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HomeMy WebLinkAboutFinance & Admin - 1997-02-10FAC\1997-02-10 FEBRUARY 10, 1997 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date commencing at 10.10 a.m. under the Chairmanship of Councillor J. Ziegler with the following members present: Mayor R. Christy, Councillors T. Galloway, G. Lorentz, K. Redman, Jake Smola, John Smola, M. Wagner, C. Weylie and M. Yantzi. Others present: Mrs. J. Koppeser, Ms. R. Upfold, Messrs. J. Gazzola, R. W. Pritchard, S. Gyorffy, L. F. Parkhouse, J. Shivas, T. Clancy, E. Kovacs, D. Paterson and G. Sosnoski. 1. SURPLUS CITY LANDS - HOMER WATSON/MANITOU The Committee was in receipt of a report from G. Anderson dated January 21, 1997, recommending that the subject lands be declared surplus and be transferred to the Federal Government for easement purposes. Councillor G. Lorentz moved the staff recommendation with respect to surplusing and the transfer of the subject lands. Councillor Galloway questioned why it is recommended the property be sold rather than an easement granted. Mr. Shivas replied that the intent is to convey an easement and not to sell the property, and the recommendation reflects a procedural requirement with regard to the sale and transfer of easements. Councillor Galloway pointed out that the recommendation specifically refers to a transfer of lands, and Mr. Shivas suggested that the wording could be changed to indicate an easement is being transferred to the Federal Government. Councillor Galloway suggested this change in wording, and Councillor Lorentz accepted the suggestion as a friendly amendment. On a motion by Councillor G. Lorentz, it was resolved: "That the vacant parcel of land legally described as Part of Lot 3, Registrar's Compiled Plan 1521 designated as Part 1, Plan 58R-9775 be declared surplus to the City's needs and a service easement transferred to Her Majesty the Queen in Right of Canada as represented by the Minister of Supply and Services and of Public Works." 2. BINGO PRIZE BOARDS The Committee was in receipt of a report from J. Koppeser dated January 24, 1997 outlining a recommendation of the Twin City Committee with respect to the issuing of licences for a set number of bingos having $5,500.00 prize boards. Councillor M. Yantzi disclosed a conflict of interest and abstained from all voting and discussion concerning bingo prize boards as he is employed by an agency which utilizes bingos. Mr. Lew Ayers and Ms. Susan Greatrix appeared on behalf of the City of Waterloo. Councillor K. Redman put forward a motion to adopt the staff recommendation which would allow the licensing of up to six $5,500.00 prize boards per association, per year. Councillor Weylie enquired why Councillor Vrbanovic and the Interim Chief Administrative Officer voted against the prize board recommendation at the Twin City Committee, and Mr. Gazzola replied that most of the charities present were opposed. Mrs. Koppeser clarified that the charities wanted some assurance that the prize board would not be set at $5,500.00 all the time, and Committee members agreed this should not be the case but could offer no assurances. Councillor Weylie noted that a higher prize board translates into a lower profit for the charitable organization. Councillor K. Redman amended her previous motion to add that Kitchener Council would like Bingo Associations to view the prize board amount recommended as an upper limit which would not be increased. Councillor Lorentz expressed his reservations over further increasing the amount of the prize board, and suggested that the situation be monitored and reviewed in a years time. He FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 10, 1997 -2- CITY OF KITCHENER BINGO PRIZE BOARDS - CONT'D pointed out that if the charities were concerned with the recommendation before the Committee this date representatives would have been in attendance. Mr. Gazzola replied that the charities have expressed concern; however, they have been told repeatedly that Council cannot guarantee that prize boards will not be increased at a later date. On a motion by Councillor K. Redman, it was resolved: Councillor Weylie asked that she be recorded as opposed to the above resolution. "That Licensing staff be authorized to licence up to six (6) $5,500.00 prize boards, per calendar year, per Bingo Association; and further, That at this time, Kitchener Council views this arrangement as an upper limit, not to be increased." PRO-RATING OF AUCTIONEERS LICENCE The Committee was in receipt of a report from J. Koppeser dated February 3, 1997 in response to a request from B. Gray, Past President, Ontario Auctioneers' Association that the licence fee for auctioneers be pro-rated at the point in a year a licence is obtained. Councillor Galloway advised that he appreciates Mr. Gray's dilemma; however, a licence is required to work in the City, and Councillor