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HomeMy WebLinkAboutFinance & Admin - 1997-09-22FAC\1997-09-22 SEPTEMBER 22, 1997 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date commencing at 10:25 a.m.. under the Chairmanship of Councillor J. Ziegler with the following members present: Mayor R. Christy, Councillors T. Galloway, M. Wagner, M. Yantzi, John Smola, Jake Smola, B. Vrbanovic, C. Weylie and K. Taylor- Harrison. Others present: Ms. P. Houston, Ms. B. Baker, Ms. D. Arnold, Mrs. J. Koppeser, Ms. N. Chambers, Ms. L. Pasternak, Messrs. J. Gazzola, R. W. Pritchard, T. McCabe, J. Shivas, D. Paterson, G. Anderson, M. Grummett, J. Hancock, T. Clancy, E. Kovacs and G. Sosnoski. 1. CONGRATULATIONS - CHIEF FINANCIAL OFFICER AND CITY TREASURER Councillor J. Ziegler extended congratulations on behalf of the Finance and Administration Committee to Ms. P. Houston in regard to her recent appointment as the City's Chief Financial Officer and City Treasurer. RELOCATION REQUEST - BODY RUB PARLOUR (MOYER PLACE) Mr. Brad Baumbach, owner of the body rub parlour known as Phoenix located at 6 Moyer Place appeared as a delegation and requested permission to relocate the business to property at 2271 Kingsway Drive. In this regard the Committee was also in receipt of a report from J. Koppeser dated September 18, 1997 recommending approval of the relocation, subject to obtaining the necessary approvals. Mr. Baumbach indicated that he is prepared to move within 48 hours and will undertake certain renovations at the Kingsway Drive property at a later date. He also advised that he was prepared to deal with the current Moyer Place lease by himself. Mrs. Koppeser advised that the new premises is a separate, free standing building between 5th and 6th Avenue on Kingsway Drive, and that no residences back onto the property which is abutted by commercial properties. She also confirmed that the new location meets the criteria recently established by Council for sexual/erotic body rub parlours. Mrs. Koppeser added that at present, approval signatures for the relocation have not been received and that Mr. Baumbach is required to apply for an occupancy certificate and will require a building permit. Mr. Shivas also noted that should the applicant wish to commence business this year, which he has indicated will be the case, an amendment is required to the existing Massagists and Body Rub Parlour By-law. On a motion by Councillor M. Yantzi, it was resolved: "That the request of Mr. Brad Baumbach to relocate his business from 6 Moyer Place to 2271 Kingsway Drive be approved and Chapter 560 (Massagists and Body Rub Parlours) amended accordingly in the event he relocates before the end of 1997, all on the understanding that the new location meets the criteria for sexual/erotic body rub parlours recently established by Council; and further, That the above approval is subject to the applicant providing the Manager of Licensing with proof that the Licensing requirements, as well as Health, Planning, Building and Fire regulations have been met." PAYMENT IN LIEU OF PARKLAND DEDICATION The Committee was in receipt of a report from G. Anderson dated September 17, 1997 outlining the City's method for calculating payments in lieu of parkland dedication. This information was requested by the Committee on September 8, 1997 in response to concerns raised by Mr. Stefan Vogel. Councillor Galloway referred to Mr. Vogel's earlier concerns with respect to the calculations and Mr. Anderson confirmed that there is only one method of calculation where a land severance is involved. Mr. Shivas added that he is satisfied this is a proper interpretation of the Planning Act. FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 22, 1997 - 124 - CITY OF KITCHENER SURPLUS LANDS The Committee was in receipt of a report from G. Anderson dated September 8, 1997 recommending that various parcels of City owned land be declared surplus and be conveyed to the Region of Waterloo for corner roundings and a road widening. On a motion by Councillor M. Wagner, it was resolved: "That the following parcels of land be declared surplus to the City's needs and be transferred to the Regional Municipality of Waterloo for corner roundings and a road widening; a) Part of Part 2, Registered Plan 401 and Part of Lots 7 and 8, Plan 396 at the corner of Duke Street West and Ontario Street North; b) Part of Lots 2, 3, 4, 10, 11, 12, 13, 14 and 15, Plan 394 at Charles Street East and Queen Street South; c) Part of Lots 19 and 20, Registered Municipal Compiled Plan 959, now designated as Part 8, Plan 58R-7039 at Fairway Road and Morgan Avenue." TECHNICAL SUPPORT STAFF - FIRE DEPARTMENT The Committee was in receipt of a report and recommendation from Fire Chief Hancock and M. Grummett dated September 18, 1997 with respect to the hiring of a Technical Support