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HomeMy WebLinkAboutFin & Corp Svcs - 2005-05-16 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MAY 16 2005 The Finance and Corporate Services Committee met this date, commencing at 2:10p.m. Present: Councillor B. Vrbanovic - Chair Mayor C. Zehr and Councillors C. Weylie, J. Smola, J. Gazzola, and M. Galloway. Staff: C. Ladd, Chief Administrative Officer P. Houston, General Manager, Financial Services & City Treasurer K. Currier, Acting General Manager, Community Services G. Stewart, General Manager, Development & Technical Services R. Browning, Fire Chief R. Gosse, Director of Legislated Services R. Pitfield, Director of Corporate Communications/Marketing H. Gross, Director, Project Administration / Economic Investment D. Miller, Director of Fleet R. Shamess, Director of Engineering Services J. Sheryer, Assistant City Solicitor P. Harris, Acting Manager of Licensing S. Wright, Manager of Downtown Community Development D. Ross, Senior Planner J. Billett, Committee Administrator 1. CRPS-05-089 - REQUEST FOR FOOD VENDORS ON CITY PROPERTY - KITCHENER DOWNTOWN BUSINESS ASSOCIATION - KING STREET WEST - JUNE 22 TO 25 2005 The Committee was in receipt of Corporate Services Department report CRPS-05-089, dated May 10, 2005 concerning a request by the Kitchener Downtown Business Association (KDBA) to locate food vendors on City property. At the request of Ms. P. Harris on behalf of the KDBA, it was agreed to change the location across from 125 King Street West to the corner of Charles Street and Queen Street South. On motion by Councillor M. Galloway- it was resolved: "That the request of the Kitchener Downtown Business Association (KDBA) to locate one food vendor on City property at the corner of Charles Street and Queen Street South, on June 22-25, 2005 be approved, provided the necessary licence is obtained, including Health approval; and further, That the request of the KDBA to have Dickie Dee Ice Cream sell ice cream along King Street on June 22-25, 2005 be approved, provided the necessary licence is obtained, including Health approval." 2. CRPS-05-088 - REQUESTS FOR VARIOUS DOWNTOWN EVENTS IN 2005 - FOOD & MERCHANDISE VENDORS AND SALE OF ALCOHOL - EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - DECLARATIONS OF "COMMUNITY FESTIVALS" AND "MUNICIPAL SIGNIFICANCE" The Committee was in receipt of Corporate Services Department report CRPS-05-088, dated May 9, 2005 recommending approvals to allow sales to take place on City property and designation of "Community Festivals" or "Municipal Significance" for various events to take place in the Downtown during 2005. On motion by Councillor M. Galloway- it was resolved: "That the request for the sale of food and/or merchandise on City property during various events being conducted from June to December 2005, listed on Schedule 'A' of Corporate Services Department report CRPS-05-088 be approved, provided the necessary licences are obtained, including Health and Fire approval; and, FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MAY 16 2005 - 69- CITY OF KITCHENER 2. CRPS-05-088 - REQUESTS FOR VARIOUS DOWNTOWN EVENTS IN 2005 - FOOD & MERCHANDISE VENDORS AND SALE OF ALCOHOL - EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - DECLARATIONS OF "COMMUNITY FESTIVALS" AND "MUNICIPAL SIGNIFICANCE" (CONT'Dl That the request for an exemption from Chapter 450 (Noise) of the Municipal Code for the events listed on Schedule 'B' of report CRPS-05-088 be granted; and further, That the request for permission to sell alcohol on City property for the events listed on Schedule 'c' of report CRPS-05-088 be granted and be declared 'Community Festivals' for the purpose of applying for a liquor licence, excepting the Canadian National Strongman Competition to be held August 27 & 28, 2005 in Victoria Park which shall be declared an event of 'Municipal Significance' as it is a National competition." 3. CAO-05-008 - CENTRE BLOCK PROJECT & NEW CENTRAL PUBLIC LIBRARY - PUBLIC-PRIVATE PARTNERSHIP PROCUREMENT POLICY GUIDELINES - KITCHENER PUBLIC LIBRARY REPORT - CENTRAL LIBRARY PROJECT UPDATE - BACKGROUND INFORMATION RE: PREVIOUS DECISIONS OF COUNCIL The Committee was in receipt of Chief Administrator's Office report CAO-05-008, dated May 11, 2005 recommending approval of the new central library project to be located on the Centre Block site and funding of $32.5 M for the project; and in addition, the hiring of an architect; adoption of a Public-Private Procurement Policy Guidelines; and establishment of a Centre Block Steering Committee to act as a Project Committee to undertake the procurement process and develop Terms of Reference for the Centre Block development. A copy of the Public-Private Partnership Procurement Policy Guidelines, as well as previous decisions of Council and related staff reports, was also attached for information of the Committee. The Committee was also in receipt of a report prepared by the Kitchener Public Library (KPL), dated May 5, 2005 summarizing actions taken by the KPL in response to resolutions of Council and asking for approval to hire an architect to review the building program and develop a schematic design for the Terms of Reference and public consultation. Ms. Sonia Lewis, CEO, KPL, spoke on behalf of the KPL Board and library staff, advising that since presenting its Business Case for a new central library, the KPL has undertaken a number of initiatives in response to Council's direction and is now asking