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HomeMy WebLinkAboutCouncil Minutes - 2024-05-13 S�:T,,,,IE�I' � Special Council Meeting Minutes May 13, 2024, 5:00 p.m. Council Chambers - Hybrid City of Kitchener 200 King Street W, Kitchener, ON N2G 4G7 Present: Mayor B. Vrbanovic Councillor S. Davey Councillor D. Schnider Councillor J. Deneault Councillor C. Michaud Councillor A. Owodunni Councillor P. Singh Councillor B. loannidis Councillor M. Johnston Councillor D. Chapman Councillor S. Stretch Staff: D. Chapman, Chief Administrative Officer M. May, General Manager, Community Services and Deputy Chief Administrator J. Readman, General Manager, Development Services J. Lautenbach, Chief Financial Officer, Financial Services C. Bluhm, Executive Director, Economic Development J. Dueck, Director, Culture & Entertainment A. Hallam, Manager, Arts & Creative Industries D. Saunderson, Manager, Council & Committee Services/Deputy Clerk M. Blake, Committee Administrator 1 1. Commencement A meeting of City Council was held at 4:54 p.m. this date, chaired by Mayor B. Vrbanovic. Notice of this meeting had been previously given to all members of Council by the City Clerk pursuant to Chapter 25 (Council Procedure) of the Municipal Code. The meeting began with a Land Acknowledgement given by the Mayor. 2. Disclosure of Pecuniary Interest and the General Nature Thereof None. 3. Staff Reports 3.1 Interim Support for THEMUSEUM, DSD -2024-229 Council considered Development Services Department report DSD -2024-229, dated May 9, 2024, entitled Interim Support for THEMUSEUM recommending entering into an agreement with THEMUSEUM for up to $300,000. in grant funding to support their cash-flow operation needs until October 31, 2024, which will allow THEMUSEUM an opportunity to review the existing operational model and stay open. Cory Bluhm, Executive Director, Economic Development, provided a brief summary of the report. Andrea Hallam, Manager, Arts & Creative Industries and Jeremy Dueck, Director Culture & Entertainment were also in attendance to respond to questions from Council. David Marskell and John Durdan, THEMUSEUM, were in attendance in support of the staff recommendation. D. Marskell addressed the report, noting they are requesting a one-time grant of up to $300,000. to assist them with operational funding, stating if the grant funding is not received, THEMUSEUM Board in the following week will be discussing the future state of THEMUSEUM, and whether they need to begin winding down the operation. D. Marskell indicated THEMUSEUM has been an integral part of the City's Downtown, attracting thousands of visitors to the core. D. Marskell stated the current operational model has been flawed for a number of years, and based on a number of setbacks it has become even more unsustainable. D. Marskell spoke to the lack of funding eligibility from the Federal and Provincial governments, the reduction in funding from the Region of Waterloo, and, the impacts from COVID on attendance and their impacts on their financial situation. D. Marskell indicated the staff team at THEMUSEUM have already completed significant work to support their 2025 fiscal year, stating they have already E secured approximately $1.75M in grant funding for various initiatives. D. Marskell stated THEMUSEUM currently has $1.4M in reserves, which is the amount that would be required to repay deposits and severances, if THEMUSEUM proceeded to close immediately. D. Marskell noted they do not want to utilize reserves to maintain operations, as if they are not able to address the issues with their operational model, they will not be able to address their existing commitments with customers or their staff. D. Marskell indicated if Council agrees to support the $300,000. grant as outlined in the staff report, it would provide bridge financing, that would allow them to operate through the summer to support the special events and provide summer camp programming that has already been committed to. Further, D. Marskell stated during that time, City staff in collaboration with the Board will be reviewing the existing operational model and will be seeking opportunities to achieve sustainability. In response to questions, D. Marskell advised THEMUSEUM has not approached the Region of Waterloo at this time related to a funding request. D. Marskell noted that the Region cut funding in 2024 for THEMUSEUM which reduced their contribution by $300.000. D. Marskell indicated discussions related to their grant funding has begun for the upcoming budget process and, as part of those discussions, the Region of Waterloo is in the process of determining whether they will continue to provide THEMUSEUM with any grant funding, noting they have not been very forthcoming with support. Questions were raised regarding the operational