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HomeMy WebLinkAboutCouncil Minutes - 2000-06-12 SSPECIAL COUNCIL MINUTES JUNE 12, 2000 CITY OF KITCHENER A special meeting of City Council was held at 11:05 a.m. this date and Chaired by Mayor C. Zehr with the following members present: Councillors K. Taylor-Harrison, M. Yantzi, John Smola, Jake Smola, B. Vrbanovic, J. Ziegler, G. Lorentz and C. Weylie. Councillor J. Haalboom was in attendance for part of the meeting. Notice of this special meeting had previously been given to all members of Council by the City Clerk pursuant to Chapter 25 (Council Procedure) of the Municipal Code. Mayor C. Zehr advised that, in regard to restructuring discussions, area Councils have been asked to consider and respond concerning their position on the "triple majority" approval process for selecting a municipal governance model, as well as the model preferred by each individual municipality. It was agreed to consider the triple majority issue alone this date. Council considered a recommendation arising from the Finance and Administration Committee meeting of this date concerning a lot maintenance matter involving 5 Layton Street. Moved by Councillor J. Ziegler Seconded by Councillor G. Lorentz "That City Council consider a by-law at its special meeting of June 12, 2000 authorizing the removal of waste material at 5 Layton Street at the expense of the property owner, if the work has not been done by the owner on or before June 12, 2000." Carried. Council considered the recommendation arising from the Finance and Administration Committee meeting of this date concerning naming of the proposed six new Wards. Moved by Councillor J. Ziegler Seconded by Councillor C. Weylie "That Kitchener Council recommend to the Province of Ontario that the six wards proposed for the City of Kitchener be named as follows: Ward #1 Ward #2 Ward #3 Ward #4 Ward #5 Ward #6 Bridgeport-Centre Ward Chicopee-Grand River Ward Fairview-Gateway Ward South Ward Forest-Rockway Ward West-Victoria Park Ward." Carried. Council was in receipt this date of a recommendation authorizing incorporation of the successor corporations to the Kitchener-Wilmot Hydro-Electric Commission. Mayor C. Zehr pointed out that drafts of the proposed agreements were circulated to members of Council on June 9, 2000. Moved by Councillor B. Vrbanovic Seconded by Councillor G. Lorentz "WHEREAS The Corporation of the City of Kitchener (the "City"), with The Corporation of the Township of Wilmot (the "Township"), distributes electricity through Kitchener-Wilmot Hydro- Electric Commission (the "Commission"); AND WHEREAS subsection 142(2) of the Electricity Act, 1998 (Ontario) requires that every municipal corporation that generates, transmits, distributes or retails electricity, directly or indirectly, shall cause a corporation or corporations to be incorporated under the Business Corporations Act (Ontario) for the purpose of carrying on those activities; AND WHEREAS the City and the Township intend to incorporate such corporations; SPECIAL COUNCIL MINUTES J U N E 12, 2000 - 304 - CITY OF KITCHENER THEREFORE BE IT RESOLVED that the Council of the City authorizes the incorporation of the following successor corporations to the Commission: a holding corporation, Kitchener Power Corp.; and three subsidiaries consisting of a distribution corporation, Kitchener-Wilmot Hydro Inc.; a corporation to deliver energy services, Kitchener Energy Services Inc.; and a fibre corporation, Fibre Tech (Kitchener) Inc. (the "Subsidiaries") (collectively referred to herein as the "Corporations"), to be incorporated under the Business Corporations Act (Ontario) pursuant to Subsection 142(1) of the Electricity Act, 1998 (Ontario) and Sections 71 and 73 of the Ontario Energy Board Act, 1998 (Ontario); FURTHER that the persons named as incorporators in the articles of the Corporation are authorized to execute and file the articles of incorporation for the Corporations on behalf of the City and Township pursuant to Subsection 142(2) of the Electricity Act, 1998 (Ontario); AND FURTHER that the Shareholders Agreement between the City and the Township in substantially the form of the March 27 draft (the "Shareholders' Agreement") is hereby authorized and approved; AND FURTHER that the Mayor and Clerk are hereby authorized to execute the Shareholders' Agreement and any and all agreements and documents, upon the written recommendation of the City Solicitor, as may be necessary to incorporate the Corporations and to give effect to this by- law." Carried. Mayor C. Zehr advised that the Ministry of Energy, Science and Technology is introducing new legislation which would place greater controls on the setting of hydro rates by the Ontario Energy Board. He requested authority to represent Council and to support the rate structure proposed by the Energy Board. Moved by Councillor J. Ziegler Seconded by Councillor G. Lorentz "That Mayor C. Zehr represent Kitchener Council in responding to the Minister of Energy, Science and Technology regarding his recent attempts to impose retroactive controls on rates set by the Ontario Energy Board." Carried. Councillor J. Haalboom left the meeting at this time. A discussion took place in response to a request from the Coordinating Committee of the area municipalities currently involved in discussions concerning Regional Reform. Mayor C. Zehr advised that a triple majority voting process is being recommended as the method for choosing a preferred governance model. The models under discussion are one city-one tier, two cities-one tier, and a modified two-tier system. The triple majority process would require approval of the majority of the local, municipal Councils representing the majority of the electorate, a majority of local Councils, and a majority on Regional Council. Councillor B. Vrbanovic advised that three voting models were considered by the Coordinating Committee, those being: each City voting separately and advising the Province of the outcome; a double majority with no vote by Regional Council; and, the recommended triple majority. Councillor Vrbanovic stressed that all eight area Councils, including the Region, are legitimate elected bodies and that each should have a vote on the issue. Councillor Jake Smola suggested that the general public should also be given an opportunity to comment on the entire matter, as this has not taken place to date. He also expressed concern over the triple majority process, particularly involving a vote by Regional Council. He questioned whether it is possible