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HomeMy WebLinkAboutFin & Corp Svcs - 2005-03-07FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 7~ 2005 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 2:05 p.m. Present: Chair - Councillor B. Vrbanovic Mayor C. Zehr and Councillors J. Smola, M. Galloway, G. Lorentz, and J. Gazzola Staff: C. Ladd, Chief Administrator Officer S. Sosnoski, General Manager, Corporate Services & City Clerk P. Houston, General Manager, Financial Services & City Treasurer F. Pizzuto, General Manager, Community Services G. Stewart, General Manager, Development and Technical Services R. Browning, Interim General Manager, Strategic Services R. Gosse, Director of Legislated Services R. Pitfield, Director Corporate Communications/Marketing D. Quinn, Director of Utilities L. Proulx, Director of Facilities Management R. Upfold, Director of Accounting K. Currier, Director of Operations S. Turner, Director of Enforcement S. de Moree, Assistant City Solicitor P. Harris, Acting Manager of Licensing D. Gilchrist, Committee Administrator Prior to commencement of this meeting a moment's silence was observed in memory of the 4 RCMP Officers who were killed in the line of duty on March 3, 2005, near Mayerthorpe, Alberta. 1. CRPS-05-040 - OUTDOOR GARAGE SALE (MAY 7, 2005) - DOON PIONEER PARK COMMUNITY ASSOCIATION - 150 PIONEER DRIVE The Committee was in receipt of Corporate Services Department report CRPS-05-040, dated February 28, 2005, advising of the request received from the Doon Pioneer Park Community Association to hold an outdoor garage sale. It was resolved: "That the request of the Doon Pioneer Park Community Association to hold an outdoor garage sale at 150 Pioneer Drive on May 7, 2005 be approved, provided the necessary licence is obtained." 2. CRPS-05-041 - REQUEST TO OPERATE REFRESHMENT STAND (APRIL 10, 2005) - 45TM KITCHENER SCOUTS - COUNTRY HILLS COMMUNITY CENTRE - 100 RITTENHOUSE ROAD The Committee was in receipt of Corporate Services Department report CRPS-05-041, dated February 28, 2005, with respect to the request received from the 45th Kitchener Scouts to operate a refreshment stand on City property. It was resolved: "That the request of the 45th Kitchener Scouts to operate a refreshment stand at the annual Country Hills Recreation Association Family Fun Day on April 10, 2005 at 100 Rittenhouse Road be approved, provided the necessary licence, including Health and Fire approvals, is obtained." CRPS-05-037 - EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - BASICS OFFICE PRODUCTS - 50 WASHBURN DRIVE The Committee was in receipt of Corporate Services Department report CRPS-050-037, dated March 2, 2005, outlining the request of Basics Office Products for an exemption from the provisions of Chapter 450 (Noise) of the City of Kitchener Municipal Code. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 7, 2005 - 41 - CITY OF KITCHENER 3. CRPS-05-037 - EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - BASICS OFFICE PRODUCTS - 50 WASHBURN DRIVE (CONT'D) It was noted by the Chair that Ms. B. Wagner, Basics Office Products, was in attendance to answer any questions the Committee may have. It was resolved: "That an exemption from Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to Basics Office Products at 50 Washburn Drive, from 6 a.m. on Friday April 15, 2005, to 8:00 a.m. on Monday April 18, 2005, in order to move products into their newly construction warehouse from their previous location." CRPS-05-039 - APPEAL- CHIPWAGON LOCATION - 2191 KINGSWAY DRIVE The Committee was in receipt of Corporate Services Department report CRPS-05-039, dated February 28, 2005 with respect to an appeal received from Nasir Jafferi to the decision of the Manager of Licensing not to issue a licence to operate a Refreshment Vehicle at 2191 Kingsway Drive. A Refreshment Vehicle at 2191 Kingsway Drive would not meet the requirements of By-law 2004-258 with respect to separation from Places of Refreshment and other Refreshment Vehicles. Mr. Gosse and Ms. Harris were in attendance to answer any questions the Committee might have, and clarified the intended location for the Chipwagon, in front of the Quick Stop Variety on Kingsway Drive. Staff confirmed the Chipwagon would be located on private property, and the appellant has permission from the property owner to do so. Councillor Lorentz directed that for this appeal and future appeals of this nature, staff provide a map showing the proposed location, and the distance separations required by the By-law. Ms. E. Lama of Franklin's Pizza, and Mr. S. Curran of Wings Up, were in attendance to voice