Specialist for a minimum three year term. Fire Chief Hancock explained that the recommendation envisions converting an outside contract to a staff position, noting that as the new platform becomes more self sufficient less outside consulting is required and there is a need for 24 hour 7 day a week support. He added that funding will be arranged through decreasing payments to consultants and a Fire Department budget surplus, stressing that no new funding is required. He also added that over time, anticipated revenue will also decrease the amount of the expenditure. Fire Chief Hancock stated that the staff person would report to Information Services but would be predominantly responsible for the Fire Department system. Councillor B. Vrbanovic put forward the staff recommendation to hire an additional Technical Support Specialist for a minimum three year term. Councillor T. Galloway then put forward an amending motion to reflect that the Technical Support Specialist would be hired for a maximum, rather than a minimum, three year term and that this arrangement would be reviewed upon completion of the term of employment which was voted on and Carried. The main motion, as amended was then voted on. On a motion by Councillor B. Vrbanovic, it was resolved: "That the City of Kitchener hire an additional Technical Support Specialist for a maximum three year term, who will be responsible for the computer operations at the Fire Department and their initiatives with Computer Aided Dispatch (CAD) and Computer Aided Monitoring (CAM), with this position to be reviewed at the end of the term of employment." RELOCATION - STREET VENDOR (C. VANEZI) The Committee was in receipt of a report from J. Koppeser dated September 18, 1997 concerning a request to relocate a hot dog cart from the corner of Otto and Frederick Street to the entrance of FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 22, 1997 - 125 - CITY OF KITCHENER the parking lot for Homer Watson Park on Wabanaki Drive. Mr. Brad Schedewitz was in attendance on behalf of the hot dog cart owner, Mr. C. Vanezi, and in support of the request. On a motion by Mayor R. Christy, it was resolved: "That Council approve the request of Mr. C. Vanezi for permission to relocate his hot dog cart from the City property at the corner of Otto and Frederick Streets to City owned lands at the entrance to the parking lot for Homer Watson Park on Wabanaki Drive, and that the 1997 Street Vendors By-law be amended accordingly; and further, That this approval apply only until the end of the current licence year at which time there is to be a review of any associated traffic problems prior to a decision on granting a 1998 licence at the new location." 1997/1998 INSURANCE RENEWAL The Committee was in receipt of a joint report from P. Houston, O. den Ouden and N. Chambers dated September 17, 1997 recommending renewal of the City's Insurance Program with the Frank Cowan Company. Ms. Houston reviewed the staff recommendations and requested direction on the amount of deductibles, noting that if the staff recommendation in this regard is accepted, there will be a resulting four per cent decrease in premiums. Moved by Councillor T. Galloway, "That the City of Kitchener renew its 1997/1998 Insurance Program with the Frank Cowan Company for a one year term expiring September 1, 1998 and for a premium of $1,570,520.00 plus applicable insurance tax of $113,596.00 as per the terms of the policies; and, That this renewal reflect increased deductibles representing a 4 per cent decrease in premium as follows: Errors and Omissions Property Boiler and Machinery 1996/1997 1997/1998 $25,000.00 $25,000.00 $25,000.00 $50,000.00 $50,000.00 $50,000.00 That the resulting $71,735.00 premium savings be added to the insurance reserve earmarked to fund potential future losses; and further, That the current extra expense coverage limit of $1,000,000.00/occurrence be increased to $5,000,000.00 for a $950.00 additional premium." Councillor Galloway noted that under the proposed insurance pooling scheme, Kitchener's insurance costs would be approximately 4-1/2 times higher than the City of Waterloo, and questioned why this would be the case. Ms. Houston replied that a large part of the difference relates to ownership of the gas utility, but other factors are involved including the deductible amount. Councillor John Smola noted that it appears that the Frank Cowan Company has a monopoly on this type of coverage, and Mr. Gazzola responded that though the company specializes in this type of insurance, the City has been able to get other quotes and the Frank Cowan prices are competitive. Mr. Gazzola also noted that it is being recommended that the 1997/1998 INSURANCE RENEWAL - CONT'D City participate in insurance pooling and work toward limited self insurance of municipalities within the Region. The