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HomeMy WebLinkAboutFinance & Corp - 2004-12-06FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 6, 2004 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 11:05 a.m. Present: Chair - Councillor B. Vrbanovic Mayor C. Zehr and Councillors J. Smola, J. Gazzola, and G. Lorentz. Staff: C. Ladd, Chief Administrator Officer R. Browning, Interim General Manager, Strategic Services G. Stewart, General Manager, Development and Technical Services P. Houston, General Manager, Financial Services & City Treasurer G. Sosnoski, General Manager, Corporate Services & City Clerk F. Pizzuto, General Manager, Community Services K. Currier, Director of Operations L. Proulx, Director of Facilities Management R. Upfold, Director of Accounting S. Turner, Director of Enforcement M. Grummett, Director of Information Technology R. Gosse, Director of Legislated Services D. Trask, Acting Fire Chief F. McCrea, Assistant City Solicitor J. Sheryer, Assistant City Solicitor J. Koppeser, Manager of Licensing M. Lahn, Business Systems Analyst I. Magid, Supervisor, Benefits/Development D. Gilchrist, Committee Administrator 1. CONSOLIDATED MAINTENANCE FACILITY BUSINESS CASE PRESENTATION The Committee was provided this dated with Corporate Services Department report CRPS-04- 229, dated December 6, 2004, recommending that consideration of constructing a Consolidated Maintenance Facility in the Southwest portion of the City be referred to the 2005 Budget review process. The report also recommends acquisition by the City of the Maple Leaf lands adjacent to municipally owned land in the Huron Business Park. Mr. G. Sosnoski, along with Ms. R. Upfold, Mr. L. Proulx and Mr. K. Currier were in attendance to present the Business Case with respect to the development of a consolidated maintenance facility. Mr. Sosnoski advised there are 2 key questions to be addressed: why consolidate the City's maintenance facilities at one location, and why build a consolidated maintenance facility at the recommended location. He advised the Committee that 90% of the work done to prepare the business plan has been undertaken in-house, and all stakeholders were involved in the process. He thanked all staff involved in this process and acknowledged those consultants involved, and the roles they played. Staff are recommending a consolidated facility to meet the needs of the City of Kitchener over the next 30 years. Such a facility will provide improved service, achieve cost savings in excess of $1M each year for the next 30 years, achieve environmental benefits, and address the City's growth needs. Mr. K. Currier advised the current locations have a number of deficiencies; as they are aging and can not meet the City's needs. Further, the current facilities do not have the ability to expand to meet the increase in demand over the next 30 years. He also advised that Operations must relocate, and there are fixed dates for leaving the existing facilities. He continued by advising of the annual efficiencies which will be achieved through a consolidated facility including: lower energy costs, elimination of duplicity in specialty work areas, improved staff deployment, improved service delivery, faster response to emergencies, and a shared dispatch with a single phone number contact for customers. The proposed location at Huron and Strasburg Roads is accessible to major arteries, and is an industrial environment suitable to a maintenance facility. With respect to project costs and funding, the capital costs will be $38.5M in 2006 dollars, with funding being obtained from various sources. A 2 facilities model will cost an additional $10M over the lifetime of the facilities. Upon questioning, Ms. R. Upfold confirmed that annual savings of $1,067,000 will be achieved. Mayor Zehr questioned whether those savings will be seen in the annual operating budget. Mr. Sosnoski responded that some of the savings are actual budget reductions; FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 67 2004 - 154 - CITY OF KITCHENER 1. CONSOLIDATED MAINTENANCE FACILITY BUSINESS CASE PRESENTATION, CONT'D however, others of the savings are in fact cost avoidance, for such things as energy savings. Upon further questioning, Ms. Upfold advised there will be a budget reduction of $114,000 in the first year; which assumes changes will be made to the staff compliment through attrition. Mayor Zehr requested that some method be devised to monitor all cost savings and avoidances for this facility, should it be approved. Ms. Upfold advised that, in terms of operational changes, duplications in staffing have been charted, and the team has made estimates as to which positions could be reduced through attrition. Operational improvements can be achieved