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HomeMy WebLinkAboutCouncil - 2010-04-12 SSPECIAL COUNCIL MINUTES APRIL 12, 2010 CITY OF KITCHENER A special meeting of City Council was held at 12:47 p.m. this date, chaired by Mayor C. Zehr with all members present except Councillor K. Galloway. Notice of this meeting had been previously given to all members of Council by the City Clerk pursuant to Chapter 25 (Council Procedure) of the Municipal Code. Council considered Chief Administrator's Office report CAO-10-017 (R. Regier), dated April 9, 2010 regarding the agreement between the City and the Ontario Realty Corporation. Councillor B. Vrbanovic advised that the construction of the new courthouse is a large downtown development yet, Council has not seen what the development will look like and he asked if a presentation could be arranged. Mr. J. Willmer, Interim General Manager, Development & Technical Services, advised that he would contact the Province to arrange for a presentation. Councillor J. Gazzola asked when the building permit for the courthouse is expected to be issued. Mr. Willmer advised that the permit should be issued in the near future. Councillor Gazzola raised a concern regarding what the Province is proposing, suggesting that changing the timing for payment of the balance owed to the City from issuance of the building permit for the courthouse to substantial completion of the Charles / Benton parking garage, may in fact delay full payment. Mr. R. Regier, Executive Director of Economic Development, advised that the Province has made its initial payment of $2M as per the agreement, however, there has been a delay in obtaining the building permit for the courthouse therefore, the Province is looking to advance the outstanding balance rather than incur additional interest costs. He added that payment of $2M would be paid by April 30, 2010 and the balance on substantial completion of the parking garage. Mayor C. Zehr advised that there appears to be some confusion stemming from the report on whether the balance of the payment would be made on issuance of the building permit for the courthouse or on substantial completion of the parking garage. He suggested and it was agreed by Council, to defer a decision on this matter until later this date to allow staff the opportunity to clarify when final payment from the Province is to be made under the recommended amendment to the agreement. Council considered Financial Services Department report FIN-10-055 (L. Gordon), dated April 9, 2010, regarding Proposal P09-110 for the installation of a Photovoltaic System for the Consolidated Maintenance Facility. Moved by Councillor G. Lorentz Seconded by Councillor B. Vrbanovic "That Proposal P09-110, Photovoltaic System, be conditionally awarded to Photowatt Ontario Inc., subsidiary of ATS Automation, Cambridge, at their corrected proposed price of $3,479,961., plus G.S.T. of $173,998.05 for a total of $3,653,959.05, subject to the required approvals of The Ontario Power Authority and Kitchener Wilmot Hydro." Carried. Moved by Councillor J. Smola Seconded by Councillor C. Weylie "That an in-camera meeting of City Council be held this date to consider two matters subject to solicitor-client privilege and a land acquisition /disposition matter." Carried. The meeting then recessed at 12:57 p.m. and re-convened at 2:00 p.m., chaired by Mayor C. Zehr and with all members present except Councillor K. Galloway. Mr. J. McBride, Director of Transportation Planning, addressed concerns raised earlier in regard to the payment schedule relative to the agreement with the Ontario Realty Corporation (ORC). Mr. McBride advised that this matter relates to the original agreement with ORC for parking spaces in the new Charles / Benton Street Parking Garage. The original amount to be paid was $6.475M and an initial payment of $2M was made on signing of the agreement. The remaining $4.475M was to be paid on issuance of the building permit, with interest to accrue if the building permit was not issued by December 1, 2009. Mr. McBride pointed out that the building permit has not been issued and ORC is SPECIAL COUNCIL MINUTES APRIL 12, 2010 - 86- CITY OF KITCHENER currently accruing interest. The ORC has since proposed that $2M of the monies owing be paid by a specified date, being April 30, 2010, in lieu of any interest payment and the balance of $2.475M be paid on substantial completion of the Charles / Benton Street Parking Garage. The garage is expected to be completed by the end of September 2010. Mr. McBride commented that this approach is advantageous to the City in that it provides earlier receipt of a large portion of the balance owing at a time when short term investment rates have significantly dropped. Councillor J. Gazzola requested clarification as to when the building permit for the courthouse construction is to be issued. Mr. C. Waller, Manager of Building, advised that building permit issuance will be staged with firstly, a foundation permit to be followed by a permit for structural construction, and finally for interior finishing. The first of the permits is expected to be issued within the next week to 10 days, subject to site plan approval and the full permit is not likely to be issued sooner than September -October 2010. Council then recessed at 2:10 p.m. and reconvened at 2:50 p.m. chaired by Acting Mayor B. Vrbanovic with all members present, except Mayor C. Zehr and Councillor K. Galloway. Moved by Councillor C. Weylie Seconded by Councillor J. Smola "That the Mayor and Clerk be authorized to execute an amending agreement with the Ontario Realty Corporation acting as agent on behalf of Her Majesty the Queen in Right of Ontario as represented by the Minister of Public Infrastructure Renewal, said agreement to be to the satisfaction of the City Solicitor." Carried. The meeting then recessed at 2:52 pm and reconvened at reconvened at 4:59 p.m., chaired by Mayor C. Zehr and with all members present except Councillor K. Galloway. Moved by Councillor J. Smola Seconded by Councillor B. Vrbanovic "That leave be given the Mover and Seconder to introduce a by-law to confirm all actions and proceedings of the Council and that the same be taken as read a first, second and third times, be finally passed and numbered 2010-059 by the Clerk." Carried. On motion the meeting adjourned at 5:00 p.m. MAYOR CLERK