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HomeMy WebLinkAboutFinance & Admin - 1993-04-05FAC\1993-04-05 FINANCE AND ADMINISTRATION COMMITTEE MINUTES APRIL 5, 1993 The Finance and Administration Committee met this date, commencing at 11:10 a.m., under the Chairmanship of Alderman C. Zehr with the following members present: Mayor D.V. Cardillo, Aldermen B. Stortz, T. Galloway, G. Lorentz, M. Wagner, C. Weylie and J. Ziegler. Others present: Alderman M. Yantzi, Alderman G. Leadston, Messrs. T. McKay, J. Gazzola, R. Freeborn, F.S. Graham, J. Wallace, R. Pritchard, C. Cooke, D. Heubach, J. Panunto, G. Borovilos, G. Sosnoski, Mrs. J. Koppeser, and Ms. L. MacDonald. 1. MINUTES OF THE MARCH 22, 1993 MEETING On a motion by Alderman J. Ziegler - It was resolved: "That Page No. 19 (Item 8 - Paragraph 2) of the March 22, 1993 Finance and Administration Committee minutes be amended to read "Alderman J. Ziegler noted that the last two student employees had resigned on short notice, however, over the past seven years there have only been three problems." Alderman Galloway advised that he wished to have an item considered for discussion this date concerning the Farm Tax Rebate. 2. BREAK OPEN TICKETS AT THIRD PARTY LOCATIONS The Committee was in receipt of a report from Mrs. J. Koppeser dated March 31, 1993 requested by the Committee at the February 15, 1993 meeting. They were also in receipt of correspondence from Mr. L. Gravill, Chief, Waterloo Regional Police dated April 1, 1993 concerning the role of Police relative to the new Provincial Gaming Services Act as it applies to Break-Open Tickets. Alderman Lorentz asked why the report of Mrs. Koppeser outlines two options rather than a Region-wide position which was to have resulted from discussion involving area municipalities. Mrs. Koppeser explained that in order to properly police ticket sales each municipality must first be willing to commit the necessary staff resources as outlined in Option #2. Barring this, the working group is prepared to recommend that no action be taken on requests for licences or permission to sell Break-Open Tickets. Mr. Pritchard explained that between $15,000.00 and $20,000.00 in staffing costs would be involved if the City were to dedicate 1½ - 2 days per week to enforcement. He added that this initiative would likely generate approximately $42,000.00 per year in additional municipal revenues. He referred to the statements of Mr. Gravill who has indicated the Police will investigate any criminal activity relative to gaming, but would not be involved in enforcing the terms and conditions of the licence. This would be the sole responsibility of the municipality. Mr. Pritchard noted that the City of Toronto has taken a no action position until such time as the enforcement issue is resolved. Alderman Lorentz questioned whether the additional part-time person would increase the hours of enforcement, and Mr. Pritchard replied that this would depend on the situation, however, staff had hoped to avoid evening/weekend work and the attendant problems. Mr. Graham expressed the concerns of some local charitable and sports organizations who do not have access to bingo licences but would like to see fairer access to all licences generally. Mr. Sandy MacDonald, Barrie, appeared in his capacity as a registered gaming supplier for small charitable organizations. He asked for fair and equal access to the proposed licences and stressed that his business is Provincially registered and appreciates the severity of penalties resulting from improper gaming activity. Ms. Leslie George appeared on behalf of ALS (Lou Gehrig's Disease) and indicated that her organization presently sells tickets from third party locations in Guelph, where the viability of this initiative has been proven. 2. BREAK OPEN TICKETS AT THIRD PARTY LOCATIONS (cont.) FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 24 -APRIL 5, 1993 Ms. Marianne Levste appeared on behalf of the Sunbeam Centre and questioned whether the proceeds of Break-Open Ticket Sales could be used for both the organization's capital and operating expenses. Mrs. Koppeser replied that if an organization is a registered charity, proceeds can be used for either purpose provided it is non-profit in nature. Mr. Ken Campbell, St. Catharines, appeared in his capacity as Sales Manager of Bazaar and Novelty Manufacturing. He pointed out that his firm is Provincially registered and is governed by regulations, including those pertaining to security. He expressed a willingness to work with local charities to familiarize them with the security measures involved. Ms. Judy Zieske appeared on behalf of an unspecified home for the aged and pointed out that in this economic climate many organizations need fundraising activities to offset deficit budgets. She expressed concern that local organizations may not have the influence and representation of other Provincial and Nationally based charities and this may prevent equal access. Mr. Pritchard pointed out that the Licensing Division report recommends that no limit be placed on the number of third party locations selling tickets, and if two charities apply for a single location, the City would ask the location owner to resolve the conflict. Alderman