HomeMy WebLinkAboutFinance & Admin - 1998-09-28FAC\1998-09-28
SEPTEMBER 28, 1998
FINANCE & ADMINISTRATION COMMITTEE MINUTES
CITY OF KITCHENER
The Finance and Administration Committee met this date commencing at 10:20 a.m. and Chaired by
Councillor J. Ziegler with the following members present: Mayor C. Zehr, Councillors T. Galloway, K.
Taylor-Harrison, John Smola, Jake Smola, B. Vrbanovic, J. Haalboom, G. Lorentz and C. Weylie.
Others present: Ms. P. Houston, Ms. L. MacDonald, Mrs. J. Koppeser, Ms. L. Pasternak, Ms. D. Arnold,
Messrs. J. Shivas, (Acting Chief Administrative Officer), R. W. Pritchard, L. F. Parkhouse, T. Clancy, B.
Stanley, B. Gulliver and G. Sosnoski.
Mayor C. Zehr introduced Mr. Paul Sinnott, the City's new Corporate Communications Officer.
1. EXTENSION OF PROTOCAL - C.I.D.A. PARTNERSHIP (KITCHENER AND CEBU CITY)
The Committee was in receipt of a joint report from R. W. Pritchard and J. Gazzola dated
September 2, 1998 concerning a possible two year extension of the existing protocol between
Kitchener and Cebu City, Philippines.
Mr. Basille Gilbert, Director of the Municipal Partnership Program - Federation of Canadian
Municipalities (FCM) was in attendance and conveyed FCM's appreciation and congratulations on
the previous partnership with Windhoek, Namibia and the current initiative involving Cebu City.
He advised that as a result of the City's initiative, FCM has expanded its activities in Namibia, and
noted that FCM and municipal efforts were recently recognized internationally by the United
Nations.
Mr. Gilbert stated that FCM is supportive of a continuation of the partnership with Cebu and is
prepared to fund the program for an additional two years. Funded activities include exchanges
involving municipal management and government activities, promotion of business activities and
encouraging areas involving public and private working relationships, as well as educational and
cultural exchange activities. He stated that all funds required to travel or host an exchange are
paid for through the Canadian International Development Agency (CIDA) with additional funding
available for community groups implementing related activities. He stated that the municipality is
only responsible for the time of its staff members spent abroad.
Councillor Galloway referred to the proposed Regional Economical Development Corporation and
any impact this may have upon the partnership, and Mr. Gilbert responded that FCM is supportive
of such initiatives and the same funding guidelines would apply. Mayor Zehr asked for elaboration
on the value of the exchange to Kitchener as a community, and stressed the importance of
continuing economic activity in this area. He also referred to an invitation to travel to the
Philippines which he and Mr. Gazzola recently received from the Mayor of Cebu. He noted that he
is sensitive to the issues surrounding such an invitation and would not proceed without the strong
support of Council and assurances that there is a benefit to the municipality. Mr. Pritchard advised
that the Mayor of Cebu is anxious to enter into a two year extension of the current partnership and
that to date individual employees have grown through their participation in international activity
and a number of local companies have strongly supported the FCM partnership and are interested
in making further business contacts in Cebu. Councillor Weylie pointed out that it is beneficial to
share municipal government expertise with other countries who have less in this area.
Councillor B. Vrbanovic put forward a recommendation to continue the partnership for a further two
years, with a subsequent review of the initiative.
Councillor Galloway indicated his support, but asked that an evaluation tool be included to
measure the economic development benefits of the partnership and that Council receive an
annual report in this regard. He suggested that this could take the form of the amount of
investment funds exchanged between the two countries or business contracts obtained.
Councillor Vrbanovic accepted the comments of Councillor Galloway as a friendly amendment.
Councillor Lorentz enquired as to the number of other municipalities of Kitchener's size which have
taken part in the partnerships and Mr. Gilbert replied that approximately 80 municipalities have
been involved since the program's inception and at present 45 are active partners. He advised
that at present approximately 8 Ontario municipalities are involved in partnership programs similar
to that of Kitchener, and there have been 15 involved since the program's inception. Mr. Gilbert
added that the primary purpose of the program is to share Canadian
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EXTENSION OF PROTOCAL - C.I.D.A. PARTNERSHIP (KITCHENER AND CEBU CITY) -
CONT'D
expertise in municipal management and governance with other countries; however, CIDA is
amenable to adapting the program to changing needs, particularly economic initiatives.
