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HomeMy WebLinkAboutFin & Corp Svcs - 2010-05-10FINANCE AND CORPORATE SERVICES COMMITTEE The Finance and Corporate Services Committee met this date commencing at 1:00 p. m. Present: Councillor B. Vrbanovic -Chair Mayor C. Zehr and Councillors J. Smola, J. Gazzola, K. Galloway and C. Weylie. Staff: C. Ladd, Chief Administrative Officer L. Gordon, Acting General Manager, Financial Services T. Speck, General Manager, Corporate Services J. Willmer, Interim General Manager, Development & Technical Services P. Houston, General Manager, Community Services J. Evans, Director of Revenue R. Gosse, Director, Legislated Services & City Clerk S. Adams, Director, Community & Corporate Planning T. Hare Connell, Executive Director, People Services S. Turner, Director, By-law Enforcement C. Fletcher, Director, Facilities Management G. Murphy, Director of Engineering J. Sheryer, Assistant City Solicitor L. Bansen, Manager, Human Resources P. Harris, Manager of Licensing I. Magid, Supervisor, Benefit Development S. Ogilvie, Supervisor, Corporate Health & Safety B. Short, Classification Administrator L. Alonzo, Performance Measurement /Internal Auditor J. Billett, Committee Administrator CRPS-10-060 -REQUEST TO SELL REFRESHMENTS -CHERRY PARK NEIGHBOURHOOD ASSOCIATION -CHERRY PARK - 84 STRANGE STREET -JULY 10, 2010 The Committee considered Corporate Services Department report CRPS-10-060, dated April 28, 2010 concerning a request to sell refreshments in Cherry Park for a special event. On motion by Councillor K. Galloway - itwas resolved: "That the request of the Cherry Park Neighbourhood Association to sell refreshments and arts and crafts at Cherry Park, 84 Strange Street on July 10, 2010, be approved, provided the necessary licence, including Health approval is obtained." CRPS-10-063 -REQUEST TO SELL MERCHANDISE & REFRESHMENTS IN VICTORIA PARK -JULY 10, 2010 -NON-VIOLENCE FESTIVAL The Committee considered Corporate Services Department report CRPS-10-063, dated May 4, 2010 concerning a request to sell merchandise and refreshments in Victoria Park for a special event. On motion by Councillor K. Galloway - itwas resolved: "That the request of the Non-Violence Festival to sell food and merchandise in Victoria Park on July 10, 2010, be approved, provided the necessary licences, including Health approval is obtained; and further, That the Non-Violence Festival be granted an exemption from Chapter 450 (Noise) of the City of Kitchener Municipal Code in conjunction with an event in Victoria Park on July 10, 2010 from noon to 9:00 p. m." CRPS-10-065 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - DOWNTOWN STREET CLEANING The Committee considered Corporate Services Department report CRPS-10-065, dated May 3, 2010 requesting a noise exemption relative to Downtown street cleaning. FINANCE AND CORPORATE SERVICES COMMITTEE CRPS-10-065 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - DOWNTOWN STREET CLEANING (CONT'D) It was noted on the agenda that any recommendation from the Committee concerning this matter would be considered at the special Council meeting to be held later this same date. On motion by Councillor K. Galloway - itwas resolved: "That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to Beeta Restoration to undertake cleaning of the streets and sidewalks in the Downtown Core between the hours of 10:00 p. m. and 7:00 a. m. from May 10 to May 21, 2010." CRPS-10-066 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - WESTHEIGHTS COMMUNITY CHURCH - ANNUAL OUTDOOR CARNIVAL -JUNE 6, 2010 The Committee considered Corporate Services Department report CRPS-10-066, dated May 3, 2010 concerning a request for a noise exemption relative to a special event. On motion by Councillor K. Galloway - itwas resolved: "That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to the Westheights Community Church between the hours of 3:00 p. m. and 9:00 p. m. on June 6, 2010." CRPS-10-062 -LIQUOR LICENCE APPLICATION - THE MUSEUM CAFE - 10 KING STREET WEST The Committee considered Corporate Services Department report CRPS-10-062, dated May 3, 2010 concerning a request for temporary waiving of a condition to the liquor licence agreement for The Museum Cafe relative to a special event. On motion by Councillor C. Weylie - itwas resolved: "That Condition #4 of the liquor licensing agreement entered into by The City of Kitchener and 1327236 Ontario Inc. (o/a The Museum Cafe), be waived for the period June 9 to 19, 2010 to allow the Museum Cafe to sell and serve liquor until 2:00 a. m. during the Magnetic North Festival." 2010 EARTH DAY CELEBRATIONS -UPDATE Ms. P. Houston advised that as part of the 2010 Earth Day celebrations, Community employers, including the Corporation of the City of Kitchener, participated in an outdoor 20 minute makeover event. 