Loading...
HomeMy WebLinkAbout2015-12-07 FINANCE AND CORPORATE SERVICES COMMITTEE DECEMBER 7.2015 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 4:32 p.m. Present: Councillor S. Davey-Chair Mayor B. Vrbanovic and Councillors F. Etherington, Y. Fernandes, K. Galloway- Sealock, J. Gazzola, B. loannidis, Z. Janecki, 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 J. Readman,Acting Deputy CAO, Infrastructure Services R. Regier, Executive Director, Economic Development B. Bennett, Manager, Business Development S. DiDonato, Manager,Arts&Culture C. Goodeve, Committee Administrator 1. CAO-15-041 - ONTARIO CULTURE STRATEGY The Committee considered Chief Administrator's Office report CAO-15-041, dated November 23, 2015 recommending endorsement of submitting a feedback letter on the Ontario Culture Strategy discussion paper. On motion by Councillor B. loannidis- it was resolved: "That the feedback letter on the Ontario Culture Strategy discussion paper, as outlined in Appendix `1' of Chief Administrator's Office report CAO-15-041, be approved for submission to Mr. Kevin Finnerty, Assistant Deputy Minister, Ministry of Tourism, Culture and Sport." 2. CAO-15-040 - WATERLOO REGIONAL TOURISM MARKETING CORPORATION FUNDING 2016-2020 The Committee considered Chief Administrator's Office report CAO-15-040, dated November 5, 2015 recommending approval of the annual funding for the Waterloo Regional Tourism Marketing Corporation (WRTMC). At the request of Councillor J. Gazzola, it was agreed that the financial statements for the WRTMC would be circulated in advance of the December 14, 2015 Council meeting. On motion by Councillor B. loannidis- it was resolved: "That $90,000. in annual funding for the Waterloo Regional Tourism Marketing Corporation, be approved, for 2016-2020 from the Economic Development operating budget for five additional years to continue this region-wide shared services approach for Tourism, as outlined in Chief Administrator's Office report CAO-15-040." 3. CAO-15-038 - CREATIVE ENTERPRISE INITIATIVE (CEI)2016 FUNDING Councillor Y. Fernandes entered the meeting at this time. The Committee considered Chief Administrator's Office report CAO-15-038, dated November 25, 2015 regarding the 2016 funding allocation to Creative Enterprise Initiative (CEI). In addition, the Committee was in receipt this date of correspondence from Roger Farwell, Acting CEO of CEI, dated November 26, 2015 requesting the City of Kitchener to maintain its current annual funding contribution of$86,205., to enable the organization to wind down its operations in 2016. Mayor B.Vrbanovic and Councillor S. Marsh entered the meeting at this time. Mr. Roger Farwell and Ms. Deborah Currie, CEI, reviewed the contents of the circulated correspondence and responded to questions from the Committee. Mr. Farwell advised the organization underwent a full-scale review of its mandate,which resulted in two new priorities, FINANCE AND CORPORATE SERVICES COMMITTEE DECEMBER 7.2015 -85- CITY OF KITCHENER 3. CAO-15-038 - CREATIVE ENTERPRISE INITIATIVE (CEI)2016 FUNDING (CONT'D) being: to help people find entertaining things to do in Waterloo Region and facilitate creative projects that tie the Region together with innovative programming that promotes collaboration. He indicated it was identified that those priorities do not require the oversight of a stand-alone organization. Accordingly, it is proposed that over the next year CEI will seek to engage potential partners. He noted once the relevant partners have been identified and the assets have been adopted, the CEI Board would wind down the organization and dissolve. Responding to questions, Mr. Farwell agreed to provide an estimate with respect to the approximate dollar value attributed to CEI's assets; such as, grandsocial.ca. Additionally, he confirmed that the City of Cambridge has included a funding allocation to CEI in its 2016 budget. He noted that later this date, he would be appearing before Waterloo City Council to make a similar request for funding; and, would be addressing Regional Council regarding this matter on December 8, 2015. A motion was brought forward by Councillor P. Singh, to approve a 2016 Operating Grant to CEI in the amount of $30,000. and to have the remaining Arts Sustainability and 2016 Operating Grant funding, in the amount of with $60,805, transferred to the 2016 Tier 2 Grant process for allocation to emerging small or mid-sized organizations. An amendment was brought forward by Mayor B. Vrbanovic, to increase the 2016 Operating Grant to CEI from $30,000. to $46,805., and allocate the former Arts Sustainability funding, in the amount of$44,000., to the 2016 Tier 2 Grant process, as outlined in Report CAO-15-038. Mayor Vrbanovic's amendment was voted on and was Carried on a recorded vote, with Mayor B. Vrbanovic and Councillors K. Galloway-Sealock, S. Marsh, J. Gazzola, B. Ioannidis and Y. Fernandes voting in favour; and, Councillors D. Schnider, F. Etherington, S. Davey, P. Singh and Z. Janecki voting in opposition. The following motion was then voted on and was Carried on a recorded vote, with Mayor B. Vrbanovic and Councillors K. Gal loway-Sealock, S. Marsh, J. Gazzola, B. Ioannidis, D. Schnider, F. Etherington, S. Davey, P. Singh and Y. Fernandes voting in favour; and, Councillor Z. Janecki voting in opposition. On motion by Councillor P. Singh - it was resolved: "That$44,000. of the former Arts Sustainability' funding for emerging small or mid-sized organizations, be allocated through the 2016 Tier 2 Grant process, subject to consideration during the 2016 Budget deliberations; and, That a 2016 Operating Grant, in the amount of $46,805., be allocated to Creative Enterprise Initiative (CEI) as a final year of funding from the City of Kitchener, subject to consideration during the 2016 Budget deliberations and as per the conditions outlined in Option `A'of Chief Administrator's Office report CAO-15-038; and further, That the Waterloo Region Small Business Centre be directed to explore the possibility of providing grant writing assistance for arts organizations as a potential fit for their services." 