1993-11-29_Minutes
84-379
COMMON COUNCIL
NOVEMBER 29, 1993
At a meeting of the Common Council, held at the City Hall in the City of
Saint John, on Monday, the twenty-ninth day of November, AD. 1993, at 4:00 o'clock
p.m.
present
Shirley McAlary, Deputy Mayor
Councillors Chase, Coughlan, Gould, Knibb, Landers, Rogers,
Trites, A Vincent and M. Vincent
- and -
Messrs. 1. Totten, City Manager; F. Rodgers, City Solicitor; D.
Wilson, Commissioner of Finance; C. Robichaud, Assistant City
Manager - Operations; J. C. MacKinnon, Commissioner of
Environment and Infrastructure Services; P. Groody,
Commissioner of Human Resources; S. Bedford, Commissioner of
Development Services; S. Armstrong, Director of Engineering; W.
D. Todd, Director of Housing and Property Management; D.
Logan, Purchasing Agent; D. Sherwood, Chief of Police; G. Tait,
Fire Chief; Mrs. M. Munford, Common Clerk; and Ms. C. Joyce,
Assistant Common Clerk.
Reverend Michael Trites of Edith Avenue Baptist Church offered the
opening prayer.
On motion of Councillor Knibb
Seconded by Councillor A Vincent
RESOLVED that minutes of the
meeting of Common Council, held on November 22, 1993, be approved.
Question being taken, the motion was carried.
Deputy Mayor McAlary noted that a Torch Light Parade will be held on
December 1 beginning at the Assumption Church on Dufferin Row; proclaimed
December as Lung Awareness Month, with the request that citizens of Saint John
support the Lung Association's Christmas Seal campaign; and also proclaimed
December 6 as a Day of Remembrance and Action on Violence Against Women in the
City of Saint John. Councillor Coughlan noted that the Flying Fathers Hockey Team will
play at Harbour Station on December 2, with proceeds to go to charitable activities.
(Councillor M. Vincent entered the meeting during the above comments.)
On motion of Councillor Knibb
Seconded by Councillor Coughlan
RESOLVED that a report from The
Market Square Corporation on the final settlement relevant to Harbour Station, and the
report from the City Manager on the overview of the total budget for Harbour Station
(which were considered in Committee of the Whole earlier this date) be added to the
agenda for consideration at this meeting.
Question being taken, the motion was carried.
On motion of Councillor Knibb
Seconded by Councillor Trites
RESOLVED that as recommended by the
City Manager, authority be granted for payment of the following construction progress
certificates, namely:-
1.
Contract 92-3 - Spruce Lake
Industrial Park Standpipe
Landmark Structures (Ontario) Ltd.
Original estimated value of work
Total work done, Estimate Number 6 (Final)
$996,000.00
996,036.53
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COMMON COUNCIL
NOVEMBER 29, 1993
Retention
Payments previously approved
Sub-Total
G.ST Component
Sum recommended for payment, Progress
Estimate Number 6, dated November 19, 1993
Final holdback release
2.
Contract 93-9
Union Street Reconstruction
Standard Paving Maritimes Limited
Original estimated value of work
Total work done, Estimate Number 3
Retention
Payments previously approved
Sub-Total
G.ST Component
Sum recommended for payment, Progress
Estimate Number 3, dated November 23, 1993
Final holdback release
3.
Contract 92-27
East Saint John Sewer Pipe LininQ
Samuel Pipe Liners, Inc.
Original estimated value of work
Total work done, Estimate Number 2
Retention
Payments previously approved
Sub-Total
G.ST Component
Sum recommended for payment, Progress
Estimate Number 2, dated November 16, 1993
Final holdback release
4.
Contract 92-29, Rockwood Park
Construction of Loop Road
G. Andrew Simpson Contracting Ltd.
Original estimated value of work
Total work done, Estimate Number 6
Retention
Payments previously approved
Sub-Total
G.ST Component
Sum recommended for payment, Progress
Estimate Number 6, dated November 24, 1993
Final holdback release
Question being taken, the motion was carried.
