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HomeMy WebLinkAbout2012-11-26FINANCE AND CORPORATE SERVICES COMMITTEE NOVEMBER 26, 2012 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 10:35 a.m. Present: Councillor S. Davey - Chair Mayor C. Zehr and Councillors J. Gazzola, B. Vrbanovic, Y. Fernandes, P. Singh, B. Ioannidis, Z. Janecki, F. Etherington and D. Glenn-Graham. Councillor K. Galloway- Sealock entered the meeting shortly after its commencement. Staff: J. Willmer, Chief Administrative Officer D. Chapman, Deputy CAO, Finance & Corporate Services M. May, Deputy CAO, Community Services J. Witmer, Acting Deputy CAO, Infrastructure Services R. Regier, Executive Director, Economic Development L. Johnston, Director, Communications and Marketing R. Hagey, Director, Financial Planning L. Palubeski, Manager, Programs & Resource Services R. Morgan, Capital Investment Advisor A. Italiano, Senior Financial Analyst B. Steiner, Senior Environmental Planner J. Billett, Committee Administrator FCS-12-190 - LIQUOR LICENCE REVIEW APPLICATION - TREME - 15 SCOTT STREET 1. The Committee considered Finance and Corporate Services Department report FCS-12-190, dated November 14, 2012, regarding an application for liquor licence for Treme at 15 Scott Street. On motion by Councillor D. Glenn-Graham - it was 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 licence for Treme located at 15 Scott Street, applied for by 8270708 Canada Inc. (herein referred to as the “Applicant”); and further, That the Mayor and Clerk be authorized to enter into an agreement with the applicant should they be willing wherein the applicant agrees to abide by the following conditions and to request they be added to their 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 Establishment Code of Conduct; 2. to become an active member of the Downtown Kitchener Business Improvement Area’s License and Entertainment Committee and attend its meetings; 3. to abide by a set 60% monthly ratio of alcohol sales to gross refreshment sales (including food and other sundries), in other words alcohol sales will be limited to 60% of gross refreshment sales; 4. 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 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).” FINANCE AND CORPORATE SERVICES COMMITTEE NOVEMBER 26, 2012 - 173 - CITY OF KITCHENER CAO-12-048 - LEASE FOR CITY HALL RETAIL SPACE 2. The Committee considered Chief Administrator’s Office report CAO-12-048, dated November 6, 2012, regarding a lease agreement for retail space at City Hall. It was noted in the agenda that any recommendation from the Committee regarding this matter will be considered at a special Council meeting to be held later this same date. Councillor B. Ioannidis declared a pecuniary interest and abstained from all discussion and voting concerning this matter as he owns property in the subject area. Councillor F. Etherington questioned if staff is assisting the other potential tenant in finding a suitable location for their business and was advised that Economic Development staff is actively working with the business owner to find an appropriate location. Councillor J. Gazzola expressed preference to lease the space to the Frozen Yogurt Shoppe instead of the preferred tenant, as it was his opinion the yogurt business would offer more animation for the public square. Carried, The following motion was voted on by a recorded vote and with Mayor C. Zehr and Councillors D. Glenn-Graham, Z. Janecki, Y. Fernandes, B. Vrbanovic, F. Etherington, P. Singh and S. Davey voting in favour; and Councillor J. Gazzola voting in opposition. Councillor K. Galloway-Sealock was not present at time of the vote and Councillor B. Ioannidis previously declared a pecuniary interest in this matter and did not vote as he owns property in the subject area. On motion by Councillor D. Glenn-Graham - it was resolved: “That the Mayor and Clerk be authorized to enter into a lease agreement with the preferred prospective tenant for the City Hall Retail Space, located at 220 King Street West (ground floor retail unit in City Hall), subject to the satisfaction of the City Solicitor; and further, That if staff are unable to come to an agreement on a lease with the preferred prospective tenant, the Mayor and Clerk be authorized to enter into a lease agreement with the second prospective tenant.” FCS-12-187 - ALLOCATION OF REMAINING LOCAL ENVIRONMENTAL ACTION FUND 3. (LEAF) FUNDS The Committee considered Finance and Corporate Services Department report FCS-12-187, dated November 19, 2012, which provides a summary of the LEAF program evolution (2007 to present), Council’s input on how the balance of funds should be used and information on anticipated revenues from the Kitchener Operations Facility (KOF) solar roof. Councillor K. Galloway-Sealock entered the meeting at this time. Mr. D. Chapman advised that LEAF was established as a Reserve Fund in 2007-2008 for environmental initiatives with a starting balance of $5M. A variety of grant applications have been approved over its tenure and the projected balance at end of 2012 is estimated at $2.3M. Mr. Chapman advised that the amount of funding available in 2013 will range from approximately $2.3M to $3.59M, based on the potential for return of unspent funds for projects that are not proceeding, unspent funds returned due to lack of uptake on the Kitchener Green Housing (KGH) Program and revenues available once the loan is repaid for the Kitchener Operations Facility (KOF) solar roof. It was noted that Compass Kitchener had been requested to undertake public consultation on use of remaining LEAF funds and have recommended $2M be allocated to development