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FINANCE & ADMINISTRATION COMMITTEE MINUTES
APRIL 18, 1994
CITY OF KITCHENER
The Finance and Administration Committee met this date, commencing at 11:05 a.m., under the
Chairmanship of Councillor C. Zehr with the following members present: Mayor D.V. Cardillo, Councillors
B. Stortz, T. Galloway, G. Lorentz, J. Smola, M. Wagner, C. Weylie and M. Yantzi. Councillor J. Ziegler
was in attendance for part of the meeting.
Others present: Councillor G. Leadston, Messrs. J. Gazzola, R. Freeborn, J. Wallace, J. Hancock, T.
Clancy, O. den Ouden, L. Parkhouse, E. Kovacs, G. Sosnoski and Ms. D. Arnold.
NOISE COMPLAINT - THALER AVENUE
Mr. N. Mitchell appeared in his capacity as Superintendent of a senior citizen complex on Thaler
Avenue.
Councillor Zehr advised that barking dogs on a neighbouring property have been an ongoing
problem dating back to the mid 1980's. Mr. Mitchell added that he has approached Councillors on
a number of occasions and has been frustrated with the City's inability to deal with the problem.
He pointed out that the individuals inconvenienced by the noise are frail and elderly and are
unable to rectify the problem themselves.
Councillor Zehr pointed out that approximately 50 senior citizens live in the complex and the
barking dogs cause significant hardship. He also noted that under the current City By-law a
complaint can be lodged only by an individual living on the premises.
Ms. Arnold agreed to meet with Mr. Mitchell and the residents present this date and suggested that
details of the complaint be discussed in the caucus portion of the Finance and Administration
Committee meeting.
Councillor Wagner suggested that the City should find a better and more expedient way to deal
with ongoing problems of this kind. He added that it is unlikely situations like the one discussed
this date are unique to Kitchener and suggested that, if appropriate, municipalities could request
an extension of authority through the enabling legislation enacted by the Province. Councillor
Zehr asked that Councillor Wagner's comments be considered in conjunction with the general
Noise By-law discussion scheduled for the May 2, 1994 meeting.
LICENSING AGREEMENT - 122 FREDERICK STREET
Mr. D. Cooke appeared in his capacity as President of the K-W Multicultural Centre to request the
Committee's consideration of a Licensing Agreement for the use of the former Registry Building at
122 Frederick Street. He clarified that he was not requesting a property tax exemption as was
previously indicated.
Mr. Cooke circulated material explaining the role of the Centre and noted that Kitchener is the fifth
largest immigrant settlement city in Canada. Mr. Cooke explained that under the proposed
licensing arrangement the Centre would establish office facilities and an auditorium for public
meetings, with the City continuing to have access to the building. He advised that the Centre had
contemplated a $15,000.00 per year stipend, would look after snow removal and keep the building
in good repair. Mr. Cooke added that any major structural work could be negotiated at a later time.
In closing, Mr. Cooke introduced the Vice-President, the Past President and an Ad Hoc Building
Committee member who were also in attendance this date.
Councillor Wagner referred to the proposed $15,000.00 stipend and questioned whether staff had
identified a fair market rental rate or considered the possibility of obtaining a larger amount than
that proposed by the Centre. Mr. Wallace replied that no valuation has been undertaken at
present. He added that the Licensing Agreement would also assist Regional Assessment's Legal
Advisor in determining whether property taxes would be owing.
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FINANCE & ADMINISTRATION COMMITTEE MINUTES
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LICENSING AGREEMENT - 122 FREDERICK STREET (cont'd.)
Councillor Wagner commented that the proposal seems premature as there has been no attempt
to determine the best future use for the building or to market it in support of such use. He also
pointed out that the Canadian Curling Hall of Fame has expressed a strong interest in the building.
Councillor Stortz replied that negotiations with the Multicultural Centre have been ongoing for
approximately six months. He added that the cost of maintaining the building untenanted is
approximately $3,000.00 per year and suggested that $15,000.00 per year in rental income is
reasonable given the fact that the lower level is only suitable for storage. He also pointed out that
from the Centre's perspective the proposed arrangement is not economically viable unless
property taxes are waived.
Councillor J. Ziegler entered the meeting at this time.
