Councillor W. Stewart requested that Recommendation (a) of Item 8 of the Regular Minutes of the 21 Apr 98 meeting be amended to read:

CARRIED, as amended

At the request of Regional Chair R. Chiarelli, Councillor W. Stewart introduced Mssrs. George Braithwaite and Paul Lehman, respectively Chair and General Manager, Mississippi Valley Conservation Authority (MVCA), Chair Bob Graham and General Manager Dennis O’Grady, South Nation Conservation (SNC) and Mr. Dell Hallett, General Manager, Rideau Valley Conservation Authority (RVCA).

Councillor B. Hill pointed to the fact the MVCA’s requirement had been reduced whereas the RVCA’s had increased. Councillor Stewart explained that the revised number reflects the assessment growth in the Region. Councillor Hill asked for an explanation for the 63.2% increase in stewardship services and what this includes. Mr. D. Hallett replied that 95% of the Rideau Valley watershed is privately owned. The RVCA provides solid environmental information to landowners so they can make wise management decisions to protect the watershed. The RVCA also does site visits with landowners and produces material and this is the major of the increase. In response to a proposal from Councillor Hill that the RVCA budget be the same as in 1997, Councillor Stewart explained that once a Conservation Authority has passed a budget, the amount becomes a levy and Council does not have the right to modify it. This interpretation was confirmed by the Finance Commissioner, Mr. J. C. LeBelle, who clarified that the amended amount for the RVCA now stood at $1,244,205.

Responding to a question from Councillor M. Meilleur about what is being done to clean the Rideau River, Mr. Hallett described a number of initiatives over the past years, more specifically the Curb Program, an agricultural control program which he said had been very popular. Unfortunately the program is no longer available because of funding cuts from the Province. He spoke about work done through community monitoring programs on surrounding waterways, and the ongoing work with the RMOC’s Surface Water Quality Division and on the Water Quality Committee.

Councillor Stewart spoke about the accountability of Conservation Authorities, noting that all these bodies receive direction from the RMOC prior to setting their budgets. She added that the RVCA works with 30 municipalities outside of RMOC and the same applies to the other two authorities; as well, more than 50% of the decision-makers are directly-elected Councillors in their own municipalities.

Moved by R. van den Ham

That the Corporate Services and Economic Development Committee recommend Council approve the 1998 Mississippi Valley Conservation Authority Budget as presented.

CARRIED

That the Corporate Services and Economic Development Committee recommend Council approve the 1998 Rideau Valley Conservation Authority Budget in the corrected amount of $1,244,206.

CARRIED

That the Corporate Services and Economic Development Committee recommend Council approve the 1998 South Nation Conservation Budget as presented.

CARRIED

Ottawa Economic Development Corporation (formerly OCEDCO)

Councillor R. Cantin commented that all the economic development agencies generate revenue for the RMOC, directly or indirectly. He noted that the estimated impact of tourism in the Region surpassed the billion dollar mark. The Councillor pointed out he would not support any reduction to any of these organizations as every dollar invested brings a return of almost one hundred dollars.

Councillor Hill asked about the Economic Planning Unit of the Planning and Development Approvals Department (P&DA), specifically whether there is overlap between the work of the unit and that undertaken by the Ottawa Economic Development Corporation (OEDC) (formerly OCEDCO). Dr. Louis Shallall, Director, Geomatics Division, P&DA, indicated that the departmental unit is a resource group that works in collaboration with OEDC, providing services to further economic development of the Region.

Dr. Brian Barge, Executive Director, OEDC, elaborated by saying that, while that agency works to develop the strategic economic development plan of the Region, the Planning unit provides the detailed data and information that is essential to deliver on the larger plan. Dr. Barge said the unit is a vital component of the plan; its work is exemplary and he would support it being maintained. Replying to a further question from Councillor Hill, Dr. Barge said OEDC has been able to leverage its investment and that of the Region to better advantage in its economic development work.

Councillor M. Meilleur pointed out that, in the past, 85% of OEDC’s funding was from the RMOC whereas the number is now 65%. This is because of the involvement of many volunteers who work to help attract new businesses to Ottawa-Carleton. She spoke in support of the budget put forward by OEDC.

Councillor Cantin asked whether OEDC would benefit from "selling" the research as a product, in a manner similar to what is being done at the Ottawa Tourism and Convention Authority (OTCA Dr. Barge cited the example of the Technology Business Guide, which was being disseminated at a high cost, and which is now, through an alliance with the Ottawa Business Journal, published at their expense, a win/win situation. Dr. Barge indicated that, should OEDC receive less from the RMOC, it would work to increase revenues and, if this were not achievable, expenditures would have to be reduced and/or programs might have to be terminated.

The Regional Chair, R. Chiarelli, said he supported the retention of the P&DA unit because Regional Council has economic issues before it on an ongoing basis and needs economic data and advice to deal with issues independent of advice from organizations that may have an interest. In addition, the Planning Commissioner needs to be able to direct research for the purposes of the Regional Official Plan and, for these reasons, it is advisable to retain a small component of economic development internally.

