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HomeMy WebLinkAboutFinance & Admin - 1996-05-27FAC\1996-05-27 MAY 27, 1996 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date, commencing at 10.25 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, M. Yantzi and C. Weylie. Mayor R. Christy was in attendance for part of the meeting. Others present: Mrs. J. Koppeser, Ms. L. MacDonald, Messrs. T. McKay, T. Clancy, E. Kovacs, J. Shivas, T. McCabe, L. Parkhouse, K. Bowman, O. Den Ouden, G. Sosnoski. 1. LICENSE REQUEST - CITY KIDS DAYCARE The Committee was in receipt this day of a report and recommendation from J. Koppeser dated May 27, 1996 concerning a request to hold a garage sale and operate a refreshment stand at Kitchener City Hall. On a motion by Councillor G. Lorentz it was resolved: "That the City Kids Daycare be granted permission to hold a garage sale and operate a refreshment stand on June 1, 1996 at Kitchener City Hall, with the applicable fee to be $1.00. 2. 1996 SIDEWALK PATIO - SPORTS CAFE (102 KING STREET WEST) The Committee was in receipt of a report from J. Koppeser dated May 23, 1996 summarizing the City's 1995 experience with the Sports Cafe outdoor patio. Consideration of the Committee's May 13, 1996 recommendation was deferred by Council and referred to the meeting this date at the request of Councillor M. Yantzi for further discussion of the problems encountered in 1995. Mr. Anthony Correia was in attendance on behalf of the Sports Cafe. Councillor Yantzi pointed out that problems were ongoing throughout 1995 and stressed that having a sidewalk patio is a privilege and not a right. He suggested that any such patio should contribute in a positive way to the Downtown environment and that neither it's appearance nor the behaviour of patrons should detract from that environment. Councillor Yantzi acknowledged that friends of a previous manager may have been part of the problem in 1995, and that Mr. Correia has indicated that both he and the owner will be operating the Cafe this summer and will monitor patron behaviour. The Committee then re-affirmed it's May 13, 1996 recommendation as follows. On a motion by Councillor K. Redman it was resolved: "That Council approve the patio plan and design detailing submitted by the Sports Cafe, 102 King Street West, as outlined in the sketch plan dated June 30, 1994, subject to the owner using canvas sheeting to cover all chain link on the proposed fencing." 3. FORFEITURE OF BINGO LICENSE COMMUNITY JUSTICE INITIATIVES OF WATERLOO REGION The Committee was in receipt of a report from J. Koppeser dated May 21, 1996 recommending that the above organization be penalized for holding a Bingo without the necessary license. Councillor M. Yantzi disclosed a pecuniary conflict of interest and abstained from all voting and discussion of the forfeiture of license issue as he is employed on a part-time basis by Community Justice Initiatives of Waterloo Region. FINANCE & ADMINISTRATION COMMITTEE MINUTES MAY 27, 1996 - 81 - CITY OF KITCHENER 3. FORFEITURE OF BINGO LICENSE COMMUNITY JUSTICE INITIATIVES OF WATERLOO REGION - CONT'D On a motion by Councillor K. Redman it was resolved: "That Community Justice Initiatives of Waterloo Region be required to forfeit a license for one bingo event during the next licensing period from September 1 to December 31, 1996." EXPENDITURE APPROVAL - DOWNTOWN CURBS AND SIDEWALKS The Committee was in receipt of a report and recommendation from D. Corks dated May 22, 1996 requesting approval for the construction of curbs and sidewalks along a portion of King Street. Mr. Corks explained that the sidewalks and curbs along King Street between Cedar and Eby are in a poor state of repair and reflect negatively on the Downtown. He noted that there are approximately 15 businesses in this area, and that the poor state of repair was mentioned by a prospective tenant looking at property in the Downtown. He also clarified that this project can be funded from the existing Downtown Revitalization Budget. On a motion by Councillor M. Yantzi it was resolved: "That the King Street East curbs and sidewalks, from Eby to Cedar Streets, be replaced or repaired where necessary in 1996 at a cost of approximately $37,000.00, with this amount to be taken from the Downtown Revitalization Budget." HOT WATER HEATER RENTALS/GAS RATES At the May 21, 1996 Council meeting, Councillor G. Lorentz requested discussion this date of the City's policy regarding increases in rates for hot water heater rentals and natural gas. In this regard the Committee was in receipt of a report from K. Bowman dated May 