CITY OF VANCOUVER REGULAR COUNCIL MEETING A Regular Meeting of the Council of the City of Vancouver was held on Thursday, September 14, 1995, at 11:45 a.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: Mayor Owen Councillors Bellamy, Chiavario, Clarke, Hemer, Ip, Kwan Puil and Sullivan ABSENT: Councillor Kennedy (Civic Business) Councillor Price CITY MANAGER'S OFFICE: Ken Dobell, City Manager CLERK TO THE COUNCIL: Tarja Tuominen COMMITTEE OF THE WHOLE MOVED by Cllr. Bellamy, SECONDED by Cllr. Puil, THAT this Council resolve itself into Committee of the Whole, Mayor Owen in the chair. - CARRIED UNANIMOUSLY COMMITTEE REPORTS Report of the Standing Committee on City Services and Budgets September 14, 1995 Council considered the recommendations of the Committee, as contained in the following clause of the attached report: Cl. 1: City of Vancouver Economic Development Task Force - Final Report .../2 COMMITTEE REPORTS (CONTINUED) Report of the Standing Committee on City Services and Budgets September 14, 1995 [Continued] City of Vancouver Economic Development Task Force - Final Report Clause 1 MOVED by Cllr. Puil, THAT the recommendations of the Committee, as contained in Clause 1 of this report, and quoted below, be approved. A. THAT the report of the Economic Development Task Force be received for information, and the Task Force members be thanked for their effort; FURTHER THAT the staff of the Economic Development Division be thanked for their forbearance while awaiting Council's decision. B1. THAT Council approve in principle the formation of an Economic Development Commission, as described in the Administrative Report dated April 11, 1995, under Option 3, which does not include a new Economic Development Department or the current Economic Development Office. B2. THAT Council fund the Commission with an annual grant with a May 1 to April 30 fiscal year, to be reviewed and set annually upon receiving an application and annual report of the activities of the Commission, and that Council approve an initial grant of $200,000 to the Commission for 1996, and a pro-rated amount based on the above for 1995. - LOST, NOT HAVING RECEIVED THE REQUIRED MAJORITY B3. THAT the Economic Development Task Force and staff report back within three weeks on the structure and reporting time- frame of the Interim Economic Development Commission; FURTHER THAT the Interim Economic Development Commission be expanded to include current Task Force members and representatives from a broad spectrum of interests. .../3 COMMITTEE REPORTS (CONTINUED) Report of the Standing Committee on City Services and Budgets September 14, 1995 [Continued] City of Vancouver Economic Development Task Force - Final Report (Continued) B4. THAT Council instruct the Interim Economic Develop-ment Commission, in consultation with the City Manager and other stakeholders, to report back on the proposed structure of the Economic Development Commission, including terms of reference, role, number of members, appointment of two liaison Councillors, protocol, objectives, reporting relationships, initial work plan, budget, and staffing measures, along with a list of potential candidates, representing a broad spectrum of interests, to serve on the Commission. B5. THAT the General Manager of Corporate Services be named as the senior staff liaison to the Economic Development Commission. C1. THAT Council approve the closure of the Economic Development Office effective October 31, 1995, and that union employees be issued appropriate lay-off notice. C2. THAT Council abolish the following union positions made redundant by closing the Economic Development Office: Position # 3379 Clerk Typist II (Vacant) Position # 3041 Clerk Steno III Position # 0241 Research Assistant Position # 3380 Economic Development Officer The position of Director of Economic Development will be eliminated after an appropriate transition period to be funded out of Budget Management transition funds. .../4 COMMITTEE REPORTS (CONTINUED) Report of the Standing Committee on City Services and Budgets September 14, 1995 [Continued] City of Vancouver Economic Development Task Force - Final Report (Continued) C3. THAT Council defer approval of the transfer of the BIA (Business Improvement Area) function, staff position #4373, and delegation hosting function, along with related funding ($83,300 in 1995), pending a report back from staff on appropriate location of the function. - CARRIED (Councillors Bellamy, Kwan and Sullivan opposed to B and C) RISE FROM COMMITTEE OF THE WHOLE MOVED by Cllr. Bellamy, THAT the Committee of the Whole rise and report. - CARRIED UNANIMOUSLY ADOPT REPORT OF THE COMMITTEE OF THE WHOLE MOVED by Cllr. Bellamy, SECONDED by Cllr. Puil, THAT the report of the Committee of the Whole be adopted. - CARRIED UNANIMOUSLY The Council adjourned at approximately 11:50 a.m. * * * * * REPORT TO COUNCIL STANDING COMMITTEE OF COUNCIL ON CITY SERVICES AND BUDGETS SEPTEMBER 14, 1995 A Regular Meeting of the Standing Committee of Council on City Services and Budgets was held on Thursday, September 14, 1995, at 9:30 a.m., in Committee Room No. 1, Third Floor, City Hall. PRESENT: Councillor Puil, Chair Mayor Owen Councillor Bellamy Councillor Chiavario Councillor Clarke Councillor Hemer Councillor Ip Councillor Kwan Councillor Price