of new and/or enhancement of designated natural areas and $1M to the Environmental Stewardship Capital Account for grants under the Community Environmental Improvement Grants (CEIG). A summary of Council ranking of potential projects to benefit from uncommitted LEAF funds indicates Multi-Use Pathways and Trails are the top priority of Council followed by the Emerald Ash Borer (EAB), and Huron FINANCE AND CORPORATE SERVICES COMMITTEE NOVEMBER 26, 2012 - 174 - CITY OF KITCHENER FCS-12-187 - ALLOCATION OF REMAINING LOCAL ENVIRONMENTAL ACTION FUND 3. (LEAF) FUNDS (CONT’D) Natural Area (HNA) / other Natural Areas. Mr. Chapman advised that Council may want to split funds across multiple projects and provided illustration of the impact of the first 3 priorities as follows: allocating all LEAF funds to trails would fully fund the program over the next 5 to 6 years; allocating all funds to the EAB would cover half the amount required for stumping and replanting; and the HNA plan would be fully funded over the next 10 years. Mr. Chapman provided information concerning the KOF solar roof, advising that this was a $4M project undertaken as part of the Federal Infrastructure Stimulus Funding Program and the associated loan is being repaid to LEAF through revenues generated by the solar roof. He advised that half of the loan will be repaid by the end of 2012, with the remaining balance on the loan to be repaid over the next 3 years following which revenues of approximately $300,000 to $400,000 will continue to be received annually by the City. He pointed out that the City has a 20 year contract with the Ontario Power Authority (OPA) under the Feed-in-Tariff (FIT) Program and at tenure of the contract it is unclear if the program will still exist and/or if rates under the program will be reduced. As well, the solar panels may be at the end of their lifespan after 20 years. Mr. Chapman advised that the revenues generated from the solar roof are returned to the LEAF reserve which is considered appropriate for a non-sustainable source of revenue and provides that the funds will be available to fund one-time projects and/or eventual replacement of the panels at end of their lifespan. Mr. Chapman advised that Council is being requested this date to consider if the normal call for grant applications should go forward if LEAF funds remain available; continue the suspension further; or terminate the program effective immediately. In response to Councillor Z. Janecki, Mr. Chapman advised that the City’s solar roof revenues are not declining as a result of reduced FIT rates as it has a fixed 20 year contract with OPA; however, when the contract is eligible for renewal in 20 years it is unclear if a program will still exist and/or if rates will be lower. Councillor Janecki inquired as to what actions would be taken when the solar roof reaches the end of its lifecycle. Mr. Chapman advised that the City could replace the roof if no life is left, refurbish the panels if feasible or remove the roof entirely. Councillor J. Gazzola advised that he would like to receive an explanation of major projects completed under the LEAF program and what was achieved as a result. Councillor Gazzola inquired as to the amount of savings received from the solar roof and Mr. Chapman advised that once the loan is fully repaid the City will continue to receive approximately $300,000 to $400,000 annually. He added that revenues generated at this time are going back into the LEAF reserve to repay the loan. Councillor Gazzola requested clarification of the funds attributed to the KGH program. Mr. Chapman advised that the program was geared toward encouraging built forms to LEED standards; however, the program did not generate as much interest as initially anticipated and the dollars remaining could be made available for other projects at the end of 2012 when the 3 year commitment to the program concludes. Councillor P. Singh questioned that given the status of the TIF program is unknown in 20 years, if the 20 year contract is longer than normal to consider. Mr. Chapman acknowledged that the contract duration goes beyond what is typical for the operating budget. Councillor Singh questioned that once the solar roof loan is repaid if the intent is to continue to contribute the revenue generated into the reserve. Mr. Chapman advised that no decision has yet been made in this regard but is likely to be what staff will recommend. Councillor Singh questioned if the revenues could be used to off-set the tax supported operating budget. Mr. Chapman advised that this could not be done through the reserve but rather revenues would have to be directly applied to the operating budget. Mayor C. Zehr questioned if the LEAF balance would be at the lower range of $2.3M if solar roof revenues do not continue to be contributed to the reserve until the debt is retired. Mr. Chapman advised that it would be $2.3M plus approximately $520,000 in unspent funding. Mayor Zehr questioned then if essentially non-repayment of the loan to the reserve would have the same net effect to the tax levy and Mr. Chapman advised that would be correct. FINANCE AND CORPORATE SERVICES COMMITTEE NOVEMBER 26, 2012 - 175 - CITY OF KITCHENER FCS-12-187 - ALLOCATION OF REMAINING LOCAL ENVIRONMENTAL ACTION FUND 3. (LEAF) FUNDS (CONT’D) Councillor B. Vrbanovic referred to the KGH program, questioning if any discussions have been held with the Homebuilders Association and/or others involved in the program as to why take-up has been limited, questioning if it may be attributed to a slow down in the housing market and how it might be improved to generate more interest. Mr. J. Willmer advised that Building