Mayor Cardillo indicated his support for the proposed agreement, noting that terms should be
negotiated and returned to the Finance and Administration Committee for review. Councillor
Yantzi suggested it is important for the Centre to remain in the downtown since the majority of its
clients live in the area. He added that the Registry Building has been vacant for some time and
generally there has been little interest shown by any other organization. He suggested that
negotiations should proceed with the Centre as soon as possible. Councillor Wagner cautioned
that Council would be accepting the first and not necessarily the best use for the building. He
urged a deferral to allow a determination of the best use and consideration of an offer from the
Canadian Curling Hall of Fame. Councillor Stortz indicated that the delegation is only asking for
acknowledgement of the negotiations and instruction to staff to continue. In response to a
question from Councillor Zehr, Mr. Wallace advised that the proposed Licensing Agreement would
be flexible and that the City would retain a measure of control over the building.
In response to a further question from Councillor Weylie, Mr. Cooke pointed out that the Centre's
present lease has expired and they are prepared to enter into a Licensing Agreement for as long
or short a period of time as the City wishes, though they themselves favour a longer term
agreement. Councillor Yantzi suggested that if the building were sold, it would likely be to the
Region of Waterloo, which would have no concerns in having the Multicultural Centre as a tenant.
Councillor Galloway suggested that more study on the long term use of the building is required
along with additional financial information. Councillor Wagner asked for clarification of whether
the City would entertain a proposal from the Curling Hall of Fame and Councillor Zehr replied that
unless specifically stated negotiations would continue with the Centre with final ratification by
Committee and Council. He offered the opinion that the City could also entertain a proposal from
the Curling Hall of Fame. He asked that the comments made this date be taken into consideration
when an agreement is returned for Committee consideration.
WAIVING OF HAWKERS AND PEDLARS LICENCE FEE - SOCIETY FOR CREATIVE
ANACHRONISM (SCA)
The Committee was in receipt of a report from Mrs. J. Koppeser dated April 11, 1994 and a written
request from Ms. K. Murphy on behalf of the SCA.
Ms. K. Murphy appeared in support of the request and explained that the Medieval Faire was held
on Victoria Park Island in 1993 and a similar event is proposed this year. She explained that
vendors attend to both demonstrate their skills and sell their products and that they could not
afford to attend if forced to pay a licensing fee. Ms. Murphy pointed out that the local SCA does
not profit by the event and though not a charity is a non-profit educational group.
3. WAIVING OF HAWKERS AND PEDLARS LICENCE FEE - SOCIETY FOR CREATIVE
ANACHRONISM (SCA) (cont'd.)
Councillor Yantzi noted that the Hawkers and Pedlars By-law was originally put in place to
discourage unfair competition, which is not the case with the proposed event. He also noted that
the licence fee was waived by Council in 1993.
On motion by Councillor M. Yantzi -
APRIL 18, 1994
FINANCE & ADMINISTRATION COMMITTEE MINUTES
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it was resolved:
"That the Specific Location Daily Sales Licence fees be waived relative to the Medieval
Faire sponsored by the Society for Creative Anachronism tentatively scheduled for May 28,
1994 at Victoria Park."
EARLY RETIREMENT PROPOSAL - KITCHENER PROFESSIONAL FIRE FIGHTERS'
ASSOCIATION
Councillor J. Smola disclosed a conflict of interest and abstained from all voting and discussion
concerning the early retirement proposal of the Kitchener Professional Fire Fighters' Association
and their request for the waiving of a Hawkers and Pedlars Licence fee as a member of his
immediate family is involved with the Association.
Mr. J. Egers appeared in his capacity as President of the Kitchener Professional Fire Fighters'
Association and introduced the Vice-President and the Chairman of the Policy Committee who
were also in attendance.
Mr. Egers read from a prepared statement circulated this date concerning an early retirement
incentive package for senior Fire Fighters which would result in savings to the Corporation over a
three year period. Mr. Egers explained that the proposal is based on the premise that the City
would not use the early retirement incentive to downsize the Department and would replace
retiring senior Fire Fighters with probationary Fire Fighters who would start at a lower rate of pay.
He noted that the Association estimates minimum savings over a three year period of
approximately $58,597.00 per Fire Fighter. In addition, the City would gain 12 weeks of productive
time due to the vacation differential. Mr. Egers asked that Council consider the merits of the
proposal and respond to the Association.
