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                                       THE CITY OF TORONTO
                                        Clerk's Department
                          Minutes of the Economic Development Committee
                                          Meeting No. 3

                                                                      Thursday, February 18, 1999.


               The Economic Development Committee met on Thursday, February 18, 1999, in
               Committee Room 1, 2nd Floor, City Hall, Toronto, commencing at 10:15 a.m.

               Members Present:

                              Councillor Brian Ashton, Chair
                              Councillor Raymond Cho
                              Councillor Rob Davis
                              Councillor Mario Giansante
                              Councillor Douglas Holyday
                              Councillor Norman Kelly
                              Councillor Joan King
                              Councillor Jane Pitfield
                              Councillor Mario Silva
                              Councillor Mike Tzekas


               No Declarations of Interest pursuant to the Municipal Conflict of Interest Act
               were declared. 


3.1            Harmonization of User Fees

               The Economic Development Committee had before it the report (February 10, 1999)
               from the Commissioner of Economic Development, Culture and Tourism, recommending:

               (1)     that the Economic Development Committee provide direction on a preferred
                       option for a new harmonization user fee policy as outlined in this staff
                       report;

               (2)     that this report be forwarded to the Budget Committee with the Economic
                       Development Committee recommendations for their consideration in the 1999
                       Budget Process; and

               (3)     that the Commissioner of Economic Development, Culture & Tourism, be
                       authorized to implement harmonized rates in keeping with the Council
                       decision on this matter.

               The Economic Development Committee also had before it the following
               reports/communications:

               -       (November 25, 1998) from the City Clerk, forwarding to the Economic
                       Development Committee the action of the User Fee Committee on November 24,
                       1998, with recommendations;
               -       (December 10, 1998) from Anne Dubas, President, CUPE Local 79;

               -       (December 10, 1998) from the City Clerk, North York Community Council,
                       forwarding the action taken by the North York Community Council at its
                       meeting on December 10, 1998;
               -       (January 12, 1999) from Maureen Boulter, Chairperson, Lakeshore Area Multi-
                       Services Project Inc. (LAMP);
               -       (January 12, 1999) from Jasmin Earle, Chair, The Etobicoke Brighter Futures
                       Coalition;
               -       (January 15, 1999) from Hordofa Guysa, President, Oromo Canadian Community
                       Association in Ontario;
               -       (February 2, 1999) from Councillor Olivia Chow, Chair, Youth Subcommittee
                       of the Children and Youth Action Committee;
               -       (February 10, 1999) from Cal Lorimer, Toronto;
               -       (February 11, 1999) from Councillor Tom Jakobek, Chair, Budget Committee,
                       and Councillor George Mammoliti, Chair, User Fee Committee;
               -       (February 11, 1999) from Councillor Norm Kelly, Scarborough Wexford;
               -       (February 12, 1999) from Anne Dubas, President, CUPE Local 79;
               -       (February 12, 1999) from Joy Connelly, Toronto;
               -       (February 12, 1999) from Maureen P. Boulter, Lakeshore Area Multi-Services
                       Project Inc. (LAMP);
               -       presentation material (February 12, 1999) from the Commissioner of Economic
                       Development, Culture & Tourism;
               -       (February 12, 1999) from Bill Worrell, on behalf of Karen Savage;
               -       (February 10, 1999) from Deany Peters, Community Health Worker, Regent Park
                       Community Health Centre;
               -       (February 12, 1999) from Doreen Lalor, Toronto;
               -       (February 7, 1999) from Mandy Mack on behalf of Lincoln Lopez, York
                       Hispanic Centre, Toronto;
               -       (Undated) from Mandy Mack, York Hispanic Centre, Toronto;
               -       (February 12, 1999) from Doug Hum, Children s Aid Society of Toronto;
               -       (February 12, 1999) from Donald J. Stewart, Toronto;
               -       (February 12, 1999) from Myra Lewis, Toronto;
               -       (February 12, 1999) from Karen Wirsig, Community Social Planning Council of
                       Toronto;
               -       (February 17, 1999) from Darlene Varaleau; and
               -       (February 18, 1999) from Councillor McConnell.

               The following persons addressed the Economic Development Committee in connection
               with the foregoing matter:

               -       Councillor Chow;
               -       Councillor Jones;
               -       Councillor Korwin-Kuczynski;
               -       Councillor Mammoliti; and
               -       Councillor Nunziata.

