Loading...
HomeMy WebLinkAboutFinance & Admin - 1998-06-22FAC\1998-06-22 JUNE 22, 1998 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date commencing at 10:15 a.m., and Chaired by Councillor J. Ziegler with the following members present: Mayor C. Zehr, Councillors T. Galloway, M. Yantzi, John Smola, B. Vrbanovicz, J. Haalboom, G. Lorentz and C. Weylie. Others present:: Mrs. J. Koppeser, Ms. P. Houston, Ms. L. Pasternak, Ms. L. MacDonald, Ms. J. Luciantonio, Messrs. J. Gazzola, B. Stanley, T. Clancy, T. McCabe, L. F. Parkhouse, J. Shivas, K. Tribby, L. Proulx, J. Hancock, B. Kuntz, R. W. Pritchard and G. Sosnoski. 1. FUNDING REQUEST - HABITAT FOR HUMANITY The Committee was in receipt of a report from P. Houston dated June 16, 1998 in response to Council's request for background on the organization's request for a grant-in-lieu of development charges and building permit fees for construction projects proposed at 421 and 423 Strasburg Road. Ms. Pat McLean appeared on behalf of Habitat for Humanity of Waterloo Region and in support of the organization's request. Ms. McLean advised that to date, 22 projects have been completed in the City of Kitchener which accounted for approximately $40,000.00 in property taxes in 1997. On a motion by Councillor T. Galloway, it was resolved: "That a 1998 grant-in-lieu of development charges in the amount of $10,168.00 be awarded to Habitat for Humanity in conjunction with the projects planned at 421 and 423 Strasburg Road, with funding from the General Provision Grant account." 2. STREET VENDOR BY-LAW - HOT DOG CART LOCATIONS Councillor Vrbanovic explained that Mr. Greg Sikorski had previously requested permission to locate a hot dog cart in the Downtown, upon which Council took no action. Subsequent to this a meeting was held during which Mr. Sikorski raised concerns over the current Street Vendor By-law and location criteria. Mr. Sikorski was in attendance this date and expressed concerns over the process of choosing vendors for the five Downtown locations. He indicated that under the current process there is almost no possibility of new vendors having access to these locations as preference is given for the following season to the vendors who presently occupy the locations. Mr. Sikorski also suggested that five locations is too small for a municipality the size of Kitchener and that additional vendors would create more opportunities and increase competition. Councillor Vrbanovic questioned whether under the current arrangement, one operator can have access to more than one Downtown location, and Mrs. Koppeser replied in the affirmative noting that this became possible last year when Council removed the previous owner/operator requirement. Councillor B. Vrbanovic put forward a motion that staff evaluate the current by-law and the feasibility of restricting an owner/operator to a single Downtown location. He subsequently accepted, as a friendly amendment, a suggestion from Councillor Ziegler that the recommendation indicate support in principle subject to staff assessing the current arrangement and the impact of such a restriction. The motion was also amended to clarify that a permanent business in the Downtown having an extension of use agreement with the City would not have access to a hot dog cart location under the Street Vendor By-law. On a motion by Councillor B. Vrbanovic, it was resolved: "That Council support, in principle, limiting a vendor to one hot dog cart location in the Downtown, this on the understanding that a permanent business operating a sidewalk patio under an extension of use agreement would not be able to own/operate a hot dog cart under the Street Vendors By-law; and further, FINANCE & ADMINISTRATION COMMITTEE MINUTES J U N E 22, 1998 - 96- CITY OF KITCHENER 2. STREET VENDOR BY-LAW - HOT DOG CART LOCATIONS - CONT'D That staff evaluate the above direction in light of the existing By-law and report on its impact at the August 10, 1998 Finance and Administration Committee meeting." A subsequent motion by Councillor B. Vrbanovic directing staff to investigate the feasibility of introducing additional hot dog cart locations in the Downtown was voted on and Lost. 3. MORTGAGE REQUEST - MARILLAC PLACE The Committee was receipt of a report from P. Houston dated June 15, 1998 in response to a Council request that staff investigate the feasibility of the City holding a first mortgage for Marillac Place. Ms. Marion Bickers, President, and Ms. Cathie Schwark, Executive Co-ordinator, appeared on behalf of Marillac Place and in support of their request. The Committee was also circulated this date with their additional written submission dated June 22, 1998 requesting direction from Council on