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HomeMy WebLinkAboutFin & Corp Svcs - 2010-06-07 FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 9:05 a.m. Present: Councillor B. Vrbanovic - Chair Mayor C. Zehr and Councillors J. Smola, G. Lorentz, J. Gazzola, K. Galloway and C. Weylie. Staff: C. Ladd, Chief Administrative Officer D. Chapman, General Manager, Financial Services T. Speck, General Manager, Corporate Services J. Willmer, Interim General Manager, Development & Technical Services P. Houston, General Manager, Community Services H. Gross, Director, Project Administration & Economic Investment 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 W. Malcolm, Director, Utilities J. Witmer, Director, Operations C. Fletcher, Director, Facilities Management G. Murphy, Director, Engineering S. Ross, Assistant City Solicitor B. Musselman, Manager, Operations L. Baillargeon, Manager, Asset Optimization L. Bansen, Manager, Human Resources P. Harris, Manager, Licensing D. Ritz, Supervisor, Operations - Design & Development S. Ogilvie, Supervisor, Corporate Health & Safety B. Short, Classification Administrator P. Albrecht, Inclusion Coordinator J. Ouellette, Facilitator, Volunteer Resources S. Weare, Social Work Intern J. Billett, Committee Administrator C. Goodeve, Committee Administrator CRPS-10-069 - EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE 1. - CALVARY MEMORIAL UNITED CHURCH - ANNUAL STRAWBERRY SOCIAL - JUNE 26, 2010 The Committee considered Corporate Services Department report CRPS-10-069, dated May 14, 2010 concerning a noise exemption request. On motion by Councillor C. Weylie - it was resolved: “That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to the Calvary Memorial United Church on Saturday, June 26, 2010, between the hours of 1:00 p.m. and 4 p.m., for their Annual Strawberry Social.” CRPS-10-070 - EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE 2. - CANADIAN CANCER SOCIETY - RELAY FOR LIFE - JUNE 18-19, 2010 The Committee considered Corporate Services Department report CRPS-10-070, dated May 14, 2010 concerning a noise exemption request. On motion by Councillor C. Weylie - it was resolved: “That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to the Canadian Cancer Society, Waterloo Region Unit, for their Relay For Life Event at Resurrection High School between the hours of 9:00 a.m. on June 18 and 12 noon on June 19, 2010.” FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 95 - CITY OF KITCHENER CRPS-10-071 - EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE 3. - THE HIVE EATERY AND SPIRITS - 2010 CANCER BEATDOWN FUNDRAISER - JUNE 19, 2010 The Committee considered Corporate Services Department report CRPS-10-071, dated May 26, 2010 concerning a noise exemption request. On motion by Councillor C. Weylie - it was resolved: “That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to The Hive Eatery and Spirits at 200 King Street East, on Saturday, June 19, 2010, between the hours of 12 noon and 9:00 p.m. for their 2010 Cancer Beatdown fundraiser for the Canadian Cancer Society.” CRPS-10-072 - EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE 4. - BOBBY O’BRIENS - BLUES BAND - JUNE 9-OCTOBER 6, 2010 The Committee considered Corporate Services Department report CRPS-10-072, dated May 14, 2010 concerning a noise exemption request. It was noted in 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 C. Weylie - it was resolved: “That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to Bobby O’Brien’s, 125 King Street West, for each Wednesday evening between the hours of 8:00 p.m. and 11:00 p.m., from June 9 to October 6, 2010, for a Blues band playing on their patio area.” CRPS-10-073 - EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE 5. - KITCHENER PORTUGUESE CLUB - PORTUGAL DAY CELEBRATION - JUNE 12, 2010 TH - 40 ANNIVERSARY CELEBRATION - AUGUST 12, 2010 The Committee considered Corporate Services Department report CRPS-10-073, dated May 14, 2010 concerning a noise exemption request. It was noted in 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 C. Weylie - it was resolved: “That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to the Kitchener Portuguese Club Inc. for their Portugal Day Celebration on th Saturday, June 12, 2010, between the hours of 9:00 a.m. and 11:00 pm., and their 40 Anniversary Celebration on Saturday, August 12, 2010, between the hours of 9:00 a.m. and 11:00 p.m.” CRPS-10-075 - EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE 6. - CHERRY PARK NEIGHBOURHOOD ASSOCIATION - CHERRY FESTIVAL - JULY 10, 2010 The Committee considered Corporate Services Department report CRPS-10-075, dated May 20, 2010 concerning a noise exemption request. On motion by Councillor C. Weylie - it was resolved: FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 96 - CITY OF KITCHENER CRPS-10-075 - EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE 6. - CHERRY PARK NEIGHBOURHOOD ASSOCIATION - CHERRY FESTIVAL - JULY 10, 2010 (CONT’D) “That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to the Cherry Park Neighbourhood Association for their Cherry Festival on July 10, 2010, between the hours of 11:00 a.m. and 6:00 p.m.” CRPS-10-076 - EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE 7. - VICTOR JANNERT - EVERGREEN CRESCENT NEIGHBOURHOOD BARBECUE - JUNE 19, 2010 The Committee considered Corporate Services Department report CRPS-10-076, dated May 25, 2010 concerning a noise exemption request. On motion by Councillor C. Weylie - it was resolved: “That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to Mr. Victor Jannert for a neighbourhood barbecue, to be held at his residence at 42 Evergreen Crescent, on Saturday, June 19, 2010, between the hours of 7:00 p.m. and 11:00 p.m.” CSD-10-038 - GRAND RIVER ACCESSIBILITY ADVISORY COMMITTEE (GRAAC) 8. - 2010 WORK PLAN The Committee considered Community Services Department report CSD-10-038, dated April 29, 2010 which provides an outline of GRAAC’s 2010 Work Plan. On motion by Councillor C. Weylie - it was resolved: “That the Grand River Accessibility Advisory Committee Work Plan (2010), as attached to Community Services Department report CSD-10-038, be approved.” CRPS-10-083 - AMENDING 2010 COUNCIL MEETING SCHEDULE 9. The Committee considered Corporate Services Department report CRPS-10-083, dated May 13, 2010 concerning a request to amend the 2010 Council and Standing Committees meeting schedule. On motion by Councillor C. Weylie - it was resolved: “That the 2010 meeting schedule of Council and Standing Committees be amended by changing the scheduled Council meeting from August 30, 2010 to Tuesday, September 7, 2010.” CRPS-10-077 - REQUEST FOR COMMUNITY FESTIVAL DESTINATION 10. - SENIOR WOMEN’S CANADIAN FAST PITCH CHAMPIONSHIPS - AUGUST 11-15, 2010 - PETER HALLMAN BALL YARD The Committee considered Corporate Services Department report CRPS-10-077, dated May 26, 2010 concerning a liquor licence application for a special event. On motion by Councillor C. Weylie - it was resolved: “That the City of Kitchener has no objection to a liquor licence being issued to Civitan Sports - Waterloo Region for the Senior Women’s Canadian Fast Pitch Championships to be held August 11 to 15, 2010 at Peter Hallman Ball Yard, 220 Hayward Avenue; and further, FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 97 - CITY OF KITCHENER CRPS-10-077 - REQUEST FOR COMMUNITY FESTIVAL DESTINATION 10. - SENIOR WOMEN’S CANADIAN FAST PITCH CHAMPIONSHIPS - AUGUST 11-15, 2010 - PETER HALLMAN BALL YARD (CONT’D) That the tournament be declared a “Community Festival” for the purpose of applying for a liquor licence.” CRPS-10-078 - REQUEST TO HOLD A SUMMER FUN DAY AT CHANDLER MOWAT 11. COMMUNITY CENTRE - 222 CHANDLER DRIVE - JULY 3, 2010 The Committee considered Corporate Services Department report CRPS-10-078, dated May 26, 2010 concerning a request to hold a special event at the Chandler Mowat Community Centre. On motion by Councillor C. Weylie - it was resolved: “That the request of Chandler Mowat Neighbourhood Association to hold a barbecue and garage sale at Chandler Mowat Community Centre, 222 Chandler Drive on July 3, 2010, be approved, provided the necessary licence, including Health and Fire approvals, is obtained.” CRPS-10-080 - REQUEST BY HOLY TRINITY SERBIAN ORTHODOX CHURCH TO HOLD 12. A SPECIAL EVENT - JULY 25, 2010 The Committee considered Corporate Services Department report CRPS-10-080, dated May 27, 2010 concerning a request to hold a special event at the Holy Trinity Serbian Orthodox Church and for a noise exemption in conjunction with the event. On motion by Councillor C. Weylie - it was resolved: “That the Holy Trinity Serbian Orthodox Church be approved to operate a special event at Holy Trinity Serbian Orthodox Church, 700 Fischer-Hallman Road, Kitchener on July 25, 2010, from 1:00 p.m. to 10:00 p.m. provided the necessary licence, including Health and Fire approvals is obtained; and, That the Holy Trinity Serbian Orthodox Church be granted an exemption from Chapter 450 (Noise) of the City of Kitchener Municipal Code in conjunction with an event at 700 Fischer-Hallman Road, Kitchener on July 25, 2010, from 2:00 p.m. to 10:00 p.m.; and further, That the City of Kitchener has no objection to a liquor