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HomeMy WebLinkAboutFinance & Corp - 2004-10-18FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 18, 2004 CITY OF KITCHENER CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 1:0 p.m. Present: Chair - Councillor B. Vrbanovic Mayor C. Zehr and Councillors C. Weylie, J. Smola, G. Lorentz and M. Galloway. Staff: C. Ladd, Chief Administrator Officer R. Browning, Office of the CAO F. Pizzuto, General Manager, Downtown Development P. Houston, General Manager, Financial Services & City Treasurer R. Pitfield, Director of Corporate Communications and Marketing D. Paterson, Director of Human Resources R. Gosse, Director of Legislated Services D. Quinn, Director of Utilities S. de Moree, Assistant City Solicitor T. Boutilier, Senior Planner J. Koppeser, Manager of Licensing C. Wilson, Performance Measurement and Internal Auditor G. Richardson, Manager of Downtown Planning D. Gilchrist, Committee Administrator CRPS-04-185 PUBLIC MEETING - NEW LICENSING BY-LAWS FOR: BOWLING ALLEYS, BILLIARD PALOURS, PLACE OF AMUSEMENT, SNOW DUMP SITE, FLYER SAMPLE DISTRIBUTOR, PAWN BROKER, LODGING HOUSE, OLD GOLD, PLUMBER, ELECTRICIAN, DRAIN LAYER AND THEATRE. The Committee was in receipt of Corporate Services Department report CRPS-04-185, dated October 13, 2004, attached to which are draft copies of a number of Business Licensing By- laws. It is noted in the report that these by-laws are before the Committee this date for discussion only. Further, this meeting is the public meeting required under Municipal Act, 2001, and a notice of this public meeting was advertised in The Record on October 8, 2004. Ms. J. Koppeser introduced the report noting this is the next in the series of public meeting to be held in conjunction with the changes to be made to Business Licensing By-laws, the last meeting to be held December 6, 2004. The by-laws are to be changed pursuant to the Municipal Act, 2001, which requires licensing fees to be established on a cost recovery basis, and the fees before the Committee this date have been calculated at 100% cost recovery. Councillor Vrbanovic noted the licence fee for pawnbrokers is to be reduced. has advised this by-law is enforced by the Waterloo Regional Police, consequently, the enforcement costs cannot be included in the licence fee. Ms. Koppeser not City staff; Mr. T. Ferguson addressed the Committee with respect to the proposed increase in fees for licensing lodging houses, to which he objects. He noted an increase in licence fees will require an increase in rent, and his tenants cannot afford this increase. A brief discussion took place with respect to Provincial regulations concerning rent increases. Mr. H. Cho addressed the Committee in opposition to the increase in lodging house licensing fees, being close to 500% increase. Ms. Koppeser explained that Lodging House licence fees have never been based on cost recovery. The factors affecting this fee include fire inspection, property standards inspection, notification and enforcement costs. Annual inspections are conducted by the Fire Department staff and the Property Standards staff, and enforcement inspections are made as required. The proposed licensing fee includes the minimum fee charged by Fire and Property Standards staff. If more than the minimum one half hour of time is required for these inspections, there is no additional charge. Further, the cost of enforcement is an average of enforcement costs over the last five years. When questioned by the Committee, Ms. Koppeser advised the City of Waterloo has not yet established their Lodging House License Fee, and their fee will depend on who does their inspections. OCTOBER 187 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 135 - CITY OF KITCHENER 1. CRPS-04-185 - PUBLIC MEETING - NEW LICENSING BY-LAWS FOR: BOWLING ALLEYS, BILLIARD PALOURS, PLACE OF AMUSEMENT, SNOW DUMP SITE, FLYER SAMPLE DISTRIBUTOR, PAWN BROKER, LODGING HOUSE, OLD GOLD, PLUMBER, ELECTRICIAN, DRAIN LAYER AND THEATRE (CONT'D) Mr. G. Soomal questioned the Committee as to whether licensing fees for lodging houses can vary depending on the number of rooms. He also commented on the fact that there was a time when no licensing fee was charged for lodging houses in the City of Kitchener, and questioned how the City covered its costs at that time. Ms. Koppeser responded that the regulations set down by the Province require license fees to be set by class of licence, and not based on the revenue achieved by business owners. Further, she advised there was a time when the City of Kitchener did not license lodging houses, so no fees were charged and no expenses were incurred. The Committee was again advised that they will be asked to recommend the adoption of new Licensing By-laws at its December 6, 2004 meeting. CRPS-04-180 2005 COUNCIL AND STANDING COMMITTEE SCHEDULE ADDENDUM REPORT TO CRPS-04-171 The Committee was in receipt of Corporate Services Department report CRPS-04-180, dated October 7, 2004, attached to which are three options for the schedule of Standing Committee and Council meetings for the year 2005. This report is an addendum to Corporate Services Department report CRPS-04-171, considered by this Committee September 27, 2004, and consideration of this Committee's recommendation was deferred at the Council meeting of October 4, 2004. Mr. Gosse noted that part of the difficulty in scheduling meetings in 2005 is the fact that the AMO conference has been brought forward by one week this year. On motion by Councillor G. Lorentz- it was resolved: "That the 2005 