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APRIL 21, 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: Councillors Jake Smola, M.
Wagner, M. Yantzi, C. Weylie, John Smola, G. Lorentz, B. Vrbanovic and T. Galloway. Mayor R. Christy
entered the meeting after its commencement.
Others present: Ms. P. Houston, Ms. J. Koppeser, Ms. N. Chambers and Messrs. J. Gazzola, J.
Hancock, O. den Ouden, T. Clancy, J. Shivas, D. Paterson, T. McCabe, L.F. Parkhouse and L.W. Neil.
1. POT HOLE CLAIM - T. PIGEAU
The Committee was in receipt of a letter dated April 4, 1997 from Mr. Tim Pigeau appealing denial
of his claim for damages incurred as a result of his vehicle striking a pothole. Attached to the
agenda was a copy of Mr. Pigeau's February 6th claim letter and correspondence and
attachments provided by Ms. N. Chambers, Risk Manager, that deal with background relative to
this issue.
Mr. T. Pigeau appeared as a delegation in respect to his claim and contended that the City was in
fact liable because of the size of the pothole which would suggest inadequate road maintenance
since such a large pothole would not develop in a few hours.
Several members of Council posed various questions to the delegation concerning the incident
with particular focus to determining if there was any chance that the City was negligent by failing to
repair the pothole when first advised. In consideration of City Policy and in the absence of any
information that would evidence neglect, Councillor T. Galloway stated that the City has to rely on
the advice given to it by its insurance adjusters and staff. Councillor M. Wagner commented that
potholes have been endemic from the past winter and that he was satisfied that staff as a matter of
policy react expeditiously.
On a motion by Councillor T. Galloway,
it was resolved:
"That no action be taken in regard to a February 6, 1997 claim submitted by Mr. Tim Pigeau
relative to repair cost in the amount of $128.23 incurred as a result of his vehicle striking a
pothole."
2. RAFFLE LICENCE APPROVAL - K-W OKTOBERFEST
The Committee was in receipt of a report dated April 15, 1997 from Ms. J. Koppeser concerning a
request from Kitchener-Waterloo Oktoberfest for approval to hold a raffle from May 5 to November
25, 1997.
On a motion by Councillor G. Lorentz,
it was resolved:
"That the City of Kitchener has no objection to a lottery licence being issued to the
Kitchener-Waterloo Oktoberfest, to hold a Raffle from May 5 to November 25, 1997."
Notice was previously given that any recommendation regarding this matter would be forwarded to
the Special Council Meeting this date for ratification.
3. MIDWAY SITE APPROVAL - STRASBURG ROAD
The Committee was in receipt of a memorandum dated April 18, 1997 from Ms. J. Koppeser
responding to a request received from Homeniuk Rides Incorporated for permission to operate a
midway at 245 Strasburg Road (former Best Pipe property) on April 25 - 27, 1997. Ms. Koppeser
recommended the licence be issued subject to the organization obtaining necessary approvals. In
this regard it was noted in her memorandum that the Public Works Department will not grant their
permission for the midway to be held on the site due to possible environmental concerns. Mr. S.
Gyorffy provided the Committee with written comment of the Public Works Department which
outlines that when a former industrial site is rezoned and redeveloped for other uses, the owner
must complete an environmental audit and satisfy the
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CITY OF KITCHENER
3. MIDWAY SITE APPROVAL - STRASBURG ROAD (CONT'D)
Ministry of Environment and Energy that there are no environmental contaminants remaining on
the site from the previous use. It was stated in his memo that he understood the Ministry has not
approved the site for other uses as of this date.
Messrs. Randy Homeniuk and Oscar Majunke appeared as a delegation with respect to their
application to operate a midway.
Councillor G. Lorentz referred to the concern expressed by the Public Works Department and Mr.
T. McCabe advised that the concern was probably raised as a result of zone change and official
plan circulation resulting in a response from the Ministry of the Environment advising that the
property was contaminated and contaminants were leaving the site. He indicated that he believed
the issue for the Ministry was the matter of limestone dust on the site.