through improved staff deployment and reduced vehicle maintenance, among other things, resulting in a savings of $633,000. With respect to allocations in the capital forecast, the Committee was advised there is $1M in the year 2004, and $17M in years 11, 12, and 13 of the capital forecast. Ms. Houston advised the total capital cost for a central maintenance facility will be $38M, including borrowing costs. Councillor Gazzola questioned whether the most important consideration in locating a central maintenance facility is closeness to the growth area or a location central to the municipality. Mr. Currier responded closeness to the growth area is the most important criteria, as confirmed by the consultant. The City needs to ensure it can find enough land for such a facility that is close to the growth area. Further, with density increasing in the downtown, it is becoming more difficult to deploy vehicles. Mr. Currier continued by explaining a new maintenance facility will allow for inside storage of vehicles which will allow for faster deployment, and first response vehicles should be stored inside. Councillor Gazzola questioned why one consolidated work site would create savings. Mr. Sosnoski responded there are certain practical issues which need to be addressed: the City has to relocate its functions at Strasburg Road, the equipment at Chandler Drive has to be moved by 2009, and Bramm Street has to be relocated. Further, the existing facilities are not optimally located. By locating these functions at one location, cost avoidance savings can be captured. He noted Parks and Roads have recently been combined, and the municipality is already achieving savings over what would have been spent if these functions had remained separate. Councillor Gazzola proposed the situation that 2 facilities may be better than 1 facility, and questioned why staff believe 1 facility would save $223,000 in operating costs over the 2 facility model. Mr. Sosnoski responded a 2 facility model has duplication which 1 central does not. Ms. Upfold noted 1 facility would have a lesser staff requirement for stores and the crib shop. Councillor Vrbanovic asked that a tour of existing facilities be arranged for this Committee. Councillor Gazzola stated alternatives need to be carefully considered. He questioned the amount of land needed for parking. Mr. L. Proulx stated 400 parking spaces are required for staff, as well as parking required for equipment. Councillor Gazzola stated a substantial number of projects will have to be removed from, or moved within, the capital forecast in order to accommodate a central maintenance facility. He also raised concerns about the short timelines for this project. Mr. Sosnoski noted that by 2007, the Region will be expanding the transit terminal, and the City must be moved from this site by that time. He also noted that Bramm Street is a political decision and is the lynch pin. He stated development of a central maintenance facility will take 2 years if the City owns the land, and 3 years if the City does not own the property. With respect to the Bramm Street facility, Mr. F. Pizzuto advised the property is worth approximately $1.5M if there are no environmental concerns, and less if there are. Mayor Zehr requested staff arrange a tour of the City's existing facilities as soon as possible. He then stated the business case has been well prepared and contains a lot of detailed information. The concept of developing a new maintenance facility has been considered over DECEMBER 67 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 155 - CITY OF KITCHENER 1. CONSOLIDATED MAINTENANCE FACILITY BUSINESS CASE PRESENTATION, CONT'D several years, since the City decided to sell the transit terminal. With respect to Bramm Street; although Council has not formally decided on this property, the University of Waterloo presentation did consider Bramm Street for the School of Pharmacy, and we should not be sending mixed messages. He requested a separate vote for each part of the staff recommendation. Councillor Lorentz spoke in support of the recommendation in the staff report. He supports the location proposed by staff as it provides easy access to the rest of the city. Further, he believes consolidating the City's maintenance facilities is cost effective. He suggested a lot of time could be saved if Council could meet with staff to review the business case. He stated because of commitments already made, it is time to move forward. Further, he would like to see more information on the 2 facilities model. Councillor Gazzola stated the decision to develop a central maintenance facility would already be made if Council adopts the second part of the staff recommendation with respect to the purchase of the land. Mr. Sosnoski