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HomeMy WebLinkAboutFinance & Admin - 1994-06-20FAC\1994-06-20 JUNE 20, 1994 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date, commencing at 12:20 p.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, J. Ziegler and M. Yantzi. Others present: Councillor G. Leadston, Messrs. T. McKay, R.W. Pritchard, R. Freeborn, J. Gazzola, T. McCabe, O. den Ouden, D. Snow, R. Barton, K. Tribby, J. Shivas, G. Sosnoski, Ms. L. MacDonald and Mrs. J. Koppeser. RELOCATION OF ADULT ENTERTAINMENT PARLOUR The Committee was in receipt of a written submission from Mr. Samuel Koblinsky dated June 13, 1994. Ms. Irene Zalagenus appeared on behalf of the owners of The Coronet, 1271 Victoria Street North, to request an amendment to Chapter 504 (Adult Entertainment Parlours) of the City's Municipal Code which limits the number of such parlours and their locations. Ms. Zalagenus expressed the opinion that the sites specified in the Code are in fact transferrable provided the City is in agreement. She noted that at the time the Adult Entertainment By-law was enacted it validated existing locations without consideration of whether these were ideal. Ms. Zalagenus advised that her clients would like to determine Council's position on the possible relocation of The Coronet which would coincide with a change of name and a reduction in the percentage of adult entertainment offered. Ms. Zalagenus pointed out that the present location is too close to residences and churches and is approximately one block from a public school which is used at night for minor sports activities. She advised that her clients do not feel they can continue to operate The Coronet at the present location and referred to two alternate locations in order of preference, namely, 400 King Street West (Duffers) and 667 King Street West (Club Abstract). She also noted that 607 King Street West was no longer being considered. Councillor Stortz asked whether Ms. Zalagenus' clients had approached the owners of either of the alternate locations. She replied that the owners of Duffers had approached her clients and that the Club Abstract owners had also indicated an interest. In response to a question from Mayor Cardillo, Ms. Zalagenus advised that The Coronet owners wished to move the business and that the mortgagee has offered a short term lease agreement to allow them to find an alternate location. Councillor Yantzi expressed concern over the degree of separation between residential properties and an adult entertainment parlour. Mr. McCabe reminded the Committee that the property adjacent to Duffers has been planned for residential use, and that one of the main planning objectives of the downtown is to encourage residential development. Mr. Harold Stevens appeared on behalf of the K-W Hospital Neighbourhood Association to express concern over the proposed relocation of The Coronet, noting that adult entertainment does not belong in a residential neighbourhood. He also referred to the neighbourhood's experience with Club Abstract, noting that the owners had honoured all of their obligations, including those relating to the outdoor patio, and the business has generally had a good relationship with the neighbourhood. Moved by Councillor B. Stortz - "That no action be taken concerning the request of The Coronet to transfer the Adult Entertainment Parlour at 1271 Victoria Street North to an alternate location in the City." Councillor Stortz cautioned that allowing the relocation of The Coronet would reopen the adult entertainment issue City-wide. Councillor Ziegler indicated he would not support the motion on the basis that further investigation of the proposal by The Coronet is required. Councillor Stortz commented that in effect The Coronet is asking the City to endorse a fourth adult entertainment parlour location. Ms. Zalagenus responded that her clients are asking the City to amend the By- law to allow an alternate location and not to approve an additional site. She reminded the FINANCE & ADMINISTRATION COMMITTEE MINUTES J U N E 20, 1994 - 57 - CITY OF KITCHENER RELOCATION OF ADULT ENTERTAINMENT PARLOUR (cont'd.) Committee the existing locations in the By-law are not necessarily the best locations for adult entertainment parlours, and offered to return with other alternate locations, in accordance with any criteria Council may choose to suggest. Councillor Lorentz offered the opinion that the identification of specific sites is