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HomeMy WebLinkAboutFinance & Admin - 1995-12-04FAC\1995-12-04 DECEMBER 4, 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: Mayor R. Christy, Councillors T. Galloway, K. Redman, Jake Smola, John Smola, M. Wagner and C. Weylie, Councillors J. Ziegler, B. Vrbanovic and M. Yantzi were in attendance for part of the meeting. Other present: Ms. L. Pasternak, Mrs. J. Koppeser, Messrs. T. McKay, T. McCabe, J. Gazzola, T. Clancy, R.W. Pritchard, J. Shivas, R. Arnot, K. Tribby, R. LeBrun and G. Sosnoski. In the absence of Councillor J. Ziegler, Councillor T. Galloway assumed the Chair. 1. EXTENSION OF BINGO LICENSING PERIOD The Committee was in receipt of a report from J. Koppeser dated November 29, 1995 recommending various policy amendments. On a motion by Councillor Jake Smola - It was resolved: "That Policy Number 1-580, 1 .(a) be amended to read as follows: That, for a trial period of 1 year, effective January 1, 1996, a bingo lottery licence covering a series of bingos may be issued to any charitable/religious organization for a period not to exceed four calendar months. The maximum number of bingo events any organization may be licensed for shll not exceed 52 in any calendar year. The above is subject to the organization meeting the Provincial Terms and Conditions, including the requirement with respect to the filing of bingo reports within 15 days of holding an event. Failure to meet this requirement will result in the organization's licensing period being shortened. The Licensing Staff are permitted to issue further licences on a one-time basis covering a consecutive four-week period. If at the end of this four-week period, the desired results have not been achieved, then staff shall isue on a per event basis or refuse all subsequent requests for bingo lottery licences. If the requirements are not met in more than one licensing period during a twelve month period, staff shall refuse all subsequent requests for bingo licences for the organization and refer the matter to the Finance and Administration Committee for review. Any of the above actions, however, may be appealed at the next regular meeting of the Finance and Administration Committee or City Council by the organization affected." 2. LOT MAINTENANCE / CLEAN UP BY-LAWS - 151 LANCASTER STREET EAST / 161 OTTAWA STREET SOUTH The Committee was in receipt of reports PD 95/123 and PD 95/124 dated November 30, 1995 recommending that a by-law be enacted at the upcoming Council meeting authorizing clean up of the sites at the owners' expense. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 4, 1995 - 148 - CITY OF KITCHENER 2. LOT MAINTENANCE / CLEAN UP BY-LAWS - 151 LANCASTER STREET EAST / 161 OTTAWA STREET SOUTH - CONT'D On a motion by Councillor John Smola - It was resolved: "That the owner be notified that the City intends to consider a by-law at the December 11, 1995 Councill meeting authorizing the removal of waste material from and the cutting of weeds at 161 Ottawa Street South, Kitchener, at the owner's expense if this has not been done by the owner on or before December 29, 1995." On a motion by Councillor John Smola - It was resolved: "That the owner be notified that the City intends to consider a by-law at the December 11, 1995 Council meeting authorizing the removal of waste material from and/or the cutting of weeds at 151 Lancaster Street East, Kitchener, at the owner's expense if this has not been done by the owner on or before December 29, 1995." HERITAGE ROOM RENTAL - MINISTERIAL ASSOCIATES The Committee was in receipt of a report from R.W. Pritchard dated November 29, 1995 recommending an extension of the current rental agreement with Ministerial Associates and incorporating a 5% fee increase. Mr. Juan Robertson was in attendance on behalf of Ministerial Associates (Kitchener) Inc.\ On a motion by Councillor C. Weylie - It was resolved: "That the Mayor and Clerk be authorized to execute a rental agreement expiring December 31, 1996, with Ministerial Associates (Kitchener) Inc. involvling 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 rate of $1,050.00, payable in advance on or beofre the 31st day of each month." SALE OF SURPLUS / VACANT CITY PROPERTY The Committee was in receipt of a report from G. Anderson dated November 22, 1995 recommending that three parcels be surplused and sold. On a motion by Mayor Richard D. Christy - It was resolved: "That the vacant parcels of land legally described as: Lot 17, Plan 66 (Union Street, east of Lancaster Street); Part of Lot 12, Plan 364 designated as Part 1, Plan 58R-1929 (Eby Street South, north of Charles Street East); and Part of Lot 6 and Part of Lot 7, Plan 390 (Madison Avenue South between Charles Street East and Courtland Avenue East) be declared surplus to the City's needs, and further, That the City's Land Purchasing Officer be directed to negotiate agreements of purchase and sale with the abutting owners and with respect to Part of Lot 6 and Part of Lot 7, Plan 390, alternatively and as decided by the Land Purchasing Officer, by newspaper advertisement or real estate listing, with each agreement to be presented to Council for acceptance." SALE OF SURPLUS / VACANT CITY PROPERTY - CONT'D Further discussion then took place concerning the Property Standards violations at 151 Lancaster FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 4, 1995 - 149 - CITY OF KITCHENER Street East and 161 Ottawa Street South. Mayor Christy questioned the effectiveness of the current fine structure and Ms. Pasternak clarified that various factors are considered in setting a fine and that