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HomeMy WebLinkAboutFinance & Admin - 1997-03-17FAC\1997-03-17 MARCH 17, 1997 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: Councillors T. Galloway, G. Lorentz, K. Redman, Jake Smola, John Smola, B. Vrbanovic, M. Wagner, C. Weylie and M. Yantzi. Mayor R. Christy was in attendance for part of the meeting. Others present: Ms. L. MacDonald, Ms. R. Upfold, Mrs. J. Koppeser, Ms. L. Pasternak, Messrs. J. Gazzola, T. McCabe, L. F. Parkhouse, O. den Ouden, J. Shivas, J. Witmer, T. Clancy, M. Grummett and G. Sosnoski. 1. CAPITAL IMPROVEMENTS - KITCHENER TRANSPORTATION CENTRE Mr. Stephen R. Grant, Madorin, Snyder, Barristers and Solicitors, appeared on behalf of Mr. John Savvidis, the owner of Transfers Restaurant which operates in leased premises at the Kitchener Transportation Centre. The Committee was previously in receipt of a written submission from Mr. Grant dated March 12, 1997. Mr. Grant advised that Transfers Restaurant requires renovations to the Transportation Centre to ensure the viability of the business. He referred to the construction of an addition which would involve closing the patio area as well as interior renovations including the removal of washrooms located within the premises and the expansion of the restaurant area at a combined cost of approximately $235,000.00. He pointed out that cash flow and income from the restaurant is insufficient to carry out the proposed capital improvements while paying rent at the current rate. He advised that his client is now proposing to carry out the interior renovations only, estimated to cost approximately $100,000.00, at his own expense, but in order to do so he requires a new lease agreement with a base rent more accurately reflecting rent for comparable premises in the Downtown core. Mr. Grant advised that his client presently pays $19.53 per square foot plus common area maintenance expenses, and that comparable rents in the City core range from $4.42 to $10.58 per square foot, with no common area maintenance expenses applicable to the highest rate, only reality taxes. Mr. Grant advised that the present lease ends in 1998; however, his client wishes to proceed with renovations as soon as possible and is asking for a new long term lease at a more marketable rent of $9.00 or $10.00 square foot applicable to the recalculated square footage leased to the restaurant. He also noted that Transfers is amenable to a 10 year lease with rights of renewal for two further 5 year terms so as to assure the City of it's commitment as a long term tenant. It was also noted that the area calculation in the present lease should be 1,713 square feet not 1,435 square feet. Ms. Dale Robin-Landry appeared in her capacity as the Interior Designer for the proposed renovations of Transfers Restaurant and circulated a series of drawings dated March 1997. Ms. Landry explained that the proposed renovations include relocating a door, bathrooms and kitchen and installing a walk-in cooler which would require an extension to the current building. She noted the seating capacity in the restaurant will not be increased. In response to a question, Ms. Landry advised that at this point there are no exterior changes proposed, unless the owner decides to pursue enclosure of the patio area. In response to a question from Councillor Ziegler concerning the rental rate, Mr. Gazzola suggested that the entire matter be referred back to the staff negotiating team comprised of L. Proulx, D. Arnold and R. Upfold to allow them an opportunity to work with the request. Mr. Grant noted that to date the best staff proposal has been $14.00 per square foot which is not Iow enough to allow his client to proceed with the renovations. On a motion by Councillor M. Wagner, it was resolved: "That the submission of Mr. Stephen R. Grant on behalf of his client, Mr. John Savvidis, owner of Transfers Restaurant concerning proposed alterations to the Kitchener Transportation Centre and the rental rate for the current and proposed premises be referred to the staff negotiating team for a report to be considered in a caucus meeting of Council on or before April 21, 1997, with said report to include the team's evaluation of the long-term benefits to the City of the proposed renovations, and information as to what other tenants are paying the City for rent as well as rental rates for comparable restaurant space in the Downtown core." FINANCE & ADMINISTRATION COMMITTEE MINUTES MARCH 17, 1997 - 54 - CITY OF KITCHENER Mr. Randy Zivkovic was registered as a delegation this date concerning relocation of the Anabella Studio at 91 Queen Street South but did not attend. 