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HomeMy WebLinkAbout2014-04-28 FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 28. 2014 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 9:07 a.m. Present: Councillor S. Davey-Chair Mayor C. Zehr and Councillors F. Etherington, Y. Fernandes, K. Galloway-Sealock, J. Gazzola, D. Glenn-Graham, B. loannidis, Z. Janecki, P. Singh and B.Vrbanovic. Staff: J. Willmer, Chief Administrative Officer D. Chapman, Deputy CAO, Finance &Corporate Services P. Houston, Deputy CAO, Infrastructure Services M. May, Deputy CAO, Community Services C. Tarling, Director, Legislated Services &City Clerk L. Johnston, Director, Corporate Communications & Marketing W. Malcolm, Director of Utilities C. Bluhm, Manager, Downtown Community Development P. Harris, Manager, Licensing J. Sheryer,Assistant City Solicitor T. O'Brien, Landscape Architect D. Saunderson, Committee Administrator D. Livingstone, Committee Administrator C. Goodeve, Committee Administrator 1. INS-14-051 - PARKLAND ACQUISITION -571 HURON ROAD The Committee considered Infrastructure Services Department report INS-14-051, dated March 14, recommending an agreement of purchase and sale with Activa Holding Inc, for 571 Huron Road to be used for the improvement of a trail corridor, within the City's Multi-Use Pathway Master Plan. Mr. T. O'Brien was in attendance and responded to questions from the Committee. On motion by Councillor B. loannidis- it was resolved: "That the Mayor and Clerk be authorized to execute an Agreement of Purchase and Sale, satisfactory to the City Solicitor, with Activa Holdings Inc., for the purpose of acquiring a portion of the residential building lot on Huron Road known as Part of Lot 4, RCP No. 1382 being Part 7&8, 58R-18138 and municipally known as 571 Huron Road, Kitchener, for the purpose of improving community access by creating a continuous trail corridor to link Huron Natural Area trail to Huron Road as identified by the City's Multi- Use Pathway Master Plan, to an upset purchase price of$10,000 plus HST, associated real estate fees, land transfer tax, and transaction costs, as outlined in Infrastructure Services Department report INS-14-051; and further, That the Mayor and Clerk be authorized to execute the necessary documentation to complete the conveyance, subject to the satisfaction of the City Solicitor." 2. FCS-14-074 - REQUEST TO OPERATE HOT DOG CART - 273 STOKE DRIVE AND 112 WEXFORD CRESCENT The Committee considered Finance and Corporate Services Department report FCS-14-074, dated April 15, 2014 regarding a request to operate a hot dog cart at 273 Stoke Drive and 112 Wexford Crescent during the annual Community Garage sale on May 3, 2014. It was noted that any recommendation arising from the Committee regarding this matter would be considered at the special Council meeting to be held later this same date. On motion by Councillor B. loannidis- it was resolved: "That the request of Les Halat to operate two hot dog carts at 273 Stoke Drive and 112 Wexford Crescent during the annual Community Garage Sale on May 3, 2014, be approved, provided the necessary licence is obtained including Health and Fire approvals, as outlined in Finance and Corporate Services Department report FCS-14- 074." FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 28. 2014 -37 - CITY OF KITCHENER 3. FCS-14-071 - FOOD TRUCKS The Committee considered Finance and Corporate Services Department report FCS-14-071, dated April 11, 2014 recommending the approval of a Food Truck Program for 2014. In addition,the Committee was in receipt of a map highlighting potential locations for Mobile Food Trucks based on a 30 metre distance separation from restaurants. Mr. C. Bluhm and Ms. P. Harris presented the report highlighting the proposed Food Truck Program for 2014. Mr. Bluhm noted that the licensing fee is proposed to be set at $1947., adding this is an all-encompassing fee that comprises the annual business license costs as well as an inclusive special event permit for all City operated special events. He further advised that there was an error in the staff recommendation, noting Bullet Two under the fees heading should state, "In addition, there would be a $150. per truck fee payable to the Business Improvement Area (BIA) to cover expenses such as marketing, music, etc. for the Thursday night program, if participating." Mr. James Howe addressed the Committee in support of food trucks operating within the City. He expressed concerns regarding the public engagement process and that residents were not identified as a stakeholder to provide feedback on the implementation of a Food Truck program. Ms. Nadia Dragusanu, Food Truck Operator, asked that food trucks be permitted to operate across the City. She suggested that Kitchener should adopt an approach similar to the one taken