that 2 recommendations be considered to assist this project in moving forward. Firstly, she asked that approval be given to hire an architect or consulting team to finalize the building program, prepare drawings to illustrate the functional program, participate in a public open house and prepare cost estimates to ensure the project remains on budget. She emphasized the drawings are intended to provide a visual representation of the building specifications rather than what the building will look like and these are essential to the public consultation process. Secondly, she asked that the City approve the $32.5 M required for the project to send a strong message to potential partners. She acknowledged that the KPL will have to pursue funding options, such as partners and fundraising, to cover the shortfall in projected costs, which have increase from $26 - 36 M to $44 - 51 M. She emphasized that the KPL understands that subsequent approvals, regarding requests for proposals, are required prior to any commencement of construction. Messrs. Ray Robinson, Hans Pottkamper and Craig Robson spoke on behalf of the Centre Block Steering Committee advising that the Committee wishes to go out to the development industry with a definitive proposal that will meet the proposed budget and specifications of the KPL. Mr. R. Robinson pointed out that the Steering Committee has a strong desire to include a significant residential component on the Centre Block site, if feasible. Mr. H. Pottkamper advised that over and above the $32.5 M, the Steering Committee is seeking a commitment to allow proceeds from the sale of the existing library and funds raised by KPL to be used for the new main library project and that the project be exempt from development charges and GST assessment. Mr. Pottkamper also stressed that any drawings prepared by an architect at this time should be based on functional specifications only as opposed to a concept design. Mr. C. Robson stated that the Steering Committee favours a new central library as an integral part of the centre block development and is committed to ensure the development industry FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MAY 16 2005 - 70- CITY OF KITCHENER 3. CAO-05-008 - CENTRE BLOCK PROJECT & NEW CENTRAL PUBLIC LIBRARY - PUBLIC-PRIVATE PARTNERSHIP PROCUREMENT POLICY GUIDELINES - KITCHENER PUBLIC LIBRARY REPORT - CENTRAL LIBRARY PROJECT UPDATE - BACKGROUND INFORMATION RE: PREVIOUS DECISIONS OF COUNCIL (CONT'Dl understands and is respectful of the limits of the project budget; and to undertaking effective fundraising. Fire Chief R. Browning acknowledged the work completed by the KPL, Centre Block Steering Committee and City Staff to date, advising that staff are recommending the City proceed with development of a new central library on the Centre Block site. He stated that the Public- Private Partnership Procurement Policy establishes the guidelines on which the Terms of Reference for an RFP will be developed and will not be limited to a new library but rather encompass full development of the Centre Block. He pointed out that there are a number of City-owned buildings situate on the site and decisions as to their disposition relative to the development will have to be made. He added that it is intended to explore potential partners that will fit in with, or be in addition to, a new central library. The Committee then entered into discussion during which the delegations and City Staff responded to a number of questions, advising of the following: · the $32.5 M would be utilized at the earliest between 2008 to 2010; the timing of which depends on timing of 2 other projects slated for funding from the Economic Development Investment Fund; · the KPL fully understands that the $32.5 M may be the extent of the City's funding commitment and any shortfall will have to be covered by the KPL through partnering and fundraising; · the RFP process is to result in a short list of 2, at which time an agreement will be entered into with the candidates and will include a set dollar amount to be paid to the second runner-up, with permission rights given to the City to use all ideas put forward by either candidate; · any financial information required to be supplied by selected participants will be reviewed in confidence only by the City's Treasurer and the Treasurer will provide only generalized information to the Project Committee; · the KPL has taken initial steps in developing a framework for a fund raising campaign and is of the opinion that it is important to undertake a feasibility study to identify potential targets; · if at the end of the RFP process a suitable candidate is not found, a decision will have to made as to whether or not to proceed with the project; · staff will give consideration to applying more than 20% weighting to financial resources; · qualifications, expertise and past performance of candidates will undergo substantial evaluation and verification; · the specification drawings and public consultation process is expected to take up to 6 months, followed by the RFP process in the spring of 2006; the evaluation period for proposals is expected to take 3 to 4 months with completion of final drawings by the selected candidate to follow within approximately 6 months; and once begun, construction is expected to be completed within 2 years or less. Mayor C. Zehr commented that the staff recommendation did not appear to indicate that approval this date is conditional on other outstanding