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HomeMy WebLinkAboutFin & Corp Svcs - 2010-08-23FINANCE AND CORPORATE SERVICES COMMITTEE AUGUST 23. 2010 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 1:25 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 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 J. McBride, Director, Transportation Planning R. Regier, Executive Director, Economic Development H. Gross, Director, Project Administration & Economic Investment R. Gosse, Director, Legislated Services & City Clerk J. Witmer, Director of Operations S. Adams, Director, Community & Corporate Planning S. Turner, Director, By-law Enforcement C. Fletcher, Director, Facilities Management M. Selling, Director of Building L. MacDonald, Director of Legal Services & City Solicitor D. Murray, Manager, Client Services R. Lebrun, Manager, Accounting S. Allen, Manager, Engineering Design & Approvals L. Gordon, Chief Purchasing Officer P. Harris, Manager of Licensing S. Saleh, Supervisor, Collections & Payment Processing C. Tasker, Performance Measurement /Internal Auditor J. Billett, Committee Administrator CRPS-10-128 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - THE FATHER'S HOUSE CHURCH -AUGUST 28. 2010 The Committee considered Corporate Services Department report CRPS-10-128, dated August 10, 2010 concerning a noise exemption request for a special event. It was noted in the agenda that any recommendation from this Committee will be considered at the special Council meeting to be held later this date. On motion by Councillor J. Gazzola - itwas resolved: "That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to The Father's House Church for their "Love Your City" event at Victoria Park on August 28, 2010, between the hours of 11:00 a. m. and 5:00 p. m." CRPS-10-129 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - DOON PIONEER PARK COMMUNITY ASSOCIATION - SEPTEMBER 11.2010 The Committee considered Corporate Services Department report CRPS-10-129, dated August 10, 2010 concerning a noise exemption request for a special event. It was noted in the agenda that any recommendation from this Committee will be considered at the special Council meeting to be held later this date. On motion by Councillor J. Gazzola - itwas resolved: "That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to the Doon Pioneer Park Community Association for their annual outdoor concert and festival to be held on September 11, 2010, between the hours of 2:00 p.m. and 10:00 p. m." FINANCE AND CORPORATE SERVICES COMMITTEE AUGUST 23. 2010 - 117 - CITY OF KITCHENER 3. CRPS-10-130 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - CONESTOGA STUDENTS INC. -SEPTEMBER 18, 2010 The Committee considered Corporate Services Department report CRPS-10-130, dated August 10, 2010 concerning a noise exemption request for a special event. Councillor J. Gazzola asked what steps have been taken to alleviate neighbourhood concerns given past experience of complaints resulting from a similar type event at this location. Mr. S. Turner advised that staff is working with the student organizers in planning of this event, noting that the stage is to be positioned to the back of the College grounds near Highway 401 away from the residential area. Staff is also working with the sound technicians to address music levels and By-law Enforcement staff will be on site and in the neighbourhood during the event to address any concerns as they may arise. Mr. Turner added that the Lower Doon Neighbourhood Association will be assisting event organizers in distribution of flyers to give advance notice to the residential area. On motion by Councillor J. Gazzola - itwas resolved: "That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to Conestoga Students Inc. for an outdoor concert at Conestoga College on September 18, 2010, between the hours of 6:00 p. m. and 11:00 p. m." 4. CRPS-10-131 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - K-W OKTOBERFEST EVENTS -OCTOBER 2 - 16, 2010 The Committee considered Corporate Services Department report CRPS-10-131, dated August 10, 2010 concerning a noise exemption request for a series of events related to Oktoberfest celebrations. On motion by Councillor J. Gazzola - itwas resolved: "That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to K-W Oktoberfest Inc. for a series of events being held at various clubs between October 2 and October 16, 2010, as outlined in the letter from K-W Oktoberfest Inc., dated July 14, 2010, attached to Corporate Services Department report CRPS-10- 131." CRPS-10-134 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - KITCHENER MASJID -SEPTEMBER 10 OR 11, 2010 The Committee considered Corporate Services Department report CRPS-10-134, dated August 12, 2010 concerning a noise exemption request for a special event. It was noted in the agenda that any recommendation from this Committee will be considered at the special Council meeting to be held later this date. On motion by Councillor J. Gazzola - itwas resolved: "That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to The Kitchener Masjid, at 1017 Victoria Street North for their Eid Carnival on September 10 or 11, 2010, between the hours of 10:00 a. m. and 8:00 p. m." CRPS-10-126 -FAIR OR EXHIBITION GAMING EVENT LICENCE FOR KITCHENER- WATERLOO OKTOBERFEST The Committee considered Corporate Services Department report CRPS-10-126, dated August 9, 2010 concerning issuance of a Provincial Lottery License for an event related to Oktoberfest celebrations. FINANCE AND CORPORATE SERVICES COMMITTEE CRPS-10-126 -FAIR OR EXHIBITION GAMING EVENT LICENCE FOR KITCHENER- WATERLOO OKTOBERFEST (CONT'D) It was noted in the agenda that any recommendation from this Committee will be considered at the special Council meeting to be held later this date. On motion by Councillor J. Gazzola - itwas resolved: "That the City of Kitchener has no objection to a Provincial Lottery Licence being issued to Kitchener-Waterloo Oktoberfest