Lorentz asked whether this arrangement would address Ms. Zieske's concerns, and she replied in the affirmative. In response to a question from Alderman Weylie, Mrs. Koppeser advised that the City would be responsible only for enforcement of the charities it licenses, with the Province responsible for registering all third party locations. Alderman G. Lorentz put forward a motion to adopt Option #2 in the report of Mrs. J. Koppeser which would have the affect of permitting the sale of Break-Open Tickets from Third Party Locations subject to the appropriate Terms and Conditions and the hiring of one additional part- time staff person, the cost of whom would be offset by increased revenues. Alderman Lorentz questioned how soon the program could be put in place and Mrs. Koppeser replied that provided Council does not wish to approve each application it could be established within two weeks of receiving Council approval. Alderman Wagner stated that he supports the recommendation in principle, but has reservations concerning Provincial and Federal positions on legalized gambling. He pointed out that studies have proven that lower income groups spend more money on this type of activity than those earning higher incomes. In addition, he questioned the amount of potential revenue in the community relative to the number of charitable organizations. He also expressed concern over the enforcement issue and the potential for abuse given the large amount of money involved. Alderman Galloway indicated his support and his assumption that Council would approve the use of any City owned facility as a third party location. He asked for clarification of the term "physical presence" in the Terms and Conditions. Mrs. Koppeser explained that this could be defined as a local office, or a chapter responsible for the area which may not have an office in Kitchener. Alderman Galloway suggested that this definition be restricted. Alderman Yantzi expressed the opinion that this type of initiative represents a sad commentary on the funding circumstances and priorities of the Province, and is further evidence of a trend toward downloading responsibility. He expressed the opinion that this is the wrong way to fund non-profit groups, however, he did acknowledge the funding problems of these organizations. Alderman Zehr asked whether the City of Waterloo would likely take the same position as that outlined in Option #2. Mrs. Koppeser replied that Waterloo operates under different circumstances as they have no enforcement staff at present. 2. BREAK OPEN TICKETS AT THIRD PARTY LOCATIONS (cont.) Alderman Lorentz amended his previous motion so as to request a review after six months of operation and a subsequent report to the Finance and Administration Committee. He also accepted, as a friendly amendment, a suggestion that this activity be the subject of an annual report to Council. The previous motion by Alderman G. Lorentz was voted on, as amended, and it was resolved: FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 25 -APRIL 5, 1993 "That the City of Kitchener permit the sale of Break-Open Tickets from Third Party Locations subject to adoption of both the Provincial Terms and Conditions and the City of Kitchener Additional Terms and Conditions as appended to the report of Mrs. J. Koppeser dated March 31, 1993, and, That Council approve the hiring of one additional part-time staff person in the Licensing Division relative to enforcement of the above, the cost of which is to be offset by increased revenues, and further, That staff review the above initiative after six months of operation and report to the Finance and Administration Committee, and submit a further report on an annual basis." Alderman Zehr advised those in attendance that the recommendation put forward this date would be presented to Council on April 13, 1993. He stated that those wishing to register as delegations should do so through the City Clerk's Office. 3. SPECIFIC LOCATION DAILY SALES LICENCES The Committee was in receipt of a report from Mrs. J. Koppeser dated March 31, 1993 which was previously requested at the March 22, 1993 meeting. They were also in receipt of a letter from Mr. J. Wallace dated March 31, 1993. Mr. Pritchard noted that Mr. Wallace has indicated the City cannot differentiate between products as they relate to the above licences. Alderman Lorentz asked whether the City could impose a double fee on those vendors who are operating without a licence, as at present there appears to be no incentive to apply. Mr. Wallace advised that applications are often made only when the vendor is forced to do so, and failure to obtain a licence could result in charges and fines by the courts. He suggested that the City should charge all unlicensed vendors, however, he cautioned that an attempt to impose a double fee may require special legislation. Alderman Leadston entered the meeting at this time. Alderman Weylie suggested that the City should obtain special legislation from the Province relative to the sale of fireworks. Alderman Stortz pointed out that other products are more damaging to local businesses and suggested the existing by-law be amended to indicate a maximum $1,000.00 licence fee. Mr. Wallace responded that this may be construed as an instance of using a licensing fee as a penalty and could not be done without the benefit of special legislation since the fee could be challenged in the courts. Alderman C. Weylie put forward a motion that Council agree in principle with obtaining special legislation relative to the licensing of fireworks vendors, with a subsequent report from Mr. Wallace to be submitted for consideration at the April 19, 1993 Finance and Administration Committee meeting. Mr. McKay suggested that the owner of the location be required to take out a licence rather than the vendor who is often a Transient Trader. Alderman Zehr noted that this could be incorporated in the proposed legislation. 