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HomeMy WebLinkAboutFinance & Admin - 1999-06-14FAC\1999-06-14 FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 14, 1999 CITY OF KITCHENER The Finance and Administration Committee met this date, chaired by Councilor J. Ziegler, commencing at 9:40 a.m. with the following members present: Mayor C. Zehr, Councillor J. Haalboom, Councillor G. Lorentz, Councillor John Smola, Councillor K. Taylor-Harrison, Councillor B. Vrbanovic, Councillor C. Weylie and Councillor M. Yantzi. Councillor T. Galloway and Councillor Jake Smola were in attendance for part of the meting. Others present: Ms. J. Banson, Ms. D. Arnold, Paterson, B. Stanley, T. Ouden, R. Pritchard, R. Koppeser, Ms. C. Ball, Ms. P. Houston, Ms. G.Luciantonio, Ms. B. Baker, Ms. L. Ms. C. Ladd, Ms. L. Pasternak. Messrs. J. Gazzola, G. Sosnoski, P. Sinnott, D. Clancy, J. Hancock, B. Kuntz, J. Shivas, D. Snow, E. Kovacs, D. Mansell, O. den Short, B. MacDonald and Ms. D. Gilchrist. 1. REQUEST FOR PROPOSAL - CITY OF KITCHENER LOGO The Committee was in receipt of a report from Mr. P. Sinnott, dated June 9, 1999, requesting Council's direction on the issuance of a request for a proposal to seek a consultant to develop a new logo for the City of Kitchener. Mr. Sinnott was in attendance to review the request. He advised that the recommendation is that the logo apply throughout the whole corporation except for Kitchener Utilities, Kitchener Transit and the Kitchener Memorial Auditorium. Mr. Sinnott explained that these are stand-alone businesses in a competitive environment and taking away their existing Iogos would harm them. Councillor J. Haalboom questioned the Iogos on signs on community trails and was advised that the new logo, over time, would replace these. Mayor C. Zehr advised that he was pleased to see the report and put forward the recommendation contained in it. Councillor B. Vrbanovic stated that he supports moving ahead in this direction and concurs with the recommendation. On a motion by Mayor C. Zehr - it was resolved: "That Council direct the issuance of a Request For Proposal to seek a consultant to develop a new logo for the City of Kitchener to represent itself to its many markets and audiences and that this logo be adopted throughout the whole of the Corporation exclusive of Kitchener Utilities, Kitchener Transit and the Kitchener Memorial Auditorium." 2. OMERS PLAN ENHANCEMENTS AND THE CITY'S EARLY RETIREMENT INCENTIVE PROGRAM The Committee was in receipt of a report from Ms. C. Ball, Manager of Operations, dated June 14, 1999, with respect to the City's Early Retirement Insurance Benefits. The report also recommends against the Early Retirement Incentive Program aligning with the OMERS Early Retirement enhancements and recommends that the Early Retirement Incentive Program not be renewed. Mr. W. Sleeth, representing C.U.P.E 791 and Mr. D. Lake representing C.U.P.E. 68, were in attendance and spoke in support of extending the Early Retirement Insurance Benefits to eligible staff contemplating retirement under the OMERS Early Retirement Enhancements. They spoke against the staff recommendation not to extend the Early Retirement Incentives Program to align with the OMERS Early Retirement Enhancements. They also spoke against the staff recommendation not to renew the Early Retirement Incentives Program. They requested that the insurance benefits be updated to the 1999 Fee Schedule. They also requested that the Early Retirement Incentive Program be continued for another three years. Mr. D. Paterson spoke briefly about the current insurance benefit rates advising that he would provide a full report for a future meeting. Councillor G. Lorentz questioned the three year increments and Mr. Paterson advised that in 1996 Council made the last changes to the Early Retirement Incentives Program. Council, at that time, decided to review the policy every three years. The three years expires in FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 86- CITY OF KITCHENER September of this year. It is coincidental that the OMERS Early Retirement Enhancements OMERS PLAN ENHANCEMENTS AND THE CITY'S EARLY RETIREMENT INCENTIVE PROGRAM - CONT'D have come about and staff have brought this forward as one package. Mr. J. Gazzola advised that there are two different issues. The recommendations contained in the report have come from Management Committee. He stated that the Incentive Program makes no sense in today's operation. He noted that the incentives came in under the Social Contract because we had to reduce staff. By dealing with this matter today, all staff will have three month's notice. Councillor B. Vrbanovic declared a pecuniary interest in this matter and did not participate in any discussion or voting, as he wife is employed by the City of Kitchener. Mayor Zehr questioned whether other municipalities had a similar program. Mr. Paterson advised that the Incentive Program is unique but the benefits program is not. He advised that he did not know what the other municipalities are doing with the 50-55 age group. The Mayor then questioned the value of the benefits to an employee per year. Mr. Paterson advised that the benefits cost the Corporation $300,000.00 per year in total but he did not know the cost per employee. Mr. H. Vance representing Local 636, was the next delegation to address the Committee advising of their support for the recommendation regarding insurance benefits and their opposition to the two recommendations regarding the Early Retirement Incentive Program. He stated that 1/3 of the bargaining unit is senior employees and they have earned this benefit. He felt there would be savings for the Corporation in replacing retirees with new employees. He felt that the removal of the incentives would affect employee/employer relations. He asked that the incentives be approved for three more years. Councillor Haalboom questioned how many members would benefit and Mr. Vance estimated 10 employees. Messrs. N. Bricker and M. Smith of Local 4304 addressed the Committee advising of their position, which was similar to the other unions. They requested that the incentives be continued for another three years. Councillor Haalboom questioned how many of their members would benefit and was advised 15 - 20. Mayor Zehr questioned what cost offsets there would be in extending the insurance benefits and Mr. Paterson advised that there would not be any. Mr. Paterson noted that one of the delegations alluded to the potential cost savings in having senior employees, with six weeks vacation, retiring and being replaced by new employees who would have fewer vacation days. He noted that these savings are not sustainable. Mr. Paterson then advised that the cost of insurance benefits to the Corporation is $2,100.00 per year for a family member. He noted that these benefits are not replaceable on the open market. Mayor Zehr stated that the expansion and extension of the Early Retirement