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HomeMy WebLinkAboutFin & Corp Svcs - 2010-04-26FINANCE AND CORPORATE SERVICES COMMITTEE The Finance and Corporate Services Committee met this date commencing at 10:40 a. m. Present: Councillor J. Smola -Vice-Chair Mayor C. Zehr and Councillors G. Lorentz, J. Gazzola, K. Galloway and C. Weylie. Councillor B. Vrbanovic entered the meeting shortly after its commencement. Staff: C. Ladd, Chief Administrative Officer D. Chapman, General Manager, Financial Services T. Speck, General Manager, Corporate Services P. Houston, General Manager, Community Services R. Regier, Executive Director, Economic Development R. Gosse, Director, Legislated Services & City Clerk J. Witmer, Director of Operations S. Adams, Director, Community & Corporate Planning S. Turner, Director, By-law Enforcement M . Hildebrand, Director, Community Programs C. Fletcher, Director, Facilities Management M . Selling, Director of Building T. Beckett, Fire Chief R. LeBrun, Manager, Financial Planning & Reporting G. Hastings, Manager, Golf Courses P. Harris, Manager of Licensing B. Steiner, Senior Environmental Planner R. Morgan, Capital Investment Advisor D. Stewart, Health and Safety Specialist J. Billett, Committee Administrator C. Goodeve, Committee Administrator CRPS-10-050 -REQUEST FOR COMMUNITY FESTIVAL DESIGNATION -OUR LADY OF FATIMA FESTIVAL - SEPTEMBER 4 & 5, 2010 - 1548 FISCHER-HALLMAN ROAD The Committee considered Corporate Services Department report CRPS-10-050, dated April 16, 2010 concerning a liquor license application for a special event. On motion by Mayor C. Zehr - itwas resolved: "That the City of Kitchener has no objection to a liquor licence being issued to Our Lady of Fatima Festival Committee for an event to be held September 4 & 5, 2010 at 1548 Fischer-Hallman Road, Kitchener, provided a building permit is obtained for the erection of any tents; and further, That the event be declared a "Community Festival" for the purpose of applying for a liquor licence, since this is a traditional Portuguese celebration of their heritage that promotes unity and understanding within our community." CRPS-10-051 -REQUEST FOR PERMISSION TO SELL MERCHANDISE IN VICTORIA PARK -MAY 30, 2010 -EXTEND-A-FAMILY WATERLOO REGION The Committee considered Corporate Services Department report CRPS-10-051, dated April 16, 2010 concerning a request to sell merchandise for a fundraising event. On motion by Mayor C. Zehr - itwas resolved: "That the request of Extend-A Family Waterloo Region to sell merchandise in Victoria Park on May 30, 2010, be approved, provided the necessary licence is obtained." CRPS-10-052 -REQUEST TO SELL REFRESHMENTS IN VICTORIA PARK - MAY 9, 2010 - MARILLAC PLACE The Committee considered Corporate Services Department report CRPS-10-052, dated April 19, 2010 concerning a request to sell refreshments for a special event. FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 26. 2010 - 71 - CITY OF KITCHENER 3. CRPS-10-052 -REQUEST TO SELL REFRESHMENTS IN VICTORIA PARK - MAY 9, 2010 - MARILLAC PLACE (CONT'D) On motion by Mayor C. Zehr - itwas resolved: "That the request of Marillac Place and the Knights of Columbus to sell refreshments in Victoria Park on May 9, 2010, be approved, provided the necessary licence is obtained, including Health and Fire approvals." CRPS-10-053 -REQUEST TO SELL REFRESHMENTS -SEXUAL ASSAULT SUPPORT CENTRE -CITY HALL ROTUNDA -APRIL 29, 2010 The Committee considered Corporate Services Department report CRPS-10-053, dated April 20, 2010 concerning a request to sell refreshments for a public education event. It was noted in the agenda that any recommendation from the Committee concerning this matter would be forwarded for consideration at the special Council meeting to be held later this same date. On motion by Mayor C. Zehr - itwas resolved: "That the Sexual Assault Support Centre of Waterloo Region be granted permission to sell refreshments in the City Hall Rotunda on April 29, 2010, provided the necessary licence is obtained, including Health approval." CAO-10-018 -GRANT AGREEMENT WITH ONTARIO MINISTRY OF AGRICULTURE, FOOD & RURAL AFFAIRS -ONTARIO MARKET INVESTMENT FUND (OMIF) The Committee considered Chief Administrator's Office report CAO-10-018, dated April 7, 2010 concerning an agreement for provision of grant funding from the Ontario Ministry of Agriculture, Food and Rural Affairs to the Kitchener Market. At the request of Councillor J. Gazzola, Market staff was directed to provide additional information prior to the May 3, 2010 Council meeting on the timeframe in which the objectives as set out in report CAO-10-018 must be met; and