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HomeMy WebLinkAboutFinance & Corp - 2003-11-17FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 17~ 2003 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, chaired by Councillor B. Vrbanovic, commencing at 2:10 p.m. with the following members present: Mayor C. Zehr and Councillors C. Weylie, J. Gazzola, G. Lorentz and J. Smola. Officials Present: Ms. P. Houston, Ms. F. McCrea, Ms. J. Koppeser, Ms. J. Sheryer, Ms. R. Upfold, Ms. P. Bacon, Ms. C. Ladd, Ms. J. Billett and Messrs. J. Fielding, G. Sosnoski, G. Stewart, F. Pizzuto, G. Borovilos and L. Proulx. 1. CRPS-03-188 ENVIRONMENTAL COMMITTEE RECOMMENDATION RE: RESIDENTIAL ENERGY EFFICIENCY PROJECT (R.E.E.P.) REQUEST FOR FINANCIAL SUPPORT The Committee was in receipt of Corporate Services Department report CRPS-03-188 dated October 14, 2003 outlining a recommendation advanced by the Environmental Committee respecting a request from the Residential Energy Efficiency Project (R.E.E.P.) asking that the City endorse the program and provide financial contributions in the amount of $20,000. in each of 2004 and 2005. Ms. Mary Jane Patterson, Program Manager - R.E.E.P., attended in support of the Environmental Committee's recommendation and distributed additional supporting material produced by Natural Resources Canada regarding the Federal "EnerGuide for Houses Retrofit Incentive" grant program which rewards homeowners, based on a point system, who make their homes more energy efficient. Ms. Patterson advised that R.E.E.P. is a community based partnership that provides home energy evaluations in Waterloo Region to determine energy efficiency of residential homes and to make recommendations for improvements. She stated that as a result of the Federal grant program R.E.E.P. has experienced increased demand for its services and is proposing to double its service capacity to meet the demand. Accordingly, she advised that R.E.E.P. is asking the City to double its financial contribution to allow administrative changes to be made to accommodate an increase in service capacity. Ms. Patterson pointed out that the window of opportunity to take advantage of the Federal grant program is limited and encouraged the Committee's support of its request. Ms. Patterson responded to a number of questions regarding the program's proposed budget during which issues where discussed respecting apportioning of financial contributions among funding partners and the need for an equitable distribution. Councillor J. Gazzola suggested that R.E.E.P. consider increasing client fees to assist in off-setting program costs. Mayor C. Zehr pointed out that the Region's financial contribution does not represent a 100% increase and suggested that the Region be requested to revisit its contribution in light of the announcement of the Federal grant program. Councillors B. Vrbanovic and G. Lorentz spoke in favour of the Environmental Committee's recommendation commenting on the importance of supporting initiatives that promote emission reductions and energy conservation. Mayor C. Zehr requested that when the matter is brought forward for discussion during the 2004 budget deliberations, additional information be provided respecting the status of financial contributions among all funding partners to the program. On motion by Councillor G. Lorentz - It was resolved: "That the City of Kitchener endorse the Residential Energy Efficiency Project (R.E.E.P.), as outlined in a letter dated September 26, 2003 from Mary Jane Patterson, Program Manager; and, That subject to consideration during the 2004 budget deliberations, R.E.E.P.'s request to the City for a financial contribution in 2004 in the amount of $20,000., be approved as part of the Environmental Committee operating budget; and, That as part of the 2004 budget deliberations respecting this matter, additional information be provided regarding the status of contributions from other partners; and further, That prior to consideration of an additional funding request in 2005 of $20,000., R.E.E.P. provide a report in October 2004 to the City's Environmental Committee and City Council, outlining results of the R.E.E.P. program to date." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 17~ 2003 - 108 - CITY OF KITCHENER 2. CRPS-03-201 100 WASHBURN DRIVE DEVELOPMENT CHARGE COMPLAINT SECTION 20, DEVELOPMENT CHARGES ACT The Committee was in receipt of Corporate Services Department report CRPS-03-201 dated November 12, 2003, and an addendum report dated November 13, 2003 concerning a complaint filed under Section 20 of the Development Charges Act with respect to development charges imposed for an addition to the building located at 100 Washburn Drive. The staff reports provide a summary of the reasons for the complaint and the basis on which development charges were applied in respect to the definition of "existing industrial building", as set out in Section 1(i) of the City's Development Charge By-law, which restricts calculation of a development charge to one or more additions not to exceed 50% of the gross floor area of the building as it existed on January 1, 1999. Mr. Mark Flowers, Solicitor, Davies Howe Partners, attended on behalf of his client 1090504 Ontario Limited, the owner of the subject property. He advised that his client made application for a building permit in September 2003 to construct an addition to an existing industrial building located on the subject