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HomeMy WebLinkAboutFinance & Admin - 1996-11-25FAC\1996-11-25 NOVEMBER 25, 1996 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date commencing at 10.15 a.m. under the Chairmanship of Councillor J. Ziegler with the following members present: Mayor R. Christy, Councillors T. Galloway, M. Wagner, M. Yantzi, John Smola, Jake Smola, B. Vrbanovic and C. Weylie. Councillor K. Redman was in attendance for part of the meeting. Others present: Ms. P. Houston, Mrs. J. Koppeser, Messrs. J. Gazzola, T. McCabe, J. Shivas, J. Witmer, T. Clancy, C. Ford, L. Proulx, M. Grummett and G. Sosnoski. 1. DEVELOPMENT CHARGE HEARING - 4263 KING STREET EAST (LULU'S PLAZA) The Committee was in receipt of a letter of complaint filed by Mr. Sidney Spiegel on behalf of Lulu's Plaza Limited concerning the imposition of development charges at the above property. They were also in receipt of Planning and Development Department report PD96/106 recommending no action on the complaint as well as a copy of the Notice of Hearing pursuant to Section 8 of the Development Charges Act. Mr. Sydney Spiegel, Lulu's Plaza Limited, and Mr. David Hacking, Lanhack Engineering Inc., were in attendance. Mr. Hacking advised that Mr. Spiegel has owned the Lulu's property for the past 10 years and referred to site limitations which are prohibitive in terms of big box development. He displayed a site plan showing the existing commercial building for "The Brick" as well as current expansion in the form of a free-standing building. Mr. Hacking noted that the site is currently on a septic system which limits future development as it will shortly be operating at capacity. He stated that his client has no problem with the magnitude of development charge; however, he has concerns that he is being charged twice for water on the basis of separate City and Regional charges. Mr. Hacking pointed out that the owner has already incurred substantial costs in developing the site given the restrictions of the septic system and the fact that comparable City services are not available as yet. He suggested that an exemption may be in order to facilitate large scale development on the site, which he suggested is currently underdeveloped. Mr. Hacking stated that he is requesting that an exemption be made in the Development Charges By- law for satellite stand alone buildings. Mr. Spiegel acknowledged that any new site receiving sewer and water services should pay the appropriate development charge; however, he suggested that it is difficult to accept that given the already restricted development potential of the site, the City is levying development charges but not providing all services, notably those relating to sewage. He suggested that there should be some form of exemption allowance, pointing out that when the Brick furniture store moves from it's present location, new tenants would be limited due to the lack of sewer access. Councillor K. Redman entered the meeting at this time. Councillor Ziegler noted that staff are recommending no action on the letter of complaint and do not feel that an exemption applies. He questioned whether development of lands behind Lulu's is imminent, and whether it is possible to share expanded City services. Mr. McCabe replied that the new system will include sanitary servicing and will be created by extension, probably through local improvements. Mr. Spiegel replied that he has been told about this possible development for five years, and even if sewer service is provided in the foreseeable future, it will involve further charges for local improvements. Councillor Yantzi pointed out that Mr. Spiegel must also consider a potential increase in property revenues as a result of expanding the site and incurring additional costs in this regard. Councillor Yantzi asked for clarification that the delegation is requesting that a new exemption for free- standing buildings be added to the Development Charges By-law. Mr. Hacking replied in the affirmative, noting that the suggested exemption is based on experience with developments in other municipalities. Councillor Galloway pointed out that the development charges relate to the cost of the entire City water distribution system and not just servicing of this specific property. He suggested competitors with similar developments have already paid the current charge, and if an exemption were agreed to, they would probably ask for favourable consideration as well. Mr. Spiegel argued that unlike his own property, they probably have full use of their site. Councillor Galloway replied that Mr. Spiegel is already receiving a preferred development charge rate to reflect the fact that only water services are provided, and noted that the full rate is 86 cents per square foot and 29 cents per square foot where there are no services with the Lulu's property assessed at 39 cents per square foot. Councillor Galloway also noted that the exemption in FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 25, 1996 - 140 - CITY OF KITCHENER DEVELOPMENT CHARGE HEARING - 4263 KING STREET EAST (LULU'S PLAZA) - CONT'D the By-law was prompted by industrial rather than commercial expansion. Councillor Galloway enquired of Mr. Shivas whether interpreting the 5,000 square foot exemption as applying to expansion would be construed as a misinterpretation of the By-law and therefore a violation, or a liberal interpretation. Mr. Shivas replied that though Council is free to interpret it's By-law, applying the exemption to an expansion would be a liberal interpretation, as the plainer meaning would not embrace construction of an entirely new building. He also reminded the Committee that it's jurisdiction in