March 16, 2015 - Minutes

Date:

Monday, March 16, 2015

Place:

Anderson Room
Richmond City Hall

Present:

Mayor Malcolm D. Brodie, Chair
Councillor Chak Au
Councillor Derek Dang
Councillor Carol Day
Councillor Ken Johnston
Councillor Alexa Loo (entered at 4:07 p.m.)
Councillor Bill McNulty
Councillor Linda McPhail
Councillor Harold Steves

Call to Order:

The Chair called the meeting to order at 4:02 p.m.

MINUTES

It was moved and seconded

That the minutes of the meeting of the General Purposes Committee held on Monday, March 2, 2015, be adopted as circulated.

CARRIED

COUNCILLOR CAROL DAY

1.

POLICY 3707 – Long Term Financial Management Strategy
(File Ref. No. 0970-03-01) (REDMS No. 4531019)

Councillor Day commented on the provision of Policy 3707 as it relates to the transfer of one per cent transfer to reserves for infrastructure replacement needs.  She was of the opinion that the provision restricts staff’s ability to prepare the City’s budgets with the realities of the day, and suggested that the policy be revised to reflect that up to one per cent be transferred to reserves for infrastructure replacement needs.

It was moved and seconded

WHEREAS:

the 2015 budgeted expenditure of gaming revenue is 18 million and the total gaming revenue allocated to reserves since 2004 is 56.1 million dollars;

and the City of Richmond has 854.3 million in our investment portfolio;

and in 2015 these reserves from gaming revenue contributed approximately 76.9 million dollars to the comprehensive Major Capitals Facilities Program which included Minoru Aquatic centre, seniors centre, City Centre Community centre, and replacement of No. 1 Fire Hall;

BE IT RESOLVED that Policy 3707 that currently states: under tax revenue that tax increases will be at Vancouver’s CPI rate (to maintain current programs and maintain existing infrastructure at the same level of service) plus 1.0% towards infrastructure be changed to state: up to 1% towards infrastructure.

The question on the motion was not called as discussion ensued and it was noted that Policy 3707 may be amended by Council ad hoc, and thus, there is no need to revise it.  Also, it was noted that the City’s budgets are presented to Council annually for approval, at which time any changes with regard to the preparation of the budgets may be made by Council.

Discussion further ensued and it was highlighted that the City has the lowest taxes in the Lower Mainland as a result of its prudent financial planning.  Also, it was noted that a service level review is forthcoming, and therefore, deferring any changes to the City’s Long Term Financial Management Strategy would be timelier.

Cllr. Loo entered the meeting (4:07 p.m.).

The question on the motion was then called and it was DEFEATED with Mayor Brodie, Councillors Au, Dang, Johnston, Loo, McNulty, McPhail, and Steves opposed.

FINANCE AND CORPORATE SERVICES DIVISION

2.

Gaming Revenue Update
(File Ref. No. 03-0905-01) (REDMS No. 4266078 v. 2)

Andrew Nazareth, General Manager, Finance and Corporate Services, provided background information and commented on the proposed gaming revenue allocation model as it relates to fixed and variable items, noting that staff recommend the budgeted revenue be based on a three-year rolling average of actual revenues with projections for the most recent year.

Discussion ensued regarding the proposed Council Community Initiatives account, and it was suggested that a stabilization fund for social services may better meet the needs of the community.

In reply to queries from Committee, Mr. Nazareth advised that Council has a few accounts in which it may draw from in urgent situations.  Discussion took place on the potential for a stabilization fund to support social service agencies, and it was noted that these agencies are underfunded as result of shortfalls from other levels of government.

In reply to further queries from Committee, Mr. Nazareth stated that, commencing 2016, once the proposed allocation of gaming revenue needs have been met, any remaining revenues would be allocated to the major capital community facility replacement program.  Also, he advised that the proposed gaming revenue allocation model would be utilized unless otherwise specified by Council resolution.

Discussion ensued and it was noted that gaming revenue is finite and therefore, it is important to maintain a level of financial sustainability.

Discussion further took place and it was noted that the proposed Council Community Initiatives account be renamed the Community Initiatives account to clarify and reflect that the funds from this account would be utilized for community-led projects.

It was suggested that a terms of reference for the future use of funds from the proposed Council Community Initiatives account be examined.

Discussion took place on funding for land acquisitions and Mr. Nazareth advised that a staff report on the matter is forthcoming.  Also, it was noted that an endowment fund in the form of land may be more valuable as real estate in Richmond has often grown at a higher rate. 

As a result of the discussion, the following motion was introduced:

It was moved and seconded

(1)

That the proposed gaming revenue allocation model as presented in the staff report titled, Gaming Revenue Update, from the Director of Finance be endorsed effective January 1, 2016;

(2)

That a Council Community Initiatives account be established, and $3.0M of the existing Gaming Revenue Provision be transferred to this account;

(3)

That $12.0M of the existing Gaming Revenue Provision be transferred to the Capital Reserve (Revolving Fund) for future capital work;

(4)

That the 2016 Operating Budget decrease by $1.4M to remove tax funded grants and increase by $1.4M for transfer to the Capital Reserve (Revolving Fund) for a net impact of zero to the Operating Budget;

(5)

That a Grant Provision account be established for the unspent grant funds to accumulate for future distribution;

(6)

That item 2 of the Long Term Financial Management Strategy Policy 3707 be amended as follows:

“Gaming revenues are designated for the capital reserves, the major capital community facility replacement program, the grants program, the Council initiatives account, and towards the cost of policing relating to gaming activities.”