their opposition to a Chipwagon at 2191 Kingsway Drive. They reminded the Committee of the hardship experienced by businesses in this area due to the closure of the Franklin Street Bridge during the Highway 8 reconstruction, and that their businesses are just starting to recover. Mr. Curran also spoke of his concern with respect to an increase in crime in this area. Mayor Zehr noted the Committee has tried to be consistent in their handling of licensing appeals. Usually, when there are no objections received, appeals have been allowed; however, when objections are received they are considered on their merits. He stated he would have liked to hear from the appellant who was not in attendance, and asked that he be invited to attend the Council meeting on March 21,2005. On motion by Mayor C. Zehr - it was resolved: "That the appeal of Nisar Ali Jafferi of the decision of the Manager of Licensing not to issue a licence to operate a Refreshment Vehicle at 2191 Kingsway Drive, be denied." Councillor Vrbanovic advised the delegations this recommendation will be considered by Council on Monday March 21, 2005, commencing at 7:00 p.m., and they may appear at the Council meeting if they wish. CRPS-05-042 - LODGING HOUSE LICENCES - PUBLIC NOTIFICATION AND LICENCE REVIEW The Committee was in receipt of Corporate Services Department report CRPS-05-042, dated February 28, 2005, advising that in 2004 staff undertook a public notification process for renewals of Lodging House Licences, as directed by Council. As a result of this notification process a pilot Licensing Review Committee, consisting of the Directors of Enforcement and Legislated Services, the Manager of Licensing and the Licensing Inspector was established to FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 7~ 2005 - 42 - CITY OF KITCHENER CRPS-05-042 - LODGING HOUSE LICENCES - PUBLIC NOTIFICATION AND LICENCE REVIEW (CONT'D) review complaints received through the public notification process. This Review Committee met with Lodging House owners affected by negative neighbourhood complaints, and methods of resolving the complaints were agreed upon. Staff recommend continuation of this process. On motion by Councillor J. Smola - it was resolved: "That continuation of the Licensing Review Committee, as established to address applications for renewal of licensed lodging houses, as outlined in Corporate Services Department report CRPS-05-042, be approved." 6. FIN-05-007 - NATURAL GAS RATES The Committee was in receipt of Financial Services Department report FIN-05-007, dated March 2, 2005 recommending an increase in the supply component of the natural gas rates, and a decrease in both the transportation and delivery components of the natural gas rates. Mr. Quinn was in attendance in support of the report, noting the Utility is trying to fulfil its mandate to its customers, and reminding the Committee that the Utility is not permitted to cross subsidise these rates. On motion by Mayor C. Zehr - it was resolved: "That the supply component of the natural gas rates be increased to 25.9 cents per cubic meter from 23.9 cents per cubic meter for system gas customers of the City of Kitchener effective April 1,2005; and, That the transportation component of the natural gas rates be decreased to 4.076 cents per cubic meter from 4.613 cents per cubic meter for system gas customers of the City of Kitchener effective April 1,2005, to reflect the interim rates charged by TransCanada Pipelines as previously approved by the National Energy Board; and further, That the delivery components of the natural gas rates be changed as proposed in Appendix A of Financial Services Department report FIN-05-007, for all Kitchener delivery customers effective April 1,2005." CAO-05-002 - KW TOURISM YEAR-END REPORT - MEMBERSHIP PROGRAM The Committee was in receipt of Chief Administrative Officer report CAO-05-002, dated February 16, 2005 recommending a membership program for K-W Tourism. Ms. Pitfield provided an explanation of the proposal outlined in the report, noting there is support from the industry for this proposed membership program, and the rates are comparable to other municipalities of the same size. In response to questions from the Committee, Ms. Pitfield advised staff have retained the "K- W" in K-W Tourism because it is well recognized by the industry. Also, from a tourist perspective, there is no boundary. She advised the concierge service is provided for Kitchener facilities and businesses only. With respect to the membership program, Ms. Pitfield advised it is available to Waterloo businesses as well. Upon further questioning, Ms. Pitfield advised the City of Waterloo contributes $10,000 to the cost of publishing the K-W Tourism Guide, and Kitchener does not provide any advertising or tourism support for Waterloo unless they pay for it. Several Committee members spoke of a need for a co-ordinated approach for all municipalities with respect to tourism marketing for this area. Ms. Pitfield advised efforts are being made to that end. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 7, 2005 - 43 - CITY OF KITCHENER 7. CAO-05-002 - KW TOURISM YEAR-END REPORT - MEMBERSHIP PROGRAM (CONT'D) Councillor Galloway noted the photograph on the front of the membership pamphlet is of a Waterloo facility and he asked that the photograph be changed. Councillor Gazzola requested past and future financial statements for the tourism function. Mayor Zehr requested that staff provide a chronology of the provision of tourism services. Staff was directed to provide the requested information prior to the March 21 st Council meeting. Mayor Zehr moved the recommendation in the staff report. He agreed with comments from some of the Committee members that tourism services should be provided on an area wide basis; however, some municipalities do not agree with this approach and prefer to provide this service independently. Councillor Gazzola questioned whether the municipality or the industry benefits most from tourism. Ms. Pitfield advised the industry benefits immediately, whereas the municipality benefits over the long term. She also noted the City's facilities also benefit in the short term. Councillor Gazzola advised he will abstain from voting on Mayor Zehr's motion because he believes he does not have enough information; although, he did acknowledge his abstention will count as a "no" vote. On motion by Mayor C. Zehr - it was resolved: "That the City of Kitchener implement a KW Tourism membership program commencing March 1, 2005 based on the rates outlined in the 'KW Tourism Membership Program' pamphlet attached to Chief Administrative Officer report CA©- 05-002; and, That KW Tourism continue to pursue discussions with the City of Waterloo to provide shared services for visitor information; and further, That KW Tourism continue to pursue opportunities to work in partnership with Cambridge Tourism, the City of Waterloo, and industry members, to develop a co- operative destination marketing program." VERBAL UPDATE - CONSOLIDATED MAINTENANCE FACILITY The Committee took this opportunity to again review the proposal previously submitted by staff to construct a consolidated maintenance facility, to be completed by the summer of 2007. The Committee had previously received a comprehensive business case in this regard, dated November 2004. Several members of staff were in attendance to answer any questions the Committee might have. Mr. Sosnoski reminded the Committee that the budget presented with the business case is premised on the City receiving a portion of the Gas Tax revenue. Upon questioning, Mr. Sosnoski responded staff are awaiting Council's direction as to what type of maintenance facility they want to build and where they want to build it. With respect to proposed costs and efficiencies, Mr. Sosnoski advised the costs have been vetted by 2 outside sources, although all 26 efficiencies have not. He stated if the Committee wishes, a 3rd party could be hired to review the costs and efficiencies again. In response, Councillor Galloway stated there should be an independent third party review of all aspects. A discussion took place with respect to the costs of a consolidated maintenance facility as compared to a 2 site facility, and on how the initial costs would be cheaper for a 2 site facility, yet more expensive than a 1 site facility over time. Councillor Gazzola stated a 2 site facility seems a better fit, and raised concerns that the location chosen for a 1 site facility is central to the Region rather than the City. Ms. Houston advised a time/distance study was undertaken which showed a 10% differential overall for the 36 sample trips. She noted the major population growth areas are in the south and west of the City; consequently, the distance differential will reduce over time. Mr. Sosnoski added that staff have not been able to find a 30 acre site at the geographic centre of the City. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 7, 2005 - 44 - CITY OF KITCHENER 8. VERBAL UPDATE - CONSOLIDATED MAINTENANCE FACILITY (CONT'D) Mayor Zehr stated our current facilities are no longer adequate, and the City needs to find an appropriate site that has potential for the future. He agreed that distance and travel time will ultimately be less significant. He suggested the City needs to take a long term view with respect to a consolidated maintenance facility, and the $3M difference buys a lot of long term planning. In response to questions from Mayor Zehr, Mr. Sosnoski advised the following: · the proposed budget for a consolidated maintenance facility is dependent on the amount of Gas Tax the City will receive; · the nearest term problem is that Fleet must be out of the Strasburg Road facility by June 2007, unless the Region is prepared to give a further extension; · to have a maintenance facility constructed by June 2007, requires the project commence by the end of this month or the beginning of April; · all equipment must be removed from the Chandler Drive facility by 2009; although, if necessary, the administration can remain until 2020; · staff have been working on this project with the understanding that Bramm Street will have to be vacated by 2010; and, · completion of a consolidated maintenance facility after 2007 will require Fleet to be moved twice. Mayor Zehr questioned what will have to be done in March/April 2005 to move this project forward. Mr. Sosnoski responded a consultant will have to be retained to prepare a preliminary design, with the involvement of staff and the unions. He anticipated a maximum cost of $500,000 for this part of the process. This part of the process would provide a view of the design on the site and would determine the accuracy of the anticipated efficiencies. Mr. Sosnoski then advised Councillor Weylie has spoken with him and advised she would not be in attendance today or at the March 21st Council meeting. She requested a decision on this matter not be made until her return. Mayor Zehr commented on Councillor Galloway's request for a further peer review, and Mr. Sosnoski advised a study of that sort would be separate from the detailed design. Mayor Zehr requested staff report to Council on how the following processes can take place concurrently: a further peer review, the planning process, and preparation of a detailed design for a consolidated facility on the Maple Leaf lands. Councillor Galloway again articulated his request for another peer review of the business plan. He stated the proposed location is not preferred because of the value of these lands from the point of view of their development potential. He stated the City has plenty of time to consider a 2 site or 1 site facility, and the proposed location is not the right property. Over the next 16- 18 months other properties may come on the market. Further, the $32M expenditure needs further review in the larger context. Councillor Lorentz spoke in support of a consolidated facility on the Maple Leaf lands, stating he was prepared to put forward a motion to that effect. He stated it is time to move forward on this project. Councillor Gazzola stated there has been a lot of forward movement on this project over the last year. He requested an explanation of the difference between the $32M cost and the $25M cost, and stated he is not prepared to approve proceeding with a consolidated maintenance facility at this time. Councillor Smola agreed with Councillor Lorentz comments, and stated there is no other 30 acre site available. Further the existing facilities are very congested, and it is time to move forward with a new facility. MARCH 7, 2005 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 45 - CITY OF KITCHENER VERBAL UPDATE - CONSOLIDATED MAINTENANCE FACILITY (CONT'D) Councillor Vrbanovic spoke in support of a consolidated maintenance facility, suggesting it be a "green" facility. He requested staff investigate what grants may be available to construct a "green" facility. In light of the request made by Councillor Weylie that a final decision not be made on this matter until her return, Councillor Lorentz gave Notice of Motion that he will introduce the following motion at the April 4, 2005 Finance and Corporate Services Committee meeting: NOTICE OF MOTION "That subject to the City receiving confirmation of the receipt of the required Federal Gas Tax revenue, staff be directed to proceed with construction of a Consolidated Maintenance Facility (CMF) at the Strasburg-Huron site for occupancy in the summer of 2007, as outlined in the CMF Business Case dated November, 2004; and further, That notwithstanding the above proviso in relation to the Gas Tax revenue, staff be directed to immediately begin the preliminary design process to facilitate project completion by the summer of 2007." ADJOURNMENT On motion, the meeting adjourned at 3:35 p.m. Dianne Gilchrist Committee Administrator