to hold a Fair or Exhibition Gaming Event from October 8 to October 16, 2010 at Bingeman's Marshall Hall, 425 Bingemans Centre Drive, Kitchener." CRPS-10-127 -LIQUOR LICENCE REVIEW APPLICATION - MON AMI PIZZA CAFE - 151 CHARLES STREET WEST The Committee considered Corporate Services Department report CRPS-10-127, dated August 9, 2010 concerning issuance of a liquor licence for the Mon Ami Pizza Cafe at 151 Charles Street West. On motion by Councillor J. Gazzola - itwas resolved: "That subject to the applicant entering into an agreement with the City including certain conditions of operating a licensed establishment as set out below, Council take no action to oppose the application for a liquor license for Mon Ami Pizza Cafe, located at 151 Charles Street West, Unit R-12, applied for by Velimir Bijelic (herein referred to as the "Applicant"); and further, That the Mayor and Clerk be authorized to enter into an agreement with the applicant should he be willing wherein the applicant agrees to abide by the following conditions and to request they be added to his licence if the Alcohol and Gaming Commission of Ontario chooses to issue the licence: 1. to post in a conspicuous place and abide by the Downtown Licensed Establishments Code of Conduct; 2. to become an active member of the Downtown Kitchener Business Improvement Association's License and Entertainment Committee and attend its meetings; 3. to abide by a set 30% monthly ratio of alcohol sales to gross refreshment sales (including food and other sundries) in other words alcohol sales will be limited to 30% of gross refreshment sales; 4. to stop serving alcohol by 12:01 a. m. daily in the first year of operation and thereafter to stop serving alcohol by 2:00 a. m. daily; 5. to notify the Clerk of the City of Kitchener in writing of any application to change the license at the time the application for the change is made to the Alcohol and Gaming Commission, and not to expand the establishment without the consent of the City's Council; 6. to comply with the Noise By-law and the Region of Waterloo Smoking By-law; and 7. these conditions shall bind all successors, assigns and subsequent licence holders (if any)." CRPS-10-135 -AMENDMENT TO CHAPTER 530 (DOGS) OF THE MUNICIPAL CODE The Committee considered Corporate Services Department report CRPS-10-135, dated August 12, 2010 requesting an amendment to Chapter 530 (Dogs) of the Municipal Code to provide By-law Enforcement Officers the right to enter premises for the purpose of inspection at all reasonable times. On motion by Councillor J. Gazzola - itwas resolved: "That the draft by-law attached to Corporate Services Department report CRPS-10-135 be enacted to amend Chapter 530 (Dogs) of The City of Kitchener Municipal Code." FINANCE AND CORPORATE SERVICES COMMITTEE CRPS-10-136 -AMENDMENT TO CHAPTER 408 (ANIMALS -REGULATION) OF THE MUNICIPAL CODE The Committee considered Corporate Services Department report CRPS-10-136, dated August 12, 2010 requesting an amendment to Chapter 408 (Animals -Regulation) of the Municipal Code to provide authorized persons the right to enter premises for the purpose of inspection at all reasonable times. On motion by Councillor J. Gazzola - itwas resolved: "That the draft by-law attached to Corporate Services Department report CRPS-10-136 be enacted to amend Chapter 408 (Animals -Regulation) of The City of Kitchener Municipal Code." 10. CRPS-10-132 -ISSUANCE OF EXTENSION OF USE REFRESHMENT VEHICLE LICENCE - KENNY'S BAR & GRILL - 347 LANCASTER STREET WEST The Committee considered Corporate Services Department report CRPS-10-132, dated August 11, 2010 concerning issuance of an Extension of Use Refreshment Vehicle Licence to permit operation of a hot dog cart at 347 Lancaster Street West. Ms. P. Harris advised that certain conditions were applied to the Place of Refreshment Licence for this location as a result of a Licensing Hearing, one of which was to close and vacate all outside patios by 11:00 p.m., Sunday to Thursday and by 1:00 a. m. on Friday and Saturday. She noted that complaints concerning noise from the business and from barking dogs have been received but no charges have been laid. To address neighbourhood concerns regarding the addition of a hot dog cart operation, staff is recommending a condition that aligns with the closing of outdoor patios to provide that the cart be closed and removed by no later than 11:00 p. m., Sunday to Thursday and no later than 1:00 a.m. on Friday and Saturday. Mr. S. Turner advised that complaints regarding barking dogs have subsided and concerns of noise from the business have been monitored and the business operator found to be in compliance with the conditions of the licence. Ms. Harris added that if the request to add the hot dog cart operation is approved and problems subsequently arise, a Licensing Hearing can be convened and Council would have the right to decide to revoke the licence if deemed appropriate. It was noted in the agenda that any recommendation from this Committee will be considered at the special Council meeting to be held later this date. On motion by Councillor K. Galloway - itwas resolved: "That an Extension of Use Refreshment Vehicle Licence be granted to Kenny's Bar & Grill, located at 347 Lancaster Street West, with the following condition: The refreshment vehicle must be closed and removed no later than 11:00 p. m. Sunday to Thursday and no later than 1:00 a. m. on Friday and Saturday." 