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HomeMy WebLinkAboutCouncil Minutes - 1997-04-25 SCOUNCIL\1997-04-25-SPE APRIL 25, 1997 SPECIAL COUNCIL MINUTES CITY OF KITCHENER A special meeting of Kitchener City Council was held at 2:10 p.m. this date with all members present. The purpose of the meeting was to discuss, with local members of the Provincial Parliament, issues of local concern involving Provincial initiatives in the areas of charitable gaming, hospital funding and downloading. Kitchener-Wilmot M.P.P. Gary Leadston was in attendance for the entire meeting; Kitchener M.P.P. Wayne Wettlaufer and his assistant David Maxwell were in attendance for part of the meeting. Mr. W. Wettlaufer offered his apologies and indicated he would have to leave early due to prior commitments as he was initially under the impression the meeting was to commence at 1 p.m. and was only to include discussion of permanent charitable gaming clubs. Mr. Wettlaufer pointed out that charitable gaming already occurs in the municipality and referred in particular to Monte Carlo events which he characterized as impossible to regulate, noting that charities do not appear to be getting their share of the proceeds from Monte Carlos. He stressed that there will be no more Monte Carlo events in the Province of Ontario and that these will be replaced by the charitable gaming clubs which will ensure better regulation of charitable gaming, as well as more money for local charities. Mr. Wettlaufer also stated that the Province is planning to devote approximately $9,000,000 to deal with gambling addiction. Councillor G. Lorentz referred to the Provincial proposal that charitable gaming clubs would be open 7- days a week, 24-hours a day and questioned why the Province is taking this position rather than attempting to better regulate weekend casinos. Mr. Wettlaufer declined to comment. Councillor K. Redman referred to the concerns of local social agencies which presently hold Monte Carlo events, that if a gaming club is not located within Waterloo Region they will lose access to funding. Mr. Wettlaufer stated that to the best of his knowledge, Regional charities would not have access to the proceeds of charitable gaming clubs if one of these clubs is not located within the Region, but indicated he would enquire further and verify. Councillor Redman pointed out that volunteer charitable boards have been put in a tough position as to whether or not to accept charitable gaming clubs and the funds they will generate. She referred to the Provincial requirement that gaming clubs can only be operated in clusters as opposed to having an operator run an individual gaming club. She expressed concern that operation of these clubs by large scale, out-of-town operators suggests the possibility of criminal involvement. Councillor John Smola questioned why video lottery terminals (VLTs) have not as yet been introduced at race tracks, as the tracks are now struggling economically and could benefit by this initiative. He also questioned why the Province is forcing charitable gaming clubs on municipalities as well as requiring them to distribute the revenues, and suggested that perhaps the Province should regulate these establishments and distribute the revenues itself. Councillor T. Galloway expressed concern over the installation of VLTs and suggested that the Province is forcing a huge progression in the amount and type of gambling by cancelling weekend Monte Carlo casinos and implementing gaming halls with VLTs. Councillor Galloway referred to a recent speech made by Marshall Pollock, Chair of the Video Lottery Corporation, a private company, that 5% of the population is pre-disposed to compulsive gambling. He suggested that gaming halls could lead to compulsive gambling by this segment of the population with the resulting additional problems and social consequences. Mr. Wettlaufer replied that to the best of his knowledge, the percentage pre-disposed to compulsive gambling is only 2% and suggested that currently available break-open tickets are the most addictive form of gambling. Mr. Wettlaufer also pointed out that at present there are approximately 20,000 VLTs in the Province illegally and that this reflects a substantial amount of lost revenue. He suggested that if individuals are going to play these machines in any case, some portion of the revenue should be re-channelled. Councillor Galloway responded that there is a great distinction between a .50¢ break-open ticket and a $100 bet. Councillor M. Wagner suggested that the Provincial government is more concerned with revenue than with family or social values and questioned why VLTs are being forced into charitable gaming clubs given that the Province acknowledges there is a potential for addiction. Mayor R. Christy questioned whether the Provincial government has a formal policy to deal with gambling addiction and Mr. Wettlaufer replied in the negative. Councillor G. Lorentz questioned the actions of the Province in making a decision to implement charitable gaming clubs whether or not a municipality agrees, and then turning around and allowing municipalities to decline gaming clubs in their jurisdictions thereby forcing them to make a decision which could adversely affect local charities. He expressed resentment that this issue has been for all intents and purposes dumped on the laps of municipal politicians. Mr. Wettlaufer pointed out that the Province was prepared to implement gaming clubs without municipal approval; however, it was the municipalities themselves that asked