staff have facilitated this program and do not have a sense that limited interest is due to economic slow down. He stated that while some builders were sold on the premise others did not see the value, which is thought to be based on economics in respect to the gap between remediation costs and complete cost recovery. Mr. Willmer stated that staff is of the opinion they have reached all that they can with this program. Councillor Y. Fernandes referred to the EAB project, questioning if removal of trees is normally a responsibility of Operations. Mr. Chapman acknowledged that this is the case; however, he pointed out that the EAB epidemic is having an impact in loss of trees not seen in many years and Operations has no ability to address the problem within existing resources. He stated that this is a transformative problem that requires a transformational solution. Councillor Fernandes referred to the Region’s practice of allowing those in the lumber industry to go in and remove trees in natural areas and pay the value of those trees back to the Region, questioning if consideration has been given to similar practice in respect to removal of affected ash trees. Mr. J. Witmer commented that it may be possible to reduce expenses garnered from similar practice but he did not have a definitive answer at this time. He noted that the value of trees is dependent on size and in respect to the ash trees, affected sections of the trees have to be cut out reducing the amount of usable lumber. He stated that the associated costs will be better identified once results of the tendering process are known. Councillor Fernandes raised similar concerns in not having information on the outcomes of projects that have received LEAF funding. Ms. B. Steiner advised that as a requirement under the grant program, those receiving funding were required to prepare a final report which was done. She noted that an update was presented to the previous Council in September 2010 and offered to upload the final reports from grant recipients to the City’s website, if desired. Councillor J. Gazzola commented that in the past he had great interest in obtaining Hidden Valley lands and there was a lot of interest from the public. He stated that when LEAF funds were previously discussed he had hoped an allocation of a sizable amount would go towards the project and when LEAF was first established citizens were interested in having monies set aside because it fit all criteria. He commented that in trying to get funds set aside he was not advocating negotiating in public but rather he wanted funds set aside so when and if opportunity arose funds would be available. He added that it would give indication to the public that the City is supportive of the initiative and may also generate donations from the public and/or leverage other government funding. He acknowledged that assurances of Council have been given of interest in saving Hidden Valley lands and that it is going to happen but now is not the time, and he accepts that. A motion by Councillor J. Gazzola was brought forward for consideration to provide that the LEAF grant program be terminated effective immediately; any remaining balance of funds available in LEAF be transferred to the tax supported operating budget for use in reducing future debt; and future revenues from the KOF solar roof be transferred to the tax supported operating budget. Councillor Gazzola expressed the view a decision on terminating the grant program must happen first so the funding becomes available for other use. He acknowledged the intent of the program was good but the uptake on the funds was not great, with the majority of recipients coming from school programs which could be handled under the CEIG grants. Councillor Gazzola suggested that the number one priority for the City at this time should be to address debt. He stated that monies have already been spent on most projects listed in the ranking and can be further addressed over time. He acknowledged that the City has failed to put money into trails but suggested that monies from the Federal Gas Tax revenue could be properly allocated to trails, expressing the view that trails are another form of transportation. Councillor P. Singh agreed that solar roof revenues should be diverted to the tax supported operating budget to offset deficits or reduce the impact of challenges in the coming year. He FINANCE AND CORPORATE SERVICES COMMITTEE NOVEMBER 26, 2012 - 176 - CITY OF KITCHENER FCS-12-187 - ALLOCATION OF REMAINING LOCAL ENVIRONMENTAL ACTION FUND 3. (LEAF) FUNDS (CONT’D) noted that staff have worked diligently to reduce the original tax levy estimate from 5.87% to 2.87% and more is still to be done under Council’s direction to provide another 1% in reductions that will require decisions to be made that could have substantial impact on services. He supported diversion of solar roof revenues to offset the tax base as it could mean no impact to service levels and expressed the view that LEAF has lived up to its environmental initiatives in facilitating installation of the largest solar roof in the Province. Councillor B. Vrbanovic expressed disappointment that there was not more up take from the community, suggesting that the program should be reviewed to determine if in future it might be done differently. He noted that Compass Kitchener had recommended an allocation of $1M to allow partial continuance of grant applications through the CEIG program and with a number of initiatives of priority to the community focus should be on those within the limited dollars of the program. He expressed support for diverting future solar roof revenues to the tax supported operating