11. CRPS-10-125 -HOUSEKEEPING AMENDMENTS TO CHAPTER 25 (COUNCIL PROCEDURES) OF THE MUNICIPAL CODE The Committee considered Corporate Services Department report CRPS-10-125, dated August 3, 2010 requesting a number of housekeeping amendments to Chapter 25 (Procedure) of the Municipal Code, as outlined in Appendix "A" to report CRPS-10-125. Councillor K. Galloway requested that section 25.4.1 (Seating at Council Table) be removed from Appendix "A" and any decision to delete this section for purpose of invoking a permanent seating arrangement, based on the numerical numbering of Wards, be made by the new Council. FINANCE AND CORPORATE SERVICES COMMITTEE 11. CRPS-10-125 -HOUSEKEEPING AMENDMENTS TO CHAPTER 25 (COUNCIL PROCEDURES) OF THE MUNICIPAL CODE (CONT'D) Mayor C. Zehr questioned the potential for the Council-Elect to make a decision in this matter at the Striking Committee meeting to be held prior to the Inaugural meeting. Mr. R. Gosse advised that during review it was determined that the current practice of drawing lots did not make logical sense; whereas, the proposed seating arrangement would provide for Ward Councillors to sit clockwise around the Council Table in a manner that would mirror the geographical pattern of the designated Wards. He stated that a decision is requested at this time to provide for seating arrangements to be in place prior to the Inaugural meeting. He added that the Striking Committee has no authority to amend the Council Procedural By-law and only the new Council, after taking the Oath of Office, would have that right. Following further discussion, Mr. Gosse suggested that the proposed amendment be removed at this time and he would bring the matter back at an appropriate time for consideration of the new Council. Councillor B. Vrbanovic referred to the proposed amendments in respect to all members of Council sitting on all three Standing Committees, questioning if it would still be possible for the new Council to change this arrangement in the event a reduced membership is deemed more appropriate for the functionality of these meetings. Mr. Gosse advised that the purpose of the proposed amendments is to reflect current practice and the new Council would have the right to make change, if deemed necessary. Councillor J. Gazzola requested clarification of the proposed amendment related to removal of the definition of a "two-thirds vote". Mr. Gosse advised that there are two instances in which a two-thirds vote is required and an explanation of each instance is provided in the relevant section of the By-law. Accordingly, defining a "two-thirds vote" in the "Definitions" section of the Procedural By-law is considered to be duplication. On motion by Mayor C. Zehr - itwas resolved: "That Chapter 25 of the Municipal Code (Procedure) be amended as outlined in Schedule 'A', attached to Corporate Services Department report CRPS-10-125, save and except section 25.4.1 (Seating at Council Table) which is to be decided by the new Council." 12. DTS-10-156 -CIVIC DISTRICT PARKING STRUCTURE DEBENTURE The Committee considered Corporate Services Department report CRPS-10-156, dated August 19, 2010 requesting authorization to increase the maximum amount to be debentured for the Civic District Parking structure and that, as part of the 2011 budget deliberations, consideration be given to the potential to reduce the actual amount of the debenture through allocation of parking development charges. Mr. J. McBride advised that the maximum amount to be debentured is proposed to be increased from $2.1 M to $5.8M, with the total project budget estimated at $24M. $18.2M is to be funded from capital contributions from the Provincial Ministry of the Attorney General, the Kitchener Public Library (KPL) and the Region of Waterloo, all partners to the project, leaving $5.8M to be financed by the City. The increased amount is due to increased construction costs related to the addition of various design elements; impact of HST; and a shift in the budget estimate between the Library portion of construction and the construction of the parking garage. Mr. McBride stated that the tender results are a reflection of the current bidding climate and the increased debenture amount is expected to have an additional levy impact of 0.27%. He added, however, that it is proposed to pursue reduction of the debenture amount during the 2011 budget deliberations through allocation of parking development charges to this project. Mr. McBride advised that a recommendation concerning awarding of the tender will be brought forward for consideration at the September 7, 2010 Council meeting. Councillor J. Gazzola raised concerns with the increased costs, questioning why they were not known prior to this date and suggesting that given the substantial changes made in design discussion should have taken place prior to proceeding with same. Mr. J. Willmer advised that staff had brought forward a report in April 2010 to alert Council to the changes in design, the FINANCE AND CORPORATE SERVICES COMMITTEE 12. DTS-10-156 -CIVIC DISTRICT PARKING STRUCTURE DEBENTURE (CONT'D) exact costing of which was unknown but which has since been derived; and at the earliest possible opportunity, staff has brought the information forward. Councillor J. Gazzola requested explanation of the $460,000 attributed to HST. Mr. D. Chapman advised that the City is eligible to claim 78% return of the HST and the amount shown represents the remaining 22% that the City will have to pay. Councillor Gazzola also requested clarification of the 0.27% levy impact and Mr. McBride advised that this figure represents the net increase in costing over the original project budget identified in the business case. Councillor Gazzola inquired if the Region of Waterloo is contributing sufficient funding for their portion of the project. Mr. McBride advised that originally the Region was to contribute $4.7M to the project for purchase of 100 parking spaces in the garage and on completion of the design phase the amount was increased to $5.6M. He added that the Region requested addition of an emergency generator room estimated at $700,000; however, the low tender bid for this element came in at $300,000. Notwithstanding, the Region has agreed to pay the full $700,000. in recognition that their parking needs are in part contributing to the need for the parking garage and therefore, should bear some of the costs of the construction. Mr. McBride suggested that this, together with the land provided