for greater involvement. Councillor Lorentz suggested that if the Province feels this strongly about gambling revenues, then they should simply impose the gaming clubs without a municipal veto. SPECIAL COUNCIL MINUTES APRIL 95, 1997 - 180- CITY OF KITCI:IENER Mayor R. Christy referred to a recent article in the Financial Post regarding the long term implications of gambling and indicating that several sectors of the United States economy are now recognizing that gambling is not a sustainable economic activity. Mr. Wettlaufer responded that to the best of his knowledge there has been no noticeable increase in the number of individuals addicted to gambling in Provinces such as Alberta and British Columbia, as well as some American States, which have permitted gambling formats such as VLTs. He also stated that at present there is no government funding directed toward gambling addiction, and repeated his earlier comment that VLTs exist in the community at this time, and consequently, the money is already being spent on VLT gambling. Mayor R. Christy referred to a recent article in the Harvard Medical Journal which indicates that North America is facing, in the form of gambling, an addiction more serious than drug addiction. Mr. Wettlaufer responded that the studies undertaken on gambling often reflect preconceived views, or the views of those commissioning the study itself. Councillor G. Lorentz enquired whether Mr. Wettlaufer was aware of the public meeting involving the Cities of Cambridge, Waterloo, Kitchener, Guelph and Brantford, which is scheduled for April 29, 1997 to discuss charitable gaming issues and Mr. Wettlaufer acknowledged that he was aware the meeting would be held, but has a prior commitment. Mr. Wettlaufer then left the meeting, but his assistant, David Maxwell, remained. Mr. G. Leadston referred to the upcoming April 29 meeting and indicated it was his impression that the Gaming Commission representatives would respond to questions. Mayor R. Christy clarified that the meeting is a forum to hear public input and that the Mayors of Cambridge, Kitchener, Waterloo, Brantford and a representative from the City of Guelph will all be in attendance. Mr. G. Leadston advised that between Kitchener, Waterloo and Cambridge, bingos, break-open tickets and monte carlo events generate approximately $8,000,000 in revenue annually, and noted that he assumes Council will want to eliminate these as well if it opposes charitable gaming. He further advised that it was his understanding that no decision has been made concerning the installation of VLTs at race tracks. Mr. Leadston acknowledged that all local municipalities have passed resolutions opposing charitable gaming halls. He also advised that approximately 4,200 Monte Carlo events were held Province-wide in 1996 generating approximately $100,000,000, of which local charities received only $10,000,000. He pointed out that anticipated revenues to charitable organizations as a result of the gaming clubs would be in the order of $180,000,000 annually. He also pointed out that in regard to gambling addiction, the former government had allocated only $1,000,000 annually; whereas, this government is devoting $9,000,000 to these programs. Councillor M. Wagner referred to the local hospital funding crisis and pending restructuring and asked for clarification of these issues. Mr. G. Leadston referred to an April 23, 1997 press release from the Minister of Health, which he noted did not appear to receive local media coverage. The press release states that an investigator has been appointed to look into the situation at the Grand River Hospital and will examine issues related to financial management, the quality of patient care and hospital administration. The investigator, Ms. Gail Peach is expected to report by the end of next month. Mr. G. Leadston referred to a letter from the Minister of Transportation advising that reconstruction of a portion of the expressway will go to tender on April 30, 1997. He further advised that the interchange at Highway #8 and the Expressway is viewed as a No.1 priority by the Ministry of Transportation, and he indicated his hope for a positive announcement in the near future. He also advised that with regard to the Spring highway cleanup, it will be known within the next two weeks when crews will begin work in the Kitchener area. In regard to the agenda item involving airport noise and a noise exposure task force, Mr. G. Leadston advised that to the best of his knowledge there is no Provincial body considering this issue. Councillor Jake Smola responded that noise exposure forecasts were released by the Federal government and that a portion of the Grand River South Community will be affected by the contours. Councillor Smola referred to the future growth of the airport and the need for assurances that it can be expanded without affecting neighbouring residential areas. He requested any additional information the Province has in this regard including any adjacent land use information and runoff statistics. Mr. Leadston agreed to speak to the Minister of Municipal Affairs in this regard. Councillor B. Vrbanovic enquired as to the impact of the Highway #8 Interchange being designated in the Transportation Ministry as a No.1 priority, and Mr. Leadston replied that he has no timeframe for completion of this project, and stated that there is nothing the municipality can do to assist in the process SPECIAL COUNCIL MINUTES APRIL 95, 1997 - 181- CITY OF KITCI:IENER and at this time the project is subject to budget setting