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HomeMy WebLinkAbout2015-10-19 FINANCE AND CORPORATE SERVICES COMMITTEE OCTOBER 19. 2015 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 9:35 a.m. Present: Councillor S. Davey - Chair Mayor B. Vrbanovic and Councillors F. Etherington, K. Galloway-Sealock, J. Gazzola, B. loannidis, S. Marsh, D. Schnider and P. Singh. Staff: J. Willmer, Chief Administrative Officer D. Chapman, Deputy CAO, Finance & Corporate Services M. May, Deputy CAO, Community Services D. Tyagi, Deputy CAO, Infrastructure Services W. Malcolm, Director, Utilities L. MacDonald, Director, Legal Services S. DiDonato, Manager, Arts & Culture, Economic Development D. Livingstone, Committee Administrator D. Saunderson, Committee Administrator 1. FCS-15-152 - FRANCHISE AGREEMENT - GRAND RIVER AND HIGHWAY 401 - UNION GAS Pursuant to Chapter 25 (Procedure) of the Municipal Code, a motion was brought forward by Councillor J. Gazzola to discuss a Consent item, which was voted on and was Carried. The Committee considered Finance and Corporate Services Department report FCS-15-152, dated October 8, 2015, requesting approval of the Draft By-law and a Franchise Agreement for Union Gas Limited to continue to operate in the Highway 401/Grand River Area. Ms. L. MacDonald was in attendance and responded to questions regarding the Franchise Agreement. The following motion was voted on by a recorded vote and was Carried, with Mayor B. Vrbanovic and Councillors K. Galloway-Sealock, D. Schnider, S. Marsh, F. Etherington, P. Singh, B. loannidis and S. Davey voting in favour; and, Councillor J. Gazzola, voting in opposition. Councillors Y. Fernandes and Z. Janecki were absent and accordingly did not vote. On motion by Mayor B. Vrbanovic - it was resolved: "That Council consents to Union Gas Limited securing a franchise to construct and operate works for the distribution, transmission and storage of natural gas to the inhabitants of the City of Kitchener located within the area of the City of Kitchener bounded by the Grand River (north and west boundary), Highway 401 (south boundary) and the municipal boundary of the City of Kitchener (east boundary) (herein referred to as the "401/Grand River Area"), as highlighted on the map attached to Finance and Corporate Services Department report FCS-15-152; and, That Council approves the form of draft by-law and franchise agreement attached to Report FCS-15-152 provided said documents are satisfactory to the City Solicitor and Council hereby authorizes the submission thereof to the Ontario Energy Board for approval pursuant to the provisions of Section 9 of The Municipal Franchises Act; and further, That Council understands that the Ontario Energy Board may make an Order declaring and directing that the assent of the municipal electors to the draft by-law and franchise agreement attached to Report FCS-15-152 pertaining to the 401/Grand River Area of The Corporation of the City of Kitchener is not necessary pursuant to the provisions of Section 9(4) of the Municipal Franchises Act." 2. FCS-15-145 - REEP GREEN SOLUTIONS 2015 FUNDING REQUEST The Committee considered Finance and Corporate Services Department report FCS-15-145, dated September 25, 2015 requesting $30,000. to be allocated to the Waterloo Region Green Solutions, Residential Energy Efficiency Project (REEP), as part of the Environmental Committee's 2016 Operating Budget. In addition, the Committee was in receipt this date of an FINANCE AND CORPORATE SERVICES COMMITTEE OCTOBER 19. 2015 - 61 - CITY OF KITCHENER 2. FCS-15-145 - REEP GREEN SOLUTIONS 2015 FUNDING REQUEST (CONT'D) email from Mr. C. Goodeve, dated October 19, 2015 providing a summary of the funding provided to REEP from the City of Kitchener. Ms. M.J. Patterson and Mr. D. Blake addressed the Committee in support of the funding request in the amount of $30,000., which is a $2,500. increase from the 2015 funding allocation from the City of Kitchener. Ms. Patterson reviewed the ongoing projects and initiatives undertaken by REEP and explained reasons for the requested increase. She noted that property taxes for the REEP House for Sustainable Living have increased by a net amount of$4,000. per year and the overall funding request from the City has not increased since 2011. In response to questions, Mr. D. Chapman agreed to follow-up with Ms. Patterson and the Municipal Property Assessment Corporation regarding the property tax increase and to provide the information to Council. He further responded that the process for allocating the annual REEP request for funding could be reviewed in future years, noting that it is currently funded through the Environmental Committee's operating budget and administered through Legislated Services. Councillors J. Gazzola and S. Davey questioned the 2014-2015 financial report for the fiscal year ending March 31, 2105, included in Report FCS-15-145 as Appendix `B', noting that the current financial position for the fiscal year ending March 31, 2016 is not clear. In response to questions, Ms. Patterson agreed to provide information to the Committee containing the debt position and projections for the current fiscal year. On motion by Mayor