Councillor Yantzi pointed out that the savings proposed are not sustainable beyond the three year
term. Mr. Egers acknowledged this but pointed out there is some financial and other value in
having younger Fire Fighters. Councillor Yantzi offered the opinion that acceptance of such a
proposal would be unfair to other City departments. Mr. Egers argued that the Fire Department is
structured differently from other City operating departments, and noted that OMERS has already
waived the early pension reduction costs for other department employees under the Type 7
pension.
Mr. Freeborn pointed out that the proposal put forward by the Association would be in addition to
the City's present Early Retirement Program. Councillor Stortz cautioned against negotiating such
a proposal in a public forum and suggested that the Committee accept the proposal as information
and respond promptly. Mayor Cardillo asked whether other similar proposals had been accepted
in Ontario cities and Mr. Egers replied that one such proposal was accepted by the City of
Windsor and credited to their Social Contract obligation. In response to a further question, he
advised that approximately 20 Kitchener Fire Fighters would qualify under the proposal and that it
is in the City's best interest to act quickly. Councillor Lorentz inquired as to the additional training
costs for new Fire Fighters and Mr. Egers identified costs of $2,800.00 - $3,800.00 involving
turnout gear and wages during the training program. Councillor Lorentz commented that the City
has a great deal to lose if too many of its senior Fire Fighters leave at one time.
4. EARLY RETIREMENT PROPOSAL - KITCHENER PROFESSIONAL FIRE FIGHTERS'
ASSOCIATION (cont'd.)
Moved by Councillor B. Stortz -
"That Council accept, as information, the early retirement proposal of the Kitchener
Professional Fire Fighters' Association as presented to the Finance and Administration
Committee on April 18, 1994, and respond as soon as possible."
Mr. Freeborn acknowledged that all of the savings presented this date are attainable, though none
are sustainable beyond the three year period. He also cautioned that if approved by Council, four
other City Unions may be interested in a similar arrangement. Mr. Freeborn offered the
suggestion that the City should revisit and possibly enhance its existing Early Retirement Incentive
Program to provide more of an enticement to retire early.
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FINANCE & ADMINISTRATION COMMITTEE MINUTES
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Councillor Ziegler asked for specific financial information as to how the Early Retirement Incentive
Program works at present for the Fire Department as opposed to other City Departments.
Councillor Yantzi cited the issue of fairness and suggested that any early retirement incentive
should be looked at in a corporate-wide context. Councillor Lorentz agreed with the principle put
forward by Councillor Yantzi but noted that all City employees cannot be easily compared in the
areas of pension and retirement incentives. He also voiced his concern that the proposed savings
would not be sustainable.
The previous motion by Councillor B. Stortz to accept the proposal as information was voted on
and CARRIED.
Councillor J. Smola previously disclosed a conflict of interest and abstained from all voting and
discussion concerning the early retirement proposal of the Kitchener Professional Fire Fighters'
Association as a member of his immediate family is involved with the Association.
CAUCUSITEMS
The Committee resolved itself into caucus at 12:20 p.m. to consider four items and reconvened at
1:00 p.m.
CLAIM FOR DAMAGES - 1026A GUELPH STREET
The Committee was in receipt of correspondence from Mr. J. Croth, Adjusters Canada, dated
March 3, 1994 explaining the occurrence and the rationale for denying the flood damage claim.
They were also in receipt of a report from Mr. Kovacs dated April 11, 1994 recommending that the
claim for damages be denied on the basis that water main breaks in extremely cold weather are
not controllable.
Councillor Smola pointed out that to date he has received no satisfactory explanation of why the
premises was flooded and on this basis feels that a 50/50 split of the claimant's costs is warranted.
The Committee was circulated with a list of articles requiring replacement at a total cost
$3,470.00.
Mr. Kovacs acknowledged there is no way of determining how water entered the premises, though
it appears it entered below grade and followed the path of least resistance.
Moved by Councillor J. Smola -
"That a grant without prejudice or precedent in the amount of $1,735.00 be awarded to Ms.
J. Brown in partial compensation for losses incurred in the flooding of premises at 1026A
Guelph Street."
Councillor Smola advised that the claimant had no insurance at the time and repeated his earlier
comment that in the absence of verification of why water entered the building the City has an
obligation to split the costs.
