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HomeMy WebLinkAboutFinance & Admin - 1998-02-23FAC\1998-02-23 FEBRUARY 23, 1998 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date under the Chairmanship of Councillor J. Ziegler with the following members present: Councillors T. Galloway, K. Taylor-Harrison, M. Yantzi, John Smola, Jake Smola, B. Vrbanovic, J. Haalboom, G. Lorentz and C. Weylie. Others present: Ms. P. Houston (Acting Chief Administrative Officer), Mrs. J. Koppeser, Ms. S. Frenette, Messrs. R. W. Pritchard, B. Gulliver, E. Kovacs, L. F. Parkhouse, T. McCabe, T. Clancy and G. Sosnoski. 1. TAX ARREARS AND PROPOSED TAX SALE - 322-332 KING STREET EAST The Commitee was in receipt of a report from P. Houston dated February 18, 1998 in response to direction from Council that she discuss further with the owner the payment of tax arrears. Mr. Steve Perkovich, the owner of the subject property, appeared as a delegation and argued that the past assessment was too high for the type of property involved and that he successfully appealed the assessment in 1996, with the outcome of a further 1997 appeal still pending. He requested relief for a portion of the tax arrears and a delay in the payment deadline till at least the summer of 1998. Mr. Perkovich also asked that no action be taken at this time to commence tax sale proceedings. In response to a question from Councillor Ziegler, Ms. Houston advised that were the tax sale proceedings to commence as recommended by staff, the owner would still have an additional twelve to eighteen months to pay the arrears prior to the actual sale taking place. It was also noted that the property in question is listed in the tax sale recommendation which will be considered by Council in special session later this date. Councillor T. Galloway put forward a motion to delay the tax sale in respect to the subject property for six months, and the main motion was subsequently amended to include a similar exemption for the property referred to as roll number 050-009-185-00-0000. In response to a further question, Ms. Houston clarified that staff have sent registered letters to each of the affected property owners and other parties having an interest in the properties advising of the recommended tax sales. Councillor Jake Smola referred to roll number 060-001-265-02- 0000, noting that the owners are willing to make a financial commitment to pay the arrears, and suggested that the Finance Department should be more flexible in its repayment plans. Councillor Yantzi pointed out that when tax sales are commenced this compels owners to take action to address the arrears, which they may have ignored in the past. Councillor Taylor-Harrison pointed out that numerous notices have already been sent to the property owners, and that in her experience the Finance Department has been more than willing to negotiate flexible repayment plans. The earlier motion by Councillor T. Galloway to delay tax sale proceedings for the two properties in question was voted on and Lost. DEADLINE EXTENSION - ANABELLAS BODY RUB PARLOUR The Committee was in receipt of a report from J. Koppeser dated February 18, 1998 concerning a request from Mr. Randy Zivkovic for a further extension to the deadline for relocating the Anabella Massage Studio from its current Queen Street location. The report notes that Mr. Zivkovic was previously granted two extensions from the original November 28, 1997 deadline, one to January 12, 1998 and the second to March 13, 1998, the latter in regard to a Beasley Drive location. Mr. Randy Zivkovic was in attendance and requested a further extension, noting that in the current real estate market there are no properties available which meet all of Council's relocation criteria. He added that the owner of the 44 Beasley Drive location previously endorsed by Council would not rent to him, and that he is prepared to submit additional locations to the Licensing Section for review in the next few days. Mr. Zivkovic also asked that he receive a FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 23, 1998 -2- CITY OF KITCHENER 2. DEADLINE EXTENSION - ANABELLAS BODY RUB PARLOUR - CONT'D 1998 licence for the Queen Street location on the basis that he has looked at all possible relocation alternatives to date. Mr. Zivkovic acknowledged that Council has been fair in their dealings with him to date, and advised that despite his best efforts it has been impossible to relocate and meet all of Council's criteria. Mr. Zivkovic also noted that he may require further deadline extensions before he is able to find an appropriate property. Councillor M. Yantzi put forward a motion, which was subsequently amended, which would have the effect of granting a further 30 day extension commencing on February 30, 1998 during which time Mr. Zivkovic is to return with a signed lease agreement and occupy the premises, barring which he is to turn in his business licence. The motion also made provision for a conditional 30 day extension to the 1998 licence. A discussion took place as to the intent of the March extension in reference to the proposed relocation to 44 Beasley Drive. Mr. Shivas clarified that currently there is no extension in place to allow Mr. Zivkovic to operate at the Queen Street location, and further suggested that it would be prudent to grant a further 30 day extension and to specify that such an extension is final. Councillor Jake Smola suggested that Mr. Shivas should give legal advice in regard to this issue in-camera, rather than in public session. The main motion by Councillor M. Yantzi was then voted on, as amended, and Lost on a recorded vote. In Favour: Councillors J. Ziegler, M. Yantzi