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HomeMy WebLinkAbout2011-04-11FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 11, 2011 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 12:45 p.m. Present: Councillor J. Gazzola - Chair Mayor C. Zehr and Councillors S. Davey, Y. Fernandes, K. Galloway, P. Singh, B. Ioannidis, F. Etherington and D. Glenn-Graham. Staff: C. Ladd, Chief Administrative Officer D. Chapman, Deputy CAO, Finance & Corporate Services J. Willmer, Deputy CAO, Community Services P. Houston, Deputy CAO, Infrastructure Services R. Gosse, Director, Legislated Services & City Clerk M. May, Interim Director, Human Resources S. Turner, Director, By-law Enforcement C. Fletcher, Director, Facilities Management L. MacDonald, Director, Legal Services & City Solicitor D. Murray, Manager of Client Services P. Harris, Manager of Licensing J. Young, Manager of Special Events I. Magid, Supervisor, Benefit Development A. TenBruggencat, Facilitator, Corporate Emergency Preparedness J. Billett, Committee Administrator FCS-11-068 - SOCIAL GAMING EVENT 1. - BETH JACOB CONGREGATION - JUNE 29, 2011 The Committee considered Finance and Corporate Services Department report FCS-11-068, dated March 30, 2011 concerning application for a lottery licence to permit a social gaming event. On motion by Councillor B. Ioannidis - it was resolved: “That the City of Kitchener has no objection to a Provincial Lottery Licence being issued to the Beth Jacob Congregation to conduct a social gaming event at the Beth Jacob Synagogue, 161 Stirling Avenue South, Kitchener, on June 29, 2011.” FCS-11-069 - REQUEST BY HOLY TRINITY SERBIAN ORTHODOX CHURCH TO HOLD A 2. SPECIAL EVENT - JULY 30 AND 31, 2011 The Committee considered Finance and Corporate Services Department report FCS-11-069, dated March 30, 2011 concerning a request to hold a special event. On motion by Councillor B. Ioannidis - 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 30 & 31, 2011 from 12:00 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, on July 30 & 31, 2011 from 2:00 p.m. to 10:00 p.m.; and further, That this event be declared a “Community Festival” for the purpose of applying for a liquor licence, since this is a religious celebration and promotes unity within our community.” FCS-11-070 - REQUEST FOR MIDWAY AT CHICOPEE SKI & SUMMER RESORT 3. - 396 MORRISON ROAD - MAY 6-8, 2011 The Committee considered Finance and Corporate Services Department report FCS-11-070, dated March 30, 2011 concerning a request to operate a midway. FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 11, 2011 - 93 - CITY OF KITCHENER FCS-11-070 - REQUEST FOR MIDWAY AT CHICOPEE SKI & SUMMER RESORT 3. - 396 MORRISON ROAD - MAY 6-8, 2011 (CONT’D) Ms. P. Harris advised that she had received a subsequent request from Chicopee Ski & Summer Resort to change the hours of operation for the midway and the new hours of operation will also have effect to the timing of the noise exemption. On motion by Councillor Y. Fernandes, it was agreed to modify the staff recommendation to provide hours of operation on May 6 from 4:00 pm to 10:00 pm; on May 7 from 10:00 am to 10:00 pm; and on May 8 from 10:00 am to 6:00 pm; and that the noise exemption reflect the same hours of operation. On motion by Councillor B. Ioannidis - it was resolved: “That Campbell Amusements be granted permission to operate a Midway at Chicopee Ski & Summer Resort, 396 Morrison Road from May 6-8, 2011 subject to the following: Hours of operation: Date Start Close Friday, May 6 4:00 p.m. 10:00 p.m. Saturday, May 7 10:00 a.m. 10:00 p.m. Sunday, May 8 10:00 a.m. 6:00 p.m. ;and, That the music at the Midway be turned down at 9:00 p.m.; and, That the required licence be obtained prior to operating the Midway; and further, That Chicopee Ski & Summer Resort be granted an exemption from Chapter 450 (Noise) of the City of Kitchener Municipal Code in conjunction with an event at 396 Morrison Road on May 6, 2011 from 4:00 p.m. to 10:00 p.m.; on May 7, 2011 from 10:00 a.m. to 10:00 p.m.; and on May 8, 2011 from 10:00 a.m. to 6:00 p.m.” FCS-11-072 - REQUEST FOR THE SALE OF FOOD AND SOUVENIRS AT ALL 4. TOURNAMENTS ON CITY SPORTSFIELDS The Committee considered Finance and Corporate Services Department report FCS-11-072, dated April 1, 2011 concerning a request to permit operation of concessions by sports organizations holding tournaments on City-owned sportsfields. On motion by Councillor B. Ioannidis - it was resolved: “That approval be granted to sports organizations that are holding tournaments, during the months of May through November 2011 and have received Field Rental Permits/Contracts from Community Services at the sports fields listed on