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HomeMy WebLinkAboutFinance & Corp - 2004-03-22FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 22~ 2004 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 12:40 p.m. Present: Chair - Councillor B. Vrbanovic Mayor C. Zehr and Councillors M. Galloway, J. Smola, and G. Lorentz. Staff: J. Fielidng, Chief Administrative Officer G. Sosnoski, General Manager of Corporate Services & City Clerk P. Houston, General Manager of Financial Services & City Treasurer F. Pizzuto, General Manager of Downtown Development & Community Services C. Ladd, General Manager of Strategic Services G. Stewart, General Manager Development and Technical Services R. Pitfield, Director Corporate Communications/Marketing D. Paterson, Director of Human Resources L. Proulx, Director of Facilities Management D. Quinn, Director of Utilities F. McCrea, Assistant City Solicitor J. Sheryer, Assistant City Solicitor E. Harris, Co-ordinator Arts and Culture R. Gosse, Deputy City Clerk CSD-04-060 - PARKING AGREEMENT - OUTDOOR MARKET ON EBY STREET AND MARKET LANE The Committee was in receipt of Community Services Department report CSD-04-060, dated March 17, 2004 dealing with a parking agreement to accommodate an outdoor market on Eby Street and Market Lane. J. Sheryer requested a minor amendment to the wording of the recommendation by removing the word 'displaced' in the second paragraph and inserting in lieu thereof 'who temporarily lose access to parking'. The Committee agreed to the requested amendment. On motion by J. Smola - it was resolved: "That the Mayor and Clerk be authorised to sign a lease agreement with the owner of 8 Moyer Place for the purpose of new surface and landscape treatment, in exchange for the temporary accommodation of parking to serve local business unable to access parking on their own property during the months of May to October on Saturday's market from 3am to 3pm for reasons outlined in Report No. CSD-04-060, and further; That staff be authorised to arrange for alternate parking for any property owner who temporarily lose access to parking as a result of the operation of an outdoor market on Eby Street and market Land on Saturdays during the hours of 3am to 3pm from May to October, and further; That staff be directed to prepare a by-law for Council approval to temporarily close portions of Eby Street and Market Lane during Saturday market days during the hours of 3am to 3pm from May to October." 2. CRPS-04-038 - APPOINTMENT OF DEPUTY CLERKS PRO TEMPORE The Committee was in receipt of Corporate Services Department report CRPS-04-038, dated March 17, 2004 dealing with the appointment of Deputy Clerks Pro Tempore. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 22, 2004 - 40 - CITY OF KITCHENER 2. CRPS-04-038 - APPOINTMENT OF DEPUTY CLERKS PRO TEMPORE (CONT'D) On motion by J. Smola - it was resolved: "That Chapter 113 (City Clerk - Acting) of the Municipal Code be amended as follows: · The Chapter be re-titled as Deputy City Clerk- Pro Tempore · Reference to Mr. L. W. Neil and the position of Acting City Clerk be removed · Dianne Gilchrist and Janet Billett be appointed as Deputy City Clerk - Pro Tempore · Clause 113.1.3 regarding an Alternate Acting City Clerk be deleted; and further, That Chapter 160 (Execution of Documents) of the Municipal Code be amended by deleting reference to 'Acting City Clerk' where it appears in the Chapter and replacing it with 'Deputy City Clerk-Pro Tempore'." CSD-04-047 - REVISIONS TO COUNCIL POLICY 1-340 - ART, ARTIFACT ACQUISITION AND MANAGEMENT The Committee was in receipt of Community Services Department report CSD-04-047, dated March 12, 2004 dealing with revisions to Art, Artifact Acquisition and Management Policy I- 340. On motion by J. Smola - it was resolved: "That Council Policy 1-340: Art, Artifact Acquisition and Management Policy, attached to Report No. CSD-04-047 be approved and replace the current policy dated August 21, 1995." CSD-04-050 - REVISIONS TO COUNCIL POLICY 1-650 - PERCENTAGE FOR ART The Committee was in receipt of Community Services Department report CSD-04-050, dated March 12, 2004 dealing with revisions to the Percentage for Art Policy 1-650. E. Harris provided an overview of the report and highlighted the following revisions to the Policy: · The maximum amount for the commission of art be raised from $300,000. to $500.000. · For long term projects such as development of parks, the eligible percentage for art funding may be accumulated over the term of the project. · That all partners including private sector and senior levels of government be encouraged to match or contribute over and above the City's fixed percent for art on eligible civic construction projects. Mayor C. Zehr raised a concern with the request to raise the maximum amount for public art suggesting there are very few projects undertaken by the City that would exceed $30M in construction cost. The Mayor inquired as to the amount spent on public art when City Hall was constructed. The Committee was informed that