and K. Taylor-Harrison Contra: John Smola, Jake Smola, B. Vrbanovic, J. Haalboom, T. Galloway, G. Lorentz and C. Weylie Councillor B. Vrbanovic put forward a motion directing that the enforcement of location criteria with respect to the 1998 licence for Anabella's be suspended only until March 13, 1998, at which time if the owner has not relocated the business is to cease at the present Queen Street premises. He also asked that the massagists employed at Anabella's be provided with a copy of notification in this regard. Mr. Shivas suggested that the Committee meet in-camera then resolved into Caucus to hear his legal advice on the subject. On motion, the open session of the Finance and Administration Committee meeting recessed at 11:55 a.m. and reconvened at 12:05 p.m. Councillor B. Vrbanovic then amended his earlier motion, but declined to accept as a friendly amendment a suggestion from Councillor Jake Smola that the written commitment to lease be removed. A recorded vote was then taken on the following amended motion. On a motion by Councillor B. Vrbanovic, it was resolved: "That Randy Zivkovic be granted a final extension to the deadline for relocating Anabella's (body rub parlour) to March 23, 1998, and in this regard, Mr. Zivkovic is to appear at the Finance and Administration Committee meeting of March 23, 1998 with a list of the potential new locations reviewed by staff and with written commitments from landlords to lease or vendors to sell, at which time the Committee will recommend to Council which, if any, of these sites are appropriate, following which Mr. Zivkovic will have until the Council meeting of March 30, 1998 to finalize the relevant agreements, all on the understanding that there will be no further extensions granted in regard to the relocation." FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 23, 1998 -3- CITY OF KITCHENER DEADLINE EXTENSION - ANABELLAS BODY RUB PARLOUR - CONT'D In Favour: Councillors J. Ziegler, K. Taylor-Harrison, M. Yantzi, John Smola, Jake Smola, B. Vrbanovic and G. Lorentz Contra: Councillors J. Haalboom, C. Weylie and T. Galloway Councillor Ziegler advised that the recommendation of the Finance and Administration Committee would be dealt with by Council on Monday, March 2, 1998 at 7:00 p.m. CONTRACTOR PREQUALIFICATION - FIRE HEADQUARTERS The Committee was in receipt of a report from L. Proulx and L. Gordon dated February 11, 1998 recommending the use of prequalification to select general contractors. On a motion by Councillor G. Lorentz, it was resolved: "That Council approve the use of prequalification to select general contractors in regard to tendering for the new firehall headquarters." Councillor Galloway suggested that the City should have a policy to require contractor prequalification for projects above a specified dollar value, and Mr. Proulx stated that this is being addressed through revisions to the Purchasing By-law. NATURAL GAS/ALTERNATE FUEL - CITY FLEET The Committee was in receipt of a report and recommendation from B. Gulliver dated February 12, 1998 concerning the feasibility of extending use by the City fleet of natural gas and alternate fuels by the City fleet. On a motion by Councillor B. Vrbanovic, it was resolved: "That the Fleet Division continue using the existing criteria of "budget break even" to determine suitability for compressed natural gas (CNG) conversions; and, That Council decide what cost it is willing to pay, over the break even point, to achieve cleaner air; and further, That the Fleet Division continue to monitor the progress of alternative fuels within the industry, particularly the hydrogen fuel cell technology." COMMUNITY INFRASTRUCTURE GRANT - CENTRAL FREDERICK NEIGHBOURHOOD ASSOCIATION The Committee was in receipt of Planning and Development Department report PD 98/20 (February 10, 1998) recommending the awarding of a grant with respect to a neighbourhood festival. Ms. S. Frenette requested amendments to the report recommendations to require that the amount of the grant not exceed $3000.00 and that the preparation of the handbook referred to be coordinated with Parks and Recreation staff. Ms. Frenette clarified that this is one time funding, and that she recently learned that the Parks and Recreation Department has authorized staff to work on a handbook for staging and evaluating neighbourhood festivals. The staff recommendation was then voted on, as amended. FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 23, 1998 - 4 - CITY OF KITCHENER COMMUNITY INFRASTRUCTURE GRANT - CENTRAL FREDERICK NEIGHBOURHOOD ASSOCIATION - CONT'D On a motion by Councillor K. Taylor-Harrison. it was resolved: "That Council approve a one time Community Development Infrastructure Grant for the Central Frederick Neighbourhood Association in an amount not to exceed $3,000.00 to develop, coordinate and evaluate a neighbourhood festival, and to assist in preparation of handbook on how to run a neighbourhood festival, with this amount to be debited from Capital Account #715056 (Community Infrastructure Program); and, That the Neighbourhood Association representatives work with the Parks and Recreation Department staff already assigned to develop a handbook for staging and evaluating such events, with such handbook to be used as a resource by other neighbourhood associations wishing to organize events in their respective communities." DOWNTOWN FINANCIAL INCENTIVE - 44 GAUKEL STREET The Committee was in receipt of Planning and Development Department report PD 98/25 (February 16, 1998) recommending approval of a grant-in-lieu of building permit fees for renovations to accomodate the Toronto School of Business. Councillor G. Lorentz disclosed