I.

DISCLOSURES OF PECUNIARY INTEREST

1.

That it BE NOTED that:

a)            Councillor J.B. Swan disclosed a pecuniary interest in clause 5 of this Report having to do with Council-directed funding to non-profit organizations, in the event that this is applicable to Orchestra London, as Orchestra London is his employer.

b)            Councillor P. Hubert disclosed a pecuniary interest in clause 5 of this report having to do with Council-directed funding to non-profit organizations, by indicating that he is the Executive Director of a social services agency.

II.

CONSENT ITEMS

2.

Initiation Report - 2014 Development Charges Background Study and DC By-law Update

Recommendation:  That the following actions be taken with respect to the report dated April 30, 2012, entitled “Initiation Report – 2014 Development Charges Background Study and DC By-law Update”, from the City Treasurer, Chief Financial Officer:

a)            the report BE RECEIVED for information; it being noted that staff have initiated the 2014 Development Charge (DC) study process with a view to establishing new DC rates by the expiry of the current DC rate by-law in August, 2014;

b)         the Province BE ASKED to review the current development charge legislation and BE ADVISED that it remains the City of London’s position that it would like the Province to reform the Development Charges Act to remove the requirement that capital costs be reduced by 10% in the determination of development charges; and

c)         a copy of the communication to the Province, as referenced in b), above, BE PROVIDED to the Association of Municipalities of Ontario, the Large Urban Mayors’ Caucus of Ontario and the Mayors’ and Regional Chairs’ of Ontario.

Motion made by J.L. Baechler and seconded by D.G. Henderson to Approve that the Province be asked to review the current development charge legislation and be advised that it remains the City of London’s position that it would like the Province to reform the Development Charges Act to remove the requirement that capital costs be reduced by 10% in the determination of development charges; and, further that a copy of the communication to the Province be provided to the Association of Municipalities of Ontario, the Large Urban Mayors’ Caucus of Ontario and the Mayors’ and Regional Chairs’ of Ontario.

Motion Passed

YEAS: J.F. Fontana, J.B. Swan, N. Branscombe, D.G. Henderson, J.P. Bryant, B. Polhill, S. Orser, J.L. Baechler, M. Brown, P. Hubert, P. Van Meerbergen, D. Brown, H.L. Usher, W.J. Armstrong, S. White (15)

Motion made by J.L. Baechler and seconded by D.G. Henderson to Approve that the following actions be taken with respect to the report dated April 30, 2012, entitled “Initiation Report – 2014 Development Charges Background Study and DC By-law Update”, from the City Treasurer, Chief Financial Officer:

a)            the report BE RECEIVED for information; it being noted that staff have initiated the 2014 Development Charge (DC) study process with a view to establishing new DC rates by the expiry of the current DC rate by-law in August, 2014;

b)         the Province BE ASKED to review the current development charge legislation and BE ADVISED that it remains the City of London’s position that it would like the Province to reform the Development Charges Act to remove the requirement that capital costs be reduced by 10% in the determination of development charges; and

c)         a copy of the communication to the Province, as referenced in b), above, BE PROVIDED to the Association of Municipalities of Ontario, the Large Urban Mayors’ Caucus of Ontario and the Mayors’ and Regional Chairs’ of Ontario.

Motion Passed

YEAS: J.F. Fontana, J.B. Swan, N. Branscombe, D.G. Henderson, J.P. Bryant, B. Polhill, S. Orser, J.L. Baechler, M. Brown, P. Hubert, P. Van Meerbergen, D. Brown, H.L. Usher, W.J. Armstrong, S. White (15)

3.

Assessment Growth Policy

Recommendation:  That the following financial policy on Assessment Growth BE APPROVED:

a)         Assessment growth funding will be dedicated to civic departments, boards and commissions that incur costs to provide an extension of core services to new growth areas;

b)         Assessment growth costs be supported by a business case prepared by the respective civic department, board or commission and approved by the City Treasurer, Chief Financial Officer or designate;

c)         The City Treasurer, Chief Financial Officer, or designate, review and approve the business cases prepared by the respective civic department, board or commission and present a report to Council during the 2013 budget cycle.  Commencing with the 2014 budget cycle, the City Treasurer, Chief Financial Officer will report annually, outside of the annual budget review process, on the allocation of assessment growth funding;

