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1992-01-13_Minutes 83-298 COMMON COUNCIL JANUARY 13, 1992 At a meeting of the Common Council, held at the City Hall in the City of Saint John, on Monday, the thirteenth day of January, AD., 1992, at 4:00 o'clock p.m. present Elsie E. Wayne, Mayor Councillors Coughlan, Davis, Fitzpatrick, Flewwelling, Gould, Knibb, Landers, Rogers, A Vincent and M. Vincent - and - Messrs. J. Brown, City Manager; F. Rodgers, City Solicitor; D. Wilson, Commissioner of Finance; C. Robichaud, Assistant City Manager - Operations; 1. Totten, Deputy Commissioner of Finance; J. C. MacKinnon, Commissioner of Environment and Infrastructure Services; P. Groody, Commissioner of Human Resources; S. Armstrong, Director of Engineering; S. Bedford, Director of Community Planning; W. D. Todd, Director of Housing and Property Management; S. Galbraith, Director of Supply and Services; W. Butler, Director of Water and Sewerage Services; D. O'Leary, Director of Economic Development; B. Morrison, Director of Parks; J. Johnson, Building Inspector; B. Belyea, Budget Officer; R. Murray, Senior Transportation Policy Advisor; D. Sherwood, Chief of Police; R. McDevitt, Fire Chief; Mrs. M. Munford, Common Clerk; and Ms. C. Joyce, Assistant Common Clerk. Her Worship the Mayor offered the opening prayer. On motion of Councillor Knibb Seconded by Councillor Rogers RESOLVED that minutes of the meeting of the Common Council, held on January 6, 1992, be approved. Question being taken, the motion was carried. The Mayor proclaimed January 18-25 to be Minor Hockey Week in the City of Saint John; and commented on the 1992 Christmas Tree Mulch sponsored by Keep Saint John Beautiful Inc. (Councillors Coughlan and M. Vincent entered the meeting.) The Mayor advised that, with Council's knowledge through a telephone call from the Common Clerk, she forwarded letters to Premier Frank McKenna and Provincial Education Minister Paul Duffy, concerning the Province's proposal to amalgamate the three French School Districts of Saint John, Fredericton and Moncton; and that she will apprise Council further following a meeting on January 15 in this regard. Councillor Knibb suggested that the Mayor's letter (copies of which were forwarded to Council members as an information item) in this regard should be added to the agenda of this meeting. On motion of Councillor Knibb Seconded by Councillor Flewwelling RESOLVED that the above- mentioned letter from Mayor Wayne be added to the agenda of this meeting and received and filed. Question being taken, the motion was carried. The Mayor asked that, as an emergency situation exists in that the Saint John Board of Police Commissioners does not have a quorum, Council consider at this meeting a Nominating Committee recommendation for the re-appointment of Wendell MacKay to the Board, and also asked that a notice from the Liquor Licensing Board 83-299 COMMON COUNCIL JANUARY 13, 1992 (copies of which were distributed to Council members at this meeting) concerning premises at 125 Prince William Street, be added to the agenda of this meeting. On motion of Councillor Knibb Seconded by Councillor M. Vincent RESOLVED that the above- mentioned items be added to the agenda for consideration at this meeting. Question being taken, the motion was carried. The Winter Fest activities at Rockwood Park on January 10 and 11 were noted and the Mayor concurred with Councillor M. Vincent's suggestion that the City Manager should follow up in this regard in an attempt to determine if the event can be strengthened for next year. On motion of Councillor Coughlan Seconded by Councillor Rogers RESOLVED that the City Manager's report (which was on the Committee of the Whole agenda of this date), concerning procedures and controls, be added to the agenda for consideration at this meeting. The Mayor questioned the propriety of considering the above report in open session of Council, and Mr. Rodgers suggested that the author should be asked if, in preparing the report, it was with the intention of it being discussed in Committee of the Whole. Mr. Brown advised that, while the report was prepared for consideration in closed session and while he still supports that it be considered as intended, Council could, subject to clarification by the City Solicitor that the item could be dealt with in open session, add it to the agenda. Mr. Rodgers advised that he has no reason to advise Council to keep the report private; however, the Procedure By-Law requires an eight-vote majority of Council to add the item to the agenda. In response to Deputy Mayor Gould's suggestion that, if the report does not involve personalities or the legal position of the City, there is no reason whatever for the report to be considered in Committee of the Whole and Mr. Brown's referral of the City Solicitor to page two of the report, Mr. Rodgers explained that he could comment on the legal aspect, not personnel which is more of a policy matter, and expressed the opinion that there is nothing in the report that would prejudice the City by the report being made public. Question being taken, the motion was carried. On motion of Councillor Fitzpatrick Seconded by Councillor Flewwelling RESOLVED that the copy of a background paper and invitation from Imperial Oil Limited concerning the open house with regard to the Broadview Avenue pipeline (copies of which were distributed to Council members at this meeting) be added to the agenda for consideration at this meeting. Question being taken, the motion was carried. Read a letter from Councillor Rogers referring to the Mayor's indication, on January 6, that there was a number of spending irregularities at City Hall; and asking that the Mayor present to Council these irregularities and that a report then be developed by the Commissioner of Finance, the Deputy Commissioner of Finance, and the auditors, and that they appear before Council to indicate what irregularities are in the system and what additional checks and balances need to be implemented. Councillor Rogers explained that the reason for the above letter results from her concern that the citizens of Saint John were left with the impression that there were a great many irregularities within the system, although these irregularities were not brought to light; and suggested that, based on the City Manager's report on procedures and controls, it appears that staff also is of the opinion that an explanation had to be given to the public. 