a pecuniary interest and abstained from all voting and discussion concerning the financial incentive for 44 Gaukel Street as the property is owned by his employer, Canada Post. On a motion by Councillor B. Vrbanovic, it was resolved: "That Council approve an application from the Canada Post Corporation for a grant-in-lieu of building permit fee in the amount of $2,992.50 under the Downtown Financial Incentive Program." DOWNTOWN FINANCIAL INCENTIVE - 77 WATER STREET NORTH The Committee was in receipt of Planning and Development Department report PD 98/26 (February 16, 1998) recommending approval of a grant-in-lieu of building permit fees for renovations to create two optometry offices. On a motion by Councillor B. Vrbanovic, it was resolved: "That Council approve an application from Brendan Soye and David Beaton for a grant-in- lieu of building permit fee in the amount of $493.00 under the Downtown Financial Incentive Program." SELECTION OF CITY REPRESENTATIVES - REGIONAL COUNCIL The Committee was in receipt of a report dated February 17, 1998 from R. W. Pritchard in response to earlier Committee direction to investigate the feasibility of a run-off election for Regional Council representatives following the regular municipal election. They were also in receipt of e-mail correspondence from Mayor C. Zehr outlining his views. FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 23, 1998 - 5 - CITY OF KITCHENER 8. SELECTION OF CITY REPRESENTATIVES - REGIONAL COUNCIL- CONT'D On a motion by Councillor B. Vrbanovic, it was resolved: "That consideration of the report of Mr. R. W. Pritchard respecting selection of City representatives to Regional Council be deferred and referred to the March 23, 1998 Finance and Administrative Committee meeting and be listed as the first agenda item following any delegations." 9. 1998 WATER RATES The Committee was in receipt of a report from P. Houston dated February 18, 1998 recommending a water rate increase of 2 per cent over the 1997 rate and outlining reasons for the increase. Councillor Galloway indicated that he sees no reason to increase either the water or the waste- water rates and questioned why staff felt an increase is required. He pointed out that though Kitchener has the lowest combined rate in the Region, it has the highest water rate, and suggested that the proposed increase should be considered as part of the budget process. Ms. Houston responded that the projected water utility surplus is seriously Iow and that a moderate increase at this time is appropriate. She added that if deferred at this time any new rate would not be in place until May. Councillor Jake Smola referred to a previously circulated history of water utility revenue and noted $13,000,000.00 in revenue over the past 10 years and questioned what constitutes an appropriate rate given the excess of revenue over expenses. He also pointed to a discrepency between the budget and revenue figures in regard to the water utility. Councillor Ziegler indicated his preference to raise user rates rather than taxes, given that usage is in the control of the individual to a greater degree than taxes. Councillor Vrbanovic suggested that staff look at changing pipe ratios rather than increasing water charges. On a motion by Councillor Jake Smola, it was resolved: "That determination of the 1998 water rate be deferred and referred to the 1998 budget review process." 10. REVISED DATES - BUDGET REVIEW The Committee was in receipt of a report from P. Houston dated February 18, 1998 recommending revised dates for review of the 1998 budget. On a motion by Councillor G. Lorentz, it was resolved: "That in regard to the February 18, 1998 budget schedule report of P. Houston, alternate dates be selected for budget review and be presented to Council on March 2, 1998 for consideration." 11. BUDGET COMMUNICATIONS STRATEGY The Committee was in receipt of a report from P. Houston dated February 17, 1998 concerning a strategy for communicating with the public in regard to the current budget situation and Provincial downloading FINANCE & ADMINISTRATION COMMITTEE MINUTES FEBRUARY 23, 1998 -6- CITY OF KITCHENER 11. 12. 13. 14. BUDGET COMMUNICATIONS STRATEGY - CONT'D On a motion by Councillor G. Lorentz, It was resolved: "That the City of Kitchener allocate up to $13,500.00 toward a shared effort with the Region of Waterloo and other area municipalities within the Region for the development and implementation of a communication strategy, and that staff be authorized to proceed with this initiative." OTHER BUSINESS - TOBACCO ADVERTISEMENTS Councillor Galloway referred to an issue recently raised in regard to tobacco sponsorship advertising on City bus wraps and bus boards. Councillor T. Galloway put forward a motion directing staff to decline acceptance of advertising contracts involving tobacco advertisements either direct or of a sponsorship nature. Councillor Galloway accepted, as a friendly amendment, a suggestion from Councillor Jake Smola that staff be directed to formulate criteria for appropriate bus advertising. The main motion was then voted on, as amended. On a motion by Councillor T. Galloway, it was resolved: "That no further bus advertising contracts for interior or exterior advertising be entered into where these would involve either direct tobacco advertising or indirect tobacco advertising of a sponsorship nature; and further, That staff develop and report on criteria for what constitutes appropriate advertising on City buses." NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, March 23, 1998. ADJOURNMENT On motion, the meeting adjourned at 12:45 p.m. G. Sosnoski Manager of Corporate Records and Assistant City Clerk