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HomeMy WebLinkAboutFinance & Admin - 1996-12-09FAC\1996-12-09 DECEMBER 9, 1996 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date commencing at 10.05 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, C. Weylie and M. Yantzi. Others present: Ms. P. Houston, Ms. S. Frenette, Ms. L. Pasternak, Mrs. J. Koppeser, Messrs. J. Gazzola, T. McCabe, L. F. Parkhouse, J. Shivas, J. Witmer, T. Clancy, R. W. Pritchard, E. Kovacs and G. Sosnoski. 1. MONTE CARLO LICENSES Mr. Paul Mitchell appeared on behalf of Capital Casinos Rental Limited to request a change in how the City endorses Monte Carlo licence applications to the Province. Mr. Mitchell pointed out that the approval process can be inordinately lengthy given the 30-45 day approval period required by the Province and the time required to put an endorsement request before City Council. Mr. Mitchell suggested that Council delegate to licensing staff the authority to, if appropriate, endorse such applications the same day they are brought to City Hall. Mr. Mitchell also advised that he had planned to request endorsement of an application made on behalf of the Elmira Sugar Kings; however, the Province has not given it's approval and the endorsement is not required at this time. Mr. Mitchell also requested that Kitchener change it's current policy to allow charities from the Cities of Waterloo and Cambridge to hold Monte Carlo events in Kitchener. Councillor Lorentz questioned whether Mr. Mitchell had contacted the Province, and if they were prepared to shorten their approval time. He also questioned why outside municipalities should be allowed to hold events in Kitchener, and Mr. Mitchell replied that there are more opportunities in Kitchener due to the greater number of gaming halls. Mr. Mitchell provided background on the organization he represents noting that 25% of all proceeds are given to local charities which is almost twice that contributed by other similar organizations. He also advised that he tries, where possible, to stimulate the local economy by using local staff and halls. Councillor Wagner questioned why charities could not plan two months in advance for such events, and Mr. Mitchell replied that some do; however, in the event of a last minute cancellation, it becomes practically impossible to fill the venue given the current approval process and as a result the operator stands to lose money that has been paid on behalf of the charity. Mr. Parkhouse pointed out that gaming related requests are routinely placed on Council's Committee of the Whole agenda to speed the approval process. He further noted that staff would have no problem in endorsing requests which involve Kitchener charities running an event in the City, provided Council is prepared to delegate the authority. Mr. Parkhouse also pointed out that in some instances staff cannot recommend events, and these would continue to come before Council rather than having staff turn them down at the administrative level. He also advised that he has concerns with approvals by staff where the charities are not based in Kitchener. Mrs. Koppeser pointed out that only Council can exercise it's discretion concerning approvals for Regional charitable organizations. Councillor Wagner suggested retaining the current approval timing, noting that two weeks is not a lengthy interval and the only problems are likely to arise as a result of Council's summer schedule, of which charities are advised in advance. He also suggested that control should remain with Council. Councillor T. Galloway entered the meeting at this time. Councillor John Smola put forward a motion to delegate authority to staff for approval of routine Monte Carlo applications received from Kitchener Charities holding events in the City. He subsequently amended his motion to request that Council be informed of such staff decisions on a regular basis. Councillor Galloway suggested that such action will reduce the proliferation of gaming halls in Kitchener and encourage other municipalities to develop halls of their own. 1. MONTE CARLO LICENSES - CONT'D FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 9, 1996 - 146 - CITY OF KITCHENER On a motion by Councillor John Smola, it was resolved: "That the Manager of Licensing be delegated authority to endorse routine Monte Carlo licence applications where the application is from a Kitchener charity and the event is to be held at a Kitchener location, with all other Monte Carlo applications to be directed to Council for consideration; and further, That Council be kept informed, through a regular information item on the Finance and Administration Committee agenda, of the Monte Carlo licenses approved by staff." Mr. Parkhouse pointed out that if or when permanent casino halls come into effect, the City will not be able to control the use of Kitchener halls by charities based outside of the City. The Committee was advised that Mr. Leroy Soper, Alpine Air Purification, who was to have addressed the Committee this dated concerning City Hall air quality would not be attending, and the delegation was being referred to the January 13, 1997 meeting. 