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APRIL 1, 1996
FINANCE & ADMINISTRATION COMMITTEE MINUTES
CITY OF KITCHENER
The Finance and Administration Committee met this date, commencing at 11.00 a.m., under the
Chairmanship of Councillor J. Ziegler with the following Members present: Councillors T. Galloway, G.
Lorentz, Jake Smola, John Smola, B. Vrbanovic, M. Wagner, C. Weylie and M. Yantzi. Mayor R. Christy
was in attendance for part of the meeting.
Others present: Mrs. J. Koppeser, Ms. L. MacDonald, Ms. W. Love, Ms. P. MacPherson-Bacon, Ms.
D.Arnold, Messrs. R. W. Pritchard (Acting Chief Administrative Officer), J. Shivas, J. Gazzola, R. Arnot, L.
Parkhouse, T. Clancy, B. Stanley and G. Sosnoski.
1996 SIDEWALK PATIOS
The Committee was in receipt of Planning and Development Report No. PD96/18 comprising a
discussion paper on various issues relating to outdoor patios on Downtown sidewalks, as well as
an addendum dated March 26, 1996, reporting the recommendations of the Downtown Advisory
Committee. They were also in receipt of a memorandum from G. Sosnoski dated March 26, 1996
and attached sketch plan comprising the 1996 patio proposal of Especially Coffee Inc. The
memorandum advises that the owner was unable to attend this date but plans to use the same
patio materials and layout as submitted and approved by the City in 1995.
Mr. Peter Bardouniotis was in attendence on behalf of Dandy's Restaurant, 85 King Street West,
and in support of the 1996 patio proposal previously circulated to Committee members.
On a motion by Councillor M. Yantzi
it was resolved:
"That Council require, through the annual encroachment agreement, the installation of a
sign on all outdoor patios on Downtown sidewalks which reads" No Shirt, No Shoes, No
Service", and,
That a condition be included in said agreement that if patron behaviour is a problem, the
licensee is responsible for hiring the necessary security personnel, and,
That all applicants wishing to operate an outdoor patio on City property must submit, for
approval by the City's Finance and Administration Committee, a complete patio sketch plan
outlining the type, style, colour and materials of fencing and patio furniture (on the
understanding that chain link fencing is not an approved option), as well as an outline of
any proposed signage and landscaping, including flower beds and planters, and further,
That subject to conforming with the above additional requirements, Council approve the
patio sketch plans submitted by Dandy's Restaurant (85 King Street West) and Especially
Coffee Inc. (10 King Street East)."
CHARGE FOR AUTOMATED BANKING MACHINES (ABM)
Committee members were in receipt this date of a report from Councillor B. Vrbanovic
dated April 1, 1996 recommending that Council approve in principal the notion of charging
a licensing or user fee for the installation of ABM machines on other than bank property.
Councillor Vrbanovic then moved the recommendation in his report involving charges for ABM
installations.
Councillor Vrbanovic referred in continuing reductions in Provincial grants and the need to
decrease City operating costs, rationalize services, enter into partnerships and increase revenues
to offset the loss in funding. He explained that the initiative before the Committee this date
originated in the City of Sarnia and in response to provisions under Bill 26. He referred
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CITY OF KITCHENER
2. CHARGE FOR AUTOMATED BANKING MACHINES (ABM) - CONT'D
to various issues involving ABM machines which have an impact on municipalities; namely, safety,
site maintenance and policing costs. Councillor Vrbanovic also indicated any charge would be in
the form of a cost recovery, not unlike the service charges recently imposed by banks themselves.
He also referred to the large profits recently reported by banks and the social costs of recent lay-
offs by the banking industry.
Mr. Keith Oosthoek, Area Manager, Royal Bank of Canada appeared concerning the ABM
proposal. The Committee was in receipt of his written submission dated March 26, 1996 raising
concerns over this initiative.
Mr. Oosthoek indicated that he is prepared to provide facts concerning bank profits and service
charge issues, and offered the opinion that charging only ABM machines is discriminatory as it
targets only one segment of the business community. He also suggested that a charge is unfair in
light of the current tax burden of Canadian banks. Mr. Oosthoek added that the premises where
the ABM's are located already pay property taxes, and the banking machines themselves assist in
generating ancillary business at these locations. Councillor Yantzi questioned the degree of
involvement by the corporate sector in addressing community needs. He referred to various
issues involving bank profits, service charges and lay-offs which would seem to suggest that the
corporate sector is not prepared to increase its involvement in providing for community needs in
the advent of less involvement by government. Mr. Oosthoek responded that his bank makes
numerous donations to local organizations and many of it's staff perform volunteer work within the
community. In response to a further question from Councillor Wagner, Mr. Oosthoek advised that
the Canadian Bankers Association is presently investigating the recent actions of the City of
Sarnia regarding a charge on ABM machines. Councillor Vrbanovic enquired as to the cost of
installing an ABM machine, noting that an industry contact had indicated it was approximately
$80,000 and that the capital expense is recovered through service charges within 12 - 18 months
of installation. Mr. Oosthoek replied that he did not have exact figures in this regard, but noted
that there are no additional service charges for the use of ABM's over and above the normal
charge, except where a patron of one bank is using a machine owned by another bank. Councillor
Vrbanovic clarified that his intention is not to discriminate against the banking industry but to focus
on issues of cost recovery and safety.