Councillor G. Hunter reminded Committee members that its purpose was to decide what were the appropriate levels of funding for its partner organizations given current financial constraints. He noted that representatives have said how they would deal with reduced funding, and he proposed that the following be approved:

Moved by G. Hunter

CARRIED

YEAS: D. Beamish, B. Hill, G. Hunter, R. van den Ham, R. Chiarelli 5

NAYS: R. Cantin, P. Hume, M. Meilleur, W. Stewart 4

Mr. Les Miller, President, OTCA, expressed his disappointment with the fact the OTCA is recommended for a $40,000 cut and will not be receiving an additional $110,000 it requested to regain ground it lost in RMOC funding. He spoke about the agency’s accomplishments, specifically an increased number of daily flights to Boston and successes in Asia and Europe. He said OTCA does not have the resources to enter into partnerships with the Ontario Ministry of Economic Development, Trade and Tourism and the Canadian Tourism Commission to further develop these markets as well as markets in England, Germany, France and Japan.

Mr. Miller said tourism is of the economic engines of the RMOC and he provided the following statistics in support of this claim:

Speaking to the potential loss of an additional $40,000 Mr. Miller described some initiatives that could be affected:

Mr. Miller said the reason $40,000 has such an impact is that it actually means an impact of $120,000 since OTCA leverages every one of its marketing dollars by cooperative campaigns. He added that the agency frequently has to pass on lucrative opportunities because it can’t identify an un-budgeted amount of money. He said he recognized the financial difficulties of the RMOC, however he asked that the Committee recognize OTCA is accountable for taxpayers’ dollars, for members’ and partners’ dollars. He pointed out it is well documented in OTCA reports that these dollars represent an investment with a good return.

Councillor R. van den Ham put forward the view that the amount of money put into OTCA is not directly related to the increase in tourism, since decreased funding appears to have had no impact on tourism numbers. Mr. Miller responded by saying that OTCA used to be almost completely funded by the RMOC. Private sector partners took an active role to help overcome the decreases, however there comes a point where the private sector is unwilling to contribute more. The OTCA has been stagnant for a few years finds itself at the stage where it cannot maintain financial growth.

Councillor Cantin inquired where the extra dollars would be used. Mr. Miller said some of it will go towards technology upgrades and facing the millennium "bug"; replacing this equipment in one phase will increase productivity by 20%. The rest will go towards tapping new markets in the United States and Europe. Councillor Cantin expressed the view Council should do what it can to keep the tourism industry vibrant and growing, given its documented successes; local people should also get the sense they are contributing to attracting visitors and increasing the money these visitors leave behind.

Councillor P. Hume asked about possible partnerships with other economic development agencies, possibly sharing corporate common costs, administration, and even space. Mr. Miller said there is already much partnering between agencies and there has been talk about sharing common space, however such things take time.

Chair R. Chiarelli asked for additional details about Future Ottawa. Mr. Steve Miller, representing OEDC, said this is a collaborative effort primarily focused on providing common marketing support material that covers general business and economic information about Ottawa. It also provides information on the particular industrial sectors that are the leading investment opportunities as determined by the boards and businesses. A multi-media brochure has been developed that can be used to demonstrate the business capabilities of the broad region and it will receive broad commercial distribution through a partnership with Cummings Mitchell, a local company that distributes material to businesses in need and companies wanting to establish alliances in the United States.

Mr. Kelly spoke about the Ottawa Economic Community Profile, an investment that has received broad support and buy-in from human resources recruitment companies like Nortel and Newbridge, who provide them to prospective employees. The brochures were recently completed and will be unveiled at a major multi-media showcase set for Taipei in July 1998.

Councillor Hunter said he was concerned that the broad property tax base was being used to support narrow bands of properties such as hotels and other accommodation providers. He posited that a more appropriate source would be a room tax, or a room levy, as has been done in other jurisdictions. He noted there have been few complaints from those who pay it, nor is there evidence that municipalities are adversely impacted by this levy.

Moved by G. Hunter

CARRIED

YEAS: D. Beamish, B. Hill, P. Hume, G. Hunter, R. van den Ham, R. Chiarelli 6

NAYS: R. Cantin, M. Meilleur, W. Stewart 3

Ottawa Centre for Research Innovation (formerly Ottawa-Carleton Research Institute)

Councillor van den Ham asked for additional details about an operating surplus of $81,000 and why OCRI is looking for additional funding. The Executive Director, Mr. Bill Collins, said the deficit last year was $49,000 and it was felt this was running too close to the line. The monies available at the end of 1997 were needed to honour commitments to the Chairs’ Program, to support research at the University of Ottawa and Carleton University. The money requested will be used to increase programs and initiatives to be carried out in 1998.

In response to a proposal from Councillor van den Ham for a reduction of $31,000, Mr. Collins said this figure would leave OCRI as close to the line as it could run. He spoke about the commitment, over a five-year period, to the Chairs’ currently in place at the universities. He indicated there are plans for two new Chairs, one in Medical Devices and the other in Design of Packaging for Technology. Mr. Collins said it is necessary to put money into this fund each year and OCRI contributes a minimum amount which is matched by contributions from the collective members

Councillor Cantin pointed out that saying to partner organizations that they have to do more with less, and be less effective, is not a wise use of people, many of whom are volunteers.

