Loading...
HomeMy WebLinkAboutFinance & Admin - 1993-09-20FAC\1993-09-20 FINANCE AND ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 20, 1993 The Finance and Administration Committee met this date, commencing at 11:25 a.m., under the Chairmanship of Councillor C. Zehr with the following members present: Mayor D.V. Cardillo, Councillors B. Stortz, G. Lorentz, J. Smola, M. Wagner and J. Ziegler. Councillor T. Galloway was in attendance for part of the meeting. Others present: Councillor G. Leadston, Councillor M. Yantzi, Messrs. T. McKay, J. Gazzola, R. Freeborn, F.S. Graham, S. Gyorffy, L. Ryan, O. den Ouden, J. Shivas, D. Heubach and G. Sosnoski. 1. STAFF PARTICIPATION - CITY HALL OPENING EVENTS Councillor Zehr referred to the excellent effort made by volunteer staff in assisting with the opening events and on behalf of the Committee thanked those who contributed. Councillor Yantzi suggested some form of formal recognition and Mayor Cardillo indicated that he would take this under advisement. It was also suggested that Ms. L. Fryfogel be responsible for circulating an E- Mail message in this regard. On a motion by Councillor G. Lorentz - It was resolved: "That the Mayor and Council formally acknowledge the efforts of staff in assisting with the opening events for the new City Hall." 2. DELEGATION - LIABILITY CLAIM (15 WILKINS DRIVE) The Committee was in receipt of quotations from two general contractors for the repair of water damage to the above property. Mr. J. Crawford, the owner, who was in attendance this date, also circulated a portion of a letter from Mr. Murray H. Schmitt, Consulting Engineer, dated June 23, 1993 and correspondence from Mr. D. Bowe, Restorx, dated November 23, 1992, both outlining charges relative to their services. In response to a question from Councillor Stortz, Mr. Gyorffy advised that extensive video testing of the lines had previously been done and all were found to be in good order. He also noted that there is no history in the area of the type of problem experienced by Mr. Crawford. Mr. Gazzola clarified that the claim filed by Mr. Crawford had been denied by the City's Insurers, and he questioned whether Mr. Crawford had made a claim under his homeowner's policy. Mr. Crawford replied the damage is not covered under his homeowner's policy since no action took place in the home to initiate the problem. He referred to comments made by Mr. Schmitt who is of the opinion that the problem originated with the layout of the street as well as recent changes involving construction on a Church site. Councillor Galloway noted that to date no expert has been able to clearly identify the cause of the problem. He questioned whether in the event of a no fault situation the insurers for both the City and Mr. Crawford could agree to a compromise, with the City acting as a facilitator. Mr. Crawford pointed out that the Consulting Engineer has advised the problem originates with a deficient street design which was not meant to carry the volume of water it received. He added that one of his neighbours whose house was the first one constructed in the subdivision has experienced similar problems. Councillor Lorentz suggested that staff should receive and evaluate the recommendations of Mr. Schmitt to determine whether the problem can be rectified in future. Mr. Crawford referred to the photographs which he circulated at the August 16, 1993 meeting illustrating that a portion of the roadway had been excavated in front of his house. He added that this would suggest a problem with the roadbed. Mr. Gyorffy clarified that the work referred to by Mr. Crawford relates to watermain breaks which routinely occur on several City streets. FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 68 -SEPTEMBER 20, 1993 2. DELEGATION - LIABILITY CLAIM (15 WILKINS DRIVE) (cont.) On a motion by Mayor D.V. Cardillo - It was resolved: "That further consideration of the owner's claim for damages to the property known municipally as 15 Wilkins Drive, be referred to the October 4, 1993 Finance and Administration Committee meeting pending receipt and review by staff of the report prepared by Murray H. Schmitt, Consulting Engineer." Mr. McKay advised that the municipality's responsibility in this matter relates to liability only and that negligence by the City would have to be involved. Mr. Crawford pointed out that page 9 of the City inspection report makes several references to "spider cracks" and expressed the opinion that this indicates a deficiency in the infrastructure. He also explained that when his basement was flooded his first thought was to contact whoever could repair the damage and for this reason the City was not notified immediately. Councillor Zehr asked that Mr. Crawford submit a copy of the Consulting Engineer's report and recommendations to the Clerk who will forward copies to the appropriate staff. Mr. McKay also suggested that staff and the City's Adjustor meet with Mr. Crawford's Adjustor. 