Nil
963,536.53
2,500.00
163.55
$ 2,500.00
$141,275.00
124,356.58
Nil
123,756.58
600.00
39.25
$ 600.00
$157,930.00
150,261.33
Nil
115,249.06
35,012.27
2,290.52
$ 35,012.27
$379,012.65
339,946.95
Nil
338,072.44
1,874.51
122.63
$ 1,874.51
Consideration was given to a report from the City Manager advising that,
further to Common Council resolution of September 7, 1993 endorsing the
recommendations in the Fundy Engineering study relative to the Spruce Lake/East and
West Musquash Watershed Designation Study, the estimated value of the contract was
$28,953 (not including G.ST) and the City has received the Provincial share of
$14,476.50; also advising that the Department of the Environment has agreed to cost
share the additional invoice for $2,777.27 for the extra work related to additional report
revisions and map reparations for the public meeting, minus the G.ST component, in
the amount of $1 ,297.79, the total G.ST component on this project amounting to
$2,308.41; and submitting a recommendation in this regard.
On motion of Councillor Knibb
Seconded by Councillor Landers
RESOLVED that as recommended by the
City Manager, authority be granted for the following relative to the Spruce Lake/East and
West Musquash Watershed Designation Study completed by Fundy Engineering: 91)
payment of the additional invoice of $2,777.27; (2) invoicing of the Department of the
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COMMON COUNCIL
NOVEMBER 29, 1993
Environment in an amount of $1,297.79 for its share of the final invoice; and (3) payment
of the final holdback release in the amount of $2,659.51.
Question being taken, the motion was carried.
On motion of Councillor Rogers
Seconded by Councillor Trites
RESOLVED that as recommended by the
City Manager, a sum of money, certificate of deposit, letter of credit or guarantee in the
amount of $50,000 be accepted from Grove Construction (1986) Inc. as security to
ensure the rehabilitation of the gravel pit at 2740 Golden Grove Road (NBGIC Number
351239).
Question being taken, the motion was carried.
On motion of Councillor Knibb
Seconded by Councillor Chase
RESOLVED that as recommended by the
City Manager, the low tender of Atlantic Colas Ltd., in the amount of $82.50 per tonne,
be accepted for the supply of pavement repair material, on an as-and-when-required
basis.
Question being taken, the motion was carried.
On motion of Councillor Knibb
Seconded by Councillor Coughlan
RESOLVED that as recommended by
the City Manager, the tender of the low tenderer for each item, as indicated in the
submitted bid summary, be accepted for traffic signal poles.
Councillor M. Vincent asked if staff, on the basis that there is a slight
variance between the second low bidder and the bidder which is low on almost the entire
content of the tender, gave consideration to recommending the complete tender award
to one bidder for administrative benefits and, in this case, the supplementary fact that
the low tenderer on almost the entire content is a Saint John company, and also if staff
calculated the difference in price in doing so. Mr. Logan replied that, in this particular
case, it is a one-time purchase as opposed to a supply agreement; and expressed the
understanding that, when administrative costs are taken into consideration, it is for an
annual contract type of arrangement whereby there are administrative costs incurred
with splitting the award; and also that staff did not compare the cost difference between
giving it all to The Eddy Group from Saint John as compared to what is recommended
above.
Question being taken, the motion was carried with Councillor M. Vincent
voting "nay".
Consideration was given to a report from the City Manager advising that
Yesterday's Lounge Inc. (Paul Grannan) has applied to the Liquor Licensing Branch for
lounge and entertainment licenses for Market Square, representing a change in
company name for two previously-existing licensed facilities, Chevy's and Spirits; and
that the specific proposal, adopted by Common Council when the property was placed in
the "ID" zone, permits licensed facilities such as that proposed by the applicant.
On motion of Councillor Chase
Seconded by Councillor Trites
RESOLVED that as recommended by the
City Manager, Common Council give its approval for the operation of the proposed
lounge, including entertainment license, in Market Square.
Question being taken, the motion was carried.
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COMMON COUNCIL
NOVEMBER 29, 1993
Read a report from the City Manager submitting a recommendation with
regard to Uptown Saint John Inc.'s proposal for an Uptown Pedestrian Signage System,
which was the subject of a letter considered by Council at its last meeting.
On motion of Councillor Knibb
Seconded by Councillor Coughlan
RESOLVED that as recommended by
the City Manager, Common Council support the initiative of Uptown Saint John Inc. with
regard to the Uptown Pedestrian Signage System, and Uptown Saint John Inc. be
thanked for its work on this project.
Question being taken, the motion was carried.