by the City of Hamilton,which is more supportive of the Food Truck industry. Mr. Brad Schmuck, Food Truck Operator, addressed the Committee in opposition to the proposed Food Truck program, stating that there are too many restrictions for a Food Truck operator to be successful in the City of Kitchener. Mr. Dave Betts, Food Truck Operator, addressed the Committee in opposition to the proposed business licensing option. He stated the proposed fee is disproportionate in comparison to the Cities of Hamilton, Waterloo and Guelph. He added that it would be his preference to see Kitchener offer a business license where Food Truck operators could choose whether they would like their license to include the proposed all-inclusive special event permit, or just opt for the annual license. Mr. Reuben Salonga, United Food Trucks Ltd., addressed the Committee in support of the implementation of a Food Truck program in Kitchener. He indicated that United Food Trucks Ltd. have collaborated with the City of Waterloo to reach a sustainable model that would permit Food Trucks to operate in that City. He stated that the City of Waterloo will be considering a motion later this date that would reduce their current licensing fee from $2,000. to $200., as well as a reduction in the distance separation between Food Truck locations and restaurants down to 10 meters. He further advised that it is his desire for a similar type of program to be offered in Kitchener that would be more sustainable for Food Truck operators. Councillor P. Singh entered the meeting at this time. Ms. Sandra Bender, Chief Executive Operator, Centre in the Square, addressed the Committee in support of Food Truck operators and the implementation of a Food Truck program. She advised that the current program would prohibit the operation of Food Trucks in the Civic Centre District. She stated it is the Centre in the Square's desire to partner with United Food Trucks Ltd. to introduce a food service option in the Civic Centre District for a daily lunch program and a food service option for their show participants. She indicated that a daily lunch program would potentially increase pedestrian traffic and promotional options for both the Centre in the Square and the Art Gallery. Ms. Andrea Hennige-Kim, Food Truck Operator, addressed the Committee in opposition to the proposed 2014 Food Truck program. She stated that it would be her preference to see a less restrictive program that did not place limitations on any locations within the City, specifically the Downtown and Civic Centre District. FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 28. 2014 -38 - CITY OF KITCHENER 3. FCS-14-071 - FOOD TRUCKS (CONT'D) Mr. David O'Leary, Restaurant Owner / Food Truck Operator, addressed the Committee in support of the proposed 2014 Food Truck program. He indicated that the proposed all- inclusive licensing fee is a fair reasonable rate, given it incorporates an annual fee and the special event permits. He stated prior to opening a restaurant in the Duke Street Food Block, he primarily ran a Food Truck during summer months and annually paid $15,000. to $20,000. for special event permits. He noted in his experience each special event typically requires a permit that averages $1,000 per event. He further advised that if the Food Truck licensing fee was reduced to between $300. to $400. it would cause him to reconsider whether to renew his lease for the restaurant. In response to questions, Mr. Bluhm advised that staff did consult the City of Waterloo regarding their recommendation to expand Food Truck operations. He added that although the Waterloo BIA was generally supportive of expanding Food Truck operations; the grab and go restaurants in Uptown Waterloo were not supportive as they would be in direct competition with the Food Trucks. Councillor B. Vrbanovic brought forward a motion to refer the staff recommendation to the May 5, 2014 Council meeting with an added provision to permit food trucks within the BIA boundary and Civic Centre District as well as an adjusted fee that would more closely align with the licensing fees for restaurants. He commented that the proposed referral would allow time for members of Council and staff to review and make proposed changes to the 2014 Food Truck program. Councillor Y. Fernandes advised that she was generally supportive on the proposal; but, would also like to see further amendments to the number of Food Trucks being permitted in public parks including Budd Park and Southwest Optimist. She further advised that she would also like to see greater consideration to the Huron Business Park as a potential location to permit Food Truck operations. Councillor D. Glenn-Graham stated he would like to see a Food Truck program that aligned closer with the program being recommended by the City of Waterloo. He