budget but did not support use of the remaining balance of LEAF funding to reduce future debt. He stated that he was not surprised at the suggestion to take dollars out of the Economic Development Investment Fund (EDIF) by not having to borrow in 2013; however, he pointed out that when EDIF was implemented there was a comprehensive discussion with the community and it was established as a 10 year program, with explanation as to how the funds would be allocated and what the investment would be. He added that the investment is being repaid at the lowest interest rates seen in history and expressed the view that if ever there was a time to make investments it is now, suggesting that it is important to look at the value of investments rather than just the cost. Councillor Vrbanovic advised that if the latter motion failed, he would like to bring forward a motion to provide that $2M of the remaining LEAF fund balance go toward Community Trails as this is a priority for the community, as well as Council and will give clear indication Council takes the Parks and Trails Master Plan seriously. He proposed that the remaining funds of approximately $800,000 go toward the EAB project, commenting that trails without trees will hold little value to the community; and although a difficult decision, a plan is necessary to replace lost trees and this amount will only cover a small portion of what is needed. Councillor B. Ioannidis supported termination of LEAF subject to follow-up on programs, such as Solar City, as he did not want to see such programs loose momentum. Mr. Chapman advised that funds allocated to existing projects will be held and the projects not impacted by termination. Councillor Ioannidis advised that he would like to leave room for projects like Solar City to expand if desired and would also like to see more allocated to the EAB, suggesting the recommended $1.1M be applied. He added that he was not comfortable with the full extent of solar roof revenues going to the tax levy, suggesting that only a percentage be allocated and some monies still be contributed to the reserve to fund economic development through promotional initiatives such as LEED growth building, in the same spirit as LEAF. Councillor Z. Janecki agreed with termination of LEAF and supported use of the remaining balance of LEAF funds to reduce future debt, noting that the public consultation completed by Compass Kitchener did not provide option to use remaining LEAF funds toward debt. He stated that EDIF is at its peak but will not be paid out until 2028 and with the City at is largest debt capacity, the time to address the debt is now. Councillor D. Glenn-Graham supported termination of LEAF but asked the City to remain open to considering visionary projects. He supported using the remaining balance of LEAF funds to reduce debt, commenting that it is difficult to determine among the priorities listed as to where the funding should go. He noted that the allocation suggested for the EAB is in addition to funding already identified from the Gas Investment Reserve Fund but agreed there is a need for replanting. He further suggested that the recommended allocations be reduced by the 2 amounts allotted to the Walter Bean Trail and community trails, as these received funding in 2012. Councillor Y. Fernandes supported termination of LEAF, agreeing the program was well intentioned yet project grant recipients are of a nature that could have been handled under the CEIG. She suggested that funding needs to be set aside for Hidden Valley lands under the umbrella of new / enhanced designated natural areas. She stated that although she would trust FINANCE AND CORPORATE SERVICES COMMITTEE NOVEMBER 26, 2012 - 177 - CITY OF KITCHENER FCS-12-187 - ALLOCATION OF REMAINING LOCAL ENVIRONMENTAL ACTION FUND 3. (LEAF) FUNDS (CONT’D) when the time is right Council will move to preserve Hidden Valley lands she was of the view that setting aside $500,000 to $1M would be a good way to leverage other funding for future purchase of the lands. She referred to the priority of spending on community trails and natural areas, expressing concerns in respect to spending money on removal of trees affected by the EAB when there may be other methods, such as the logging industry example. She supported diversion of future solar roof revenues to the tax supported operating budget as a sustainable source of revenue over the 20 year contract. Councillor Fernandes also supported funding community trails but expressed the desire to do so through development of partnerships to reduce costs, as well as, through leveraging other funding sources. She stated that she struggles with the idea of using the remaining LEAF funds to reduce the debt, noting that LEAF was established to address environmental initiatives and consultative results indicating a priority for natural areas should not be ignored. Councillor Fernandes questioned that, if Councillor Vrbanovic’s proposed motion goes forward, if there would be interest in including a natural area component under the $2M he proposes to allocate to Community Trails. In respect to the $800,000 proposed for the EAB she expressed preference to reduce the allocation to $300,000 and allocate the other $500,000 toward future purchase of Hidden Valley lands. Councillor K. Galloway-Sealock questioned that if the fund is discontinued could the remaining balance of funds be transferred into the Tax Stabilization Reserve Fund (TSRF) and Mr. Chapman advised this could be done. Councillor Galloway-Sealock suggested that consideration as to how to spend the remaining balance should not be done now but rather the funds transferred to the TSRF and at