the highest she has personally seen was $1,000.00. She stated that a charge can be laid on the basis of the last property inspection. In response to a further question she stated that a set fine approval is in place, but this has not been pursued as the fine is only $110.00. Councillors J. Ziegler and B. Vrbanovic entered the meeting and Councillor Ziegler assumed the Chair. Councillor Wagner suggested that the City needs a process to deal with property standards infractions more quickly and more severly and referred to the long term negative effect on the City's image in the eyes of neighbouring property owners who perceive that the City is unable to enfore these by-law infractions in a timely manner. Councillor Wagner also suggested that the fine should be set at the maximum amount allowed under law. REGIONAL NO SMOKING BY-LAW The Committee was in receipt of the most recent resolution adopted by Kitchener Council as well as a resolution adopted by Cambridge Council recommending a 100% prohibition on smoking in restaurants and other establishments. They were also in receipt of a submission from Dr. T. Polevoy concerning smoking bans in several American cities. Dr. T. Polevoy objected to the fact that the Regional Tobacco By-law Review Committee had no medical representation and as a result could not effectively deal with what is predominantly a health related issue. He suggested that smoking should not be allowed in the work place due to the immediate health hazard and corresponding impact on work place safety. He referred to the plight of restaurant employees who are forced to work in smoke filled conditions and noted that restaurant employees would likely support a ban on smoking whereas owners would not as they are under the impression that such a ban would be detrimental to business. Dr. Polevoy also referred to the tobacco products readily available to children of all ages from unsupervised vending machines. Dr. T. Polevoy argued that erroneous information has been circulated by smoking advocates aimed at convincing the business community that profits will decline in the wake of a smoking ban. He circulated several posters and books on smoking and related health hazards and referred to the money spent by the purveyors of tobacco to promote smoking, as well as the incentive to smoke provided by lower tobacco taxes. Dr. Polevoy stated that he would like health administrators to address this issue and encouraged Kitchener Council to follow the lead taken by other municipalities in North america and prohibit smoking in facilities frequented by the general public. In respose to a question from Councillor Wagner, Dr. Polevoy advised that the highest death rate in California is among female restaurant workers. He referred to a resulting increase in the number of successful restaurants in various American municipalities following the institution of smoking bans. Councillor Redman asked whether Dr. Polevoy had petitioned the Province to take an initiative as regards no smoking legislation, and he replied that there had been no action by the previous New Democratic Party government due to their labour affiliation and expressed hope that the current Minister may address the issue. Councillor Redman suggested that any ban on smoking should be Province wide so as not to discriminate against Businesses in a specific locality which may be bidding for conference trade. Councillor M. Yantzi entered the meeting at this time. REGIONAL NO SMOKING BY-LAW - CONT'D Councillor J. Ziegler referred to a letter which be believed was sent to the Mayor be a tobacco committee, and Mayor Christy advised that he has no knowledge of such a letter. Councillor Wagner reviewed the process with regard to adoption of a Region wide no smoking by-law and referred to three distinct elements involving smoking in restaurants, bars and other public or private rental facilities. He also noted that the draft by-law circulated by the Regional Tobacco FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 4, 1995 - 150 - CITY OF KITCHENER Review Committee earlier this year provided for a 50% no smoking area in restaurants and other establishments and a 25% in bars. Councillor M. Wagner put forward a motion to encourage the Regional Tobacco By-law Review Committee to amend its draft by-law so as to implement a 100% ban on smoking in all restaurants, bars and other public facilities in the Region of Waterloo. Councillor Wagner argued that there is no clear evidence that business will be negatively affected by a ban on smoking and noted that when this issue is discussed it is always from a business standpoint, rather than a public health perspective. He suggested that there are three other issues; namely, the need too provide an environment that does not encourage young people to start smoking; assistance to the estimated 80% of smokers who would like to quite and need help to do so; and the need to protect businesses from smoking related lawsuits similar to those in the United States. Mayor Christy spoke againts the motion, indicating that though he does not personally support smoking he feels that government is moving incrementally towards a smoke-free environment and the public would not support a 100% ban at this time. Mayor Christy pointed out that until the Federal and Provincial government taks the issue more seriously, some municipalities may experience discrimination in the wake of a total smoking ban. Councillor Galloway argued that if a smoke-free environment is important to consumers, the marketplace would naturally impose this on business owners who would deal with customer requests