that staff report to a future Finance and Corporate Services Committee meeting on completion of the project as to how the project was managed and the objectives met. Mayor C. Zehr commented that reporting on projects of this nature is important and asked that the Corporate Management Team develop a method whereby reporting mechanisms are built in to the process as part of the procedures for all City projects undertaken through grant funding programs. On motion by Mayor C. Zehr - itwas resolved: "That the Mayor and Clerk be authorized to execute a grant agreement with Foodlink Waterloo Region Inc., and the Ontario Ministry of Agriculture, Food & Rural Affairs, for the provision of a $45,000 grant from the Ministry to the Kitchener Market, such grant agreement to be subject to the satisfaction of the City Solicitor." DTS-10-083 -LOCAL ENVIRONMENTAL ACTION FUND (LEAF) GRANTS: 2010 AND EVALUATION PROCEDURES UPDATE The Committee considered Development and Technical Services Department report DTS-10- 083, dated April 22, 2010 recommending funding for certain grant applications in 2010 under the LEAF program and an update on program evaluation and administrative procedures. Ms. B. Steiner, Senior Environmental Planner, advised that the original funding allocation for LEAF in 2007 was $5M, to be disbursed in varying amounts in each year. 16 projects were recommended for funding in 2009 at a total disbursement of $1.16M and in 2010, 13 FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 26. 2010 - 72 - CITY OF KITCHENER 6. DTS-10-083 -LOCAL ENVIRONMENTAL ACTION FUND (LEAF) GRANTS: 2010 AND EVALUATION PROCEDURES UPDATE (CONT'D) applications were received and a total disbursement of $97,022 is recommended. Ms. Steiner noted that over the course of evaluating two rounds of applications, issues have risen in regard to the evaluation process and administrative procedures, as outlined in report DTS-10-083. It is proposed to have the Steering Committee and relevant staff provide input in regard to these matters, with a staff report to follow at a future Finance and Corporate Services Committee meeting prior to the next round of grant applications in 2011. Mr. Scott Piatkowski, Citizen Advisor, LEAF Steering Committee, advised that this year's grant applications were evaluated based on program criteria and their ability to provide innovative and transformative solutions to promote environmental improvements. He advised that 6 of 8 applications in the under $50,000. category and 1of 5 applications in the over $50,000. category were selected to receive grant funding. Mr. Piatkowski advised that during the evaluation process he had disclosed a pecuniary interest in the application by the City's Community Services Department relative to his membership in the Westmount Neighbourhood Association; and had abstained at the time, and would do so now, from all discussion concerning this application. Mayor C. Zehr requested a summary of the overall financial standing of the LEAF program and Mr. D. Chapman circulated a copy of a summary report this date to members of the Committee. Councillor J. Gazzola questioned if grant recipients for monies received in 2009 are required to report on project outcomes as a method of accountability. Ms. Steiner advised that reporting is built into the grant agreements that each recipient must enter into. Specifically, they are required to provide a final report on project outcomes and in some instances, are also required to provide an interim report. Councillor Gazzola requested explanation as to why the Friends of Hidden Valley application was turned down. Mr. Piatkowski stated that it is believed Hidden Valley lands can be protected by other means and using LEAF at this time is not appropriate as it could undermine the City's ability to negotiate for purchase of the lands. Ms. Steiner added that the Region of Waterloo's River Road Environmental Assessment is not yet complete and in this regard, there is uncertainty as to the extent of lands that will be available. Mr. Piatkowski also noted that the Friends of Hidden Valley is an informal neighbourhood of interest and therefore, there is concern as it relates to the issue of accountability. Councillor B. Vrbanovic entered the meeting at this time. Councillor K. Galloway referred to the issue of second year grants or continuation of applications, questioning if the Huron Natural area project was not recommended because it previously received grant funding. Ms. Steiner advised that was correct and further clarified that the subject application is strictly operational in nature to provide wages for a second Outdoor Interpreter which