SUPPORTS ITEM NO. 1
CS&B COMMITTEE AGENDA
MARCH 14, 1996
ADMINISTRATIVE REPORT
Date: February 28, 1996
TO: Standing Committee on City Services and Budgets
FROM: General Manager of Corporate Services
SUBJECT: Report of the Interim Economic Development Commission
RECOMMENDATION
A. THAT Council receive the companion report of the
Interim Economic Development Commission on the
establishment of a permanent Economic Development
Commission for information.
B. THAT Council approve the form of incorporation, the
composition and size of the permanent Commission,
the qualifications of the Commission members, the
terms of reference, the first term priorities and
work plan, the rules of procedure, the selection
and appointment of staff, the establishment of an
office, and the first year's budget and financial
plan, all as set out in the companion report of the
Interim Economic Development Commission, subject to
the following considerations:
- that the City of Vancouver not hold shares in the
organizational structure of the Commission and
the City's business dealings with the Commission
be conducted on an arm's-length basis at all
times;
- that the Council representatives to the
Commission not have any voting rights or powers
pursuant to Commission business matters;
- that the term of membership on the Commission and
the limitation on the number of years a serving
member may sit as a commissioner is satisfactory
to Council, including the absence of any
staggered renewal provisions;
- that Council appoint the 15 initial members to
the permanent Commission and thereafter the
powers of Council to appoint new members be as
set out in a fee for service contract between the
City and the Commission; and,
- that Council is reasonably comfortable with the
sectoral representation applicable to Commission
membership as proposed in the companion report.
C. THAT Council instruct the City Manager and the
Director of Legal Services to enter into a fee for
service contract with the Economic Development
Commission as permitted under Section 242(2)(c) of
the Vancouver Charter under the terms and
conditions proposed in the body of this report.
The initial term of this contract will be for one
year, commencing on the date of execution of the
contract, at a fee of $200,000 plus GST, subject to
further two-year term renewals and Council
approval.
D. THAT the City Manager be authorized to commit staff
resources to the start up activities of the
Economic Development Commission on a reasonable
basis, provided additional funding is not required
for this support.
COUNCIL POLICY
On September 14, 1995, City Council approved a number of
recommendations concerning the future direction of the City's
economic development activities, as follows:
- approval in principle of the formation of a permanent
Economic Development Commission;
- the closure of the City's Economic Development Office;
and,
- the formation of an Interim Economic Development
Commission with instructions to develop the terms of
reference and organization model for the permanent
Economic Development Commission for report back to
Council in the early new year.
PURPOSE
This report recommends approval of the formation of a
permanent Economic Development Commission, essentially along
the lines set out in the companion report of the Interim
Economic Development Commission.
BACKGROUND
In February, 1995, the City of Vancouver Economic Development
Task Force recommended that an Economic Development
Commission be established. One of the first assignments of
the new Commission would be the development of an economic
vision for the City. The Commission would also serve as a
direct link between the business community and City Council.
Council agreed in principle to establish a permanent Economic
Development Commission and reappointed the Task Force, and
several additional members representing other community
interests, to form the Interim Economic Development
Commission. Council instructed that a new report be prepared
by January 31, 1996, outlining the following items:
- terms of reference for the new Commission;
- recommendations on the types of persons that should
be appointed to the Commission; and,
- an action plan for the first two years of the
Commission's mandate.
The Interim Commission met eight times, including several
meetings with representatives of City Council, to arrive at
the conclusions and recommendations embodied in their report
to Council dated January 31, 1996. The major items of this
report cover the following areas:
- the form of incorporation of the Commission;
- the composition and size of the Commission;
- the qualifications and experience of the Commissioners;
- the terms of reference of the Commission; and,
- first term priorities of the Commission.
Staff have reviewed these items and have provided commentary
below.
DISCUSSION
Council is directed to the companion report of the Interim
Commission for a detailed discussion on the role, structure,
composition and activities as proposed for a permanent
Economic Development Commission.
The following commentary is provided for Council
consideration.
1. Form of Incorporation
Having discussed this matter with Corporation Counsel, we
believe that the decision on the form of incorporation should
be left to the members of the Commission. Obviously, there
are alternative models of incorporation to that proposed in
the report (not-for-profit society, a not-for-profit B.C.
company), but based on the assumption that Council wishes to
maintain an "arm's-length" relationship with the new
Commission, the argument advanced by the Interim Commission
for greater flexibility is a persuasive one.