the appropriate time, decisions be made on an individual basis in the context of the overall budget. In regard to the solar roof revenues, she noted that no revenues are available at this time as they are going back into the reserve to pay down the loan until 2016. She stated that this Council should not mandate where future solar roof revenues will go, suggesting this is for the Council of the day to decide. Councillor Galloway- Sealock added that she could support any one of the projects on the list and while her preference may be to fund the Huron Natural Area, all priorities should be looked at in a comprehensive manner. She advised that she supports termination of LEAF but would like decisions on how the remaining balance is to be used deferred to final budget day. Mayor C. Zehr commented that he had great expectations when LEAF was originally established; however, time and circumstances have changed including a better understanding of costs that are prohibitive such as those required for the EAB. He agreed that LEAF should be terminated and reiterated earlier comments he has made in that, the consultation conducted by Compass Kitchener was intended to be a guide and ultimately, the decision on how the remaining balance would be used would rest with Council within the larger context of the overall budget. He stated that reference to using gas tax revenue for trails while it could be done would necessitate finding other funding sources for those items currently funded by the gas tax revenue. In respect to Hidden Valley lands, Mayor Zehr commented that he remains in favour of protecting those lands from development but is a discussion for another day. He advised that he could not support using the balance of LEAF funding to reduce debt, expressing the view it would be in bad faith as it is inconsistent with sourcing of LEAF toward environmental initiatives. He added that the allocations proposed all go to projects that are in keeping with the premise of the environmental fund. Mayor Zehr agreed that it is difficult to conclude on specific amounts at this time, suggesting that the Committee could attempt to narrow the focus and/or decide on a range. He suggested that at this time it is premature to decide on final allocations without more information in respect to what can be done physically and over what timeframe. Mayor Zehr questioned that if the solar roof revenues are diverted to the tax supported operating budget and they run out or are reduced in future, if this would then equate to an automatic increase in the tax levy. Mr. Chapman advised that was correct but would not happen until the end of the contract in 2030. Mayor Zehr advised that he could support transfer of remaining LEAF funds to the tax supported operating budget provided it is used for environmental initiatives so the kind of issues that need funding commitments such as trails and the EAB are not ignored and for which there would be funds if the solar roof revenues were put into the reserve. He added that he could not support putting the remaining balance of FINANCE AND CORPORATE SERVICES COMMITTEE NOVEMBER 26, 2012 - 178 - CITY OF KITCHENER FCS-12-187 - ALLOCATION OF REMAINING LOCAL ENVIRONMENTAL ACTION FUND 3. (LEAF) FUNDS (CONT’D) LEAF funds into the TSRF at this time without having some rationale provided and given the potential that in doing so, decisions on use of the funds may not keep faith with the environmental fund. He also noted that the TSRF is difficult to replenish and placing these funds there will push out timing for non-reliance on the reserve. Mayor Zehr advised that if a subsequent motion is brought forward he would like to see additional information provided on project timelines and direction given as to what areas of focus are preferred. Councillor F. Etherington agreed with terminating LEAF but advised he would not support diverting the remaining balance of LEAF funds to reduce the debt. He did support diverting future solar roof revenues to apply to the tax supported operating budget and would support the $2M allocation proposed by Councillor Vrbanovic for community trails provided natural areas are included, as well as, other projects like Victoria Park. He stated that existing investments need to be protected, noting that substantial investment has been made in improving Victoria Park Lake and more work is required to complete improvements upstream to maintain the existing investment. He advised that he could support the remainder going to the EAB as quick action is needed to protect the City’s tree canopy and nothing could be more appropriate in retaining the essence of LEAF. Councillor P. Singh commented that he could see some wisdom in not deciding allocations this date given the limited amount of funds remaining to be divided among the list of priorities specified. He noted that the TSRF has been frequently used to off-set the tax base and is why it is reaching a deficit position and placing these funds in that reserve will automatically deplete it once again. Mr. Chapman advised that roughly $1M per year has been transferred to the tax supported operating budget and the reserve is expected to be depleted in 2013. He stated that if no action is taken to replenish the reserve at that time it will have impact to the tax levy in 2014. Mr. Chapman advised that transfer of the remaining LEAF funds to the TSRF will not automatically put the reserve in deficit but rather will prop it up for a time. Councillor Singh commented that monies are required in a number of areas that are not affordable now and while using the remaining LEAF funds to pay down debt may look good, he questioned in one years time where