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HomeMy WebLinkAboutFinance & Admin - 1997-02-24FAC\1997-02-24 FEBRUARY 24, 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: 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. L. MacDonald, Messrs. J. Gazzola, R. Pritchard, T. McCabe, O. den Ouden, J. Hancock, S. Gyorffy, L. Parkhouse, J. Witmer, T. Clancy, J. Shivas, D. Snow and G. Sosnoski. 1. CHARITABLE CASINOS The Committee was in receipt this date of a report from J. Koppeser dated February 18, 1997, concerning the operation of charitable gaming clubs and the new "Superstar Bingo". Reverend James Reese, Benton Street Baptist Church, appeared along with several other ministers and lay representatives of different churches throughout the City, and expressed his concern over the proposed location of charitable gaming halls in the community. He acknowledged that this is a Provincial initiative and asked that Council approach the Province and stress the real dangers of gaming to the community. He offered the opinion that games of chance remove the dignity of work and replace it with greed. Mr. James Somerville also appeared concerning the proposed charitable gaming halls, noting that he is a retired Minister who can speak for the Anglican, United and Presbyterian churches in the community. He reminded Council that the traditional role of government is to protect all citizens, and in the case of gambling, particularly the young and the poor, as they are affected to a greater degree than other segments of society. He strongly recommended holding a referendum on the entire issue of gaming halls in the City. Councillor Yantzi suggested that the delegations speak to local members of the Provincial Parliament, and Councillor Wagner noted that the Province has not given the City a choice in this matter and has already decided where the gaming halls will be located. Reverend Reese suggested that gambling creates a society of individuals who give in order to receive rather than giving or caring for its own sake. He also pointed out that there is a need to examine the negative side of gambling, particularly addiction and related social problems. Mr. Somerville suggested that the community deserves an opportunity to speak to this issue, and suggested that the charities who are supposedly being helped by this initiative will likely be hurt the most. Councillor Wagner noted that during the last election Premier Mike Harris indicated he favoured a referendum on casinos before proceeding with this initiative, but appears to have since changed his mind. Mr. Edward Payne indicated that he would like to see more information on how individuals in other communities have been effected by legalized gambling. Councillor Lorentz responded that the municipality does not have a lot of information in this regard, as has been the case of late with other Provincial initiatives. Councillor Lorentz enquired whether the delegation was aware that Monte Carlo events have and continue to be routinely held in the community. Mr. Somerville replied that the events referred to by Councillor Lorentz are isolated and individual in nature, but that charitable gaming halls can be open 7 days a week, 24 hours a day. He suggested that this constant availability will generate a greater amount of gambling activity. Councillor Lorentz pointed out that local charities could suffer if the charitable casino is located in another community, and Reverend Reese suggested that notwithstanding this, Kitchener should take a moral stance and oppose the proliferation of gambling in the community. Mr. Somerville again stated that irrespective of the outcome, a referendum should be held which would allow citizens to exercise their democratic rights. Councillor Redman encouraged the delegation to consider the non-profit organizations who are trying to do good in the community and are being offered funds through this new initiative. She suggested that these groups should be supported in their efforts. Mr. Somerville acknowledged this, but pointed out that each charity has to individually take a stand with regard to gambling. He suggested that no charitable organization is really helping people if it takes their money with one hand and gives it back to them with another. Councillor Galloway thanked the delegation for their comments this date and noted that many 1. CHARITABLE CASINOS- CONT'D FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 24, 1997 - 42 - CITY OF KITCHENER of the concerns raised have already been expressed by Council; however, despite this the Province is forging ahead. He asked whether the referendum referred to this date should be conducted at the Provincial or the municipal level, and Mr. Somerville replied that he would favour the municipal level. Councillor Galloway pointed out that the Fall election is the first opportunity for such a referendum, by which time the charitable gaming clubs may already be in operation, and questioned whether it is realistic to hold a referendum after the fact. Reverend Reese replied that the referendum should be held at any