is not in keeping with the intent of the program criteria. Councillor C. Weylie questioned if a report is to come forward as to how the funds will be spent under the Community Services application in partnership with the Westmount Neighbourhood Association. Ms. Steiner advised that this application also includes partnering with Friends of Laurentian Wetlands and both pilot projects are required to submit detailed work plans prior to any disbursement of grant funding. Councillor B. Vrbanovic referred to the issue of loans which are typically not a component of LEAF; however, he noted that a loan is being given to the City in regard to the solar roof at the Consolidated Maintenance Facility (CMF). He questioned if the YMCA application for solar panels would warrant consideration if loans were to become a component of LEAF. Mr. Piatkowski pointed out that the YMCA project is profit oriented by virtue of their ability to sell electricity back into the power grid once installation of the solar panels is complete and none of the revenue generated will go back into the LEAF program for benefit of future projects. Councillor J. Gazzola inquired as to any concerns there may be with the group Friends of Laurentian Wetlands in regard to accountability. Mr. Piatkowski responded that this project is being overseen by Community Services staff and in this regard, there are no concerns. FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 26. 2010 - 73 - CITY OF KITCHENER 6. DTS-10-083 -LOCAL ENVIRONMENTAL ACTION FUND (LEAF) GRANTS: 2010 AND EVALUATION PROCEDURES UPDATE (CONT'D) Mr. Derek Sartik attended in support of an application submitted by Community Renewable Energy Waterloo (CREW), a local non-profit organization dedicated to making renewable energy accessible to the citizens of Waterloo Region. Mr. Sartik advised that they are requesting a grant of $566,000. to create an incentive program for faith institutions to undertake rooftop solar photovoltaic installations, in which solar energy will be directly converted into electricity and sold back through the power grid. The premise is to "bait and hook" faith groups to partner in this project, whereby, CREW will complete the process under the Ontario Feed-In Tariff Program (FIT) and provide the 1St kw/hr free to partnering faith groups. Thereafter, CREW will provide appropriate support to each group toward achieving a full 10 kw/hr installation. He noted that concerns had been raised in respect to the project not having confirmed faith group participants nor committed funding partners. He explained that they did not want to raise expectations prematurely among faith groups until the outcome of CREW's LEAF application was known. He added that two private companies partner with CREW and will provide expert assistance through the FIT process. Councillor J. Gazzola requested clarification as to how the 1St kw/hr is to be provided free and the remaining 9 kw/hr to be achieved. Mr. Sartik advised that the 1St kw/hr (5 solar panels) is to be covered by the LEAF grant and CREW will then provide support to each group as they work toward achieving the remaining 9 kw/hr (45 panels) installation. He added that similarly to the City's CMF solar roof, the groups will financially benefit as they become generators of electricity under contract with the Ontario Power Authority. Mayor C. Zehr requested clarification as to the two companies partnering with CREW. Mr. Sartik advised that Mindscape Innovations, of which he is a part, and Arise Technologies are the two companies which have vested interest in CREW, providing discounted expert services. He stated that if this partnership is a stumbling block to grant approval, they would be willing to be removed from the project to provide for an appropriate tendering process. It was noted that it is intended that CREW will manage the application under FIT through a bulk bid process, with each faith group to subsequently enter into individual contracts and be managed independently. Mayor Zehr inquired if there had been any consideration to a loan for this project and Mr. Sartik advised that it had not been considered but would be a reasonable discussion to have. Mayor Zehr cautioned that where loans have been provided in past to interest groups, even under an agreement, there has been expectation by the group that over time it would be forgiven and he was not certain this was the right approach to be taken under the LEAF program. Councillor J. Smola inquired if having heard the delegation if there was sufficient new information to warrant re-consideration of the application. Ms. Steiner advised that nothing substantially