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HomeMy WebLinkAboutFinance & Admin - 1996-09-09FAC\1996-09-09 SEPTEMBER 9, 1996 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date commencing at 9:50 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 and M. Yantzi. Councillor C. Weylie was in attendance for part of the meeting. Others present: Mrs. J. Koppeser, Messrs. R. W. Pritchard (Acting Chief Administrative Officer), J. Gazzola, O. den Ouden, J. Shivas, S. Gyorffy, T. Clancy, D. Anderson, T. McCabe, D. Paterson, L. F. Parkhouse, J. Witmer and G. Sosnoski. 1. SUMP PUMP COST SHARING - 239 ERINBROOK DRIVE Consideration of the owner's request that the City pay 50% of the total cost of purchase and installation was referred to the meeting this date pending receipt of additional information from staff. They were also in receipt of a memorandum from Councillor T. Galloway dated July 26, 1996 outlining the circumstances surrounding the request. Mr. Shivas advised that he had spoken with Mr. Witmer, who is in favour of the cost sharing as the builder is no longer in business. Mr. Shivas advised that as the City's lawyer he is not in favour of such action, but advised that if Council decides to proceed in granting the request this should be done without prejudice or precedent. Councillor T. Galloway put forward a motion to award a grant comprising 50% of the cost of purchase and installation of a sump pump at 239 Erinbrook Drive, with the City approaching the soils engineering firm for it's consideration of the expense. Councillor Lorentz questioned whether the City would have any other connection responsibilities in this regard and Councillor Galloway replied that the motion refers to installation only; however, the homeowner can choose to participate in a direct connection on the same basis as any other resident. Councillor Galloway amended his motion to indicate that the City would only pay its percentage upon receipt of a paid invoice from the property owner. The motion, as amended, was then voted on. On a motion by Councillor T. Galloway, it was resolved "That a grant, without prejudice or precedent, comprising 50% of the cost of purchasing and installing a sump pump at 239 Erinbrook Drive be awarded to Mr. Barry Gascon, with the City's portion to be paid following installation and receipt of a paid invoice, and further, That given the circumstances, the City approach the soils engineering (Peto-MacCallum) for their consideration of this additional expense." MUNICIPAL DEVELOPMENT CHARGE GRANT - 359 ALICE AVENUE (KITCHENER HOUSING INC.) Ms. S. Frenette, General Manager, Kitchener Housing Inc.(KHI), appeared to request a reduced development charge assessment for the subject property and to suggest an amendment to the Development Charge By-law. The Committee was also in receipt of a written submission from Ms. Frenette dated September 3, 1996. Ms. Frenette pointed out that the former hydro transformer station at 359 Alice Avenue is being converted into a small residential unit having a total floor space of approximately 550 square feet and suitable for a one-person household. She suggested that based on the size of the development, it should be assessed at the apartment rather than the single detached rate and requested a grant for the difference totalling $2,285.00. Ms. Frenette also suggested that the City's Development Charge By-law be amended to reflect that the apartment rather than the single detached residential rate would apply to developments having a total floor space of less than 750 square feet. FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 9, 1996 -111 - CITY OF KITCHENER MUNICIPAL DEVELOPMENT CHARGE GRANT - 359 ALICE AVENUE (KITCHENER HOUSING INC.) - CONT'D Councillor Jake Smola asked whether there was room for expansion on the site and Ms. Frenette answered in the affirmative, adding that KHI has no intention of adding to the existing building. Moved by Councillor M. Wagner it was resolved: "That the City of Kitchener approve a grant, without prejudice or precedent, to Kitchener Housing Inc. in the amount of $2285.00, being the difference between the City's development charge apartment rate and single detached rate relative to the conversion of the former hydro transformer station at 359 Alice Avenue to a small residential unit." Mr. Shivas pointed out that the suggested amendment to the Development Charge By-law requires statutory notice, and referred to problems which may be created as a result of the Province freezing Development Charge By-laws pending a review. He suggested that it may be possible however to decrease the rates as opposed to increasing them, and indicated he would investigate this further. Mr. McCabe added that the request meets the intent of the Development Charge By-law which is based on occupancy load and demand for services and stressed that