the monies will come from if not prioritized now. He suggested that direction should be given to fund community trails to take advantage of the opportunity presented given they are not correctly funded now and this provides opportunity to live up to the Parks and Trails Master Plan. Councillor Singh suggested that $1.1M should be allocated to Community Trails, followed by $400,000 for McLennan Park, $200,000 for Victoria Park Strategic Plan Phase 2, $400,000 for the Huron Natural Area and $800,000 for the EAB. Councillor J. Gazzola clarified that his intent is not to deal with EDIF but rather to use the funds to reduce future debentures. He commented that there is not much difference in the suggestion to transfer the funds to the TSRF than his proposal to reduce future debt; adding that what he is saying at this time is that this is not the time for saving but rather it is time to pay for future debt. Councillor Gazzola advised that he would like the word “reluctant” added to his motion in respect to terminating LEAF as all have expressed similar sediment. Councillor K. Galloway-Sealock questioned if there is discretion to divert solar roof revenues now or if all must go back into the reserve toward repayment of the loan. Mr. Chapman advised that the revenue stream is currently going back into the reserve to pay down the loan; however, it could be used to fund other sources. Councillor S. Davey agreed with termination of LEAF as it has not met what was intended. In regard to use of solar roof revenues, he commented that it is appropriate that a portion is used to pay for the solar roof but he had no difficulty in diverting some funds to the tax supported operating budget. He noted little consensus in respect to using remaining LEAF funds to reduce debt, commenting that while a valid suggestion it is distasteful in that those funds have been earmarked for environmental initiatives. He advised that he could support some being used to reduce debt but not all. Councillor Gazzola’s motion to provide that the LEAF grant program be terminated effective immediately; any remaining balance of funds available in LEAF be transferred to the tax supported operating budget for use in reducing future debt; and future revenues from the KOF FINANCE AND CORPORATE SERVICES COMMITTEE NOVEMBER 26, 2012 - 179 - CITY OF KITCHENER FCS-12-187 - ALLOCATION OF REMAINING LOCAL ENVIRONMENTAL ACTION FUND 3. (LEAF) FUNDS (CONT’D) solar roof be transferred to the tax supported operating budget; was then voted on in three Carried Unanimously; separate parts, by recorded votes, as follows: Paragraphs 1 and 3 - Lost, Paragraph 2 - with Councillors J. Gazzola and Z. Janecki voting in favour, and Mayor C. Zehr and Councillors D. Glenn-Graham, B. Ioannidis, Y. Fernandes, K. Galloway-Sealock, S. Davey, B. Vrbanovic, F. Etherington and P. Singh voting in opposition. On motion by Councillor J. Gazzola - it was resolved: “That the Local Environmental Action Fund (LEAF) grant program reluctantly be terminated effective immediately; and further, That future revenues generated from use of the Kitchener Operations Facility (KOF) solar roof be transferred to the tax supported operating budget.” A motion by Councillor B. Vrbanovic was then brought forward for consideration to provide that $2M be allocated to Community Trails and $820,000 be allocated to the EAB; and staff be directed to report back on what implementation would like, including options for a different division of the $2M based on comments made by Council this date concerning other areas of interest such as inclusion of natural areas; and all be deferred for consideration to final budget day. Councillor Vrbanovic stated that his motion is based on trying to do several things as well as possible versus accomplishing little on a lot of things. He commented that community trails are valuable to all and are a priority to the City as well as citizens. He added that currently there is a deficit of $5.5M in ability to implement the Parks and Trails Master Plan and the amount he has suggested be allocated only provides for approximately 38% of what is actually needed in this area. Councillor Vrbanovic further noted that he has suggested that options be provided in respect to division of the $2M in light of what he has heard in respect to preferences of other members. Councillor Y. Fernandes advised that she had difficulty in deferring a decision again, noting that this has been ongoing for a year and there is already much to discuss on final budget day. She expressed the view that if the remaining funds are put in a pool and a little drawn here and there it would not be sustainable and rather consideration of a sustainable approach over the next 10 years is needed. She stated that if the remaining LEAF funds are allocated this date then Council will know where it stands on final budget day and be in position to determine where to make reductions. Mayor C. Zehr commented that the areas of focus have been narrowed and the report will provide information on timing of implementation which may indicate not all can be accomplished in 2013-2014. He suggested that with this information in hand, the matter could be dealt with expeditiously on final budget day. Councillor Singh also agreed that it is appropriate to allow staff to comment on what is proposed and to reflect on priorities in respect to division of the limited funds available. Carried The following motion was voted on by a recorded vote and , with Mayor C. Zehr and Councillors J. Gazzola, D. Glenn-Graham, B. Ioannidis, S. Davey, B. Vrbanovic, F. Etherington and P. Singh voting in favour; and Councillors Z. Janecki, Y. Fernandes and K. Galloway- Sealock