HomeMy WebLinkAboutFinance & Admin - 1994-12-12FAC\1994-12-12
DECEMBER 12, 1994
FINANCE & ADMINISTRATION COMMITTEE MINUTES
CITY OF KITCHENER
The Finance and Administration Committee met this date, commencing at 10:00 a.m., under the
Chairmanship of Councillor J. Ziegler with all Members of Council present.
Others present: Messrs. T. McKay, T. McCabe, J. Gazzola, R. Freeborn, R.W. Pritchard, T. Clancy, L.
Parkhouse, L. Proulx, D. Paterson, J. Panunto, C. Ford, G. Sosnoski and Mrs. J. Koppeser.
1. RENTAL AGREEMENT - MINISTERIAL ASSOCIATES (KITCHENER) INC.
The Committee was in receipt of a report from Mr. R.W. Pritchard dated December 2, 1994
concerning the outcome of a trial rental arrangement whereby wedding ceremonies were
performed in the Heritage Room of City Hall.
Mr. Pritchard advised that to date staff have not encountered problems and that the arrangement
is working satisfactorily.
Mr. J. Robertson appeared on behalf of Ministerial Associates (Kitchener) Inc. and indicated that
his organization is pleased with the present arrangement and would like to continue on the same
terms. In response to questions from Councillors Wagner and Galloway, Mr. Robertson advised
that approximately fifteen weddings a month are performed at City Hall and that these can be
performed for any religious or cultural group. It was also noted that a one year extension of the
current arrangement is proposed.
Councillor Galloway questioned whether the City's arrangement with Ministerial Associates
(Kitchener) Inc. is viewed as a monopoly and Mr. Robertson replied that some may construe it as
such. Mr. Pritchard clarified that the City's arrangement only deals with renting a room for the
ceremony. Councillor Jake Smola inquired whether the City has been approached by other similar
organizations in this regard and Mr. Pritchard replied that he was not aware of any overtures. Mr.
McKay further clarified that any exclusiveness attached to this arrangement relates to the use of
the Heritage Room only and only during the specified days and times.
On a motion by Councillor M. Yantzi,
It was resolved:
"That the Mayor and Clerk be authorized to execute a rental agreement
expiring December 31, 1995 with Ministerial Associates (Kitchener) Inc.
involving use of the Heritage Room or other suitable accommodation in City
Hall for the strict purpose of performing wedding ceremonies. Such
arrangement would be in effect 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
$1,000.00 payable as a security deposit upon agreement and $1,000.00
payable on or before each month in advance."
2. PENALTY CHARGES ON PROPERTY TAX ARREARS
Mr. Jorge Espinoza appeared and requested that Council waive penalty charges which he owes
relative to property tax arrears in 1992, 1993 and 1994. Mr. Espinoza advised that he has been
partially disabled since 1991 and wishes to pay the taxes and accumulated interest owing by
instalment, exclusive of any penalties. He asked for consideration of his particular circumstances,
noting that if he were required to pay the penalty it would have an adverse effect on the new
career he is now pursuing.
In response to a question from Councillor Ziegler, Mr. Espinoza advised that he is in arrears of
property taxes for approximately 2-1/2 years. Mr. Gazzola pointed out that in the first year a
penalty takes the form of interest and that both are one in the same. Mr. Espinoza also suggested
that the present rate of fifteen percent is too high, given the current bank lending rate.
2. PENALTY CHARGES ON PROPERTY TAX ARREARS CONT'D
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DECEMBER 127 1994
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CITY OF KITCHENER
Moved by Councillor T. Galloway
"That no action be taken on the request of Mr. Jorge Espinoza that penalty
charges applicable to 215 McGarry Drive as a result of property tax arrears in
the years 1992, 1993 and 1994 be waived."
Councillor Galloway pointed out that there are approximately 60,000 rate payers in the City and
that some form of penalty and interest charge is required to insure payment. Mr. Gazzola added
that the City does not compound interest owing and that yearly interest is added to the outstanding
amount until the debt is paid.
Councillor Lorentz asked whether Council has ever approved relief in similar circumstances. Mr.
