HomeMy WebLinkAboutFinance & Admin - 1995-11-20FAC\1995-11-20
NOVEMBER 20, 1995
FINANCE & ADMINISTRATION COMMITTEE MINUTES
CITY OF KITCHENER
The Finance and Administration Committee met this date, commencing at 10:15 a.m., under the
Chairmanship of Councillor J. Ziegler with the following members present: Mayor R. Christy, Councillors
T. Galloway, G. Lorentz, K. Redman, Jake Smola, John Smola, B. Vrbanovic, M. Wagner, C. Weylie and
M. Yantzi.
Other present:
Mrs. J. Koppeser, Ms. F. Currier, Ms. V. Gibaut, Messrs. T. KcKay, J. Gazzola, R.W.
Pritchard, T. Clancy, J.Shivas, J. Witmer, B. Gulliver, D. Snow, O. den Ouden, L.F.
Parkhouse, R. Arnot, J. McBride, L. Gordon, D. Milne, D. Blane and G. sosnoski
1. FREE SATURDAY PARKING
The Committee was in receipt of a report from J. McBridge dated November 14, 1995 concerning
a request from the Kitchener downtown Business Association.
Ms. N. Brawley appeared on behalf of the Kitchener downtown Business Association (KDBA) and
advised of the visible improvements in the Downtown and the favourable comments she has
received concerning the implementation of free on-street parking. She noted that this seems to
encourage people to come Downtown and suggested that this initiative should be extended. Ms.
Brawley acknowledged that suitable parking alone would not improve the viability of the
Downtown, but stressed that it is an important contributor. She pointed out that Kitchener is losing
commercial assessment to other cities; however, during the last 12 month period there have been
59 new businesses opened in the downtown, 38 businesses have been lost an additional 5 are in
the process of opening. She suggested that this illustrates both the opportunities and possibilities
in the Downtown. Ms. Brawley then introduced representatives of several business interests in the
Downtown and read a testimonial letter from a Downtown retailer requesting consideration of free
Saturday parking.
Ms. Sheila Feidler-Schneider appeared on behalf of Feidler's Meats and Delicatessen and noted
that she had lost customers in part due to the perception of the Downtown. She pointed out that
consumers compare the Downtown to other shopping areas and are pleased to see free parking,
noting that in her opinion free parking will boost sales.
Mr. David Motta, National Trust, advised that his clients prefer free parking, and in some cases
patronize National Trust's Waterloo office for this reason. He pointed out that parking Kitchener
remains a concern of his Kitchener clients'.
Ms. Denise Strong, Walper Terrace Hotel, appeared and suggested that two hour free parking has
helped business in the downtown and thanked Council for this initiative. She referred to free
Saturday parking in neighbouring cities and the need for Kitchener to compete in this regard. She
noted that the objective is to lengthen the stay of shoppers in the Downtown through making
movement to various locations inexpensive. In addition to free parking, she also noted that the
return of two-way traffic to Charles Street and other related initiatives would also make the
Downtown more user friendly.
Councillor Lorentz indicated his disappointment over the presentation by the KDBA this date. He
pointed out that the City has already foregone approximately $500,000.00 in parking revenue and
questioned what additional concessions the KDBA would be requesting in future. Councillor
Lorentz pointed out that the City is trying to abide by the recommendations of the Mayor's
Downtown Task Force and asked what the KDBA is prepared to contribute to this initiative.
Councillor Lorentz expressed concern that further concessions to the Downtown will have an
impact on the mill rate. Ms. Brawley responded that free Saturday parking has always been part of
previous presentations by the KDBA, and noted that in 1994 total revenue for all on-street parking
meters in the City total only $273,000.00. Ms. Brawley added that the total budget for the KDBA is
just over $300,000.00 and that each year it has dropped substantially. She stated that the
Association is stretched to the limit and would like to contribute; however, the money is not
available.
