CITY OF VANCOUVER
REGULAR COUNCIL MEETING MINUTES
STANDING COMMITEE OF COUNCIL ON
CITY SERVICES AND BUDGETS
APRIL 24, 1997
A Regular Meeting of the Council of the City of Vancouver was held
on Thursday, April 24, 1997 at 12:40 p.m., in Committee Room No. 1,
Third Floor, City Hall, following the Standing Committee on City
Services and Budgets meeting, to consider the recommendations of the
Committee.
PRESENT: Councillor Nancy A. Chiavario, Deputy Mayor
Councillor Don Bellamy
Councillor Jennifer Clarke
Councillor Alan Herbert
Councillor Daniel Lee
Councillor Don Lee
Councillor Gordon Price
Councillor Sam Sullivan
ABSENT: Mayor Phillip Owen (Civic Business)
Councillor Lynne Kennedy (Civic Business)
Councillor George Puil (Civic Business)
CITY MANAGER'S
OFFICE: Ken Dobell, City Manager
CLERK TO THE
COUNCIL: Tarja Tuominen
COMMITTEE OF THE WHOLE
MOVED by Cllr. Clarke,
SECONDED by Cllr. Bellamy,
THAT this Council resolve itself into Committee of the Whole, Mayor
Owen in the chair.
- CARRIED UNANIMOUSLY
COMMITTEE REPORTS
Report of Standing Committee on City Services and Budgets
April 24, 1997
Council considered the recommendations of the Committee, as
contained in the following clauses of the attached report:
Cl.1: 1996 Financial Statements
Cl.2: 1997 Final Operating Budget
Cl.3: Additional Taxation Policy Considerations for 1997
Cl.4: GVRD's BOD/TSS Proposed Pricing Strategy for Permitted
Industries
Cl.5: Gastown Lighting
Clauses 1, 2 and 4
MOVED by Cllr. Clarke ,
THAT the recommendations of the Committee, as contained in Clauses
1, 2 and 4 of this report, be approved.
- CARRIED UNANIMOUSLY
Additional Taxation Policy Considerations for 1997
(Clause 3)
MOVED by Cllr. Clarke,
THAT the recommendations of the Committee, as contained in Clause 3
of this report, be approved.
- CARRIED UNANIMOUSLY
(Councillors Chiavario and Puil opposed to D)
Gastown Lighting
(Clause 5)
Due to time constraints, decision on this item was deferred to the
Council meeting on May 6, 1997.
RISE FROM COMMITTEE OF THE WHOLE
MOVED by Cllr. Bellamy,
THAT the Committee of the Whole rise and report.
- CARRIED UNANIMOUSLY
ADOPT REPORT OF COMMITTEE OF THE WHOLE
MOVED by Cllr. Clarke,
SECONDED by Cllr. Bellamy,
THAT the report of the Committee of the Whole be adopted.
- CARRIED UNANIMOUSLY
The Council adjourned at 12:45 p.m.
* * * * *
REPORT TO COUNCIL
STANDING COMMITTEE OF COUNCIL
ON CITY SERVICES AND BUDGETS
APRIL 24, 1997
A Regular Meeting of the Standing Committee of Council on City
Services and Budgets was held on Thursday, April 24, 1997, at 9:30 a.m.
in Committee Room No. 1, Third Floor, City Hall.
PRESENT: Councillor George Puil, Chair (Items 1 to 3)
Mayor Philip Owen (Items 1 to 3)
Councillor Don Bellamy
Councillor Nancy A. Chiavario (Items 3 to 5)
Councillor Jennifer Clarke
Councillor Alan Herbert
Councillor Daniel Lee
Councillor Don Lee
Councillor Gordon Price
Councillor Sam Sullivan
ABSENT: Councillor Lynne Kennedy (Civic Business)
CITY MANAGER'S
OFFICE: Ken Dobell, City Manager
CLERK TO THE
COMMITTEE: Tarja Tuominen
ADOPTION OF MINUTES
The Minutes of the Standing Committee on City Services and Budgets
meeting of April 10, 1997, were adopted.