if Council agrees to the request it must be in the form of a grant. He further suggested that consideration of the proposed amendment should be referred to the City's Development Charge Committee when the new By-law is considered in the Fall of this year. Councillor Galloway pointed out that similar arguments have been put forward by developers in the past and have not been accepted by Council, and on this basis he questioned why the City would make an exception for KHI. Mr. McCabe responded that Council has in fact given development charge grants in the past and referred to a recent grant involving a land severance. Councillor Galloway suggested that it would be more appropriate to amend the By-law then grant the request rather than awarding a grant in conjunction with the current By-law. Councillor Jake Smola suggested, as a friendly amendment, that in the event KHI puts an addition on the building in future, it would be required to repay the amount of any grant which may be awarded as this time. Councillor Wagner declined to accept the suggestion of Councillor Jake Smola as a friendly amendment. The original motion was then voted on and CARRIED. On a motion by Councillor M. Yantzi it was resolved: "That the City's Development Charge Committee be asked to evaluate and report on the suggestion from Kitchener Housing Inc. that the Development Charge By-law be amended so as to assess residential dwellings of less than 750 square feet at the apartment development charge rate rather than the single detached rate." 3. TRANSFER OF SURPLUS LANDS - CHARLES STREET EAST The Committee was in receipt of a report from G. Anderson dated August 1, 1996 recommending that the subject lands be declared surplus and be transferred to the Region of Waterloo for road widening purposes. On a motion by Councillor G. Lorentz, it was resolved: "That Part of Lot 63, Registered Plan 303, designated as Part 4, Plan 58R-1541 on Charles Street East intersecting with Cameron Street, be declared surplus to the City's needs and be transferred to the Regional Municipality of Waterloo for a road widening. Councillor C. Weylie entered the meeting as this time. 4. CAPITAL FORECAST - ORLON BUS OVERHAULS The Committee was in receipt of a report and recommendation from B. Gulliver dated August 29, 1996 concerning additional capital expenditures required as a result of accelerated deterioration of FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 9, 1996 -112- CITY OF KITCHENER internal frames on 1989 and 1990 Orion buses. Councillor Galloway noted that the staff recommendation appears to imply pre-approval of the amounts in the years shown, and Mr. Pritchard clarified that the intent is to add the amounts to the Capital Forecast, subject to Council approval of the Capital Budget in each individual year. Moved by Councillor T. Galloway "That the following amounts be added to the Capital Forecast in the years shown relative to a three year plan to overhaul twenty-one 1989 and 1990 Orion bus chassis: $160,000.00 in the year 2000; #142,000.00 in 2001; and, $124,000.00 in 2002; and further, That the above be highlighted for consideration during the Budget process." Councillor Wagner enquired whether any Orion buses purchased after 1990 are affected and expressed concern over the apparent design flaws and the need to repair the vehicles so early in their life. Mr. Anderson replied that the problem affects only 1989 and 1990 vehicles, and that in regard to possible safety concerns advised that a complete analysis is done each year. Councillor Lorentz enquired whether the City has anything in writing from the manufacturer concerning the life expectancy of the vehicles, and Mr. Anderson replied that they have a twelve year life span, but that the manufacturer has indicated they are not responsible outside of the warranty period, which has already lapsed. Councillor Lorentz enquired whether the Province, which jointly funded the purchase, has been informed and Mr. Anderson replied in the affirmative. Councillor Wagner questioned whether there was an opportunity for a lawsuit given that approximately the 1/2 million dollars in expenditures are required to ensure the vehicles are safe. Mr. Shivas replied that there is always opportunity for a lawsuit in such such instances; however, he stressed the need to affect repairs and deal with the safety issue before considering possible legal action. Councillor Wagner suggested that the City should not accept the manufacturer's response but should pursue the matter further. Mr. Pritchard pointed out that this is a Province wide problem affecting the Provincial government, and Mr. Gazzola added that a similar problem occurred a number of years ago with buses produced by Flyer Industries. The motion by Councillor Galloway to add the projected expenditures to the capital forecast and highlight same for