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FREE SATURDAY PARKING (CONT'D)
Councillor Redman noted that free Saturday parking is a logical extension of the Task Force report
and indicated her support. She suggested that in the interests of simnplifying the arrangement, it
may be better to offer two hour free parking everywhere or alternately free parking at all times in
certain specified areas. Councillor Redman asked wheter the KDBA would be satisfied with free
Saturday parking over the Christmas period alone, and Ms. Brawley replied that though the
Association preferred to see this throughout the year, they would support this arrangement during
the Christmas season alone. Councillor Galloway noted that in light of the recent Provincial
reassessment, there appears to be a trend in the Downtown toward lower taxes over the next three
years. He referred to the need to balance expenditure of public funds to assis the Downtown with
contributions from business operators; however, it may be unreasonable to expect assistance from
the KDBA given the decrease in assessment in the Downtown. Councillor Galloway raised the
issue of enforcement of the two hour free parking arrangement and his concern that this is being
abused by Downtown employees. He noted that Council had previously asked for development of
an enforcement process and questioned when this would be available. Mr. Snow responded that
a report will be available shortly, and after analyzing the statistics gathered, staff will meet with the
KDBA to discuss the abuse issue. Mr. Snow reminded the Committee that the City needs proof of
an infraction in order to enforce the parking restriction.
Councillor Wagner suggested that the City should assess the success of initiatives to date in the
Downtown before extending free parking. He advised that he would also like assurance that the
business community is doing their part to revitalize the Downtown. He expressed interest in
pursuing an arrangement whereby store operators would validate tickets for Downtown parking as
a result of store purchases. As an alternative, he also suggested consideration of free transit
services on Saturday. Ms. Brawley responded that most businesses in the Downtown are barely
profitable, and that initiatives such as facade improvement are being pursued where possible;
however, customers are needed in the Downtown to increase profitability. She stressed that
people in Kitchener do not want to pay for parking at any time. Councillor Vrbanovic expressed
concern that it does not appear a final and comprehensive parking plan for the Downtown has
been developed, and he suggested that this be undertaken as opposed to ad hoc adjustments
over time. He also pointed out that like the KDBA, the City has experienced budget constraints
and is awaiting notice later this month of further Provincial cutbacks. Ms. Brawley responded that
the City has started an initiative to revitalize the Downtown and should continue with this
investment. Mr. D. Motta pointed out that the cost of Saturday parking is approximately
$38,000.00, noting that there has been a net increase in tax paying businesses in the Downtown
since December of last year.
Councillor Jake Smola expressed disbelief that a charge of $1.00 for three hours of parking is a
barrier to visiting the Downtown and indicated his surprise that the KDBA is once more before
Council asking for further parking concessions. In response to his question concerning the impact
on the City of providing free parking during the Christmas season, Mr. Snow replied that there may
be implications for full-time cashier positions. Councillor Weylie referred to Caluse #12 of the
Task Force report which directs that an investigation take place into free parking in the Downtown,
and asked when Council could expect this report. Mr. Snow replied that staff have not worked on
the report since the issue changed due to the removal of on-street parking meters. He noted that
no proposals were being planned until such time as staff have assessed the impact of the meter
removal.
Councillor K. Redman put forward a motion to provide free Saturday parking for the period
December 2, 1995 to January 6, 1996 and directing staff to meet with the KDBA to develop a long
term strategic parking plan.
In response to further questions from Councillor Jake Smola, Mr. McBride advised that he would
attempt to rearrange the schedule for full-time parking casheirs over the Christmas season;
however, hours may have to be reduced. Councillor Jake Smola advised that he would not
support the motion on the basis that it will ikely lead to further requests for an extension of free
parking year round. He suggested that the City should monitor initiatives taken to date before
taking any further action.
FREE SATURDAY PARKING (CONT'D)
Councillor Redman accepted, as a friendly amendment, a suggestioin from Councillor Yantzi that
the issue of ongoing free parking on Saturdays be referred to Budget deliverations. Councillor
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Yantzi stressed the need for a strategic parking plan and an emphasis on parking as a service
rather than an enterprise. He also noted that for decades the Downtown has been subsidizing
development in the suburbs through its property assessment and that only relatively recently has
this trend reversed. Councillor John Smola also pointed out that at other levels of government,
small business is indicating it does not wish to receive government subsidy. Councillor Galloway
advised that he would support the initiative; however, this would be the last time. He also referred
to Clause #13 of the Task Force Report which addresses the need for an educational program to
address abuses of free parking. He stressed the need for a long term and systematic approach to
this problem. Councillor wagner indicated he was prepared to support the motion provided there
is discussion of a validation system.