Councillor Sullivan ABSENT: Councillor Kennedy (Civic Business) Councillor Price CITY MANAGER'S OFFICE: Ken Dobell, City Manager CLERK: Tarja Tuominen Recorded Vote Unless otherwise indicated, votes of the Committee on all items are unanimous. Adoption of Minutes The Minutes of the Standing Committee on City Services & Budgets meetings of July 20 and 27, 1995, were adopted. RECOMMENDATION 1. City of Vancouver Economic Development Task Force - Final Report At its meeting on April 25, 1995, Vancouver City Council had before it an Administrative Report dated April 11, 1995 (on file), in which the General Manager of Corporate Services submitted the report of the Economic Development Task Force, dated February 1995, and provided four options for the Economic Development function and the City's role. Council received the report and requested it be widely distributed in the community and submitted to a future Standing Committee meeting once public input had been received. Accordingly, the Committee had before it the relevant Extract from Council's meeting of April 25, 1995, the Administrative Report dated April 11, 1995, and the Report of the Economic Development Task Force dated February 1995 (on file). Also before the Committee was a memorandum dated August 30, 1995, from Mr. Sid Fancy, Director of Economic Development (on file), submitting a fifth option to accommodate all the elements required for an effective Vancouver-specific economic development program and providing an annual saving of $92,000. Mr. Sam Kuzmick, Deputy Director of Finance, noted the options put forward in the April 11th Administrative Report required some changes in dates and funding amounts due to the length of time between the writing of the report and consideration at today's meeting. Mr. Sid Fancy, Director of Economic Development Office, was present to answer questions. Ms. Carol Railton, Cornerstone Academy, supported the options which included the retention of the Economic Development Office. Ms. Railton did not support private funding of the Economic Development function. It was important to have unbiased staff able to represent many sectors, assist new small business owners to develop contacts, provide opportunities globally, and provide information on process and protocol. Mr. Larry Cantrell, Staff member, Economic Development Office (brief on file), presented his view as a staff member of the Economic Development Commission office, and discussed the four options proposed in the Administrative Report. Mr. Cantrell proposed an alternate option for consideration: a) create a volunteer Commission from a variety of sectors as an economic development advisor, forum and early warning system, to undertake proactive activities, to monitor the economic progress of the City and to publish annual reports; and, Clause No. 1 Continued b) retain the existing Economic Development Office, relocate it to City Hall or nearby, have it report directly to a more senior level, and re-instate the teaming of the Economic Development Office with the Commission. Ms. Donalda Viaud, representing the V.M.R.E.U./CUPE Local 15, pointed out the Union wants to maintain the five workers in the Economic Development Office, but will support not filling the currently vacant Clerk Typist II position in order to save the other four positions. Moving the Economic Development Office to City Hall and not filling the Clerk Typist position will be a significant savings. The focus of the Task Force report tends to look at big business; small businesses are very important. An Economic Devel- opment Commission should have representation from organized labour, government, arts, and other interest groups. Mr. Shane Simpson suggested the recommendations in the Adminis- trative Report and the Task Force report were too narrow in scope. The composition of the Task Force is composed of larger business interests and government. The Task Force report contains a lot of anecdotal information but not strong evidence to support its view. The Economic Development Office obviously serves a function businesses can draw on, and is a small operation. The Economic Development Task Force composition is not broad enough and has too narrow a focus. Mr. Peter Fraser, President, Pacific Corridor Enterprise Council, supported the relocation of the Economic Development Office into City Hall, which would give the Office a higher profile. The City should be more open to partnerships with private enterprises. Mr. Raymond Kwong, President, Eidewa Enterprises Ltd. (letter filed), supported the continuation of the Economic Development Office. A continued partnership of the Economic Development Office with the private business community will help promote Vancouver in interna- tional trade. Ms. Audrey Martin, Mount Pleasant Commercial Improvement Society, represented over 200 small businesses. The Society has appreciated the support of the Economic Development Office. A less effective and efficient office would do irreparable harm to Vancouver. Ms. Martin supported retention of the Economic Develop-ment Office and the Commission. Clause No. 1 Continued Mr. Bruce Riddick, Chairperson, GVRD Economic Development Commit- tee, supported retention of the Economic Development Office. Businesses in Vancouver will suffer if the Office is closed. Local