at that time the City did not have a Percent for Art Policy. Mayor Zehr requested that members of the Committee be provided with information on the total amount spent for public art at the time of City Hall construction. Councillor M. Galloway suggested that with respect to the Percent for Art Policy on any City project over $30M that Council review the amount to be spent on public art as part of the project. On motion by Mayor C. Zehr - it was resolved: "That Council Policy 1-650, Percent for Art Policy, attached to Report No. CSD-04-050 be approved as amended by reducing the maximum amount for the commission of art from $500,000. to $300,000, and replace the current policy dated March 20, 2001 ," FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 22~ 2004 - 41 - CITY OF KITCHENER CRPS-04-018 - PROPOSED DEMOLITION OF 29 EDEN AVENUE - RECOMMENDATION TO DEVELOP AS PARK The Committee was in receipt of Corporate Services Department report CRPS-04-018, dated March 8, 2004 dealing with the proposed demolition of 29 Eden Avenue. L. Proulx advised that in 2002 Council had proposed to sell the vacant sub-station located at 29 Eden Avenue, but since that time the potential purchaser has decided not to follow through on the purchase. It is being suggested that the sub-station be demolished and the lands be restored for park purposes. On motion by Councillor J. Smola - it was resolved: "That Notwithstanding the previous Council resolution of November 26, 2002, which directed the sale of 29 Eden Avenue, that the substation municipally known as 29 Eden Avenue be demolished and the lands be restored for park purposes." SSD-04-009 - NEW AND REVISED COUNCIL POLICIES - 1-175 - HOURS OF WORK - 1-310 - VACATION - NEW POLICY CONCERNING ALTERNATIVE WORKING ARRANGEMENTS The Committee considered Strategic Services Department report SSD-04-009, dated March 15, 2004 dealing with two revised Council Policies and one new proposed Policy regarding a flexible work environment. D. Paterson advised that the new and revised policies being proposed stem from the Employee Suggestion Program. The policies will improve flexibility in the hours of work, allow more vacation carry over and implement an alternative working arrangement program. Mr. Paterson explained that alternative working arrangements could include staff working from their homes or job sharing. He also advised that the proposed policies would have no financial implications. On motion by Mayor C. Zehr - it was revised: "That the revised Council Policies 11-310 (Vacation) and 11-175 (Hours of Work) and, the New Council Policy 11-12 (Alternative Working Arrangements), attached to Strategic Services Department Report SSD-04-009, dated March 15, 2004, be approved." CRPS-04-044 - REQUEST OF AGILITY ASSOCIATION OF CANADA - EXEMPTION FROM PITBULL PROVISIONS OF MUNICIPAL CODE CHAPTER 530 (DOGS) The Committee was in receipt of Corporate Services Department report CRPS-04-044, dated March 17, 2004 dealing with a request for exemption from the Pit Bull provisions of Municipal Code Chapter 530 (Dogs). On motion by Councillor J. Smola - it was resolved: "That the request of Susan Swan & Lori Mueller, ACC 2004 Ontario Regional Agility Championships, for an exemption from the Pit Bull provisions of Municipal Code Chapter 530 (Dogs) to allow Pit Bulls to attend the 2004 Ontario Regional Agility Championships at the Kitchener Auditorium, from June 4 to June 7, 2004, be approved, subject to the following conditions: a) the operators of the event shall provide the Kitchener-Waterloo and North Waterloo Humane Society, in advance, with a list of those individuals bringing and handling Pit Bulls; and, b) all Pit Bulls shall be muzzled and kept on a short leash while outside the Kitchener Auditorium." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 22~ 2004 - 42 - CITY OF KITCHENER CRPS-04-039 - 100 WASHBURN DRIVE - SECOND COMPLIANT UNDER SECTION 20 DEVELOPMENT CHARGES ACT The Committee was in receipt of Corporate Services Department report CRPS-04-039, dated March 18, 2004 dealing with a second complaint under Section 20 of the Development Charges Act with respect to 100 Washburn Drive. F. McCrea advised that a second complaint has been filed by the owner of 100 Washburn Drive against development charges assessed and collected in respect of a proposed third addition to the building on the lands. She added that the owner filed a complaint in respect to a previous second addition which was heard and dismissed by this Committee on November 17, 2003 and by Council on November 24, 2003. The dismissal of the first complaint has been appeal by the owner to the Ontario Municipal Board. In consideration of the fact that the first complaint has been appealed to the Ontario Municipal Board the owner has requested that the hearing of this second complaint be by written submission. Ms. McCrea explained that should the second complaint be dismissed the owner has indicated they will appeal and will request that it be dealt with along with the first complaint. Mayor C. Zehr advised