Mayor Christy indicated he would support eh motion, as the testimonials heard this date show a
willingness to invest in the downtown. He reminded Committee members of the $3-8 million in lost
assessment over the past three years and referred to the net increase in businesses opening in
the Downtown. He suggested that Clause #12 of the Task Force Report which deals with
Downtown parking should be looked at one stage at a time in light of the improving business
situation. Councillor Lorentz pointed out that new businesses opening in the core have come to
the Downtown under current circumstances and with no promise of free Saturday parking. He
advised that he cannot support the; however, will support a courtesy warning tag.
The following motion was then voted on.
On a motion by Councillor K. Redman -
It was resolved:
"That Council accede to the request of the Kitchener Downtown Business Association and
provide free Downtown parking all day Saturday (in all City owned parking locations) for the
inclusive period of December 2, 1995 - January 6, 1996, and further,
That Traffic and Parking Division staff work with the KDBA to develop a long term strategic
parking plan, including the issue of Saturday free parking, and submit a report to Council
for consideration on Budget Day, February 2, 1996."
Councillor John Smola asked that he be recorded as opposed to the motion to provide free
Saturday parking. Councillor Wagner asked that there also be discussion of parking validations
by businesses at the same time the overall Downtown parking strategy is considered.
DAMAGE CLAIM - 69 DALEGROVE DRIVE
The Committee was in receipt of a delegation form and a letter from Adjustors Canada dated
October 30, 1995 outlining a claim resulting from water damage to 69 Dalegrove Drive which the
owner alleged was the result of a watermain break.
Councillor Weylie introduced the matter and suggested that Ms. Moores has been treated poorly
by the City's insurer in view of the time elapsed since she filed her claim.
Ms. Moores outlined the relevant circumstances and advised that she is requesting payment to her
insurer in the amount of $566.70. She referred to the letter she circulated this date and explained
that as a result of her insurance covering the damage, the deductible will increase from $100.00 to
$500.00, which she feels is unfair under the circumstances.
Councillor weylie put forward a motion that the City award Ms. Moores a grant without prejudice or
precedent in the amount of $566.70 to be paid to her insurer.
DAMAGE CLAIM - 69 DALEGROVE DRIVE (CONT'D)
Councillor Vrbanovic noted that Ms. Moores' insurer has already paid the claim, and suggested
that a dangerous precedent would be set if the grant were approved.
The previous motion by Councillor Weylie to award the amount requested by Ms. Moores was
voted on and Lost.
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On a motion by Councillor Jake Smola -
It was resolved:
"That no action be taken on the request of Vicky Moores that the City pay to her insurance
company the sum of $566.70 for repairs resulting from water damage to her residence at 69
Dalegrove Drive."
Councillor Weylie questioned the current process for damage claims and referred to numerous
instances when she and others have attempted to contact a particular employee of Adjustors
Canada who has not returned the calls. Mr. Gazzola pointed out that the situation in this case is
smoewhat unique, since the City's insurers believed Ms. Moores' insurance company was looking
after the claim. Mr. Gazzola also advised that Finance staff are planning a presentation on City
insurance at the next meeting.
3. REQUESTS FOR PRE-BUDGET APPROVAL - 1996 FEES
The Committee was in receipt reports from the Planning and Development Department and the
Clerk's Division concerning various fees.
Councillor G. Lorentz put forward a motion to adopt all the fees as recommended by staff.
Councillor Jake Smola inquired as to the feasibility of a security deposit for grading certificates
involving new residential properties. Mr. Witmer replied that this issue has been discussed and
that staff are trying to determine the number of grading complaints. If this proves to be a problem,
the Home Builders Assocation has acknowledged that such a deposit could be implemented. Mr.
