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HomeMy WebLinkAboutFinance & Admin - 1995-04-03FAC\1995-04-03 APRIL 3, 1995 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date, commencing at 10:05 a.m., under the Chairmanship of Councillor J. Ziegler with the following Members present: Councillors T. Galloway, K. Redman, Jake Smola, John Smola, B. Vrbanovic, M. Wagner, C. Weylie and M. Yantzi. Mayor Richard D. Christy and Councillor G. Lorentz were in attendance for part of the meeting. Others present: Messrs. T. McKay, J. Gazzola, T. McCabe, J. Hancock, T. Clancy, R.W. Pritchard, L.F. Parkhouse, J. Shivas, D. Paterson, D. Snow, J. McBride, B. Kuntz, G. Sosnoski, Ms. V. Gibaut and Mrs. J. Koppeser. DELEGATION - CITY OF WINDHOEK, NAMIBIA Mr. T. McKay introduced and welcomed Mr. Vinson Hailulu, Town Clerk, City of Windhoek, Namibia, who along with his associates is visiting the City of Kitchener on an exchange program. EMPLOYMENT EQUITY OFFICER Mr. D. Paterson introduced Michael Kovatsh, recently hired as the City's Employment Equity Officer. FLOWER VENDORS - STREET HEART ROSES The Committee was in receipt of a report from Mrs. J. Koppeser dated March 27, 1995 concerning a request for permission to sell roses on sidewalks in the Downtown core. Mr. William Sovari appeared on behalf of Street Heart Roses and in support of the request and indicated that vendors would move about the Downtown rather than selling from a single location, but would not actively solicit sales. Mrs. Koppeser advised that the issue here involves sales from the sidewalk for which permission has not been given by Council in the past. Councillor Yantzi suggested that the sales be allowed for a trial period followed by a review, as experimentation is the only way to determine whether this is an appropriate activity in the Downtown. Ms. Nancy Brawley, Executive Director, Kitchener Downtown Business Association, suggested that the request be referred to the Downtown Action Committee for comment. Councillor Jake Smola put forward a motion to defer consideration of the request of Street Heart Roses pending receipt of comments from the Downtown Action Committee. Councillor Yantzi put forward an amending motion to approve the request of Street Heart Roses in principle so as to allow a trial period and subsequent review. Mayor Richard D. Christy entered the meeting at this time. Councillor Redman reminded the Committee that in the past there have been problems at the Frederick Street Mall involving flower vendors selling in an aggressive manner. Councillor John Smola indicated his support for a trial period and Councillor Vrbanovic advised that he is in favour of deferral so as to allow development of a plan for the Downtown before allowing any new initiatives. Councillor Galloway indicated that he would not support the request as it was his understanding that sales of this nature require the vendor to actively solicit. The amending motion by Councillor M. Yantzi to approve the request of Street Heart Roses in principle was voted on and Lost. 3. FLOWER VENDORS - STREET HEART ROSES - cont'd FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 3, 1995 - 59 - CITY OF KITCHENER On a motion by Councillor Jake Smola, It was resolved: "That consideration of the request of Mr. William Sovari (Street Heart Roses) for permission to sell flowers on sidewalks in the Downtown core be deferred to the May 1, 1995 Finance and Administration Committee meeting pending comment on the proposal by the Downtown Action Committee." FREE ON-STREET PARKING The Committee was in receipt of a report from Mr. D. Snow and Mr. J. McBride dated March 31, 1995 outlining various options for offering free parking in the Downtown area. Mr. Snow referred to the report and various implementation issues such as removing meters, installing signage and amending the appropriate by-laws. He asked that the Committee indicate a preferred option so that staff can work out an appropriate implementation plan and time frame. He suggested that most of the options could be implemented around May 1, 1995. In response to a question from Councillor Galloway, Mr. Snow clarified that meters north of Weber Street and south of Joseph Street have already been excluded and that the options presented relate only to the Downtown area. Mr. Snow also advised that a $100,000.00 reduction in parking fine revenue is also anticipated. Councillor Redman suggested that the existing parking arrangement must change and it is up to Council to determine the most effective configuration. She also referred to the need to shift the emphasis in the area of parking from an enterprise to a public service. Ms. Brawley commented that the Kitchener Downtown Business Association has discussed various options but has not come to grips with the best solution or how to deal with the abuses usually associated with free parking. She suggested that the best solution would be to