suggested the second part of the staff recommendation be dealt with at the December 13th Council meeting, with a report to be distributed the Friday prior. He noted that in the calculations, staff included no information with respect to increased taxes. Aisc, additional information will be included, in Caucus on December 13, 2004, with respect to the value of the land. He noted the property owner is anxious to have an early closing. When questioned by Councillor Vrbanovic about the delays caused by outside storage of equipment, staff advised that salt can not be stored in the vehicles if they are stored outside. Further, such equipment as generators, if stored inside, will have a longer life. Councillor Vrbanovic noted the 30% increase in office space, and was advised that 27 staff currently located a City Hall will relocate to the central maintenance facility as well as existing maintenance facilities' staff. He also questioned the cost of leasing space for a central maintenance facility and was advised this option has been considered and details can be made available. Councillor Vrbanovic then proposed the situation as to what would happen over the next 10 years if municipal governments amalgamate. Mr. Sosnoski advised that discussions have not taken place with Waterloo; however, if there was to be an amalgamation there would be 2 large maintenance facilities, one owned by the Region and the one being proposed today. Councillor Vrbanovic then directed staff provide the details of assessment growth from the sale of the existing facilities. He also requested the details on other sites considered by staff for this central maintenance facility. With respect to the recommendation in the staff report, Councillor Vrbanovic requested part 2 be deferred and referred to Council. Mayor Zehr moved part 1 of the staff recommendation, and moved that part 2 be deferred and referred to the Council meeting of December 13, 2004. Each part of Mayor Zehr's motion was voted on separately, as previously requested, resulting in the following: On motion by Mayor C. Zehr - it was resolved: "That a decision on the construction of a Consolidated Maintenance Facility (CMF) on the Strasburg - Huron site in the southwest portion of the City for occupancy in the summer of 2007, as outlined in the Business Case appended to Corporate Services Department report CRPS-04-229, be referred to the 2005 budget review process; and further, That consideration of the City acquiring the Maple Leaf lands adjacent to the municipally owned property in the Huron Business Park be deferred and referred to the Council meetin.q of December 13, 2004." DECEMBER 67 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 156 - CITY OF KITCHENER This meeting recessed at 12:30 p.m. and reconvened at 1:00 p.m., with the following members present: Mayor C. Zehr, Councillors B. Vrbanovic, J. Smola, G. Lorentz, and J. Gazzola. CRPS-04-209 -HOT DOG CART APPEAL -385 FAIRWAY ROAD SOUTH -MUNICIPAL CODE CHAPTER 586 (REFRESHMENT VEHICLE) The Committee was in receipt of Corporate Services Department report CRPS-04-209, dated November 8, 2004, with respect to an appeal received from Mr. D. Wysocki, to the decision of the Manager of Licensing not to issue him a licence to operate a hot dog cart at 385 Fairway Road South. It was noted in the report there are 25 Places of Refreshment located within 200m of the subject property, which is the separation distance required in Chapter 586 (Refreshment Vehicles) of the City of Kitchener Municipal Code. It was noted this matter had been deferred and referred at the November 22, 2004, to this meeting to allow Mr. Wysocki to be in attendance to represent his appeal. Mr. Wysocki was in attendance and advised the Committee of his belief that he will not interfere with other food places in the area. There are no other food places in the Canadian Tire Plaza, and no parking or traffic problems. Further, his food is different than that sold by other food vendors in the area. Upon questioning Mr. Wysocki advised he has spoken to the owner of Canadian Tire and has written permission from the owner to locate his hot dog cart in his chosen location. When questioned by the Committee, Ms. Koppeser advised if the licence is issued it can only be reviewed at the end of the calendar year. Councillor Gazzola questioned whether there have been complaints about the hot dog cart at the Canadian Tire Store on Ottawa Street, and was advised no complaints have been received about that operation. Mayor Zehr questioned whether the City had received previous requests to operate a hot dog cart at this location. Ms. Koppeser advised 3 previous requests had been received which have all been refused. On those occasions, objections were received form existing Places of Refreshment in the area. On motion by Councillor J. Gazzola- it was resolved: "That the request of Dariusz Wysocki for a licence to operate a hot dog cart at 385 Fairway Road South, contrary to Chapter 586 (Refreshment Vehicles) of the City of Kitchener Municipal Code, be approved, subject to the licence being reviewed after one year." Mayor Zehr advised he voted in opposition to this motion because of the history of objections to the operation of a hot dog cart at this location. 