future grant applications and other funding options. Ms. Bickers referred to the request on Page 2 of the submission involving a decreasing grant totalling $87,000.00 to be awarded over a three year period. Councillor Ziegler noted the staff recommendation suggests a grant application to the Regional Muncipality of Waterloo which is responsible for providing health care services. Ms. Schwark referred to the portion of the staff recommendation relative to City recreational programs and asked whether the municipality would consider a funding request for an equipment purchase and the hiring of staff to run recreational programs on behalf of Marillac Place. Ms. Houston replied that staff had envisioned subsidy assistance to allow Marillac residents to access City recreational programs, and that what is proposed by Ms. Schwark would not fit the current funding criteria. Councillor Galloway suggested that Marillac Place complete a City grant application to be considered as part of the annual grant process, noting that the City supports organizations such as the Big Sisters and Roof with respect to recreational programming. On a motion by Councillor T. Galloway, it was resolved: "That no action be taken on the request of Marillac Place that the City hold a first mortgage on their proposed new location at 240 Frederick Street, as current legislation does not allow the City to hold such a mortgage unless it is a direct result of the sale of municipally owned property; and, That Marillac Place be referred to the Regional Municipality of Waterloo for their consideration of grant funding, and that by this motion the City hereby indicates its support for such funding; and, That City staff confer with representatives of Marillac Place in order to prepare a Kitchener grant request as part of the annual grant process; and further, That staff investigate future partnership opportunities to provide recreational programs for the residents of Marillac Place." 4. ENFORCEMENT OF ZONING BY-LAW - "BLUES PICNIC" Mr. Scott Urquhart appeared and requested that the City waive enforcement of the Zoning By-law in conjunction with the August 9 "Blues Picnic" to be held on private lands off Oregon Drive. He explained that Monarch Construction is allowing use of an existing farm site for the event which will run from noon until approximately 8:00 p.m. Parking is available for 200 cars. JUNE 22, 1998 FINANCE & ADMINISTRATION COMMITTEE MINUTES - 97- CITY OF KITCHENER ENFORCEMENT OF ZONING BY-LAW - "BLUES PICNIC" - CONT'D On a motion by Councillor J. Haalboom, it was resolved: "That enforcement of the City's Zoning By-law be waived for the "Blues Picnic" to be held on Sunday, August 9, 1998 on the farm site owned by Monarch Construction Limited at the end of Oregon Drive." LOTTERY REQUEST - KITCHENER FASTBALL PROMOTIONS The Committee was in receipt of a report from J. Koppeser dated June 19, 1998 concerning a request to hold a lottery in Kitchener, the proceeds from which would be used to fund hosting of the 1999 Canadian Midget Boys Fastpitch Championship Games. Mr. Ray Alviano appeared on behalf of Kitchener Fastball Promotions and in support of the request, noting that it will cost approximately $75,000.00 to run the event. On a motion by Councillor T. Galloway, it was resolved: "That the Kitchener Fastball Promotions be granted permission to hold lotteries in the City of Kitchener from June 1998 to August 1999; and further, That all monies raised will be used to pay for transportation, field rentals, accommodations and umpires for the participants of the 1999 Canadian Midget Boys Fastpitch Championship Games, with any revenues remaining after paying these expenses to be donated to another minor sports program." FIREWORKS VENDING LOCATION - SHAWN MILLER Council was in receipt of a report from L. Pasternak in response to a previous Committee request that staff investigate and report on the feasibility of separate licensing categories to address concerns raised by Mr. Shawn Miller who is involved in the sale of other products from temporary locations during the remainder of the year on an ongoing basis. Mr. Shawn Miller was in attendance and renewed his earlier request for fee relief in regard to the firework sales. Mr. Miller noted that he is planning to sell fireworks during the upcoming July 1 holiday and indicated that the new licensing fee structure is slowly forcing him out of business. He also asked that staff consider reworking the by-law so as to remove the requirement that the property owner pay half of the licence fee as this is unlikely to occur. On a motion by Councillor B. Vrbanovic, it was resolved: "That staff prepare a report in regard to defining classes of