HomeMy WebLinkAboutFinance & Admin - 1997-01-13FAC\1997-01-13
JAN UARY 13, 1997
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: Acting Mayor B. Vrbanovic,
Councillors T. Galloway, G. Lorentz, K. Redman, John Smola, M. Wagner, C. Weylie and M. Yantzi.
Others present: Ms. L. MacDonald, Mrs. J. Koppeser, Messrs. J. Gazzola, J. Shivas, W. Beck, R. Arnot,
J. Witmer, O den Ouden, E. Kovacs, T. McCabe, L. F. Parkhouse, R. W. Pritchard, C. Ford and G.
Sosnoski.
1. TAX REDUCTION - 47 EBY STREET SOUTH
The Committee was in receipt of a report from O. den Ouden dated December 9, 1996 in response
to a request to the K-W Homebuilders' Association for a tax reduction by way of a grant pertaining
to a renovation project at 47 Eby Street South.
Mr. Gary Adam, President, K-W Homebuilders' Association appeared in support of the request for
a waiving of taxes in the estimated amount of $900. Mr. Adam explained that the renovation is
intended to promote and demonstrate healthy housing, renovation opportunities and related
environmental issues. He also noted that the Association's partner in this project is K-W
Habilitation Services, which will also be using the renovated building as an office. He further
explained that the Association, a non-profit origanization, has requested that property taxes be
waived during the renovation period in order to minimize it's cost. Mr. Adam expressed his hope
that the Eby Street project would serve as a catalyst in the revitalization of residential properties in
the Downtown core.
Councillor Wagner put forward a motion recommending approval of a grant in kind to offset
property taxes owing for the period September 27, 1996 through to March 31, 1997.
Councillor Lorentz pointed out that the request amounts to a municipal grant, and that the
Homebuilders' Association should be required to complete an application form for consideration by
the Community Services Committee. Councillor Galloway spoke against waiving the Region and
School Board percentage of the tax bill noting that the City's portion amounts to only 28 percent.
Councillor Redman agreed that a grant application should be submitted and asked for further
clarification from staff as to the assistance provided by the City to Habitat for Humanity.
Councillor Lorentz argued that the City should support the request, and in addition should grant all
portions of the taxes owing.
On a motion by Councillor G. Lorentz,
it was resolved:
"That the K-W Home Builders' Association submit a grant application to the Parks and
Recreation Department with regard to the request to exempt 47 Eby Street South from
residential property taxes from September 27, 1996 to March 31, 1997, with said
application to be considered by the Community Services Committee."
2. ENCROACHMENT REQUEST - REGGIES RESTAURANT (1 KING STREET WEST)
The Committee was in receipt of a report from L. Macdonald dated January 8, 1997 concerning a
request to locate a hot dog cart on King Street on a year round basis.
Mr. Arnold Attwooll appeared on behalf of Reggies Restaurant and noted that at present a cart is
located in front of the premises from the first of May to the end of the season. He clarified that the
initial request was to operate a cart on a twelve month basis; however, it has since been amended
to request operation during selected winter months.
Mr. Kovacs presented the concerns of the Public Works Department regarding the impact of a hot
dog cart on snow clearing operations, but indicated a willingness to accommodate the
arrangement on a trial basis. Acting Mayor Vrbanovic suggested including a clause indicating that
after a snowfall time would be allowed for the City to clear the sidewalk before putting the cart in
operation. Mr. Attwooll responded that in his view this would not be a problem. Councillor
Galloway questioned the impact on the Street Vendor By-law, and Mr. Parkhouse
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CITY OF KITCHENER
2. ENCROACHMENT REQUEST - REGGIES RESTAURANT (1 KING STREET WEST) - CONT'D
cautioned the Committee against making one time accommodations as this may lead to requests
from other vendors for similar treatment. Councillor Wagner advised that he does not view this as
a dangerous precedent, pointing out that it is highly likely that the vendor would clear the snow
around the cart himself in the interests of promoting business. Mr. Parkhouse also pointed out that
the existing encroachment agreement for Reggies Restaurant has expired, and that the owner will
have to resubmit for 1997.
On a motion by Councillor M. Wagner,
it was resolved:
"That the Legal Department prepare the 1997 encroachment agreement for 1 King Street
West, (Reggies Restaurant) so as to allow the operation of a hot dog cart, on a trial basis,
from March 21, 1997 to December 31, 1997; and further,
That the Mayor and Clerk be authorized to execute the above agreement."