Gazzola replied that there are no instances he is aware of, and were Council to look
sympathetically upon Mr. Espinoza's request they would have to award a grant. Councillor
Lorentz inquired as to the number of property owners currently in arrears and Mr. Gazzola
estimated the number at between five and ten thousand.
The previous motion by Councillor T. Galloway to take no action on the request of Mr. J. Espinoza
that the penalty owing on his property tax arrears be waived, was voted and CARRIED.
Councillor Lorentz expressed sympathy for Mr. Espinoza's circumstances, but noted that Council
cannot set such a precedent in this area. Mr. McKay also noted that rate payers should generally
pay by instalment as soon as possible as this can significantly reduce the amount of interest in
penalty owing.
3. BINGO LICENCE - K-W SERTOMA SPEEDSKATING CLUB
The Committee was in receipt of a report and recommendation from Mrs. J. Koppeser dated
December 6, 1994 concerning a penalty for not obtaining a bingo event licence.
Mrs. Koppeser explained that the organization inadvertently neglected to obtain a licence,
however notwithstanding this, Council must either assess a penalty or the Police will be required to
investigate. Councillor Lorentz asked whether a penalty could be construed as a warning with the
proviso that if the same error occurs again, the organization will be penalized for two events. Mrs.
Koppeser replied that the Province has indicated that a penalty must be assessed and it was they
that suggested the loss of one bingo event. Councillor Lorentz noted that he feels uncomfortable
with the recommendation on the basis that all of the workers are volunteers and the error was an
honest one with no benefit. Councillor Yantzi responded that the City needs to emphasize the
responsibility placed on bingo operators and that under the circumstances the penalty is
reasonable and is not onerous. In response to a further question from Councillor Weylie, Mrs.
Koppeser estimated the indirect cost of the error at approximately $250.00. Councillor Galloway
agreed with the comments made by Councillor Lorentz and suggested that if the organization
cannot be penalized through a verbal warning and an escalating penalty, that they be allowed the
latitude to
that if this
some sort
be sent to
choose the date on which an event licence will be forfeited. Mr. Parkhouse pointed out
is done the Province will turn the matter over to the Police, noting that in either event
of penalty will be assessed. He also expressed concern over the message which would
other organizations if Council were to waive or modify the penalty.
Moved by Councillor M. Yantzi
"That the K-W Sertoma Speedskating Club not be allowed to apply for one
bingo event in the month of January, 1995."
BINGO LICENCE - K-W SERTOMA SPEEDSKATING CLUB CONT'D
Councillor Lorentz indicated his opposition to the recommendation, noting that previous Council's
have frozen the operating grants to local charities and have indirectly placed greater pressure on
them to raise funds through events such as bingos. He also indicated that he is not happy with the
FINANCE & ADMINISTRATION COMMITTEE MINUTES
DECEMBER 127 1994
definition of penalty provided.
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CITY OF KITCHENER
Councillor Galloway put forward a motion to amend the main motion by allowing the K-W Sertoma
Speedskating Club to select which event in 1995 they would forfeit.
The Chair ruled that the motion would not be accepted as it was considered a new motion rather
than an amendment. This ruling was challenged by Councillor Galloway, and the challenge was
subsequently withdrawn.
Councillor Redman indicated that the penalty should be consistent with those handed out in the
past and asked how the previous Council had dealt with such circumstances. Mrs. Kopesser
replied that in her experience the organization has been required to withdraw from a bingo in the
next month.
Councillor Ziegler then called the motion by Councillor Galloway as a separate motion.
Moved by Councillor T. Galloway
"That the K-W Sertoma Speedskating Club not be allowed to apply for one
bingo event in 1995, and that this event be at the discretion of the Club."
Motion Lost
The main motion by Councillor M. Yantzi to prohibit the K-W Sertoma Speedskating Club from
applying for one bingo event in the month of January, 1995 was then voted on and CARRIED.
4. ANNUAL LICENCE FEE - LEASING OF PORTABLE SIGNS
The Committee was in receipt of a report from Mrs. J. Koppeser dated December 6, 1994
recommending pre-budget approval of a licence fee for businesses leasing portable signs.