In response to a concern raised by Councillor Ziegler, Councillor Vrbanovic agreed to amend his
motion by removing clause #4 involving consideration by the Region of Waterloo and the Waterloo
Regional Police Services Board.
Councillor Wagner noted that he is not prepared to support the motion before the Committee;
however, he is prepared to look at the broader issue of user fees.
Mayor R. Christy entered the meeting at this time.
Councillor Lorentz noted that initiatives by the City to recover it's costs are not inconsistent with
similar actions in the private sector. Mayor Christy urged that all parties be given an opportunity to
provide input into this initiative at the information gathering stages before Council makes a final
decision.
Mr. Shivas urged caution as regards the issue of charges for ABM's and suggested that he be
directed to co-ordinate a staff report on the foundations of this initiative.
The following deferral motion was then considered.
2. CHARGE FOR AUTOMATED BANKING MACHINES (ABM) - CONT'D
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CITY OF KITCHENER
On a motion by Councillor T. Galloway
it was resolved:
"That consideration of the proposal to require licensing or the payment of user fees relative
to Automated Banking Machines on other than bank property, be deferred and referred to
the April 22, 1996 meeting of the Finance and Administration Committee to allow Legal staff
to prepare a report on the foundation of this initiative, and to give all affected parties an
opportunity to provide input."
Councillor Yantzi suggested that input should be obtained from the Waterloo Regional
Police Services Board, and Councillor John Smola suggested input from the Region's
Licensing Committee. Councillor Ziegler advised that he would take this issue to the
April 2, 1996 meeting of the Police Services Board.
COUNCIL EXPENDITURES - CONFERENCES AND TRIPS
The Committee agreed to a request from Mayor R. Christy that consideration of this item be
deferred and referred to the April 22, 1996 Committee meeting to allow him to participate in
the debate, as he has a previous engagement requiring him to leave the meeting at this
time.
LICENCE FEE REDUCTION - CHIP WAGON (KITCHENER FARMER'S MARKET)
Council was in receipt of the original report from J. Koppeser dated February 13, 1996. They were
also in receipt of additional reports from J. Koppeser dated March 27, 1996 and L. MacDonald
dated March 29, 1996.
Ms. Macdonald explained that staff have taken a more comprehensive approach to refreshment
vehicles and street vendors on the basis of the requirements in Bill 26, and that the urgency in this
regard relates to the City's 1996 Street Vendor By-Law. She suggested that Council may want to
deal with the related license requests on an equal basis, noting that Council now has the option of
fully recovering costs in this area. It was also noted there are no specific dollar figures outlined in
Mrs. Koppeser's report pending Council direction.
Councillor Yantzi questioned whether the licensing matter before the Committee this date could be
dealt with only as regards flea markets and farmers' markets, and the request granted subject to a
review of the broader licensing issues associated with Bill 26. Ms. MacDonald responded that
technically this would be possible as long as any by-law amendments meet the requirements of
Bill 26. She pointed out that the staff report already contains a comprehensive review relative to
street vendors, and though Council could deal with a new class in the Street Vendor by-law
relating to farmer's markets and flea markets, such an amendment would result in two separate
sets of principals in a single by-law. Councillor Vrbanovic suggested that the current applicant at
the Farmers' Market could be dealt with on an individual basis and Council could give an off-
setting grant to compensate for the difference between the currently legislated license fee and the
desired fee. Ms. MacDonald agreed that this could be done to expedite the market request;
however, dealing with requests of this nature on an ongoing basis would introduce problems of
uniformity. She also noted that the existing license fee cannot be changed unless the license itself
is in compliance with Bill 26.
Councillor Ziegler suggested that Council should first deal with the comprehensive fees proposed
by staff, noting that he is opposed to enacting a new by-law at this time. He also suggested that
staff should specify the administrative costs associated with each license fee category. He
indicated his general support for the course of action suggested by Councillor Vrbanovic on the
understanding that this is on a one time basis and relates to the Farmers' Market request alone.