83-300 COMMON COUNCIL JANUARY 13, 1992 During debate on the manner in which the subject of irregularities had been initiated, Councillor Flewwelling rose on a point of order on the basis that his straight-forward letter to Council on January 6 asking for information on monthly expenditures, received a response which he had not anticipated thereby leading to an argument, rather than a debate. The Mayor advised that, although she had prepared an item for the agenda to explain the situation, discussion with Messrs. Brown, Wilson and Totten led to her removal of the item from the agenda based on their opinion that, as the situation had been explained, it would be in order to move on with more important issues; and, having stated her intent to now read her report verbatim, read from a prepared report referring to Councillor Flewwelling's request of January 6 for more information with regard to monthly payments similar to the system which was in place a few years ago, with the Commissioner of Finance's response being that he was making arrangements to have this request met and that, in February, the computer would be programmed to give the information to Council; also referring to her affirmative response to the press, when asked if in her opinion there had been any spending irregularities other than on birthday cakes which was alluded to during the January 6 discussion; and explaining that the issue has nothing to do with birthday cakes but about consultants being hired by departments to look at employee morale and, in turn, recommending birthday cakes, and that her concern is about who has the right to hire consultants, on the basis of a report from the City Solicitor to Council, dated August 16, 1991, expressing the opinion that staff, since 1983, had been misinterpreting the policy dealing with consultants. The Mayor referred to a report from the City Manager to Council, dated August 29, 1991, dealing with an amount of $11,500 for a company which has subsequently invoiced the City; and she read from a report from the City Manager, dated December 4, 1991, in which it was admitted that the policy for hiring professional services has been misinterpreted according to the City Solicitor. The Mayor, having noting that Council is awaiting the City Manager's recommendation in this regard and stating that she has no doubt in her mind that the hiring of these consultants over the years was felt by the directors to be in the best interest of the City and not for their personal gain, expressed the opinion that the policy should be referred to the City Solicitor, the Commissioner of Finance and the City Manager for revision and a report to Council. On motion of Councillor Flewwelling Seconded by Councillor Knibb RESOLVED that the above letter from Councillor Rogers be received and filed. Councillor Fitzpatrick asked if any staff member has discretionary power to hire a consultant in case of an emergency and, if so, is there any limit on the hiring, to which Mr. Rodgers expressed the opinion that, as the policy currently exists, there is some discretion for staff to exercise in the area of architectural and engineering services of a local nature; however, on the larger question with respect to consultants generally, Council is in receipt of his previous opinion that caused him to resolve the doubt in favour that the authority is still with the Council and that has not changed and, if there is an emergency, staff will have to use its discretion and explain to Council after the fact or ask for a special meeting. In response to Councillor Landers' query about what would constitute an emergency, Mr. Robichaud advised that the definition generally used is one that involves public safety, such as if a person's life or property were in danger; and Mr. Wilson made the observation that, since August 1989 from his point of view, there is no authority to pay consultants unless approved by Council; therefore, in due course, an invoice may be submitted in a case that discretion has been used in the case of an emergency on the basis that he does not have the authority to pay such bills until approved by Council. Question being taken, the motion was carried. On motion of Councillor Fitzpatrick Seconded by Councillor Rogers RESOLVED that the City Manager and staff be instructed to submit a proposal with regard to the hiring of professional services for Council's approval or rejection as soon as possible. 83-301 COMMON COUNCIL JANUARY 13, 1992 Question being taken, the motion was carried. Consideration was given to a report from the City Manager providing facts on a number of matters that have either been mentioned or implied during the last few days so that Council could be aware of staff's position on the following topics: (1) the possible implication that staff may be withholding information from Council by not making a report available to Council in the same form that existed some five years ago; (2) that there existed a considerable number of irregularities under the former City Manager; and (3) that there are a considerable number of irregularities occurring, such as the purchase of birthday cakes and the engagement of consultants. The report advises that, insomuch as these specific concerns have been raised and other comments have been made with respect to inadequacies of the City's system, the administration believes that it is an appropriate time for Council to set aside a specific day to become fully informed as to just what procedures and controls are in place and, if Council is agreeable, staff would arrange for a teach-in which would cover the following topics: (A) existing Council policies with respect to: (1) the payment of invoices, (2) travel expenditures and (3) spending authorities; (B) administrative procedures in place to ensure that: (1) all purchases of goods and services are properly authorized; (2) an adequate separation of duties exists such that persons ordering goods are not also in a position to record the receipt of those goods; and (3) upon presentation for payment, evidence must exist that the requisition was properly authorized, a purchase order properly executed, that the goods were received, and that the calculations and prices on the invoices are as agreed; (C) procedures that are carried out by Finance staff when processing documents and the review that is made when cheques are being signed; (D) the information that is available on the computer terminals; and (E) areas where problems do occur and what subsequent action is taken. The report concludes that it is considered important that Council be aware that (1) there does exist a system of controls, checks and balances that are designed to ensure that Council policies are followed as well as to ensure that irregularities are highlighted and investigated; (2) while controls and procedures are in place, the administration and Council must always be cognizant of the fact that no system will ever fully preclude the possibility that inappropriate practices might occur or that questionable decisions may be made; (3) while payments are processed only after ensuring that proper procedures were followed, Council should be aware that in any large organization there is going to be a certain amount of discretionary spending and, while such spending will appear appropriate to some, it may appear inappropriate to others, and that, in spending taxpayers' money, the City must always ensure that there is a reasonable argument for the discretionary spending and, if not, the bills would not be paid; and (4) as the City operates a business 24 hours a day, 365 days a year and is involved in the provision of a wide range of services, emergencies do occur and deadlines must be met and, as such, systems must have some degree of flexibility so as to ensure that the provision of these services go on uninterrupted and the City's business can continue. Mr. Wilson commented on the above report during which time he responded to Council queries with respect to discretionary spending from the point of view of the policies in place which provide for different levels of discretionary spending to senior City employees in that department heads have a limit up to $3,500 and the City Manager has a limit of $12,500; and the number of credit cards issued to City employees and the time expended reviewing the statements in that approximately eight credit cards are carried by senior City staff who do a fair amount of travelling, with the use of and expenditures related to the use of the credit cards reviewed on the same basis as for the authorities that individuals have to requisition; in other words, if the employees have discretionary spending to purchase goods or services within the Council policy, such would be interpreted in the same light whether it was a requisition or a credit card. The Mayor suggested that the City Manager, the City Solicitor and the Commissioner should be requested to submit a report to Council on a policy with respect to the use of credit cards, including gasoline purchases. (Councillor M. Vincent withdrew from the meeting during the above discussion.) 