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HomeMy WebLinkAboutFinance & Admin - 1992-12-07FAC\1992-12-07 FINANCE AND ADMINISTRATION COMMITTEE MINUTES DECEMBER 7, 1992 The Finance and Administration Committee met this date, commencing at 11:10 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, M. Wagner, C. Weylie and J. Ziegler. Alderman J. Smola was in attendance for part of the meeting. Others present: Alderman G. Leadston, Alderman M. Yantzi, Messrs. T. McKay, J. Gazzola, R. Freeborn, F.S. Graham, O. den Ouden, J. Nelson, B. Campbell, B. Gulliver, D. Mansell, J. Shivas, C. Ford and G. Sosnoski. 1. ELECTION OF CHAIRMAN On a motion by Alderman G. Lorentz - It was resolved: "That Alderman C. Zehr be appointed Chairman of the Finance and Administration Committee for a term expiring November 30, 1993." 2. ELECTION OF VICE-CHAIRMAN On a motion by Alderman G. Lorentz - It was resolved: "That Alderman B. Stortz be appointed Vice-Chairman of the Finance and Administration Committee for a term expiring November 30, 1993." 3. REQUEST - DECEMBER 6 COALITION The Committee was in receipt of a letter from Ms. Donna E. Reid, Chairperson, dated November 5, 1992. At the request of the Chair, the Committee observed a moment of silence in memory of the women slain on December 6, 1989 at Ecole Polytechnique in Montreal. 4. DELEGATION - UTILITY ARREARS Mr. George Lavallee appeared concerning the City's policy on the accumulation of utility arrears. The Committee was in receipt of a letter from Mr. Lavallee dated August 18, 1992. Alderman Galloway explained that the substance of the delegation's complaint was addressed in a previous staff report, however, Mr. Lavallee was not totally satisfied with the outcome. Mr. Lavallee indicated that he represents the Forest Group (Kitchener) Limited and outlined circumstances surrounding the sale of 142 Fourth Avenue under Power of Sale as the second mortgagee. He explained that during the process it was difficult to obtain from the City an accurate figure for utility arrears at the time of the sale. Mr. Lavallee advised of his complaint concerning his treatment by City staff and their inability or unwillingness to provide him with a reasonable explanation of the outstanding arrears and penalties. He pointed out that as an individual he was unable to obtain the account status, a service routinely provided to larger companies. Alderman Ziegler noted that the property in question is in his Ward, and clarified that he had not been advised of the situation nor had he asked staff to refrain from calling him with regard to this type of issue. Alderman C. Weylie entered the meeting at this time. Alderman Galloway noted it was his understanding that if an individual could prove an interest in the property, arrears information would be made available, and questioned whether Mr. Lavallee had been asked to substantiate his interest. Mr. Lavallee questioned how the City could charge arrear penalties and not inform the person responsible for paying them. Alderman M. Yantzi entered the meeting at this time. FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 91 4. DELEGATION - UTILITY ARREARS (cont.) DECEMBER 7, 1992 Mr. Gazzola pointed out that he regrets any inconvenience caused to Mr. Lavallee, but noted a difference in opinion. He advised that staff are prepared to release all relevant information to individuals having a demonstrated interest in a property, provided the request is made in writing. He noted that the type of information referred to by Mr. Lavallee is not made available over the phone. He expressed concern over any initiative whereby the City would routinely advise people with an interest in the property, pointing out that the City is required to add arrears for other agencies such as K-W Hydro and it is difficult at any point in time to determine who in fact has such an interest. Alderman Lorentz referred to the complaint of Mr. Lavallee regarding the attitude of staff. Mr. Gazzola responded that in his 20 years experience he has never heard an allegation like the one made by Mr. Lavallee, and noted that he encourages staff to be flexible and courteous when dealing with the public. He also pointed out the difficulties inherent in satisfying customers under collection circumstances. Alderman Lorentz asked whether Ward Aldermen would be contacted in the event services are to be shut off and Mr. den Ouden replied in the negative. Mr. Gazzola added that the staff turn off services reluctantly and have no direction from Council concerning notification of Aldermen. Alderman Lorentz stated that he wished to correct the perception that Aldermen and Supervisors hesitate to get involved in these issues. Mr. Lavallee further advised that Canada Trust, which is the first mortgagee for the subject property, was informed of an arrears amount which differs from the amount actually owing, and questioned how interested parties would know if the amount provided is correct. He also questioned the dollar value of the interest penalty. Alderman Galloway asked for clarification of the utility arrears issue with respect to the Municipal Freedom of Information and Protection of Privacy Act. Mr. Sosnoski responded indicating that arrears are considered personal information under the Act and can only be released under certain circumstances. Alderman Galloway acknowledged that the privacy protection issue requires consideration, however, individuals