Incentives were brought in for an entirely different reasons and the economic climate is not the same today. A brief discussion then took place concerning the possibility of allowing retirees to buy into the City's insurance benefits. When questioned by Councillor John Smola about the core complement, Mr. Gazzola stated that this type of incentive makes no sense in this day and age. Mayor Zehr asked that Part 1 of the recommendation be voted on separately from Parts 2 and 3. Mayor Zehr then moved Parts 2 and 3 regarding not expanding or extending the Early Retirements Incentives. Councillor G. Lorentz then moved Part 1 of the recommendations dealing with the insurance benefits. Councillor Haalboom questioned the age level for Part 1 and was advised that it would cover those employees who could retire under the new OMERS enhancements. Councillor Haalboom questioned skill drain and Mr. Gazzola commented that this recommendation would not affect that; as the OMERS enhancements already allow for retirement at 50. FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 87- CITY OF KITCHENER Councillor John Smola questioned a comment previously made by Mr. Gazzola about OMERS PLAN ENHANCEMENTS AND THE CITY'S EARLY RETIREMENT INCENTIVE PROGRAM - CONT'D legislation. Mr. Gazzola noted that this is a special payout and it may be legislated out. He noted that the City had two special incentives, if an employee did not need to be replaced. This additional incentive was put in during the Social Contract. We now have very little room for retirement. Councillor John Smola then referred to the six weeks vacation. He asked staff to provide figures as to whether there were cost savings when an employee with six weeks vacation is replaced by a new employee. Another discussion then took place with respect to retirees being permitted to buy-in to the City's insurance benefits. Councillor Ziegler explained that Part 1 of the staff recommendation, which was moved by Councillor Lorentz, would require the City to pay. Mayor Zehr advised that, if the motion was defeated, he would put forward a motion to allow retirees to have access to the City's insurance benefits if they paid the costs. On a motion by Councillor G. Lorentz - it was resolved: "That the City of Kitchener extend its early retirement benefits insurance to eligible staff who are contemplating retirement under OMERS Earlier Retirement Enhancements." Councillor G. Lorentz stated that the whole idea for an incentive program is to have an incentive. He stated that if we close the door we must be sure that there is no more opportunity for us or our employees. He advised that he could not support the Mayor's motion and he requested a deferral for more information. Councillor John Smola requested the information for Monday night's Council meeting. On a motion by Councillor G. Lorentz - it was resolved: "That consideration of the following staff recommendation be deferred to the Council meeting of June 21, 1999: That the City of Kitchener not extend its Early Retirement Incentive Program to firefighter staff between the ages of 45 - 50 (Normal Retirement Age 60) and between the ages of 50 - 55 (Normal Retirement Age 65) for all other staff; and further, That the City of Kitchener not renew its Early Retirement Incentive Program to eligible firefighter staff between the ages of 50 - 59 and all other staff between the ages of 55 - 64." 1998 FINANCIAL STATEMENTS Mr. B. MacDonald introduced the Financial Statements and reviewed them. Ms. D. Tunks of Ernst and Young was in attendance to assist with the review of the Financial Statements. She advised that she has reviewed the Corporation's financial processes and controls and they are in order and that staff has been very co-operative. Councillor Jake Smola entered the meeting at this time. With the assistance of a PowerPoint presentation both Ms. D. Tunks and Mr. B. MacDonald reviewed with general comments and the key performance indicators of the City's 1998 Financial Statement. The key performance indicators were: surplus balances, taxes, long- term debt, reserves and reserve funds and capital operations not yet permanently financed. With regards to the Sick Leave Reserve Fund, Mayor Zehr noted that a request for a study on sick leave was included in the Committee's Unfinished Business list and when questioned by the Mayor, Ms. P. Houston advised that a report could be available at the next meeting. FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 88- CITY OF KITCHENER 4. PROPERTY STANDARDS - 50 PELTZ AVENUE The Committee was in receipt of Department of Business and Planning Services Staff Report BPS #99/80, dated May 8, 1999, recommending the passing of a by-law authorizing repairs to the exterior of the building at 50 Peltz Avenue at the property owner's expense, if this has not been done by the owner on or before July 8, 1999. On a motion by Councillor John Smola - it was resolved: "That Council pass a by-law at its June 21, 1999 meeting, authorizing repairs to the exterior of the building (the rear and front steps must have a handrail installed and the front porch/landing area must have a guard rail installed) at 50 Peltz Avenue (Mr. John V. Johnson) at the property owner's expense if this has not been done by the owner on or before July 7, 1999." 5. LOT MAINTENANCE - DRUMMOND DRIVE The Committee was in receipt of Department of Business and Planning Services Staff Report BPS #99/90, dated June 8, 1999, with respect to Council passing a by-law authorizing the removal of waste material from a property on Drummond Drive, at the property owner's expense, if this has not been done by the owner on or before July 15, 1999. On a motion by Councillor J. Haalboom - it was resolved: "That Council pass a by-law at its June 21,1999 meeting, authorizing the removal of waste material from Drummond Drive, Assessment Roll #040-034-127, at the property owner's expense, if this has not been done by the owner on or before July 15, 1999." 