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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 FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 28, 1998 -117- CITY OF KITCHENER 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. FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 28, 1998 - 118 - CITY OF KITCHENER 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. FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 28, 1998 -119- CITY OF KITCHENER 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 FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 28, 1998 - 120 - CITY OF KITCHENER 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 FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 28, 1998 - 121 - CITY OF KITCHENER 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