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CITY OF VANCOUVER

REGULAR COUNCIL MEETING MINUTES
STANDING COMMITTEE OF COUNCIL ON
CITY SERVICES AND BUDGETS

MAY 4, 2000

A Regular Meeting of the Council of the City of Vancouver was held on Thursday, May 4, 2000, at 3:48 p.m., in Committee Room No. 1, Third Floor, City Hall, following the Standing Committee on Planning and Environment meeting, to consider the recommendations of the Standing Committee on City Services and Budgets.

COMMITTEE OF THE WHOLE

MOVED by Cllr. McCormick,
SECONDED by Cllr. Daniel Lee,

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
May 4, 2000

Council considered the recommendations of the Committee, as contained in the attached report dated May 4, 2000:

Cl.1: 2000 Operating Budget - Final Estimates
Cl.2: 1999 Financial Statements
Cl.3: Reconsideration of Community Services Grants Applications
Cl.4: Tourism Vancouver 2000 Business Plan / 2% Hotel Tax Revenues
Cl.5: 2000 Property Tax Options
Cl.6: Parking Corporation of Vancouver - 2000 Budget Review

Clause 1

MOVED by Cllr. Puil,

THAT the recommendation of the Committee, as contained in Clause 1 of the attached report, be approved.

- CARRIED

(Councillor Louis opposed)

Clause 2

MOVED by Cllr. Puil,

THAT the recommendation of the Committee, as contained in Clause 2 of the attached report, be approved.

- CARRIED

(Councillor Louis opposed to Recommendation A)

Clause 3

MOVED by Cllr. Puil,

THAT recommendations A, C, and E of the Committee, as contained in Clause 3 of the attached report, be approved.

- CARRIED UNANIMOUSLY AND
BY THE REQUIRED MAJORITY

Committee Reports (Cont'd)

MOVED by Cllr. Puil,

THAT recommendations B and D of the Committee, as contained in Clause 3 of the attached report, be approved.

- CARRIED

(Councillor Louis opposed to Recommendations B and D,

Councillor Sullivan opposed to Recommendation D)

Clause 4

MOVED by Cllr. Puil,

THAT the recommendations of the Committee, as contained in Clause 4 of the attached report, be approved.

- CARRIED

(Councillor Louis opposed to Recommendation A)

Clause 5

MOVED by Cllr. Sullivan,

THAT the recommendation of the Committee, as contained in Clause 5 of the attached report, be approved.

- CARRIED

(Councillors Louis and Puil opposed)

Clause 6

MOVED by Cllr. Puil,

THAT the recommendations of the Committee, as contained in Clause 6 of the attached report, be approved.

- CARRIED UNANIMOUSLY

RISE FROM COMMITTEE OF THE WHOLE

MOVED by Cllr. McCormick,

THAT the Committee of the Whole rise and report.

- CARRIED UNANIMOUSLY

ADOPT REPORT OF COMMITTEE OF THE WHOLE

MOVED by Cllr. Price,
SECONDED by Cllr. Sullivan,

THAT the report of the Committee of the Whole be adopted.

- CARRIED UNANIMOUSLY

The Council adjourned at 3:50 p.m.

REPORT TO COUNCIL

STANDING COMMITTEE OF COUNCIL
ON CITY SERVICES AND BUDGETS

MAY 4, 2000

A Regular Meeting of the Standing Committee of Council on City Services and Budgets was held on Thursday, May 4, 2000, at 9:30 a.m., in Committee Room No. 1, Third Floor, City Hall.

*Denotes presence for part of the meeting.

VARY AGENDA

The Committee agreed to vary the order of the agenda, in order to deal with item 4 first. For ease of reference, the agenda items are minuted numerically.

ADOPTION OF MINUTES

The Minutes of the Standing Committee on City Services and Budgets meeting of April 6, 2000, were adopted.

RECOMMENDATION

1. 2000 Operating Budget - Final Estimates File: 1605

The Committee had before it an Administrative Report dated April 29, 2000, in which the Director of Finance reviewed the 2000 Operating Budget as balanced by Council on April 20, 2000, and recommended Council approve the final 2000 Operating Budget revenue and expenditure estimates as outlined in the report. The General Manager of Corporate Services recommended approval of the recommendation.

Ken Bayne, Director of Financial Planning and Treasury, provided an overview of the Administrative Report, and responded to questions on how reductions will be applied.

The following motion by the Mayor was put and carried. The Committee, therefore,

RECOMMENDED

THAT Council approve the final 2000 Operating Budget revenue and expenditure estimates as outlined in the Administrative Report dated April 29, 2000, and summarized in Appendix 1 by approving the budget resolution attached as Appendix 2.