3. SPECIFIC LOCATION DAILY SALES LICENCES (cont.) Alderman Weylie clarified that her motion is intended to apply to fireworks only and not other product lines affected by Daily Sales Licenses. Alderman Stortz suggested that the proposed legislation should apply to all Hawkers and Pedlars regardless of product line and that the property owner should make application rather than the vendor. Alderman Weylie indicated that she would accept, as a friendly amendment, only the suggestion relative to application by the property owner. She asked that the remainder of Alderman Stortz's suggestion be treated as an amending motion. Alderman Ziegler pointed out that the motion does not address a special fee for fireworks, and expressed the opinion that this fee should be higher than that applying to other product lines. FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 26 -APRIL 5, 1993 On motion by Alderman B. Stortz the Committee agreed to an amendment whereby the proposed special legislation would apply to all Hawkers and Pedlars and not to the sale of fireworks alone. The Committee then voted on the main motion by Alderman Weylie, as amended, and it was resolved: "That Council agree in principle to make application for special legislation relative to Specific Location Daily Sales Licenses for all Hawkers and Pedlars, to include but not be limited to the sale of fireworks and so as to require that the sales location owner apply for a licence rather than the vendor, and in this regard Mr. J. Wallace provide the appropriate wording for consideration by the Finance and Administration Committee on April 19, 1993." On a further motion by Alderman T. Galloway Licensing Division staff were directed to resume acceptance and issuing of Specific Location Daily Sales Licences relative to the sale of fireworks. 4. ADDENDUM - CORPORATE DATABASE ACQUISITION (SYBASE) The Committee was in receipt of a joint report from Mr. C. Cooke and Mr. L. Gordon dated April 1, 1993 requesting approval of budgeted funds for purchase of the above system. On a motion by Mayor D.V. Cardillo - It was resolved: "That Council authorize a budgeted expenditure from the Computer Reserve Fund in the amount of $145,000.00 for the purchase of Sybase database software relative to the new Utility Management and Tax Administration Systems." 5. WORKERS REHABILITATION PROGRAM Mr. D. Heubach and Mr. J. Panunto gave a verbal presentation on the City's program relative to disabled employees. Mr. Panunto indicated that staff are proud of the achievements to date and are considered to be leaders in this area by the Workers' Compensation Board. Mr. Heubach advised that 27 separate cases have been dealt with since 1990, with 25 of these considered successful. Alderman Galloway commended staff on the initiative and questioned how co-workers react when they are asked to compensate for the reduced workload of a disabled employee. Mr. Panunto replied that a candidate for modified duties is compared to the essential tasks of the position under consideration. If these can be performed, the individual is a candidate for modified duties, if not, alternate work is investigated. Alderman Galloway asked how City departments have viewed this program and their level of co-operation. Mr. Panunto replied that an individual must be physically able to perform the duties involved, and if this is the case, there is no reason why they cannot be considered for relocation. Mr. Freeborn pointed out that this is a major, potential problem since it is difficult for operating departments to accept an 5. WORKERS REHABILITATION PROGRAM (cont.) individual who may only be able to perform the core requirements of a job. Mr. McKay suggested that the program could be documented and submitted to a personnel association for awards consideration. 6. REIMBURSEMENT OF APPLICATION, LEGAL AND SURVEY COSTS The Committee was in receipt of a report from Mr. J. Wallace dated March 31, 1993 recommending that the owner of 167 Sydney Street South be reimbursed for the above costs relative to a severance and minor variance application where the applicant was not advised that the property in question was located in a floodplain. FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 27 -APRIL 5, 1993 On a motion by Alderman G. Lorentz - It was resolved: "That staff reimburse Mrs. Elizabeth Parker in the amount of $2,760.00 for the application, legal and survey costs incurred by her as a result of her application for severance and minor variance relative to 167 Sydney Street South." Alderman Wagner asked whether the above owner's tax assessment would remain at its current level given the fact that she cannot build on the subject property. Mr. Wallace suggested that this should be clarified with the Regional Assessor and he would relay the information to Mrs. Parker's solicitor. 