83-302 COMMON COUNCIL JANUARY 13, 1992 On motion of Councillor Knibb Seconded by Councillor Davis RESOLVED that the above report from the City Manager be received and filed. (Councillor M. Vincent re-entered the meeting.) Question being taken, the motion was carried. On motion of Councillor Flewwelling Seconded by Councillor Fitzpatrick RESOLVED that the letter from Imperial Oil Limited submitting a copy of a background paper and invitation to its open house, which was delivered to residents of Broadview Avenue, concerning the proposed Esso pipeline -- be received and filed. Question being taken, the motion was carried. On motion of Councillor Knibb Seconded by Councillor M. Vincent RESOLVED that as recommended by the City Manager, authority be granted for payment of the following construction progress certificate, namely:- 1. Contract 91-3 - CoburQ Street Reconstruction Galbraith Construction Ltd. Original estimated value of contract Total work done, Estimate Number 3 Retention Payments previously approved Sub-Total G.ST Component Sum recommended for payment, Progress Estimate Number 3, dated January 6, 1992 Final holdback release $224,654.50 223,470.86 Nil 177,835.89 45,634.97 2,985.47 $ 45,634.97 Question being taken, the motion was carried. On motion of Councillor Coughlan Seconded by Councillor M. Vincent RESOLVED that as recommended by the City Manager, a sum of money, certificate of deposit, letter of credit, or guarantee in the amount of $67,000 be accepted as security from Standard Paving Maritime Limited to ensure the rehabilitation of the gravel pit at 913 Latimore Lake Road. Question being taken, the motion was carried. On motion of Councillor Gould Seconded by Councillor Coughlan RESOLVED that the report from the City Manager advising the status of the Special Events Budget of $25,000, which was questioned by Council on December 16,1991, to which a final charge of $18,995.26 was made for the New Brunswick Speed Skating Championships in conjunction with the Canada Cup, and a final charge of $3,849.26 was made relative to the Moosehead Skate to Care '91; and noting that this Budget was originally established in 1989 to cover those requests made of Council to provide support services to special events being held, with the intent being to ensure that the City was able to determine its costs with respect to this sort of support and that departmental budgets were not being required to absorb expenditures to such an extent that other budgeted programs were 83-303 COMMON COUNCIL JANUARY 13, 1992 being jeopardized -- be received and filed. Question being taken, the motion was carried. Consideration was given to a report from the City Manager advising that two major categories of projects will be eligible for funding under the Environmental Partners Fund, which is a five-year $50-million program that encourages partnerships between local groups and the Federal Government, namely:- (1) clean-ups that restore and conserve; and (2) projects that support waste recycling and waste reduction; also advising that, as indications are that very few applications have been received from Southwestern New Brunswick which might be attributed to a lack of low promotion, City staff has been meeting with a view to providing a public forum to promote this Fund and to create a renewed interest and a stimulation of initiatives in local projects; and submitting a copy of a form letter which is being mailed out as an invitation to a February 6 public information session on the Environmental Partners Fund. Mr. MacKinnon explained that, while the above Program has been available to communities in this area for the past two years, few applications have been received from the southern part of the Province, and, in order to promote the Fund locally and in an attempt to generate a new enthusiasm about projects, the February 6 public meeting is planned for the Fundy Region. On motion of Councillor M. Vincent Seconded by Councillor Landers RESOLVED that the above report from the City Manager be received and filed. (Councillor Landers withdrew from the meeting.) Question being taken, the motion was carried. On motion of Councillor Knibb Seconded by Councillor Coughlan RESOLVED that the report from the City Manager regarding an incident of carbon monoxide exposure on January 6 at the Simonds Arena, which was caused by a malfunctioning carburetor on the ice machine; explaining the steps taken to date in this regard, with which the Medical Health Officer is satisfied; and advising that this ice resurfacing machine, which is the oldest in the fleet, will be replaced in 1992 and funded from the equipment replacement fund -- be received and filed. (Councillor Landers re-entered the meeting.) Question being taken, the motion was carried. On motion of Councillor Knibb Seconded by Councillor Coughlan RESOLVED that the report from the City Manager advising that it is expected that fluoridation of the Loch Lomond water supply will commence within the next few weeks and that a notice, as submitted, has been prepared for insertion in the weekly City advertisement to advise citizens accordingly; also advising that, further to a request at a previous Council meeting for staff to comment on the effect fluoridation of the public water supply will have on the fluoride mouthwash program in local schools, as indicated in the submitted copy of correspondence from Dr. John C. Blackmer, Senior Dental Consultant with the Provincial Department of Health and Community Services, fluoridation of the water supply will compliment the current school mouth rinse program and that, in cooperation with School District #20, information will be provided to parents of children who participate in the rinse program; and concluding that the Water and Sewerage Department will notify Health and Community Services upon commencement of fluoridation in order that local dental and medical societies can be notified -- be received and filed. 