HomeMy WebLinkAbout2012-03-19COMMUNITY AND INFRASTRUCTURE SERVICES COMMITTEE
The Community and Infrastructure Services Committee met this date, commencing at 3:25 p. m.
Present: Councillor K. Galloway -Chair
Mayor C. Zehr and Councillors J. Gazzola, D. Glenn-Graham, B. loannidis, Z. Janecki,
Y. Fernandes, S. Davey and P. Singh.
Staff: J. Willmer, Deputy CAO, Community Services
C. Fletcher, Acting Deputy CAO, Infrastructure Services
D. Chapman, Deputy CAO, Finance & Corporate Services
J. McBride, Director of Transportation Services
G. Murphy, Director, Engineering Services
W. Malcolm, Director of Utilities
J. Witmer, Director of Operations
S. Adams, Director, Strategic Planning & Innovation
K. Kugler, Director of Enterprises
R. Hagey, Director, Financial Planning
S. Allen, Manager, Engineering Design & Approvals
L. Baillargeon, Manager, Asset Optimization
D. Ross, Manager, Development Review
D. Lupsa, Manager, Design & Construction Project
J. Billett, Committee Administrator
C. Goodeve, Committee Administrator
CSD-12-037 -DEMOLITION CONTROL APPLICATION DC12/01/H/MV
- 139 HUBER STREET
- MICHAEL O'NEILL
The Committee considered Community Services Department report CSD-12-037, dated
February 24, 2012, concerning a Demolition Control Application for 139 Huber Street.
On motion by Mayor C. Zehr -
itwas resolved:
"That Demolition Control Application DC12/01/H/MV requesting permission to demolish
one (1) single detached dwelling located at 139 Huber Street, owned by Michael O'Neill,
be approved with the following conditions:
1) That the owner obtains a building permit for the proposed residential dwelling
unit; and,
That upon satisfaction of Condition 1, the Chief Building Official may authorize and
issue a demolition permit under Section 33(6) of the Planning Act subject to the
following condition:
"In the event that construction of the new dwelling unit is not substantially
complete within 2-years of the date of issuance of the demolition permit, the City
Clerk may enter on the collector's roll, to be collected in like manner as municipal
taxes, $20,000. for each dwelling unit contained in the residential properties in
respect of which the demolition permit is issued and such sum shall, until the
payment thereof, be a lien or charge upon the land in respect of which the permit
to demolish the residential property is issued."
CSD-12-039 -AMENDMENT TO BY-LAW 2011-124
- ZONE CHANGE APPLICATION ZC 10/12/H/GS
- 313 & 319 HIGHLAND ROAD WEST
The Committee considered Community Services Department report CSD-12-039, dated March
7, 2012, concerning proposed amendments to By-Law 2011-024 to correct a typographical
error.
On motion by Mayor C. Zehr -
itwas resolved:
COMMUNITY AND INFRASTRUCTURE SERVICES COMMITTEE
CSD-12-039 -AMENDMENT TO BY-LAW 2011-124
- ZONE CHANGE APPLICATION ZC 10/12/H/GS
- 313 & 319 HIGHLAND ROAD WEST (CONT'D)
"That By-law 2011-124 be amended by correcting "Special Provision Regulation 472R"
to "Special Provision 572R"; and further,
That Map No.1 dated August 19, 2011 attached to By-law 2011-124, be replaced with
Map No. 1, dated February 24, 2012, attached as Appendix B to Community Services
Department report CSD-12-039."
CSD-12-043 -REQUEST FOR TEMPORARY OCCUPANCY
- 405 NYBERG STREET (BRAUN'S BICYCLES)
The Committee considered Community Services Department report CSD-12-043, dated March
7, 2012, concerning a request for temporary occupancy of 405 Nyberg Street.
It was noted in the agenda that any recommendation from the Committee regarding this matter
would be forwarded for consideration to the Special Council meeting to be held later this same
date.