Schedule of Council and Standing Committee meetings be established based on Option No. 1 attached to Corporate Services Department report CRPS-04-180." SSD-04-038 AMENDMENTS TO COUNCIL POLICY 11-250 - RETIREMENT POLICY The Committee was in receipt of Strategic Services Department report SSD-04-038, dated October 12, 2004, recommending the removal of the mandatory retirement provision for the City's 9,000 series employees. On motion by Councillor M. Galloway - it was resolved: "That the amendments to Council Policy 11-250, Retirement, as outlined in Strategic Services Department report SSD-04-038, be approved." SSD-04-039 AMENDMENT TO COUNCIL POLICY 11-110 - ELECTRONIC MAIL The Committee was in receipt of Strategic Services Department report SSD-04-039, dated October 12, 2004, recommending an amendment to Council Policy I1-110 - Electronic Mail, to prevent staff from using the City's email to promote special events and buying and selling goods and services. On motion by Councillor J. Smola- it was resolved: "That the amendments to Council Policy I1-110, Electronic Mail, as outlined in Strategic Services Department report SSD-04-039, be approved." OCTOBER 187 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 136 - CITY OF KITCHENER PERFORMANCE MEASUREMENT- POWERPOINT PRESENTATION Ms. Corina Wilson, Performance Measurement and Internal Audit, was in attendance to give a PowerPoint presentation on Performance Measurement. Through the presentation the Committee was advised that Performance Measurement is a set of indicators that highlight whether we are: meeting our goals, help making decisions to meet or exceed objectives, helps to advocate for program spending, and assists with budget and resource allocation. Performance Measurement also has limitations: identifies successes and problems but does not identify needed actions; identifies results but not why those particular results are achieved; does not identify whether results being pursued are the right ones. The presentation concluded with an implementation plan, consisting of two Phases: Phase I includes Human Resources, Legal, Turf Management and the Business Enterprise Centre. Discussions on Phase I are in process and will be implemented in January 2005. Phase II will take place from June 2005 to June 2007, and all other programs of the City of Kitchener will be reviewed during this time period. The outcome of this process will help the City's administration to: measure its actions, highlight areas for investigation, make informed and timely decisions, and to be accountable to Council and residents. Councillor Galloway questioned whether Ms. Wilson's work will be primarily financial, and was advised that her work will be an even mix of financial and non-financial. The results will include: financial, customer satisfaction, and strategic. Councillor Galloway stated his understanding that hers would be a solid financial audit function. Ms. Wilson advised she is a CMA, and will be undertaking a financial audit. Councillor Galloway then questioned whether there have been solid comments on how the audit function will be communicated to Council. Ms. Houston responded that staff have envisaged a report to the CAO, and has also considered an Audit Committee. In response to a question from Mayor Zehr about responsibility to Council and residents, Ms. Wilson responded that she will report to this Committee on a periodic basis, and at the end of the process will be able to publicly disclose how the administration is doing. Upon further questioning, Ms. Wilson advised this process will allow for the identification of redundant services. DTS-04-154 RE-URBANIZATION MARKET ANALYSIS REQUEST FOR CAPITAL FUNDING IN 2004 The Committee was in receipt of Development and Technical Services Department report DTS-04-154, dated October 7, 2004, recommending the City support the partnership between the Region, the Cities of Kitchener, Waterloo and Cambridge, and the Home Builders Association, known as the Municipal and Home Builders Reurbanization Working Group. Further, the report advises the working group's propose to undertake a market analysis, related to the Region's New Growth Management Strategy, to determine customer preferences. In this regard, a recommendation that the City contribute $10,000 from the 2004 Capital Contingency, toward the cost of this market analysis, is included in the report. Mr. T. Boutilier was in attendance, and responded to questions from the Committee that the Home Builders Association does not have a great appreciation for what customers want in the way of in-fill development. He advised that each municipality is being request to contribute $10,000 toward the cost of the study. Further, the Home Builders Association is not contributing to the cost, as it is the municipalities who are forcing this direction. On motion by Mayor C. Zehr - it was resolved: "That the City of Kitchener support the partnership between the Region of Waterloo, the Cities of Kitchener, Cambridge and Waterloo, and the Waterloo Regional Homebuilders Association, known as the Municipal and Homebuilders Re-Urbanization Working Group, and $10,000 be allocated from the 2004 Capital Contingency Account as the City of Kitchener contribution toward the cost of the Re-urbanization Market Analysis." OCTOBER 187 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 137 - CITY OF KITCHENER 7. FIN-04-042 NATURAL GAS RATES FOR SYSTEM GAS CUSTOMERS The Committee was in receipt of Financial Services Department report FIN-04-042, dated October 13, 2004, recommending the supply and