The Committee discussed the request and noted that it was clearly not possible to obtain the
Ministry approval by April 25th. Councillor T. Galloway commented that the property was currently
being used for other purposes and it would appear contamination has not prevented the property
from being used for these other purposes. The delegation advised that they propose to locate just
along the Ottawa Street frontage. The Committee was of the view that since the request was for
only three days this year only, that it be approved.
On a motion by Councillor M. Wagner,
it was resolved:
"That a licence be granted to Homeniuk Rides Incorporated, to operate a midway on April
25-27, 1997 inclusive, at 245 Strasburg Road, conditional upon obtaining the necessary
Licence and Police, Health, Public Works and Planning approvals."
Notice was previously given that any recommendation regarding this matter would be forwarded to
the Special Council Meeting this date for ratification.
4. LONG TERM DISABILITY BENEFITS
The Committee was in receipt of a report dated April 16, 1997 from Mr. J. Gazzola dealing with
benefit coverage for LTD recipients. Also attached to the agenda was a copy of an April 14th
memorandum from Mr. D. Paterson on this matter.
Councillor B. Vrbanovic disclosed a pecuniary conflict of interest and abstained from all discussion
as his wife is employed by the Corporation.
Mayor R. Christy entered the meeting at this point.
Mr. D. Paterson advised that other options were looked at in respect to this matter and that the
recommendation represented a middle ground on the issue.
Councillor J. Ziegler questioned what the cost was in respect to years of service being pegged at
20 and 25 years. Mr. J. Gazzola advised that at 20 years service the cost drops from $10,900 to
$7,500 and at 25 years drops to between $5,800 - $6,000.
A general discussion followed concerning the criteria for the plan. Mr. D. Paterson noted that all of
the plan design was negotiated but that any enhancement was Council's decision.
Councillor G. Lorentz proposed a motion to adopt the recommendation in the staff report. He
noted that 10 years was a very fair level of employer assistance. Additional comments were
forthcoming from several members of the Committee, most of whom supported Councillor
Lorentz's motion. Councillor J. Ziegler advised that he would like to add a requirement to the
motion that would provide for review of this voluntary coverage in five years before consideration is
given to a further extension and Councillor G. Lorentz accepted this as a friendly amendment.
4. LONG TERM DISABILITY BENEFITS (CONT'D)
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CITY OF KITCHENER
On a motion by Councillor G. Lorentz,
it was resolved:
"That effective May 1, 1997, for a 5 year term, LTD recipients with a minimum of 10 years
service with the City of Kitchener be provided with Extended Health Care and Dental
Coverage benefits until they reach the age of 65 and at no cost to the recipient; and further,
That the costs and general experience of this voluntary coverage provided by the City be
reviewed in 5 years before consideration is given to renewing the terms of this benefit
coverage."
Councillor B. Vrbanovic previously disclosed a pecuniary conflict of interest and abstained from all
discussion and voting as his wife is employed by the Corporation.
LOANS PROGRAMS FOR COMMUNITY ORGANIZATIONS
The Committee was in receipt of a memorandum dated April 17, 1997 from Mr. J. Gazzola dealing
with Community Assistance Loan Program. It was noted in Mr. Gazzola's report that over the past
several years a practice has developed whereby Community Organizations have been awarded
interest free loans to assist them in providing various types of equipment and other assets for the
benefit of the Corporation. These assets are then acquired immediately and the loans are repaid
over a maximum of 10 years. An itemized list of typical projects was documented in the report.
