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HomeMy WebLinkAboutFinance & Corp - 2004-06-07FINANCE & CORPORATE SERVICES COMMITTEE MINUTES June 7, 2004 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 1:30 p.m. Present: Chair - Councillor B. Vrbanovic Mayor C. Zehr and Councillors C. Weylie, J. Smola, J. Gazzola and G. Lorentz Councillor M. Galloway in attendance for part of the meeting. Staff: R. Browning, Interim Chief Administrator Officer P. Houston, General Manager, Financial Services & City Treasurer G. Stewart, General Manager, Development & Technical Services C. Ladd, General Manager, Strategic Services G. Sosnoski, General Manager, Corporate Services & City Clerk S. Turner, Director of By-law Enforcement H. Gross, Director, Project Administration R. Pitfield, Director, Corporate Communications and Marketing D. Mansell, Deputy Director, Engineering Services R. Shamess, Director, Engineering Services J. Willmer, Director of Planning F. McCrea, Assistant City Solicitor K. Weiss, Manager of Business Development J. Koppeser, Manager of Licensing J. Sheryer, Assistant City Solicitor P. Bacon, Senior Economic Development Officer L. Masseo, Manager, Design and Development R. Goetz, Senior Financial Analyst M. Seiling, Supervisor of Permits D. Gilchrist, Committee Administrator CRPS-04-088 - EXEMPTION FROM MUNICIPAL CODE CHAPTER 450 (NOISE) - SPORTSWORLD, 100 SPORTSWORLD DRIVE - CANADA DAY CELEBRATION The Committee was in receipt of Corporate Services Department report CRPS-04-088, dated May 26, 2004, with respect of a request received from Sportsworld for an exemption from City of Kitchener Municipal Code Chapter 450 (Noise) for an event to take place at their premises on July 1,2004. It was resolved: "That an exemption from Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to Sportsworld, 100 Sportsworld Drive, on July 1, 2004, from 5:00 P.M. to 10:00 P.M., for an outdoor concert as part of their Canada Day Celebration." SSD-04-024 - SALE OF SITE 2, GRAND RIVER WEST BUSINESS PARK - BINGEMAN CENTRE DRIVE The Committee was in receipt of Strategic Services Department report SSD-04-024, dated May 31,2004, with respect to the sale of Site 2 in the Grand River West Business Park. It was resolved: "That the Offer to Purchase from Safraz Holding Inc. be accepted for Part 2, Reference Plan 58R-14324, being a parcel of land in the Grand River West Business Park, having an area of approximately 2.0 acres at the price of $125,000 per acre, for a total purchase price of $250,000.00; and further, That the Mayor and Clerk be authorized to execute any other necessary documentation required by the City Solicitor to complete the sale transaction." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JUNE 7, 2004 - 83 - CITY OF KITCHENER CRPS-04-102 - REQUEST FOR MIDWAY - TOYS R US PLAZA - 419 FAIRWAY ROAD SOUTH The Committee was in receipt of Corporate Services Department report CRPS-04-102, dated May 31,2004, with respect to the request of Sunnyside Inc. for a licence to operate a Midway at 419 Fairway Road South, from July 8-11,2004. It was resolved: "That the request of Sunnyside Inc. (a Conklin Group) to hold a Midway at 419 Fairway Road South on July 8 to 11,2004, be approved subject to the following: a) that the hours of operation of the Midway shall be: Thursday, Friday & Saturday - 11:00 a.m. to 11:00 p.m. Sunday - 11:00 a.m. to 6:00 p.m.; and, b) that the necessary licence is obtained; and further c) that the midway area be delineated from the parking areas." CRPS-04-100 - REQUESTTO OPERATE A BARBEQUE AND SELL FOOD -CHRISTLUTHERANSCHOOL -146 TRAFALGAR AVENUE The Committee was in receipt of Corporate Services Department report CRPS-04-100, dated May 25, 2004, with respect to a request received from Christ Lutheran School for an event to take place at their premises on June 19, 2004. It was resolved: "That the request of Christ Lutheran School to operate an outdoor Refreshment Stand on June 19, 2004, be approved, provided the necessary licence is obtained, including Health and Fire approval; and further, That Christ Lutheran School be granted an exemption from Chapter 450 (Noise) of the City of Kitchener Municipal Code in conjunction with an event at 146 Trafalgar Avenue on June 19, 2004 from 1:00 p.m. to 6:00 p.m." CRPS-04-099 - APPEAL OF MUNICIPAL CODE CHAPTER 586 (REFRESHMENT VEHICLE) - REQUEST TO LOCATE HOT DOG CART AT 176-A HAYWARD AVENUE - and - CRPS-04-101 - APPEAL OF MUNICIPAL CODE CHAPTER 586 (REFRESHMENT VEHICLE) - REQUEST TO LOCATE HOT DOG CART AT 177 HAYWARD AVENUE The Committee was in receipt of Corporate Services Department report CRPS-04-099, dated May 25, 2004, with respect to an appeal received from