- CARRIED

(Councillor Louis opposed)

2. 1999 Financial Statements File: 1503

The Committee had before it an Administrative Report dated April 26, 2000, in which the General Manager of Corporate Services, to fulfill the legislative requirements of the Charter and for Council's information, presented the City's 1999 Financial Statements for the year ended December 31, 1999, audited as of April 14, 2000, by KPMG Chartered Accountants, the City's external auditors.

Estelle Lo, General Manager of Corporate Services, provided an overview of the financial statements and introduced Bob Shaw of KPMG Chartered Accountants, and Terry Corrigan, Director of Financial Services. Council was advised of new standards and the need to make provision for previously unrecorded liabilities such as deferred vacation, overtime, and sick leave. At the request of a Council member, Ms. Lo agreed to report back comparing the financial position of the City and Province, and provide details related to the decrease in the hotel tax.

Clause 2 Cont'd

The following motion by Councillor Daniel Lee was put and carried. The Committee, therefore,

RECOMMENDED

THAT Council receive for information the City of Vancouver 1999 Financial Statements for the year December 31, 1999.

- CARRIED UNANIMOUSLY

3. Reconsideration of Community Services Grants Applications File: 2151

The Committee had before it an Administrative Report dated April 19, 2000, in which the Director of Community Services, Social Planning, recommended a revision to the original decision on the grant application from the Adult Learning Development Association (ALDA), and no change to the decision on the applications from Common Concerns, Downtown Eastside Residents Association, La Boussole, and the Vancouver Recovery Club.

The General Manager of Community Services submitted the recommendations for Council's consideration.

Rick Gates, Social Planner, reviewed the Administrative Report and its recommendations and advised City policy provides only two bases for reconsideration -- the grant was not properly applied for, or improperly assessed. Jeff Brooks, Director of Social Planning, provided clarification on eligibility criteria for community services grants.

Messrs. Dale Hoffman and Merlin Mah (brief and financial statements filed), Common Concerns, spoke to the eligibility criteria policy and requested Council reconsider their grant application. Mr. Hoffman advised the requested grant was not specifically for the Clothes Encounters Laundromat/Cafe, but rather for Common Concerns, which is a mutual aid society wherein residents who want to be self-sustaining support each other through the process. Mr. Mah noted Common Concerns, at the encouragement of City, Vancouver Economic Development Commission and DERA, have started developing community economic development programs, and requested a one-year terminating grant if this is not within the mandate of the Community Services Grants. Mr. Mah advised the year end financial statement submitted this day contains a revised, more reasonable budget.

Clause 3 Cont'd

Council members discussed with Messrs. Hoffman and Mah other grant options available, and noted senior governments are responsible for start-up funding.

The following delegations requested Council remove the termination clause from the recommended one year grant to the Downtown Eastside Residents Association (DERA):

… Ian MacRae, Chair, DERA
… Terry Pitkeathley, resident
… Paul Taylor, Treasurer, DERA
… Perlas Sabino, resident
… Lou Demerais, Executive Director, Vancouver Native Health Society
… Frank Gilbert, Executive Director, DERA

The following is a summary of comments provided by the foregoing speakers:

… many DTES residents, currently assisted by DERA, will be impacted if funding is terminated
… the funding is required to allow DERA to continue with some projects currently underway, i.e. landlord/tenant advocacy, assistance with tax forms, work with other community groups and coalitions, provide phone number and voice mail to many area residents, jobs created by the Metropol project, work with film industry

Mr. Gates noted a future discussion is planned around policy issues related to the community services grants program; however at this time community economic development is not an appropriate use of funds from this grant program. Council members concurred with the foregoing.

The following motion by Councillor Louis was put and lost:

THAT consideration of a grant to Common Concerns be postponed for one month.

- LOST

(Councillors Clarke, Daniel Lee, Price, Puil, Sullivan
and Mayor Owen opposed)

Clause 3 Cont'd

The following motion by Councillor Louis was put and lost:

THAT Council approve a grant of $120,000 to Common Concerns.

- LOST

(Councillors Clarke, Daniel Lee, McCormick, Price, Puil, Sullivan
and Mayor Owen opposed.)

The following motion by Councillor Louis was put and carried. The Committee, therefore,

RECOMMENDED

A. THAT Council approve a grant of $15,000 to the Adult Learning Development Association (ALDA), with $7,500 of this amount coming from the allocation originally recommended, but not approved, for this organization and the remaining $7,500 coming from the Emergencies and Unforeseen Circumstances Reserve established by Council on March 28, 2000. Approval of this grant will leave a balance of $3,640 in the Reserve;

- CARRIED UNANIMOUSLY

The following motion by Councillor Clarke was put and carried. The Committee, therefore,

RECOMMENDED

B. THAT Council not approve a grant to Common Concerns, in accordance with Social Planning’s original recommendation;

- CARRIED

(Councillor Louis opposed)

(Councillor Price not present for the vote)

Clause 3 Cont'd

The following motion by Councillor Clarke was put.