3. CRPS-04-227 - AMENDMENTS TO MUNICIPAL CODE CHAPTER 530 (DOGS) - and - CRPS-04-223 -NEW BUSINESS LICENSING BY-LAWS -DOG KENNELS, BOARDING KENNELS, DOGGIE DAYCARE, PET SHOPS AND AMUSEMENT ARCADES - PUBLIC MEETING REQUIRED UNDER THE MUNICIPAL ACT The Committee was in receipt of Corporate Services Department report CRPS-04-227, dated December 1, 2004, recommending changes to Chapter 530 (Dogs) of the City of Kitchener Municipal Code. It was noted in the report the amendments have been proposed by a Dog Review Ad hoc Committee, authorized for this purpose by Council on December 15, 2003. In addition amendments to this Chapter are required as a result of new licensing By-laws, being proposed by staff this date, with respect to Dog Kennels, Boarding Kennels, and Doggie Daycare, as contained in Corporate Services Department report CRPS-04-223. DECEMBER 6, 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 157 - CITY OF KITCHENER CRPS-04-227 - AMENDMENTS TO MUNICIPAL CODE CHAPTER 530 (DOGS) - and - CRPS-04-223 -NEW BUSINESS LICENSING BY-LAWS -DOG KENNELS, BOARDING KENNELS, DOGGIE DAYCARE, PET SHOPS AND AMUSEMENT ARCADES - PUBLIC MEETING REQUIRED UNDER THE MUNICIPAL ACT, CONT'D The Committee was also in receipt of Corporate Services Department report CRPS-04-223, dated November 29, 2004, proposing By-laws to license breeding and boarding kennels, doggie daycares, pet shops and amusement arcades, in compliance with the requirement of the Municipal Act, 2001. It was noted this meeting is the last of a series of public meetings respecting business licensing, as required under the Municipal Act, 2001. Dr. G. Goree was in attendance providing Committee members with a written submission which he then verbally presented, making recommendations with respect to amendments to Chapter 530 (Dogs) of the City of Kitchener Municipal Code. With respect to Dr. Goree's recommendations, Ms. J. Sheryer advised his first recommendation concerning the clause dealing with sheep can be accommodated. Concerning his suggestion dealing with the City being notified of rabid animals, Ms. Sheryer advised the province has control and does notify the Humane Society immediately, who can in turn, let the City know, if that is the Committee's wish. With respect to Part B of Dr. Goree's submission, Ms. Sheryer advised the new provisions allow the Dog Designation Appeal Committee more flexibility. The question was raised by the Committee as to whether the recommendation in the staff report should be deferred to allow the ad hoc committee on dogs to review Dr. Goree's submission. Ms. Sheryer advised it is imperative this by-law be adopted before January 1, 2005, because of its connection to the new licensing by-law dealing with breeding and boarding kennels. It was generally agreed by the Committee that the ad hoc committee on dogs be requested to review and comment on Dr. Goree's suggestions, in the new year. If further by-law amendments are warranted as a result of the review, they can be dealt with at a future date. Councillor J. Smola acknowledged the presence of Ms. M. Linington, in the audience, who is a member of the ad hoc committee on dogs. He thanked her and all the members of this ad hoc committee for their efforts. On motion by Councillor J. Smola- it was resolved: "That, at its December 13, 2004, meeting, Council adopt a By-law to amend Chapter 530 (Dogs) of the City of Kitchener Municipal Code, in the form as attached to Corporate Services Department report CRPS-04-227; and, That Council acknowledge that the by-law incorporates an increase in the time the animal services provider for the City must hold a dog before selling it, from three to five business days, recognizing that this may have cost implications in our contract negotiation with the Kitchener Waterloo and North Waterloo Humane Society; and further That Council acknowledge that the by-law incorporates the removal of the present February 15 to March 15 tier of the graduated fees for dog licence renewals so that the present fee for January 1 to February 15 will apply from January 1 to March 1 and the present fee for March 15 to June 30 will now apply from March 1 until June 30 of each year and Council hereby directs that the distribution by percentage of licensing fee revenues under the animal