Ziegler further noted that the date of application is also at the discretion of the applicant. On a motion by Councillor T. Galloway, it was resolved: "That no action be taken on the request of Mr. Barry Gray, Past President, Ontario Auctioneers Association, to consider the pro-rating of the licence fee for auctioneers." UNFUNDED GRAND RIVER CONSERVATION AUTHORITY PROJECTS The Committee was in receipt of a report and recommendation from S. Gyorffy dated January 27, 1997 in regard to changes in Capital Project funding as a result of the loss of Provincial grants. Moved by Councillor John Smola, "That funding for Schneider Creek in the Capital Forecast from 1999 to 2001, in the amount of $4,630,000.00, be deleted ($2,315,000 C/C and $2,315,000 L/L); and, $3,668,000 be provided in the years 1999 to 2001 for the following That funding of projects: Year Proiect C/C L/L TOTAL 1999 2000 2001 Laurel Creek Shirk Place to Grand River $ 445,000 $ 445,000 $ 890,000 Schneider Creek Channel CNR Culvert #1 to CNR Culvert #3 $ 957,000 $ 957,000 $1,914,000 Grand River Boulevard Riverbank Toe ProtectionS 968,000 $ ¢ $ 968,000 $2,370,000 $1,402,000 $3,772,000 4. UNFUNDED GRAND RIVER CONSERVATION AUTHORITY PROJECTS - CONT'D FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 10, 1997 -3- CITY OF KITCHENER That the amount of $3,841,000 be added to the Capital Forecast from 2003 through 2006, as shown on Appendix "B" of the report of S. Gyorffy dated January 27, 1997, to complete the remaining phases of work on Schneider Creek, Laurel Creek, and the Grand River Boulevard Bank Stabilization and further, That consideration be given to advancing projects should other sources of funding become available." Councillor Lorentz noted that this is another instance of Provincial downloading, and suggested that it is imperative to track the cost associated with such actions. He also suggested the need to differentiate between municipal responsibilities, as opposed to responsibilities which were formally part of other areas of jurisdiction. Councillor Galloway agreed, but suggested that the list be made retroactive to encompass the previous three years, and include the cost of supplementary assessments. Councillor Wagner added that in addition to tracking, it is important to have detailed discussion as soon as possible on how to cope with these new responsibilities. He also suggested that the City should investigate additional methods of generating revenue and identify any Provincial legislation required in this regard. Councillor John Smola pointed out that Grand River Conservation Authority properties will no longer be taxed, and this will result in lost revenue. The Committee then voted on the motion by Councillor John Smola to amend the Capital Forecast and it was Carried. A brief discussion took place on how the City would go about tracking the cost of Provincial downloading and an appropriate time frame. Mr. Gazzola pointed out that downloading has occurred in various stages and prior to the current government. Councillor Ziegler suggested tracking in three stages beginning in 1992. Councillor Lorentz indicated his preference for a monthly report and a running total of downloading costs. On a motion by Councillor G. Lorentz, it was resolved: "That the Interim Chief Administrative Officer insure that all costs assumed by the municipality as a result of Provincial downloading are tracked and that this be done in three stages: 1992 -1995; 1996-1997; 1998 and onward; and further, That a monthly information report and a running total in this regard be included as part of the Finance and Administration Committee agenda." RECOVERY OF A PORTION OF MUNICIPAL ELECTION EXPENSES The Committee was in receipt of a report from R. W. Pritchard dated January 30, 1997 concerning recent Provincial legislation which allows the municipality to recover a portion of election expenses from organizations on whose behalf elections are conducted. Mr. Pritchard referred to his report, noting that the City can now recover a portion of election expenses from the Region of Waterloo, the School Boards and the Hydro-Electric Commission. He also pointed out that area Clerks have unanimously endorsed the recovery of capital expenses. Mr. Pritchard advised that he would be bringing forward a report at the February 24, 1997 Finance and Administration Committee meeting concerning replacement of the City's current Votomatic Election System. He pointed out that the current system is based on 1960's technology, and that Kitchener is only one of three municipalities in the Province who are still using Votomatic equipment. Mr. Pritchard reminded Council that a prior report had recommended abandoning the Votomatic System in favour of an Optical Tabulation System; however, Council did not support the recommendation and instead, directed the purchase of a standard centralized tabulation system. RECOVERY OF A