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HomeMy WebLinkAboutFinance & Admin - 1999-02-08FAC\1999-02-08 FEBRUARY 8, 1999 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date, Chaired by Councillor J. Ziegler, commencing at 10:35 a.m. with all members present except Councillor K. Taylor Harrison. Others present: Mrs. J. Koppeser, Ms. P. Houston, Ms. L. Pasternak, Messrs. J. Gazzola, J. Witmer, S. Gyorffy, M. Tout, T. McCabe, D. Mansell, J. Shivas, J. Hancock and G. Sosnoski and D. Gilchrist. 1. INTRODUCTION - MANAGER OF OPERATIONS Mr. S. Gyorffy was in attendance to introduce the City's new Manager of Operations, Mr. Mike Tout. Mr. Tout stated that he was happy to be with the City and looked forward to working with members of Council. 2. LETTERS OF CREDIT - FINANCING Councillor J. Ziegler advised that Mr. Ed Bauman had contacted staff and asked that his request for consideration of a financial matter involving letters of credit be deferred at this time as he had to leave the City on business. Councillor C. Weylie advised that she had asked Mr. D. Mansell to attend and advised that she wanted him to address this matter. Councillor Weylie asked staff to prepare a report in this regard to be considered when the matter comes before the Committee. Councillor Ziegler requested that staff provide Mr. Bauman with a copy of their report. Mayor C. Zehr questioned whether the City's policies allow for a partial reduction in a letter of credit. Mr. Mansell advised that the policy allows for a reduction for portions of the work accepted. COMPLAINT - HUMANE SOCIETY SERVICE LEVELS Mr. Fred Barsoum was in attendance and made a presentation with respect to his concerns about the contract services provided by the Humane Society. It was noted that Mr. Barsoum had advised staff that he would appear on behalf of a number of individuals to present new information having a direct bearing on the inspection report requested by Council. The Chair noted that there were two others in attendance with Mr. Barsoum who wished to speak to the Committee. He advised Mr. Barsoum that the Committee would hear their presentations if it was new information and they would be limited to five minutes each. Mr. Barsoum advised of his concerns for the animals in the care of the Humane Society. He stated his opinion that the staff had not been adequately trained by the Board of Directors and that such a Board was not qualified to enter into an agreement with the City of Kitchener. Mr. B. Butler addressed the Committee advising that he was in agreement with Mr. Barsoum. He advised of his involvement with the Humane Society many years ago, when he was on the City of Waterloo Council. Mr. Butler referred to the rights and responsibilities of non-profit corporations and stated that under the Corporations Act of Ontario, Board members are directly responsible for the actions of their staff. Mr. Butler referred to the 1997 Financial Statements of the Humane Society and listed certain expenditures and a loss of $65,000.00 in that year. Mr. Butler stated that the Society receives $500,000.00 per year from the Twin Cities and these contributions do not produce revenues. Mr. Butler stated that 2/3 of the animals picked up are euthanised. Mr. Butler stated that the Solicitor for the Humane Society lives out of town and is on the Board of Directors. He stated that the Directors have shown gross negligence. Mr. Butler advised that he thought the current $3.2 million surplus should be returned to the Cities, noting that this is a not-for profit organization and not a business. Ms. H. Zeffer addressed the Committee advising that she has worked for another Humane Society. She advised that she agreed with the comments of Mr. Barsoum and Mr. Butler. She stated that situations are taking place in Humane Societies which are detrimental to the animals FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 8, 1999 -16- CITY OF KITCHENER 3. COMPLAINT - HUMANE SOCIETY SERVICE LEVELS - CONT'D well being and requested an audit to determine where the money is being spent. She felt the Humane Society should run a better program for the animals as the City is paying for this service. She felt they should be putting more money toward the care of animals. Mr. M. Hodgson, of Flynn and Sorbara, Solicitors for the Humane Society, was in attendance. He noted that the delegation's information has already been put before the Committee. He stated that the allegations are outrageous. He noted that an inspection of the Humane Society was conducted by a City Inspector last week. He also pointed out that Mr. P. Flynn, Solicitor for the Humane Society does reside in the City and is not on the Humane Society Board of Directors. Councillor C. Weylie questioned whether members of Council formerly appointed to the Board of Directors were permitted to vote and Mr. Hodgson advised that they were not. Mayor C. Zehr questioned whether the by-laws for the Humane Society would allow for votes by members of Council. Mr. Hodgson responded that elected members can vote and appointed members cannot. When questioned by the Committee, Ms. L. Pasternak advised that a licensing inspector made an inspection last week, which was scheduled, and a follow-up, unscheduled inspection is being conducted today. She advised that a staff report would be ready in two weeks. Councillor B. Vrbanovic questioned whether any problems were found when the inspection was made and Ms. Pasternak advised that no problems were found. Councillor Vrbanovic noted that the City's agreement is on a fee-for-service basis and Ms. Pasternak advised that the services are being performed. Ms. Pasternak also advised that the contract allows for inspections of the premises. A discussion then took place with respect to financial reporting and Ms. Pasternak read from the contract that audited statements are required every three years. The Mayor asked when the current contract expires and Ms. Pasternak responded it would expire on December 31, 2000. Mayor Zehr suggested that under a new contract, annual audits would be more in order. A brief discussion then took place as to whether the Humane Society would otherwise be required to have their financial statements audited annually. 