Councillor G. Lorentz advised that he had requested Mr. J. Gazzola to prepare a funding strategy
for acquisition of such assets and he suggested that it made sense to apply a five year term as
part of the criteria. Councillor B. Vrbanovic commented that the proposed program was a
responsible way of dealing with initiatives that have been coming to Council. He noted that the
cost to the Corporation was the 'interest forgone' on the funds advanced and that it was far lower
than what we would otherwise have to pay. Councillor Vrbanovic suggested that the criteria of
term of repayment be up to 10 years. Councillor M. Wagner indicated that he supported the
recommendation and suggested that if a public relations staff person was in place the program
could be more widely promoted. He stated that his concern was with regard to the funding
limitation of $100,000 contained in item #5 of the proposed criteria. Also, he suggested that the
staff team address promotion of the loan program.
Councillor T. Galloway expressed concern over to what extent the City should formalize this
matter, particularly with respect to groups that choose to take advantage of the fund rather than
use their own monies. He stated he would like to see criteria being specific to infrastructure
(buildings and equipment) rather than directed toward programming. Councillor M. Yantzi
suggested that more thought be given to the name of the loan program to distinguish it properly
from other programs. Councillor Jake Smola suggested that one of the criteria might be a
requirement for participating percentage of financial commitment by organizations and that not for
profit community organizations be dealt with under the criteria. Councillor B. Vrbanovic proposed
adding a further direction to the staff recommendation requesting the staff team to develop criteria
and bring forward a recommendation at a future meeting. Councillor T. Galloway recommended
that in considering any requests, information be required as to an organizations ability to fund
improvements and Mr. J. Gazzola agreed that Council could deal with requests by looking at the
organizations financial position and plans for the future. Councillor Jake Smola questioned if
handicap accessibility could be 100% funded under the program in respect to upgrade of a
building for such purpose.
LOANS PROGRAMS FOR COMMUNITY ORGANIZATIONS (CONT'D)
On a motion by Councillor B. Vrbanovic,
it was resolved:
"That a Community Assistance Loan Fund be established to provide interim financing to
Community organizations for the purpose of donating equipment and facilities to the City of
FINANCE & ADMINISTRATION COMMITTEE MINUTES
APRIL 21, 1997
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CITY OF KITCHENER
Kitchener; and further,
That the funding for this initiative be provided from the following:
General Capital Contingency
Gasworks Surplus Fund
Future Capital Forecasts
($100,000 per annum for 3 years)
$ 90,000
200,000
300,000
Current Projects in Progress
590,000
410,000
Special Fund Balance
$1,000,000
And further, that Mr. J. Gazzola, Interim Chief Administrator, be authorized to establish a
Staff Team to develop criteria for the loan program and bring forward a recommendation to
a future meeting of the Finance and Administration Committee for its consideration and
approval."
INTEGRATED CASE EXERCISE - RESIDENTIAL ALARM MONITORING
The Committee was in receipt of a report dated April 16, 1997 prepared by J. Hancock, Fire Chief
and Councillor B. Vrbanovic. The report deals with business cases developed by Wilfrid Laurier
University students analyzing Kitchener's Direct to Fire Alarm Monitoring Program. The report
provided a brief overview of the information submitted in this regard and it was noted that the
recommendations would assist in creating a final business case for consideration by Council in
May or June 1997.
Mr. J. Hancock reviewed the summary table attached to the report dealing with capital cost,
consumer cost, payback period, marketing ideas and contingency plans and briefly provided
comparative comments with regard to the submissions of the five student groups. Councillor B.
Vrbanovic reviewed the issues of technology, pilot project, market launch, household reach and
billing responsibility and provided comparative comments among the responses of the five student
groups.
Mr. J. Hancock advised that the issue would be brought back to Committee at the beginning of
May and that a marketing plan would be tabled along with options for roll-out of technology.
MONTE CARLO LICENCES
The Committee was in receipt of an April 16, 1997 listing of Monte Carlo events recently approved
by staff of the Licensing Division.
NEXT MEETING
The next regularly scheduled meeting of the Finance and Administration Committee will be held on
Monday, May 5, 1997.
ADJOURNMENT
On motion, the meeting adjourned at 11:38 a.m.
FINANCE & ADMINISTRATION COMMITTEE MINUTES
APRIL 21, 1997
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CITY OF KITCHENER
Assistant City Clerk