businesses receive advise on City regulations. City Departments rely on economic background in community planning and property matters. The Economic Development Office can provide an overall economic vision for the city. It should be given a new mandate and relocated to City Hall. In response to a question, Mr. Riddick advised the GVRD's Letters Patent do not provide for an economic development function. Mr. Phil Yacht, member, Robson Street Business Improvement Association, supported retaining the BIA position, which has been invaluable for the Association. Mr. Yacht expressed concern the Economic Development Task Force had only large business representa- tion. Mr. Bruce Campbell, Member, Economic Development Task Force, advised it was never intended to exclude small business representation from the Task Force. Of the 11 members, 3 were from small business. The option (Option 5) circulated by the Director of the Economic Development Office is different from that developed by the Task Force. The membership of the Economic Development Commission, as proposed by the Task Force report, will be strictly voluntary. In response to a question, Mr. Campbell felt designated Council liaison to the Commission would work well. Mr. Paul Daynes, Daynes & Associates, noted his company is a private sector trade and business development organization. Mr. Daynes supported Option 3 in the report. Visiting delegations could be handled by private firms providing a better business focus. He felt there were too many players in the economic development field within the province. During discussion, some Committee members supported Option 3 in the report, however suggested the proposed Economic Development Commission membership be expanded to include representation from a broader spectrum of interests, e.g., the labour sector, small business outside of the downtown core, the industrial sector. Appointment of two Councillor liaisons to the Commission would provide a more effec- tive link to Council. Other members felt the current Economic Development Office staff have proven the value of their work. Other Advisory Committees or Commissions do not have the same budget as that proposed for the Economic Development Commission. Clause No. 1 Continued The following motion by Councillor Clarke was put and CARRIED. The Committee, therefore, RECOMMENDED A. THAT the report of the Economic Development Task Force be received for information, and the Task Force members be thanked for their effort; FURTHER THAT the staff of the Economic Development Division be thanked for their forbearance while awaiting Council's decision. The following motions by Councillor Ip were put and CARRIED. The Committee, therefore, RECOMMENDED B1. THAT Council approve in principle the formation of an Economic Development Commission, as described in the Administrative Report dated April 11, 1995, under Option 3, which does not include a new Economic Development Department or the current Economic Development Office. B2. THAT Council fund the Commission with an annual grant with a May 1 to April 30 fiscal year, to be reviewed and set annually upon receiving an application and annual report of the activities of the Commission, and that Council approve an initial grant of $200,000 to the Commission for 1996, and a pro-rated amount based on the above for 1995. B3. THAT the Economic Development Task Force and staff report back within three weeks on the structure and reporting time-frame of the Interim Economic Development Commission; FURTHER THAT the Interim Economic Development Commission be expanded to include current Task Force members and representatives from a broad spectrum of interests. Clause No. 1 Continued B4. THAT Council instruct the Interim Economic Develop-ment Commission, in consultation with the City Manager and other stakeholders, to report back on the proposed structure of the Economic Development Commission, including terms of reference, role, number of members, appointment of two liaison Councillors, protocol, objectives, reporting relationships, initial work plan, budget, and staffing measures, along with a list of potential candidates, representing a broad spectrum of interests, to serve on the Commission. B5. THAT the General Manager of Corporate Services be named as the senior staff liaison to the Economic Development Commission. C1. THAT Council approve the closure of the Economic Development Office effective October 31, 1995, and that union employees be issued appropriate lay-off notice. C2. THAT Council abolish the following union positions made redundant by closing the Economic Development Office: Position # 3379 Clerk Typist II (Vacant) Position # 3041 Clerk Steno III Position # 0241 Research Assistant Position # 3380 Economic Development Officer The position of Director of Economic Development will be eliminated after an appropriate transition period to be funded out of Budget Management transition funds. C3. THAT Council defer approval of the transfer of the BIA (Business Improvement Area) function, staff position #4373, and delegation hosting function, along with related funding ($83,300 in 1995), pending a report back from staff on appropriate location of the function. (Councillors Bellamy, Kwan and Sullivan opposed) The meeting adjourned at approximately 11:45 a.m. * * * * *