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HomeMy WebLinkAbout2014-08-11 FINANCE AND CORPORATE SERVICES COMMITTEE AUGUST 11, 2014 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 10:01 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. Seiling,Acting Deputy CAO, Community Services C. Tarling, Director, Legislated Services &City Clerk W. Malcolm, Director of Utilities L. MacDonald, Director, Legal Services &City Solicitor B. Bennett, Manager, Business Development R. Morgan, Capital Investment Advisor C. Goodeve, Committee Administrator 1. FCS-14-049 - EXTERNAL AUDIT SERVICES The Committee considered Finance and Corporate Services Department report FCS-14-049, dated July 22, 2014 recommending the appointment of KPMG LLP, as the City's External Auditor. On motion by Councillor B. loannidis- it was resolved: "That Proposal P14-042, Audit Services, be awarded to KPMG LLP, Waterloo, Ontario, at their proposed price of$733,400 plus H.S.T. of$95,342 for a total of$828,742, for a five (5) year term beginning with the fiscal year ending December 31, 2014 for the Corporation of the City of Kitchener, its boards and enterprises, Kitchener Housing Inc. and Kitchener Non-Profit Property Management Inc. and for a five (5) year term beginning with the fiscal year ending May 31, 2015 for Waterloo Region Municipalities Insurance Pool; and further, That section 1.1 of Chapter 103 (Auditor)of Kitchener's Municipal Code be amended to effect the appointment of KPMG LLP as the City's Auditor, as outlined in Finance and Corporate Services Department report FCS-14-049." 2. FCS-14-137 - DELEGATED AUTHORITY-TENDERS -FALL 2014 The Committee considered Finance and Corporate Services Department report FCS-14-137, dated July 30, 2014 requesting the delegation of authority to the Chief Administrative Officer for any tenders which may need to be dispensed with between the period of September 16 through to November 30, 2014. On motion by Councillor B. loannidis- it was resolved: "That, notwithstanding Chapter 115 (Corporate Leadership Team) of Kitchener's Municipal Code, the Chief Administrative Officer shall approve any tenders which otherwise cannot be brought before Council in a timely manner between the period of September 16 through November 30, 2014, provided that the total costs are within the approved budgets contained in the relevant departmental budgets and that a report regarding these tenders is brought to Council at its next regular meeting; and further, That notwithstanding Chapter 170 (Purchasing and Materials Management) of Kitchener's Municipal Code, the Director of Supply Services be authorized to execute any agreements pertaining to tenders approved by the Chief Administrative Officer between the period of September 16 through November 30, 2014, as outlined in Finance and Corporate Services Department report FCS-14-137." FINANCE AND CORPORATE SERVICES COMMITTEE AUGUST 11. 2014 -51 - CITY OF KITCHENER 3. FCS-14-139 - DELEGATED AUTHORITY- "LAME DUCK" COUNCIL The Committee considered Finance and Corporate Services Department report FCS-14-139, dated July 23, 2014 requesting approval that if Section 275 of the Municipal Act comes into effect, the Chief Administrative Officer is granted the authority to approve expenditures or other liabilities with a value in excess of$50,000. On motion by Councillor B. loannidis- it was resolved: "That, in the event the provisions of Section 275 of the Municipal Act, as amended, come into force and effect between Nomination Day and the end of the outgoing Council's term, the Chief Administrative Officer is granted authority to approve expenditures or other liabilities which are currently unbudgeted and with a value in excess of$50,000.00; and, That the Mayor and Clerk be authorized to execute agreements that have been approved by the Chief Administrative Officer during this period, subject to the satisfaction of the City Solicitor; and further, That any approvals granted by the Chief Administrative Officer during this period be reported to Council for information at the earliest opportunity following the Inaugural Meeting of the new Council, as outlined in Finance and Corporate Services Department report FCS-14-139." 4. FCS-14-140 - DELEGATED AUTHORITY-ROUTINE BUSINESS PROCESS The Committee considered Finance and Corporate Services Department report FCS-14-140, dated July 30, 2014 proposing the delegation of authority to the Chief Administrative Officer to execute encroachment agreements, agreements with Hydro One Networks Inc. and the disposition and acquisition of land where the total value is $125,000 or less. Ms. L. Macdonald reviewed the report and responded to questions from the Committee. Councillor P. Singh entered the meeting at this time. On motion, Mayor C. Zehr brought the recommendation contained in Report FCS-14-140 forward for consideration. Councillor J. Gazzola expressed concerns that this matter was being brought forward at the end of the current term of Council, suggesting that it should be dealt with by the next Council as they would be the ones impacted by the proposed delegation of authority. A motion was brought forward by Councillor Gazzola to defer consideration of the staff recommendation