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THE CORPORATION OF THE TOWN OF NEWCASTLE
REPORT
Meeting: General Purpose and Administration Committee
File # bc~~ .(~\ld. ,CTC
Res. #C~A -7a~-9a
Date: November 16 1992
Report #: ADMIN. 11- 9t2ile #:
By-Law #
Subject:
Recommendations from the Mayor's Task Force on Economic
Development
Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. That Report ADMIN. 11 - 92 be received;
2. That the comments contained in Report ADMIN. 11 - 92 be
forwarded to the Mayor's Task Force on Economic Development
for information; and
3. That the Mayor's Task Force on Economic Development be
thanked for its submission.
1. BACKGROUND
1.1 Several recommendations were submitted by the Mayor's Task
Force on Economic Development to Council. At its meeting
held on September 28 1992, Council received the
recommendations and referred them to staff for review and
the preparation of a report to the General Purpose and
Administration Committee.
2 . TASK FORCE'S RECOMMENDATIONS AND STAFF COMMENT
2.1 Recommendation No.1
"The Town should have a full-time Economic Development
Officer. The role should be delegated to an existing
employee of the Town (i.e. no new hiring) or through
reallocation of existing resources."
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f-ltCVCLED!':t\ PAPIER
PAPER 'ttJ:1 RECYCLE
TH~ IS PRINTED ON RECYCLED PAPER
Staff CODDDent
The Economic Development Strategy Report prepared by the
Town's Consultant, Mr. Stephen Chait, has made a similar
recommendation that one individual in the organization be
responsible for the economic development function. It is
expected that the Council will be dealing with this
recommendation in conjunction with its consideration of the
Chait Report and an overall economic development strategy
for the Town. It is anticipated that staff's report on Mr.
Chait's strategy may be available in December. It should be
emphasized that every attempt has and will continue to be
made in order to maximize the Town's resources while at the
same time minimizing or where possible decreasing
expenditures.
2.2 RecoDDDendation No.2
"Town staff should use a local business person to come along
on calls to prospective business investors. This will build
and strengthen government links to existing business and
credibility with the potential investor."
Staff CODDDent
This suggestion has considerable merit and should be
addressed in conjunction with the Town's economic
development strategy. It would be appropriate to involve
local business representatives as ambassadors for the Town.
2.3 RecoDDDendation No.3
"The Economic Development Officer should have on hand an
information package on educational paths, skills development
training, education and training options, and sources of
funding. We have provided such a package to the person
responsible for Economic Development in the Planning
Department."
Staff CODDDent
Staff acknowledge receipt of an information package from
members of the Task Force and wish to thank the members for
their assistance. The Town will continue to be in
communication with Durham College, the Ministry of Industry,
Trade and Technology and other sources in the areas of
labour education, skilled training and related funding or
initiatives that may be available.
02
2.4 Recommendation No.4
"Recent press reports indicate that major changes to the
Municipal Act are proposed which will affect the incentives
a Town will be allowed to offer potential investors. Town
officials should immediately investigate these proposed
changes so that a pro-active plan of action can be
prepared. "
Staff comment
In the early part of 1992, the Ministry of Industry, Trade
and Technology contacted the Mayors of all local
municipalities including the Town of Newcastle to advise
that the Ministry is contemplating the possibilities and
various means to provide local municipalities with the
authority to give incentives to industries and businesses.
In this regard, the Town has responded to a questionnaire
from the Province providing some suggestions and input. We
understand there will be further consultation with local
governments if changes to legislation are proposed and will
continue to monitor same.
2.5 Recommendation No.5
"A T.Q.M. (Total Quality Management) program should be
initiated by the Town administration. This is an
organization wide, all encompassing way of doing business
that ensures that the right product is delivered at the
right price at the right time. The concept is deceptively
simple, however, it requires both training and a wholesale
change in attitude. Members of the Task Force can assist
Town management with obtaining materials to get started
with. Subsequent task force recommendations will build on
this.