On motion by Mayor C. Zehr -
itwas resolved:
"That the request for temporary occupancy for 405 Nyberg Street be approved, subject
to the following:
• That enforcement of the City's Zoning By-law be waived with respect to warehouse,
sale and repair of sporting goods and accessory office uses being located at 405
Nyberg Street, within the existing building and temporary occupancy be approved
subject to the uses vacating the location in the event that Zone Change Application
ZC12/05/N/KA is not finally approved; and further,
• That in the event of failure to vacate, the City's Municipal By-law Enforcement
Officer be directed to commence notice of action to remove the illegal use and that
any work done to the premises be at the sole risk and responsibility of the owner in
the event losses are incurred as a result of the final disposition of this application."
INS-12-014 -DRINKING WATER QUALITY MANAGEMENT STANDARD
- 2011 MANAGEMENT REVIEW SUMMARY
The Committee received for information Infrastructure Services Department report INS-12-014,
dated March 12, 2012, which provides a summary of the 2011 Management Review in
accordance with the Drinking Water Quality Management Standard under the Safe Drinking
Water Act, 2002.
INS-12-022 - ON-STREET PARKING REGULATIONS - SHELDON AVENUE SOUTH
The Committee considered Infrastructure Services Department report INS-12-022, dated
March 7, 2012, recommending a stopping prohibition on Sheldon Avenue South.
On motion by Mayor C. Zehr -
itwas resolved:
"That stopping be prohibited between the hours of 8:00 a. m. to 6:00 p. m. on both sides
of Sheldon Avenue South from King Street East to Charles Street East; and further,
That the Uniform Traffic By-law be amended accordingly."
COMMUNITY AND INFRASTRUCTURE SERVICES COMMITTEE
INS-12-030 - ON-STREET PARKING REGULATIONS -DANE STREET
The Committee considered Infrastructure Services Department report INS-12-030, dated
March 7, 2012, recommending certain parking prohibitions on Dane Street.
On motion by Mayor C. Zehr -
itwas resolved:
"That parking be prohibited at anytime on the west side of Dane Street from a point 22
metres north of Crescent Street to a point 21 metres north thereof; and,
That parking be prohibited at anytime on the west side of Dane Street from a point 124
metres north of Crescent Street to a point 20 metres north thereof; and further,
That the Uniform Traffic By-law be amended accordingly."
CAO-12-013 -APPOINTMENT -SAFE & HEALTHY COMMUNITY
ADVISORY COMMITTEE
The Committee considered Chief Administrator's Office report CAO-12-013, dated March 12,
2012, regarding an appointment to the Safe & Healthy Community Advisory Committee.
On motion by Mayor C. Zehr -
itwas resolved:
"That Vesna Pavkovic be appointed to the Safe & Healthy Community Advisory
Committee (Community-At-Large representative) for the term ending November 30,
2012."
INS-12-031 -NOISE EXEMPTION -HWY 7/8 RECONSTRUCTION AND WIDENING
The Committee considered Infrastructure Services Department report INS-12-031, dated
March 6, 2012, concerning a noise exemption request for construction work on Highway 7/8.
On motion by Councillor B. loannidis -
itwas resolved:
"That the Ministry of Transportation of Ontario (MTO) and its contractor(s) be exempt
from the provisions of Chapter 450 (Noise) of the City of Kitchener Municipal Code,
Article 6 (Construction Work), during the Highway 7/8 (Courtland Avenue to 1 km west
of Fischer-Hallman Road) reconstruction and widening project in the City of Kitchener,
between the hours of 7:00 p. m. and 7:00 a. m. for the period March 7, 2012 to June 30,
2015. "
INS-12-032 -NOISE EXEMPTION -RESURFACING OF HWY 401
AND HOMER WATSON BOULEVARD
The Committee considered Infrastructure Services Department report INS-12-032, dated
March 6, 2012, concerning a noise exemption request for construction work on Highway 401
and Homer Watson Boulevard.
Mr. J. McBride agreed to provide Councillor Y. Fernandes with the circulation area proposed
for notification to area residents.