McCabe added that staff are also considering such a charge in connection with subdivision
agreements. Councillor Jake Smola inquired as to the amount of additional revenue which would
be generated if the Planning/Building fees are implemented as recommended and Ms. Currier
replied that this would be approximately $110,000.00. Councillor Jake Smola asked whether the
Department had reduced its Operating Budget to reflect this increased revenue and Mr. McCabe
replied that some of the revenue projected in 1995 has not reached the target level and as a result
the $110,000.00 amount referred to may be more than the actual revenue which will be collected
in 1996. Councillor Galloway noted that this is a complete change in the method of calculation as
it relates to private homeowners and suggested it will make a determination of the fee owing more
difficult. In this regard, Mr. Witmer circulated n additional information report this date.
Councillor Weylie inquired as to the impact of Bill 163 on anticipated Department costs in 1996
and Mr. McCabe replied that baased on his cursory reading of the proposed legislation, there
would appear to be a decrease in the cost of advertising plans of subdivision. Councillor Jake
Smola questioned whether the proposed development charges would constitute a barrier to
locating businesses in the City or the Region. Mr. McCabe replied that last Thursday the Province
considered amendments to the Development Charge Act which would have the effect of
preventing amendments or new by-laws without special ministerial approval, anticipated changes
may also include a freeze on future increases in development charges. Notwithstanding this
legislation, Mr. McCabe advised that the City is within a month of being able to project the costs
under the revised system. In response to a further question from Councillor Jake smola, Ms.
Currier advised that the overall fee changes proposed by the Planning and Development
Department amount to a 7.94% increase. Councillor Jake Smola reminded staff that Council had
directed a 5% increase as part of the Pro Forma Budget. Mr. McCabe acknowledged this
direction, but added that staff are attempting to catch up with the growing cost of advertising and
now have more accurate figures which reflect these increases.
REQUESTS FOR PRE-BUDGET APPROVAL - 1996 FEES (CONT'D)
On a motion by Councillor G. Lorentz -
It was resolved:
"That the City continue the practice of charging for Council and Standing Committee
minutes as initially directed in the Council resolution of October 11, 1994, and further,
That in accordance with direction given by Council concerning preparation of the 1996
Budget, the amounts listed in the schedule of fees for minutes be increased by 5% effective
January 1, 1996."
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On a motion by Councillor G. Lorentz -
It was resolved:
"That effective January 1, 1996, the current $20.00 fee for the issuance of Birth
Acknowledgement letters by the Kitchener division Registrar (City Clerk) be increased to
$21.00, and further,
That effective January 1, 1996 the current $20.00 fee for letters in response to inquiries
respecting assessment for local improvements and other charges be increased to $21.00."
Mr. Sosnoski advised that the Planning and Development Department had requested a change to
the new fee for Letters of Compliance (verbal response) to reflect "$65.00 or $110.00" rather than
$65.00 or $105.00."
Moved by Councillor G. Lorentz -
"That effective January 1, 1996, the fees for the Planning/Building Applications listed in
Planning and Development Department report PD 95/117 (November 15, 1995) be
increased as indicated, save and accept the following change; namely, that the 1996 fee for
Letters of Compliance be $65.00 or $110.00 for verbal responses within 15 days of the
City's receipt of inquiry, and further,
That Chapter 380 (Tariff of Fees - Planning Matters) of the Municipal Code be amended
accordingly, where applicable."
Councillor Jake Smola indicated that he would not support the Planning fee increases at this time
as he feels they are a disincentive to development, and referred to development charges in one
instance totally $60,000.00. Mr. McKay replied that the Business and Industrial Advisory
Committee recently looked at this issue and found that Kitchener and the Region are now below
the average for the Province in this regard. He also advised that there have been no complaints
for new projects.
The previous motion by Councillor G. Lorentz to adopt the staff recommendation for 1996
Planning/Building Applications was voted on and Carried, as amended.