2. LICENSING CATEGORY - REFLEXOLOGISTS The Committee was in receipt of a report from J. Koppeser dated December 4, 1996 recommending no action on an earlier request from Mr. E. Jeanette Aubin that she be licensed under a category separate from massagists and body rub parlours. Council had previously requested that further consideration be given to her request prior to issuing a 1997 business licenses. Ms. Aubin was in attendance and advised the Committee that since her last appearance, she has found that there are no reflexologists on staff at licensed massage parlours as was previously indicated. She also pointed out that the Reflexology Association of Canada, a federally chartered non-profit organization, is currently working with the Provincial government in an attempt to obtain registration for practitioners. Councillor Vrbanovic indicated his sympathy for Ms. Aubin's situation, but pointed out that the category under which the practice of reflexology is described is dictated by the Municipal Act. He suggested that Ms. Aubin may wish to approach the Province through her local Member of Parliament and request that the definition of a body rub parlours in the Act be changed. Ms. Aubin stated that she is concerned over the fact that barbers and estheticians pay only $32.00 a year to be licensed, notwithstanding the fact that they touch the same number of pressure points as a reflexologist who is expected to pay a much greater fee. Mrs. Koppeser advised that she has not looked into the practices of estheticians, and is not sure what services they provide. Councillor Ziegler asked whether the City could request special legislation to separate reflexologists from other types of massage activities, and Mr. Shivas replied that though possible, the definition of "body rub" is all encompassing and would be problematic. He suggested that the best solution would be to have the Reflexology Association of Canada continue to work with the Province, as registration would result in exemption under the present legislation. 2. LICENSING CATEGORY - REFLEXOLOGISTS - CONT'D On a motion by Councillor B. Vrbanovic, it was resolved: FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 9, 1996 - 147 - CITY OF KITCHENER "That no action be taken at this time on the request of Ms. E. Jeanette Aubin dated September 24, 1996 for a review of the licensing category for Certified Reflexologists, who are presently licensed under the same category as Massagists and Body Rub Parlours; and, That the Reflexology Association of Canada be encouraged to pursue obtaining Provincial registration for Reflexologists as the preferred method of dealing with Ms. Aubin's concerns; and further, That staff forward a letter to the Ministry of Municipal Affairs requesting that they remove Reflexology from the Body Rub definition in the Municipal Act, with copies of said letter to the Association of Municipalities of Ontario, local M.P.P.'s and the Reflexology Association of Canada." APPOINTMENTS - DOWNTOWN IMPROVEMENT AREA BOARD OF MANAGEMENT/KITCHENER HOUSING INC. The Committee was in receipt of reports and recommendations from L. F. Parkhouse dated December 3, 1996 concerning endorsement of appointments for the above organizations. On a motion by Councillor B. Vrbanovic, it was resolved: "That Ms. Mary Drandzyk and Ms. Sherry Wolf be appointed to the Downtown Improvement Area Board of Management for a term expiring November 30, 1997, to complete the unexpired terms of Mr. Randy Jackson and Mr. Michael Lannan, both of whom have resigned." - and - "That Kitchener City Council approve the appointments of Miss Laura Kekanovich as a Community Director and Ms. Donna Billo as a Resident Director, on the Kitchener Housing Inc. - Board of Directors; and further, That each of these appointments shall be for term of three years expiring November 30, 1999." CHARITABLE CASINOS The Committee was in receipt of a report from J. Koppeser dated December 5, 1996 containing licensing staff comments on the charitable casinos proposed by the Province and the possible installation of video lottery terminals. They were also in receipt of a memorandum from the Downtown Development Team recommending that should Kitchener be selected as the site of a regional charitable casino, it be located outside the boundaries of Downtown Kitchener. Councillor Redman advised that she had requested the report based on her information that Kitchener is high on the list of municipalities to receive charitable casinos. Ms. Frenette conveyed the opinion of the Downtown Development Team, noting that a preliminary survey indicates a facility of this kind would not have the benefits for the Downtown one might expect. She pointed out that people coming Downtown to visit the casino would be there for a single purpose and there would be few spinoff benefits for other businesses. She also pointed out that there would be a huge impact on parking generally and free on-street parking in particular. CHARITABLE CASINOS- CONT'D Councillor K. Redman put forward a motion to the effect that should the Province select Kitchener as the site of a regional charitable casino, it will be located outside the boundaries of the Downtown. Councillor Yantzi pointed out that Guelph has already indicated it has no interest in a casino, and in effect is saying that it does not want to institutionalize charitable casinos in single locations. He questioned how the Province would respond if all area municipalities responded indicating that FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 9, 1996 - 148 - CITY OF KITCHENER they do not want charitable casinos. Councillor Yantzi advised that he does not support the motion, as he does not want casinos anywhere in the City. Councillor John Smola agreed