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HomeMy WebLinkAboutFinance & Admin - 1996-10-21FAC\1996-10-21 OCTOBER 21, 1996 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date commencing at 10.10 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 M. Yantzi and C. Weylie. Others present: Mrs. J. Koppeser, Ms. R. Upfold, Ms. D. Arnold, Messrs. J. Gazzola, T. O'Brien, L. Proulx, T. Clancy, R. W. Pritchard, K. Tribby, J. Shivas, D. Paterson, J. Witmer and G. Sosnoski 1. HIRING OF TRADESPERSON - FACILITIES MANAGEMENT The Committee was in receipt of a report and recommendation from L. Proulx dated September 19, 1996 requesting a technician to perform preventative maintenance on the City Hall building and other City facilities. Mr. Proulx explained that preventative maintenance is required to ensure that machinery reaches or exceeds it's life expectancy. He noted that the City Hall contains $8,000,000.00 worth of equipment with a 20 - 25 year life expectancy, which can be reduced by as much as five years if not properly maintained. Mr. Proulx pointed out that he has tried to perform the required maintenance with the existing staff; however, an unreasonable number of work orders have accumulated and this is no longer feasible. He also added that funds to offset the cost of the additional staff person have been found in the Facilities Management budget. In response to a further question, Mr. Proulx clarified that this position would not be involved in preventative maintenance for the Fire Halls, Community Centres or the Auditorium Complex. On a motion by T. Galloway, it was resolved: "That the City hire a tradesman to perform preventative maintenance for City Hall and other City facilities, as outlined in the report of L. Proulx dated September 19, 1996." 2. BLOCKLINE TOURNAMENT SPORTSPARK The Committee was in receipt of a joint report from R. Wyatt and T. O'Brien dated October 16, 1996 requesting pre-budget approval of budgeted 1997 construction funds. Mr. O'Brien advised that if funding is approved for 1996, the Sportspark will be open for play in 1997, with one field available for night play in the course of the year. If funding is not approved, construction will be delayed until July or August of 1997 for a 1998 Sportspark opening. Mr. O'Brien added that earlier construction will allow the City to attract tournament revenue in 1997 as opposed to waiting until 1998. Councillor Wagner enquired whether there are longer term plans to light additional fields, and Mr. O'Brien replied in the affirmative, indicating that the third field will be lit with completion of the Blockline road extension. Mr. Gazzola commented that generally it is bad practice to advance funds in the way requested; however, in this instance net savings have been identified and there appears to be enough benefit to merit the advance. On a motion by Councillor M. Wagner, it was resolved: "That Council give pre-budget approval for the expenditure, in 1996, of $100,000.00 from the 1997 budgeted allocation for Major Park Development in order to allow the installation of sports lighting at the Blockline Sportspark in the Fall of 1996." FINANCE & ADMINISTRATION COMMITTEE MINUTES OCTOBER 21, 1996 - 127 - CITY OF KITCHENER VICTORIA PARK LIGHTING The Committee was in receipt of a report and recommendation from R. Wyatt dated October 15, 1996 requesting pre-budget approval of capital funds for the purchase and installation of lighting in Victoria Park. On a motion by Councillor M. Yantzi, it was resolved: "That Council give pre-budget approval for the expenditure, in 1996, of $30,000.00 from the 1997 budgeted allocation of $70,000.00 in index number 679605 of the Parks and Recreation Department capital budget to facilitate the 1996 purchase and installation of 17 new lighting poles, bases and wiring in Victoria Park, plus the additional purchase of 3 spare poles." LOT MAINTENANCE BY-LAW - 530 CHARLES STREET EAST The Committee was in receipt of Planning and Development Department report number PD96/100 recommending enacting of a cleanup by-law in the event of non-compliance by the property owner. On a motion by Mayor R. Christy it was resolved: "That the property owner be notified that City Council will consider a by-law at it's October 28, 1996 meeting authorizing the removal of discarded vehicles and waste material from 530 Charles Street East, at the owner's expense, if this has not been done by the owner on or before November 8, 1996." BINGO STATISTICS - 1995/1996 The Committee was in receipt of a summary report from J. Koppeser dated October 10, 1996 outlining comparative figures for the periods January - June of 1995 and 1996, and the report was accepted as information. Councillor Lorentz drew the Committee's attention to the amount of revenue at issue and reminded of Council's earlier decision to voice it's objection to the location of a charity casino in the municipality. He suggested that the revenues outlined in the report will no longer be in the municipality if such a casino is located elsewhere in the Region. Councillor John Smola reminded Councillor Lorentz that the City's position was to urge the Province to retain the existing system of charity bingos and Councillor Wagner further reminded that another related and important issue involved the Province's plans to locate video lottery terminals in charitable casinos. WATER SERVICE LEAKS - MISTY CRESCENT Councillor