B. Vrbanovic, the recommendation within Report FCS-15-145 was brought forward for consideration. A motion was brought forward by Councillor Gazzola to amend the funding allocation to $28,000. as the financial information provided in the Report would seem to indicate a projected positive position for the end of the current fiscal year. In addition, he noted that the increase of $500. would be similar to the proposed 2016 incremental increase for other organizations. Councillor Gazzola's motion was voted on by a recorded vote and was LOST, with Councillors J. Gazzola and S. Davey voting in favour; and, Mayor B. Vrbanovic and Councillors P. Singh, S. Marsh, F. Etherington, D. Schnider, B. Ioannidis, and K. Galloway-Sealock voting in opposition. Councillors Y. Fernandes and Z. Janecki were absent and accordingly did not vote. On motion by Mayor B. Vrbanovic - it was resolved: "WHEREAS the City of Kitchener has provided annual core funding for Waterloo Region Green Solutions, Residential Energy Efficiency Project (REEP) since 2000; and, WHEREAS the work that REEP does is valuable to the citizens of Kitchener; and, WHEREAS core funding for registered charities and social enterprises such as REEP is critical to such organizations' survival; and, THEREFORE BE IT RESOLVED that subject to the 2016 budget deliberations, $30,000. be allocated to the Waterloo Region Green Solutions, Residential Energy Efficiency Project (REEP), as part of the Environmental Committee's 2016 Operating Budget, as outlined in Finance and Corporate Services Department report FCS-15-145." 3. CAO-15-030 - ARTS SUSTAINABILITY FUNDING REVIEW The Committee considered Chief Administrator's Office report CAO-15-030, dated September 187 2015 regarding the recommendations from the "Review of Per Capita/Arts Sustainability Funding and Municipal Funding Models for Key Cultural Institutions", completed by Angela Birdsell Inc., dated September 2015. Ms. S. DiDonato was in attendance to respond to questions from the Committee. FINANCE AND CORPORATE SERVICES COMMITTEE OCTOBER 19. 2015 - 62 - CITY OF KITCHENER 3. CAO-15-030 - ARTS SUSTAINABILITY FUNDING REVIEW (CONT'D) Mr. Bryce Kraeker, Kitchener Waterloo Art Gallery (KWAG), gave a presentation in support of the Birdsell Report, advising implementation of the recommendations would provide a solid basis to streamline funding for key cultural organizations and improve transparency and accountability. He provided an overview of the mandate, mission, products and services of KWAG as well as the breakdown of the revenue and funding bodies. He emphasized the need to support cultural pillar organizations, such as KWAG, which in turn strengthen the economy. He expressed appreciation to the City for the support and sustainability funding received since the Arts Sustainability Fund model was implemented. Mr. D. Marskell, THEMUSEUM, gave a presentation summarizing the positive programs and partnerships accessible through THEMUSEUM. He indicated that although generally supportive of the Birdsell Report, he clarified information contained within the Report, advising that the five-year average of municipal funding is about 25%, not 41% as indicated. He stated that the organization must generate over 70% annually, which is not a sustainable model. He encouraged the City to continue funding THEMUSEUM, as the organization is underfunded and not eligible for provincial and federal funding. Mr. A. Bennett, KW Symphony, addressed the Committee in support of the recommendations within the Report which will streamline funding across the major cultural organizations within the Region. He reviewed the programs and initiatives undertaken by the KW Symphony and attributed their success to the funding provided by the City of Kitchener. Mr. J. Willmer responded to questions regarding the recommendations within the Report related to the Per Capita/Arts Sustainability funding. He advised that the recommendations, as printed within Report CAO-15-030, allow the Councils of the Cities of Kitchener, Waterloo and the Region of Waterloo to move toward implementation of the five recommendations of the Birdsell Report and to be better informed on the refreshed mandate of the Creative Enterprise Initiative that will be presented at the joint Council meeting of November 13, 2015. At the request of Councillor S. Davey, Mr. Willmer agreed to report back on the per capita investment to arts and culture by the City of Kitchener, with information on how the City's arts and culture funding compares to other municipalities across Canada. On motion by Councillor K. Galloway-Sealock, the recommendation within Report CAO-15-030 was brought forward for consideration, with added direction in Clause 2, for staff to report back at the December 7, 2015 Finance and Corporate Services Committee meeting following the refreshed mandate for CEI. At the request of Councillor F. Etherington, Clauses 2 and 3 were voted on separately and Carried. On motion by Councillor K. Galloway-Sealock- it was resolved: "That based on the five recommendations of the "Review of Per Capita / Arts Sustainability Funding and Municipal Funding Models for Key Cultural Institutions - Executive Summary", as outlined in Appendix `1' of Chief Administrator's Office report CAO-15-030, staff be directed to implement the following: 1. a) That the "Per Capita" and "Arts Sustainability" funding nomenclature be retired; and, b) That the former "Arts Sustainability" funding to the City of Kitchener's key cultural institutions, being: Kitchener-Waterloo Symphony, Kitchener- Waterloo Art Gallery and THEMUSEUM be maintained at its current level and allocated in combination with the funding already provided to those organizations through the Tier 1 Grant process; and, 2. That the remaining (projected) $44,000. of the former `Arts Sustainability' funding for emerging small or mid-sized organizations, be allocated through FINANCE AND CORPORATE SERVICES COMMITTEE OCTOBER 19. 