property, representing an enlargement of approximately 13% of the total gross floor area. He noted that the building was first enlarged in 2000, at which time the City and the Region of Waterloo provided an exemption totalling 50% of the development charges applied. In calculating charges for the second addition, Mr. Flowers advised that City staff have taken the position that the 50% exemption was fully utilized in 2000. Accordingly, his client was required to pay development charges to the City ($10,247.41) and to the Region ($51,455.08), and did so under protest. Subsequently, his client launched complaints with both municipalities under Section 20 of the Development Charges Act on the basis that the City and the Region incorrectly interpreted the Act as follows: the amount of the development charge was incorrectly determined in respect to Section 4(2) of the Act which allows that charges for a building expansion of less than 50% of the existing building is 0; the City and the Region cannot supersede the definition in the Act by adding a condition to their by-laws to require that the size of the industrial building be determined as of the date before the buildings first enlargement; and the additional condition is contrary to the objectives of the Act which is to encourage minor expansion of industrial buildings. Mr. Flowers disagreed with comments in the staff report which suggest that his client has used an inappropriate process to challenge the validity of the municipal by-law and Council policy decision relating to the calculations of the exemption. He stated that the basis of the complaint stems rather from interpretation of Section 4(2) of the Act and the right to file a complaint is contemplated in the Act. He commented that he was of the opinion that by its definition the Act did not intend to restrict the exemption to only apply based on the original building and requested that the Committee confirm the development charges applicable to the second expansion as 0. Ms. F. McCrea, Assistant City Solicitor, advised that the development charges imposed with respect to the second expansion at 100 Washburn Drive were calculated in accordance with the provisions of the City's Development Charge By-law, 1999. She commented that at the time of drafting the City's By-law, a policy decision was made to include a definition of "existing industrial building" that included a determination date of January 1, 1999. This provision was not appealed and has been consistently applied to other industrial building expansions in the City. The purpose of the limitation is to balance the interest of promoting industrial expansion with the cost of services resulting from such expansions. She stated that if Section 4(2) of the Act is to be interpreted in the manner suggested by the delegation, the exemption would apply continuously to an ever growing building, resulting in potential hardship on services. Ms. McCrea pointed out that the owner of the subject property received a substantial exemption in 2000 and provision is made in the City's by-law to spread an exemption over multiple expansions to one building up to the maximum of 50%. She expressed the opinion that Section 4(2) of the Development Charge Act is general by nature of definition and open to consideration of local circumstances, and both the Act and the City's by-law can be complied with. Ms. McCrea was of the opinion that the provisions of the City's by-law were correctly applied to the second addition. She also advised that in 2004 the City will be conducting a review of its Development Charge By-law and could include consideration of the definition of "existing industrial building" in its review. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 17~ 2003 - 109 - CITY OF KITCHENER 2. CRPS-03-201 100 WASHBURN DRIVE DEVELOPMENT CHARGE COMPLAINT SECTION 20, DEVELOPMENT CHARGES ACT (CONT'D) In response to questions, Ms. McCrea advised that the complainant would have right of appeal to the Ontario Municipal Board respecting the City's decision on this matter. The Committee voiced agreement with interpretations made by City staff and were of the opinion that provisions of the City's by-law were correctly applied. On motion by Mayor C. Zehr - It was resolved: "That the complaint filed under Section 20 of the Development Charges Act by Mr. John M. Alati, Davies Howe Partners, on behalf of his client 1090504 Ontario Limited, be dismissed and the development charges as calculated and collected for the development of 100 Washburn Drive in the City of Kitchener be confirmed as correct; and further, That the Development Charges By-law Team be directed to include for consideration in the Development Charges By-law review, the definition of 'existing industrial building'." KPL REPORT REQUEST FROM KITCHENER PUBLIC LIBRARY BOARD FOR AN ADDITIONAL BOARD MEMBER The Committee was in receipt of a report prepared by the Kitchener Public Library Board dated October 3, 2003 requesting that the complement of the Board be increased from 10 to 11 members. On motion by Mayor C. Zehr - It was resolved: "That section 1.1 of Chapter 95 (Board & Committee - Public Library Board) of the Municipal Code be repealed and replaced with the following: 'The complement of the Kitchener Public Library Board is hereby established as being eleven (11) members, said members to be appointed by the Council of the City pursuant to the provisions of the Public Libraries Act 