CLAIM FOR DAMAGES - 1026A GUELPH STREET (cont'd.)
The motion by Councillor J. Smola to award a grant without prejudice or precedent was voted on
and LOST.
WAIVING OF HAWKERS AND PEDLAR LICENCE FEE - KITCHENER PROFESSIONAL FIRE
FIGHTERS' ASSOCIATION
The Committee was in receipt of a report and recommendation from Mrs. J. Koppeser dated April
12, 1994 relative to the sale of calendars and t-shirts.
On motion by Councillor B. Stortz -
it was resolved:
"That the Kitchener Professional Fire Fighters' Association, be granted permission to sell
Fire Fighter Calendars and T-Shirts in Kitchener from May 19 to December 31, 1994
(inclusive), provided that a Hawker and Pedlar Licence is obtained, with same to be issued
FINANCE & ADMINISTRATION COMMITTEE MINUTES
APRIL 18, 1994
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CITY OF KITCHENER
for a nominal $1.00 licence fee."
Councillor J. Smola previously disclosed a conflict of interest and abstained from all voting and
discussion concerning the Kitchener Professional Fire Fighters' Association request to waive the
Hawkers and Pedlars Licence fee as a member of his immediate family is involved with the
Association.
8. FEDERATION OF CANADIAN MUNICIPALITIES (FCM) - GST AGREEMENT
The Committee was in receipt of a Communique from the FCM dated March 22, 1994 concerning
the existing agreement with the Federal Government involving the GST rebate to municipalities.
Councillor C. Zehr advised of a proposal to remove the rebate in conjunction with the review by the
House of Commons Standing Committee on Finance struck to explore possible alternatives to the
GST. Councillor Zehr asked whether Council wished to go on record as continuing to support the
GST rebate and communicate this decision in writing to the Federal Government.
On motion by Councillor M. Yantzi -
it was resolved:
"That a letter be forwarded to the Federal Ministers of Finance and Revenue, the House of
Commons Standing Committee on Finance and the Federation of Canadian Municipalities
indicating the City of Kitchener's continued support for the GST rebate to municipalities."
9. REGIONAL GOVERNMENT REVIEW
The Committee was in receipt of a letter from the Review Steering Committee dated April 5, 1994,
including a list of suggested review topics. They were also in receipt of a report from Mr. T. McKay
dated April 12, 1994 conveying the comments of Management Committee with respect to the
topical review.
Councillor Lorentz indicated his agreement with the contents of Mr. McKay's report including
reference to the Review Chairman being provided with research and support capabilities
independent of Regional staff to insure a degree of impartiality in carrying out the review.
Councillor Galloway inquired as to the impact on the Region if at a future date, Kitchener and
Waterloo were to merge into a single municipality. Though indicating he does not necessarily
support such a merging, it should perhaps be considered given the length of time which has
elapsed since the last Regional Review.
Councillor Zehr noted that submissions are to be received at the Office of the Regional Chair by
April 20 and suggested that the Committee adopt the Management Committee report and send a
corresponding submission to the Regional Chairman under the Mayor's signature.
REGIONAL GOVERNMENT REVIEW (cont'd.)
On motion by Councillor J. Ziegler -
it was resolved:
"That Council adopt the comments of Management Committee concerning the Regional
Topical Review as outlined in a report from Mr. T. McKay dated April 12, 1994, and that
these be forwarded to the Review Steering Committee."
10. DAY OF MOURNING FOR EMPLOYEES KILLED IN THE WORKPLACE
The Committee was in receipt of a report from Mr. R. Freeborn dated April 11, 1994 concerning a
request from the C.B.R.T. Local #304 Union Executive.
On motion by Councillor G. Lorentz -
it was resolved:
"That Council grant the request of the C.B.R.T. Local #304 Union Executive that two
minutes of silence be observed at 11:00 a.m. on Thursday, April 28, 1994 in memory of
employees killed in the workplace."
APRIL 18, 1994
FINANCE & ADMINISTRATION COMMITTEE MINUTES
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11.
12.
NEXT MEETING
The next regularly scheduled meeting of the Finance and Administration Committee will be held on
Monday, May 2, 1994.
ADJOURNMENT
On motion, the meeting adjourned at 1:20 p.m.
G. Sosnoski
Manager of Corporate
Records/Assistant City Clerk