previous motion by Councillor T. Galloway that the City renew its Insurance Program with the Frank Cowan Company was voted on Carried. FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 22, 1997 - 126 - CITY OF KITCHENER 8. INSURANCE POOLING The Committee was in receipt of a joint report from P. Houston, O den Ouden and N. Chambers dated September 17, 1997 recommending approval of an expenditure to participate in an insurance pooling arrangement with area municipalities. Ms. Houston pointed out that when an implementation plan has been prepared, staff will seek further direction from Council in this area. Ms. Chambers gave a presentation outlining the insurance pooling proposal, noting that an actuarial study was completed by Dion, Durrell and the firm is recommending an insurance pool involving area municipalities. She noted that Kitchener's insurance premiums have increased dramatically in recent years and referred to a recent increase of 24.9 per cent, plus commission, and pointed out that this was due not so much to an increase in City claims and costs, as an increase in costs relating to other clients in the insurance broker's pool. Ms. Chambers compared the current and proposed insurance arrangements noting that savings in the order of 40 per cent can be achieved through a reduction in administrative costs. She outlined the advantages and disadvantages of the current and proposed insurance arrangements, noting that both the Regions of Durham and Niagara are looking at insurance pooling. Ms. Chambers gave an overview of operational staffing which would be under the direction of area municipalities, including the Region of Waterloo and a Board comprised of area Treasurers. Ms. Chambers added that implementation is recommended on March 1, 1998 so as to ensure no penalty for cancelling the current policy. Councillor Galloway enquired whether individual municipalities could have their own deductibles and whether the proposed arrangement is feasible given the size of the insurance pool. Ms. Chambers replied that municipalities could have their own deductibles; however, Dion, Durrell suggests coming into the pool at the same deductible with any individual requests to increase or decrease being subject to an actuarial study. She also advised that the consulting firm feels that the insurance proposal is feasible given the size of the pool. Councillor Galloway noted that Kitchener would be paying significantly more into the pool than Waterloo and questioned whether any surplus would be pro rated to the municipal contribution and Ms. Chambers replied in the affirmative. In response to an earlier question, Mr. Gazzola clarified that it is proposed to self insure area municipalities up to $350,000.00; however, it would be foolish to self insure beyond this value, after which re-insurance is required. On a motion by Councillor T. Galloway, it was resolved: "That the City of Kitchener approve an expenditure of up to $45,500.00 to participate in the implementation of an insurance pooling arrangement with local municipalities in Waterloo Region." 9. CREMATORIUM DEBENTURE ISSUE The Committee was in receipt of a report from P. Houston dated September 19, 1997 recommending a debenture issue for the Williamsburg Crematorium. 9. CREMATORIUM DEBENTURE ISSUE - CONT'D On a motion by Councillor T. Galloway, it was resolved: "That $535,000.00 of debenture financing be approved for the Williamsburg Crematorium Project, with the term not to exceed ten years." 10. NOISE BY-LAW EXEMPTION - BETHANY EVANGELICAL MISSIONARY CHURCH (160 FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 22, 1997 - 127 - CITY OF KITCHENER 11. 12. LANCASTER STREET EAST) The Committee was in receipt of correspondence from Reverend William Anderson requesting Noise By-law exemption in 1997 for a Christmas Pageant, similar to the exemption granted by Council in 1996. On a motion by Mayor R. Christy, it was resolved: "That the Bethany Evangelical Missionary Church, 160 Lancaster Street East, be granted an exemption from the provisions of Chapter 450 (Noise) of the City of Kitchener Municipal Code during the staging of a Christmas Pageant in the Church parking lot the evenings of December 10, 11 and 12, 1997 in accordance with the written request of Reverend William Anderson, dated September 17, 1997." STREET VENDOR REQUEST - SHINE OF THE TIMES The Committee was in receipt of a report from J. Koppeser dated September 18, 1997 recommending referral of the request from John Poole to the Downtown Action Committee for comment. On a motion by Councillor M. Yantzi, it was resolved: "That the request of John Poole for permission to operate shoe shine locations on the sidewalk along King Street be referred to the Downtown Action Committee for comment, and further consideration be deferred to early in 1998 when the 1998 Street Vendors By- law