licence being issued to the Holy Trinity Serbian Orthodox Church for an event on July 25, 2010.” CRPS-10-081 - REQUEST FOR A MIDWAY AT RIBFEST 13. - VICTORIA PARK - JULY 16-18, 2010 The Committee considered Corporate Services Department report CRPS-10-081, dated May 27, 2010 concerning a request to operate a midway in Victoria Park. On motion by Councillor C. Weylie - it was resolved: “That GTA Midways Inc. be granted permission to operate a Midway in Victoria Park, during Ribfest from July 16 to 18, 2010 subject to the following: Hours of operation; DateStartClose Friday, July 16 5:00 p.m. 10:00 p.m. Saturday, July 17 Noon10:00 p.m. Sunday, July 19 Noon6:00 p.m. ; and, FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 98 - CITY OF KITCHENER CRPS-10-081 - REQUEST FOR A MIDWAY AT RIBFEST 13. - VICTORIA PARK - JULY 16-18, 2010 (CONT’D) That the music at the Midway be turned down at 8:00 p.m.; and, That the music be turned off one hour before closing time; and further, That the required licence be obtained prior to operating the Midway.” CRPS-10-082 - REQUEST TO HOLD A NEIGHBOURHOOD FESTIVAL 14. - BREITHAUPT COMMUNITY CENTRE - AUGUST 18, 2010 The Committee considered Corporate Services Department report CRPS-10-082, dated May 27, 2010 concerning a request to hold a special event at the Breithaupt Community Centre. On motion by Councillor C. Weylie - it was resolved: “That the request of the K-W Breithaupt Optimist Club to hold a neighbourhood festival selling refreshments at 350 Margaret Avenue on August 18, 2010, be approved, provided the necessary licence, including Health approval is obtained.“ FIN-10-093 - NATURAL GAS RATES 15. The Committee considered Financial Services Department report FIN-10-093, dated May 26, 2010 concerning a recommendation to effect an overall decrease in natural gas rates for the City’s system gas customers. The Record A Notice of Intention to consider natural gas rate changes was published in on June 5, 2010. No member of the public was in attendance this date to speak to this matter. Ms. L. Baillargeon advised that due to lower gas prices, the City is now in a position to 33 decrease the supply rate from 31.5¢/m to 25.0¢/m. The transportation component, based on the National Energy Board’s approved rate for TransCanada Pipeline tolls, is increasing from 33 4.491¢/m to 6.182¢/m, and Ontario Energy Board (OEB) approved rates for Union Gas will produce various, negligible rate changes to the City’s wholesale rate for the delivery component. Ms. Baillargeon added that as previously reported to the Committee, the OEB has approved a split in rates for general service customers between smaller, residential customers and larger, commercial/industrial customers. The City’s billing system can now accommodate 3 the split rate categories. Customers who consume more than 50,000 m annually will be charged under a Rate Category M2 (General Service) and those consuming less than 50,000 3 m annually will be charged under a Rate Category M1 (General Service). The overall impact will be dependent on the customer’s consumption rate. Ms. Baillargeon advised that the combined impact of the supply, transportation and delivery rate changes is expected to produce an overall decrease of 10% ($104) annually for the average residential customer and a decrease of 9% for larger, commercial/industrial customers dependent on consumption and contract demand parameters. The proposed rate changes take effect July 1, 2010. Councillor J. Gazzola inquired why the rate changes did not come forward earlier in 2010. Ms. Baillargeon advised that the supply program is a cost based service (non-profit / non-deficit) and earlier in the year the City was not in position to forecast either a surplus or deficit. She added that rate changes normally occur in the spring of each year. Councillor Gazzola inquired if the introduction of HST would apply to natural gas rates and Ms. Baillargeon st confirmed that it would apply to all components, effective July 1. Councillor Gazzola inquired as to the impact to the City’s budget relative to the rate changes. Ms. Baillargeon advised that staff anticipated the change to the delivery component and therefore, the 2010 budget reflects this change. Consumption impacts only the larger, commercial/industrial users and it was noted consumption volumes have increased in this category such that it is expected projections will be close to budget. The transportation component is increasing higher than projected having minor impact to budget projections and a reduction in gas pricing was anticipated, with the supply rates projected at close to the new rates. Mr. D. Chapman added FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 99 - CITY OF KITCHENER FIN-10-093 - NATURAL GAS RATES (CONT’D) 15. that at the end of 2008, the City had significant write-downs resulting in a deficit. Staff anticipated introduction of a rate reduction in 2009 or 2010; however, at the end of 2009 was only at a break even position and is only now in a position to effect a rate decrease. Councillor J. Gazzola noted that the 3 steps in rates represents a change in principle and notwithstanding the current resulting decrease to residential customers, he questioned what the future impact might be. Ms. Baillargeon advised that there are 2 components to the delivery rate, being a fixed rate and a 3 step variable rate and the rates applied are to ensure cost recovery. She suggested that there would be minimal impact to customers overall. Mayor C. Zehr questioned if the commodity / fuel portion is a separate calculation having no material impact to the budget and Ms. Baillargeon responded that was correct. Ms. Baillargeon also confirmed that the changes in rates proposed were reflected in the 2010 budget. Councillor C. Weylie referred to the policy relating to terms of service which provides that customers who temporarily discontinue service during any 12 consecutive months without payment of the monthly fixed charge for the months in which the gas is temporarily disconnected shall pay for disconnection and reconnection. She inquired as to the cost to the customer and Mr. Chapman advised that he would follow-up in this regard and provide the information to Council. Carried Unanimously. The following motion was On motion by Mayor C. Zehr - it was resolved: “That the supply component of the natural gas rates be decreased to 25.0 cents per cubic meter from 31.6 cents per cubic meter for system gas customers of the City of Kitchener effective July 1, 2010; and, That the transportation component of the natural gas rates be increased to 6.182 cents per cubic meter from 4.491 cents per cubic meter for system gas customers of the City of Kitchener effective July 1, 2010 to reflect the final rates charged by TransCanada Pipelines as previously approved by the National Energy Board; and further, That the delivery components of the natural gas rates be changed as proposed in Financial Services Department report FIN-10-093, as outlined in Appendix A for all Kitchener delivery customers effective July 1, 2010.” CRPS-10-100 - ADDENDUM TO REPORT CRPS-10-061 16. - LICENSING OF MOTORIZED ICE CREAM VEHICLES The Committee considered Corporate Services Department report CRPS-10-100, dated June 3, 2010, addendum to report CRPS-10-061, concerning a request to license motorized ice cream vehicles. This matter was previously considered by the Committee at is meeting of April 30, 2010 at which time it was deferred to allow further dialogue between City staff and the individual requesting consideration of licensing motorized ice cream vehicles. Ms. P. Harris advised that staff met with Mr. Michael Dogzantis to discuss his concerns th regarding the draft by-law presented by staff at the April 30 meeting related to the licensing of motorized ice cream vehicles. As a result of their meeting and should Council decide to allow operation of motorized ice cream vehicles, a revised draft by-law in response to Mr. Dogzantis’ concerns is attached to report CRPS-10-100 detailing the following changes: installation of a back-up camera on the vehicle for added safety; no ringing of bells, horns or music between 8:00 p.m. and 9:00 a.m. or at a volume that disturbs a resident and no more than 20 seconds every 5 minutes when the vehicle is stopped or in motion; vehicles may stop for 10 minutes at any one serving location and remain for an additional 10 minutes if continually serving customers; and, FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 100 - CITY OF KITCHENER CRPS-10-100 - ADDENDUM TO REPORT CRPS-10-061 16. - LICENSING OF MOTORIZED ICE CREAM VEHICLES (CONT’D) vehicles shall not operate between 10:00 p.m. and 9:00 a.m. Mayor C. Zehr inquired if staff were aware of any other municipalities who have altered their by-laws relative to licensing motorized ice cream vehicles. Ms. Harris advised that to her knowledge those currently licensing these vehicles continue to do so, except the City of Guelph who no longer allows motorized vehicles but does permit stationery operation. Mr. Michael Dogzantis advised that he agreed with the condition related to the ringing of bells ceasing at 8:00 p.m.; however, he asked that the Committee consider a change to the conditions related to the time