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FINANCE AND ADMINISTRATION COMMITTEE MINUTES
FEBRUARY 14, 1994
The Finance and Administration Committee met this date, commencing at 11:10 a.m., under the
Chairmanship of Councillor C. Zehr with the following members present: Mayor D.V. Cardillo, Councillors
T. Galloway, J. Smola, M. Wagner, C. Weylie and J. Ziegler. Councillor G. Lorentz was in attendance for
part of the meeting.
Others present: Councillor M. Yantzi, Councillor G. Leadston, Messrs. T. McKay, J. Gazzola, R.
Freeborn, J. Wallace, J. Hancock, J. Witmer, L. Gordon, B. Gulliver, O. den Ouden, L. Parkhouse, W.
Beck, G. Sosnoski and Mrs. J. Koppeser.
BUSINESS TAX ASSESSMENT - 231 ARNOLD STREET
Mr. G. Brown, Region Utility Contractors Limited, appeared concerning his request for relief from
the business tax relative to his use of the above premises for vehicle storage. The Committee was
in receipt of a memorandum from Councillor J. Ziegler dated February 3, 1994 providing
background information.
Mr. Brown explained that he operates a small contracting business employing 14 people and for
the past two years has used the premises at 231 Arnold Street to store approximately ten vehicles
between contracts. Mr. Brown advised that he first received a notice of assessment and tax bills in
January of this year and prior to that was unaware he was being assessed a business tax. It was
noted that business tax arrears of approximately $6,000.00 have accumulated to date and that Mr.
Brown has received six bills notifying of interest and penalty charges. Mr. Brown offered the
opinion that the tax assessment is too high in view of the fact that the building is not accessible to
the public, has no telephones and is used for storage use only.
Councillor Ziegler confirmed that there is no active business use of the premises, which is
currently assessed at the 70% rate. He suggested that the City initiate action with the Assessment
Office to lower the taxation rate and bring it more into line with present use. Mr. Gazzola clarified
that the Province decides on the applicable percentage for taxation purposes, but the City has
indicated to Mr. Brown that it would not pursue the arrears owing at this time.
Councillor Ziegler put forward a motion directing staff to meet with the Assessment Office to
determine what could be done to lower the percentage of business taxes levied, and to provide
relief from the entire City portion relative to tax arrears.
Councillor Weylie pointed out that arrears would still apply relative to the Region of Waterloo and
School Board tax levy and Councillor Zehr suggested that Mr. Brown approach these two bodies
separately. Councillor Ziegler requested that staff notify the Region and the School Boards of any
action taken by the City. Mr. Gazzola noted that he would like an opportunity to discuss the matter
further with Mr. Brown before a decision is made to grant relief from the tax arrears. Mayor
Cardillo asked that the first part of Councillor Ziegler's motion be voted on separately.
Councillor Ziegler amended the portion of his motion relative to the granting of relief for tax arrears
so that relief would be considered only after staff have advised Council as to the outcome of their
investigation and discussions with the Assessment Office.
The motion by Councillor Ziegler, as amended, was then put to a vote and as previously requested
was dealt with in two parts.
On motion by Councillor J. Ziegler -
it was resolved:
"That staff meet with representatives of the Ministry of Revenue (Property Assessment
Office) to consider the situation presented by Mr. G. Brown, Region Utility Contractors
Limited, to the Finance and Administration Committee on February 14, 1994 relative to his
use of the property at 231 Arnold Street for vehicle storage, with the intention of adjusting
the assessment percentage downward to the lowest category, and further,
BUSINESS TAX ASSESSMENT - 231 ARNOLD STREET (con't.)
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That subject to staff advising of the outcome of discussions with the Assessment Office,
Council consider awarding a grant without prejudice or precedent to Mr. Brown for the
entire City portion of the tax arrears."
DEREGULATION OF SERVICE STATION HOURS OF OPERATION
Mr. Frank Cozzolino, District Manager - Central Ontario, appeared on behalf of Canadian Tire
Petroleum and in support of the deregulation of service station hours of operation in Kitchener.
The Committee was in receipt of his written submission dated January 25, 1994 and a copy of a
petition in support of deregulation containing approximately 430 signatures.
Mr. Cozzolino suggested that Kitchener should follow the example of Waterloo in this regard for
reasons which include customer safety, convenience and additional employment for between six
and ten people. He pointed out that few communities continue to regulate the hours of operation
and most allow these to be determined by market conditions. Mr. Cozzolino added that with
respect to the issue of employee safety, his company has appropriate programs in place.