2. ADDITIONAL STREET VENDOR - REGGIES DELI Mr. Arnold Attwooll, Reggies Deli, appeared to request approval to operate a hot dog cart at a second site in the Downtown. Council was in receipt of a staff report from J. Koppeser dated March 11, 1997 recommending no action on the request on the basis that the selection process outlined in the Street Vendor By-law should be adhered to in the interest of fairness. Mr. Attwooll advised that his preference would be to locate the cart at the corner of King and Frederick Streets outside of the former Toronto Dominion Bank, and that the cart would employ two people on a full-time basis. Councillor Yantzi questioned whether this location would be appropriate in the event the former bank became a restaurant with the owner having the option to extend the business into the City right-of-way. Mr. Attwooll responded that an alternate location would be across the street at Speaker's Corner. Councillor Redman questioned whether this is the year that Council wished to open up all vendor locations to competition, and Mr. Parkhouse replied that in his recollection Council's previous direction related only to renewal of existing licences. He pointed out that when a request relates to a new location, the criteria in the By-law should be followed and a competition held. Councillor Yantzi suggested that at present there is one less location in the Downtown than in the past and that on this basis an additional hot dog cart should be considered. Mr. Parkhouse replied that this is not entirely true, but rather the overall number of vendors is the same, though some of the locations have changed. Councillor Yantzi agreed that the vendors should be selected by the established process; however, Council should support the request for an additional free standing location in the Downtown. Councillor Lorentz offered the opinion that the current number of street vendors is sufficient to meet Council's objective, and reminded the Committee that Downtown restaurants also have the option of extending their business into the sidewalk area. On a motion by Councillor K. Redman, it was resolved; "That no action be taken on the request of Mr. Arnold Attwooll, Reggies Deli, for permission to operate a hot dog cart at a second location in Downtown Kitchener as outlined in his correspondence dated February 14, 1997." 3. MANDATORY BUILDING INSPECTIONS Council was in receipt of a report from J. Witmer dated February 19, 1997. The Committee previously dealt with recommendations 2.1 and 2.3 and was now asked to address recommendation 2.2 as it relates to mandatory inspections. Mr. Witmer referred to schedules A through G of the report which indicate Code and By-law inspection requirements for various types of buildings compared to the current Kitchener service level. He also drew the Committee's attention to the list of mandatory building inspections required by Section 2.4.5 of the Ontario Building Code, noting that at present Kitchener is not performing all of these. Councillor Jake Smola questioned when the outstanding backlog of permit inspections would be completed, given Council's recent approval of contract staff for this purpose. Mr. Witmer clarified that the contract position is intended to assist in clearing the backlog but also to cope with increased activity as a result of new building starts. He suggested that a minimum of two years will be required to complete the backlog due to the volume and the need for mandatory daily inspections. Councillor Jake Smola enquired as to the feasibility of a fine structure applicable to contractors who do not call for proper inspections. Mr. Witmer replied that this option is being considered in conjunction with the Home Builders' Association. 3. MANDATORY BUILDING INSPECTIONS- CONT'D FINANCE & ADMINISTRATION COMMITTEE MINUTES MARCH 17, 1997 - 55 - CITY OF KITCHENER Councillor Galloway enquired why the Building Division is asking Council for it's endorsement of inspections which are mandatory under Provincial legislation. Mr. Witmer explained that he wanted Council to be aware of what the City is not doing, and suggested that Council's endorsement would assist him in ensuring appropriate completion as per Code requirements. In response to a further question, Mr. Witmer advised that the service levels of municipalities varies across the Province as their is no legislated minimum service level. He suggested that Kitchener is behind most municipalities of it's size, and in some specific areas lags behind smaller municipalities. Councillor Galloway enquired whether a building contractor could use private inspectors for the Code inspections, and Mr. Witmer replied that inspection functions could be transferred, but municipal liability can not. He added that the only way for the municipality to exercise proper