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HomeMy WebLinkAboutFinance & Admin - 1996-02-05FAC\1996-02-05 FEBRUARY 5, 1996 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 the following members present: Councillors T. Galloway, G. Lorentz, K. Redman, Jake Smola, John Smola, B. Vrbanovic, M. Wagner, C. Weylie and M. Yantzi. Mayor R. Christy was in attendance for part of the meeting. Other present: Ms. L. MacDonald, Mrs. J. Koppeser, Messrs. T. McKay, T. McCabe, J. Shivas, L.F. Parkhouse, D. Snow, R. Arnot, W. Beck, D. Paterson, C. Ford and G. Sosnoski. 1996 STREET VENDOR BY-LAW The Committee was in receipt of an information report from J. Koppeser dated January 30, 1996 and a report from R. Arnot dated January 31, 1996, the latter recommending an additional fee for vending carts operating in City parks and outdoor sports facilities. All six of the current vendors were invited to attend the meeting this date. Ms. Eva Wilk appeared and advised that she has been a vendor in Victoria Park for the past five years. Ms. Wilk stressed the need to establish and maintain a regular clientele and asked that the existing By-law remain as is and allow current vendors to retain their present locations. In response to a question from Councillor Redman, Ms. Wilk advised that hotdog vendors have a capital investment for equipment ranging from $2,500.00 to $7,000.00. She also stressed that location is very important and that vendors usually prefer to remain in one location over an extended period of time. Councillor Lorentz asked for comment on the possibility of charging vendors 1% of their total sales as an alternative to the licence fee of approximately $1,000.00. Ms. Wilk replied that she would have no problem with a 1% levy on sales. Councillor Wagner suggested that the provisions in the 1995 By-law should be incorporated in the 1996 By-law, and advised that he does not support the assigning of locations based on an annual lottery. He also advised that he would not support a 1% levy on vendor sales as in his opinion this penalizes successful entrepreneurs. Councillor Wagner put forward a motion that the 1996 Street Vendor By-law be enacted in a form similar to 1995 with any additional locations to be added by Council on an ad hoc basis. His motion also included current vendors being given the first opportunity to return to the locations they presently occupy. In response to a question from Councillor Jake Smola, Mrs. Koppeser advised that in her opinion the current fee is reasonable. Councillor Yantzi indicated that he supports a charge based on a percentage of sales, noting that this amount would fluctuate with weather and sales conditions. Mr. McKay cautioned against taking any action at this time concerning a vendor charge based on the percentage of sales as this may be viewed as a municipal sales tax and is possibly prohibited under Bill 26. Councillor Yantzi suggested that this option be explored this year for possible implementation in 1997. In response to Councillor Redman, Mr. Parkhouse reviewed the problem areas cited in Mrs. Koppeser's report, noting the locations at King Street West in front of the former Goudies building, King and Gaukel, and Frederick and Otto Streets. He requested direction on the Frederick and Otto Street location as well as the flower vendor location (adjacent to the City Hall reflecting pool) and fee. Councillor Redman inquired whether staff would recommend dropping any of the current locations or not licensing specific vendors, and Mr. Parkhouse replied that from an operational point of view the location at King and Gaukel Street has been a major problem. Mr. Richard Hamm appeared as the vendor at one of the problem locations; namely, King Street West in front of the former Goudies building. He advised that the complaints received by the City in 1995 concerning operation of the cart by someone other than the owner are 1. 1996 STREET VENDOR BY-LAW - CONT'D FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 5, 1996 - 42 - CITY OF KITCHENER legitimate. Mr. Hamm pointed out that he owns two carts located in different parts of the City and requires an employee to operate one of them. He requested that the By-law be amended to allow someone other than the owner to operate the cart, stressing that a second cart is necessary to make a living. Mr. Hamm also pointed out that in his estimation it is not fair to allow Downtown restaurateurs to operate outdoor barbecues under a different set of rules and standards than street vendors. Mrs. Koppeser pointed out that if the By-law is amended as suggested by Mr. Hamm, any problem with the cart would be the responsibility of the owner and not the employee operating it. She also noted that at present street vendors are not limited to one cart/location on the basis that the carts are owner operated, and that this would have to be addressed in the