236 City employees from across the Corporation joined together to clean up areas around City Hall. General Managers of the Corporation posed an internal challenge to each other to see who could entice the most participants from their respective Departments. The Chief Administrator's Office repeated their winning efforts of last year, leading the challenge with the most participants again this year. Unsuccessful General Managers upheld their part in the challenge by stating publicly their thoughts on why the CAO's Office is the best Department in the Corporation. CAO-10-005 -HUMAN RESOURCES POLICY REVIEW The Committee considered Chief Administrator's Office report CAO-10-005, dated March 2, 2010 concerning changes and additions to the Human Resources (HR) Policies Manual, as outlined in Schedule "A" to report CAO-10-005. Ms. T. Hare O'Connell advised that a comprehensive review of all HR Polices was undertaken, as influenced by recommendations arising from an internal audit process, and staff is confident all policies now compare well with both the public and private business sectors. She added FINANCE AND CORPORATE SERVICES COMMITTEE MAY 10. 2010 - 82 - 7. CAO-10-005 -HUMAN RESOURCES POLICY REVIEW (CONT'D that a comprehensive education plan will follow to raise staff awareness and announced that as a result of realignment of duties, Mr. B. Short, Classification Administrator, is now assuming responsibility for policy review and document oversight. Mr. B. Short advised that review of the HR Policies Manual was broken into 5 categories, including: new; amended; deletions; transfer of ownerships/accountability; and status quo. 2 new policies were introduced, being: Inclusive Recruitment and Hiring Practices, and Religious Observance Leave. The first replaces an existing policy, "Employment -Human Rights" and seeks to ensure the City uses recruitment /hiring practices that eliminate barriers and allows development of a diverse workforce reflective of the community. The second provides accommodation measures for religious observances based on equal treatment of employees without discrimination on the basis of creed. Ms. S. Ogilvie introduced a third new policy entitled "Violence in the Workplace" which seeks to maintain a work environment free of workplace violence and harassment and to promote a respectful environment among employees and the public. Mayor C. Zehr commented that the Violence in the Workplace policy is silent on the issue of abuse of social networking devices, such as Facebook or Twitter and questioned if it should be included under this policy. Ms. L. Bansen advised that Communications staff is currently working on a separate Corporate policy to come forward at a later date in respect to social networking devices. Mayor Zehr suggested that this issue should be at least cross-referenced in the Violence in the Workplace policy and Ms. Bansen concurred. Councillor J. Gazzola referred to the "Inclusive Recruitment and Hiring Practices" policy, questioning what is meant by the stated purpose of the policy. Mr. B. Short responded that the intent is to ensure that the City's hiring practices do not discriminate on the protective grounds as set out in the Ontario Human Rights Code (OHRC) but rather is based solely on education, experience and skills and recommends the best person for hire. Councillor Gazzola questioned the need for policy where the issue is already governed by senior government laws. He asked if there has been any incidents and to what degree, in which legislated standards have not been adhered to relative to the new policies as proposed. Ms. Ogilvie advised that there have been incidents in the Corporation relative to the Violence in the Workplace policy, adding that the Provincial legislation requires the Corporation to have a policy in place. Councillor Gazzola asked as to the number of incidents. Ms. C. Ladd responded that a question concerning negative acts in the workplace was included in the Employee Culture Survey which indicates there have been incidents in various areas of the Corporation and staff is working to better understand and develop strategies to address this matter. She pointed out that the survey was conducted on a confidential basis and as such, the City does not have accurate numbers in terms of incidents. She advised, however, that the survey produced aggregate information which could be provided to Council on the basis of it remaining confidential. Councillor C. Weylie referred to the "Religious Observance Leave" policy, asking if there is the potential for some staff to have more days off than is applied to the standard Statutory Holidays. Mr. Short stated that this could potentially be the case, the accommodation of which is covered by the policy. In regard to incidents of violence in the workplace, Councillor B. Vrbanovic questioned the feasibility of comparing statistical data of the Corporation to other