by the Region, brings their total contribution close to the''/4 M mark of the total project costs. In contrast, the Provincial Ministry is making acash-in-lieu payment based on $3,500. per parking space, and instead of parking on site will pay full market rental fees for 200 spaces in the Charles/Benton parking garage. Mayor C. Zehr requested clarification of the difference in percentage of contingency between the City at 5% and the Library at 15%. Ms. S. Lewis, CEO-KPL, advised that the amount of contingency is driven by the risks associated in renovating an existing, older building for which unexpected costs are anticipated. It was noted that on tender results the KPL adjusted its parking garage budget by $440,000. out of a total savings of $900,000., the remainder of which is to be added to the contingency increasing the percentage from 15% to 17-18%. Mayor Zehr inquired what would have been done if the tender resulted in the Library portion of the construction coming in over budget. Ms. Lewis advised that a list of potential deletes was identified for the purpose of reducing the tender amount in the event of an overage and the KPL Board would also consider means to reduce the contingency and any other project budget lines to off-set a shortfall. Councillor J. Gazzola questioned how the increased debenture is to be dealt with. Mr. D. Chapman advised that the debenture itself would not be issued until 2011, with construction to take place during 2011-2012; and at this time, staff is seeking approval to debenture the full amount of the City's portion of costs, and consideration of the potential to reduce that amount during the 2011 budget deliberations through allocation of parking development charges. Councillor Gazzola stated that he could not support the recommendation this date but intended to seek further understanding of the proposal prior to making a final decision at the September 7, 2010 Council meeting. Mayor Zehr commented that while the risks associated in renovating an older building and need for a buffer is understood, he suggested that the KPL Board should place greater scrutiny on spending of its contingency funds to ensure they are utilized appropriately and as much as can be, is repatriated back to the City's portion of the parking garage. Councillor K. Galloway commented that the KPL Board had struggled with the concept of returning the whole, or portion thereof, of the total savings and she expressed the opinion the Board's intention is not to spend the contingency funds except where needed to mitigate the associated risks of renovation. Mayor Zehr suggested that amind-set should be established whereby the additional dollars added to the original KPL contingency should be looked upon as though they do not exist. Councillor B. Vrbanovic commented that the fact the tender results for the Library portion has come in under-budget speaks to the work of the KPL Board and its volunteers in keeping their portion of the project within budget and he suggested the Board will continue to operate in a fiscal manner, with any remaining funds to be returned as is the case for any City capital project that on close-out has surplus funds. Councillor Vrbanovic stated that it is important to keep in mind that the KPL Board is a separate body and is responsible for over- sight of its budget. He suggested that notwithstanding the City contributes to the Library budget, it is not within Council's purview to direct how the monies should be spent. FINANCE AND CORPORATE SERVICES COMMITTEE 12. DTS-10-156 -CIVIC DISTRICT PARKING STRUCTURE DEBENTURE (CONT'D) On motion by Councillor K. Galloway - itwas resolved: "That an increase in the maximum amount to be debentured for the Civic District Parking structure be authorized from $2,195,000 as per the original business case and approved capital budget forecast to $5,803,282 in 2011; and further, That the potential to reduce the actual amount of the debenture through the allocation of parking development charges be considered as part of the 2011 budget process." Councillor J. Smola assumed the Chair at this time. 13. CRPS-10-133 -CONSOLIDATED MAINTENANCE FACILITY (CMF) TELEPHONE SYSTEM AND CITY OF KITCHENER TELEPHONE SYSTEM UPGRADE STRATEGY The Committee considered Corporate Services Department report CRPS-10-133, dated August 11, 2010 outlining a strategy for replacement of the City's existing ROLM PBX telephone system with a fully integrated Voice over Internet Protocol (VoIP) system. Mr. D. Murray presented background information leading to the most recent review of the City's telephone system and the rationale in recommending the City pursue installation of a VoIP system. Alternative approaches were explored including: maintaining status quo; installation of a traditional PBX system; or contract for Hosted VoIP Services. The alternatives explored are not recommended based on a number of factors, including but not limited to: diminishing local support of the existing ROLM system; a disappearing market for traditional PBX systems; and Hosted VoIP Services being geared more toward small and medium sized businesses, negating the benefits of converged communications in large environments such as the City's and which raise issues of privacy and security in respect to legislated requirements under the Municipal Freedom of Information and Protection of Privacy Act. The strategy provides for aphased-in installation, with Phase 1 to complete installation of a VoIP system at the Consolidated Maintenance Facility (CMF) by June 2011; Phase 2 to upgrade remote sites such as Fire Headquarters and Community Centres over 2011-2012; and Phase 3 to conclude upgrades at City Hall. Mr. Murray reviewed a procurement strategy which proposes a Vendor of Record be awarded to the successful vendor for a period of ten years. The benefits of this approach provides for a single hardware platform over the life of the contract; a single point of contact for resolution of