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HomeMy WebLinkAboutFinance & Admin - 1999-09-27FAC\1999-09-27 FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 27, 1999 CITY OF KITCHENER The Finance and Administration Committee met this date, Chaired by Councillor J. Ziegler, commencing at 9:40 a.m., with the following members present: Mayor C. Zehr, Councillor T. Galloway, Councillor G. Lorentz, Councillor John Smola, Councillor K. Taylor-Harrison, Councillor B. Vrbanovic and Councillor C. Weylie and Councillor M. Yantzi. Councillor Jake Smola was in attendance for part of the meeting. Officials present: Ms. P. Houston, Ms. G. Luciantonio, Ms. L. Pasternak, Ms. D. Adams, Ms. B. Newell, Messrs. J. Gazzola, B. Stanley, L. Gordon, M. Hausser, M. Grummet, J. Witmer, L. Proulx, T. Clancy, M. Price, N. Kuntz, T. Fox and Ms. D. Gilchrist. 1. FINANCE DEPARTMENT'S STRATEGIC PLAN Ms. P. Houston introduced the Finance Department's Strategic Plan advising of the process of preparing five separate divisions' strategic plans and bringing them together in one departmental strategic plan. She advised that this was the first time that all department staff had been involved in the preparation of the strategic plan. She advised that the department had taken a long-term view with this plan, looking at the next three years and beyond. Ms. Houston then reviewed the department's mission and vision statements and reviewed the action objectives for the department, as a whole. The Committee was then provided with a review of the strategic plans for each division in the Finance Department. Ms. Houston presented the strategic plans for the Accounting Division and Revenue Division. Ms. G. Luciantonio presented the strategic plan for the Budgets and Financial Services Division. Mr. M. Grummet presented the strategic plan for the Information Services Division and Mr. L. Gordon presented the strategic plan for the Purchasing Division. Councillor J. Haalboom questioned the KAPS Program, which Ms. Houston advised was in its final stages. Ms. Houston advised that the number of suggestions has gone down substantially and should be changed to something that would work better. Councillor C. Weylie congratulated Ms. Houston on the excellent job done by her Department. She raised the question of whether the Department could sell some of its services to other governments and Ms. Houston advised that this was an option and there may be opportunity for this. Mayor C. Zehr also complemented the Department and also questioned the possibility of selling some of the services, which they have developed. Mayor Zehr then questioned the FAMIS System and whether the upgrade proposed for November deals with Y2K compliance. Ms. Houston advised that this was the last major system to be worked on for Y2K compliance noting that there were some minor systems, which would not be critical to the Corporation. Mayor Zehr questioned customer service and the Department's interface with its customers, noting that this is one of the most common calls he gets. Ms. Houston noted that this has been an issue and when they get many calls it is not always possible to deal with them. Ms. Houston advised that they are looking at a number of possibilities to deal with this issue and it is foremost in their plans. 2. ITEMS FOR CAPITAL BUDGET EMERGENCY BACK-UP POWER FOR EVACUATION CENTRES The Committee was in receipt of a report from Mr. N. Kuntz, Deputy Fire Chief, dated September 20, 1999 recommending that certain costs be included in the capital budget for the installation of emergency backup generators for evacuation centres. Mr. Kuntz introduced the report and provided an explanation of the request. He noted that a committee had considered this emergency power requirement request and it is believed that evacuation centres are needed in strategic locations across the municipality. Councillor J. Ziegler questioned what we had done for the last thirty years and Mr. J. Gazzola responded that the City has been extremely lucky for the last sixty to seventy-five years. He noted that the ice storms in eastern Ontario brought this message home and the municipality's biggest concern is hydro; as, if that goes out everything stops. He noted that it may seem like a lot of money but the City is trying to be prepared. FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 277 1999 - 130 - CITY OF KITCHENER 2. ITEMS FOR CAPITAL BUDGET EMERGENCY BACK-UP POWER FOR EVACUATION CENTRES- CONT'D Councillor B. Vrbanovic thanked staff for bringing forward this report as he felt it was long over- due. He then questioned timing noting that his immediate concern was with the issue around Y2K compliance. He felt the City, although prepared, needed to