6. PITBULL EXEMPTION The Committee was in receipt of a report from Mr. G. Sosnoski, Deputy City Clerk, dated June 3, 1999, with respect to a request received for an exemption from the provisions of Chapter 530 (Dogs) on the Municipal Code for a flyball tournament between teams of four dogs to be held at the Berkley Ballroom, Bingeman Park, on July 24 and 25, 1999, with some of the competing dogs being pitbulls. On a motion by Councillor G. Lorentz - it was resolved: "That, not withstanding the Pitbull provisions in Chapter 530 (Dogs) of the Municipal Code, and amendments, Council grant the request of John Cocking, Instant Replay Flyball Team, for an exemption to the said Chapter to allow pitbulls to compete in the flyball tournament to be held in the Berkley Ballroom in Bingeman Park on July 24 and 25, 1999; and further, That the above is subject to the operators providing the Humane Society, in advance of that show, with a list of the individuals who will be bringing and handling pitbulls, and also that all pitbulls will be muzzled and kept on a short leash while outside of the Berkley Ballroom premises at Bingeman Park." 7. CAPITAL LOANS - CENTRE IN THE SQUARE The Committee was in receipt of a report from Ms. P. Houston, Chief Financial Officer and City Treasurer, dated June 9, 1999, with respect to a request from the Centre in the Square for a capital loan of $200,000.00 for the purposes of installing additional exterior lighting. FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 89- CITY OF KITCHENER CAPITAL LOANS - CENTRE IN THE SQUARE - CONT'D On a motion by Councillor B. Vrbanovic - it was resolved: "That a capital loan of $200,000.00 for the Centre in the Square for the purposes of installing additional exterior lighting be approved, with the terms of the loan as follows; a) interest to be charged at the rate of prime plus 1 per cent, b) principal and interest to be repaid as funds are available, to a maximum of three years from the date of the loan advance." PERMISSION FOR FOOD VENDORS TO LOCATE ON CITY PROPERTY The Committee was in receipt of a report from Ms. J. Koppeser, Manager of Licensing, dated June 9, 1999, with respect to a request to invite various vendors to Civic Square and Victoria Park to see food items at special events to be held during the month of July and August. On a motion by Councillor M. Yantzi - it was resolved: "That permission to sell food in Civic Square and Victoria Park be granted on the following dates, provided the necessary licences, including Health and Fire approvals, are obtained: CIVIC SQUARE ACTIVITIES Tooney Tuesdays July 6, 13, 20, 27, 1999 Vendor selling Ice Cream Global Beat July 8 July 15 July 22 July 29 Vendor selling Croatian foods Various restaurants and a Vendor selling Tamales Restaurants selling Celtic foods Restaurant selling Coffee & Pastries VICTORIA PARK ACTIVITIES Kidspark August 18 Vendors selling French Fries, Pizza and Ice Cream City Blues Picnic August 15 Vendors selling Hot Dogs, Hamburgers, Swordfish." KDBA - USE OF GOUDIES GREEN The Committee was in receipt of a report from Ms. L. Gove, Supervisor, Arts, Culture, Special Events, dated June 8, 1999, with respect to a request from the Kitchener Downtown Business Association to use the Goudies Green site for the purpose of setting up an inflatable mountain climbing apparatus during the "Cruising on King Street" event to be held on July 9, 1999. On a motion by Councillor K. Taylor-Harrison - it was resolved: "That the Kitchener Downtown Business Association be permitted to use the Goudies Green site for the purpose of setting up an inflatable mountain climbing apparatus (MT. Fuji) supplied by Consumer Impact Marketing as part of the July 9, 1999 "Cruising on King Street" event, provided the equipment complies with fire code, licensing and insurance requirements; and further, That the Mayor and Clerk be authorized to sign an agreement with the Kitchener Downtown Business Association for the use of Goudies Green; with the said agreement to be prepared by and be satisfactory to the City Solicitor." FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 90- CITY OF KITCHENER 10. DEVELOPMENT CHARGES BY-LAW The Committee was in receipt of Inter-departmental Staff Report BPS #99/83 dated June 9, 1999, with respect to a by-law to provide for the implementation of development charges. Ms. M. Taylor of St. Mary's Hospital and Mr. P. Britton were in attendance to speak to the staff report. Ms. Taylor advised that a Cardiac Care Centre is to be added to the hospital and the development charges by-law may be applicable to the hospital expansion. She noted that the hospital is an essential community service and she asked that it be exempt from development charges. Mayor Zehr noted that this matter had been discussed at a meeting at the Region and he thought that the Regional development charges had been waived for hospitals. Councillor Galloway concurred with Mayor Zehr. He stated that the City must look at the same question or build an exemption into the by-law. Ms. D. Arnold advised that under the previous act, there was a provision for the exemption for institutions, but under the current act there is no provision for an exemption. She suggested that Council consider grants on a case by case basis. She noted that any increase required in capital would have to be paid from the Capital Budget and not the Development charges account. Councillor Galloway noted that this advice had not been given at the Regional meeting and he did not know that hospitals could not be exempt. Mr. P. Britton noted that in the City's proposed by-law, hospitals are classed as a non-residential use and are charged on a square foot basis, and in the Regional by-law on a per bed basis. He noted that hospitals are an essential service and he asked for consideration of an exemption. He believed that hospitals could be exempt in the by-law. Mayor Zehr questioned whether the City's by-law could be changed to a per bed basis. Mr. Mansell responded that it would take a lot time to pull hospitals out and list them on a per bed basis. He explained the work required. Mayor Zehr suggested that the rate for hospitals be established on a per bed basis. Ms. C. Ladd suggested that they could be listed in the by-law as a rooming house; then the City could collect on a per bed basis. Ms. Ladd noted that there is a move afoot for private hospitals. By definition in the by-law, they are classified as hospitals. If you change the hospital definition, it will affect all hospitals. Councillor Galloway requested that, between now and the Council meeting Monday night, staff look at the options for hospital expansions. He noted that when the community has to fund raise to assist with the cost of hospital expansions it would be a good idea if they can be exempt. Mr. Britton advised that he was in attendance to represent two groups. He noted that he supported the process as an open process and supported the policy recommendations. He referred to a letter from himself to Mr. D. Mansell with respect to Woolwich Street. He requested that half of this road's upgrades be included in the Kitchener by-law. He noted that the road is designated as a collector road and will serve multiple developments in Kitchener and Waterloo. Mr. Mansell responded that, not withstanding that the road is in Waterloo, if it is a 20-meter collector road it would not be development charge applicable. He stated that it was the opinion of the development charge team that Woolwich Street would not be development charge applicable. It would cost $700,000.00 from the estimates provided. Councillor Galloway questioned why Waterloo was proposing to pay only 50 per cent and Mr. Mansell responded that they felt that Kitchener should pay the other 50 per cent. He noted that the development charges would only pay for this if it is an arterial road. A discussion then took place with respect to the individual rates and the percentage