83-304 COMMON COUNCIL JANUARY 13, 1992 Question being taken, the motion was carried. On motion of Councillor M. Vincent Seconded by Councillor Knibb RESOLVED that the report from the City Manager submitting a list representing all monies paid pursuant to the approval given to the Commissioner of Finance on December 30, 1991; and advising that, in addition to the funds paid out, 47 purchase orders, totalling $41,894.34, were issued during the same period -- be received and filed. Question being taken, the motion was carried. Consideration was given to a report from the City Manager submitting the 1992 Operating and Capital Budgets, along with spending targets for the ensuing four-year period for the General Fund of the City of Saint John; advising that the City has been able to sustain its stated objective of maintaining a stable tax rate as the 1992 tax rate of $1.58 per hundred dollars of assessed value represents no change since 1990, and that the impact of the effects of the current economic environment on the City's finances can be clearly identified as follows:- (1) the amount of funding received by the City by way of the Provincial unconditional grant in 1992 will be $29,270,014, which is $647,406 less than was received in 1991; and (2) the tax base on which taxes are levied amounts to $3,396,767,350, which is only 2% greater than that which existed a year ago and, had the increase in the City's tax base at least equalled the anticipated growth rate of 5%, the City would have received a further $1,582,433 with which to provide services to the public; and also advising that the combined shortfall of $2,229,839 represents a serious budget constraint which has resulted in making this year's budget preparation process a most difficult task. The report further advises that the 1992 Operating Budget was prepared on the following basis: (1) all departmental budget requests were not to exceed that which was approved in 1991; and (2) all commissions and organizations requesting funding from the City were advised of the guidelines under which the budget was being prepared, and that the premises on which decisions have been made are as follows:- (1) the goal of a stable tax rate is of the highest priority; (2) the City's most valuable resource, its permanent employees, must be fully acknowledged; (3) emphasis must be on basic services, i.e. roads, streets, police and fire; and (4) the objective is to find long-term solutions as opposed to any possible "quick-fix" solutions; comments on the proposed 1992 Operating Budget in that gross expenditures are budgeted to the amount of $90,902,272, an increase of less than one-half of one per cent over the previous year, with non-tax revenue projected at $7,963,334, which is slightly less than in 1991, leaving a net budget of $82,938,938, which is .5% greater than 1991, and, with the unconditional grant of $29,270,014 deducted from it, the amount that must be raised from the City's taxpayers is $53,668,924, thereby necessitating a tax rate of $1.58 per hundred dollars of assessment from the City's tax base of $3,396,767,350; explains that, of the $90,902,272 gross operating expenditures, $65,319,586 is considered as departmental controllable expenditures on which the City Manager and the rest of the administration can exert considerable pressure and influence and that these expenditures increased by less than one-half of one percent; a further $5,494,190 is classified as non-departmental controllable expenditures, which includes all of the various requests made directly of Common Council, including the Trade and Convention Centre, the Canada Games Aquatic Centre, The Market Square Corporation, the Library, Cherry Brook Zoo, Aitken Bicentennial Centre and a host of other such requests, and the proposed budget contemplates a slight decrease in the total funds provided to these types of organizations; and the balance of $20,028,496 is considered as expenses which are relatively fixed by agreement and, in total, budgeted to increase by 1.7%, with the most significant increase being in fiscal charges which are budgeted at $13,249,296, up 4.3% over 1991, which is offset with reductions in the budgeted expenses for the space the City occupies in City Hall, as well as in the City's commitment toward operating expenses of the Market Square complex; and also explains that, while significant increases are not contemplated in funding to the various boards, commissions and other organizations, two notable exceptions are an increase in funding to the Aquatic Centre, bringing the total funding to $800,000 in 1992, and the inclusion in the 1992 budget of $250,000 to fund the start-up operations of the Saint John Regional Exhibition Centre as, during the year, it is anticipated that key employees will have to be hired so that plans can commence for an opening, tentatively set for the fall of 1993. The report also comments on changes to be made in the 83-305 COMMON COUNCIL JANUARY 13, 1992 methods of service delivery, as well as reductions in programs in response to the present challenge, including reductions in the City's maintenance programs normally funded in the operating budget as a result of the increased transportation capital program in the last couple of years; a reduction in the transportation budget of $300,000 to reflect the fact that the administration is of the belief that there are more economical means of ensuring the carrying out of such services as grass cutting, manhole raising and, most significantly, the asphalt maintenance programs, than by utilizing City forces, equipment and machinery, and such changes will result in a smaller non-permanent work force in 1992; the number of District Fire Chiefs is to be reduced from eight to five through attrition and a tanker at Station #8 is to be put out of service, the latter decision being possible because new apparatus, stationed at this location, now ensures the availability of an adequate supply of water to meet the demand should it ever occur, which will result in the City not requiring a driver available 24 hours a day, 365 days a year, which equates to four positions, although full savings will not be realized until all positions become vacant through attrition; a reduction in the Recreation Department's budget of $46,000 which will effect a number of individual programs with the only noticeable service reduction being in lifeguard coverage at Tucker Park beach in 1992; a decision to leave the position of Assistant Plumbing Inspector unfunded this year in view of a reduction in construction activity projected in 1992; a reduction in the City's involvement, through the Saint John Harbour Development Commission, in promoting the Port as a result of a lead role now being played by the Saint John Port Corporation, with funding to the Commission having been reduced to $77,950, with $10,000 provided to continue the annual Port Days event; a reduction of $314,000 in the Engineering Department's original budget submission through a decrease in engineering costs incurred by the General Operating Fund related to work performed on behalf of the Water and Sewerage Utility, along with the deletion of a draftsman position; and additional funding provided the Police Commission for the purpose of instituting a community policing program. With regard to the proposed 1992 Capital Budget, for which the starting point of its preparation was a review of the second year of the five-year spending plan provided to Council in March of 1991, the report, in recommending a 1992 Capital Budget of $19,760,000 along with spending targets for the various programs over the following four-year period, explains that, while this is the first time that Council has made public its financial spending targets beyond the ensuing year, the disclosure of these targets should not be interpreted as ensuring that programs will continue at stipulated levels but, rather, they must be seen as the best estimate available today of anticipated expenditures in the future and, as more information becomes available and priorities and circumstances change, these estimates will be increased and decreased as required and, as each new year is approached, staff must refine the next year's estimates and seek Council's approval before any spending can occur; advises that the 1992 Capital Budget anticipates an expenditure of $3,370,000 in the Transportation Program of which $1,075,000 will be expended on the Asphalt Program, $710,000 on continuing the concrete-curbing and $615,000 on street reconstruction, with