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FINANCE & ADMINISTRATION COMMITTEE MINUTES
JUNE 267 2000
CITY OF KITCHENER
The Finance and Administration Committee met this date, chaired by Councillor J. Ziegler, commencing
at 9:55 a.m., with the following members present: Mayor C. Zehr, Councillors T. Galloway, J. Haalboom,
G. Lorentz, John Smola, K. Taylor-Harrison, B. Vrbanovic and C. Weylie. Councillor M. Yantzi entered
the meeting shortly after its commencement.
Officials Present:
Ms. P. Houston, Ms. H. Stevens, Ms. L. MacDonald, Ms. J. Koppeser, Ms. A. Menon,
Ms. S. McDonald, Ms. G. Luciantonio, Messrs. J. Gazzola, R. Pritchard, B. Stanley, F.
Pizzuto, J. Witmer, B. MacDonald, G. Sosnoski, L. Gordon, N. Kuntz, D. Hergott and
Ms. D. Gilchrist.
1. PRESENTATION OF AUDITED FINANCIAL STATEMENTS
Ms. T. Fischer of Ernst & Young appeared as a delegation and in conjunction with Mr. B.
MacDonald presented the City's 1999 Audited Financial Statements through a PowerPoint
presentation. The complete financial statement had previously been distributed to members of
Council. They reviewed the following: overall Auditor's comment, key performance indicators,
1999 consolidated revenue, current operations expenditures, capital operations expenditures,
surplus balances, key balance sheet items, tax arrears, long-term debt per capita, reserves and
reserve funds, sick leave reserve fund and capital operations not yet permanently financed.
Commenting on the Sick Leave Reserve Fund, Ms. Fischer noted that the drop was due to the
Early Retirement Incentive. Ms. P. Houston advised that she will be preparing a report on the Sick
Leave Reserve Fund.
The Committee briefly discussed the contents of the presentation and Councillor M. Yantzi entered
the meeting during this discussion.
Ms. Houston commented on the transfer of the gas surpluses, over a certain percentage, to the
Tax Stabilization Reserve Fund, and Mayor C. Zehr requested a report in this regard.
Councillor B. Vrbanovic questioned the significant increase in tax arrears and Mr. B. MacDonald
advised that it was not a concern, probably due to Bill 79, and they will work through the system.
Councillor Vrbanovic questioned whether Ms. Fischer thought the City should review the Sick
Leave Reserve Fund Policy and she advised that the current policy is 25%, which she thought was
a prudent level.
CRPS-00-031 - 1127 KING STREET EAST
- ADULT ENTERTAINMENT PARLOUR LICENCE
The Committee was in receipt of staff report CRPS-00-031, dated June 20, 2000, with respect to a
request received for an adult entertainment parlour licence. The applicant, Ms. N. Troezka
appeared as a delegation in support of her request. Councillor B. Vrbanovic clarified with Ms.
Troezka that the licence is for her alone and is not transferable and she advised that she
understood that.
Councillor M. Yantzi questioned her with respect to her previous partner and whether or not her
partner was expecting to open an adult entertainment parlour elsewhere, and expecting a licence.
Ms. Troezka advised that her partner was her sister who is now out of the business.
Councillor G. Lorentz put forward the motion contained at the bottom of Page 1 of the staff report.
Councillor Vrbanovic advised that he could support the motion as this is one of the five adult
entertainment parlours which were grandfathered and this is simply resuming operations.
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CITY OF KITCHENER
PRESENTATION OF AUDITED FINANCIAL STATEMENTS - (CONT'D)
On motion by Councillor G. Lorentz -
it was resolved:
"That Licensing staff be instructed to give notice of the application of Nina Troezka, to
operate an Adult Entertainment Parlour at 1127 King Street East, Kitchener, to Nadia
Troezka, prior to the Council meeting of July 4, 2000, and advise that should the
application be approved by Council that Council has a policy of attrition that would
preclude an application from Nadia Troezka; and,
That Council approve the application of Nina Troezka to operate an Adult
Entertainment Parlour at 1127 King Street East, Kitchener in 2000; and further,
That Nina Troezka be advised that this licence is personal to her only and that if she
were to engage a partner the status of the licence would be reviewed at that time as a
new application and in accordance with Municipal Code Chapter 505 (Adult
Entertainment Parlour)."