transportation component for system gas customers remain as they are now, until March 31,2005. A discussion took place with respect to notifying the public, and Mr. Quinn advised there will be two adds placed in the newspaper over the next two Saturdays, as well as banners on envelopes and inserts on Utility bills. Mr. Quinn made it clear to the Committee that the action recommended in the Staff report will not jeopardize the Utility in any way. Councillor Vrbanovic calculated there will be approximately $100 in savings per household this winter achieved through this action. He then thanked Kitchener Utility Staff for their excellent work. On motion by Councillor C. Weylie - it was resolved: "That the supply and transportation components of the Natural Gas Rates for system gas customers of the City of Kitchener remain at current levels until March 31,2005." FIN-04-043 KITCHENER UTILITIES PROGRAMS ACCOUNTING PRACTICES The Committee was in receipt of Financial Services Department report FIN-04-043, dated October 13, 2004, attached to which is a report titled "City of Kitchener - Gas Works - Financial Reporting", prepared by Ernst and Young. This Financial Services Department report recommends approval of accounting practices as set out in their report and in the Ernst and Young report, in light of the actions of the Ontario Energy Board to solicit responses from the natural gas market state holders on policy alternatives. Mr. D. Quinn was in attendance to explain the report and answer any questions the Committee might have in this regard. He advised the Committee that the City of Kitchener was successful, before the Ontario Energy Board, and being permitted to regulate our own Utility. The Utility has worked with Ernst and Young to develop proper accounting policies, and Kitchener Utilities can now assure the Ontario Energy Board that we are operating on a level playing field with private utilities. On motion by Mayor C. Zehr - it was resolved: "That the City of Kitchener hereby recognizes Kitchener Utilities use of the practices set out in Financial Services Department report FIN-04-043 and the Ernest & Young Report titled 'City of Kitchener - Gasworks Financial Reporting' and adopts such practices as the approved policies of the City's gas enterprise." SSD-04-037 DOWNTOWN STRATEGIC PLAN VOLUME III THE IMPLEMENTATION PLAN The Committee was in receipt of Strategic Services Department report SSD-04-037, dated October 6, 2004, with respect to the Downtown Strategic Plan Volume III (The Implementation Plan), being the third in a series of Strategic Plans for Downtown Kitchener. Mr. R. Browning introduced the report and thanked Mr. Richardson for attending this meeting, as he has left the City's employ to take up a position in Cambridge, England. Mr. Richardson reviewed the Implementation Plan with the aid of a PowerPoint presentation. He acknowledged the project team, being Mr. C. Bluhm, Mr. L. Bensason, Mr. M. Schreiter, KDBA and himself. Mr. Richardson then reviewed each of the 63 points in the Implementation Plan. OCTOBER 187 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 138 - CITY OF KITCHENER 9. SSD-04-037 10. 11. DOWNTOWN STRATEGIC PLAN VOLUME III THE IMPLEMENTATION PLAN (CONT'D) He noted the Implementation Plan has focussed on several critical areas: Downtown districts, urban design, neighbourhoods and communities, culture, housing and business and investment. The Implementation Plan concludes that to create a successful Downtown the future will require: dedicated public sector leadership; a focus on bringing education and creating a centre for learning; a focus on opportunities in niche areas which differentiate Downtown from other places; and strategic partnerships and targeted investment in key areas. Once this Implementation Plan has been adopted by Council, the next steps will be to prepare and implement work plans; establishment of timelines, budgets, and project team; and the development of a communications plan. Mayor Zehr congratulated the Waterloo Catholic District School Board on being the first to decide to bring their offices Downtown. A brief discussion took place with respect to Civic Square, and it was Mr. Richardson's position that as existing uses move from this area, every attempt should be may to have the uses in this area remain "Civic" with some flexibility. The Committee wished Mr. Richardson well in his new position and thanked him for his excellent service to the City of Kitchener. 2003 FINANCIAL AUDIT Councillor Galloway commented on the fact that Financial Services staff have responded to the Auditors Management Letter; however, the response has not been made publicly. Ms. Houston commented that past practice has been for the City's Chief Financial Officer to report to Council on those items contained in the Management Letter. She stated with the change in emphasis on public scrutiny, most municipalities have established Audit Committees for this purpose. She advised some research in this regard is being undertaken at this time, and a report in this regard will be presented to this Committee in November. Councillor Galloway stated the staff response to the Management Letter should be transparent, from a public point of view. He also requested that at least one member, if not all members of Council should be able to participate on the proposed Audit Committee. Councillor Vrbanovic suggested staff look at the Audit Compliance Committee of Wilfrid Laurier University, as an example. ADJOURNMENT On motion, the meeting adjourned at 3:15 p.m. Dianne Gilchrist Committee Administrator