On motion by Councillor D. Glenn-Graham -
itwas resolved:
"That the Ministry of Transportation of Ontario (MTO) and its contractor(s) be exempt
from the provisions of Chapter 450 (Noise) of the City of Kitchener Municipal Code,
Article 6 (Construction Work) during the Highway 401 and Homer Watson Boulevard
resurfacing in the City of Kitchener, between the hours of 7:00 p.m. and 7:00 a. m. for
the period May 1, 2012 to October 31, 2012."
COMMUNITY AND INFRASTRUCTURE SERVICES COMMITTEE
MARCH 19. 2012 - 24 - CITY OF KITCHENER
10. INS-12-029 -DECLARATION OF SURPLUS LAND - PARKVALE DRIVE
- SALE TO THE WATERLOO REGION DISTRICT SCHOOL BOARD
The Committee considered Infrastructure Services Department report INS-12-029, dated
March 7, 2012, concerning a request from the Waterloo Region District School Board to
purchase a small portion of Parkvale Park to facilitate an egress driveway from a future school
site.
In response to Councillor B. loannidis, Mr. J. Witmer advised that the purchase price has still to
be negotiated based on current market value.
Councillor J. Gazzola inquired if there is any option other than acquisition of a portion of the
park land that would resolve site access for the future school. Mr. J. Witmer advised that
Council could decide to refuse the request of the School Board; however, he pointed out that
this would leave the School Board in the position of having to redesign the entire site. He
stated that the concern is related to vehicle movement on the site and the portion of park land
proposed for sale is currently used as an overland flood route and utility easement. Mr.
Witmer advised that sale of this portion of the park lands will not impact use of the park or any
future park development.
Councillor Y. Fernandes raised concerns with potential complaints from idling vehicles as
students are dropped off /picked up on Park Vale Drive, suggesting that it would be preferable
to limit ingress /egress to Woodbine Avenue. Councillor Fernandes stated that she was not in
support of the sale of park land for use as a driveway. Mr. J. Witmer suggested that Council
could opt to have the sale proceeds added to the City's Park Trust Fund for purposes of
acquiring future park land to recoup the equivalent of that proposed for sale.
Mayor C. Zehr noted that the School Boards have been looking at ways to provide circular
driveways on proposed school sites to address over-crowding of parked vehicles at road side
and questioned if this might be one of those sites. Mr. J. Witmer suggested that in light of the
questions being asked, that staff could invite representatives of the School Board to the March
26, 2012 Council meeting to provide more detail in respect to their request. Mayor C. Zehr
suggested that this matter be referred for further consideration to the March 26th Council
meeting to allow representatives of the School Board to attend to speak to their request.
Councillor K. Galloway questioned if the existing paved pathway is part of the lands to be
declared surplus and Mr. Witmer confirmed that it was. Councillor Galloway questioned if the
path was shown in the Parks & Trails Master Plan and Mr. Witmer stated that he believed it
came into place after the Plan. Councillor Galloway questioned if portions of trail networks
have ever been included as part of a declaration of surplus lands prior to this request and Mr.
Witmer advised he did not know.
Mr. J. Willmer added that Council could also opt to retain ownership of the park lands and
grant a lease to the School Board for use of that portion of the park lands but noted that in this
instance, it would result in less monetary recovery. Councillor Galloway expressed concerns
with the proposed driveway being in close proximity to a pathway given the potential for conflict
between vehicles and pedestrians, and asked that staff take this into consideration for further
discussion at the March 26th Council meeting.