Councillor Lorentz entered the meeting at this time.
Councillor Lorentz clarified that Kitchener had not been approached to change the existing by-law
when the issue was raised with the City of Waterloo. He indicated his support for a deferral to
allow either a special meeting with the business operators affected or a survey to determine the
level of support for deregulation. Mayor Cardillo stated that he did not see the value in either a
survey or a special meeting, as Waterloo has already dealt with the issue at length. Mr. Cozzolino
stated that he would not like to see a deferral on the basis that it would result in further delays.
Councillor Ziegler expressed concern as to the proximity of gas retail businesses to residential
areas, but noted that at present a number of businesses operating 24 hours a day are adjacent to
residential areas and for this reason extending the hours of operation for gas stations would not
lead to increased car traffic. Councillor Wagner noted that extending the hours of operation is a
service issue and that a process should be started relative to the deregulation issue. He indicated
his willingness to put forward a motion that staff begin the process of deregulation and prepare an
amending by-law.
Councillor Leadston suggested that the owners and operators of both service stations and gas
bars be consulted, noting that the former may not support deregulation as the nature of their
business is different from a purely gas retail operation. A brief discussion took place concerning
various means of obtaining public input.
Mr. McKay clarified that the City presently regulates the hours of operation under the Municipal
Code and that if Council does not wish to control these, a simple repealing by-law is required.
However, if it wants to change the nature of the regulation, staff input should be obtained.
On motion by Councillor M. Wagner -
it was resolved:
"That Council begin a process to consider deregulation of service station hours of operation
in Kitchener."
Councillor J. Ziegler put forward a motion recommending that the deregulation of service station
hours of operation be discussed at the regular Finance and Administration Committee meeting on
February 28, 1994, and that public input be obtained at the meeting.
DEREGULATION OF SERVICE STATION HOURS OF OPERATION (con't.)
Councillor Smola suggested that the issue would be best handled through a special Finance and
Administration Committee meeting, with public notice given in the newspaper. Councillor Ziegler
accepted the comments of Councillor Smola and amended his motion to indicate that the issue
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would be dealt with at a special Finance and Administration Committee meeting to commence at
7:00 p.m. on March 21, 1994. The motion was then voted on as amended.
On motion by Councillor J. Ziegler -
it was resolved:
"That staff advise all gas bar and service station owners and operators in the City of a
special Finance and Administration Committee meeting to be held on Monday, March 21,
1994 at 7:00 p.m. in the Council Chamber to hear submissions and discuss the possible
deregulation of service station hours of operation."
Mr. Cozzolino asked that in addition to notifying gas station operators, the parent companies also
be advised of the meeting.
Councillor Leadston pointed out the need to develop closer relations with the City of Waterloo in
dealing with issues of mutual concern. By general consent, it was agreed that the respective Chief
Administrators of both Kitchener and Waterloo would meet to informally discuss this issue and
develop a list of mutual concerns, with a report to be submitted to the Twin City Committee for
consideration, and if appropriate, a recommendation to the respective Councils.
3. DELEGATION - MOBILE CANTEEN LICENCE
Mr. John Blackburn was in attendance with regard to a recent notice received from the Manager of
Licensing concerning his Mobile Canteen Licence. He indicated that he wishes to be classified as
a mobile canteen and that the City is attempting to change his licence classification. Mr.
Blackburn referred at length to various pieces of legislation governing the issuing of licences in
general and mobile canteen licences in particular. He referred to an article published in the K-W
Record and spoke about his product line. He clarified that he moves his operation from time to
time and as a matter of course obtains written permission relative to any use of private property.
Mrs. Koppeser stated that the City by-law defines two classes of vehicles; a mobile canteen which
moves about the City and a chip wagon/hot dog cart which is confined to a single location with a
limited product line. She pointed out that in the past Mr. Blackburn has set up his operation on a
particular corner in the City in order to sell his product. Mr. Parkhouse added that the present
issue arose in the summer of 1993 when Mr. Blackburn was found to be operating his vehicle from
a fixed location. He indicated the problems of staff in trying to obtain a definition of the operation
from Mr. Blackburn, who alternately advised that he moves around the City and sets up at fixed
locations. Mr. Parkhouse advised of the fee for the two types of licences which apply to
refreshment vehicles; mobile canteens having a fee of $85.00 per year and fixed locations
$1,076.00 per year.