voting in opposition. On motion by Councillor B. Vrbanovic - it was resolved: “That the remaining balance in the discontinued Local Environmental Action Fund (LEAF) grant program be divided to provide that approximately $2M be allocated to Community Trails and $800,000 to the Emerald Ash Borer; and, FINANCE AND CORPORATE SERVICES COMMITTEE NOVEMBER 26, 2012 - 180 - CITY OF KITCHENER FCS-12-187 - ALLOCATION OF REMAINING LOCAL ENVIRONMENTAL ACTION FUND 3. (LEAF) FUNDS (CONT’D) That staff prepare a report on how the proposed funding options could be implemented, including options for a different division of the $2M based on comments made by Council on November 26, 2012 concerning other areas of interest, such as inclusion of natural areas; and further, be That this resolution, together with all additional information to be provided by staff, deferred for consideration and decision to the January 17, 2013 special Finance and Corporate Services Committee meeting as part of the final 2013 budget deliberations.” CSD-12-149 - AODA ACCESSIBILITY POLICY 4. The Committee considered Community Services Department report CSD-12-149, dated November 15, 2012, requesting approval of an Accessibility Policy that will replace Council Policy I-217 (Accessibility Standards for Customer Service). Messrs. Anthony Cashin and Gordon Cummer, Co-Chairs, Grand River Accessibility Advisory Committee (GRAAC), attended in support of a draft Accessibility Policy that will replace existing Council Policy I-217 (Accessibility Standards for Customer Service). Mr. Cashin advised that the Ontarians with Disabilities Act was enacted in 2005 and its objective is to facilitate full participation for all persons with disabilities by 2025. He acknowledged that this is no small endeavour for public and private sectors and more challenge is yet to come. He noted that GRAAC was established as a requirement under the Act and is a joint Committee including the Region of Waterloo, Cities of Kitchener and Waterloo and the Townships of Wellesley, Woolwich and North Dumfries. Mr. Cashin advised that many issues have been addressed since inception of GRAAC, with the most important in his view, their work on the Accessibility Plan. He expressed the importance of having a policy that supports persons with disabilities and identifies and removes barriers that would prevent their full participation, asking for support of Council in approving the new draft Accessibility Policy. Councillor J. Gazzola requested clarification as to what is changing in respect to the City’s policy. Ms. L. Palubeski advised that the existing Customer Service policy was reviewed in context of the new Integrated Accessibility Standards for Customer Service Regulation enacted in June 2011. Updates to the City’s policy were required to enhance definitions, procurement processes and workplace emergency response plans in keeping with the new regulations. In addition, the Province is now asking that Accessibility Plans be developed as multi-year plans. Mayor C. Zehr questioned if the other area municipalities have identical policies and Mr. G. Cummer responded that they are essentially the same, but the timing of presentations to respective Councils will vary. Ms. Palubeski added that the Accessibility Policy for Kitchener is identical to Waterloo’s policy and while other municipalities may have a different look to their policies, the content is essentially the same as dictated by the Province. Councillor B. Vrbanovic questioned if consideration has been given to adding braille to the business cards of senior staff in the Corporation and Ms. Palubeski advised that she would look into it. CarriedUnanimously The following motion was . On motion by Councillor K. Galloway-Sealock - it was resolved: “That Council Policy I-217 (Accessibility Standards for Customer Service) be repealed and replaced with the Accessibility Policy, attached to Community Services Department report CSD-12-149.” The Committee then recessed at 12:50 p.m. and reconvened at 1:30 p.m. with all members present. FINANCE AND CORPORATE SERVICES COMMITTEE NOVEMBER 26, 2012 - 181 - CITY OF KITCHENER FCS-12-189 - INVESTMENT POLICY UPDATE 5. The Committee considered Finance and Corporate Services Department report FCS-12-189, dated November 13, 2012, concerning revisions to Council Policy I-605 (Investment Policy). Councillor J. Gazzola referred to purchase of investments through the “ONE Fund”, questioning how much is invested through the fund and Mr. R. Hagey advised that last year’s investments were at 10%. Councillor Gazzola questioned if there is a sub-policy as to what the 10% is invested in and Mr. Hagey advised that there is not; however, prior to those investments taking place staff must return to Council for a by-law to be passed. Councillor Gazzola suggested that ability to invest in the ONE Fund should be built into the policy to a range of 0 to 10%, with no more than 2.5% in any one option under the fund, so that a by-law does not have to be passed each time. Mr. D. Chapman acknowledged that this could be done; however, he pointed out that returns on these investments have been inferior and is why the City has essentially gotten out of the pooled investments. He added that the process used has been put in place because more due diligence is required for this type of investing. Councillor Y. Fernandes referred to the section of the policy related to ethics and conflict of interest, questioning how this is monitored. Mr. Hagey advised that the number of persons involved in the investment process is limited to 2 staff and the brokers dealt with are commercial brokers which the 2 staff have no involvement with