issues, maintenance and upgrades/expansions; and accurate budgeting of associated costs over the term of the contract. It was noted that the proposed strategy fits within the CMF project timelines providing a new site for the initial installation; and the phased-in approach lowers the risk of project failure by allowing the City to move to a full VoIP system over time as resources and funding become available. Mr. Murray advised that a Request for Proposal (RFP) was issued in May 2010, taking into account the needs of the CMF and overall telecommunication needs of the City, and closed on June 25, 2010. Staff anticipate bringing forward a recommendation to award the RFP in September 2010 and if approved, work on the CMF installation will begin in the Fall. Mayor C. Zehr requested clarification of the funding for this project. Mr. Murray advised that the full project costs can be funded from within the current budget through a transfer of funds from both the Telephone and Computer Reserve Funds. It was noted that the cost of Phase 1 (CMF) is estimated at $900,000.; Phase 2 (Remote Sites) at $400,000.; and Phase 3 (City Hall) at $800,000. Mayor Zehr inquired as to when it is expected the City would see a reduction in operating costs. Mr. Murray stated that with the new system maintenance will increase somewhat but will in part be off-set by a reduction in the need for external services from Bell Canada. He stated that he could not forecast a reduction in operating costs until such time as all installations are complete and staff have had an opportunity to become comfortable enough with the new system to begin assuming responsibility for its maintenance from the vendor. Mayor Zehr inquired if there was any reason the City should not maintain the status quo. Mr. Murray commented that while the existing ROLM PBX system is in good condition, support for the system is quickly diminishing in Canada making it more difficult as time passes to find external support for the system. The proposed strategy provides for apro-active approach to replacing the existing system before the City finds itself in a position of being unable to find technical support to maintain it. FINANCE AND CORPORATE SERVICES COMMITTEE 13. CRPS-10-133 -CONSOLIDATED MAINTENANCE FACILITY (CMF) TELEPHONE SYSTEM AND CITY OF KITCHENER TELEPHONE SYSTEM UPGRADE STRATEGY (CONT'D) Councillor J. Gazzola questioned the rationale to move from the existing system to a system that will require increased maintenance. Mr. Murray reiterated the challenges associated with diminishing support for the existing system, noting that the City is currently only able to buy refurbished parts from the United States, the supply of which will dwindle and become non- existent over time. Councillor Gazzola questioned savings to be achieved with the new system and Mr. Murray advised that savings cannot be predicted at this time but noted that maintenance costs will decline as support for the system transitions from the vendor to City staff. Councillor Gazzola requested clarification of the funds available in the Telephone Reserve Fund in comparison to the project estimates. Mr. Murray advised that the Telephone Reserve Fund currently has a balance $1.68M; however, the intent is to also use funds from the Computer Reserve Fund. He noted that there is sufficient funds in the Reserves to complete all phases of the project now; however, the intent is to take aphased-in approach to reduce risks associated with installation of a new system and allow installation to migrate out to the remaining facilities at a comfortable pace. Councillor Gazzola referred to the inclusion of WiFi and digital signage in the new system and questioned if the new system was needed in order to have these products. Mr. Murray advised that one is not dependent on the other but leveraging WiFi with the VoIP system will allow for phone mobility within City facilities. He added that staff is investigating options for WiFi services in City Hall and the Market; however, is of the opinion it would be beneficial to wait until they have full understanding of what comes with the new system before proceeding further. On motion by Councillor C. Weylie - itwas resolved: "That the strategy to replace the City's existing ROLM telephone system with a fully integrated Voice over Internet Protocol (VoIP) system, as outlined in Corporate Services Department report CRPS-10-133, be approved; and, That staff bring a report back to Council recommending a Vendor of Record to perform all three phases of the transition of the City's telephone system from ROLM to VoIP, being: 1) the Consolidated Maintenance Facility; 2) Remote sites; and 3) City Hall; and further, That for each of the future transition phases, staff bring back to Council a report outlining details on costs, funding and timelines for implementation, prior to proceeding." Councillor B. Vrbanovic assumed the Chair at this time. 14. FIN-10-126- ALLOCATION OF PARKING DEVELOPMENT CHARGES The Committee considered Financial Services Department report FIN-10-126, dated July 9, 2010 requesting allocation of parking development charges to the Charles / Benton Parking Garage project. Mr. S. Saleh advised that staff is recommending $6M of the $11.5M Development Charge (DC) funds available for parking projects, be allocated to the Charles / Benton Parking Garage project to eliminate a projected tax levy impact of 0.39% in 2011 and to reduce the projected debt load of the City. It is also recommended that allocation of the remaining funds for parking projects be considered for the Civic District Garage, Centre Block Garage and Charles /Water Garage during the 2011 budget deliberations. Councillor J. Gazzola referred to Appendix 'A' -Table 2 of the staff report and inquired of the $52M total municipal cost in parking projects how much is related to growth and Mr. Saleh advised that the figure equates to approximately $51 M, with 90% eligible for development charge funds. Councillor