Chair Chiarelli said he would not support further reductions because some of OCRI’s recent initiatives and works-in-progress should be supported. He asked that representatives describe the "virtual university" initiative to the Committee. Mr. Collins spoke about OCRI recently amalgamating with the Ottawa--Carleton Learning Foundation to create the National Capital Institute of Technology. The OCRI Research Management Board is trying to take advantage of the Canadian Foundation for Innovation Funds and establish an institute for technology similar to the technology side of the Massachusetts Institute of Technology (MIT). The institute would have a virtual component but would also make use of laboratories at National Research Council as well as the universities. This is an opportunity to attract top researchers from around the world to Ottawa and will also be used to show to the best students in the world that Ottawa has post-graduate programs of the quality they would expect at Ivy League universities. Mr. Collins pointed out this ties in well with where universities are going in the future. Some partners include Nortel, Newbridge and Bell, with several others interested, the University of Ottawa and Carleton University, l’université du Québec à Hull, Algonquin College and la Cité collégiale. A proposal will be presented to the Ontario Government before June 1998.

Moved by R. van den Ham

That the OCRI budget be further reduced by $21,000.

LOST

YEAS: B. Hill, P. Hume, G. Hunter, R. van den Ham 4

NAYS: D. Beamish, R. Cantin, M. Meilleur, W. Stewart, R. Chiarelli 5

Moved by G. Hunter

That the Committee approve the funding recommended for the Ottawa Centre for Research Innovation as amended by the Budget Review Board’s reduction of $9,000 for a total consideration of $391,000.

LOST

YEAS: D. Beamish, B. Hill, P. Hume 3

NAYS: R. Cantin, G. Hunter, M. Meilleur, W. Stewart

That the original amount of funding, $400,000, be approved for OCRI.

LOST

YEAS: R. Cantin, M. Meilleur, W. Stewart, R. Chiarelli 4

NAYS: D. Beamish, B. Hill, P. Hume, G. Hunter, R. van den Ham 5

Moved by D. Beamish

CARRIED

YEAS: D. Beamish, B. Hill, P. Hume, G. Hunter, W. Stewart,

R. van den Ham, R. Chiarelli 7

NAYS: R. Cantin, M. Meilleur 2

The Regional Chair suggested Item 2 of the Regular Agenda be considered in conjunction with the grant to the OLSC.

The Committee heard from Mr. David Evans, Vice-President, Technology and Business Development, MDS Nordion, and Chair of the Board of the Ottawa Life Sciences Council. Mr. Evans introduced Dr. Peter Morand, President, Science and Technology Growth Fund and Mr. Ken Lawless, Executive Director, OLSC.

Mr. Lawless described the Ottawa Life Sciences Council, a not-for-profit umbrella organization for the local life sciences sector whose mandate is to stimulate growth in this sector. Some activities include active networking and conference programming, "lunch at the park" seminars; the Council will host the 5^th annual National Life Sciences Conference and Exhibition in November, with 800 participants expected. The Council started an investment task group about two years ago with representatives from nine life science venture funds to supplement OEDC’s SAO Program, and has attracted an investment of $3 million. Other areas include technology and market development, sector advocacy, external marketing. The Council will attend several conferences in Canada and the United States, actively getting out the message that Ottawa exists in this sector.

Mr. Lawless said the life sciences sector has emerged as one of the Region’s most dynamic new sectors, employing approximately 18,000 people in the local sector; there are 100 companies with 3000 people in these companies and sales in excess of $550 million.. Twenty-seven new companies have emerged between 1995 and 1997, with job creation at between 15 - 20%. The role of the Council is to create this environment, and it has done so successfully, leveraging significant dollars that don’t appear in the balance sheet. In its submission to the RMOC, the Council is asking that its base budget be restored to its 1994 level of $150,000.

Mr. Lawless then spoke about the OCHIP initiative, a unified patient record for residents of Ottawa-Carleton and the surrounding communities. The Ontario Health Services Restructuring Commission, in its February 1997 report, highlighted the fact that patient records should be collected in one area. The University of Ottawa Faculty of Medicine and other stakeholders have asked OCRI to move forward on this; over 20 health care institutions are involved and over $228,000 has been leveraged to-date, with another $250,000 coming as the business plan develops.

Mr. Lawless pointed out that the de-centralization of health care into the community means the need for communications systems will grow and the ability to manage this will become more critical without an appropriate system being in place. Some of the benefits to the RMOC will be an improved ability, through better population health indicators, to understand what is emerging in the community, and improved coordination amongst health providers in urban and rural centres. The OCHIP project will also have an impact on ambulance scheduling in later applications.

Speaking to the economic development aspect, Mr. Lawless said OCHIP presents an opportunity to roll-out a unique local technology across the province, the country, North America and the world. It will be an economic engine for the companies selling the technology and secondly for the clinical people who will attract the biotechnology industry to Ottawa-Carleton. The $60,000 requested is a one-time investment that will allow OLSC to facilitate and champion the project. The Council is a small organization, with limited staff time, and it requires extra money to move this project forward. Several changes have been made to continue to support this project and it is important that the funding come through in almost 6^th month of the budgetary cycle.

