2012-04-02_Minutes--Procès-verbal97 -1
COMMON COUNCIL / CONSEIL COMMUNAL
APRIL 2, 2012/LE 2 AVRIL 2012
COMMON COUNCIL MEETING — THE CITY OF SAINT JOHN
CITY HALL — APRIL 2, 2012 - 6:00 P.M.
Present:
Ivan Court, Mayor
Deputy Mayor Chase and Councillors Court, Farren, Higgins,
McGuire, Norton, Snook, Sullivan, and Titus
-and -
P. Woods, City Manager; M. Tompkins, Solicitor; G. Yeomans,
Commissioner of Finance and Administrative Services; K.
Forrest, Commissioner of Growth and Development Services; W.
Edwards, Commissioner of Transportation and Environment
Services; E. Gormley, Common Clerk and J. Taylor, Assistant
Common Clerk.
SEANCE DU CONSEIL COMMUNAL DE THE CITY OF S. AINT JOHN
TENUE A L'HOTEL DE VILLE, LE 2 AVRIL 2012 A 18 H
Sont presents :
Ivan Court, maire
le maire suppleant Chase et les conseillers Court, Farren,
McGuire, Norton, Snook, Sullivan, Titus et la conseillere Higgins
-et -
P. Woods, directeur general; M. Tompkins, avocat; G. Yeomans,
commissaire aux services financiers et administratifs; K. Forrest,
commissaire aux services de developpement et de croissance;
W. Edwards, commissaire aux services de transport et
d'environnement; E. Gormley, greffiere communale, et J. Taylor,
greffier communal adjoint.
1. Call To Order — Prayer
Mayor Court called the meeting to order and Councillor Titus offered the opening prayer.
1. Ouverture de la seance, suivie de la priere
La seance est ouverte par le maire Court et le conseiller Titus recite la priere
d'ouverture.
2. Approval of Minutes
2. Approbation du proces- verbal
3. Approval of Agenda
On motion of Councillor McGuire
Seconded by Councillor Snook
RESOLVED that the agenda of this meeting be
approved with the addition of items13.2 Pension Board of Trustees: Response to
Minister Blaine Higgs' Comments in Telegraph Journal; 13.3 Committee of the Whole:
March 26th, 2012 Meeting of Council Motion to Amend January 31, 2012 Resolution of
Council re Outstanding Contributions re Pension Plan Going Concern Unfunded Liability.
Question being taken, the motion was carried.
On motion of Councillor McGuire
Seconded by Councillor Titus
RESOLVED that item 13.3 be moved forward on
Council's agenda.
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COMMON COUNCIL /CONSEIL COMMUNAL
APRIL 2, 2012/LE 2 AVRIL 2012
Question being taken, the motion was carried.
3. Adoption de I'ordre du jour
Proposition du conseiller McGuire
Appuyee par le conseiller Snook
RESOLU que I'ordre du jour de la presente reunion
soit adopte, moyennant I'ajout des points 13.2 Conseil d'administration du regime de
retraite : Reponse aux commentaires du ministre Blaine Higgs dans le Telegraph -
Journal et 13.3 Comite plenier : Proposition de la seance du conseil du 26 mars 2012
visant a modifier la resolution du conseil du 31 janvier 2012 intitulee Contributions
impayees — Passif a long terme non capitalise du regime de retraite.
A ('issue du vote, la proposition est adoptee.
Proposition du conseiller McGuire
Appuyee par le conseiller Titus
RESOLU que le point 13.3 soit avance dans I'ordre
du jour du conseil.
A ('issue du vote, la proposition est adoptee.
4. Disclosures of Conflict of Interest
4. Divulgations de conflits d'interets
5. Consent Agenda
5. Questions soumises a I'approbation du conseil
6. Members Comments
6. Commentaires presentes par les membres
7. Proclamation
7. Proclamation
9. Public Hearings
9. Audiences publiques
10. Consideration of By -laws
10. Etude des arretes municipaux
11. Submissions by Council Members
11. Interventions des membres du conseil
12. Business Matters - Municipal Officers
12.1 Commissioner of Finance and Administrative Services: 2011 Outstanding
Contributions re: Pension Plan Going Concern Unfunded Liability
13.3 Committee of the Whole: March 26th, 2012 Meeting of Council Motion to
Amend January 31, 2012 Resolution of Council re Outstanding Contributions re
Pension Plan Going Concern Unfunded Liability
Responding to a question, Mr. Yeomans explained that the outstanding contributions for
the pension plan going concern unfunded liability relates to the city's 2011 financial
statements. He noted that in July 2011, following a meeting with the Superintendent of
Pensions, he advised Council that based on the 2009 actuarial valuation the City would
have a pension funding shortfall of over $8,000,000. He indicated that the City had been
making monthly payments of $507,050 towards the shortfall, which he explained is
significantly less than the amount required to address the deficit.
