HomeMy WebLinkAboutFinance & Admin - 1998-06-08FAC\1998-06-08
JUNE 8, 1998
FINANCE & ADMINISTRATION COMMITTEE MINUTES
CITY OF KITCHENER
The Finance and Administration Committee met this date commencing at 9:40 a.m., and Chaired by
Councillor J. Ziegler with the following members present: Councillors T. Galloway, K. Taylor-Harrison,
John Smola, J. Haalboom and G. Lorentz.
Others present: Mrs. J. Koppeser, Ms. P. Houston, Ms. R. Upfold, Ms. L. Pasternak, Messrs. J. Gazzola,
T. Clancy, T. McCabe, L. F. Parkhouse, J. Shivas, R. W. Pritchard and G. Sosnoski.
1. MORTGAGE REQUEST- MARILLAC PLACE
Ms. Marion Bickers and Ms. Cathie Schwark appeared on behalf of Marillac Place and in support of
their request that the City carry a first mortgage on a property the organization plans to purchase at
240 Frederick Street. The Committee was also in receipt this date of a presentation brief outlining
the request and including an income projection and financial statements for the years 1992 to 1998.
Ms. Bickers explained that Marillac Place is an organization which has offered pre-post natal
services to the community since 1992. She also noted that a larger facility is required as Marillac is
turning away ten applicants per month. Ms. Bickers referred to the background material circulated
this date, noting that Marillac Place, which is a charitable organization, will contribute approximately
25 per cent of the purchase price and if agreed to, the City would hold a first mortgage not to exceed
$187,500.00 for a term of five years and an interest rate of 6 per cent amortized over 25 years.
Councillor Galloway enquired whether Marillac Place had investigated conventional financing, and
Ms. Schwark replied that though they have not made a full application to a bank, the organization
has been assured that they are in a strong position to obtain financing. She further explained that if
the City held the mortgage it would demonstrate support for the organization and the services it
provides. She also advised that the organization's present Madison Avenue property will be sold at
an estimated value of approximately $80,000.00. Ms. Bickers clarified that the $80,000.00 amount
would be used to upgrade the new property and that the contribution toward the purchase would
come from the organization's building fund. Councillor Lorentz enquired as to when a response is
required and Ms. Bickers advised that she would appreciate an answer in the next one to two
months. Ms. Houston advised that staff could investigate the request and respond either to Council
on June 15 or to the Finance and Administration Committee on June 22.
On a motion by Councillor T. Galloway,
it was resolved:
"That in regard to the request of Marillac Place that the City hold a first mortgage on its
proposed new location at 240 Frederick Street, staff investigate and report on if and how
the City can assist in this regard, including current investment rates and possible use of the
Community Development Fund; and further,
That a report in regard to the above be submitted for consideration either by Council on
June 15, 1998 or the Finance and Administration Committee on June 22, 1998."
NOISE BY-LAW EXEMPTION - PROJECT MOSAIC (LUTHERWOOD YOUTH EMPLOYMENT
CENTRE)
Ms. Aaron Rose Weishar appeared in support of the request of Project Mosaic for an exemption to
the City's Noise By-law relative to music events featuring local artists and entitled "Crazy Mixed-up
Music Days". Ms. Weishar advised that no funding is being requested of the City and that between
40 and 50 people are expected for the events to be held in Victoria Park at the Clock Tower Green.
On a motion by Councillor G. Lorentz,
it was resolved:
"That two events entitled 'Crazy Mixed-Up Music Days' to take place at the Clock Tower
Green in Victoria Park on June 13 and July 11, 1998 from 3 p.m. until 9 p.m. be exempt
from the provisions of Chapter 450 (Noise) of the City of Kitchener Municipal Code."
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CITY OF KITCHENER
NOISE BY-LAW EXEMPTION - PROJECT MOSAIC (LUTHERWOOD YOUTH EMPLOYMENT
CENTRE) - CONT'D
The above recommendation was considered at the special Council meeting held on June 8, 1998.
3. CONTRACTUAL SERVICES AGREEMENT- HUMANE SOCIETY
The Committee was in receipt of a report and recommendation from R. Upfold, L. Pasternak and P.
Houston dated May 28, 1998, including a draft agreement dated January 1, 1998.
Dr. G. Hess, General Manager, was in attendance on behalf of the Humane Society.
Moved by Councillor T. Galloway
"That the Mayor and Clerk be authorized to execute an agreement with the Kitchener-
Waterloo and North Waterloo Humane Society for the provision of animal control and
pound services for the Corporation of the City of Kitchener for a three year period effective
the first day of January, 1998."