d)         If assessment growth funding exceeds the accumulated growth costs of civic departments, boards and commissions in any one budget year, the balance available will be applied in that year as follows: 50% to reducing unissued debt; and 50% to the Economic Development Reserve Fund and/or tax mitigation;

e)         If assessment growth funding is not sufficient to fund assessment growth costs, excess assessment growth funding from previous years will be attributed to assessment growth costs to the extent that funding is available; and

f)         If excess assessment growth funding from previous years is not available to fund accumulated growth costs, consideration will be given for a tax levy increase or other cost reductions to fund the difference.

Motion made by J.B. Swan and seconded by S. Orser to Amend part d) so that 50% of any excess assessment growth funding would go to reducing unissued debt; and the remaining 50% would go to the Economic Development Reserve Fund and/or tax mitigation.

Motion Passed

YEAS: J.F. Fontana, J.B. Swan, D.G. Henderson, B. Polhill, S. Orser, P. Van Meerbergen, D. Brown, S.E. White (8)

NAYS: N. Branscombe, J.P. Bryant, J.L. Baechler, M. Brown, P. Hubert, H.L. Usher, W.J. Armstrong (7)

4.

2013-2017 Operating Budget Targets

Recommendation:  That, on the recommendation of the City Treasurer, Chief Financial Officer, the following actions be taken with respect to the 2013 – 2017 Operating Budget Targets:

a)            notwithstanding the updated forecasts provided by Civic Departments, Boards, Commissions and outside agencies that would indicate that a 5.5% property tax levy increase is required, the Civic Administration, Boards, Commissions and outside agencies BE REQUESTED to report back to the Strategic Priorities and Policy Committee with 3.8%, 2% and 0% tax increase scenarios, including the implications of those various scenarios;

b)            that consideration of an average annualized targets for the 2013 to 2017 period BE REFERRED to the discussion of the report noted in a), above; it being noted that the average annualized increase forecasted by service programs was 4.1%, which represents a $78 million fiscal challenge over the next 5 years;

c)         the report back by the London Police Service and the Middlesex-London Health Unit, to the Strategic Priorities and Policy Committee, on the impact of the proposed targets BE REFERRED to discussion of the report noted in a), above;  

d)         the 2013 assessment growth, estimated at 1%, BE APPLIED to services that can demonstrate through a business case that the growth in the city has necessitated additional resources to provide for an extension of core services; it being noted that this direction is consistent with the proposed Assessment Growth Policy being recommended by the City Treasurer,  Chief Financial Officer;

e)         sources of funding BE IDENTIFIED for the Economic Investment Plan, SUBJECT TO the adoption of the Plan by the Municipal Council in September 2012;

f)         the 2013 to 2017 Water rate increase target BE APPROVED as follows in order to support the Water Budget, as set out in the Financial Plan prepared under Ontario Regulation 453/07:

2013 – 8%

2014 – 8%

2015 – 8%

2016 – 7%

2017 – 6.75%

g)         the 2013 to 2017 Sewer rate increase target BE APPROVED as follows in order to support the Wastewater and Treatment Budget as set out in the 20-Year Plan:

2013 – 7%

2014 – 7%

2015 – 7%

2016 – 7%

2017 – 4%

it being noted that the City Treasurer, Chief Financial Officer provided the attached presentation with respect to this matter.

Motion made by P. Van Meerbergen and seconded by S. Orser to Amend part a) by deleting the words "achieve a 3.8%" and by replacing them with the words "work towards a 0%".

Motion Passed

YEAS: J.F. Fontana, J.B. Swan, N. Branscombe, D.G. Henderson, B. Polhill, S. Orser, J.L. Baechler, M. Brown, P. Hubert, P. Van Meerbergen, D. Brown, H.L. Usher, W.J. Armstrong (13)

Motion made by J.L. Baechler and seconded by N. Branscombe to further Amend part a) to request a report back to the Strategic Priorities and Policy Committee with 3.8%, 2% and 0% scenarios, and the implications of those scenarios, and Refer part c) to those discussions.