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COMMON COUNCIL /CONSEIL COMMUNAL
APRIL 2, 2012/LE 2 AVRIL 2012
Mr. Yeomans advised that the outstanding unfunded pension liability generates a budget
deficit for 2011, noting that $8,700,000 will be brought forward as the first charge in the
City's 2013 operating budget. He further explained that because the City did not build
the $8,700,000 into the 2011 operating budget, it has requested a special loan from the
Province. He reminded Council that the city has statutory obligation to make the
outstanding payments to the pension plan.
Councillor Sullivan called a point of order stating that debate was taking place without a
motion on the floor. The Mayor suggested that Council move a motion to receive the
submitted report for information.
On motion of Councillor Titus
Seconded by Councillor McGuire
RESOLVED that the report from the City Solicitor
entitled March 26, 2012 Meeting of Council Motion to Amend January 31, 2012
Resolution of Council re Outstanding Contributions re Pension Plan Going Concern
Unfunded Liability, be received for information.
Responding to a question, Mr. Yeomans stated that the City's request for a special loan
from the Province would allow the City to make payments over a number of years rather
than in a lump sum, adding that funds have been allocated in the 2012 budget for said
payments.
Mr. Yeomans stated that the unfunded pension liability payment for 2011 is $13,193,800,
noting that he had made a calculation in January 2012 showing that the city owed
approximately $7,900,000 plus interest. He explained that his calculation contained an
error in relation to the estimation of arrears, adding that the error included payments that
were made in January, February and March of 2011, which pertained to 2010.
Councillor Sullivan called a point of order, stating that motion on the floor is to receive for
information the Solicitor's report, noting that debate was taking place on other topics.
The Mayor requested that the solicitor outline the legal opinion contained in the report.
Ms. Tompkins reviewed the submitted report with Council members, noting that the
following motion put before Common Council on March 26, 2012, was in fact adopted by
Council on a 7 -2 vote:
"RESOLVED that the resolution adopted by Common Council at its open
session meeting held on January 30, 2012, dealing with special payments to the City of
Saint John Pension Fund, as well as a request to the Province for an associated loan
and permission to defer special payments over a period not to exceed 10 years, be
amended as follows:
1. The figure "$7,900,000.00" each time it appears be deleted and in each such
case the figure "$8,699,453.00" be substituted; and
2. The figure $12,800,000.00 be deleted and the figure $13,600,000.00 be
substituted."
Ms. Tomkins further explained that the Commissioner of Finance is accordingly
authorized to proceed as described in said resolution.
Question being taken, the motion was carried with Councillor Higgins
voting nay.
(Councillor Titus withdrew from the meeting)
12. Affaires municipales evoquees par Iles fonctionnaires municipaux
12.1 Commissaire aux services financiers et administratifs : Contributions
impayees du regime de retraite 2011 — Passif a long terme non capitalise du
regime de retraite
13.3 Comite plenier : Proposition de la seance du conseil du 26 mars 2012
visant a modifier la resolution du conseil du 31 janvier 2012 intitulee Contributions
impayees — Passif a long terme non capitalise du regime de retraite.
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COMMON COUNCIL /CONSEIL COMMUNAL
APRIL 2, 2012/LE 2 AVRIL 2012
En reponse a une question, M. Yeomans explique que les contributions impayees au
passif a long terme non capitalise du regime de retraite ont trait aux etats financiers de
la Ville pour 2011. II fait remarquer qu'en juillet 2011, a la suite d'une reunion avec le
surintendant des pensions, it a informe le conseil que, selon I'evaluation actuarielle de
2009, la Ville enregistrerait un financement deficitaire de la caisse de retraite de plus de
8 000 000 $. II indique que la Ville effectue des paiements mensuels de 507 050 $ pour
rembourser le deficit et explique que ce montant est bien inferieur a celui qui est
necessaire pour combler le deficit.
M. Yeomans indique que le passif impaye non capitalise du regime de retraite genere un
deficit budgetaire pour 2011 et ajoute qu'une somme de 8 700 000 $ sera reportee a
titre de premier debit dans le budget de fonctionnement de 2013 de la Ville. En outre, it
explique que, comme la Ville n'a pas incorpore la somme de 8 700 000 $ dans le budget
de fonctionnement de 2011, elle a demande un pret special a la province. II rappelle au
conseil que la Ville est legalement tenue d'effectuer les versements impayes au regime
de retraite.
Le conseiller Sullivan souleve une objection, indiquant que le debat se deroule sans
qu'une proposition ait ete deposee. Le maire suggere au conseil de presenter une
proposition demandant I'acceptation du rapport soumis a titre informatif.
Proposition du conseiller Titus
Appuyee par le conseiller McGuire
RESOLU que le rapport de l'avocat municipal
intitule Proposition de la seance du conseil du 26 mars 2012 visant a modifier la
resolution du conseil du 31 janvier 2012 intitulee Contributions impayees — Passif a long
terme non capitalise du regime de retraite soit accepte a titre informatif.
En reponse a une question, M. Yeomans declare que la demande de pret special
presentee par la Ville a la province permettrait a la Ville d'effectuer des paiements sur
plusieurs annees plutot qu'en montant unique. II ajoute que des fonds ont ete alloues
pour lesdits paiements dans le budget de 2012.