services contract being negotiated with the Kitchener- Waterloo and North Waterloo Humane Society remain unchanged by the removal of the February 15 to March 15 tier of the renewal dog licensing fees." DECEMBER 6, 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 158 - CITY OF KITCHENER CRPS-04-227 - AMENDMENTS TO MUNICIPAL CODE CHAPTER 530 (DOGS) - and - CRPS-04-223 -NEW BUSINESS LICENSING BY-LAWS -DOG KENNELS, BOARDING KENNELS, DOGGIE DAYCARE, PET SHOPS AND AMUSEMENT ARCADES - PUBLIC MEETING REQUIRED UNDER THE MUNICIPAL ACT, CONT'D With respect to Corporate Services Department report CRPS-04-223, recommending a new business licensing by-law for Dog Breeding and Boarding Kennels, Doggie Daycares, Pet Shops and Amusement Arcades, Mr. R. Gosse advised that, as with all the revised business licensing by-laws being recommended by staff, the fees in these proposed by-laws are based on 100% cost recovery. Further, licence fees and general provisions will be contained in a separate by-law. With respect to licensing amusement arcades, Mr. Gosse advised the licensing by-law is being aligned with the zoning by-law. Upon questioning, Mr. Gosse advised that amusement arcade licence fees are to increase anywhere from 1.5 to 10 times the current fees, and are based on cost recovery for the amount of time spent on inspections. DELEGATIONS WITH RESPECT TO NEW BUSINESS LICENSING BY-LAWS The Committee was in receipt of Corporate Services Department report CRPS-04-211, dated November 15, 2004, providing additional information with respect to the proposed By-law to license Temporary Vendors. The Committee previously considered this report, earlier this fall, and it has been re-circulated for this meeting as Mr. S. Miller has registered as a delegation in this regard. Mr. Shawn Miller was in attendance in support of the option outlined in the staff report to permit multiple dates per location on the same application. He stated that although the new fee will be greater than last year's, it will be less than originally proposed by staff. On motion by Councillor J. Gazzola - it was resolved: "That the proposed By-law attached to Corporate Services Department report CRPS- 04-193 with respect to licensing Temporary Vendors, be revised to permit temporary vendors to apply for multiple dates, per location, within a two month period, on the same application." The Committee was also in receipt of Corporate Services Department report CRPS-04-207, dated November 15, 2004, with respect to a new By-law to license Adult Entertainment, which had been considered by this Committee at its November meeting. This report was re- circulated this date, as Ms. Weston had registered as a delegation in this regard, but was unable to attend. Councillor B. Vrbanovic advised he has spoken with Ms. Weston, who is unable to attend this meeting, stating her concern is with the location of an adult entertainment establishment on Victoria Street, given the increased residential density in this area. He requested consideration of the Adult Entertainment Licensing By-law be deferred and referred to the Council meeting of December 13, 2004, to allow further consideration of location criteria for these establishments. Staff requested further direction, and Councillor Vrbanovic suggested criteria be established, such as distance separation requirements from churches, schools, residences and other businesses, as well as potentially reducing the number of establishments. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 67 2004 - 159 - CITY OF KITCHENER 4. DELEGATIONS WITH RESPECT TO NEW BUSINESS LICENSING BY-LAWS, CONT'D On motion by Councillor B. Vrbanovic - it was resolved: "That consideration of Corporate Services Department report CRPS-04-207 (New Licensing By-law - Adult Entertainment) and the draft By-law attached her to, b~e deferred and referred to the Council meetinq of December 13, 2004." Mr. DeGanjis appeared before the Committee to request consideration of licensing ice cream trucks in the City of Kitchener. It was noted this matter had been discussed at the Committee's previous meeting. Mr. DeGanjis provided photographs of an ice cream truck to illustrate their safety features. He stated children can cross the street to purchase ice cream from stores, tricycles or trucks, and the safety concerns would be the same. Also, he advised ice cream trucks operate in Ajax, Toronto, Hamilton and Cambridge, without accidents. Mayor Zehr questioned the required process should the City decide to license ice cream trucks. Mr. Gosse advised a policy would have to be established and adopted by Council to deal with such matters a whether they could locate on public or private property, among other things. On motion by Mayor C. Zehr - it was resolved' "That no action be taken to license ice cream trucks to operate in the City of Kitchener." 