provide free parking everywhere in the Downtown during the week and on Saturday. She noted that in receiving input from citizens, free parking was the item most frequently requested. In response to a question from Councillor Redman, Mr. McBride advised that he had spoken with the City of Waterloo concerning their free parking arrangement, and noted that Waterloo staff perceive this as unworkable due to improper use and the frustration involved in enforcement. Mr. McBride pointed out that Kitchener staff have similar concerns regarding the difficulty of enforcement and the likely abuse of free parking. Councillor Redman argued that in order to promote the Downtown, people must feel that parking is inexpensive and readily available. Councillor Galloway asked whether the Downtown Business Association had discussed the issue of enforcement with staff, and Ms. Brawley replied that they had discussed various deterrents such as double fines for use of spaces by Downtown employees as well as peer enforcement. Councillor Galloway suggested a central licence plate registry for Downtown employees and Ms. Brawley indicated the Association could undertake this; however, there would be difficulties where Downtown employees are also customers. Mr. Snow expressed reservations concerning this method of enforcement, and indicated that it was his impression the City could not legally enforce except by time limit. Councillor G. Lorentz entered the meeting at this time. Councillor Galloway indicated that he would not support any proposal which did not assure him that abuses of free parking will not occur. He also noted that parking is normally supplied by merchants at their own expense, and questioned whether Downtown merchants would be willing to contribute to the cost of any plan implemented by the City if Downtown retail improves over the next two to three years. Ms. Brawley pointed out that the cost of providing free parking on King Street and adjacent side streets is almost double the amount of the entire Downtown Business Association budget. She added that any cost sharing arrangement would mean a FREE ON-STREET PARKING - cont'd doubling of the Downtown levy and require consultation with the merchants. Councillor Ziegler suggested that the present meters could be left in place and parking provided at the rate of 25 FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 3, 1995 - 60 - CITY OF KITCHENER cents per hour. Ms. Brawley replied that this may work; however, all options should be investigated. Councillor Yantzi indicated his interest in some form of partnership with Downtown merchants, though not necessarily of a financial nature. Ms. Brawley responded that the merchants are willing to monitor the parking situation for abuses. Councillor Lorentz indicated that from his perspective free parking may not be the answer and referred to the difference between the desire and the need for this arrangement. Ms. Brawley suggested that free parking is very important, but is needed in combination with other parking arrangements. She suggested that free parking on Saturdays would be a good start. Mayor Christy noted that this is one of the most important issues Council will have to deal with and suggested that free parking is essential to the work of the Mayor's Task Force and to a sustainable Downtown core. He referred to free parking offered by other area municipalities and noted that they are receiving benefits in the form of taxes rather than enforcement revenue. Mayor Christy referred to the importance of a customer oriented image in the Downtown and asked Council to recognize the opportunity before them and acknowledge all related costs, including lost tax revenue of between $1 million and $1.5 million. He indicated that the Task Force survey suggests that people do visit the Downtown area but are annoyed by small matters such as parking. He suggested that the problem before Council will not go away and that any parking solution should be simple and understandable. Mayor Christy proposed two hours of free on-street parking in the Downtown, and suggested that other problems and issues could be dealt with as they arise. He offered the opinion that all the information necessary to make a decision is at hand, and emphasized the importance of sending the right message to shoppers and investors. Mayor Christy put forward a motion recommending that effective May 1, 1995 two hours of free on- street parking be implemented within the area bounded by Duke, Francis, Charles and Cedar Streets, with enforcement by the Parking Enterprise. Mayor Christy clarified that rates for parking garages and surface lots would remain as at present. In response to a question from Councillor Yantzi on the implications of the motion, Mr. Snow advised that this would result in approximately $500,000.00 in lost revenue plus additional costs relative to sign installation and other controls. Councillor Jake