RECOMMENDATION
1. 1996 Financial Statements File: 1605-1
The Committee had before it a memorandum, dated April 15, 1997 (on
file) from the Director of Finance submitting the Financial Statements
of the City of Vancouver for the year ended December 31, 1996, audited
as of April 15, 1997, by KPMG Chartered Accountants, the City's external
auditors.
cont d
Clause No. 1 (cont d)
Hugh Creighton, Director of Finance, introduced Bob Shaw of KPMG
Chartered Accountants, and Roberta Hui, Manager of Accounting Services.
Mr. Shaw commented briefly on the conduct of the audit for 1996 and
commended staff, particularly from Accounting Services, on their
cooperation and assistance. A letter finalizing the 1996 audit will be
distributed to Council for information within the next few weeks.
The following motion by Councillor Bellamy was put and carried.
The Committee, therefore,
RECOMMENDED
THAT the City External Auditor's Report and the Financial
Statements of the City of Vancouver for the year ended December 31,
1996, be received for information.
- CARRIED UNANIMOUSLY
2. 1997 Final Operating Budget
The Committee had before it an Administrative Report dated April
15, 1997 (on file) in which the Director of Finance sought approval of
final adjustments to ensure all appropriate revenue and expenditure
estimates are included in the 1997 Operating Budget. The General Manager
of Corporate Services recommended approval.
Ken Bayne, Comptroller of Budgets and Research, reviewed the
recommendation.
The following motion by the Mayor was put and carried. The
Committee, therefore,
RECOMMENDED
A. THAT Council approve the final 1997 Operating Budget Revenue
and Expenditure estimates as presented in the Administrative
Report, dated April 15, 1997 and summarized in Appendix 1 of
the report.
B. THAT Council instruct the Director of Finance to bring the
1997 Budget Resolution and Rating By-laws to Council on May
13, 1997.
- CARRIED UNANIMOUSLY
3. Additional Taxation Policy Considerations for 1997
The Committee had before it a Policy Report dated April 8, 1997 (on
file) in which the Director of Finance outlined additional taxation
policy options for consideration before appropriate 1997 tax rates are
struck to reflect a balanced operating budget. The Director recommends
a 1997 Property Tax Limitation Program for Class 6 (business)
properties, but continuing to phase out the tax cap in the business
class.
In addition, the Director submits for consideration a differential
tax increase with a 6.6% increase applied to the residential class
levies, and a 3.0% increase applied to non-residential class levies
(Recommendation D). This will result in a 4.5% increase to the overall
tax levy.
At the request of the Citizens' Advisory Group on Property
Taxation, the Director is submitting, for consideration, the Advisory
Group's recommendations: to blend the tax rates for the light industrial
and business classes to a single rate to be phased in over a period of
up to five years; and, an across the board 4.5% tax increase combined
with a one percent tax burden shift from non-residential to residential
classes.
The General Manager of Corporate Services recommended approval of
the Property Tax Limitation Program for Class 6 properties, and
submitted Recommendation D for consideration.
Ken Stoke, General Manager of Corporate Services, and Karen Levitt,
Financial Analyst, with the aid of a slide presentation, provided an
overview of the report and the implications of several tax calculation
options on the different classes of properties, and responded to
questions.
Grayden Hayward, Chair, Citizens' Advisory Group on Property
Taxation, supported the recommendation of the Director of Finance and
also supported Recommendation D - the differential tax increase.
However, the Advisory Group preferred approval of an across-the-board
4.5% tax increase, combined with the one percent tax burden shift from
the non-residential to the residential classes. The Advisory Group also
supported a blended single tax rate to be applied to Class 5 (light
industrial) and Class 6 (business properties) and to be phased in over a
period of five years. Mr. Hayward strongly spoke against deferring
action on blending the tax rates until the implementation of a sewer
utility. Mr. Hayward also referred to a letter from the Advisory Group,
which presented the minority view of some members of the Group (Appendix
E of the report).
cont d
Clause No. 2 (cont d)
Professor Robert Clarke, past member, Citizens' Advisory Group on
Property Taxation, supported the position of the Advisory Group, and
urged the City to reduce taxation discrimination between heavy industry
and utilities. Professor Clarke expressed concern higher taxes may make
Vancouver less desirable for non-residential classes of properties.
