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HomeMy WebLinkAboutFinance & Admin - 1998-11-30 SFAC\1998-11-30-SPE NOVEMBER 30, 1998 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date commencing at 3:15 p.m. and Chaired by Councillor J. Ziegler with the following members present: Mayor C. Zehr, Councillors T. Galloway, John Smola, Jake Smola, J. Haalboom, G. Lorentz and C. Weylie. Councillors K. Taylor-Harrison, M. Yantzi and B. Vrbanovic were in attendance for part of the meeting. Others present: Ms. P. Houston, Ms. G. Luciantonio, Mrs. J. Koppeser, Messrs. J. Gazzola, R. W. Pritchard, L. F. Parkhouse, T. McCabe, J. Shivas, T. Clancy, E. Kovacs, J. Hancock and G. Sosnoski. The purpose of this special meeting was to consider the Comprehensive Fee Review document dated November 30, 1998 outlining the fees charged to the public by each of the City departments and the proposed 1999 fee increases. 1. COMPREHENSIVE FEE REVIEW AND PROPOSED 1999 FEES Ms. Houston introduced the fee review, noting that fees have traditionally been established through comparisons with other municipalities, reference to market rates, cost recovery and the implementation of rates legislated by the Province. She referred to a pilot project in the Parks and Recreation Department which includes an examination of the philosophy behind user fees, the results of which will not be available in time to impact the 1999 fees. Ms. Houston noted that the pro forma guideline of a 2 per cent fee increase, excluding Transit fees, will result in an additional $266,000.00 in revenue which is currently budgeted. She noted that a 2 per cent increase in Transit fees will yield a further $102,000.00 in revenue. Ms. Houston advised that it is staffs expectation that Council would approve the 1999 fees independently of the 1999 budget review process. The proposed fees and fee rationales were then reviewed on a department by department basis beginning with the Business and Planning Services Department. Councillor Lorentz spoke in favour of increased computer access to the text of various publications created by the City, and referred to Secondary and Community Plans and documents in the City Clerk's Division as possible candidates. Mr. Gazzola responded that to date, staff have done a tremendous job on the City's web site with limited resources, noting that it is important to keep the data which is already on the site up to date. He pointed out that staff are committed to progress in this area and that the Communications Officer is involved. Councillor Galloway inquired whether the development industry has expressed any concerns over new or increased planning fees. Mr. McCabe replied that the proposed increases in the portable sign fee and the grading certificate fee will likely generate concerns; however, overall there are no issues in regard to the planning review items. Councillor John Smola questioned why some of the planning items are cost recovered at 100 per cent and others less. Mr. McCabe replied that cost recovery in excess of 40 to 50 per cent leads to questions concerning what percentage of this cost should be absorbed through taxes by all ratepayers and what percentage directly benefits the development industry alone. He expressed concern that a 100 per cent cost recovery may negatively impact small subdivisions and homeowner charges. Councillor Weylie enquired as to the current value of the Mediation Trust Fund and how it is used. Mr. McCabe replied that presently there is approximately $15,000.00 in the Fund, but that none of this money has been used since its inception approximately two years ago. He noted that one large mediation could use this entire amount. Councillor J. Haalboom referred to the schedule of charges for documents produced by the Business and Planning Services Department. She indicated a willingness to put forward a motion specifically directing that staff reduce the price of the Upper Doon Heritage Conservation District Plan by $5.00 and review the charges for all other documents. Mayor Zehr suggested that such direction amounts to micromanaging of staff, and that Council should not involve itself in this level of activity. Councillor Jake Smola suggested that homebuilders be responsible for obtaining a final grading certificate and that a deposit in this regard may be appropriate. He referred to instances in his Ward where grading certificates have not been issued seven years after construction has been completed. Mr. McCabe advised that the matter has been referred to the new Subdivision FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 30 1998 - 143- CITY OF KITCHENER 1. COMPREHENSIVE FEE REVIEW AND PROPOSED 1999 FEES -CONT'D Review Committee for consideration. Councillor Ziegler noted that in several instances there were substantial increases in Planning fees in 1998 and suggested that in the interests of good public relations, it may be appropriate to not raise these fees further in the following year. Mr. McCabe advised that this was his position at Management Committee, and that he would prefer to increase fees from time to time in larger amounts than to implement small annual increases on a regular basis. Councillors M. Yantzi and K. Taylor-Harrison entered the meeting at this time. Mayor Zehr put forward a motion which was not voted on and which would implement a one year hiatus in regard to fees which have been increased significantly in the preceding year, where these fees are substantially at cost recovery levels. Fees which are substantially below cost recovery levels, such as site plan approvals, would continue to be increased until they reach a reasonable cost recovery level. Councillor John Smola pointed out that were the City to increase all of its fees by four rather than two percent this would raise additional revenues of approximately $300,000.00. Mr. McCabe suggested that all of the 1999 fees of the Business and Planning Services Department before the Committee this date should be implemented with the possible exception of the fee increase for portable signs. The Committee then reviewed the proposed fees for the Corporate Services and City Clerk's Department. Mr. Pritchard referred to the substantial increase in Committee of Adjustment fees resulting from recent Provincial legislation relative to advertising. He also noted that the consent fees and combined consent and minor variance fees listed on Page 6 should each be increased by $10.00 to reflect the mediation surcharge. Councillor Lorentz questioned