2002 Corporate Services and Economic
Development Committee budget review
examen du budget de 2002 pour
le Comité des services organisationnels et du dévéloppement économique
The Committee received a verbal presentation from B.
Thom, City Manager, and PowerPoint presentations from N. Lathrop, General
Manager, Development Services, D. Bray, General Manager, Human Resources, and
K. Kirkpatrick, General Manager, Corporate Services. The presentations provided departmental highlights including
departmental / branch services, activities and priorities, strategic
initiatives, amalgamation savings, operating and capital budget highlights, and
future challenges. (PowerPoint
presentation slides are held on file with the City Clerk.)
Following the presentations, senior management
responded to questions from the Committee.
Councillor Meilleur stated the health and well being
of the employees was important, adding comment regarding the reduction in staff
complement despite the large workload.
She inquired if the employee reduction target set by the Transition
Board was reassessed. Mr. Thom
explained the amount of amalgamation savings to be achieved was a factor,
however, at the same time the targets were continually reassessed in the
context of the growth and other issues, including what impact it had on the
operations relative to FTE’s. He
stated relative areas being examined include process engineering, and ways to
achieve the savings other than straight FTE reductions.
Councillor Bloess indicated there were a number of
furniture budgets under the various Departments. He inquired if the consolidated information was available in the
budget documents. Mr. Kirkpatrick did
not believe so. With respect to
specifics, Mr. Kirkpatrick explained the Social Housing Program and the first
time creation of that office. The
General Manager confirmed that from an operational and management perspective,
procurement of furniture was completed against standing orders in an organized
and cost efficient manner. Councillor
Bloess wished to ensure that the Real Property Asset Management Branch oversaw
all departmental furniture supply and that available or refurnish furnishings
were the first source. The General
Manager confirmed this was the practice.
Councillor Legendre referenced the light and heavy
fleet, the number of vehicles and the replacement costs, as outlined in the
presentation. The Councillor inquired
how staff proposed to reduce the fleet size.
Mr. Kirkpatrick explained more information would be available mid-year
when staff had an understanding of what could be achieved through the
reduction, in particular with the light fleet. The General Manager further explained there were two areas,
which were different in terms of the light and the heavy fleet, both relating
to the amalgamation. With respect to
the light fleet, he anticipated there were too many pieces, adding staff would
be going through a process to determine which vehicles should remain and which
were more economical to reimburse on a mileage basis. With respect to the heavy fleet, Mr. Kirkpatrick stated a number
of vehicles came from the former municipalities, adding staff was in the
process of evaluating the Corporation’s requirements and reviewing
opportunities to combine specifications and the ability of the equipment. Again, it was anticipated the numbers could
be reduced.
Councillor Legendre requested staff to prepare for
the Council budget meeting a list of the Motions approved by the standing
committees, and the operational and financial impact of each. The City Manager confirmed that was the
intention.
Councillor Hunter inquired if funding was in the
budget for the Congress Centre expansion.
R. Chartrand, Director, Business Development, reported the associated
file existed under the Economic Affairs capital project.
Councillor Hunter referenced the significant request
to the City, commenting the amount was not included. He therefore wondered if there was no funding allocated in the
capital forecast for the next few years specific to the expansion.
Mr. Chartrand confirmed at this time there were no
provisions in any capital budget to support construction activity on an
expanded Congress Centre. The Director
stated the file was a works-in-progress and depending on the nature of the
discussions to occur with the Province, would depend on the need for a report
to Committee and Council regarding the City’s participation. Mr. Chartrand further explained staff were
prepared to work with the partners to arrive at options and, if required, staff
would come forward to obtain direction from Council on the level of
involvement, financial contribution and funding source.
Councillor Hunter stated he expected there would be
a capital forecast in the budget on this item.
He wondered if the Director’s response could be put in written form and
attached to the budget as an addendum.
Mayor Chiarelli reminded Committee of the previous
Regional Council resolution that staff was operating under. He explained this resolution directed staff
to proceed with a potential project with the condition that the capital
requirements would be funded from revenue streams to be determined in the
project. The Mayor stated there was a
clear direction that it would not be part of the regular capital requirement,
but a public/private partnership that would generate streams of revenue to meet
the City’s requirements.
Councillor Hunter believed it was important that
there be a project budget page identified which illustrated the project, the
potential cost and the potential sources of funding. In response, Mayor Chiarelli reported that was not possible at
this time given the status of the project and the recent position taken by the
Provincial Government. The Mayor
reviewed the sequence of events involving the Province regarding the ownership
issue and requirement for clarification and confirmation on the infrastructure
announcement.
Moving to another matter, Councillor Hunter reviewed
the format of the budget pages, referencing the 2001 budget, 2002 estimate and
percentage variance. He inquired why
there was not information regarding what was actually spent in 2001 in order to
allow comparisons between the two years, and to determine if the estimates from
the Transition Board were realistic or fictitious.
Mr. Kirkpatrick reminded the Committee that the 2001
budget was at a higher level than the 2002 documents. He stated the comparability against the 2002 budget did not exist
at the time of the budget preparation, and the users would not infer helpful
information from what was available.
Mr. Kirkpatrick reported Council would receive in the near future a
report outlining the results of the 2001 operations, noting the surpluses and
deficits and the recommended disposition of each. With respect to the 2003 documentation, the General Manager
confirmed actuals would be presented for that budget year.
As an example, Councillor Hunter referenced the
Elected Officials budget and the 2002 estimates, an amount to be levied to
cover the budget. However, he pointed
out that the elected representatives did not spend their entire office budget
allocations, resulting in a significant gap between what was levied and what
was actually spent. He wondered if
this practice was occurring across the entire Corporation. Councillor Hunter believed it was necessary
to know what the estimated actual was in order to make informed decisions.
Mayor Chiarelli commented the proposed practice
would result in a smaller surplus at the end of the year. The Mayor acknowledged there might be a need
to lower the levels. However, he
suggested it was the practice to set a budget with the objective to come in
under-budget; however, Council did have access to the surplus for other City priorities. In response, Councillor Hunter believed the
sooner staff and Council stopped depending on the surpluses, the safer the
budgeting process and estimates would be.
Mr. Kirkpatrick explained that “gapping” was an
assumption in the budget. He reported
the departments had been targeted to cover the cost of operational increments
in 2000 through gapping which was approximately 1 ½ to 2 % of the salary
budgets.
Councillor Stavinga indicated that at the beginning
of 2002 there was an opening reserve balance of approximately $199 million, with
a closing balance in 2006 of $12 million, despite the debt level being
maintained. She noted there was a gap
of $345 million over the next five years.
With respect to revenues, Councillor Stavinga stated the development
charges by-law was outstanding until after the official plan. She inquired want interim measures could be
put in place to assist in minimizing the gap and what impact did the
significant draw down on reserves have on the ten-year horizon.
With respect to development charges, Mr. Kirkpatrick
reported that he and the General Manager of Development Services had recently
met with the consultant responsible for reviewing the former Region’s
development charge by-law and study, as it had the most significant gap between
the charges imposed and the theoretical charges that were calculated. The General Manager explained it was not
possible to implement a new by-law until the official plan and master plans
were complete, providing an understanding of what the infrastructure
requirements would be. As an interim
measure, Mr. Kirkpatrick confirmed a report would be coming forward to Council
mid-year, which would recommend changes to the Regional Development charges and
by-law.
With respect to the $199 million in reserve funds,
Mr. Kirkpatrick pointed out that one half were water and sewer capital reserve
funds. He stated those funds could only
be used for water and sewer capital purposes and were designated for two large
infrastructure projects.
Speaking to the reasons for the funding gap and need
to allocate from the reserves, Mr. Kirkpatrick explained the $300 million did
not address the following: (i) the
capital envelope did not fund many of the priorities the new City’s forecast
must take into account, such as the City’s share of the one-time amalgamation
costs; (ii) life-cycle maintenance challenges; (iii) the growth related
projects that were required to meet the significant growth projections that the
official plan would address, and (iv) an acknowledgement that senior levels of government
funding participation had returned, however, the programs were co-funded and
the City was required to contribute.
Mr. Kirkpatrick stated the long-range financial plan
would address many issues, such as (i) public/private sector partnerships and opportunities;
(ii) development charge revenues; (iii) identification of what the senior
level government revenue streams would be; (iv) disposition of surplus
properties; and (v) maximizing the value in the Hydro Ottawa asset.