PORTION OF MUNICIPAL ELECTION EXPENSES - CONT'D Mr. Pritchard explained why the current system and ballot can no longer be used, noting various factors; including, the creation (proposed under Bill 104) of two new French Language District FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 10, 1997 -4- CITY OF KITCHENER School Boards, the Provincial decision to disallow non-resident electors, and the possibility of any jurisdiction, including the Province, placing questions or by-laws on the ballot. Mr. Pritchard stressed that the current twelve column ballot would have no additional room for any question or by-law. Mr. Pritchard explained the criteria which would be used to recover election costs, noting that if the candidate sits jointly on both Regional and Kitchener Council, costs would be split on a 50-50 basis between the City and the Region. He advised that the Regional Clerk, the General Manager of the Hydro Commission and the School Boards are all aware of the proposal before the Committee this date. Moved by Councillor G. Lorentz, "That pursuant to Subsection 7 (5) of the Municipal Elections Act, 1996, and Section 220.1 of the Municipal Act, the City Solicitor be instructed to prepare a by-law to enable the City to recover a portion of 1997 Municipal Election Operating in Capital Expenses, and that the by-law be applicable to the following: the Regional Municipality of Waterloo; the Waterloo County Board of Education; the Waterloo Region Roman Catholic Separate School Board; the French-Language Public District School Board (proposed under Bill 104); the French- Language Separate District School Board (proposed under Bill 104); the Hydro-Electric Commission of Kitchener-Wilmot; and further, That such recovery also shall apply to any by-law or question submitted to the electors by the Region of Waterloo or any questions submitted by any of the above School Boards, the Hydro Electric Commission of Kitchener-Wilmot or the Province of Ontario, and that calculations in regard to cost recovery shall be based on the following criteria: the number of candidates to be elected to each body; each by-law or question or portion thereof requiring a "Yes" or "No" response shall be considered the equivalent of one candidate; where a candidate sits on both City Council and Regional Council, costs shall be split on a 50-50 basis between the two bodies." Councillor Jake Smola enquired whether there is an opportunity to share a new election system with other smaller municipalities on a fee-for-service basis. Mr. Pritchard replied that though possible, the recovery cost would be very small, and it is uncertain whether such an arrangement would benefit small rural municipalities. He suggested that if appropriate, such an arrangement only be investigated after this election given the volume of other election related changes staff have to cope with. Mr. Pritchard also pointed out that Bill 86 gives the Province the right to have Provincial questions placed before municipal voters at any time outside of municipal elections. Councillor Galloway advised that he would not support the motion on the basis that there is only one taxpayer and that the municipality currently provides this service; however, he did acknowledge that the sharing of capital and referenda costs should be investigated. Councillor Redman pointed out that the City is on the threshold of a whole new relationship with the Province and other levels of government, and should use any tools at its disposal to define the nature of this relationship. Councillor Lorentz advised that he supports the motion as the result would be a greater measure of control over expenses as well as improved clarity and accountability. Councillor Wagner enquired whether the operating costs reflect all staff time involved in running an election. Mr. Pritchard replied that staff salaries have not been included in the estimate, unless the cost relates to overtime. He added that approximately 25 individuals work on the election, and the estimate includes only costs which are considered over and above normal operating expenses. Councillor Wagner referred to other instances when costs are charged in their entirety, and suggested that removing the salary component is inconsistent with the City's practice in other areas. 