5. CRPS-04-230 - PROPOSED BUSINESS LICENSING BY-LAWS The Committee was provided, under separate cover, with Corporate Services Department report CRPS-04-230, dated November 30, 2004, replacing Corporate Services Department report CRPS-04-225 attached to the agenda for this meeting. In addition the Committee members had been provided with a package of all the new business licensing by-laws being presented for final consideration by the Committee this date. Mr. R. Gosse advised that since September of this year, this Committee has held several public meetings, as required under the Municipal Act, to review new by-laws to license businesses in the City of Kitchener. All proposed by-laws have now been reviewed, and except for the changes and deferrals discussed earlier in this meeting, all are ready to be enacted. Mr. Gosse then advised the review, investigation and preparation of all these business licensing by-laws has been an 18 month job, primarily undertaken by Ms. J. Koppeser and Ms. J. Sheryer, who he thanked for their extensive work and time spent on this project. He further advised the City of Kitchener is probably leading all municipalities in this regard, who are now turning to us for advice. Councillor Vrbanovic thanked Ms. Koppeser and Ms. Sheryer on behalf of the Committee. On motion by Councillor G. Lorentz- it was resolved' "That Council, at its special meeting of December 6, 2004, adopt the business licensing by-laws attached to the following Corporate Services Department reports' a) CRPS-04-175, dated September 21,2004, b) CRPS-04-185, dated October 13, 2004, c) CRPS-04-193, dated October 26, 2004, and amended this date to permit a temporary vendor to apply for multiple dates per location, within a 2 month period, on the same application, and d) CRPS-04-223, dated November 29, 2004; and, That no action be taken to license ice cream trucks in the City of Kitchener; and further, That consideration of Corporate Services Department report CRPS-04-207 (New Licensing By-law - Adult Entertainment) and the draft by-law attached thereto, b~e deferred and referred to the Council meetinq of December 13, 2004." DECEMBER 67 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 160 - CITY OF KITCHENER CRPS-04-222 - EXEMPTION FROM MUNICIPAL CODE CHAPTER 450 (NOISE) - WASHBURN DRIVE The Committee was in receipt of Corporate Services Department report CRPS-04-222, dated December 2, 2004, seeking the Committee's direction with respect to a request from S. G. Cunningham for an exemption from Chapter 450 (Noise) of the City of Kitchener Municipal Code, to allow pouring of a concrete floor slab at 50 Washburn Drive. Mr. S. Turner advised this matter was before Council at its special meeting of November 1, 2004. Since that time, the property owner has resubmitted its request. He advised there are no neighbourhood concerns with this request, now that they understand the building will be completely enclosed, except for one opening. Mr. Turner requested that, due to timing, any recommendation from this Committee be considered at the special Council meeting this date. On motion by Councillor G. Lorentz- it was resolved: "That the request of S. G. Cunningham (Kitchener) Limited for an exemption from Chapter 450 (Noise) of the City of Kitchener Municipal Code be approved, to allow them to place and finish a large concrete floor slab at 50 Washburn Drive from 7:00 p.m. on December 10, 2004, to 7:00 a.m. on December 11,2004; and further, That this recommendation be considered at the special Council meeting this date." DTS-04-192 - AES INTELLINET- BLANK PURCHASE AGREEMENT The Committee was in receipt of Development and Technical Services Department report DTS-04-192, dated November 30, 2004, recommending a renewed agreement between the City and AES Intellinet for wireless communication network equipment. Mr. R. Browning advised this company is the sole provider of this equipment at this time. On motion by Councillor G. Lorentz- It was resolved: "That the Mayor and Clerk be authorized to sign a renewed agreement, satisfactory to the City Solicitor, with AES Intellinet (AES Corporation) regarding the purchasing of its wireless communication network equipment; and further, That the Kitchener Fire Department participate in the referral services program with AES Intellinet." FIN-04-054 - 2005 WATER HEATER RATES The Committee was in receipt of Financial Services Department report FIN-04-054, dated December 1, 2004, recommending water heater rental rates for 2005. The report also recommends that Kitchener Utilities properly inform its customers with respect to anti-scald legislation, and make available mixing valves for rent, should consumers choose to rent