Councillor Stavinga stated the 2001 10% tax
reduction was difficult to communicate to the residents as the reduction
depending on other components, such as assessment. She wondered if the sustainability of the 10% reduction was
carried over to 2002, and if it was reasonable to pursue. Mr. Kirkpatrick pointed out the draft
estimates were developed in accordance with the budget directions approved by
Council, adding the directions included the maintenance of the 10% tax rate
cut. He stated the draft estimates
identified what was necessary to accomplish this, noting the operating did not
require reductions in services levels or elimination of programs. With respect to the capital budget, the
directions requested staff to identify the five-year capital funding
shortfall. The General Manager agreed
this identified a significant problem, however, reiterated there were ways to
minimize the problem, as noted above.
PUBLIC
DELEGATIONS
The Committee received presentations from the following individuals:
Mr. David Welch, Board President, The Social Planning Council of
Ottawa (written submission on file with the City
Clerk.)
Mr. Welch reported that the Social Planning Council of Ottawa had
organized a well-attended public forum to review the Official Plan, the related
growth plans, and the 2002 budget. He
explained that through the forum, recommendations were developed, concentrating
on two issues as follows (i) the budget process and the Official Plan review
process, and (ii) economic development.
With respect to the budget process, Mr. Welch did not believe the
current process encouraged public participation. He expressed concern with the following areas (i) the access to
appropriate information; (ii) the time accorded to public debate; and (iii) the
funding for debate. As a result of the
forum, Mr. Welch reviewed the following recommendations:
(i)
The 2002 budget include an allocation
of adequate resources to enable public participation in the official plan
review and the 2003 budget;
(ii)
To provide detailed yet easy to read
material (position papers, draft budgets);
(iii)
To provide at least two months for
public input for the official plan review process; and
(iv)
To provide funding to community
agencies to enable them to gather input from their clients.
With respect to economic development, Mr. Welch stated the Planning
Council commended the City’s for its advancement and achievements in this
area. However, the speaker referenced
the need to balance growth and sustainable economic development. As a result, Mr. Welch recommended the
following:
(i)
The City adopt an economic development
policy that encourages the participation of marginalized groups;
(ii)
The City adopt a diversified approach
to economic development by providing support to the creation of community
economic development projects that empower community members to find solutions
to the problems they face; and
(iii)
To increase the scope of its skills
development strategy by allocating resources to facilitate the integration of
new immigrants into the economy.
Councillor Meilleur thanked Mr. Welch for the presentation, adding
she had received a similar message from the community. The Councillor inquired how the Social
Planning Council believed public participation should occur, noting presently
the consultation was on a budget already prepared with no opportunity to make
changes.
Mr. Welch stated a major factor was the amount of time allocated
between the tabling of the budget and the debate and approval. He pointed out that Councillors also had a
difficult time following the documentation, adding the community groups
required even more time to understand the material. Mr. Welch suggested the need for additional community forums to
debate and understand the issues, adding the participation factor was more
beneficial. Thirdly, he reiterated that
the budget documentation should be more accessible.
Councillor Legendre also expressed his appreciate for the
presentation and the organized forum.
The Councillor indicated that annually he held events in his ward,
however, although attendance was slightly higher this year, only 15 people
attended. With respect to
accessibility, Councillor Legendre stated the documents were placed on the
City’s web site, and both the Councillors and the City held information sessions. He believed the process had improved
somewhat, however, agreed that more time was required between the tabling and
consideration of the material.
In response to a question regarding the 2003 process, Mr. Russell
stated it was anticipated the entire budget process would be started earlier. The process would begin with the approval of
budget guidelines in June/July and budget approval obtained closer to the end
of the year or early in January.
Councillor Legendre suggested the need to invite public participation at
the first phase, that being the development of the budget directions. Mr. Russell agreed that was the most
effective time period for public input.
Mr. Kirkpatrick reported the Communications Branch was preparing a post
mortem on the budget process, particularly on the public consultation
process. He agreed there was a greater
effort this year, but added that the request for input earlier in the process
was a reoccurring comment. Mr.
Kirkpatrick suggested more time between the tabling and the reviews might not
be necessary if better approaches or more effective vehicles were used.
Councillor Arnold reiterated the concerns with the inability for
effective public participation. She
believed the process was more a communication exercise than a consultation or
request for participation. The
Councillor suggested the need for a report to return to the Committee regarding
the results of the “post mortem” exercise, in addition to comments regarding
the public feedback and recommendations presented regarding a change in
process. She hoped the report would
have recommendations that Council could deliberate. Councillor Arnold stated the communication mechanisms used were
very important, however, noted that high technology did not work for all
members of the community. Rather, she
emphasized the effectiveness of “face-to-face” communications.
Councillor Stavinga agreed with the previous comments. She noted that public participation differed
from public consultation. Mr.
Kirkpatrick stated the comments were clear and would assist in reviewing which
areas required focus in the next process.
Councillor Stavinga indicated she would bring forward a Motion for
Council consideration on 27 March.
Mr. Nicholas Patterson, Canadian Development Institute.
Mr. Patterson expressed frustration with incorrect information
placed on the City’s web site regarding standing and advisory committee
meetings. He suggested a pattern of
such misinformation might be constituted as a violation of the required meeting
notification.
With respect to the budget, Mr. Patterson expressed further
frustration with the budget documentation and its presentation. He stated the material was incomprehensible,
referencing his extensive financial experience. Mr. Patterson expressed interest in the comments voiced by
Councillors regarding needed improvements.
He reiterating the need to present actuals for three years past and two
years forward, stating it was a standard for all budgets.
Councillor Bloess stated the Budget Overview was a summary, however,
referenced the large books for both capital and operating budgets, which
provided sufficient information. He
suggested Financial Services staff deserved a great deal of credit, adding
reference to the dedication required, in particular during the lengthy committee
review meetings.
Mayor Chiarelli commented on the high level of respect cited by the
business and private sectors regarding the responsiveness of the management
team in merging twelve corporations with a total budget of approximately $2.2
billion. He agreed a large amount of
gratitude was owed to the management team and staff.
Mr. Albert Chambers, Chair, Agriculture and Rural Affairs Advisory
Committee (ARAAC).
Mr. Chambers reviewed the strong and willing membership of the
Agriculture and Rural Affairs Advisory Committee. With respect to the Committee’s work plan, he stated it followed
the mandate approved by Council and touched on virtually every aspect of the
City’s affairs. Mr. Chambers reviewed
the Committee’s primary roles as follows:
(i) to be responsive and assist the City to move forward correctly in
terms of the amalgamation challenge and responding to both the rural and urban
communities; (ii) to work with the City to ensure the current tension between
the rural and urban areas be diminished over time; and (iii) to assist in
advance with some of the challenging issues, such as the new official plan,
rural development and infrastructure issues, and quality of rural life.
Mr. Chambers reviewed the work plan funding request, specifically
the two activities: (i) three town hall
sessions in 2002, and (ii) proactive initiative in communications to review and
strengthen the City’s capacity to communicate with the rural and agriculture
residents. He stated the members looked
forward to working with Council and staff to accomplish their mandate,
expressing great satisfaction with the high level of support received from
staff to date.
Councillor Stavinga explained the work plan funding for all the
advisory committees would be deliberated at Council, and would ensure this
advisory committee request would come forward.
Speaking to the ARAAC work plan, Councillor Stavinga referenced the
hiring of a consultant. Mr. Chambers
explained the project was to evaluate the City’s communication strategies and
approaches in dealing with the rural community. He explained they would support the project through the existing
communications budget, however, proposed that Councillors and staff work with
the advisory committee. In response to
a question from Councillor Stavinga, Mr. Kirkpatrick confirmed the
Communications Branch was available to work with the committee. Mr. Chambers indicated that during the
discussion at the advisory committee, there might have been a feeling that the
expertise in communicating with the rural community may not exist in the City’s
department at this time. Rather, there
might be a need to obtain external expertise that had significant experience in
this area.
In reference to the 90% rural component of the City, Councillor
Meilleur commented that the committee was very important. She expressed her appreciation for the work,
expertise and knowledge provided by all the advisory committee Chairs and
members, referencing the value and money saved for the City.