C. THAT Council approve a terminating, one year grant of $27,540 to the Downtown Eastside Residents Association (DERA) for the Community Organizer position, in accordance with Social Planning’s original recommendation;

- carried unanimously

The following amendment by Councillor Louis was put and lost.

THAT the above motion be amended by the deleting the words "terminating, one year".

- LOST

(Councillors Clarke, Daniel Lee, McCormick, Price, Puil, Sullivan
and Mayor Owen opposed)

The amendment having lost, Councillor Clarke's motion was put and carried. The Committee, therefore,

RECOMMENDED

C. THAT Council approve a terminating, one year grant of $27,540 to the Downtown Eastside Residents Association (DERA) for the Community Organizer position, in accordance with Social Planning’s original recommendation.

- CARRIED UNANIMOUSLY

The following motion by Councillor Clarke was put and carried. The Committee, therefore,

RECOMMENDED

D. THAT Council not approve a grant to La Boussole, in accordance with Social Planning’s original recommendation;

Clause 3 Cont'd

E. THAT Council approve a grant of $26,260 to the Vancouver Recovery Club, in accordance with Social Planning’s original recommendation.

- CARRIED

(Councillors Louis and Sullivan opposed to Recommendation D)

4. Tourism Vancouver 2000 Business Plan / 2% Hotel Tax Revenues File: 6008

The Committee had before it an Administrative Report dated April 20, 2000, in which the General Manager of Corporate Services, in consultation with the City Manager, reviewed the Tourism Vancouver 2000 Business Plan and recommended approval of their request for the entire 2% Vancouver Hotel Tax revenues for 2000 for their tourism promotion program. The City Manager recommended approval of the recommendations, but noted it is important for Council to receive a more detailed explanation from Tourism Vancouver of their spending patterns. A full discussion will be scheduled for a Council Committee meeting in June.

Estelle Lo, General Manager of Corporate Services, and Brent MacGregor, Deputy City Manager, provided an overview of the Administrative Report and responded to questions related to potential use of funds generated from the hotel tax, as set out in the City's by-law. Olympic Bid and Convention Centre Funding issues were also discussed.

Rick Antonson, President and CEO, Tourism Vancouver, Gord Johnson, President, Vancouver Hotel Association, and General Manager of Delta Suites Hotel and Mark Startup, President - Retail Merchants Association appeared before the Committee. The following is a summary of comments provided by the foregoing speakers:

… Tourism Vancouver does not have surplus funds, all monies are earmarked for reinvestment
… the importance of endorsing the two recommendations before Council this day
… commend implementation of Statement of Intent, as vital to healthy and successful business community in Vancouver
… there is a need to increase marketing investments now -- with major competition from other cities vieing for the same business, and an expected hotel room occupancy rate of 62% in 2000 due to increased supply
… a complete presentation will be provided to Council by Tourism Vancouver in June

Clause 4 Cont'd

A member of Council suggested the need for a set limit on the amount of funds the City forwards to Tourism Vancouver from the hotel tax payments received.

The following motion by the Mayor was put and carried. The Committee, therefore,

RECOMMENDED

A. THAT Council approve the portion of the Greater Vancouver Convention and Visitors Bureau (Tourism Vancouver’s) 2000 Business Plan funded by the 2% Hotel Tax, and that the 2% Hotel Tax payments received by the City for the

2000 fiscal year be forwarded to Tourism Vancouver as and when they are received by the City, on the condition that their budget provides up to $400,000 for the Trade &Convention Centre project definition report and $100,000 for the 2010 Olympic Bid Corporation.

B. THAT Council request a comprehensive review and presentation from Tourism Vancouver, to be scheduled in June 2000. The review should include the following: Tourism Vancouver’s long-term strategic priorities, activities carried out by the organization, projected growth of Hotel Tax revenues and projected future of the tourism industry and hotel stock, Tourism Vancouver’s future plans for the revenues, and accountability and performance measures used by the organization.

- CARRIED

(Councillor Louis opposed to Recommendation A)

5. 2000 Property Tax Options File: 1551

The Committee had before it a Policy Report dated April 25, 2000, in which the General Manager of Corporate Services and Director of Finance discussed various taxation policy options relevant to the 2000 taxation year, and put forward for Council's consideration approval of a shift in the tax burden equal to approximately 1% of the 2000 general purposes tax levy, proportionately from Class 2, Class 4, Class 5 and Class 6 to Class 1 properties.

Ken Bayne, Director of Financial Planning and Treasury, provided an overview of the Administrative Report.