4. MONTE CARLO EVENT - OPTIMIST CLUB OF LAKESHORE VILLAGE
The Committee was in receipt of a report from J. Koppeser dated November 15, 1995
recommending no action on the request, on the basis that it is the City's policy that only
organizations with a physical presence in Kitchener be approved for lotteries.
4. MONTE CARLO EVENT - OPTIMIST CLUB OF LAKESHORE VILLAGE (CONT'D)
Councillor G. Lorentz put forward a motion to grant the request, along with direction to revisit the
current policy as soon as possible.
Councillor Vrbanovic advised that he would not support the motion, though he would agree to a
review of the policy by the parties initially involved. He noted that approval would set a precedent
which would open the door to other outside sharities, and added that Kitchener has a responsibility
to ensure that the needs of locally based charities are addressed. Councillor Galloway indicated
that with reluctance, he would not be able to support the motion, on the basis that he believes
private gambling operators are not developing sites in Waterloo, due to the availability of already
developed sites in Kitchener. Councillor Lorentz argued that charitable organizations whould not
be denied access to Kitchener facilities solely on the basis that their operation is located in
Waterloo, especially if such organizations are distributing proceeds to charities which are
themselves based in Kitchener, as is the case with the Optimist Club of Lakeshore Village. In
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response to a question from Mayor Christy, Mr. Parkhouse advised that all municipalities in the
Region have adopted the same policy, and to the best of his knowledge it has been adhered to by
all parties. He further added that staff would support a review of the existing policy, by all of the
original parties.
Councillor redman rose on a point of personal privilege and objected to comments concerning her
position on this issue. She clarified that she will not support the motion on the basis of the existing
policy, and that this is not a reflection on the merits of the organization making application. She
also advised that she supports a review of the current policy.
The previous motion of Councillor G. Lorentz to grant the request for a Monte Carlo Event and
initiate a policy review was voted on and Lost.
On a motion by Councillor B. Vrbanovic -
It was resolved:
"That no action be taken on the request of the Optimist Club of Lakeshore Village, Parkdale
P.O. 28071, Waterloo, for permission to hold a Monte Carlo Event on December 21, 22,
and 23, 1995 at the Turf Club, 4278 King Street East, Kitchener, and further,
That staff initiate a review of the current ppolicy that only organizations with a physical
presence in the City of Kitchener be approved for lotteries, to include representatives of
those agencies involved in establishing the current policy, and submit a report fo
consideration by the Finance and Administration Committee."
Councillor Lorentz asked that staff inform the applicant and the Turf Club of the Committee
recommendation and the date it will go before City Council.
The Finance and Administration Committee then recessed and reconvened at 1:30 p.m. to deal
with the remainder of its agenda, with all Committee members present.
FUEL PURCHASE -ALTERNATE METHOD
The Committee was in receipt of a report from B. Davey dated November 15, 1995 recommending
a tender by proposal for direct purchase.
Mr. Pritchard briefly introduced the proposal and commended Mr. B. Davey, who worked along
with other staff to bring the cost saving recommendation forward.
Mr. Davey outlined the elements of the proposal and advised of projected savings over a five year
term of $262,681.00, in part due to reduced frieght costs. Mr. Davey explained that the proposal
would involve the City leaving the Co-operative Purchasing Group and negotiating a five year
agreement with a selected supplier. Mr. Davey pointed out that he believes the supplier will
provide the necessary equipment and maintain the pumps. It was also noted that
FUEL PURCHASE - ALTERNATE METHOD (CONT'D)
at present the City is billed for the fule at the time it is delivered in bulk, and under the new
proposal, billing would take place at the pint fuel is pumped into City vehicles.
Councillor Galloway questioned whether purchasing fuel outside of the Co-operative Group would
effect economies for other commodities and Mr. Davey replied in the negative. He also added that
the current supplier has assured the City fuel prices to other members would not be affected by
Kitchener's withdrawal. Mr. Gordon pointed out that K-W Hydro had recently advised that they
would join Kitchener if the alternate method of fuel purchase is approved. Councillor Wagner
questioned how staff could be assured of the price they would pay for fuel before the proposal has
gone to tender, and Mr. McKay replied that the present supplier has indicated the savings and has
guaranteed the price.