that the complaint with respect to the development charge in this project has been dealt with at the Region and has been denied. On motion by Mayor C. Zehr - it was resolved: "That the hearing of the complaint under Section 20 of the Development Charges Act by 1090504 Ontario Limited in respect of 100 Washburn Drive be conducted by way of written submissions; and further, That Council dismiss the complaint and confirm that the development charges as calculated and collected for the development of 100 Washburn Drive in the City of Kitchener are correct." FIN-04-016 - ECNG CONSULTING - CONTRACT EXTENSION The Committee was in receipt of Financial Services Department report FIN-04-016, dated March 17, 2004 regarding the extension of the Natural Gas Consulting Agreement with ECNG and the elimination of the requirement of the Errors and Omissions Insurance to be held by ECNG. D. Quinn provided an overview of the report before the Committee advising that ECNG has been the Utility's Energy Management Consultants since 1998 and has contributed to the significant successes of the Utility. He also advised that the value of having Errors and Omissions Insurance that is part of the ECNG contract has been discussed and it is being recommended that it no longer be required. Mr. Quinn pointed out that any recommendation from the consulting firm are reviewed and approved by the City. In answer to questions from the Committee Mr. Quinn explained that by removing the Errors and Omissions Insurance there will be a savings to the City of approximately $25,000. per annum and, no other client of ECNG requires that type of insurance to be held. On motion by Councillor M. Galloway - it was resolved: "That the Natural Gas Consulting Agreement with ECNG be extended for the two remaining one year terms from February 1,2004 to January 31,2006; and further, That the agreement be modified by eliminating the requirement for Errors and & Omissions insurance to be held by ECNG at the City's cost and clarified with the addition of an addendum, which provides detail on appropriate invoicing." The meeting then recessed at 12:50 p.m. and reconvened at 1:02 p.m. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 22~ 2004 - 43 - CITY OF KITCHENER 10. INVESTING IN DOWNTOWN The Committee was in receipt of a report from the Downtown Advisory Committee dated March 16, 2004 recommending that the City support the capital allocation for the new main library as identified in the Downtown Investment Package. Ms. Anita Pesche-Good, member of the Downtown Advisory Committee, attended and provided an overview of the report advising that the Committee believes the relocation of the new main library to the Centre Block property would have a benefit to the Downtown. Ms. Pesche-Good pointed out that studies have found that a library will attract pedestrian traffic and if located in the Downtown, this will bolster business resulting in a positive spin-off from the new library. In answer to a question from the Committee, Ms. Pesche-Good advised that the Committee was not necessarily recommending a certain allocation of funds but is more concerned that the new main library be relocated to the Centre Block property in order to have a positive effect on the Downtown. Mr. Kevin Eby, Director - Community Planning for the Region of Waterloo, attended and gave a presentation on the Regional Growth Management Strategy. He advised that the Regional strategy is a guide for the management of growth within the Region for the next 40 years. He provided information on development of industrial lands throughout the Region and noted that one of the objectives of the strategy is to foster strong economic growth which would include Kitchener's Downtown. A key component of the revitalization of the Downtown will be transportation and a central transit corridor running through the Downtown area. Mr. Eby advised that studies have shown that a successful transit system and in particular Light Rail Transit in an urban setting is beneficial and could lead to transit oriented development on the transit line. Mr. Graham Vincent, Director - Transportation Planning for the Region of Waterloo attended advising that the Region has been negotiating with senior levels of government and is investigating public/private partnerships with respect to the development of the Light Rail Transit Corridor. Mayor Zehr asked if the latest plans for the transit corridor included the use of the Epton property site as part of the transit system. Mr. Vincent replied that at this time the plan is conceptual but other than a transit stop there is no plan to use the Epton lands for the transit system. The Committee was in receipt of Strategic Services Department report SSD-04-010 dated March 12, 2004 recommending the creation of a Economic Development Investment Fund. C. Ladd attended and provided an overview of the report noting that the report is a result of direction given by Council on March 8, 2004 and the subsequent public session on the 2004 Budget. Ms. Ladd explained that at the