until after the new Council is inaugurated on December 1, 2014. Several members spoke to the efficiencies that would be gained through the proposed delegation of authority, given the routine nature of the subject business practices. It was noted that it is more appropriate for this Council to consider this matter, as the new Council may be unfamiliar with what is proposed to be delegated to staff. Councillor P. Singh suggested that a follow-up report should be provided on this matter by the end of 2015 to outline the efficiencies that have been gained as a result of delegating this authority to staff. Councillor Gazzola's deferral motion was then voted on and was LOST on a recorded vote with Councillors D. Glenn-Graham, Y. Fernandes, J. Gazzola and Z. Janecki voting in favour; and, Mayor C. Zehr and Councillors B. loannidis K. Gal loway-Sealock, B. Vrbanovic, F. Etherington, P. Singh and S. Davey voting in opposition. The following motion was then voted on and was Carried on a recorded vote with Mayor C. Zehr and Councillors D. Glenn-Graham, B. loannidis, K. Galloway-Sealock, B. Vrbanovic, F. Etherington, P. Singh and S. Davey voting in favour; and, Councillors Y. Fernandes, J. Gazzola and Z.Janecki voting in opposition. FINANCE AND CORPORATE SERVICES COMMITTEE AUGUST 11. 2014 -52 - CITY OF KITCHENER 4. FCS-14-140 - DELEGATED AUTHORITY-ROUTINE BUSINESS PROCESS (CONT'D) On motion by Mayor C. Zehr- it was resolved: "That, the Chief Administrative Officer be authorized to execute encroachment agreements satisfactory to the City Solicitor to legalize any encroachments which have been reviewed and supported by the appropriate staff, provided the agreement is consistent with Council's past practice and contains a provisions which would allow the termination of the agreement; and, That, the CAO be authorized to execute agreements with Hydro One Networks Inc., satisfactory to the City Solicitor, for the purpose of the City accessing Hydro One lands to carry out various works on Hydro One lands or on adjacent City lands and/or to encroach on Hydro One Networks Inc.'s lands as required, provided that any associated costs are within the approved budgets contained in the relevant departmental budgets; and, That, the CAO be authorized to approve the disposition and acquisition of interests in land (fee simple, easement, or right-of-way) including executing any documentation, satisfactory to the City Solicitor, to facilitate municipal requirements, needs or purposes in support of approved programs or projects on the following conditions: • the total value of the land is $125,000 or less, excluding transactional costs such as applicable taxes, due diligence costs, real estate, legal, surveying and other conveyancing costs; and, • the total costs for the acquisition of the land (value of land and transactional costs) are within the approved budgets contained in the relevant departmental budgets; and, • the land on its own is not developable (save and except this caveat does not apply should the lands be required for the Region's LRT project); and, • the CAO, a DCAO or the City Solicitor has not otherwise referred the specific acquisition or disposition to City Council for approval despite this resolution; and, • staff in the relevant division(s) has confirmed the appropriateness of acquisition or disposition of the land; and further, • in respect of the disposition of any lands, that the requirements of Chapter 177 of the City of Kitchener Municipal Code are complied with, save and except for any requirement to declare the lands surplus, which declaration shall not be required when disposing of land in accordance with the foregoing, as outlined in Finance and Corporate Services Department report FCS-14-140." 5. INS-14-015 - NATURAL GAS RATES The Committee considered Infrastructure Services Department report INS-14-015, dated July 31, 2014 recommending approval of the annual natural gas rate increases. Mr. W. Malcolm reviewed the report and responded to questions from the Committee. On motion, Councillor J. Gazzola brought the recommendation contained in Report INS-14- 015 forward for consideration with a modification to reduce the daily fixed rate for M1 customers to $0.70, as opposed to $0.73. In response to questions, Ms. P. Houston cautioned that the rates outlined in Report INS-14- 015 were put forward based on the approved 2014 Budget. She indicated that the proposed change to the daily fixed rate would equate to a reduction of approximately $700,000 in anticipated revenues. Mr. D. Chapman added that there are only two scenarios to accommodate the proposed rate reduction. The first would be to make up the difference through future rate increases. He noted the other alternative would be to amend the 2014 Budget to reflect the reduction in revenue, which would have an impact on various capital projects. FINANCE AND CORPORATE SERVICES COMMITTEE AUGUST 11. 