Councillor Lorentz inquired whether Mr. Blackburn would be willing to pay for both licences and he
replied in the affirmative. Mr. Blackburn questioned whether purchasing both licences would allow
him to undertaken what he referred to as "promotions". Mr. Parkhouse replied that a problem
would only occur if Mr. Blackburn is selling a product at a promotion and taking in the proceeds
himself. In response to a question from Mayor D.V. Cardillo, Mr. Blackburn read from a letter he
received on July 28, 1993 outlining the licensing issue.
Mr. Parkhouse pointed out that the Committee may also wish to consider the fact that oysters,
which are part of Mr. Blackburn's product line, are not included in the by-law as an approved
product in the chip wagon/hot dog cart category. Mr. Blackburn questioned on what basis the City
could tell him which products to sell provided he complies with all regulations. In response to a
question from Councillor C. Weylie, Mrs. Koppeser advised that specific vendor locations must be
approved by the Planning and Development Department.
DELEGATION - MOBILE CANTEEN LICENCE (con't.)
Councillor Smola indicated his willingness to put forward a motion that staff amend the Municipal
Code to include oysters in the approved product line.
Mr. McKay pointed out that a host of other products mentioned by Mr. Blackburn this date are not
included in the approved product line and he questioned whether the City should be involved in
regulating product lines at all. Councillor Smola added that the Region of Waterloo would be
satisfied provided all health regulations are met.
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Mr. Wallace referred to earlier comments made about the sale of food on private property. He
pointed out that in the past the City has considered product regulation where the use of public
thoroughfares are involved. He reminded the Committee of past concerns expressed by
businesses where mobile units are operating on the street adjacent or in close proximity to
stationery businesses selling the same or a similar product. He suggested that the Committee
consider removing the product line only in regard to private property.
On motion by Councillor J. Smola -
it was resolved:
"That Chapter 586 (Refreshment Vehicles) of the Municipal Code be amended to remove
any regulation of product lines sold on private property, but with no change in the licensing
requirements as they relate to health and safety regulations."
4. HAWKERS AND PEDLARS LICENCE - OKTOBERFEST LIONS CLUB
Mr. Allan McTavish appeared on behalf of the Lions Club to request waiving of the $500.00
licence fee for an upcoming craft sale in the Community Hall at the Lyle Hallman Pool. He advised
that vendors would be in attendance from out-of-town and that Mrs. Koppeser had explained that
the only alternative to the $500.00 fee would be to have the vendors donate the products to the
Lions Club for sale by them. Councillor Leadston added that the craft sale is in support of local
charities and that payment of the licence fee would likely require most if not all of the profits.
Councillor Yantzi suggested that the City examine the scope of its current Hawkers and Pedlars
By-law as it relates to charitable and non-profit organizations. He expressed the opinion that the
current procedures are too involved and complicated and may not be in keeping with the present
retail environment. He indicated that he could support waiving of the fee in this instance on the
basis that Council has granted exemptions in the past. Councillor Leadston suggested that an
alternative would be to declare the event as a Civic Celebration and asked that a Committee
member make a recommendation in this regard.
It was generally agreed that the Committee would adjourn to consider the request in the context of
its caucus agenda. Councillor Leadston asked that Mr. Parkhouse advise Mr. McTavish by phone
and in writing of the Committee's recommendation.
5. CAUCUSITEMS
The Committee resolved itself into caucus to consider the two items on the agenda and
reconvened at 1:25 p.m. to consider the balance of the regular agenda.
6. INTERNET COMPUTER INFORMATION NETWORK
It was generally agreed that in response to a request from staff, consideration of this item would be
deferred to the February 28, 1994 meeting. Mr. McKay pointed out that Management Committee
will be addressing the Internet at an upcoming meeting with representatives from the University of
Waterloo in attendance. He extended an invitation to Members of Council to attend and agreed to
notify of the date.
HAWKERS AND PEDLARS LICENCE - OKTOBERFEST LIONS CLUB (con't.)
On a motion by Mayor D.V. Cardillo -
it was resolved:
"That no action be taken on the request of Mr. Allan McTavish, Oktoberfest Lions Club, for
relief from the Hawkers and Pedlars licence fee relative to an upcoming craft sale in the
Community Hall at the Lyle Hallman Pool."