Mr. Charles Matthews, President, Disabled and Proud
Mr. Matthews referenced the Accessibility Advisory Committee and
their mandate to provide advice to City Council regarding the disabled
community. He stated the budget only
spoke to financial matters, however, he believed it was also necessary to
review the people management, the function and the mandate of the
committee. Mr. Matthews suggested that
the Accessibility Advisory Committee was not utilized to its potential, stating
that any applicable business going to the Council should first go to the
advisory committee, such as the recent Para Transpo contract award. In addition, he suggested that the
recommendations from the advisory committees should be heard before the applicable
standing committees.
Following the public delegations, the Committee reviewed the budget
documents applicable to the Corporate Services and Economic Development
Committee.
2002
DRAFT OPERATING ESTIMATES
ELECTED OFFICIALS
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 1 - 4
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Elected Officials Budget, page 4, as presented.
CARRIED
OFFICE OF THE CITY MANAGER
City Manager’s Office
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 5 - 13
That the Corporate Services and Economic Development Committee
recommend Council approve the 2002 City Manager’s Office Budget, page 13, as
presented.
CARRIED
Strategic Initiatives Group
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 15 - 20
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Strategic Initiatives Group Budget, page 20, as presented.
CARRIED
BUSINESS DEVELOPMENT
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 159 - 165
Councillor Stavinga referenced the
funding provided to the economic development agencies, such as the Ottawa
Centre for Research and Innovation and the Ottawa Economic Development
Corporation.
R. Chartrand, Director, Business
Development, confirmed the items were located under the Operating – Business
Facilitation page. He explained that
with the creation of The Ottawa Partnership (TOP), an agreement was achieved
that TOP coordinate budget requests amongst the agencies and the funding would
flow through the Business Development Branch via service agreements held with
the agencies. With respect to the
breakdown of the funding, Mr. Chartrand confirmed it was the same as the past
many years, adding the budgets had been flat-lined. The Councillor requested the breakdown information be provided
separate and included in future budgets, noting the issue of transparency.
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Business Development Budget, page 164, as presented.
CARRIED
CORPORATE SERVICES
General Manager’s Office
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 417 - 420
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Corporate Services – General Manager’s Office - Budget, page 419, as presented.
CARRIED
Communications and Marketing
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 421 – 427
Councillor Hume referenced the increase in FTE’s. Mr. Kirkpatrick confirmed 5 of the 6 FTE’s
were a result of the Council decision to bring the portal operation
in-house. Councillor Hume stated he had
discovered e-portal information / financial requests throughout the budget and
he was therefore unable to obtain a clear indication of how much the portal
exercise was costing.
Mr. Kirkpatrick explained the operating costs for the e-portal were
split between the Communications and Marketing Branch and the Information
Technology Branch. With respect to the
total cost of the e-portal project, the General Manager confirmed staff would
provide an information memo detailed the information in an attempt to pull the
entire costs together.
Councillor Bloess commented he expected there would have been
amalgamation savings through the Communications and Marketing area, noting the
twelve previous advertising and newspaper clipping services. The Councillor inquired when a report on the
rationalization or review of the advertising policy would be coming forward for
consideration.
M.J. Lapointe, Director, Communications and Marketing, explained a
significant review of the former practices had been undertaken in 2001. She confirmed a report would be coming
forward within the next month regarding a comprehensive advertising
policy. The Director hoped to be able
to save dollars at the end of the process, avoid duplication, and achieve a
policy that was more thoughtful, strategic and relevant for residents.
Councillor Bloess referenced the additional cost for the newspaper
clipping service. Ms. Lapointe reviewed
the process and the inability to perform the task internally at this time,
adding it was not an effective use of a FTE resource. She explained the importance and benefits derived from the
electronic media monitoring, to both staff and the Councillors.
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Corporate Services – Communications and Marketing - Budget, page 426, as
amended by the revised page provided through the Director, Financial Services,
memo dated 27 February 2002.
CARRIED as amended
Financial Services
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 429 - 438
Councillor Chiarelli moved a Motion with respect to the City’s
long-range financial plan and reserve funds.
The Councillor commented that the new City inherited from the former
municipalities varying degrees of fiscal health, long range planning, and
prospects for sustainability of reserve funds and financial plans. As a result, he stated the Council was
required to develop the new City’s long-term plan. Councillor Chiarelli believed the 2002 budget was an excellent
starting point, referencing the absence of new debt or a tax increase, and an
opportunity to work with staff through the process in determining a long-range
plan.
With respect to the work of the subcommittee, Councillor Chiarelli
stated creative options and choices were required to allow the establishment of
the “savings account” to fund the long-term capital prospects. He referenced the need to be creative and
cooperative in order to identify some of the choices to come forward to the
Committee for consideration.
Speaking to the process, Councillor Chiarelli believed Council and
staff should work in partnership, noting the public would also play an
important role.
Councillor Chiarelli reviewed the decision to draw down on the
reserve funds for the 2002 budget and the criticism the City received as a
result. However, he referenced the
alternatives, which included not going forward with overdue and necessary
projects, or to issue further debt.
In closing and with respect to the former City of Nepean process,
Councillor Chiarelli reported it was a fifteen-year project. However, this illustrated that the financial
health of a municipality and the health of the City’s reserve funds could not
be judged by a one-year capital spending program.
Councillor Munter expressed his support for the Motion. Speaking to the current capital program, the
Councillor suggested it was necessary to recognize that the program was
insufficient to meet the needs of the community and was impacting projects that
were deferred.
Councillor Munter spoke to the former City of Nepean and its
extensive community investments and capital assets and facilities. However, he pointed out that the former City
for many years had the second highest development charges in the Province of
Ontario, and therefore, dealt with the capital demands of its community through
revenue. He believed the new City
needed to invest in transportation, transit, parks and recreation, services and
in the community facilities, and therefore, had to determine ways to pay for
it.
Councillor Kreling also expressed his support for the Chiarelli
Motion. In reference to January 2001,
Councillor Kreling commented on the extensive list of former municipal programs
and projects, including immediate and long term need, many with no identified
funding sources. The Councillor
acknowledged that many of the projects would not proceed and the infrastructure
resources would not carry on under the current situation.
With respect to the use of reserve funds, Councillor Kreling
reviewed the previous comments from the General Manager. He reminded the Committee the reserves were
used for the purposes of why they were originally accumulated. The Councillor commented the choice was to
spend the money and construct the capital needs or continue to hold it in
reserves collecting minimal interest.
He concurred with the earlier comments that there was a need for staff
and a subcommittee to review the long-term strategy / plan and to develop
sustainable and innovative mechanisms to fund infrastructure needs.
Councillor Bloess agreed the Motion was an appropriate reaction to
the warning signs provided by staff when the budget was tabled, adding it was
unfortunate the concept was not instituted in 2001.
In response to a question from Councillor Bloess regarding the
timeline to implement a Pay-As-You-Go (PAYG) policy that was satisfactory, Mr.
Russell explained the first requirement was to determine funding sources that
would cover the capital forecast that did not yet have identified funding
(considered the “gap portion”). At that
time, it was possible to begin to accumulate money into the reserves funds. Mr. Russell pointed out there was currently
a significant PAYG contribution in the budget, with $186 million contributed
annually. The Director explained the
two elements of a PAYG system were development charges and reserve fund
contributions. With respect to the
time line to achieve a full PAYG system, this would be determined by the work
of the subcommittee, which he believed would commence as early as April.
Mr. Kirkpatrick added that a full PAYG system was funding and
forecasting the ability to fund capital completely on a cash basis. He stated the City was many years away from
that position, however, the implementation of the subcommittee was a beginning
to achieving the objective. The General
Manager expected the report would be tabled immediately in advance of the
commencement of the 2003 budget exercise, being June or July.
In reference to the Motion, Mr. Kirkpatrick agreed it was necessary
to have a discussion on what was an appropriate PAYG strategy for the City,
reiterating that he believed there was a place for the reasonable use of debt
in financing some of the City’s capital infrastructure. He acknowledged the need for input from
Council and believed the subcommittee would assist in facilitating this.
With respect to the 2002 budget, Mr. Kirkpatrick explained the
five-year capital forecast was established in response to the 2001 budget
directions. Specifically, that a five
year capital forecast be established that identified the minimum capital
spending requirements of the City and identified the capital funding gap.
In closing, Councillor Bloess referenced the Motion and the proposed
membership of the subcommittee = members of the Corporate Services and Economic
Development Committee. He suggested
there might be other members of Council that would have a strong interest in
participating.