take precautions. Mr. N. Kuntz responded that he felt that this was an emergency preparedness issue and not a Y2K issue. With respect to generators for Y2K he noted that nothing is available for lease or rent and that the City would have to utilize its current resources should any problems arise. A discussion then took place with respect to preparedness within the municipality and other municipalities. Councillor Vrbanovic requested a report on Y2K contingency plans should something go wrong. Mr. Kuntz noted that staff is putting together contingency plans for Y2K. Councillor T. Galloway stated that he thought that Councillor Vrbanovic had a valid point. He questioned whether there is emergency backup at the Region and whether the current proposal ties in with their emergency plan. Mr. Kuntz advised that the City of Kitchener Emergency Plan dovetails with the Region's Emergency Plan and that any required evacuation of citizens would be done through the Social Services Department Emergency Plan. Councillor Galloway stated that he supported proceeding in this regard. Mayor C. Zehr questioned why the costs are different for the different facilities and Mr. Kuntz responded that it is a result of what is in the facility itself, the cost of switching equipment, as differences in facilities require differences in hook-up. Mr. J. Gazzola referred to Councillor Vrbanovic's concern noting that the City does have a Y2K Committee. Mayor Zehr moved the recommendation contained in the staff report. Councillor Haalboom questioned the order of installation and Mr. Kuntz responded that the first installation would be the KMA Complex because it can house the most people and he provided an explanation for the order of the rest of the facilities. Councillor Vrbanovic questioned the Y2K Committee and Ms. P. Houston advised that it would report to the Finance and Administration Committee in October. On a motion by Mayor C. Zehr - it was resolved: "That the following costs be included in the Capital Budget for the installation of emergency backup generators for evacuation centres and staged over a four year period as follows: 2000 Installation at KMA Complex $174,000 2000 Conversion at Forest Heights $ 23,000 2001 Installation at Breithaupt Centre $ 85,000 2002 Installation at Doon Pioneer Community Centre $ 48,000 2003 Installation at Country Hills Community Centre $ 35,000 $365,000" REQUEST FOR BY-LAW PURSUANT TO CHAPTER 650 (LOT MAINTENANCE) GILDNER STREET 16 The Committee was in receipt of Business and Planning Services staff report BPS 99/120, dated August 25, 1999. Councillor J. Ziegler noted that this matter had been considered at the September 13th Finance and Administration Committee meeting and deferred to this meeting, to allow the property owner additional time to clean up the property. When questioned by the Committee, Mr. J. Witmer advised that the property had been inspected on Friday September 24th, in the morning, and the situation on the property has not changed at all. FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 277 1999 - 131 - CITY OF KITCHENER REQUEST FOR BY-LAW PURSUANT TO CHAPTER 650 (LOT MAINTENANCE) GILDNER STREET - CONT'D 16 On a motion by Councillor John Smola - it was resolved: "That at the September 27, 1999 Special Council meeting, three reading be given to a by-law authorizing the removal of waste material from 16 Gildner Street at the property owner's expense." 4. COMMUNITY GARDEN MANUAL Ms. S. MacDonald was in attendance to give a presentation to the Committee on the Community Garden Manual produced with the Community Infrastructure Grant approved by City Council. Mr. B. Stanley introduced this matter advising that a recipient of a grant through the Community Infrastructure Grant Program is required to come back to the Finance and Administration Committee to show what they have done with the money received. Ms. MacDonald distributed copies of the manual to the Committee members. She spoke of the Queen's Garden run by the neighbourhood and provided a list of those people involved. She noted that through their experience they have been able to share what they have learned with others, noting that there are five new community gardens which have started in the Region this year. Ms. MacDonald then thanked the City for the grant and for the assistance of staff noting that many people have been beneficially effected by community gardens and the grant. Councillor K. Taylor-Harrison congratulated the delegation on the work produced and on the garden noting that the Queen Street garden is a real pleasure. Councillor M. Yantzi also congratulated Ms. MacDonald noting that the community gardens build a sense of community and it is good to have the manual as it is a very useful tool. Councillor C. Weylie thanked Ms. MacDonald for assisting the Victoria Hills community in moving their community garden. Ms. B. Stanley advised that, at Planning Committee today, policies are being proposed for community gardens. 