5. RECOVERY OF A PORTION OF MUNICIPAL ELECTION EXPENSES - CONT'D Councillor Lorentz indicated that he would not accept the comments of Councillor Wagner as a friendly amendment, and Councillor Ziegler suggested that the action proposed be dealt with as a separate motion, with a report from staff prior to the next Council meeting on additional operating costs relating to salaries. Mr. Pritchard responded that the 1997 election will differ from past elections and that any additional figures would be gross estimates. He suggested that a more FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 10, 1997 -5- CITY OF KITCHENER accurate accounting could be provided after the 1997 election. Councillor Redman suggested the staff could be asked to monitor the situation and report back prior to the next election in the year 2000. The previous motion by Councillor G. Lorentz to adopt the staff recommendation with regard to partial recovery of election costs was voted on and Carried. Councillor M. Wagner put forward a motion that within one month's time, the City Clerk provide a comprehensive estimate of all election related costs. Councillor Jake Smola suggested that this would be too labour intensive, and asked Mr. Pritchard to indicate his best estimate. Mr. Pritchard replied that staff costs could be between $50,000.00 and $75,000.00. Councillor Lorentz stated that he could not support adding staff salary to the recovery cost, noting that the staff recommendation is a good compromise. Councillor M. Wagner accepted, as a friendly amendment, a suggestion from Councillor Ziegler that the estimate of additional costs by the City Clerk be submitted after the election. The motion was then voted on, as amended. On a motion by Councillor M. Wagner, it was resolved: "That following the 1997 Municipal Election, the City Clerk report to the Finance and Administration Committee on the actual as opposed to the estimated cost of said election, including staff time." COMMEMORATIVE BRONZE PLAQUE - LORD KITCHENER Councillor Galloway advised that he had asked for a discussion this date as to the propriety of the Mayor's recent purchase of a plaque to commemorate the visit by a great nephew of Lord Kitchener. He stressed that the purpose is not to debate the merits of the visit, but to allow him an opportunity to go on record and express his concerns over the purchase and the process followed. Councillor Galloway noted that his name appears on the plaque without his consent, either actual or implied. He pointed out that the Mayor has no right to do this other than by motion or with the consent of the individual. He also noted that Council did not agree to the purchase of the plaque. Councillor Galloway advised that he wishes to disassociate himself from the financial overtones of the plaque purchase. He pointed out that Council has asked staff for all manner of expenditure reductions, and he expressed his concern that part of the justification for purchasing the plaque was that there was money left in the budget. Councillor Galloway also expressed concern that there were policy exemptions granted to allow the purchase of the plaque using 1996 budget funds. Mayor R. Christy circulated correspondence dated February 7, 1997 from an anonymous donor representing a group of business owners offering to pay for the production and installation of the plaque. Mayor Christy then addressed the concerns raised by Councillor Galloway and gave his assurances that there was no attempt on his part to spend unused budget funds, noting that he did not authorize production of the plaque until he knew how the cost would be paid. Mayor Christy pointed out that there are surpluses in most of the Mayor's budget categories, and also that he was not aware of any fiscal policy at the time which would have an impact on the purchase. Mayor Christy stressed that he feels an obligation to represent Council and the citizens of Kitchener wherever possible, and pointed out that this municipality is the only one to his knowledge which bears Lord Kitchener's name, and that there is an COMMEMORATIVE BRONZE PLAQUE - LORD KITCHENER - CONT'D ongoing need to celebrate the heritage of our community. He stated that he assumed the purpose of the account in question was for special items and events and that purchase of the plaque was consistent with the budget category. Moved by Councillor M. Wagner, "That Council accept the offer of a group of anonymous donors to pay for the production FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 10, 1997 -6- CITY OF KITCHENER and installation of a bronze plaque to honour Lord Kitchener and commemorate the recent visit of his great nephew, as outlined in correspondence to Mayor R. Christy and members of Council dated February 7, 1997." Councillor Jake Smola advised that he intended to ask staff to formulate a policy on the placement of plaques at City Hall, and particularly in locations accessible to the general public. He noted his concern that the Mayor did not consult Council prior to installation of the painting of Lord Kitchener or the ordering of the plaque. He stressed that placement of such items should be done by public resolution. Councillor Redman suggested that such a policy should include a route to determine what is installed and where. Councillor Yantzi acknowledged that Mayor Christy tends to take more initiative than the previous Mayor; however, it should be stressed that decisions are made by Council as a whole and not by individual members. Councillor