On motion of Councillor Knibb
Seconded by Councillor Rogers
RESOLVED that the report from the City
Manager advising that staff of the Parking Commissioner and the Engineering
Department has investigated a request from residents on Orange Street for a two-hour
parking limit and a Residential Parking Permit Program for Orange Street; and
recommending that the submitted amendment to the Traffic By-Law be given first and
second readings and referred to the Legal Department for appropriate action -- be
received and filed and the recommendation adopted:
AND FURTHER that the by-law entitled, "A By-Law To Amend A By-Law
Respecting Traffic On Streets In The City Of Saint John Made Under The Authority Of
The Motor Vehicle Act, 1973, And Amendments Thereto", with regard to parking on
Orange Street, 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 Traffic On Streets In The City Of Saint John Made Under The Authority Of
The Motor Vehicle Act, 1973, And Amendments Thereto".
On motion of Councillor Knibb
Seconded by Councillor M. Vincent
RESOLVED that the by-law entitled,
"A By-Law To Amend A By-Law Respecting Traffic On Streets In The City Of Saint John
Made Under The Authority Of The Motor Vehicle Act, 1973, And Amendments Thereto",
with regard to parking on Orange Street, 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 Traffic On Streets In The City Of Saint John Made Under The Authority Of
The Motor Vehicle Act, 1973, And Amendments Thereto".
On motion of Councillor Knibb
Seconded by Councillor Chase
RESOLVED that as recommended by the
City Manager, authority be granted for payment of the following construction progress
certificate, namely:-
1.
Contract - Pedestrian Link
Mercantile Centre to Harbour Station
Maxim Construction Ltd.
Original estimated value of contract
Total work done, Estimate Number 7
Retention
Payments previously approved
Sum recommended for payment, Progress
Estimate Number 7, dated November 26, 1993
Partial holdback release.
$1,441.504.00
1,561,165.31
5,000.00
1,255,772.62
$ 300,392.69
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COMMON COUNCIL
NOVEMBER 29, 1993
Councillor Gould asked for a breakdown of the total capital cost of
building the pedway system from the City Market to Harbour Station, and for information
on who pays the operational cost of the pedway system, in particular that portion
between the City Market and Brunswick Square and that portion between the Mercantile
Centre and Harbour Station; to which Mr. Bedford replied, while he was not in a position
at this time to provide a report on capital costs, staff could provide the information to
Council at a later date; and Mr. Todd, referring to Council's request for staff to meet with
the various owners of properties connecting the pedway, advised that staff has met with
Brunswick Square and is awaiting a response from that discussion, and that, while the
City currently is paying one hundred per cent of the operating costs for the pedway from
the Mercantile Centre to Harbour Station, staff is currently reviewing the situation; and
also advised that, at the current time, the City pays one hundred per cent of the
operating cost between Brunswick Square and Market Square; however, payment of the
operating costs of the remainder of the pedway system varies in that, for example,
between Market Square and City Hall there is a cost-sharing arrangement; and, from the
Aquatic Centre through the Mercantile Centre, the City pays one hundred per cent of the
operating expenses but there is a cost sharing arrangement in place relative to
construction.
Question being taken, the motion was carried.
On motion of Councillor Knibb
Seconded by Councillor Coughlan
RESOLVED that as recommended by
the City Manager, the tender of Stannair Conditioning Inc., being the lowest tender to
meet all of the tender requirements, with a bid of $14,692 (all taxes included), be
accepted for the supply and installation of air conditioning on the 2nd floor of the Parks
Department building, 175 Adelaide Street.
Question being taken, the motion was carried.