integral to the purpose of the By-law, and on this basis he would support a motion of no action. Councillor Leadston inquired into the status of 1271 Victoria Street North in the event The Coronet was relocated. Mr. Shivas replied that the By-law can be amended and that the Victoria Street location could be deleted either through negotiation and the consent of the owner, or through public notice that Council intends to reconsider the locations in the By-law. Ms. Zalagenus offered the opinion that the holding company which will take possession of the Victoria Street property on July 31 would be amenable to removing it as an adult entertainment parlour location, and offered to approach them in this regard. Councillor Ziegler suggested that the present Adult Entertainment By-law was a reaction on the part of Council to a proposed new location in the downtown and was put in place with no analysis of the existing locations. He added that if the motion under consideration were defeated, he would be prepared to put forward a motion granting the right to an alternate location conditional upon the establishing of criteria, provision of citizen input, and the deletion of 1271 Victoria Street North. The motion by Councillor Stortz to take no action on the request of The Coronet to relocate its Adult Entertainment Parlour was voted on and CARRIED on a recorded vote. In Favour: Councillors C. Zehr, B. Stortz, T. Galloway, G. Lorentz, J. Smola, C. Weylie and M. Yantzi. Contra: Mayor D.V. Cardillo, Councillors J. Ziegler and M. Wagner. CITY PENALTY ON TAX ARREARS Mr. Murray Steben appeared concerning tax arrears for the property known municipally as 90 Rusholme Road, and in opposition to the current arrears penalty rate of 15% per year. He indicated that he supports the principle of a penalty on unpaid taxes, but that the current rate is too high. Mr. Steben also advised that in 1990 his taxes rose from $2,800.00 to $4,100.00 as a result of reassessment and that the majority of the missed payments were during the appeal process. He noted that he has been unemployed for some time and under the circumstances cannot afford to pay arrears at the current penalty rate, but is prepared to pay an amount which is fair. He asked that the penalty rate be reduced for his own benefit and for the benefit of others in similar circumstances. A brief discussion took place concerning various benchmarks which could be used relative to the arrears penalty. Mr. Steben noted that the rate used by the Federal government was recently increased from 6 to 8%, and suggested a floating rate, possibly reflecting the Federal Treasury Bill rate. Councillor Weylie questioned whether, given the recession, it would be possible to reduce the arrears penalty provided the outstanding amount was paid by a certain date. Councillor Ziegler pointed out that he had previously supported a floating rate similar to that used by either the Federal or Provincial governments. Notice of Motion - Councillor Ziegler gave notice that he would be introducing a Motion for Reconsideration at the June 27, 1994 Council meeting relative to By-law #94-2 enacted by Council on January 21, 1994 as it relates to the penalty rate for non-payment of municipal taxes. CITY PENALTY ON TAX ARREARS (cont'd.) Mr. Gazzola argued that most municipalities in Ontario are charging the same penalty rate as Kitchener. He noted that staff had previously prepared a report which could be recirculated and FINANCE & ADMINISTRATION COMMITTEE MINUTES J U N E 20, 1994 - 58 - CITY OF KITCHENER stressed that the current rate is intended as a penalty and not a borrowing charge. Councillor Ziegler inquired as to the history of interest rates charged by the City and Mr. Gazzola replied that the rate has been the same for the last ten years. Mr. Gazzola clarified that the rates used by the Federal and Provincial governments are compounded. Mr. Steben commented that in his opinion there is nothing wrong with the compounding rate and again asked the Committee to consider the principle of fairness and the impact of arrears penalties on the unemployed. On motion by Councillor B. Stortz - it was resolved: "That the consideration of the request of Mr. Murray Steben concerning relief from tax arrears owing and the issue of the penalty rate charged by the City on such arrears be referred to the June 27, 1994 Council meeting." CHARITABLE REFRESHMENT STAND LICENCE - HIRE A STUDENT DAY CARNIVAL Mr. Mark O'Connor appeared on behalf