new was presented and Mr. Piatkowski added that while this is a good initiative, it essentially provides financial benefit to the faith institutions without guarantee they will follow through beyond the initial start-up. Councillor Vrbanovic questioned that if loans were permitted if this would be a feasible solution for this application, as well as the YMCA application. Mr. Piatkowski suggested that with City staff involvement it may be feasible and in principle, would be the appropriate manner in which to fund this type of application because they are profit oriented. Councillor Vrbanovic suggested that these applications be held in abeyance until the policy discussion around loans has taken place. He acknowledged there is always risk in organizations assuming they will not have to repay a loan; however, he suggested that in this instance there is known revenue generation coming to these groups and the financial position of faith institutions is typically in good standing. Councillor K. Galloway inquired as to the feasibility of providing a smaller amount to allow a pilot project to go forward. Mr. Piatkowski advised that this was not considered, noting that the YMCA has indicated they do not want to proceed with a partial project and have no funds themselves to proceed alone. He added that the size of the CREW initiative is a substantial part of the focus of their project. Mr. Sartik commented that CREW would use whatever amount is given but suggested that anything less than $100,000. (equivalent of 4 installation projects), would not produce a meaningful pilot. FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 26. 2010 - 74 - CITY OF KITCHENER 6. DTS-10-083 -LOCAL ENVIRONMENTAL ACTION FUND (LEAF) GRANTS: 2010 AND EVALUATION PROCEDURES UPDATE (CONT'D) On motion by Councillor B. Vrbanovic the recommendations contained in report DTS-10-083 were brought forward for consideration, as amended, to add a fourth paragraph to provide that the applications of the local YMCA and CREW be deferred pending consideration of the issue of loans, with a recommendation to be brought back in the fall 2010 and a final decision on the two applications to be made at that time in the context of the recommendation. Mayor Zehr and Councillor Galloway spoke in support of the motion, commenting on the importance of projects focused on generating alternate sources of electricity but also in ensuring strict guidelines are in place for loans in the event they are supported as a method of advancing funds. Councillor J. Gazzola stated that he would not support the first paragraph of the motion to approve the applications recommended for funding as one of the largest amounts is to go to a City Department and the majority of under $50,000. applications is by School Boards, who have their own resources, and which gives an appearance of duplication in respect to other programs such as CEIG (Community Environmental Initiative Grants). Councillor G. Lorentz referred to the financial statements and in particular, the column provided for donations, questioning if staff have actively marketed LEAF in this context. Ms. B. Steiner advised that this had not been done to date as to her knowledge this was not conceived in the original operating framework of the program. Mayor Zehr and Councillor Vrbanovic agreed that this would be a good initiative, and in particular, Mayor Zehr suggested that it could be applied in the context of leveraging other source funding to increase project outcomes. It was agreed to include consideration of this matter in the report to come forward under paragraph 2 of the motion. The following motion was voted on in 4 separate parts, with paragraph 1 Carried and paragraphs 2, 3 and 4 Carried Unanimously. On motion by Councillor B. Vrbanovic - itwas resolved: "That the Local Environmental Action Fund (LEAF) grant applications recommended for funding by the LEAF Steering Committee be approved, as outlined in Development and Technical Services Department report DTS-10- 083; and, That the issues which have emerged regarding the evaluation of applications to LEAF and grant administration in the first two years (2009 and 2010), as outlined in report DTS-10-083, as well as consideration of a marketing plan to actively pursue donations and/or leveraging of other funding sources to LEAF, be addressed in a staff report to be considered by the Finance and Corporate Services Committee prior to applications being made and evaluated in the 2011 round of applications; and, That an update be provided to the Finance and Corporate Services Committee in September or October 2010 on the projects and programs funded by LEAF