matters coming back for Council approval. Fire Chief R. Browning noted that the fourth paragraph of the recommendation makes reference to the Terms of Reference requiring both KPL and Council approval prior to proceeding with the RFP process. Ms. C. Ladd suggested and it was agreed, that an additional paragraph be added to the staff recommendation to indicate that following approval of the Terms and Reference and conclusion of the RFP process, resulting proposals will be forwarded to Council for review and approval; and only after which, a final decision would be made as to whether or not the project will proceed to the construction phase. At the request of Councillor J. Gazzola, it was agreed to also revise the staff recommendation to include direction to staff to provide a membership list of those who will form the Project Committee prior to the May 30 Council meeting. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MAY 16 2005 - 71 - CITY OF KITCHENER 3. CAO-05-008 - CENTRE BLOCK PROJECT & NEW CENTRAL PUBLIC LIBRARY - PUBLIC-PRIVATE PARTNERSHIP PROCUREMENT POLICY GUIDELINES - KITCHENER PUBLIC LIBRARY REPORT - CENTRAL LIBRARY PROJECT UPDATE - BACKGROUND INFORMATION RE: PREVIOUS DECISIONS OF COUNCIL (CONT'Dl Councillor J. Gazzola expressed disappointment that discussions with the Waterloo Public Library (WPL) regarding a joint central library were unsuccessful and inquired if any possibility exists to resume discussion; either to pursue a joint central library or to utilize the new proposed main library in Kitchener as a branch facility for Waterloo. Ms. Sonia Lewis advised that the WPL has made it clear it intends to continue with development of branch libraries and rejuvenation of its main library facility, and has no interest at this time in pursuing a joint facility with Kitchener. She added that notwithstanding, the 2 libraries are continuing to explore co- operative opportunities for service improvements. On motion by Councillor J. Smola, the recommendation contained in staff report CAO-05-008 was brought forward for consideration, as amended this date to include provision that the Terms of Reference and proposals received as a results of the RFP process will be forwarded to Council for review and approval prior to a final decision being made to proceed with the construction phase of this project; and a membership list of those who will form the Project Committee, be provided to Council prior to the May 30 Council meeting. Councillor J. Smola advised that he was in full support of committing the $32.5 M for this project and looked forwarded to the participation of the development community, businesses and residents in making this important project a success. Councillors M. Galloway and B. Vrbanovic spoke in favour of the motion, giving their full support to the project and commenting that it marks the next logical steps in terms of major decisions to be made for the Downtown. Councillor J. Gazzola spoke in opposition to the motion, questioning the need to give approval at this time as the City has already committed $32.5 M within the Economic Development Investment Fund for the project. He expressed the opinion that more information is needed to determine how this project fits in with other capital projects under review and added that he would like to see discussions with the WPL continue to determine if there is still potential to pursue a partnership. Mayor C. Zehr commented that while disappointing, discussions with WPL have been exhausted and having substantially debated all aspects of the project, suggested it was now time for a decision to made based on the information at hand to assist in moving the project forward. The following motion was Carried on a recorded vote, with Mayor C. Zehr and Councillors J. Smola, B. Vrbanovic, M. Galloway and C. Weylie all voting in favour and Councillor J. Gazzola voting in opposition. Councillor G. Lorentz was not present this date and accordingly, did not vote. On motion by Councillor J. Smola - it was resolved: "That the new central library project to be located on the Centre Block site and $32.5M to fund the project, be approved, as outlined in the Kitchener Public Library Report (KPL) KPL Central Librarv Proiect Uodate, dated May 5, 2005; and, That the hiring of an architect or consulting team, be approved, to review and finalize the building program (functional design); develop a schematic design; participate in a public open house and prepare detailed project cost estimates for Kitchener Public Library's proposed new central library; and, That the policy, Public-Private Partnership Procurement Policy Guidelines attached to Chief Administrator's Office report CAO-05-008, dated May 11, 2005, be adopted; and, FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MAY 16 2005 -72 - CITY OF KITCHENER 3. CAO-05-008 - CENTRE BLOCK PROJECT & NEW CENTRAL PUBLIC LIBRARY - PUBLIC-PRIVATE PARTNERSHIP PROCUREMENT POLICY GUIDELINES - KITCHENER PUBLIC LIBRARY REPORT - CENTRAL LIBRARY PROJECT UPDATE - BACKGROUND INFORMATION RE: PREVIOUS DECISIONS OF COUNCIL (CONT'Dl That the Centre Block Steering Committee be established as a project committee as identified in the above noted Procurement Policy and be requested to continue their work in the procurement process to attract a private sector partner by developing terms of reference for the development of the Centre Block which would include a new central library for review and approval by the KPL Board and City Council as soon as