Schedule ‘A’ attached to Finance and Corporate Services Department report FCS-11-072, to run a concession which may include the sale of hamburgers, hot dogs, pop, water, packaged foods, etc., as well as souvenirs, provided the necessary licence, including Health and Fire approvals is obtained.” FCS-11-073 - REQUEST FOR PERMISSION TO SELL REFRESHMENTS 5. - PROBATION OFFICERS ASSOCIATION OF ONTARIO - SPEAKERS CORNERS - KING & BENTON STREETS - MAY 5, 2011 The Committee considered Finance and Corporate Services Department report FCS-11-073, dated April 1, 2011 concerning a request to sell refreshments at Speakers’ Corner for a special event. On motion by Councillor B. Ioannidis - it was resolved: FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 11, 2011 - 94 - CITY OF KITCHENER FCS-11-073 - REQUEST FOR PERMISSION TO SELL REFRESHMENTS 5. - PROBATION OFFICERS ASSOCIATION OF ONTARIO - SPEAKERS CORNERS - KING & BENTON STREETS - MAY 5, 2011 (CONT’D) “That the request of the Probation Officers Association of Ontario to sell refreshments at Speaker’s Corner, corner of King and Benton Streets on May 5, 2011 from 11:30 a.m. to 2:00 p.m. be approved, provided the necessary licence, including Health approval, is obtained.” FCS-11-074 - REQUEST FOR VARIOUS EVENTS IN THE DOWNTOWN DURING 2011 6. The Committee considered Finance and Corporate Services Department report FCS-11-074, dated April 4, 2011 concerning a request to sell food/merchandise on City property during various Downtown events, as well as, granting of noise exemptions and declarations as “Community Festivals” as they relate to these events. It was noted in the agenda that any recommendation from the Committee concerning this matter would be forwarded for consideration at the special Council meeting to be held later this same date. Councillor F. Etherington referred to Schedule ‘B’ (Noise Exemptions), questioning if the organizers of the Kitchener Ribfest pay for the clean-up and their impact to the Commons area in Victoria Park. Mr. J. Young advised that discussions concerning take-down of the event have been held with the event organizers and a subsequent meeting is to be held with the Victoria Park Working Group to address any concerns. Councillor Etherington referred to the condition of the bridge in Victoria Park that crosses over to the island which is in need of repair and questioned what impact there might be to the City’s liability in respect to two events to take place on the island. Ms. P. Houston agreed to follow up with Operations in respect to this matter. On motion by Councillor B. Ioannidis - it was resolved: “That the request for the sale of food and/or merchandise on City property during various events being conducted from April to December 2011, listed on Schedule ‘A’ of Finance and Corporate Services Department report FCS-11-074, be approved, provided the necessary licences are obtained, including Health and Fire approval; and, That the request for an exemption from Chapter 450 (Noise) of the City of Kitchener Municipal Code for the events listed on Schedule ‘B’ of report FCS-11-074 be granted; and further, That the request for permission to sell alcohol on City property for the events listed on Schedule ‘C’ of report FCS-11-074 be granted and be declared “Community Festivals” for the purpose of applying for a liquor licence.” FCS-11-071 - GROUP BENEFITS PROVIDER REVIEW 7. The Committee considered Finance and Corporate Services Department report FCS-11-071, dated April 6, 2011 concerning awarding of a group insurance provider for the City’s benefits program, effective July 1, 2011. Councillor P. Singh disclosed a pecuniary interest and abstained from all discussion and voting concerning this matter as his spouse is employed by Sun Life Financial. Mr. M. May advised that the City is contractually obligated to provide benefits to City employees under the terms of collective agreements with unionized staff. Staff worked with Mercer (Canada) Limited to undertake a market analysis and conduct a competitive tendering process based on four major components, including: Group Benefits Program; Accidental Death and Dismemberment Benefits (AD&DB); Third Party Administrator (TPA); and the Employee Assistance Program (EAP). The report provides details regarding the process for FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 11, 2011 - 95 - CITY OF KITCHENER FCS-11-071 - GROUP BENEFITS PROVIDER REVIEW (CONT’D) 7. Request for Proposals (RFP) which has resulted in recommendations for the first 3 components; and a recommendation as to a preferred vendor for the EAP program will come forward at a later date. Mr. May advised that the recommendations for consideration today result in