4. TEMPORARY VENDORS LICENCE - "SEEDY SATURDAY" The Committed was in receipt of a report from J. Koppeser, Manager of Licensing, dated January 27, 1999, along with a letter from Doon Heritage Crossroads advising that they are seeking a reduction in the temporary vendor licence fees for three vendors at the annual "Seedy Saturday" event, to be held on February 20, 1999. On motion by Councillor M. Yantzi, it was resolved: "That the City of Kitchener grant the request of Doon Heritage Crossroads to reduce the required licence fee to $10.00 for a show referred to as "Seedy Saturday" to be held on Saturday, February 20, 1999." It was noted that this resolution would be forwarded to the special Council meeting this date. 5. PAWNSHOP LICENCE RENEWAL - 322 KING STREET EAST The Committee was in receipt of a report from J. Koppeser, Manager of Licensing, dated February 3, 1999, recommending renewal of the pawnshop licence of Ms. H. Hoang, for a pawnshop at 322 King Street East, Kitchener. Councillor B. Vrbanovic questioned whether there had been any problems with the business in the past year and Ms. Koppeser advised that staff were not aware of any. 5. PAWNSHOP LICENCE RENEWAL - 322 KING STREET EAST - CONT'D FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 8, 1999 -17- CITY OF KITCHENER On motion by Councillor B. Vrbanovic, it was resolved: "That Mr. Hien Hoang be granted a Pawnshop Licence, to operate a pawnshop at 322 King Street East, Kitchener for the year 1999." 38 BINGEMAN STREET MUNICIPAL CODE CHAPTER 665 (PROPERTY STANDARDS) The Committee was in receipt of Business and Planning Services Department staff report BPF 99/27, dated February 4, 1999, providing background information with respect to the Order to Comply for the property municipally known as 38 Bingeman Street. Mr. P. Habel, representative of the owner, was in attendance and advised of several discrepancies in the staff report. He asked the Committee to allow an additional 60 days to clean up this property. Mr. Habel noted that after his appearance at Court, he was asked to plead guilty and was told that he would have time to clear up the property after the weather changed. Referring to the photographs attached to the staff report, Councillor J. Haalboom questioned where the building material on the site had come from and Mr. Habel advised that it came from the site itself. He noted that this is the last of eight container loads to be removed from the site. Mr. Habel then explained his back problem and his unemployment situation noting that these had prevented him from removing the last load. Councillor J. Haalboom questioned whether the material was frozen to the ground. She also questioned what Mr. Habel's plan was if given a further 60 days. Mr. Habel advised that he was not sure how much of the material was frozen to the ground and stated that with a further 60 days, the material would be removed and the yard prepared for seeding. He noted that he would get another container on the site. Mayor C. Zehr questioned whether the Committee should make a recommendation at this time and questioned staff as to the earliest date the City would move in. Mr. J. Witmer advised that staff would see what could be taken immediately and would return for the material which is not accessible at this time. Mr. Witmer advised that staff could enter onto the site in the next two weeks. Mayor C. Zehr noted that, if the by-law is passed, the owner could still go in and take out the material before the City acts. Councillor M. Yantzi questioned whether the by-law could be passed now and staff directed to take no action for 60 days. Ms. L. Pasternak advised that Council could give that direction. Councillor Yantzi questioned whether staff could work with the owner to allow him to do the work. Councillor Yantzi stated that he had sympathy with the owner and he would like to work with him but he did not want to have to go through this process again. Mr. J. Witmer suggested a two-stage approach; 30 days to remove the accessible material and 60 days for those items frozen to the ground. Councillor J. Ziegler stated that he did not want a two-phase approach. Councillor B. Vrbanovic stated that he felt it was reasonable to give the owner more time. He suggested a period of 30 days to remove the garbage and 60 days for the other work noted in the Order to Comply. Mr. J. Witmer advised that the property standards matters listed as Items 1 - 4 of Schedule "A" of the Order to Comply do not have to be completed until June 1999. Councillor B. Vrbanovic put forward a motion to have the by-law forwarded to Council and to allow the owner an additional 30-days to do the clean up. Councillor Jake Smola advised that he would not support the motion as he thought the City had been generous to date. He felt that allowing further time would be blatant disregard for the neighbourhood and the notices which have been issued. With the FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 8, 1999 -18- CITY OF KITCHENER (5. 