British Columbia/ Alberta Trade, Investment and Labour Mobility Agreement

Recommendation:That the February 21, 2007, Office of the City Manager report 2007CMI001 be received for information.

Report SummaryThis report provides a response to an Administrative Inquiry regarding the B.C./Alberta Trade, Investment, and Labour Mobility Agreement and its known implications to the governance of the City of Edmonton.

Previous Council/Committee Action At the March 14, 2007, Executive

Committee meeting, the February 21, 2007, Office of the City Manager report 2007CMOI001 was postponed to the April 18, 2007, Executive Committee meeting.

At the March 6, 2007, City Council meeting, the February 21, 2007, Office of the City Manager report 2007CMOI001 was referred to the March 14, 2007, Executive Committee meeting.

At the November 28, 2006, City Council meeting, Councillor J. Melnychuk made the following inquiry:“I would like the following information:

1. What are the key elements of the BC/Alberta Trade, Investment and Labour

Mobility Agreement (TILMA) recently signed by the Governments of British Columbia and Alberta?

2. Does the TILMA have any implications for the governance of the City of Edmonton and other Alberta municipalities? If so, what are they?

I would like this to return to Council early in 2007.”

Report The B.C./Alberta Trade, Investment,

and Labour Mobility Agreement (TILMA) was signed April 28, 2006, and is aimed at reducing barriers to labour, trade, goods, services, and investment between Alberta and British Columbia.

The agreement comes into force on April 1, 2007. Following that, there will be a two-year transition period where the two provincial governments will reconcile measures such as legislation, regulations, standards, policies, procedures, and guidelines that affect trade, investment, and labour mobility. Full implementation is expected to begin on April 1, 2009.

Trade officials from Alberta International, Intergovernmental, and Aboriginal Relations are now beginning discussions with municipalities regarding their role under the TILMA, with the objective of having initial consultations concluded by June.

The forum of those negotiations has not yet been determined. However, one mechanism that could be used may be the Minister’s Council on Municipal Sustainability.

PAGE ROUTING – City Council, Executive Committee | DELEGATION – A. Maurer/M. Ulmer-JohnstonWRITTEN BY – D. Mills | February 21, 2007 – Office of the City Manager 2007CMI001Page 1 of 3

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British Columbia/ Alberta Trade, Investment and Labour Mobility Agreement

Under the terms of the TILMA: - Businesses will only need to

register once for both provinces; - Investment rules will be the same

in each province; - Standards and regulations will be

reconciled. An example would be the adjustment of regulations around transport truck weight and loading limits so that an operator may legally cross the border;

- Transportation will be streamlined; and

- Workers certified for an occupation will have their qualifications recognized in both provinces. For example, an architect certified by the Alberta Association of Architects will also be certified under the Architectural Institute of British Columbia.

Outside of the scope of the TILMA are the following areas of provincial jurisdiction:- Water;- Taxation;- Royalties;- Labour standards;- Occupational health and safety;- Procurement of health and social

services;- Social policy; and - Aboriginal policies and programs.

Also exempted from the TILMA are government objectives such as: public safety and security; environmental and consumer protection; health and social services; and the conservation of non-renewable, exhaustible, or other essential resources.

Both the British Columbia and Alberta governments are working to harmonize the standards and regulations of provincially regulated occupations. For example, Alberta pharmacists will have additional examination requirements to meet the higher standards established in British Columbia.

Scopes of practice for regulated occupations are being aligned by their accrediting organizations in both provinces. It should be noted that this alignment will err on the side of the higher standard.

Provisions of interest to the City of Edmonton are as follows:

Article 1: InvestmentNegotiations around streamlining of the business establishment (licensing) process in both provinces may be possible. Implications for the City have yet to be determined.

Article 12: Business SubsidiesThere may be implications for the City should it be involved in what could be considered subsidies or incentives to attract business, as these are not permitted under the agreement.