the balance to be expended on chipsealing, sidewalks and the private roads program, a list of specific projects to be completed within these budget envelopes and provided to Council prior to the start of the construction season; also advises that, while the specific piece of work to be completed in 1992 cannot be identified until an assessment of repairs at the Causeway has been completed, with regard to the $200,000 allocated toward solving the flooding problems in the Glen Falls area, the City's five-year target in this area amounts to $1,400,000; and, with regard to the commitment to expend a further $600,000 on the site restoration at the Spruce Lake landfill site, the City's total commitment to this project amounts to $3.4 million over the next five years; and further advises that funds are also being committed to complete the tunnel between Brunswick Square and the City Market and the related work on Germain Street in 1992 and, in addition, a further $1,200,000 expenditure is anticipated in 1993 for the completion of the Germain Street Pavilion which will complete the enclosed connection between the City Market and Brunswick Square, although this particular project had not formally been included in the City's estimates prior to this point, and that, of particular significance to Parks and Recreation facilities, will be the continuation of the Rockwood Park Master Plan to the extent of $400,000 annually, the completion of the Millidgeville Community Centre in 1992 at an estimated cost of $775,000 and the construction of two new fire stations at an estimated cost of $3,100,000; and further that programs also exist to ensure that the Saint John Transit Commission is able to properly plan for the replacement of its buses, that the City is able to enhance its automated systems, and the 1992 Capital Budget and further four-year spending targets also include the City's 83-306 COMMON COUNCIL JANUARY 13, 1992 total known unfinanced commitment to the Regional Exhibition Centre of $9,037,000. The report explains five factors that the administration is committed to pursuing in 1992 and 1993, particularly in view of the realization that funding from the Province would actually decrease; and recommends that Common Council adopt the submitted resolutions relative to the 1992 Operating and Capital Budgets - General Fund. On motion of Councillor Knibb Seconded by Councillor Coughlan RESOLVED that the amount of $90,902,272 be adopted as the estimate required for the operation of The City of Saint John for the year 1992 as follows:- General Government Protective Services Transportation Services Environmental Health Services Environmental Development Services Recreation & Cultural Services Fiscal Services $ 7,013,855 31,316,752 21,291,607 1,813,780 7,543,357 8,673,704 13.249.216 $90,902.272 - a more detailed breakdown of the above estimate is attached and forms a part of these minutes. During discussion Councillor Flewwelling expressed opposition to the proposed budgets on the basis that it proposes a reduction in services, not re-hiring seasonal employees, reducing the Fire Department by three district chiefs, one tanker and four firefighters, reducing the Harbour Development Commission budget by some 60% at a time when competition from the Port of Halifax has increased, reducing the budget for community policing, reducing spending on infrastructure by 47%, and reducing engineering services by 31.7%; yet the budget contemplates operational expenses related to the Saint John Regional Exhibition Centre and work in Rockwood Park, both of which could be delayed, and suggested that the budgets should be tabled so that consideration could be given to reductions, other than those proposed, which could cause less problems in the operation of the City. Mr. Robichaud clarified that, with regard to a proposed smaller non-permanent work force in 1992, rather than not re-hire long-term seasonal employees, it is the intent to not re-hire the 20 to 30 students the City would normally hire during the summer and that it is anticipated that every casual and long-term seasonal employee to be rehired. Chief Sherwood expressed the opinion that, while in order to maintain a top quality service, some phases of the community policing program may be delayed a month or so, the quality of the program will not suffer; and Chief McDevitt confirmed that he has no concern about the loss of the tanker in that two years ago the Department put in place a tanker with four times the amount of water than the previous pumper had carried, and that the service level is not being lowered. Councillor A. Vincent expressed opposition to the proposed budgets because of the proposed reductions in the Fire Department. Question being taken, the motion was carried with Councillors Flewwelling and A. Vincent voting "nay". On motion of Councillor Knibb Seconded by Councillor Rogers RESOLVED that the amount of $7,963,334 be adopted as the estimate for Non-Tax Revenue for the year 1992, a more detailed breakdown of this estimate is attached and forms a part of these minutes. Question being taken, the motion was carried. On motion of Councillor Knibb Seconded by Councillor Coughlan RESOLVED that the Provincial 83-307 COMMON COUNCIL JANUARY 13, 1992 Unconditional Grant of $29,270,014 be incorporated in the 1992 budget. Question being taken, the motion was carried. On motion of Councillor Knibb Seconded by Councillor Flewwelling RESOLVED that the estimate required to be raised by levy on real property assessment liable to taxation under the Assessment Act within the City of Saint John for the year 1992 be adopted in the amount of $53,668,924. Question being taken, the motion was carried. On motion of Councillor Knibb Seconded by Councillor Coughlan RESOLVED that the rate at which the amounts comprising the above estimates is to be levied be fixed at $1.58 on each $100 valuation of all such real property liable to taxation under the Assessment Act within the Municipality of The City of Saint John. Question being taken, the motion was carried. On motion of Councillor Knibb Seconded by Councillor Fitzpatrick RESOLVED that the amount of $19,760,000 be adopted as the estimate of the Capital Programs to be undertaken by The City of Saint John in the year 1992, a more detailed breakdown of this estimates is attached and forms a part of these minutes. Question being taken, the motion was carried with Councillors Flewwelling and A. Vincent voting "nay". On motion of Councillor Knibb Seconded by Councillor Rogers RESOLVED that the amount of $43,574,000 be adopted as the estimate of the Capital Programs to be undertaken by The City of Saint John for the years 1993 to 1996, a more detailed breakdown of this estimate is attached and forms a part of these minutes. Question being taken, the motion was carried with Councillors Flewwelling and A. Vincent voting "nay". (Councillor M. Vincent withdrew from the meeting.) Consideration was given to a report from the City Manager submitting the proposed 1992 Operating Budget, Capital Budget, as well as the four-year spending targets for the Water and Sewerage Utility; and advising that, with regard to the accumulated deficit as of December 31, 1990 of $1,060,667 which cannot go unfunded in accordance with the Municipalities Act, staff had the option of recommending either charging the entire amount as an expenditure item in 1992 and raising the rates to cover this amount as well as other necessary operating expenditures, or spreading the recovery of the