to direct the Kitchener representatives on Regional Council as to how they will vote on this matter. Mayor C. Zehr replied that traditionally, Council has not controlled how its representatives on Regional Council vote. Councillor Vrbanovic suggested that Kitchener Council representatives at the Region should take the vote of the local Council into consideration when voting at the upper tier. Councillor Jake Smola argued that in effect, Regional Councillors would be voting twice on the same SPECIAL COUNCIL MINUTES JUNE 12, 2000 - 305 - CITY OF KITCHENER issue, and that any elected member should be limited to a single vote. Councillor G. Lorentz suggested that it is inappropriate for Regional Council to vote on this matter. He noted that the entire process was at the instigation of the area municipalities who are paying for the study and that the Region did not want to be involved. Councillor John Smola agreed with the comments of Councillor Lorentz, noting that in the case of the sewer and water services the decision was left entirely to the lower tier, with the Region only involved in accepting or rejecting responsibility for the service. Councillor G. Lorentz questioned whether the triple majority option was the only one put forward by the Coordinating Committee. Councillor Vrbanovic advised that this was the only recommendation and that no alternative position had been discussed. He suggested that if the area Councils do not accept the triple majority process, the entire issue would have to be addressed again at an ali-Councils meeting. Councillor Jake Smola suggested that the Coordinating Committee consider the option of a double majority. Mayor C. Zehr pointed out that all municipalities had agreed to a June 30, 2000 target for a decision, and if this is not met, the matter is unlikely to be pursued in the Fall, given the upcoming municipal elections. He further noted that the outcome of a triple majority vote is not legally binding, and that if individual Councils do not agree with the final resolution, their positions could be sent to the Province independently. Moved by Councillor B. Vrbanovic Seconded by Councillor J. Ziegler "That Kitchener City Council endorses a 'triple majority' as the approval process for selecting a model for municipal restructuring within the Region of Waterloo, a 'triple majority' requiring a sufficient number of local municipal Councils representing the majority of the electorate; a majority of local Councils; and, a majority on Regional Council." A motion by Councillor Jake Smola, seconded by Councillor John Smola, to defer consideration of the triple majority approval process so as to allow for consideration of other options, including a double majority, was voted on and Lost. The main motion by Councillor B. Vrbanovic, seconded by Councillor J. Ziegler, to adopt the triple majority approval process was voted on and Carried. It was generally agreed that no action would be taken at this time to discuss the individual restructuring options. Mayor C. Zehr advised that the matter involving the Forsyth property which is listed on the agenda of this date would be dealt with in open Council following the in-camera meeting. He further advised of a late item from the Legal Department involving a consent to mortgages from St. Jude's Student Services Inc. outlined in staff report LEG-00-018, dated June 12, 2000. Mayor Zehr noted that this matter was not introduced in accordance with Council's Procedural By-law, and questioned the impact if it was not dealt with until June 19, 2000. Mr. J. Shivas replied that there may be some impact; however, the item could be dealt with on June 19, 2000. Moved by Councillor J. Ziegler Seconded by Councillor M. Yantzi "That an in-camera meeting of City Council be held immediately following this special meeting to consider a personal matter, two land acquisition matters, a labour relations matter, and two matters subject to solicitor-client privilege." Carried. The meeting was then recessed at 11:50 a.m. and re-convened at 1:45 p.m. with all members present except Councillors J. Haalboom and T. Galloway. Mayor C. Zehr referred to the planned sale of the Forsyth property to Circa Developments, and its proposed conversion to residential housing. A news release was circulated advising that the two factory buildings will be converted into a 15-unit apartment co-operative and a 45-unit loft-style condominium, with renovations to begin in 2001. Mayor Zehr also advised of the proposed purchase by the City of two small parcels of the former Forsyth property for use as a parking lot and open public space. SPECIAL COUNCIL MINUTES JUNE 12, 2000 - 306 - CITY OF KITCHENER Moved by Councillor K. Taylor-Harrison Seconded by Councillor B. Vrbanovic "That an agreement of purchase and sale between the City and 1313007 Ontario Inc. be approved to acquire for the sum of $225,000.00 two portions of the Forsyth property; firstly, the West Block comprised of vacant land at the corner of Duke and Young Streets; and secondly, the East Block containing a one-storey building and the parking lot fronting on Duke Street West; and, That an agreement of purchase and sale between The John Forsyth Company Inc., 1313007 Ontario Inc. and the City be approved whereby the City will acquire thirdly, the remaining portion of the Forsyth property by paying The John Forsyth Company Inc. the sum of $640,000. to discharge its one year mortgage back from 1313007 Ontario Inc. in the event that 1313007 Ontario Inc. defaults; and further, That the Mayor and Clerk be authorized to execute all necessary documentation satisfactory to the City Solicitor." Carried. Councillor Jake Smola referred to the June 5, 2000 correspondence from Michael Follett Consulting Inc. asking to be advised of Council's decision on the triple majority issue. Mayor C. Zehr advised that his office would relay the City's position to Mr. Follett. Moved by Councillor C. Weylie Seconded by Councillor Jake Smola "That leave be given the Mover and Seconder to introduce the following by-laws for three readings and that the same be taken as read a first, second and third times, be finally passed and numbered serially by the Clerk. (a) Being a by-law to authorize the carrying out of the provisions of Chapter 650 of The City of Kitchener Municipal Code with respect to the property municipally known as 5 Layton Street, Kitchener. (By-law No. 2000-96) (b) To confirm all actions and proceedings of the Council. (By-law No. 2000-97)." Carried. On motion, the meeting adjourned at 1:55 p.m. MAYOR CLERK