like sized organizations to determine the degree to which such incidents occur. Ms. Ladd cautioned in making such comparison as the City's policy is zero tolerance and as such, no flexibility in these matters should be an inherent message regardless of the amount of incidents. She added that while staff can attempt to obtain comparisons, it is unlikely they will be successful given other organizations are likely to be reluctant to share such data. Councillor J. Gazzola questioned if an employee of non-Christian faith would be permitted to work on Christmas Day. Mr. Short advised that this could be accommodated only where operationally feasible, explaining that most employees who work at City Hall would not be in a position to work on Christmas Day as City Hall would remain closed. Ms. Ladd added that while City facilities would remain closed, avoiding additional expense to the Corporation, an FINANCE AND CORPORATE SERVICES COMMITTEE MAY 10. 2010 - 83 - CITY OF KITCHENER 7. CAO-10-005 -HUMAN RESOURCES POLICY REVIEW (CONT'D) employee could potentially opt to work from home through a TeleWork connection. Councillor J. Gazzola raised concerns with regard to the volume of policy changes being considered this date and advised that he would like this matter to be deferred to allow additional time to review the documents in more detail. Councillor B. Vrbanovic referred to the policy to be deleted, entitled "Hiring - Senior Management Vacancy", and asked that staff investigate the feasibility of retaining the policy relative to M-Grade positions. Mayor C. Zehr commented that the policies, and in particular the new policies related to the City's hiring practices and violence in the workplace, are important to reinforce non- discriminatory practices and zero tolerance of negative acts. He added that notwithstanding senior governing legislation, these policies speak to the relationship of the Corporation with its employees and whatever can be done to reinforce a high level standard should be supported. On motion by Councillor J. Gazzola - itwas resolved: "That the staff recommendation contained in Chief Administrator's Office report CAO- 10-005 (Human Resources Policies Review) be deferred for further consideration to the June 7, 2010 Finance and Corporate Services Committee meeting, pending additional information from staff to address concerns as raised by the Committee at its meeting of May 10, 2010." FIN-10-076 - MUSAGETES ARTS & CULTURE FUND The Committee considered Financial Services Department report FIN-10-076, dated April 14, 2010 concerning a recommendation of the Musagetes Arts & Culture Fund Advisor for disbursement of grants to various arts and culture organizations. Ms. P. Houston explained that in 2005 the City received a gift of property in the amount of $1.1M from the Kitchener and Waterloo Community Foundation (KWCF). Under agreement with KWCF the Musagetes Arts & Culture Fund was established as a trust fund for purposes of disbursing the gift within 5 years of execution of the agreement. An Advisor Agreement was also entered into with 1258703 Ontario Limited (original donor) so the original donor could provide advice to the City on use of the gifted property. The remaining funds are to be disbursed in 2010 and recommendations have been provided by the Fund Advisor. Councillor J. Gazzola raised concerns that the benefactors as recommended consist of organizations that have received significant public funds in support of their programs and questioned if the City has any control over disbursement of the gift. Ms. P. Houston advised that technically the City does have some control by way of the agreement with KWCF; however, she pointed out that the City entered into the Advisor Agreement so as to consider the wishes of the original donor. Mayor C. Zehr added that there are no public funds involved in this allocation as the monies to be disbursed are strictly by donor contribution and the agreement was entered into in good faith to ensure proper handling of the gift in keeping with requirements of the Canada Revenue Agency. On motion by Mayor C. Zehr - itwas resolved: "That on the recommendation of the Musagetes Arts & Culture Fund Advisor, the following grants be made from the Fund, as outlined in Finance and Corporate Services Department report FIN-10-076: The Museum $ 269,037 Kitchener-Waterloo Art Gallery $ 200,000 Kitchener-Waterloo Symphony Foundation $ 100,000 University of Waterloo School of Architecture $ 100,000 Perimeter Institute $ 50,000 FINANCE AND CORPORATE SERVICES COMMITTEE MAY 10. 