deficit over a three-year period commencing in 1992, and that staff is recommending the latter approach in light of current economic conditions and the fact that this must be done is accounting for 3% of the required rate increase in 1992; also advising that, to fund the necessary operating expenditures, fiscal charges and one-third of the 1990 accumulated deficit, total revenue of the Utility must be $17,338,022, of which $11,387,375 must come from the customers of the Utility, in order that the necessary operating expenditures, fiscal charges and one-third of the 1990 accumulated deficit are funded; therefore, actual billings for 1991 must be increased, assuming there are no changes in the amount of water consumed; and that, of the remaining $5,950,647 revenue required by the Utility, 83-308 COMMON COUNCIL JANUARY 13, 1992 $2,247,193 is budgeted for Fire Protection and $2,971,059 for Storm Sewer Charges, both of these revenue sources being charges to the City's General Operating Fund, and a further $689,870 is budgeted to received from the Province of New Brunswick, with the balance anticipated from miscellaneous sources. The report also advises that the budget is based on increasing the flat rate for water and sewerage services to a single-family unit from $284 to $306 per year, or from $71 per quarter to $76.50 per quarter, with a continuation of the incentive program for early payment contemplated allowing for citizens to choose to pay $260 per unit prior to March 31, 1992 for the entire year, representing a reduced fee of $46 per unit; and, with regard to metered customers, the budget is based on a seven per cent increase on all consumption block rates, but does not propose any changes to the bi-monthly service charges, and that, while the decision not to apply the percentage increase to service charges will cost the Utility approximately $37,000 in 1992, a customer with a 5/8" meter receiving both water and sewer services is now paying $150.48 in service charges regardless of whether or not any water is consumed and, before these charges are increased, further analysis of the Utility's cost allocations must be carried out in conjunction with a proposed rate study which, once completed, could substantiate changes to the service charges based on much more detailed analysis than currently available; and, concerning contract customers, the budget is based on a settlement being reached with existing contract customers that would result in these customers paying rates for potable water equal to other industrial users with similar consumption patterns at less than 27 million gallons per month. The report explains that fluoridation of the Loch Lomond water supply, which did not occur in 1991 as proposed because of a number of circumstances, will occur in 1992, for which approximately $120,000 has been included in the proposed budget, and that funds went unspent in 1991 for the water and sewer rate study, which was not began in 1991 because of drawn out negotiations with contract customers as well as the substantial accumulated deficit, and that unspent funds for these two projects will be applied to reduce the accumulated deficit and thereby assist in bringing the Utility to an accumulated break-even position sooner than otherwise would have been possible; and also explains that the total operating expenses of the Utility are budgeted as $10,343,771, or 3.9% greater than those which were proposed for 1991, a significant portion of this increase resulting from a more proper allocation of engineering costs between the Utility and the General Fund, and that these costs to the Utility have been budgeted to increase by $274,000 in 1992 to better reflect on which projects the time and effort of the City's Engineering staff is actually being expended, and provision has also been made for some increases in electrical and vehicle operating costs which are so necessary for the operation of the Utility. The report further advises that fiscal charges are budgeted as $6,640,696 compared to $6,363,885 in 1991 (excluding capital projects financed from operations), with this increase of 4% being the result of the increased capital programs which have occurred in the last two years and, as bonds issued some 10 or 15 years ago are maturing, they are being replaced by larger issues and hence fiscal charges are increasing; notes that the proposed 1992 Capital Budget is essentially the same as was presented to Council in March of 1991 when staff tabled the spending estimates for 1991 to 1995, although, while staff has concluded that the 1992 and 1993 estimates are still appropriate, the results of the Harbour Wastewater Quality and Wastewater Treatment Study, as well as the completion of a settlement with the Utility's contract customers, are being awaited as for 1994 and beyond; concludes that, as is the case with the General Fund, this is the first time that Council is being asked to approve a program-based capital budget, along with spending targets for the ensuing four-year period; and recommends adoption of the submitted resolutions. On motion of Councillor Knibb Seconded by Councillor Rogers RESOLVED that the estimate of expenses for the Water and Sewerage Utility for the year 1992 in the amount of $16,984,467 be approved, a more detailed breakdown of the said estimate is attached and forms a part of these minutes. (Councillor M. Vincent re-entered the meeting.) Question being taken, the motion was carried. On motion of Councillor Knibb 83-309 COMMON COUNCIL JANUARY 13, 1992 Seconded by Councillor Fitzpatrick RESOLVED that the by-law entitled, "A By-Law To Amend A By-Law Respecting Water & Sewerage", be read a first time. Question being taken, the motion was carried. Read a first time the by-law entitled, "A By-Law To Amend A By-Law Respecting Water & Sewerage". On motion of Councillor Knibb Seconded by Councillor Davis RESOLVED that the by-law entitled, "A By- Law To Amend A By-Law Respecting Water & Sewerage", be read a second time. Question being taken, the motion was carried. Read a second time the by-law entitled, "A By-Law To Amend A By-Law Respecting Water & Sewerage". On motion of Councillor Knibb Seconded by Councillor Flewwelling RESOLVED that the Capital Budget for the Water & Sewerage Utility for the year 1992 in the amount of $5,532,000 be approved. Question being taken, the motion was carried. On motion of Councillor Fitzpatrick Seconded by Councillor Coughlan RESOLVED that the spending targets for the years 1993 to 1996, totalling $22,415,000, be adopted. Question being taken, the motion was carried. On motion of Councillor Fitzpatrick Seconded by Councillor Gould RESOLVED that as recommended by the City Manager, the Commissioner of Finance be given authority to disburse funds, the timing of which to be at his discretion, to the following organizations:- SPECIFIED GRANTS Victorian Order of Nurses Seafarer's Mission Salvation Army Family Services Saint John Human Development Council Volunteer Centre Saint John Learning Exchange N.B. Museum YMIYWCA Saint John Boys & Girls Club N.B. Historical Society Symphony New Brunswick Fundy Region Development Commission Saint John Sports Hall of Fame Senior Citizens Transit Subsidy Non-Profit Organizations/Rental Subsidies Senior Citizens - Rental Subsidy Senior Citizens Home - Tax Subsidy Festival By The Sea $ 2,400 2,400 1,600 9,600 43,590 3,200 5,000 25,020 31 ,500 91,500 1,000 10,000 8,000 50,000 39,600 9,500 27,000 75,000 83-310 COMMON COUNCIL JANUARY 13, 1992 Cherry Brook Zoo