Councillor Stavinga inquired if the process was to be independent
and separate from the staff process, noting this could result in two different
outcomes. Councillor Chiarelli
clarified it was his intent the process be integrated and not two independent
processes working in isolation. He
moved an amendment to the fifth paragraph of the Motion to include the word
“integrated”.
With respect to the PAYG system and the current situation,
Councillor Stavinga commented on the public’s misperception that the City was
being financially irresponsible. She
believed staff had performed a service by identifying the “wall”, but had also
identified an action plan. Councillor
Stavinga requested the Director to explain how the decision was made re project
funding, whether through PAYG or through debt.
In response and with respect to the debt envelope, Mr. Russell
explained if specific projects were identified as being long term benefit
projects or assets (such as a major bridge structure), they may be considered
for debt / debenture financing. With
respect to the 2002 capital budget process, staff identified that they could
accommodate, within the guidelines, approximately $50 million worth of debt,
which was assigned to projects such as road rehabilitation. The Director further explained staff tried
to limit the number of projects because the administrative process around
issuing debt could be cumbersome and costly, if many projects.
Speaking to the ten-year plan and the work of the subcommittee, Councillor
Stavinga agreed with the need to identify the philosophies regarding
development charges and percentages of recovery. However, she noted the by-law would not be reviewed until the
consideration of the official plan and master plans. B. Thom, City Manager, confirmed the philosophies around such
things as to what extent was the PAYG financed, debt issuance, guidelines,
development charges and the application to the industry, would be considered,
without the pressure of budget deliberations.
He reviewed the opportunity for cooperation between staff and Council
working together.
Councillor Chiarelli stated one of the advantages of a PAYG system
over a 5 or 10 year period was that in some years it was possible to spend more
(as much as 2 – 4 times) on the capital program than in other years, providing
it conformed to the long range plan.
Mr. Kirkpatrick concurred stating that was a main benefit of a PAYG
approach. He added it provided an
identification on what was required on a long term basis, with the contribution
from taxes and rates identified on an annual basis, therefore modulating the
high spending years and the low spending years, and avoiding a tax impact.
Councillor Legendre acknowledged and concurred with the comments
regarding a proper role for debt. In
response to a question from the Councillor, Councillor Chiarelli confirmed this
matter would form part of the subcommittee work. Councillor Legendre also suggested it may be beneficial to expand
the subcommittee membership to other interested Councillors.
Councillor McNeely referenced the ongoing work of the large urban
Mayors regarding the lack of senior government funding and the similar
situation experienced by many Canadian cities.
He agreed there were other ways to deliver services, such as toll roads
or users fees, and suggested the work of the subcommittee would assist in this
review and provide leverage to approach upper levels of government. The Councillor expressed his support for the
Chiarelli Motion.
Mayor Chiarelli inquired about the relationship, if any, that
existed between stable funding previously received from the Provincial
government (such as transit funding) and PAYG and development charge
funding. Mr. Thom suggested that in
general the two were directly tied. He believed
the more stable the funding, the more the City could count on the mid to
long-term view of the potential revenues, therefore assisting in the plan
around the PAYG funding. The City
Manager commented on the difficulty that existed when stable funding was
discontinued simultaneous to down loading service responsibilities.
Mayor Chiarelli referenced the new Provincial Transit Infrastructure
Funding Program and inquired how long stable funding could be expected. Mr. Kirkpatrick explained that as part of
the plan development, there would be a need to obtain a better understanding on
how the Provincial and Federal funding partnerships / programs would operate,
and for how long. Mr. Kirkpatrick
confirmed that Hydro Ottawa was another area to be reviewed with respect to a
revenue source, referencing both interest on the note and dividends to begin to
accrue to the City. He reiterated the
need for the City to review how it, as the shareholder and owner of the asset,
maximized its financial wealth in the asset.
Mayor Chiarelli reported that Deputy Prime Minister Manley described
the Federal Infrastructure Program to the Mayors as strategic funding for
strategic projects. He commented that
commitments and approvals may come forward before the end of 2002. The Mayor inquired what the impact would be
on the five-year capital budgeting process, if Ottawa were slated for receipt
of significant funding. Mr. Kirkpatrick
stated when reviewing a five-year envelope of spending, the contribution of
significant funding from the Federal government, applied to projects already
identified in the five year spending plan, would result in a significant impact
on closing the funding gap.
As there was no further discussion, the Committee considered the
Chiarelli Motion as follows:
Moved by Councillor R. Chiarelli
Whereas the current Draft Capital Budget
proposes that staff create a Ten Year Capital Forecast for the City of Ottawa
and examine elements of affordability of these needs in relation to potential
revenues and the health of the City’s reserves and reserve funds,
And Whereas the new City of Ottawa has
inherited the financial positions of twelve former municipalities, each with
varying levels of fiscal health and long-range financial planning and with
disparate prospects of sustainability,
And Whereas the long-term viability of any
city’s reserves, reserve funds and fiscal program relies upon careful rational
long-range planning,
Be It Resolved That a subcommittee of the
Corporate Services and Economic Development Committee be created on long-term
Pay-As-You-Go, Reserve Fund and Capital Forecast strategies
And That this subcommittee work with staff to
examine our Ten Year Capital Forecast in relation to the health of the City’s
reserves and reserve funds and participate in developing recommendations as
part of the long-range financial plan exercise, to be completed concurrently
and integrated with the staff process
And That the subcommittee identify and
formulate options for the Corporate Services and Economic Development Committee
to consider regarding the establishment of a long-term Pay-As-You-Go strategy
that can sustain the health of the City’s reserves and reserve funds and meet
the demands of the municipality’s capital needs.
CARRIED
Councillor Hume referenced the Provincial Offences Act
function and the fact that approximately $35 million was outstanding in
uncollected fines. Mr. Russell
explained that when the function was transferred, the City also received the
accumulated outstanding receivables. He
reported the Provincial Offences Act receivables never expired, expect
upon death. The Director stated the
amount had accumulated over a number of years and would take a significant
amount of work to collect. The
Councillor inquired about the option of selling some of the difficult
collections in an attempt to obtain some return. Mr. Russell acknowledged that might be necessary, however, did
not believe the City was able to under the existing Municipal Act, but
believed it could under the proposed revised Act. The Director confirmed staff was to review
many facets of the operation with cost effectiveness on the forefront, noting
it was a revenue source.
In response to a further question, Mr. Russell explained the fines
were not limited to parking and traffic, but extend to multiple areas such as
fish poaching or driving without a license.
Councillor Chiarelli pointed out there may be outstanding fines
still showing on the books as uncollected, however, the individual was or has
served jail time. Therefore, it was
unlikely payment would be received without going through the normal civil
collection procedures, leaving the most economical option to sell the debt.
Councillor Stavinga requested clarification regarding the tax due
date and enforcement of the late payment penalty, noting the difficulty for
seniors, in particular with the date being prior to month end. Mr. Russell explained the process and
content of the by-law, which did call for imposition of a penalty on the day
following the due date and the first of the month. However, the Director reported in practice there was a grace
period and staff did not impose the penalty the day following the due date, but
did impose one on the first of the month.
He reviewed the timing difficulties of payments coming through to the
City, and actual posting of the transactions.
Mr. Russell confirmed if payment was received before or on the due date,
or through post dated cheques dated for month end, a penalty would not be
imposed. Councillor Stavinga stated she
would follow up with the Director as she wondered if this practice was
happening consistently in all parts of the operation, depending on where the
payment was made.
Councillor Bellemare referenced the statement in the budget
documentation that the credit rating agencies had indicated a desire to
undertake a more complete review of the City in its new form as a single tier
entity. The Councillor commented on
the benefit of the credit rating exercise and the current ratings. Mr. Russell reviewed the rating process,
stating an update was usually completed on an annual basis and generally a
thorough review completed every 3-5 years.
With respect to 2002, Mr. Russell did not believe a release would be prior
to year end, adding the process was quite extensive and took a number of
months. He confirmed he would report to
the Corporate Services and Economic Development Committee upon receipt of the
rating. Further to comments received
from Councillor Bellemare regarding the process, Mr. Russell stated he would
include information on the process, various factors that were taken into
account in establishing the rating, and points of comparison to other major
cities in Ontario, Canada or the United States.
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Corporate Services – Financial Services - Budget, page 436, as presented.
CARRIED
Fleet Services
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 439 - 447
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Corporate Services – Fleet Services - Budget, page 446, as presented.