of the Canada Employment Centre for Students to request a Charitable Refreshment Stand Licence relative to the Hire A Student Day Carnival on June 27, 1994. Mr. O'Connor explained the purpose of the event and indicated he had delayed approaching the City concerning the licence until the booking of the Civic Square was confirmed. In response to a question from Councillor Stortz, Mr. O'Connor advised that William's Coffee Pub has been approached concerning the event and has given their endorsement and offer to assist. On motion by Mayor D.V. Cardillo - it was resolved: "That subject to the Canada Employment Centre for Students obtaining the necessary Licence, including Fire and Health approvals, permission be granted to allow the operation of a refreshment stand on June 27, 1994, in the Civic Square of Kitchener City Hall, and further, That a nominal fee of $1.00 be paid for the Refreshment Stand Licence." LICENCE REFUND - K AND B SPUDS Mr. Robert Nablo appeared as the co-owner of K and B Spuds, a chip wagon operating in the City. Mr. Nablo explained that he had purchased Hot Dog and Chip Wagon Licences for 1994 but will be moving his business out of the City on June 13, 1994. He asked for the Committee's endorsement of a $1076.00 refund in this regard. Mrs. Koppeser indicated that the current by-law contains no direction relative to refunds. By general consent, the Committee agreed to the refund requested by the Mr. Nablo and instructed staff to forward a cheque in the amount of $1,076.00. INTERNET IMPLEMENTATION PLAN The Committee was in receipt of a report from Mr. R. Freeborn dated June 15, 1994 which was previously requested at the March 21, 1994 meeting. Mr. Freeborn noted that Council had previously given approval, in principle, for the City's use of the Internet Computer Network, subject to endorsement of an Implementation Plan. Councillor Lorentz suggested that a member of Council should be involved in the first phase testing of the Internet, and expressed his interest in this regard. Mr. Freeborn inquired whether INTERNET IMPLEMENTATION PLAN (cont'd.) a Council hookup should be through the computers installed in the Councillors' homes or through a computer in the Mayor's Office. By general consent, the Committee agreed to the latter. On motion by Councillor C. Weylie - it was resolved: FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 20, 1994 - 59 - CITY OF KITCHENER "That Council endorse the Internet Implementation Plan as outlined in the report of Mr. R. Freeborn dated June 15, 1994." 6. COST ESTIMATES - HERITAGE DRIVE TRAFFIC CALMING The Committee was in receipt of estimates for Area A (Lorraine Avenue to the second leg of Oakhurst Cres.) which were referred to the Committee by Council on June 13, 1994. Mr. Snow advised that endorsement by the Public Works and Transportation Department had been given subject to an open house and the approval of related costs for Area A by the Finance and Administration Committee. Mr. McKay suggested that this project could be partially funded from Capital Contingency with the balance from the 1995 Capital Budget. He suggested that this item be referred to the 1995 budget process. On motion by Councillor M. Wagner - it was resolved: "That Council endorse, in principle, funding for the traffic calming measures proposed on Heritage Drive - Area A (Lorraine Avenue to the second leg of Oakhurst Cres.), with detailed financing to be addressed as part of the 1995 budget process." 7. POLICY AMENDMENT - MUNICIPAL ELECTION The Committee was in receipt of a report from Mr. R.W. Pritchard dated June 9, 1994 recommending an amendment to Policy I-180 concerning sale of the Preliminary List of Electors. On motion by Councillor M. Wagner - it was resolved: "That Clause #1 of Council Policy 1-180 be amended to reflect Section 28 (8) of the Municipal Elections Act, and further, That all other provisions of the Policy be applicable with respect to the 1994 Municipal Election." 8. BY-LAW - LEASING OF PORTABLE SIGNS The Committee was in receipt of a report and draft by-law from Ms. L. MacDonald dated June 14, 1994 concerning licensing and regulating of the leasing of portable signs. Councillor Ziegler inquired as to why the by-law in question is necessary and Mr. Tribby replied that it is a result of a request from the industry relative to unscrupulous operators. Mrs. Koppeser added that staff are suggesting a licensing fee of $250.00. Moved by Mayor D.V. Cardillo - "That Council enact the draft by-law with respect to the licensing, regulating and governing of persons who carry on the business of leasing portable signs appended to the report of Ms. L. MacDonald dated June 14, 1994." 