                       The Economic Development Committee forwarded the matter of selecting a
                       preferred option for a new harmonization user fee policy to the Budget
                       Committee without recommendation for consideration in the 1999 budget
                       process, and:

                       A.     Councillor Kelly moved that:

                               recommendations (1), (3), (4) and (5) of the User Fee
                              Committee contained in the communication (November 25, 1998)
                              from the City Clerk be adopted, viz:

                                       (1)   (a)     Policy Principles

                                                     -      Recreation programs are important
                                                            municipal services which contribute
                                                            significant personal, social,
                                                            economic and environmental benefits
                                                            which enhance the well-being of
                                                            Toronto citizens, their
                                                            neighbourhoods and the local economy;
                                                     -      the City of Toronto shall ensure all
                                                            residents year-round accessibility to
                                                            high quality community recreation and
                                                            leisure programs regardless of their
                                                            ability to pay;
                                                     -      the City of Toronto shall ensure
                                                            equity and fairness to taxpayers and
                                                            contribute to the long term vitality
                                                            of public recreation services
                                                            provided by the City and the
                                                            voluntary and not-for-profit sectors;
                                                            and

                                                     -      the City of Toronto shall encourage
                                                            maximum opportunity for the
                                                            enjoyable, healthful, satisfying and
                                                            creative use of leisure time;

                                             (b)     Policy Elements

                                                     -      Client and taxpayers at the forefront
                                                            of pricing decisions ;
                                                     -      consistency City-wide;
                                                     -      quality service standards not
                                                            influenced by user fees;
                                                     -      accessibility strategies;
                                                     -      price based on benefits to user,
                                                            benefits to community and operating
                                                            costs; and
                                                     -      accountability;

                                             (c)     Implementation Guidelines

                                                     -      Establish list of services which do
                                                            not charge a user fee and are
                                                            available universally;
                                                     -      where a user fee is to be charged,
                                                            fees to be based on different levels
                                                            of cost recovery (10% to over 100%)
                                                     -      harmonize January 1999, followed by
                                                            stable price strategy to ensure
                                                            future adjustments are gradual;
                                                     -      establish effective measures to
                                                            provide access to low income
                                                            individuals and high need
                                                            communities;
                                                     -      monitor and adjust fees on an annual
                                                            basis prior to the submission of the
                                                            annual budget; and

                                                     -      utilize a variety of effective user
                                                            fee methods, including current
                                                            technologies to enhance customer
                                                            service (e.g. access  smart  card and
                                                            improved registration system);
                                      (3)    that the surcharge for programs and activities for
                                             participants outside the City of Toronto area be
                                             retained;

                                      (4)    that  high needs  communities be exempt from paying
                                             user fees for specialized programs;

                                      (5)    that an access policy be considered that would
                                             ensure low income families and individuals are not
                                             penalized;  

                              Councillor Silva voted in opposition to the adoption of the above
                              recommendations (1), (3), (4) and (5) of the User Fee Committee
                              contained in the communication (November 25, 1998) from the City
                              Clerk.

                       B.     Councillor King moved that:

                                       recommendation (8) of the User Fee Committee be deleted and
                                      replaced with:

                                             `(8)    the Commissioner of Economic Development,
                                                     Culture and Tourism report to the Economic
                                                     Development Committee on a process and means
                                                     respecting recreational permits.  

                       C.     Councillor King moved that:

                                       that the following motion placed by Councillor Silva be
                                      referred to the Commissioner for incorporation into the
                                      above-noted report:

                                             `that the Commissioner of Economic Development,
                                             Culture and Tourism examine the permit granting
                                             system to ensure that:

                                                     (a)    all users are primarily residents of
                                                            the City of Toronto;

                                                     (b)    users from outside the City of
                                                            Toronto pay higher fees to ensure
                                                            that Toronto taxpayers are not
                                                            subsidizing residents in the 905
                                                            area; and

                                                     (c)    permit holders not operating on a
                                                            strictly non-profit basis pay a
                                                            higher fee;

                                                     (d)    additional revenues that can be
                                                            gleaned from charging more money for

                                                            out-of-town permit users, or for-
                                                            profit permit users, be used to
                                                            enhance the range of free programs in
                                                            the City s recreation centres;
                                                     (e)    alternative sources of funding,
                                                            including sponsorships, are sought
                                                            and that the revenues derived from
                                                            those sources be applied to reducing
                                                            user fees.  

                       D.     Councillor Kelly moved that:

                                       recommendation (6) of the User Fee Committee be deleted and
                                      replaced with the following:

                                             `(6)    that net revenues accruing from user fees be
                                                     placed in the department s budget for Parks
                                                     and Recreation Division.  

                       E.     Councillor King moved that the Commissioner of Economic
                              Development, Culture and Tourism be requested to report to the
                              Economic Development Committee on:

                                      (a)    a review at the end of the first year of all the
                                             changes in demands and their impact on the capital
                                             and operating budget of his department as a
                                             consequence of harmonizing user fees.

                       F.     Councillor Davis moved that the Commissioner of Economic
                              Development, Culture and Tourism report to the Economic Development
                              Committee on:

                                      (b)    a review after the first year on the implementation
                                             of the program; 

                                      (b)    the best practice delivery system for delivering
                                             services to high needs; and

                                      (c)    all costs associated with the elimination of user
                                             fees for youth and seniors, such report to focus on
                                             increased demand and capital costs.

                       G.     Councillor King moved that the Commissioner of Economic
                              Development, Culture and Tourism be requested to  submit to Council
                              when this matter is being considered, a chart showing actual fees
                              for some specific introductory instructional programs related to
                              Option  E .

                       Councillor Kelly s motions (A) and (D) carried.

                       Councillor King s motions (B), (C), (E) and (G), carried.

                       Councillor Davis s motion (F) carried.