In response to a question, Dr. Hess advised that the Humane Society cannot presently deal with
nuisance wildlife and has been told by the Province that it can only respond where injured or sick
animals are involved. He added that removing animals such as raccoons or skunks is presently the
responsibility of the property owner, though the Humane Society will assist elderly individuals who
are incapable of dealing with the situation themselves. Dr. Hess explained that the Ministry of
Natural Resources requires a licence to perform wildlife services which the Humane Society does not
have at present and providing these services could result in a significant additional cost.
The previous motion by Councillor T. Galloway to execute an agreement for animal control services
was then voted on and Carried.
A brief discussion took place as to the various options open to the City in regard to nuisance wildlife
services including providing a list of private, City sanctioned contractors offering wildlife services at a
set fee. Councillor Haalboom suggested that the issue could also be looked at in terms of
recommended actions which could reduce the likelihood of wildlife problems.
In response to comments from Councillor Galloway, it was generally agreed that staff would
investigate what services are currently available for nuisance wildlife and outline all options for
addressing this problem including full City payment for services, shared payment, and City
sanctioning of specified contractors. Mr. Gazzola advised that a staff team would be assembled to
investigate the issue and report back at a future date.
4. REFRESHMENT VEHICLE DISTANCE SEPARATION
The Committee was in receipt of a report from J. Koppeser dated June 1, 1998 recommending no
action on a request to amend Chapter 586 (Refreshment Vehicles) to allow exemptions from the
distance separation requirements.
Councillor John Smola put forward a motion to grant conditional exemption from the distance
separation requirements, provided written approval is obtained from businesses within the prescribed
distance.
Ms. Pasternak referred to previously circulated legal advice and asked that Council consider this in-
camera later this date.
On a motion by Councillor G. Lorentz,
it was resolved:
"That further consideration of possible exemptions from the distance separation
requirements for refreshment vehicles be deferred and referred to the in-camera meeting of
Council to be held later this date."
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CITY OF KITCHENER
5. LICENCE FEE REFUND- SHAWN MILLER
The Committee was in receipt of a report from J. Koppeser dated June 4, 1998 recommending no
action on the request of Shawn Miller for a refund of the business licence fee relative to selling
fireworks in the City.
Councillor Ziegler left the Chair at this time to participate in the discussion and Councillor Galloway
occupied the Chair.
Councillor Ziegler advised that Mr. Miller operates semi-permanent vegetable and flower stands in
the municipality at other times during the year and that these are also used to sell fireworks on two
separate occasions in each year. He pointed out that the special legislation obtained by the City was
intended to prevent transient vendors of fireworks from setting up in the municipality and depriving
local vendors of this business. He pointed out that Mr. Miller also owns a warehouse in the City and
pays taxes in this regard over and above the fees he pays to operate the flower and vegetable
stands. Councillor Ziegler suggested that it is appropriate for Mr. Miller to pay some sort of fee;
however, the $2,000.00 amount is unreasonable. He suggested establishing a separate licencing
category applicable to circumstances like those of Mr. Miller, and pointed out that the City does not
require variety stores which also sell fireworks to obtain a similar licence.
Mr. Parkhouse pointed out that the action suggested by Councillor Ziegler may require the City to
abolish the special legislation, and Ms. Pasternak suggested that all legislative authority in this
regard be examined in greater detail.
On a motion by Councillor J. Ziegler,
it was resolved:
"That Legal and Licencing staff investigate and report on the feasibility of a separate
licencing category in regard to the sale of fireworks by vendors in circumstances similar to
Mr. Shawn Miller who are involved in the sale of other products from temporary locations
during the remainder of the year on an ongoing basis."
6. CORPORATE COMMUNICATION/MARKETING DIVISION
The Committee was in receipt of a report and recommendation from J. Gazzola dated June 4, 1998
concerning implementation and funding of the new Division.
Councillor Ziegler referred to previous discussion concerning the possibility of the Communications
Officer being a contract position. Mr. Gazzola asked that discussion in this regard be deferred until
after an in-camera meeting of Council proposed for June 15, 1998 during which the issue of contract
versus full-time positions will be discussed. He further suggested that the balance of the report
recommendations should be considered at this time in the interest of expediting the process.
Councillor Ziegler advised that in conversation with Mayor C. Zehr, who was unable to attend this
date, he had mentioned that he would like to see an acceleration of the timing for Phases 2 and 3 of
Mr. Gazzola's recommendation in order that Phase 2 be completed by October 31, 1998 and Phase
3 by December 31, 1998. Mr. Gazzola responded that in his experience six months is required to go
through the various phases outlined and that the timing is intended to coincide with the 1999 budget
review process. Mr. Clancy suggested that proceeding too quickly could jeopardize the success of
the Division given the concerns raised by individual departments who presently perform marketing
functions. He also suggested that it may be inappropriate to accelerate the process given that
implementation would be the responsibility of a new employee. He suggested that the timeframe
should be as outlined in Mr. Gazzola's report.