J. Ziegler, admitted, as a late item, a report and recommendation from Councillor Jake Smola dated October 21, 1996 dealing with water service leaks in the Emerald Hills Estates sub- division. Councillor Smola's report recommends that Council grant compensation to the owners of 458, 477 and 481 Misty Crescent, patch asphalt driveways damaged during the course of repairs, and accept responsibility for all future water service valve repairs on Misty Crescent up to one meter on the homeowner's side of the valve. The latter is to be retroactive to September 15, 1996. In addition Councillor Smola has suggested that the City undertake to complete a leak detection survey on Misty Crescent each year. In addition the Committee was in receipt of copies of three invoices submitted for the properties at 458, 477 and 481 Misty Crescent. Councillor Jake Smola referred to his report, noting that leaks have occurred on both the City and homeowner sides of the service valve. Councillor Smola referred to a diagram of a water WATER SERVICE LEAKS - MISTY CRESCENT - CONT'D service valve, noting that of the seven repairs that have taken place to date, the last five were FINANCE & ADMINISTRATION COMMITTEE MINUTES OCTOBER 21, 1996 - 128 - CITY OF KITCHENER inspected specifically for blocking which is to be inserted under the valve at the time of installation, and in all five cases there was no block present. He pointed out that the leaks were almost evenly split between the City and homeowners sides of the valve, noting that to date there have been four on the City's side and six on the homeowners side. He suggested that this points to the likelihood that the workmanship is of equal quality on both sides and that the common denominator appears to be the absence of blocking under the valve. Councillor Smola advised that in view of the fact the City sets the standards for water service valves and retains an engineering consultant to act on it's behalf to ensure that these standards are met, and that the City does a visual inspection of the final valve connection on City property, the municipality should therefore pay for any homeowner repair costs in this regard. Councillor Ziegler suggested that the City should be compensating the homeowners but should not be doing the actual repairs. Mayor Christy enquired whether staff have reviewed the recommendations and report put forward by Councillor Jake Smola, and Councillor Smola advised that his report was circulated. He also advised that he had met on October 19 with the residents effected and has also met with the City's Legal Department to discuss compensation payments to homeowners, as well as the possibility of the City seeking compensation from a third party. Councillor Redman questioned whether Management Committee had been given an opportunity to review the report, and Councillor Ziegler suggested that the recommendation could be adopted in principal, subject to Management Committee comment prior to the October 28, 1996 Council meeting. Councillor Jake Smola suggested that there is some urgency attached to the recommendation, as winter is setting in and repairs should be made before the frost. He referred to one homeowner who is currently receiving water through a hose attached to a neighbours external faucet. Mayor Christy suggested that the first priority is to repair the valves, and that the issue of compensation can be discussed later. Councillor Redman questioned why the City would not pursue the engineering consultant on the assumption that the inspection was not properly conducted. Councillor Jake Smola responded that it is questionable whether discussion of pursuing the consultant should take place at this time due to uncertainty over whether the final configuration is the responsibility of the builder, the developer or the engineering consultant. He offered the opinion that evidence seems to indicate the concrete block were not put in place during the initial installation. Councillor Smola also indicated that he is hoping for cooperation from the parties involved in development of the subdivision, and suggested it may be appropriate to form a pool of money, from contributions of the parties responsible, which can be drawn on by homeowners as repairs as required. He also suggested that the City should seek compensation on behalf of all the effected homeowners. Councillor Galloway indicated his support of the recommendations put forward by Councillor Jake Smola. He further suggested that Management Committee should consider how the City will in future hold engineering consultants responsible for errors and omissions, whether it be through letter of credit or some other form of security. In this regard he referred to a problematic intersection developed on the basis of advice given by a transportation consultant. Councillor Galloway also pointed out that in his view, individual homeowners should not be required to approach a consultant for compensation. Councillor Lorentz offered the opinion that the defective valves should be repaired as soon as possible, irregardless of who is responsible. He also suggested that the City should be responsible for any leaks which occur around the valve box, irregardless of which side of the box the leak occurs on. Councillor Lorentz also expressed concern over the precedent which would be set were the City to assume responsibility for conducting the annual leak survey referred to in Councillor