CARRIED
Real Property Asset Management
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 449 - 461
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Corporate Services – Real Property and Asset Management - Budget, page 459, as
presented.
CARRIED
Legal Services
-
Corporate Services and Economic
Development Committee Operating Budget Book, pp. 463 - 469
Councillor Meilleur requested information regarding the reduction in
the external purchased services. J.
Bellomo, City Solicitor, explained the outsourcing was decreased in 2002 for
two reasons (i) reduced “trailer fees”
(being fees that should have been paid by the former municipalities
under the pre-amalgamation situation, but were not billed until after January
2001), and (ii) the reduction of the list of firms used resulting in
significant volume discounts provided to the City. Mr. Bellomo commented that prior to amalgamation, there were 31
different law firms providing services to the former 12 municipalities.
Councillor Stavinga reported that through discussions within
Development Services, it was indicated there was a significant backlog
regarding processing applications, particularly in Legal Services. She stated many of the former municipalities
contracted such work out with an excellent turnaround rate. Mr. Bellomo confirmed that area was the most
significant pressure point, but was being addressed. He added an additional law clerk had been obtained to attempt to
deal with the matter, in addition to the review of other means in consultation
with Development Services. He
anticipated the process would be improved once the agreements were
harmonized. Councillor Stavinga
commented on the frustration experienced in the development community. The City Solicitor confirmed if necessary,
the backlog would be addressed through outsourcing or short-term contract
employment.
Councillor Legendre noted the Legal Services objective to ensure
that elected officials were provided with appropriate advice. He stated this advice was often required
during committee meetings, commenting that Legal Services were only provided at
the Corporate Services and Economic Development Committee and Planning and
Development Committee, with the others being serviced on an on-call basis.
Councillor Legendre reviewed the difficulties associated with the
on-call system for the Emergency and Protective Services (EPS) Committee. He wondered what resources were required
and the financial impact to allow a solicitor to regularly attend the EPS
committee meetings. In addition, Councillor
Legendre noted the close link between the Emergency and Protective Services
Department and the Ottawa Police Services.
Mr. Bellomo confirmed he could have information regarding the impact on
resources in time for Council consideration of the budget.
Upon the request of Councillor Legendre, S. Kanellakos, General
Manager, EPS Department, commented the Committee met on the regular schedule
and as a result, the meetings were not lengthy. He agreed it would be beneficial to have legal representation at
the meetings, noting the issues deliberated.
Councillor Chiarelli commented on the many difficult and contentious
by-law harmonization issues yet to be considered by the EPS Committee. As a result, he moved the following Motion.
Moved by Councillor R. Chiarelli
That legal
representation from the Legal Services Branch be provided at the Emergency and
Protective Services Committee meetings on a regular basis rather than on an
on-call basis.
CARRIED with Councillor A. Munter dissenting.
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Corporate Services – Legal Services - Budget, page 468, as presented.
CARRIED
Information Technology Services
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 471 - 481
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Corporate Services – Information Technology Services - Budget, page 481, as
presented.
CARRIED
Secretariat Services
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 483 - 498
Councillor Munter stated the advisory committees, through their work
plans, had requested approximately $760,000, with $264,000 available through
the departmental base budgets. As a
result, funding requests totaling approximately $450,000 were outstanding and
being considered at the standing committee meetings during the budget
deliberations.
Councillor Munter moved a Motion allocating a set sum for the committees,
commenting it was less than he would prefer, as he believed the members should
be given the tools they needed to complete their work. The Councillor commented on the need for
activity and project guidelines and a global approach from a citywide
perspective.
Councillor Munter requested the General Manager of Corporate
Services to confirm the $150,000 allocation would not have an impact on the tax
levy, noting the Motion read that the funds were to come from existing
resources. Mr. Kirkpatrick stated it
would be an objective, however, Financial Services would be required to review
all of the Standing Committee budget decisions / adjustments and recommend how
they could be accommodated noting the impact on the bottom line.
Councillor Meilleur expressed
concern with the Motion, specifically on the $150,000 amount and the creation
of a panel. On a point of
clarification, Councillor Munter explained his Motion stated it would preclude
all other previous standing committee motions (re advisory committee work plan
funding). Councillor Meilleur
acknowledged this point, however, expressed concern with the three-member panel
and question of representation and equality.
Councillor Legendre believed the
Motion worked towards some resolution of the issue. He commented that 2001 was the first year for the advisory
committees under the new City. The
Councillor stated that many of the citizens were very enthusiastic in the ability
to participate with the City, however, pointed out that some had only recently
commenced operation. He agreed
additional resources were necessary.
With respect to the guidelines, Councillor Legendre suggested they would
assist Council’s decision to approve funding.
He reviewed his support for certain work plan activities, outlining the
rational and benefits that those activities would provide.
Councillor Stavinga expressed her
appreciation for the Motion, noting the need for consistency and a
process. She also commented on the wide
range of requests from the advisory committees, supporting the need for
guidelines. The Councillor concurred
that the responsibility for approval lay with Council, not a panel of
three. Councillor Stavinga reviewed
the benefits of the advisory committees in the contribution to the City’s operation. However, she pointed out that the ability
to contribute positively was contingent on having the funding required to
implement their work plans. In closing,
Councillor Stavinga suggested Council must take the responsibility for setting
up expectations through the prior approval of the work plans. She encouraged the Committee to support the
Motion, as it would provide transparency and consistency to the process. Councillor Stavinga agreed the funding was
to come from existing resources, and not an additional tax levy.
Councillor Bellemare expressed his
support for some components of the Motion, should Council agree to provide
program funding to the committees.
However, the Councillor wondered if the allocation of funding at this
time would raise the expectation that program funding would be available and
may increase in the future. If funding
was approved, he emphasized the need for criteria. Councillor Bellemare referenced the significant difference in the
requests coming forward from the advisory committees for the implementation of
their work plans. He agreed an
evaluation was required on a case-by-case basis with the use of guidelines and
criteria.
Councillor Bloess noted the
Secretariat Services Operating budget proposed funding for the advisory
committees. The Councillor inquired
about the 2002 expense portion of the budget.
P. Pagé, City Clerk, reported the total operating budget for the
advisory committees was $488,000, which included such things as staff support
and membership expenses. Councillor
Bloess commented 2001 did not represent a full year of activity and inquired
about the allocation for the members’ expenses. Mr. Pagé indicated more funds were being used than allocated,
noting some committees were just beginning operation or not yet activated.
In response to a question from
Councillor Brooks, Mr. Pagé explained the original recommendation in 2001 was
for twelve advisory committees with a base budget of $488,000. The Clerk confirmed there was an increase in
the 2002 budget of $357,000 to accommodate the additional committees and
boards. Councillor Brooks requested
confirmation of the total 2002 advisory committee budget. B. Thom, City Manager, confirmed the
restated number was $828,000.
Councillor Brooks commented on the need to have financial and
accountability controls on the advisory committees.
Moved by Councillor A. Munter
That staff be directed, from within existing
resources, to establish a $150,000 fund allocated to helping the City’s 17
citizen advisory committees carry out their work plans; and
Further that advisory committees submit
proposals to a panel of three Councillors, who will be delegated to allocate
the funds; and
Further that Committee recommend and Council
approve that this motion obviates all other motions allocating various funds
for advisory committees; and
Further that Secretariat Services develop
criteria, for Corporate Services and Economic Development Committee
consideration, to identify the range of activities and projects eligible for
funding.
CARRIED
YEAS (4): Councillors H.
Kreling, A. Munter, J. Stavinga, Mayor Chiarelli
NAYS (3): Councillors M.
Bellemare, R. Chiarelli, M. Meilleur
Mr. Russell explained an
adjustment was required to the Secretariat Services Operating budget (page 497)
– Revenues - as a result of the approval of the “Ontario’s Declining Charitable
Bingo Revenues: A Four-Point Action
Plan for Ottawa” report. In addition,
an adjustment was also required to the Non-Departmental – Revenue (page 545).
Moved by
Councillor A. Munter
That, as a
result of approval of the report entitled “Ontario’s Declining Charitable Bingo
Revenues: A Four-Point Action Plan for Ottawa” and specifically recommendation
no. 2, the Corporate Services and Economic Development Committee recommend
Council approve the following revisions to the Corporate Services and Economic
Development Committee Operating budget:
(i) Secretariat Services - page 497 – Revenues reduced by
$1.36 million.