On a motion by Councillor G. Lorentz,
it was resolved:
"That a Corporate Communications/Marketing Division be established using the following
phased in process:
6. CORPORATE COMMUNICATION/MARKETING DIVISION - CONT'D
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- 93-
CITY OF KITCHENER
Phase 1 - the City to establish a new position of Communications Officer, applications to be
accepted from both internal and external applicants, with the process to fill this position to
commence immediately and be completed by August 15, 1998;
Phase 2 - the Communications Officer will prepare an implementation plan to centralize
marketing under a corporate structure and in such a manner as to eliminate any current
duplication, with this phase to be completed by February 15, 1999;
Phase 3 - the Communications Officer will report by April 30, 1999 as to the feasibility of
combining Special Event Section marketing within the Corporate Communication/Marketing
Division; and, that a review of tourism promotion in the municipality be carried out at that
time."
7. MUNICIPAL PROPERTY TAXATION SYSTEM
The Committee was in receipt of an information report from P. Houston dated June 2, 1998 on the
status of Provincial changes to the taxation system and the target for issuing the next tax bill.
Councillor Lorentz referred to recent correspondence from the Association of Municipalities of
Ontario (AMa) requesting specific information on how the Provincial delays in implementing the
taxation system are affecting municipalities and their projected losses. Councillor Ziegler enquired
as to the status of the City's prior petition to the Province concerning an additional interim tax bill,
and Ms. Houston replied that no response has been received to date other than a general
commitment to delay tax payments to school boards. Councillor Ziegler suggested that the City
renew its petition in the interest of lessening the burden on taxpayers and meet with local M.P.P.'s
in this regard. Councillor Lorentz also asked that the information requested by AMa be forwarded
to them. In response to a further question, Ms. Houston advised that the Mayor has received a
letter of acknowledgement in regard to the requested recalculation of the City's expenditure
reduction target, but no other response has been received to date.
Councillor Galloway noted that the delay in the education payment would likely reduce the
$250,000.00 per month loss which the City is incurring as a result of Provincial delays, and Ms.
Houston advised that this would account for approximately 1/3 of the projected loss. Councillor
Galloway enquired whether the City, at the time it advances the education portion of the tax levy
can deduct any costs from the remittance amount. Ms. Houston advised that staff could
investigate the possibility and if appropriate take this action.
On a motion by Councillor G. Lorentz,
it was resolved:
"That staff renew the City's petition to the Province of Ontario requesting permission to issue a
second interim tax bill and meet with local M.P.P.'s in this regard, and further;
That the Association of Municipalities of Ontario be provided with the information requested in
regard to the cost to the municipality of delaying 1998 tax billing."
8. CHARITABLE GAMING CLUBS - ADVANCE FUNDING
The Committee was in receipt of a report from J. Koppeser and L. Pasternak dated June 5, 1998
advising of a Provincial program to allow charities to obtain advance funding over the next year in
order to bridge the gap between the elimination of Monte Carlo events on March 31, 1998 and the
yet to be implemented Charity Gaming Clubs.
Moved by Councillor G. Lorentz,
"That Kitchener City Council request the Province of Ontario to further extend its advance
funding program deadline for submitting a roster of local charities from mid July, 1998 to
September 30, 1998".
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CITY OF KITCHENER
10.
CHARITABLE GAMING CLUBS - ADVANCE FUNDING - CONT'D
Councillor Lorentz suggested that Provincial actions in this regard are both confused and
confusing, noting that they are asking for a list of charities that would receive funding without
providing any details concerning the advance funding program. Mr. Parkhouse pointed out that
contradictory information is also being given to local charities in regard to the availability of
detailed information on the advance funding program. He noted that if Council decided against
having a charitable casino in the municipality, local charities may have an opportunity to
participate in a casino in another municipality. He added that if funding is advanced, there are no
guarantees that the charities on the roster will even have access to a casino in another
municipality, and that if Council endorses the roster and there is no access to gaming clubs
Council may be held responsible for paying back the advance funding. Councillor Galloway
suggested that the Province is attempting to gain favour with local charities and redirect blame for
the cancellation of the Monte Carlo events.
The previous motion by Councillor G. Lorentz to request an extension of the Province's advance
funding deadline was voted on and Carried.
NEXT MEETING
The next regularly scheduled meeting of the Finance and Administration Committee will be held on
Monday, June 22, 1998.
ADJOURNMENT
On motion, the meeting adjourned at 11:15 a.m.
G. Sosnoski
Manager of Corporate Records
and Assistant City Clerk