Galloway advised that he would support the motion to accept payment by the anonymous donor but is not pleased that his name appears on the plaque without his consent, which in his view indicates he was responsible for an event he did not support. Councillor Galloway added that he was further denied the right to a public debate before the plaque was ever ordered. Councillor Ziegler agreed that the issue should have been brought before Council. The Committee then voted on the motion to accept the offer of an anonymous donor to pay for the production and installation of a bronze plaque and it was Carried unanimously. Councillor Jake Smola advised that he was prepared to put forward a motion that staff develop a policy for consideration by the Finance and Administration Committee on the placing of pictures and other artifacts on City property and any physical alterations required to accommodate same. Councillor Wagner pointed out that the Public Art Committee already has a policy for the placement of pictures, and they should be asked to report to Council, at which time it would be determined whether a new policy is required. Mayor Christy pointed out that time constraints often prevent everything from coming before Council for a decision, and events sometimes take on lives of their own. He stressed that there is a need to vest some discretion in the Office of the Mayor of a major urban municipality. Mr. Gazzola advised that it is a basic accounting principle that when goods or services are received, they are included for payment in the year they are acquired, and that the City's Auditors would remove or otherwise deal with items that have been dealt with in any other way. He advised that the Mayor did not ask to have the expenditure debited to the 1996 budget. Councillor Galloway responded that he was not sure this is an accurate statement, noting that the invoice was requested prior to December 31, 1996. Mayor Christy advised that he had received a certificate from Ms. D. Gilchrist with respect to the City's contribution toward National Child Day on November 25 and 16, 1996. SICK LEAVE PLAN Members of Council were previously in receipt of a report from D. Paterson dated January 28, 1997 providing background to the current Sick Leave Program and reporting on comparable plans in other municipalities. Councillor Ziegler questioned how the City would deal with existing vested sick leave, and indicated he would like to instruct staff to cost out and advise on Kitchener's divesting itself in a manner similar to Cambridge. SICK LEAVE PLAN - CONT'D On a motion by Councillor K. Redman, it was resolved: "That the Director of Human Resources determine and report on the cost to the City of dealing with the gratuity portion of the Sick Leave Plan vested with existing staff as per the approach taken by the City of Cambridge." OTHER BUSINESS Councillor Redman advised of an upcoming event sponsored by the K-W Symphony which will be FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 10, 1997 -7- CITY OF KITCHENER held in Victoria Park and asked that the $40.00 permit fee be waived. On a motion by Councillor K. Redman, it was resolved: "That Council waive the $40.00 mobile sign licence fee with respect to a sign advertising the February 22, 1997 Family Music Carnival sponsored by the K-W Symphony." Councillor John Smola advised that the Finance Committee of Project Lift met on February 4, and asked that Project Lift be exempt from previous direction to reduce City budgets by 1.5 per cent corresponding to a portion of the 1996/97 staff salary increase. He noted that Project Lift has already experienced significant budget reductions. On a motion by Councillor John Smola, it was resolved; "That notwithstanding the Finance and Administration Committee recommendation of January 24, 1997, Project Lift be exempt from previous direction that its Operating Budget be reduced by a further 1.5 per cent corresponding to a portion of the 1996/1997 staff salary increase." Councillor Ziegler indicated his interest in investigating a mechanism to rollback recent salary increases pending review of the City's Job Evaluation System. He noted that Council was recently advised of retroactive pay increases, notwithstanding the Social Contract, and suggested that this is unacceptable and that Council must be kept informed in this area. He offered the view that many of the increases are not justifiable. He suggested that a sub-committee be formed to review and report in the next two weeks on Job Evaluation increases either since 1993 or from an earlier or later date to be determined. Councillor Ziegler also suggested that the City seek outside legal counsel in regard to any possible roll backs. Councillor Galloway pointed out that the City has an excellent staff but also has a problem with the Job Evaluation system, and specific increases should be reviewed. He suggested that