temporary vendors selling fireworks and distinguishing 'resident' from 'non-resident' temporary vendors; and further, That the licence fees for selling fireworks for the Canada Day holiday required under By- law 94-75 be waived for Mr. Shawn Miller for the location where he has been licensed as a temporary vendor since April, 1998 and where he was licensed to sell fireworks for the Victoria Day holiday." Councillor Ziegler advised that the above recommendation would be considered at the special Council meeting later this date, as the next regular Council meeting is after the July 1 holiday. COMMUNITY DEVELOPMENT INFRASTRUCTURE GRANT REQUEST CHICOPEE OUTREACH PROGRAM SUMMER (COPS) '98 Council was in receipt of Planning and Development Department report PD98/91 (S. FrenetteFE Stanley/R. Weber) recommending awarding of a grant for the COPS 1998 Program. JUNE 22, 1998 FINANCE & ADMINISTRATION COMMITTEE MINUTES - 98- CITY OF KITCHENER 7. COMMUNITY DEVELOPMENT INFRASTRUCTURE GRANT REQUEST CHICOPEE OUTREACH PROGRAM SUMMER (COPS) '98 - CONT'D Councillor Vrbanovic explained that the seriousness of youth related incidents in the Centreville- Chicopee area has increased and as a result a working group was formed to discuss and deal with these issues. Constable Rob Davis, Constable Lisa Hummel and Dr. Hugh Russell were in attendance in support of the grant request. Constable Hummel referred to the objectives of the COPS initiative which includes a Police/youth mentoring partnerships involving recreational activities and neighbourhood improvement initiatives. Constable Davis referred to the Vision 2000 initiative which is a Police/youth program begun in 1993, and is directed at the 5 per cent of youth who account for 85 per cent of Police work. He pointed out that Police Officers have volunteered their time in this regard. Dr. Hugh Russell appeared in his capacity as an advisor to the Waterloo Regional Police Services in the area of community development. He indicated that he has reviewed and supports the COPS project, and pointed out that this is not a continuing funding request. Based on his experience with other similar initiatives, Dr. Russell suggested that the program is an investment in long term community development and youth crime reduction. Constable Davis added that approximately 50 youth will participate in the program, and invited members of Council to attend any of the sessions, including an upcoming August canoe trip. Mayor Zehr encouraged those involved in the program to continue their efforts and to share information on the program outside of Kitchener. He also raised the issue of ongoing funding for such programs. Councillor Vrbanovic replied that Councillor Taylor-Harrison is chairing a youth committee and that it was his understanding a final report will address funding and other related issues. Councillor Vrbanovic also introduced several other individuals involved with the COPS initiative who were in attendance this date; namely, Constable Pat Smola, Constable Craig McDowell and Mark Hildebrand, District #3 Program Supervisor. Councillor Vrbanovic also noted that the staff recommendation should be amended to indicate that any grant funding will be administered through the Centreville-Chicopee Community Centre. On a motion by Councillor B. Vrbanovic, it was resolved: "That Council provide a Community Development Infrastructure Grant of up to $6,000.00 for the Chicopee Outreach Program Summer '98, with funding to be administered through the Centreville-Chicopee Community Centre; and further, That an evaluation of the Program be undertaken and a final report prepared for presentation to Council." 1997 AUDITED FINANCIAL STATEMENT Ms. Dana Tunks appeared on behalf of Ernst and Young, the City's Auditors, and in conjunction with Mr. Brian MacDonald, Manager of Budgets and Financial Services, gave a presentation on the Financial Statement previously circulated to members of Council. Ms. Tunks advised that her firm has reviewed the City's financial processes and controls and that observations aimed at improvement have been discussed with management staff. She advised that the statement has been reviewed in light of 4 key performance indicators; namely: taxes; capital operations not permanently financed; reserves and reserve funds; and , net long-term liabilities. Ms. Tunks pointed out that in the past the City has ended the year in a surplus position; however, this year is in break even position due to large tax writeoffs, and a transfer from the Tax Stabilization Reserve Fund. She advised that per capita tax arrears have decreased in 1997 to $75.00 from $95.00 in 1996. Ms. Tunks also noted that a per capita debt of less than $100.00 is considered very, very Iow and that the City ended in 1997 with a per capita debt of approximately $91.00, including enterprises. Mayor Zehr asked that the chart on Page IV be checked to ensure that the per capita figure shown is correct and consistent with other such references in the JUNE 22, 1998 FINANCE & ADMINISTRATION COMMITTEE MINUTES - 99- CITY OF KITCHENER 10. 