4. CAO-15-042 - EXPANSION OF THE UNIVERSITY OF WATERLOO VELOCITY PROGRAMMING IN DOWNTOWN KITCHENER The Committee considered Chief Administrator's Office report CAO-15-042, dated November 20, 2015 regarding a requested funding contribution to expand the University of Waterloo (UW) Velocity startup ecosystem at The Tannery in Downtown Kitchener. Mr. B. Bennett presented the Report, advising the City has been requested to provide $500,000. up-front investment to purchase capital equipment and fund leasehold improvements for the expanded space. He added UW would be covering the operating costs for managing and staffing the expanded facility, which is expected to cost more than $10M FINANCE AND CORPORATE SERVICES COMMITTEE DECEMBER 7.2015 -86- CITY OF KITCHENER 4. CAO-15-042 - EXPANSION OF THE UNIVERSITY OF WATERLOO VELOCITY PROGRAMMING IN DOWNTOWN KITCHENER(CONT'D) Over the same five year period. Accordingly, the City's funding equates to only 5% of the total investment that would be provided by UW over the next five years. He indicated this is a good economic investment for the City as research shows that for each new high-tech job, five additional jobs are ultimately created outside of the high-tech sector. He noted with the expansion,Velocity would be the largest free startup incubator in North America. Responding to questions, Mr. Bennett highlighted that in the past four years, Velocity has helped to create over 800 jobs and 160 companies;with the survival rate after their first year at 81% and after four years 66%. He noted this is significantly higher than the US average of 48%. He indicated that should Velocity relocate from the Tannery space prior to the conclusion of their five year lease, a pro rata claw back provision of $100,000. per annum would be incorporated in the agreement,which would be returned to the City. He confirmed person does not need to have attended UW to take advantage of the Velocity program at the Tannery. He agreed to provide additional details regarding: the funding agreement; the projected expenses for this initiative; and, UW's financial contribution. He acknowledged the City would receive some form of recognition for its participation in this project. The following motion was then voted on and was Carried on a recorded vote, with Mayor B. Vrbanovic and Councillors K. Galloway-Sealock, S. Marsh, B. loannidis, D. Schnider, F. Etherington, S. Davey and P. Singh voting in favour; and, Councillors J. Gazzola, Z. Janecki and Y. Fernandes voting in opposition. On motion by Councillor B. loannidis- it was resolved: "That$500,000. be allocated from the Kitchener Economic Development Reserve Fund in support of the expansion of the University of Waterloo Velocity commercialization programs in Downtown Kitchener, bringing together the commercialization facilities of Velocity Garage, Foundry and Science in The Tannery, 151 Charles Street West, Innovation District, Kitchener, as outlined in Chief Administrator's Office report CAO-15- 042." 5. FCS-15-005 - COUNCIL'S ONE-THIRD TAX REMUNERATION -MUNICIPAL ACT, 2001 The Committee considered Finance and Corporate Services Department report FCS-15-005, dated November 26, 2015 concerning the continuation of a one-third tax free remuneration to Kitchener City Council. On motion by Councillor P. Singh - it was resolved: "That pursuant to Section 283 of the Ontario Municipal Act, 2001 (the Act), one-third of the remuneration paid to the elected members of Kitchener City Council continue as expenses incident to the discharge of their duties as members of the Council, as outlined in Finance and Corporate Services Department report FCS-15-005." 6. LIGHT RAIL TRANSIT(LRT) PROJECT COSTS Questions were raised regarding the potential financial impacts of four Light Rail Transit (LRT) related projects anticipated to be completed during the winter months. Mr. D. Chapman indicated two of the projects, one at Siebert Avenue and the other at Wilson Avenue, pertain to the replacement of underground infrastructure within the road right-of-way. Another is a crossing of railway lines on Ottawa Street; and, the fourth is a high pressure crossing at Courtland Avenue. He indicated staff are not able to provide cost estimates for those projects at this time. He pointed out the City still needs to receive the requirements from the rail lines and designs need to be finalized as well as the schedules. Unfortunately, nothing can be done to refine the costs of those projects until this additional information has been received. He acknowledged that staff would report back to Council as soon as possible to provide a greater sense as to the potential costs of those projects. FINANCE AND CORPORATE SERVICES COMMITTEE DECEMBER 7.2015 -87 - CITY OF KITCHENER 7. ADJOURNMENT On motion, this meeting adjourned at 6:55 p.m. C. Goodeve Committee Administrator