model, D. Marskell indicated that 75% of the funding for THEMUSEUM is required to be generated through revenues, whereas other museums have operating models that require them to generate 30% of their funding through revenue, the balance of their operational funding is supported through grant funding, often through other levels of government. In response to further questions, D. Marskell stated while THEMUSEUM would be willing to review financial cuts, there is a balance between cutting spending and impacts to programming. D. Marskell indicated if cuts are made to programming, it can impact attendance and memberships, which is a major source of funding revenue. D. Marksell and J. Durden noted every effort would be made to review all operational matters, cuts to programming where appropriate would be considered. In response to further questions, D. Marskell noted of the other area municipalities in the Region, the City of Waterloo is the only one that still provides some grant funding to THEMUSEUM. Questions were raised about whether an interest free loan would be an option rather than a one-time grant. D. Marskell indicated THEMUSEUM is a non -for- profit organization so a loan repayment would not address the challenges 9 currently being experienced. In response to further questions, D. Marskell indicated prior to the global pandemic THEMUSEUM was achieving attendance of 100,000, indicating for 2024 it is anticipated to achieve 80,000 attendees. In response to questions related to achieving a more sustainable funding model, D. Marksell and J. Durdan indicated all aspects of their operation are being reviewed for efficiency. J. Durdan indicated in addition to operational improvements, THEMUSEUM will be seeking support from donors within their community to address the current operational challenges. Questions were raised related to THEMUSEUM governance, D. Marskell stated the board typically operates with 10 members, noting currently there are two vacancies pending City Council's decision this date. D. Marskell and J. Durdan stated they are fully prepared to review all structures including the board. D. Marskell indicated one area that has been raised related to the board is potentially doing more Committee work. Further to that, D. Marskell stated another matter that has been raised is potential rebranding for THEMUSEUM, indicating the name does not always resonate with people who are unaware that THEMUSEUM used to be a children's museum and now offers more programming beyond that space. Councillor A. Owodunni left the meeting at this time. In response to questions related to museum grant funding, D. Marskell indicated locally the Ken Seiling museum is 90% funded by the Region of Waterloo and 10% supported by revenues; the Royal Ontario Museum (ROM) is funded by the Provincial and Federal governments due to its ownership. THEMUSEUM is not eligible for sustainable ongoing funding due to the museum operation and lack of permanent collection. The funding offered to museums is restricted in their criteria and THEMUSEUM in its current operation is not eligible. Councillor A. Owodunni re-entered the meeting at this time. Questions were raised about the grant funding and whether Council opted to defer consideration on the funding outlined in Clause 1 (d) of the staff recommendation that would be paid out on August 15, 2024 to the June 24, 2024 Council meeting, to allow the opportunity to delegate to the Region of Waterloo to request funding support, would impact THEMUSEUM decision to keep operating through the summer. D. Marskell stated THEMUSEUM would have no objection to requesting support from the Region of Waterloo. D. Marksell stated any deferral this date will have an impact on the Board decision at their meeting on May 22, 2024. D. Marskell stated the next coming months can be most challenging with cash flow, noting programming is currently high with school M groups etc. in the fall that programming does not start immediately with school resuming. In response to further questions, D. Marksell noted that THEMUSEUM has not sought funding support from the Downtown Business Improvement Area (BIA) but acknowledged that it may be an avenue to obtain support. Councillor S. Davey brought forward a motion, which was seconded by Councillor R Singh, to approve the recommendation as outlined in Report CAO - 2024 -229, including the following amendment: "That THEMUSEUM delegate at the Region of Waterloo, prior to July 1st, formally requesting support funding sharing 50% of the interim cost (i.e. $150,000) with the City of Kitchener; and further, That Clause D of the staff recommendation be deferred to the June 24, 2024 Council meeting to allow THEMUSEUM to attend the Region to delegate." Questions were raised about the economic impacts THEMUSEUM currently