context of any by-law amendment. Councillor Wagner inquired whether the monitoring of vendors and locations by staff on an ongoing basis is implied or part of the By-law, and Mr. Parkhouse replied that this requirement is incorporated in the By-law. Mr. Parkhouse also pointed out that one of the two carts operated by Mr. Hamm is located on private property and the City has no interest in this case whether it is owner operated. Councillor G. Lorentz put forward an amending motion so as to limit vendors to one cart on City property and that this cart does not have to be owner operated. Councillor B. Vrbanovic then put forward an amendment to the amending motion which would require anyone other than the owner who is operating a cart on City lands to provide a name, address, telephone number and photo identification. The amending motions were then dealt with and both were Carried. The Committee then voted on the following main motion, as amended: On a motion by Councillor M. Wagner - It was resolved: "That Council enact a 1996 Street Vendor By-law similar to that enacted in 1995, with the current vendors being given the first opportunity to return to the locations they presently occupy and with any additional locations to be added by Council on an ad hoc basis, and further, That the 1996 By-law limit a vendor to one cart on publicly owned land with the option of having it operated by someone other than the owner provided all requirements in the 1995 By-law relative to "stand-ins" are met." On a motion by Councillor M. Wagner - It was resolved: "That after meetings with the flower vendor who operated a cart opposite City Hall in 1995, Licensing staff report back to the Finance and Administration Committee concerning an appropriate licence fee for this location." 2. PARKING - EMPLOYEES OF CITY HALL TENANTS Councillor Ziegler advised that he has been approached by employees of a City Hall tenant requesting a similar reduction in the monthly parking rate to that recently extended to City Hall staff. He also noted that the employees had cited cost and safety concerns associated with offsite parking as the reasons for the request. Councillor Ziegler suggested that a monthly rate of $40.00 plus taxes be charged for all employees of City Hall tenants. Mr. Snow noted that of the 199 individuals parking at the City Hall garage, only nine work outside of the building. Councillor Galloway inquired as to the take-up rate by City staff since the rate reduction was approved, and Mr. Snow replied that the number of staff using the parking facility has doubled and is now 44. In response to a further question he indicated that he was unsure as to the exact number of tenant employees in the building, but suggested it 2. PARKING - EMPLOYEES OF CITY HALL TENANTS - CONT'D would likely be around 20. Councillor Yantzi suggested that the City look into leasing a block of FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 5, 1996 - 43 - CITY OF KITCHENER spaces to the tenant at a reduced rate who would then in turn collect the amount from employees. Mr. Snow replied that this could be likely accommodated from an standpoint. operational On a motion by Councillor T. Galloway It was resolved: "That a monthly parking rate of $40.00 plus taxes be implemented relative to the staff of City Hall tenants wishing to use the City Hall parking garage." EARLY RETIREMENT INCENTIVE Councillor Ziegler advised that the Early Retirement Incentive Sub-committee dealing with the incentive is comprised of himself and Councillors John Smola and C. Weylie. He noted that both he and Councillor Weylie are in favour of abolishing the incentive, and Councillor John Smola of retaining it. Councillor Ziegler pointed out that currently only the City of Windsor has a similar early retirement plan. Mr. McKay advised that the program has been in place since 1986 and has been continued on a three year renewal basis with reports to Council at each stage. He pointed out that the purpose of the program is to allow employees over 55 years of age (Fire Fighters over 50 years of age) to retire early and receive 5% of accumulated sick leave for each year of early retirement over and above the normal sick leave payout. Councillor John Smola suggested that the current arrangement should continue as an incentive if the City wishes to pursue further downsizing. Mr. McKay added that when last reviewed by the Committee, it was suggested that the total dollar amount of the payout for both plans should not exceed 70% of the employees salary. Councillor Galloway indicated that he was uncomfortable debating the matter further without a report on the historical background of the incentive, but indicated his general support at this time on the basis that the incentive has served the City well in the past. Councillor Lorentz suggested continuing the program but reviewing its parameters, and