August 28, 1998

To:Corporate Services Committee

From:Chief Financial Officer and Treasurer

Subject:Report on the Status of the Implementation of the Additional $9.00 in Court Costs

Purpose:

To report on the status of the implementation of the additional $9.00 in court costs and the associated financial implications.

Funding Sources, Financial Implications and Impact Statement:

Council previously considered and approved a request for additional funding of up to $350,000 from corporate contingency to upgrade the existing Parking Tag Management System server, software and peripherals due to the additional users served and for the recording and collection of the $9.00 in increased court costs. As well, the initial and on-going costs were to be included in the calculations related to cost recovery. To date, the minimal expenditures (less than $1,000.00) have been paid from existing operating funds. A further report to the Committee will be made once the effect of the increased court costs is realized and the additional 1998 expenditures can be determined. As of August 31, 1998, no convictions containing the additional court costs have been made. It is expected that the first Notices of Fine and Due Date including the $9.00 will be made in mid-September 1998.

Recommendation:

It is recommended that this report be received for information.

Council Reference/Background History:

City Council, at its meeting on July 8, 9 and 10, 1998, adopted, as amended, Clause No. 33 of Report No. 9 of the Corporate Services, headed "Increased Court Costs for Parking Tag Convictions". The Chief Financial Officer and Treasurer was requested to report back to the Corporate Services Committee as soon as feasible as to the status and financial implications of the implementation of the additional $9.00 in court costs. As well, a report on the responses of the Government of Ontario to the communication sent by the Chair of the Corporate Services Committee, on behalf of Council. As of the Committee agenda deadline, no formal response has been received from the Minister of Transportation.

While the full financial implications of the increase in court costs are not known at this time, it is imperative that the Committee and Council remain informed as to the status of the negotiations surrounding the implementation as well as the financial impact.

Discussion:

Ontario Regulation 945 was amended to increase court costs by $9.00 for parking tags issued on or after July 1, 1998, and Ontario Regulation 949 was amended effective the same date to assign these court costs to the municipalities. Under these regulations, the City will collect the additional court costs and once Council approval is received to enter into an agreement to remit the data access fees to the Ministry of Transportation (MTO), City staff will remit the agreed upon portion of the additional court costs to MTO.

While it is still too soon to determine the complete financial implications of this increase, Parking Tag Operations (PTO) staff are continuing discussions with Ministry of Transportation staff regarding the implementation and cost sharing issues. Changes to the Parking Tag Management System have already been made to inform, via the issuance of a Notice of Impending Conviction (NIC), persons who have not paid their parking tags that the court costs, on conviction, will be $16.00 rather than $7.00. The modified NIC's were sent out only for parking tags issued on and after July 1, 1998. The first convictions for those tags will occur in early September. PTO staff are also in the process of finalizing the requirements for the further systems changes and upgrades required.

It is expected that the impact of the additional court costs will be felt in mid-September with the full impact not realised until the end of 1999 when the plate renewal cycle is completed for persons convicted for tags issued on and after July 1, 1998.

On August 19, 1998 the Chair of the Corporate Services Committee and City staff met with MTO representatives to discuss the City's concerns regarding the implementation of the additional $9.00 in court costs. As a result of that meeting, a letter was sent to MTO outlining opportunities for improved operational efficiencies within the Parking Tag Operations Unit which could possibly improve the collection rate of outstanding parking fines.

Without committing the City to any of the following, MTO was requested to consider the following opportunities and requirements:

-a commitment to work together to negotiate with the Ministry of the Attorney General (MAG) changes to the regulations regarding acceptance by the Court and the judiciary of an electronic certificate of ownership rather than the 'hard copy' certificate which is required at present;

-a commitment from MTO to review the cost sharing breakdown of the additional $9.00 in court costs within one year as opposed to the three years initially proposed;

-the implementation of a a phased in 'stepped' cost sharing breakdown that provides for an initial higher share than initially proposed by MTO for the City to recover initial start-up costs which, over time, would increase the MTO share to the proposed amount of $8.75;

-investigate the possibility of obtaining funding for the City's start-up costs from the 'Who Does What' transition fund;

-agreement on the process whereby the City or a collection agency would attempt to collect unpaid fines by mailing an additional notice to persons convicted prior to plate denial;

-sign a letter of understanding regarding the implementation of Electronic Data Transfer for name and address requests from the City prior to the signing of the 'Authorized Requester Agreement';

-provide access for selected staff in the Parking Tag Operations Unit to the MTO vehicles and drivers systems to assist in the fine collection process;

-provide access for selected staff in the Parking Tag Operations Unit to the MTO disabled permit data base to assist in the reduction in the misuse of disabled parking permits;

-a commitment to work together to negotiate with the Ministry of the Attorney General to increase the City's share of court costs related to parking fines by an amount that would more appropriately cover the City's additional expenses; and

-investigate the possibility of obtaining access to name and address information of other than Ontario vehicle plate owners names and addresses (e.g. Quebec, New York State, etc.)

As of the Committee agenda deadline, no response has been received.

Conclusion:

As stated above, the first impact of the implementation of the additional $9.00 in court costs will not be felt until mid-September. The full impact will not be felt until at least the end of 1999 when the plate renewal cycle for persons receiving tags after July 1, 1998 is complete. A further status report will be submitted to this Committee at its November meeting.

Contact Name and Telephone Number:

Bryan Kerr

Manager, Provincial and Parking Offences

Telephone:(416) 392-5880

Fax:(416) 397-9577

E-mail:bryan_a._kerr@metrodesk.metrotor.on.ca

W. A. Liczyk

Chief Financial Officer and Treasurer