Margaret Furey of the decision of the Manager of Licensing not to issue her a licence to operate a hot dog cart at 176-A Hayward Avenue. The Committee was also in receipt of Corporate Services Department report CRPS-04-101, date May 31,2004, with respect to an appeal received from Brian Power of the decision of the Manager of Licensing not to issue him a licence to operate a hot dog cart at the property municipally known as 177 Hayward Avenue. In addition to the reports, the Committee was in receipt this date of copies of an e-mail from Mr. J. McBride, dated June 4, 2004, and a copy of a site plan of 177 Hayward Avenue, showing the proposed location for the hot dog cart, and the location of on-site parking. In the FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JUNE 7, 2004 - 84 - CITY OF KITCHENER CRPS-04-099 - APPEAL OF MUNICIPAL CODE CHAPTER 586 (REFRESHMENT VEHICLE) - REQUEST TO LOCATE HOT DOG CART AT 176-A HAYWARD AVENUE - and - CRPS-04-101 - APPEAL OF MUNICIPAL CODE CHAPTER 586 (REFRESHMENT VEHICLE) - REQUEST TO LOCATE HOT DOG CART AT 177 HAYWARD AVENUE (CONT'D) e-mail, Mr. McBride advises Transportation Planning staff would not object to the issuance of a licence for the operation of a hot dog cart at 177 Hayward Avenue, subject to certain conditions. It was noted in the reports that the City of Kitchener Municipal Code Chapter 586 (Refreshment Vehicles) restricts the location of hot dog carts so as not to be located within 200 metres of a place of refreshment, or within 400 metres of another refreshment vehicle. It was noted that the 2 appeals are to locate hot dog carts at properties which are across the street from each other. Ms. M. Furey was in attendance to represent her appeal, and although registered as a delegation, Mr. B. Power was not in attendance. Ms. J. Koppeser noted that the one place of refreshment within the required distance separation is at the Peter Hallman Ballyard, which only operates when there is a function taking place at the premises. Ms. Koppeser showed the Committee members photographs of Hayward Avenue in the vicinity of the 2 subject properties, and the fenced enclosure around 177 Hayward Avenue, and indicated there are difficulties for traffic entering and exiting this property. When questioned by the Committee, Ms. Furey advised of her intention to operate a hot dog cart at 176A Hayward Avenue from 10 a.m. to 2 p.m. during weekdays only, and not on weekends or holidays. She stated the cart will be located on private property and not on the side of the road. Further, she believes there will be sufficient patronage in this area, because of the number of people who work in the area. With respect to the comments from Transportation Planning staff, Ms. Koppeser noted that, although they have no concerns if the patrons park on private property, they do have concerns that vehicles, including larger trucks, may park on the side of the road. Councillor Lorentz advised that he requires more information concerning the property at 177 Hayward Avenue, and recommended that decisions on these appeals be deferred to next week's Council meeting. On motion by Councillor G. Lorentz - it was resolved: "That consideration of the two appeals of Margaret Furey (176-A Hayward Avenue) and Brian Power (177 Hayward Avenue) to City of Kitchener Municipal Code Chapter 586 (Refreshment Vehicle) for permission to locate hot dog carts at the addresses noted, deferred and referred to the Council meetinq of June 14, 2004; and, That staff provide site plans for 176A and 177 Hayward Avenue showing the proposed locations for the hot dog cart and parking on each property; and further, That the appellants be invited to attend the Council meeting." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JUNE 7, 2004 - 85 - CITY OF KITCHENER 6. FIN-04-031 - 2004 DEVELOPMENT CHARGES - BACKGROUND STUDY AND PROPOSED BY-LAW - AND - SSD-04-025 - ECONOMIC DEVELOPMENT ADVISORY COMMITTEE - RECOMMENDATION RE: PROPOSED NON-RESIDENTIAL DEVELOPMENT CHARGES The Committee was in receipt of Financial Services Department report FIN-04-031, dated May 28, 2004, together with a study titled "City of Kitchener 2004 Development Charges - Draft #2 - June 7, 2004". The Committee was also in receipt of Strategic Services Department report SSD-04-025, dated June 1, 2004, advising the Committee of a recommendation adopted by the City's Economic Development Advisory Committee, on May 26, 2004, asking the City and the Region to consider delaying their rate increases for development charges for 6 months, until January 1,2005. The Committee was provided, this date, with correspondence from Mr. R. Martin, dated June 1,2004, outlining his objection