Clause 5 Cont'd

Bob Langlois, Citizens' Advisory Group on Property Taxation (brief filed), introduced Afton Cayford, Chair of the group, and provided Council with a PowerPoint presentation setting out the group's perspective on Tax Burden Policy from 1983-1999.

Stuart Swain, Vice-President, Downtown Vancouver Business Improvement Association, and General Manager of Pacific Centre spoke in support of the 1% shift.

Councillors in support of the shift in tax burden noted the benefit to residential taxpayers because of services provided by commercial taxes, while those opposed noted the continued loading of taxes on residential taxpayers, who are unable to write off these taxes.
The following motion by Councillor Sullivan was put and carried. The Committee, therefore,

RECOMMENDED

THAT Council approve a shift in the tax burden equal to approximately 1% of the 2000 general purposes tax levy (approximately $3.69 million), proportionately from Class 2 (utilities), Class 4 (major industrial), Class 5 (light industrial) and Class 6 (business/other) to Class 1 (residential) properties.

- CARRIED

(Councillors Puil and Louis opposed)

(Mayor Owen not present for the vote)

6. Parking Corporation of Vancouver - 2000 Budget Review File: 1753

The Committee had before it an Administrative Report dated April 26, 2000, in which the General Manager of Engineering Services, in consultation with the General Manager of Corporate Services, sought Council's approval for the 2000 Parking Corporation of Vancouver (VPC) Capital Budget, and 2000 Marketing and Communications Plan and provided the VPC 2000 Operating Budget, and 1999 Actual Financial Figures, to Council for information.

Clause 6 Cont'd

Dave Rudberg, General Manager of Engineering Services, and Estelle Lo, General Manager of Corporate Services were present to respond to questions from Council. Dave Walker, Corporate Secretary/Treasurer and Chair of Planning for the Parking Corporation of Vancouver, responded to questions related to parking rates.

Messrs. Frank Lee and Doug McNicol, CUPE Local 1004, (brief filed) expressed concern regarding Recommendation C.i, as cost savings from a similar project at Pacific Centre Parkade have not been realized. The Union did not support the approval or conditional approval of Recommendation C.ii, as the automation of Car Parks #2 and #19 will have an enormous negative impact on patrons of these car parks. The result could be lost revenues, as has been the case with Car Park #3, due to broken gate barriers and free parking opportunities. With the proposed automation, VCC students' vouchers cannot be properly validated, and will result in loss of their saving advantage.

Mr. Rudberg noted the need to ensure a full business case is in place before work proceeds on Car Parks #2 and #19, hence the recommended conditional approval in the report's Recommendation C.ii.

The following motion by Councillor Clarke was put and carried. The Committee, therefore,

RECOMMENDED

A. THAT Council receive for information, the summary of the Parking Corporation of Vancouver (VPC) 1999 Operating and Capital Actual Financial Figures, with the Audited Financial Statements available through the offices of the General Managers of Engineering and Corporate Services.

B. THAT Council receive for information the summary of the Parking Corporation of Vancouver (VPC) 2000 Operating Budget, with the complete 2000 Operating Budget available through the offices of the General Managers of Engineering and Corporate Services.

C. THAT Council approve the Parking Corporation of Vancouver (VPC) 2000 Capital Budget, to be funded by off-street parking revenues collected by the VPC as follows:

Clause 6 Cont'd

i) THAT portions of the 2000 Capital Budget, totalling $256,959.00 as outlined in Table 4 in this report be approved.

D. THAT Council approve in principle the Parking Corporation of Vancouver (VPC) 2000 Marketing and Communications Plan and conditionally approve the initial budget of $150,000 to be funded by off-street parking revenues collected by the VPC, subject to review and approval of the financial projections, the financial arrangements, the specific contract details, and the implications of the City’s Corporate Sponsorship Policies, all to the satisfaction of the General Managers of Engineering and Corporate Services.

E. THAT consideration of the following be postponed to a future meeting of Council to allow staff to report back on outstanding issues raised this day:

THAT Council approve the Parking Corporation of Vancouver (VPC) 2000 Capital Budget, to be funded by off-street parking revenues collected by the VPC as follows:

i) THAT portions of the 2000 Capital Budget, totalling $600,000.00 as outlined in Table 4 in the Administrative Repot dated April 26, 2000, be conditionally approved, subject to the provision of further information satisfactory to the General Managers of Engineering and Corporate Services.

- CARRIED UNANIMOUSLY

(Mayor Owen not present for the vote)

NOTE FROM CLERK: Due to there being only six members present and approval of grants requires eight votes, the Committee referred the Council approval of the Committee's recommendations to the Council meeting immediately following the Standing Committee on Planning and Environment meeting in the afternoon of May 4, 2000.

The Committee adjourned at 12:52 p.m.

* * * * *

(c) 1998 City of Vancouver