this matter relates only to the incorrect application of development charges. Councillor John Smola questioned whether exemptions have been granted for free- standing buildings in the past, and whether such sites receive the full range of services. Mr. McCabe replied that situations have arisen where full services are not provided, and in these cases the owner would have received a reduction similar to that applied to Lulu's Plaza. He added that requests for exemptions have been turned down in the past on the basis of the specific wording in the by-law, with some of the properties having water and others sewer and water. Mr. McCabe advised that site specific services are specifically excluded from the Development Charge By-law, and that there is no overlapping of charges as the developer is responsible for paying for increased demand and additional services to the property. He also added that the expansion of services behind Lulu's referred to earlier is not anticipated for a further 2-3 years. On a motion by Councillor M. Wager, it was resolved: "That Council take no action on the October 4, 1996 letter of complaint submitted by Mr. S. Spiegel, President, Lulu's Plaza Limited, and confirm the City development charges paid in conjunction with building permit #E960307, 4263 King Street East, Kitchener." Councillor Ziegler advised that the Committee recommendation in response to the letter of complaint submitted by Mr. Sydney Spiegel will be dealt with by City Council on December 2, 1996 at 7:00 p.m. 2. TEAM CANADA TRADE MISSION Mr. Graham Weber appeared as a Iongtime resident of Kitchener and a former employee of the Federal Government in the area of trade development and promotion. He indicated that he is disappointed that the Mayor sought and received Council approval for participation in the forthcoming trade mission to South East Asia without a specific rationale as to how the City would benefit from such a mission. Mr. Weber asked what commercial opportunities or sales contracts the Mayor would pursue on behalf of the City of Kitchener; and what Kitchener businesses have asked for the intervention of the Mayor's Office to further their negotiations or to conclude contracts in the countries to be visited. Mr. Weber stressed that the City must know it's own objectives at the outset if any meaningful benefit is to be obtained, and expressed concern that expenditures in this area may dilute efforts in other areas of economic development. Mr. J. Balsillie appeared in his capacity as Chairman of the Board of Research In Motion, a private manufacturer and exporter of narrow band radio technology and offered the opinion that the strongest growth market is presently in Asia, particularly Korea. He indicated that he is pleased to have a representative of Kitchener Council on the trade mission, and feels that the City and it's businesses will get more value by having the Mayor in attendance. He referred to the hierarchial nature of the Asian community and the respect they afford to politicians, both of which give Canadian politicians greater leverage in trade dealings. In response to a question from Councillor Wagner, Mr. Balsillie suggested that there is a significant amount of investment money presently available in South East Asia, and a trade mission of this sort is a very good opportunity to build future business relationships. 2. TEAM CANADA TRADE MISSION - CONT'D Councillor Jake Smola asked Mayor Christy for an update on the involvement of the City's FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 25, 1996 - 141 - CITY OF KITCHENER Economic Development Department and other local companies in preparation for the trade mission. Mayor Christy replied that last weekend he attended a conference in Hamilton at which economic renewal was a major issue. He advised that the Mayor of London is leading a separate business delegation to Asia, and that comments he has received suggest that it is dangerous for any municipality to be excluded from such economic opportunities. Mayor Christy also stressed that he was invited to attend the trade mission and did not solicit the invitation. He stated that enhancing economic development was one of his objectives in seeking the office of Mayor, and also referred to the City's surplus of industrial lands and the need to attract appropriate businesses, thereby alleviating or removing the associated carrying charges, he stated that there is a need to determine which local businesses have a wish to develop a presence in Asia, and also referred to a recent resolution passed by Kitchener Council involving an exchange program with a South East Asian municipality sponsored by the Federation of Canadian Municipalities (FCM). He further noted that the FCM is recommending an exchange with the Philippines. In summary Mayor Christy indicated that it was the view of the Mayors he spoke with that there is a municipal role and responsibility in attracting new business from growing markets and Kitchener should take advantage of this opportunity by introducing investors to the City and assisting local companies with an interest in the South East Asian market. REFRESHMENT STAND - LIONS CLUB OF KITCHENER The Committee was in receipt of a report from J. Koppeser dated November 13, 1996 recommending approval of a request to operate a refreshment stand in conjunction with an upcoming skating party in the Civic Square. On a motion by Councillor M. Wagner, it was resolved: "That Council grant the request of the Lions Club of Kitchener to operate a refreshment stand at their Skating Party in the Civic Square on November 29, 1996, for the reduced fee of $1.00, subject to obtaining a licence and the necessary Health