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2003-09-29_Minutes--Procès-verbal September 29, 2003 Minutes of the Committee of the Whole Meeting Open to the Public, Monday, September 29,2003, at 5:00 o'clock p.m. present Mayor McAlary Deputy Mayor White and Councillors, Chase, Desmond, Fitzgerald, Fitzpatrick, Teed, Titus and Trites - and - Messrs. 1. Totten, City Manager; J. Nugent, City Solicitor; A Beckett, Commissioner of Finance and Commissioner of Corporate Services; P. Woods, Common Clerk and Deputy City Manager, and Ms. E. Gormley, Assistant Common Clerk. Other staff members present during the meeting were Messrs. P. Groody, Commissioner of Municipal Operations; J. Baird, Commissioner of Planning and Development; B. Cogswell, Chief of Police, R. Simonds, Fire Chief, A Bodechon, Deputy Chief of Police; B Reed, Acting Inspector; B. Morrison, Director of Recreation and Parks; S. Galbraith, Director of Works; B. Malone, Manager of Planning & Policy, Police Department; and Ms. S. Greer, Communications Officer. 1. MeetinQ Called To Order The Mayor called the meeting to order and offered the opening prayer. The Mayor recognized Abel Leblanc, MLA, members of the Police Force, representatives and members of CUPE locals and retirees, and members of the Board of Trustees of The City of Saint John Pension Plan present in the Chamber. 2. Presentation - Saint John Board of Police Commissioners. Mr. Ed Keyes, Chair of the Saint John Board of Police Commissioners, Police Chief Cogswell and Deputy Police Chief Bodechon delivered a slide presentation based on a submitted report to Council on the Saint John Police Force 2004 Operating Budget. They spoke about budget cuts to the Force which included reductions in human resources over the last three years, and the need to sustain the Force at the present level in order to maintain an adequate level of service. Reference was made to the "Pop-to-Cop Ratio", (Population to Police Officer Ratio) as an inadequate measure in determining staffing requirements for police staff given the complexity of policing in today's world. Statistics and other information were presented to demonstrate that there are ever increasing demands placed on the Force in general, and on police officers in particular, in the form of community policing and partnerships, increased crime, and changing nature of criminal activity, such as organized and internet crime placing increasing demands and more specifically increased caseloads on the Police Force. It was noted that there are indicators which demonstrate a correlation between the Force's decrease in success rate when dealing with crime and the increase in caseload, adding that the Saint John CMA (region) as quoted from Statsistics Canada's Juristat, as the CMA with the largest increase in 2002 crime rates across Canada, at 18%. 2003-30 Public Committee of the Whole September 29, 2003 As described by the presenters, the Police Force has been consistent in its efforts to maintain a high level of service with the budget reductions while managing change. They noted that some of the consequences of the changes are already evident in the form of backlogs of calls for service, inability to respond to calls, patrol officer burn-out, while predicting further consequences such as decreased officer safety, increased risks to persons and property, and erosion of management/union relations. As part of the change management challenge, reference was made to increasing needs of seniors as the population ages, as well as the introduction of the Youth Criminal Justice Act, and downloading of responsibilities from other levels of government requiring the Force to increase the resources dedicated to those areas. Mr. Keyes requested Council to maintain the current police establishment, and approve the submitted budget for 2004 in the amount of $16,208,940. Councillor Chase questioned why regional statistics were used in the presentation as opposed to only Saint John statistics to which the Deputy Police Chief responded that the numbers are from the Statistics Canada report based on information provided by the Saint John Force noting that the trends in the report would still be the same if Saint John statistics had been used. He advised that Saint John has a higher incidence of crime than the bedroom communities. The Deputy added that policing is done not only in Saint John proper, but in the Greater Saint John area as criminals reach across local boundaries. Councillor Chase stated his preference for a regional police force with surrounding communities with the Deputy noting that they work closely with the other Police Forces in the surrounding areas, but that a study has not been done on this issue. Councillor Chase commented that he is not content with the proposed budget which would maintain the status quo and asked for any ideas that could be entertained to realign strategically to address the challenges outlined in the presentation. The Deputy Mayor asked if there are problems associated with the introduction of the Youth Criminal Justice Act to which the Deputy Police Chief responded that the program is too new to arrive at a definite conclusion. Councillor Teed commended the Force for paying attention to seniors, adding that when referring to the loss of 30 positions it should be noted that the Sherrif's office has picked up some duties previously handled by the Police. Councillor Titus advised the Police Board to look at some models with a flat budget in anticipation of Council's response. On motion of Councillor Titus Seconded by Deputy Mayor White RESOLVED that the Saint John Police Force 2004 Operating Budget be referred to Budget Deliberations. Question being taken, the motion was carried. 2003-31 Public Committee of the Whole September 29, 2003 6 & 7 Staffing Issue 10.2(4)0) and Property Issue 10.2(4)(d). On motion of Councillor Fitzpatrick Seconded by Councillor Desmond RESOLVED that items 6 and 7 be referred to Committee of the Whole Closed Session on October 6, 2003. Question being taken, the motion was carried. 