3. ALPINE AIR PURIFICATION SYSTEM
Mr. Leroy Soper, President, Tri-Par Trading, Ayr, appeared and demonstrated a product which he
felt would alleviate the air quality problems in City Hall referred to in recent newspaper articles
concerning the relocation of the City's Information Services Division. Mr. Soper circulated
additional reference material on the Alpine System and noted that poor air quality has a direct
impact on health and employee attendance. He expressed a willingness to demonstrate the
purification machine in certain areas of City Hall on a trial basis, with no obligation.
Mr. Ford indicated that the theory behind the system, which balances ozone and ion
accumulations, appears sound; however, there remains the matter of whether there is a need for
such a system. He indicated that he was prepared to accept a three-day, no obligation trial.
Councillor Redman enquired as to how the City would evaluate the effectiveness of the purification
system, and Mr. Ford replied that this could be done scientifically; however, a more likely measure
would be whether an individual feels there is an improvement in air quality. Mr. Soper clarified that
individuals will only notice an increase in air freshness. Councillor Galloway suggested that the
Committee should not venture into the area of purchasing policy, but should leave it to staff to
pursue the offer if there is a need and an interest.
Councillor M. Wagner put forward a motion to accept the offer of a three-day trial installation, but
the motion was later withdrawn. It was generally agreed that the entire matter should be referred
to staff, and Mr. Ford was appointed as the staff contact.
4. SIGN VARIANCES - 197 KING STREET EAST/1 KING STREET WEST
The Committee was in receipt of a report from D. Corks dated January 8, 1997 recommending
approval of variances to allow projecting signs at Fiedlers Delicatessen and the Walper Terrace
Hotel.
On a motion by Councillor T. Galloway,
it was resolved:
"That Council approve two variances to the Sign By-law to allow projecting signs at 197
King Street East (Fiedlers Delicatessen) and 1 King Street West (Walper Terrace Hotel)."
5. LAY APPOINTEES - TWIN CITIES COMMITTEE
The Committee was in receipt of a report from L. Parkhouse dated January 3, 1997 concerning the
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CITY OF KITCHENER
results of the re-advertisement for lay appointees to the above Committee.
The following candidates were nominated by the respective Councillors: Councillor K. Redman -
Mr. Ken Cressman, Mr. Ed Lanfranconi, Mr. Jeffrey Morris; Councillor G. Lorentz - Mr. Donald
Stewart; Councillor T. Galloway - Mr. Nelson Stead; Councillor C. Weylie -Mr. Branko Brkovitch.
Nominations were then closed and a vote was conducted in accordance with Council's normal
balloting procedure. It was publicly announced how each Council member voted and the
successful candidates were Messrs. Cressman, Morris and Stewart.
On a motion by Councillor G. Lorentz,
it was resolved:
"That Mr. Ken Cressman, Mr. Jeffrey Morris and Mr. Donald Stewart be appointed to the
Twin Cities Committee for a term on one (1) year expiring November 30, 1997."
It was noted that the next Twin City Committee meeting is scheduled for January 23, 1997 and
Acting Mayor Vrbanovic asked that the Deputy City Clerk arrange to have the successful
candidates advised by phone of their pending appointment and the meeting on January 23, which
will commence at 3:30 p.m. at Waterloo City Hall.
231 MADISON AVENUE SOUTH (FORMER LANG LEATHER BUILDING)
The Committee was in receipt of a report from J. Witmer dated January 8, 1997 concerning
options for securing the unsafe portion of the building.
On a motion by Councillor G. Lorentz
it was resolved:
"That staff be directed to obtain tenders for the demolition of the unsafe portion of the
building at 231 Madison Avenue South, with said tenders to be considered in the event the
property owners fail to remedy the unsafe condition by February 10, 1997 as ordered."
1997 TRANSIT FARES
The Committee was in receipt of a report from E. Kovacs dated January 8, 1997 recommending
pre-budget approval of an increase in the adult cash fare.
Moved by Councillor John Smola,
"That effective February 1, 1997, the adult cash transit fare be increased from $1.60 to
$1.75, and that all other fare categories remain as 1996 levels."