(ii) Non-Departmental – Revenues – page 545 –
Rideau Carleton Raceway (Slot machine) revenue increased by $1.4 million.
CARRIED
That the Corporate Services and
Economic Development Committee recommend Council approve the 2002 Corporate
Services – Secretariat Services - Budget, page 497, as amended by the
previous Motion (Secretariat Services -
page 497 – Revenues reduced by $1.36 million.)
CARRIED as amended
HUMAN RESOURCES DEPARTMENT
General Manager’s Office
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 507 - 511
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Human Resources – General Manager’s Office - Budget, page 510, as presented.
CARRIED
Branch Services (Human Resource Services, Compensation, Payroll
& Benefits, Labour Relations, and Organizational Effectiveness)
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 513 - 527
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Human Resources – Branch Services Budgets, pages 520, 522, 524, 526, as
presented.
CARRIED
Corporate Benefits Provisions
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 529 - 533
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Human Resources – Corporate Benefits Provisions Budget, page 532, as presented.
CARRIED
NON-DEPARTMENTAL
Expenditures
- Corporate
Services and Economic Development Committee Operating Budget Book,
pp. 535 – 541 (pp. 537 – 540 as amended by the Director,
Financial Services memo
dated 27 February 2002.)
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Expenditures Budget, page 541, as presented.
CARRIED
Revenues
- Corporate Services and Economic
Development Committee Operating Budget Book, pp. 542 - 545
Duplication of
Motion from the previous Secretariat Services section.
Moved by
Councillor A. Munter
That, as a
result of approval of the report entitled “Ontario’s Declining Charitable Bingo
Revenues: A Four-Point Action Plan for Ottawa” and specifically recommendation
no. 2, the Corporate Services and Economic Development Committee recommend
Council approve the following revisions to the Corporate Services and Economic
Development Committee Operating budget:
(i) Secretariat Services - page
497 – Revenues reduced by $1.36 million.
(ii) Non-Departmental – Revenues – page 545 – Rideau Carleton
Raceway (Slot machine) revenue increased by $1.4 million.
CARRIED
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Revenues Budget, page 545, as amended by the previous Motion (Non-Departmental
– Revenues – page 545 – Rideau Carleton Raceway (Slot machine) revenue
increased by $1.4 million.)
CARRIED as amended
2002 DRAFT CAPITAL BUDGET AND FOUR YEAR FORECAST
CORPORATE GENERAL
Workforce Adjustment (Trstn)
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 58 - 59
That the Corporate Services and Economic Development Committee
recommend Council approve the 2002 Capital Project No. 900550 - Workforce
Adjustment (Trstn) Budget, pages 58 - 59, as presented.
CARRIED
Human Resources (Trstn)
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 60 - 61
That the Corporate Services and Economic Development Committee
recommend Council approve the 2002 Capital Project No. 900587 - Human Resources
(Trstn) Budget, pages 60-61, as presented.
CARRIED
Corporate Program Office – General (Trstn)
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 62 - 63
In response to a request from Councillor Hume regarding the Ottawa
Transition Office project, Mr. Kirkpatrick reported there were 22 FTE’s
provided for in the budget. The work
plan for 2002 and 2003 focused on approximately 38 separate projects with the
anticipation the completion would be in 2003.
Councillor Hume expressed concern with some of the projects, such as
the visual identity implementation plan.
He requested a report to come forward to a regular meeting of the
Committee providing information on the work plans / projects, how the money was
to be spent, and proposed time line.
Councillor Hume did not wish to hold approval on the budget item,
however, requested sufficient information to come forward at a future meeting.
That the Corporate Services and Economic Development Committee
recommend Council approve the 2002 Capital Project No. 901195 – Corporate
Program Office – General (Trstn) Budget, pages 62 - 63, as presented.
CARRIED
Ottawa Transition Board and Unallocated
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 64 - 65
That the Corporate Services and Economic Development Committee
recommend Council approve the 2002 Capital Project No. 901210 - Ottawa
Transition Board and Unallocated Budget, pages 64 - 65, as presented.
CARRIED
FLEET SERVICES
Drive Clean
-
Corporate Services and Economic Development Committee Capital Budget
Book, pp. 66 - 67
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900017 – Drive Clean Budget, page 66 - 67, as presented.
CARRIED
Corporate Vehicle & Equipment
Replacement Program
-
Corporate Services and Economic Development Committee Capital Budget
Book, pp. 68 - 69
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900723 – Corporate Vehicle & Equipment Replacement
Program Budget, pages 68 - 69, as presented.
CARRIED
Fuel Standardization System
-
Corporate Services and Economic Development Committee Capital Budget
Book, pp. 70 - 71
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901048 – Fuel Standardization System Budget, pages 70 - 71,
as presented.
CARRIED
REAL PROPERTY ASSET MANAGEMENT
Interim Accommodation
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 72 - 73
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900563 – Interim Accommodation Budget, pages 72 - 73, as
presented.
CARRIED
Life Cycle Renewal and Asset Management - Bldg
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 74 - 83
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900780 – Life Cycle Renewal and Asset Management - Bldg
Budget, pages 74 - 83, as presented.
CARRIED
Life Cycle Renewal - Parks
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 84 - 88
Councillor Stavinga commented on
the centers of expertise and life cycle renewal for parks. She noted the reference in different
locations throughout the budget, namely People Services, Transportation,
Utilities and Public Works (TUPW), Real Property Asset Management (RPAM), and
Development Services. Councillor Stavinga
inquired about the RPAM role regarding parks.
S. Finnamore, Director, explained
the responsibilities lay with the lifecycle renewal and the replacement of
existing components within a park.
Examples provided were walkways, lighting, play structures, etc. He added that TUPW responsibilities included
the maintenance of the park, repairs of various items such as benches,
etc. If replacement was required, the
matter moved to the RPAM program.
With respect to full cost
accounting, Mr. Finnamore explained it was planned for 2002 to pull together
the cost centers for each of the major facilities, including parks. As a result, Council and staff would be able
to identify the full cost for each of the items. He believed this would provide a benefit on the ability to report
on the cost of ownership.
Councillor Stavinga thanked staff
for the detail provided in the lifecycle investments, noting it was very
helpful.
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900781 – Life Cycle Renewal - Parks Budget, pages 84 - 88,
as presented.
CARRIED
Real Property Environmental Remediation
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 90 - 91
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901016 – Real Property Environmental Remediation Budget,
pages 90- 91, as presented.
CARRIED
Energy Retrofit Program
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 92 - 93
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901017 – Energy Retrofit Program Budget, pages 92 - 93, as
presented.
CARRIED
Landfill Assessment and Remediation
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 94 - 95
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901018 – Landfill Assessment and Remediation Budget, page
94 - 95, as presented.
CARRIED
Accessibility
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 96 - 98
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901033 – Accessibility Budget, pages 96 - 98, as presented.
CARRIED
Administrative Buildings - Retrofits
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 100 - 101
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901040 – Administrative Buildings – Retrofits Budget, pages
100 - 101, as presented.
CARRIED
Visual Identity
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 102 - 103
Councillor Stavinga stated many of
the signs in the former municipalities were recently new and were not in need
of replacement. She inquired about the
process of the change to signage. Mr.
Finnamore reported after a review of the capital budget and the requirement for
prioritization, the need was realized to formulate a signage policy and to
develop a way to incorporate the City’s identity without replacing the entire
sign. He stated there had been interest
expressed by the private sector to assume management for some of the larger
signs, an area that would be reviewed further.
Councillor Harder referenced the
former Signs Advisory Committee and the use of partnerships with the private sector
or tenants in a facility. Mr. Finnamore
reiterated a review of this concept would be undertaken in 2002. The Councillor stated efficiencies must be
sought and contracting out in certain areas did have merit. She inquired if contracts would be tendered
for the installation and dismantling of signs, commenting that the appropriate
internal department would participate in a Request for Proposal and tendering
process. Mr. Finnamore concurred, but
added that the study would determine the most cost-effective way to
proceed.
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901041 – Visual Identity Budget, pages 102 - 103, as
presented.
CARRIED
Security Initiatives
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 104 - 105
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901044 – Security Initiatives Budget, pages 104 - 105, as presented.
CARRIED
Program Properties Operational Responses
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 106 - 114
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901045 – Program Properties Operational Responses Budget,
pages 106 - 114, as presented.