Gazzola inquired why the total cost of $9.5M is not being covered by development charges for this project. Mr. Saleh advised that the amount recommended ensures elimination of a tax levy impact in 2011 and pointed out that if fully funded from development charges it would present a cash flow issue for the reserve fund that would result in re-prioritization of all eligible development charge projects, not just those for parking. Mr. D. FINANCE AND CORPORATE SERVICES COMMITTEE 14. FIN-10-126- ALLOCATION OF PARKING DEVELOPMENT CHARGES (CONT'D) Chapman further explained that interest accrued as a result of a deficit in the reserve is allocated for coverage by the developer. He noted that the City is to recover $51 M in development charges for parking projects over the 10 Year Forecast and cash flow is constrained within the 10 year window, currently capped at $11.4M in 2010. He stated that if the total $9.5M is allocated to the Charles / Benton Parking Garage it will substantially limit options for allocation to other projects such as the Civic District Parking Garage. Councillor Gazzola stated that it appears to be more beneficial for the taxpayer to have the DC Reserve go into a deficit position rather than the City and Mr. Chapman agreed in that it will eliminate a direct levy impact. He noted that the City has never issued debt in the DC Reserve, choosing to maintain a positive balance to date. Due to the timing of other projects it is possible to issue debt in the reserve and the City also can enter into credit refund agreements if a developer wishes to go ahead and front-end the costs. Mr. Chapman commented that there is too much variation at this time to fully fund the Charles / Benton Parking Garage from development charges and suggested that consideration in context of the 2011 budget is needed in order to prioritize remaining DC funds. Mayor C. Zehr agreed that there are too many other projects pending, particularly in 2011, to allocate full costs to this project and the proposal provides time to deal with the complexity of prioritizing future allocations. He added that the proposal does result in a zero net levy impact and it was his opinion it made sense to do so. On motion by Mayor C. Zehr - itwas resolved: "That parking development charge funding of $6,000,000 be allocated to the Charles and Benton Garage project in 2010; and, That the Charles and Benton Garage debenture, already approved to be issued in 2010, be reduced from $9,525,000 to $3,525,000 as a result of the allocation of parking development charges to the project; and, That allocation of the balance of development charge funding for the Civic District Garage, the Centre Block Garage and the Charles/Water Garage be considered as part of the 2011 Budget deliberations; and further, That it is Council's intention to recover any excess capacity arising out of the Charles and Benton Garage, Civic District Garage, Centre Block Garage and Charles/Water Garage, and available to service growth, through future development charges." 15. FIN-10-128- STIMULUS PROJECT UPDATE -AUGUST 2010 The Committee considered Financial Services Department report FIN-10-128, dated August 18, 2010 which provides an update on the status of stimulus funding projects. Mr. D. Chapman advised of variances in the summary of project status and planned project timeline appendices from commencement one year ago, with some projects not advancing due to uncontrollable factors, or time of year, and some projects slightly behind schedule; however, project managers have confirmed that each project going forward is on track for completion by the March 31, 2011 deadline. Mr. Chapman referred to the issue of release of holdbacks which has now been considered and a decision made by the senior government wherein all holdbacks information must be submitted with the final claim by April 15, 2011 and the holdback must be released no later than March 31, 2012, except for RInC projects which have a release deadline of June 30, 2011. Staff will ensure the holdbacks are retained as long as possible but released before the deadline to ensure no loss of funding. Mr. Chapman conveyed one other matter of issue pertaining to a request for an extension from April 15 to June 30, 2011 for submission of the final report for the Consolidated Maintenance Facility (CMF) project. He noted that staff have been advised by senior government representatives that the request has not yet been considered but has been forwarded to the Infrastructure Stimulus Fund (ISF) Management Committee. Mr. Chapman stated that he believed there are similar requests being made by other municipalities and they will continue to pursue this matter. He asked that Council also consider giving assistance from a political level to resolve FINANCE AND CORPORATE SERVICES COMMITTEE AUGUST 23. 2010 - 125 - C 15. FIN-10-128- STIMULUS PROJECT UPDATE -AUGUST 2010 (CONT'D this issue Mayor C. Zehr noted that in respect to the issue of reporting deadlines for the CMF project, he has had discussion with local MPP, John Malloy, who is also following up on this matter and Mayor Zehr was confident a resolution would be reached. Councillor J. Gazzola noted that no bids were received on closing of the seating tender for the Centre In The Square improvement project and questioned how this portion of the project is to proceed. Mr. Chapman advised that Purchasing staff has gone back to the bidders to consider revised bids and the timeline for this portion of the project will have to be adjusted. Mayor Zehr added that he had talked with Jamie Grant, General Manager of the facility and an alternate installation plan is being developed for off hours /off season. Councillor Gazzola requested clarification of Project #5 of Appendix "A" for the CMF improvements. Ms. C. Fletcher advised these relate to structural enhancements, including such things as installation of a geo-thermal system and cistern. She commented that these elements will produce