Councillor Galloway enquired as to the percentage of adult riders who would be affected by the
cash fare increase. Mr. Beck replied that he did not have current statistics, which could be
supplied at the next meeting, but assured Councillor Galloway that a minority of adult riders would
be affected as the cash fare amounts to no more that 40 percent of revenues.
The motion by Councillor John Smola to increase the 1997 adult cash fare was then voted on and
Carried.
VIDEO LOTTERY TERMINALS - REVENUE DISCUSSION PAPER
Committee members were in receipt of a copy of the discussion paper entitled "A Mechanism for
Allocating Video Lottery Revenues, and The Access of Charities to the Charity Gaming Halls", as
well as a staff summary of relevant issues.
Acting Mayor Vrbanovic referred to a meeting of affected parties which took place last week. He
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pointed out that the staff submission contains a suggestion that revenues could not be used for the
day-to-day operating costs of charitable organizations, and suggested that this reference be
deleted from the City's response to the Province. Acting Mayor Vrbanovic suggested that
the Province should allow revenues to be used to offset day-to-day operating costs, and that he
generally supported the statements in the balance of the staff report. Councillor Redman advised
that she found the Province's reference to VLT revenue as "new money" a startling statement.
She also suggested that allocating 2 percent of VLT revenues toward gambling addiction is
insufficient and also stressed that in order to be of value, it would have to be spent effectively.
Councillor Redman also asked that the Province be requested to provide a definition of the term
"community" as well as a further definition of the proposed "catchment area". Councillor Wagner
noted that the Provincial proposal seems to suggest that 10 per cent of the profits would go to the
charity, 10 percent to the location operator and 2 percent toward gambling addiction. He enquired
whether these amounts are guaranteed, and Mrs. Koppeser replied that nothing has been issued
in writing; however, these percentages were referred to in the Province's Spring budget. In
response to a further question, Mrs. Koppeser advised that it is her belief that the 10 percent figure
refers to profits after expenses.
Councillor Wagner expressed concern that the main thrust of charitable gaming halls appears to
be the installation of video lottery terminals, and suggested that local Monte Carlo events would be
scaled back significantly. Acting Mayor Vrbanovic noted that the intent is that three-day Monte
Carlo events will no longer be licensed, and that individual licenses will only be available for single
events taking place on one night. Councillor Wagner questioned how local charities would make
money other than through VLTs. Councillor Lorentz suggested that what the government is
undertaking is despicable, and suggested that the existing system works well and should be left
alone. He further suggested that Kitchener should indicate to the Province that it does not want
VLTs in the City; however, he added that based on experience todate providing input to the
Province is a waste of time as they will probably not listen and have already made up their minds
concerning charitable gambling. Councillor Yantzi agreed with the comments of Councillor
Lorentz, noting that it is difficult not to be cynical about the value of giving input to the Province.
He also questioned what would be done with the 78 percent of revenues which under the new
system allocated to the Province. Acting Mayor Vrbanovic argued that it is important for the
municipality to respond concerning the installation of VLTs and well as to provide input on the
Provincial regulations as it would be inappropriate to have these decided by a bureaucrat outside
of the local communities.
Acting Mayor B. Vrbanovic put forward a motion to amend the staff report as discussed and submit
it as the City's position, and to request that the Province increase the percentage of revenue
allocated to gambling addiction from 2 percent to 5 percent.
Councillor John Smola questioned the value of a response to the Province, and Acting Mayor
Vrbanovic argued that Kitchener should make it's views known and do everything it can to protect
local charities. Councillor Lorentz indicated his support for locating a charitable casino in
Kitchener, but his opposition to the installation of VLTs. Councillor Wagner advised that he would
not support the motion, but would support the amalgamating of charitable gaming locations.
Councillor Redman pointed out that Council must decide to either try to shape these Provincial
initiatives to meet the needs of the community, or passively accept the Province's decision. She
suggested providing positive input, and increasing the proposed expenditure on addiction
research and prevention.
Councillor K. Redman put forward, and Acting Mayor Vrbanovic accepted as a friendly
amendment, her request that the staff report include a request that the Province define
"community" as well as the terms "catchment or collection areas".
VIDEO LOTTERY TERMINALS - REVENUE DISCUSSION PAPER - CONT'D
The main motion was then voted on, as amended.