significant cost savings to the Corporation and it was noted that Sun Life Financial, the preferred vendor, was the lowest bidder for the Group Benefits Program. He added that AXA Assurances and Buffett Taylor also provided the lowest bids for provision of the AD&DB and TPA, respectively, and the award to these two companies has been made in accordance with the City’s Purchasing By-law. Mr. May noted that benefit expenditures were already reduced as part of the 2011 budget process in anticipation of the savings to be achieved in award of the RFP and the balance of savings will be realized in the 2012 budget process. He pointed out, however, that the savings will be more than off-set by mandated increases in contribution rates under the OMERS Pension Plan. Councillor D. Glenn-Graham questioned the feasibility of collaborating with the Region of Waterloo and area municipalities to achieve efficiencies. Ms. I. Magid advised that while Sun Life is currently the provider for the Region and the City of Waterloo, each municipality has differing benefit structures that would make it difficult for one company to provide a comprehensive proposal for all. In response to Councillor Y. Fernandes, Mr. May advised that it is intended to follow a 5 year cycle for review of the City’s benefits program, which corresponds to industry standards. He advised that Mercer was retained at a cost of $19,000 and it was his opinion that the City would not have achieved such favourable costing had it not engaged the services of this company. Councillor Fernandes questioned if the benefits program fluctuates that significantly so as to require a review every 5 years. Ms. W. Anderson, Mercer (Canada) Limited, responded that the benefits program itself has not changed but rather what is reviewed for pricing is the cost to administer the program. She pointed out that the savings achieved through this tendering process is in part based on a substantive reduction in administration fees to be charged by Sun Life in processing claims. Mayor C. Zehr questioned the feasibility in future of partnering with the Region and the City of Waterloo should the timing of reviews align given that Sun Life is their current supplier. Ms. Anderson commented that the City has reached a size where it has fully capitalized on its expense margin, and with each municipality having its own complex benefit structure, she was uncertain that there would be any financial gains to be made. Mayor Zehr questioned if the contract allows for an extension at the end of the 5 year term in the event it may be considered more beneficial to renew on a short term basis without going back out to the market. Ms. Anderson advised that the contract provides for termination on 31 days notice and any provision for extension of the contract would be a decision of Council. Mr. D. Chapman pointed out that while cost savings are tied to administrative fees, they also result from significant reductions in the rates to purchase life insurance and long term benefits. Councillor J. Gazzola questioned if consideration had been given to aligning the timing of review to the 4 year term of Council. Ms. Anderson advised that other City’s have considered and abandoned the idea as this is an expensive process to undertake and there would be no meaningful advantage to increasing the frequency of a review. Councillor Gazzola requested clarification of stop loss insurance. Ms. Anderson advised that this type of insurance mitigates the risk of major loss resulting from high claims costs. The City’s program does not include this type of insurance but it is a common practice of other municipalities. Ms. Anderson provided an example wherein if the City purchased insurance on the basis of a pre-determined annual amount of $25,000, the City would be responsible for the first $25,000 and Sun Life would absorb any claims over and above that amount. Mr. D. Chapman added that it is intended to undertake further analysis of stop loss insurance, with a recommendation to Council to come forward at a later date. Councillor Gazzola requested clarification of the relationship of the cost savings to the increase in OMERS rates. Mr. Chapman advised that OMERS rates are to increase at 1% per year over a 3 year period and the first year was dealt with during the 2011 budget process. In 2012 and 2013 there will be a further 1% increase to deal with, and the cost savings in benefit expenses will help to off-set this expense in 2012. Councillor P. Singh previously disclosed a pecuniary interest and abstained from all discussion and voting concerning this matter as his spouse is employed by Sun Life Financial. FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 