On motion by Councillor Mayor C. Zehr -
itwas resolved:
"That the following recommendation contained in Infrastructure Services Department
report INS-12-029 be referred to the March 26, 2012 Council meeting pending
additional information:
COMMUNITY AND INFRASTRUCTURE SERVICES COMMITTEE
MARCH 19. 2012 - 25 - CITY OF KITCHENER
10. INS-12-029 -DECLARATION OF SURPLUS LAND - PARKVALE DRIVE
- SALE TO THE WATERLOO REGION DISTRICT SCHOOL BOARD (CONT'D)
"That the portion of park land located on Parkvale Drive, in the City of Kitchener,
owned by the Corporation of the City of Kitchener, described as a portion of
Registered Plan 58M-338 Block 422, marked on Appendix "A" to Infrastructure
Services Department report INS-12-029, to be described pursuant to a Reference
Plan yet to be prepared (the "Lands"), be declared surplus for the purpose of City
ownership and sold to the Waterloo Region District School Board, the owner of the
abutting property at 130 Woodbine Avenue reserving an easement for the City's
benefit over the Lands for utilities and overland flow; and,
That the Mayor and Clerk be authorized to execute an Agreement of Purchase and
Sale with the Waterloo Region District School Board, for the conveyance of said
Lands at fair market value as determined by the City's Real Estate Service Provider
and agreed upon by the School Board; said agreement to be to the satisfaction of
the City Solicitor; and further,
That the Mayor and Clerk be authorized to execute the necessary documentation,
satisfactory to the City Solicitor, to effect the conveyance of the Lands."
11. INS-12-012 -SUMMARY WATER REPORT -JANUARY 1 TO DECEMBER 31, 2011
The Committee considered Infrastructure Services Department report INS-12-012, dated
March 12, 2012, recommending receipt of 2011 Summary Drinking Water Reports from the
Cities of Kitchener and Waterloo, as well as, the Region of Waterloo's Annual Water Quality
Reports, in accordance with the Safe Drinking Water Act.
Mr. M. Ryan presented an overview of the City's Summary Drinking Water Report, advising
that the Ministry of Environment (MOE) found no evidence of non-compliance in the City's
system.
Councillor Y. Fernandes raised concerns with the levels of sodium found near wells in close
proximity to Strasburg Creek. She questioned how use of road salts could be mitigated around
these areas to reduce levels of sodium and was advised that only levels above 20mm are
required to be reported and the Region of Waterloo has not requested the City to take any
action. Mr. J. Willmer added that the levels of sodium reported today relate to applications of
road salt made decades ago and while the City is taking steps to reduce usage of road salt,
the levels of sodium being recorded will continue to rise for some time until the effects of age
old application practices diminish.
On motion by Councillor D. Glenn-Graham -
itwas resolved:
"That the 2011 City of Kitchener Summary Drinking Water Report be received for
information as required by O.Reg170/03 Schedule 22 of the Safe Drinking Water Act;
and,
That the 2011 City of Waterloo Drinking Water Summary Report be received for
information as required by O.Reg170/03 Schedule 22 of the Safe Drinking Water Act;
and,
That the six 2011 Region of Waterloo Annual Water Quality Reports (Strange St. Well
Supply System, Well K34, Mannheim Water Treatment Plant and Pumping Station,
Greenbrook Well Supply System, Woolners Well Supply and the Parkway Well Supply
System) be received for information as required by O.Reg170/03 Schedule 22 of the
Safe Drinking Water Act; and further,
That the City of Kitchener provide a copy of the Summary Drinking Water Report to the
Township of Woolwich as required by Schedule 22 of O.Reg.170/03."
COMMUNITY AND INFRASTRUCTURE SERVICES COMMITTEE
12. CAO-12-011 -UPDATE ON COMMUNITY ENGAGEMENT PROCESS
- LOCAL ENVIRONMENTAL ACTION FUND (LEAF) GRANT PROGRAM
FUNDING FOR PARK AND TRAIL CAPITAL PROJECTS
The Committee considered Chief Administrator's Office report CAO-12-011, dated February
27, 2012, concerning a process for community engagement regarding options for potential
reallocation of funds from the Local Environmental Action Fund (LEAF).
Councillor J. Gazzola inquired if Advisory Committees will be included in the community
engagement process and was advised that they will have opportunity for input into this matter
at an All Advisory Committee meeting to be held March 31, 2012.
