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HomeMy WebLinkAboutFinance & Admin - 1994-08-15FAC\1994-08-15 AUGUST 15, 1994 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date, commencing at 11:00 a.m., under the Chairmanship of Councillor C. Zehr with the following Members present: Mayor D.V. Cardillo, Councillors B. Stortz, T. Galloway, J. Smola, M. Wagner, C. Weylie, J. Ziegler and M. Yantzi. Others present: Messrs. R.W. Pritchard, R. Freeborn, T. McCabe, J. Gazzola, J. Witmer, S. Gyorffy, W. Beck, G. Sosnoski, Ms. D. Arnold and Mrs. J. Koppeser. LIABILITY CLAIM - 83F THALER AVENUE The Committee was in receipt of correspondence from Councillor C. Zehr and a report from Mr. B. Musselman dated August 11, 1994 concerning a sewer blockade at 83F Thaler Avenue. Mrs. Bozena Sikorski, was in attendance concerning the liability claim denied by the City's insurers, Adjusters Canada. Mrs. Sikorski explained the circumstances surrounding the sewer backup and the pumping of raw sewage into the basement of the unit she was renting. She noted that the personal property which was lost or damaged was being temporarily stored in the basement prior to her moving to new accommodation. In addition to the property loss, she also indicated that she had suffered both physical and emotional stress due to the nature of the flooding and the fact that extensive research material for a masters degree was lost. Mrs. Sikorski referred to a "sewer explosion" in the basement and the subsequent inflow of sewage which at one point reached knee level. She advised that it was her understanding that the clearing of the blockage was undertaken in the wrong sewer, and that when the proper line was identified the blockage was removed. She also referred to family illnesses which occurred subsequent to the accident and which in her opinion may be attributable to exposure to toxic material. In response to a question from Councillor Galloway, Mrs. Sikorski clarified that the $6,500 figure referred to in her March 24, 1994 letter is an estimate of replacement costs, excluding the research material. Councillor Zehr added that in response to inquiries from Mrs. Sikorski, her claim was reviewed twice by Adjusters Canada, who in both cases indicated there should be no payment under the policy, in part due to a deficient list of specific items lost or damaged. Mr. Musselman's report indicated that the sewer blockage was caused by plastic bags and women's lingerie and Councillor Ziegler suggested that responsibility for the blockage lies with the other tenants and the property owner, North Waterloo Housing, and not with the City. Councillor Zehr clarified that Mrs. Sikorski believes the problem relative to her unit is related to the actions taken by the City to remove the blockage. Mr. Gyorffy clarified that all of the infrastructure lines on the property are privately owned. He also noted that a previous blockade cleared by the City was in Mrs. Sikorski's unit. He acknowledged that the high pressure flushing technique used by staff could have caused a backup into Mrs. Sikorski's unit, but the equipment and method used were the best available under the circumstances. In response to a question from Councillor Yantzi, Mr. Gyorffy indicated that the property owner is technically responsible for the blockage and that City staff were working in the capacity of a contractor. Councillor Stortz asked whether Mrs. Sikorski had approached the property owner to request compensation. She replied that she had, but the owner maintained that though the City had used the right equipment, it had applied the method to the wrong sewer and should have called before proceeding to clear the blockade. Mayor Cardillo suggested that Mrs. Sikorski should prepare an itemized list of the lost property and that Mr. Gyorffy should act as a liaison between her and North Waterloo Housing. Councillor Ziegler agreed that the City should assist Mrs. Sikorski in making her representations, but should take no further action as regards her claim for compensation. On a motion by Council J. Ziegler, It was resolved: "That no action be taken on the request of Mrs. Bozena Sikorski for compensation for damages to her property as a result of a sewer backup at 83F Thaler Avenue, and further, FINANCE & ADMINISTRATION COMMITTEE MINUTES AUGUST 157 1994 - 73 - 1. LIABILITY CLAIM - 83F THALER AVENUE (cont'd) CITY OF KITCHENER That Public Works staff assist Mrs. Sikorski in her presentation to request compensation from the property owner, North Waterloo Housing." Mrs. Sikorski reminded the Committee that to date, the property owner has denied liability, and repeated her earlier comment that the accident occurred when City workers arrived to clear the blockade. Councillor Zehr advised that if Mrs. Sikorski wishes to appeal the recommendation or introduce new information, she may do so at the August 22, 1994 Council meeting. 