Staff comment
The concept of total quality management has been explored
and used to a certain extent by different levels of
government. In our municipality, the quality management
concept has been oriented towards service delivery at
reasonable cost. This has involved a shift in traditional
thinking that has become more quality oriented and is
responsive to various needs on an ongoing basis. Attachment
#1 provides the general change in thrust from Conventional
to Quality Management thinking. This more recent concept
stresses the following:
03
* monitor quality levels so they can be managed
* focus on continually adjusting service levels to
satisfy needs
* utilize skills and knowledge at all levels within the
organization
* provide for ongoing training and skills development to
deliver services most economically and efficiently
(keep current)
* think long term, act short term.
It should be emphasized that such an approach is an ongoing
exercise and requires considerable time, effort and
commitment at all levels. The process has been initiated
for several recent years and has focused its attention on
providing an excellent service to the public. The Town's
efforts have resulted in various enhancements as a result of
the shift away from traditional approaches as have been
reflected in the various services the Town now provides.
This has been achieved while adhering at the same time to
strict budgetary guidelines.
This direction has been endorsed by the present and previous
Councils as desirable and necessary. It is recognized,
however, that this approach is a long term process requiring
major time and financial commitments. The Town would
welcome any resource details that the Task Force may wish to
provide which would enhance the Town's efforts in this
regard.
2.6 Recommendation No.6
"Internal goals should be set by the Planning Department
with increased customer service as the focus. Examples of
measurable targets might include "days from first
application to building permit" or "number of customer
complaints per month". Both the targets and the actual
goals should be determined by employee/customer teams rather
than department heads so that all employees "buy-in" to the
goals."
Staff comment
The suggestion of setting target dates for the issuance of
building permits has merit and is consistent with the
recommendation of the Chait Report. Staff is currently
examining the target dates for various types of permits and
"1104
applications. These streamlining aspects are being reviewed
within the context of the Town's efforts to improve the
level of service.
2.7 Recommendation No.7
"This Task Force was quite concerned to learn that elected
officials are not part of labour relations with the unions
representing Town employees. The taxpayers must be
represented at negotiations. Therefore, we recommend that a
Council member be a working part of the negotiating
committee at the upcoming negotiations. The appointed
Council member should have a small advisory team drawn from
the Town's major taxpayers."
Staff comment
This suggestion is a topic that has caused considerable
discussion over the recent past. More specifically, it
would appear that the intent of the Task Force's suggestion
relates to what level of involvement the Council should take
in the process related to union negotiations.
Previously, the practice of the Town has been such that face
to face negotiations with union representatives have been
undertaken by the administration following review of various
requirements with the Mayor as Chairman of Administration
and all Department Heads. Furthermore, liaison would take
place, where necessary, with the members of Council on an as
required basis. Ultimately the Council would consider all
issues related to the contract.
It should be emphasized that during the evolution of the
above process, the Town's approach to bargaining has always
focused on establishing the most reasonable settlement
within the parameters established by Council for any current
year through the budget process. In addition, the Town has
been cognizant of similar processes in the surrounding
municipalities and aspects related to inflationary indices
in the general area which are taken into account.
Recently, the Council requested staff to review the
formulation of appropriate guidelines to serve as parameters
relative to Council's participation in the Collective
Bargaining process. This is the subject of a separate
report.
1 1 05
3. FINAL COMMENT:
3.1 The Town recognizes the considerable and valuable efforts of
the Mayor's Task Force on Economic Development and thanks
its members for their assistance. Staff will continue to
communicate with the Task Force regarding the above.
Respectfully submitted,
{LClfl(oC (j./7--
Lawrence E. Kots~tf,
Chief Administrat~ve Officer
LEK:nof
Att. #1
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WHAT IS
TOTAL QUALITY
MANAGEMENT?
Attachment #1 to REPORT
ADMIN. 11 - 92
Conventional
Management thinking
Total Quality
Management thinking
. Quality improvement costs money and time
. Quality improvement saves money and time
. Work is a series of events (marketing,
operations, finance, etc.)
. Work is an integrated process
. Quantity is as important as quality
. Without quality, quantity is irrelevant
~
--
. 95% is great
. Only 100% will do
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. Quality is the result of better inspection
. Quality is built in from the start
. Suppliers must be kept on their toes
. Suppliers must feel like they are your partners
. Customers are who you sell to
. Customers are an integral part of your
organization
. To achieve quality we need more and better
people
. Quality can be achieved with the people we have
right now--simply by leading and training them
differently