3. Presentation - Saint John Boys' and Girls' Club. Carl White, President of the Saint John Boys' and Girls' Club introduced Debbie Cooper, Executive Director and Debbie Rignanesi, Treasurer, and opened the presentation with introductory remarks. Ms. Cooper, referring to a submitted report, spoke of the mission and values of the Club, the programs offered and the programming growth experienced in the Boys' and Girls' Club in the last year. She also spoke of the children served noting that 58% of their members live in single parent families, with most of these children living in poverty. The success of the partnership with the South End Community Centre was noted and challenges presented, specifically the cost of building upkeep, increasing costs of van, bus repairs and insurance costs and underpaid staff. Ms. Rignanesi, also referring to the submitted report, outlined the financial situation of the Club, noting that the Club is projecting an accumulated $5,000. deficit assuming that the City fund the Club as requested. She explained that the funding from the City is crucial to its operation, and that the Club is exploring ways to decrease its dependency on the City, as well as operating with the utmost fiscal restraint. She summarized by requesting that the City approve $92,000., $32,500 for the Boys' and Girls' Club and $59,500. for the operation of the South End Community Centre. Mayor McAlary recalled previous discussions around the idea of the Club taking on other Centres' operations in the City with Mr. White responding that they would be looking at that concept for the future, but they are not prepared to proceed in that direction at this time. On motion of Councillor Fitzpatrick Seconded by Councillor Titus RESOLVED that the Saint John Boy' and Girls' Club 2004 Operating Budget be referred to Budget Deliberations. Question being taken, the motion was carried. 4. Presentation - Locals 18, 61, 486, 771 and Retirees. Elizabeth Chisholm, Treasurer of Local 61 of the Saint John Police Protective Association and Sergeant with the Saint John Police Force submitted a revised report to Council and delivered the presentation on behalf of CUPE Locals 18, 61, 486, 771 (IAFF) and Retirees. She noted a number of concerns as follows: 2003-32 Public Committee of the Whole September 29, 2003 That a valuation of the Pension Plan was completed in December, 2000 rather than in 2003, the date which is the legal requirement. That the valuation considered the data from 2001 and 2002, among the worse years for investment returns, instead of including 2003 which would have shown more favorable results. That there was a movement from the "smoothing technique" to a 1 year market return value reporting method for January 1, 2003. The method used has an impact on results and should be presented to the Board of Trustees for consideration. That the valuation was not done by an Actuary of the Pension Plan on behalf of the Trustees which would have allowed for the Board to choose the best method and assumptions for the valuation. That the release of the information to the public was untimely and should not have occurred without consultation with the Board, and raises conflict of interest issues. This is outlined in a submitted letter from K. Paul Duxbury, Actuary. Mr. Chuck Hickey reviewed the issue of solvency and presented statistics comparing the City's contribution to the pension plan with several other municipalities in New Brunswick. He expressed the opinion that the Province of New Brunswick should remove the solvency valuation, noting that the Province as an employer and as a plan sponsor is not required to do a solvency valuation, and requested that Council organize a delegation of representatives of all municipalities to meet with Government and the Opposition to remove the solvency requirement for Cities. He commented that the present in-house disability plan has to be reviewed suggesting that round table discussions and information sharing is advisable. He expressed his discontent with the comparison made between the number of disabilities of City workers with industry average, advising that some employees cannot refuse unsafe or dangerous work like other workers, also making reference to the number of cutbacks in human resources causing greater workloads and increased stress limits. Mr. Hickey concluded his presentation by requesting Council to follow the rules established by the law in terms of the date of doing an actuarial valuation and in terms of working with the trustees of the Pension Plan. Mayor McAlary commented that the City is the sponsor of the Pension Plan and that it is the responsibility of the City to have up-to-date knowledge of the state of the plan, and added that the valuation was requested for the benefit of Council. Councillor Chase expressed his concern with the appearance of untimely information to the public, which may have resulted in pitting City employees against the taxpayers. Councillor Court noted that there is money owed to the employees' pension fund and indicated his dismay that there were not more MLA's present to assist with this problem. He supported the concept of a delegation of the Cities to approach the Province requesting the elimination of the solvency requirement. Councillors Desmond and Trites agreed with Councillor Court's statements, with Councillor Trites adding that the problem is not only the solvency issue, but a problem of going concern ($46,000,000.deficit at the end of 2003). 2003-33 Public Committee of the Whole September 29, 2003 Councillor Teed concurred with the three requests of the Union Locals, that of Council working together with union locals and retirees and the Board of Trustees to find solutions; lobbying Government to make changes in the Pension Act which would give the City the same freedom as the Provincial Government, and organizing a delegation of all municipalities to request the Province to eliminate the solvency requirement. Councillor Titus commented that he believes there is a problem with the Pension Plan, other than the solvency issue, that must be addressed by either reducing benefits or increasing contributions, or a combination of both. He also requested confirmation on the deadline date for filing of the valuation report, noted as approximately Dec. 2004, as described in the submitted letter from Actuary, K. Paul Duxbury. Councillor Fitzpatrick suggested that rather than paying interest to financial institutions on borrowed money, the City should explore the option of borrowing from the Pension Plan and paying interest to the Plan. Deputy Mayor White suggested that all parties work collectively to gather more information and consider all options before acting. On motion of Councillor Titus Seconded by Deputy Mayor White RESOLVED that the Presentation of CUPE Locals 18, 61,486, IAFF Local 771 and Retirees, and Item # 5, the report from the City Manager outlining the issue of the City's Pension Plan funding be referred to the Pension Board for discussion and response. Question being taken, the motion was carried. 5. City of Saint John Employee Pension Plan (deferred September 15, 2003). This item was referred to the Pension Board for discussion and response at item # 4 above. 6. Staffing Issue 10.2(4)0). This item was referred to Committee of the Whole Closed Session, October 6, earlier in this meeting. 7. Property Issue 10.2(4)(d). This item was referred to Committee of the Whole Closed Session, October 6, earlier in this meeting. The meeting adjourned with the Mayor advising that the regular session of Council would be October 6,2003 at 7:00 p.m. Common Clerk