Motion Passed

YEAS: J.F. Fontana, J.B. Swan, N. Branscombe, B. Polhill, S. Orser, J.L. Baechler, M. Brown, P. Hubert, P. Van Meerbergen, D. Brown, H.L. Usher, W.J. Armstrong (12)

NAYS: D.G. Henderson (1)

Motion made by N. Branscombe and seconded by J.L. Baechler to Refer target setting back until the Civic Administration reports back to the Strategic Priorities and Policy Committee with implications so that a firm target can be set.

Motion Failed

YEAS: N. Branscombe, J.L. Baechler, M. Brown, P. Hubert, H.L. Usher, W.J. Armstrong (6)

NAYS: J.F. Fontana, J.B. Swan, D.G. Henderson, B. Polhill, S. Orser, P. Van Meerbergen, D. Brown (7)

Motion made by P. Hubert and seconded by B. Polhill to Approve part a), as amended.

Motion Passed

YEAS: J.F. Fontana, J.B. Swan, N. Branscombe, D.G. Henderson, B. Polhill, S. Orser, J.L. Baechler, M. Brown, P. Hubert, P. Van Meerbergen, D. Brown, H.L. Usher, W.J. Armstrong (13)

Motion made by J.L. Baechler and seconded by S. Orser to Refer part b) to discussions to be held on the implications of the various scenarios.

Motion Passed

YEAS: J.F. Fontana, J.B. Swan, N. Branscombe, D.G. Henderson, B. Polhill, S. Orser, J.L. Baechler, M. Brown, P. Hubert, P. Van Meerbergen, D. Brown, H.L. Usher, W.J. Armstrong (13)

Motion made by J.L. Baechler and seconded by D. Brown to Refer part c) to presentations by the various boards and commissions on the implications of the various targets.

Motion Passed

YEAS: J.F. Fontana, J.B. Swan, N. Branscombe, D.G. Henderson, B. Polhill, S. Orser, J.L. Baechler, M. Brown, P. Hubert, P. Van Meerbergen, D. Brown, H.L. Usher, W.J. Armstrong (13)

Motion made by P. Hubert and seconded by N. Branscombe to Approve part d).

Motion Passed

YEAS: J.F. Fontana, J.B. Swan, N. Branscombe, D.G. Henderson, B. Polhill, S. Orser, J.L. Baechler, M. Brown, P. Hubert, P. Van Meerbergen, D. Brown, H.L. Usher, W.J. Armstrong (13)

Motion made by J.B. Swan and seconded by B. Polhill to Approve part e).

Motion Failed

YEAS: J.F. Fontana, J.B. Swan, B. Polhill, P. Hubert, H.L. Usher (5)

NAYS: N. Branscombe, D.G. Henderson, S. Orser, J.L. Baechler, M. Brown, P. Van Meerbergen, D. Brown, W.J. Armstrong (8)

Motion made by J.B. Swan and seconded by B. Polhill to Approve that sources of funding be identified for the Investment and Economic Prosperity Plan, subject to the adoption of the Plan by Municipal Council in September.

Motion Passed

YEAS: J.F. Fontana, J.B. Swan, D.G. Henderson, B. Polhill, S. Orser, M. Brown, P. Hubert, P. Van Meerbergen, D. Brown, H.L. Usher, W.J. Armstrong (11)

NAYS: N. Branscombe, J.L. Baechler (2)

Motion made by P. Hubert and seconded by H.L. Usher to Approve part f) and part g).

Motion Passed

YEAS: J.F. Fontana, J.B. Swan, N. Branscombe, J.L. Baechler, M. Brown, P. Hubert, H.L. Usher, W.J. Armstrong (8)

NAYS: D.G. Henderson, B. Polhill, S. Orser, P. Van Meerbergen, D. Brown (5)

5.