budget consideration was voted on and Carried. PERMANENT CHARITABLE CASINO SITE Consideration of this item was deferred at the August 6, 1996 meeting, and the Committee was in receipt of a report from J. Koppeser dated August 1, 1996 concerning selection of casino sites by the Province. Moved by Mayor R. Christy "That the Provincial government be advised that the City of Kitchener is not interested in having a permanent charitable casino located in this municipality." Mayor Christy stressed the importance of gaming revenues to local charities and the need for diverse locations within the community. Councillor Lorentz indicated his opposition to the motion, arguing that if a permanent site is selected within the Region it should be within Kitchener, which is the largest municipality. He indicated that the City should express its interest in having a permanent charitable casino in Kitchener. Councillor Galloway noted that the proliferation of gambling in general is questionable, but given the fact that the Province will likely continue to allow gambling, Council would be irresponsible in not requesting such a facility in Kitchener based on the earnings of local charities. He pointed out that a single casino would reduce the proliferation of locations, noting that in Kitchener there are seven Monte Carlo sites PERMANENT CHARITABLE CASINO SITE - CONT'D operating on a regular basis. Councillor Yantzi indicated his support for the motion, adding that the present, less permanent, arrangement is adequate. He urged Council not to become involved in what he characterized as a phoney competition, pointing out that the latest Provincial initiative in this area is part of a larger strategy to stimulate interest in gambling at the local level. Councillor Wagner advised that he strongly supports the motion, and expressed amazement that the Provincial government would impose charitable casinos on municipalities, an action that further indicates its willingness to oppose local wishes. He argued that charitable casinos are an FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 9, 1996 -113- CITY OF KITCHENER insidious step toward wide open gambling, and referred to the potential problem of gambling addiction. Councillor Wagner also argued that Provincial projections on casino revenues are inflated, and expressed concern over the introduction of video lottery terminals into charitable casinos. Councillor John Smola pointed out that a permanent site would create a monopoly, and suggested that the present businesses which would be affected by such a casino should be consulted first regarding possible changes. Mayor Christy argued that if enough municipalities oppose this initiative, the Province will have to look seriously at the existing arrangement. He suggested that the foundation of the economy should not be gambling, and that the diversity of locations has benefits. Councillor Redman suggested that the motion before the Committee is premature, and advised that she does not feel enough information has been presented to make an informed decision. Councillor Lorentz pointed out that it is clear that 50 locations will be chosen by the Province irregardless of local wishes, and that Kitchener would be remiss in not expressing interest. Councillor Vrbanovic read a motion supporting the status quo which he advised he would be prepared to bring forward should the motion before the Committee at this time be defeated. The motion by Mayor R. Christy opposing a permanent charitable casino in Kitchener was voted on and Carried on a recorded vote. In Favour: Mayor R. Christy, Councillors K. Redman, M. Wagner, M. Yantzi, Jake Smola and C. Weylie Contra: Councillors G. Lorentz, B. Vrbanovic, John Smola, T. Galloway and J. Ziegler On a motion by Councillor B. Vrbanovic, it was resolved: "That notwithstanding the concern of Kitchener City Council over the proliferation of all forms of gambling within the Province, Council encourages the Province to continue licensing specific private locations as at present rather than developing permanent charitable casino sites; however, should the Province proceed with establishing permanent sites, the City of Kitchener would like an opportunity to comment prior to the Province enacting any required legislation." YEAR END BINGO REPORTS The Committee was in receipt of a report and recommendation from J. Koppeser and L. Parkhouse dated August 29, 1996 concerning outstanding reports and suggested penalties for late filing. YEAR END BINGO REPORTS - CONT'D On a motion by Councillor M. Yantzi it was resolved: "That if the year end bingo reports for the Southwest Optimist Club, Northstar Youth Organization, Hebrew Day School and Beth Jacob Synagogue are not received by Friday, October 4, 1996, Licensing Staff be authorized to cancel a minimum of two events from their existing bingo licence and thereafter