Councillor Redman advised that the Sub-committee should investigate all options, including capping the payout amount. Councillor Ziegler stated that the Sub-committee would meet in future with staff and would keep the Finance and Administration Committee posted on progress. It was agreed at a subsequent meeting of the Community Services Committee that the next meeting of the Early Retirement Incentive Sub-committee would be held on February 26, 1996 at 4:00 p.m.. EMPLOYEE SICK LEAVE PAYOUT Councillor Ziegler indicated that he had raised this issue for discussion and questioned whether the Committee wished to look at any alternatives to the present arrangement. Mr. McKay provided background information on the sick leave payout indicating that it has been in existence for approximately 50 years. He noted that accumulated sick leave is not vested until an employee has been with the Corporation for five years, after which the unused balance accumulates and an employee is eligible for a payout upon leaving the Corporation up to a maximum of 50% of their salary. Mr. Paterson also noted that the payout is a provision in all Collective Agreements. Councillor Weylie indicated a need for more detail on the current plan and the relationship between health benefits and the sick leave payout. She asked that all information be provided at the next meeting of the Early Retirement Incentive Sub-committee. Councillor Ziegler also requested information on current costs and claims history for the next Sub-committee meeting. Councillor Jake Smola cautioned that further discussion of employee benefits should take place in Caucus as employee benefits are a labour relations issue and are in all Collective Agreements. EMPLOYEE SICK LEAVE PAYOUT - CONT'D Councillor Wagner expressed his personal interest in knowing whether in the long term, there are potential savings as regards the sick leave payout in the event this benefit was not extended to employees hired at a future date. Councillor Ziegler requested information as to the possible savings and how such a change in the sick leave payout could be implemented. Councillor Wagner inquired as to the impact of a recent decision by the Centre in the Square to terminate its sick leave payout. Mr. McKay informed the Committee that grandfathering a FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 5, 1996 - 44 - CITY OF KITCHENER benefit is still a negotiated item under the Collective Agreement and referred to two separate components involving a sick leave payout and sick leave coverage itself. He also reminded the Committee that any projected savings in eliminating the payout would have to assume no increase in the use of sick days, noting that the reason for putting the program in place was to deter use of sick days. KITCHENER TRANSIT PASS REDUCTION The Committee was in receipt of a referral motion originating from the Environmental Committee and recommending that City of Kitchener employees who work in the Downtown core be given a $20.00 reduction on the cost of a monthly Kitchener Transit Pass. Councillor B. Vrbanovic disclosed a pecuniary conflict of interest and abstained from all voting and discussion concerning the proposed transit fare reduction as his wife, who is employed by the City's Information Services Division, could potentially benefit from this initiative. Councillor Wagner indicated his support of the Environmental Committee recommendation and asked for a further report on the potential financial impact of extending a transit pass reduction to all employees working in the Downtown. He also suggested imposing a time limit on this initiative in order to evaluate the positive or negative impact. He noted that this initiative may be a means of getting non-transit users to use the bus system. Councillor Ziegler argued that any reduction should be directed at the general population, not just City employees, as transit service is paid for by all taxpayers. Councillor Galloway commented in his capacity as the Chairman of the Environmental Committee, noting that the motion before the Committee is a direct response to the reduction in the monthly parking rate at the City Hall garage. Councillor Galloway also pointed out that this reduced parking rate has resulting in additional revenue and the same would likely apply to the transit pass initiative. He also referred to the possibility of a trial period. Mr. Beck noted that the $20.00 parking reduction as well as the provision of free parking in the Downtown can be viewed as subsidizing motorists, and that the concern of Transit is that over time this will cause people to see transit as a less economical option and this will result in rider loss in the Iongterm. He referred to a recent initiative involving Mutual Life wherein the company subsidized employees using the public transit system to discourage use of limited parking facilities, and