2. KAPS PRESENTATION CEREMONY Ms. D. Blake presented recognition awards to Mr. Michael Born and Mr. Mark Nieman in appreciation for their KAPS suggestion involving the use and storage of coloured fuel which resulted in a saving of $14,000 in the first year of implementation. 3. AMENDMENT TO CHAPTER 530 (DOGS) OF THE MUNICIPAL CODE - DOG TAGS The Committee was in receipt of a report and recommendation from Ms. D. Arnold relative to an increase in the fee for the replacement of dog tags. Dr. G. Hess was in attendance on behalf of the Kitchener-Waterloo and North Waterloo Humane Society. On a motion by Councillor M. Wagner, It was resolved: "That the City Solicitor be directed to prepare a by-law amending Chapter 530 (Dogs) of the Municipal Code to reflect an increase in the fee for replacement dog tags from $0.25 cents to $2.00." 4. 1993 AUDITED FINANCIAL STATEMENT Mr. J. Gazzola gave a video presentation highlighting the consolidated balance sheet, the consolidated operations statement, trust funds and the performance of the municipal enterprises. He stressed three areas of concern, namely: the parking enterprise deficit; tax arrears; and unfinanced capital. Mr. T. Reidel, Ernst Young, appeared on behalf of the City's external auditors. In addressing tax arrears Mr. Gazzola noted that between 1988 and 1993 the per capita arrears, including the School Board and Regional shares have increased from $18.00 to $97.00. In response to a question from Councillor Yantzi, Mr. Gazzola indicated that the City is hopeful of recovering all of the taxes owing, and noted that realty taxes are for the most part secured, however, business taxes have no security and are more susceptible to loss. Mr. Reidel also indicated that there are concerns over any tax sale involving properties with environmental problems. Mr. Reidel drew the Committee's attention to the $13 million liability relative to City owned industrial lands. He cautioned that a significant number of years would likely pass before this liability could be removed and suggested that at some point, the City should consider debenturing or other forms of financing. In closing, Mr. Reidel stated that he agrees with the concerns expressed by Mr. Gazzola relative to the parking deficit, tax arrears and unfinanced capital. He stressed that on the positive side, City departments are operating very close to their budget amounts, and though reduced, reserve funds are reasonably healthy. He also cautioned against tampering with the reserve fund allocations. 4. REQUEST FOR OVER-EXPENDITURES - FACILITIES MANAGEMENT The Committee was in receipt of a report and recommendation from Mr. P. Summers dated August 8, 1994 requesting approval for repairs to the heating system at the Bramm Street Yards and repointing of stonework at the Transportation Centre. 4. REQUEST FOR OVER-EXPENDITURES - FACILITIES MANAGEMENT (cont'd) FINANCE & ADMINISTRATION COMMITTEE MINUTES AUGUST 157 1994 On a motion by Councillor B. Stortz, It was resolved: - 74 - CITY OF KITCHENER "That an over-expenditure in the amount of $25,300 be granted for repairs to the heating system at the Bramm Street Yards (Index Code 526158), and further, That an over-expenditure in the amount of $15,000 be granted for the repointing, in 1994, of masonry units at the Transportation Centre, and that an additional $10,000 be allocated in 1995 (Index Code 526152)." 5. PROPOSED ZERO PERCENT INCREASE IN TRANSIT FARES The Committee was in receipt of a joint report from Mr. W. Beck and Mr. J. Cicuttin dated August 10, 1994 providing ridership and revenue projections for 1994 and outlining staff concerns over the proposed zero percent increase. Mr. Beck offered the opinion that the present guideline is unrealistic and asked for permission to present alternatives reflecting an increase in 1994, though the exact figures are not known at this time. Councillor Wagner asked that Mr. Beck document any anticipated loss in ridership due to a potential fare increase. Mr. Beck replied that he would anticipate a minor drop in fares, though in his experience, customers are less sensitive to fare increases than to service decreases. On a motion by Councillor J. Ziegler, It was resolved: "That notwithstanding the previous budget guideline of a zero percent increase in transit user fees in 1995, staff be allowed to present various scenarios involving a potential increase, on the understanding that this in no way implies a decision to increase transit fees." 6. PARTNERSHIP PROGRAM PROTOCOL - KITCHENER/WlNDHOEK The Committee was in receipt of a report and recommendation from Mr. T. McKay dated July 21, 1994 requesting endorsement of the latest protocol. The Committee was also circulated this date with a copy of the protocol dated June/July, 1994. Councillor Ziegler inquired as to the cost of the program to the City, and Councillor Zehr replied that to the best of his knowledge all direct costs are paid by the Federation of Canadian Municipalities. He noted, however, that local hosting costs are paid by the municipality. Councillor Yantzi expressed the concern that based on the protocol, the exchange of information appears to be somewhat one-sided, and indicated his preference for a greater benefit to the City of Kitchener. Councillor Zehr offered the opinion that Kitchener's protocol is perhaps less one-sided than those involving other municipalities. On a motion by Councillor M. Yantzi, It was resolved: "That the Council of the City of Kitchener endorse the Partnership Program Protocol between the City and Windhoek, Namibia dated June/July, 1994." 