11, 2011 - 96 - CITY OF KITCHENER FCS-11-071 - GROUP BENEFITS PROVIDER REVIEW (CONT’D) 7. On motion by Councillor K. Galloway - it was resolved: “That Sun Life Financial be awarded the role of the group insurance provider for the City's group benefit program effective July 1, 2011 at their quoted annual estimated cost of $6,115,959, plus PST for a total of $6,605,236, based on a satisfactory contract being negotiated; and the Mayor and Clerk be authorized to execute the contract, satisfactory to the City solicitor. INS-11-036 - COUNCIL CHAMBER AUDIO/VISUAL SYSTEM REPLACEMENT 8. The Committee considered Infrastructure Services Department report INS-11-036, dated April 1, 2011 concerning the outcome of an assessment of the Council Chamber audio/visual (a/v) system. Ms. C. Fletcher advised that the existing a/v system is about 20 years old and has had intermittent failures among the complexity of components. A staff team undertook a comprehensive assessment of the system, assisted by Westbury National Show Systems Limited (WNSSL), with the intent of providing options for short term and long term improvements. It was determined that all short term solutions have already been exhausted and any further piecemeal improvements would be throw away dollars. Ms. Fletcher stated that the system as it exists now requires a complete overhaul, noting that at any time the system and/or portions thereof could fail and some components are too outdated to be replaceable. She advised that staff intend to undergo the tendering process to ensure the company engaged is qualified to do the kind of upgrading required and it is proposed that preliminary work will commence in December 2011-January 2012, with the majority of work to take place during the 2012 summer meeting recess. Councillor K. Galloway inquired if this will provide opportunity for use of laptops in the Chamber. Ms. Fletcher advised that this could be one of the options considered in the overall review of various features that could potentially be added. Councillor Galloway inquired if enhancements related to accessibility standards will be taken into consideration. Mr. J. Coniglio, WNSSL, advised that the new system will have capability for hearing and language enhancements, as well as other features such as electronic voting and request to speak functions. Councillor S. Davey requested clarification concerning aspects of the existing projector. Mr. Coniglio advised the projector is reasonably new and in the event of budget constraints, it could remain in use. He suggested, however, that replacement should be considered as it did recently have a video card failure and it does not support a widescreen 16:9 aspect ratio or high definition content. He added that the projector could be re-used elsewhere if a replacement is purchased for the Council Chamber. Councillor Davey inquired if a break down of costs for each component would be made available. Ms. Fletcher stated that specifications for the tender document to be developed will include a break down of all components required for the new a/v system. Councillor Y. Fernandes referred to upgrades in the millwork suggesting estimates seem high. Ms. Fletcher advised that all figures are estimated costs at this time with true costs to be determined in development of the tender specifications. Councillor Fernandes suggested that this would be a good project in which to support qualified local companies. In response to Mayor Zehr, Mr. Coniglio provided explanation of how the millwork might physically be changed if a decision is made to replace the existing projection screen. He advised that a solution would have to be engineered, with the approach to be taken as unobtrusive as possible. Mayor Zehr asked that renderings of potential changes in the millwork be provided in consideration of the tender process. Mayor Zehr also expressed support for features such as the voting and request to speak options and options that would allow use of laptops that could potentially lead toward paperless agendas for meetings. Mayor Zehr noted that placement of one monitor between two Councillor stations was placed in one location at the Council table as a trial and questioned if it was intended to pursue this set-up for the remainder of stations.Mr. Coniglio confirmed that pricing is intended to be based on one FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 11, 2011 - 97 - CITY OF KITCHENER INS-11-036 - COUNCIL CHAMBER AUDIO/VISUAL SYSTEM REPLACEMENT (CONT’D) 8. monitor for every two positions. Mayor Zehr stated that it was time to move forward given substantial changes in technology and encouraged prudent use of funds in securing a system that will remain viable