1762 OLD MILL ROAD
- NEIGHBOURHOOD PROPOSAL TO PURCHASE THE PROPERTY
Mr. G. Flaxbard appeared as a delegation representing the neighbourhood group from Lower
Doon and their request for financial assistance for the purchase of the property municipally known
as 1762 Old Mill Road. He provided copies of a written submission for members of the
Committee. Mr. Flaxbard advised that there are three requests being made by the neighbourhood
group, as outlined in the written submission. Mr. Flaxbard stated that the zoning for the property
permits a duplex; however, the new building under construction looks like a semi-detached and the
neighbours believe it will become student housing, with the associated parking problems. He
noted that the property is beside the Homer Watson House. He asked that a solution be found.
Mr. Flaxbard then advised that the proposal had come together quite quickly as a result of a
neighbourhood meeting which had taken place on the weekend, attended by 60 people. He also
advised that they had obtained an opinion of value for the property.
Councillor J. Ziegler advised that this is the first time since he has been on Council that such a
request as this has been made. He questioned request No. 2 in the written submission and Mr.
Flaxbard advised that the neighbours are requesting the City to fund part of the purchase.
Councillor Ziegler stated that, keeping in mind there are other neighbourhoods dissatisfied with
zoning, this could become a precedent. Mr. Flaxbard stated that he thought this situation to be
different because of the Homer Watson House, and he felt that the City should have done
something to protect it.
Councillor J. Ziegler stated that land acquisition is a caucus matter. Councillor T. Galloway
agreed that the Committee should go to into closed session for a valuation of the property.
On motion by Councillor T. Galloway -
it was resolved:
"That an in-camera meeting be held to consider a land acquisition matter."
Mayor C. Zehr suggested that if Council is sympathetic to the neighbour's request, a case must be
built so that this does not become a precedent. He questioned why this situation is different and
why the neighbours think the City should have done something more to protect the Homer Watson
House. Mr. Flaxbard responded that the City should have designated the area as heritage
conservation district; through which they could have directed the type of facade of the building, so
as to be compatible with the Homer Watson House. Also, Mr. Flaxbard advised that he could not
understand the City's interpretation of the Zoning by-law.
Mayor Zehr then questioned Mr. B. Stanley as to whether the situation would be different if there
was a heritage conservation district. Mr. Stanley responded that a heritage conservation district
would allow control over certain architectural features, and may have led to a change in the
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CITY OF KITCHENER
design, height and bulk of the building.
1762 OLD MILL ROAD
- NEIGHBOURHOOD PROPOSAL TO PURCHASE THE PROPERTY - (CONT'D)
When questioned by Councillor J. Haalboom, Mr. Flaxbard advised that he is a board member of
the Homer Watson House Foundation, and advised that it is the intention of the neighbourhood
group to donate the property to the Homer Watson House; which is now known internationally,
having visitors from across Canada, the United States and Europe.
Councillor M. Yantzi advised that he was concerned about the City being asked to contribute to
the purchase of this property in order to avoid having a legally zoned property being developed.
He stated that he is concerned about setting a precedent. He suggested that the Homer Watson
House purchase the property, subject to fundraising, and he would be opposed to the City funding
the purchase of this property. Mr. Flaxbard advised that the Homer Watson House Foundation
has not dealt with this matter yet and is currently involved in fundraising for its existing operations.
Taking on other fundraising may cause problems. Councillor C. Weylie noted that the Region
purchase two houses to protect Schneider House.
The meeting recessed as 10:48 a.m. for an in-camera meeting and re-convened at 11:08 a.m.
Councillor J. Ziegler advised the delegation that the Committee would prefer the neighbours to
work through the Homer Watson House Foundation and that any contributions made by the
neighbours be made through the Homer Watson House Foundation.
Councillor T. Galloway proposed a motion that the City agree to enter into negotiations with the
owner to determine the value of the property and to determine any future involvement by the City.
Councillor B. Vrbanovic suggested that the Homer Watson House enter into negotiations and not
the City. Councillor Galloway noted that the City owns the Homer Watson House. He stated that
he would like to see the Homer Watson House take the lead with fundraising and he would like to
see if an agreement can be made with the owner, and if possible, determine a valuation,
suggesting there is a difference between valuation and funding.
Councillor Vrbanovic questioned the delegation as to whether the owner has been advised that
they are making this request. Mr. Flaxbard advised that the owner's daughter was aware of the
neighbourhood meeting; however, they have not informed the owner of the results of the meeting.