On motion of Councillor Knibb
Seconded by Councillor Chase
RESOLVED that the by-law entitled, "A By-
Law To Amend A By-Law Respecting The Stopping Up And Closing Of Highways In The
City Of Saint John", with regard to stopping up and closing of a portion of the following
highway:-
TIPPETT DRIVE - All that certain lot piece and parcel of land situate lying and being at
Dominion Park (so called) in the City of Saint John, County of Saint John and Province
of New Brunswick and more particularly described as beginning at a point on the
southern sideline of Tippett Drive, the said point being the northwest corner of Lot 30, as
shown on PLAN OF DOMINION PARK in the PARISH OF LANCASTER, SAINT JOHN,
N. B., dated MARCH 3, 1936 and filed in the Saint John County Registry Office as FI LE
16 #112; going thence in a northwesterly direction to a point on the northern sideline of
Tippett Drive, the said point also being the intersection of the line of division between
LOT 64 and LOT 65 with the said northern sideline of Tippett Drive; thence in a
southeasterly direction, along the northern sideline of the said Tippett Drive to the
southwest corner of LOT 66; thence in a southwesterly direction to the southern sideline
of Tippett Drive, the said point also being the northeast corner of the western one-half of
LOT 28; thence in a northwesterly direction along the southern sideline of Tippett Drive
and also being the frontage of the western one-half of LOT 28 and LOT 29 and LOT 30
in their entirety to the place of beginning as shown on the attached sketch, dated Sept.
10/92, prepared by the Department of Community Planning and Development of The
City of Saint John
be read a third time and enacted and the Corporate Common Seal be affixed thereto.
The by-law entitled, "A By-Law To Amend A By-Law Respecting The
Stopping Up And Closing Of Highways In The City Of Saint John", was read in its
entirety.
Question being taken, the motion was carried.
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COMMON COUNCIL
NOVEMBER 29, 1993
Consideration was given to letters regarding the application for legislation
to erect a statue in the Loyalist Burial Ground from: (a) the New Brunswick Branch of the
United Empire Loyalists' Association of Canada, opposing the erection of any statue in
the Loyalist Burial Ground, and requesting the City to withdraw its application of a private
bill which in effect would allow Common Council to give approval for the erection of a
statue; (b) Mr. James Hendricks Turnbull objecting to the intended legislation relating to
the Loyalist Burial Ground on the grounds that the land in question has been dedicated
as a burial ground and accordingly monuments and tombstones should be erected only
for Loyalists or those of Loyalist descent who are buried in the Loyalist Burial Ground;
and (c) Joan Pearce registering her objection to the intention of the City of Saint John to
apply for the enactment of a private bill for the erection of a statue in the Loyalist Burial
ground in memory of the late Kenneth Colin Irving; and requesting an opportunity to
express her concerns to Common Council in open session on Monday, December 6,
1993.
On motion of Councillor Knibb
Seconded by Councillor A. Vincent
RESOLVED that the letters from the
New Brunswick Branch of the United Empire Loyalists' Association of Canada, and Mr.
James Hendricks Turnbull, regarding the City's application for proposed legislation for
the erection of a statue in the Loyalist Burial Ground -- be received and filed and brought
forward when a final decision is to be made in this regard.
The manner in which the request for legislation was submitted to Council
was questioned by Councillor Landers in that the Irvings did not make a formal request.
Mr. Rodgers made the observation that this matter came before Council when he submitted
a report to Council five or six weeks ago requesting the necessary resolution to authorize
amending the 1848 Act if Council so wanted and that, in his report, he pointed out that it
was brought to his attention by the former Mayor, and that Council passed the resolution in
this regard which resulted in the necessary advertising being done and the preparation of
the legislation; and he advised that, as far as he knows, the proposed legislation will be
coming up as a private bill as an amendment to the 1848 Act when the Provincial
Legislature sits in fall session commencing this week. Deputy Mayor McAlary indicated
that persons who object to the proposed legislation can forward letters to the Legislature
and that, if the legislation is enacted, Council can discuss the matter further, and Mr.
Rodgers explained that any citizen has the right to go before the Committee and oppose
the private bill. Councillor Landers asked if, in the absence of written documentation from
the former Mayor or from the principals in question, Council could withdraw its request for
legislation until such time as it has written documentation and decides to do so after
discussion, to which Mr. Rodgers replied that he does not see what sense there is in
withdrawing, cancelling or deciding not to proceed simply n that basis; and suggested that,
if Council decides not to proceed, it should be on the basis from a policy point of view that it
is not interested in amending the Act, as there has been enough done on the process and
enough discussion has taken place that Council made a decision to proceed. Mr. Rodgers
added that the only reason to withdraw would be because Council has changed its mind
and does not wish to proceed in that he does not believe that further correspondence from
the Irving organization is significant for that reason and, if such correspondence had been
required, the time to have asked for it would have been five or six weeks ago and, if
Council does not wish to proceed, it should not be on that basis; and also advised that, if
the amendment goes through, Council is then permitted, if it wishes, to enter into the
necessary agreements with the Irving organization to proceed in erecting the statue and
Council then can negotiate with the Irvings as to the conditions to be contained in that
agreement and that, in his opinion, Council is obligated to proceed to attempt to get an
agreement that is satisfactory to Council. Mr. Rodgers confirmed that, if difficulties arise
during negotiations, Council has the full unobstructed authority to turn it down. During
discussion the Deputy Mayor suggested that Council should let the legislation proceed and,
if and when enacted, reconsider the letters received in this regard and meet with the Irving
family; and the initial motion to receive and file the letter from the United Empire Loyalists'
Association was changed to that above.