to the time limitation with respect to redevelopment allowances contained in Section 18 of the draft Development Charges By-law. Ms. P. Houston advised the Committee that this Section has been changed to take into consideration Mr. Martin's objection. Mr. J. Willmer introduced Draft #2 of the City of Kitchener Development Charges Background Study, briefly providing an overview. He then reviewed the charges to the Region's Growth Forecast, which have been revised since this Committee's April 19, 2004, meeting. The Region has provided a 20-Year Growth Forecast commencing in 2004 as follows: Years 0-5 - 3,363 persons per year, Years 6-10 - 3,082 persons per year, Years 11-15 - 3, 029 persons per year, Years 16-20 - 2,189 persons per year. The Region's non-residential growth forecast, for the City of Kitchener, for the 20-year period commencing in 2004, is now as follows: Year 0-5 - 500,172 square feet per year, Years 6-10 - 755,981 square feet per year, Years 11-15 - 500,793 square feet per year. Years 15-20 - 561,218 square feet per year. With respect to the difference in projected non-residential growth from that experienced in the last 10 years, Mr. Willmer advised the current rate of growth in not anticipated to continue, further the projected growth rates take into consideration the availability of industrial land in each 5 year period. With respect to the determination of the area of the City to be included in the "Central Neighbourhoods", Mr. Willmer advised that the area was identified through the City's Zoning By-law process. He also advised that the exact determination was chosen so as not to affect any new or immanent development immediately across the boundary. With respect to the portion of the development charges attributable Engineering Services, Ms. Houston explained that the costs for these services have now been averaged over a 20-year period. Engineering Services provide for growth over a 20-year period, even though they are required in the first 10 years. She stated projects must not proceed unless funding is available or they must be front-end financed by the developer. Project timing will be determined through the Staging of Development Report, and this report plus the 10-Year Capital Forecast must be carefully be reviewed each year. Another revision to the proposed development charge rates has come through a reduction in the Parks and Recreation portion of the soft services, which reflects changes to Parks and FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JUNE 7, 2004 - 86 - CITY OF KITCHENER 6. FIN-04-031 - 2004 DEVELOPMENT CHARGES - BACKGROUND STUDY AND PROPOSED BY-LAW - AND - SSD-04-025 - ECONOMIC DEVELOPMENT ADVISORY COMMITTEE - RECOMMENDATION RE: PROPOSED NON-RESIDENTIAL DEVELOPMENT CHARGES (CONT'D) Recreation facilities over time. Councillor Gazzola raised concerns as to the accuracy of the calculations in the Background Study. Ms. Houston reviewed the process undertaken to this point. Also, it was noted that staff have worked with stakeholder groups over the last 2 months. Staff have undertaken a consultation process, as well, an advertisement has been placed in the newspaper advertising this meeting as the public meeting required under the Development Charges Act. Further, staff are requesting that whatever recommendation is made by this Committee this date, and the necessary by-law, not be forwarded to City Council until June 28, 2004, to allow a further 2 weeks for public input and discussion. In summary the following aspects have been changed since the April 19, 2004, Finance and Corporate Services Committee meeting, creating a reduction in the development charge rates: revised growth figures in the Region's Population Forecast, a 20-year horizon for Engineering Services, a 3% decrease in G.S.T., and a revision of the costs of Parks and Recreation facilities. Councillor Vrbanovic questioned the allocation for Library Services, and was advised that the reduced allocation for libraries results from the fact that the Country Hills Library has been constructed, and no approvals have been given with respect to a new main library. It was noted that the growth related component of a new library can be included in the Development Charge rates once it has been approved. The Development Charge By-law can be amended for this purpose at a later date. Members of the Committee then discussed the proposal presented by staff for implementation of the residential rates. The Committee also considered the recommendation of the Economic Development Advisory Committee, as stated in Strategic Services Department report SSD-04- 025. It was noted by staff that any delay in the implementation of the