is considered." AMENDMENT TO LOCATION CRITERIA - SEXUAL/EROTIC BODY RUB PARLOURS 13. The Committee was in receipt of a report from J. Koppeser dated September 18, 1997 recommending an amendment to the Iocational criteria with respect to existing residences. On a motion by Councillor K. Taylor-Harrison, it was resolved: "That the Iocational criteria for sexual/erotic body rub parlours, be amended by adding the following; 'h) That the lands upon which the establishment is located shall not include an existing residence."' RESTAURANT/REFRESHMENT VEHICLE LICENSING The Committee was in receipt of a report from J. Koppeser and L. Pasternak dated September 18, 1997 outlining proposed licensing category and fee changes being submitted prior to drafting amending by-laws. Councillor Jake Smola enquired whether a $200.00 set fine would be a reasonable amount to request of the Province and Ms. Pasternak replied that a position would be arguable at that 13. RESTAURANT/REFRESHMENT VEHICLE LICENSING - CONT'D figure. Councillor Galloway suggested that the proposed 100 meter separation for stationary refreshment vehicles was inappropriate and suggested separation in the 400 - 500 meter range. Councillor Ziegler expressed concern over increasing the fee for a restaurant/place of refreshment from $20.00 to $195.00 in one year, and in this regard Councillor Jake Smola advised that he supports the staff suggestion that the fee could be phased in over a three year period. On a motion by Councillor Jake Smola, it was resolved: "That staff be directed to prepare draft by-laws to amend the current Refreshment Vehicles FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 22, 1997 - 128 - CITY OF KITCHENER 14. and Food Establishment By-laws in accordance with the information set out in the joint report of J. Koppeser and L. Pasternak dated September 18, 1997, subject to the following amendments; a) a 400 meter distance between refreshment vehicles; b) a 200 meter separation between places of refreshment and refreshment vehicles; and, That the draft by-law include a staged increase over a three year period with respect to the Restaurant/Place of Refreshment Licence; and further, That following enacting of the new by-laws, staff make application to the Province of Ontario for approval of a $200.00 set fine." TAX REFUND REQUEST - #20-20 PAULANDER DRIVE The Committee was in receipt of a report from O. den Ouden dated August 20, 1997 recommending no action on the request of the owners for a tax refund. Mr. Ralph Potwarka, representing the property owners, was registered as a delegation this date but did not attend. Councillor Vrbanovic suggested it is unethical for the City to charge a reassessed amount prior to when a conversion from multi-residential to owner-occupied takes place. Mr. Gazzola argued that this situation has arisen many times in the past, and the City has been questioned on why it charges the newly assessed value immediately. He pointed out that such reassessments are governed by the Assessment Act and are the responsibility of the Province, though possible revisions in the legislation may deal with this issue. He suggested that staff can do whatever Council wishes in the way of providing grants, but would not recommend this course of action, as Council has no jurisdiction in this area. Councillor Vrbanovic pointed out that this is an issue of the City overcharging even though we may have the authority to do so. Mr. Gazzola responded that the City is not overcharging, but is charging based on the Provincially assessed value, and cautioned that if a grant is awarded it should only be for the City portion of conversion related taxes. Mr. den Ouden pointed out that he is uncertain as to the number of individuals who may be in similar circumstances when multi-residential units are converted to owner occupied units, and Ms. Houston cautioned as to the precedent which may be set by awarding a grant in this instance, since this rationale could be applied to other areas such as when vacant commercial use is downgraded to a residential assessment. Councillor Galloway argued that this situation is inherently unfair and noted that in his recollection Council had sent a resolution in this regard to the Province several years ago. Notwithstanding this, he advised that he cannot support providing relief in this area until the Assessment Act is amended, and noted that in the past the Finance Department has been more than willing to arrange an easy payment plan where such circumstances occur. 14. 