having an interest in a property would require appropriate means of obtaining the information. Mr. McKay asked for clarification of the statement that Canada Trust received erroneous information as to the arrears amount. Mr. den Ouden replied that the amount relayed by staff would depend on when the request is made and the specific type of arrears referred to. It was generally agreed that Mr. Gazzola would ensure a report is prepared outlining the current procedure and any proposed changes and incorporating any relevant access and privacy considerations. Mayor Cardillo asked for a more detailed breakdown of the penalties and arrears as regards the property at 142 Fourth Avenue and Alderman Zehr asked that this information alone be brought to Council on December 14, 1992 for consideration. He also asked that Mr. Lavallee contact the City Clerk in the event he wishes to appear as a delegation. Alderman Lorentz asked that the information relative to the request by Canada Trust also be provided at that time. Alderman Weylie questioned the impact of access and privacy legislation on tenants who are affected by unpaid utility arrears. 5. DELEGATION - CUPE LOCAL 791 Mr. J. Nelson appeared on behalf of Local 791 with regard to the contracting of coin room services. He circulated information on a Health and Safety Committee inspection of the Transit Division at 250 Strasburg Road dated June 24, 1992 as well as a written review and recommendations concerning the coin counting operation, extracted from a report by Mr. B. Gulliver. Mr. Nelson expressed concern over any initiative to contract these services. He explained that the Health and Safety Committee had conducted an inspection of the premises and employees had raised concerns over the working environment. He noted that the Committee report was submitted and while they were awaiting action, a meeting was 5. DELEGATION - CUPE LOCAL 791 (cont.) convened on November 4 at which time the Union was first informed of the recommendation to contract coin services. Mr. Nelson also questioned why the Health and Safety Committee had not received the required notice of a Ministry of Labour inspection. He stated that the health and FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 92 - DECEMBER 7, 1992 safety concerns raised by employees had a direct relationship on the recommendation to contract the service. Mr. Nelson asked for an opportunity to review the report and meet with staff to discuss alternatives. He added that the employees affected have job seniority and cannot be laid off due to contracting of the coin services. He stated that reassignment has not been discussed and asked that the contracting initiative be forestalled at this time in order to examine alternative solutions. He also referred to a report outlining the City of London's in-house coin sorting operation which he has requested. Mr. Gulliver explained that three years ago the City was notified by the Bank that it would no longer wrap coins. He pointed out that City staff continued to process coins but over the past few years this service has been partially contracted. He noted that alternatives to purchasing new equipment were investigated, and in the opinion of staff the best of these, from a purely budgetary standpoint, was to contract the service. Mr. Gulliver referred to a projected $70,000.00 savings on labour and capital in the first year and a $54,000.00 savings every year thereafter. Mr. Campbell explained the three alternatives considered, being: a high speed sorter/counter involving the contracting of coin packaging and disposal; the purchase of a high speed sorter/counter and wrapper with contracting of coin disposal; and contracting the processing service to an outside agency. It was noted that the purchase of any new equipment would significantly decrease the amount of time required to handle coins so that this operation could be staffed on a part time basis. Mr. Campbell advised that the cost of the new high speed equipment would be approximately $25,000.00. Mr. Gulliver confirmed that a tender has been sent out for services, but none of the submissions have been accepted. He indicated that the two employees affected would be relocated to other positions with the assistance of the Human Resources Division. He added that a number of large municipalities are already contracting this service and that the Manager responsible at the City of London has indicated his preference for an outside contract. Mr. Freeborn acknowledged the City has an obligation to retrain and place the affected employees elsewhere in the compliment. Mr. Gulliver indicated he is receptive to Mr. Nelson's suggestion that the issue be discussed further. He also pointed out that the Manager of Safety had advised the Health and Safety Committee on September 23, 1992 of the proposed contracting initiative, and questioned why the Local had not advised of their concerns earlier. Alderman Wagner asked for clarification of the cash handling option sheet, especially the dollar figures appended to Mr. Gulliver's report. Alderman Lorentz questioned why staff hadn't posted notice of their intention to contract, and asked that in future Council be advised as soon as possible when contracting options are considered. Alderman Zehr asked that these comments be taken under advisement, and noted that the issue would be discussed further at the December 18, 1992 Operating Budget meeting. 