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HomeMy WebLinkAboutCouncil Minutes - 1999-11-11 SSPECIAL COUNCIL MINUTES NOVEMBER 11, 1999 CITY OF KITCHENER A special meeting of City Council was held at 3:05 p.m. this date and Chaired by Mayor C. Zehr with the following members present: Councillors John Smola, Jake Smola, C. Weylie, and B. Vrbanovic. Councillors M. Yantzi, G. Lorentz, J. Ziegler and T. Galloway were in attendance for part of the meeting. Notice of this special meeting had been previously given to all members of Council by the City Clerk pursuant to Chapter 25 (Council Procedure) of the Municipal Code. Councillor John Smola noted that it was indicated at the November 8, 1999 special Council meeting the matter regarding the transfer of the City's Transit Operating Licence in respect to providing services to the City of Waterloo would be discussed this date pending on the outcome of discussions at Regional Council on November 10, 1999. Mayor C. Zehr advised and circulated a draft resolution arising from the Regional Council meeting asking that Kitchener Council withdraw the condition in paragraph 2 of its November 8,1999 resolution, and that Regional Council is prepared to commit to identifying any outstanding issues in regard to the transit transfer on or before November 24, 1999. Mayor C. Zehr also noted that there is a dispute mechanism forming part of the transfer process, and should the City wish, it may still object to transfer of the licence after the application has been filed. Councillor John Smola raised concerns over the fact that the Region is paying the mediator who would deal with any disputes, which is inappropriate. He suggested that both the Region and the City should have selected a third party, and questioned whether under the circumstances the City should be signing off on the licence transfer. Mayor Zehr informed that it was his understanding the Region of Waterloo has agreed to several of Kitchener's requests in respect to the natural gas filling station and the ongoing use of the portion of the transit terminal on Strasburg Road currently utilized by Parks and Recreation and non-Transit fleet. Councillors T. Galloway and M. Yantzi entered the meeting at this point. It was suggested that the Special Council meeting recess and re-convene following in-camera discussion, at which time this matter could be discussed further. Mayor C. Zehr advised of an additional solicitor-client item for discussion in-camera this date. Moved by Councillor C. Weylie Seconded by Councillor B. Vrbanovic "That an in-camera meeting of City Council be held immediately following this special meeting to consider two matters subject to solicitor-client privilege." Carried. The meeting then recessed at 3:20 p.m. and re-convened at 5:05 p.m. with all members present except Councillors K. Taylor-Harrison and J. Haalboom. Further discussion took place concerning the dispute/mediation mechanism in regard to transfer of the City's transit operation to the Region of Waterloo. Councillor B. Vrbanovic indicated his willingness to put forward a motion whereby the City would agree to sign the transfer agreement provided its approval could be withdrawn in the event all outstanding issues are not dealt with to the mutual satisfaction of the City and the Region by December 8, 1999. Councillor G. Lorentz stressed the importance of ensuring that the citizens of Kitchener are treated fairly in regard to the assets being transferred. He noted that the equity in the transit operation was built up by Kitchener taxpayers and the Province, and not the citizens of other area municipalities. Councillor John Smola indicated his concerns in regard to transferring the licence at this time; namely, that at present the dispute resolution mechanism seems unfairly weighted in the Region's favour as the mediator is in their employ; and, the City has insufficient information as to the specific nature and amount of the "area rate charge", in particular whether Kitchener taxpayers will be paying more to operate the transit service than at present. He suggested that all of this information should be available before a final decision is made. Mr. J. Gazzola offered the opinion that the Region appears to be trying to force the matter through, perhaps based on concerns that they will not assume responsibility for transit, notwithstanding the Council resolution directing that this take place. He pointed out that the Region has hired a SPECIAL COUNCIL MINUTES NOVEMBER 11, 1999 - 460 - CITY OF KITCHENER consultant to identify various transition issues, and that he, as the Chief Administrative Officer, has not been interviewed or been asked to provide input for the consultant's report. He suggested that Kitchener administration has not been privy to details of the overall process, and the Kitchener Transition Team only recently received, from Councillor John Smola, a copy of the consultant's document for discussion. Mr. Gazzola suggested that several points are unreasonable, including the assumption by the Region that it is entitled to all of the Transit Centre assets despite the fact that 40% of this site was acquired for other than the exclusive use of transit. He also questioned the fairness of the dispute mechanism on the basis that the accounting firm which would act as mediator is employed by the Region. Councillor J. Ziegler suggested that if staff have any concerns similar to those voiced this date they should be put in writing and discussed at Regional Council before Kitchener signs off on the licence transfer. He suggested that Kitchener staff should also be in attendance when these discussions take place. Mr. Gazzola noted that many other human resources related issues have yet to be decided in light of various statutory requirements. Mayor C. Zehr repeated earlier comments that it was his understanding the Region was prepared to recognize Kitchener's position in respect to the property issues and the issue of the natural gas filling station. Councillor Jake Smola noted that he has yet to see any report from Kitchener staff concerning their position on the arrangements for transfer and the impact on Kitchener taxpayers. Councillors M. Yantzi and G. Lorentz left the meeting at this point. Councillor B. Vrbanovic advised that it was his understanding Kitchener's municipal administration would direct its own staff sitting on the Transition Steering Committee to ensure that the interests of Kitchener taxpayers are protected. Councillor J. Ziegler left the meeting at this point. Mr. J. Shivas voiced the opinion that proper negotiations have not taken place to date in regard to the transit transfer. Mr. J. Gazzola also pointed out that a transfer by January 1, 2000 allows insufficient time to ensure that all matters have been dealt with properly. Ms. P. Houston suggested that the transition process is awkward and does not allow for proper representation or input from Kitchener staff and Council. Mayor C. Zehr noted that it is important to resolve all outstanding matters as soon as possible for the sake of Kitchener's transit employees. Councillor T. Galloway suggested that it is appropriate for Kitchener to maintain some leverage in the process to ensure that Kitchener taxpayers are being appropriately compensated for transit assets. He also questioned why these outstanding issues are only being brought forward at this time given the fact that the decision to transfer the transit operation was made some time ago. Mr. Gazzola responded that initially the Region ignored the contentious issues, and now a consultant's report is being brought forward with a proposed resolution of these issues with no formal input from Kitchener staff or Council. Mayor C. Zehr suggested that he and Mr. Gazzola meet with their Regional counterparts prior to the Council meeting of November 15, 1999 in an attempt to resolve or otherwise address these outstanding issues. The members of Council present generally agreed with this approach. Mayor Zehr advised that his position in respect to the outstanding issues would be that Kitchener retain the natural gas filling station and the non-transit portion of the transit terminal, as well as access or ownership to that portion of the Strasburg Road terminal utilized for Parks and Recreation/Fleet operations. Councillor John Smola also suggested that further information is required concerning the specific nature of the proposed area rate. Councillor Jake Smola also asked that the issue of the sale price of any natural gas in respect to the transit system be discussed when the Mayor, Regional Chair and CAOs meet. Ms. P. Houston questioned whether the City would in fact wish to retain the physical assets referred to by the Mayor or would be better served through some form of financial compensation. It was generally agreed that this matter would be given further consideration at the regular Council meeting on November 15, 1999. SPECIAL COUNCIL MINUTES NOVEMBER 11, 1999 - 461 - CITY OF KITCHENER On motion, the meeting adjourned at 6:05 p.m. MAYOR CLERK