decreases. Councillor Galloway questioned other municipalities and Ms. Ladd noted that, so far, Kitchener is the lowest of all the municipalities and we are significantly lower than we were before. A brief discussion then took place concerning whether these development charges would encourage in-fill development and development in the downtown. This was followed by a discussion on what would happen if rationalization of certain services would take place. FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 91- CITY OF KITCHENER 10. DEVELOPMENT CHARGES BY-LAW - CONT'D On a motion by Councillor T. Galloway - it was resolved: "That the Draft By-law attached to the Inter-Departmental Staff Report BPS 99/83, dated June 9, 1999, providing for the imposition of Development Charges be revised as follows: a) Replacing Schedule "B" 'Development Charge Rates' with the revised Schedule "B", attached to the report; and, b) Replacing Schedule "C" 'City of Kitchener Downtown' with the revised Schedule "C", dated June 8, 1999; and, That the "Background and Basis for City of Kitchener Development Charge Policy" (Background Study) be revised by replacing it with the Background Study dated June 8, 1999 attached to the report; and, That City Council adopt the Background Study dated June 8, 1999 and the Draft By-law providing for the imposition of Development Charges dated May 15, 1999 as revised above; and, That, upon receipt of a formal request by a subdivider, the Department of Business and Planning Services be directed to modify those conditions of draft approval which require the payment of that portion of the development charges related to engineering services prior to registration of plans of subdivision and defer such payment to the issuance of a building permit with the Legal Department being authorized to prepare supplementary agreements in accordance with the modified conditions accordingly; and further, That, at the Council meeting of June 21, 1999, staff provide a report on the possibility of hospitals being exempted from paying development charges." The Committee thanked staff for the enormous amount of work that was put into this report. 11. NEW FIRE PREVENTION OFFICER The Committee was in receipt of a report from Mr. J. Hancock, Fire Chief, dated June 14, 1999, requesting the approval of a new Fire Prevention Officer position in the Kitchener Fire Department. Mr. J. Hancock addressed the Committee advising that this position had previously been identified, as Mr. J. Coish had been seconded to the Alarm Monitoring Program and hiring this new Fire Prevention Officer would maintain the status quo for fire prevention. Councillor G. Lorentz put forward the recommendation contained in the staff report. Councillor T. Galloway confirmed that Mr. Coish would continue with the Fire Alarm Monitoring Program and the current proposal would be to replace his former position. Councillor Galloway then questioned, whether in the fullness of time, it will take a professional firefighter to work in the Fire Alarm Monitoring Program. Mr. Hancock responded that, in the future, it will likely take a manager which would be a non-union position and not a professional firefighter. Mayor Zehr questioned whether there would be contracts from other municipalities for the Alarm Monitoring Service and Mr. Hancock responded that they are working on strategies for consulting with other municipalities and there should be a fee. Mr. Sinnott advised that they have been discussing what could be included in a marketing package. FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 92- CITY OF KITCHENER 11. NEW FIRE PREVENTION OFFICER - CONT'D On a motion by Councillor G. Lorentz - it was resolved: "That a new Fire Prevention Officer position be approved; with the position being unionized within the Kitchener Professional Firefighters Association; and further, That the new Fire Prevention Officer position be an increase in the complement of the Fire Department." 12. 9000 SERIES CLASSIFICATION REVIEW The Committee was in receipt of a report from Ms. B. Baker, Human Resources Officer, dated June 14, 1999 with respect to the rating system, salary schedule, guidelines of application and future wage maintenance proposals for the 9000 Series Classification of Employees. Ms. Baker was in attendance to represent the report and advised that this classification for employees is not covered by a collective agreement. These employees are primarily part-time and seasonal. She noted that there has been no increase in the wages of the 9000 series classification since the Social Contract in 1993 and there is no logical reason behind the current schedule. Ms. Baker advised that the report went to Management Committee who worked through an improved process and they are in support of this report. She noted that she had done work with the functional managers and applied a rating system to the positions. She also advised that the City of Kitchener is in the 36th percentile of the market. Ms. Baker then reviewed Appendices 4, 5, 6 and 7 attached to the report. Upon questioning by the Committee, Ms. Baker advised that staff were not confident that moving to the 50th percentile would attract enough people. She noted that the City is having a very difficult time filling these positions and suggested that Wilson Pool may not be able to open this year because enough staff have not been hired. Mr. Clancy explained the problem with staffing all the pools noting that there are not enough guards because wages are so slow. He also advised that the strike has caused some problems in this regard. Councillor T. Galloway commented that this was an excellent report. He questioned whether it was necessary to have steps when hiring students. Ms. Baker responded that the steps are used primarily for staff who are coming back. She also noted that the cleaners are sometimes mature employees. She advised that the steps allowed flexibility for what individuals are bringing to the job. The Committee referred to Appendix #5 noting that the largest cost is Aquatics and questioned what recovery is available in terms of user fees. Mr. Clancy advised that he was not sure of the exact percentage but that he would come back with fee increases. He stated that this is a tremendous skill set and when the student market is plentiful the City of Kitchener is not competitive and we are now out begging. He advised that they are using the information on potential increases in salaries to keep those student workers that they already have. Mr. J. Gazzola stated that the wages are out of whack and staff wanted to deal with this situation now. He noted that very shortly we will be going into the budget process and this will be reviewed at that time. Councillor T. Galloway referred to the first category in Appendix 4 stating that he felt the City should not be paying less than $7.00 per hour. He suggested that the Level 1 Category be revamped to have three steps only as follows: $7.00, $7.25 and $7.50. Mayor Zehr put forward the recommendation contained in the staff report. Councillor Jake Smola stated that he was surprised that the non-union/management rate FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 93- CITY OF KITCHENER increases would not have applied to this group of employees. He questioned how many classifications there were and Ms. Baker responded that there are 20 - 23 classifications. Councillor Jake Smola then questioned whether we could have union persons and one of 12. 