significant energy enhancements and will provide for at minimum a LEED Silver designation. Councillor K. Galloway questioned if there is any concern in respect to those projects that are behind schedule. Mr. Chapman advised that while timelines are tight, project managers are meeting regularly to review the progress of each project. In respect to RInC projects, Ms. Fletcher advised that the majority of work for the Energy Management Systems project was in the design phase and the actual installation will go quickly and be completed before the end of the calendar year. In respect to the Acquatic Facility projects, Ms. Fletcher reminded of the delay in starting due to confusion as to which projects actually received funding approval. She stated that project managers have reviewed timelines on numerous occasions and are confident these can meet the March 2011 deadline. Mr. S. Allen spoke to the Sewer and Water Main Rehabilitation project, advising that both tenders have been awarded and apre- construction meeting is scheduled for August 24, with construction to start late August-early September and can be finished by the March 2011 deadline. Ms. C. Ladd provided a visual presentation of stimulus supported projects, including: Centre In The Square upgrades; McLennan Park development; CMF development; stormwater infrastructure rehabilitation; sewer/watermain rehabilitation; Sportsworld Arena improvements; and King Street streetscape improvements. It was noted that this is not a comprehensive overview of all projects, with some still in the design phase or which have not received funding but are direct spin-off projects. Ms. Ladd also provided a visual presentation of various projects supported through the City's Economic Development Investment Fund (EDIF), together with statistical data that shows a July unemployment rate of 7.3%, down from a high of 10.1% in February; and local employment growth of 4,500 in July bringing year-to-date gains to a total of 24,300. Ms. Ladd also expressed thanks to staff, commenting on the substantial work that they are currently juggling over and above normal workloads in respect to stimulus projects, not just for the City, but also in the private sector and Regionally. Mr. R. Regier spoke to the employment statistics, noting that from June 2009 to present no other City of similar size in Canada or the United States has added more employment than in this Region and the area is showing remarkable recovery from pre-recession levels. He stated that employment growth is up by 8,500 from pre-recession levels in 2008 and in the last 6 months, by 4,500 including within the manufacturing sector. Building permits in the last 6 months are also up by 68%, with 134 issued for institutions; 121 for industrial; and 109 for commercial. Mayor Zehr referred to the new Courthouse as one project not supported by stimulus funding that is currently underway and has had an impact on staff workload. He questioned if information can be provided in respect to the value of this construction and schematics of the building design. Mr. J. Willmer advised that staff will provide the information requested and noted that a report on this project is to come forward in the next few months. He added that the Province has indicated a desire to pursue above normal standards in respect to design of this project. FINANCE AND CORPORATE SERVICES COMMITTEE 16. CRPS-10-057 -CONSOLIDATED MAINTENANCE FACILITY (CMF) - PROJECT UPDATE -AUGUST 2010 The Committee considered Corporate Services Department report CRPS-10-057, dated August 18, 2010 providing an update on the status of the Consolidated Maintenance Facility (CMF) project from April to August 2010. Ms. P. Houston highlighted the construction process, noting that the construction schedule is currently slightly behind; however, the project team is confident that the overall project schedule can be achieved through various construction activities taking place simultaneously on site. She advised that the construction tender process is 95% complete and staff is confident the project will be completed within budget. Ms. Houston also noted that 75% of the total dollar value of contracts has been awarded to local companies within the Region. Councillor J. Gazzola asked how far behind the project schedule is and was advised approximately 2 to 3 weeks. Councillor Gazzola inquired as to the feasibility of obtaining an estimate for the construction components to compare to tender prices. Ms. P. Houston advised that a line by line estimate would be difficult as various components are being managed through various tenders; as well, change orders will be considered as construction progresses resulting in price changes due to variable pricing of certain components, such as gas and asphalt pricing. Councillor Gazzola requested clarification of the total budget for the CMF project. Ms. Houston advised that $48M is the base budget for the project to which $14M in stimulus funding has been added; and under a separate project $4M is budgeted for the solar roof. 17. FIN-10-139- INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2010 The Committee considered Financial Services Department report FIN-10-139, dated August 17, 2010 which provides an update on City expenditures and revenues compared to the 2010 budget and explains significant variances. Mr. R. LeBrun advised that staff have identified a potential year-end deficit of $2.5M, representing a negative variance of 1.8% on a $138M annual operating budget. Key variances include: anticipated overages in the Operations Division, primarily for increased road maintenance due to milder winter conditions and down time associated with vehicle breakdowns; and in Corporate Services, a shortfall in parking fine revenues in By-law Enforcement and unbudgeted retroactive pay adjustments in Facilities Management /Legal Services. These are off-set somewhat by increases in Planning /Engineering permit and sign revenues; and parking revenue