TILMA: City of Calgary report identifies potential areas of negative impact; negotiations with province ongoing

At its July 5, 2007, meeting the City of Calgary’s Intergovernmental Affairs Committee considered City Manager Office Report IGA2007-07: Addressing the Impacts of the British Columbia - Alberta Trade, Investment, and Labour Mobility Agreement on the City of Calgary.

Present were Mayor D. Bronconnier, Chair, Alderman J. Ceci, Vice Chair, Alderman L. Fox-Mellway, Alderman M. King, Alderman H. Larocque, Alderman G. Lowe. Also in attendance were Alderman D. Hodges, City Manager O. Tobert, General Manager D. Watson, Intergovernmental & Partnership Liaison B. King and Legislative Assistant H. Houston.

According to the two-page report the City has so far identified the following areas where TILMA may have a negative impact once it is fully implemented:

– Procurement
– Employment and recruitment
– Business licensing
– Dispute resolution process

The report notes: “The City has participated in TILMA consultations with the Government of Alberta on two occasions” and “Administration will continue to participate in consultations with the Government of Alberta to ensure that TILMA does not negatively impact how The City operates.” Additionally, “it is important to recognize that this is a bilateral agreement. Any changes to the agreement advanced by The City will require the agreement of the governments of both Alberta and B.C. Because of this feature, the timeline for The City to negotiate changes to certain TILMA provisions is limited.”

The Committee minutes show that a motion was passed recommending City Council: “Direct Administration to report back on the progress of the British Columbia – Alberta Trade, Investment, and Labour Mobility Agreement (TILMA) consultations no later than the end of 2007.”

The following is excerpted from the report:

TILMA does not currently apply to municipalities. However, the agreement will apply to municipalities once it is fully implemented on 2009 April 01. The two year transition period will permit the governments of both Alberta and B.C. to reconcile certain measures such as legislation, regulations, standards, policies, and guidelines related to trade, investment, and labour mobility.

The City has participated in TILMA consultations with the Government of Alberta on two occasions. On 2007 April 18, officials from the Department of International, Intergovernmental and Aboriginal Relations met with The City’s Senior Management Team. Subsequently, on 2007 June 04, representatives from Intergovernmental Affairs and Law participated in TILMA consultations with the same provincial officials and other area municipalities.

The 2007 June 04 consultation identified that operational areas such as procurement, employment and recruitment, and business licensing may be affected when TILMA becomes applicable to municipalities. At this meeting, Administration identified some general governance matters that may affect The City once TILMA is fully implemented. For example, the issue of quotas that limit or restrict the number of licenses a municipality may grant (e.g., Taxi Licenses) was identified as a potential source of contention. Another area of concern is the dispute resolution process. Specifically, it was identified that The City may not have the opportunity to actively defend its position before the dispute resolution panel, should The City be found to be non-compliant. As TILMA currently reads, only the Governments of Alberta and B.C. will have the opportunity to appear before the dispute resolution panel and defend the actions of the governing entities in their particular province.

Notwithstanding those concerns, Administration will continue to participate in consultations with the Government of Alberta to ensure that TILMA does not negatively impact how The City operates. Representatives from potentially affected business units, Intergovernmental Affairs and Law are working together to provide the Government of Alberta a written submission which addresses any potential problems on how TILMA may impact certain policies and operations of The City.

Although, and as stated earlier, TILMA does not apply to municipalities until 2009, it is important to recognize that this is a bilateral agreement. Any changes to the agreement advanced by The City will require the agreement of the governments of both Alberta and B.C. Because of this feature, the timeline for The City to negotiate changes to certain TILMA provisions is limited.

Going forward, Administration will provide periodic updates to Council, through the Intergovernmental Affairs Committee, on the status and results of the TILMA consultations. At that time, Administration would be in a better position to ascertain the implications and risks that TILMA may have on The City’s policies and operations.

IMPLICATIONS

General
Given that TILMA does not yet apply to municipalities, there are currently no negative impacts on the policies and operations of The City of Calgary. However, because The City is actively involved in the consultation process, there is an opportunity to try and ensure that the provisions of TILMA do not restrict or inhibit the ability of The City to make operational and policy decisions which protect the public interest of all Calgarians.

Social
At this time, no social implications are identified.

Environmental
At this time, no environmental implications are identified.

Economic (External)
At this time, no economic implications are identified.

BUSINESS PLAN/BUDGET IMPLICATIONS
At this time, there are no business plan or budget implications arising from TILMA. Such implications will be determined once consultations between the Government of Alberta and municipalities have concluded.

RISKS
No apparent risks are identified at this time. However, it is important that The City actively participates in the consultation process so as to minimize and eliminate any potential risks once TILMA is fully implemented.

ATTACHMENTS
1. The British Columbia – Alberta Trade, Investment, and Labour Mobility Agreement Fact Sheet.
2. The British Columbia – Alberta Trade, Investment, and Labour Mobility Agreement: How does the Agreement affect municipalities?

Approvals: City Manager (O.Tobert), Director (D. Hrynyk), Manager (B. King), Author (M. Jordan)