15. TAX REFUND REQUEST - #20-20 PAULANDER DRIVE - CONT'D On a motion by Councillor C. Weylie, it was resolved: "That no action be taken on the request of Mr. R. Potwarka for a tax refund for his clients, Mr. and Mrs. J. Staniewski of Unit 20, 20 Paulander Drive, Kitchener." CANADIAN UNITY - QUEBEC The Committee was in receipt of a memorandum from G. Sosnoski dated September 16, 1997 outlining a motion submitted for Committee consideration by Councillor B. Vrbanovic. Councillor B. Vrbanovic put forward the motion supporting the initiatives of municipalities in Quebec who have declared their intention to remain a part of Canada, irrespective of any future Province wide vote for separation. FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 22, 1997 - 129 - CITY OF KITCHENER Councillor Vrbanovic accepted, as a friendly amendment, the suggestion of Councillor Weylie that a copy of the resolution be circulated to the Federation of Canadian Municipalities rather than the Association of Municipalities of Ontario. Councillor Ziegler noted that though the motion is well intentioned, it would be difficult to implement and goes against the nature of a referendum if it is shown that separation is a legal possibility. He suggested that enacting such a resolution would only cause turmoil and conflict and on this basis he would not support it. Councillor Vrbanovic argued that the motion shows a level of support for those municipalities who have chosen this course of action. The main motion was then voted on, as amended. On a motion by Councillor B. Vrbanovic, it was resolved: "WHEREAS the population of the Province of Quebec voted against separating from Canada, both in 1980 and in 1995; AND WHEREAS the current government of Quebec has repeatedly reiterated its desire to hold yet another referendum on Quebec separation; AND WHEREAS there are many loyal Canadians in Quebec who, via resolutions of their local City Councils, have declared that it is their wish to remain part of Canada irrespective of any future referendum result; AND WHEREAS those City Councils have requested the support of Canadians outside of Quebec in their effort to remain Canadian; NOW THEREFORE BE IT RESOLVED that the Corporation of the City of Kitchener supports the initiatives of those municipalities in Quebec who have declared their intention to remain part of Canada irrespective of any future Province wide vote for separation; AND FURTHER THAT the Council of the Corporation of the City of Kitchener strongly urges the Government of Canada to join them in stating clearly and unequivocally that they support the right of federalist municipalities and regions within Quebec to remain part of Canada today and in the future, in accordance with the legal, moral, political, constitutional, and territorial obligations of our nation; AND FURTHER THAT copies of this resolution be forwarded to the Prime Minister of Canada, the Premier of Ontario, local M.P.'s and M.P.P.'s, the Regional Municipality of Waterloo and the Federation of Canadian Municipalities." 16. JOB EVALUATION SYSTEM CHANGES The Committee was in receipt of a memorandum and recommendations from Councillor J. Ziegler concerning proposed changes with respect to retroactive payments and pink circling. They were also in receipt of a report from J. Gazzola dated September 19, 1997 outlining the staff response to the proposed changes. Councillor B. Vrbanovic disclosed a pecuniary conflict of interest and abstained from all voting and discussion concerning the City's job evaluation system as his wife is employed in its Information Services Division. Mr. Gazzola urged the Committee not to deal piecemeal with the job evaluation system; but rather, conduct the more comprehensive review previously discussed and outlined in his memo of May 15, 1997. Mr. Gazzola suggested a process of approximately six months duration to complete the comprehensive review with the first step being to hire a consultant to facilitate the process. He advised that he is prepared to have these terms of reference available for discussion by the end of October. Councillor Ziegler stated that Council has waited long enough for action in this area and that the current system is unfair to the taxpayer. He further clarified his recommendation with respect to FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 22, 1997 - 130 - CITY OF KITCHENER 16. pink circling, noting that he intended that there be a six month notice of any decision to decrease an employee's salary and that this clarification could be added to the recommendation. He also expressed the view that similar changes should be made at the Regional level. Councillor Ziegler noted that in his view, his recommendations address three of the most reprehensible aspects of the current system, adding that no matter when such changes are implemented it will negatively affect someone and on this basis suggested that they be dealt with now. Councillor Jake Smola rose on a point of order and suggested that it is inappropriate for the Chair to debate the issue and suggested that someone else should assume the Chair in the event Councillor Ziegler intends to continue on this