3. DELEGATION - KENNEL LICENCE CONDITIONS (GOLDEN SHINE) Ms. Danica Urosevic appeared concerning the Council resolution of July 12, 1993 granting an extension of the April 1, 1993 deadline for compliance with the kennel licensing conditions of Chapter 530 (Dogs) of the Municipal Code to October 1, 1993. Councillor Zehr read a letter from the Grand River Conservation Authority dated September 20, 1993 advising of a revised floodline and a meeting to be held September 24, 1993 to evaluate the owner's development proposal. Councillor Ziegler asked whether in keeping with the earlier Council resolution, Ms. Urosevic had reduced the number of dogs at the kennel to 10 in number and she replied in the affirmative. He suggested that since licences are issued on a year to year basis, Ms. Urosevic should be allowed to keep her 1993 Kennel Licence but be put on notice that it will not be renewed in 1994 unless she can demonstrate compliance with the licensing conditions. A brief discussion took place concerning changes to the kennel and Ms. Urosevic expressed concern that the proposed location may not address the noise concerns raised by her neighbours. Councillor Ziegler advised that he is confident these will be addressed if all City requirements are met. Ms. Urosevic asked for a further extension to the compliance deadline to allow her to obtain the required approvals and project funding. On a motion by Councillor J. Ziegler - It was resolved: "That Council further extend the deadline for compliance with the kennel licensing conditions of Chapter 530 (Dogs) of the Municipal Code from October 1, 1993 to December 31, 1993 relative to the Golden Shine Kennel, 38 Manitou Drive, and further, That provided the dogs kept on site do not exceed 10 in number the owner be permitted to retain her 1993 Kennel Licence." Ms. Urosevic indicated she would do her best to comply, however, funding for the improvements remains a problem. Councillor Ziegler suggested that Ms. Urosevic would have the option of licensing each dog individually. 4. MUNICIPAL PENALTY AND INTEREST RATE CHARGES The Committee was in receipt of a letter from Councillor C. Zehr dated July 27, 1993 and a report FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 69 -SEPTEMBER 20, 1993 from Mr. J. Gazzola dated September 15, 1993. Councillor Ziegler advised that he wished to pursue this issue on the basis that in the past the interest rate charged on tax arrears has been lower than at present. He suggested that the City consider the Federal and Provincial rates when determining an appropriate figure, noting that Council should have a policy to allow fluctuation based on current rates. He stated that the present rate should be in the neighbourhood of 12% and that the above policy should reflect an interest rate which is above prime and perhaps 3% above the Provincial/Federal rate. He observed that unlike their Federal and Provincial counterparts municipal taxes do not reflect income and that failure to pay is a reflection of the current employment situation and economic recession. He also referred to an instance of business tax arrears where a letter was sent by the City to the Sheriff asking him to take possession of any assets necessary to pay the tax owing. Mr. Gazzola responded that his chief interest is in collecting tax dollars and not treating penalties and arrears interest as a revenue source. He referred to constraints imposed by the Municipal Act and the difficulty he has in rationalizing the 12% figure referred to by Councillor Ziegler. He further stated that in his experience the seizing of assets is treated as a last resort and in the instance referred to there would likely have been a great deal of leadup prior to any decision to seize assets. In response to a question from Councillor Zehr, Councillor Ziegler indicated he had not spoken with staff concerning the collection of arrears in the specific instance referred to. On a motion by Councillor B. Stortz - It was resolved: "That further consideration of municipal penalty and interest rate charges be referred to the 1994 budget process." 5. ENVIROFUND KITCHENER INC. The Committee was in receipt of a report from Mr. J. Wallace dated August 12, 1993 concerning the relationship between Council Members and a fundraising corporation. Council had previously approved, in principle, the establishing of a fund as outlined in a draft document entitled "Envirofund Kitchener" and dated May 14, 1993 subject to a review by Management Committee of the administrative issues. Mr. Shivas advised that he had nothing further to add to the report of Mr. Wallace. Councillor Galloway pointed out that the Legal Department has identified a structural problem and that there are two options available, the first involving the adoption of a model similar to that used by the City of Thunder Bay. The alternative would be to undertake measures to adjust the structure in order to meet Kitchener's specific needs. He noted that Council had recommended a Board of Directors dominated by Councillors, and at this time it is necessary to determine whether that element of control is required or whether the City would revert to the original composition proposed in the May 14, 1993 draft. He suggested that Council should identify the ideal circumstances and proceed on the basis of the May 14, 1993 draft which suggests that the Board of Directors be comprised of the Mayor, four Members of Council and four members of the public. Councillor G. Leadston entered the meeting at this time. On a motion by Councillor T. Galloway - It was resolved: "That staff be directed to implement an Environmental Foundation as outlined in the document "Envirofund Kitchener" dated May 14, 1993 and approved by Council, in principle, on May 25, 1993." 