public session the participating members of the public were asked primarily three questions: whether they agreed with the total amount of investment dollars being proposed, whether they agreed with the allocation of those investment dollars; and, if they agreed with the funding mechanism to raise the investment dollars. In response to those questions, the group did not come to consensus on the total amount to be invested but agreed there should be some investment. With respect to the allocation to specific projects, the group concluded that each project required a fully developed business case including funding opportunities from other sources so that Council can make the appropriate decisions. Regarding the funding mechanism many of the participants felt they did not have the expertise to respond to this question, but re-iterated the need to look at ways of raising funds through other levels of government and innovative partnerships. Ms. Sheila Bodding, Royal LePage, attended and gave a presentation on business alternatives for the Centre Block property. Ms. Bodding provided information on the general economy and commercial real estate markets in the City of Kitchener noting that the commercial vacancy rate in the City was higher than the national average. She added that throughout the Waterloo Region there is currently a weak office demand and with respect to the Downtown, there exists a situation where lower rents are available in the suburban areas making it difficult to market downtown office spaces. In regard to the retail markets, Ms. Bodding explained that in the Region retail markets appear to be focused on power-centre development and that downtown areas are continuing to lose market share. She did point out that a growth in downtown residential population can revitalize downtown retail performance and that relocating the new library to the downtown area could potentially FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 22~ 2004 - 44 - CITY OF KITCHENER 10. INVESTING IN DOWNTOWN (CONT'D) generate more visitors which in turn could create higher retail demand. Ms. Bodding next discussed the condominium rental apartment trends in the downtown area noting there has been minimal demand for downtown condominiums and that although the rental apartment trends have been healthy in the past two years, the vacancy rate has increased. In the downtown area rental units have higher rates which have led to substantial vacancies in many of the new projects. Ms. Bodding gave five options for the Centre Block site: 1. Do nothing; 2. Secure institutional user or anchor and leave balance of block for future development; 3. Pursue mixed use development with institutional user and rental apartments and leave balance of block for future development; 4. Pursue mixed use development with institutional user and rental apartments and develop balance of site with townhouses and; 5. Develop entire site with townhouses. Ms. Bodding advised that based on current trends with respect to commercial and rental vacancy rates and slow demand for downtown condominiums, it is being recommended that Option 2 be pursued. This would establish an institutional anchor as a catalyst to improve the Downtown Market and to provide opportunities for private sector development when those markets improve. Mr. Hans Pottkamper, Chair - Centre Block Steering Committee attended to advise that the Centre Block Steering Committee is of the opinion that the site requires a strong institutional anchor in order to be viable. He added that during the past two years no proposals for a non- institutional anchor has come forward therefore the Committee would support the proposal for the relocation of the new library branch to the site. Mr. Pottkamper added that if the library proposal is not accepted then the Steering Committee has completed its mandate. Mayor Zehr asked questions regarding developing the Centre Block site with condominiums in addition to the proposed library. It was explained that building condominiums above the library building would be costly resulting in a per-unit charge above the acceptable market and, Iow rise condominiums has not been a proven market in Downtown Kitchener. Mayor Zehr also asked why there was a significant difference in cost between the two estimates for the construction of the new library. It was explained that two consulting firms submitted the estimates, one having additional feature and more parking and the other being a more moderate building therefore less costly. Councillor M. Galloway noted that the studies being presented showed national trends or those of the Greater Toronto Area. With respect to condominium and rental development he asked if there were examples of municipalities similar to Kitchener where an economical enhancer such as a library in a downtown location has had positive results in such things as vacancy rates and increased retail business. Councillor B. Vrbanovic added that the vacancy rate charts being presented compared Kitchener with larger municipal markets. He