approvals." REFRESHMENT STAND - FESTIVAL OF LIGHTS The Committee was in receipt of a report and recommendation from J. Koppeser dated November 20, 1996 concerning a request to operate refreshment stands in Victoria Park. On a motion by Councillor M. Wagner, it was resolved: "That the City of Kitchener grant the request of the Festival of Lights Committee for permission to have M & M Meats operate a refreshment stand on November 29, 1996; and further, That the Lions Club be granted permission to operate a refreshment stand during the seasonal lighting of Victoria Park." FOOD SALES - FESTIVAL OF THE NIGHT The Committee was in receipt of a report and recommendation from J. Koppeser, dated November 20, 1996 concerning a request for permission to invite restaurants to sell food on a City street on New Years Eve. FOOD SALES - FESTIVAL OF THE NIGHT- CONT'D On a motion by Councillor M. Wagner, it was resolved: "That Jester's Court and Charles Street Frys be granted permission to locate along King and Gaukel Streets on December 31, 1996 during the Festival of the Night celebration, FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 25, 1996 - 142 - CITY OF KITCHENER provided that Health and Fire approvals are obtained; and further, That M & M Meat Shops be granted permission to locate a tent in Victoria Park on December 31, 1996, during the Festival of the Night celebration for a reduced fee of $1.00, provided the necessary Licence and Health, Fire and Building approvals are obtained." RECORDS RETENTION BY-LAW The Committee was in receipt of a report and recommendation from G. Sosnoski dated November 20, 1996 concerning a by-law to establish revised retention periods and disposition methods for municipal records. On a motion by Councillor T. Galloway, it was resolved: "That the draft by-law to repeal By-law #87-319 and Chapter 810 (Records Retention) of the City of Kitchener Municipal Code, and to establish revised retention periods and disposition methods for the municipality be referred to the December 2, 1996 Council agenda for enacting." INFORMATION SERVICES DIVISION RELOCATION The Committee was in receipt of reports from J. Gazzola and M. Grummett dated November 20, 1996 concerning a request to relocate the Information Services Division from the main floor to the 8th Floor of the City Hall at a cost of approximately $86,000.00. Councillor Ziegler questioned the need for the glass entrance doors budgeted, and also asked for clarification of reference in the report to the initial cost of the move. Mr. Gazzola replied that additional costs relate to the purchase of new furniture after the move, the cost of which will be provided out of the Department budget. He noted that this division is currently using leftover furnishings from other departments received in conjunction with moving the City Hall from Frederick to King Street. Councillor Ziegler suggested deletion of the glass entry way as the existing doors are sufficient, for a cost reduction of $10,000.00. Councillor Jake Smola referred to inherent problems with lighting, which Mr. Ford explained arise from the height of ceiling lights and the resulting light contrast which causes undue eyestrain and related problems. Councillor Smola questioned why lighting design would be a problem given the involvement of professionals in the design of the building. Mr. Proulx acknowledged that the engineers had erred in this regard, as they had in some other areas of the building. Councillor Jake Smola questioned Mr. Ford as to problems of air quality, and he replied that no specific problems had been identified to date, but complaints continue. He advised that the situation has been discussed with an Environmental Health Standards Officer and no problems have been substantiated to date. Mr. Ford voiced his personal opinion that many of the symptoms referred to by staff are lighting related, either directly or indirectly. Councillor Smola referred to the $20,000.00 cost of light retrofitting and questioned whether consideration had been given to individual work station lights at a lower cost. Mr. Ford replied that this would not necessarily solve the problem, which originates with the lack of uniformity of light intensity. Councillor Smola questioned how the issue of lighting would be dealt with were the 8th floor space being leased, and Mr. Ford replied that lighting would be considered a leasehold improvement and be upgraded by the tenant. Councillor Wagner referred to a proposed use of the space the Information Services would 7. INFOR vacate on the ground floor as an equipment storage area, and questioned where the equipment is presently being stored. Mr. Gazzola replied that storage is at various locations, each with an associated cost. Councillor Wagner enquired as to how much vacant space would remain after Information Services had moved and other planned uses implemented, and Mr. Gazzola replied that he was not sure. He added that the main reasons for the move relate to the work environment and the fact that it is not equivalent to that of other staff. He advised that alternative uses for the space currently occupied by Information Services have been looked at, and the preference would be toward some form of revenue producing use, such as meeting space. Mr. Gazzola advised that he plans to put together a committee to look at revenue generating uses. Councillor Vrbanovic questioned the number of offices which are proposed on the 8th floor and FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 25, 1996 - 143 - CITY OF KITCHENER asked whether this number is necessary, given that some employees who currently have formal offices may not require these, and may only have them at present due to the existing