2010 - 84 - 8. FIN-10-076 - MUSAGETES ARTS & CULTURE FUND (CONT'D Canadian Clay & Glass Gallery 25 000 Total $ 744,037; and further, That on the recommendation of the Musagetes Arts & Culture Fund Advisor, the following grants be made from the Fund, as outlined in Finance and Corporate Services Department report FIN-10-076, subject to the recipient qualifying as a registered charity or identifying a registered charity willing to act as a sponsoring organization for their program: CAFKA $ 50,000 Open Ears Festival $ 30,000 MT (Multicultural Theatre) Space 20 000 Total $ 100,000." CRPS-10-061 -PUBLIC MEETING -LICENSING OF MOTORIZED ICE CREAM VEHICLES The Committee considered Corporate Services Department report CRPS-10-061, dated April 29, 2010 concerning the issue of licensing motorized ice cream vehicles. A Notice of Intention to consider licensing of motorized ice cream vehicles and enactment of a by-law to provide for their operation was published in The Record on April 30, 2010. Ms. P. Harris advised that staff was directed by Council on January 18, 2010 to report on the feasibility of licensing motorized ice cream vehicles. In this regard, a draft by-law attached to report CRPS-10-061 has been prepared to amend Chapter 586 (Refreshment Vehicles) of the Municipal Code to add motorized ice cream vehicles and the Committee's direction in respect to these matters is requested. Mr. Patrick Carter, Manager, Dickie Dee Ice Cream, spoke in opposition to the proposal to licence motorized ice cream vehicles. He stated that he has operated an ice cream business since 1978 utilizing self-powered bicycle units, which has provided substantial employment to youth and who will be adversely impacted by introduction of motorized vehicles. He added that the safety of children is paramount, commenting that his vehicles provide a 360° view whereas trucks have many blind spots. He suggested that the proposed sign on the back of a truck is not sufficient and delegates responsibility to other than the truck operator. He noted that trucks use diesel generators for their freezer units and suggested this is a step backward in respect to the City's environmental goals. Mr. Carter advised that his business operates from an established built facility whereas the individual seeking to licence motorized vehicles operates from a garage; and in this regard, he questioned the issue of health and safety. He added that he is aware the individual has been convicted of operating without a valid licence and asked that the Committee reject the proposal to licence motorized ice cream vehicles for the reasons stated. Mr. Carter responded to questions, advising that he currently operates with 9 bicycle units and it is his opinion his employees will be adversely impacted in their ability to maintain a viable income. He added that he currently rents his building facility to which a business tax may be built into the rental fee. Mr. Michael Dogzantis spoke in favour of the proposal, advising that he has attempted to have motorized vehicles licensed by the City for a number of years. He raised concerns that the time allocated to him to speak to this issue was insufficient to fully explain to the Committee his operation and the measures he has taken to address issues of health and safety. He advised that no City official has met with him to discuss how motorized vehicles may be allowed to operate, nor said that operating would endanger lives, nor have they explained to him why operating has been a nuisance. He raised concerns that the draft by-law was prepared specifically in regard to him and that it would be passed without opportunity for public comment. He stated that prohibiting motorized vehicles eliminates his ability to operate a legitimate business and he could comply with a by-law as long as it is not prohibitive to his operation. He disagreed with the proposed time limit of 10 minutes to be parked in any one place as he considered this to be insufficient to accommodate customers and asked that opportunity be given to him to meet with City staff to convey his perspective on how motorized FINANCE AND CORPORATE SERVICES COMMITTEE MAY 10. 2010 - 85 - CITY OF KITCHENER 9. CRPS-10-061 -PUBLIC MEETING -LICENSING OF MOTORIZED ICE CREAM VEHICLES (CONT'D) vehicles may be regulated to operate. Mayor C. Zehr asked Mr. Dogzantis if City staff advised him that a licence to operate is required and Mr. Dogzantis acknowledged that he had been so advised. Mayor Zehr inquired if he had operated without a licence in the City and Mr. Dogzantis concurred that he had operated his business on approximately 30 occasions in the City without a license. Mayor Zehr questioned if the delegation was operating in the City of Guelph and Mr. Dogzantis advised that he had been but was no longer doing so as Guelph prohibits his operation by by-law in similar manner to the City of Kitchener. Mayor Zehr questioned if he operates from a facility similar to the Dickie Dee business and Mr. Dogzantis advised that he cannot afford to do so but could if allowed to lawfully operate his business. Mayor Zehr asked Mr. Dogzantis to point out content of the draft by-law that would limit effective operation of