Councillor Vrbanovic questioned whether the group has considered purchasing the property and
was advised by Mr. Flaxbard that various options were considered and they believe this one to be
the best.
Councillor T. Galloway then changed his proposed motion to recommend that the City endorse the
Homer Watson House Foundation entering into negotiations with the owner.
Councillor J. Haalboom spoke in support of Councillor Galloway's motion stating that it leaves
things open enough to allow the situation to move forward.
Mayor Zehr stated that it is better to have the Homer Watson House take the lead in this situation,
noting that City staff resources are available to them. He suggested that the Foundation could be
more successful in dealing with the current owner than the City. He requested that the full costs of
the property be considered including the cost of rehabilitating the site.
Councillor Yantzi advised that the he would support the motion but stated that he has concerns
about the City making a financial contribution to the purchase, and does not agree to the City
providing a subsidy to prevent a house from being built.
Councillor K. Taylor-Harrison advised that she would support the motion but noted that this does
not deal with the issue of student housing.
Councillor Lorentz advised that he would support the motion and also requested a report on why
this area is not a priority for a heritage conservation district.
Councillor B. Vrbanovic advised that he be in support of the motion but cautioned that he sees this
as a potentially dangerous precedent, even though the property is adjacent to the Homer
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1762 OLD MILL ROAD
- NEIGHBOURHOOD PROPOSAL TO PURCHASE THE PROPERTY - (CON'TD)
Watson House. He noted that there are similar impasses in other areas of the City. He stated
that he would be reticent to see more than limited financial involvement on the part of the City.
Councillor J. Ziegler advised that he is in support of the motion, noting that his support for the
project will be determined by how the project is supported by the neighbours.
On motion by Councillor T. Galloway -
it was resolved:
"That the City of Kitchener endorse the Homer Watson House Foundation proceeding
to negotiate the purchase of 1762 Old Mill Road in order to determine the availability
and value of the said property."
BPS-00-064 - COMMUNITY DEVELOPMENT INFRASTRUCTURE GRANT REQUEST
- STREET LEVEL SEX TRADE WORKERS' COMMITTEE
The Committee was in receipt of staff report BPS-00-064, dated June 19, 2000, recommending the
approval of a Community Development Infrastructure Grant of up to $10,000 for the Street Level
Sex Trade Workers' Committee to undertake research related to Crack-addicted to Street Level
Sex Trade Workers.
Ms. L. Calder of the Canadian Mental Health Association was in attendance in support of the staff
report.
On motion by Councillor K. Taylor-Harrison -
it was resolved:
"That Council approve a Community Development Infrastructure Grant of up to $10,000
for the Street Level Sex Trade Workers' Committee to undertake research related to
Crack-addicted Street Level Sex Trade Workers; and further,
That an evaluation of the research program be undertaken and the final report
prepared for presentation to Council."
CRPS-00-030
- 169 RIVERBEND DRIVE
- APPEAL
- REFRESHMENT VEHICLE LICENCE
The Committee was in receipt of a report CRPS-00-030, dated June 21, 2000, with respect to a
refreshment vehicle licence appeal for a privately owned property at 169 Riverbend Drive,
Kitchener.
On motion by Councillor John Smola -
it was resolved:
"That the Manager of Licensing be directed to issue a year 2000 Refreshment Vehicle
Licence to Mr. Wilk to operate a hotdog cart on private property at 169 Riverbend
Drive, Kitchener."
CRPS-00-028
- MUNICIPAL CODE
- AMENDMENTS TO CHAPTER 549 (ITINERANT VENDORS)
- REPEAL AND REPLACE
- CHAPTER 539 (MASTER ELECTRICIANS)
- CHAPTER 578 (MASTER PLUMBERS)
The Committee was in receipt of staff report CRPS-00-028, dated June 21, 2000, recommending
amendments to Municipal Code Chapter 549 (Itinerant Vendors) and that Municipal Code Chapter
539 (Master Electricians) and Chapter 578 (Master Plumbers) be repealed and
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CITY OF KITCHENER
6. CRPS-00-028
- MUNICIPAL CODE
- AMENDMENTS TO CHAPTER 549 (ITINERANT VENDORS)
- REPEAL AND REPLACE
- CHAPTER 539 (MASTER ELECTRICIANS)
- CHAPTER 578 (MASTER PLUMBERS) - (CONT'D)
replaced, all in accordance with the draft by-laws attached to the report.