suggested that the licensing fee should be reduced to $350., comprising of $200. for the business license and $150. payable to the BIA. He further advised that he would also be in favour of a 20 meter distance separation between proposed food truck locations and existing restaurants. Questions were raised regarding the licensing fee and what factors were used in determining its amount. Ms. Harris advised that business licenses are intended to cover costs associated with the licensing process. She stated those costs include, but are not limited to: inspections, enforcement, and licensing. Councillor K. Galloway-Sealock expressed a desire to see a more collaborative approach between the municipalities within the Region throughout the 2014 pilot program to determine if a more collective approach could be taken regarding Food Truck operations. She requested that staff investigate the possibility of collecting damage deposits to ensure that Food Truck operators are held responsible for clean-up at the end of each event. She noted that damage deposits should also be considered as part of the 2015 business licensing fee review. On motion by Councillor B.Vrbanovic- it was resolved: "That consideration of the following motion be referred to May 5, 2014 Council meeting, to allow time for further review and possible changes to be brought forward regarding the 2014 Food Truck program: `That the following Food Truck program be implemented in 2014 to enable food truck owners to operate within the City of Kitchener throughout the week, in a manner that allows the entire community to experience food trucks, while simultaneously fostering positive relationships between food truck operators and existing restaurant operators: FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 28. 2014 -39 - CITY OF KITCHENER 3. FCS-14-071 - FOOD TRUCKS (CONT'D) • Parks — permit food trucks in McLennan Park, Huron Natural Area, Budd Park and Southwest Optimist Park, subject to restrictions where park permit holders are providing their own food services and subject to any limits to the number of trucks, as outlined in Finance and Corporate Services Department report FCS-14-071; • Huron Business Park — permit food trucks on any private property within Huron Business park provided they have obtained the property owner's permission; • Minimum distance setbacks — establish a 30 metre setback from restaurants unless permission received from restaurant owners within the distance separation; and establish a 90 metre setback from schools unless permission granted by the school; • Downtown Business Improvement Area (BIA) Boundary — permit food trucks within the BIA boundary during the following times only: • Monday lunch hours on Civic Square as programmed by The City of Kitchener; • As part of City-approved festivals and events (City and community); • As one-off promotional events between a restaurant(s) and a food truck(s), for a maximum period of 4 hours, provided all neighbouring restaurant do not object; • Thursdays between 4:00 p.m. and 10:00 p.m. on locations agreed upon between the City, Food Truck Operators and the KBIA (no limit on the number of trucks); • Pilot in Civic District where 1 to 3 food trucks would be permitted to operate on one evening per week; • Civic District - permit 1-3 food trucks to operate on a daily basis, in conjunction with the Centre in the Square; • Fees—That the following licensing fee structure be approved: o $ annually, which would include private property, park locations, and any City sponsored special events that the food trucks wished to be participants in; o In addition, there would be a $150.00 annual fee payable to the BIA fee to cover expenses such as marketing, music, etc. for the Thursday night program, if participating; and, That the above program be a pilot program in 2014 with a report to come back to Council in January 2015 with recommendations for 2015; and further, That all refreshment vehicle fees be reviewed before 2015 license fees are approved."' The Committee then recessed at 12:11 p.m. and reconvened at 12:17 p.m. Chaired by Councillor S. Davey,with all members present. 4. INS-14-013 - NATURAL GAS RATES CUSTOMER RESEARCH RESULTS AND PURCHASE POLICY OPTIONS The Committee considered Infrastructure Services Department report INS-14-013, dated April 16, 2014, requesting direction with respect to the Natural Gas Purchasing Policy options. Mr. Harald Drewitz and Ms. Trisha Wharton addressed the Committee expressing concerns regarding the natural gas rates customer research and the public engagement methods used to obtain feedback from residents on the Natural Gas Purchasing Policy. Mr. Drewitz stated, in his opinion, there was a lack of transparency and comparison information for the public to make an informed decision. FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 28. 