Chair Chiarelli asked whether intellectual property will be created, and what defines who gets the benefit from this intellectual property. Mr. Lawless indicated a lot of it has already been created in the various companies and this issue will be dealt with as part of the business plan. In reply to further questions from Chair Chiarelli, Mr. Lawless said the Council will not be getting revenues; OCHIP may be developed into a not-for-profit that will function on behalf of the stakeholder community and drive the development of the industry.

Chair Chiarelli asked whether the OLSC was prepared to enter into an agreement whereby the $60,000 would be repayable if there is revenue generation. Mr. Evans replied that the Board was prepared to agree with this proposal.

Councillor Meilleur asked whether pharmacies could be part of this program, in an effort to prevent drug abuse and control expenditures in this area. Mr. Lawless indicated the intention has always been to ensure hospitals and pharmacies are part of the program.

Councillor Cantin expressed concern about patient confidentiality and he asked what would be done in this regard. Mr. Lawless said security issues are paramount; the project will be governed by the rules determined by the Province, under advisement from the Program Management Office for Smart Systems. Councillor Cantin said he would be putting forward a Motion to approve additional funding for OCHIP, subject to the possible repayment of the amount

Councillor Stewart asked for clarification about the Provision for Unforeseen, specifically why the funds come from this source and where they will be slotted when they are repaid. Finance Commissioner LeBelle explained that the legislation requires that any grants must be budgeted for in the year in which they are made; when they are repaid, the funds are identified as miscellaneous revenue to the Corporation. Councillor Stewart said it could be argued there is still funding in Unforeseen and she indicated she would support the request from the OLSC for extra funds.

Councillor Hunter moved the recommendation contained in the Draft Estimates, as amended by the Budget Review Board decrease. He expressed the view the organization should get itself on sound footing and then be weaned from public support. The Councillor said he could support neither a grant nor a loan to the OCHIP project, as the RMOC provides millions through the payroll levy to support health care. In addition, the Province of Ontario has passed a Fair Share Health Care Levy which makes property tax payers support health care as they have never done before. Councillor Hunter said he was pessimistic that the project would ever see the light of day, because of issues of privacy of information and because, several years ago, a similar federal initiative went nowhere.

Councillor B. Hill echoed earlier statements made about the privacy issue. She added that she did not see the requirement for a central record, although she agreed with concerns about pharmaceutical abuse. She said the Province should more appropriately be paying for the service if it wants it.

Councillor van den Ham asked why $30,000 in reserve funding would not be used to partially fund the OCHIP business plan. Mr. D. Evans said the Board has directed OLSC staff to ensure the budget is not exceeded and that there is provision for small amounts required on short notice. He added the agency is continually having to decide whether it will participate in the many programs it is being asked to participate in and need to have reserves should it want to do so.

The Committee heard from Dr. Peter Morand, who indicated that, upon coming to Ottawa in 1963, he had been shocked to see the existing level of infrastructure health care.

Speaking to the confidentiality issue, Dr. Morand expressed the view that the current system is probably more at risk than anything else. He pointed out that Ottawa-Carleton has the means to be the leader in this project. He added that the OCHIP project will be a model for the country and he expressed the hope the proponents can move ahead.

Chair Chiarelli asked whether the OCHIP partnership represents a health care or an economic development initiative, as he sensed there was some confusion about the mandate of the project. Ken Lawless replied OCHIP will create the opportunity for economic development by organizing health care providers to better interact with private sector partners, but if there is no effort to connect the two groups, nothing will happen.

Councillor D. Beamish asked what the likely cost of the project is to be in the coming years. Mr. Lawless replied the cost, as well as the benefits, will stretch into the millions in the coming years. He added it will be difficult to determine the exact financial impact until the business plan and business case are completed and if this is done properly, Ottawa-Carleton will have the best health care in the country.

Councillor Beamish wanted to know what were the likely funding sources for the project. Mr. Lawless said there will be reinvestment by the Province of the dollars taken out of the health care system and secondly, there will be benefits to the institutional players who will implement the system; the RMOC will not be approached for funding in the future. In reply to a further question about investments made by private sector partners, Mr. Lawless indicated they will be asked to provide dollars and to enter into partnerships. He reiterated that OCHIP provides an opportunity for tremendous economic development and a chance to build an industry in Ottawa-Carleton, as well as improving on the provision of health care services.

Chair Chiarelli asked where the province stood in funding this type of records management system. Mr. Lawless indicated that the Ontario Smart Systems Program Management Office was set up to do a review of health information technologies and was funded in part through secondments from both the industry and the Ministry of Health. The Office has made its recommendations to the Minister of Health and the OLSC has kept pace with those recommendations which have focused on issues of security. Mr. Lawless added that organizations elsewhere in Ontario already have some systems in their infancy and the OLSC wants to cooperate with them to create the de facto standard for the Province.