Regardless of the form of incorporation adopted, we recommend
that the City of Vancouver not hold any shares in the new
Commission, based on a arm's-length relationship.
2. The Composition and Size of the Commission
We believe that the proposal set out in the Interim
Commission report is reasonable. The permanent Commission
would have 15 members representing a broad cross section of
the business community with the capacity and commitment to
contribute to the economic development and prosperity of the
City of Vancouver.
Council may wish to review the proposal of selecting two
sitting members of Council to act as representatives to the
Commission. Having members of Council act in a liaison
capacity to Boards, Commissions and Committees provides a
conduit to facilitate matters of mutual interest and concern
and generally works well. We suggest, however, that Council
representatives to the Commission have no voting rights or
powers.
The report also proposes that Council select the first 10
members of the Economic Development Commission and these
members will then select the remaining five members to
balance sectoral representation on the Commission, to
facilitate partnership arrangements or to promote initiatives
vital to the economic development of the City of Vancouver.
We believe that Council should select all 15 of the initial
members for the initial term. After which, the selection
arrangement proposed by the Interim Commission should be
included as one of the conditions of a fee for service
contract between the City and the Economic Development
Commission.
The Interim Commission report suggests that the term for
members be two years with provision for reappointments to a
maximum of six years. There is no mention of staggered terms
for the commissioners and the continuity of governance that
that arrangement affords, and Council may wish to review this
aspect of renewal with the Interim Commission, if it is of
concern.
3. The Qualifications and Experience of the Commissioners
As mentioned above, the Interim Commission has proposed that
the commissioners bring to the table a capacity, experience
and interest to get the job done. Having members with
experiences which reflect the diverse nature of Vancouver's
business community is important. Council, however, may wish
to comment on the business experience sectors outlined in the
companion report.
4. Terms of Reference of the Commission
The terms of reference proposed for the permanent Economic
Development Commission appear reasonable and cover the
appropriate territory. Clearly, these initial terms are not
cast in concrete and will likely change over time as the
activities of the Commission take shape and mature.
Additionally, Council has requested that a permanent
Commission undertake three important operational activities
as a priority, as follows:
- dealing with information requests and referrals on
economic development matters;
- coordinating the visits of incoming business delega-
tions; and,
- coordinating the City's participation in outgoing
trade missions.
We suggest that the aforementioned operational activities,
including the provision of policy advice and commentary on
major economic development issues, be the subject of a fee
for service contract between the City and the Economic
Development Commission. The contract would also reflect the
following points:
- the initial term would be for one year commencing
upon execution of the contract by the City and the
Commission. The fee for service would be $200,000
(plus GST) as proposed in the budget and financial
plan included in the report of the Interim
Commission;
- the contract would include optional two-year term
renewals, subject to Council approval;
- the contract would provide for quarterly payments of
the annual contract fee in advance;
- the contract while in full force and effect would
provide Council with the authority to appoint 10
members of the Commission upon expiry of the terms of
sitting members;
- the Commission would present an annual business plan
and operating budget to the City for Council
considera-tion and approval in advance of each
anniversary date of the contract term;
- the Commission would be required to maintain appro-
priate financial records and provide annual audited
financial statements to the City; and,
- the Commission would be required to file a summary
report of the results of its activities and
accomplish-ments for Council review as soon as
practicable after the conclusion of each year of the
service contract.
5. First Term Priorities of the Commission
The first term priorities as outlined in the companion report
appear reasonable, noting that up to three months of start-up
time will likely be required to set up operations, hire staff
and commence regular business. In the interim period, a
small number of City staff may be required to assist with the
set up process. We suggest that the City Manager be
authorized to commit staff resources to this task as he deems
reasonable, provided this support can be accommodated without
an increase in the Operating Budget. We expect that
situation to be the case.
CONCLUSION
In September, 1995, Council decided to close the City's
Economic Development Office permanently. That task has now
been accomplished. Additionally, Council created an Interim
Economic Development Commission to assess and report back on
the structure and terms of reference for a permanent Economic
Development Commission. The Interim Commission has now
submitted its report on that subject dated January 31, 1996,
for Council consideration.
The recommendations of this report support the establishment
of a permanent Economic Development Commission along the
lines suggested by the Interim Economic Development
Commission.
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