priorities and the needs of other communities. Councillor T. Galloway focused on the issue of health care and indicated his appreciation for the appointment of an investigator, indicating his belief that there are serious problems with funding priorities at the Grand River Hospital, particularly relating to protected programs. He suggested that the study may conclude that the problem relates to under-funding. With regard to the issue of hospital restructuring, Councillor Galloway indicated his hope that area M.P.P's would emphasize that this is a growing community and that it would be shortsighted to restructure hospitals without keeping this fact in mind. He also noted that this is the third most popular settlement area in Canada for new Canadians, and that he is not convinced that the formulas used by the Health Care Restructuring Commission take facts such as these into consideration. Councillor Galloway expressed his concern that the hospital facilities the community currently has may be insufficient five years from now. He also stressed that Waterloo Region has provided regional services as far as the Bruce Peninsula, and noted that he has concerns that there may be a movement underway to downgrade the levels of service enjoyed by the Region so that some of these, such as chemotherapy, can migrate to other municipalities. Councillor Galloway stated that he finds the way the Province has organized hospital restructuring to be objectionable, particularly as regards the decision to allow no appeal of a Restructuring Commission decision. Mr. G. Leadston advised that he shares these concerns, but pointed out that as a result of restructuring the health care system will be more efficient. He referred to an unscientific survey done in the community which he would share with the Ministry of Health, and which suggests that this area may be under-serviced. In response to a further question from Mayor R. Christy, Mr. Leadston advised that the Structuring Committee decision should be appealable, and that he does not believe a made-in-Toronto solution should be imposed on other communities. Mayor Christy pointed out that it is very difficult for a Commission to make health care decisions when members have not lived in the community for an adequate space of time. Mr. W. Wettlaufer re-entered the meeting at this time. Councillor K. Redman expressed her wish that Mr. G. Leadston would convey the concern that if there is no charitable gaming club in this area, local charities would be disadvantaged. In regard to hospital restructuring, she expressed concern that the provision of services is only being viewed with an eye to cost and cost-reduction. She offered the opinion that this Region has historically been under-serviced in the area of health care and that she supports the actions taken by community groups to date. She suggested that it appears the Province is dis-embowelling the current health care system without considering all non-infrastructure aspects of that system, such as the role of doctors, how they are paid and how services are assessed. She suggested that it is not apparent these other considerations are being addressed to the current process. Mr. W. Wettlaufer responded that health care restructuring is a national trend, and in part emanates from the reduction in Federal funding. Councillor M. Yantzi referred to earlier comments made by Mr. G. Leadston that the amount of profit going to local charities would be increased as a result of implementing charitable gaming clubs. He suggested that the issue at hand encompasses more than just revenue and includes the development of a casino culture. Councillor Yantzi pointed out that devoting funds to gambling addiction amounts to an admission that the Province is creating a problem by expanding gambling activities. He suggested that it appears the Provincial government has itself become addicted to gambling and that casinos and gaming clubs do not create as much economic activity as they drain out of other sectors. Mr. G. Leadston suggested that as long as individuals have a choice there will always be gambling addiction, and suggested that citizens should regulate themselves in this regard. Mayor R. Christy questioned the need for gaming clubs to be open 24-hours a day, 7-days a week, and Mr. Leadston agreed that he has a personal difficulty with the hours of operation and that discussion in this regard is underway. Mr. W. Wettlaufer left the meeting at this time and did not return. Councillor G. Lorentz referred to the process of hospital restructuring and indicated his personal concerns. He questioned why a democratic government gives an appointed commission so much power and allows them to make decisions which cannot be appealed. He also stressed that he still does not have a clear picture of the implication of the recent Provincial downloading, and questioned how decisions of this magnitude can be made with no apparent overall plan or clear guidance to the local levels of government expected to take over these responsibilities. He characterized the current situation as sad and confused. In regard to the area of charitable gaming, he suggested that the Provincial government should pay closer attention to the views of citizens on charitable gaming, and he encouraged local M.P.P's to attend the meeting scheduled for April 29, 1997. Councillor Lorentz also acknowledged that though deficit reduction is a commendable objective, the Province is placing a disproportionate emphasis on finances. He also expressed an interest in knowing the annual