On a motion by Councillor K. Redman -
It was resolved:
"That the City leave the Co-operative Purchasing Group as regards the purchase of
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unleaded gasoline and diesel fuel and call for proposals based on the City of Kitchener's
Terms of Reference, with the intention of entering into a negotiated five year agreement
with the selected supplier."
KITCHENER HOME PAGE
The Committee was in receipt of a report and recommendations from the Home Page Committee
dated November 14, 1995.
Mr. Borovilos gave a video presentation of the proposed Home Page and pointed out that it will
function as an electronic book and will allow changes on a regular basis. It was noted that among
other initiatives, staff plan to monitor the origin of Home Page users in order to better define the
market. Mr. Borovilos reviewed the Committee recommendations outlined in the report and with
the assistance of Mr. Milne demonstrated the various elements of the proposed Home Page.
On a motion by Councillor C. Weylie -
It was resolved:
"That the existing Home Page Committee be maintained and meet on an ad hoc basis to
discuss relevant issues regarding Kitchener's Home Page, and that dianne Robertson and
Gee Wong be appointed as "Webmasters" to coordinate and make necessary changes to
the Home Page, with such changes to be channelled through the Department Heads'
Executive Assistans and forwarded to Dianne Robertson, and,
That Kitchener's Home Page address be listed in the appropriate Internet venues, and that
policy and procedure regarding links to other Home Pages be established through a
reciprocal arrangement, and further,
That the media launch scheduled for the morning of November 30, 1995 be approved. It
was also noted that no further staff report in this regard is required."
PHASE-IN OF REASSESSMENT
Councillor Ziegler asked that consideration of this item be deferred and referred to the Dekcember
4, 1995 Finance and Administration Committee meeting.
TAX SALES
The Committee was in receipt of two reports from Mr. O. den Ouden dated November 15, 1995
concerning tax sales for improved and vacant lands.
TAX SALES (CONT'D)
On a motion by Councillor G. Lorentz -
It was resolved:
"that the finance Department be authorized to commence tax sale proceedings on those
improved or vacant lands eligible effective January 1, 1996."
SPECIAL EVENTS - MAYOR'S OFFICE
Councillor Ziegler advised that he had intended to discuss recent expenditures relative to the visit
by Lord Kitchener as well as Remembrance Day celebrations; however, due to time constraints he
suggested that this discussion be put over to November 27, 1995. Councillor John Smola
questioned whether the final costs for the Lord Kitchener event are available and Councillor
Ziegler replied in the affirmative, noting that these would be circulated to members of Council.
Councillor Galloway noted that he hoped to disscuss this issue today, as in his estimation there is
some urgency. He suggested a discussion following the Planning and Development Committee
meeting of this date.
On a motion by Councillor M. Yantzi -
It was resolved:
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10.
11.
12.
"That discussion of expenditures and related processes for recent Civic events, including
the Lord Kitchener visit, be deferred and referred to a special Finance and Administration
Committee meeting on November 27, 1995 following the Council meeting to appoint
Special Committees, Boards and Commissions."
1996 BUDGET DELIBERATIONS - REVISED SCHEDULE
Council was in receipt of a revised schedule circulated by the Finance Department. Mr. Gazzola
explained that the two week delay proposed is to allow staff an opportunity to assess the financial
statement to be issued by the Province later this month concerning the proposed reduction in
Provincial transfer payments.
Councillor John Smola pointed out that the meeting proposed for January 17, 1996 conflicts with a
Regional Committee and suggested that the date be switched to January 15, 1996 from 9:00 a.m.
to 5:00 p.m.. The Committee agreed to the revised schedule, including the change suggested by
Councillor John Smola.
NEXT MEETING
The next regularly scheduled meeting of the Finance and Administration Committee will be held on
Monday, December 4, 1995.
ADJOURNMENT
On motion, the meeting adjourned at 2:15 p.m.
........... G. Sosnoski
........... Manager of Corporate
........... Records/Assistant City Clerk