time and expressed his hope that the will of the people would have an impact on the Provincial government even if charitable casinos are already in place. Mayor Christy stated that in his view, Council should tell the Province that enough is enough, and point out that municipalities inherit the problems created by this type of Provincial legislation. He pointed out that there is evidence that youth as well as long term prosperity are negatively affected by this form of gambling and referred to a number of American statistics which support this claim. He also referred to a recent book which demonstrates that gambling draws money which would otherwise be spent in other areas of the economy, leads to an increase in crime, and disproportionately effects people in the lowest income bracket. He referred to the dilemma faced by Council by the fact that 24 hours a day, 7 days a week gambling has created problems of addiction in the United States, and suggested that Kitchener take the lead in this regard and oppose the Province's charitable casino initiative. Councillor Lorentz pointed out that the Province is very good at deflecting blame, and that barring a revolt by citizens of the Province, Ontario is stuck with the present government until the next election. He suggested holding a special public meeting to hear all points of view on the issue of charitable casinos, to which everyone who has benefitted from charitable gambling in the past should be invited to attend. Councillor Lorentz also referred to concerns about who would make up the revenue shortfall of charities in the event a casino is not located in the City. Councillor Yantzi noted that sometimes it is necessary to simply state that the community will not support a particular initiative such as charitable casinos. He referred to the Workfare pilot project in the Region of Waterloo which was supported initially in the hopes of controlling the form it would have in the community, but which has not prospered to date because charitable groups have by and large ignored it. He further suggested that it would be interesting if a casino were established in the community and then went bankrupt due to lack of activity. Councillor Wagner suggested that staff develop various options, including the possibility of a public meeting, and present these to Council for consideration. He suggested that the charitable casinos will amount to a voluntary tax on the poor and pointed out that it appears the Province of Ontario is already addicted to gambling. Councillor Wagner referred to an upcoming vote by individual Alberta municipalities which could see a ban on video lottery terminals in specific areas. Councillor Redman advised that she does not believe in government by referendum and does not support a referendum in this particular case. She questioned whether it would be possible to develop an option whereby charitable casinos could be prohibited through zoning. Mr. McCabe replied that it is possible to define charitable casinos as a use and prohibit these throughout the City under "commercial entertainment"; however, he pointed out that the Province has stated that zoning restrictions will not work, though he was unsure as to how the Province would override the zoning option. Councillor Redman offered the opinion that if the City is going to do something, the first step would be to clearly state for the record that it is opposed to charitable casinos in this community. Councillor Galloway agreed that the City should be pro-active in this regard and expressed his support for a public meeting, noting that some charities have already indicated opposition to the initiative. He suggested that such a public meeting should be a joint effort of both Kitchener and Waterloo. Councillor Galloway also suggested that in addition to zoning, the City investigate licensing options, including the possibility of refusing to issue licences for casinos. He pointed out that the Province may strike down the zoning regulaton; however, notwithstanding this, the exercise in opposition would be worthwhile. He questioned where the City should draw the line on gambling given that charitable gaming already occurs in the community, and noted that video lottery terminals seem to be the lightning rod in this issue. Councillor Jake Smola advised that he has not received CHARITABLE CASINOS- CONT'D a lot of calls on this particular issue, but acknowledged the need to make a clear statement at this time. He questioned whether there could be a moratorium on charitable casinos pending a public FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 24, 1997 - 43 - CITY OF KITCHENER meeting and Mr. Shivas replied that this would be difficult as the City would be forced to go through a proper zoning process, and suggested that at this stage, Council should limit itself to declaring its position. Councillor John Smola expressed his belief that the current arrangement with regard to charitable gambling is a win-win situation for all concerned and that the proposed charitable casinos benefit the Province alone and are only being used to