Question being taken, the motion was carried with Councillor Landers
voting "nay".
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COMMON COUNCIL
NOVEMBER 29, 1993
On motion of Councillor Chase
Seconded by Councillor Knibb
RESOLVED that the letter from Joan Pearce
registering her objection to the intention of the City of Saint John to apply for the
enactment of a private bill for the erection of a statue in the Loyalist Burial Ground in
memory of the late Kenneth Colin Irving, and requesting an opportunity to express her
concerns to Common Council in open session on Monday, December 6, 1993 -- be
received and filed and Mrs. Pearce be advised that she will be given an opportunity to
approach Council when the matter is considered further.
Question being taken, the motion was carried.
On motion of Councillor Landers
Seconded by Councillor Trites
RESOLVED that Common Council request
the Provincial Legislature and the mover of the proposed amendment to the 1848 Act to
delay consideration of the matter until the Spring Sitting of the Legislature until Council
has had all the input in this regard.
(Councillor Rogers withdrew from the meeting.)
Question being taken, the motion was lost with Deputy Mayor McAlary
and Councillors Chase, Gould, Knibb, A. Vincent and M. Vincent voting "nay".
On motion of Councillor Knibb
Seconded by Councillor Chase
RESOLVED that the letter from Saint John
Fire Fighters' Association, Local Union No. 771, I.A.F.F., opposing the intention of
Common Council to make application to the Province to repeal the City of Saint John
Pension Act and to seek authority to have the City Pension Plan administered by City
by-law; and advising that the Pension Trustees nor the members of the Association were
ever notified of such intent by the City of Saint John, which appears to be in violation of
Section 24(1) of the Pension Benefits Act of the Province of New Brunswick, and that it
trusts that the City will reconsider its intention and continue with the present system of
administration -- be received and filed.
(Councillor Rogers re-entered the meeting.)
During discussion Mr. Rodgers re-iterated his opinion to Council on
November 22 that the action taken recently by Council did not constitute a violation of
the section referred to in the above letter, and that, if the Municipalities Act is amended
to permit municipalities to enact their pension regulations by by-law, further action would
have to be taken by Council, before it enacts a by-law, to have the current Pension Act
repealed, which would have to go back to the Provincial Legislature as a private
members bill; and explained that it is at that point that it mayor may not be an issue with
respect to following various procedures in the sense of what the Fire Fighters'
Association is referring to as possible violations. Councillor Knibb, a Pension Board
Trustee, advised that he met with the Retirees' earlier this date at which time he
attempted to assure them that there is no plot by the City to take away any of the
security of the City's Pension Fund; and Mr. Wilson, Treasurer of the Pension Board,
commented on the matter from the point of view of two or three major unsuccessful
undertakings, at great cost to the Pension Plan, to try to get amendments made to the
City of Saint John Pension Act, in that it was incumbent to look at some other way of
administering the Plan, and one of these ways, which is done by other municipalities and
being suggested in this case, is to request that the Municipalities Act be amended to
permit Council to deal with amendments to the Pension Plan through a by-law, rather
than having to pursue amendments through the Provincial Legislature, and that this
request does not affect the City's current Act.
Question being taken, the motion was carried.
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COMMON COUNCIL
NOVEMBER 29, 1993
On motion of Councillor Knibb
Seconded by Councillor Chase
RESOLVED that the letter from The Saint
John District Labour Council expressing concern that no meetings have been held by the
committee struck in accordance with Common Council resolution of August 3 to deal
with the closure of Labatt's Brewery, and the Brewery is scheduled to close on
December 10; and requesting that a meeting take place with those identified in the
subject Council resolution -- be received and filed and the City Manager be instructed to
respond to the Saint John District Labour Council explaining that its best interests have
been looked after.