Councillor Y. Fernandes inquired if members of Council will also be included in the
engagement process and was advised that those who sit as Council representatives on
Advisory Committees will have opportunity to give input at the All Advisory Committee meeting;
and all members of Council can attend any of the public open house meetings. Councillor K.
Galloway encouraged those members of Council attending the community engagement
functions to be cognizant that this is intended to be the public's opportunity to voice their
opinions in respect to this matter.
On motion by Councillor J. Gazzola -
itwas resolved:
"That Compass Kitchener lead the community engagement process regarding options
for the potential reallocation of Local Environmental Action Fund (LEAF) funding, as
generally outlined in Chief Administrator's Office report CAO-12-011, and report back to
Standing Committee of Council by September 10, 2012."
13. INS-12-005 - SCHNEIDER CREEK REMEDIATION
- ADDENDUM TO 1995 CLASS ENVIRONMENTAL ASSESSMENT (EA)
- HAYWARD AVENUE TO MANITOU DRIVE
The Committee considered Infrastructure Services Department report INS-12-005, dated
March 7, 2012, concerning an addendum to the Class Environmental Assessment (EA) for
remediation of Schneider Creek between Hayward Avenue and Manitou Drive, prepared by
AECOM and dated March 2012. The original EA was completed in 1995 with the goal to
address issues of flooding and erosion in the creek. The study identified three areas for
remediation known as Reach 1, Reach 2 and Reach 3 and while remediation alternatives were
identified they have never been implemented. The Grand River Conservation Authority
(GRCA) is a proponent to the addendum study.
Mr. Jeff Prince, AECOM, advised that the objective of the current study is to complete an
addendum to the 1995 EA by assessing existing conditions, evaluating the original preferred
alternatives and confirm, or recommend new preferred alternatives as required. Mr. Prince
advised that the original preferred alternatives for Reach 1 and Reach 3 remains the same. A
new preferred alternative for Reach 2 is proposed to improve culverts to a 25 year design
storm, construct a berm and gabion matting for additional flood protection, re-grading an
industrial site between culverts 1 and 2 and removal of the Balzer Road bridge. Mr. Prince
advised that next steps will include filing of the EA Addendum fora 30 day public review and
on completion, the project team will proceed with detailed design and construction of Reach 1,
and preliminary design of Reach 2 and Reach 3. Remediation of Reach 1 is anticipated to
commence in the fall of 2012.
Councillor J. Gazzola requested clarification of the delay in implementing the remediation and
whether there is room to delay further. Mr. S. Allen advised that the EA was completed around
the time when the GRCA lost funding for these types of projects and this project was not
included in the capital forecast in a timely manner. He noted that the issues of flooding and
erosion are getting worse and the longer the remediation is delayed the more costly the project
will become. Councillor Gazzola inquired if the GRCA is contributing financially to the
remediation and Mr. Allen advised that they were not; however, their staff is devoting time to
the project to provide expertise to help with the study. He added that the GRCA did at one
time contribute financially but reiterated that their funding was eliminated and responsibility for
COMMUNITY AND INFRASTRUCTURE SERVICES COMMITTEE
13. INS-12-005 - SCHNEIDER CREEK REMEDIATION
- ADDENDUM TO 1995 CLASS ENVIRONMENTAL ASSESSMENT (EA)
- HAYWARD AVENUE TO MANITOU DRIVE (CONT'D)
these types of projects was transferred to municipalities. Councillor Gazzola inquired where
the flooding of the creek stems from. Mr. Allen advised that Schneider Creek acts as a large
storm water system and much of the flooding occurs upstream as a result of substantial
development over the past 50 years. He stated that an unnatural response is occurring in the
creek from built up areas and in recognition of the impact of development, he noted that the
remediation project is to be cost shared with partial funding from development charges. Mr. G.
Murphy added that the Development Charges Study of 2008 included the proposed
remediation in the list of projects and provides fora 50/50 cost sharing between the Storm
Water Utility and Development Charge funds, which was approved by Council in early 2009.
Councillor Gazzola questioned if the funding split was to be reviewed. Mr. Murphy advised
that it was not intended but was something that could be looked at.