to date; and further, That staff be directed to investigate the feasibility of providing for the issuance of loans under the City's LEAF program to worthwhile projects and programs that meet LEAF criteria; and that final disposition of the 2010 LEAF applications submitted by the local YMCA and Community Renewable Energy Waterloo (CREW) be deferred, pending any recommendation as to the outcome of the investigation which is to be brought forward for consideration as part of the LEAF update in the fall 2010." The Committee then recessed at 11:45 a. m. and reconvened at 1:37 p. m., Chaired by Councillor B. Vrbanovic, with the following members present: Mayor C. Zehr and Councillors J. Gazzola, G. Lorentz, J. Smola, K. Galloway and C. Weylie. FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 26. 2010 - 75 - CITY OF KITCHENER 7. CRPS-10-049 - 2010 ELECTIONS -ADVANCE VOTE AND HOURS OF VOTING FOR INSTITUTIONS /RETIREMENT HOMES The Committee considered Corporate Services Department report CRPS-10-049, dated April 15, 2010 regarding the locations proposed for advanced voting and the hours of use for institutions /retirement homes on Election Day. Mr. R. Gosse reviewed the report, advising that a decentralized tabulation system will be used for the 2010 Municipal Election and should increase the speed with which results are posted. He stated that a major benefit of this system is the fact that if a voter over votes on a ballot, thereby spoiling their vote, the tabulator will notify the elector allowing them to re-vote. He reviewed the locations proposed for use during advanced voting, noting that 14 facilities have been identified as meeting the definition of an institution or retirement home pursuant to Section 46(3) of the Municipal Elections Act; and therefore, are proposed to have reduced voting hours on Election Day. In response to questions, Mr. Gosse advised that with respect to security, the decentralized tabulators are stand-alone devices, which are not vulnerable to hacking. He commented that if there were concerns, the ballots could be counted to ensure that the number that went through the tabulator equals the number of ballots handed out by the Deputy Returning Officers. Mr. Gosse further advised that under the Municipal Elections Act, the Clerk must have regard to the needs of electors and candidates with disabilities. Accordingly, it was decided that accessible tabulators would be used at all of the community centre locations during advanced voting, to enable a voter with a disability the opportunity to vote without or at least with minimal assistance. He stated that for the advanced voting held at the community centres, voters can go to any one of the five locations regardless of the ward they live in. He added that these centres would be promoted as a place for voters with disabilities to attend in order to utilise the accessible tabulators. He noted that by having these tabulators available, the City would meet any obligations it has under the Human Rights Code and/or provincial legislation. On motion by Councillor G. Lorentz - itwas resolved: "That pursuant to Subsection 43 (1) of the Municipal Elections Act, advance voting be held at the locations shown as Appendix 'A' attached to Corporate Services Department report CRPS-10-049 on the following dates and times: Tuesday October 12, 2010 2 p.m. - 8 p.m. Wednesday October 13, 2010 2 p.m. - 8 p.m. Thursday October 14, 2010 4 p.m. - 8 p.m. Saturday, October 16, 2010 10 a.m. - 4 p.m.; and further, That pursuant to Subsection 46 (3) of the Municipal Elections Act, the hours for voting on voting day at the Institutions -Retirement Homes shown as Appendix 'B' attached to Corporate Services Department report CRPS-10-049, be reduced to four hours." CAO-10-015 -ACQUISITION OF LAND FOR ROAD RECONSTRUCTION - SPADINA ROAD AT MILL STREET The Committee considered Chief Administrator's Office report CAO-10-015, dated March 24, 2010 regarding the acquisition of approximately 24.4 square meters of land at 165 Mill Street to facilitate road reconstruction on Spadina Avenue. Councillor G. Lorentz questioned the status of the vacant City serviced lands located directly adjacent to the subject property at 310 Spadina Avenue. Mr. R. Morgan advised that staff anticipate bringing forward a proposal to declare that land surplus once the subject construction project has been completed. He added that he would be hesitant to move forward with the disposition of that land at this time, in case the property dimensions change as a result of the proposed construction project. Councillor Lorentz requested that staff provide a report to this Committee within