1990, c. P 44.'" CRPS-03-199 REQUEST FOR EXEMPTION FROM COUNCIL POLICY 1-875 (LOTTERY - BINGO REGULATIONS) TO OPERATE BINGOS IN THE CITY OF KITCHENER MACEDONIAN - CANADIAN COMMUNITY OF CAMBRIDGE, KITCHENER-WATERLOO AND GUELPH Councillor B. Vrbanovic disclosed a pecuniary interest and abstained from all discussion and voting concerning this matter as he is associated with an organization that derives part of its revenues from bingos. Councillor G. Lorentz assumed the Chair. The Committee was in receipt of Corporate Services Department report CRPS-03-199, dated November 6, 2003 concerning a request from the Macedonian-Canadian Community of Cambridge, Kitchener-Waterloo and Guelph to operate bingos in the City of Kitchener. Ms. J. Koppeser advised that the group's request was refused as they did not meet the eligibility requirements of Council's policy respecting their physical presence in the City of Cambridge where a bingo hall exists. She advised that the group was encouraged to apply for permission to operate in the Cambridge bingo hall; however, the group has not been successful to date. In response to questions, Ms. Koppeser advised that all groups previously operating in Waterloo have been accommodated in Kitchener's current schedule with the exception of this group because of its physical presence in Cambridge. She also advised that staff are hesitant to open new time slots because of limited profit margins and the criteria respecting physical presence is a protective measure requested by Kitchener charities to ensure profits remain in the City. Ms. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 17~ 2003 - 110 - CITY OF KITCHENER 4. CRPS-03-199 REQUEST FOR EXEMPTION FROM COUNCIL POLICY 1-875 (LOTTERY - BINGO REGULATIONS) TO OPERATE BINGOS IN THE CITY OF KITCHENER MACEDONIAN - CANADIAN COMMUNITY OF CAMBRIDGE, KITCHENER-WATERLOO AND GUELPH (CONT'D) Koppeser noted that the group had been advised that the report would be presented to the Committee this date, however, a representative from the group was not present. Councillor G. Lorentz suggested that this matter be referred to the November 24, 2003 Council meeting to allow a representative from the group to attend in support of the request. Councillor B. Vrbanovic previously disclosed a pecuniary interest and abstained from all discussion and voting concerning this matter as he is associated with an organization that derives part of its revenues from bingos. On motion by Councillor J. Gazzola - It was resolved: "That the request of the Macedonian-Canadian Community of Cambridge, Kitchener- Waterloo and Guelph to operate bingos in the City of Kitchener (Corporate Services Department report CRPS-03-199), be deferred and referred for consideration at the November 24, 2003 Council meetinq, to provide opportunity for the group to make representation in support of their request." Councillor B. Vrbanovic then re-assumed the Chair. CRPS-03-116 INVENTORY OF ARTIFACTS OWNED BY CITY OF KITCHENER DISPOSITION OF GLASS BLOWING EQUIPMENT The Committee was in receipt of Corporate Services Department report CRPS-03-116, dated October 7, 2003 in which an inventory of artifacts owned by the City is provided, along with details of each item and a recommendation pertaining to the disposition of glass blowing equipment. Councillor B. Vrbanovic referred to a Council resolution dated September 25, 2003 which provides that if by December 31, 2003 a suitable location and partner is not in place the glass blowing equipment be sold. Mr. L. Proulx advised that he was not aware of Council's previous decision and withdrew his recommendation pertaining to the glass blowing equipment. In response to questions, Mr. Proulx advised that, where feasible, the artifacts are being incorporated into existing and/or newly constructed facilities. Mayor C. Zehr commented that artifacts from the old City Hall should be retained and re-used where possible. He also requested that staff prepare a report for future consideration with respect to the costs associated with restoration and placement of the fire wagons within the City's Fire Halls. On motion by Mayor C. Zehr - It was resolved: "That Corporate Services Department report CRPS-03-116 (City Hall Artifacts) be received as information." CSD-03-161 206-208 KING STREET EAST GRANT-IN-LIEU OF BUILDING PERMIT FEES AND TAX REBATE UNDER DOWNTOWN FINANCIAL INCENTIVES PROGRAM The Committee was in receipt of Community Services Department report CSD-03-161, dated November 3, 2003 concerning an application under the Downtown Financial Incentives Program respecting renovations at 206-208 King Street East. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 17~ 2003 -111 - CITY OF KITCHENER 6. CSD-03-161 206-208 KING STREET EAST GRANT-IN-LIEU OF BUILDING PERMIT FEES AND TAX REBATE UNDER DOWNTOWN FINANCIAL INCENTIVES PROGRAM (CONT'D) On motion by Councillor J. Gazzola - It was resolved: "That an application from Mr. Isidor Weisz for a "Grant-in Lieu of Building Permit Fee" and a "Tax Rebate" in the combined amount of $2,524.16 under the Downtown Financial Incentives Program, be approved, respecting extensive renovations to his property at 206- 208 King Street East (former burned-out Athenian restaurant)." CRPS-03-202 NEGOTIATION OF CONTRACTS BETWEEN CITIES OF KITCHENER AND WATERLOO AND THE KITCHENER-WATERLOO AND NORTH WATERLOO HUMANE SOCIETY GENERAL CONTRACT FOR ANIMAL SERVICES AND SPAY/NEUTER CONTRACT FORMATION OF ANIMAL SERVICES