risk management is to have direct control of inspection staff. Councillor Galloway referred to the use of consulting engineers on other City projects and suggested that this is not dissimilar to the inspection area. Mr. Witmer replied that requirements with respect to roads differ significantly from those of buildings, and pointed out that Building Division staff are Code proficient as this is their major area of concentration, whereas private contractors are not and often appreciate the City's expertise in this area. Councillor Galloway voiced the opinion that the recommendation before the Committee is redundant. Councillor Wagner enquired whether the municipality could opt out of specific Code inspections without incurring liability, and Mr. Witmer advised that this depends on the level of risk the municipality is prepared to assume in performing selected inspections relative to specific types of structures. Councillor Wagner suggested that the City should be concerned about the potential liability in this area. In response to a further question, Mr. Witmer advised that in order to comply with all requirements of the Code additional expertise would be required and would likely take the form of hiring staff with the expertise to address a particular area of inspections or by training or by improving the skills of existing staff. Councillor Redman enquired whether Mr. Witmer felt Kitchener was providing an adequate level of service to the public and he replied that in his opinion the service is adequate, and referred to the fact that the City has never had a structural failure. However, he stressed that at present, staff do not have the expertise to perform all aspects of Code inspections. Councillor Redman put forward a motion requesting a staff report on a recommended course of action which was not accepted by the Chair. Mr. McCabe pointed out that the purpose of the report is to make Council aware of where the City stands with regard to building inspections and suggested that it be received as information if the Committee feels an endorsement is inappropriate. Councillor Jake Smola enquired whether the City has been sued over the past ten years with respect to building deficiencies and Ms. L. MacDonald replied that there is one lawsuit under way at present involving both the City and Mr. Witmer which is in access of $1,000,000.00. Mr. Shivas replied that he would have to check with the City's insurers; however, he does not believe there have been a great number of lawsuits in the past. On a motion by Councillor M. Wagner, it was resolved: "That Council accept the report of J. Witmer dated February 19, 1997 concerning the requirements for mandatory inspections as contained in Subsection 2.4.5 of the Ontario Building Code; and further, That staff report on the City's potential liability at this time given the current inspection situation, and recommend how the City can address mandatory inspections which are not currently performed." RESIDENTIAL REHABILITATION ASSISTANCE PROGRAM (RRAP) The Committee was in receipt of Planning and Development Department report PD97/24 (March 7, 1997) recommending the City's continuing involvement in administering the Program and requesting approval of a Loans Officer position on a temporary basis in 1997 to assist with FINANCE & ADMINISTRATION COMMITTEE MINUTES MARCH 17, 1997 - 56 - CITY OF KITCHENER Program delivery. The Federal government recently announced a one year continuation of the Program. Councillor G. Lorentz put forward the staff recommendation. Councillor Vrbanovic questioned whether existing department staff could be diverted to assist in Program delivery and Mr. McCabe replied that if this were the case, Mr. Pearce would have to be involved to a greater degree and this would have a negative impact on his involvement in the Downtown and other building inspection duties. Mr. Witmer clarified that home visits are required and that more loans can be processed with an additional person looking after administration. Mr. Gazzola advised that he would like to investigate Councillor Vrbanovic's suggestion and would like to use any savings in this regard toward the gapping target incorporated in the 1997 budget. Councillor Lorentz accepted, as a friendly amendment, a suggestion from Councillor Vrbanovic that the second part of the recommendation relating to the Loans Program Officer be amended to indicate that the Interim Chief Administrative Officer would review the request in light of the feasibility of using gapping as a potential way of filling the position. He also suggested that the Program be marketed outside of the Downtown core. Councillor Lorentz also accepted as a friendly amendment a suggestion by Councillor Galloway that the