5. GLOBE STUDIOS REQUEST FOR FINANCIAL ASSISTANCE The Committee was in receipt of Business and Planning Services staff report BPS 99/142, dated September 4, 1999, providing information on Globe Studios' request for financial assistance in purchasing and renovating the former Bonnie Stuart building on Whitney Place. Ms. M. Newcomb was in attendance to represent Globe Studios' request. Ms. Newcomb addressed the Committee advising that they are seeking financial assistance to purchase the building. She stated that they have spent the summer trying to get financing in place resulting in an offer being made to purchase the property along with two other people, at a price of $375,000.00. She noted that Bonnie Stuart is willing to take back a second mortgage in the amount of $150,000.00 over five years. Ms. Newcomb then advised that they have a business plan and a cash flow plan and are requesting a loan from the City of Kitchener in the amount of $20,000.00, interest free, to build the studios within the building. Ms. Newcomb then reviewed the background of the Globe Studios. She noted that one of the reasons for the previous activity was that the artists work together. Councillor Galloway questioned what security the City would have. Ms. I. Stefanescu advised that the City would have their share of the building. Councillor Galloway stated that he would be looking for a formal agreement to be registered on title. FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 277 1999 - 132 - CITY OF KITCHENER 5. GLOBE STUDIOS REQUEST FOR FINANCIAL ASSISTANCE - CONT'D Councillor now that it discussed funds from G. Lorentz questioned whether Globe Studios has considered changing its name is located in the City of Kitchener, and Ms. Newcomb advised that it has not been but it is a possibility. A brief discussion then took place with respect to seeking the Trillium Foundation. Councillor T. Galloway questioned an environmental audit for the building and Ms. I. Stefanescu advised that they have been through a Phase 1 and Phase 2 audit and would not be able to get any mortgage financing until the site is totally clean. Mayor Zehr noted that the Committee had been asked, at this meeting, to invest a substantial amount of money into two projects and questioned whether they were synergies between the two groups. Councillor Yantzi stated that they could be some possibility for this; however, our involvement has been capital, and synergy between the two groups does not address the capital funding issues. Councillor J. Haalboom requested the Committee's support for the request of Globe Studios. She stated that a number of excellent projects have been produced by this group and they have not come for a grant before. A discussion took place as to whether the funding request could come from the Community Infrastructure Program and Mr. Stanley advised that the Community Infrastructure Program does not deal with capital projects. Ms. P. Houston noted that the Capital Contingency has been spent for this year and if the Committee should choose to approve the request it must decide whether it wants to overspend the capital contingency this year or have this money as the first charge against the capital for next year. Councillor B. Vrbanovic put forward a motion to approve Globe Studios request. He stated that he agreed with Councillor Haalboom. Following a brief discussion, Councillor Vrbanovic added to his motion that they $37,500.00 for the down payment should be an over expenditure to the 1999 Capital Contingency. He also requested that the guarantee of the first mortgage be registered on title. Mr. J. Gazzola advised that the City has never guaranteed loans except for those organizations close to the Corporation. He felt that it was difficult territory and left the door open. Councillor B. Vrbanovic stated that the City could fund this through the Community Loan Fund but he would rather see a partnership with the bank. Mayor C. Zehr stated that he was disappointed that the mortgagee is asking for this guarantee as they would have good security. He questioned whether there was a possibility of getting the mortgagee to agree to the mortgage without the guarantee. Councillor Jake Smola entered the meeting at this time. Ms. Stefanescu responded to the Mayor that she has discussed the matter with Canada Trust and they are concerned about their share of the risk on the mortgage. Mayor Zehr stated that the City could be faced with this situation at