Smola inquired as to the annual cost of providing parking services and ask for clarification of whether the parking operation is a service or an enterprise. Mr. Gazzola responded that before Regional Government, parking operated as a true enterprise under a separate parking authority, and that with the advent of Regional Government parking came under the direct control of City Council. He pointed out that between 1992 and 1994 annual operating losses were in the range of $268,000.00 to $450,000.00, despite a large influx of enforcement revenue. He offered the opinion that at present parking is more of a service even though it is reported as an enterprise, and referred to the recent decision to allocate the $2 million cost of the City Hall parking garage to the enterprise. Councillor Wagner expressed agreement with the comments of Mayor Christy, noting that any lost revenue in this area should be viewed as an investment in the future of the Downtown. He suggested that Council has no other choice but to approve changes based on input by the Mayor's Task Force and the citizens of Kitchener. Councillor Galloway inquired as to the total meter revenue and expenses at all City locations and Mr. Gazzola advised that annual revenue totals approximately $1 million and expenses $600,000.00. A brief discussion took place concerning the projected revenue reductions in the Traffic and Parking report and any offsetting amounts due to cost avoidance. Mr. Snow clarified that the proposal before the Committee would impact meter upgrades but would have no impact on existing staff. Mr. McBride added that 99% of meter expenses relate to off-street lots and that free on-street parking would only eliminate the cost of maintenance of the on-street meters and future replacement costs. He suggested that any savings at this time are minimal. Mr. McKay advised that staff can review FREE ON-STREET PARKING - cont'd the costing and provide more refined figures before the April 10, 1995 Council meeting, though no major changes are anticipated. Councillor Yantzi asked that the motion on the floor be amended to indicate involvement of the Downtown merchants with respect to regulating and using any free parking spaces. Mayor Christy accepted the request of Councillor Yantzi as a friendly amendment. FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 3, 1995 - 61 - CITY OF KITCHENER Councillor Ziegler questioned whether the anticipated lost revenue as a result of free parking would be absorbed through the capital presently allocated to the Downtown or whether this would constitute an additional expense. Mayor Christy advised that he sees the $500,000.00 amount as an addition to the capital allocation, noting that this is a risk the City would run. He also stressed the need for a concerted retail strategy for the core to ensure maximum tax revenue. Councillor Lorentz indicated his cautious support for the initiative and asked that the motion be amended to allow for a review by staff and further consideration by the Committee within one year's time. Mayor Christy accepted the comments of Councillor Lorentz as a friendly amendment. Councillor Galloway indicated his support for the initiative and his expectation that staff and the Downtown Business Association would discuss methods for policing two hour free parking and report within a short period of time. Councillor Jake Smola questioned where the $500,000.00 loss in revenue would be reconciled and Mr. Gazzola indicated that he had no answer at this time, but was hopeful that other revenues and cost savings throughout the year may offset this amount in whole in or in part. Councillor Galloway asked that the main motion be amended to request a report on enforcement strategies relative to employee parking for the May 1, 1995 Finance and Administration Committee meeting. Mayor Christy accepted the comments of Councillor Galloway as a friendly amendment. On a motion by Mayor Richard D. Christy, It was resolved: "That effective May 1, 1995 two hours of free on-street parking be provided within the area bounded by Duke, Francis, Charles and Cedar Streets with enforcement by staff of the Parking Enterprise, and, That staff solicit the cooperation and comment of the Downtown merchants regarding a method of regulating and enforcing use of the above spaces by Downtown employees, and, That the above arrangement be revisited within one year's time and a staff report prepared for consideration by the Finance and Administration Committee, and further, That Traffic and Parking staff report to the May 1, 1995 Finance and Administration Committee meeting concerning an enforcement strategy relative to employee parking within the two hour free parking zone." On a motion by Mayor Richard D. Christy, It was resolved: "That Traffic and Parking staff remove all on-street parking meters and posts within the designated two hour free parking zone." 4. FREE ON-STREET PARKING - cont'd Mr. Snow added that the City's amending by-law relative to free parking would be put before Council on April 10, 1995 and that a formal resolution is required requesting that the Region amend their corresponding by-law. On a motion by Mayor Richard D. Christy, It was resolved: "That the City of Kitchener request the Regional Municipality of Waterloo to amend its by-law(s) regarding on-street parking and metering in accordance with the decision of City Council to provide two hours of free on-street parking within the area bounded by Duke, Francis, Charles and Cedar Streets." FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 3, 1995 - 62 - CITY OF KITCHENER Mr. Snow requested clarification of the precise boundaries of the free parking zone and Councillor Ziegler asked that this be done prior to the April 10, 1995 meeting. STANDARDS FOR SIDEWALK PATIOS The Committee was in receipt of a report from Ms. L. concerning existing sidewalk patio standards and any encroachment agreements. MacDonald dated March 28, 1995 required amendments to the 1995 Ms. MacDonald referred to her report and comments she has received concerning possible changes involving fencing material and flower boxes. She asked whether the Committee had any concerns or additions in 1995. Councillor Wagner suggested that the standards appear rigorous enough and that further changes may discourage participation. He also questioned whether it was necessary for Council to approve the patios on an annual basis or whether this could be left to Licensing staff given the existing standards. Ms. MacDonald advised that Council is approached in order to obtain direction for the Mayor and Clerk to sign each encroachment agreement, and that staff make every attempt to simplify the application and approval process. Councillor Yantzi indicated that the issue is an important one and suggested that some consideration should be given to extending a restaurant dress code to include adjacent patio areas, as well as requiring some standardized and attractive form of fencing (possibly wrought iron) around the patio area. Councillor Ziegler suggested that Councillor Yantzi come back with specific suggestions for 1996. Ms. MacDonald pointed out that fencing is required for patios affected by the Liquor Licensing Act, and suggested that the Downtown Action Committee may wish to comment on the present standards and the suggestions put forward by Councillor Yantzi. On a motion by Councillor M. Wagner, It was resolved: "That the Downtown Action Committee comment on the standards for sidewalk patios outlined in the report of Ms. L. MacDonald dated March 28, 1995, and any extension of these to include applying the dress code in a restaurant to adjacent patio areas, and requiring uniform and attractive fencing for all outdoor patios where an encroachment agreement with the City is required." EARLY RETIREMENT INCENTIVE PROGRAM Councillor J. Ziegler vacated the Chair for the duration of the discussion involving the above program and Councillor T. Galloway, as Vice Chairman, assumed the Chair. EARLY RETIREMENT INCENTIVE PROGRAM - cont'd In response to questions from Councillor Ziegler, Mr. Freeborn advised that there were retirements during the past several years outside of the Early Retirement Incentive Program and that all individuals received sick leave payouts. Councillor John Smola indicated that he wished to clarify that a sick leave payout is granted under the terms of the Sick Leave By-law and does not form part of the Early Retirement Incentive Program under discussion. Councillor Ziegler suggested that what he characterized as generous provisions are not available in the private sector and expressed his concern that the Incentive Program is now being viewed as an ongoing program and employee right. He proposed that the existing program end on December 31, 1995 and that a special committee comprised of members of Council review the program (including private sector comparators) before the end of January, 1996 with a subsequent report to the Finance and Administration Committee. He referred to a number of issues which could be addressed by the review including variable criteria for payment of retirement incentives FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 3, 1995 - 63 - CITY OF KITCHENER as opposed to years of service, and the role of a sick leave buy out. He indicated that only fine tuning of the Program may be required; however, since it is under the control of Council it should be reviewed and there should be one month when the Program is not available. Councillor Ziegler indicated his willingness to serve on the Review Committee and asked that Councillors Redman and Weylie consider participating. Councillor John Smola pointed out that the sick leave payout is not an incentive to retire since it is paid out to all employees who are eligible and who for any reason leave the Corporation. Councillor