non-residential rates, to January 1, 2005, would necessitate an increase in the rates to compensate for the initial 6 months of lost income. Mr. H. Potkamper addressed the Committee on behalf of the Economic Development Advisory Committee, in support of their recommendation. He advised the construction industry deals with fairly thin margins, and the combined increase in development charges of the City and the Region equals $2 per square foot. He recommended giving the industry a longer time to incorporate these rate increases by not introducing the new rates until January 1,2005. Mr. P. Britton addressed the Committee advising he is representing the industry and his clients. He suggested the proposed rates have some form of bias toward the non-residential, and residential construction is being unfairly targeted. He stated that growth should pay for growth, and the assumptions should be fair. He stated that the Region's forecasts are only a working document, and these population forecasts have not been tested. He further noted that they have acquired a consultant to review the City's Background Study, as it is an important tool for the industry as well as the municipality. Mr. Britton requested that the rates not be approved this date, as the staff report and Background Study have only been made available to him this afternoon. He advised that he has some difficulty with the transition provisions, population forecast, and the methodology, and a qualitative assessment has not yet been done. Mr. Britton also noted that under the Development Charges Act, the City is obligated to provide a statement of accounting to the community, and these statements have not been provided. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JUNE 7, 2004 - 87 - CITY OF KITCHENER 6. FIN-04-031 - 2004 DEVELOPMENT CHARGES - BACKGROUND STUDY AND PROPOSED BY-LAW - AND - SSD-04-025 - ECONOMIC DEVELOPMENT ADVISORY COMMITTEE - RECOMMENDATION RE: PROPOSED NON-RESIDENTIAL DEVELOPMENT CHARGES (CONT'D) Councillor M. Galloway entered the meeting during Mr. Britton's presentation. When questioned by Councillor Weylie, Mr. Britton stated that growth should pay for growth, and there should be a transition for both rates if there is to be a transition for any one of the rates. When questioned by the Committee, Ms. Houston advised that the methodology for costing soft services has to do with an inventory prepared of all existing services, and dividing those costs by the number of people per year over the 10 years. She noted that staff have taken into consideration stakeholders concerns by removing from the inventory some unique existing projects which will be unlikely to reoccur. Mr. D. Reed of Eastforest Homes and Decora Homes addressed the Committee, requesting a delay in implementing the increase in Development Charges. He suggested they not be increased until January 1,2005, and be phased in from that time. He advised that at this time they have 253 committed deals with final budgets. It is difficult to know how to market their properties when they do not know what the increase in development charges will be. Mayor Zehr suggested the Committee's recommendation on the Development Charge rates, and the Development Charge By-law, not be considered by Council until June 28. Councillor Weylie suggested the date of the Council meeting be changed to June 29, in light of the Federal Election. On motion by Councillor by C. Weylie - it was resolved: "That in consideration of the Federal Election to be held on Monday June 28, 2004, the Council meeting of June 28th be rescheduled to Tuesday June 29, 2004." Councillor Weylie asked that this resolution be considered at the Special Council meeting this date. The Committee then considered its position with respect to the development charges. agreed that residential and non-residential rates would be voted on separately. On motion by Councillor C. Weylie - it was resolved: It was "That the proposed Non-residential Development Charges be approved in principle, as contained in 'City of Kitchener 2004 Development Charges, Draft #2, June 7, 2004', subject to the new rates coming into effect on January 1, 2005, and the existing Non- residential Development Charges continuing until that time; and, That staff report to the Finance & Corporate Services Committee on June 21, 2004, with revised Non-residential Development Charges, taking into consideration the effective date for the new rates being January 1,2005; and further, That a final decision on all 2004 Development Charges, and consideration of a new Development Charge By-law take place at the Council meeting of June 29, 2004." JUNE 7, 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 