program be marketed through Project Lift. On a motion by Councillor G. Lorentz, it was resolved: "That the City of Kitchener continue the delivery of the Residential Rehabilitation Assistance Program (RRAP) until March 31, 1998, and that the request for a temporary Loans Program Officer in 1997 to assist with program delivery be referred to the Interim Chief Administrative Officer for consideration as to the feasibility of using gapping as a means to fill this position; and further, That the Program be marketed outside of the Downtown core as well as through Project Lift." EVENT LICENCES The Committee was in receipt of reports from J. Koppeser dated March 11, 1997 concerning licence fee waivers with respect to the Fire Fighter's Muster and Joseph Schneider Haus. Staff recommended approval of the request relating to the Refreshment Stand Licence for the Fire Fighter's Muster and recommended no action with respect to the Food Vendor Licence for the Muster and the waiving of licence fees for the Waterloo County Craft Show and Fair. On a motion by Councillor C. Weylie, it was resolved: "That Council waive the Specific Location Daily Sales Licence fees for the Fire Fighters' Muster to be held May 24, 1997 at the Doon Heritage Crossroads." On a motion by Councillor C. Weylie, it was resolved: "That the City of Kitchener has no objection to a Refreshment Stand Licence being issued to the Doon Heritage Crossroads to operate three refreshment stands during the Fire Fighters' Muster, May 24, 1997, at the reduced fee of $1.00." EVENT LICENCES - CONT'D On a motion by Councillor C. Weylie, it was resolved: "That Council waive the required licence fees for the Waterloo County Craft Show and Fair to be held at the Joseph Schneider Haus on August 23, 1997." 6. 1997 STREET VENDOR BY-LAW FINANCE & ADMINISTRATION COMMITTEE MINUTES MARCH 17, 1997 - 57 - CITY OF KITCHENER The Committee was in receipt of a report from J. Koppeser dated March 11, 1997. The staff recommendation with respect to Reggies Deli and the expansion of the current number of street vendor locations was dealt with earlier in the meeting under delegations. On a motion by Councillor G. Lorentz, it was resolved: "That the Legal Department prepare a 1997 Street Vendors By-law similar to that enacted in 1996." Mayor R. Christy entered the meeting at this time. CORPORATE OFFICE SOF'I'VVARE - MICROSOFT/COREL The Committee was in receipt of a report from M. Grummett dated March 5, 1997 comparing replacement software products marketed by Microsoft and Corel. Mr. Grummett reviewed the report noting that it was previously considered by Management Committee. He noted that the City has already begun to invest in the Microsoft product, but due to aggressive pricing by Corel thought it advisable to approach the Committee to determine whether Council wished to discontinue investment in the Microsoft product or divert funding to Corel. Mr. Grummett also noted that the Corel product could be purchased on a two year lease at a cost of $10.00 per user; however, there is no guarantee that similar discount pricing would apply in future years. Mr. Gazzola commented that in the long run using a product with a Windows based platform will generate savings, and he referred to a number of programs currently running or under development which are Windows based. He added that if no objections are raised this date, staff will proceed with implementation of the Microsoft product. CORPORATE COMMUNICATIONS POSITION Councillor Wagner previously requested that the Committee consider creating a staff position responsible for communications and media liaison. Mr. Gazzola advised that staff are presently putting together a team which will pursue this issue in the coming weeks. He requested direction as to where the team should report, the required skill set and the amount of money Council is prepared to spend for such a position. Councillor Wagner suggested that it was his impression a consultant was to offer advice in this regard and work with Mr. Gazzola. Councillor Galloway noted that the Corporate Action Plan identifies a first step in this process; namely, an inventory and a communications plan at which point the decisions referred to by Mr. Gazzola would be made. Councillor Redman stressed the need to look at internal as well as external communications. INFORMATION REPORTS The Committee received a report dated March 12, 1997 listing the Monte Carlo events recently approved by staff. 10. 11. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, April 7, 1997. ADJOURNMENT On motion, the meeting adjourned at 11:50 a.m. FINANCE & ADMINISTRATION COMMITTEE MINUTES MARCH 17, 1997 - 58 - CITY OF KITCHENER G. Sosnoski Manager of Corporate Records/Assistant City Clerk