the next few months concerning the disposition of the lands located at 310 Spadina Avenue. FINANCE AND CORPORATE SERVICES COMMITTEE CAO-10-015 -ACQUISITION OF LAND FOR ROAD RECONSTRUCTION - SPADINA ROAD AT MILL STREET (CONT'D) On motion by Councillor C. Weylie - itwas resolved: "That the Mayor and Clerk be authorized to execute an Agreement of Purchase and Sale, with David Lesley Monk and Cody Bruce Gilbertson, to acquire Part 2 on Reference Plan 58R-16772 at an upset cost of $9,000.00, to facilitate the road reconstruction on Spadina Avenue; said agreement to be satisfactory to the City Solicitor." FIN-10-075- DEVELOPMENT CHARGES BY-LAW AMENDMENT (CEMETERIES) The Committee considered Financial Services Department report FIN-10-075, dated April 13, 2010 concerning a proposed amendment to the Development Charges By-law to introduce a charge for cemetery services. On motion by Mayor C. Zehr - itwas resolved: "That the increase in the need for cemetery services attributable to anticipated development in the City of Kitchener be met, subject to sufficient development charge revenues being generated and other City affordability criteria being met; and, That the Development Charges Amendment Background Study dated March 4, 2010 and the cemetery capital forecast prepared in conjunction with the Study in accordance with Section 10 of the Development Charges Act, 1997, be adopted; and, That future excess capacity identified in the Development Charges Amendment Background Study, dated March 4, 2010, be paid for by development charges or other similar charges; and further, That the proposed Development Charge By-law Amendment, be approved, in the form attached to Financial Services Department report FIN-10-075." 10. CAO-10-013 -HUMAN RESOURCES -PANDEMIC PLANNING STRATEGY The Committee considered Chief Administrator's Office report CAO-10-013, dated March 11, 2010 regarding the introduction of a Human Resources Pandemic Planning Policy, which would come into effect only for the length of a declared pandemic event and forms part of the City's Pandemic Plan. Fire Chief T. Beckett and Ms. D. Stewart presented the report, advising that an influenza pandemic could affect approximately 35% of the population, resulting in a considerable rise in absenteeism due to staff illnesses; staff absences taken to attend to the illness of a sick family member; and/or, imposed social distancing (official quarantine). Chief Beckett advised that the City's Pandemic Plan has been developed working closely with the Region of Waterloo and in the event of a declared pandemic emergency, the Regional Public Health Unit is the lead agency and much of the City's direction will come from them. He stated that the Plan includes the preparations required prior to a declared pandemic, such as identifying essential skills, action plans, skill sets of existing staff, training and education of staff and establishment of policies and protocols. He added that in the event of a staff shortage, it may be necessary to extend staff work hours; re-deploy staff to another division/department; and/or, reassign work activities in order to ensure that essential business functions are maintained. Accordingly, the Human Resources Pandemic Planning Policy was developed to provide direction on temporarily re-assigning staff and the manner through which appropriate compensation would be achieved. Ms. Stewart advised that the City's Overtime & Premium policy states that management staff are not eligible for overtime. In addition, the Sick Leave & WSIB policy limits the amount of time an employee can use sick leave credits to care for a sick family member; however, a pandemic can create exceptional circumstances in both regards. She added that the Pandemic Policy has been drafted to ensure that any deviation from established practices is clearly defined. FINANCE AND CORPORATE SERVICES COMMITTEE 10. CAO-10-013 -HUMAN RESOURCES -PANDEMIC PLANNING STRATEGY (CONT'D) In response to questions, Ms. Stewart advised that through the Policy, employees would be permitted unlimited access to their net sick leave credits to care for sick family members, or due to an imposed quarantine during a declared pandemic emergency. She stated that this would remain in effect until the declaration of a pandemic emergency is rescinded, at which time the provisions of the standard policies and the normal provisions of collective agreements would resume. Chief Beckett added that the Pandemic Policy would only take effect if a pandemic emergency were to be declared by the Province of Ontario, a Medical Officer of Health, or the Mayor of the City of Kitchener. Ms. Stewart noted that