2014 -53 - CITY OF KITCHENER 5. INS-14-015 - NATURAL GAS RATES (CONT'D) Councillor K. Galloway-Sealock requested that additional information be provided by the August 25, 2014 Council meeting outlining the potential impact of reducing the daily fixed rate for M1 customers from $0.73 to $0.70. Councillor Y. Fernandes asked that information be provided with respect to the current balances for the Gas Supply, Gas Transportation and Gas Delivery stabilization reserves. In addition, she requested information elaborating on the charges under the Gas Supply rate related to natural gas commodity,fuel and administration. Councillor B. Vrbanovic proposed that the additional information on the impact of the rate reduction should also include an overview of the capital projects that would be affected due to the subsequent amendments to the 2014 Budget. Councillor D. Glenn-Graham requested that further information be provided for the August 25, 2014 Council meeting indicating the impact if the rate was only lowered to $0.72 as well as the impact if it was lowered to $0.71. A motion was brought forward by Councillor Glenn-Graham, to defer consideration of Councillor Gazzola's motion to the August 25, 2014 Council meeting to allow time for additional information to come forward regarding the potential impacts of the proposed change to the daily fixed rate for M1 customers. The following motion was then voted on and was Carried on a recorded vote with Councillors D. Glenn-Graham, Y. Fernandes, K. Galloway-Sealock, B. Vrbanovic, F. Etherington, P. Singh and S. Davey voting in favour; and Mayor C. Zehr and Councillors J. Gazzola, B. Ioannidis and Z. Janecki voting in opposition. On motion by Councillor D. Glenn-Graham- it was resolved: "That consideration of the recommendation be referred to the August 25, 2014 Council meeting to allow time for additional information to be provided regarding the impact of the proposed change to the daily fixed rate for M1 customers: `That the supply component of the natural gas rates be increased to 19.0 cents per cubic meter from 16.5 cents per cubic meter for system gas customers of the City of Kitchener effective September 1, 2014;and, That the transportation component of the natural gas rate be decreased to 3.0 cents per cubic meter from 4.0 cents per cubic meter for system gas customers of the City of Kitchener effective September 1, 2014;and further, That the delivery components of the natural gas rates be changed as proposed in Infrastructure Services Department report INS-14-015 - Appendix A for all Kitchener delivery customers effective September 1, 2014, except for the daily fixed rate for M 1 customers which will be set at$0.70, as opposed to$0.73. 6. CAO-14-035 - BROWNFIELD REMEDIATION PROGRAM APPLICATION - 445 KING STREET WEST Councillor P. Singh declared a pecuniary interest as members of his family own property in the vicinity of 445 King Street West; and accordingly, he did not take part in any discussion or voting regarding this matter. The Committee considered Chief Administrator's Office report CAO-14-035, dated July 9, 2014, recommending approval of a Brownfield Remediation Program Application from 2335945 Ontario Inc. for 445 King Street West. Mr. R. Morgan presented the report and responded to questions from the Committee. FINANCE AND CORPORATE SERVICES COMMITTEE AUGUST 11. 2014 -54- CITY OF KITCHENER 6. CAO-14-035 - BROWNFIELD REMEDIATION PROGRAM APPLICATION - 445 KING STREET WEST(CONT'D) The following motion was voted on and was Carried on a recorded vote with Mayor C. Zehr and Councillors D. Glenn-Graham, B. loannidis, K. Galloway-Sealock, B. Vrbanovic, F. Etherington, Z. Janecki, Y. Fernandes and S. Davey voting in favour; and, Councillor J. Gazzola voting in opposition. Councillor P. Singh had declared a pecuniary interest and accordingly did not vote. On motion by Councillor B.Vrbanovic- it was resolved: "That the Brownfield Remediation Program Application for 445 King Street West, received from 2335945 Ontario Inc. dated July 2, 2013, be approved; and, That in exchange for a completed and filed Record of Site Condition for the subject property, the owner will be provided a grant in the form of an annual rebate on City taxes in an amount equal to 100%of the City Tax Increment; and, That the City Tax Increment be defined as the difference between the City portion of real property taxes for the 2013 Taxation Year and the new City portion of real property taxes levied as a result of a new assessment by the Municipal Property Assessment Corporation (MPAC) following completion of the project, as compensation for the remediation of the above subject lands; and, That the annual City property tax grant is estimated to be$245,547, payable for 4 years with $148,135, being paid on the fifth and final year following re-assessment by MPAC provided that the City's total property tax grant shall not exceed $1,130,323.00 for this project; and, That the Region of Waterloo Brownfield Coordinator be circulated a copy of any decision made by Kitchener City Council regarding this Application; and further, That the Mayor and Clerk be authorized to execute an Agreement, subject to the satisfaction of the City Solicitor, with the Region of Waterloo and 2335945 Ontario Inc., to implement the provisions of the Brownfield Remediation Program Application for 445 King Street West, as outlined in Chief Administrator's Office report CAO-14-035." 7. ADJOURNMENT On motion, this meeting adjourned at 11:51 a.m. C. Goodeve Committee Administrator