6. CAUCUS ITEMS The Committee resolved itself into caucus to consider two items and reconvened at 12:25 p.m. to consider the balance of its agenda. 7. 1993 DEBENTURE ISSUE The Committee was in receipt of a memorandum from Mr. O. den Ouden dated September 15, 1993 recommending that Council rescind a December 14, 1992 motion (page 733 of the minutes) FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 70 -SEPTEMBER 20, 1993 relative to Transit expenditures and substitute a similar motion which does not involve Region of Waterloo and Ontario Municipal Board (OMB) approval. Mr. Gazzola explained that OMB approval for debenture issues is no longer required and that external lawyers are asking that the wording, which forms part of the 1993 Capital Budget report, be changed to that recommended in Mr. den Ouden's memo. A brief discussion took place concerning the appropriate means of making the change and Councillor Zehr agreed to provide written Notice of Motion. 8. URBAN DESIGN AWARDS LOGO The Committee was in receipt of a report and recommendation from Mr. S. Klapman dated September 3, 1993 requesting authorization to make a copyright application. Mayor D.V. Cardillo indicated his willingness to put forward the staff recommendation. Councillor Ziegler inquired as to the cost of obtaining copyright and questioned whether this was necessary at all on the basis that no one would likely wish to use the logo. Mr. McKay suggested that the issue be referred to the Planning and Economic Development Committee for further discussion. On a motion by Councillor J. Ziegler - It was resolved: "That consideration of a possible application for copyright involving the City of Kitchener Urban Design Awards be referred to a future meeting of the Planning and Economic Development Committee." 9. 1994 PRO FORMA BUDGET Mr. Gazzola gave a presentation on the Pro Forma Budget and circulated printouts of same. He reviewed the factors effecting the 1994 mill rate indicating that every 1% increase is valued at approximately $563,000.00. He also outlined the new factors having an impact on the 1994 budget. A brief discussion took place concerning the impact of the new Waterloo recreational facility on an agreement regarding use by non-residents of the Breithaupt Street facility. Mr. Graham advised that staff will continue to calculate the number of non-resident users but that the same calculation would likely be applied to the Waterloo facility. He stated that Mr. Beaudry would report on these and other related issues at a future meeting. Mr. Gazzola reviewed the 1993 Revenue Base and the projected 1994 Revenues and Expenditures. He referred to the Council target of a 0% increase and noted that if all factors remain as at present, this would result in a 5.47% increase. He also demonstrated an alternative scenario which would result in a 3.5% increase. Mr. Gazzola advised that staff have been asked to hold the 1994 Operating Budgets at the approved 1993 levels. He also suggested that the interest carrying charges for the new City Hall should be charged to the City Hall budget. Councillor Zehr noted that Council is on record as supporting a levy of no greater than 0% in 1994. Mr. McKay referred to the negative impact of the Province's Expenditure Control Plan, changes to Provincial Sales 9. 1994 PRO FORMA BUDGET (cont.) Tax and the Social Contract all of which have greatly reduced the City's ability to reach this target. He reminded the Committee that the $2,600,000.00 allocated under the Social Contract has to be accounted for by 1996 and that the staffing changes which were proposed prior to the Contract, and which the City hoped to use to reduce the levy, must now be directed toward this target. Councillor Wagner indicated he wished to be on record as not supporting a 2% increase in Transit fees. He also stated that he did not recall voting on the 0% target referred to by Councillor Zehr, though he had personally indicated he would be interested in moving toward 0%. Councillor Stortz acknowledged the negative impact of recent Provincial initiatives and expressed his understanding FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 71 -SEPTEMBER 20, 1993 that in the wake of these the viability of a 0% increase must be reassessed. Mr. Gazzola stated that the Social Contract imposes a $3,500,000.00 problem which for budgetary purposes reduces the City's revenues. Mr. McKay added that the Social Contract has reduced the municipality's ability to immediately realize productivity gains relative to staffing. Councillor Leadston offered the opinion that the Social Contract has made it impossible to reach the 0% target. He asked whether staff could include a separate budget category indicating where the Social Contract and other Provincial budget initiatives have had an impact. Mr. McKay also acknowledged that from a corporate standpoint there are positive financial aspects to the Social Contract. Councillor Zehr asked that further discussion of the Pro Forma Budget take place at the October 4, 1993 Finance and Administration Committee meeting. He also asked that a copy of the scenario involving a 2% increase in fees, income and transfers be given to all Councillors. It was generally agreed that the Committee would support the direction previously given to staff that the 1994 Operating Budgets should remain at approved 1993 levels. Mr. Gazzola also agreed to provide the times for the scheduled meeting dates and asked that Councillors review the timetable and comment. 