Councillor Ziegler indicated that though he generally supports the initiative he has concerns in
regard to the cost in staff time and operational problems which may occur when a senior staff
member is absent for an extended period of time, and in regard to the latter referred specifically to
the exchange involving the General Manager of Public Works earlier this year. He added that
there should be a more co-ordinated approach to dealing with the staffing implications where
senior staff are involved and that Council should be made aware of who will participate in the
exchanges and how these implications will be addressed well in advance of the exchange.
Councillor Ziegler also asked that staff take into consideration other absences during the year
involving holidays, training and conference attendance.
Councillor Vrbanovic amended his earlier motion so as to require that Council be advised of the
staff who will attend during the next two years and the staffing implications, and the motion was
then voted on, as amended.
On a motion by Councillor B. Vrbanovic,
it was unanimously resolved:
"That subject to agreement by Cebu City, Philippines, Kitchener extend its Federation of
Canadian Municipalities/Canadian International Development Agency Partnership with
Cebu for an additional two years as outlined in the report of R. W. Pritchard and J. Gazzola
dated September 2, 1998, with the Chief Administrative Officer to submit recommendations
on which staff members will be sent to Cebu and any staffing implications related to their
absence; and further,
That in addition to any overall evaluation of the partnership extension, a method be put in
place to specifically evaluate the benefits relative to economic development, with an annual
report in this regard submitted to Council."
2. NOISE COMPLAINTS INVOLVING CN RAILWAY AND WESTON'S BAKERY
Mr. Andy Maas appeared on behalf of property owners in the Filbert and Victoria Street North area
concerning ongoing noise complaints relative to the Canadian National Railway coupling yard and
the receiving area at Weston's Bakery. He stated that noise complaints have been ongoing over a
20 year period and that no action has been taken to date by staff. He suggested that the former
building on Victoria Street North should not have been demolished without proper noise
attenuation as removal of the building has exposed neighbouring residential properties to
excessive railway noise. Mr. Maas also noted that the expansion of Weston's Bakery has
increased the noise from that business. Mr. Maas asked that members of Council acquaint
themselves with the situation and pursue remedial action, and in the interim, taxes of affected
property owners be reduced by 50 per cent. He also referred to a petition signed by 20
neighbourhood residents.
Councillor K. Taylor-Harrison elaborated on the problem involving Weston Bakery and noted that
Ms. Pasternak has been working with Community Justice Initiatives (CJI) and Mr. Maas. Ann
Hamilton also appeared on behalf of CJI and advised that the problem involving Weston's Bakery
is essentially solved at this time.
Councillor K. Taylor-Harrison put forward a motion recommending that the Legal Department
initiate discussion with CN Railways. She subsequently accepted, as a friendly amendment, a
suggestion from Councillor Jake Smola that noise resulting from idling engines at the Kitchener
train station should also be addressed. The motion was then voted on, as amended.
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2. NOISE COMPLAINTS INVOLVING CN RAILWAY AND WESTON'S BAKERY- CONT'D
On a motion by Councillor K. Taylor-Harrison,
it was resolved:
"That Legal Department staff initiate discussions with Canadian National Railways (CNR) to
identify solutions to address the concerns of residents in the Victoria Street North and
Filbert Street area relative to noise from the railway line and shunting yard; and further,
That they also raise the issue of noise resulting from the CNR practice of idling engines
near the Kitchener train station."
REQUEST FOR RETRO-ACTIVE TAX CREDIT - 528 LANCASTER STREET WEST
Council was in receipt of correspondence from Ms. Ivanka Nenkov dated September 7, 1998
suggesting that the Lancaster Street property has been overtaxed between 1992 and 1997 on the
basis of a successful assessment appeal in 1998 which saw the assessed value of the property
reduced.
Mr. Dimitri Nenkov was in attendance this date on behalf of his wife, who owns the property at 528
Lancaster Street West, to request that some form of credit be applied against future taxes based
upon the overpayment he estimates at between $10,000.00 and $12,000.00. In response to
questions from Mayor Zehr, Mr. Nenkov confirmed that his 1997 appeal was not heard as it was
filed late and that he began discussion with the assessment office concerning the appraised value
in February of 1998. Mayor Zehr pointed out that property taxes are based solely on assessment
which fluctuates over time. Councillor Galloway also pointed out that property assessment works
four years behind the current year, which may explain the valuation issue. Mr. Nenkov disagreed,
noting that all appraisals conducted since 1992 are at similar dollar values and all are below the
earlier $225,000.00 assessed value.