allowed to stop the vehicle for servicing customers and the time operations must cease in the evening. He suggested that 30 minutes should be allowed for stopping in any one location as it was his opinion the additional 10 minutes provided is insufficient from a safety perspective to ensure all customers have moved away from his vehicle prior to his leaving. He asked that he be permitted to work beyond the 10:00 p.m. stipulation to allow for evenings wherein he may find a plaza location or other location where there are people milling about that he could pull into and provide his service. He added that lighting on his vehicle makes it more visible in the late evening hours. Mayor Zehr questioned why the delegation would want to be in a residential area after 10:00 p.m. and Mr. Dogzantis responded that it would not be a residential neighbourhood but rather a commercial plaza or other setting where people may be congregated. Mr. Dogzantis further clarified that the time proposed for ceasing of operation was a compromise of staff in that it was originally 9:00 p.m. and they are now proposing to extend it by one hour. Councillor B. Vrbanovic questioned if the vehicle is idling while stopped to service customers. Mr. Dogzantis responded that the vehicle is turned off and a separate generator is used for the cooling unit. He added that a safety switch is affixed to the serving window such that when opened the engine will not operate. Councillor J. Gazzola advised that he could not support amending the City’s by-law to allow motorized ice cream vehicles, primarily for reasons of safety in that children are not cognizant of the dangers inherent in the roadway. He added that this type of service is not good for the environment and there is an existing business using bicycles that provides the service and employment for many, including students. Councillor Gazzola noted that the City would not be depriving the delegation of operating a business but rather regulating how it is to be run. Councillor G. Lorentz agreed with comments concerning the safety of children, adding that allowing the individual to randomly pull into a plaza or other stationery location would have potential impact to existing businesses at the location. Councillor Lorentz stated that the existing business operating bicycles is environmentally friendly, safer and unobtrusive, and questioned why this matter has come forward for consideration. Mayor C. Zehr advised that having been refused by staff on several occasions, the delegation had approached him regarding his request to be licensed. Mayor Zehr advised that he had supported staff’s position in the matter; however, he was of the opinion that it was important to have staff go through the process of bringing forward a report so that this issue could be considered publicly and a collective decision made by the whole of Council. Carried Unanimously. The following motion was On motion by Councillor J. Gazzola - it was resolved: “That no action be taken to amend Chapter 586 (Refreshment Vehicles) of the City’s Municipal Code to provide for licensing of motorized ice cream vehicles.” FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 101 - CITY OF KITCHENER CRPS-10-085 - APPEAL - REFRESHMENT VEHICLE LOCATION 17. - 385 FAIRWAY ROAD SOUTH The Committee considered Corporate Services Department report CRPS-10-085, dated May 31, 2010 concerning a request to operate a refreshment vehicle at 385 Fairway Road South. On motion by Councillor J. Gazzola - it was resolved: “That notwithstanding the distance separation requirements of Chapter 586 (Refreshment Vehicles) of the City’s Municipal Code, the request of Adam Thompson to be issued a license to operate a refreshment vehicle at 385 Fairway Road South, be granted.” CRPS-10-086 - APPEAL - REFRESHMENT VEHICLE LOCATION 18. - 1255 WEBER STREET EAST The Committee considered Corporate Services Department report CRPS-10-086, dated May 31, 2010 concerning a request to operate a refreshment vehicle at 1255 Weber Street East. On motion by Councillor J. Gazzola - it was resolved: “That notwithstanding the distance separation requirements of Chapter 586 (Refreshment Vehicles) of the City’s Municipal Code, the request of Adam Thompson to be issued a license to operate a refreshment vehicle at 1255 Weber Street East, be granted.” CRPS-10-087 - APPEAL - REFRESHMENT VEHICLE LOCATION 19. - 730 OTTAWA STREET SOUTH The Committee considered Corporate Services Department report CRPS-10-087, dated May 31, 2010 concerning a request to operate a refreshment vehicle at 730 Ottawa Street South. On motion by Councillor C. Weylie - it was resolved: “That notwithstanding the distance separation requirements of Chapter 586 (Refreshment Vehicles) of the City’s Municipal Code, the request of Adam Thompson to be issued a license to operate a refreshment vehicle at 730 Ottawa Street South, be granted.” CRPS-10-088 - APPEAL - REFRESHMENT VEHICLE LOCATION - 45 MANITOU DRIVE 20. The Committee considered Corporate Services Department report CRPS-10-088, dated May 31, 2010 concerning a request to operate a refreshment vehicle at 45 Manitou Drive. On motion by Councillor J. Gazzola - it was resolved: “That notwithstanding the distance separation requirements of Chapter 586 (Refreshment Vehicles) of the City’s Municipal Code, the request of Aurora Bastias to be issued a license to operate a refreshment vehicle at 45 Manitou Drive, be granted.” ND CRPS-10-084 - INTEGRITY COMMISSIONER - OPTION FOR 2 YEAR OF CONTRACT 21. The Committee considered Corporate Services Department report CRPS-10-084, dated May nd 28, 2010 requesting direction relative to a 2 year renewal of the contract which provides for an Integrity Commissioner. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 102 - CITY OF KITCHENER ND CRPS-10-084 - INTEGRITY COMMISSIONER - OPTION FOR 2 YEAR OF CONTRACT 21. (CONT’D) Mr. R. Gosse advised that the first year contract with GJ Levine Law Office is expiring and provides an option for a second year on the same terms and conditions.He stated that during the past year there were no submitted requests for investigations and he was seeking direction of Council in respect to continuation of the contract. Mayor C. Zehr acknowledged that under the Municipal Act it is not mandatory to appoint an Integrity Commissioner; however, he noted that it does have impact to the City’s Code of Conduct and was of the opinion it would still be of benefit to renew the contract. On motion by Mayor C. Zehr - it was resolved: “That subject to the satisfaction of the City Solicitor, the contract with Greg Levine, GJ Levine Law Office, be renewed to provide that Mr. Levine will act as the City’s Integrity Commissioner for an additional one (1) year period, based on an annual retainer of $2,000. and investigation fees of $150/hour plus expenses.” The Committee then recessed at 10:08 a.m. and reconvened at 10:15 a.m. with all members present, except Councillor J. Gazzola. CAO-10-022 - ADDENDUM TO REPORT CAO-10-005 22. - HUMAN RESOURCES POLICIES REVIEW The Committee considered Chief Administrator’s Office report CAO-10-022, dated May 28, 2010, addendum to report CAO-10-005, concerning changes and additions to the Human Resources Policy Manual, as outlined in revised Schedule “A” to report CAO-10-022. This matter was previously considered by the Committee at its May 10, 2010 meeting at which time it was deferred pending additional information from staff. Mr. B. Short advised that staff have revised two policies as a result of the Committee’s initial discussions. Firstly, reference has now been included in the Violence in the Workplace policy to address the issue of electronic communication / social media; and secondly, Policy II-165 (Hiring - Senior Management - Vacancy), originally designated for deletion, has been reinstated and amended to provide for hiring of senior management at Grade M3 and above. Mr. Short added that an administrative housekeeping amendment was made to a third policy, II-265 (Sick Leave, Family Medical Leave and Workplace Safety and Insurance Board), to correct a by-law number reference. Mayor Zehr referred to Policy II-165, commenting that it is important that Council understand that they are not directly hiring staff at this level as this is the responsibility of the Chief Administrator; rather the policy provides for opportunity to discuss the relevant position with staff prior to hiring. Ms. C. Ladd pointed out that the proposed grade level, M3, would include staff at the Director level. She noted that historically, Council has been involved in discussions regarding hiring of staff at the General Manager level and in some M4 positions such as an Executive-Director or Fire Chief position. She asked that the Committee consider changing the grade level in this policy to M4. Ms. Ladd also pointed out that the policy provides that a report be circulated to Council and no action be taken on the hiring for a period of 14 days thereafter. She suggested that given today’s competitive market, waiting for a period of 2 weeks could result in loss of a desirable candidate. She asked that the Committee consider changing this to provide that a recommendation rather than a report be provided to Council at the earliest opportunity for discussion prior to hiring. Councillor B. Vrbanovic commented that it was his understanding such report would be prepared at the time vacancy occurs rather than at the point of hire, which would allow for discussions prior to recruitment taking place. Mr. B. Short confirmed that this was the intent in respect to timing of the report. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 103 - CITY OF KITCHENER CAO-10-022 - ADDENDUM TO REPORT CAO-10-005 22. - HUMAN RESOURCES POLICIES REVIEW (CONT’D) Councillor Vrbanovic requested clarification as to what staff positions are included in Grade M3. Mr. Short advised that this level reflects the positions at a Directors level. He added that Grade M4 would include staff positions at the level of Executive-Director, Fire Chief and General Managers. Councillor Vrbanovic questioned if there was any reason the policy could not remain at Grade M3. Mayor Zehr acknowledged that informal discussions at this level have taken place in the past; however, it was his opinion the policy as stated encroaches closer into an administrative role and in terms of policy could be construed as over-stepping. A motion by Mayor C. Zehr was brought forward for consideration to amend draft policy II-165 (Hiring - Senior Management - Vacancy) to change the grade level from M3 to M4. Councillor Vrbanovic stated that he would not support the amendment given informal discussions have occurred in the past and this represents Council’s only opportunity to discuss in a reasonable timeframe potential opportunity for re-organization or realignment of duties. Lost. Mayor C. Zehr’s motion was then voted on and On motion by Mayor C. Zehr - it was resolved: “That the changes dated May 10, 2010 to the Human Resources Policies outlined in revised Schedule “A” attached to Chief Administrator’s Office report CAO-10-022 (addendum to report CAO-10-005), dated May 28, 2010, be approved.” FIN-10-074 - FINANCIAL PLAN - KITCHENER WATER DISTRIBUTION SYSTEM 23. The Committee considered Financial Services Department report FIN-10-074, dated May 21, 2010 concerning a financial plan for the City’s Water Distribution System. Mr. B. Musselman advised that under the City’s license to operate and maintain its Water Distribution System, a financial plan must be approved by Council resolution and submitted to the Province of Ontario by July 1, 2010. The plan is to demonstrate the financial viability of the drinking water system and is based on 2010 approved budgets, inventoried capital asset data and other financial forecasts. Mayor C. Zehr inquired if this is a separate report from other annual reports coming forward related to the Drinking Water Quality Management Standard. Mr. Musselman confirmed the financial plan is separate and apart, and the other reports referenced will continue to come forward annually. Mayor Zehr inquired if the Region of Waterloo is also required to have its own financial plan and Mr. Musselman confirmed this to be the case. On motion by Councillor G. Lorentz - it was resolved: “That the ‘Financial Plan - Kitchener Water Distribution System’, be approved, as it demonstrates of the financial viability of the Kitchener drinking water system in accordance with Ontario Regulation 453/07 (Financial Plans) under subsection 30 of the Safe Drinking Water Act.” FIN-10-078 - STIMULUS PROJECT UPDATE - JUNE 2010 24. The Committee considered Financial Services Department report FIN-10-078, dated June 2, 2010 which provides an update on the status of stimulus funding projects. Mr. D. Chapman apprised the Committee of issues related to the following stimulus projects: King Street Reconstruction; Bridgeport Community Centre; City Hall Lighting; and the Consolidated Maintenance Facility Solar Roof. Mr. Chapman further advised that due to present lack of clarity in the Provincial claim process, there is need to amend contracts and agreements to provide for earlier release of the 2% holdback to ensure submission of all FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 104 - CITY OF KITCHENER FIN-10-078 - STIMULUS PROJECT UPDATE - JUNE 2010 (CONT’D) 24. invoices and a final report to the Province by their deadline of April 15, 2011. In this regard, he assured that all existing warranty provisions would still be maintained in contract documents. Mr. Chapman then advised that the projects submitted under the Community Adjustment Fund Intake II were not selected for funding. Finally, he asked that Mayor Zehr be directed by resolution to request the Minister of Agriculture, Food and Rural Affairs to extend the deadline for submission of the final report on the CMF project from April 15 to June 30, 2011. Mr. Chapman emphasized that this is not a request to extend the project completion date. He noted, however, that the project completion date is only 15 days prior to the April deadline which does not allow sufficient time to receive, process and pay all invoices; and is further compounded by amounts held back under the Construction Lien Act. He stated that provision is made in the Infrastructure Stimulus Funding Agreement to allow for an extension of the date but is at the sole discretion of the Minister. The requested extension would align with the June 2011 deadline for filing claims and final reports under the Recreation Infrastructure Canada (RInC) projects. Mayor C. Zehr referred to the extended hours of work related to the Junior Financial Analyst position and questioned if this should be incorporated into the recommendations. Mr. Chapman advised that this matter falls within the purview of the Chief Administrator’s authority and therefore, does not need to be included in the recommendations. Mayor Zehr questioned if it is anticipated all projects will be physically completed by the March 31 deadline and Mr. Chapman confirmed that at this time all projects are expected to meet the completion deadline. Mayor Zehr asked as to the latest update of risk analyses and Mr. Chapman advised that project teams continually monitor and update their respective risk analyses and these are reviewed monthly by the Steering Committee. Mayor Zehr commented that direction to him to request an extension from the Minister of Agriculture, Food and Rural Affairs relative to the CMF project is reasonable and should be done given the outcome of meetings held with senior government representatives, as part of the Federation of Canadian Municipalities of Ontario Conference and the Large Urban Mayors Caucus, which gave clear indication that there will be no extension of project deadlines, barring exceptional circumstances and should not be counted on. Mayor Zehr advised that he would be prepared to make any requests for extensions on a case by case basis. Councillor J. Gazzola entered the meeting at this time. On motion by Councillor C. Weylie - it was resolved: “That the Mayor and Clerk be authorized to execute an amendment to the following contracts and agreements, satisfactory to the City Solicitor, to provide for the early release of the 2% maintenance holdback or portions thereof respecting projects for which infrastructure stimulus funding or other grant(s) have been obtained: McGillivray & Sons Contractors Limited (September 22, 2009) - to allow the City to release the 2% maintenance holdback on February 15, 2011 for the stimulus fund work completed for Greenbrook drive; Coco Paving Inc. (April 28, 2009) - to allow the City to release the 2% maintenance holdback on February 15, 2011 for the stimulus fund portion of the work; and, That the Mayor and Clerk be authorized to execute forthcoming contracts, agreements, and amending agreements, satisfactory to the City Solicitor, reducing the release of the 2% holdback from two (2) years from the date of substantial completion to February 15, 2011 in relation to stimulus fund projects; and, That the Mayor be directed to issue correspondence to the Minister of Agriculture, Food and Rural Affairs to request an extension to the timeline for the submission of the final claim/report for the Consolidated Maintenance Facility project under the Infrastructure Stimulus Fund from April 15, 2011 to June 30, 2011 in accordance with Section 5.8 of the funding agreement and consistent with the timelines adopted for Recreation Infrastructure Canada (RInC) projects; and further, FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 105 - CITY OF KITCHENER FIN-10-078 - STIMULUS PROJECT UPDATE - JUNE 2010 (CONT’D) 24. That subject to the requirements of the contribution agreements, the City publicly recognize the completion of stimulus projects by way of a media release, with the exception of the following projects which will have public events in addition to a media release: Aquatic Facility Upgrades CMF Solar Roof Centre in the Square McLennan Park Development Bridgeport Community Centre Sportsworld Arena Upgrade” CSD-10-040 - CAPITAL FUNDING FOR MCLENNAN PARK - PHASE 2 25. The Committee considered Community Services Department report CSD-10-040, dated May 28, 2010 concerning options for capital funding to proceed with Phase 2 of the McLennan Park project. Ms. P. Houston advised that to address a funding shortfall staff propose to fund Phase 2 of the McLennan Park project through transfer of funds from the following capital accounts: Major Park Development; Court Rehabilitation; Tree Planting - Parks & Streets; and Community Trails. Ms. Houston emphasized the importance of funding approval to allow the tender to be awarded and construction to commence so as to meet the March 31, 2011 deadline under the Infrastructure Stimulus Funding program. She added that staff looked at reducing the scope of the project to fit the current budget; however, this would mean loss of major components that would be more costly to add at a future date. Mayor C. Zehr inquired as to what projects will not proceed if the funding transfers are approved. Ms. Houston advised that there will be no major impact to committed projects, adding that there is monies available to continue with trail development. Mayor Zehr expressed concerns related to community trails, noting that this is an area in which Council has approved increased funding levels but with the proposed transfer now appears will fall further behind. Ms. Houston advised that some trail development may be delayed but would involve those not high in priority. Councillor B. Vrbanovic suggested that information should be provided in respect to what balance remains in the affected accounts and a listing of the projects not proceeding as a result of the proposed funding transfer. Councillor J. Gazzola questioned if there is nothing that can be done in respect to reducing the scope of the project. Ms. Houston advised that this project involves a specialized field and of 2 bids, only one was submitted on time. She advised that to reduce the scope of the project sufficient to eliminate the shortfall would mean removal of core components such as the washroom and skateboard park and the concern is that these will be much more costly to add in future. Councillor Gazzola suggested that consideration should be given to living within means of the project budget even it results in postponing some components. Councillor K. Galloway commented that staff has done a good job of attempting to reduce costs and noted that the skateboard park is one of the components residents are most excited about. She added that the skateboard park is costing more due to site conditions and the surface it must go on; and also expressed the opinion it would not be reasonable to expect the public not to have use of a washroom. Councillor G. Lorentz agreed that more information is needed, commenting that court rehabilitation is a subject to which he frequently receives complaints because of naturalization issues. He noted that Council will later consider a report dealing with an invasive tree pest (Emerald Ash Borer) to which costs to mitigate its damage will be significant. Councillor Lorentz stated that this is a district park rather than a neighbourhood park and a balanced approach is needed for all areas affected. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 106 - CITY OF KITCHENER CSD-10-040 - CAPITAL FUNDING FOR MCLENNAN PARK - PHASE 2 (CONT’D) 25. A motion by Councillor G. Lorentz was brought forward to defer consideration of this matter pending additional information from staff concerning the accounts from which the funding source is to be provided and the resulting impact to existing projects. Mr. Dan Ritz advised that in respect to the Major Parks account it is proposed to defer upgrades to sports field lighting which is to be reviewed and prioritized over the next year as part of the Parks Master Plan. In regard to court rehabilitation, he stated that asphalting of some basketball courts is to be delayed and regarding tree planting, there is funding in other accounts that can be used for plantings. He added that community trails is also part of the Parks Master Plan review and prioritization, and therefore, some can potentially be deferred to 2011. Councillor J. Gazzola advised that he would not support the staff recommendation, agreeing that this is a district park affecting all in the community and suggesting there must be give and take in its development. He too raised concerns with the issue of the Emerald Ash Borer as this is an imminent threat that must be dealt with. He suggested that staff re-examine priorities. Ms. Houston reminded the Committee that this project is subject to the deadline imposed under the Infrastructure Stimulus Fund program and must be tendered by next week to meet the deadline. She also asked that if staff is required to, the Committee provide clarification as to what is to be prioritized. Councillor K. Galloway pointed out that 2/3 of this project is being funded through stimulus funding and there is urgency in going forward with this tender to meet the project deadline. She added that this park goes beyond a district park with interest coming from outside the community and across the Province; and is not just to meet the needs of one neighbourhood. She stated that staff have struggled with the increased costs and have advised that the funding sources proposed are not earmarked for 2010. Councillor Galloway added that she fully supports community trail development and recognizes the need for funding in this area, but was of the opinion the needs of this park should also be recognized and the project go forward. Mayor C. Zehr agreed that this park goes beyond regional, likening it in some ways to Victoria Park. He acknowledged the reality of the need to move forward relative to the stimulus funding and noted that transfers from one stimulus project to another as a result of one coming in under-budget is not allowed under the program; and therefore, the City must cover funding shortfalls, if any. Mayor Zehr requested clarification of the funds related to court rehabilitation. Mr. Ritz advised that these are funds used for court improvements and can be directly related to aspects of McLennan Park. He stated that in identifying priorities under this account it may be that some improvements would be delayed beyond 2011 to 2012. Mayor Zehr requested clarification of funds related to Tree Planting. Mr. Ritz advised that this would only have impact to the 2010 balance and confirmed there is ability to off-set this transfer through re- prioritization under other accounts. Mayor Zehr questioned what projects would be deferred under Community Trails. Mr. Ritz advised that a prioritization of trails is to be undertaken under the Parks Master Plan development and it is anticipated that some will be phased over a period of time. He cited an example of the Doon trails where a time lag in approvals is expected resulting in a phased approach over 2011-2012. Mayor Zehr questioned what the percentage increase might be if some components of McLennan Park were done separately at a later date. Mr. Ritz advised that he could not provide an exact figure, adding that typically removing major components from a tender does not produce the best economical outcome and those components will cost more later on as there is no ability to negotiate better pricing as part of a comprehensive tender. Mayor Zehr questioned if deferral to the June 14 Council meeting would still allow the tender to go forward in sufficient time to meet the stimulus funding deadline and Mr. Ritz confirmed that it would still allow the tender to be awarded in sufficient time. Ms. P. Houston advised that a significant donation to the City for community trails is pending that would off-set the need to re-prioritize, which is anticipated in the near future. Mayor Zehr confirmed that a Corporation has proposed a donation to the City but was not at liberty to disclose the amount as the donation has yet to be officially received. Councillor J. Gazzola spoke in support of a deferral to obtain information as to details of the park components, donation and tender document. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 107 - CITY OF KITCHENER CSD-10-040 - CAPITAL FUNDING FOR MCLENNAN PARK - PHASE 2 (CONT’D) 25. Councillor G. Lorentz withdrew his motion of deferral given timing is critical in respect to the stimulus funding and on the basis that staff would provide the information requested prior to the June 14 Council meeting. Carried, by a recorded vote The following motion was voted on and , with Mayor C. Zehr and Councillors G. Lorentz, J. Smola, B. Vrbanovic, K. Galloway and C. Weylie voting in favour; and Councillor J. Gazzola, voting in opposition. On motion by Councillor K. Galloway - it was resolved: “That the following capital funding sources be approved for McLennan Park Phase 2: Major Park Development (2010/11) $234,228 Court Rehabilitation (2010) $74,647 Tree Planting - Parks and Streets (2010) $72,407 Community Trails (2010) $175,000” CAO-10-021 - COMMUNITY ENGAGEMENT STRATEGY - 2010 UPDATE 26. The Committee considered Chief Administrator’s Office report CAO-10-021, dated May 25, 2010 concerning a request for approval of a Community Engagement Policy Statement and took kit. Shelley Adams, Janice Ouellette and Sue Weare presented an update on work undertaken by the Community Engagement Strategy Working Group and steps to be taken toward implementing a proposed Community Engagement Policy Statement and tool kit. The policy statement reads: “To the best of its ability and as appropriate, the City of Kitchener is committed to using community engagement strategies and tools