advertising budget for the APRIL 95, 1997 SPECIAL COUNCIL MINUTES - 18~- CITY OF KITCI:IENER Province of Ontario and asked Mr. Leadston to enquire in this regard. In regard to the issue of hospital restructuring, Mr. G. Leadston advised that in determining the appropriate make-up of the Restructuring Commission, it was important to find a group of individuals who had the time, the energy and the expertise to do the job properly, and that the current Commission is a better alternative than appointing one comprised of M.P.P's. In regard to the issue of ambulance services, Mr. Leadston advised that it will be a municipal responsibility to co-ordinate ambulance services and referred to the possible sharing of a joint fire and ambulance facility. Councillor M. Wagner advised of two specific questions he would like Mr. G. Leadston to ask Premier Mike Harris; namely, if he trusts municipalities with managing the downloaded costs why is he not allowing them to select the infrastructure projects in their respective communities; secondly, what makes Premier Harris think he knows better than area politicians which of these projects are best for the community. Councillor Wagner noted that Mr. Leadston had previously indicated that he prefers local solutions; however, it appears Premier Harris clearly wants to impose solutions from above. He noted that Ontario is a holdout with regard to the Federal Infrastructure Program on the basis that Premier Harris wants a final say on municipal projects. Councillor Wagner also questioned why the Province is proceeding with a downloading program that most everyone feels will be a disaster. He pointed out that Finance Minister Eves recently indicated there is $1.2 billion in additional revenue, and Councillor Wagner questioned why there is a need to download in order to save a further $1 billion, as the Provincial government already has the money it needs for the second phase of its income tax cut. He referred to a recent meeting to be held with the Association of Municipalities of Ontario which was cancelled for no apparent reason, and he characterized the scenario to date as the Province telling municipalities what they want them to know, not what they need to know about the downloading issue. He suggested that there is a need for more information at the local level and characterized the secretiveness of the Provincial government as akin to that of the Kremlin. He also specifically enquired as to why the municipally sponsored downloading alternative is not being responded to by the Province. Mr. Stewart Thomas appeared as a delegation and suggested that one of the main reasons for the Provincial funding reductions in the areas of health and education is a reduction in Federal transfer payments. He indicated his understanding that the Province of Quebec receives double the amount per capita as Ontario, and questioned why Ontario is not being more aggressive in seeking increased funding as Quebec has done. Mr. G. Leadston responded and indicated it is correct that transfer payment reductions to Ontario have severely limited the Province's ability to deliver services. He pointed out that the Province has met with Federal representatives and that it was his hope this would become an issue in the upcoming Federal election. Mr. Leadston also noted the Federal government's practice of retaining, for as long as possible, funds which are to be directed to the Provinces, and this delay can amount to as much as 1 to 1 1/2 years. Mr. Collins added that it is important to let the people of Ontario know about the problems caused by the Federal transfer reductions and that the Premier of Ontario should be as well informed on this issue as the people of Quebec. Mr. Robert Crossan appeared as a delegation and a paramedic with the Waterloo Region Ambulance Service. He referred to the wealth of expertise and experience within the Service, noting that he himself is the second lowest in terms of seniority and has approximately 12,000 hours of field experience. Mr. Crossan noted that the Province previously decreed that ambulance services would be downloaded with no other direction to the current operators. He suggested that ambulance services are in the same position as hospitals in that they run at 86% of capacity leaving very little room for downtime or backups, with this percentage increasing to 105% of capacity on weekends based on the Province's own statistics. He requested direction from the Province as to the need for minimum staffing requirements, as well as minimum training and experience. Mr. G. Leadston again confirmed that funding of ambulance services will be the responsibility of municipalities and suggested that integration with fire services is an option which would seem to offer a more balanced service response. Mr. Crossan challenged the contention that firefighters have most, if not all of the skills of ambulance paramedics, noting that his education and field experience entails more than basic CPR and First Aid. In response to a question from Councillor K. Redman, Mr. Crossan suggested that to date, this process has suffered from lack of input by ambulance service operators, and pointed out that there is no incentive for the operators to speak with anyone if these discussions could result in a takeover of the service they provide. Councillor Jake Smola advised that he sees some benefit in the downloading of ambulance services and their possible combining with fire services; however, he acknowledged this would be difficult without a Regional fire service. Mr. Crossan