                       Councillor Silva made the following motion which lost on the following
                       division of votes:

                               That Option  A  and Recommendations (2) and (3) of the report
                              (February 10, 1999) from the Commissioner of Economic Development,
                              Culture and Tourism be adopted .
                       Yeas:  Councillor Silva -1
                       Nays:  Councillors Ashton, Cho, Davis, Giansante, Holyday, Kelly, King,
                              Tzekas - 8

                       Councillor Davis made the following motion which lost on the following
                       division of votes:

                               That Option  B  and Recommendations (2) and (3) of the report
                              (February 10, 1999) from the Commissioner of Economic Development,
                              Culture and Tourism be adopted .

                       Yeas:  Councillors Ashton, Davis, Tzekas - 3

                       Nays:  Councillors Cho, Giansante, Holyday, Kelly, King, Silva - 6

                       Councillor Holyday made the following motion which lost on the following
                       division of votes:

                               That Option  C  of the report (February 10, 1999) from the
                              Commissioner of Economic Development, Culture and Tourism be
                              adopted .

                       Yeas:  Councillor Holyday - 1

                       Nays:  Councillors Ashton, Cho, Davis, Giansante, Kelly, King, Silva,
                              Tzekas - 8

                       Councillor Cho made the following motion which lost on the following
                       division of votes:

                               That Option  D  of the report (February 10, 1999) from the
                              Commissioner of Economic Development, Culture and Tourism 
                              be adopted .

                       Yeas:  Councillor Cho - 1

                       Nays:  Councillors Ashton, Davis, Giansante, Holyday, Kelly, King, Silva,
                              Tzekas - 8

                       Councillor Giansante made the following motion which lost on the following
                       division of votes:

                               That the Alternate 2 - Revenue Neutral Option  E  be adopted, and
                              Recommendations (2) and (3) of the report (February 10, 1999) from
                              the Commissioner of Economic Development, Culture and Tourism be
                              adopted .

                       Yeas:  Councillors Giansante, Holyday, Kelly, King - 4

                       Nays:  Councillors Ashton, Cho, Davis, Silva, Tzekas - 5

                       Councillor Kelly made the following motion which lost on the following
                       division of votes:
                               That Option  E  be adopted subject to amending the Seniors 
                              Program to that provided by the former City of Scarborough .
                       Yeas:  Councillor Kelly - 1

                       Nays:  Councillors Ashton, Cho, Davis, Giansante, Holyday, King, Silva,
                              Tzekas - 8

                       Councillor Holyday made the following motion which was deemed redundant:

                               That the Commissioner of Economic Devleopment, Culture and Tourism
                              report to the Economic Development Committee on a phase-in of user
                              fees to the areas that currently are not paying user fees .

                       Councillor Cho made the following motion which was deemed redundant:

                               That the monies saved be put into capital reserves for expenditure
                              on creating recreational facilities in high needs communities .

                       The Chair ruled the following motion by Councillor Cho out of order:

                               That the budget for recreational services not be reduced in 1999".

                       Councillor Silva made the following motion which lost:

                               That Option  B  and Recommendations (2) and (3) of the report
                              (February 10, 1999) from the Commissioner of Economic Development,
                              Culture and Tourism be adopted subject to amending Option  B  by:

                              (a)     eliminating user fees for adult drop-in programs;

                              (b)     raising the fees for user pay programs under this Option by
                                      the necessary amount to offset the cost of free adult drop-
                                      in programs .

                       Councillor Silva made the following motion which lost on the following
                       division of votes:

                               That Council adopt the objective of eliminating all
                              user fees by the year 2005".

                       Yeas:  Councillors Ashton, Davis, Silva, Tzekas - 4

                       Nays:  Councillor Cho, Giansante, Holyday, Kelly, King - 5

               (Budget Committee; cc: Commissioner of Economic Development, Culture and Tourism;
               Cocuncillor Ashton, Chair, Economic Development Committee - February 19, 1999)

                                               (Report No. 4 1(a))


                       Councillor Holyday moved that Subsection 11(1) of the Procedure By-law
                       respecting adjournment from 12:30 p.m. to 2:00 p.m. be waived to enable the
                       Committee to conclude its business.

                       Councillor Holyday s motion lost.
                       Councillor Kelly moved that Subsection 11(1) of the Procedure By-law
                       respecting adjournment from 12:30 p.m. to 2:00 p.m., be waived to permit
                       the Committee to adjourn at 12:30 p.m. and reconvene its meeting at 1:30
                       p.m.

                       Councillor Kelly s motion carried.



               The Economic Development Committee adjourned at 12:30 p.m.



               The Economic Development Committee reconvened at 1:45 p.m.


               Members Present:

                              Councillor Brian Ashton, Chair
                              Councillor Raymond Cho
                              Councillor Rob Davis
                              Councillor Mario Giansante
                              Councillor Douglas Holyday
                              Councillor Norman Kelly
                              Councillor Joan King
                              Councillor Mario Silva
                              Councillor Mike Tzekas


               The Committee adjourned its meeting at 3:30 p.m.






                                                                                                  
                                                                                          Chair.

 

   
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