that involve the community in decision making to the highest degree possible. It is in everyone’s best interest to support leadership and community capacity.” The tool kit includes definition of community engagement and its benefits, together with guiding principles and a framework for engagement. Consideration is to be given as to the appropriateness and best methods of engagement and is to be monitored through-out with evaluation at conclusion of the engagement process. Once approved, staff across the Corporation will be asked to pilot the formalized process and tool kit; and training will be offered to increase staff knowledge and skills in the processes of engagement. Mayor C. Zehr questioned if the policy was intended for staff or for the public. Ms. Adams advised that the policy is intended primarily for staff; however, interest has been expressed from Advisory Committee members for the tool kit to be made available and it could potentially be used by neighbourhood groups. Mayor Zehr questioned what is changing with the introduction of this policy. Ms. Adams acknowledged that the City has already a strong propensity toward community engagement, stating that the document primarily provides opportunity to build consistency across the Corporation in how the community is engaged and opportunity to monitor the success of engagement. Mayor Zehr questioned as to where the tipping point might be in respect to determining an appropriate level of engagement; citing examples of the public becoming disenfranchised due to too much consultation and/or Council becoming too inundated with information whereby they become paralyzed in the decision making process. Ms. Adams stated that perimeters need to be considered on a project by project basis, taking into consideration the scope of the project, how much information might have already been disseminated and who might have already been consulted with. Mayor Zehr inquired as to how long the pilot process is to be and Ms. Adams advised that a period of 6 months is intended, following which a final report would come back to Council with recommendation for a formalized process. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 108 - CITY OF KITCHENER CAO-10-021 - COMMUNITY ENGAGEMENT STRATEGY - 2010 UPDATE (CONT’D) 26. Councillor G. Lorentz questioned if each Department was to incur costs associated with the engagement policy, noting that some issues are general and ongoing as opposed to being project related. Ms. Adams responded that in respect to projects, community consultation is planned for and the costs built into project budgets. She added that community engagement is already an existing Corporate-wide practice and all that is asked in approving this policy is simply to formalize the process so that there is opportunity to develop a uniform approach. Councillor Lorentz commented that often in public meetings it is the same individuals who attend and while their opinions remain important, he questioned how much weight should be given and how the City might capture those who are not inclined to attend public meetings. Ms. Adams responded that alternative methods such as use of the City’s website or other electronic media, or staff visits to outside group meetings are examples of outreaching methods that could be considered. Councillor Lorentz questioned how the decision is to be made in going forward with an engagement process and how it is to be determined as to what value to place on the responses received. Ms. Adams suggested that training will provide tools for staff to better make determinations as to which methods to use and when, and how to gage response levels. Councillor J. Gazzola commented that it was his understanding Council had already passed a community engagement policy. Ms. Adams explained that a draft policy was tabled in 2008 and the working group has since been working on development of processes and tools for its implementation. Councillor Gazzola asked how many person hours have been expended. Ms. Adams advised that she did not have an exact figure but noted that this project has been a work in progress over the past 3 years. She stated that it has taken this long to bring a report forward due to limited resources and competing priorities. Councillor Gazzola asked how much time will be spent on the proposed training and who will provide the training. Ms. Adams advised that no additional costs will be associated with the training other than staff’s time to either provide the training or to take the training. Councillor Gazzola referred to reference in the staff report to the goal of engaging a representative sample of the community and questioned what percentage would be intended as a representative sample. Ms. Adams advised that no one specific number could be given as this would vary project to project. Councillor Gazzola commented that he views sampling from the perspective of population rather than by project and questioned what would be a representative sample based on population. Ms. S. Weare explained that it is impossible to obtain a virtual representative sample, suggesting that it is more important to consider the quality of the information collected. Councillor Gazzola requested clarification as to what is meant by the terms “new Canadians” and “racialized groups”. Ms. Adams advised that “new Canadians” pertain to those new to the Country, not all of whom understand English or use our traditional forms of communicating and may in fact, fear participation in public meetings. She added that the term “racialized groups” is new language used in place of “visible minorities”. Councillor Gazzola requested clarification of the diversity fund which is proposed to be used to cover inclusive engagement practices. Ms. Adams advised that this fund is contained in the operating budget for the Chief Administrator’s Office and is used to provide seminars / training relative to diversity issues to enhance staff’s cultural competence and what it means for our business practices. Councillor Gazzola inquired what would happen if the policy is not approved. Ms. Adams acknowledged that the City currently undertakes good community engagement and this practice would not cease; however, she suggested that approval of the policy will provide tools and guidelines to staff that will enhance their skills in the engagement process. Councillor Gazzola stated that he was not clear on what the difference the policy will make and questioned if more staff is to be hired. Ms. Adams advised that no new staff is required, reiterating that existing staff already oversee community engagement practices. Councillor K. Galloway referred to the example of engaging youth and questioned what would be different in terms of engaging youth from any other group. Ms. J. Ouellette advised that this section was authored by the City’s Youth Co-ordinator and is included as a target group that has a desire and the impetus to get involved. She added that the example talks about FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 109 - CITY OF KITCHENER CAO-10-021 - COMMUNITY ENGAGEMENT STRATEGY - 2010 UPDATE (CONT’D) 26. addressing barriers from a youth perspective but the tools referenced can be used and considered in every population group. Councillor Galloway inquired if the document has been vetted through the Kitchener Youth Advisory Council and Ms. Ouellette agreed to follow-up with the Youth Co-ordinator in this regard. Councillor Galloway commented that many public meetings, and in particular those geared toward planning and engineering issues, can be somewhat dry in subject matter and questioned if there is a means to create a more inter-active format. Ms. Adams responded that it is hoped that the tools provided will present differing methods for staff to use that will assist in raising interest levels. Councillor C. Weylie commented that it has been her experience that if an issue does not affect a person financially nor their private property, they will disengage from the public process; and in some instances regret doing so in discovering after the fact that there was some impact to them to which they now object. She questioned how the City can engage those persons at the outset. Ms. Adams stated that it is important in some instances to seek out specific groups and use alternative avenues to engage those who are not inclined to attend public meetings. She suggested that focus groups, together with other electronic media can be used for outreach purposes. Councillor B. Vrbanovic requested clarification of reference in the report to centralize oversight for community engagement at the corporate level under the Community and Corporate Planning (CCP) unit. Ms. Adams stated that responsibility for community engagement is not moving in essence as all staff and operating Departments will continue to have responsibility for its oversight. She advised that this is in reference only to evaluation and monitoring of community engagement processes and the CCP unit will act as a resource for staff. Councillor Vrbanovic inquired if Compass Kitchener will be the body to evaluate data collected and Ms. Adams concurred. On motion by Councillor K. Galloway - it was resolved: “That the Community Engagement Policy Statement