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Home My WebLink About2014-06-09 FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 9. 2014 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 9:05 a.m. Present: Councillor S. Davey-Chair Mayor C. Zehr, Councillors F. Etherington, Y. Fernandes, K. Galloway-Sealock, J. Gazzola, D. Glenn-Graham, 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 R. Hagey, Director, Financial Planning J. Gruenbauer, Manager, Regulatory Affairs&Supply P. Harris, Manager, Licensing S. Saleh, Supervisor of Collections and Payment Processing R. Morgan, Capital Investment Advisor D. Saunderson, Committee Administrator 1. FCS-14-098 - FAIR OR EXHIBITION GAMING EVENT LICENCE FOR KITCHENER- WATERLOO OKTOBERFEST Due to Councillor S. Davey's absence, Mayor C. Zehr assumed the Chair. The Committee considered Finance and Corporate Services Department report FCS-14-098, dated May 20, 2014 regarding a request for a Provincial Lottery Licence by the Kitchener- Waterloo Oktoberfest to hold a Fair or Exhibition Gaming Event being held at Bingamans from October 10 to October 18, 2014. On motion by Councillor Z. Janecki - it was resolved: "That the City of Kitchener has no objection to a Provincial Lottery Licence being issued to Kitchener-Waterloo Oktoberfest to hold a Fair or Exhibition Gaming Event from October 10 to October 18, 2014 at Bingeman's KOOL Haus tent, 425 Bingemans Centre Drive, Kitchener, as outlined in Finance and Corporate Services Department report FCS-14-098." 2. FCS-14-102 - REQUEST FOR REDUCED FEE -JOSEPH SCHNEIDER HAUS - HEART AND HAND FESTIVAL-SEPTEMBER 27,2014 The Committee considered Finance and Corporate Services Department FCS-14-102, dated May 23, 2014 regarding a request by Joseph Schneider Haus for a reduced licence fee for their Heart and Hand Festival being held on September 27, 2014. Ms. P. Harris was in attendance and responded to questions from the Committee. On motion by Councillor Z. Janecki - it was resolved: "That the licence fee for the Heart and Hand Festival on September 27, 2014 taking place at the Joseph Schneider Haus be reduced to $51.10, as outlined in Finance and Corporate Services Department report FCS-14-102." 3. FCS-14-101 - FEDERAL GAS TAX AGREEMENT The Committee considered Finance and Corporate Services Department report FCS-14-101, dated May 23, 2014 recommending the execution of the Municipal Funding Agreement for the Transfer of Federal Gas Tax Funds. Questions were raised regarding the eligible infrastructure categories and specifically what may be considered under the criteria of`Capacity Building'. Mr. D. Chapman advised that he did not have the eligibility criteria available this date, but could provide a follow up on this item as part of the 2015 Budget process. In addition, he agreed to circulate additional information summarizing the logistics of the financial indexing mentioned in Report FCS-14-101. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 9.2014 -45- CITY OF KITCHENER 3. FCS-14-101 - FEDERAL GAS TAX AGREEMENT(CONT'D) On motion by Councillor Z. Janecki - it was resolved: "That the Mayor and Clerk be authorized to execute the Municipal Funding Agreement, subject to the satisfaction of the City Solicitor, for the Transfer of Federal Gas Tax Funds, as outlined in Finance and Corporate Services Department report FCS-14-101; and further, That the City Treasurer be delegated the authority to administer the provisions of the Municipal Funding Agreement." 4. CAO-14-027 - DECLARATION OF SURPLUS AND SALE - VACANT LAND, COURTLAND AVENUE EAST AND BENTON STREET The Committee considered Chief Administrator's Office report CAO-14-027, dated April 16, 2014 recommending the lands located at the corner of Courtland Avenue East and Benton Street, be declared surplus. Mr. R. Morgan was in attendance and responded to questions from the Committee. On motion by Councillor Z. Janecki - it was resolved: "That the lands located at the corner of Courtland Avenue East and Benton Street, described as Part 9, 58R-16135, be declared surplus to the City's needs, and easements be granted to KW Hydro and the owner(s) of 145 Benton Street prior to the conveyance of the land and the land be conveyed to the owner(s) of 39 Courtland Avenue East at fair market value, as outlined in Chief Administrator's Office report CAO- 14-027; and further; That the Mayor and Clerk be authorized to execute any documentation required to create the easements and subsequently convey said lands; subject to the satisfaction of the City Solicitor." 5. INS-14-014 - NATURAL GAS PURCHASE POLICY REVIEW The Committee considered Infrastructure Services Department report INS-14-014, dated May 29, 2014 requesting direction with respect to the Natural Gas Purchasing Policy. Ms. P. Houston and Mr. J. Voss, Aegent Energy Advisors, presented the report and responded to questions from the Committee. Councillor P. Singh entered the meeting at this time. Mr. Harald Drewitz addressed the Committee in support of amending the Natural Gas Purchasing Policy to implement the Markey Responsive Portfolio and reducing the purchasing timeframe from 5 years to 3 years. Councillor S. Davey entered the meeting at this time and assumed the Chair. In response to questions, Ms. Houston agreed to provide additional information, outlining an estimated portfolio projection, summarizing the gas rates and percentage variances for the next two years. Councillor D. Glenn-Graham brought forward a motion to approve the recommendation contained in Report INS-14-014 with Option 2, to modify Council Policy 1-560 (Gas Purchase Policy)with a Market Responsive Portfolio Policy. Councillor J. Gazzola brought forward an amendment to modify the Natural Gas Purchasing Policy to return the City's purchasing of natural gas to the Spot Rate Market. The Chair ruled the motion out of order as the amendment was not germane to Councillor Glenn-Graham's motion. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 9.2014 -46- CITY OF KITCHENER 5. INS-14-014 - NATURAL GAS PURCHASE POLICY REVIEW (CONT'D) Councillor D. Glenn-Graham's motion was voted on and was Carried on a recorded vote, with Mayor C. Zehr and Councillors B. Vrbanovic, D. Glenn-Graham, F. Etherington, K. Galloway- Sealock and P. Singh voting in favour; and, Councillors J. Gazzola, S. Davey, Y. Fernandes and Z. Janecki voting in opposition. Councillor B. loannidis was absent and accordingly did not vote. On motion by Councillor D. Glenn-Graham- it was resolved: "That Council Policy 1-560 (Gas Purchase Policy) be modified to implement the Market Responsive Portfolio Policy, which includes a reduction in the purchasing timeframe from five years to three years and reduces the current minimum and maximum "rails" as set out in the revised policy criteria, as outlined in Appendix `B' of Infrastructure Services Department report INS-14-014." 6. FCS-14-103 - CENTRE IN THE SQUARE DEFERRED CAPITAL MAINTENANCE The Committee considered Finance and Corporate Services Department report FCS-14-103, dated May 27, 2014 recommending that the Centre in the Square be granted an additional $350,000. from the General Capital Contingency account to fund the costs of deferred capital maintenance. Mr. R. Hagey and Mr. M. Shantz, Chair of the Board of Directors for Centre in the Square, presented the report and responded to questions from the Committee. A motion was brought forward by Mayor C. Zehr to approve the recommendation contained in Report FCS-14-103. Councillor K. Galloway-Sealock brought forward a motion to grant the Centre in the Square $100,000. from the General Capital Contingency account to fund the costs of deferred capital maintenance and to defer consideration of granting an additional $250,000. following the completion of the Centre in the Square's Operational Review. In response to questions, Mr. D. Chapman advised that staff anticipate the report on the Centre in the Square Operational Review will be brought forward for consideration in August 25, 2014. Councillor Galloway-Sealock's deferral motion was then voted on by a recorded vote and was LOST on a tie, with Councillors F. Etherington, S. Davey, K. Gal loway-Sealock, P. Singh and Y. Fernandes voting in favour; and, Mayor C. Zehr and Councillors B. Vrbanovic, D. Glenn- Graham, J. Gazzola and Z. Janecki voting in opposition. Councillor B. Ioannidis was absent and accordingly did not vote. An additional motion was brought forward by Councillor K. Galloway-Sealock to amend Mayor Zehr's motion to approve a loan to the Centre in the Square in the amount of$350,000. rather than approving a grant, pending the results of the Centre in the Square's Operational Review. Councillor Galloway-Sealock's amendment was then voted on and was LOST on a recorded vote, with Councillors K. Galloway-Sealock, B. Vrbanovic and F. Etherington voting in favour; and, Mayor C. Zehr and Councillors D. Glenn-Graham, J. Gazzola, P. Singh, S. Davey, Y. Fernandes and Z. Janecki voting in opposition. Councillor B. Ioannidis was absent and accordingly did not vote. The following motion was then voted on and was Carried on a recorded vote, with Mayor C. Zehr and Councillors B. Vrbanovic, D. Glenn-Graham, J. Gazzola, Y. Fernandes and Z. Janecki voting in favour; and, Councillors F. Etherington, K. Galloway-Sealock, P. Singh and S. Davey voting in opposition. Councillor B. Ioannidis was absent and accordingly did not vote. On motion by Mayor C. Zehr- it was resolved: FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 9.2014 -47 - CITY OF KITCHENER 6. FCS-14-103 - CENTRE IN THE SQUARE DEFERRED CAPITAL MAINTENANCE (CONT'D) "That $350,000. be approved to the Centre in the Square from the General Capital Contingency account to fund the costs of deferred capital maintenance, as outlined in Finance and Corporate Services Department report FCS-14-103." 7. FCS-14-095 - POSTAGE RATE INCREASE The Committee considered Finance and Corporate Services Department report FCS-14-095, dated April 24, 2014 recommending that staff be directed to reduce future postage costs by promoting and implementing alternative ways for customers to view their bills and to develop strategies to address any current postage budget shortfall as part of the 2015 budget planning process. Mr. S. Saleh was in attendance and responded to questions from the Committee. At the request of Councillor J. Gazzola, staff agreed, as part of the 2015 Budget planning process, to include additional information summarizing the full cost of e-post, including: human resources; supplies; and, equipment. At the suggestion of Councillor S. Davey, staff agreed to investigate a grandfathering clause that would permit residents currently receiving paper bills to continue receiving them at no penalty as long as there is no change in their account status. On motion by Councillor B.Vrbanovic- it was resolved: "That staff be directed to promote e-post, and implement alternative ways for customers to view and print their bills as part of the SAP billing system implementation (option #3 in FCS-14-095) to reduce future postage costs, as outlined in Finance and Corporate Services Department report FCS-14-095; and further, That staff be directed to develop strategies to address any current postage budget shortfall as part of the 2015 budget planning process." 8. FCS-14-069 -2013 DEVELOPMENT CHARGE RESERVE FUND Pursuant to Chapter 25.10.9(J) (Procedure) of the Municipal Code, a motion was brought forward by Councillor Y. Fernandes to discuss the 2013 Development Charge Reserve Fund, as it is listed on the Agenda as an information item. Councillor Fernandes' motion was then voted on and was Carried. The Committee considered Finance and Corporate Services Department report FCS-14-069, dated April 7, 2014 regarding the City's annual statement of the Development Charge Reserve Fund. Mr. D. Chapman was in attendance and responded to questions from the Committee. 9. ADJOURNMENT On motion, this meeting adjourned at 12:36 p.m. D. Saunderson Committee Administrator