On motion by Councillor B. Vrbanovic -
it was resolved:
"That Council adopt the by-laws attached to staff report CRPS-00-028 with respect to
repealing and replacing Municipal Code Chapter 539 (Master Electricians) and Chapter
578 (Master Plumbers) and amending Chapter 549 (Itinerant Vendors)."
7. KFD-00-005 - DIRECT DETECT MONITORING OF CITY FACILITIES
The Committee was in receipt of staff report KFD-00-005, dated June 7, 2000, recommending that
all City facilities that have fire alarm equipment be monitored directly by the Fire Department.
On motion by Councillor B. Vrbanovic -
it was resolved:
"That all City facilities having fire alarm equipment be monitored directly by the Fire
Department, with trouble and security alarms being routed to other facilities; and,
That the capital charges of approximately $25,000 required to convert the in-premise
equipment be paid from the Fire Department's allocated pilot capital account; and,
That the ongoing charges of $220 per premise, pro-rated for the year 2000, be
transferred from the Facilities Management budget to the Fire Department budget; and
further,
That the Fire Department be allowed to use the lowest quote to implement this change
as soon as possible."
8. KFD-00-002 - FIRE DEPARTMENT HEADQUARTERS OVER BUDGET
The Committee was in receipt of staff report KFD-00-002, dated June 15, 2000, recommending
that the budget over run for the construction and move of the Fire Department Headquarters be
taken from the capital surplus. Mr. N. Kuntz, Fire Chief, was in attendance to represent the report.
On motion by Councillor B. Vrbanovic -
it was resolved:
"That the budget over-run of $164,278 for the construction and move of the Fire
Department Headquarters be taken from the Capital Surplus."
9. FIN-00-005 - REQUEST TO HIRE ACCOUNTING ANALYST
The Committee was in receipt of staff report FIN-00-005, dated June 21, 2000, requesting
approval to hire an additional full-time Accounting Analyst for a two-year contract effective
August 1, 2000.
On motion by Councillor C. Weylie -
it was resolved:
"That the Accounting Division be given approval to hire an additional full-time
Accounting Analyst for a two-year contract effective August 1, 2000."
10. LEG-00-026 DANGEROUS DOG REGISTRY
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The Committee was in receipt of staff report LEG-00-026, dated June 20, 2000, with respect
to the preparation of a registry for distribution to neighbouring municipalities of all dogs within
the City designated as dangerous.
Councillor J. Ziegler advised that he agreed with the recommendation and also advised that it
was his intent to inform neighbouring municipalities. He asked that the staff report be sent to
the Cities of Stratford, Guelph, Cambridge, Brantford, Woodstock and Toronto with
information on how the City of Kitchener designates dangerous dogs and encouraging them to
apply for their own legislation.
Councillor B. Vrbanovic put forward the recommendation contained in the staff report with the
amendments requested by Councillor Ziegler and added that the Association of Municipalities
of Ontario be contacted and requested to promote a lobby for dangerous dogs.
On motion by Councillor B. Vrbanovic -
it was resolved:
"That staff prepare a registry for distribution to neighbouring municipalities of all dogs
within the City of Kitchener which have been designated as Dangerous; with the
following information being included in the registry: the name of the owner, the name,
breed, sex and age of the dog, its licence number, its micro-chip number, the date it
was deemed dangerous; and,
That staff send copies of staff report LEG-00-026 to: the City of Stratford, the City of
Guelph, the City of Cambridge, the City of Brantford, the City of Woodstock and the
City of Toronto, along with information on how the City of Kitchener designates
Dangerous Dogs and encouraging them to apply for their own legislation; and further,
That the Association of Municipalities of Ontario be requested to promote a lobby for
dangerous dogs."
FLYBALL TOURNAMENT BINGEMAN PARK
EXEMPTION FROM MUNICIPAL CODE CHAPTER 530 (DOGS)
The Committee was in receipt of a written request from Mr. J. Cocking advising that the Instant
Replay Flyball Team would like again to host a flyball tournament at Bingeman Park on July 29 &
30, 2000 and is requesting an exemption from the Municipal Code Chapter 530 (Dogs).
On motion by Councillor K. Taylor-Harrison -
it was resolved:
"That, notwithstanding the Pit Bull provisions in Chapter 530 (Dogs) of the Municipal
Code and Amendments, Council grant the request of John Cocking, Instant Reply
Flyball Team, for an exemption to the said Chapter to allow Pit Bulls to compete in the
Flyball Tournament to be held in the Berkley Ballroom in Bingeman Park on July 29
and 30, 2000; and further,
That the above is subject to the operator's providing the Humane Society, in advance of
that show, with a list of the individuals who will be bringing and handling pit bulls, and
also that all pit bulls be muzzled and kept on a short leash while outside of the Berkley
Ballroom premises at Bingeman Park."