other than through City investments. Councillor D. Glenn-Graham questioned why the maximum level is at 75% rather than 100%. Mr. Hagey advised that a decision was made to allow improvement on returns but not to expose the City to too much risk. Mr. Hagey stated that banks are considered riskier investments and to go to a level of 100% staff would need Council direction to be comfortable. Councillor B. Ioannidis questioned the returns to date on the Universe Corporate Bond Fund. Mr. Hagey advised that since inception of the Fund the rate of return is 5.83%. Councillor Ioannidis suggested that more could be invested in this area as most corporations remain relatively secure and are not volatile. Councillor Gazzola referred to the Letters of Credit for Credit Unions, noting the limit is set at $100,000 and questioning what the normal dollar limit is for Letters of Credit. Mr. Hagey advised that they can range into the millions dependent on the circumstances; however, in respect to Credit Unions, Planning staff has suggested the $100,000 limit to provide for planning works to move forward but if the dollar value exceeds that limit, then the Letter of Credit should come from a bank. Mr. Hagey noted that there has not been a lot of experience in allowing Letters of Credit from a Credit Union; however, the City of Waterloo recently updated its policy to provide for same and Kitchener is proposing to match their policy given there has been inquiries from among the development industry desiring this approach and the dollar limit allows the City to accommodate same while limiting risk. On motion by Councillor P. Singh - it was resolved: “That Council Policy I-605 (Investment Policy) be repealed and replaced with the policy attached as Appendix A to Finance and Corporate Services Department report FCS-12- 189.” CAO-12-051 - REGIONAL BROWNFIELD INCENTIVE PROGRAM UPDATE 6. The Committee considered Chief Administrator’s Office report CAO-12-051, dated November 15, 2012, concerning the Region of Waterloo’s announcement of suspension of their Brownfield Remediation Tax Increment Grant (TIG) and Phase II Environmental Site Assessment Grant (ESA). Mr. R. Morgan advised that the Region has allocated all remaining funds under its incentive programs and any applications that have not yet received approval have been put on hold. He stated that the Region’s incentive program is key to revitalizing brownfield sites, providing for recovery of costs and generating increased assessment. He commented that if not continued FINANCE AND CORPORATE SERVICES COMMITTEE NOVEMBER 26, 2012 - 182 - CITY OF KITCHENER CAO-12-051 - REGIONAL BROWNFIELD INCENTIVE PROGRAM UPDATE (CONT’D) 6. many brownfield sites will remain vacant and staff is asking Council to support a request to the Region to include funding in their 2013 budget that will provide for continuance of the suspended programs. In response to Councillor B. Ioannidis, Mr. Morgan advised that together, the Region’s and the City’s incentive programs have facilitated redevelopment of such sites as The Tannery District and The Breithaupt Block, and without such programs these and many other brownfield sites currently being considered by developers would remain vacant. Councillor Z. Janecki requested clarification of the funding split between the Region and the City and the impact suspension has to the City. Mr. Morgan advised that the funding split is 2/3 Regional to 1/3 municipal, adding that if the Region’s programs are discontinued the City will have to fund a larger portion over a longer period of time, which has significant impact to the City. Mayor C. Zehr advised that he has asked staff to put together a package of information that he can use to help convince the Region that this is a valuable program that should not be deferred. He added that support of the recommendation by all members of Council is needed to strengthen his position in raising this matter at the Region. Several members of Council spoke in support of the recommendation, commenting on the importance of advocating continuance of the incentive programs to ensure brownfield sites get redeveloped and continue to be vital properties within the community. On motion by Councillor B. Ioannidis - it was resolved: “WHEREAS the Region of Waterloo’s Brownfield Remediation Tax Increment Grant (TIG) program supports the mutual objective of the City of Kitchener and Region of Waterloo with respect to revitalizing underutilized properties, growing the assessment base, intensification, creating employment and environmental stewardship; and, WHEREAS the City of Kitchener was advised on October 26, 2012 that the Region of Waterloo’s TIG and Phase Two Environmental Site Assessment Grant was being suspended immediately due to lack of funding; and, WHEREAS the suspension of these programs will likely delay or stop important redevelopment projects that are currently at various stages of planning and that require both City and Regional TIG funding to remain viable; NOW THEREFORE BE IT RESOLVED that the City of Kitchener requests that the Region of Waterloo include funding in the 2013 budget to maintain the existing Brownfield Remediation TIG program and the Phase Two Environmental Site Assessment Grant program; and, BE IT RESOLVED that the City of Kitchener requests that the Regional Council direct Regional Staff to continue to receive and process applications for the Brownfield Remediation Programs; and further, BE IT FINALLY RESOLVED that copies of this resolution be circulated to all area municipalities within the Region of Waterloo.” ADJOURNMENT 7. On motion, the meeting adjourned at 1:50 p.m. J. Billett, AMCT Committee Administrator