23, 1996 outlining the history of water heater rate increases. Councillor Lorentz focused on the issue of water heater rental rates and argued that Kitchener Utilities should not automatically increase it's rates on the basis of increases in the private sector. He pointed out that the municipality has no obligation to match private sector rates and is operating under a different set of business circumstances as the gas utility is owned by the citizens of Kitchener. He acknowledged that this argument would not be applicable to natural gas rates. Councillor Lorentz suggested that increasing the water heater rate could have a negative impact on the rental market, and that rates should be kept down in order to encourage natural gas consumption. He further suggested that an increase in the rental rate of 17 to 20% without any notice or explanation is inappropriate, and questioned how the City could reduce it's rental rates in this area. Mr. Kovacs clarified that the principles applying to natural gas rates are based on extensive investigation by the Ontario Energy Board, before which Union Gas must justify it's requests for rate increases. He suggested that Kitchener benefits by this rate adjustment process. As regards water heaters, Mr. Kovacs pointed out that Kitchener has the hardest water in Canada, and for this reason the existing program must be monitored continually. He also noted that rental rates are based on a 5 to 10 year pay-back target, and that the utility has recently introduced higher efficiency water heaters which are more expensive to maintain and repair. Mr. Kovacs argued that the recent increases referred to by Councillor Lorentz are reflective of the total cost of the program, particularly the maintenance component. He further suggested that increases are based on sound business principles and encouraged the Committee to respect these. Mr. Kovacs further advised that customers still prefer to pay a monthly rental rate as opposed to purchasing their owner water heater. HOT WATER HEATER RENTALS/GAS RATES - CONT'D He also noted that the rate increases are not jeopardizing the utility's market share and that customers are also provided with an installation allowance. In response to a question from FINANCE & ADMINISTRATION COMMITTEE MINUTES MAY 27, 1996 - 82 - CITY OF KITCHENER Councillor Ziegler, Mr. Bowman advised that the water tanks purchased by Kitchener Utilities are a special design and not available to the general public. He further noted that a conventional tank of this type would cost between $180 and $200, and that customers have the option of purchasing the tank at the depreciated cost. Councillor Wagner indicated his support for the direction taken by staff, noting that of the 4,189 customers, only 100 complaints were received, with the latter being satisfied once an explanation was given for the increase. Councillor Galloway cautioned against politicizing the rates of a business enterprise, and suggested that Kitchener Utilities continue to match industry rates. He added that any perception that the City is undercutting the private sector may jeopardize it's natural gas franchise. Councillor Weylie noted that she has received several complaints directed to her by staff, and Councillor Redman suggested that the key issue is one of customer relations, and in particular how customers are advised of future increases. Mr. Kovacs acknowledged that staff have not advised Council in the past of upcoming rate changes, but will do so in future. He also indicated that staff would investigate using a bill stuffer to advise of future increases. Councillor Ziegler also suggested that a rationale should be given for gas rate increases. Councillor Lorentz summarized that he had brought the issue forward based on complaints he received from constituents and offered the opinion that a 20% rate increase as regards water heater rental is inappropriate. He reiterated his earlier comment that rental rates should be set at a level to encourage natural gas use. Moved by Councillor Jake Smola "That as regards future rate increases for natural gas, the rental of gas water heaters, and any other related charges, Kitchener Utilities is to advise it's customers of the increase and the rationale for same in advance of the effective date." Councillor Wagner added that all City departments should be aware of the need to communicate effectively with the public. He suggested that this occurrence reinforces the need for a Communications Officer, as previously discussed by Council, and suggested that creation of this position should be re-visited as part of