layout. Mr. Gazzola advised that the City's office standard has been applied to the new office area. Councillor Vrbanovic that 9 offices and proposed and only 4 seem to be warranted and suggested that costs could be further reduced by eliminating some of the walls and doors. Mr. Proulx noted that the estimated cost is an upset limit and the actual relocation may be accomplished for less. Mr. Grummett replied that there is no increase in the number of offices over the present allotment. Councillor K. Redman questioned the additional cost referred to in the report relating to moving and signage, and Mr. Proulx replied that signage costs can be Iow and that moving expenses were not factored in, as they will probably be undertaken by City staff. Councillor K. Redman put forward a motion to approve the relocation at the reduced cost of $76,000.00, subject to removal of the glass entrance doors. Councillor Jake Smola put forward a motion to defer consideration of the Information Services Division relocation to a future meeting of the Finance and Administration Committee for further discussion in conjunction with a proposal to generate revenue through the lease of the existing office space. Councillor Smola advised that he would be much more comfortable with the recommendation were it accompanied by 5 year lease or at minimum a plan to market the space. The deferral motion by Jake Smola was then voted on and lost. The Committee then considered the main motion by Councillor Redman to approve the relocation of an estimated cost of $76,000.00. Councillor Galloway advised that he does not support the relocation, in part on the basis that the present office area was designed specifically for use by Information Services, and the availability of the current office space could lead to further requests for relocation. Councillor Ziegler questioned why work station replacement was not priced to coincide with the move, and Mr. Gazzola replied that staff propose to deal with these purchases over the next 5 - 6 years given the size of the additional expense. Mr. Grummett clarified that approximately $65.000.00 to $75,000.00 will be required to purchase 22 work stations. On a motion by Councillor K. Redman, it was resolved: "That the Information Services Division be relocated to the vacant space on the 8th floor of the Berlin Tower, and that subject to deletion of the glass front entrance, the 8th floor renovations be carried out at a cost not to exceed $76,000.00; and further, That funding for the project be provided from the 1996 Capital Contingency Account." Borehole Testinq - Ral,qreen Crescent Area The Committee was in receipt this date of a report from J. Witmer dated November 25, 1996 outlining additional expenses relating to the borehole testing approved by Council on November 15, 1996. The report recommends an expenditure increase from $14,268.00 to $135,980.00 to reflect the need for more extensive testing. Mr. Witmer explained that the revised amount is a result of a recommendation of a toxologist which requires a more expensive testing procedure. He indicated that the Ministry of Environment and Energy supports the new study BOREHOLE TESTING - RALGREEN CRESCENT AREA- CONT'D parameters and the revised costing. He stressed that this is an upset figure, and the actual cost may be less. On a motion by Councillor K. Redman, it was resolved: "That the Council resolution of November 15, 1996 concerning the retaining of Heath Consultants Limited and the payment of $14,268.00 for further testing and analysis in the Ralgreen Crescent area be amended by substituting the following which reflects a change in the amount of the payment: That Council authorize staff to further retain the services of Heath Consultants Limited for the purposes of undertaking a borehole analysis of the Ralgreen Crescent area, and hereby waive the requirement to call for expressions of interest pursuant to Chapter 170 (Purchasing and Materials Management) of the City of Kitchener Municipal Code; and, FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 25, 1996 - 144 - CITY OF KITCHENER That Council agrees to pay Heath Consultants Limited $135,980.00, exclusive of taxes, which represents the cost of drilling the boreholes and the installation of permanent test points for the purpose of obtaining methane gas, water and soil samples, for which the Corporation of the City of Kitchener agrees to share equally with the Ministry of Environment and Energy; and further, That the Department of Public Works be directed to clean up the soil debris at each borehole location." Other Business Councillor Redman requested a report from the Legal Department, the Licensing Division and the Downtown Development Team, if possible for discussion at the next Finance and Administration Committee meeting, concerning the Province's recent Charities Casino initiative. She suggested that Council needs to consider possible parameters. Mr. Gazzola advised that staff would do their best to have a report available for the December 9 meeting. Councillor Wagner pointed out that the Charitable Casinos would be licensed for Video Lottery Terminals, and suggested further discussion in this regard. Councillor Redman acknowledged that this issue could be discussed; however, it is her understanding that lottery terminals may be licensed at other locations. Next Meetinq The next regularly scheduled meeting of the Finance and Administration Committee will be held on December 9, 1996. A Special meeting to review the 1997 Capital Budget and Ten Year Capital Forecast will be held on December 10, 1996. Adjournment On motion the meeting adjourned at 11:35 a.m. G. Sosnoski Manager of Corporate Records/Assistant City Clerk