employees would only be able to avail themselves of accumulated sick days, and would not be advanced unearned credits for sick leave, vacation, family days or lieu time. On motion by Councillor G. Lorentz - itwas resolved: "That the Human Resources -Pandemic Planning Policy 1, as attached to Chief Administrator's Office report CAO-10-013, be approved for use in the City of Kitchener's Pandemic Plan." 11. FIN-10-063- INTERNAL FINANCIAL STATEMENTS AS AT DECEMBER 31, 2009 The Committee considered Financial Services Department report FIN-10-063, dated April 15, 2010 which provides an update on City spending and revenues compared to the 2009 budget and explains significant variances. Mr. D. Chapman reviewed the report and advised that in early 2009 staff identified a potential for the City to generate atax-supported operating deficit in excess of $4M, largely due to anticipated shortfalls in investment income, supplementary taxes and weather. Accordingly, budget control initiatives were enacted to attempt to mitigate negative variances in operating budgets. He added that these initiatives were successful in mitigating virtually the entire projected deficit, with the approximate cost savings amounting to $747,000. and the total capital closeouts identified at $3.4M for Capital out of Current (CC). He noted that the remaining deficit of under $300,000. was funded through the Tax Stabilization Reserve Fund. Mr. R. LeBrun reviewed the variances attributed to the 2009 deficit, stating that the global economic downturn had significant impacts on the City, including the loss of $1.2M in anticipated investment income and a further $300,000. in supplementary taxes. He added that severe weather caused winter control and road maintenance budgets to be overspent. He noted that the transfer to the operating fund in 2010 would essentially deplete the Tax Stabilization Reserve Fund; however, this has been anticipated and will be brought forward for consideration during the 2011 budget process. Mr. LeBrun further advised that the variances outlined in Schedule 1 of report FIN-10-063 were somewhat offset by delaying the opening of the Williamsburg Community Centre and increased parking revenue. Building Enterprises (Schedule 2) experienced higher than anticipated revenues as a result of high fourth quarter permit activity due to the expected increase in non-residential Development Charges rates effective January 1, 2010; and, a delay in hiring additional building inspectors due to the economic downturn. Golf Courses (Schedules 3 & 4) fell short of their budget targets for 2009 on a consolidated basis by approximately $257,000., primarily due to poor weather conditions and the economy. When factoring in capital closeouts, the Water Utility (Schedule 5) ended in a surplus position of $1.6M, which gives the utility in an overall accumulated surplus of $606,457. Sanitary Sewer Utility (Schedule 6) exceeded budget by approximately $2.5M, which is attributed to the water consumption forecast not being met, thereby reducing surcharge revenues; and increased inflow /infiltration due to higher than average rainfall leading to higher sewage processing costs paid to the Region of Waterloo. Gas Utility (Schedule 7) ended with a positive variance of approximately $324,000.; and the Supply Program posted a favourable variance of approximately $936,000., resultant to rates being higher than those originally forecasted. It was noted that the Supply Program is still in an accumulated deficit position, but should recover to a break-even position over the next year as it is mandated to be revenue-neutral. In response to questions, Mr. D. Chapman advised that a comprehensive report on the gas FINANCE AND CORPORATE SERVICES COMMITTEE 11. FIN-10-063- INTERNAL FINANCIAL STATEMENTS AS AT DECEMBER 31, 2009 (CONT'D) rate adjustment is anticipated to be brought forward for consideration in early June 2010. With respect to the negative variance for gapping, he stated that the budget for this item was not adjusted from its previous level, noting that this is the second year in a row that gapping has been below budget. He added that staff are currently conducting a review of this issue and anticipate bringing forward a report to a future meeting. Councillor J. Gazzola requested clarification regarding the 50.3% variance for the Kitchener Market. Mr. R. Regier advised that this was due to capital projects and a delay in finalizing lease agreements for Market vendors, resulting in a shortfall in lease revenues. He agreed to provide the Committee with a copy of the Market's 2010 budget. In response to questions regarding the deficit shown for