his business. Mr. Dogzantis reiterated concerns regarding the 10 minute timeline to park in any one location, noting that his vehicles are not classified as stationary and therefore, even if he obtains permission from a property owner, he could not park on the property for any length of time beyond the 10 minutes. He added that zoning regulations also may prohibit his vehicles from utilizing a stationary location. Mayor Zehr advised that he had discussed this matter with Mr. Dogzantis in late 2009 and agreed to bring the matter forward in a public manner for a decision of Council as a whole and advised Mr. Dogzantis that he would be obliged to comply with whatever decision of Council is made. Mr. Dogzantis acknowledged his obligation to comply with Council's decision; however, again asked that he be given time to meet with City staff to further discuss his operation and how it may be regulated to operate. Councillor J. Gazzola inquired if there is any legislation that prohibits the City from limiting this type of business to bicycle units. Ms. J. Sheryer pointed out that the City's by-law does not prohibit Mr. Dogzantis from operating. She advised that he cannot operate on City roadways but does have opportunity to operate as a stationary business in multiple locations similar to licensing of a chip wagon. Councillor Gazzola inquired if Mr. Dogzantis would find fault if the City chooses to limit this kind of business to bicycle units as a measure of addressing environmental concerns. Mr. Dogzantis advised that he would disagree on the basis that the City would be prohibiting a legitimate business from operating. Councillor B. Vrbanovic inquired if Mr. Dogzantis was operating in any other Cities, aside from Guelph. Mr. Dogzantis advised that he currently operates in Cambridge and London, where motorized ice cream vehicles are allowed and is required to have a licence there to operate. Councillor Vrbanovic inquired if he had given consideration to operating bicycle units and Mr. Dogzantis advised he had but did not consider it a viable opportunity as there is already an existing business that would be difficult to compete with on the same level. Mayor C. Zehr advised Mr. Dogzantis that should this matter be deferred for further discussion, in the interim it would still be illegal for him to operate his motorized vehicles in the City and Mr. Dogzantis concurred. On motion by Councillor K. Galloway - itwas resolved: "That consideration of licensing motorized ice cream vehicles and a proposed draft by- law to amend Chapter 586 (Refreshment Vehicles) of the Municipal Code to add motorized ice cream vehicles, as outlined in Corporate Services Department report CRPS-10-061 (P. Harris), dated April 29, 2010, be deferred for further consideration to the June 7, 2010 Finance and Corporate Services Committee meeting to provide opportunity for additional dialogue among all interested parties." 10. DTS-10-094 -STORM WATER RATE BY-LAW AND UTILITY IMPLEMENTATION The Committee considered Development and Technical Services Department report DTS-10- 094, dated May 5, 2010 concerning a stormwater rate and utility implementation plan. The principle of shifting $5.8M in stormwater programming from the tax base to a rate based approach, together with an annual service level increase of $4.1 M, was previously considered FINANCE AND CORPORATE SERVICES COMMITTEE MAY 10. 2010 - 86 - CITY OF KITCHENER 10. DTS-10-094 -STORM WATER RATE BY-LAW AND UTILITY IMPLEMENTATION (CONT'D1 and approved by Council on January 18, 2010. On subsequent review of a rate schedule and 10 year Forecast, the annual sustainable service level of $9.9M has been revised to $13M to include: inflationary adjustments; refined construction cost estimates not originally considered in the 2007 Feasibility Study; and administrative and support service overheads. It is noted that the staff recommendations contained in report DTS-10-094 are to be tabled this date and stand deferred for further consideration and public consultation to a special meeting of the Finance and Corporate Services Committee to be held May 17, 2010. Mr. G. Murphy and Mr. Mike Gregory, AECOM, presented an overview of the report, including: details of the increased annual service level; 10 Year Operating and Capital Forecast; rate calculation and rate schedule fora Tiered Flat Fee structure; enabling by-law; staffing requirements; and consultation process with places of worship and local School Boards. Councillor J. Gazzola requested clarification as to why it is proposed to switch from a tax base to rate based approach. Mr. G. Murphy responded that key to defining a rate based approach is introducing a logical connection between the total cost of stormwater service and a methodology to assign the cost of service to users. The Tiered Flat Fee is primarily based on the amount of impervious area (i.e. surfaces