suggested that other local industries could be approached on the issue of subsidy. Moved by Councillor Jake Smola - "That no action be taken to offer City of Kitchener employees working in the Downtown core a $20.00 reduction in the monthly cost of a Kitchener Transit Pass." Mr. McKay stressed that the decision to reduce the parking rate at the City Hall garage was in the interest of treating all City employees equally as some employees work in outlying locations where parking is free. He also pointed out that Management Committee did not support the transit pass reduction before the Committee this date as it is inconsistent. The previous motion by Councillor Jake Smola to take no action on the proposed monthly transit pass reduction for City employees was voted on and Carried. Mayor R. Christy entered the meeting at this time. ANNUALENERGY MANAGEMENT REPORT The Committee was previously in receipt of a written report from C. Ford dated January 17, 1996. Mr. Ford reviewed the Energy Management Program, noting that over the last 16 years the City has spent approximately $3.2 million on energy management projects and various government agencies funded the difference to a total expenditure of $4.4 million. Savings to date resulting from these initiatives total approximately $5.3 million and $13 million in savings are projected to the year 2005 based on existing projects alone. Councillor Galloway inquired as to the City's reinvestment policy as regards energy management savings and Mr. Ford replied that currently all savings are being reinvested and by about the year 2000 the program will be self-sustaining. FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 5, 1996 - 45 - CITY OF KITCHENER 7. VISITING DIGNITARIES Councillor Weylie requested discussion concerning City funding of visits by dignitaries who are not invited by Kitchener Council. She referred to an unnamed individual who has recently extended a number of invitations, noting that in one instance staff of the Mayor's Office were making arrangements for a visit, an activity which in her estimation should be the responsibility of the person or organization inviting the dignitary. She suggested the need for a policy in this regard. Councillor Weylie put forward a motion that the City adopt a policy whereby citizens who invite dignitaries to visit the City provide an estimate of the cost for consideration by Council. Councillor Vrbanovic advised that he would not support such a policy as in his view every citizen has the right to invite dignitaries to visit the municipality. He suggested that as regards budgeting and the use of City staff, Council could allocate funds in this regard if it wishes to meet with the invited dignitary, noting that the City should not be expected to pay the cost under any other circumstances. Councillor Weylie questioned the involvement of the Mayor's Secretary in planning a recent visit and Councillor Vrbanovic responded that the City was not asked to participate, rather the Mayor's Office chose to do so. Mayor Christy pointed out that it is often difficult not to get involved in such events when the City Hall is the location of the visit. He further noted that Mayor's Office staff became involved when it was apparent that all arrangements had not been made or the necessary protocol observed. He offered the opinion that the critical issue is for the City to receive notice of the visit. Councillor Galloway suggested that he does not wish to impose the view of Council on any individual citizen our group within the City, noting that Council may at its own discretion decide not to participate. Councillor Vrbanovic suggested that if, through the room booking process, Parks and Recreation staff are aware of a future visit they should advise the Mayor's Office in this regard. Councillor C. Weylie withdrew her previous motion concerning a policy on visiting dignitaries invited by private citizens. 8. OTHER BUSINESS Councillor Yantzi referred to recent discussions with Downtown churches concerning a grant for a portion of the cost of purchasing Transit tickets to provide emergency access to bus services. It was generally agreed that this issue should be placed on an upcoming Community Services agenda. Councillor Jake Smola read from a recent article in "Access", a journal of the Ontario Librarians' Association, concerning the sharing of services with client municipalities. Councillor Ziegler asked that this item be raised at the February 12, 1996 roundtable meeting, and a copy of the article circulated in advance. 9. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, February 19, 1996. 10. ADJOURNMENT On motion, the meeting adjourned at 12:25 p.m. FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 5, 1996 - 46 - CITY OF KITCHENER ........... G. Sosnoski ........... Manager of Corporate ........... Records/Assistant City Clerk