In response to a question from Councillor Ziegler, Mrs. Koppeser advised that in addition to the
subject licence, permits are required to erect the signs which are leased and Mr. McCabe noted
that the issue of charging businesses who lease portable signs came about as a result of a review
of the Sign By-law and is intended to control the actions of sign leasing businesses. Mayor Christy
inquired whether other municipalities were charging fees in the $250.00 to $300.00 range, and
Mrs. Koppeser replied that she was not sure of the exact figures. Mayor Christy suggested that it
may be appropriate to charge a fee consistent with other municipalities in the Region and asked
that this information be obtained for consideration on or before the December 19, 1994 Council
meeting.
On a motion by Councillor M. Yantzi,
It was resolved:
"That effective January 1, 1995, a licence fee of $100.00 be approved in
1995 for persons who carry on the Business of Leasing Portable Signs."
5. APPOINTMENTS - BELMONT AREA IMPROVEMENT BOARD OF MANAGEMENT
The Committee was in receipt of a report and recommendation from Mr. L.F. Parkhouse dated
December 7, 1994 requesting approval of Board appointments.
5. APPOINTMENTS - BELMONT AREA IMPROVEMENT BOARD OF MANAGEMENT CONT'D
On a motion by Councillor C. Weylie,
It was resolved:
"That Kitchener City Council approve the appointment of Al Asmussen, Ben
Bridges, Carmen Caccioppoli, Herb Hoegler, Stuart Janzen, Patricia Weber,
FINANCE & ADMINISTRATION COMMITTEE MINUTES
DECEMBER 127 1994 - 100 - CITY OF KITCHENER
Robert Ziegler to the Belmont Improvement Area Board of Management for a
term of three (3) years, expiring November 30, 1997."
6. BENEFITS MARKETING REPORT
The Committee was in receipt of a covering letter from Mr. J. Panunto dated December 7, 1994
and the report from Wright/Mogg and Associates outlining the results of a marketing for group
insurance and medical plan benefits.
Mr. Panunto explained that marketing takes place every five years to ensure the currency of the
City's insurance and benefit plans, and that the premiums charged are reasonable. Councillor
Ziegler asked whether this could be done every three years and Mr. Panunto replied that it could,
noting that this may work to the City's disadvantage in terms of how the municipality is perceived
by the carriers. Councillor Weylie inquired whether there were any changes over the last
marketing, and Mr. Panunto replied that with the exception of the change in the carrier for
Accidental Death and Dismemberment coverage, there were none. Mr. Freeborn also advised
that coverage is included in all of the City's Collective Agreements, and that no changes can be
made without renegotiation. Councillor Wagner asked why a consultant is used for the marketing
rather than City staff. Mr. Panunto replied that the principle advantage is in terms of insurance
industry background, noting that at minimum it is expected the savings identified by the consultant
will cover their fee for service.
Moved by Councillor C. Weylie
"That the Marketing Report of Wright/Mogg and Associates dated October
17, 1994 be accepted and the recommendations therein take effect on
January 1, 1995, namely:
a)
Sun Life be retained as the insurance carrier for both Group Life and
Long Term Disability Plans;
b)
Blue Cross be retained as the carrier for both Extended Health Care
and Dental Plans;
c)
Signa Life be retained as the new carrier for the City's Accidental
Death and Dismemberment coverage;
d) funding arrangements with the City's carriers continue as
recommended in the report."
Councillor Ziegler indicated that he was generally pleased with the result, but expressed concern
over inclusion of out-of-Canada travel benefits. He noted that this seems inappropriate when the
majority of an employee's work is in the municipality and suggested that action be taken to
discontinue this coverage as a matter of principle. Councillor Weylie noted that the rate quoted for
this coverage seems very competitive in view of recent cutbacks by CHIP. Mr. Gazzola clarified
that the marketing report refers to out-of-country insurance when in fact the proper term is out-of-
province insurance. It was noted that City employees are often required to work in other provinces
on behalf of the municipality and cited a recent situation involving bus tenders.