CARRIED
Lansdowne Park - Retrofits
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 116 - 117
Mayor Chiarelli requested staff to
review the agreement between the former Region and former City of Ottawa, the
fund that was established and its intent, and the relationship with the
retrofit capital project. D. Moore,
Manager, Venture Capital, reported at the time of the transfer of Lansdowne
Park, funding in the form of a capital project (considered phase one) was
identified in the amount of $7.8 million for deferred maintenance and some work
required in anticipation of the Francophone Games. With respect to the 2002 requirement, Mr. Moore explained it
followed that line including further maintenance items regarding risk
management, security and others that would assist in delivering on the business
plan for increased revenue at the facility.
In response to an inquiry from
Councillor Bloess regarding the $10 million over five years, Mr. Moore
confirmed this funding was over and above the previous $7.8 million.
Councillor Bloess referenced the
demolition project and inquired if it would impact on the objective of the
operation breaking even. Mr. Moore
explained that neither the greening of the Park nor the demolition of the two
buildings would negatively impact the bottom line. He added the two buildings were functionally obsolete and the
area would be reinstated to parking, thereby creating a neutral impact.
Councillor Bloess commented on
inquiries received from charities that rent the Lansdowne facility, but were
limited in some ways such as a requirement regarding catering facilities. Mr. Moore confirmed the existing concession
contract expired the end of May and a Request for Proposal was undertaken to
review a new service provider, including exclusivity regarding concessions and
catering. He reported the stakeholders
were involved and the feedback received was positive. With respect to the charities, Mr. Moore indicated that staff
were prepared to work with the groups and attempt to offer what was required to
make their events viable, adding the City did not wish to see the charities
efforts lost.
Councillor Bloess inquired about
the capital funding for Jet Form Park.
Mr. Moore reported under the existing contract, the City was responsible
for new construction, if needed, and lifecycle renewal of which some deferred
lifecycle was required. He further explained
the operating costs of the Park were solely borne by the operator (The Ottawa
Lynx Ball Club). Mr. Moore confirmed
the sponsorship / naming rights of the Park was a revenue to the City and staff
was in the process of negotiations with completion expected in the near
future.
In closing, Councillor Bloess
referenced the limited use of the facility and inquired if there were other
opportunities. Mr. Moore explained
staff was in the process of reviewing this matter, including exploring the
costs required to adapt the facility to community orientated uses. He referenced the option of a public/private
partnership.
Councillor Kreling requested
information regarding the annual loss in operations for Lansdowne Park prior to
the Region and former City agreement.
Mr. Moore explained the figure varied from year to year, however, the
operating deficit had been as much as $2.5 million, and recently $1.2 - $1.5
million. He indicated had there not
been additional costs related to the Francophone Games, it might have been very
close to breaking even in 2001. It was
anticipated 2002 might provide a surplus situation.
Councillor Kreling inquired if it
was standard in the private convention center industry to have the provision of
food service and beverage under the control of a single service provider. Mr. Moore confirmed the industry standard
was to have an exclusive service provider and Lansdowne was presently an
exception. He added it was the intent
through a new contract to adhere more to the industry standard. With respect to the stakeholders and
charities, Mr. Moore reiterated staff intended to work closely with them to
ensure their viability.
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901046 – Lansdowne Park - Retrofits Budget, pages 116 -
117, as presented.
CARRIED
INFORMATION TECHNOLOGY SERVICES
Computer-Aided Design & Drafting (CADD)
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 118 - 119
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900119 – Computer-Aided Design & Drafting (CADD) Budget, page 118 - 119, as presented.
CARRIED
Lifecycle Maintenance - Network
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 120 - 121
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900446 – Lifecycle Maintenance - Network Budget, pages 120
- 121, as presented.
CARRIED
Network Infrastructure Improvements
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 122 - 123
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900447 – Network Infrastructure Improvements Budget, pages
122 - 123, as presented.
CARRIED
Lifecycle Maintenance – Telecom Systems
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 124 - 125
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900448 – Lifecycle Maintenance – Telecom Systems Budget,
pages 124 - 125, as presented.
CARRIED
Lifecycle Maintenance – Computers/Peripherals
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 126 - 127
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900452 – Lifecycle Maintenance – Computers/Peripherals
Budget, pages 126 - 127, as presented.
CARRIED
Surveys and Mapping Program
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 128 - 129
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900456 – Surveys and Mapping Program Budget, pages 128 -
129, as presented.
CARRIED
SmartCapital
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 130 - 131
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900470 – SmartCapital Budget, pages 130 -131, as presented.
CARRIED
Business Intelligence/Data Warehouse
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 132 - 133
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900471 – Business Intelligence/Data Warehouse Budget, pages
132 - 133, as presented.
CARRIED
SAP Platform Sustainment Program
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 134 - 135
Councillor McNeely requested an
update on the SAP and the Integrated Business System (IBS) programs and how the
operating funding tied to the capital funding.
With respect to the two items, Mr.
Kirkpatrick stated there was very little in the operating budget other than the
annual software licensing and maintenance fees.
Speaking to the two capital
budgets and their relation, Mr. Kirkpatrick reported the SAP Platform
Sustainment Program was a sustainment program and was required regardless of
the IBS program. He further explained
it represented the annual funding required to maintain and sustain the SAP
computing platform that the City operated and was related to the functionality
that currently existed on the system, and existed prior to January 1,
2001.
With respect to the second
project, the IBS program, Mr. Kirkpatrick referenced the prior Council approval
from November 2001. He provided a
positive project status update. The
General Manager commented that the first progress report was due to come before
the Committee in April and would provide comprehensive information regarding
the program status, including details surrounding the benefits realization.
In response to a question from
Councillor McNeely, Mr. Kirkpatrick reviewed the previous approval surrounding
the IBM contract at which time authority was delegated to the General Manager,
Corporate Services, to negotiate and execute the final contractual terms of the
standing offer with IBM Canada Inc. He
further explained that as a result, Council would see significant work orders
approved and reported through the quarterly delegated authority report,
totaling a maximum of $29 million over 2.5 years, for the subject project.
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900475 – SAP Platform Sustainment Program Budget, pages 134
- 135, as presented.
CARRIED
Records Information and Management
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 136 - 137
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900569 – Records Information and Management Budget, pages
136 - 137, as presented.
CARRIED
Geographic Information System (GIS)
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 138 - 141
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900607 – Geographic Information System Budget, pages 138 -
141, as presented.
CARRIED
Telecommunications (Trstn)
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 142 - 143
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900619 – Telecommunications (Trstn) Budget, pages 142 -
143, as presented.
CARRIED
Other Financial Systems (Trstn)
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 144 - 145
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900660 – Other Financial Systems (Trstn) Budget, pages 144
- 145, as presented.
CARRIED
Information Technology Total Cost of Ownership (TCO)
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 146 - 147
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900770 – Info. Tech. Total Cost of Ownership (TCO) Budget,
pages 146 - 147, as presented.
CARRIED
Computer Telecommunications
(Trstn)
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 148 - 149
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900923 – Computer Telecommunications (Trstn) Budget, pages
148 - 149, as presented.
CARRIED
Social Housing Information System
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 150 - 153
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901049 – Social Housing Information System Budget, pages
150 - 153, as presented.
CARRIED
Corporate Services Business Application Requirements
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 154 - 155
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901049 – Corp. Serv. Business Appl. Requirements Budget,
pages 154 - 155, as presented.
CARRIED
Electronic Services Program
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 156 - 157
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901051 – Electronic Services Program Budget, pages 156 -
157, as presented.
CARRIED
Departmental Technology Improvements
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 158 - 159
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901052 – Departmental Technology Improvements Budget, pages
158 - 159, as presented.
CARRIED
Integrated Business System
(Trstn)
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 160 - 161
Reference previous discussion under the “SAP Platform Sustainment
Program” section.
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901184 – Integrated Business System (Trstn) Budget, pages
160 - 161, as presented.
CARRIED
BUSINESS
DEVELOPMENT
Councillor Meilleur requested
information regarding the Film Office as outlined in the Business Development
capital budget. She referenced other
large cities such as Toronto, Vancouver, Montreal, and inquired if Ottawa was
considered a cluster for the film industry.
R. Chartrand, Director, Business
Development, reported that during the Economic Generators initiative, seven
clusters were identified in addition to two seed clusters, being the film and
television and the environmental technologies.
He stated the focus was on the seven mature clusters, however, during
2001 many local film and television producers had come together and agreed to
create a film liaison office. Mr.