resistant to water penetration) that a citizen or business owns as opposed to the current method of apportioning stormwater funding based on property assessment values for eligible taxpayers (many properties are tax-exempt). The more impervious area an individual property owner has, the greater the demand on the City's SWM system either for flood control or water quality treatment purposes. Mr. Murphy stated that it is proposed to switch from the tax base as it provides no guarantee of a sustainable level of service. Councillor C. Weylie inquired if actions taken by a property owner to reduce the amount of impervious area and thereby the amount of stormwater run-off from their property is being taken into consideration. Mr. Murphy advised that options are being reviewed for a credit program for the non-residential sector where typically there is more of a benefit resulting from installation of larger stormwater management facilities on site. He added that the residential sector would be more challenging to administer given the volume of residential properties in the City. Mr. Murphy advised that development of a credit program for the non-residential sector will be completed over the next two years and would include public consultation. Councillor K. Galloway inquired if the $13M service level outlined in the 10 Year Operating and Capital Forecast will be sufficient such that there will be no increase in SWM rates over the 10 year period. Mr. Murphy responded that the intent is to attempt to forecast based on today's costs; however, uncontrollable influences over costs can and do occur, such as increases in construction costs and/or changes in legislated standards that may result in the need for increased rates. He added that the forecast has attempted to factor in inflationary costs. Councillor B. Vrbanovic questioned the impact of not including the increased service level of $4.1 M in terms of staffs ability to maintain the City's SWM program. Mr. Murphy advised that the increased service level is what will enable the City to move to a sustainable service level, including addressing rehabilitation of the Victoria Park lake. Programs such as stormwater management pond retrofits; reconfiguration of facilities to improve water quality to a higher level; watercourse improvements to address erosion control (eg. Wards Brigadoon Pond), were given as examples of work that would be impacted. Councillor Vrbanovic questioned if then the choice is to fund this model or to find $4.1 M each year through tax dollars or re- prioritization of projects to achieve the desired level of service and Mr. Murphy concurred. Councillor Vrbanovic referred to the Program Comparison of 2007 Estimated Expenditures and the 2010 Updated Expenditures and requested that staff provide for the May 17 meeting a breakdown of the $3.1 M changes due to program cost adjustments and what the program would look like in terms of annual costing if the $4.1 M service level increase is not provided. Councillor Gazzola requested clarification of the funding transfer from the capital levy. Mr. Murphy advised that the capital budget is to be re-worked to remove projects directly related to stormwater management which is estimated to reduce the tax supported operating budget by FINANCE AND CORPORATE SERVICES COMMITTEE MAY 10. 2010 - 87 - CITY OF KITCHENER 10. DTS-10-094 -STORM WATER RATE BY-LAW AND UTILITY IMPLEMENTATION (CONT'D1 $6.2M. It is also proposed to shift various amounts totaling approximately $794,000 from the water, sanitary and gas utility accounts and $1.9M from the Federal gas tax revenue to the stormwater utility model. Councillor Vrbanovic added that the 5 sources of funding are outlined in Clause 4 of the staff recommendation, totaling approximately $8.9M of which $6.2M will be removed from the tax supported operating budget and the funds removed from the capital forecast over a period of 10 years will fund the new stormwater utility model. Councillor Gazzola raised concerns with the estimated $2.5M to be expended over the 10 year forecast on preventative maintenance. Mr. Murphy advised that this relates to such things as catchbasin cleaning, leaf collection, and culvert improvements and is a function of the City's Operations. He agreed to provide additional information on what is included in the program changes from 2007. Mayor Zehr questioned if the $8.9M equates to existing expenditures and the only new funding is the $4.1 M. and Mr. Murphy stated that this was correct. In regard to discussion pertaining to funds being removed from the capital budget, Mayor Zehr commented that the funds are not being removed but rather shifted to a new source funding model and the majority relates to existing operating and capital costs. He noted that Kitchener has been working on this proposal in conjunction with the City of Waterloo and questioned if