on a voluntary as opposed to a legislated basis. Councillor Yantzi advised that he would support the motion before the Committee at this time provided a ban is imposed Region wide. Councillor Redman advised that she supports a more moderate approach to smoking legislation and suggested that the problem could also be addressed through the institution of air quality standards which would encourage business owners to demonstrate air quality improvements. Councillor Vrbanovic voiced his support for a more gradual process of change with an emphasis on public education. He suggested that it is inappropriate for government to interfere too greatly in business matters and that consumers could force change which they feel is appropriate. Councillor Jake Smola advised that he would have a positive impact on business and that there should be more stringent rules regarding smoking due to the long term health affects. Councillor Wagner pointed out that at present there is broad public support for a smoking ban and that laws are lagging behind people's wishes in this regard. The previous motion by Councillor M. Wagner regarding a 100% ban on smoking was voted on and Lost. Mayor R. Christy put forward a motion to Reaffirm Council's previous position as regards no smoking areas in restaurants and bars of 50% and 25% respectively. Councillor Wagner suggested that a compromis position would be to immediately provide for a 75% smoke-free envorinment in bars, restaurants and other public places with the intention of moving toward a total ban at a future date. Mayor Christy withdrew his previous motion and put forward a second motion to provide for 50% smoke-free environment in restaurants and bars with incremental movement towards a smoke-free environment. REGIONAL NO SMOKING BY-LAW - CONT'D Councillor Redman indicated that she could support the motion, but that consideration should be given to petitioning the Provincial government to tkae a more proactive role in this area and also convey the need to address air quality standards in individual restaurants and other public establishments. Councillor Wagner suggested that he could take both of these suggestions forward to the Regional Tobacco Committee. The previous motion by Mayor Richard D. Christy to implement a 60% smoke4ree area in restaurants and bars was voted on and Lost on a tie vote. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 4, 1995 - 151 - CITY OF KITCHENER On a motion by Councillor Jake Smola - It was resolved: "That Council indicate its support for a 75% non-smoking area in all bars, restaurants and other public facilities, including public halls, and that the Provincial government be petitioned as regards the enacting of Province wide no-smoking legislation." On a motion by Councillor K. Redman - It was resolved: "That in regard to public concern over the health impact of cigarette smoke, the Regional Municipality of Waterloo consider and investigate the implementation of air quality stanndards in individual restaurants and other establishments frequented by the general public." CITY INSURANCE Mr. Gazzola gave a presentation outlining the City's present insurance coverage and staff recommendations on a new method of dealing with the acquisition and maintenance of insurance and the hiring of an additional staff person in the area of insurance/risk management. Mr. Gazzola noted that under the recommended system, broker fees paid by the City would be significantly reduced as a result of a shift from commissions to fee-for-service and that the resulting savings could be used to fund the Risk Manager position. Mr. Gazzola referred to a variety of benefits which would accrue to the municipality as a result of the proposal; namely, premium reductions, greater self-insurance levels, claims reductions, fee-for-service savings and reduced adjusters' fees. Councillor Ziegler asked how easily the City could return to the present system if it was dissatisfied with the proposed alternative and Mr. Gazzola replied that the only problem would involve the additional staff person hired to implement the new system. Councillor Ziegler suggested that the Risk Manager position should be contracted for two years and Mr. McKay replied that if the person were hired on a full-time basis, the City would exercise its layoff right if the position was no longer required. Mr. Gazzola noted that at present Mr. den Ouden spends approximately 15% of his time on insurance and no time on risk management and suggested that this arrangement is inadequate in these times and given the size of the municipal corporation. Councillor Galloway questioned whether the recommendations before the Committee this date could be adopted in isolation and Mr. Gazzola replied in the affirmative, indicating his preference that all four be adopted. Councillor Galloway also advised that he has some concern over the funding of staff positions from reserve funds as is being proposed for the Risk Manager. In response to a further question from Councillor Vrbanovic, Mr. McKay clarified that with regard to Recommendation #3 involving transfer of the Claims Section of Safety to the Finance Department, the intent is to transfer responsibility only and not staff. CITY INSURANCE - CONT'D Moved by Mayor R. Cristy - "That City staff be authorized, effective June 1, 1996, to proceed with an insurance renewal with one insurance broker on a fee-for-service basis versus the present insurance committee, and, That the Finance Department be authorized to proceed with the implementation of a full- time Insurance/Risk Manager position within the Finance Department to coordinate: The placement of insurance requirements; review of claims; adjustment and settlement of claims and assigning losses to outside adjusting firms; review of claims incidence with City Departments; implementation of an internal insurance/risk manual, and, FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 4, 1995 - 152 - CITY OF KITCHENER That the Claims Section of Safety in the Human Resources Division be moved to the Finance Department and be consolidatted with the other insurance/risk management administrative functions, and, That the position of Insurance/Risk Manager be funded from the City of Kitchener Insurance Reserve Fund, and further, That this arrangement be reviewed in two year's time." Councillor Galloway questioned whether it is imperative to deal with Recommendation #2 (creation of a new staff position) in isolation of the 1996 Budget deliverations and Mr. Gazzola replied in the negative. He stated however that he would like to see the person on staff before February of 1996 in order to prepare for the yearly insurance renewal in June. Councillor Ziegler inquired whether the position should initially be contracted and Mr. McKay replied that in his estimation the City would have a better chance of attracting qualified individuals if the position were advertised as full- time. He offered the suggestion that this is warranted given the size of the municipality. Mayor Christy suggested that, if adopted, the entire initiative could be reviewed in two year's time. The previous motion by Mayor R. Christy relative to renewal of the City's insurance with one broker on a fee-for-service basis and the hiring of an Insurance/Risk Manager was voted on and Carried. PHASE-IN OF REASSESSMENT Mr. Gazzola circulated various schedules outlining the impact of the recent reassessment on various property classes and reviewed these with the Committee. He also referred to the pahse-in program adopted during the last reassessment which affected properties with increases greater than 30% and decreases greater than 10%. Mr. Gazzola suggested that the present reassessment appears to be much different than the previous reassessment and there are fewer inquiries. Councillor John Smola questioned whether the phase-in is worthwhile given the changed circumstances and Councillor Ziegler argued that a phase-in should be adopted where a significant amount of money is involved. Councillor Ziegler asked what the effect would be if a similar program were adopted and Mr. Gazzola replied that if the phase-in applied only to increases and decreases of 30% or greater, the cost would be approximately $800,000.00. Mr. Gazzola explained that there are three factors impacting phase-in costs, the first involving a delay in the issuing of tax statements and the corresponding revenue loss which resulted during the last reassessment, but which would not be applicable at this time. The second factor relates to the balancing of a phase-in for decreases and increases over a three year period which previosly resulted in a cost of between $175,000.00 and $200,000.00. He pointed out, however, that this shortfall could be eliminated by refining the points at which a phase-in would PHASE-IN REASSESSMENT - CONT'D be applicable. Finally, Mr. Gazzola referred to the labour costs of implementing a phase-in system which he estimated at between $50,000.00 to $60,000.00 a year. He pointed out that in his opinion the City has gone through two or three reassessments which were much worse than the current one, and which did not incorporate the same magnitude and severity of assessment shifts. Councillor Ziegler reminded the Committee that in regard to the las reassessment, Councillors did not receive calls until the first tax bill was sent out under the new rate. Councillor Galloway argued that the propert tax system is both regressive and unfair and that it is impossible to introduce fairness into such a system through a simple phase-in. He also noted that by its nature, a phase- in which results in a gain for one individual also results in a corresponding loss for another. Councillor Galloway noted that he is surprised by the lack of reaction to date, presumably since the assessment shifts are not as severe as during the last reassessment, and on this basis he cannot support a phase-in program. Councillor Galloway also suggested that there should be no debate on a phase-in program without further public input. Mayor R. Christy put forward a motion to take no action on a tax phase-in as a result of the recent reassessment. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 4, 1995 - 153 - CITY OF KITCHENER Mayor christy argued that the City has an obligation to collect taxes which are warranted, especially in light of the announced reductions in Provincial transfer payments. Councillor Wagner commented that there does not appear to be a great number of inequities as a result of this reassessment, nor are the assessment shifts as severe as in the past. The following motion was then voted on. On a motion by Mayor Richard D. Christy - It was resolved: "That no action be taken at this time to implement a phase-in program relative to the recent property tax re-assessment." 8. OTHER BUSINESS Mayor Christy asked that the issue of lap dancing be included on the January 8, 1996 agenda and that staff review the first correspondence in this regard and bring the issue into focus. 9. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, January 8, 1996. 3. ADJOURNMENT On motion, the meeting adjourned at 1:05 p.m. ........... G. Sosnoski ........... Manager of Corporate ........... Records/Assistant City Clerk