Moved by G. Hunter

CARRIED

YEAS: D. Beamish, R. Cantin, B. Hill, G. Hunter, M. Meilleur, R. Chiarelli 6

NAYS: P. Hume, W. Stewart, R. van den Ham 3

Moved by R. Cantin

CARRIED

YEAS: D. Beamish, R. Cantin, B. Hill, M. Meilleur, W. Stewart R. Chiarelli 6

NAYS: P. Hume, G. Hunter, R. van den Ham 3

Moved by D. Beamish

Mr. Beddoe said the Ottawa Fringe Festival, one of the newest initiatives in the Region, provides open access to artists and emerging artists to present their work in a situation that is not financially onerous to them. The festival also presents a broad range of programming to audiences for a reasonable cost and makes the performing arts accessible to a large segment of the population that may not be able to attend the larger venues. This year, the Fringe Festival will showcase over 40 performing companies, half from the Region, as well as national and international artists.

Ana Estable-Ferrero said artists are leaders in frugality and have been making cuts, partnering, borrowing, sharing administrative functions with other organizations. She pointed out that the arts represent 1% of the budget and nothing will be gained by making further cuts in this area. She indicated that, in many organizations, many people are working year-round without being paid so that audiences can partake in and enjoy the arts. Ms. Estable-Ferrero said she could not see how many more cuts could be made in group budgets. She added she did not believe Council’s intention was to make the arts less accessible to everyone and to make them elitist and she expressed the view that cutting from less than 1% would not assist the RMOC financially.

In reply to a question from Councillor Hill, Mr. Beddoe indicated that the Fringe Festival is not eligible for funding from the Canada Council on the Arts. He said that revenues generated at the festival are redistributed to the artists who perform there and that organizers are always trying to establish partnerships and run very lean businesses.

Mr. Susan Terrell, Technical Coordinator, SAW Video, spoke about the Youth and New Media initiative of SAW Video, which she called an excellent example of an arts organization forming partnerships in order to bring cost-effective programs to young artists. Ms. Terrell described the criteria under which participants are accepted into this program and she provided copies of the program brochure for information.

Representatives from the program addressed the Committee, and spoke about the impact this initiative has had on their lives and future career development. The program helps participants get invaluable technical instruction, as affords them the ability to produce videos that reflect the region’s diversity. Most participants indicated the program was unlike any other job opportunity, as all that was required was a desire, a bit of previous artistic experience and the passion to pursue a career in Canada’s expanding video industry. One speaker posited that funding new media is integral to society and culture, as the visual media help to establish and create the cultural identity Canadians crave. Other advantages cited included a chance to get training and experience to look for a better job, and to work within the community to promote the arts.

Councillor Hunter said programs such as this get very little funding in comparison to the opera and the symphony, both of which do not create new audiences yet get funding year after year. He thought arts funding was being provided to a narrow spectrum of artists. Ms. Terrell opined this situation could be reversed by working to make changes to arts funding, as opposed to making cuts to the arts.

The Committee heard from Councillor Clive Doucet, on behalf of the Chair of the Arts Committee, Councillor Al Loney. Councillor Doucet called the funding record in Ottawa-Carleton abysmal and the recommended amount of funding "a drop in the bucket". With regard to funding mid-level activities such as the opera and the symphony, the Councillor opined these must be funded if Ottawa is ever to become a world-class city.

He spoke about a plan by the Canadian Repertory Company, in the late 60s, to start a Shakespearean summer festival in Ottawa, saying that, at the time, their request for $50,000 was refused. The organization moved to Stratford, Ontario, and the result was a multi-million dollar industry with many spin-offs for that community. Councillor Doucet put forward the view the RMOC’s arts budget is not big enough, and he asked that the Committee approve the budget as passed by the Arts Committee.

Councillor Cantin spoke in support of the arts, noting that something may have to be done in a situation where certain groups stay in the loop, leaving less money for other emerging groups. He called support for the arts a quality of life issue.

Councillor Meilleur said she applauds what arts groups were trying to do. She pointed out that many great artists got their start in local venues. She expressed the hope more people would see that support for the arts is also economic development and that there must be improvement to the situation of the arts locally.

Councillor Hill said she agreed with the need for arts programming, but faced with ongoing provincial downloading, and under fiscal restraint, special efforts must be made to get the public out to support these activities. She proposed the following:

Moved by B. Hill

CARRIED

YEAS: D. Beamish, B. Hill, G. Hunter, W. Stewart, R. van den Ham 5

NAYS: R. Cantin, P. Hume, M. Meilleur, R. Chiarelli 4

At this point, the Regional Chair called for the meeting to adjourn for one (1) hour.

By way of preface the Regional Chair, R. Chiarelli, asked that Committee members have regard for the recommendations for funding cuts made by the Budget Review Board, and outlined in the report dated 31 March 1998 from the Chief Administrative Officer when considering the Draft Operating Estimates.

Councillor G. Hunter pointed to the fact the Budget Review Board has made no recommendation for cuts to either the Chair’s or the Councillors’ Offices. He expressed the view both these offices should face the reductions faced by regional departments. He also proposed there be a global "gapping" of salaried positions that may not be filled for several months: gapping should be fixed at 5% to allow for under-expenditure for the year.