SMALL ANIMAL TRAPS - HUMANE SOCIETY
The Committee was in receipt of a letter from Dr. G. Hess, General Manager, Kitchener-Waterloo
and North Waterloo Humane Society, dated February 2, 1994 in response to Council's resolution
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of January 21, 1994 requesting that the Society consider providing traps to Kitchener residents as
a service and at no cost.
On motion by Councillor J. Ziegler -
it was resolved:
"That no action be taken with respect to the information provided by Dr. G. Hess, General
Manager, Kitchener-Waterloo and North Waterloo Humane Society, dated February 2,
1994 concerning the providing of small animal traps and the removal and release of
animals in the wild."
9. TRANSFER OF FUNDS - SEWER SURCHARGE SURPLUS
The Committee was in receipt of a report and recommendation from Mr. B. Liddle dated February
7, 1994 requesting permission for a transfer relative to the 1994 reconstruction of a portion of
Waterloo Street.
On motion by Councillor J. Smola -
it was resolved:
"That the sum of $200,000.00 be transferred from the Sewer Surcharge Surplus to Index
#855020, relative to the scheduled 1994 reconstruction of Waterloo Street from Breithaupt
Street to Victoria Street."
10. FLEET REPLACEMENT - FIRE DEPARTMENT PUMPER #4511
The Committee was in receipt of a report from Fire Chief J. Hancock dated February 9, 1994
recommending replacement of the unit at Fire Station #5.
On motion by Councillor G. Lorentz -
it was resolved:
"That Fire Pumper Unit #4511 be replaced in 1994, with funding to be obtained by
advancing the pumper replacement allocated in 1995 and reallocating the radio project
from 1994 to 1995."
11. DRAFT BY-LAW - BUILDING CODE
The Committee was in receipt of a report and recommendation from Mr. J. Witmer dated February
9, 1994 and a draft by-law, the purpose of which is to bring Chapter 710 of the City's Municipal
Code into conformity with new Provincial building legislation.
On motion by Councillor J. Ziegler -
it was resolved:
"That the Building Code By-law be amended as outlined in the draft appended to report
#PD94/20 from Mr. J. Witmer dated February 9, 1994 and that Chapter 710 (Building -
Permits and Fees) of the Municipal Code be amended accordingly."
12.
TENDER T93-76 - TRANSIT COACHES
The Committee was in receipt of a report from Mr. L. Gordon dated February 10, 1994
recommending the purchase of 26 buses from New Flyer Industries Limited.
On motion by Councillor M. Wagner -
it was resolved:
"That subject to receipt of a 75% Ministry of Transportation subsidy, Tender T93-76, Diesel
Powered 40' (12.2M) long, 102" (2.6M) wide, Low Floor, Wheelchair Accessible, Transit
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Coaches, be awarded to New Flyer Industries Limited, Winnipeg, Manitoba at their
tendered price of $7,076,706. plus G.S.T. and P.S.T."
Mr. McKay advised that acquisition of the 26 additional buses would substantially increase the
City's Iow floor bus fleet and would allow their dedication to specific routes. Mr. Gazzola advised
that the purchase will result in an $88,000.00 shortfall which will be dealt with as part of next year's
Capital Forecast.
13. OTHER BUSINESS
Councillor Galloway asked for clarification of the contents of a letter sent by Mayor Cardillo to the
Solicitor General relative to the Women's Correctional Facility. He referred to the potential for
misunderstanding and asked the Mayor to indicate whether the letter advises of general support
for the location of a prison somewhere in the City or support for the site selected. Mayor Cardillo
replied that the letter was intended to indicate general support for a Women's Correctional Facility
in the City of Kitchener. Councillor Ziegler also made reference to a letter recently sent by
Councillor Galloway.
On motion by Councillor G. Lorentz -
it was resolved:
"That a joint Council/Staff committee be struck to review Chapter 548 (Hawkers and
Pedlars) of the Municipal Code, with the Council appointments to be made at the February
21, 1994 meeting."
14. NEXT MEETING
The next regularly scheduled meeting of the Finance and Administration Committee will be held on
Monday, February 28, 1994.
15. ADJOURNMENT
On motion, the meeting adjourned at 1:30 p.m.
G. Sosnoski
Manager of Corporate
Records/Assistant City Clerk