(7)

That staff consider terms of reference for the Council Community Initiatives account.

The question on the motion was not called as discussion took place on removing the word “Council” from the name of the proposed Council Community Initiatives account.  As a result, the following amendment motion was introduced:

It was moved and seconded

That the word “Council” be removed from Part (2) of the main motion.

The question on the amendment motion was then called and it was DEFEATED with Mayor Brodie, Councillors Dang, Johnston, Loo, McNulty, McPhail, and Steves opposed.

Additional discussion took place on funding strategies for the City’s land investments and a possible land legacy reserve fund.

The question on the main motion was then called and it was CARRIED.

CHIEF ADMINISTRATOR’S OFFICE

3.

Resolution for LMLGA and UBCM: Environmental Bill of Rights
(File Ref. No. 01-0150-01) (REDMS No. 4520265 v. 2)

It was moved and seconded

That Council approve the following resolution to be forwarded to the Lower Mainland Local Government Association (LMLGA) for consideration:

Environmental Bill of Rights

WHEREAS municipalities and regional districts are the government nearest to people and the natural environment, and therefore share a deep concern for the welfare of the natural environment and understand that a healthy environment is inextricably linked to the health of individuals, families, future generations and communities;

AND WHEREAS fostering the environmental well-being of the community is a municipal purpose under section 7(d) of the Community Charter and regional district purpose under section 2(d) of the Local Government Act;

THEREFORE BE IT RESOLVED that the Lower Mainland Local Government Association (LMLGA) and the Union of BC Municipalities (UBCM) request that the Province of British Columbia enact a Provincial environmental bill of rights that:

(a)

recognizes the right of every resident to live in a healthy environment, including the right to clean air, clean water, clean food and vibrant ecosystems;

(b)

provides for public participation in decision-making respecting the environment and access to environmental information;

(c)

provides access to justice when environmental rights are infringed; and

(d)

has whistleblower protection

CARRIED

4.

Port Metro Vancouver Resolution to LMLGA, UBCM and FCM
(File Ref. No. 01-0140-20-PMVA1) (REDMS No. 4508241)

It was moved and seconded

(1)

That the Port Metro Vancouver Resolution, as proposed in the February 25, 2015 staff report from the Director, Intergovernmental Relations and Protocol Unit, be submitted to the Lower Mainland Local Government Association, the Union of BC Municipalities and the Federation of Canadian Municipalities for their endorsement (Attachment 2);

(2)

That a letter and the staff report titled “Port Metro Vancouver Resolution to LMLGA, UBCM and FCM” dated February 25, 2015, be sent to Metro Vancouver, the City of Vancouver, the Corporation of Delta, the City of Coquitlam, the Village of Belcarra, the City of Burnaby, the City of New Westminster, the City of Port Moody, the City of North Vancouver, the City of Surrey, the District of North Vancouver, the City of Port Coquitlam, the District of West Vancouver, the District of Maple Ridge, the City of Pitt Meadows and the Township of Langley, requesting their support for the endorsement of the Port Metro Vancouver Resolution; and

(3)

That the above mentioned letter and staff report be copied to the Office of the Prime Minister, the Minister of Transport Canada, the Premier of British Columbia, the BC Minister of Agriculture, Richmond Members of Parliament and Members of the Legislative Assembly, the Federal Leader of the Official Opposition and the Provincial (BC) Leader of the Official Opposition.

The question on the motion was not called as, in reply to queries from Committee, Amarjeet Rattan, Director, Intergovernmental Relations and Protocol Unit, commented on the resolution approval process, and Port Metro Vancouver’s position on growth, noting that their growth should not come at the expense of communities.

The question on the motion was then called and it was CARRIED.

COMMUNITY SERVICES DIVISION

5.

Kiwanis Towers – Second Disbursement from the Affordable Housing Reserve Fund to 7378 Gollner Avenue
(File Ref. No. 08-4057-01) (REDMS No. 4324592 v. 16)

It was moved and seconded

(1)

That, subject to Resolution 2 below, $5,848,406 be paid to Richmond Kiwanis Senior Citizens Housing Society (the “Society”) towards construction costs associated with 296 subsidized senior housing units at 7378 Gollner Avenue (formerly 6251 Minoru Boulevard) to be used by the Society

(2)

That, pursuant to the Contribution Agreement, dated November 9, 2012, between the City and the Society, no payment be made by the City until:

(a)

substantial completion of all 148 Seniors Housing Units in the first tower is confirmed by a quantity surveyor retained by and reporting to BC Housing; and

(b)

the City grants its final building inspection permitting occupancy of all 148 units;

(3)

That the Chief Administrative Officer and the General Manager of Community Services be authorized to:

(a)

negotiate and execute all amendments to the Contribution Agreement and other agreements and documents in relation to the disbursements and revised payment schedule; and

(b)

disburse the amount as stated in Resolution 1 above.

CARRIED

ADJOURNMENT

It was moved and seconded

That the meeting adjourn (5:09 p.m.).

CARRIED

Certified a true and correct copy of the Minutes of the meeting of the General Purposes Committee of the Council of the City of Richmond held on Monday, March 16, 2015.

_________________________________

_________________________________

Mayor Malcolm D. Brodie
Chair

Hanieh Berg
Committee Clerk