and the Community Engagement Tool Kit, attached to Chief Administrator’s Office report CAO-10-021, dated May 25, 2010, be approved.” The Committee then recessed at 11:30 a.m. and reconvened at 1:04 p.m. with all members present. DTS-10-120 - STORMWATER RATE BY-LAW AND UTILITY IMPLEMENTATION 27. - ADDENDUM NO. 2 TO REPORT DTS-10-094 The Committee considered Development and Technical Services Department report DTS-10- 120, dated June 2, 2010 which is a second addendum to report DTS-10-094 and provides additional information related to inquiries raised at the May 17, 2010 Special Finance and Corporate Services Committee meeting regarding the proposed stormwater management (SWM) rate structure and implementation plan. In addition, the Committee was in receipt this date of correspondence from the Ontario Public Works Association, expressing support for the identified sustainable service level and approach to provide long-term SWM funding. Mr. G. Murphy and Mr. Mike Gregory, AECOM presented an overview of the report, addressing questions and concerns regarding the SWM rate program in relation to the following topics: the financial impact on the average single detached residential property owner; the inclusion of an additional rate tier to the residential category to take into account larger size properties; justification for not reducing the recommended level of stormwater program funding from $13M to $10M annually; implementing the stormwater program service level over multiple years from current to sustainable levels; FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 110 - CITY OF KITCHENER DTS-10-120 - STORMWATER RATE BY-LAW AND UTILITY IMPLEMENTATION 27. - ADDENDUM NO. 2 TO REPORT DTS-10-094 (CONT’D) feasibility of a stormwater rate credit policy; a grant program for places of worship and charitable organizations; proposed additional staff positions to accommodate the proposed SWM program; and, differences between the current service level and the sustainable service level for the stormwater program 10-year Capital and Operating Forecast. Mr. Murphy advised that the current service level estimate was initially revised from $5.8M to $8.9M annually to reflect the latest budgets. He stated that through refinements to calculations, the current service level has now been identified at $9.8M. He noted that the proposed sustainable service level has been maintained at $13M, resulting in an ultimate service level increase of $3.2M. In response to questions, Mr. D. Chapman advised that the adjustment to the current service level of $0.9M since this matter was previously considered, relate to the fact that initial calculations reflected a 2010 tax-supported cost for the stormwater portion of the accelerated infrastructure replacement program. However, this more precise calculation takes into consideration the average cost over the 10-year Capital Forecast, which is a higher value. He noted that this change would reduce the net impact of the implementation on taxpayers, while having no impact on exempt properties. In response to questions regarding the justifications for implementing the stormwater rate model, Mr. Murphy advised that average residential property owners currently pay approximately 74% of the total costs for stormwater services through the tax levy; which is based on property value rather than stormwater run-off contribution. He stated that the proposed rate structure enables an approximate 17.9% shift in overall stormwater program costs from residential users to the non-residential sector, thereby providing a more equitable disbursement of costs for this service. Mr. Murphy further advised that under the tax levy approach and to fund the proposed $13M stormwater program in 2011, an average single detached residential property owner, with a property valued at $225,000., would pay approximately $140. annually for stormwater services. He noted that changing to the proposed stormwater rate model, that same property owner would pay $126. per year, which represents an annual reduction of $14. Councillor J. Gazzola questioned the outcome if the Provincial Government were to decide that the proposed SWM fee is not applicable to school boards, and was advised that any outstanding balance would be written-off as bad debt; which would have to be accommodated through the tax base. Councillor G. Lorentz expressed concerns that under the proposed credit policy, non- residential property owners who already have SWM measures on-site would not be able to receive a rebate for approximately two years. In addition, he requested clarification regarding the proposed credit policy, noting that for other utility services, such as water, a homeowner has the capability to reduce their use and as a result, the cost incurred for that service. Mr. Murphy advised that, similar to water and wastewater programs, credit policies for the stormwater rate will initially target the non-residential sector where greater benefits are gained through the installation of larger on-site SWM facilities, before addressing the individual single- family homeowners. He stated that additional work needs to be undertaken before the credit policies can be implemented, adding that staff anticipates that measuring of impervious areas for all non-residential properties will be completed by September 2010. He commented that in instances where run-off is controlled and managed on-site, and not discharged into the City’s infrastructure for even a 100-year design storm event, staff are investigating the possibility of providing a credit greater then the proposed 50%. Councillor Gazzola enquired into the determining factors that contributed to the proposed credit level being set at 50%. Mr. Gregory advised that an examination of best practices implemented by other municipalities found that the majority of credit programs offer rebates up to this amount. In addition, he estimated that 5% of the total revenue from the SWM rate would be allocated toward accommodating the credit program. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 111 - CITY OF KITCHENER DTS-10-120 - STORMWATER RATE BY-LAW AND UTILITY IMPLEMENTATION 27. - ADDENDUM NO. 2 TO REPORT DTS-10-094 (CONT’D) Referencing the measures implemented by Conestoga College to manage their stormwater on-site, Councillor Gazzola asked if property owners could completely mitigate their impact on the City’s SWM system. Mr. J. Willmer advised that property owners are not only responsible for the stormwater run-off originating on their lands, but also their adjacent sidewalks and 50% of the road right-of-way. He noted that accordingly, it would not be possible to manage 100% of all stormwater on-site. Questions were raised as to why the SWM program servicing level could not be capped at $10M per year and the need to proceed with this initiative at this time. Mr. Murphy advised that stormwater-related works are subject to the Ontario Water Resources Act, Canadian Environmental Protection Act, the Federal Fisheries Act, and several guidelines published through the Ministry of Environment and Ministry of Natural Resources. He indicated that the 2008 Annual SWM Audit identified more than $120M worth of stormwater pond retrofits and watercourse capital works as being necessary over the next 20 years in order to meet water quality targets. He stated that if an annual cap of $10M were implemented, projects and activities would need to be deferred and the City would be out of compliance with these regulations. Mr. Murphy added that the projects identified for the next four years of the accelerated infrastructure replacement program represent the most urgent infrastructure work in the 10-year Capital Forecast. He added that further deferring these projects would expose the City to additional risk, as these represent very old and deteriorated infrastructure that needs to be replaced. He noted that if the SWM program were capped at $10M annually, the Victoria Park Lake remediation, which was identified as a high priority project, would need to be deferred until 2020 or beyond. Pastor James Brown, President, Kitchener-Waterloo Council of Churches, provided the Committee with a supplementary information package outlining the comments of the Council since the May 17, 2010 Finance and Corporate Services Committee meeting. He spoke in support of the indefinite grant of 100% proposed for places of worship and charitable organizations. He stated that the Council of Churches host a number of events annually, which are widely attended by its members, noting that a SWM education program would align with the mandate of these events. He commented that while the Council is in a good position to offer a SWM education program to its congregation, assistance would be needed from the City to develop and offer such a program. Councillor K. Galloway clarified that in addition to offering a SWM education program to their members / clients, she had also anticipated that places of worship and charitable organizations would work with City staff to implement, where feasible, the installation of on-site SWM facilities. Pastor Brown commented that while there has been considerable uptake by members of the Council of Churches with respect to environmental initiatives, most