pointed out that the proposed solution could not be any worse than at SPECIAL COUNCIL MINUTES APRIL 95, 1997 - 183- CITY OF KITCI:IENER present given that the current service is over-worked and under4unded. Ms. Freida Hybin appeared as a delegation, and as an individual who works with the mentally ill. She circulated a written proposal calling for adequate housing for those with serious mental illnesses and asked that this request be put before the Province. Individual members of Council were then given an opportunity to make summary comments. Councillor Jake Smola suggested that individuals should be allowed to make up their own minds concerning the gambling issue, but that Kitchener Council should adopt a position on charitable gaming, noting that it is inappropriate to say that one form of gambling is more addictive than another. Councillor M. Wagner referred to the recent changes in development charges which the Province considers to be revenue neutral, but which others contend will result in approximately $1 billion in extra cost to municipal taxpayers. He stressed that Council does not want changes in development charges at an increased cost to taxpayers, and suggested that new development should pay for itself. Councillor M. Yantzi stated that what causes him the most concern is the way in which the Province conducts its business. He stated that he is not opposed to change, and acknowledged that it is necessary at times; however, the process followed by the Province is very dis-empowering, particularly for the poor. Councillor M. Yantzi questioned why the Province is not concentrating on the high levels of unemployment and the subsequent loss of tax revenue. He suggested that the downloading initiative, particularly as it relates to welfare costs, is fundamentally wrong. Councillor C. Weylie suggested that there should be an appeal process for Hospital Restructuring Commission decisions, and that such an appeal should not necessarily be to politicians. Councillor T. Galloway applauded the government in regard to its willingness to deal with the deficit problem; however, he expressed concern over the speed and the breadth of the changes which do not appear to be part of an overall, coherent plan. He suggested that due process is lacking and that too much is being attempted too quickly. Councillor Galloway pointed out that it has taken more than a couple of years to create a deficit of this magnitude, and that the Province is misguided in trying to eliminate it in a few years time, and he asked that his comments in this regard be conveyed to the Premier. Councillor B. Vrbanovic expressed similar concerns over the process and the speed of changes, particularly in the areas of education and health. He suggested that it appears the Province is proceeding too quickly and without thinking through the implications of its decisions and noted that the Federal government seems to have reduced the deficit without the same level of concern. He suggested that the current government should maintain its course of deficit reduction, but introduce some real opportunities for dialogue and input. Councillor K. Redman expressed concerns over the speed, the scale and the magnitude of change at all levels. Councillor G. Lorentz indicated his appreciation to Mr. G. Leadston for taking the time to attend, as well as his disappointment that Mr. Wettlaufer did not stay longer, as he feels this type of meeting is important. Councillor John Smola expressed concerns over Provincial downloading and suggested that the Province is proceeding too quickly. He further suggested that in regard to changes in development charges, the development industry is being given too much of a cost break. Councillor J. Ziegler also expressed concern over the hasty action of the Province, but indicated his belief that this haste has been caused by actions at the Federal level, particularly those involving reductions in health care funding. He noted that Federal legislation in this regard was passed over two years ago, but that the fiscal impact only takes effect this year. He also referred to a $35 billion deficit which increased to $90 billion during the time the NDP government was in office. Councillor Ziegler also expressed concerns over the downloading of services. Mr. G. Leadston indicated his willingness to establish a regular series of meetings with Council; however, he suggested that fewer issues be addressed as he would have preferred to have staff from various Provincial Ministries in attendance. Mayor R. Christy advised that his greatest concern with the Province and this community relates to the balance between the public and the private sector, as well as the role of a large volunteer base. He stressed the need when dealing with rapid change, as well as other issues such as privatization, that this balance be respected as it is what has made the Province successful. He referred to the Provincial infatuation with amalgamations, and noted that the experience of the local community in regard to the regionalization of police services has resulted in significant increases in policing costs since the 1970's from $2.7 million to $22 million and concerns over the qualify of service. In closing, he suggested that balance is the key to the welfare of the local community and the Province and encouraged the Province to listen to the concerns expressed by politicians and citizens regarding the process of change. On motion, the meeting adjourned. SPECIAL MINUTES APRIL 95, 1997 COUNCIL - 184 - CITY OF KITCI:IENER MAYOR CLERK