Councillor Knibb initially proposed a motion to refer the above letter to the
City Manager, such motion changed to that above following Mr. Totten's explanation that
the morning after Council instructed him to get in touch with the Saint John District
Labour Council he received a call from The Honourable Jane Barry who indicated the
action she had already taken with respect to establishing a committee to deal with the
issue of Labatt's, and that former Mayor Elsie Wayne and he attended the first meeting
of that group which included representatives from the Greater Saint John Economic
Development Commission, the Provincial Department, several representatives from the
Province, the Board of Trade, and representatives of both the Labatt's employee group
and of Labatt's itself; and he advised that, at that time, a number of working committees
were struck and, since that time, the Greater Saint John Economic Development
Commission has a sub-committee looking for potential uses for the Labatt's building. Mr.
Totten made the observation that, following the meeting, he reported to Council that he
was not going to take any further action on establishing the committee in question
because the real challenge is to have the resources available to bring another party to
the table with respect to the future utilization of the Labatt's building, which is really
where the Province and Labatt's and others are involved, and there are many people
seeking alternative uses for the plant.
Question being taken, the motion was carried.
On motion of Councillor Knibb
Seconded by Councillor Chase
RESOLVED that the letter from The Anti-
Pornography Coalition expressing concern about the recent establishment of a new
adult video store on Waterloo Street on the basis of the Association's belief that the
presence of adult video stores and the sale of pornographic material in the community is
posing a serious threat to families, teenagers and its neighbours in general; and asking
Common Council to review the current situation and the growing menace of pornography
in the City and go on record as opposing the sale and distribution of pornography and
give responsible leadership by enacting policies which would restrict those who would
sell and distribute this type of material in this community -- be received and filed.
Councillor Chase asked what legal right the City has to regulate the
above-type of business to which Mr. Rodgers expressed the opinion that, if the question
is dealing with the moral questions, Council does not have the authority to regulate that;
and advised that, if Council so wished, he could review what is occurring in other parts of
Canada and determine if it would be possible for the City to restrict businesses of this
type in certain areas through a by-law. Chief Sherwood advised that the above type of
business would be the subject of scrutiny and investigation by the Liquor and Morality
Squad and that, to date, he is unaware of any problems with this particular institution in
the City, other than some concern being raised over its advertising and location; and,
with respect to the age limit, spot checks and surveillance could be done and the
Department would respond to any complaint as well, if a citizen felt that a person in the
business establishment was, in fact, under 18 years of age.
Question being taken, the motion was carried with Deputy Mayor McAlary
and Councillors Gould and M. Vincent voting "nay".
On motion of Councillor Knibb
Seconded by Councillor Coughlan
RESOLVED that the letter from Mr. Colin
Whitcomb, Director of First Night Saint John, updating Council on the status of the First
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NOVEMEBER 29, 1993
Night Festival of the Arts in Saint John since the Board's presentation to Council in early
autumn; thanking Council for its support of the Festival; and advising that, while
considerable progress has been made on all aspects of the Festival by the end of
October, it is the opinion of the First Night Board of Directors that it has insufficient time
to proceed with a First Night Festival for 1993, and has contacted the International
Alliance of First Night Festivals in Boston and advised that First Night Saint John will
hold its inaugural Festival in 1994, not 1993 -- be received and filed with regret that First
Night will not be initiated this year in Saint John.
Deputy Mayor McAlary expressed the understanding that the First Night
Board did not have the time necessary to arrange all of the acts at this time but is
looking forward to having the event in 1994.
Question being taken, the motion was carried.
Consideration was given to notes from the Chairman of The Market
Square Corporation reporting on the final costing for the project budgets administered by
the Corporation for Harbour Station, Council having approved budgets in the amounts of
$17,000,000 for construction of the building proper, $1,620,500 for the Prime
Consultant's contract, $150,000 for project management fees of The Market Square
Corporation, $165,000 for design and outside services, and $16,200 for design/cost
review, for total project budgets of $18,951,700 under the administration of The Market
Square Corporation.