fund the promised 30 per cent reduction in taxes. He suggested that the City should go on record as opposing charitable casinos in Kitchener. Councillor Ziegler indicated that he agreed with much of what has been said today; however, the Province has decided on its course and has the authority to pursue it. He also questioned who would attend the proposed meeting and whether attendance would be representative of the community as a whole. Councillor Ziegler indicated his preference for a Province-wide referendum as well as his disappointment that such a referendum has not already been held. He indicated that Council should devise a plan to protect local charities, and in this regard should research the Request for Proposal issued by the Province to see if having a charitable casino operated by the municipality could be turned to local advantage. Mayor Christy indicated his belief that the public will attend an open meeting to discuss this issue, and noted that in the past, governments have changed their minds on policy direction. Mayor R. Christy put forward a motion instructing staff to develop options to stop the introduction of charitable casinos in Kitchener, to recommend a date for a public meeting and to obtain a copy of the Request for Proposal documents issued by the Province. Councillor Wagner suggested that this initiative should be pursued with the City of Waterloo through the Twin City Committee, and indicated his willingness to call an emergency meeting to discuss how the two municipalities could co-ordinate their efforts. Mayor Christy indicated that he would prefer to first speak to area Mayors and asked that any motion in this area which is subsequently adopted by Council be copied to the Cities of Guelph, Waterloo and Cambridge. Mayor R. Christy accepted, as friendly amendments, suggestions by Councillors G. Lorentz and Jake Smola that specific charities be invited to attend the public meeting and that a copy of the resolution of Council be sent to Cambridge, Waterloo and Guelph. Councillor John Smola also suggested that representatives of a local hotel association be invited to attend the meeting. On a motion by Mayor R. Christy it was resolved: "That City staff report on the options available to Kitchener to stop the introduction of charitable casinos into the municipality, with such options to include those relating to licensing and zoning, and that staff suggest a series of dates for open public meetings to hear input in regard to charitable casinos, to which representatives of the affected charities and businesses would be invited to attend; and, That staff obtain a copy of the Request for Proposal issued by the Province in regard to operating a charitable casino; and further, That copies of this resolution be forwarded to the Cities of Waterloo, Cambridge and Guelph." Mayor R. Christy left the meeting at this time. REPLACEMENT ELECTION SYSTEM The Committee was in receipt of a report from R.W. Pritchard dated February 19, 1997 concerning a replacement for the City's current Votomatic Election System. They were also in receipt this date of information on the proposed replacement unit; namely, the Optech IV-C Mark Sense Central Tabulation Unit as well as a sample ballot. REPLACEMENT ELECTION SYSTEM - CONT'D Mr. Pritchard referred to his report and purchase recommendation, noting that there are three reasons why the City should purchase the equipment from Business Records Corporation; namely, they are the same company which supplied the current Votomatic System; they are offering a credit for the existing equipment which it will then remarket; the desirability of having all area municipalities deal with the same company in order to provide for readily available backup FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 24, 1997 - 44 - CITY OF KITCHENER tabulation. Mr. Pritchard then demonstrated how a ballot would be marked and tabulated. He noted that the proposed purchase would have no impact on the City's budget in 1997 based on the chargeback recently approved by Council. Moved by Councillor T. Galloway, "That in 1997, the existing Votomatic Election System be replaced with an Optech IV-C, a Mark Sense Central Tabulation System at a cost of $157,626.00 U.S. (estimated Canadian cost of $215,948.00) plus applicable brokerage and shipping charges and Provincial and Federal sales taxes; and further, That notwithstanding the tendering requirements of Chapter 170 (Purchasing) of the Municipal Code, the City acquire the Optech IV-C System from Business Records Corporation." Councillor Wagner questioned the need for three tabulation units, and Mr. Pritchard advised that the manufacturer recommends a maximum number of ballots per unit of 22,000, and that based on this and the average voter turnout, three units are suggested. Councillor Jake Smola questioned whether the City could itself sell the current Votomatic System, and Mr. Pritchard recommended against this, noting that the resale market in Ontario is extremely limited, and Business Records Corporation, being the manufacturer of the system, is in a better