Yantzi acknowledged that employees benefit, but from a corporate standpoint the Incentive Program is a tool to achieve overall municipal goals relating to downsizing and rejuvenation. Councillor Redman suggested that the Committee referred to by Councillor Ziegler should be struck immediately and report by the end of 1995. Councillor Vrbanovic stated that he supports a review of the Program and its effectiveness as well as a comparison to private sector initiatives. He also noted that he prefers to amend the existing the Program if necessary rather than ending it, even for a short period of time. He further suggested that the Review Committee should report to Council in July or August of 1995. Councillor John Smola indicated his willingness to serve on the Committee and Councillor Lorentz suggested that Union bargaining units should also be involved in the Program review. Councillor Ziegler acknowledged that Union representatives should be allowed to attend, but argued that only members of Council should sit on the working committee on the basis that Council initially began the Program. Councillor Ziegler put forward a motion to strike a special committee to review and evaluate the terms of the current Early Retirement Incentive Program with a report by the end of September, 1995. Mr. McKay referred to earlier comments by Councillor John Smola suggesting that if there are any changes made to the Incentive Program, the current Program be extended for a further four month period. Councillor Ziegler accepted the earlier comment of Councillor John Smola as a friendly amendment. Councillor G. Lorentz asked that the main motion be amended so as to make City staff and Union Locals aware of the process and extend an opportunity to participate. Councillor Ziegler accepted the comments of Councillor Lorentz as a friendly amendment. EARLY RETIREMENT INCENTIVE PROGRAM - cont'd On a motion by Councillor J. Ziegler, It was resolved: "That a Special Committee of Council be struck to review and evaluate the City's present Early Retirement Incentive Program, with a report to the Finance and Administration Committee by the end of September 1995, and, That in the event subsequent changes are approved by Council, the present plan be continued for a further four months beyond the approval date, and further, That all City staff and Union locals be informed of the dates of the Review Committee meetings and be given an opportunity to make submissions." On a motion by Councillor M. Yantzi, It was resolved: FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 3, 1995 - 64 - CITY OF KITCHENER "That Councillors J. Ziegler, John Smola and C. Weylie serve on the Special Committee to review and evaluate the Early Retirement Incentive Program." Councillor J. Ziegler assumed the Chair. RETAIL EXHIBITION LICENCE - SOCIETY FOR CREATIVE ANACHRONISM FAIRE The Committee was in receipt of a report from Mrs. J. Koppeser dated March 27, 1995 concerning a requested waiver of licence fees and designation of the Faire as a Retail Exhibition. On a motion by Councillor B. Vrbanovic It was resolved: "That Council allow the Society for Creative Anachronism to apply for a Retail Exhibition Licence in 1995 at a fee of one dollar relative to their Medieval Faire to be held in Victoria Park on May 27, 1995." VERSA SERVICES CONTRACT - CITY HALL CAFETERIA The Committee was in receipt of a report and recommendation from Mr. R.W. Pritchard dated March 22, 1995 concerning an amendment to the existing contract. Councillor Ziegler questioned the likelihood of future losses in operating the cafeteria and Mr. Pritchard replied that he does not anticipate similar losses in future if the amending agreement is implemented May 1, 1995. He also indicated that he hoped to operate the facility at or near the 1995 budget allocation. In response to a question from Councillor Galloway, Mr. Pritchard advised that sales are higher in comparison to the cafeteria at 22 Frederick Street since a number of employees who formerly worked at outside locations have now transferred to the new City Hall. He also advised that in his estimation, the losses are attributable to a reduction in the number of luncheon meetings necessitated by the Social Contract, and the lease arrangement with Williams Coffee Pub where smoking is allowed. Smoking is not permitted in the City Hall cafeteria. In summary, he offered the opinion that Versa Services provides good quality service and competitive pricing. Councillor Galloway questioned the need for a full service cafeteria in the City Hall given other private sector alternatives and Mr. Pritchard replied outlining changes made to cafeteria services since the move to the new City Hall. He added that in his opinion there is a need for the present level of service and the only viable alternative would be to substitute vending machines. In response to a comment by Councillor Jake Smola, Mr. Pritchard clarified