increases related to delayed closing of the Library lot and higher demand in hourly and monthly parking. Other areas impacting year-end estimates that require close monitoring include: supplementary taxes and tax rebates/refunds/reductions; investment income; and gapping. Mr. LeBrun advised that in light of a projected deficit, and insufficient funds in the Tax Stabilization Reserve to off-set a large deficit, staff is taking action to mitigate the amount of deficit through: similar policies established in 2009 intended as guidelines for decision making in day to day work with the goal of reducing expenses; review of existing capital projects to identify potential close-out of unexpended capital balances; and review of the gapping policy to determine any necessary adjustment. Mr. LeBrun then provided an overview of activities related to: Building Enterprise; Golf Courses; Water and Sanitary Sewer Utilities; Gas Utility; Investment Income; and Taxes Receivable, as outlined in Schedules 2 to 9 of report FIN-10-139. Councillor J. Gazzola requested clarification of the estimated $470,000. overage in the Operations Division, commenting that he would expect it to be less due to a milder winter. Mr. J. Witmer pointed out that only half of the 2010 winter season is complete, with the front end milder and the year-end yet to come. He stated that staff anticipates costs similar to the average and is not projecting positive outcomes other than where currently existing. He pointed out that when winter maintenance lessens staff resources are deployed to other work, which includes such things as road maintenance, increased litter pick-up and vehicle maintenance. He added that staff is also handling a substantial increase in construction work due to the stimulus funding program. Councillor Gazzola requested clarification of the City's deficit addressed in 2009 and was advised that the final deficit figure to be addressed in 2009 was $276,000., down from $4.5M FINANCE AND CORPORATE SERVICES COMMITTEE 17. FIN-10-139 - INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2010 (CONT'D1 prior to review of capital close-outs and budget corrections. Mr. Chapman advised that staff will again be looking at capital projects for potential close-out of unexpended balances; however, the amounts will not be to the same scale as realized in 2009. Councillor Gazzola requested clarification as to why retroactive pay adjustments were unbudgeted. Mr. Chapman advised that these relate to staff positions whose job descriptions are being reviewed, and currently there is a substantial back-log delaying the process. He stated that pay adjustments are not budgeted for so as not to pre-suppose review outcomes. Councillor Gazzola inquired as to the extent of the backlog. Ms. C. Ladd advised that approximately 400 positions are waiting to be reviewed and it has been recognized that with only one staff person responsible for review/writing new job descriptions it is impossible to manage the backlog. Accordingly, a temporary position has been approved to assist in addressing the backlog and senior staff is working to develop strategy to address the issue of future retroactive pay adjustments through creation of a reserve fund. Councillor B. Vrbanovic raised concerns with the number of positions to be reviewed. Ms. C. Tasker advised that the process for job review is being looked at with the goal to avoid similar backlog in future. She pointed out that any job description written prior to hiring of the Classification Writer in 2004 requires updating and takes time to review and re-write given some are quite lengthy and language used is inconsistent. Ms. Ladd added that while the City has a policy that provides for job positions to be reviewed within a certain period of time, some positions have not been reviewed since inception of the current job review process in the 1980's, contributing to the backlog in job reviews. Councillor Vrbanovic inquired if this presents a potential problem from a financial point of view and Ms. Tasker advised that not all would be subject to retroactive pay adjustments. Councillor Vrbanovic requested clarification as to what adjustments would be evaluated on and the potential impact. Ms. Ladd suggested that a presentation be made at a future meeting by Human Resources staff as they have better knowledge and expertise in which to respond. Councillor J. Gazzola requested clarification as to policy regarding surplus funds in the Building Enterprise. Mr. M. Selling advised that currently there is no policy on a minimum or maximum amount. He stated that a report was brought forward 2 years ago to consider whether it should be 100% or 150% of direct costs; however, a decision was delayed pending the outcome of economic downturn in 2008 on the premise that staff would be in a better position to know at that time what would be appropriate to recommend. Councillor Gazzola raised concerns regarding the substantial variances in Golf Course Canteen Operations. Ms. P. Houston advised that this is impacted by the volume of tournament activity and is also attributable to the timing of purchasing items for the canteens. She stated that this corrects itself in the latter part of the budget year when volumes are realized. Councillor Gazzola referred to the average yield on investment balances for Pooled Investment Funds at 2% versus the City's yield at 1.02%, questioning if more should be invested here. Mr. R. LeBrun suggested that the yield is somewhat misleading as it is based on long term rates rather than monthly. He added that if large amounts are invested for long term but subsequently are required prior to expiration of the term, a loss is suffered and there is also a fee charged on investments. Mr. LeBrun advised that staff is continuing to analyze the Pooled Investment Funds and a report will come forward at a future date. 18. ADJOURNMENT On motion, the meeting adjourned at 4:15 p. m. J. Billett Committee Administrator