the 1997 budget. Councillor Vrbanovic argued that the Utilities Division already has a person responsible for customer relations, and that this issue could have been handled at the departmental level. Mayor R. Christy entered the meeting at this time. The motion by Councillor Jake Smola to direct staff regarding future rate increases was voted on and CARRIED. MUNICIPALITY LIABILITY SETTLEMENTS The Committee was in receipt of correspondence from the City of Thunder Bay dated May 7, 1996 which includes a sample resolution for consideration by Kitchener Council. They were also in receipt of a contrary submission from Councillor J. Ziegler previously circulated with the May 23, 1996 Regional Administration and Finance Committee Agenda. Committee members were also in receipt this date of the resolution arising from the May 23, 1996 meeting of the Regional Committee. Vice-Chair T. Galloway assumed the Chair for discussion of this item. Councillor J. Ziegler put forward a motion incorporating the substance of the resolution approved by the Regional Administration and Finance Committee on May 23, 1996. Councillor Ziegler then spoke to the motion and suggested that municipal governments should not be exempt from the risk of liability for a standard of care that everyone else in the MUNICIPALITY LIABILITY SETTLEMENTS - CONT'D community must adhere to. He further suggested that municipalities should pay premiums only for their specific liabilities and should request the elimination of joint and several liabilities for damages. Mr. Shivas indicated his support of the intent expressed in the motion. Councillor Ziegler amended his previous motion so as to request that municipalities only be liable severally for damage claims, and that the resolution be circulated to the Association of FINANCE & ADMINISTRATION COMMITTEE MINUTES MAY 27, 1996 - 83 - CITY OF KITCHENER 10. 11. Municipalities of Ontario (AMO). Mr. McKay noted that liability is one of the items on an upcoming AMO agenda and the Association is requesting speakers. He indicated his willingness to arrange for Councillor Ziegler to attend and speak to the issue. The following motion was then voted on, as amended. On a motion by Councillor J. Ziegler it was resolved: "That the City of Kitchener urges the Province of Ontario, during it's review of the Municipal Act, to grant reasonable statutory protection to Ontario municipalities from unreasonable liability claims, and ensure that municipalities have only several liability for damages, and further, That this resolution be forwarded to the Association of Municipalities of Ontario as well as to local MPP's with the request that they present Kitchener Council's concerns to the Minister of Municipal Affairs and Housing." Councillor J. Ziegler then assumed the Chair. 1997 PRO FORMA BUDGET Mr. McKay indicated that he had discussed the Pro Forma budget with P. Houston and that subject to concurrence by the Commissioner of Finance, the Pro Forma could be presented at the June 24 Finance and Administration Committee Meeting as part of an abbreviated agenda. SURPLUS CITY LANDS The Committee was in receipt of a report and recommendation from G. Anderson dated May 23, 1996 involving City lands in proximity to Gateway Park Drive. On a motion by Councillor G. Lorentz it was resolved: "That the vacant parcel of land legally described as Part of Blocks 13 & 14 Registered Plan 1745 be declared surplus to the City's needs for the purpose of an underground easement for storm water, and further, That the City's Land Purchasing Officer be directed to negotiate a grant of easement with the abutting owner, with the offer to purchase the easement to be presented to Council for acceptance." OTHER BUSINESS Councillor Yantzi pointed out that there are still problems with sound levels in the Council Chamber gallery and members of the public often have difficulty hearing discussions. He questioned whether the audio system should be revisited and whether additional microphones or lapel mikes could be purchased. Councillor Ziegler suggested that the Council mikes should have the same on/off feature as the staff mikes. Councillor Lorentz stated that he is not prepared to spend more money on the Council Chamber and suggested that the problem could be rectified if members of Council would speak directly into the microphone. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, June 10, 1996. ADJOURNMENT On motion, the meeting adjourned at 11.15 a.m. FINANCE & ADMINISTRATION COMMITTEE MINUTES MAY 27, 1996 - 84 - CITY OF KITCHENER G. Sosnoski Manager of Corporate Records/Assistant City Clerk