8. BY-LAW - LEASING OF PORTABLE SIGNS (cont'd.) Councillor Ziegler suggested that any license fee should be levied on a break even basis. Mrs. Koppeser clarified that the fees are assessed relative to sign charges and inspection time which to date have not been costed in detail. Councillor Ziegler suggested that staff investigate a lower fee in the area of approximately $150.00. The previous motion by Mayor D.V. Cardillo relative to persons engaged in leasing portable signs was voted on and CARRIED. On motion by Councillor J. Ziegler - FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 20, 1994 - 60 - CITY OF KITCHENER 10. 10. 11. 12. it was resolved: "That the license fee imposed on individuals in the business of leasing portable signs be waived for the balance of 1994 and that Licensing staff consider a fee in 1995 not to exceed $150.00." FEE INCREASE - REVENUE DIVISION The Committee was in receipt of reports from Mr. J. Gazzola and Mr. O. den Ouden, dated June 15 and June 7, 1994 concerning proposed increases in service fees, as well as the institution of a new fee involving a Utility Certificate. In response to a question from Mayor Cardillo, Councillor Zehr noted that a Utility Certificate would advise homeowners and potential purchasers whether utilities had been paid at the point of sale. Mr. den Ouden added that a Utility Certificate is being recommended in addition to the standard Tax Certificate since the Revenue Division does not respond to telephone inquiries relative to utility arrears. Councillor Ziegler noted that the fees charged by Stratford and London were not included in the survey and Mr. Gazzola agreed to obtain this information prior to the June 27, 1994 Council meeting. He also noted that the rates recommended will result in a break even position and that in future these rates could be tied to the Cost of Living Index to avoid the necessity of approving increases every year. Councillor Ziegler responded that he could not support the increases proposed in a single year, but could support these if spread over a two year period. Mr. Gazzola pointed out that staff are recommending a July 1 implementation date and that a compromise would involve extending the implementation date to January 1, 1995. On motion by Mayor D.V. Cardillo - it was resolved: "That effective January 1, 1995 the Revenue Division be authorized to charge the following fees: Tax Certificate Duplicate Receipt Tax Statement Detailed Tax Statement Mortgage Company Request Tax Analysis Utility Certificate $15.00 $10.00 $10.00 $2O.OO $10.00 $15.00 $15.00 COLLECTION OF REALTY/BUSINESS TAXES The Committee was in receipt of reports from Mr. J. Gazzola and Mr. O. den Ouden, dated June 15 and June 7, 1994 requesting endorsement of the Revenue Division's collection policy. Mr. Gazzola pointed out that in the past Council has not allowed staff to pursue tax sales to collect arrears, a practice which is authorized under the Municipal Act. He suggested that the City needs to take action in this area. COLLECTION OF REALTY/BUSINESS TAXES (cont'd.) By general consent, it was agreed to defer consideration of the collection of arrears relative to business and realty taxes to the July 4, 1994 Finance and Administration Committee meeting. PATIO ENCROACHMENT AGREEMENT - DANDY'S RESTAURANT Ms. L. MacDonald advised that the problems involving the encroachment agreement have been resolved and discussions are not required at this time. BIDDER LIST APPLICATION The Committee received, as information, the report of Mr. L. Gordon dated June 15, 1994 FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 20, 1994 - 61 - CITY OF KITCHENER 13. 14. 15. concerning a revised and simplified application. OTHER BUSINESS It was noted that recently there have been significant delays in the starting times for Committee meetings and Councillor Lorentz suggested that the Public Works and Transportation Committee should meet at 8:30 a.m. rather than 9:00/9:30 a.m. Councillor Weylie offered to collect suggestions from members of Council concerning the timing of meetings on Committee days. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, July 4, 1994. ADJOURNMENT On motion, the meeting adjourned at 2:05 p.m. G. Sosnoski Manager of Corporate Records/Assistant City Clerk