with the sentiments expressed by Councillor Yantzi and pointed out that video lottery terminals, which would likely be installed in charitable casinos, were initially recommended to help the racetrack industry and there is no need for such terminals in Kitchener. He also pointed that at present various local halls and businesses generate local revenue which would gravitate to large casinos and thereby deprive these businesses. Councillor Lorentz suggested that in reality the City has very little say in whether a casino will be located in Kitchener, and that such a casino would likely deprive local businesses of charity gambling related revenues. However, he suggested that if such a casino is located outside of Kitchener, it may result in local charities approaching Council for additional grant funding to offset the loss of gambling revenue. Councillor Lorentz suggested that Kitchener is the logical location for such a casino, and the new owners of the King Value Centre may have purchased the building with an opportunity like this in mind. He clarified that charitable casinos are for community use only and are unlike other gambling institutions such as the one already in place in Windsor. Councillor Lorentz also offered the opinion that there will be spinoff benefits should a casino be located in the Downtown, and it should be emphasized that such casinos would be for charitable purposes only. Councillor Redman questioned whether there has been any public consultation regarding this Provincial initiative, and Mr. Parkhouse replied that he didn't know of any. He further pointed out that the intent of the legislation seems to indicate that video lottery terminals will be permitted in charitable casinos, and that bingo halls will not be affected. Councillor Vrbanovic suggested that the Province has made it clear it intends to establish charitable casinos in municipalities with or without local support. These will likely be established in locations which make the most business sense, with Kitchener being one of these areas. Councillor Vrbanovic stressed the importance of insuring that local charities have a place to operate from to generate revenue. He indicated that he does not personally like the idea of charitable casinos, but in not supporting the initiative under the circumstances Council may be doing a disservice to the community. Councillor Wagner pointed out that even if there is no large casino in Kitchener, charities will not be prohibited from holding fundraising events, and suggested that Kitchener should voice it's opposition to the Provincial initiative rather passively accepting whatever the Province dictates. He also suggested that the Province should be told that casinos are morally and ethically wrong. Mayor Christy agreed, stating that the politics of appeasement never works and that there is a need for Kitchener to be emphatic as to it's position on casinos and gambling. Mayor Christy offered the opinion that there is something wrong with any Province or community which makes gambling an integral part of it's economic strategy. He also pointed out that some local organizations have already voiced their concern over gambling as a fundraising tool. He disagreed with earlier comments that opposition by the municipality will have little influence at the Provincial level, and stressed the need for Kitchener to emphatically state that it does not wish to be the site of a casino. Mayor Christy also referred to comments from Church related and other groups who have indicated to the Province that they do not wish to receive any revenue from the Province's initiative. He stated that he is prepared today to oppose charitable casinos, and urged Committee members to have the courage to defend the non-economic principals which make up a city. Councillor Galloway suggested that having a casino will actually reduce the number of Monte Carlo events held in the City, and if Council wishes to take a moral stand it should direct staff to stop issuing the Monte Carlo licences the City currently provides. He suggested that Council should support local charities by encouraging a charitable casino in Kitchener; however, such CHARITABLE CASINOS- CONT'D a casino should not be located in the Downtown. Councillor Jake Smola enquired as to the appropriate zoning for a charitable casino and Mr. McCabe replied that "commercial entertainment" is the appropriate zone and added that this designation is permitted in many areas of the City. Councillor Jake Smola enquired whether there are any legal problems with the motion under consideration, and Mr. Shivas replied that Council could encourage a site outside of the Downtown, but there are a number of unanswered questions in the absence of detailed Provincial regulations. He further suggested that reference in the motion to the effect that a casino "shall" be located outside of the Downtown could be interpreted as Council establishing a zoning issue without a public hearing which could result in problems in the future. Councillor Ziegler suggested that the word "shall" be replaced with the word "prefer", and Mr. Shivas indicated that the proposed FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 9, 1996 - 149 - CITY OF KITCHENER change would be a bit better than the current wording. Councillor K. Redman accepted, as a friendly amendment, the suggestion of Councillor J. Ziegler to substitute "prefer" for the work "shall" in her motion, and also asked that if