On a motion by Acting Mayor B. Vrbanovic,
it was resolved:
"That notwithstanding Kitchener City Council's opposition to the proliferation of gambling in
the Province of Ontario, Council forward it's amended response to the Provincial discussion
paper entitled "A Mechanism for Allocating Video Lottery Revenues, and The Access of
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CITY OF KITCHENER
Charities to Charity Gaming Halls" to the Charitable Gaming Allocation Working Group;
and further,
That the amount allocated by the Province to gambling addiction programs be increased
from 2 percent to 5 percent"
On a motion by Councillor M. Wagner,
it was unanimously resolved:
"That the City of Kitchener register with the Province of Ontario, this Council's opposition to
the installation of video lottery terminals in general, and in charitable gaming halls in
particular."
HALF-MASTING OF FLAGS - CITY FACILITIES
The Committee was in receipt of a report from R. W. Pritchard dated January 7, 1997
recommending an amendment to Policy No.l-26 (Flags) as it relates to half-masting of flags at City
facilities following the death of a current employee.
Councillor T. Galloway moved the staff recommendation with regard to the policy amendment.
Councillor Ziegler questioned why this would be done for City employees and not citizens
generally. Mr. Pritchard replied that the requests to date have related specifically to current City
employees, noting that Council is free to expand the criteria should it wish. Acting Mayor
Vrbanovic pointed out that this practice is common to most companies, who honour long-standing
employees in this way. Councillor Wagner suggested that the issue should be left to the discretion
of the Mayor or City Clerk.
Councillor Lorentz put forward a motion adding Council to the list of approval authorities, and
requiring that if a flag is to be lowered, it should be lowered at all City facilities and not selected
locations at the discretion of a Department Head.
Acting Mayor Vrbanovic pointed out that Council, as an approval authority, would cause an
unreasonable delay given the frequency of it's meetings, and suggested that the Mayor and Chief
Administrative Officer should be given sole discretion to deal with this matter expeditiously.
The amending motion by Councillor G. Lorentz was then voted on and was Lost.
The main motion was then voted on.
HALF-MASTING OF FLAGS - CITY FACILITIES - CONT'D
On a motion by Councillor T. Galloway,
it was resolved:
"That Policy No. 1-26 (Flags) be amended to include the following as it relates to the half-masting
of flags at City facilities subsequent to the passing of a City employee:
That with the approval of the Mayor or Chief Administrative Officer, the flags at City
Hall be lowered as a symbol of mourning.
That with respect to flags flown at all other City facilities, the decision to be left with
the Department Head responsible for the said facility.
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That in each instance, the flag(s) be lowered from the time of passing until after the
funeral. When two or more flags are flown together at a City facility, all flags will be
half-masted."
10. COUNCIL PROCEDURE - SPECIAL COUNCIL MEETING AGENDAS
The Committee was in receipt of a report from R. W. Pritchard dated December 20, 1996 outlining
the current Council procedure for adding items to Special Council agendas as well as a survey of
the practices of other Ontario municipalities in this regard.
On a motion by Acting Mayor B. Vrbanovic,
it was resolved:
"That Council re-affirm it's current policy relating to the procedure for adding items to
special Council agendas as outlined in Chapter 25 (Council Procedure) of The City of
Kitchener Municipal Code."
11. 1997 FEDERAL INFRASTRUCTURE WORKS PROGRAM
Acting Mayor Vrbanovic referred to a recent commuiniqu~ from the Federation of Canadian
Municipalities dated January 6, 1997 advising that the Federal government has made an offer to
the Provinces to extend the Program to cover the 1997 construction season.
On a motion by Acting Mayor B. Vrbanovic,
it was resolved,
"That Kitchener City Council positively acknowledge, through the Ministry of Finance, the
Federal government's offer to extend the Infrastructure Works Program into 1997; and
further,
That the Mayor correspond with the Premier of Ontario, the Provincial Minister of Finance
and local MPP's, urging the Province to accept the Federal government's offer of an
extension of the tri-partite Program into 1997."
12. EXTENSION AGREEMENT - 209-223 FREDERICK STREET/18 BINGEMAN
The Committee was in receipt of a report from O. den Ouden dated December 23, 1996
concerning a request that the City enter into a six-month extension agreement relative to taxes
owing on the above properties.
