are: Immunization Records (160,000 records); Restaurant Inspections (12,000 inspections); communicable disease monitoring systems that feed into large provincial systems; client-patient records, specifically for the dental clinics and requiring close cooperation with the Social Services Department. Dr. Dunkley pointed out that many systems in use are provincial systems, and the department has been pressuring the Ministry of Health to assume its part of the responsibility with respect to Year 2000 compliance, without much success to date.

The Planning and Approvals Commissioner, N. Tunnacliffe, spoke about the systems required to operate and manage buildings owned or leased by the RMOC (62 owned, 64 leased). Computers operate fire alarms, access, heat, ventilation, elevators; they ensure the elimination of toxins such as carbon monoxide from underground garages; they operate systems specific to the requirements of law enforcement agencies and they ensure emergency power is available in long term care facilities such as Homes for the Aged. He said it will be critical, on January 1 2000, if any of these systems are unable to operate.

The Finance Commissioner, J. C. LeBelle spoke about the technology infrastructure staff looking at many other areas, for example, Wide Area Networks, and seeking alternatives for systems that will not be compliant before Year 2000. The most cost-effective solution may be to ensure mainframe compliance. With respect to Local Area Networks (LAN), network servers will have to be examined and made compliant. In the area of Personal Computers, any pre-Pentium chip PC will need to be replaced. Mr. LeBelle said there is relative certainty that the telecommunications system is Year 2000 compliant but staff will need to ensure all elements are operational and this will also be addressed over the next 18 months.

Councillor A. Munter asked if it were fair to assume that the cost of equipment and skills being purchased was $5 million. Having received an affirmative reply, he posited that, had the Region started the process one year ago, this cost could have been halved. The Councillor also presumed that upgrades will be to the latest versions and the best systems available. He inquired as to what component of the $19.2 million represents Year 2000 and what component represents state-of-the-art applications that will negate having to spend more money in subsequent years. G. Geddes replied there is not a simple answer to this question. Mr. Sheflin added the amounts could not easily be determined, however some guesstimates could be made. As to whether there would be requests for additional funding to address emerging problems, the Commissioner said staff will make the appropriate risk analysis before eliminating any system. In reply to a question about the source of the funding, Mr. LeBelle confirmed it would come from a number of reserve funds from each business entity and this information will be outlined in the Capital Budget document.

Councillor R. Cantin said he believed approximately $3.5 million is spent in an average year in all the budgets of the corporation, therefore this represents an incremental cost of 50% of regular business. Mr. LeBelle noted that the costs are associated with repairs and replacement and coming up with alternatives. With regard to the Environment and Transportation Department, Councillor Cantin asked whether suppliers could not provide major assistance. Commissioner Sheflin confirmed staff would investigate this option first, as these are the systems that have allowed regional costs to be kept low three years in a row, and he confirmed there will be no increase in rates for solutions or for upgrades. Councillor Cantin put forward a Motion calling for approximately half the requested amount to be approved, subject to subsequent amounts being approved as part of the budget deliberations.

Councillor M. Meilleur confessed she could not understand how the situation with Year 2000 had arisen, given the number of experts in the field and the information technologies available. Commissioner LeBelle pointed out there is growing acknowledgment that using only two digits to save space and reduce size was a strategic error made in the early days of computer development. Councillor Meilleur asked whether all the applications/programs listed in the report were obsolete. Mr. LeBelle replied in the negative. He clarified staff want to do a complete inventory of all technology in all departments to ensure there are no problems. He speculated many applications listed will not be affected. In reply to a question from Councillor Meilleur on product life-cycles, G. Geddes indicated these have dropped from 7 years to 6 months and even to every quarter for some applications and he speculated this situation may be profit-driven.

Councillor G. Hunter said he hoped there would be some kind of audit of the need to examine so many programs. Commissioner LeBelle assured the Councillor there will be prioritization as staff anticipate some difficulty in acquiring the resources needed and keeping the resources currently available.

In an effort to explain the relevance of dates on microprocessors, and in response to further questions from Councillor Hunter, the Director, Water Environment Protection Division, Ms. N. Scheppers, gave the example of a level indicator inside the SCADA system. She said there could be a problem if there is an embedded chip with a date inside the system. Staff are attempting to identify the critical parts of all these interconnecting systems, to ensure they communicate with one another and continue to function.

Councillor L. Davis said there are concerns staff are requesting a "blank cheque". She asked whether there is any in-house expertise relative to the industry to ensure the money isn’t being spent carelessly. Mr. Geddes indicated there is such expertise in house. In addition, tenders have been broken down into several components and are being advertised through the open bidding system. The problem is the lack of expertise on Year 2000 in the industry and this may have an impact on the RMOC. Also, suppliers cannot guarantee per diem rates for 6 months as the Region would prefer.

Councillor D. Beamish asked about costs identified for the year 2000 in the spending plan, specifically whether these apply to 1999 expenditures. G. Geddes said these amounts would cover the costs of upgrading the systems identified as being upgradable at a later date. Councillor Beamish wanted to know whether systems purchased recently and touted as being Year 2000 compliant were later found not to be compliant. Mr. LeBelle said he was not aware of any specific circumstance where this might have occurred. The Director, Information Systems Division, Ms. S. Lechner, added that staff have not completed their evaluation, however if it were discovered this has happened, the matter would be discussed with the product supplier.