88 - CITY OF KITCHENER 6. FIN-04-031 - 2004 DEVELOPMENT CHARGES - BACKGROUND STUDY AND PROPOSED BY-LAW - AND - SSD-04-025 - ECONOMIC DEVELOPMENT ADVISORY COMMITTEE - RECOMMENDATION RE: PROPOSED NON-RESIDENTIAL DEVELOPMENT CHARGES (CONT'D) On motion by Councillor G. Lorentz - it was resolved: "That the proposed Residential Development Charges be approved in principle, as contained in 'City of Kitchener 2004 Development Charges, Draft #2, June 7, 2004', along with the following implementation plan: That the existing Residential Development Charge rates shall apply to all contracts for residential construction signed prior to June 7, 2004, and received by the City prior to June 30, 2004, provided the building permit application is received by the City of Kitchener prior to December 10, 2004; and, That staff report to Council on June 14, 2004, as to what the Residential Development Charge rates would be if the implementation plan is changed to apply to all contracts for residential construction signed prior to June 29, 2004, and what the Residential Development Charge rates would be if the new Residential Development Charge rates are not implemented until January 1,2005." THE NEW DEAL - DISCUSSION AND ENDORSEMENT OF RESOLUTION PROPOSED BY "BIG CITY MAYORS' CAUCUS" OF FEDERATION OF CANADIAN MUNICIPALITIES The Committee considered the resolution adopted by the Big City Mayors' Caucus of the Federation of Canadian Municipalities concerning a "New Deal" between all three levels of government in Canada, to address the current and future needs of Canadian Municipalities. The resolution urges Canadians to make the "New Deal" a decisive issue in the upcoming federal election. It was recommended that the word "Cities" in the resolution be changed to "Municipalities". Mayor Zehr advised that he will personally forward the Committee's resolution to all candidates in the federal election. On motion by Mayor C. Zehr - it was resolved: "WHEREAS Canada's municipalities and the federal government are evolving the New Deal in order to sustain their quality of life, competitiveness and contribution to Canada's prosperity and the well-being of all Canadians; and, WHEREAS Canadian municipalities face a multi-billion dollar infrastructure deficit and lack the fiscal resources and autonomy to meet new and growing responsibilities, the New Deal must position Canada's municipalities to partner with the Federal and Provincial/Territorial governments in addressing the key issues facing urban Canadians, including public transit, transportation, affordable housing, community supports for immigrant and aboriginal communities, and sustainable economic development; and, WHEREAS the New Deal must include Canada's municipalities in a stronger partnership which results in adequate fiscal resources and autonomy to address local priorities, meet provincially defined responsibilities, and support the attainment of national objectives; and, WHEREAS the New Deal is a significant new direction for Canada the New Deal and various issues that comprise the 'urban agenda' are a work in progress; and, JUNE 7, 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 89 - CITY OF KITCHENER 7. THE NEW DEAL - DISCUSSION AND ENDORSEMENT OF RESOLUTION PROPOSED BY "BIG CITY MAYORS' CAUCUS" OF FEDERATION OF CANADIAN MUNICIPALITIES (CONT'D) WHEREAS all Canadians should carefully consider what each Federal party will do for municipalities today and in the future; THEREFORE BE IT RESOLVED that the Mayors of Canada's largest 22 cities urge local residents and businesses to make the New Deal for Canada's municipalities a decisive issue in this Federal election and ask all candidates standing for Federal parliament the following questions: What is your party's position with respect to the New Deal for Canada's municipalities? (11) Will your party as a priority allocate 5 cents/litre of the federal fuel excised tax to support urgently needed investment in municipal infrastructure, primarily for transportation and public transit by the end of 2004? Will your party enter into agreements with municipalities and the provinces/territories to create financial sustainability that would include sharing revenues that grow with the economy by the end of 2005? (IV) How will your party involve municipalities as partners in federal and provincial policy, program and budget deliberations in issues that have a direct impact on urban centres? (V) What other actions will your party take to strengthen the competitiveness and quality of life of Canada's municipalities?" Carried Unanimously ADJOURNMENT On motion, the meeting adjourned at 3:50 p.m. Dianne Gilchrist Committee Administrator