asked if information on similar municipalities to Kitchener could be provided. Ms. Bodding advised that she could provide the information being requested. Mr. Brian Isaac, Chair - Kitchener Public Library Board, attended in support of the report from the Centre Block Steering Committee recommending that the new library be constructed on the Centre Block property. He advised that the Library board has received solicitations for other sites, but the preferred site is still the Centre Block property. He added that the location would be a benefit to the Downtown and in light of the fact that at least one university is establishing a school in the area, there is a potential to develop partnerships. Councillor G. Lorentz enquired if there has been further discussions with the City of Waterloo regarding shared resources between the two library boards. Mr. Isaac responded that the Waterloo Library Board has not met this year and therefore he did not know. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 22~ 2004 - 45 - CITY OF KITCHENER 10. INVESTING IN DOWNTOWN (CONT'D) Mr. Isaac added that the administration of the two library boards could be shared and operated off-site from the library branches. J. Fielding advised that all possible locations for the new main library branch should be investigated as well as the Centre Block property but that a decision should be made prior to October of this year. P. Houston gave a presentation on the downtown/employment lands funding level options and provided information regarding the per capita debt of the City compared with other cities in Ontario and across the country. Ms. Houston noted that the average debt payment as a percent of operating expenses for other cities average between 6% to 10% whereas in Kitchener it is less than 4%. Ms. Houston then provided various options with respect to capital funding and debt management including the option of cashing the current city owned asset in Kitchener-Wilmot Hydro. Mayor C. Zehr advised that the issue of the City's hydro investment is a favourable situation with regard to the value and that borrowing against the investment would be more appropriate than cashing out on the investment. Mayor C. Zehr requested that the Committee now deal with Strategic Services department report SSD-04-010 discussed earlier regarding the Economic Investment Development Fund. The Mayor noted that the City has gone through the public process and input and the result of that which is contained in the staff report, provides direction and flexibility with respect to short and long-term capital investments. Although it is being recommended that $86M be allocated, no decision at this time is necessary as to the specific projects and there is flexibility for this Council and future councils to review each project on its own merit and make the appropriate decisions. Mayor Zehr added this will show that the City has capacity and has made a commitment which in turn may be the catalyst for private sector commitment to the Downtown. The Committee extended their appreciation to those members who participated in the public capital process and for the feedback received on the various capital projects. On a motion by Mayor C. Zehr, It was resolved: "That Strategic Services Department report SSD-04-010, dated March 12, 2004 be endorsed and referred to the Finance and Corporate Services Special Budget meeting of March 29, 2004." 11. SSD-04-002 - BUSINESS ENTERPRISE CENTRE UPDATE & FUNDING REQUEST The Committee was in receipt of Strategic Services Department report SSD-04-002 dated January 27, 2004 dealing with the Business Enterprise Centre update and request for funding. Mr. Paul Eichinger, Chair - Business Enterprise Centre Advisory Board attended and provided a review of the report and advised of the Business Enterprise Centre's Strategic Plan. Mr. Eichinger advised that the Centre has lost revenue from various sources including the Federal and Provincial Governments which has created funding difficulties for the Centre. The proposed funding model is now based on population between the participating municipalities and the request for $50,000.00 from the City of Kitchener represents the City's portion of that funding model. Ms. K. Smith, Manager - Business Enterprise Centre, advised that there has been a withdrawal of funding from various sources and some programs have shifted to other municipalities leaving an accumulated deficit of approximately $81,000.00. She added that part of the plan was to start eliminating the deficit with an increase in public funding. On a motion by Mayor C. Zehr, It was resolved: "That Strategic Services Department report SSD-04-002 dated January 27, 2004 regarding the Business Enterprise Centre update and request for funding be referred to the Special Finance and Corporate Services Committee Budget meeting of March 29, 2004." MARCH 22~ 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 46 - CITY OF KITCHENER 12. ADJOURNMENT On a motion the meeting adjourned at 3:22 p.m. Randy Gosse Deputy City Clerk