Councillor Gazzola inquired if the remediation work will affect residential areas or only
commercial sites. Mr. Prince advised that residential areas are not directly affected and from
public consultation, responses to the work have been favourable with most understanding the
need for the work to be done. Councillor Gazzola requested explanation of the change in
alignment of the Reach 3 channel. Mr. Prince advised that the re-aligned segment is actually
the ancestral channel pre-1970 and the channel currently used was put in place to straighten
the flow and open up surrounding land. He stated that re-establishing the ancestral channel
will provide more of a meandering natural spillway, improving flow energy for the protection of
vulnerable infrastructure; and will also encourage rebirth of aquatic habitats within the
realigned channel.
Councillor Z. Janecki inquired as to the impact of the proposed extension of Block Line Road.
Mr. Prince advised that this study has taken the road extension into consideration and the
study team is working with the Block Line team to ensure a co-ordinated end product.
Councillor Janecki also inquired as to the impact of the Region of Waterloo's proposed
widening of Manitou Drive. Mr. Prince advised that the Region is part of the circulation for this
project and is simultaneously undergoing a study for the widening of Manitou Drive. He noted
that implementation of Reach 3 is not anticipated to take place until 2014, at which time there
will be opportunity to review the Region's assessment of Manitou Drive and to work with them
to co-ordinate the widening with remediation of Reach 3.
Councillor Y. Fernandes raised concerns in regard to the change in criteria from a 100 year
storm design to a 25 year design. Mr. Prince advised that in Reach 1 and Reach 3 a 100 year
design would not have impact to anything except the railway line. He stated that there is
limited opportunity to do a 100 year design in those areas and pointed out that the issue there
is primarily related to erosion rather than flooding. Mr. Prince advised that the 100 year storm
design really comes into play only in Reach 2 because of issues with the rail line; however,
opportunity to do a 100 year design in this area has been severely limited by the expansion
and use of the lands owned by Triple M Metals. He added that in light of the company's
reduced use of the rail line and the fact that it would be flooded even at a 25 year storm, it was
determined reasonable to hold this stretch to the same 25 year storm design.
Councillor Fernandes inquired if the cost to purchase lands required for the remediation project
is included in the project estimates. Mr. Allen advised that is not necessarily the case, noting
that cost estimates at this time are based on preliminary design concepts and will be refined
over time as detailed designs are completed. Councillor Fernandes inquired as to the impact
of the Trans Canada Trail widening. Mr. S. Allen reiterated that the Manitou Drive EA is
currently underway and will be completed nearing the final phase of this remediation project.
He stated that when the Manitou Drive EA is completed steps will be taken to incorporate the
impacts into implementation plans for Reach 3.
On motion by Councillor J. Gazzola -
itwas resolved:
COMMUNITY AND INFRASTRUCTURE SERVICES COMMITTEE
13. INS-12-005 - SCHNEIDER CREEK REMEDIATION
- ADDENDUM TO 1995 CLASS ENVIRONMENTAL ASSESSMENT (EA)
- HAYWARD AVENUE TO MANITOU DRIVE (CONT'D)
"That the Schneider Creek Remediation -Class Environmental Assessment Addendum
report prepared by AECOM, dated March 2012, be received; and further,
That a Notice of Filing of an Addendum for Review be issued and the Schneider Creek
Remediation Class Environmental Assessment Addendum report be placed on the
public record for 30 calendar days, in accordance with the requirements of the Class
Environmental Assessment for Remedial Flood and Erosion Control Projects."
14. CSD-12-045 -GOLF OPERATIONS REVIEW
The Committee considered Community Services Department report CSD-12-045, dated March
15, 2012, recommending the continued operation of the City's golf courses using a blended
model as well as a transfer of dividends paid by the golf courses to the tax base in excess of
the City's minimum requirements, amounting to $1 M, from the Tax Stabilization Reserve Fund
(TSRF) to the Golf Stabilization Reserve Fund.