that the $10,000.00 VERSA SERVICES CONTRACT - CITY HALL CAFETERIA - cont'd annual amount referred to in his report is not an employee subsidy but is there to fund the services of a part-time employee responsible for catering in City Hall. He stressed that employee use of the cafeteria is not being subsidized, nor was this ever the intention. Mr. McKay added that prior to the use of a part-time employee, all catering was done by senior secretaries, which Management Committee felt was counter-productive and resulted in the loss of more than $10,000.00 worth of staff time. Mr. Pritchard also pointed out that in his experience, more members of the public are using the cafeteria and steps are being taken to encourage this further. Councillor Yantzi put forward the staff recommendation involving an amending agreement to the existing contract. Councillor Vrbanovic inquired whether staff had considered re-tendering the cafeteria contract and Mr. Pritchard replied that it had been considered and it was felt that the present arrangement is reasonable for a variety of reasons. Mr. Pritchard also clarified that the present contract can be terminated by either party on six months notice. In response to an earlier request by Councillor Jake Smola, Mayor Christy suggested that a duplicate of the original agreement be made available in the Mayor's office for viewing. FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 3, 1995 - 65 - CITY OF KITCHENER Councillor Galloway indicated that he would not support the motion relative to an amending agreement with Versa Services and suggested that the present arrangement should be re- evaluated and possibly combined with another existing, privately run operation. He suggested that the City is to some degree subsidizing the cafeteria. Councillor Galloway put forward a motion of deferral to allow further discussion. Councillor Ziegler argued that the motion is unnecessary on the basis that the contract allows for termination on six months notice. Councillor Galloway withdrew his previous deferral motion, but requested that the main motion be amended to allow for a review and evaluation of the current operation and other possible alternatives. Councillor Yantzi accepted the comment of Councillor Galloway as a friendly amendment. The main motion was then voted on, as amended. On a motion by Councillor M. Yantzi, It was resolved: "That the Mayor and Clerk be authorized to execute an amending agreement to the existing contract dated August 23, 1993 between Versa Services Limited and the City of Kitchener relative to the provision of food services at Kitchener City Hall in accordance with the details contained in letters dated February 9 and March 10, 1995 from Versa Services Limited, and further, That the current operation of the City Hall cafeteria be reviewed and evaluated relative to other possible arrangements." REAL PROPERTY DISPOSITION The Committee was in receipt of a report and draft by-law from Mr. J. Shivas, dated March 31, 1995 concerning the Sale of Real Property Procedural By-law. 10. REAL PROPERTY DISPOSTION - cont'd On a motion by Councillor T. Galloway, It was resolved: "That the City enact a Sale of Real Property Procedural By-law (draft dated March 30, 1995) pursuant to Section 193 of the Municipal Act, as amended by Bill 163." CORRECTION - MARCH 20, 1995 FINANCE AND ADMINISTRATION COMMITTEE MINUTES The Committee was in receipt of a memorandum from Mr. G. Sosnoski dated March 28, 1995 outlining the correction. On a motion by Councillor John Smola, It was resolved: "That page 53 of the March 20, 1995 Finance and Administration Committee Minutes be amended to insert the following as item #7 and renumber the balance of the items accordingly: AMENDMENT CHAPTER 25 (COUNCIL PROCEDURE) OF THE MUNICIPAL CODE The Committee was in receipt of a report and recommendation from Mr. R.W. FINANCE & ADMINISTRATION COMMITTEE MINUTES APRIL 3, 1995 - 66 - CITY OF KITCHENER 11. 12. 13. Pritchard dated March 15, 1995. On a motion by Councillor G. Lorentz, It was resolved: That the proposed by-law appended to the report of Mr. R.W. Pritchard dated March 15, 1995 to amend Chapter 25 (Council Procedure ) of the City's Municipal Code so as to implement the relevant sections of Bill 163, be approved and that said by-law be placed on the March 27, 1995 Council Agenda for 3 readings." OTHER BUSINESS On a motion by Councillor T. Galloway, It was resolved: "That Kitchener City Council hereby endorses the bid by Councillor Christina Weylie for re-election to the National Board of Directors of the Federation of Canadian Municipalities, and that upon election, agrees to pay any costs associated with her attendance at Board meetings." NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, May 1, 1995. ADJOURNMENT On motion, the meeting adjourned at 12:40 p.m. ........... G. Sosnoski ........... Manager of Corporate ........... Records/Assistant City Clerk