has on the Downtown and how to hold THEMUSEUM to potential changes in their organization structure. C. Bluhm noted staff could circulate via email following the meeting the economic benefits that THEMUSEUM has on the Downtown. Further, C. Bluhm stated Council, following receipt of a study on the proposed operation changes, could then make a future decision as to whether to continue to support THEMUSEUM going forward. With the consensus of Council the proposed amendments were separated and recorded votes requested. Clause 1 of Councillor S. Davey's amendment, related to requesting that THEMUSEUM delegate at the Region of Waterloo, prior to July 1st, formally requesting support funding sharing 50% of the interim cost (i.e. $150,000) with the City of Kitchener, was then voted on and was Carried, on a recorded vote, with Mayor B. Vrbanovic and Councillors S. Davey, D. Schnider, J. Deneault, C. Michaud, A. Owodunni, P. Singh, B. loannidis, M. Johnston and D. Chapman voting in favour; and, Councillor S. Stretch voting in opposition. Clause 2 of Councillor S. Davey's amendment, related to deferring Clause D of the staff recommendation be deferred to the June 24, 2024 Council meeting to allow THEMUSEUM to attend the Region to delegate, was then voted on and was LOST, on a recorded vote, with Councillors S. Davey, D. Schnider, J. Deneault, P. Singh and B. loannidis voting in favour; and, Mayor B. Vrbanovic and Councillors C. Michaud, M. Johnston, S. Stretch, D. Chapman and A. Owodunni voting in opposition. The motion as amended was then voted on, on a recorded vote. G� Moved by Councillor S. Davey Seconded by Councillor P. Singh "That the Chief Administrative Officer be authorized to enter into an agreement with THEMUSEUM of Ideas Transcending Objects ("THEMUSEUM") to provide THEMUSEUM with up to $300,000 to support cash-flow requirements until October 31, 2024, in accordance with Development Services Department report DSD -2024-229, to the satisfaction of the City Solicitor, subject to the following conditions being met absent which the City may withhold the transfer of funding: i. That THEMUSEUM shall provide the City with monthly cash-flow statements/projections in a format acceptable to the Chief Financial Officer, and that funding shall only be advanced where required to maintain a positive cash-flow position, up to the following sub -limits: a. Upon execution of the agreement — up to $50,000 if required b. On June 15, 2024— up to $100,000, cumulatively if required c. On July 15, 2024 — up to $200,000, cumulatively if required d. On August 15, 2024 — up to $300,000, cumulatively if required ii. That THEMUSEUM Board and staff shall endeavour to act with financial prudence during this time, such as limiting discretionary spending, to minimize the need for cash-flow support; iii. That THEMUSEUM shall endeavour to ensure all community commitments, including summer camps and venue rentals, are honoured; iv. That THEMUSEUM Board and staff shall enter into a meaningful, collaborative and best -effort process by June 1, 2024 to consider, analyze and evaluate fundamental changes to THEMUSEUM's business model with a goal of achieving a new, sustainable business model; and further, That THEMUSEUM delegate at the Region of Waterloo, prior to July 1st, formally requesting support funding sharing 50% of the interim cost (i.e. $150,000) with the City of Kitchener." In Favour (10): Mayor B. Vrbanovic, Councillor D. Schnider, Councillor J. Deneault, Councillor C. Michaud, Councillor A. Owodunni, Councillor P. Singh, Councillor B. loannidis, Councillor M. Johnston, Councillor D. Chapman, and Councillor S. Stretch Contra (1): Councillor S. Davey Carried (10 to 1) 4. Community and Infrastructure Services Committee report - May 13, 2024 4.1 Noise Exemption - Downtown Special Events, CSD -2024-140 Moved by Councillor M. Johnston Seconded by Councillor D. Schnider "That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted for all Downtown Special Events, as outlined on Community Services Department report CSD -2024-140." Carried 5. Mayoral Business and Updates - Mayor B. Vrbanovic None. 6. In -camera Meeting Authorization Moved by Councillor A. Owodunni Seconded by Councillor D. Schnider "That an in -camera meeting of City Council be held immediately following the special council meeting this date to consider a litigation/potential litigation matter as authorized by Sections 239 (2) (e) of the Municipal Act, 2001, respectively." 7. By-laws 7.1 Three Readings Moved by Councillor J. Deneault Seconded by Councillor M. Johnston Carried 7 8. "That the by-laws be given third reading, namely: 7.1.a To confirm all actions and proceedings of the Council for May 13, 2024. Adjournment On motion the meeting adjourned at 6:58 p.m. (d -& g6 . Mayor Clerk (By-law 2024-103) Carried 8