other times and he was not comfortable with the guarantee. Councillor G. Lorentz advised that he agreed with the Mayor and requested that the City's Treasurer contact Canada Trust in this regard. He requested that she contact Canada Trust this week and be able to respond at the Council meeting next Monday night. Councillor B. Vrbanovic agreed to amend his motion to defer consideration of the mortgage guarantee to the Council meeting next week, subject to Ms. P. Houston talking to the mortgagee and having answers for Council. A brief discussion took place with respect to whether a mortgage could be obtained from one of the life insurance companies. FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 277 1999 - 133 - CITY OF KITCHENER 5. GLOBE STUDIOS REQUEST FOR FINANCIAL ASSISTANCE - CONT'D On a motion by Councillor B. Vrbanovic - it was resolved: "That Council approve the request of Globe Studios for a grant of $37,500.00 to cover the cost of their down payment for the purchase of the former Bonnie Stuart building, 141 Whitney Place, to be an over-expenditure of the 1999 Capital Contingency and; That Council approve the request of Globe Studios for an interest free loan in the amount of $20,000.00 to assist with studio renovations at 141 Whitney Place; and further, That the request of Globe Studios for the City of Kitchener to guarantee their first mortgage of $75,000.00 be deferred and referred to the Council meetinq of October 4, 1999, pending a report from Ms. P. Houston." 6. EMPLOYEE PHOTO IDENTIFICATION SYSTEM The Committee was in receipt of a report from Mr. L. Proulx, Director of Facilities Management, dated September 21, 1999, recommending the purchase and installation of a photo I.D. system for City Hall. Councillor B. Vrbanovic moved the recommendation contained in the staff report. He stated that this is a large corporation and the security staff cannot possibly know everyone. Councillor C. Lorentz stated that he needed to know what the problem was, as he was not convinced that we needed to spend this money. Mr. J. Gazzola explained the need for dealing with security issues in government and public spaces. He also advised that it was a customer relations issue, as there are a lot of people in public buildings and it is much easier for them to approach someone with a tag. Councillor T. Galloway reviewed some of the issues he felt existed and the possibility for a breakdown of the system. Councillor Jake Smola questioned whether this would eventually spread to all public facilities and was advised that it would. He questioned the use of photos in the telephone directory and Mr. Gazzola advised that staff would look into this. A brief discussion took place with respect to the issue of stolen cards and weekend entry into the building. On a motion by Councillor B. Vrbanovic - it was resolved: "That Council approve funding, in the amount of $26,000.00, for the purchase and installation of a photo I.D. system for City Hall, with the funds to be taken from the City Hall Contingency." 7. KOR GALLERY The Committee was in receipt of a report from Mr. L. Proulx, Director, Facilities Management, dated September 21, 1999, providing a budget, schedule and issues of concern with respect to the KOR Project at 79 Joseph Street. Mr. Proulx was in attendance to represent the report and gave a brief review of the history of this project. He advised that in order to deal with this project, his staffing issues need to be resolved. Councillor T. Galloway questioned whether the cost of outside of project management would be $5,000.00 and Mr. Proulx advised that it would in fact cost $20,000.00. Councillor M. Yantzi questioned whether the staffing issues were close to being resolved. Mayor C. Zehr noted that, to date, Council has committed $80,000.00 to this project. He noted that the cost of outside project management would be an additional $15,000.00. He questioned the difference between $150,000.00 as compared to the $80,000.00 which Council committed to. Mr. L. Proulx responded that initially, staff had no idea of the exact size of the project. Now drawings have been developed and the space requirements are known and they FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 277 1999 - 134 - CITY OF KITCHENER KOR GALLERY - CONT'D need 1,700 sq. fl. Ms. D. Rothwell was in attendance to represent the project advising that, when initially submitted, the architect considered only the new addition. She noted that all the space is required as they have $125,000.00 worth of equipment to house. She also advised that there were donations of work from contractors available, initially; however, they had to take jobs because the project could not commit to timing. Ms. Rothwell felt that