7. POTSDAM, GERMANY - 1000 YEAR ANNIVERSARY The Committee was in receipt of correspondence from Mayor D.V. Cardillo requesting the Committee's direction as to an invitation to send a Council representative to participate in Potsdam's "Canadian Week". Mayor Cardillo advised that in his opinion this initiative should be addressed at the Federal level. Mr. Borovilos mentioned that the Committee could consider a joint Kitchener and Waterloo exchange. He also advised that the Business/Industry Advisory Committee is examining the entire issue of twinning, with Germany being one of the areas under consideration. Alderman B. Stortz put forward a motion that the City respectfully decline the invitation of the City of Potsdam. Mr. McKay explained the past deliberations of a Twinning Committee and the three types of twinning. He indicated his understanding that if appropriate, the City would be involved in preliminary setup for economic twinning after which the business community would be required to pursue the matter further. Alderman Wagner suggested that if twinning is appropriate, the City should consider a municipality in East Germany. The motion by Alderman B. Stortz was then voted on, and it was resolved: "That the City of Kitchener respectfully decline the invitation of the City of Potsdam, Germany, to participate in its "Canadian Week" to mark the City's 1000 year anniversary." Mayor Cardillo asked that Mr. Borovilos prepare an appropriate letter for his signature. 8. STANDARDS FOR THE OPERATION OF SIDEWALK PATIOS The Committee was in receipt of a report from Ms. L. MacDonald dated March 31, 1993 requesting direction concerning the above standards. Ms. MacDonald clarified that the report before the Committee this date is in response to concerns raised by Mayor Cardillo at the January 25, 1993 meeting of Council. She advised that since then discussion had taken place with City staff and 10 provisional standards have been prepared for review. 8. STANDARDS FOR THE OPERATION OF SIDEWALK PATIOS (cont.) Alderman Stortz noted one particular area in front of 85 King Street West about which the City has received complaints in the past. Mayor Cardillo advised that it was not his intent to mention specific locations, however, all businesses should have an opportunity to comment on the location of patios as these can raise maintenance and access concerns. Ms. MacDonald agreed that the standards developed should be applied equally. She acknowledged that the City had received complaints in the past regarding the above property, in particular obstruction of an apartment entrance, however, no complaints have been received since last summer. Alderman Yantzi indicated he would be concerned in the event the standards were too restrictive, but that it should be stressed to owners a patio is a privilege that the City can request be withdrawn and this action could be used to address specific problem locations. Ms. MacDonald FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 28 -APRIL 5, 1993 cautioned that this could not be done in mid-season but should be addressed either before or after. She noted that one of the problems involves the control of customers when the patio area is small or otherwise confined. Mr. Gazzola noted that he had received complaints from a neighbouring clothier who is withholding business taxes in frustration over problems encountered with an adjacent patio. Alderman Zehr asked that following consideration by the Project Review Committee all licence applications for patios be brought forward at the April 13, 1993 Council meeting along with all related information necessary to make a decision. Ms. MacDonald indicated that she would notify the affected parties and advise them of Council's intention. Ms. MacDonald advised that with regard to the property at 300 King Street West it may be advisable to address this location under the terms of a new agreement. On a motion by Alderman G. Lorentz - It was resolved: "That relative to the property at 300 King Street West (Slices Restaurant) the Legal Department be directed to exercise the 60 day Notice of Termination clause in the existing agreement in order to allow application under the terms of a new agreement." 9. FARM TAX REBATE Alderman Galloway noted that most agricultural properties within the City boundary had received a substantial decrease in assessment and are to receive a Provincial rebate based on 75% of the assessed value. He expressed concern that this percentage would be applied to the lower of the two assessment values and questioned whether this was appropriate. Alderman Zehr asked that Alderman Galloway discuss this with staff and if appropriate, return with recommendations. Mr. Gazzola agreed to investigate. 10. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on . Monday, April 19, 1993 11. ADJOURNMENT On motion, the meeting adjourned at 1:00 p.m. _________________________________ G. Sosnoski Manager of Corporate Records/Assistant City Clerk