1997 AUDITED FINANCIAL STATEMENT - CONT'D Statement. Ms. Tunks commented that the Sick Leave Reserve Fund is at its lowest funding level ever and advised that it should be funded at 25 per cent of liability and is now less than 10 per cent, with the City's policy indicating 60 per cent funding. Ms. Tunks added that based on a five year projection, funding in this Reserve would increase to $1.7 million, and suggested that the staff investigate ways of achieving the 25 per cent target of $3.5 million. Mr. Gazzola advised that City staff are currently reviewing this fund. Ms. Tunks also suggested that the Tax Stabilization Reserve Fund should be funded at approximately 10 per cent of the total tax revenue, but is currently funded at only 7 per cent. She reviewed the criteria for establishing fund level and Mayor Zehr suggested that 10 per cent may be high under the circumstances given the current environment of Provincial downloading. Councillor Ziegler referred to unsold industrial land and enquired as to the City's cost once all the lands are sold. Mr. Gazzola replied that staff hope to sell all of the remaining lands in the next seven years, and any profit or loss to the City cannot be readily identified at this time. Ms. Houston clarified that approximately $5 million worth of land remains unsold. Ms. Tunks advised that she has discussed a draft memorandum of recommendation with management staff which will include comments concerning the Sick Leave Reserve Fund and proposed changes to the format of the Financial Statement. It will also make reference to implementation of activity based costing and comparisons to other municipalities as well as protocols surrounding documentation and systems testing. In response to comments from Mayor Zehr concerning the inappropriateness of the current legal name, staff were directed to look into changing the "Rockway Golf and Lawn Bowling Club". On a motion by Councillor B. Vrbanovic, it was resolved: "That Council accept the official, audited Financial Statements of the City of Kitchener for the period ending December 31, 1997." DOWNTOWN FINANCIAL INCENTIVE - 49 FREDERICK STREET The Committee was in receipt of Planning and Development Department report PD98/88 (S. FrenetteAN. Pearce) recommending grant approval in regard to renovations for the Market Square parking garage. On a motion by Councillor G. Lorentz, it was resolved: "That consideration of the application of 1178822 Ontario Limited (the Cora Group) for a grant-in-lieu of building permit fee relative to renovation of the Market Square parking garage be deferred and referred to the July 6, 1998 meeting of City Council." FIRE DEPARTMENT HEADQUARTERS - TENDER AWARD The Committee was in receipt of reports from P. Houston and L. Gordon dated June 18 and 17 respectively concerning awarding of the tender and a funding shortfall. Councillor Galloway suggested the reasons for the cost exceeding the estimate are unclear and asked for a further explanation. Ms. Houston responded that the construction contract is as estimated; however, moving, furnishing and contingency costs were not included. Mayor Zehr questioned how such basic components could be overlooked in the budget estimate, and Ms. Houston advised that for purposes of the Capital Forecast gross budget estimates are used and these are refined as the project is moved up in the Forecast. Mr. Proulx verified that the original estimates were not scrutinized in regard to such soft costs. Councillor Galloway suggested that part of the problem may be the volume of the building and questioned whether it would be feasible to delay awarding the tender until next Spring in the hopes of securing a better tender price. JUNE 22, 1998 FINANCE & ADMINISTRATION COMMITTEE MINUTES - 100- CITY OF KITCHENER 10. 