EMISSIONS - QUANTEX TECHNOLOGIES INC.
It was suggested that this matter be deferred to the Committee of the Whole meeting scheduled for
Tuesday, July 4, 2000. It was requested that the correspondence circulated at the June 19, 2000
Council meeting be re-circulated. It was also requested by the Committee that Mr. G. Borovilos
attend this Committee of the Whole meeting and that Mr. T. Schmidt of the Region of Waterloo be
requested to attend.
EMISSIONS - QUANTEX TECHNOLOGIES INC. - (CONT'D)
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Councillor B. Vrbanovic advised that he would not be in attendance at the meeting of Tuesday,
July 4th and requested that staff make every effort to resolve this issue. Councillor Ziegler stated
that this had a large effect on the City when six or seven industries are being affected and
suggested that there is a citywide impact.
On motion by Councillor B. Vrbanovic -
it was resolved:
"That consideration of the emissions at Quantex Technologies Inc. be deferred and
referred to the Committee of the Whole meeting to be held on July 4, 2000; and
further,
That Mr. G. Borovilos and Mr. T. Schmidt attend the July 4, 2000 Committee of the
Whole meeting and present a firm action plan."
TENTATIVE COUNCIL MEETING DATE DURING 2000 SUMMER BREAK
It was generally agreed by the Committee that a decision on this matter would be deferred to the
end of the day.
CONSIDERATION OF A 'QUESTION' TO BE PLACED ON THE 2000 ELECTION BALLOT RE:
CHOICE OF LOCAL RESTRUCTURING MODEL
15.
Councillor G. Lorentz advised that consideration of this matter was no longer required due to the
outcome of the All Councils meeting which had taken place the previous week.
PRESENTATION OF 2001 PROFORMA BUDGET
Ms. P. Houston, with the aid of a PowerPoint presentation, presented the 2001 Proforma budget.
The following schedule for the capital budget, operating budget and user fees were presented:
CAPITAL BUDGET SCHEDULE
Budgets due from Departments
September 15, 2000
Review by Administration
Odober23,2000
Odober30,2000
November8,2000
Review by Finance & Administration Committee
January 10,2001
Review by Council
February 2, 2001
OPERATING BUDGET REVIEW SCHEDULE
Budgets due from Departments
September 29, 2000
Review by Administration
November 17, 2000
November 27, 2000
November 29, 2000
15.
PRESENTATION OF 2001 PROFORMA BUDGET - (CON'TD)
Review by Finance & Administration Committee
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CITY OF KITCHENER
January 12,2001
January 19,2001
Review by Council
February 2, 2001
USER FEE MEETING SCHEDULE
User Fees due from Departments
September 29, 2000
Review by Management Committee
October 31,2000
November 14, 2000
Review by Finance & Administration Committee
December 11,2000
Ratify by Council
December 18, 2000
Ms. Houston then reviewed factors affecting 2001 tax rates, noting that the proforma budget
anticipates an assessment growth of 1%. She reviewed expenditures changes, noting that
contacts have been settled, anticipation of a 2.5% increase in other expenditures due to inflation;
with an overall impact of 6% on the budget for expenditures. Ms. Houston was of the opinion that
a revenue increase of 5% is achievable. Ms. Houston then advised that the net levy increase
proposed would be 3.09%.
Councillor Vrbanovic thanked Ms. Houston for the information provided in the presentation but
noted that the projected tax increase is not compatible with Council's policy. He put forward a
motion that the tax increase be below the projected rate of inflation.
Councillor Galloway questioned staff's assumption that the assessment growth would be 1%. Ms.
Houston acknowledged that there is a building boom but noted that there are quite a few appeals
outstanding on commercial and industrial properties. She noted that there is also a concern about
commercial and industrial vacancies and the definition of vacant.
On motion by Councillor B. Vrbanovic -
it was resolved:
"That any tax rate increase for the year 2001 be below the projected rate of inflation;
and further,
That Departments prepare their 2001 budgets accordingly."
16. ADJOURNMENT
On motion, the meeting adjourned at 12:06 p.m.
Dianne H. Gilchrist
Committee Administrator