9000 SERIES CLASSIFICATION REVIEW- CONT'D these employees at the same level. It was noted that there is a special letter of understanding. Councillor Jake Smola then advised that he had some concerns and felt that this was not aggressive enough. He stated that he did not think that the City was getting the people it should because the rates are so Iow. He asked staff to come back with a three-year strategy as he felt the 65th percentile was not enough. Councillor G. Lorentz advised that he appreciated the report, which he felt was right on track. He noted that we are talking about students here. Councillor B. Vrbanovic asked for a report comparing full-timers and part-timers doing the same jobs. He referred specifically to cleaners and building attendants. Councillor T. Galloway put forward an amendment to Mayor Zehr's motion to revise the first level on Appendix 4 to three job steps. The first step being $7.00, the second step being $7.25 and the third step being $7.50. This amendment was voted on and carried. On a motion by Mayor C. Zehr - it was resolved: "That we approve the Ranking System, Salary Schedule, Guidelines of Application and Future Wage Maintenance proposals for the 9000 Series Classification Table as attached to the report of Ms. B. Baker, Human Resources Officer, dated June 14, 1999, save and except for a Level 1, Appendix 4, which shall three steps, as follows: Step 1 - $7.00 Step 2 - $7.25 Step 3 - $7.50; and further, That the 9000 Series Classification Table, as considered by the Finance and Administration Committee on June 14, 1999, be effective July 1, 1999." 13. RECESS This meeting of the Finance and Administration Committee recessed at 12:45 p.m. to be re- convene at 7:20 p.m. to consider the result of the Public Opinion Poll and to discuss Regionalization / Rationalization of Services. The meeting was chaired by Councillor J. Ziegler, with the following members present: Mayor C. Zehr, Councillors T. Galloway, G. Lorentz, C. Weylie, B. Vrbanovic, J. Haalboom, John Smola, Jake Smola, M. Yantzi, and K. Taylor-Harrison. Others Present: J. Gazzola, J. Shivas, B. Kuntz, T. Clancy, R.W. Pritchard, P. Houston, J. Hancock, S. Gyorffy, E. Kovacs, P. Sinnott, B. Stanley, and G. Sosnoski. 14. RATIONALIZATION/REGIONALIZATION OF MUNICIPAL SERVICES The Committee agreed to the suggestion of Councillor T. Galloway that given the nature of the debate, Councillor J. Ziegler be given greater latitude in expressing personal opinions from the Chair. Mayor C. Zehr advised that it is necessary to establish the City's position this evening in respect to the recommendations put forward by the area Mayors and Regional Chair so that these can be conveyed to the Region by June 16, 1999. Councilor G. Lorentz expressed concern with both debating and attempting to finalize the City's position this date, and it was agreed to revisit the issue of ratifying any Committee recommendations later in the meeting. FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 94- CITY OF KITCHENER 14. Mr. Rob Grein and Mr. Greg Bernhardt of PMG Consulting Limited were in attendance and presented the results of the Public Opinion Poll conducted to determine attitudes throughout the Region towards governance and the delivery of services. Mr. Grein noted that the method used was a random telephone sample with a total sample size of 959, a 72% response rate RATIONALIZATION/REGIONALIZATION OF MUNICIPAL SERVICES- CONT'D and a margin of error of plus or minus 3.2%. Mr. Grein and Mr. Bernhardt then summarized the issues and major findings of the survey; including: perceptions of the impact of combining or rationalizing services; measuring satisfaction with current service levels; public awareness of issues involving amalgamation and the rationalization of services; attitudes towards governance and service delivery. Councillor J. Ziegler referred to an American study appended to a recent memorandum to the Toronto Board of Management which indicates there is evidence of substantial diseconomies of scale in areas of amalgamation and delivery of services once a combined population reaches the 500,000 level, which is slightly higher than the population of the Region. Mr. Lawrence Bingeman appeared as a delegation and on behalf of Bingeman's and encouraged the City to address the Iow inventory of available industrial/commercial property within the municipality. He also cautioned the should Waterloo Region assume control of sewer and water services, control over capacity should not be jeopardized so as to ensure orderly development which is either underway or in the early stages of planning. Mr. Paul Britton appeared on behalf of the Waterloo Region Homebuilders Association to clarify the Association's position in regard to sewer and water services. He stated that this position in presented in the context of ensuring a viable two-tier system with both levels having an important role to play. Mr. Britton advised that he has consulted with staff at the Region and Municipal levels as well as users of the system and in the view of the Association the current system is as close to one stop shopping as can be achieved under a two-tier model. He offered the opinion that transferring responsibility for sewer and water to the Region is a step backward and undermines the high level of coordination achieved to date. Mr. Britton stated that the Homebuilders Association is asking Council not support the transfer of sewer and water responsibility and operations to the Region and to proceed with the further devolution of planning responsibilities to local municipalities. Mr. Britton argued that transferring sewer and water to the Region would result in a less efficient and more costly service with increased duplication. He suggested that the cost savings estimated under a one-tier sewer and water system appear to be overstated, especially since they do not include system expansion and upgrades. He also noted that the Association supports each municipality implementing best management practices in this area, and noted that staff of the municipalities are prepared to work in this direction. Mr. Britton pointed out that Kitchener's approach to staging of development has now found its way to Waterloo and Cambridge and that the one missing piece in this approach is the Region of Waterloo, which has yet to implement a staging of development report. He added that staging of development relative to growth management is a major