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PUBLIC WORKS & TRANSPORTATION COMMITTEE MINUTES
APRIL 7, 1997
CITY OF KITCHENER
The Public Works and Transportation Committee met this date under the Chairmanship of Councillor
John Smola, with all members present, except Councillor M. Wagner. Councillor Jake Smola was in
attendance for part of the meeting.
Others Present:
Ms. P. Houston, Ms. L. Pasternak and Messrs. J. Gazzola, E. Kovacs, K.
Bowman, S. Gyorffy, J. O'Rourke, O. den Ouden, D. Mansell, T. McCabe and L.F.
Parkhouse.
This meeting of the Public Works and Transportation Committee commenced at 8:40 a.m.
1. DRAINAGE PROBLEMS - ROLLING MEADOWS DRIVE
At a meeting of the Public Works and Transportation Committee held on September 9, 1996, staff
were requested to review previous flooding incidents on Rolling Meadows Drive and to come up
with recommendations as to how this flooding may be overcome in the future.
The Committee considered a report containing several recommendations for design improvements
with price tags of between $1.4 million and $3.6 million dollars. The Committee was advised that,
due to the costs involved, it is being recommended that $25,000.00 be spent at this time to rebuild
the underground piping at
present time, there is a
waterflow performance of
expensive alternatives will
the intersection of Rolling Meadows Drive and Westheights Drive. At the
sharp turn in the existing piping and reconstruction will improve the
the system. It was noted, however, that this alternative nor any of the
guarantee that flooding will not occur again in this area.
When questioned by Councillor K. Redman, it was noted that the funds for this project will be taken
from an account which is used for this type of repair and no other works will be deferred because of
the recommended solution to the Rolling Meadows Drive problem.
On motion by Councillor G. Lorentz -
it was resolved:
"That improvements to the drainage system at the intersection of Rolling Meadows Drive and
Westheights Drive be undertaken in 1997, and further,
That the estimated $25,000.00 cost of these improvements be financed from the 1997
Operating Budget Index 822650 (Replace/Repair/Maintain - Storm Drains)."
2. NATURAL GAS RATES
The Committee considered a report which recommends that existing natural gas rates be modified
to take into account rate increases which have been approved for Union Gas by the Ontario Energy
Board. The increase will add approximately $4.3 million dollars to Kitchener Utilities wholesale
purchase costs for 1997 and result in an annual increase of approximately $37.00 for the typical
residential customer.
Councillor J. Ziegler noted that the increase to Kitchener customers is scheduled to become
effective March 1, 1997, and questioned whether or not this could be delayed to April 1, 1997. Staff
confirmed that delaying the rate increase to April 1, 1997 was possible but it would mean that
approximately $360,000.00 would have to be applied against the Utility profit for 1997.
Mr. J. Gazzola pointed out that, in the past, the City of Kitchener has implemented price increases
at the time they are passed on by Union Gas. Any price increase passed on by Union Gas must be
approved by the Ontario Energy Board.
When questioned by Councillor G. Lorentz, Mr. E. Kovacs pointed out that it is difficult to explain in
words the various pricing policies for natural gas but they include costs for such things as the gas
commodity and its transportation. The rate increase being recommended at this time is because of
an increase in the price of gas. Mr. Kovacs also confirmed to the Committee that whenever price
increases are approved by the Ontario Energy Board and passed on to the Gas Utility, the Public
Works and Transportation Committee is advised and asked to approve a rate
PUBLIC WORKS & TRANSPORTATION COMMITTEE MINUTES
APRIL 7, 1997 - 17 -
CITY OF KITCHENER
2. NATURAL GAS RATES (CONT'D)
increase or decrease as the case may be. Mr. Kovacs did suggest to the Committee, however, that
the de-regulation of the natural gas industry has resulted in this commodity being subjected more
and more to the principles of supply and demand. As a result, it is likely that more price increases
will be implemented in the future.
When questioned by the Committee, it was noted that even with the present price increase, gas is
still the cheapest form of energy by far.
Councillor Jake Smola entered the meeting at this time.
