Update on the Status of the Implementation

of the Additional $9.00 in Court Costs

The Corporate Services Committee recommends the adoption of the report (March 11, 1999) from Chief Financial Officer and Treasurer, subject to:

(i)amending Recommendations Nos. (1) and (3) by adding thereto the following, "but in no case shall the City agree to pay a transaction data fee greater than that authorized by the Management Board of Cabinet on April 14, 1997", so that Recommendations Nos. (1) and (3) now reads as follows:

"(1)a Letter of Understanding, in terms and conditions acceptable to the Chief Financial Officer and Treasurer, and the City Solicitor, be entered into between the City and the Ministry of Transportation relating to the cost split of the $9.00 in additional court costs, but in no case shall the City agree to pay a transaction data fee greater than that authorized by the Management Board of Cabinet on April 14, 1997";

"(3)the City enter into an Authorized Requester Agreement with the Ministry of Transportation in terms acceptable to the Chief Financial Officer and Treasurer, and City Solicitor, but in no case shall the City agree to pay a transaction data fee greater than that authorized by the Management Board of Cabinet on April 14, 1997"; and

(ii)amending Recommendation No. (4) by adding after the word "costs" the following "and prior to any further negotiations with regard to the rent, the Province be required to establish a fixed date when the Province will vacate City Hall", so that Recommendation No. (4) now reads as follows:

"(4)the lease negotiations for Old City Hall be continued separately from the negotiations of the cost split of the additional $9.00 in court costs, and prior to any further negotiations with regard to the rent, the Province be required to establish a fixed date when the Province will vacate City Hall."

The Corporate Services Committee reports, for the information of Council, having requested the Chief Financial Officer and Treasurer, to review the feasibility to access the data only once rather than the current practice of accessing the data twice, and submit a report thereon to the Corporate Services Committee.

The Corporate Services Committee submits the following report (March11, 1999) from the Chief Financial Officer and Treasurer:

Purpose:

To report further 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:

The Parking Tag Operations Unit of Finance has collected $384.7 thousand in the additional $9.00 in court costs from July 1, 1998, to February 28, 1999. These funds have been withheld from payment until such time as an agreement between the City and the Ministry of Transportation relating to the cost split of the Municipal Data Access fee has been reached, and Council authorizes the Chief Financial Officer and Treasurer to pay the amounts owing for the fees.

Recommendations:

It is recommended that:

(1)a Letter of Understanding, in terms and conditions acceptable to the Chief Financial Officer and Treasurer, and the City Solicitor, be entered into between the City and the Ministry of Transportation relating to the cost split of the $9.00 in additional court costs;

(2)the Municipal Data Access fees agreed upon in the Letter of Understanding be paid to the Ministry of Transportation;

(3)the City enter into an Authorized Requester Agreement with the Ministry of Transportation in terms acceptable to the Chief Financial Officer and Treasurer, and City Solicitor;

(4)the lease negotiations for Old City Hall be continued separately from the negotiations of the cost split of the additional $9.00 in court costs; and

(5)the appropriate officials be authorized and directed to take necessary action to give effect thereto.

Council Reference/Background History:

At its meeting on July 8, 9 and 10, 1998, City Council adopted, as amended, Clause No. 33 of Report No. 9 of The Corporate Services Committee, headed "Increased Court Costs for Parking Tag Convictions".

Council amended the clause by adding a recommendation which instructed the Chief Financial Officer and Treasurer not to pay the additional $9.00 in court costs.

Discussion:

In accordance with the instructions of Council, the Parking Tag Operations Unit of Finance collected the additional court costs and placed the funds into a liability account awaiting further instructions. As of February 28, 1999, more than $384.0 thousand has been collected.

Discussions and negotiations between Finance staff and the Ministry of Transportation staff continued. The two sides are now close to an agreement. The terms of the agreement include an increased share of the $9.00 which, based on work volumes to date, will recover the additional costs incurred by the Parking Tag Operations Unit to collect the additional court costs. The Ministry of Transportation has also agreed that should the City show an increase in operating costs, the Ministry will increase the City's share of the court costs to ensure that there is no net cost to the City. It is now appropriate that the restrictions placed on the Chief Financial Officer and Treasurer be lifted in order to complete the negotiations and enter into a Municipal Data Access agreement with the Ministry.

Conclusion:

In order to complete the negotiations, it is necessary to remove the restrictions placed on the Chief Financial Officer and Treasurer relating to the $9.00 in additional court costs. It is therefore recommended that a Letter of Understanding, in terms and conditions acceptable to the Chief Financial Officer and Treasurer, and the City Solicitor, be entered into between the City and the Ministry of Transportation relating to the cost split of the $9.00 in additional court costs. It is also recommended that the Municipal Data Access fees agreed upon in the Letter of Understanding be paid to the Ministry of Transportation. As well, it is recommended that the City enter into an Authorized Requester Agreement with the Ministry of Transportation in terms acceptable to the Chief Financial Officer and Treasurer, and City Solicitor. This agreement will supercede the Letter of Understanding.

Due to the fact that a tentative agreement has been reached between the City and the Ministry of Transportation, it is now appropriate that the negotiations on the lease of Old City Hall be separated from the negotiations surrounding the additional $9.00 in court costs. It is therefore recommended that the lease negotiations for Old City Hall be continued separately from the negotiations of the cost split of the additional $9.00 in court costs.

Contact Name and Telephone Number:

Bryan Kerr

Manager, Provincial and Parking Offences

Telephone:(416) 392-5880

Fax:(416) 397-9577.

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Councillor Howard Moscoe, North York Spadina, appeared before the Corporate Services Committee in connection with the foregoing matter.