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HomeMy WebLinkAboutFinance & Admin - 1992-11-16FAC\1992-11-16 FINANCE AND ADMINISTRATION COMMITTEE MINUTES NOVEMBER 16, 1992 The Finance and Administration Committee met this date, commencing at 11:15 a.m., under the Chairmanship of Alderman C. Zehr with the following members present: Mayor D.V. Cardillo, Aldermen B. Stortz, T. Galloway, G. Lorentz, J. Smola, M. Wagner and J. Ziegler. Alderman C. Weylie was in attendance for part of the meeting. Others present: Alderman G. Leadston, Messrs. T. McKay, J. Gazzola, R.W. Pritchard, L. Parkhouse, J. Wallace, D. Mansell, G. Sosnoski, Ms. L. MacDonald and Ms. P. Houston. DELEGATION - MR. G. LAVALLEE Mr. George Lavallee had previously advised that he would be unable to attend the meeting this date, and requested deferral of his presentation to the December 7, 1992 meeting. KITCHENER SPORTS ASSOCIATION (KSA) - RAFFLE DRAWS Mr. Thomas Gural and Mr. Norman Foss appeared on behalf of the Association concerning their request for permission to hold 50/50 Draws at the Kitchener Memorial Auditorium. The Committee was in receipt of written submissions from the Association as well as a staff report from Mrs. J. Koppeser dated November 10, 1992. They were also in receipt of a legal opinion from Mr. J. Wallace outlined in his memorandum of November 10, 1992. Mr. Gural advised that the Association presently raises funds through a lottery held at Kitchener Ranger Junior "A" games and the request relative to 50/50 Draws is in response to new Provincial criteria and the Association's desire to increase its fund raising capabilities. He pointed out that in accordance with eligibility guidelines of the Ministry of Consumer and Commercial Relations his group is a sporting association and supports numerous individual teams and persons in the City of Kitchener. Alderman Smola inquired whether the Kitchener Ranger Junior "B" team receives support from the Association and Mr. Gural added that in the past this was the case, but the team receives no support at present. Alderman Smola asked whether KSA would be willing to negotiate with the Junior "B" team in order to allow them a percentage of the 50/50 Draw revenue. Mr. Gural replied that he would be willing to investigate this option. Mr. Parkhouse referred to the Provincial regulations governing eligibility for lottery licences dated June 1, 1992. He pointed out that the new procedure is intended to accommodate those associations or leagues which have member teams in different municipalities, which is not the case with KSA. He advised that staff feels the Provincial criteria do not include organizations like KSA, and for this reason they would not normally be allowed to hold 50/50 Draws. Alderman Lorentz asked whether this issue would be irrelevant if KSA were incorporated. Mr. Gural expressed concern over the expense of incorporation, but indicated that his organization would be willing to incorporate if necessary. He added that the issue of whether KSA qualifies under Provincial regulations depends on the interpretation of the term "association". Alderman Galloway referred to a previous verbal comment from the Province indicating it would not object to the issuing of a licence in this instance. Mr. Parkhouse replied that there may have been a misunderstanding as to the nature of the organization involved, and expressed the opinion that incorporation of KSA would not affect their eligibility. Alderman Wagner expressed the opinion that the Committee must first determine whether the Province would object to the issuing of a licence if KSA were incorporated. Mr. Wallace referred to his legal opinion and to the eligibility criteria for 50/50 Draws. He pointed out that based on decided cases the Province requires that the organization in question be a sporting FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 77 - NOVEMBER 16, 1992 2. KITCHENER SPORTS ASSOCIATION (KSA) - RAFFLE DRAWS (cont.) league or association and that they support minor sports at the amateur level as well as having member teams in different municipalities. Mr. Wallace advised that sporting leagues are not the same as sporting associations and in his opinion the KSA would not be eligible for 50/50 Draws unless the organization mandate is changed. Alderman Stortz inquired as to the nature of legal exposure in the event the KSA request is approved. Mr. Wallace replied that in his opinion it is essential that the organization incorporate regardless of the issue at hand, as this would be in the best interest of the individual members. He stated that if the City proceeds based on the Association's interpretation of Provincial guidelines and they conduct 50/50 Draws other groups may approach Council with similar requests. He stressed that the guidelines do not distinguish between the integrity of individual groups and that 50/50 Draws are difficult to regulate. Mr. Wallace added that approval of this and other similar applications would make monitoring by the Licensing Division difficult, however, the audit required under the terms of incorporation would assist in regulation. Mr. Gural stated that KSA would consider putting a ceiling on the prize amount, as this would ensure a more comprehensive level of control. Alderman G. Lorentz put forward a motion that subject to the incorporation of the Kitchener Sports Association, they be granted permission to conduct 50/50 Draws at Kitchener Ranger Junior "A" home games. Alderman Lorentz expressed the opinion that the Provincial guidelines are vague in this area and the Province will advise the City if they consider the proposed activity illegal. He suggested that Council would deal with other similar licence requests on a case by case basis, though a large number of these is unlikely due to the scarcity of appropriate ticket venues. Mr. Parkhouse asked that the motion of Alderman Lorentz be amended to include the phrase "notwithstanding Provincial regulations", and Alderman Lorentz agreed. The main motion as amended was then voted on. On a motion by Alderman G. Lorentz - It was resolved: "That subject to the incorporation of the Kitchener Sports Association, and notwithstanding Provincial regulations, the Association be granted permission to conduct 50/50 Draws at Kitchener Ranger Junior "A" home games." 