M. Yeomans declare que le paiement du passif non capitalise du regime de retraite pour
2011 s'eleve a 13 193 800 $, ajoutant que les calculs qu'il a effectues en janvier 2012
affichent une dette de la Ville d'environ 7 900 000 $, plus l'interet. II explique qu'une
erreur dans 1'estimation des arrieres s'est glissee dans ces calculs et ajoute que cette
erreur portait sur des paiements effectues en janvier, fevrier et mars 2011, qui relevaient
de 1'exercice 2010.
Le conseiller Sullivan soul "eve une objection, indiquant que la proposition presentee
consiste a accepter le rapport de l'avocat a titre informatif et faisant remarquer que le
debat porte sur d'autres sujets. Le maire demande a l'avocat de decrire dans les
grandes lignes l'avis juridique figurant au rapport.
Mme Tompkins examine le rapport soumis, faisant remarquer que la proposition suivante,
presentee devant le conseil communal le 26 mars 2012, a ete en fait adoptee par le
conseil par un vote de 7 a 2
RESOLU que la resolution adoptee par le conseil communal a sa seance publique du
30 janvier 2012, concernant les paiements speciaux verses au regime de retraite de The
City of Saint John ainsi que la demande de pret connexe presentee a la province et
accompagnee d'une demande de permission de report des paiements speciaux sur une
periode ne devant pas depasser dix ans, soit modifiee comme suit
1. le montant 7 900 000 $, chaque fois qu'il apparait, est remplace par le montant
8 699 453 $;
2. le montant 12 800 000 $ est remplace par le montant 13 600 000 $.
Mme Tompkins ajoute que le commissaire aux finances est par consequent autorise a
proceder comme it est indique dans ladite resolution.
A ('issue du vote, la proposition est adoptee. La conseillere Higgins vote
contre la proposition.
(Le conseiller Titus quitte la seance.)
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COMMON COUNCIL /CONSEIL COMMUNAL
APRIL 2, 2012/LE 2 AVRIL 2012
13. Committee Reports
13.1 Committee of the Whole: Capital Budget for Fit -up and Occupancy of the
New Police Headquarters Facility
On motion of Councillor McGuire
Seconded by Councillor Court
RESOLVED that as recommended by Committee
of the Whole the budget of $1,995,000 (net of HST) for the fit -up and occupancy budget
of the new Police Headquarters facility be approved and responsibility to administer the
budget be assigned to the Saint John Board of Police Commissioners.
Councillor Higgins stated that she cannot support the motion due to the City's current
financial situation.
Question being taken, the motion was carried with Councillor Higgins
voting nay.
13. Rapports deposes par les comites
13.1 Comite plenier : Budget d'immobilisations pour I'amenagement et
('occupation du nouveau quartier general du Service de police
Proposition du conseiller McGuire
Appuyee par le conseiller Court
RESOLU que le comite plenier recommande que le
budget de 1 995 000 $ (TVH non comprise) pour I'amenagement et ('occupation du
nouveau quartier general du Service de police soit approuve et que la responsabilite
d'administrer le budget soit attribuee au Bureau des commissaires de la police de
Saint John.
La conseillere Higgins indique qu'etant donne la situation financiere actuelle de la Ville,
elle ne peut appuyer la proposition.
A ('issue du vote, la proposition est adoptee. La conseillere Higgins vote
contre la proposition.
13.2 Pension Board of Trustees: Response to Minister Blaine Higgs' Comments in
Telegraph Journal
Responding to a question, Mr. Yeomans stated that the letter from the Pension Board
was submitted to Council for information purposes only, noting that it was also sent to
the media.
On motion of Councillor McGuire
Seconded by Councillor Sullivan
RESOLVED that the submitted letter dated April 2,
2012 and attachments from the Pension Board of Trustees entitled Response to Minister
Higgs' comments in the Telegraph Journal, be received for information.
Question being taken, the motion was carried.
13.2 Conseil d'administration du regime de retraite : Reponse aux commentaires
du ministre Blaine Higgs dans le Telegraph- Journal
En reponse a une question, M. Yeomans indique que la lettre provenant de la
Commission du regime de retraite a ete soumise au conseil a titre informatif seulement,
ajoutant qu'elle a egalement ete envoyee aux medias.
Proposition du conseiller McGuire
Appuyee par le conseiller Sullivan
RESOLU que la lettre soumise en date du 2 avril,
2012, accompagnee des pieces jointes, provenant de la Commission du regime de
retraite et intitulee Reponse aux commentaires du ministre Blaine Higgs dans le
Telegraph- Journal, soit acceptee a titre informatif.
A ('issue du vote, la proposition est adoptee.
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COMMON COUNCIL /CONSEIL COMMUNAL
APRIL 2, 2012/LE 2 AVRIL 2012
14. Consideration of Issues Separated from Consent Agenda
14. Etude des sujets ecartes des questions soumises a I'approbation du
conseil
15. General Correspondence
15. Correspondance generale
16. Adjournment
The Mayor declared the meeting adjourned at 6:35 p.m.
16. Levee de la seance
Le maire declare que la seance est levee a 18 h 35.
Mayor / maire
Common Clerk / greffiere communale