continue to cancel event licences until all of the outstanding paperwork has been filed; and further, FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 9, 1996 -114- CITY OF KITCHENER That the Consolidated Bingo Regulations be amended by adding Section #12 which will read - 'that Licensing Staff be allowed to refuse or cancel all existing bingo licences if the required fiscal year end reports have not been filed with the Licence Office within six months of a group's fiscal year end."' APPOINTMENTS - KITCHENER SAFE CITY COMMITTEE The Committee was in receipt of a report from L. Parkhouse dated August 28, 1996 concerning appointments to fill two recent vacancies. Nominations were received for each of the four applicants; namely, Mr. Kuldip Singh Bachher; Mr. Emilio de Leon; Ms. Susan Dube; and, Mr. Alan W. Richardson. A ballot was then conducted in accordance with the procedure used by City Council during the Annual Appointment Meeting. The Clerk announced how each Committee member had voted and indicated the names of the two candidates who received majority votes. On a motion by Councillor M. Yantzi it was resolved: "That Ms. Susan Dube and Mr. Alan W. Richardson be appointed to the Kitchener Safe City Committee for a period ending November 30, 1996." STAFF CONFLICT OF INTEREST POLICY Mr. Pritchard advised that Management Committee has formed a sub-committee to work on development of a code of ethics, noting that based on input from other municipalities a code of ethics and conflict of interest policy are one in the same. He further advised that a final report is anticipated by October of this year. PROPOSED MUNICIPAL ACT AMENDMENTS The Committee was in receipt of a covering report from R. W. Pritchard dated September 5, 1996 and individual reports on pension reform, municipal and election reform, and debt and investment reform from D. Paterson, R. W. Pritchard and J. Gazzola respectively. Discussion took place on the recommendations of the Who Does What Panel (Sub-Panel on Municipal Administration) and the Committee voted separately on the City's position relative to selected recommendations. Councillor Vrbanovic expressed disagreement over the revised date for the election, noting that by holding the municipal elections on the Thursday after Thanksgiving, people would be inconvenienced by last minute campaigning over the Thanksgiving holiday period. Councillor Wagner referred to the proposed elimination of tax-free allowances for local government representatives and Mr. Pritchard advised that the staff reports only deal with recommendations 1 - 36, and that recommendations 37 - 41 will be considered by the Province at a later date, likely in 1997. PROPOSED MUNICIPAL ACT AMENDMENTS - CONT'D Councillor Redman expressed concern over recommendation #5 which would allow local government employees to obtain a leave of absence not only to run for local office, which is currently the case, but also for the term they are in office. She also advised that she cannot philosophically support recommendation #6 which states that elected bodies will be permitted to place a question on the ballot without Ontario Municipal Board approval and that a mechanism will be put in place to permit referenda cost recovery. She specifically expressed concern over the time implications of referenda, the cost of these, (which would accrue to tax payers irrespective of the level of government responsible for funding the referenda) and the likelihood that this would result in less responsible decision making by local politicians. Councillor Ziegler disagreed with the concerns raised by Councillor Redman, noting that there should be more opportunity for public input. In response to a question from Councillor Wagner, Mr. Pritchard advised that the provision of referenda cost recovery would relate to the City conducting a referenda on behalf of a School Board or Hydro Commission, in which case the municipality would be reimbursed by the FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 9, 1996 -115- CITY OF KITCHENER Board/Commission. Mr. Pritchard further advised that a report recently considered by the Province seems to suggest that a question could be put to the public outside of the election process. Though the Provincial government would bear the cost of any such question, it would create serious staffing problems and have a cost implication. Councillor Redman added that the proliferation of questions would be a concern, as the cost of any referenda would in one form or another accrue to the taxpayer. Councillor Yantzi offered the opinion that in light of Iow voter turnout, it is possible the referenda could be used by special interest groups to further their objectives, and questioned whether this initiative is consistent with the stated objectives of the current Provincial government. On a motion by Councillor