the licence fee for Places of Refreshment, and noted a proposed increase from $50.00 to $100.00 and the fact that the City of Waterloo doesn't charge at all. Mrs. Koppeser responded that Waterloo has now reached the population size where they are able to licence themselves rather than though the Police Services Board and discussions in regard to appropriate licence fees are underway. She further noted that the fee reflects administrative, inspection and approval costs and is based on an average for all Places of Refreshment. She added that licensing these premises results in the City providing a list to the Regional Health Unit which is used by them to conduct health inspections. Councillor Galloway referred to the number of licensed activities and asked whether Council has a choice in this regard. Mrs. Koppeser replied that most are discretionary with the exception of Pawnbroker's Licences, and that some are licensed for health and safety reasons. Councillor Lorentz indicated that he would not support a $50.00 increase in the Places of Refreshment licence and Mayor Zehr reminded him that a by-law enacted in 1997 provided for a phased increase from $50.00 to $150.00 over the subsequent three year period. Councillor Lorentz suggested that it may be appropriate to realign the licensing categories so that very small refreshment operators are treated differently from larger operations such as Bingemans. Councillor Vrbanovic entered the meeting at this time. Councillor G. Lorentz put forward a motion of no increase to the Places of Refreshment Licence and a recorded voted was requested. 1. COMPREHENSIVE FEE REVIEW AND PROPOSED 1999 FEES -CONT'D FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 30 1998 - 144- CITY OF KITCHENER On a motion by Councillor G. Lorentz, it was resolved: "That the 1999 fee for places of refreshment remain at $50.00 and that the appropriate licensing by-law be amended accordingly." In Favour: Mayor C. Zehr, Councillors K. Taylor- Harrison, J. Haalboom, J. Ziegler, T. Galloway, G. Lorentz, B. Vrbanovic and C. Weylie Contra: Councillors J. Haalboom, J. Smola, M. Yantzi and Jake Smola The Committee then reviewed fees for the Finance, Fire and Legal Departments. Councillor Jake Smola questioned why a fee was not listed by the Fire Department concerning the use by the City of Waterloo of a special vehicle. Mr. Gazzola indicated that this issue would be brought back to Council at a future date. Mr. Shivas advised that the fees for the Legal Department include new fees which were originally proposed in 1998, but not implemented by Council. He noted that in several instances there are now only charges for external costs such as registering agreements, and the proposed increases reflect an additional recovery of internal staff costs. He advised that he has suggesting these fees somewhat reluctantly as developers are already paying legal advisors, and this arrangement could call into question whether City legal staff are representing the interests of Council or developers. Mr. Shivas also indicated that he would not be in favour of increasing these fees further. Discussion took place concerning the proposed fee for subdivision agreements and Mr. Shivas noted that other municipalities charge in this regard for the work of in-house counsel. Mayor Zehr indicated that if the intent of the charge is to make the process more administratively expedient then he would not support a fee; however, if the fee is for work which a developer would otherwise pay external counsel to do then the fee is valid. Mr. Gazzola noted that Management Committee felt the charges proposed by the Legal Department are appropriate, and that the amounts put forward are in the way of a compromise. Mayor Zehr asked whether in accordance with the previous Council resolution, the affected parties had been consulted concerning the proposed new fees, and Mr. Shivas answered that they had not. Moved by Mayor C. Zehr. "That consideration of the proposed new fees for the Legal Department be deferred at this time with a possible implementation date of July 1, 1998; and further, That prior to any final decision on implementing such fees on the above date, staff discuss these with the affected parties and report on the outcome." Councillor Haalboom indicated her support for the proposed legal fees and suggested that the development industry should recognize the public cost of development. Councillor Vrbanovic questioned the proposed fee for road closures as a decision to close a road is often made to eliminate costs. Mr. Shivas replied that significant internal costs in terms of legal staff time are involved. Mr. Gazzola pointed out that both the City and the purchaser benefit from road closures and as a result the costs should be shared. The previous motion by Mayor C. Zehr concerning deferral of the legal fees was then voted on and Carried. Councillor Ziegler suggested that discussion of the proposed 1999 fees continue at the December 7, 1998 Finance and Administration Committee meeting. Mr. Clancy asked that Council consider the proposed Cemetery rates this date as a filing process with the Province COMPREHENSIVE FEE REVIEW AND PROPOSED 1999 FEES -CONT'D is required prior to January 1, 1999 implementation. FINANCE & ADMINISTRATION COMMITTEE MINUTES NOVEMBER 30 1998 - 145- CITY OF KITCHENER Councillor Vrbanovic referred to his concerns with the pricing for flush markers and flower containers. Concerns were also raised in regard to the rate for Sunday burials, particularly as it affects individuals whose religious beliefs often require a Sunday burial. On a motion by Councillor B. Vrbanovic, it was resolved: "That the 1999 Cemetery Tariff of Charges, as outlined in the "Comprehensive Fee Review" document dated November 30, 1998 as considered by the Finance and Administration Committee on that date be approved , subject to the charges for flush markers greater than 288 square inches and for flower containers not exceeding 15% over the 1998 fee; and, That staff forward the Tariff of Charges to the Cemeteries Regulations Branch of the Ministry of Consumer and Commercial Relations for filing in order that the proposed fees become effective on January 1, 1999; and further, That staff further examine the issue of charges for Sunday burials where these are required on religious grounds and report back to Council at a later date." 2. ADJOURNMENT On motion, the meeting adjourned at 5:10 p.m. G. Sosnoski Manager of Corporate Records and Assistant City Clerk