Mr. Nenkov also referred to a business which has relocated from an Ontario and Charles Street
location to the owner's personal residence which is in direct competition with his wife's business
and is not licenced. He noted that this business is advertised in the Yellow Pages but with no
address, and he is also aware of other businesses run from residences on this basis which he
suggested deprived the City of tax revenue. Mayor Zehr asked that Mr. Nenkov speak with Ms.
Houston after the meeting and provide additional information.
On a motion by Councillor Jake Smola,
it was resolved:
"That no action be taken on the request of Ivanka and Dimitri Nenkov for a retroactive
reduction in the 1992 - 1997 property taxes for 528 Lancaster Street West as a
consequence of a 1998 reduction in the assessed value of the property."
PAWNSHOP LICENCE - 322 KING STREET EAST
The Committee was in receipt of a report from J. Koppeser dated September 21, 1998 in response
to a licence application relative to a proposed pawnshop in the Downtown.
In response to questions, Mrs. Koppeser advised that at present the City has no licenced
pawnshops, though it has a number of buy and sell second hand stores. She advised that at
present there are no City policies to discourage pawnshops, though owners must comply with the
Pawnbrokers Act.
Councillor K. Taylor-Harrison put forward a motion of no action on the request on the basis the
proposed use does not coincide with the Retail Sale Action Plan for the Downtown.
Ms. MacDonald asked that the Legal Department be given time to prepare a report on the City's
position in regard to the legislation before dealing with any recommendation. Councillor Taylor-
Harrison indicted that if there is a deferral to allow for a report, input should also be obtained from
the Downtown Action Team.
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4. PAWNSHOP LICENCE - 322 KING STREET EAST - CONT'D
On a motion by Mayor C. Zehr,
it was resolved:
"That consideration of the application of Mr. Hien Hoang for a Pawnbrokers Licence to
establish a business at 322 King Street West be deferred and referred to the October 26,
1998 Finance and Administration Committee meeting pending receipt of additional reports
from the Legal Department and the Downtown Development Team."
5. FOOD VENDORS ON CITY PROPERTY - OKTOBERFEST
The Committee was in receipt of a report from J. Koppeser dated September 23, 1998 concerning
requests to locate several vendors on City property during the upcoming Oktoberfest celebrations.
On a motion by Councillor B. Vrbanovic,
it was resolved:
"That the following vendors be granted permission to sell food on City property during
Oktoberfest, October 9 to 17, 1998, provided the necessary licence, including Fire and
Health approvals, is obtained: Grain Harvest Breadhouse; Ontario Pork Producers
Marketing Board; Van's Original Belgian Waffles; Four Points Hotel; and, Bagel
Expressions."
6. FUEL AND MAINTENANCE ECONOMIES - CITY BUSES
Ms. Houston gave a presentation on bus operating costs and provided comparisons between the
operating costs for various types of diesel and natural gas buses. She also advised Committee
members that the payback on the City's natural gas fueling station has been revised to reflect an
adjusted bus replacement schedule, removal of Provincial subsidy and station maintenance
expenses. It was noted that staff had initially estimated a six year payback on the station with a
requirement of 42 buses and a Provincial subsidy. This forecast has now been revised to reflect a
10 year payback, a requirement of 72 buses and no Provincial subsidy.
Councillor Weylie reminded the Committee that the initial decision to convert to natural gas buses
was not purely financial but was based on environmental concerns. Councillor Ziegler suggested
that staff attempt to apply a monitary value to the environmental benefits and factor these into the
cost calculations. He also asked that members of Council be provided with the details used by
staff in arriving at the cost comparison figures.
Councillor Jake Smola referred to the conversion to natural gas of recently purchased buses, and
Mr. Gulliver advised that this is no longer financially feasible given the elimination of the Provincial
capital subsidy. He further advised that the cost to convert the 1994 buses to natural gas is
approximately $100,000.00 per unit. Councillor Galloway referred to problems encountered by
other municipalities who purchased natural gas buses from a different supplier, and Mr. Gulliver
advised that the body structure on some of the Iow floor buses are deteriorating prematurely and
staff are investigating. Councillor Jake Smola enquired as to the feasibility of marketing the City's
natural gas fueling station for use by the public, and Mr. Gulliver advised that this had been
considered in the past but a survey suggests that there is no market at this time. Councillor Jake
Smola indicated his concern that the City is not moving fast enough to convert buses to natural
gas, given that it is already incurred the cost of the fueling station, and there appears to be less
resolve in regard to converting older buses.
7. MCLENNAN PARK -WORKING GROUP REPORT
The Committee was in receipt of a report from B. Stanley dated September 23, 1998 containing
various recommendations involving the former Kitchener Landfill Site on Strasburg Road and
future park development.