Mr. Bill Brown, Seniors Golf League at Rockway Golf Course addressed the Committee in
overall support of the National Golf Foundation (NGF) operational review and subsequent
public consultation process. He advised that the NGF study indicates there is no clear vision
as to what the City wants from its golf facilities, with many decisions being based on
profitability. He suggested a collaborative process should be undertaken to develop a broader,
higher vision for the City's golf courses. He stated that while improvements could be made,
the current blended /hybrid management model is preferable to the proposed external
management models. He expressed support for using a Net Operating Income approach to
measure the financial performance of the golf courses, with a provision for the creation of a
capital reserve fund. He noted that the Seniors Golf League supports the golf courses' current
management staff and their demonstrated diligence to work on behalf of the City's golf
community.
At the request of Councillor D. Glenn-Graham, Mr. Brown agreed to circulate copies of his
speaking notes to the Committee.
Mr. Fred Dienesch addressed the Committee in support of the findings expressed in the NGF
operational review, noting he has been a member of Rockway Golf Course for over 50 years.
He commented the City has always done a great job in maintaining both golf courses and
thanked staff for undertaking the public consultation on the NGF study.
Ms. K. Kugler presented an overview of the City's existing golf operations and the NGF study,
outlining the three main operating models with two additional variations that could be utilized to
operate the City's golf courses. She advised that since the early 1990s, the City's golf courses
have managed to generate revenues that exceeded operating expenses, paid annual capital
programs, and provide a sizeable dividend transfer to the City's tax base. She stated since
2008 there has been a decline in performance, which is a trend experienced across most
North American golf courses. She added that in 2011, operational changes improved the
financial position of the golf operations, providing Kitchener Golf with a system of achieving
long-term economic stability. She indicated these changes included: leasing out food and
beverage as well as the golf academy; streamlining administration; reducing fees;
implementing cart memberships; and, making full memberships available. She advised NGF
identified that based on the current deficit level the golf courses do not have the ability to
undertake any significant capital improvements. In addition, no further cuts can be made to
expenses without negatively affecting course conditions. Ms. Kugler indicated that staff are
recommending that the City continue to operate golf through a blended model with a focus on
monitoring and improving the financial position and customer experience.
Councillor Glenn-Graham praised staff on the work undertaken to solicit feedback on NGF's
findings and the proposed operating models. He suggested that the golf courses should
conduct a survey every season to gauge public opinion on the City's golf operations.
COMMUNITY AND INFRASTRUCTURE SERVICES COMMITTEE
MARCH 19. 2012 - 29 -
14. CSD-12-045 -GOLF OPERATIONS REVIEW (CONT'D
In response to questions, Ms. Kugler indicated that based on the calculated debt re-payment
schedule, if the proposed $1 M transfer is approved, the debt could be realistically retired by
2034. She added that should the transfer not be supported, it is unlikely that the debt could be
eliminated within a reasonable timeline. She advised that a number of private sector golf
courses have successfully lobbied to have their assessment costs reduced. Ms. Kugler
responded further that staff are examining methods to enable people to book their tee time's
online. She noted streamlining administration now allows centralized staff to oversee the
bookings for both courses. She commented this way if a requested tee time is unavailable at
one course, staff can potentially book an alternative tee time at the other course. She
indicated staff continue to also monitor the issue of "slow play" and are trying to determine a
balance between tournament and recreational players. She added that work is progressing on
improving the reputation of the Doon Valley Golf Course, adding that it takes time to
understand the level of course maintenance which will allow for optimal playing conditions.
Questions were raised regarding the dividend policy negotiated with golf industry stakeholders.
Mr. D. Chapman advised that the "level playing field agreement" requires a dividend equivalent
to the notional value of property and income taxes be paid to the City annually. He noted this
should have equated to an annual dividend of approximately $130,000. However, over the
past 15 years, dividends totalling $3.7M have been paid by the golf courses to the tax base;
which exceeded the required base dividend by approximately $1 M. He added that in
hindsight, it would have been advisable for golf to retain these excess profits to build a
stabilization fund to provide a cushion against a downturn in demand.