11. FIRE DEPARTMENT HEADQUARTERS - TENDER AWARD - CONT'D Mayor Zehr questioned whether staff were aware of the shortfall during the recent budget process, and Mr. Proulx replied that furnishings were introduced as part of the 1998 budget request, but staff were told that these would not be needed until 1999. He also noted that there is no sewer installed under the roadway as there was previously no need. He advised that the City is filing for a local improvement in order that the costs be shared by abutting landowners who would benefit by the project; however, should the project not proceed in this way, there will be additional sewer costs. A discussion then took place concerning some of the specific, proposed reductions/changes involving the types of materials to be used in the Fire Headquarters outlined in the staff report. Councillor Galloway suggested that the Artwork Cash Allowance should remain as part of the project budget, and that the Public Art Committee should initiate a competition for a piece of exterior artwork. Mayor Zehr suggested that the staff recommendation be amended so that the Artwork Cash Allowance remains as a project cost but is removed from the tender amount. Mr. Gazzola added that the funding shortfall may in part relate to staff's continued efforts to reduce estimated costs as much as possible in order to balance the Capital Forecast. The Committee then voted on the staff recommendation, as amended to incorporate the suggestions of Mayor C. Zehr and Councillor T. Galloway. On a motion by Mayor C. Zehr, it was resolved: "That Tender T98-003, Kitchener Fire Department Headquarters, be awarded to D. Grant & Sons Limited, London, Ontario at their tendered price of $4,171,930.00, less the following cost reductions: Interior Signage - $2,000.00; Artwork Cash Allowance - $15,000.00; the items listed on the schedule entitled "Kitchener Fire Department Headquarters Proposed Savings - Separate and Alternate Prices" as appended to the report of L. Gordon dated June 17, 1998 and totalling $107,300.00 plus G.S.T.; and, That notwithstanding the above reduction relative to the Artwork Cash Allowance, the $15,000.00 amount excluded from the Tender remain as a project cost and at the appropriate time the Public Art Committee initiate a competition for exterior artwork; and, That the masonry portion of the contract totalling $579,500.00 plus G.S.T. be deleted from the D. Grant & Sons Limited tender and be awarded separately to E. R. Masonry, Kitchener; and further, That additional funding be allocated to the Fire Headquarters project, as follows: $80,100.00 from the Reserve for Development Charges, and $125,200.00 from Capital Surplus." PROVINCIAL OFFENCES ACT The Committee was in receipt of a report from L. Pasternak dated June 19, 1998 recommending that staff participate in the development of an inter-municipal business plan relative to assumption of delegated Provincial authority. On motion by Councillor B. Vrbanovic, it was resolved: "That staff be directed to participate in the development of an inter-municipal business plan to prepare for the assumption of delegated authority from the Province for Provincial Offences Administration in accordance with the provisions of Bill 108." JUNE 22, 1998 FINANCE & ADMINISTRATION COMMITTEE MINUTES - 101- CITY OF KITCHENER 12. LOT MAINTENANCE/PROPERTY STANDARDS BY-LAWS The Committee was in receipt of Planning and Development Department report PD98/89 (K. Tribby/T. McCabe/J. Witmer) concerning proposed by-laws to authorize waste removal and repairs to the subject properties. Moved by Councillor G. Lorentz, "That the owners of the following properties be notified that the City intends to consider by- laws at the July 6, 1998 Council meeting authorizing the removal of waste material and/or repairs to the subject properties, at the owner's expense, if this has not been done by the owners prior to the deadlines indicated in the respective by-laws: 45 King Street West; 5 Indiana Street; 150 Adelaide Street; 42 Ellen Street West; 211 Spring Valley Road; 122 Lancaster Street East; 215 Frederick Street; 98 Weber Street East; and 227 Louisa Street." 13. 14. Councillor John Smola referred to several outstanding complaints from residents of his Ward which have been unresolved for a period of greater than two years. He noted that in these instances ongoing problems have never been dealt with to the satisfaction of residents, and suggested that several of these properties should be added to the by-law list so that they may be dealt with more effectively. Mr. Tribby advised that Council policy in this regard would have to change and this would be a political decision. He also noted that there may be some liability issues involved in the absence of a court decision. Councillor Smola advised that he would speak to staff in regard to his concerns, and if appropriate, would bring a report back for consideration by Council at a later date. The motion by Councillor G. Lorentz to notify property owners of pending waste removal/repair by- laws was then voted on and Carried. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, August 10, 1998. ADJOURNMENT On motion, the meeting adjourned at 12:30 p.m. G. Sosnoski Manager of Corporate Records and Assistant City Clerk