2015 - 63 - CITY OF KITCHENER 3. CAO-15-030 - ARTS SUSTAINABILITY FUNDING REVIEW (CONT'D) the Tier 2 Grant process, or otherwise held in reserve for arts and cultural investment, with staff to report back to the December 7, 2015 Finance and Corporate Services Committee meeting on the completed refreshed mandate for the Creative Enterprise Initiative (CEI); and, 3. That staff be directed to work with municipal partner organizations to review future funding for CEI based on its refreshed mandate; and, 4. That, together with municipal partner organizations, a collaborative funding and assessment process be established for the four Regionally identified key cultural institutions, being: Kitchener-Waterloo Symphony, Kitchener- Waterloo Art Gallery, Canadian Clay and Glass Gallery and THEMUSEUM, in the form of a pilot program based on the model recommended in Appendix `1'; and further, 5. That a regular communication mechanism be formalized between all municipal funders regarding arts and cultural investment in the Region of Waterloo." 4. INS-15-090 - SUPPORT TO DOWNTOWN BUSINESSES DURING LIGHT RAIL TRANSIT CONSTRUCTION This item was withdrawn and will be rescheduled at a future meeting. 5. CAO-15-036 - 2015 BUSINESS PLAN STATUS REPORT Pursuant to Chapter 25.10.9(5) (Procedure) of the Municipal Code, a motion was brought forward by Councillor K. Galloway-Sealock to discuss an Information Item, which was voted on and was Carried. The Committee considered Chief Administrators Office Department report CAO-15-036, dated September 29, 2015, which provides the second of three updates on the status of the 2015 corporate and divisional projects as of August 31, 2015. Mr. M. May responded to questions regarding the Jack Couch Ball Park Review divisional project. The Committee recessed at 11:26 a.m. and reconvened at 1:05 p.m. 6. INS-15-067 - NATURAL GAS RATES The Committee considered Infrastructure Services Department report INS-15-067, dated October 2, 2015 recommending approval of the annual natural gas rate changes. Mr. W. Malcolm was in attendance and responded to questions from the Committee. Mr. Harald Drewitz expressed concerns with the proposed rate decrease as outlined in Report INS-15-067. He stated that in his opinion the gas supply rate should be decreased lower than 10.5 cents, and suggested that Kitchener Utilities should revert back to the Gas Purchasing Policy that was used prior to April 1998. Councillor Z. Janecki entered the meeting at this time. In response to questions, Mr. D. Chapman agreed to provide further information prior to the Council meeting regarding the last instance when a rate increase was approved. The following motion was voted on and Carried unanimously with all members present, on recorded vote. Councillor Y. Fernandes was absent and accordingly did not vote. On motion by Councillor K. Galloway-Sealock- it was resolved: FINANCE AND CORPORATE SERVICES COMMITTEE OCTOBER 19. 2015 - 64 - CITY OF KITCHENER 6. INS-15-067 - NATURAL GAS RATES (CONT'D) "That the supply component of the natural gas rates be decreased to 10.5 cents per cubic meter from 19.0 cents per cubic meter for system gas customers of the City of Kitchener effective November 1, 2015, as outlined in Infrastructure Services Department report INS-15-067; and, That the transportation component of the natural gas rate be increased to 4.0 cents per cubic meter from 3.0 cents per cubic meter for system gas customers of the City of Kitchener effective November 1, 2015; and further, That the delivery components of the natural gas rates be changed for all Kitchener delivery customers effective November 1, 2015, as outlined in Appendix `A' of Report INS-15-067." 7. FCS-15-117 - AUGUST 2015 VARIANCE REPORT Pursuant to Chapter 25.10.9(5) (Procedure) of the Municipal Code, a motion was brought forward by Councillor J. Gazzola to discuss an Information Item, which was voted on and was Carried. The Committee considered Finance and Corporate Services Department report FCS-15-117, dated October 6, 2015, providing an overview of the financial performance and the variances in comparison to the 2015 Budget. In response to questions, Mr. D. Chapman agreed to follow up on whether the City would be permitted to charge taxes on the future Light Rail Transit (LRT) stations. 8. ADJOURNMENT On motion, this meeting adjourned at 1:40 p.m. D. Livingstone D. Saunderson Committee Administrator Committee Administrator