Community Services Operations, Mr. J. Witmer advised that this is due in part to the City's obligation to meet CVOR training requirements and an increase in cost of parts and time lost in repair of Fleet vehicles. He added that the approximately $800,000. variance was due to the harsh winter conditions experienced in 2009 and increasing asphalt costs. He stated that even when there are only minimal amounts of snow, the City continues to have a responsibility to clear its sidewalks, community centres and trails. He pointed out that while some line items may show a variance this can often be offset within the budget. He noted as an example that the current construction activities in the downtown have mitigated the need to undertake maintenance in those areas; thereby allowing those funds to be applied elsewhere. Councillor Gazzola requested clarification regarding the variance attributed to the additional transfer to fund sick leave liability. Mr. Chapman indicated that a review is currently underway with the City's actuary of the Sick Leave Reserve, the findings of which will be reported back to this Committee. In response to questions regarding the Golf Courses, Mr. G. Hastings reiterated that both courses were below budget expectations due to poor weather and economic conditions. He noted that where possible, staff tried to manage expenses to mitigate the impact of the lost revenue. Several members spoke to the challenges that the City will have to face in setting the next budget and expressed appreciation of the actions undertaken by staff to mitigate the effects of the originally projected deficit. 12. CRPS-10-044 -GRAFFITI STRATEGY -UPDATE The Committee considered Corporate Services Department report CRPS-10-044, dated April 19, 2010 regarding the development of a graffiti removal by-law. Mr. S. Turner reviewed the report. In response to questions, Mr. Turner advised that currently, Enforcement staff deal with graffiti removal using a provision in Municipal Code Chapter 665 (Property Standards). He stated that the property standards enforcement process is governed by the Building Code Act and includes certain requirements that can affect the timelines related to having graffiti removed. In addition, there is a formal process to appeal the compliance deadline. Accordingly, staff are proposing the development of a stand alone graffiti removal by-law to replace the current property standards provisions. He commented that this would improve the graffiti removal process and allow staff more flexibility in dealing with this issue. On motion by Councillor G. Lorentz - itwas resolved: "That the Waterloo Region Graffiti Strategy update, as attached to Corporate Services Department report CRPS-10-044, be received for information; and further, That a by-law be enacted to regulate the placing of graffiti and the removal of graffiti from property, as outlined in report CRPS-10-044." FINANCE AND CORPORATE SERVICES COMMITTEE 13. CSD-10-031 -CONSOLIDATED MAINTENANCE FACILITY - STATUS UPDATE -APRIL 2010 The Committee considered Community Services Department report CSD-10-031, dated April 21, 2010 providing an update on the status of the Consolidated Maintenance Facility (CMF) project from January to April 2010. Ms. P. Houston reviewed the report. In response to questions, Ms. Houston provided the following example of an identified service improvement/efficiency: indoor vehicle parking capabilities, protecting first-response vehicles from the weather, to allow them to warm up and get out on the road quicker to serve the public; and thereby increasing productivity. In addition, she agreed to examine the possibility of providing additional information with respect to the tendering process as part of the next quarterly status report. 14. DTS-10-072 - LENNOX LEWIS WAY CHANSON AVENUE EXTENSION) - PURCHASE ORDER EXTENSION The Committee considered Development and Technical Services Department report DTS-10- 072, dated April 13, 2010 recommending an extension to the Purchase Order for the construction of Lennox Lewis Way. In response to questions, Mr. D. Chapman agreed to circulate additional information to the members as to the necessity behind the requested extension. On motion by Councillor G. Lorentz - itwas resolved: "That an extension of the original purchase order to The Walter Fedy Partnership in the amount of $11,849.31, be approved to cover additional contract administration costs related to the Lennox Lewis Way (Hanson Avenue Extension) new roadway construction project." 15. ADJOURNMENT On motion, the meeting adjourned at 3:13 p. m. C. Goodeve J. Billett Committee Administrator Committee Administrator