approved, the motion be sent to the Province. Mayor Christy questioned why this issue is before Council at all given it's earlier resolution of September 9, 1996 in which it was indicated that Kitchener has not interest in a permanent charitable casino within the municipality. Councillor Redman replied that she had suggested the report on the basis that her sources indicate Kitchener will likely be one of the locations chosen for a casino. Mr. Shivas offered the opinion that the September 9 resolution does not constitute a firm decision of Council and it could be modified if Council wished. Councillor B. Vrbanovic suggested, and it was accepted as a friendly amendment by Councillor K. Redman, that the motion be amended so as to reaffirm Kitchener's opposition to the proliferation of gambling in the form of a preamble to the amended motion. A motion by Councillor M. Yantzi to defer consideration of the entire issue until such time as the Province formally announces charitable casino locations was voted on and Lost. Councillor John Smola referred to several Provincial initiatives intended as reactions to specific problems, and questioned what charitable casinos are intended to resolve. Councillor Redman questioned staff as to whether they felt Kitchener should be the site of a charitable casino and Mr. McCabe replied that at present there is no public process in place as regards current zoning rights. Mrs. Koppeser clarified that if a charitable casino is established, three day Monte Carlo events will no longer be licensed; however, one day black tie events will be allowed. She also added that video lottery terminals will be in charitable casinos and confirmed that bingos will not be affected by this initiative. Councillor Jake Smola enquired whether Kitchener could move to prohibit the issuance of the type of licence required for a charitable casino, or alternately establish a moratorium on the issue. Mr. Shivas replied that if the casinos are Provincially legislated this would superceed the municipal legislation. The following motion was then voted on, as amended. A recorded vote was requested. On a motion by Councillor K. Redman, it was resolved: "That the City of Kitchener reaffirms with the Province of Ontario, it's opposition to the proliferation of gambling in Ontario; however, should the Province of Ontario unilaterally select Kitchener as the site of the Regional Charitable Casino, Council would prefer that it be located outside the boundaries of the Kitchener Downtown." In Favour: Councillors G. Lorentz, K. Redman, V. Vrbanovic, T. Galloway, J. Ziegler and Jake Smola Contra: Mayor R. Christy, Councillors John Smola, C. Weylie, M. Yantzi and M. Wagner. 1997 PLANNING AND BUILDING APPLICATION FEES The Committee was in receipt of Planning and Development Report PD96/110 requesting pre- budget approval of 1997 fees. Mr. McCabe reviewed the staff report and drew the Committee's attention to two errors in "Schedule A". He asked that under the section entitled "Permanent Signs", the 1996 and 1997 fees for "fascia/canopy/projecting" signs read $60.00 and $65.00 respectively. Similarly he asked that "ground/pilon" signs reflect a 1996 fee of $80.00 and a 1997 fee of $85.00. Moved by Councillor C. Weylie, "That effective January 1, 1997, fees for the Planning Applications listed in Appendix "A" (1997 Planning Application Fee Schedule) appended to Planning and Development FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 9, 1996 - 150 - CITY OF KITCHENER Department Report PD 96/110 be increased by the amounts shown under "Traditional 1997 Fee Increase", subject to said appendix being first amended to indicate under "Permanent Signs" that fascia/canopy/projecting signs will increase from $60.00 to $65.00, and ground/pilon signs from $80.00 to $85.00, and that where required these changes be reflected in Chapter 380 (Tariff of Fees) of the Municipal Code; and further, That changes be made to the Building By-law to reflect the revisions to Building Permit Fees as indicated in Appendix "C" (By-law to Amend Chapter 710 of the City of Kitchener Municipal Code), as appended to report #PD96/110." Councillor Jake Smola referred to concerns with respect to the possible disincentive from fees applying to business expansion, and suggested that the entire fee schedule should be reviewed in this regard by the Business and Industrial Advisory Committee. He suggested that it may be appropriate to freeze fees in some areas. Councillor Galloway enquired whether any municipalities charge a sliding fee relative to the amount of staff work involved. He cited as an example a situation where an official plan amendment would be required for a single property. Mr. McCabe replied that a number of municipalities have made a distinction between major and minor zone change fees; however, they are in the minority. He indicated that staff are investigating this option, and have also discussed the possible phasing of development fees, partly on the basis that some applications proceed slowly or do not proceed to conclusion. Councillor Galloway asked that the issue of imposing major or minor fee variations be examined prior to recommending any 1998 fees. Mr. McCabe pointed out that staff time is always a factor in fee calculations, irregardless of the size and complexity of the process involved. It was also noted that in some instances Kitchener is already charging less than the minor fee imposed by some municipalities. Mr. Gazzola