one. Mr. D Quinn presented the report. He advised there will be a separate rate to rent mixing valves, as they may not last as long as a water heater. Staff will be producing information notices to inform the public of mixing valves. He further advised that a home owner does not have to comply with the new anti-scald legislation until they make a major change to their plumbing. On motion by Councillor J. Smola- It was resolved: "That 2005 monthly water heater rental rates, as contained in Appendix 1 of Financial Services Department report FIN-04-054, be approved; and further, That Kitchener Utilities provides its customers with information on anti-scald legislation, and make available mixing valves for an additional rental fee, to be charged on the customers' monthly bill." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 67 2004 - 161 - CITY OF KITCHENER 9. FIN-04-050 - AUDIT COMMITTEE FRAMEWORK The Committee was in receipt of Financial Services Department report FIN-04-050, dated November 15, 2004, with respect to the establishment of an Audit Committee, to be a sub- committee of the Finance and Corporate Services Committee. Attached to the report is a proposed Council Policy outlining the Terms of Reference for this Committee. Ms. P. Houston presented the report, noting the policy specifies what matters must be reported to the Audit Committee. This is proposed to be a smaller committee than the Finance & Corporate Services Committee, who will look at matters in more detail, and report to Council directly. Councillor J. Smola noted that Councillor Galloway has an interest in being part of this Committee, and it was generally agreed that the appointment of the member of Council to sit on this Committee be deferred and referred to the Council meeting of December 13th. On motion by Councillor J. Smola - it was resolved: "That effective December 13, 2004, an Audit Committee be established as a sub- committee of the Finance and Corporate Services Committee; and, That the proposed Council Policy titled 'Audit Committee - Terms of reference' attached to Financial Services Department report FIN-04-050, be approved; and further, That the following be appointed as voting members of the Audit Committee for a term to expire November 30, 2006: Mayor C. Zehr, Councillor B. Vrbanovic, Chair of Finance and Corporate Services Committee, and one more Councillor, whose appointment shall be made at the December 13, 2004 Council meeting." 10. SSD-04-044 - CUSTOMER SERVICE STRATEGY FRAMEWORK The Committee was in receipt of Strategic Services Department report SSD-04-044, dated November 15, 2004, providing a customer service strategy framework on which more detailed Customer Service Strategy can be based. The Committee had previously been provided with a paper prepared by the Strategic Services Department, titled "Customer Service Strategy Developing A Framework", which was presented at this time in the form of a PowerPoint presentation. Following the presentation, Mayor Zehr questioned how staff has been engaged in this process, in a general way. Mr. R. Browning advised some general discussions have taken place, which will become more intense and detailed as the project moves forward. Councillor Gazzola questioned the service delivery model, to which Mr. Grummett responded various options are available, and it will depend on what our customers say they want. Upon questioning, Mr. Browning advised customer service improvements are an item on the Council/Administration shared agenda, and should also be part of the City's continuous improvements. Mayor Zehr questioned whether population growth and a new central maintenance facility have been considered in this process, and staff advised they have been. On motion by Councillor G. Lorentz- It was resolved: "That the Customer Services Strategy Framework as presented to the Finance and Corporate Services Committee or December 6, 2004 be adopted as the basis on which a more detailed Customer Service Strategy will be developed." DECEMBER 67 2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 162 - CITY OF KITCHENER 11. 12. POWERPOINT PRESENTATION - WELLNESS PROGRAM The Committee had been provided with a copy of a PowerPoint presentation with respect to an employee wellness program, which was verbally presented this date by Ms. I. Magid. Following the presentation, the Committee was asked to endorse the spending of $12,000, in 2005, from the City's Fringe Benefits account to finance the wellness program as presented. On motion by Councillor G. Lorentz- it was resolved' "That in 2005, up to $12,000 from the City's Fringe Benefits account be allocated for a Corporate Wellness Program." ADJOURNMENT On motion, the meeting adjourned at 3:35 p.m. Dianne Gilchrist Committee Administrator