position to remarket and provide support services. The previous motion by Councillor T. Galloway directing the purchase of a new election system was voted on and Carried. COMMITTEE OF ADJUSTMENT FEES AND MEDIATION RESERVE FUND The Committee was in receipt of a report from D. Gilchrist dated February 12, 1997 recommending an increase in Committee of Adjustment fees to partially offset the cost of external mediation services. The report notes that in response to a recommendation from the Planning Development Department, Council previously approved Planning fee increases to cover mediation services on the assumption that Committee of Adjustment fees would be increased in order to contribute to the mediation reserve fund. However, since these are not administered by Planning, a separate motion is required. On a motion by Councillor C. Weylie, it was resolved: "That effective March 19, 1997, Committee of Adjustment Fees be increased by $10.00 to cover the cost of the reserve fund established to pay for external mediation services, as approved by council on December 16, 1996; and further, That the Legal Department be directed to prepare a by-law to amend Chapter 375 (Tariff of Fees - Committee of Adjustment) of the Municipal Code accordingly." BUILDING AND FIRE INSPECTION SERVICES REPORTS The Committee was in receipt of the following reports: J. Witmer and R. Pederson (February 18, 1997 - Working Relationship Between the Building and Fire Prevention Divisions); R. Pederson (February 19, 1997 - Fire Prevention Inspections and Staffing); J. Witmer (February 19, 1997 - Hiring of Two Full-Time Contract Inspectors, Requirements for Mandatory Inspections, and Additional Revenue Projections). They were also in receipt this date of an BUILDING AND FIRE INSPECTIONS SERVICES REPORTS - CONT'D analysis of how building and fire inspections are organized in the City of Waterloo. Councillor J. Ziegler asked that each of the reports be dealt with separately and the Committee began by considering the request to hire two full-time contract inspectors. Councillor Ziegler requested additional information on the number of inspectors and building permits issued by other municipalities so that Council can better gauge the current staffing level in Kitchener. He asked that the Cities polled include Waterloo, Cambridge, Guelph, Burlington and Hamilton and questioned whether Kitchener is exceeding standards in other municipalities. Mr. Witmer responded that in other municipalities, the number of permits issued may be irrelevant as FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 24, 1997 - 45 - CITY OF KITCHENER Kitchener differs in that it issues a single, all-purpose permit. Councillor Jake Smola enquired whether this should not be considered as a caucus item based on possible municipal liability in the event inspections are not properly conducted. Mr. Shivas referred to a report previously circulated by Ms. L. MacDonald containing legal advice, and indicated that though the report could be discussed in caucus, he is prepared to discuss the subject publicly. Councillor Ziegler suggested that Ms. MacDonald's report be discussed in caucus, but offered the view that there is nothing in it that could not be released publicly. Councillor Galloway indicated that he expected the additional report requested would reflect other municipal comparators to assist Council in determining the appropriate inspection staffing level. He also questioned whether the Planning Department had examined possible reallocations in order to complete the necessary inspections and referred to actions recently taken by the Fire Department in this regard. He referred to the fact that the Planning and Development Department currently spends $1.62 million on salaries, which according to Mr. Gazzola's report is $300,000.00 more than in 1990, and suggested that before approving any additional staffing costs, the Department should first examine the opportunity for reallocation. Moved by Councillor T. Galloway "That consideration of the request of the City's Building Division to hire two full-time contract Building/Plumbing Inspectors be deferred and referred to the March 17 meeting of the Finance and Administration Committee pending a report on: the yearly number of inspections and building permits issued by other municipalities, including but not limited to, Waterloo, Cambridge, Guelph, Burlington and Hamilton; any other appropriate measure which would recognize Kitchener's current standard of 150 permits per inspection, per year and allow the Committee to gauge the City's current staffing level; and, what opportunities exist for employee reallocations within the Planning and Development Department." Mr. Witmer asked the Committee to remember that the Building Division is being inundated with inspection requests due to increased building activity, and that the existing staff are responding to a significant increase in permits issued. He pointed out that staffing was previously reduced in 1991, and now there is a need to increase the complement to respond to increased activity. He also pointed out