Mayor C. Zehr commended staff on the measures that were implemented to enable the golf
courses to improve their overall financial position. He suggested that over the next year,
Kitchener Golf should focus on developing a vision of where it wants to be in 5, 10, and 15
years, adding this could potentially assist in providing direction for paying down its debt.
At the request of Councillor J. Gazzola, Ms. Kugler agreed to circulate copies of her
presentation to the Committee.
On motion by Councillor D. Glenn-Graham, the staff recommendation contained in Report
CSD-12-045 was brought forward for consideration.
A motion was brought forward by Councillor Y. Fernandes to amend Clause 2 of the staff
recommendation to reduce the amount of the transfer from the TSRF to the Golf Stabilization
Reserve Fund from $1 M to $500,000.
In response to questions, Mr. Chapman stated that golf currently has an accumulated deficit
balance of $1.75M which would be effectively reduced by $1M through the proposed transfer.
He advised that reducing the transfer amount would likely result in a debt retirement date,
which would not provide the enterprise with a reasonable timeframe to return to a position of
financial viability. He pointed out that due to the "level playing field agreement", the City would
not be permitted to undertake any transfers in the future to help off-set costs related to capital
improvements at the golf courses. He estimated the golf operation's annual debt and deficit
carrying cost at approximately $50,000. He confirmed the dividend requirements of the "level
playing field agreement" apply in perpetuity, noting it was entered into as part of the withdrawal
of the Ontario Municipal Board (OMB) appeal to the Doon Valley Golf Course expansion.
Councillor Gazzola advised that while he has no concerns with Clause 1 of the staff
recommendation, he is opposed to any transfer from the TSRF to the Golf Stabilization
Reserve Fund. He indicated that he would prefer to see Kitchener Golf develop along-term
vision prior to undertaking any transfers out of the TSRF.
Mayor Zehr commented that it is unreasonable to expect that golf's accumulated deficit could
be eliminated within a reasonable timeframe without the proposed $1 M transfer. He added
over the past several years, most of the available profits were extracted from the golf operation
for the benefit of reducing the tax rate. He noted that the proposed transfer is not a subsidy
from the tax base to the golf courses; rather, it adjusts the historic dividend to reflect the
original requirements of the "level playing field agreement."
COMMUNITY AND INFRASTRUCTURE SERVICES COMMITTEE
14. CSD-12-045 -GOLF OPERATIONS REVIEW (CONT'D)
Councillor Fernandes' amendment was voted on and LOST on a recorded vote with
Councillors Y. Fernandes and B. loannidis voting in favour; and, Mayor C. Zehr and
Councillors S. Davey, P. Singh, Z. Janecki, J. Gazzola, D. Glenn-Graham and K. Galloway
voting in opposition. Councillors F. Etherington and B. Vrbanovic were absent from this
meeting.
The following motion was voted on clause by clause, with Clause 1 being Carried
Unanimously by all members present; and Clause 2 being Carried on a recorded vote with
Mayor C. Zehr and Councillors S. Davey, P. Singh, Z. Janecki, D. Glenn-Graham, K. Galloway
and B. loannidis voting in favour; and, Councillors Y. Fernandes and J. Gazzola voting in
opposition. Councillors F. Etherington and B. Vrbanovic were absent from this meeting.
On motion by Councillor D. Glenn-Graham -
itwas resolved:
"That staff be directed to continue to operate the golf courses using a blended model
which includes self operation of the course maintenance and administration, a
management contract for the pro and pro shop, and a concession lease for the golf
academy and food & beverage functions; and further,
That dividends paid by the golf courses to the tax base in excess of the City's minimum
requirements (amounting to $1 million) be transferred from the Tax Stabilization
Reserve Fund to the Golf Stabilization Reserve Fund to reduce the accumulated deficit
in golf."
15. ADJOURNMENT
On motion, the meeting adjourned at 6:27 p. m.
Colin Goodeve Janet Billett, AMCT
Committee Administrator Committee Administrator