staff expectations must be lowered to reflect appropriate enumeration in the current economic climate, and that there is also a need to look at the retroactivity of pay increases, and whether they are phased in to reflect the learning curve for a new or augmented position. Councillor Galloway also noted that there is a need to look at the longer range salary administration system. Mayor Christy suggested that no action be taken with regard to named individuals until additional information is obtained on the recent increases. Councillor Ziegler suggested that dozens of individuals could be involved and that a uniform policy is required. Councillor Redman advised that she has a problem with Councillor Ziegler's suggestion, noting that Council has to take responsibility for the system currently in place, as well as responsibility for not having asked the right questions. She pointed out that the job reclassifications were in accordance with the evaluation system approved by Council, also noting that some salaries went down as a result of the re-evaluation process. She noted that the earlier reference to the Social Contract is irrelevant as job grade changes were exempt under this legislation. Councillor Redman also pointed out that Mr. Gazzola has already been asked to bring back a report in this regard, and noted her concern over the situation of the individuals named in a recent newspaper article. Councillor Wagner indicated he was unwilling to debate the issue OTHER BUSINESS - CONT'D until the City has obtained an opinion on the legality of wage rollbacks. Councillor Weylie indicated that she doesn't see the need for a sub-committee as suggested by Councillor Ziegler and noted that job re-evaluations relative to department re-organizations and the budget process do not seem to be properly synchronized. Councillor Jake Smola suggested that a portion of the discussion should be held in caucus given the specific salaries and individuals involved, and asked when Mr. Gazzola's report would be available. Mr. Gazzola advised that he was planning to submit the report shortly after the completion of the budget process on March 3, 1997, and stressed that it is important for Council to have all of the details with regard to the current Job Evaluation System and recent adjustments before them. He also pointed out that there are costs involved in bringing in outside consultants with respect to a new job evaluation system. Councillor Galloway assumed the Chair to allow Councillor Ziegler to debate the issue. FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 10, 1997 -8- CITY OF KITCHENER 10. Councillor Ziegler clarified that his suggestion regarding wage rollbacks does not apply to particular individuals, but to groups that have benefited from re-organization. He offered the view that there should be no retroactive increases and that salary adjustments should reflect the time at which the necessary new skills are obtained. Moved by Councillor J. Ziegler, "That following receipt of the report previously requested of the Interim Chief Administrative Officer concerning a possible replacement for the City's existing Job Evaluation System, a committee be struck to consider a possible rollback of salary increases, or a portion thereof, awarded as a result of job re-evaluations completed in conjunction with department reorganizations since 1993 or a date to be determined in the course of the review." Councillor Ziegler stressed that the proposed review of salaries awards under the current Job Evaluation System should be treated independently of any modification or replacement of that System. Mayor Christy stressed the need for an equitable and fair evaluation system as well as the need for the City to pay competitive salaries. Councillor Lorentz asked that Mr. Gazzola submit his report as soon as possible. The Committee then voted on the motion by Councillor J. Ziegler with regard to the possible rollback of salary increases and the motion Carried. Councillor J. Ziegler occupied the Chair. INFORMATION ITEMS The Committee was in receipt of a report from S. Gyorffy dated January 27, 1997 concerning the proposed timing of work on the Voisin Greenway. In response to a question from Councillor Lorentz, Mr. Gyorffy advised that the bag wall repairs in three locations from Ruskview Road to Stonybrook Drive are underway and should be completed before Spring. With regard to channel reconstruction from Westmount Road to Forest Hill Plaza, he advised that tenders will be brought back to Council, hopefully in April of this year. The Committee accepted the Licensing Division report dated February 5, 1997 with regard to Monte Carlo Event licences recently approved by staff. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on February 24, 1997. 11. ADJOURNMENT On motion, the meeting adjourned at 12.23 p.m. G. Sosnoski Manager of Corporate Records/Assistant City Clerk