Brendan McGuinty, Chair’s Chief of Staff, explained that the current estimate, $587,000 is the same as that of 1997. He noted there were salary and transitional costs from the previous administration, however reductions were made by no longer using a vehicle, thereby saving maintenance and fuel costs. In addition, the Regional Chair did not accept a salary increase of $10,000. Mr. McGuinty expressed the view the Chair’s Office has led by example and will be looking for further savings in 1999.

Councillor M. Meilleur asked for an explanation about the absence of detailed information in the Chair’s budget in the areas of Purchase of Service, Transfer Payments, etc. The Finance Commissioner, Mr. J. C. LeBelle, indicated this was a question of timing, and he suggested the information could be requested in time for Council.

CARRIED

CARRIED

CARRIED

CARRIED

CARRIED

Councillor W. Stewart began by saying that leading by example is an important principle and she put forward a Motion calling for the Legislative Budget to be reduced by $90,000, to be applied to each Councillor’s budget at $5,000. Councillor Stewart added that, when the office allocation was set, it was assumed the 1998 budget would be revenue neutral, and there was not the realization there would be such a budget shortfall. She said she thought reducing the office budget would be the right thing to do for the residents of Ottawa-Carleton.

Councillor M. Meilleur said she could not agree with applying any un-spent office budget to other corporate deficits. She spoke about the mid-term review of Councillors’ salaries, noting that recommendations were made to increase office budgets so there would be no discrimination and she indicated she would support no other reduction at this time.

Councillor B. Hill said different wards make different demands on their representatives, citing her need to attend meetings in three different municipalities to participate in the review of the Regional Official Plan and now, on municipal restructuring. She indicated she was not in favour of reducing office budgets.

Councillor R. van den Ham said the final 1997 figures have shown the average office had $4,000 left over, based on $15,000 plus a slight increase. He said that, for this reason, he would support the small reduction being proposed.

Regional Chair R. Chiarelli expressed the view that, given the amount of public interface that will be needed as Council goes through the restructuring process, it will be necessary to ensure every dollar is spent more wisely and in a more directed manner. For this reason, he felt the budgets should be not be reduced.

Councillor D. Beamish said he thought it was hypocritical for Councillors to approve increases to their own budgets through the work of a citizens’ group. He added it was known that downloading costs were imminent, that the public would be facing a tax increase, that staff were being asked to do more with less. He pointed out there still has been an increase of $15,000 to Councillors’ Offices budgets and he indicated he was prepared to support the proposed reduction.

Moved by W. Stewart

CARRIED

YEAS: D. Beamish, R. Cantin, G. Hunter, W. Stewart, R. van den Ham 5

NAYS: B. Hill, P. Hume, M. Meilleur, R. Chiarelli 4

Councillor R. Cantin suggested that the buildings occupied by the Ottawa-Carleton Regional Police Service be shown as a separate item. The Planning and Development Approvals Commissioner, N. Tunnacliffe, noted staff intend to present this information more clearly in the future.

CARRIED

In reply to a question from Councillor Cantin, Finance Commissioner LeBelle indicated the numbers at the bottom of this page relate to the expenditures required for the operation of the garage. Mr. LeBelle added that showing the actual revenue would not show the debt charge, nor would staff want to decentralize these debt charges. He suggested this could be explained on the descriptive page

CARRIED

CARRIED

Finance Commissioner LeBelle drew Committee’s attention to the Vested Benefits Reserve Contribution (Item 3, p. 88). He reminded Committee members this item should be carried with the proviso that, at Council, regional staff may recommend the contribution of $1.2 million, which is committed, not be made as part of the broader budget strategy.

Councillor Hunter asked that the number relating to the payroll tax, which is included in employee benefits, be provided to him prior to Council budget deliberations.

CARRIED

CARRIED

CARRIED

Further to a request from Councillor Cantin, Commissioner LeBelle said staff will provide an update on the Provision for Unforeseen prior to the next Council meeting, now that the Committee has disposed of the remaining funds in the account.

Councillor Cantin proposed that the $15,000 identified as the RMOC’s first investment in OCHIP project be reduced to $10,000, to allow $5,000 to be earmarked for the 1998 Street Ambassador Program. (See Regular Agenda Item No. 3).

CARRIED

Councillor Cantin asked about the Region’s replacement policy as regards light vehicles. Mr. Doug Brousseau, Director, Mobility Services Division, Environment and Transportation Department, indicated that factors such as vehicles usage and age are evaluated before decisions are made on disposal; currently, the "life-span" of most vehicles is approximately 7 years. Councillor Cantin said the reason he asked the question was because he had recently seen a regional vehicle that he felt was an embarrassment to the Corporation as it had badly rusted rear doors. The Councillor suggested vehicles be examined with a view to making some "cosmetic" repairs in order to lengthen the life of the vehicle. Mr. Beckstead suggested that Ken Wetzel from Corporate Fleet Services contact Councillor Cantin to explain the work done in this regard.

That the Corporate Services and Economic Development Committee recommend Council approve the Regional Clerk’s Capital Project Details (p. 36), as presented.

CARRIED

(G. Hunter dissented)

Councillor P. Hume said he could not support a study to decide whether Council should be purchasing lands to establish a research park and he dissented on this item. In response to a question from Councillor Cantin, the Chief Administrative Officer, M. Beckstead indicated the Region has only had the authority to develop industrial lands as of the passing of Bill 143 and has not yet reached this capability.