3. LEASE EXTENSION - MARKET SQUARE Mr. Wallace appeared concerning negotiations which are underway involving the City, the YMCA and Cambridge Leaseholds which would extend the main lease for City owned premises in Market Square to the year 2000. Mr. Wallace explained that Cambridge Leaseholds has asked that in the event they enter into a lease agreement with the YMCA to the year 2000, the City accept responsibility for maintenance of the structural slab, the exterior and the roof of the subject property. He added that the City would normally be responsible for these features under the terms of the present lease which expires in 1996. On a motion by Alderman J. Ziegler- It was resolved: "That in conjunction with an extension of the present lease agreement for City owned premises in Market Square to the year 2000, Kitchener accept responsibility for maintenance of the structural slab, the exterior and the roof after 1996 and to the year 2000." 4. ENTREPRENEURIAL RESERVE FUND The Committee was in receipt of a report and recommendation from Mr. T. McKay dated October 21, 1992. FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 78 - NOVEMBER 16, 1992 4. ENTREPRENEURIAL RESERVE FUND (cont.) Alderman Galloway questioned the $50,000.00 ceiling on funding of an expenditure which results from a business proposal. Mr. McKay explained that under exceptional circumstances Council would be approached to approve an increased level of funding. He added that as part of the year end review of Reserve Funds an appropriate source for the new fund would be recommended. On a motion by Alderman C. Weylie - It was resolved: "That Council establish an Entrepreneurial Reserve Fund to be operated in accordance with the outline in the report of the Chief Administrator dated October 21, 1992, and further, That the C.A.O. and Commissioner of Finance review the viability of the City's existing Reserve Funds and recommend a source of funding for the new Entrepreneurial Reserve Fund." 5. VOTOMATIC ELECTION SYSTEM The Committee was in receipt of a report and recommendation from Mr. R.W. Pritchard dated October 21, 1992. Mr. Pritchard explained that the recommendation before the Committee has been endorsed by the Computer Steering Committee and would have no impact on the 1993 tax rate. Alderman Ziegler questioned why the City should undertake to acquire a new election system in 1993. Mr. Pritchard answered that the Information Services Division requires lead time of approximately 10 months for implementation, and that delivery of the new system would be taken after the move to the new City Hall. A 1993 acquisition would also allow the City to dispose of the existing system components and save on moving costs. Mr. Pritchard added that the majority of Ontario municipalities are moving toward adoption of the system recommended, and that this is not the most expensive option available. In response to a further question from Alderman Ziegler, Mr. Pritchard advised that the decision to acquire a new election system is a political one, and pointed out that though the present system is still serviceable, the name of the candidate does not appear on the ballot. He also noted that the recommended system would serve the City's needs for at least 20 years. Alderman Ziegler asked what advantage the new system would have to the voter, and Mr. Pritchard replied that any advantages relate to the ease of use. He added that ballots cards under the new system would be printed in Canada as opposed to the United States where the present ballot cards are produced. In addition, savings would accrue as a result of a reduction in the amount of staff time required on election night. Mr. Pritchard stated that if Council decided to retain the present system, it would have to be expanded in 1994 and converted to a LAN based tabulation system. Alderman Wagner pointed out that based on a life span of seven elections the new system would cost approximately $5,000.00 per election, an amount worth spending to obtain a more user friendly system. Alderman Leadston asked for a report outlining the projected savings in staff time as a result of acquiring the new system. On a motion by Alderman J. Ziegler- It was resolved: "That no action be taken at this time to replace the existing Votomatic Election System with an Optech IV-C (a Mark Sense Central Tabulation System), and further, That the City retain the existing election system in conjunction with a new LAN driven tabulation system as outlined in Option #1 of the report of Mr. R.W. Pritchard dated October 21, 1992." FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 79 - NOVEMBER 16, 1992 (5. DOG AND PET SHOP BY-LAWS The Committee was in receipt of two revised drafts to amend Chapter 530 (Dogs) and Chapter 575 (Pet Shops) of the Municipal Code. Ms. L. MacDonald informed the Committee that the by-laws have been revised as previously directed to restrict the number of dogs in any dwelling unit to three in number. A grandfather clause has been included to exempt individuals having more than three dogs as of February 16, 1993 provided they are licensed at that time. A further exemption would apply to animal clinics and hospitals as well as dwelling units in agricultural zones. Ms. MacDonald further indicated that by restricting the number of dogs the issue of boarding and breeding is indirectly addressed. In response to a question from Alderman Ziegler, Ms. MacDonald confirmed that a kennel licence could be obtained provided