Following further discussion regarding the proposed implementation date, and on motion by
Councillor J. Ziegler, it was resolved:
"That, effective April 1, 1997, natural gas rates be modified in accordance with the report
presented to the Public Works and Transportation Committee on April 7, 1997."
3. TRANSIT BRAINSTORMING RESULTS
The Committee received a report indicating that, as a result of the Transit Brainstorming Sessions,
immediate savings of approximately $174,000.00 have been identified which can be implemented
without impacting the present level of transit service. It was noted that early this year it was
confirmed that there would be a shortfall of annualized revenues for public transit of approximately
$900,000.00. The projected shortfall is the result of subsidy reductions from the Province and a
change in the transit service contract with the City of Waterloo.
Mr. E. Kovacs advised the Committee that a copy of the Hussey Report will be circulated to all
members of Council. This report was developed by Mr. Wayne Hussey following the brainstorming
sessions.
On motion by Councillor J. Ziegler -
it was resolved:
"That the General Manager of Public Works be authorized to implement all potential savings
that are neutral to impacts upon the level of service for the Transit Division, resulting from staff
brainstorming efforts, immediately upon concluding financial audits, and further,
That the savings be incorporated into the next update of the 'Transit Fiscal Control Plan'."
4. SPRING CLEAN-UP
The Committee received a report summarizing the nature and extent of Spring clean-up operations
which are underway throughout the City.
5. REGIONAL REVIEW - STUDY OF SEWER AND WATER SERVICE
The Committee received an update from Mr. J. Gazzola regarding the Regional review of Sewer
and Water Services. It was noted that the accounting firm of Deloitte and Touche was the only
consulting firm to submit a proposal for this study and Mr. Gazzola expressed reservation, in that,
this firm is also the external auditor for the Regional Municipality of Waterloo.
Mr. T. McCabe, General Manager of Planning and Development, indicated that the local
Homebuilders Liaison Committee would like the opportunity to provide input regarding the possible
transfer of sewer and water services from the local to Regional level of government.
Mr. McCabe presented a verbal report in which he pointed out that the City of Kitchener has a 25
year history in growth management undertaken through the use of the Staging of Development
Report and its integration with the Capital Budget. It is questionable whether or not the Region will
have sufficient staff resources to provide the same level of service. Mr. McCabe also indicated that
there are concerns from a customer service and financial implication point of view.
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CITY OF KITCHENER
5. REGIONAL REVIEW - STUDY OF SEWER AND WATER SERVICE (CONT'D)
There is concern that Kitchener could wind up competing with other area municipalities for Regional
staff resources in order for development within the municipality to proceed.
Mr. McCabe was requested to summarize his presentation in a written report which will be available
for members of Council to use during Regional discussions regarding sewer and water services.
His Worship Mayor R. Christy advised that he and Mr. Gazzola had attended a meeting on April 4,
1997, at which time the financial impacts of disentanglement and other issues were discussed.
Mayor Christy indicated that he will be providing each member of Council with a written report
regarding the discussions which took place at this meeting.
Councillor K. Redman expressed the hope that a power struggle is not developing but rather that
serious consideration will be given to which level of government can best provide a particular
service. It was suggested that recently a bottom line mentality has become more prevalent but if
this mentality adversely affects planning and/or other significant issues, then the appropriateness of
such a process must be seriously evaluated.
Mr. J. Gazzola suggested to the Committee that, when a particular function is to be transferred from
one level of government to another, one must not only look at the financial impacts but must also
consider accountability. If some dollars are going to be saved but there is a total loss of
accountability, then one must question whether or not the proposed transfer is the proper way to go.
Mayor Christy advised the Committee that, at the meeting which he and Mr. Gazzola attended, it
was stressed that there is an obligation to ensure that, at the end of the day, there are workable
urban centres and, in this regard, it is necessary to build on existing strengths and make changes
where they are appropriate and/or necessary.
It was agreed that reports from Mayor Christy and Mr. McCabe would be submitted to all members
of Council prior to further discussions regarding the study of sewer and water services at the
Regional level.
6. ADJOURNMENT
On motion, the meeting adjourned at 9:45 a.m.
L.F. Parkhouse, AMCT
Deputy City Clerk