possible but no later than November, 2005, with the said Terms of Reference to include among other things, consideration of the following: · disposition and/or use of all the City-owned buildings on the block including the Forsyth, Mayfair and Legion Buildings and those properties addressed as 156-158 King Street West; · exploration of other potential partners with or in addition to the new Central Library as compatible retailers, art gallery, product and material suppliers; · possible inclusion of the Kaufman Steam Engine (Hazel) for public display; and, · parking for new development on the Centre Block; and, That a final decision to proceed to the construction phase of this project will be made by Council only after such time as the Terms of Reference for the Request for Proposal (RFP), and the RFP proposals received, have been considered and approved by Council; and further, That prior to the May 30, 2005 Council meeting, staff provide the membership list for the Centre Block Steering Committee that is to be established to act as a project committee." 4. DTS-05-086 - REQUEST FOR ADDITIONAL FUNDING - UPPER BLAIR CREEK FUNCTIONAL DRAINAGE STUDY AND TRANSPORTATION STUDY The Committee was in receipt of Development and Technical Services Department report DTS-05-086, dated May 10, 2005 recommending approval of additional funds required to complete the Upper Blair Creek Functional Drainage Study and Transportation Study. On motion by Councillor C. Weylie - it was resolved: "That additional funds in the amount of $8,750. plus GST, required for completion of the Upper Blair Creek Functional Drainage Study and Transportation Study, be approved and be funded from the engineering study component of the Development Charges Fund." 5. CAO-05-014 - MODIFICATIONS TO THE FACADE LOAN INCENTIVE PROGRAM The Committee was in receipt of Chief Administrator's Office report CAO-05-008, dated May 11, 2005 recommending modifications to the Fagade Loan Incentive Program relative to early repayment of outstanding balances and interest rates for new Fagade Loans. Councillor B. Vrbanovic left the meeting at this time and Councillor M. Galloway assumed the Chair. Councillor J. Gazzola questioned the rationale of decreasing the interest rate for new loans from 8% to 0% as opposed to establishing a lesser incremental decrease. Ms. P. Houston advised that interested applicants have declined loans on the basis that an 8% interest rate is too high. Mayor C. Zehr pointed out that Appendix 'A' to the staff report indicates that the 0% interest rate applies only to the first 2 years of the program and the remaining 3 years are subject to the Bank of Canada prime rate plus .5%. Ms. S. Wright stated that this was correct and that FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MAY 16 2005 - 73- CITY OF KITCHENER 5. CAO-05-014 - MODIFICATIONS TO THE FACADE LOAN INCENTIVE PROGRAM (CONT'Dl the intent is to align the Fagade Program with the interest rates applied to the Upper Storey Renovation Program. At the request of Mayor C. Zehr, it was agreed to revise the staff recommendation to clarify how the interest rate will be applied over the 5 year period of the Fagade loan. On motion by Mayor C. Zehr - it was resolved: "That modifications to the Fagade Loan Incentive Program be approved, as follows: · early repayment of outstanding balances for all Facade loans will be permitted, subject to repayment of the grant portion not yet forgiven being required only if the property is sold before the end of the term of the loan; and, · the interest rate for all new Facade loans, issued prior to the approval of a combined Upper Storey Renovation/Facade Loan Program, will be 0% for the first 2 years of the program and the remainder of the program (years 3 to 5) will be at Bank of Canada prime plus .5%." 6. FIN-05-018 - FLEET VEHICLE / EQUIPMENT REPLACEMENT PROCESS The Committee was in receipt of Financial Services Department report FIN-05-018, dated May 5, 2005 outlining various aspects of Fleet vehicle / equipment replacement processes and depreciation statistics. Mr. D. Miller advised that his presentation this date was in response to direction given to staff at the January 31, 2005 Finance and Corporate Services Committee meeting to provide information on depreciation rates used for the Equipment Reserve Fund. Mr. Miller reviewed statistical charts and outlined vehicle / equipment replacement procedures to demonstrate how depreciation rates are devised and their impact to the Reserve Fund. Based on 2004 actual overhead, it was pointed out that $15.5 M depreciation was recovered to the Reserve Fund and $9.1 M depreciation is owing to date; and the minimum balance of the Reserve Fund should be at least 50% of the recovered depreciation at $7.7 M with the average balance from 2002 - 2009 estimated at $5.7 M. Councillor B. Vrbanovic re-entered the meeting during this presentation and assumed the Chair. Councillor J. Gazzola requested clarification as to the impact operating costs have on the Equipment Reserve Fund. Ms. P. Houston advised that while operating costs are funded from the Reserve they are in turn charged backed to the appropriate department and accordingly, have no impact to the Reserve Fund. At the request of Councillor J. Gazzola, Mr. D. Miller agreed to provide a 10 year history of new equipment purchases and the depreciation charged to the Reserve Fund. 7. ADJOURNMENT On motion, the meeting adjourned at 3:45 p.m. Janet Billett, AMCT Committee Administrator