over the next 10 to 20 years. A motion by Mayor C. Zehr was brought forward for consideration to direct staff to proceed with development of the specifications for replacement of the existing Council Chamber a/v system and following, to commence the tendering process. Councillor J. Gazzola inquired if installation could occur sooner than the summer of 2012, raising concerns of the current systems ability to continue to function in the interim. Ms. Fletcher advised that no guarantees could be given in respect to function of the current system but pointed out that time is needed to undertake the tendering process and scheduling of the work will require planning to ensure the least disruption to meeting schedules. Mr. D. Chapman added that if desired, staff could pursue options that may allow completion of the work earlier than what is currently proposed. Councillor Gazzola inquired how long the new system is expected to remain viable. Mr. Coniglio stated that the proposed system has been recommended in context of future technological advances known at this time to support longevity but he could not specify a set number of years. Councillor Gazzola noted that the City has set aside approximately $250,000 and requested a rough estimate of the funding that would be required to provide the components needed. Mr. Coniglio advised that the City of Mississauga and the Region of Peel recently upgraded their systems at a cost of $450,000 and $625,000, respectively. He pointed out, however, that their system upgrades included many more features than what is included in this proposal, such as video conferencing and live streaming to the web, which are not necessarily required here at this time but which could be added in future. Councillor Gazzola inquired if WNSSL is being retained to write the tender specifications. Ms. Fletcher advised that WNSSL was retained only to assist in assessment of the current a/v system and would not be involved in writing of the tender specifications for any new system as they could potentially bid on the project. Mr. A. TenBruggencate added that it is intended to use consultant services of a different company who has expertise in the industry but which does not undertake installations; and therefore, would not be bidding on the project. Ms. Fletcher further advised that it is intended that the specifications be developed in a manner to ensure the right kind of companies bid and expressed the opinion it would be money well spent to retain the services of an expert consultant to assist in development of the specifications. Councillor S. Davey questioned if a separate tender is to be written for each component of the system. Ms. Fletcher expressed concerns with this kind of approach, reiterating the need to ensure the City retains a company with appropriate expertise for this installation. Mr. Coniglio added that it is important to have one contractor to ensure there is complete knowledge as to how the system is integrated and operated, which he maintained could not be achieved in piecemeal. Councillor Davey commented that he was not convinced that it could not be done separately and proposed that the motion be amended to provide that separate tenders be written for each of the different components of the proposed a/v system. Mr. D. Chapman pointed out that as part of Council’s consideration of the tender award a list for additions and/or deletions would be provided and it would be Council’s decision to choose how far to go in replacement of the system. He advised that this kind of system is highly integrated and staff strongly desires one vendor who will have full knowledge of the system and who will ultimately stand behind their product. Mayor C. Zehr advised that he would not accept Councillor Davey’s proposed amendment as friendly, agreeing that use of multiple vendors often leads to problems of accountability. He suggested that staff could look at the feasibility of sub-contractors but maintained the importance of having one contractor ultimately in charge of the project. Councillor Davey withdrew his proposed amendment. On motion by Mayor C. Zehr - it was resolved: FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 11, 2011 - 98 - CITY OF KITCHENER INS-11-036 - COUNCIL CHAMBER AUDIO/VISUAL SYSTEM REPLACEMENT (CONT’D) 8. “That staff be directed to proceed with development of tender specifications for replacement of the existing Council Chamber audio/visual conference system, as outlined in Infrastructure Services Department report INS-11-036, and on completion of the written specifications to commence the tendering process.” ADJOURNMENT 9. On motion, the meeting adjourned at 1:43 p.m. J. Billett Committee Administrator