10. CAPITAL PROJECT APPROVAL - FLEET DIVISION The Committee was in receipt of a report from Mr. B. Gulliver dated September 1, 1993 seeking approval for the retrofitting of bus seats and identifying subsidy opportunities. On a motion by Mayor D.V. Cardillo - It was resolved: "That consideration of the two Capital projects relative to the retrofitting of Transit coach seating as outlined in the report of Mr. B. Gulliver dated September 1, 1993 be referred to the Capital portion of the 1994 budget process." 11. ADVANCE TO KITCHENER PUBLIC LIBRARY BOARD The Committee was in receipt this date of a report from Mr. J. Gazzola dated September 20, 1993 recommending approval of a $150,000.00 line of credit for the Kitchener Public Library Board. On a motion by Mayor D.V. Cardillo - It was resolved: "That the Corporation of the City of Kitchener approve a line of credit, not to exceed $150,000.00, to the Kitchener Public Library Board as a loan to provide "seed funding" for the establishing of a Government Bookstore, and further, That any advances are to have no definite repayment terms and interest on these will be charged at the Bank Prime plus 1%." 12. ONTARIO WINERY RETAIL STORES - SUNDAY OPENINGS The Committee was in receipt this date of a letter from the Executive Director of the Wine Council of Ontario dated September 14, 1993 requesting approval to open outlets located in the City of Kitchener. On a motion by Councillor B. Stortz - It was resolved: "That the City Clerk be authorized to approve requests from Ontario Wineries for permission to open their retail stores on Sunday." 13. MUNICIPAL JOINT-INVESTMENT FUNDS The Committee was in receipt of a report from Mr. J. Gazzola dated September 16, 1993 FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 72 -SEPTEMBER 20, 1993 recommending participation in the funds. On a motion by Councillor J. Ziegler - It was resolved: "That Council approve participation by the City of Kitchener in municipal joint- investment funds as outlined in the report of Mr. J. Gazzola dated September 16, 1993, and that an appropriate by-law be drafted for enactment." 14. RENOVATIONS TO DUKE/ONTARIO STREET GARAGE The Committee was in receipt of a report from Mr. D. Heubach dated September 17, 1993 recommending the funding of renovations to accommodate the Safety/Driver Training classroom. Mr. Gazzola explained that the renovations were previously approved by Council and that funds are available through the City Hall Construction Contingency Account. In response to a question from Councillor Ziegler, Mr. Heubach advised that training cannot take place in the present City Hall facility in view of the amount of booking time required and the specialized training equipment. On a motion by Councillor M. Yantzi - It was resolved: "That Council approve funding in the amount of $48,000.00 from the Construction Contingency Account for the new City Hall to renovate the offices in the Duke/Ontario Street Parking Garage to accommodate a Safety/Training classroom." 15. FEDERAL ELECTION CAMPAIGN SIGNS Councillor Zehr noted that concerns have been expressed as to the location of campaign signs following a recent Supreme Court ruling. Councillor Lorentz suggested Council give direction in this regard and that a letter and a copy of the City by-law be sent to all Federal candidates asking that they respect the local by-law. He referred to an incident involving a near accident due to posting of a sign which obscured visibility. Councillor Stortz indicated that a complete package has already been forwarded to all registered candidates. Mr. McKay also advised that the City can remove any sign which it feels is a safety hazard. Councillor Ziegler pointed out that the Supreme Court decision invalidates local sign by-laws and the letter proposed by Councillor Lorentz is a waste of time. He suggested that candidates should refer to the recent Supreme Court decision and use common sense in the posting of campaign signs. On a motion by Councillor G. Lorentz - It was resolved: "That Council request all candidates in the upcoming Federal election to abide by the City's Sign By-law." 15. FEDERAL ELECTION CAMPAIGN SIGNS (cont.) Mr. McKay stated that staff will assume a standing direction that in the case of a safety hazard the individual posting the sign will be advised of the problem and if necessary, the sign will be removed by the municipality. 16. OTHER BUSINESS Councillor Stortz asked that a report be prepared and submitted for discussion at the October 4, 1993 meeting relative to regulation of activity in the new Civic Square. 17. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on . Monday, October 4, 1993 FINANCE AND ADMINISTRATION COMMITTEE MINUTES- 73 -SEPTEMBER 20, 1993 18. ADJOURNMENT On motion, the meeting adjourned at 1:30 p.m. _________________________________ G. Sosnoski Manager of Corporate Records/Assistant City Clerk