course. Mayor Christy cautioned Council on proceeding too hastily in this area and in addressing this issue in any other than a comprehensive manner. He pointed out that the Chief Administrative Officer has given his commitment to do the review as thoroughly as possible, and acknowledged Councillor Ziegler and other members of Council who have already submitted their concerns. Mr. Gazzola added that he is suggesting that a staff committee report within one months time outlining the administration's concerns with the current system so that concerns of all parties are addressed comprehensively. Councillor Jake Smola offered the view that this should be done within two weeks time, and Mr. Gazzola argued that one month is needed due to workload with respect to other ongoing projects. Councillor Wagner questioned the need for a consultant to review the program and Mr. Gazzola replied that a third party would give the benefit of objectivity and be able to provide insight as to how the City system compares to that of other private and public sector systems. Councillor Weylie suggested that if a consultant is hired, he/she should look at the issue of job grading and the current overlap of salary ranges in different grades. Councillor Galloway advised that he would like to accede to a comprehensive review, but to date has not received the impression that significant changes are being considered. He offered the view that the current system though substantially sound, needs major change. He also suggested that there is a need to question the assumption that taking on additional duties necessarily leads to a salary increase, and noted that he does not feel that staff are as cognisant as they should be of the current economic and job market. Councillor Ziegler referred to general comment #2 in Mr. Paterson's memo of September 17, 1997 which suggests that the proposed changes referred to would not affect the functioning of the job evaluation plan or violate the City's obligation with respect to pay equity. On this basis, he requested that his three recommendations be dealt with now, followed by a more comprehensive review. Mayor Christy reminded Council of the adverse impact on the Province of its too hurried approach to major changes, noting that this Council has done a good job on major issues by having comprehensive information before them in advance of making a decision. He reiterated his earlier comment that Council should await all information before deciding on any changes and devise the best system in the long term interests of the municipality. JOB EVALUATION SYSTEM CHANGES - CONT'D Councillor Jake Smola put forward a motion directing staff to report back within two weeks time with a request for proposal to hire a consultant to evaluate the current job evaluation system, and putting forward the three recommendations outlined in Councillor Ziegler's memorandum with respect to retroactive payments and pink circling. Following comments by Mr. Gazzola, Councillor Smola amended his motion to increase the amount of time for the staff report from two weeks to four weeks. Councillor Yantzi expressed an interest in having the consultant comment on Councillor Ziegler's recommendation and indicated that he would not support the motion at this time, but would support the hiring of a consultant and a six month project deadline. Mr. Gazzola gave his assurances that following a review of the current system, the consultant would immediately address Councillor Ziegler's recommendations, and that there would be an opportunity for Council input on the request for proposal document. Councillor Galloway advised that he fundamentally agrees with Councillor Ziegler's proposals, and would be very disappointed if the types of issues raised by Council are not considered during the evaluation. Councillor Ziegler requested that the motion before the Committee be dealt with in two parts. On a motion by Councillor Jake Smola, it was resolved: FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 22, 1997 - 131 - CITY OF KITCHENER 17. 18. 19. "That a request for proposal to hire a consultant to review the City's job evaluation system be submitted to the Finance and Administration Committee for consideration at its meeting of October 20, 1997." A second motion to immediately implement the three recommendations in the memorandum from Councillor J. Ziegler dated September 15, 1997 was then voted on and was Lost. INFORMATION REPORTS The Committee received, as information, a report from P. Houston, O. den Ouden and N. Chambers dated September 17, 1997 concerning the Employee Group Insurance Program, and a report dated September 16, 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 Monday, October 6, 1997. ADJOURNMENT On motion, the meeting adjourned at 12:40 p.m. G. Sosnoski Manager of Corporate Records/Assistant City Clerk