6. WATER BILL - HOMER WATSON HOUSE The Committee was in receipt of a report from Mr. J. Gazzola dated December 3, 1992 concerning a substantial bill arising from a broken water line between two buildings. Moved by Mayor D.V. Cardillo - "That as per the October 5, 1992 meter reading, Homer Watson House be charged $900.00 relative to the water usage portion of the bill, and without prejudice or precedent the City waive payment of the remaining $467.90." WATER BILL - HOMER WATSON HOUSE (cont.) Mr. Gazzola reminded the Committee that it is the owners' responsibility to act on any water problems, and questioned why staff of the House had not detected this problem earlier given the volume of water involved. Alderman Galloway explained that the broken line runs from the main building to an outbuilding and there were no visible signs of water leakage. Alderman Lorentz referred to a comment that the cause of the leak may have been an improper repair by an independent contractor. He suggested that this be investigated further to determine whether there is any third party liability. Mr. Gazzola agreed and asked that this item be deferred to allow for further investigation. On a motion by Alderman G. Lorentz - FINANCE AND ADMINISTRATION COMMITTEE MINUTES It was resolved: - 93 DECEMBER 7, 1992 "That consideration of an adjustment to the water usage portion of the bill to Homer Watson House (October 5, 1992 meter reading) be deferred pending additional information on third party liability as regard the break in the water line." 7. REVISIONS TO THE K.A.P.S. PROGRAM The Committee was in receipt of a report and recommendation from Ms. P. Houston dated December 1, 1992 on behalf of the K.A.P.S. Review Committee. On a motion by Alderman G. Lorentz - It was resolved: "That effective January 1, 1993, the KAPS Program (Kitchener Awards Positive Suggestions) be implemented under the revised format detailed in the final report of the KAPS Review Committee dated October 29, 1992." Mr. McKay thanked members of the K.A.P.S. Review Committee for their work and efforts in revising the Program. 8. MUNICIPAL DEVELOPMENT CHARGES The Committee was in receipt of a report from Mr. J. Shivas dated December 3, 1992 concerning a 1993 increase in the City's Development Charges. Mr. Mansell indicated that under provisions of the existing By-law the charges would be increased automatically on January 1, 1992 based on the Engineering News Record (ENR) Cost Index of Performance over the preceding November 1 to October 31. He advised that a 5.4% rate has been posted by ENR, which given the present economic climate seems unrealistic. He noted that a private consultant has already advised ENR that in his opinion the percentage is incorrect. Mr. Mansell pointed out that staff of the Region have consulted the Composite Southam Construction Cost Index (Ontario Series) which has posted a rate of 1%. He suggested that the City could amend its by-law so as to establish the rate at the lesser percentage of either the Southam Index or the Statistics Canada index. He cautioned that if amended the procedure required would delay posting of the new rate until late January or early February of 1993. He clarified that the present by-law would only be opened as regards the information to be used in establishing the rate. Alderman Ziegler indicated his willingness to put forward a motion recommending that either the ENR or the Southam indices be used, whichever posts the lesser percentage in any given year. Mr. McKay reminded the Committee that under the current By-law the rate would be automatically increased by 5.4% on January 1, 1993. Mr. Shivas commented that the legislation does not allow for the rate being adjusted retroactively. Alderman Zehr suggested that some form of reimbursement could be authorized through a motion of Council. Mr. Shivas agreed that this could be done under Council's granting powers. He advised that the rate and the choice of indices should not be discussed this date, but that staff be directed to initiate the amendment process only. Mr. McKay suggested that Council could award a grant to applicants who have paid Development Charges between January 1, MUNICIPAL DEVELOPMENT CHARGES (cont.) 1993 and the date on which the By-law is amended. The amount of the grant would reflect the difference between the two rates in the event the amended rate is lower than the rate posted on January 1. He suggested the Lot Levy Fund could be debited in this regard. On a motion by Alderman J. Ziegler- It was resolved: "That with respect to the City's Development Charges By-law, staff be directed to immediately begin the process of amending that part of the by-law dealing with automatic rate increases, and further, That if development charges are paid between January 1, 1993 and the date that the proposed amendment takes effect, and in the event the amended rate is lower, Council award a grant from the Lot Levy Fund to rebate the difference." FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 94 - DECEMBER 7, 1992 9. 