Strategic Funding Framework: City Council Directed Funding to Non-Profit Organizations

Recommendation:  That, on the recommendation of the Director of Neighbourhood and Children’s Services, with the concurrence of the Executive Director of Community Services and the City Treasurer, Chief Financial Officer:

a)         the Strategic Plan for the City of London five result areas (A Strong Economy, A Vibrant and Diverse Community, A Green and Growing City, A Sustainable Infrastructure, A Caring Community)  BE CONFIRMED as the community priorities and for 2013, all current and new funding coming forward as part of the 2013 budget process must be reasonably expected to contribute to the achievement of these priorities; and,

b)         the attached proposed by-Law (Appendix 1), with the effective date January 1, 2013, BE INTRODUCED at the Municipal Council Meeting of May 22, 2012 to:

(a)        approve the standard form for Grant Agreement (attached as Schedule A to the By-law) for the Strategic Funding Framework;

(b)        delegate to the City Manager, the City Treasurer, City’s Executive Director of Community Services, City’s Executive Director of Engineering and Environmental Services, or their respective written designate, the authority to insert the details into the respective Agreements in the form approved in (a) above; and

(c)        delegate to the City Manager, the City Treasurer, City’s Executive Director of Community Services, City’s Executive Director of Engineering and Environmental Services, or their respective written designate, the authority to execute the Agreements.

III.

SCHEDULED ITEMS

6.

KPMG - Rationale for Continuing your Service Delivery Review Process

The Chair directed that the presentation by I. Jeffries, KPMG, regarding the rationale for The Corporation of the City of London continuing its Service Delivery Review Process, be postponed to a future meeting.

7.

Southwest Area Plan Servicing Strategy and The City's Growth Management Implementation Strategy (GMIS)

Recommendation:      That, on the recommendation of the Director, Land Use Planning and City Planner, the Acting Executive Director, Planning, Environmental & Engineering Services and City Engineer, and the Director, Development Finance, in response to Council’s request for further review and evaluation of the Southwest Area Plan phasing and servicing strategy, the staff report dated April 30, 2012 BE RECEIVED for information and the following actions be taken on the draft revised Southwest Area Plan Servicing Strategy and GMIS update:

a)            i)          the proposed refinements to the servicing strategy for Greenway PCP to allow for servicing of the “Interim Developable Lands” included in the Southwest Planning Area until such time as the ultimate wastewater servicing solution is evaluated BE SUPPORTED, noting that the final Scenario for the Interim Development Lands be confirmed through the on-going Southwest Area Plan planning process;

              ii)       the requirement for 75% build-out of the lands designated low density residential within the “Interim Developable Lands” of the Southwest Secondary Plan Area BE ENDORSED as the trigger a Municipal Class Environmental Assessment for the ultimate wastewater servicing solution and staging of development for the build-out of the remaining lands in the Southwest Secondary Planning Area, and considered in the context of Citywide development;

b)         staff BE DIRECTED to prepare a proposed Official Plan amendment, which is to be circulated to the Public and brought forward to a future Public Meeting to:

•           account for existing Lambeth in the servicing hierarchy;

•           identify a strategy for staging of development within the “Interim developable Lands” servicing area of the Southwest Area Secondary Plan; and

•           establish a trigger, as identified in Clause a(ii) above, for the ultimate wastewater servicing solution and required Environmental Assessment to accommodate the servicing for the full build-out of lands in the Southwest Secondary Plan Area; and

c)            the proposed “Interim Developable Lands” servicing strategy, identified in the enclosed report as Scenario B, BE CONFIRMED through the on-going Southwest Area Plan consultation process, as follows:

•           full build out of Wonderland Corridor, starting from the existing commercial lands south of Southdale Road and progressing southerly to Dingman Drive;

•           a sanitary pump station to service the lands within the northern part of the corridor;

•           a permanent trunk sanitary sewer in coordination with the widening of Wonderland Road south of Wharncilffe Road to the pump station at Dingman Drive;

•           full buildout of the Central Longwoods community, including all permanent servicing;

•           a trigger for the “Ultimate Developable Lands” upon 75% of buildout of the “Interim Developable Lands”; includes Municipal Class EA to determine wastewater servicing solution;

•           adoption of the projects and staging within Scenario B to be reflected within the 2014 DC Study Update, with timing to be determined in that study.

it being noted that the Strategic Priorities and Policy Committee heard the attached presentation from the Director of Planning and City Planner, the Director of Development Finance, the Manager of Land Use Planning Policy and the Manager of Development Finance with respect to this matter.

Motion Passed

IV.

ITEMS FOR DIRECTION

8.

