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