12. EXTENSION AGREEMENT - 209-223 FREDERICK STREET/18 BINGEMAN - CONT'D
On a motion by Councillor K. Redman,
it was resolved:
"That no action be taken on the request of Dr. Norman McMurchy that the City enter into a
six-month extension agreement with 567950 Ontario Limited, the owner of 209-223
Frederick Street/18 Bingeman Street, so as to allow additional time to redeem the
cancellation price with regard to the current tax sale proceeding."
Councillor Redman pointed out that the property owners have known about the tax sale
proceedings to recover taxes owing for at least 18 months.
13. EXTENSION AGREEMENT - 255 KING STREET WEST (KING CENTRE)
The Committee was in receipt of a report from O. den Ouden dated December 20, 1996
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CITY OF KITCHENER
concerning a request for an extension agreement relative to taxes owing on the above property.
Mr. Raymond Royce, President, appeared on behalf of King Centre (Kitchener) Inc. and advised
that since purchasing the Centre, additional, unforseen expenses have emerged, and as a result
the revitalization process will be slower than expected. Mr. Royce advised that he is confident the
tax arrears can be dealt with in the next six months. He elaborated to indicate that the expenses
referred to are for the most part structural repairs with some cosmetic improvements with
combined costs of between $250,000.00 and $300,000.00. Acting Mayor Vrbanovic questioned
how it could be less expensive to continue paying arrears penalties as opposed to seeking
additional bank financing at a lower rate, and Mr. Royce replied that though there is equity in the
building it is difficult to get additional funding. Acting Mayor Vrbanovic expressed a concern over
setting a precedent through granting extensions during tax sale proceedings, and questioned
whether the City has done this before. Mr. Gazzola replied that the whole tax sale process is a
new area for the City, with the Goudies building being the most recent example. He added that to
date, the only extension granted has been the one dealt with by the Committee this date. In
response to a further question, Mr. Royce advised that he was aware of the taxes owing at the
time of purchase, but was under the impression that these could be paid off over a period of time,
irrespective of the tax sale process. Councillor Galloway asked whether the City is fully protected
by virtue of the equity in the property, and Mr. Gazzola replied that though he is not sure of the
exact sale price, this equity should be sufficient to cover the $1.8 million in taxes owing.
Moved by Councillor G. Lorentz,
"That a by-law be presented to City Council for enacting on January 20, 1997, authorizing
an extension agreement with King Centre (Kitchener) Inc., the owner of 255 King Street
West, in accordance with the Municipal Tax Sales Act, allowing a further six months to
redeem the cancellation price; and further,
That said agreement shall be in effect from February 22, 1997 up to and including August
22, 1997, following which the tax sale proceeding shall continue."
Councillor Lorentz pointed out that the circumstances involving the King Centre differ from the
Frederick and Bingeman Street properties considered earlier this dated, in that the latter owners
have had a longer period of time to deal with the tax liability. However, he suggested that his own
position will be different six months from now, and that the King Centre owners should be put on
notice that there will be no further extensions.
The motion by Councillor G. Lorentz to grant a six-month extension agreement with the King
Centre (Kitchener) Inc. was voted on and was Carried.
14.
15.
16.
17.
COLLECTION OF BUSINESS TAXES
The Committee agreed to a request by Acting Mayor Vrbanovic, speaking on behalf of Councillor
Jake Smola, that consideration of the information report from O. den Ouden dated December 11,
1996 be referred to the January 27, 1997 meeting of the Finance and Administration Committee.
MONTE CARLO LICENSES
The Committee received, as information, the report of Ms. J. Koppeser dated January 8, 1997
listing the Monte Carlo events recently approved by staff.
TOUCHSCREEN ASSESSMENT ROLL
Mr. G. Sosnoski demonstrated a recently acquired touchscreen version of the City's assessment
roll which will be located in the Clerk's Division for use by the public and staff.
NEXT MEETING
The next regularly scheduled meeting of the Finance and Administration Committee will be held on
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CITY OF KITCHENER
18.
Monday, January 27, 1997. Prior to that the Committee will meet to review the 1997 Operating
Budget on January 20 and 24, 1997.
ADJOURNMENT
On motion, the meeting adjourned at 12.20 p.m.
G. Sosnoski
Manager of Corporate
Records/Assistant City Clerk