dogs have pedigree, otherwise no individual could have more than three dogs. Alderman Ziegler suggested that a public meeting be held on December 7 to address this issue. Alderman Zehr referred to Council's previous direction that a public open house be held prior to the public meeting. Alderman Ziegler expressed the opinion that an open house would not be necessary as both items could be combined in the public meeting process. On a motion by Alderman J. Ziegler- It was resolved: "That Council accept the two revised Drafts to amend Chapter 530 (Dogs) and Chapter 575 (Pet Shops) of the Municipal Code as submitted to the Finance and Administration Committee on November 16, 1992, and further, That a special meeting in this regard be convened on December 7, 1992 following the regular meeting of the Planning and Economic Development Committee, with Notice given to licensed kennel and pet shop owners, anyone who has registered a concern regarding these issues, as well as the general public." 7. MUNICIPAL DEVELOPMENT CHARGES The Committee was in receipt of a report from the Development Charge Committee dated November 10, 1992 in response to a request from City Council for information on communities which have modified, deferred or suspended their development charges in order to determine the impact on municipal revenues. The report refers specifically to the experience of the City of Etobicoke. Alderman Galloway referred to discussion by Etobicoke Council resulting in a refund of some development charges and a reduction in some of the charge amounts. Mr. Mansell pointed out that any reduction must be offset either through the tax levy or another existing fund. Mr. McKay elaborated on the Etobicoke experience and pointed out that in this particular area the most significant non-residential charge is that of the Region of Waterloo. Alderman Stortz suggested that the City look at a more aggressive strategy to reduce non- residential rates. He suggested that the issue be referred to the Economic Development Advisory Committee, which would devise 10 options the City could pursue to reduce disincentives affecting purchase and development of lands. Alderman Ziegler asked for clarification of the pending municipal rate increase. Mr. Mansell stated that an increase is scheduled to take effect on January 1, 1993. He added that the index figure used to set the charge has been requested from the development charge consultant. He added that there is a possibility the figure could be negative and result in a reduction of the rates. The exact figure would be known by the end of November. Alderman Ziegler suggested that if the index figure is a negative amount this fact should be publicized. Alderman Zehr asked that this item be brought forward for discussion at the December 7, 1992 meeting along with any additional information. 8. FACADE LOAN APPLICATION - 331 KING STREET W. FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 80 - NOVEMBER 16, 1992 10. 11. 12. 13. Mr. Wallace asked that this item be withdrawn from the agenda as a change in circumstances has negated the need for a new lien. CITY OF KITCHENER OPERATING STATEMENTS The Committee was in receipt of statements for the nine month period ending September 30, 1992. Mr. J. Gazzola reviewed the statements drawing the Committee's attention to the fact that revenues are $600,000.00 ahead of budget and department expenses $217,000.00 off budget. He added that municipal enterprises are doing as well as expected with the exception of the Parking Enterprise. Mr. Gazzola advised that a further statement will be available for discussion at the December 7, 1992 meeting. K.A.P.S. PROGRAM REVISIONS The Committee was in receipt of a K.A.P.S. Review Committee report summary from Ms. P. Houston dated November 10, 1992. Ms. Houston advised that to date the Program has received approximately 700 suggestions with 16% of these approved. Sixteen of the suggestions produced tangible cost savings. She advised that the Committee is looking at ways of increasing the number of suggestions and has solicited input via surveys and comparisons with other organizations. She stated that these had revealed concerns over fairness and objectivity in evaluation as well as the lengthy time intervals involved in considering suggestions. Ms. Houston stated that the Review Committee is recommending a committee be struck in each department to review suggestions; that a City-wide suggestion committee, comprised of members of each department committee, would review suggestions having an impact outside an individual department; that awards continue to made with the maximum award increased to $25,000.00; a point based system of awards which would allow participants to accumulate points and use these to purchase City services. Alderman Zehr inquired whether a complete Committee report is available, including the recommendations referred to above. Mr. Gazzola agreed to make several copies available to Aldermen and indicated he is attempting to put the report on the LAN. Mr. Gazzola agreed to bring forward a report and list of appropriate recommendations to the December 7, 1992 Finance and Administration Committee meeting. WATER BILL - HOMER WATSON HOUSE Alderman Galloway advised that the House recently received a three month bill totalling $2,393.00, with the normal billing for that period being $30.00. He explained that a waterline break had gone undetected but has now been repaired. He suggested that in light of the fact the House is a charitable organization and a City owned facility, Kitchener Utilities write off the entire amount of the bill. Mr. Gazzola agreed to bring forward a report for consideration at the December 7, 1992 meeting. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, December 7, 1992. ADJOURNMENT On motion, the meeting adjourned at 1:10 p.m. G. Sosnoski Manager of Corporate Records/Assistant City Clerk