Article 13: Labour MobilityWith the alignment of scopes of practice by professional organizations of 60 occupations, the City of Edmonton may need to revisit its job standards and regulations as a result of modified scopes of practice. This may require additional testing or assessment in some cases. Of those 60 occupations, (architects and engineers are exempt

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British Columbia/ Alberta Trade, Investment and Labour Mobility Agreement

until 2009) those relevant to the City of Edmonton are:- Architect;- Auto body – Prep Technician;- Community/Urban Planner;- Crane and Hoisting Equipment

Operator – Boom Truck;- Crane and Hoisting Equipment

Operator – Hydraulic Mobile Crane;

- Crane and Hoisting Equipment Operator – Tower Crane;

- Engineer;- Lawyer;- Notary Public;- Paramedic;- Waste Facility Operator; and- Waste Water Operator.

Opportunity may arise for the City of Edmonton to increase its promotion of job opportunities to target audiences outside the city, and into British Columbia.

Article 14: ProcurementProcurement thresholds will apply to provincial governments beginning April 1, 2007, but will not be automatically extending to municipalities. Municipal procurement thresholds have yet to be negotiated and will come into effect in 2009.

The TILMA procurement thresholds for professional services ($75,000 or greater) apply beginning April 1, 2007. Under Administrative Procedure A1439 – Purchasing of Goods, Services and Construction, wherever possible the City currently makes all purchases over $5000 by way

of an open tendering process. The TILMA threshold for the provincial government is set at $10,000 for goods, $75,000 for services, and $100,000 for construction. These thresholds have been established through a survey and analysis of tendering practices, and are based on a comparison between the costs of administration and the benefits gained. The current thresholds established under the Agreement on Internal Trade (AIT) are significantly higher ($100,000 for goods and services, $250,000 for construction).

Procurement thresholds are expected to be where the agreement will impact City operations the most. Additional costs for the City would come as a result of the additional time and costs involved in adhering to an open tendering process. Engineers and architects are currently exempt, but there will also be additional costs when their services will need to be tendered (although traditionally the City has not engaged a high volume of engineering contracts).

Part IV: Dispute Resolution ProcessThe agreement contains a dispute resolution process, with up to $5 million in penalties possible. Challenges under the agreement may only be made against either provincial government, and not individuals, groups or municipalities. The onus is on the provincial governments to ensure parties in their jurisdictions are compliant. It is

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British Columbia/ Alberta Trade, Investment and Labour Mobility Agreement

unknown how long the provincial government would be willing to pay for penalties for non-compliance without passing the costs onto the party involved.

The TILMA is not expected to have an impact upon the governance of the City of Edmonton. Areas subject to negotiation and that may require changes are operational and procedural in nature.

Public ConsultationAlberta government officials will begin consultations in May 2007 regarding the implications of TILMA on municipalities. It is anticipated that formal negotiations with municipalities will follow during summer 2007.

Budget/Financial ImplicationsTo be determined through negotiations with the Government of Alberta over the 2007-09 transitional period. Should the Government of Alberta actively enforce the terms of the agreement, all contracts over the TILMA negotiated thresholds would require a formal tendering process. Although requirement this exists under the AIT, there is no monetary motivation to enforce the terms.

Legal ImplicationsTo be determined through negotiations with the Government of Alberta over the 2007-09 transitional period.

Justification of RecommendationThe TILMA has just come into effect as of April 1, 2007 and the roles of municipalities are considered “transitional” under the agreement and subject to negotiation over the 2007 to

2009 transitional period.

Attachments1. Trade, Investment, and Labour

Mobility Agreement Fact Sheet

Background Information1. B.C./Alberta Trade, Investment and

Labour Mobility Agreementhttp://www.iir.gov.ab.ca/canadian_intergovernmental_relations/documents/AB-BC_MOU-TILMA_Agreement-Apr06.pdf

Others Approving this Report J. Tustian, General Manager

Corporate Services Department

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Attachment 1

Trade, Investment, and Labour Mobility Agreement Fact Sheet

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Attachment 1

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