advised that Management Committee has discussed Mr. McCabe's proposed new approach to fees, and a report will be available in early 1997. The motion by Councillor C. Weylie to approve the 1997 Planning and Building application fees was voted on and Carried. The Committee then considered the remaining staff recommendations involving the establishment of a reserve fund to finance external mediation services and imposition of an administrative fee relative to Orders issued by the Building Division. Mr. McCabe pointed out that the cost of mediation services will be shared by the City and the development industry, and that the number of external mediations per year is approximately four. 1997 PLANNING AND BUILDING APPLICATION FEES - CONT'D On a motion by Councillor C. Weylie, it was resolved: "That City Council authorize the establishing of a reserve fund for the purpose of financing external mediation services, with said fund to be financed through the contribution of a percentage of the fees collected from municipal plan amendments, zone changes, sub- divisions, minor-variance and consent applications as well as the contribution of matching funds by City Council on an annual basis; and further, That an administrative fee of ten (10) per cent of the total cost associated with the rectification of an Order issued under the Ontario Building Code Act, Chapter 650 (Lot Maintenance), or Chapter 665 (Property Standards) of the City of Kitchener Municipal Code, be charged directly to those who choose not to comply with the regulations." 6. CANADIAN PARAPLEGIC ASSOCIATION CAMPAIGN PERMISSION FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 9, 1996 - 151 - CITY OF KITCHENER The Committee was in receipt of correspondence from the Canadian Paraplegic Association - Ontario Chapter requesting Council's permission to conduct a door-to-door fundraising campaign in the City. Mrs. Koppeser clarified that any private entrepreneur in this regard will require a door- to-door Hawkers and Pedlars Licence at a cost of either $200.00 or $300.00 depending on type. Councillor B. Vrbanovic put forward a motion to grant the request of the Canadian Paraplegic Association to conduct a door-to-door fundraising campaign in the City, subject to obtaining the necessary licence(s). Councillor Lorentz enquired whether staff had spoken with the K-W Spinners as to the effect the proposed campaign would have on their annual fundraiser, and Mrs. Koppeser replied in the negative. Councillor Lorentz advised that he would like to consult the K-W Spinners prior to Council making a decision. Moved by Councillor G. Lorentz, "That the request of the Canadian Paraplegic Association to conduct a "gold card" door-to- door fund raising campaign in Kitchener be deferred and referred to the December 16, 1996 Council meeting pending comment from the K-W Spinners with respect to the impact on their annual campaign." Councillor Redman advised that she would like to know whether the Canadian Paraplegic Association has a local office, and what percentage of their revenue will be spent locally. Councillor Galloway questioned whether the City has a jurisdictional role in approving door-to-door campaigns, and Mr. Shivas replied that there is a by-law involving solicitation where permission is required. Councillor Ziegler asked staff to check to see if a licensing fee is required and to obtain additional information on the "gold card" initiative. Councillor Galloway also asked for clarification as to whether Council's permission is required in this instance. The Committee then voted on the deferral motion by Councillor G. Lorentz and it was Carried. 7. ANNUAL ENERGY MANAGEMENT PROGRAM REVIEW Committee members were in receipt of a report from C. Ford dated December 4, 1996. Mr. Ford gave a further video presentation noting that to date the City has incurred energy management project costs of approximately $4.5 million dollars, of which $3.3 million dollar involves municipal funds. He pointed out that to date the savings have been double that amount and that by the year 2006 it is estimated that the City will have saved approximately $15 million dollars. Mr. Ford further noted that to date the City realizes annualized savings of $928,000.00 and this should be over $1 million dollars by 1999. 7. ANNUAL ENERGY MANAGEMENT PROGRAM REVIEW - CONT'D Councillor Galloway enquired as to the payback before investment and Mr. Ford replied that the maximum is 5 years and the current payback is 4 years. Councillor Jake Smola enquired why more City vehicles were not being adapted for use of natural gas. Mr. Ford replied that though technically natural gas-powered engines can now replace diesel engines with little or no power loss, there is a constraint in terms of where fuel tanks are located. This is due to the fact that the volume is triple that of a conventional gasoline tank and that manufacturers have not been able to work around this problem to date. Smaller vehicles can be retrofitted on a case by case basis, but the conversion costs often outweigh the fuel savings. 8. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on January 13, 1997. A Special meeting will be held on December 10, 1996 to review the 1997 Capital Budget and 10 Year Capital Forecast. 9. ADJOURNMENT On motion the meeting adjourned at 11:55 a.m. FINANCE & ADMINISTRATION COMMITTEE MINUTES DECEMBER 9, 1996 - 152 - CITY OF KITCHENER G. Sosnoski Manager of Corporate Records/Assistant City Clerk