The motion by Councillor C. Weylie to accept the marketing report by Wright/Mogg and
Associates and to implement the recommendations therein was voted on and CARRIED.
7. AUDIT OF MILEAGE CLAIMS BY CITY EMPLOYEES
Councillor Ziegler explained that consideration of this item was deferred at an earlier meeting and
that it will be listed as an item for consideration on the January 16, 1995 agenda. Mr. McKay
asked that copies of the audit and his covering report be circulated to new members of Council.
8. CITY OF KITCHENER BANKING SERVICES
The Committee was in receipt of a report and recommendation from Mr. J. Gazzola dated
December 8, 1994 recommending that the service be awarded to the Bank of Montreal.
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DECEMBER 127 1994
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CITY OF KITCHENER
Mr. Gazzola reviewed the report which was circulated this date and noted the following changes to
the Request for Proposal: comment on whether the institution is prepared to go beyond a three
year contract term; similar banking services to be provided to the Kitchener Public Library;
inclusion of a fully automated teller machine in the City Hall; and a request for a delay in pick up.
On a motion by Councillor G. Lorentz,
It was resolved:
"That the City of Kitchener's banking services be awarded to the Bank of
Montreal for the years 1995 through to December 31, 1997 as per the Bank
of Montreal Proposal dated November, 1994."
9. OTHER BUSINESS
Councillor Galloway noted the City Hall architect has recommended that the plaque presented to
former Mayor Cardillo on November 26, 1994 be located on the wooden wall as you enter the
Council Chamber. He requested the Committee's direction concerning installation. Mayor Christy
asked that this item be referred to the Friday Council roundtable discussion. Councillor Weylie
inquired whether the architect had been asked for a preferred location within the City Hall
generally or within the Council Chamber alone, and Councillor Galloway indicated he would
inquire.
Councillor Galloway also advised that it was his understanding that at minimum members of
Council would pay for their own meals at the upcoming Council and senior staff Christmas Dinner.
Mayor Christy replied that the Dinner is intended as an appreciation for Council's past as well as
future efforts and that any donations along the line of those referred to by Councillor Galloway
would be accepted. He stressed that the invitation was extended on a free of charge basis, and
offered the opinion that this is appropriate given the size of the Corporation.
10. ENERGY MANAGEMENT PROGRAM /AUTOMATED BUILDING CONTROL SYSTEM
Mr. Ford gave an audio-visual presentation highlighting elements of the Energy Management
Program and gave a demonstration of the automated building control system.
Councillor Lorentz indicated it was his understanding that at the time the cogeneration system was
discussed it was anticipated that the City could sell surplus power. Mr. Ford replied that this is not
the case, noting that K-W Hydro did not feel comfortable with the proposed feed into their grid. He
added that at present there is no surplus power, in part as a result of a decision to keep the
underground parking garage lit twenty-four hours a day. Mr. McKay stressed that the cost benefit
analysis was not based on selling electricity back into the grid, and that at the time the issue was
reviewed by the City Hall Steering Committee, K-W Hydro expressed concerns. Mayor Christy
noted that the Grand River Conservation Authority sells electricity into the grid, and also inquired
whether the penalty factor relative to using electricity in the City Hall was anticipated. Mr. Ford
replied that he was surprised by the factor, noting that electricity used by motors in the City Hall is
creating a higher demand than anticipated, and indicated he would be looking into this in 1995.
Mayor Christy agreed to obtain information for staff concerning the sale of electricity by the GRCA.
Mr. Proulx pointed out that the City generates what is referred to as "dirty power" and that it would
have to invest in substantial equipment to bring this electricity into phase.
11. NEXT MEETING
The next regularly scheduled meeting of the Finance and Administration Committee will be held on
Monday, January 16, 1995.
12. ADJOURNMENT
On motion, the meeting adjourned at 11:30 a.m.
FINANCE & ADMINISTRATION COMMITTEE MINUTES
DECEMBER 127 1994
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CITY OF KITCHENER
........... G. Sosnoski
........... Manager of Corporate
........... Records/Assistant City Clerk