In response to a question, Ken Stoke advised staff is recommending
deferral of blending tax rates for business and light industrial until
they can see what the impacts of the sewer utility and the proposed
TSS/BOD charge on sewerage will be. His preference would be to
eliminate some of the other measures, such as capping and differential
tax increases, before implementing any more.
During discussion, some members of the Committee strongly opposed
increasing the residential property tax rate. Other members spoke in
support of blending the light industrial and business properties' tax
rates to a single tax rate.
The following motion by Councillor Sullivan was put and carried.
The Committee, therefore,
RECOMMENDED
A. THAT Council instruct the Director of Finance to implement a
1997 Property Tax Limitation Program for Class 6 (business)
properties, along the lines and with the qualification
criteria discussed in the Policy Report dated April 8, 1997.
B. THAT Council instruct the Director of Legal Services to
prepare a 1997 Property Tax Limitation by-law applicable to
Class 6 (business) properties, containing the tax capping
parameters outlined in the Policy Report dated April 8. 1997,
for submission to Council for approval May 13, 1997.
C. THAT 1997 be the final year of the tax capping program for
Class 6 (business) properties, and that this be indicated on
the tax bills.
cont d
Clause No. 3 (cont d)
D. THAT Council approve a 3.0% increase to the tax levies of
Class 2 (utilities), Class 4 (major industry), Class 5 (light
industry) and Class 6 (business/other), and a 6.6% increase to
the Class 1 (residential), Class 8 (seasonal/recreational) and
Class 9 (farm) tax levies, representing an increase to the
overall tax levy of 4.5%.
- CARRIED
(Councillors Chiavario and Puil opposed to D)
The following motion by Councillor Sullivan was put and LOST.
THAT Council approve a blended single tax rate to be applied to
Class 5 (light industrial) and Class 6 (business) properties, and
that this blended rate be phased in over a period of five years.
(Councillors Bellamy, Chiavario, Herbert, Daniel Lee, Don Lee, Puil
and
the Mayor opposed)
4. GVRD's BOD/TSS Proposed Pricing Strategy for Permitted Industries
The Committee had before it an Administrative Report dated April 7,
1997 (on file) in which the General Managers of Engineering, Corporate
and Community Services recommended approval of a Greater Vancouver
Sewerage and Drainage District proposal for a Biological Oxygen
Demand/Total Suspended Solids (BOD/TSS) pricing strategy for permitted
industries. The BOD/TSS pricing strategy and respective charges will be
based on user-pay principles and contingent upon the Charter amendments
necessary for establishment of a Sewer Utility.
Tom Timm, Assistant City Engineer, briefly reviewed the report and
noted some industries will have a significant impact because of the
BOD/TSS. The proposal endorses a user pay philosophy. Mr. Timm also
noted there will be more discussion with industries during
implementation and some of the charges may not be quite as high as
projected. Mr. Timm reiterated endorsement of the BOD/TSS is subject to
a Sewer Utility being in place; other municipalities with Sewer
Utilities have gone ahead with the proposal.
cont d
Clause No. 4 (cont d)
Hew McConnell, Manager, Sewerage and Drainage District Department,
Greater Vancouver Regional District, with the aid of slides, presented
an overview of the BOD/TSS pricing strategy. Industry is a major
contributor of BOD and TSS and therefore a major driver of treatment
plant capital and operating costs. Industry's cost of service for
treatment has been subsidized by the residential and commercial sectors.
Industry will be encouraged to invest in on-site treatment options which
will reduce high strength BOD/TSS. The implications of subsidizing
industries include: industry will make greater use of low cost regional
sewage services; sewerage costs will go up more quickly as demand drives
system expansion; residential and commercial sectors will continue to
pay more than their fair share; the District will get into compliance
issues and major industry is contributing to that situation.
In response to questions, Mr. McConnell advised New Westminster and
Surrey are concerned about the economic impacts of the pricing strategy.