2014 -40 - CITY OF KITCHENER 4. INS-14-013 - NATURAL GAS RATES CUSTOMER RESEARCH RESULTS AND PURCHASE POLICY OPTIONS (CONT'D) Messrs. W. Malcolm and Dave Kains, Metroline Research Group Inc. presented the report, stating that based on the customer research results and community engagement on natural gas rates, customers overall are satisfied with the service they receive from Kitchener Utilities. Mr. Kains indicated that across both surveys conducted, the majority of respondents chose stable rates over variable rates. Councillor K. Galloway-Sealock brought forward a motion to update the purchasing policy to incorporate a modified approach to provide customers with more stability than the phase-out fixed price option and would like 3 and 5 year timeframes examined with information on rail options to come back in May 2014. Councillor P. Singh suggested, and Councillor Galloway-Sealock agreed, that examination of a one-year time period would be included in the motion. The following motion was voted on and was Carried on a recorded vote with Mayor C. Zehr and Councillors K. Galloway-Sealock, B. laonndis, F. Etherington, B. Vrbanovic, D. Glenn- Graham, and P. Singh voting in favour; and, Councillors Y. Fernandes, S. Davey, Z. Janecki, and J. Gazzola voting in opposition. On motion by Councillor K. Galloway-Sealock- it was resolved: "That staff be directed to update the natural gas purchasing policy to reflect the Modify Current Hedging Approach option, outlined in Infrastructure Services Department report INS-14-013, for a timeframe of 1 year, 3 years and 5 years, with specific policy details and recommendations be provided at the May 12, 2014 Finance & Corporate Services Committee meeting." The Committee then recessed at 2:40 p.m. and reconvened at 9:10 p.m. Chaired by Councillor S. Davey,with all members present except Mayor C. Zehr. 5. FCS-14-055 - TERMS OF REFERENCE -NOMINATING COMMITTEE This matter was withdrawn and referred to the May 5, 2014 Committee of the Whole meeting. 6. CAO-14-024 - LAND DISPOSITION -55 BRAMM STREET Councillor P. Singh declared a pecuniary interest as members of his family own property in the vicinity of the subject area; and accordingly, he did not take part in any discussion or voting regarding this matter. The Committee considered Chief Administrator's Office report CAO-14-024, dated April 16, 2014, recommending that that the City enter into an agreement of purchase and sale for a .30 acre portion of 55 Bramm Street. On motion by Councillor Y. Fernandes- it was resolved: "The .30 acre portion of land forming part of 55 Bramm Street, owned by the City of Kitchener located at 55 Bramm Street depicted on the map (Schedule A) attached to Chief Administrator's Office report CAO-12-024, to be further described on a Reference Plan, be declared surplus, and the City enter into a conditional Agreement of Purchase and Sale with 2373074 Ontario Inc. (Momentum Developments) for fair market value, said transaction, to close on or before construction commences; and further, That the Mayor and Clerk be authorized to execute the necessary documentation to effect this transaction with 2373074 Ontario Inc., subject to the satisfaction of the City Solicitor." FINANCE AND CORPORATE SERVICES COMMITTEE APRIL 28. 2014 -41 - CITY OF KITCHENER 7. CAO-14-021 - REFURBISHING AND REINSTALLATION OF OKTOBERFEST GLOCKENSPIEL AT SPEAKER'S CORNER The Committee considered Chief Administrator's Office report CAO-14-021, dated April 15, 2014, recommending the reinstallation of the Oktoberfest Glockenspiel at Speaker's Corner. In response to questions, Mr. J. Willmer agreed to provide information on the City's in-kind commitments as well as clarifying the ownership of the Glockenspiel and maintenance costs prior to the May 5, 2014 Council meeting. In addition, he agreed to also provide information on the original funding source for the Glockenspiel and an identification of the Kitchener-Waterloo Oktoberfest Inc. community partners. On motion by Councillor B.Vrbanovic- it was resolved: "That the reinstallation of the Oktoberfest Glockenspiel at Speaker's Corner be approved, subject to the negotiation of a satisfactory agreement between the City of Kitchener and Kitchener-Waterloo Oktoberfest Inc.; and, That the City of Kitchener commit to funding 50% of the project cost, to a maximum of $196,000; and further, That the Mayor and Clerk be authorized to execute an agreement with Kitchener- Waterloo Oktoberfest Inc., to confirm respective responsibilities for the costs of refurbishing, installation, and ongoing maintenance of the Oktoberfest Glockenspiel, subject to satisfaction of the City Solicitor." 8. ADJOURNMENT On motion, this meeting adjourned at 9:30 p.m. D. Saunderson D. Livingstone C. Goodeve Committee Administrator Committee Administrator Committee Administrator