that the number of contract positions requested is below the number which would be required based on private sector activity forecasts. Mr. Witmer indicated his preference that this request be dealt with speedily so as not to jeopardize the level of service. Councillor Redman enquired whether part of the reason for the request relates to unaddressed permits, and Mr. Witmer replied in the affirmative noting that there is presently a 2,300 permit backlog. Councillor Redman indicated that she was prepared to move the staff recommendation. Councillor Jake Smola questioned whether other options are available to address the backlog and suggested that some of the outstanding items on old permits are neither the responsibility of the City, nor are they life threatening. He questioned whether Mr. Pearce's involvement in the Downtown has taken more time than anticipated, time which could have otherwise been directed toward permit inspections. He also questioned whether it would be possible to have some of L. Proulx's staff assist in clearing up the backlog. Councillor Jake Smola also asked that the additional report referred to by Councillor Ziegler include information on reasonable performance and any additional efficiencies which can be obtained using existing staff. Councillor Yantzi advised that he would support the staff recommendation on the basis of the backlog and the fact that the employees requested would be hired on contract, BUILDING AND FIRE INSPECTIONS SERVICES REPORTS - CONT'D adding that a review of current staffing could be undertaken at a later date. Councillor Galloway enquired as to where the current standard of 150 permits per inspector per year originates, and indicated it was his understanding that suitable staffing is determined using a mathematical formula which incorporates this figure. Councillor Galloway suggested that there is nothing in the report before the Committee this date which satisfies him that the 150 figure is a reasonable divider. Mr. Witmer replied that in the past detailed logs of inspector activities have been kept for new single family dwelling inspections, and that the best information available to the Division suggests a range of 133 to 150 permits per year. He further noted that the 150 figure was used because the number of mandatory inspections varies widely depending on the type and class of project. The previous deferral motion of Councillor T. Galloway was then voted on and was Carried. FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 24, 1997 - 46 - CITY OF KITCHENER Mr. Witmer referred to the additional documentation circulated this date with respect to the City of Waterloo, noting that Waterloo is hiring a new Fire Protection Officer and is also asking for additional contact persons. He also referred to the present level of co-operation between Kitchener's Building Division and Fire Prevention Section, and suggested that to amalgamate these two groups would not solve the staff resource problems, as both areas are experiencing the same shortage. He also advised that the amalgamation attempted in Waterloo does not appear to be generating the anticipated savings. Councillor Redman suggested that the recommendation to hire additional contract employees could be dealt with at the March 3, 1997 Council meeting if the additional information is available by that time. Councillor Ziegler acknowledged that this could be accommodated or alternately a March 17 Committee recommendation could be ratified at a special Council meeting that date. GLASGOW STREET IMPROVEMENTS The Committee was in receipt of a report and recommendation for S. Gyorffy dated February 19, 1997 concerning the funding of a Class Environmental Assessment and related budget impact. On a motion by Councillor C. Weylie, it was resolved: "That a Class Environmental Assessment be undertaken regarding improvements to Glasgow Street between Fischer-Hallman Road and Knell Drive, with funding to be provided from Index No. 824700 (Gravel Pit Royalties) which has a current balance of $86,045.00; and further, That the recommendations and findings of the Class Environmental Assessment be incorporated into the Capital Budget." SPECIAL COUNCIL MEETING LOCATION The Committee was in receipt of a report from G. Sosnoski dated February 19, 1997 concerning a change in the location of special Council meetings to authorize in-camera discussion. On a motion by Councillor G. Lorentz, it was resolved: "That pursuant to Section 25.4.4 (a) of Chapter 25 (Council Procedure) of the Municipal Code, and with regard to special Council meetings where the only item of business involves authorizing a subsequent in-camera session, such special meetings are to be held in the Caucus Room behind the Council Chamber." INFORMATION ITEMS The Committee received, as information,a report dated February 19, 1997 listing the Monte Carlo events recently approved by Licensing staff. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on March 17, 1997. ADJOURNMENT On motion, the meeting adjourned at 12:15 p.m. G. Sosnoski Manager of Corporate Records/Assistant City Clerk