The following speakers expressed concerns with the BOD/TSS pricing
strategy:
Greg Whalley, Vice-President, Corporate Affairs, Fletchers Fine
Foods
Scott Ellis, Molsons' Breweries (brief filed)
Don Scott, Superior Poultry
The speakers points are summarized as follows:
Would like to know the magnitude of the BOD/TSS charges and how
they will be phased in;
Want to be assured industries will be taxed only on what they put
in the sewerage system;
Any increase in costs greatly reduces the competitiveness of
industries;
Treatment costs should be extended to all industries, not just
heavy users, at the same time;
Support Council in undertaking a study to look at regional
competitiveness issues to assist in decision-making, e.g. New
Westminster has deferred a decision on fees pending a full economic
impact assessment;
Support a phase-in period as recommended by the GVRD;
High costs can force some industries to move out of the region.
cont d
Clause No. 4 (cont d)
(Mayor Owen left at this point in the proceedings due to civic
business)
* * * * *
The Chair left the meeting at 12 noon, due to civic business;
Councillor Chiavario, Vice-Chair, assumed the Chair.
* * * * *
In response to questions, Mr. Timm advised Council is being asked
to endorse the pricing strategy approach. The cost will be passed on to
industry, but the City has not decided when and how much. The cost will
be determined by a number of variables, including property tax issues.
The following motion by Councillor Clarke was put and carried. The
Committee, therefore,
RECOMMENDED
A. THAT Council advise the GVRD Board it endorses the Biological
Oxygen Demand/Total Suspended Solids (BOD/TSS) pricing
strategy proposal subject to the Charter amendments necessary
for the Sewer Utility and the following four points:
1. That each municipality maintain control of the billing of
the BOD/TSS pricing.
2. That full implementation of the BOD/TSS pricing be
complete by 2001, with municipalities having the option
to phase in the charges.
3. That the BOD/TSS capacity charge evolve into pricing
options that provide off-peak incentives and real time
pricing.
4. That the GVRD and municipalities ensure that municipal
and regional sewerage and drainage costs are clearly
delineated, there be no double-billing of industry, and
that the charges reflect the user-pay philosophy.
cont d
Clause No. 4 (cont d)
B. THAT the Citizen's Advisory Group on Property Taxation be
directed to consider the issue of BOD/TSS pricing as it
relates to implementation, billing, mitigation and
coordination with the Sewer Utility and to report back with
options following the Charter amendments for the Sewer
Utility.
- CARRIED UNANIMOUSLY
(Councillor Puil and the Mayor not present for the vote)
5. Gastown Lighting
The Committee had before it an Administrative Report dated March
12, 1997 (on file) in which the General Manager of Engineering Services,
in consultation with the General Manager of Community Services,
recommended staff proceed with implementing the 1994 Operating Budget
Management cut of $41,000 per year by converting the Gastown Style
Lighting to a fluorescent source.
Susan Clift, Street Lighting & Broadband Communications Engineer,
reviewed the report, noting the incandescent lighting also extends
outside of the Gastown Historic area. Staff were asked to consult the
property owners, and of a total of 259 surveys, 23% were returned, with
90% in favour of conversion to the fluorescent lighting. There have been
no complaints from the public at large to the fluorescent light
replacements in place on the 300 block of Water Street.
Jeannette Hlavach, Heritage Planner, expressed concern about
switching the Gastown lamp standards to fluorescent lighting. Gastown
is the last location with incandescent lighting in the city. Replacing
the incandescent lighting with fluorescent will make it difficult for
staff to argue with private property owners of heritage buildings to
keep to authentic materials.
The following spoke in opposition to the change to fluorescent
lighting in Gastown:
Mary Jewell, Friends of Incandescence
Ralf Kelman, Friends of Incandescence
Michael McCoy
John Ellis, Gastown Heritage Planning Advisory Committee
Clause No. 5 (cont d)
The speakers points are summarized as follows:
the Community asks for time to look for a funding solution to
retain the existing incandescent lighting;
this is an opportunity to keep the last concentration of
incandescent lighting in the city;
preserving heritage carries a responsibility to use the appropriate
material;
preserving the incandescent lighting is about taste and ambience;
incandescent lighting is a standard in the Gastown area;
there is a noticeable difference between the incandescent and
fluorescent lighting;
fluorescent lighting is not an aesthetically appropriate choice;
the private sector is expected to maintain heritage standards.
The Chair advised due to time constraints, decision on this matter
will be deferred to a future meeting.
Note from Clerk: Please see the Minutes of the Meeting of City
Council on May 6, 1997 for Council's decision on
this matter.
The meeting adjourned at 12:40 p.m.
* * * * *