strategic issue and that the prioritizing of sewer and water infrastructure is also a concern. In summary, Mr. Britton stated that assuming a two-tier system, there should be a continued devolution of responsibilities with the Region involved in macro-servicing issues with responsibility for the sewer and water distribution network to be retained by the local municipalities. Mr. Britton noted that there are very few conflicts between the area municipalities which suggests there is little reason for the Region to assume responsibility for sewer and water. The Committee then dealt with each of the recommendations in the April 14, 1999 document put forward by the area Mayors and Regional Chair concerning municipal government reform in Waterloo Region. A brief discussion took place as to whether members of Regional Council have a FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 95- CITY OF KITCHENER 14. responsibility to vote in accordance with their local municipality's position or are free to exercise their own discretion. Councillor G. Lorentz argued that Regional Council members should vote in accordance with the direction of the local municipality, especially since at present representatives are appointed rather than directly elected. Councillor Yantzi disagreed, noting RATIONALIZATION/REGIONALIZATION OF MUNICIPAL SERVICES- CONT'D that it was his view that he was elected to the dual roles of a Kitchener and a Regional Councillor and there is no basis in law to suggest that Kitchener Councillors must vote as directed by their local Council. On motion by Mayor C. Zehr - it was resolved: "That a strong two-tier system of municipal government be maintained in Waterloo Region." The Committee then addressed the matter of separately elected Regional and Municipal Councils. Councillor Lorentz argued that at present sitting on both Councils allows for a comprehensive knowledge of both the regional and local aspects of a debate. He encouraged Council to reject the concept of separated Regional and Municipal Councils. Councillor Yantzi argued that in order to retain a viable two-tier system it is necessary that each of the two levels have their own, separate body of governance. He acknowledged that this would result in an increase in area politicians; however, he stated he is not uncomfortable with this scenario on the basis that it is better to have more part-time politicians than fewer, full-time politicians. Councillor Galloway offered the opinion that separately elected Councils are the best insurance of a strong two-tier system. He added that this would also ensure the office of Councillor remains part-time and in so doing make elected office more accessible to all citizens. Councillor Vrbanovic argued in favour of separated Councils, suggesting that the more people who are involved in governance the stronger the community, Councillor John Smola questioned whether the area Mayors should be included on Regional Council given the concerns expressed over workload and the advent of full-time Councillors. Mayor Zehr stated that the issue of separated Councils should not confused with the size of Councils. He stated that the number of politicians region-wide would not automatically increase, as initial discussions involved a further reduction in the size of Regional Council. Mayor Zehr encouraged the Committee to deal with governance issues in addition to services as this will make a strong statement which may be sufficient to discourage the Province from meddling in local affairs. Councillor Taylor-Harrison argued that if the Councils are to be truly separate, the area Mayors should not sit on Regional Council. Mayor Zehr explained that it was felt this would facilitate communication between the area Municipalities and the Region. It was generally agreed to consider the size of Regional Council prior to voting on whether or not the area and Regional Councils should be separate. Mayor Zehr noted that in any scenario he would not suggest Kitchener reduce the size of its Council as it already has one of the highest per capita representations in the Region. Councillor Jake Smola offered the opinion that Kitchener should not have less than one third of the total representation on Regional Council. Councillor John Smola advised that this an opportunity to increase the City's representation as Kitchener contributes approximately 43% of the Regional tax bill and should have corresponding representation on Regional Council. Councillor Galloway suggested that with separate Councils the size of Regional Council would have to remain the same if the area Mayors are to be included. On motion by Councillor Jake Smola - it was resolved: "That Regional Council remain the same size as at present, with the City of Kitchener maintaining no less than its current representation." On motion by Councillor T. Galloway - it was resolved: FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 96- CITY OF KITCHENER "That contingent upon Regional Council remaining at its current size, the Mayors of the area Municipal Councils continue to sit at both levels." 14. RATIONALIZATION/REGIONALIZATION OF MUNICIPAL SERVICES - CONT'D The Committee then dealt with the recommendation to separate Regional and area Municipal Councils, and a recorded vote was requested. Moved by Councillor T. Galloway "That Regional Council be separated from the area Municipal Councils and that the size of the current Regional Council remain as at present." In Favour: Contra: Mayor C. Zehr, Councillors T. Galloway, B. Vrbanovic, M. Yantzi and Jake Smola. Councillors K. Taylor-Harrison, John Smola, J. Haalboom, J. Ziegler, G. Lorentz and C. Weylie. Motion Lost. The Committee then dealt with the recommendation concerning special purpose bodies. Councillor B. Vrbanovic indicated that he would not categorically support a prohibition on the establishment of special purpose bodies as these may have a practical use in future. Mayor Zehr advised that it was his understanding this recommendation is intended to apply only to the services under discussion at this time. It was agreed to deal with the issue of transit services prior to consideration of the recommendation relating to special purpose bodies. The Committee then dealt with the recommendation to regionalize transit services. Councillor Lorentz argued that all transit service models should be examined before a final decision is made, including contracting the service back to the municipalities and directing them to extend services to the townships. Councillor Ziegler noted that any new routes should be a Regional cost and not accrue to the individual municipality receiving the service. Councillor Yantzi argued that a regional transit service makes sense, but not as a cost saving measure, rather on the basis that it is a more accessible, viable system of transportation. Councillor Vrbanovic suggested that any motion in this regard should reference how transit will be funded. He noted that