Councillor Lorentz suggested that staff discuss this matter further and come back to Council on
April 9 with a simple solution as regards the current request of the Market vendor. He noted that
there seems to be general agreement that a chip wagon at the Market is desirable.
LICENCE FEE REDUCTION CHIP WAGON (KITCHENER FARMER'S MARKET) -
CONT'D
On a motion by Councillor G. Lorentz
it was resolved:
"That further consideration of a request for a reduction in the Licence Fee applicable to the
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CITY OF KITCHENER
proposed Chip Wagon at the Kitchener Farmers' Market be deferred and referred to the
April 9, 1996 Council meeting pending further discussion with the vendor and a joint report
from Parks and Recreation, Licensing and Legal staff as to an appropriate solution and
licence fee."
Ms. MacDonald enquired whether Council wished to see full cost recovery implemented in the
1996 Street Vendor By-Law, noting that if this is the case she will prepare a draft. The committee
generally agreed to the course of action proposed by Ms. MacDonald.
VACANCY - KITCHENER PUBLIC LIBRARY BOARD
The Committee was in receipt of correspondence from L. Parkhouse dated March 6, 1996
requesting the Committee's direction concerning the filling of a vacancy on the Board.
Councillor Jake Smola pointed out that the current terms of reference allow up to four members of
Kitchener Council on the Library Board, and at present he is the only Council representative. He
suggested waiving the public notice requirement and filling the existing vacancy with a second
member of Council, and explained that he would like to see a Council member with technical
expertise given the automation initiatives currently underway. Councillor Smola argued that
additional Council representation is warranted based on the size of the annual appropriation the
City gives to the Board for operating local libraries. Councillor Lorentz pointed out that the Board
has already advertised to fill the vacancy and suggested a recommendation to the new Council
that they consider increasing Council representation. He also suggested that the City's
Information Services staff could be used as a resource.
Councillor Wagner pointed out that the Library Board is responsible and efficient in it's present
format, and offered the opinion that he would not like to see the number of lay appointees reduced
in view of the volume of sub-committee work and meetings. He suggested filling the current
vacancy with a member of the public at large. Councillor Jake Smola indicated his own interest in
participating at the sub-committee level and advised that he would be more comfortable with a
second Council representative. Councillor Galloway agreed that Council should have greater
representation on the Board; however, he expressed concern that this would be viewed as an
imposition. He suggested introducing a motion to support, in principal, the request of Councillor
Jake Smola and that it be sent for a response from the full Board. Councillor Wagner advised that
he sees no problem with additional Council members, but that this should not be at the expense of
lay appointees. In this regard he suggested increasing the size of the Board with the additional
member to be a Council representative.
Councillor Jake Smola put forward a motion to direct that the current vacancy on the Library Board
be filled by a member of Council.
Councillor Lorentz expressed concern that the public may construe from the Committee's actions
that there is a problem with the Board, which is not the case. He also noted that introducing
another Council representative may be perceived as an attempt to increase the City's influence.
Councillor Jake Smola withdrew his previous motion to fill the current Board vacancy with a
member of Council and introduced the following new motion.
VACANCY - KITCHENER PUBLIC LIBRARY BOARD - CONT'D
On a motion by Councillor J. Smola
it was resolved:
"That Council amend Chapter 95 (Public Library Board) of the City of Kitchener Municipal
Code so as to increase the number of members appointed by Council from nine to ten, with
the additional member to be a Member of City Council, and further,
That the Board be authorized to advertise for a member of the public to fill the current
vacancy resulting from the resignation of Ms. Mary Chevreau."
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CITY OF KITCHENER
REGIONAL GOVERNANCE ISSUES
The Committee was in receipt of a position paper from T. McKay reflecting the views on
governance issues expressed by members of Council at previous meetings of the
Committee of the Whole.
On a motion by Councillor M. Yantzi
it was resolved:
"That Council accept the report of T. McKay dated March 27, 1996 as the City's submission
on the subject of Regional Governance, and that it be forwarded to the Regional committee
established to obtain input from area municipalities on governance and service delivery
rationalization."
OTHER BUSINESS
The Committee received, as information, two reports from the Kitchener Public Library
Board dated March 26, 1996 concerning the existing bookmobile fleet and the Board's
position relative to a non-resident user fee. The latter contains the results of a survey of
more than 600 residents and non-residents conducted at the Main Library and it's
branches.
NEXT MEETING
The next regularly scheduled meeting of the Finance and Administration Committee will be held on
Monday, April 22, 1996.
ADJOURNMENT
On motion, the meeting adjourned at 12.30 p.m.
G. Sosnoski
Manager of Corporate
Records/Assistant City Clerk