3rd Report of the Services Review Committee

Recommendation:      That the following actions be taken with respect to the 3rd Report of the Services Review Committee, from its meeting held on April 4, 2012:

a)         the following actions be taken with respect to results based accountability, the Business Planning Process for 2012 and the work of the Services Review Committee (SRC):

i)          on the recommendation of the City Treasurer and Chief Financial Officer, the Business Plan review process, as outlined in the report dated April 4, 2012, BE ENDORSED; it being noted that the SRC received the attached presentation with respect to this matter;

ii)         the City Clerk BE DIRECTED to incorporate the following into the report currently being drafted related to the mandate and terms of reference for the SRC:

A)        the necessary changes to reflect the role of the SRC as a part of the municipal budget process, such that the annual budget target will act as the guide for the work of the SRC; and,

B)        notwithstanding the current governance structure, the SRC report directly to Council and not through a Standing Committee;

iii)         the following general guiding principles BE ADOPTED:

A)        City Council to set multi-year budget targets;

B)        the above-noted targets be multi-faceted, including targets for investment, reserve funds, etc.;

C)        budget targets to be established prior to Summer to direct all of the related processes;

D)        status reports to be provided annually, in early Spring, with respect to the current budget context and to include consultation with the City’s Boards and Commissions; and,

iv)        a revised public consultation and engagement strategy, related to the budget process, BE ESTABLISHED; and

b)         clauses 2, 3 and 5 BE RECEIVED.

Motion Passed

9.

Services Review Committee Terms of Reference

Recommendation:  That consideration of the report from the City Clerk, concurred by the City Treasurer, Chief Financial Officer, as to what amendments, if any, the Municipal Council wishes to make to the terms of reference for the Services Review Committee, BE REFERRED to the next meeting of the Strategic Priorities and Policy Committee.

Motion Passed

10.

London Public Library

Recommendation:

a)         That the resignation of Jan Lubell from the London Public Library Board of             Trustees BE RECEIVED and that Ms. Lubell BE THANKED for her contributions    to the work of the London Public Library Board; and

b)                     That German Gutierrez BE APPOINTED to the London Public Library Board of          Trustees.

Voting Record:

a)            Motion Passed

b)            Motion Passed

YEAS: J.F. Fontana, J.B. Swan, D.G. Henderson, B. Polhill, P. Van Meerbergen, D. Brown, H.L. Usher, W.J. Armstrong (8)

NAYS: N. Branscombe, S. Orser, J.L. Baechler, M. Brown, P. Hubert (5)

That Stuart Clark BE APPOINTED to the London Public Library Board of Trustees.

Motion Failed

YEAS: N. Branscombe, S. Orser, J.L. Baechler, M. Brown, P. Hubert (5)

NAYS: J.F. Fontana, J.B. Swan, D.G. Henderson, B. Polhill, P. Van Meerbergen, D. Brown, H.L. Usher, W.J. Armstrong (8)

11.

Middlesex-London Health Unit

Recommendation:  That the communication dated March 28, 2012, from the Chair of the Middlesex-London Board of Health regarding the 2012 estimated Board of Health Expenditures, and the related Council resolution from its meeting held on March 20 and 21, 2012 BE RECEIVED.

Motion Passed

V.

DEFERRED MATTERS/ADDITIONAL BUSINESS

Councillor Branscombe enquired if the Province being put “on notice” that its credit rating may be downgraded would affect municipalities.  The City Treasurer, Chief Financial Officer indicated that he has been in touch with Moody's regarding the situation and has been advised that municipalities would not be affected by the situation.  Rather there is more concern at the municipal level with respect to with bond markets (Spain and Greece) and debt markets, which could create difficulties in issuing debt and a higher cost to do so.

VI.

CONFIDENTIAL

C-1.  Recommendation:  That the confidential report from the City Solicitor regarding a matter pertaining to litigation or potential litigation with respect to funding related to local boards or commissions and advice that is subject to solicitor-client privilege, including communications necessary for that purpose, and for the purpose of providing instructions and directions to officers and employees of the Corporation BE RECEIVED.

Voting Record:

Motion Passed

YEAS: J.F. Fontana, J.B. Swan, N. Branscombe, D.G. Henderson, J.L. Baechler, M. Brown, P. Hubert, P. Van Meerbergen, D. Brown, H.L. Usher (10)

NAYS: B. Polhill (1)

VII.

ADJOURNMENT