Councillor A. Loney moved the report recommendations, saying he saw the issue as two-fold: is there a problem with Year 2000 compliance (there is a recognition this is the case) and does Council trust the advice of staff. He expressed the belief staff will do its best to protect the investment and he suggested it was time to proceed.

Councillor R. Cantin asked whether staff could comment on his proposal to provide half the requested funding at this time. The Finance Commissioner said he could appreciate the discomfort of Council in this regard, and if the Committee felt more comfortable with a revised number, staff would undertake what work it can at this time. Councillor Meilleur asked if a reduced amount would not preclude signing a more acceptable contract and expose the Corporation to losing a good provider. Mr. Geddes agreed this was a risk, citing as an example his having lost the ability to hire two consultants because the funding was not in place.

Councillor R. van den Ham said the discussions have confirmed both his instinct and his confidence that regional staff will not spend what they don’t have to spend. He agreed this is a difficult decision to make but he could not support a recommendation for reduced funding.

Councillor G. Hunter indicated that, while he felt more comfortable with this matter than before, he was still hesitant about the increase in the delegation of authority. He asked that the Chief Administrative Officer be given a direction to devise a significant reporting mechanism to keep Council informed about what is being discovered through the evaluation and if upward adjustments need to be made. He expressed the hope the $19.2 million represents the worse case scenario that Council will have to face.

Pursuant to the presentations, the Committee considered the departmental recommendations.

Moved by A. Loney

5. 1998 INTERIM FINANCING REQUISITIONS BY-LAWS

- Finance Commissioner’s report dated 26 Jan 98

RECEIVED

7. PROPERTY ACQUISITION: RIVER CORRIDOR ACCESS LANDS

YMCA-YWCA CAMP - 1730 SIXTH LINE ROAD, KANATA: OWNER,

OTTAWA YOUNG MEN’S AND YOUNG WOMEN’S CHRISTIAN ASSOCIATION

- Planning and Development Approvals Commissioner’s report dated 15 Jan 98

9. lease of vacant land

corner of baseline and woodroffe road

Planning and Development Approvals Commissioner’s report dated 12 Dec 97

The Committee heard from Mr. M. Mudde, a representative of the Redeemer Christian High School. He submitted that the request for a grant to cover the Regional Development Charges paid by the school for the construction of a gymnasium meets the criteria of the Region’s policy regarding Grant Requests Received Outside the Budget Process or Granting Programs in the following manner:

Mr. Mudde said he felt that, while education is not a regional responsibility, the grant request was worthy of consideration.

Councillor G. Hunter put forward a Motion calling for the amount of RDCs paid to be reimbursed to Redeemer Christian High School through a grant. He said the case had been made that the project meets the criteria of the aforementioned grants process . He added that a project such as this falls between the cracks of the RDC by-law as it had not been a consideration that private schools would be affected by development charges.

Councillor M. Meilleur asked for clarification about tuition costs. Mr. Mudde replied that tuition is based on 11% of the total family income; families in the lower income bracket can receive assistance. In reply to a question from Chair R. Chiarelli, Mr. Mudde indicated over 100 students are currently enrolled in the school.

Moved by G. Hunter

LOST

YEAS: G. Hunter, A. Loney, R. van den Ham, R. Chiarelli

NAYS: D. Beamish, R. Cantin, P. Hume, M. Meilleur

Moved by P. Hume

YEAS: D. Beamish, R. Cantin, P. Hume, M. Meilleur

NAYS: G. Hunter, A. Loney, R. van den Ham, R. Chiarelli

REGIONAL CLERK

11. ALLOCATION PANEL APPROVAL

ECONOMIC DEVELOPMENT GRANTS

-Regional Clerk’s report dated 16 Dec 97

12. APPOINTMENT OF REGIONAL COUNCILLOR

TO THE MILLENNIUM STEERING COMMITTEE

-Regional Clerk’s report dated 27 Jan 98

Moved by D. Beamish

15. 2001 INTERNATIONAL PLOWING MATCH

Replying to questions from Councillor D. Beamish, the Director, Corporate Programs and Administration, Judy Barbeau, indicated that the $50,000 identified as a "repayable grant" will come from the Economic Development Grants stream. The additional $50,000 will be used to prepare a Regional exhibit at the International Plowing Match Selection Committee meeting to be held in Kingston, Ontario on February 16. Ms. Barbeau clarified this represents an upset limit, and will include "in-kind" services from other partners.

Councillor A. Loney sought reassurance there were no infrastructure requirements associated with the bid. The Environment and Transportation Commissioner, Mr. M. Sheflin, said he had no indication of any requirements at this time.

Councillor R. Cantin expressed the hope that the Ottawa Tourism and Convention Authority and the Ottawa-Carleton Economic Development Corporation would be involved in the project. Ms. Barbeau indicated this would be so.

The Committee waived discussion on Confidential Agenda Item No 1 and considered the item in Open Session.

The Regional Chair, Mr. R. Chiarelli, announced that, in light of the upcoming budget deliberations, and given the expected effects of provincial downloading, the following interim measures have been put in place:

In reply to a question from Councillor P. Hume, the Chief Administrative Officer, M. Beckstead, indicated the 5% figure was arrived at in consultation with the Regional Chair: it was felt this was a reasonable number, given budget uncertainties. Chair Chiarelli added the intent is not to cancel contracts but to find savings within the projects. He spoke about severe budgetary pressures being applied and having to reserve some options for Council in this regard.