CONTRACT NEGOTIATION COMMITTEE The Committee was in receipt of Corporate Services Department report CRPS-03-202 dated October 8, 2003 concerning establishment of a joint Animal Services Contract Negotiation Committee with the City of Waterloo to negotiate contract renewal with the Humane Society for the spay / neuter pilot program. In addition, it is intended that this Committee negotiate a general contract for animal services with the Humane Society. It was noted that both contracts will expire at the end of 2003. Ms. J. Sheryer and Ms. R. Upfold responded to a number of questions concerning discussions to date with the City of Waterloo, the level of satisfaction with the spay / neuter program and the timeframe for completion of negotiations. During discussions it was noted that the Humane Society has indicated it cannot continue the spay / neuter program without financial support from both the Cities of Kitchener and Waterloo. It was also noted that in the event negotiation of new contracts exceeds the expiry date of December 31,2003 the current fee schedules will continue until such time as negotiations have been completed. Mayor C. Zehr pointed out that staff are seeking direction with respect to appointment of a Council representative to the negotiating committee. It was generally agreed that this appointment be considered at the annual meeting of Appointments to Committees and Boards. Councillor G. Lorentz requested that prior to the annual appointment meeting, staff determine if the City of Waterloo intends to appoint a Council representative to the negotiating committee. On motion by Councillor J. Smola - It was resolved: "That the spay/neuter pilot program with the Kitchener-Waterloo and North Waterloo Humane Society continue for a further three years, subject to the successful negotiation of a new contract satisfactory to Council; and, That an Animal Services Contract Negotiation Committee be formed with the City of Waterloo to negotiate a three year spay/neuter contract with the Humane Society, said Committee to be comprised of City staff from Legal and Financial Services; and, That the above Animal Services Contract Negotiation Committee negotiate a three year General Contract for Animal Services with the Humane Society, subject to Council's approval; and, That at the November 21, 2003 meeting to consider Annual Appointments to Advisory Committees and Boards, a Council representative be appointed to the Animal Services Contract Negotiation Committee." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 17~ 2003 - 112 - CITY OF KITCHENER 8. SSD-03-003 ANALYSIS OF ECONOMIC IMPACT OF HURON BUSINESS PARK The Committee was in receipt of Strategic Services Department information report SSD-03-003, dated November 6, 2003 together with a report entitled "An Analysis of the Economic Impact of the Huron Business Park", dated August 2003. The reports outline an evaluation of the overall financial and economic impact made by businesses in the Park. Mr. G. Borovilos attended to give an overview presentation of the analysis report. He advised that the purpose of the report was to quantify economic benefits from businesses in the Park measured by direct, indirect and induced jobs created; direct, indirect and induced income expenditures created by business activity; and the amount of revenue generated by businesses in the Park. He noted that this assessment is intended to assist Council with important decisions it will have to make with respect to future development of additional employment lands. Mr. Borovilos provided key highlights of the report including: survey results; economic impacts created by the survey sampling of 34 businesses in the Park; social and employment benefits derived from businesses in the Park; comparisons of net capital investment with generation of new assessment; payback periods on investment and revenues accrued. He pointed out that municipal investment in the Park has been successful with the City's net capital investment of $15.4 M generating approximately $125 M in new assessment. However, he stressed that this analysis report reflects information of only one quarter of the total businesses in the Park and the results should be interpreted with caution. He advised that further research and development of an economic impact model is necessary to realize full economic impact of the businesses in the Park. In response to several questions, Mr. Borovilos provided clarification on issues concerning development of an economic impact model; survey results; location quotient analysis; and differentials between the purchase price of industrial land and the cost of development. Mayor C. Zehr referred to statistics that show the municipal period of return on investment in 1992 at 7 years and the Region of Waterloo at 11 years; whereas, today these statistics are reversed. He suggested that this is a direct result of transfer of services to the Region. He stated that the City is at a crucial point, having limited resources and suggested that the Region must also consider its position with respect to future investment in employment lands. Mr. J. Fielding emphasized that important decisions will have to be made with respect to the direction the municipality will take, whether on its own or in partnership with others, regarding investment in future employment lands. ADJOURNMENT On motion, the meeting adjourned at 3:50 p.m. Janet Billett, AMCT Committee Administrator