Smola's report. Councillor Jake Smola noted that the four repairs conducted by the City to date have cost approximately $1,500.00 each; whereas, the three conducted by private firms averaged $1,429.00 each, with these costs not including the replacement of asphalt. He encouraged the Committee to consider the most cost effective way of carrying out the necessary repairs. Councillor Vrbanovic suggested that the recommendation of Councillor Smola should be reworded to indicate that the City would be responsible for the costs of all future repairs, irrespective of whether they are done by the City or a private contractor. Councillor Ziegler reminded the Committee that there are potentially 84 residents involved in this area. He WATER SERVICE LEAKS - MISTY CRESCENT - CONT'D suggested that the City should be responsible for the cost of repairs at this time, but questioned assuming responsibility for future repairs. He also stressed that the City should pay based on invoices received and not through unilateral compensation. Mayor Christy suggested that the homeowners FINANCE & ADMINISTRATION COMMITTEE MINUTES OCTOBER 21, 1996 - 129 - CITY OF KITCHENER should be encouraged to make repairs as soon as possible, then put forward the following deferral motion. Moved by Mayor R. Christy "That consideration of the recommendations of Councillor Jake Smola concerning the repair of water service valves on Misty Crescent be deferred and referred to the October 28, 1996 Council meeting pending consideration by Management Committee and receipt of a staff report." Councillor Galloway advised that he does not support referral of the entire issue, and suggested that the Committee recommend now on compensation for repairs completed to date. Mr. Gazzola advised that Management Committee has not had an opportunity to discuss the issues raised in Councillor Smola's report, and that a number of outstanding questions have yet to be answered. He asked for the opportunity to examine the issue from all sides. Councillor Jake Smola responded that he initially brought the issue up in June of this year, and waited approximately three months for a Public Works staff report. He pointed out that his recommendations are a direct result of these reports and his discussion with the residents effected. He also noted that the report from Mr. Bailey in this regard was inconclusive. Mr. Gazzola argued that allowing Management Committee to review the situation would not hold up the process, as any recommendation made this date would have to be ratified by Council on October 28, at which time a further staff report would be available. Councillor Jake Smola indicated his preference that the issue be dealt with prior to October 28. Councillor Redman pointed out that the repairs at issue have already taken place, noting that the pending repairs are the main issue, and suggested that it would not be inappropriate to allow staff an opportunity for further consideration. Mr. Kovacs referred to an earlier report submitted to the Public Works and Transportation Committee, in which there were no conclusions drawn as to who is to blame for the situation. He noted that the engineering consultant confirmed the installation to City standards, and uncertainty remains as to whether the homebuilder's plumber altered the blocking arrangement or removed the blocks at the time the private water line was connected to the City's valve. He referred to a number of technical recommendations in the report which were subsequently adopted by Council. Mr. Kovacs added that the issue of compensation was not discussed at that time, but acknowledged that the repairs should be done now and the issue of compensation considered at a later date. The Committee then voted on the motion by Mayor R. Christy to defer consideration of the water service leaks on Misty Crescent to the October 28 meeting. A recorded vote was requested, and the motion was subsequently Carried. In Favour: Mayor R. Christy, Councillors G. Lorentz, K. Redman, J. Ziegler, M. Yantzi and M. Wagner Contra: Councillors J. Smola, Jake Smola, B. Vrbanovic, T. Galloway and C. Weylie Councillor Vrbanovic suggested that the Committee could direct staff to perform outstanding work on three additional properties, and Councillor Ziegler suggested that such a motion would be out of order as the entire issue has been referred to the October 28, 1996 Council meeting. Councillor Jake Smola argued that one week of additional water damage can be extensive and could effect City property as well. He stated that he would be advising homeowners not to fix the water service valve pending Councils decision on October 28. Councillor Ziegler suggested that if any repairs are completed prior to the 28th meeting that the City be advised so that it can WATER SERVICE LEAKS - MISTY CRESCENT - CONT'D inspect the conditions and the remedial work. Mr. Kovacs responded that this would be useful information, but would not prove liability. Councillor Weylie also asked that Management Committee discuss the appropriateness of the City using the same engineering consultant as the developer and the homebuilder. 7. NEXT MEETING FINANCE & ADMINISTRATION COMMITTEE MINUTES OCTOBER 21, 1996 - 130 - CITY OF KITCHENER The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, November 4, 1996. ADJOURNMENT On motion, the meeting adjourned at 11.10 a.m. G. Sosnoski Manager of Corporate Records/Assistant City Clerk