even though the Region may be responsible for transit this does not necessarily mean they must directly provide the service themselves. Mayor Zehr advised that he supports the transfer of transit to the Region, notwithstanding that all costs have not been identified. Councillor Galloway suggested that he could support the Region assuming responsibility for transit services in principle, but that the service should be on a user pay basis. Councillor Ziegler disagreed suggesting that the cost of Regional transit should be paid equally by every taxpayer in the Region. Councillor John Smola questioned how Kitchener would be compensated for its capital investment in the transit service and suggested that similar to the fire service, a detailed costing study should be undertaken before making a final decision on a regionalized transit service. Councillor Lorentz suggested that Kitchener should retain some involvement in how this service is modeled. On motion by Councillor G. Lorentz - it was unanimously resolved: "That Kitchener City Council supports in principle the Region assuming conventional transit services and services for the disabled subject to further discussions with the Cities of Kitchener, Cambridge, and Waterloo and a satisfactory negotiation of the related details, including but not limited to: disposal of assets; operational funding; service levels; and, the future of current transit employees." On motion by Councillor M. Yantzi - it was unanimously resolved: FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 97- CITY OF KITCHENER 14. "That all services be under the control of directly elected Councils." RATIONALIZATION/REGIONALIZATION OF MUNICIPAL SERVICES- CONT'D On motion by Councillor Jake Smola - it was resolved: "That the collection of solid waste be assumed by the Region January 1,2000 with the level of service to be determined in consultation with area municipalities." Moved by Mayor C. Zehr "That all sewer and water operations and responsibility for billing be assumed by the Region January 1, 2000, with the condition that no municipality shall incur an increase in rates as a result of the transfer and that financial plans would be developed permitting the restructuring of local area operations within one year of the transfer to achieve local savings." Councillor Ziegler indicated his opposition to the sewer and water transfer as this would do nothing to make the existing system more efficient or cost effective. He noted that area municipalities have already achieved many economies of scale and that transferring this service to the Region will affect where development occurs within individual municipalities. Councillor Lorentz agreed with the comments of Councillor Ziegler, also noting that over time such a transfer would have a negative impact on the balance between urban and rural land use. Councillor John Smola indicated his agreement with the comments made by Mr. Paul Britton this date on behalf of the Waterloo Region Homebuilders Association. He also suggested that the issue of general maintenance of the City infrastructure has not been addressed, and expressed concern that if taken over by the Region, maintenance would be more reactive than proactive and infrastructure maintenance will suffer. Councillor Vrbanovic stated that he has seen nothing to date that would convince him that transferring these services to the Region would make them cheaper, better, or more accountable. He stated that this transfer is not in the best interest of the citizens of Kitchener. Mayor Zehr indicated that he believes there can be further economies of scale, though these cannot be proven, and that Council should proceed on faith. Councillor Galloway indicated that he is not convinced by the planning arguments opposing the transfer of sewer and water; however, notwithstanding this he cannot support transfer to the Region on the basis that Kitchener's infrastructure is the best of all area municipalities and residents would be assuming a considerable liability in doing so. He also noted that the current sewer/water dividend represents approximately 3% of the overall tax levy, and this would require an increase in taxes of a corresponding amount. Councillor J. Ziegler temporarily left the meeting Councillor Galloway assumed the Chair. Councillor Yantzi stressed the need to maintain a balance between the two tiers and that transferring sewer and water operations would tilt the balance too far in the direction of the Region. The previous motion by Mayor C. Zehr to transfer sewer and water operations and responsibility for billing to the Region was voted on and Lost. Councillor Haalboom questioned the efficiency of the current method of utility billing and questioned whether this could be rationalized. Councillor Vrbanovic noted that the City already has combined billing for water and gas and there could be greater efficiency if hydro billing was included in future. Councillor J. Ziegler returned to the meeting assumed the Chair. The Committee then considered the recommendation that the administration of Provincial Offenses be assumed by the Region. In this regard they were in receipt of a report from J. Shivas dated June 11, 1999 recommending a reaffirmation of Council's earlier position that administration not be assumed by the Region. FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 98- CITY OF KITCHENER 14. RATIONALIZATION/REGIONALIZATION OF MUNICIPAL SERVICES - CONT'D Moved by Mayor C. Zehr "That the administration of Provincial Offenses be assumed as a Regional operation immediately and a plan submitted to the Province to effect this transfer." Mayor Zehr commented that the reference in the report recommendation relative to conversion of the old Registry Office to a Provincial Offenses Court facility must be ignored. Mr. Shivas suggested that turning all revenue and administrative authority over to the Region would not ensure the proper checks and balances needed to create the best and fairest system to administer justice. He argued that there should be some distance created through the establishing of a joint board. Councillor Vrbanovic suggested that the report be circulated to area municipalities and the Region after all reference to conversion of the old Registry Building is removed. He stated that the fairness argument is compelling and that by splitting any revenue Kitchener would be able to partially fund traffic safety related initiatives. Councillor Galloway indicated that he believes the Region should be responsible, but that revenue sharing is another matter. Mayor Zehr argued that there would be efficiencies if administration is consolidated now and that some aspects could be contracted back to the municipalities. The motion by Mayor C. Zehr that the administration of Provincial Offenses be assumed by the Region was then voted on and was Lost on a recorded vote. In Favour: Contra: Mayor C. Zehr, Councillors Jake Smola, J. Haalboom, T. Galloway, and C. Weylie. Councillors K. Taylor-Harrison, John Smola, B. Vrbanovic, J. Ziegler, M. Yantzi, and G. Lorentz. Councillor Vrbanovic proposed a motion to adopt the recommendation in the report of J. Shivas, excluding the reference to the former Registry Office. Mayor Zehr argued that it is inappropriate to selectively entertain contrary motions and no further action was taken in this regard. On motion by Mayor C. Zehr - it was unanimously resolved: "That the studies of a unified dispatch system and joint training facilities for emergency services continue." Councillor Jake Smola put forward a motion to adopt the recommendation that an independent study of a Regional Fire Service be undertaken and completed by October 1, 1999. 