she could get donations if she could get quotes. Mayor Zehr questioned what other donations could be expected and Ms. Rothwell responded that approximately $5,000.00 in donations could be expected. Councillor M. Yantzi questioned whether excavation and backfill could be done by City staff and Mr. Proulx responded that perhaps they could be done through winter works. Councillor Yantzi then stated that the City said it would provide the capital and he asked Council to approve this funding if the staff issues could be addressed expeditiously. Councillor J. Ziegler questioned the Mayor on a previous comment he had made at the meeting with respect to marrying this project with Globe Studios and a brief discussion took place in this regard. Councillor T. Galloway stated that the issue is 769 sq. ft. and that the projection of 1,000 sq. ft. has been expanded, which is not unusual for a building project. He questioned whether the square footage had been given close scrutiny. Ms. Rothwell responded that this is not an optimum configuration. In terms of space, there is not any extra space and the gallery is necessary. A brief discussion took place with respect to use of the portable building which had been located on the site. Mr. J. Gazzola commented that he believed that one of the problems with this project is that it was driven by senior government funding. He questioned whether the project had any business plans and Ms. Rothwell responded that they are being prepared by the Laurier Business Institute. Councillor J. Ziegler suggested deferring this matter to the Council meeting on Monday night for a staff report recommending how this project could proceed. Councillor Yantzi suggested that the staff report include when the staffing issues would be handled. Mr. Gazzola advised that they could come back to Council on Monday night with further information. Councillor Jake Smola suggested looking at the project in two phases, the first being the immediate and the second being winter. He also referred to the business plans being prepared and suggested that if there is a profit, perhaps $20,000.00 could come through the Community Loan Program. On a motion by Councillor M. Yantzi - it was resolved: "That consideration of funding the further costs for the construction of the addition to the KOR Gallery, and a decision as to whether to go outside the City of project management services for this project, be deferred and referred to the Council meeting of October 4, 1999, pending a report from staff recommending how to proceed with this project and advising when the Facilities Management Division staffing issues will be resolved." CORPORATE INFORMATION APPLICATION Chair Ziegler and Mayor C. Zehr requested a brief demonstration of this application. Mr. M. Hausser was in attendance to provide a demonstration of the Corporate Information Application. He noted that, because the demonstration will be brief, the material provided to the members of the Committee would not match the demonstration. Mr. Hausser noted that FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 277 1999 - 135 - CITY OF KITCHENER CORPORATE INFORMATION APPLICATION - CONT'D this is an intranet application, which contains mapping capabilities and a data warehouse. He noted that it will connect with databases. Mr. Hausser advised that the Corporate Information Application contains two modules, the first being textual information and the second being a notification application. He gave a brief demonstration of these applications for the Committee's benefit. With respect to the notification side of the program, he advised that it can provide lists of owners and mailing addresses. Mr. Hausser then advised the Committee that approximately 25 staff members have been used as a test for this application and that training for City staff would commence on October 12th. There would also be training for Council members. Ms. P. Houston commended Mr. Hausser for the amount of effort put into developing this project and stated that they are expecting a lot of really good uses. Councillor John Smola questioned whether Project Lift will have this information available to them, as their database and mapping are outdated. Councillor Jake Smola congratulated staff on this project and questioned the budget. It was noted that the internal programming has cost $195,000.00 and the document management cost was an additional $50,000.00. A brief discussion then took place with respect to the sale of this system to other municipalities. Ms. Houston advised that the City of Kitchener is the first in the Province to have this type of application. ADJOURNMENT On motion the meeting adjourned at 12:20 p.m. D. H. GILCHRIST COMMITTEE ADMINISTRATOR