churches lack the physical capacity to accommodate the installation of on-site SWM measures. Mr. John Ryrie, St. George’s Anglican Church of Forest Hill addressed the Committee in opposition to places of worship being required to pay the proposed SWM rate, noting that they are not financially equipped to be treated as if they are tax-paying properties. He spoke in support of the proposed 100% indefinite grant for places of worship and at the request of Councillor Gazzola, agreed to circulate copies of his speaking notes to the Committee. Ms. Trudy Beaulne, Social Planning Council circulated correspondence to the Committee outlining her group’s comments / concerns with the proposed SWM rate. She advised that the Social Planning Council contacted several local charitable organizations, who indicated that they were unaware of the proposed SWM rate. In addition, she expressed concern that the proposal for an indefinite grant of 100% only takes into account properties owned by charitable organizations. She stated that under existing legislation, tenant charities may also apply for property tax exemptions. She suggested that the proposed grant be made available to all charitable organizations that qualify for tax exemptions. She then spoke to opportunities for charitable organizations to offer SWM education programs, noting that additional details would be needed prior to moving forward. She further suggested that clear criteria should be put in place identifying what a person must do to qualify for a SWM credit. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 112 - CITY OF KITCHENER DTS-10-120 - STORMWATER RATE BY-LAW AND UTILITY IMPLEMENTATION 27. - ADDENDUM NO. 2 TO REPORT DTS-10-094 (CONT’D) In response to questions, Mr. Murphy advised that correspondence was sent to all of the charitable organizations listed in the City’s database as well as the Social Planning Council informing them of the proposed SWM rate. Mr. S. Ross confirmed that the Municipal Act mandates property tax exemptions for tenant charitable organizations. Mr. D. Chapman added that annually the City receives applications from tenant charities seeking property tax exemptions and agreed to provide additional information prior to the June 14, 2010 Council meeting on the impact of extending the proposed grants to those organizations. Ms. Mary Ann Wasilka, resident, expressed concerns that the proposed SWM rate would unfairly affect high-density residents. She added that these residents might not be able to access the proposed credit program, noting that landlords would most likely shift the financial burden for the new rate onto their tenants. On motion, Mayor C. Zehr brought the recommendation contained in report DTS-10-120 forward for consideration, with an amendment to Clause 9, adding that should the discrepancy between the Municipal Act and the Education Act outlined in Clause 8 not be resolved by 2012, this matter is to be brought back to City Council for reconsideration prior to collecting the applicable SWM payments from the local school boards. At the request of Councillor Lorentz, it was agreed, to further amend Mayor Zehr’s motion to revise Clause 5 to align the timing for the proposed residential and non-residential stormwater rate credit programs. It was noted that as a result of this amendment, Clause 6 became redundant and was removed from the motion. A motion by Councillor Galloway was brought forward for consideration to amend Mayor Zehr’s motion to remove the term “contingent” from Clause 10 and insert that places of worship and charitable organizations be strongly encouraged to reduce their impact on the City’s SWM system and work with staff to develop a stormwater or environmental education program for their members and/or clients. Carried Councillor Galloway’s amendment to Mayor Zehr’s motion was voted on and , on a recorded voted, with Councillors J. Gazzola, J. Smola, K. Galloway, B. Vrbanovic and C. Weylie voting in favour and Mayor C. Zehr and Councillor G. Lorentz voting in opposition. Councillor Gazzola advised that he was not in support of Mayor Zehr’s motion. He expressed concern with increasing the existing service level to $13M annually, indicating that this seems to be predicated on undertaking too many projects at once.He suggested that the costs associated with providing the proposed grant and credit programs mitigate the benefits that are proposed to be realized by implementing the stormwater rate model. In addition, he commented that, in his experience, projects funded through user fees do not receive the same level of scrutiny as those funded through the tax base. Councillor B. Vrbanovic spoke in support of the motion, commenting that the process to implement the stormwater rate has taken over 5½ years and received considerable deliberation over that time. He added that should this not move forward high priority projects, previously agreed to by Council, would have to be deferred. He pointed out that due to legislated tax ratios, the existing funding imbalance between the residential and non-residential sectors cannot be addressed through adjustments to the tax levy; which was confirmed by Mr. Chapman. Councillor Vrbanovic commented that if the SWM rate is not pursued, residential property owners would continue to pay almost 18% more then they should toward the City’s SWM services. Carried The following motion was voted on and , on a recorded voted, with Mayor C. Zehr and Councillors G. Lorentz, J. Smola, K. Galloway, B. Vrbanovic and C. Weylie voting in favour and Councillor J. Gazzola voting in opposition. On motion by Mayor C. Zehr – it was resolved: FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 113 - CITY OF KITCHENER DTS-10-120 - STORMWATER RATE BY-LAW AND UTILITY IMPLEMENTATION 27. - ADDENDUM NO. 2 TO REPORT DTS-10-094 (CONT’D) “That the ten (10) year capital and operating forecast for the stormwater management (SWM) program, be approved as outlined in Development and Technical Services Department report DTS-10-094, subject to revision through the annual budget process; and, That the stormwater rate schedule, as outlined in Appendix ‘B’ of Report DTS-10-094, be approved, and come into effect on January 1, 2011; and, That the by-law enacting the stormwater rate, as attached to Report DTS-10-120, be approved as an amendment to the Fees and Charges By-law; and, That a reduction in the following base budgets be implemented as of fiscal 2011 resulting from a shift to a stormwater utility model: Tax supported operating budget of $7,099,228; Water utility of $256,677; Sanitary utility of $259,414; Gas utility of $278,184; and, That staff provide a report related to a non-residential and a residential stormwater rate credit policy prior to January 1, 2012, with applicable credits being retroactively applied to January 1, 2011; and, That staff examine the feasibility of measuring the impervious area on non-residential properties and report back prior to January 1, 2013 on the viability of transitioning non- residential properties from the approved “tiered flat fee” stormwater rate structure to a method where these properties are charged according to their actual measured impervious area; and, That staff work with the Association of Municipalities of Ontario (AMO), the Waterloo Region District School Board, Waterloo Catholic District School Board, the City of Waterloo and various Government of Ontario Ministries to address the discrepancy between the Municipal Act and the Education Act, regarding a municipality’s authority to apply stormwater rates to Boards of Education properties; and, That payment of the applicable stormwater rates would not be expected from the Waterloo Region District School Board and the Waterloo Catholic District School Board until 2012, pending resolution of the discrepancy between the Municipal Act and the Education Act, and should the issues outlined in the preceding clause not be resolved by 2012 this matter be brought forward for reconsideration prior to collecting the applicable payments; and, That places of worship and charitable organizations which own property affected by the applicable stormwater rate, be provided an indefinite grant of 100%, while being strongly encouraged to reduce their impact on the City’s SWM system and work with staff to develop a stormwater or environmental education program for their members and/or clients; and, That one (1) engineering manager position (full-time), one (1) operations supervisor (full-time), one (1) engineering project manager position (full-time), and one (1) revenue analyst position (full-time) be hired beginning in June 2010 to enable the implementation of the stormwater utility and advancing related stormwater projects; and further, That $100,000 be transferred from the Grand River Erosion Control project (account numbers 11619 and 7367) and $129,000 be transferred from the Victoria Park Lake Environmental Assessment project (account numbers 52000039 and 207) into the Stormwater Utility Implementation Plan (account number 701204027).” FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 7, 2010 - 114 - CITY OF KITCHENER ADJOURNMENT 28. On motion, the meeting adjourned at 3:20 p.m. C. Goodeve J. Billett Committee Administrator Committee Administrator