Waterloo is planning to meet the same timelines or if Kitchener is ahead of schedule; and what impact that may have on rate comparisons. Mr. Murphy advised that Waterloo is taking a differing approach in that they are attempting to fund their existing level of service. He noted that Waterloo's budget is significantly less at $2.5M annually and over the next 4 years they plan to phase from a tax based system to a rate based approach based on their current service level. Mr. Murphy advised that the rates between the two cities will be substantially different due to the size difference in funding being sought. He added that Kitchener has pressing capital project needs to address requiring a more expedient transition. Councillor J. Gazzola noted a change in percentage of revenue distribution from 3.2% based on the current tax system to 9.9% based on the new proposed model for the non-residential tax exempt category and requested a breakdown of what is included in the higher percentage for the May 17 meeting. Mr. J. Schinkel, Community Christian Reform Church, advised that the design and construction of their place of worship took into consideration stormwater management objectives to ensure stormwater principles are supported and continually practiced to mitigate the effects of stormwater run-off. He expressed the opinion that the amount of stormwater generated from their property is substantially less than what is to be determined from the building footprint, property size and impervious area. He added that their programming is heavily dependent on member contributions and the proposed charge to their property would have a detrimental impact. Mr. Schinkel asked that the Committee take into consideration their SWM system and practices; and acknowledgement of their organization as a non-profit institution solely dependent on member contributions. In response to Councillor Vrbanovic, Mr. Schinkel stated that they were not necessarily opposed to a rate charge but would like to see some form of recognition for those who invest in stormwater management systems. Mr. Art Sinclair, Greater Kitchener Waterloo Chamber of Commerce, advised that the Chamber has been in discussions with both the Cities of Kitchener and Waterloo, and have concerns regarding the different approaches being taken despite proceeding jointly; the ability of the business sector to assume costs during economic recovery; and would like assurances that the rates will be used only for stormwater management purposes. Mr. Kelly Vieira, General Manager, Cadillac Fairview Mall, acknowledged the need to support stormwater management programs but disagreed that the proposed Tiered Flat Fee based on impervious area is an equitable solution. He suggested that the non-residential sector would be over-charged by approximately 31%, pointing out that a substantial amount of public impervious areas have not been taken into consideration, citing examples of paved roads / trails and concrete sidewalks. He suggested that public impervious areas should be FINANCE AND CORPORATE SERVICES COMMITTEE MAY 10. 2010 - 88 - CITY OF KITCHENER 10. DTS-10-094 -STORM WATER RATE BY-LAW AND UTILITY IMPLEMENTATION (CONT'D1 segregated and a proportionate amount be divided among all sector properties to achieve a uniform annual charge per parcel. Mr. G. Murphy advised that he would be prepared to meet with Mr. Vieira to review his suggestion in greater detail and would report back to the May 17 Committee meeting on the outcome of their discussion. Councillor K. Galloway questioned if this would mean a residential property would pay the same amount as Cadillac Fairview Mall for the impervious areas referenced. Mr. Vieira advised that under the example provided they would, adding that his intent is to find an equitable way of distributing the cost of such areas among all tiers. Ms. MaryAnn Wasilka, resident, commented that there is some documentation that suggests multiple residential units do not cost more to provide municipal services. She advised that she lives in amulti-residential building and is paying 2 times the municipal rate for residential units and does not own a car. She commented that the largest impervious areas are parking surfaces and tax dollars should not be used to subsidize same unless converting to a pervious surface and would be better used to enhance alternate modes of transportation. She suggested that if a multiple residential unit does not cost more to service they should not be taxed at a higher rate and user fees should be less as they should not be made to subsidize lower density residential units. Mr. G. Murphy suggested that he provide a comparison of tax supported services under the proposed rate structure for the May 17 meeting. Ms. P. Houston added that the tax ratio is 1.0 for single residential to 1.95 for multi-residential; however, the larger ratio is in