38 BINGEMAN STREET MUNICIPAL CODE CHAPTER 665 (PROPERTY STANDARDS) - CONT'D warm weather expected this week, Councillor Jake Smola advised that he would support a 7-day extension. He noted that what is taking place now is exactly what City staff is expected to do. He noted that he would not support a 30-day extension. Several other members of the Committee noted that they would not support an extension. The Chair noted that he had received a note from Councillor K. Taylor-Harrison, who unfortunately was absent due to ill health, stating that she would not support an extension. Mayor C. Zehr noted that if direction was given to staff today to prepare a by-law, the owner would still have two weeks to do what is required. A recorded vote on Councillor Vrbanovic's motion was requested. On a motion by Councillor B. Vrbanovic, it was resolved: "That Legal staff prepare a by-law to authorize the carrying out of the provisions of Chapter 665 (Property Standards) of the City's Municipal Code with respect to the property municipally known as 38 Bingeman Street, Kitchener, for consideration by Council on February 15, 1999, and further, That the by-law not be enforced prior to March 11, 1999, with respect to the work to be carried out under Item No. 5 of Schedule A of the Order to Comply, issued December 11, 1997, to allow the owner to complete the work." In Favour: Councillors J. Ziegler, T. Galloway, J. Haalboom, G. Lorentz, B. Vrbanovic, M. Yantzi, Contra: Mayor C. Zehr, Councillors C. Weylie, John Smola, Jake Smola A discussion then took place concerning the possibility of considering the recommendation at the special Council meeting this date. It was agreed that it should properly be dealt with at the Council meeting at February 15, 1999. It was also noted that some members who voted in favour of the motion would not be at the February 15, 1999, Council meeting. NEW BUSINESS - RATIONALIZATION OF SERVICES Mayor C. Zehr referred to an e-mail sent to members of Council and Management Committee regarding Regional Strategic Planning and Rationalization of Services in a two- tier system. He noted that reports from the local levels are to go to the Region. Chair Seiling will then meet with the Mayor. Mayor Zehr advised that when this goes back to the Region there will be an open discussion. Reference was then made to Premier Harris' recent comments when visiting the area. Mayor C. Zehr then noted that the process would involve laying out, on the table, the various options we think should be looked at. He suggested this could involve rationalization of services between Kitchener and Waterloo such as Transit. He assured the Committee that there is no intent to eliminate services or departments. Councillor Yantzi questioned whether School Boards are also being looked at and Mayor Zehr advised that he did not know. Councillor B. Vrbanovic stated that as the process proceeds, a debate will be required NEW BUSINESS - RATIONALIZATION OF SERVICES - CONT'D as to alternate models and how they could be configured. He questioned whether we would be looking at a strong two-tier system or a one-tier system like Toronto. Councillor FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 8, 1999 -19- CITY OF KITCHENER Vrbanovic stated that he did not want to discuss change for the sake of change. He noted the recent stress survey conducted at the City, stating Premier's recent comments have added to stress levels. A brief discussion then took place concerning the Premier's comments. Councillor Jake Smola questioned whether the discussion would be about governance or rationalization. Mayor Zehr responded that the discussion would likely center on rationalization within the two-tier system. Councillor John Smola stated that the Region is taking on a lot right now and spoke of the discussion which has already taken place concerning water and sewer. Councillor J. Haalboom suggested that Culture and Tourism is something to be considered. Mayor Zehr stated that the objective is to set up a process to look at rationalization of services in a two-tier system. Councillor Jake Smola questioned how this is any different than what is being done now. Mr. J. Gazzola pointed out that the City is looking at rationalization every day. He gave several examples of this kind of cooperative effort between the municipalities in the Region. He noted that this cooperation results in the three Cities being able to deliver services differently while, at the same time, gaining economies of scale. Councillor B. Vrbanovic suggested that this discussion should take place as part of the City's Strategic Plan Review. A brief discussion took place in this regard and it was noted that March 1st and 2nd are the only dates where all members of Council are available. Mayor Zehr noted that on March 1st in the afternoon there would probably be a meeting for another purpose; as he thought that the February 22nd, 1999 special Planning meeting for the Mutual Life issue would probably be deferred. Mayor C. Zehr put all members of the Committee on notice that a Strategic Plan review meeting would be held at approximately noon on Monday March 1, 1999, for three hours. He also advised that, the same day, there would probably be a special meeting for the Mutual Life property, commencing at 4:00 p.m. and Council would commence at 7:00 p.m. that same day. Councillor Vrbanovic suggested that a Facilitator be invited to attend the review session for the Strategic Plan, and that the review meetings be conducted in a similar fashion to the original Strategic Plan meetings. It was noted that the Council meeting of March 1st would be televised and Mayor C. Zehr noted that if there was a recommendation from the special Planning meeting it would not go to the Council meeting that night. ADJOURNMENT On motion, the meeting adjourned at 11:50 a.m. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on February 22, 1999. D. H. GILCHRIST COMMITTEE ADMINISTRATOR