Chartrand stated participation with the City was ongoing and assistance ($8,000
– $10,000) had been provided to fund a business case to review the potential in
the City. He added the report was
presented to The Ottawa Partnership and the concept was supported. The Director explained the project was at
the stage to develop a funding model involving the private sector, the industry
and the City. In the near future, it
was expected The Ottawa Partnership would consider a funding model and
depending on the outcome, a report may come forward to Committee and Council to
consider and formalize the City’s participation.
In response to a question from
Councillor Meilleur regarding the availably of funds and where the project was
located in the budget material, Mr. Chartrand expected the funding would come
from the Economic Affairs capital account.
Councillor Meilleur suggested the need for more detail information
regarding possible projects and the expected funding.
Councillor Meilleur referenced the
Convention Centre and the announcement from Minister Flaherty regarding the
$152 million in the SuperBuild program, and specifically $25 million allocated
for the Convention Centre, conditional on the City and the business sector
contributions. Councillor Meilleur
referenced the time restriction placed on the City by the Province and
requested an up-date.
Mr. Chartrand reported that
discussions were ongoing with the Province; however, the overriding issue was
the future ownership of the Ottawa Congress Centre. He stated until there was clarification from the Province on its
intention regarding future ownership, it was difficult for the City to become
deeply involved in discussions that could have extensive financial
ramifications.
Mr. Chartrand referenced the
ongoing correspondence between the Mayor’s office and the Province in an
attempt to seek clarification on the issue, which was required in order to
pursue discussion regarding the Convention Centre. The Director added if and when the time arose, there would be a
review of a number of different funding models and options to consider.
Mayor Chiarelli reported that the
first written offer for infrastructure financing received from the Province
through Minister Flaherty indicated that up to $25 million was available for
funding of an expanded Convention Centre, but was conditional upon the City of
Ottawa taking over the ownership, management and all future liability and
obligations of the Convention Centre.
The Mayor continued to explain that since that date, despite press
releases, verbal statements and a request from himself, there had been no
written confirmation from the Province providing clarification on
infrastructure funding, the $25 million or the previous condition regarding the
ownership/management.
Mayor Chiarelli reported a letter
had been received from the Minister of Tourism suggesting the ownership issue
could be resolved later. The Minister
recommended the City work in partnership with the Province, which would consist
of the Viking Rideau Corporation reconfiguration and re-costing for the revised
Convention Centre and without any consultation or participation in the
reconfiguration, the City may end up with ownership. In addition, the Mayor explained the City had not had input
regarding who the public / private partner may be. He suggested if the City was the owner, it might wish to consider
other options such as a broader partnership.
To summarize the current
situation, Mayor Chiarelli stated the Province owned and managed the Convention
Centre with the evolution of a new business plan and configuration of a new
building, yet when the finances were provided for infrastructure funding, there
may or may not be a condition that the City obtain ownership. He did not recommend further action or participation
by the City until there was written confirmation regarding ownership, the
infrastructure announcement and possible conditions.
Councillor Meilleur further
pointed out clarification was required regarding who would own the land, noting
the current situation of Viking Rideau owning the land and the Province owning
the building.
Mayor Chiarelli suggested two
options regarding process were as follows:
(1) if the Province continued to own and lead the partnership and
process, they should continue towards a business plan, concept and funding
model and if the City’s participation was required, it be approached at a later
date. (2) If the City was expected to
own the property, Council should be given the opportunity to discuss the issue,
and if approval was to obtain it, then the City should lead the partnership,
business plan and process.
Councillor Legendre believed at
the time of the press conference, Minister Flaherty imposed further conditions
impacting all infrastructure funding, such as the road funding. Mayor Chiarelli explained it was not clear
at this time, reiterating the lack of written confirmation.
With respect to the previous
Council Motion regarding the ability to levy room taxes, Councillor Legendre
requested an update. Mayor Chiarelli
reported a letter had been sent to Minister Flaherty requesting clarification
on the hotel room tax and local improvement scenarios for assisting with
Convention Centre financing. A response
was not yet received.
Councillor Legendre referenced the
Film office initiative. Mr. Chartrand
reviewed the City’s current role and the present group that assisted with all
issues related to accessing public facilities for certain sectors, such as
film. The Director clarified the Film
office initiative would not be City lead, but through the industry.
Councillor Stavinga referenced the
development of a broadband connectivity plan for the City. The Councillor stated the need to reach out
to the rural communities as they, due to distance, would most benefit from the
availability of e-services. However,
she added that many in the rural communities did not have adequate Internet
access. Councillor Stavinga referenced
the funding and ongoing work with the Ottawa-Carleton Rural Communities
Network, however, noted the greatest hurdle was the delivery of infrastructure
to make high speed Internet access available to the rural communities. She noted reluctance on the part of the
private sector partners such as Bell Canada and Rogers. Councillor Stavinga hoped she would have the
support when Council was required to determine if its prior commitment could be
translated in terms of infrastructure investment into the communities with
respect to towers.
Economic Affairs
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 162 - 163
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900003 – Economic Affairs Budget, pages 162 - 163, as
presented.
CARRIED
New Economic Vision for Ottawa -
Implementation
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 164 - 165
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 900850 – New Economic Vision for Ottawa – Implementation
Budget, pages 164 - 165, as presented.
CARRIED
City of Ottawa Gateway Signs
-
Corporate Services and Economic Development Committee Capital Budget Book,
pp. 166 - 167
That the Corporate
Services and Economic Development Committee recommend Council approve the 2002
Capital Project No. 901100 – City of Ottawa Gateway Signs Budget, pages 166 -
167, as presented.
CARRIED
Upon the conclusion of the budget review, the following
summarizes the Motions previously considered and to be presented to Council.
That the Corporate Services
and Economic Development Committee recommend Council approve the applicable
2002 Business Plans and Draft Operating Estimates and 2002 Draft Capital Budget
and Four Year Forecast, as amended by the following:
(Re: Financial Services – Operating)
1. Whereas the current Draft Capital Budget
proposes that staff create a Ten Year Capital Forecast for the City of Ottawa
and examine elements of affordability of these needs in relation to potential
revenues and the health of the City’s reserves and reserve funds;
And
Whereas the new City of Ottawa has inherited the financial positions of twelve
former municipalities, each with varying levels of fiscal health and long-range
financial planning and with disparate prospects of sustainability;
And
Whereas the long-term viability of any city’s reserves, reserve funds and
fiscal program relies upon careful rational long-range planning;
Be
It Resolved That a subcommittee of the Corporate Services and Economic
Development Committee be created on long-term Pay-As-You-Go, Reserve Fund and
Capital Forecast strategies;
And
Further that this subcommittee work with staff to examine our Ten Year Capital
Forecast in relation to the health of the City’s reserves and reserve funds and
participate in developing recommendations as part of the long-range financial
plan exercise, to be completed concurrently and integrated with the staff
process;
And
Further that the subcommittee identify and formulate options for the Corporate
Services and Economic Development Committee to consider regarding the
establishment of a long-term Pay-As-You-Go strategy that can sustain the health
of the City’s reserves and reserve funds and meet the demands of the municipality’s
capital needs.
(Re: Legal Services –
Operating)
2. That legal
representation from the Legal Services Branch be provided at the Emergency and
Protective Services Committee meetings on a regular basis rather than on an
on-call basis.
(Re: Secretariat Services –
Operating)
3. That staff be directed, from within
existing resources, to establish a $150,000 fund allocated to helping the
City’s 17 citizen advisory committees carry out their work plans;
Further
that advisory committees submit proposals to a panel of three Councillors, who
will be delegated to allocate the funds; and
And
Further that Committee recommend and Council approve that this motion obviates
all other motions allocating various funds for advisory committees;
And
Further that Secretariat Services develop criteria, for Corporate Services and
Economic Development Committee consideration, to identify the range of
activities and projects eligible for funding.
(Re: Secretariat Services –
Operating and Non-Departmental - Revenue)
4. That, as a
result of approval of the report entitled “Ontario’s Declining Charitable Bingo
Revenues: A Four-Point Action Plan for Ottawa” and specifically recommendation
no. 2, Council approve the following revisions to the Corporate Services
Department budget:
(i) Secretariat
Services - Operating - page 497 – Revenues reduced by $1.36 million.
(ii) Non-Departmental
– Revenues – page 545 – Rideau Carleton Raceway (Slot machine) revenue
increased by $1.4 million.
CARRIED as amended