Animal Rescue League Aitken Bicentennial Exhibition Centre Horticultural Association Loyalist Days Inc. Saint John Swim Club Saint John Diving Club Saint John River Boat Classic IWK Children's Hospital 135,000 170,000 220,000 85,000 50,000 6,500 3,500 500 5,000 ESTIMATED OPERATING DEFICITS Lord Beaverbrook Rink Saint John Free Public Library Saint John Transit Commission The Market Square Corporation Saint John Trade & Convention Centre Canada Games Aquatic Centre Saint John Ambulance Service $ 113,528 264,059 1,896,276 60,900 331,833 800,000 218,000 Question being taken, the motion was carried. Read a report from the City Manager advising that included in the 1992 Operating Budget is an amount of $218,000 representing the estimated deficit of the City's ambulance service which is based on the service incurring operating costs of $700,000 offset by revenue of $482,000 received from users of the service and that, in order for these projections to become reality, it is necessary that Council approve a rate increase to become effective immediately; and recommending that Council approve the submitted rate structure for ambulance service. On motion of Councillor Knibb Seconded by Councillor Rogers RESOLVED that as recommended by the City Manager, Common Council approve the following rate structure for the ambulance service: calls within City limits - $85; calls outside City limits - $85 + $1.24/km; and interhospital transfers - $85. Councillor Fitzpatrick made the observation that, as the charge per kilometer for calls outside the City limits has not increased, the percentage increase to residents of the City is greater than that to users from outside the City, and expressed the opinion that Saint John taxpayers' money should not be used to subsidize in this manner. Mr. Totten explained that, while outside residents are being charged a mileage charge, a portion of the City's deficit on the ambulance service also flows through to them by way of a bill to their municipalities; therefore, as the City's deficit increases, the outlying areas will be invoiced more, meaning that they will pay an increased amount through their own property tax. Councillor A. Vincent proposed a tabling motion, which was not seconded, so that Council can be provided with information on the number of calls paid by insurance companies, and Mr. Wilson advised that he would request information in this regard from the Saint John Regional Hospital. Question being taken, the motion was carried. On motion of Councillor Knibb Seconded by Councillor Rogers RESOLVED that as recommended by the City Manager, authority be granted for payment of the submitted invoice, in the amount of $16,978, for 1992 membership dues in the Cities of New Brunswick Association. Question being taken, the motion was carried. On motion of Councillor Knibb Seconded by Councillor Fitzpatrick 83-311 COMMON COUNCIL JANUARY 13, 1992 RESOLVED that the report from the City Solicitor referring to the public hearing of January 6 for the proposed re-zoning of a triangular parcel of land located to the rear of 520-550 Somerset Street at which Council requested an opinion on what effect future amendments to the uses of the existing adjacent property have on the property presently being re-zoned; and expressing the opinion that, if the parcel of land is re-zoned and consolidated with one or the other or both of the adjacent properties, the permitted uses would be the same for the entire parcel and any future amendments would apply to the entire parcel -- be received and filed. Question being taken, the motion was carried. (Deputy Mayor Gould withdrew from the meeting, not having been present for the January 6, 1992 public hearings with respect to the proposed Zoning By-Law amendments related to property at 541 Rothesay Avenue and to the rear of 520-550 Somerset Street.) On motion of Councillor Knibb Seconded by Councillor Fitzpatrick RESOLVED that the by-law entitled, "By-Law Number C.P. 100-260 A Law To Amend The Zoning By-Law Of The City Of Saint John", by adding a new subsection to Section 620(2)(c) to read: "notwithstanding (i) or (d) a tavern or cabaret may be located at 541 Rothesay Avenue (NBGIC Numbers 309229 and 55076079)." -- be read a third time and enacted and the Corporate Common Seal be affixed thereto. The by-law entitled, "By-Law Number C.P. 100-260 A Law To Amend The Zoning By-Law Of The City Of Saint John", was read in its entirety. Question being taken, the motion was carried with Councillor Flewwelling voting "nay". On motion of Councillor Knibb Seconded by Councillor Fitzpatrick RESOLVED that the by-law entitled, "By-Law Number C.P. 100-261 A Law To Amend The Zoning By-Law Of The City Of Saint John", insofar as it concerns re-zoning a triangular parcel of land containing an area of approximately 6000 square metres (1.5 acres) located to the rear of 520-550 Somerset Street (part of NBGIC Number 411884), from "RS-2" One- and Two-Family Suburban Residential to "1-1" Light Industrial classification, be read a third time and enacted and the Corporate Common Seal be affixed thereto: AND FURTHER that the said re-zoning be pursuant to Section 39 of the Community Planning Act, providing as follows: (1) the property shall be consolidated with and used in conjunction with the uses permitted on the adjacent properties at 520- 550 Somerset Street having NBGIC Numbers 46417 and 52423; and (2) development of buildings, structures, parking and storage areas shall be in accordance with a site plan submitted by the applicant and approved by the Development Officer. The by-law entitled, "By-Law Number C.P. 100-261 A Law To Amend The Zoning By-Law Of The City Of Saint John", was read in its entirety. Question being taken, the motion was carried. Read report of the Committee of the Whole (as follows) To the COMMON COUNCIL of the City of Saint John The Committee of the Whole reports Your Committee begs leave to report that it sat on January 6, 1992, 83-312 COMMON COUNCIL JANUARY 13, 1992 when there were present Mayor Wayne and Councillors Coughlan, Davis, Fitzpatrick, Flewwelling, Knibb, Landers, Rogers, A. Vincent and M. Vincent, and your Committee submits the following recommendations, namely:- 1. That as recommended by the City Manager, (1) Common Council resolution of October 17, 1988, concerning the lease of land on St. Martins Road to Loch Lomond Fundy Sports Association, be amended by removing the requirement that the Association be responsible for payment of the taxes on the property; and (2) the invoice sent to Loch Lomond Fundy Sports Association, in the amount of $816 for payment of the 1991 taxes, be cancelled. 2. That as recommended by the City Manager, Common Council resolution of November 16, 1987, authorizing the acquisition of two easements from Clifford and Rita Doucette at 145 Loch Lomond Road for a price of $200, be amended by changing the price to $900. 3. That the report from the City Manager providing information, in response to a question raised with respect to remuneration to elected officials on commissions, boards and committees; and advising that, in addition to this information, elected officials are appointed to a number of other committees or boards which are somewhat further removed from direct City involvement, such as hospital boards, etc., and staff is unaware of any remuneration paid to elected officials as a result of their involvement with such groups -- be received and filed and considered in open session of Council. 