CARRIED

(P. Hume dissented)

The Planning and Development Approvals Commissioner, N. Tunnacliffe, indicated that, as this project is not progressing as quickly as was expected, he was proposing that the amount for 1998 be reduced to $1 million, and that the remaining $2 million be earmarked for 1999.

The Regional Chair, R. Chiarelli, said he would bring forward to the Corporate Services and Economic Development Committee a suggested process to deal with the Convention Centre project. The Chair indicated two proponents have shown a willingness to re-submit the particular proposals for the benefit of new members who have not had a presentation on this matter. The CS&ED would then, in consultation with staff, consider selecting a proponent and a site on the very specific conditions that no regional dollars are committed to the Convention Centre and that there is no approval of the specifics of the site plan. This would enable the RMOC to work with one of the proponents to identify creative ways to finance the project; look at the site plan, refine the budgets in the hope that, at a future date, the Region can become involved with a minimal or zero contribution. Chair Chiarelli spoke about the difficulty in attracting private or public partnerships when a conditional site and a proponent have not been selected. He suggested that, in order to move forward, the CS&ED might choose a component and a site, subject to the conditions stated earlier. Within this context, it is important that a portion of the 1998 capital funding be approved, to help the Region get consulting advice on how to proceed without committing any funds at this time.

Councillor Cantin spoke about the possible impact the redevelopment of Lansdowne Park would have and the uncertainty related to that project. He also brought up the matter of one community definitely not wanting one of the proposals and the other proposal being questioned by convention and trade-show operators. Chair Chiarelli said these comments raise appropriate issues, however they should be considered by the CS&ED when dealing with this issue. New suggestions have been made, and should be debated in detail, but at the moment, the issue is bulk planning. Councillor Cantin proposed that the provision for 1998 be $1 million, with $2 million being set aside for 1999.

Councillor van den Ham said he was not totally in favour of pursuing the convention centre idea with $3 million dollars in the budget to further something that has been proposed by private industry. He suggested that $1 million be provided for 1998 and if additional funds are required for 1999, they be identified at that time.

Commissioner Tunnacliffe explained that $3 million dollars was meant to help with resolving problems around two convention centres and lead to a site selection. Consultants will be needed and, depending on the arrangements with the owner, money may be required to design the convention centre. The second requirement is for Linkages, a separate but related project. Funds are required for the design of at least one Linkage with private support being ready to move, but needing assistance in this area.

Chair Chiarelli said that, presumably, no money would be spent until a more detailed policy and project framework came forward for approval by both Committee and Council.

Councillor Hill said she could not support this item, when no private contributions have been identified for 1998. She added that, with all due respect for the Chair’s position, the convention centre built in the 1970s has operated at a deficit every year until 1997. The Councillor stressed the need to be realistic about hard times being ahead, and while the annual impact of provincial downloading is still unknown. If this project represents such an excellent business opportunity, the private sector should put money into it.

Councillor Meilleur said Council has clearly stated that private money should be committed before the RMOC decides on its own financial contribution. The Councillor expressed the view that, regardless of the funding mechanisms in place, this will still be a burden on the tax payer and there are matters with higher priority that need to be addressed.

Chair Chiarelli posited that, up until now, the private sector has respected the principle enunciated in 1996 about not expanding the convention centre without private, senior government and public sector financing being in place. In the face of renewed interest from two proponents, and having the opportunity to review the issue before ultimately deciding to move forward, the RMOC will send the wrong message by not having funds reserved for this project. Chair Chiarelli called it a "chicken and egg" situation; in order to attract private money, the RMOC must have a potential project. What is being requested is that we continue to pursue the project, subject to Committee and Council approvals for scope costs and other considerations.

Commissioner Tunnacliffe said the position of the two proponents is that they have in fact invested a significant amount of money, almost $250,000 each, to develop their proposals. The proponents are unwilling to spend more money until they get a better commitment from the RMOC as to whether it will move ahead with the project. Chair Chiarelli pointed out that slamming the door on the entire project was not in the best interest of the regional corporation and would not leave the RMOC with much credibility.

Councillor Hume said he felt he was being sucked-in to making one decision at a time, and he asked when a final decision would be made about whether or not to move forward with the project. Chair Chiarelli indicated an important threshold will be whether or not the CS&ED Committee/Council approve a process whereby a proponent and a site are chosen, conditional upon the private sector and other levels of government putting together a financing package that makes sense. Secondly, Council will work with the proponent to refine the site plan so it is acceptable to the surrounding community.

Councillor Stewart asked if a decision could not be deferred, at least until the restructuring issue has been resolved. She pointed out that Council did not foresee the situation it presently finds itself in, and it does not appear to make sense to commit to borrowing these sums in light of the current financial climate. Chair Chiarelli said he felt Council should at least approve $1 million for 1998 and $2 million for 1999 in order to respond to the economic potential of a particular site.