1993 TARIFF OF FEES - PLANNING AND DEVELOPMENT DEPARTMENT The Committee was in receipt of Planning and Development Department Report PD 127/92 dated November 24, 1992 containing recommendations for fee adjustments in 1993. Since the Department routinely increases its fees effective January 1, prior to Council's adoption of the Operating Budget, pre-budget approval was requested. Mr. McCabe explained that the increases proposed in the report are already incorporated in the 1993 Department Operating Budget. He pointed out that due to advertising and mailing some of the fees do not cover the actual costs of administration, and have been increased by a nominal amount. Mr. McCabe reviewed the revenue impact in each fee category, pointing out that Kitchener's fees are still among the lowest in the Region. Mayor Cardillo suggested that the revenue at issue is minimal and the fees should be frozen at their 1992 level. Alderman Lorentz disagreed pointing out that the cost of doing business in the City should not be subsidized by tax payers. A motion by Mayor D.V. Cardillo that no action be taken to increase the Planning Application fees in 1993 was voted on and Lost. On a motion by Alderman B. Stortz - It was resolved: "That effective January 1, 1993 the fees for the Planning Applications listed below be increased in the amounts indicated and Section 380.1.1 of Chapter 380 of the Municipal Code (Tariff of Fees) be amended accordingly, where applicable: 1992 1993 Official Plan Amendment $550.00/Ap p I ication $575.00/Ap p I ication Zoning By-Law $450.00/Ap p I ication $475.00/Application (plus $125.00/Sign where standard City Notice Sign required) Zoning By-law for Subdivision $450.00/Application plus $45.00/hectare to a maximum of $1,800.00 $475.00/Application plus $45.00/hectare to a maximum of $1,850.00 Part Lot Control Exemption By-law $60.00/Application plus $25.00/additional new lot created $65.00/Application plus $30.00/additional new lot created Site Plan Control $60.00/Ap p I ication $65.00/Ap p I ication 9. 1993 TARIFF OF FEES - PLANNING AND DEVELOPMENT DEPARTMENT (cont.) Letters of Compliance Certificate of Occupancy Demolition Control Condominium Conversion Sign Permits $45.00/Inquiry $45.00/Unit $50.00/Ap p I ication $300.00/Ap p I ication Mobile (Portable) Sign - $30.00/Sign Fee $50.00/Inquiry $50.00/Unit $55.00/Ap p I ication $325.00/Ap p I ication Mobile (Portable) Sign - $30.00/Sign Fee Permanent Permanent FINANCE AND ADMINISTRATION COMMITTEE MINUTES - 95 - (Ground/Pylon/Fascia) Sign - $45.00/Sign DECEMBER 7, 1992 (Ground/Pylon/Fascia) Sign - $50.00/Sign" 10. ONTARIO FAIR TAX COMMISSION The Committee was in receipt of a report from Mr. G. Sosnoski dated November 30, 1992 outlining options for presenting the City's position on property taxes to the Commission. The report was in response to direction given by Council on November 23, 1992. On a motion by Alderman J. Ziegler- It was resolved: "That the Clerk advise the Fair Tax Commission of the City of Kitchener's interest in making a presentation or otherwise providing input as regards the issue of municipal property taxes, and ask that the City be notified as to when this is appropriate." 11. ANNUAL ENERGY MANAGEMENT PROGRAM REVIEW The Committee was in receipt of an information report from Mr. C. Ford dated December 2, 1992. Mr. Ford briefly reviewed the report and demonstrated the automated building control system for the Transit Terminal. Mr. Gazzola pointed out that the payback to the City is in reduced debenture costs and that 6 years from now the City may realize upwards of $1,000,000.00 in savings. Alderman G. Leadston entered the meeting at this time. Alderman Yantzi inquired as to which of the remaining City facilities are scheduled for automation. Mr. Ford replied that 39 facilities (including every major City owned facility) have been distributed over a 10 year forecast. He noted that the system payback is between 4 and 5 years. Mr. McKay inquired whether the report and demonstration project could be submitted for consideration in conjunction with an awards program. Mr. Ford replied in the affirmative and indicated he would make the necessary submissions. 12. PROVINCIAL TRANSFER PAYMENTS The Committee accepted as information a letter from Mr. J. Mavrinac, President, Association of Municipalities of Ontario dated November 20, 1992 and addressed to the Honourable Floyd Laughren, Treasurer of Ontario. In response to a question from Alderman Galloway, Mr. Gazzola indicated that in terms of the 1993 Operating Budget a 2% reduction would translate into approximately $120,000.00. Mr. McKay indicated that this issue has been left as a choice, one option being to utilize the Tax Stabilization Reserve Fund. Mr. Gazzola indicated that this item would be flagged for a decision during budget deliberations. 13. OPERATING STATEMENTS (OCTOBER 31, 1992) Mr. J. Gazzola circulated a report this date outlining the situation as of October 31, 1992 and gave a video presentation. He pointed out that general revenues are approximately $675,000.00 ahead of budget, while department expenses are approximately $80,000.00 over budget. He also noted an operating surplus of approximately $600,000.00. Mr. Gazzola reviewed the situation as regards the Parking Enterprise and noted that there are still a substantial number of parking tickets which have been submitted to the Province for which the City is expecting reimbursement. Alderman J. Smola entered the meeting at this time. Mr. Gazzola reviewed operating statements for the Waterworks, the Gasworks and the Sewer FINANCE AND ADMINISTRATION COMMITTEE MINUTES Surcharge. - 96 DECEMBER 7, 1992 14. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, January 4, 1993. 15. ADJOURNMENT On motion, the meeting adjourned at 1:15 p.m. G. Sosnoski Manager of Corporate Records/Assistant City Clerk