4. That as recommended by the City Manager, Common Council authorize the execution of a contract with Duschenes Fish & Start for the consultant services on the new Fire Stations #5 and #7 at a fixed fee of $176,520 plus G.ST and reimbursables, and that the Mayor and Common Clerk be authorized to execute the documents on behalf of the City. 5. That the Common Council of the City of Saint John support the following resolution for consideration of the Resolutions Committee of the Cities of New Brunswick Association on January 14, 1992: "WHEREAS the Province of New Brunswick and the Province of Quebec announced on Thursday, November 21, 1991, in Moncton, New Brunswick, the creation of a joint New Brunswick Quebec - Working Group; WHEREAS this Working Group will review the current employment/labour situation in Quebec; WHEREAS the current employment/labour laws in Quebec significantly restrict the employment of non-Quebec residents on construction sites in Quebec working for non-Quebec companies; WHEREAS these companies have obtained contracts under the procurement agreements; WHEREAS the employment/labour laws in New Brunswick do not contain similar restrictions at such a severe degree; WHEREAS the restrictions contained in the Quebec laws impair the economic viability of non-Quebec companies obtaining construction contracts in Quebec; WHEREAS these restrictions prevent a greater flexibility in labour mobility across Canada; and WHEREAS the Council of Maritime Premiers has announced that the three Maritime Provinces will be reviewing their respective policies in a number of fields with the intent of removing policies that impair greater economic development: BE IT RESOLVED that the Cities of New Brunswick Association urge the Province of New Brunswick to request the Province of Quebec to reassess, in concert with its construction labour unions, its employment/labour laws to 83-313 COMMON COUNCIL JANUARY 13, 1992 ensure that these laws respect the concept of the unobstructed access to employment by all Canadians.". Respectfully submitted, January 13, 1992, (sgd.) Elsie E. Wayne, Saint John, N.B. C h air man. On motion of Councillor M. Vincent Seconded by Councillor Knibb RESOLVED that section 1 of the above report be adopted. (Deputy Mayor Gould re-entered the meeting.) Question being taken, the motion was carried. On motion of Councillor Knibb Seconded by Councillor Rogers RESOLVED that section 2 of the above report be adopted. Question being taken, the motion was carried. On motion of Councillor Knibb Seconded by Councillor Fitzpatrick RESOLVED that section 3 of the above report be adopted. Councillor Coughlan asked that the City Manager review the matter of the difference in remuneration among the various commissions and boards and report to Council in this regard. Councillor A. Vincent asked the reason for the omission from the above report of the Saint John Harbour Bridge Authority to which Mr. Wilson replied that the report provides information on commissions, committees and organizations that were created by the City, and the Mayor suggested that it could be added to the above report. Question being taken, the motion was carried. On motion of Councillor Fitzpatrick Seconded by Councillor Gould RESOLVED that section 4 of the above report be adopted. Question being taken, the motion was carried. On motion of Councillor Knibb Seconded by Councillor Coughlan RESOLVED that section 5 of the above report be adopted. Question being taken, the motion was carried. Read report of the Committee of the Whole (as follows) To the COMMON COUNCIL of the City of Saint John The Committee of the Whole reports Your Committee begs leave to report that it sat on December 16, 1991, 83-314 COMMON COUNCIL JANUARY 13, 1992 when there were present Mayor Wayne and Councillors Coughlan, Davis, Fitzpatrick, Flewwelling, Gould, Knibb, Landers, Rogers, A. Vincent and M. Vincent, and your Committee submits the following recommendation, namely:- 1. That as recommended by the Nominating Committee, Mrs. Frances Corbett, Mr. N. Barfoot and Mrs. Carmen Jenkins be appointed to the Board of Commissioners of the Saint John Free Public Library for a term of three years effective January 1, 1992. January 13, 1992, Saint John, N.B. Respectfully submitted, (sgd.) Elsie E. Wayne, C h air man. On motion of Councillor Knibb Seconded by Councillor Fitzpatrick RESOLVED that the above report be received and filed and the recommendation therein be adopted. Question being taken, the motion was carried. On motion of Councillor Gould Seconded by Councillor Flewwelling RESOLVED that as recommended by the Nominating Committee, Wendell MacKay be re-appointed to the Board of Police Commissioners for a term of three years. Question being taken, the motion was carried. On motion of Councillor Fitzpatrick Seconded by Councillor Coughlan RESOLVED that the letter from (a) the Crescent Valley Tenants Association expressing its concern with the budgetary cuts putting the community policing project on hold; and (b) the Saint John North Community Action Group expressing concern that the current fiscal cutbacks will result in neighbourhood policing being downsized or eliminated entirely from the City's budget -- be received and filed. Question being taken, the motion was carried. On motion of Councillor Fitzpatrick Seconded by Councillor Gould RESOLVED that the notices from the Liquor Licensing Board advising that hearings of the applications of (a) Garry Muenster for lounge and entertainment licenses for premises at 200 King Street West; (b) Broken Cue, Jr. Limited for a dining room license for premises at Westmorland Plaza, will be held on January 16; and (c) Chez Elite Ltd. for lounge and entertainment licenses for premises at 125 Prince William Street, will be held on January 15 -- be received and filed. The Mayor advised that her Office has received a number of telephone calls asking that the City oppose the application for 200 King Street West, as it did in the case of Club 1880 by forwarding a letter to the Board; however, Council's usual practice is to receive and file notices of the above nature and not get involved on the basis that it is a matter of Provincial jurisdiction. Mr. Rodgers noted that Council's policy on these matters is that, when an application falls within a zoning already allowing the proposed establishment, Council does not oppose such application, although Council members, individually, can take whatever action they wish. Councillor A. Vincent expressed the understanding that the premises at King Street West have been closed for a six-month period thereby requiring re-zoning and, at the Mayor's suggestion that (b) and (c) should be received and filed and (a) referred to staff to determine if the zoning has expired, Councillor Fitzpatrick noted that staff would take 83-315 COMMON COUNCIL JANUARY 13, 1992 whatever action is necessary even if Council receives and files the notices. Question being taken, the motion was carried with the Mayor voting "nay". On motion of Councillor Knibb Seconded by Councillor Fitzpatrick RESOLVED that the application of Peter A. Olsen for the re-zoning of 12 Birch Street be referred to the Planning Advisory Committee for a report and recommendation and that the necessary advertising be authorized in this regard, with the public hearing to be held on February 17, 1992. Question being taken, the motion was carried. On motion of Councillor Knibb Seconded by Councillor Fitzpatrick RESOLVED that this meeting be adjourned. Question being taken, the motion was carried. Common Clerk