7. ETHNO-CULTURAL ADVISORY COMMITTEE APPOINTMENTS Committee members were in receipt of the Selection Committee's appointment recommendation dated August 9, 1994. Councillor Galloway outlined the events leading to the recommendation and extended appreciation for the assistance offered by community members. He noted that the second part ETHNO-CULTURAL ADVISORY COMMITTEE APPOINTMENTS (cont'd) his of the motion involving an extension of the appointments into 1995 is to demonstrate the intent of the Selection Committee. He suggested that appointing members for a two month term would be inappropriate, and that extending these appointments would not prevent the City from advertising for additional Committee volunteers as part of the 1995 appointment process. FINANCE & ADMINISTRATION COMMITTEE MINUTES AUGUST 157 1994 - 75 - CITY OF KITCHENER On a motion by Councillor M. Wagner, It was resolved: "That the following individuals be appointed to the Ethno-Cultural Advisory Committee for a term expiring November 30, 1994: Susan Oxford; Mesut Koray Kuzucuoglu; Pritam Singh Grewal; Joseph Lovell; Ernie Ginsler; Claudine Dey; Rajiv Anjaria; Antonio Brito; Jane Musoke; Shariff Aidaruse, and further, That in order to insure appointments of reasonable duration, it is the intent of the Selection Committee that the new Council give favourable consideration to ratifying the above for the 1995 appointment year." 9. CITY HALL ROOM RENTALS - MINISTERIAL ASSOCIATES The Committee was in receipt of a report and recommendation from Mr. R.W. Pritchard dated July 28, 1994 concerning rental of selected areas in the City Hall for wedding ceremonies. Mayor Cardillo inquired as to the proposed upgrading of the lighting in the Heritage Room and Mr. Pritchard replied that estimates have been requested. Councillor Weylie asked whether the City would be responsible for music at the ceremonies and subsequent cleaning. Mr. Pritchard replied that the City normally provides custodial services with every room rental and that in this particular case, music is not required. He also noted that confetti and rice would not be allowed in the building. Councillor Wagner asked for a report on progress to date with the "heritage wall" project to be undertaken by local high school students. On a motion by Mayor D.V. Cardillo, It was resolved: "That for the remainder of 1994, the City enter into a trial rental arrangement with Ministerial Associates to permit them to rent the Heritage Room or other suitable accommodation in City Hall for the strict purpose of performing wedding ceremonies. Such arrangement would be on each Friday from 12:00 noon until 6:00 p.m. and on each Saturday from 10:00 a.m. until 6:00 p.m., at a rental of $1,000 payable as a security deposit upon agreement and $1,000 being payable on or before each month in advance, and further, That upon completion of this trial period, and subject to consent by both parties, the City enter into an annual agreement under the same terms and conditions applicable during the trial period." 10. LOCAL IMPROVEMENT INQUIRY FEE The Committee was in receipt of a report from Mr. R.W. Pritchard dated July 28, 1994 concerning the imposition of a fee for local improvement inquiry applications. Councillor Ziegler asked whether it would be possible to offer a discount if a tax certificate request was combined with a local improvement inquiry. He suggested that this would reduce the amount of correspondence required. Mr. Pritchard replied that the majority of local improvements do not relate to tax certificates. Councillor Ziegler acknowledged this, but suggested that there would be a benefit to the City if both were requested in a single letter. 10. LOCAL IMPROVEMENT INQUIRY FEE (cont'd) On a motion by Councillor J. Ziegler, It was resolved: "That effective October 1, 1994, the City of Kitchener impose a $20.00 fee on each local improvement inquiry application, and further, That staff investigate and report to the Finance and Administration Committee on the feasibility of offering a discount rate for applications involving both local improvement FINANCE & ADMINISTRATION COMMITTEE MINUTES AUGUST 157 1994 - 76 - CITY OF KITCHENER inquiries and tax certificates, provided both are requested in a single letter." 11. AMENDMENT TO CHAPTER 500 (GENERAL PROVISIONS - ISSUE OF LICENCES) OF THE MUNICIPAL CODE 12. 13. 14. 14. 