K. Redman it was resolved: "That the City Clerk advise the Minister of Municipal Affairs of the following concerns of Kitchener City Council with regard to the election related recommendations of the Province's Who Does What Panel (Sub-Panel on Municipal Administration): a) Recommendation #2 - that Municipal Government voting day be the Thursday prior to Thanksgiving (October 10 in 1997) rather than the Thursday after, so that the final days of campaigning do not conflict with the Thanksgiving holiday period. b) Recommendation #5 - that employees of local governments should not be granted limited leave of absence to seek and hold local elected office; c) Recommendation #6 - that referenda should not be used as a means of governing, as this may result in a less responsible approach to decision making by municipal politicians. Further, Kitchener has concerns over the costs of such referenda since these would accrue to the taxpayer irregardless of the level of government responsible for referenda funding, and given the possibility of referenda questions being put to the public other than at the time of Municipal Elections; d) Recommendation #13 - that Voters Lists continue to be posted in conspicuous public places as at present, rather that be available only for viewing in the office of the City Clerk as is proposed; e) Recommendation #14 - that the registration and nomination processes remain separate as under the existing Municipal Elections Act, since the panel recommendation to register and nominate at one time (after January 1) on a combined form would result in a candidate making a declaration of qualification prior to the commencement of the qualifying period. Also, the candidates should continue to be required to obtain the signatures of qualified electors as part of the nomination process; and further, 10. PROPOSED MUNICIPAL ACT AMENDMENTS - CONT'D That the above concerns also be conveyed to the Association of Municipalities of Ontario." Councillor Weylie asked for the names of the individuals who sat on the Municipal Administration Sub-Panel and Mr. Pritchard indicated that he would obtain and circulate these to members of Council. COMPUTER-AIDED SALT SPREADING DEVICES The Committee was in receipt of a report and recommendation from J. Gazzola dated September 5, 1996 concerning technology which had been tested during the past winter season with projected savings of approximately $160,000.00 per year. Councillor Jake Smola expressed concern over the impact of adding these devices to future tenders, and the ability of some manufacturers to bid. Mr. Gazzola replied that in his estimation this additional feature should not be restrictive. FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 9, 1996 -116- CITY OF KITCHENER 11. On a motion by Councillor G. Lorentz it was resolved: "That tenders be called for the installation of computer aided salt spreading devices on seven vehicles presently used by the Public Works Department for winter control activities; and further, That in the future when tenders are called for the acquisition of new vehicles, they be equipped with the same mechanism." Councillor Lorentz requested a follow-up report in the Spring of 1997 indicating the actual savings, and Mr. Gazzola advised that in the interim, the Public Works department will be making a complete presentation. AUTOMATED ORDER AND DELIVERY OF TAX CERTIFICATES The Committee was in receipt of a report from J. Gazzola dated September 4, 1996 and a report and recommendation from O. den Ouden dated May 16, 1996 concerning an automated service to provide tax certificates. Such service would be available 24 hours a day, seven days a week. Councillor Ziegler stressed that the new system should be voluntary and not totally replace manual issuance. Councillor Galloway enquired whether it was possible to put local improvements on the same certificate and combine the two City replies on a single form. Councillor Ziegler pointed out that the certificates each require different types of searches. Mr. Gazzola indicated he would investigate and report on the applicability of the system to local improvement certificates. On a motion by Councillor B. Vrbanovic it was resolved: "That the Commissioner of Finance be authorized to enter into a three year agreement with Synamics Inc. to provide automated order and delivery of tax certificates as proposed to the City of Kitchener by Synamics Inc. in their proposal dated February 14, 1996; and further, That the fee for this new service be $40.00 per certificate, and that effective October 1, 1996 the cost for the manual issuance of a certificate be increased from $15.00 to $20.00." 12. 13. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, September 23, 1996. ADJOURNMENT On motion, the meeting adjourned at 11.25 p.m. G. Sosnoski Manager of Corporate Records/Assistant City Clerk