7. MCLENNAN PARK - WORKING GROUP REPORT - CONT'D
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Moved by Councillor G. Lorentz:
"That the City of Kitchener not pursue the development of the former Kitchener Landfill Site
on Strasburg Road until the 25 year period requiring ministerial approval (Ministry of the
Environment and Energy) has expired in 2003; and,
That in the interim, the Department of Parks & Recreation explore alternative site
development plans with the final plan to be completed and approved by 2002, such site
plans to be brought back to Management Committee for review and approval prior to
consideration by Council; and,
That Kitchener Council set aside $100,000.00 in the 10 year Capital Forecast to retain the
firm of Conestoga Rovers and Associates Limited to provide consulting services to conduct
the necessary due diligence for development of the former Kitchener Landfill Site; and
further,
That through the Legal Department, the City pursue establishment of a formal agreement
with the Region of Waterloo to undertake development of the former Kitchener Landfill Site
after the year 2003."
Councillor Galloway noted that this is the first time he was informed of the 25 year limit on
development, and noted correspondence from the Region which suggests the City's consultant
has interpreted the legislation incorrectly. Mr. Stanley replied that staff have not discussed the
requirement directly with the Ministry; however, it is their understanding that if development
proceeds after 2003 then due diligence is not the approval of the Ministry; however, if
development is prior to 2003 Ministerial approval is required and the resulting consultant and
study costs will increase by between $100,000.00 and $300,000.00.
The motion by Councillor G. Lorentz regarding development of the Kitchener Landfill Site was
voted on and Carried. Councillor T. Galloway asked to be recorded as opposed to the motion.
8. POLICY - TRACKING OF CORPORATE STUDIES/RESEARCH
The Committee was in receipt of a report from G. Sosnoski dated September 22, 1998 requesting
that Council adopt the draft policy in partial fulfillment of Corporate Objective 7.4 (Phase 1).
Councillor Vrbanovic enquired as to the possibility of access by members of Council to the
information on corporate studies and research which would be input into the electronic library
cataloguing software and Mr. Sosnoski agreed to investigate and advise.
9. CITY FEES
Councillor John Smola referred to his request during 1998 budget deliberations for a
comprehensive report on the fees charged to the public by various City departments. He asked
that a report in this regard be submitted prior to 1999 budget deliberations outlining the fees and
the rationale for each.
On a motion by Councillor John Smola,
it was resolved:
"That prior to the 1999 budget process, staff prepare a comprehensive report on all fees
charged by City departments, and outlining the rationale for the fee and whether it results in
a profit or is based solely on cost recovery; and further,
That staff advise by the October 26, 1998 Finance and Administration Committee meeting
of the date the report will be available."
10. MOUNTAIN BIKE RACE COMPETITION - ZIGGY'S CYCLING CLUB
The Committee was in receipt of a report and recommendation from J. Koppeser dated September
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11.
12.
13.
14.
24, 1998 in response to a request for permission to erect a tent and sell food during the October
11 competition.
On a motion by Mayor C. Zehr,
it was resolved:
"That Ziggy's Cycling Club be granted permission to operate a Fest Tent and sell food
during the Mountain Bike Race on October 11, 1998 on the property adjacent to Homer
Watson Park, Wilson Avenue, Kitchener, provided the necessary licence and building
permit are obtained, including the signatures of Fire and Health."
WATERLOO REGION MUNICIPALITIES INSURANCE POOL
The Committee was in receipt of a quarterly information report to August 31, 1998 prepared by Ms.
N. Chambers and Mr. C. Smith, Risk Managers for the Pool.
Councillor Ziegler indicated he was interested in seeing figures on the quarterly experience of the
Pool, and Ms. Houston advised that the initial report deals mainly with establishing administrative
structure, but data on experience will be included in the next report. Councillor Galloway asked
that staff advise as to what has happened to municipal insurance premiums across the Province
since the Insurance Pool was established and asked that this be included in the next quarterly
report.
OTHER BUSINESS
Councillor Jake Smola advised that in regard to the review of the Regional Airport, consensus has
been obtained at the Committee level to restrict flights over Runway 07 between 11:00 p.m. and
6:00 a.m. Aircraft noise during the night has been the subject of complaints in the past. Councillor
Smola further advised that to date the group is approximately 1/4 of the way through the review
process.
NEXT MEETING
The next regularly scheduled meeting of the Finance and Administration Committee will be held on
Monday, October 26, 1998.
ADJOURNMENT
On motion, the meeting adjourned at 12:25 p.m.
G. Sosnoski
Manager of Corporate Records
and Assistant City Clerk