Messrs. H. Meinhardt, Chairman; J. Shackleton, General Manager; and
S. Appleby, Assistant General Manager, of The Market Square Corporation, were
present at the meeting, and Mr. Meinhardt addressed Council, and explained that the
final cost for the building as originally conceived will be $18,726,436, or 98.8% of the
budget, with changes made during the construction process to improve the building and
its operation, including such items as the private club area, finishing of concession
areas, and services necessary for some of the operating equipment, such as the score
clock, at a total cost of $1,013,841, with the operating cost savings for these
improvements yielding a net present value of $1,042,000; and requested Council's
approval of an increase in the original budget of $18,951,700 to $19,740,277, an amount
of $788,577, or 4.2% over the Corporation's budget.
In response to Council queries, Mr. Meinhardt commented on the
changes in the original design and the associated additional costs and anticipated
revenue, with regard to private boxes whereby, rather than leaving the area open for
finishing by the purchasers of the private boxes, the area was finished to accommodate
a club area for which citizens would buy memberships and the Commission would
operate on behalf of the City, and two private booths; and, concerning the concession
area which was to be left open for lease and completion at the cost of the
concessionaires with water and electricity to be provided, the tendering of the
concession area and subsequent engagement of Ogden Concessionaires to look after
all the concessions, with the agreement being that the City would complete the areas for
Ogden and Ogden would provide $500,000 worth of equipment for the areas to revert to
the City in seven years and also the City gets a return of 20% of the income of anything
sold in the concessions. Councillor Gould expressed the opinion that there was no
justification whatsoever for the Corporation to have presented this item in Committee of
the Whole earlier this date as it is not a legal document and does not involve
personalities, but is a continuation of the motion adopted by Council on September 27;
reiterated his objection, as expressed in Committee of the Whole earlier this date, to
have been given supporting documents less than an hour before Council was asked to
make a decision concerning items running into over $100,000; and asked why the
Corporation did not apprise Council on September 27, when Council approved an
amount of $300,000, that this did not pay for all the outstanding costs but that there were
substantial overruns on the project, and also how the Corporation could submit to
Council on this date supporting documents which have not been approved by the Board;
to which Mr. Meinhardt replied that the Corporation reported to Council all along during
the construction of the project, which should be documented in the minutes, and that the
Corporation did not need the Board's approval of the documents submitted to Council
earlier this date.
84-384D
COMMON COUNCIL
NOVEMBER 29, 1993
On motion of Councillor Knibb
Seconded by Councillor Landers
RESOLVED that Common Council
approve an increase in the original budget of $18,951,700 to $19,740,277 administered
by The Market Square Corporation for the Saint John Regional Exhibition Centre.
Question being taken, the motion was carried with Councillors Gould and
A. Vincent voting "nay".
Consideration was given to a report from the City Manager submitting a
schedule which compares the budget for the Saint John Regional Exhibition Centre with
the estimated costs to complete as prepared on November 29, 1993; and explaining
that, while the schedule shows that the total project is $648,848, or 2.6% over budget, it
must be realized that the City has obtained much more in the completed project than
anticipated when the budget was prepared; for instance, the scoreboard alone will have
a final cost of $455,000, as approved by Council on the basis of its revenue producing
potential; the total land cost includes more land (i.e. the escarpment) than was
necessary for the Centre which will, no doubt, be a valuable asset to the City in years to
come; and, in addition, there are many enhancements made to the facility which will be
more adequately explained by members of The Market Square Corporation.
Mr. Wilson highlighted the above report, and expressed the opinion that,
while the total costs are over budget by approximately $649,000, the value for that can
be found and it simply was not a matter of costs being incurred with no benefit seen for
them; and, with regard to financing from the other two levels of government, advised that
the Province contributed $12,400,000 toward the structure and $800,000 towards the
cost of Station Street, and the Atlantic Canada Opportunities Agency gave a grant of
$250,000, and also that one source of revenue did not materialize the way the City had
expected, that being a million dollars from the business community with the idea that
certain pieces of equipment might be donated; however, the revenue being received
from the outlying municipalities, the scoreboard and the other enhancements, should
have a long-term impact much more than financing of the million dollars.
On motion of Councillor Coughlan
Seconded by Councillor M. Vincent
RESOLVED that the above report from
the City Manager be received and filed.
Question being taken, the motion was carried.
On motion of Councillor Knibb
Seconded by Councillor Chase
RESOLVED that this meeting be
adjourned.
Question being taken, the motion was carried.
Common Clerk