part attributed to varying factors in evaluating assessment, citing an example of condominium units which are assessed differently than a rental multi-residential unit. Mr. John O'Brien, Business Administrator, Roman Catholic Diocese of Hamilton, raised concerns with the impact that stormwater charges will have to programming run by Parishes in the Diocese, suggesting that the dollars spent on assistance for the less fortunate in the community will now have to be paid to the City to cover the charges. He added that the Diocese sees the charge as a breach in treatment of non-profit, charitable organizations which are recognized by senior levels of government through tax exemption in recognition of their charitable work. He stated that the basis of the Tiered Flat Fee presumes property owners have control over the amount of impervious area; however, he expressed the opinion this is not true given City standards that dictate services to be used in the design and construction of their facilities. Mr. O'Brien stated that consideration of an exempt class is important to recognize the good work undertaken by the Parishes and to ensure this work does not fall back on the municipality. He asked that a decision in respect to places of worship be deferred as they would not want to commence paying a charge ahead of any potential credit program. Father W. Kuzma, St. Aloysius R.C. Church, advised his Parish runs a number of social programs to assist in the community and relies on limited member contributions to support the Church. He stated that if charged the stormwater fee there would be little surplus dollars left for charitable programming. He asked that this additional tax not be applied to their property and that they remain tax exempt. Councillor J. Gazzola requested that staff provide information for the May 17 meeting on the City's building permit /site plan process as it relates to determining what is needed on a site for stormwater management. Councillor Vrbanovic asked that this information also include what is required by the City in respect to parking surfaces. Councillor Vrbanovic noted that the City of London has implemented a stormwater rate system and questioned if it is known if places of worship are required to pay the fee in that municipality. Mr. G. Murphy advised that London's stormwater rate program does include a fee to places of worship. Ms. Mary Jane Patterson, Waterloo Region Green Solutions, advised that stormwater management played a significant role in the Residential Energy Efficiency Project's House for FINANCE AND CORPORATE SERVICES COMMITTEE 10. DTS-10-094 -STORM WATER RATE BY-LAW AND UTILITY IMPLEMENTATION (CONT'D1 Sustainable Living pilot project. She urged the City to not only consider the goal of cost recovery but encourage reduction of stormwater run-off through diversion practices and begin the proposed credit program as soon as possible. She added that residential properties should be included in education efforts and the proposed credit program to maximize environmental benefits City-wide. Councillor J. Gazzola agreed with the delegation and requested that in the event the proposed stormwater management program goes forward, that staff include residential properties in their investigations related to development of a credit program. Mr. Andy Hook, resident, also raised concerns that no incentive is provided to encourage residential properties to take mitigating steps to reduce stormwater run-off on their individual properties and the information provided gives no indication of an appeal process. He suggested that rather than implementing the proposed program the City should concentrate efforts on means to divert stormwater run-off back into the ground. Mayor C. Zehr advised that he had been in discussions with representatives of the two local School Boards prior to the meeting this date regarding their concerns as to the City's legal authority to apply stormwater rates to their properties. Mayor Zehr proposed that the staff recommendations be revised to add a clause to provide that staff meet with the two local School Boards to clarify the issue of the City's authority. On motion by Mayor C. Zehr - itwas resolved: "That the recommendations contained in Department and Technical Services Department report DTS-10-094 (stormwater Rate By-law and Utility Implementation), be tabled, as modified to add an additional clause to read: 'That City staff meet with the Waterloo Region District School Board and the Waterloo Region Catholic School Board in order to clarify the matter of a municipality's legal authority to apply stormwater rates to the Boards' properties.'; and stand deferred for further consideration to a special Finance and Corporate Services Committee meeting to be held on May 17, 2010." 11. ADJOURNMENT On motion, the meeting adjourned at 5:20 p. m. J. Billett Committee Administrator