15. The Committee was in receipt of a report and draft by-law from Ms. D. Arnold dated August 9, 1994 concerning pro-rated licence fees charged and refunded. On a motion by Councillor M. Wagner, It was resolved: "That Council enact the draft by-law appended to the report of Ms. D. Arnold dated August 9, 1994 which would amend Chapter 500 (General Provisions - Issue of Licences) of the Municipal Code relative to the pro-rated refunding of licence fees." STREET VENDOR VACANCY - HOT DOG CART The Committee was in receipt of a report from Mrs. J. Koppeser dated August 10, 1994 requesting the Committee's direction on the filling of a vacancy and the associated licensing fee for the Otto Street/Frederick Street location. Councillor Zehr asked whether licensing staff had received any inquiries and Mrs. Koppeser replied that she had received three, though none of these were willing to pay the yearly fee in the by-law. Councillor Stortz suggested that it is unusual for a vendor not to stay at a location for a full year and that action in this area may not be required. On a motion by Councillor B. Stortz, It was resolved: "That no action be taken for the remainder of the 1994 licensing year relative to filling a vacancy involving the hot dog cart at the corner of Otto and Frederick Streets." RESIDENTIAL PERMIT FEE STRUCTURE The Committee was previously circulated with Planning and Development Department Report PD 94/78 dated August 10, 1994 outlining the relationship between valuation of residential versus contractor-built projects and recommending that no change be made to the current by-law. On a motion by Councillor J. Ziegler, It was resolved: "That no action be taken to change the current system of assessing construction value and assigning the applicable permit fee as outlined in Building By-law 94-31 ." COURT DECISION - CITY NOISE BY-LAW Ms. D. Arnold summarized the circumstances surrounding a June 15, 1994 court decision in which a defendant charged under the Noise By-law relative to barking dogs was acquitted. She advised that an Appeal Notice has been filed and that a Hearing will be held on September 27, 1994. COURT DECISION - CITY NOISE BY-LAW (cont'd) She offered the opinion that it is important to appeal based on the interpretation applied by the Justice of the Peace. HAWKERS AND PEDLARS - FLOWERS Councillor Stortz referred to individuals aggressively selling flowers at the Frederick Street plaza this past weekend who had indicated they were representing a student employment organization raising funds for handicapped children. He noted that he had attempted to contact the organization at the number provided, but without success. He suggested that these vendors are in the City without benefit of a Hawkers and Pedlars Licence and questioned what would be the City's normal response. He also suggested that staff contact the student employment organization and indicate that sales of this type constitute unfair business practice. FINANCE & ADMINISTRATION COMMITTEE MINUTES AUGUST 157 1994 - 77 - CITY OF KITCHENER Mrs. Koppeser replied that the organization in question is called Student Employment Inc. and recruits young people from out-of-town. She advised that vendors can be charged, but in order to do this, staff would need the personal information of the individual vendors. Councillor Stortz asked whether it was possible to verify the percentage of the proceeds going to a charity, and Mrs. Koppeser responded that she was not sure how this could be determined. 16. SOCIAL CONTRACT UPDATE Mr. Gazzola gave a video presentation outlining the impact to date of the Social Contract and other related Provincial initiatives which presently total approximately $3,360,000. Mr. Gazzola noted that the City has responded with reductions totalling $6,165,000 and reviewed how this was achieved by selective employment groups. He noted that approximately $3.3 million of this amount was attained through early retirement and job vacancies involving 19 staff positions. Mr. Gazzola pointed out that in 1996, the City will have an annual shortfall of $2,055,000 less $1,774,000 in sustainable reductions, resulting in a $281,000 problem in 1996. He also pointed out that the total combined impact of Provincial downloading over the past 1.5 years totals approximately $4 million, which is equal to a 7 percent increase in the mill rate. 17. GOODS AND SERVICES TAX (G.S.T.) The Committee was in receipt of an information report from Mr. J. Gazzola dated August 10, 1994 concerning the possible replacement of the G.S.T. with a Value Added Tax (V.A.T.). By general consent, it was agreed that Mr. Gazzola would prepare a draft resolution for consideration by Council on August 22, 1994 and subsequent circulation to the Association of Municipalities of Ontario, the Federation of Canadian Municipalities, selected Ontario municipalities and local members of the Legislature and Parliament. 18. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, September 19, 1994. 19. ADJOURNMENT On motion, the meeting adjourned at 1:00 p.m. G. Sosnoski Manager of Corporate Records/Assistant City Clerk FINANCE & ADMINISTRATION COMMITTEE MINUTES AUGUST 157 1994 - 78 - CITY OF KITCHENER