14. Councillor Lorentz advised that he could not support the recommendation as a Regional Fire Service would be a serious mistake. He referred to the cost of the Regional Police Service and noted that the three municipal fire services already work well and closely together. Councillor John Smola agreed with the comments of Councillor Lorentz, noting that the Regional Police Service is very costly and the budget grows, often at the expense of other departments. Councillor Vrbanovic advised that it is clear to him there are no savings in a Regional Fire Service, and that given the experience of Regional Police Services there may not even be administrative efficiencies. He suggested that a study would be a waste of money. Councillor Jake Smola referred to the $126.00 per capita cost to Regional taxpayers for Police Services and referred to more expensive per capita costs in Brantford and Barrie where there is no regionalization. Councillor Jake Smola indicated his support for a Regional Fire Service study. Councillor Galloway agreed that there are unlikely to be further economies of scale; however, he indicated he supports the study in order to finally decide the matter. He also referred to the Public Opinion Poll reviewed by Council this date which suggests that approximately 60% of respondents wish to examine a Regional Fire Service. RATIONALIZATION/REGIONALIZATION OF MUNICIPAL SERVICES- CONT'D FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 99- CITY OF KITCHENER Mayor Zehr indicated his agreement with the study, noting that the timeline may have to be changed. He suggested that it may prove appropriate to have other municipalities share in the cost of some services provided by Kitchener such as those involving hazardous materials. Councillor Vrbanovic referred to the earlier referenced American study on amalgamation and noted that it was found that economies of scale in fire services only apply to populations of up to 100,000 people. Mayor Zehr inquired whether Fire Chief Hancock wished to see the fire services study undertaken, and he replied that he would be in favour of a study as this will hopefully address the question once and for all. Councillor Ziegler indicated that he would support the recommendation but asked that staff ensure the American study referenced this date in regard to economies of scale is introduced at some point in the debate. Mayor Zehr cautioned that it is dangerous to selectively quote potions of a study out of context. Councillor Jake Smola accepted, as a friendly amendment, the suggestion of Councillor B. Vrbanovic that the deadline for completion of a fire service study be changed to March 31, 2000 so as to accommodate other Fire Department work priorities. The following motion was then voted on, as amended. On motion by Councillor Jake Smola - it was resolved: "That an independent study of a Regional Fire Service be undertaken and completed by March 31,2000." On motion by Mayor C. Zehr - it was resolved: "That the devolution of development control planning from the Region to the Area Municipal level continue according to the policies already developed." Councillor B. Vrbanovic disclosed a pecuniary interest and abstained from all voting and discussion concerning the recommendation to consider rationalization of computer systems and software across the Region as his wife is employed in the City's Information Services Division. On motion by Councillor K. Taylor-Harrison - it was resolved: "That a study be undertaken which could lead to the future rationalization of computer systems and software across all the municipalities in Waterloo Region." On motion by Councillor G. Lorentz - it was resolved: "That other opportunities for administrative sharing or rationalization be studied over the next twelve months." Councillor J. Haalboom noted that in reference to the above recommendation on administrative sharing and rationalization that utility billing could be examined, with a view to determining whether Kitchener could provide this service to other municipalities. On motion by Mayor C. Zehr - it was resolved: "That staff be assigned to develop transitional plans for the services to be rationalized with such plans to be implemented by January 1,2000." 14. RATIONALIZATION/REGIONALIZATION OF MUNICIPAL SERVICES - CONT'D FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 147 1999 - 100- CITY OF KITCHENER 15. On motion by Mayor C. Zehr - it was resolved: "That the Region seek transition funds from the Province to assist with one time costs associated with service rationalization." On motion by Councillor M. Yantzi - it was resolved: "That the Province be requested to introduce any legislation necessary for implementation of the above recommendations." Councillor Ziegler advised that in the event Council decides to ratify the Committee recommendations when the Special Council meeting reconvenes later this date that he is prepared to put forward an additional motion involving recognition of the efficiency of the current governance and service delivery model within Waterloo Region. He stated that on the basis there is a lack of support for separately elected Councils, other municipalities should be encouraged to coordinate and to actively participate in the creation of a document outlining the benefits of the governance and service delivery model in Waterloo Region. He suggested that this should be used to lobby the Province to recognize the efficiencies and effectiveness of the current governance model. Mayor Zehr suggested that separate Councils would allow Kitchener to retain its ward system intact, and reminded Council that the City must still comply with the direct election provision in the Region of Waterloo Act by the year 2000 election. One option in this regard is to request that Regional Council support Kitchener's current method of appointment. He encouraged members of Council to take a second look at the issue of separate Councils in relation to this matter. Councillor John Smola responded that it was his recollection that a number of other Regional Councillors had no difficulty with Kitchener's current method of appointment. ADJOURNMENT On motion, the meeting adjourned at 11:25 p.m. D. H. GILCHRIST COMMITTEE ADMINISTRATOR