Councillor Cantin recalled that the development of the Rideau Centre brought about considerable revitalization of Rideau Street and the surrounding area. He speculated the RMOC is getting 20 to 30 times the assessment it was getting in that particular area before redevelopment. The convention centre should be seen a small piece in the entire core revitalization plan. Funding should be identified and, if it is not spent, at least it will be there to respond. The Councillor pointed out there are linkages between major buildings in the downtown core of every large northern city. The RMOC will have to look at some kind of linkage to maintain a competitive edge and attract tourism during the winter months.

Chair Chiarelli said he could support all of the concerns raised, however they will be addressed and need not prevent Council from taking the next step and move the project forward.

Councillor Meilleur asked for clarification about Linkages, specifically, what would be linked. Commissioner Tunnacliffe indicated that a group of business people in downtown Ottawa and regional staff will be making a presentation to the CS&ED on the project on 19 May 98. Mr. Tunnacliffe provided the example of linkages between a future building on the Daly Building site, to future developments at the former railway station; these would be linked back to the Westin Hotel and to other sites. Councillor Meilleur opined that, if this is a good investment, the private sector will participate. The public does not want police services reduced, nor OC Transpo fares increased, because of this project.

Chair Chiarelli pointed out there is a tremendous consensus for revitalizing the downtown core and this will have a significant impact adjacent communities. Some imminent decisions about the redevelopment of the Conference Centre will provide a dynamic beginning to the project and there is great interest from the business community and from the federal government in the Linkages project. The RMOC should give itself the opportunity to be a full partner because of the visionary nature of these projects. Chair Chiarelli pointed out that it is difficult to be at the table when one can’t afford the consultants’ reports and can’t put together sufficient comprehensive advice for Council to make a decision as to whether or not it should be a partner in a very significant project.

Councillor Beamish said it is difficult to extricate policy issues from budget issues when going through a budgetary exercise; however, he pointed out that Council has yet to have a policy discussion on the Linkages initiative. He posited this discussion will have to take place in order for Council to decide whether it wants to participate in any of these initiatives. The Councillor said he saw no reason why a decision could not be made later, outside the budget process, since any money required would have to be borrowed and there is no difference in borrowing now or in six months.

Councillor Hill spoke about have read magazine articles which said that linkages can destroy street level businesses, since hotel patrons travel from link to link and never go onto the sidewalks. Businesses have fared poorly in cities where linkages exist. She said the RMOC should do nothing to cut off street level businesses from the positive effects of tourism.

Councillor Stewart asked whether deferring the project would hold-up consideration of the budget. Commissioner LeBelle replied in the negative, saying what would happen is that the project would not appear in the budget as adopted by Council. Councillor Stewart suggested that only the spending be deferred, as this could always be done at a later date. Chair Chiarelli explained that his suggestion of deferring the matter for a two-to-three month period will ensure the matter remains alive for consideration. In addition, it will give the Region the credibility it needs to deal with potential partners over the next months as it decides whether or not to proceed.

Councillor van den Ham said he did not believe in closing the door on this project when Council has all along indicated it would proceed when private and other sector funding was in place. He thought that the next steps could be accomplished by approving $1 million for 1998 and waiting until 1999 to see how the project advances. Councillor van den Ham thought it would be foolish to remove the page from the budget, however he noted that a decision must be taken in light of current fiscal realities.

At this point, the following Motions were considered:

That the item Convention Centre/Linkages be deferred to the 1999 budget deliberations.

LOST

YEAS: D. Beamish, P. Hume, M. Meilleur, W. Stewart 4

NAYS: R. Cantin, B. Hill, G. Hunter, R. van den Ham, R. Chiarelli 5

Moved by R. Cantin

2. That the provision for 1999 be $2 million for the same account.

That the Corporate Services and Economic Development Committee recommend Council approve Project 912-13420, Convention Centre/Linkages, (p. 49), as amended by the foregoing.

LOST

YEAS: D. Beamish, R. Cantin, R. van den Ham, R. Chiarelli 4

NAYS: B. Hill, P. Hume, G. Hunter, M. Meilleur, W. Stewart 5

CARRIED

CARRIED

CARRIED

CARRIED

2. funding request for the development of the ottawa community health information partnership

In order to accommodate funding for the 1998 Street Ambassador Program, the Committee agreed with a suggestion made by Councillor Cantin that $5,000 be removed from the $15,000 identified for the OCHIP Project (see Minute page 13), bringing that amount to $10,000. The funds are to be taken from the Provision for Unforeseen.

The Regional Chair, R. Chiarelli, called on the Committee to consider a Motion related to the Eastern Ontario Disaster Relief Committee.

Moved by B. Hill

Councillor M. Meilleur expressed her concern, inquiring of the Chief Administrative Officer how staff would be "encouraged to donate". The Human Resources Commissioner, Joyce Potter, indicated staff would be approached, in a manner similar to that used to canvass for the United Way, possibly by way of a letter from the Chair and the Chief Administrative Officer to all employees requesting a donation be made. Councillor Meilleur indicated she would only support the Motion if donors are kept completely anonymous. Commissioner Potter assured the Committee no records would be kept.

The Motion was CARRIED

_____________________________ ____________________________

CHAIR A/CO-ORDINATOR