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HomeMy WebLinkAboutFin & Corp Svcs - 2005-08-22 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES AUGUST 22 2005 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 2:00 p.m. Present: Councillor M. Galloway - Vice-Chair Councillors G. Lorentz, J. Smola and C. Weylie. Councillor J. Gazzola was in attendance for part of the meeting. Staff: G. Sosnoski, Acting Chief Administrative Officer P. Houston, General Manager, Financial Services & City Treasurer G. Stewart, General Manager, Development & Technical Services R. Gosse, Director of Legislated Services D. Paterson, Director of Human Resources H. Gross, Director of Project Administration & Economic Investment R. Upfold, Director of Accounting R. Regier, Director of Economic Development J. Sheryer, Assistant City Solicitor S. Allen, Design & Construction Engineer S. Wright, Manager, Downtown Community Development J. MacDonald, Economic Development Technical Analyst S. Curzon, Downtown Service Administrator R. Morgan, Capital Investment Advisor C. Goodeve, Committee Administrator J. Billett, Committee Administrator 1. CRPS-05-125 - REQUEST FROM KITCHENER CHARITIES BINGO ASSOCIATION TO OPERATE A PROGRESSIVE JACKPOT GAME The Committee was in receipt of Corporate Services Department report CRPS-05-125, dated August 10, 2005 regarding an application by Kitchener Charities Bingo Association for permission to operate a progressive bingo. On motion by Councillor G. Lorentz- it was resolved: "That the City of Kitchener has no objection to a Provincial Licence being issued to the Kitchener Charities Bingo Association to conduct a $5,000. Progressive Bingo game on an ongoing basis, commencing September 5,2005." 2. CRPS-05-124 - REQUEST FOR FOOD SALE - TWIN CITIES TACKLE FOOTBALL - CENTENNIAL STADIUM - SEPTEMBER 3 2005 The Committee was in receipt of Corporate Services Department report CRPS-05-124, dated August 10, 2005 regarding a request by Twin Cities Minor Tackle Football Association to sell refreshments at their opening game. On motion by Councillor G. Lorentz- it was resolved: "That the request of the Twin Cities Minor Tackle Football Association to sell refreshments at their opening game on September 3, 2005 at Centennial Stadium, 400 East Avenue, be approved, provided the necessary licence is obtained, including Health and Fire approval." 3. CAO-05-030 - APPRENTICESHIP PROGRAM The Committee was in receipt of Chief Administrator's Office report CAO-05-030, dated August 15, 2005 regarding an agreement to expand the City's Apprenticeship Program. On motion by Councillor G. Lorentz- it was resolved: "That agreement in principle be given to expanding the City's existing Apprenticeship Program and that the matter be referred to the 2006 Operating Budget discussions." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES AUGUST 22 2005 - 94- CITY OF KITCHENER 4. CAO-05-031 - AMENDMENT TO ORACLE / PEOPLESOFT CONTRACT The Committee was in receipt of Chief Administrator's Office report CAO-05-031, dated August 15, 2005 regarding an amendment to an agreement for provision of Oracle / Peoplesoft software and updates. On motion by Councillor G. Lorentz- it was resolved: "That the Mayor and Clerk be authorized to execute an amendment to the Corporation of the City of Kitchener's contract with Oracle Corporation Canada Inc. for the Perpetual License Agreement, substantially in the form of the draft amendment attached to Chief Administrator's Office report CAO-05-031, and satisfactory to the City Solicitor." 5. CRPS-05-099 - DOG DESIGNATION APPEAL COMMITTEE - LAY MEMBER STIPEND The Committee was in receipt of Corporate Services Department report CRPS-05-099, dated July 7, 2005 recommending that lay member(s) of the Dog Designation Appeal Committee receive a $100. stipend per meeting, retroactive to January 1,2005. Mr. C. Goodeve advised that the Kennel Club representative to the Dog Designation Appeal Committee recently moved out of the City and now incurs travel expenses to and from Committee meetings. Given stipends are paid to lay members of other quasi-judicial bodies, the Committee is requesting similar consideration for services rendered by its lay member(s). Mr. Goodeve advised that the amount of stipend was based in part on the distance traveled by the lay member. Councillor J. Smola added that the lay member is relied upon for expert advice and is a necessary component of the Committee's deliberations. On motion by Councillor J. Smola - it was resolved: "That the lay member(s) of the Dog Designation Appeal Committee receive a $100. stipend per meeting to be paid retroactively from January 1, 2005, for all meetings attended." 6. DTS-05-144 - EXTENSION OF PURCHASE ORDER #0400650 - ZELLER DRIVE SEWAGE PUMPING STATION The Committee was in receipt of Development and Technical Services Department report DTS-05-144, dated August 12, 2005 requesting an extension to the Purchase Order for construction of the Zeller Drive sewage pumping station to facilitate payment of anticipated extra costs resulting from construction delays encountered due to extremely difficult sub- surface conditions unidentified by the original geo-technical investigation. It was noted in the agenda that any recommendation from this Committee will be considered at the special Council meeting to be held later this date. On motion by Councillor C. Weylie - it was resolved: "That Purchase Order #0400650, dated July 2, 2004 to Sierra Construction Ltd. be extended from its original amount of $3,636,716. to $4,805,977.70, including GST, to facilitate payment of the anticipated extras, being an extension of the Purchase Order to a maximum amount of $1,169,261.70. " Councillor J. Gazzola entered the meeting at this time. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES AUGUST 22 2005 - 95- CITY OF KITCHENER 7. CAO-05-018 - 2004 DOWNTOWN MONITORING REPORT The Committee was in receipt of Chief Administrator's Office report CAO-05-018, dated June 20, 2005 which provides an annual progress and economic performance report of the downtown and surrounding neighbourhoods. Ms. S. Wright and Ms. J. MacDonald presented details of the report, highlighting key projects underway as a result of approval of the $110 M Economic Development Investment Fund, and statistics related to population, development and business activity within the downtown. Future major initiatives include plans for a new central library, partnerships with two universities and parking solutions. Although not immediately measurable, 2004 activities are already showing positive results with increases in new residential units and stable employment rates. Ms. MacDonald concluded that the decisions made in 2004 have set the tone for positive momentum in 2005. Ms. MacDonald responded to questions, commenting on economic spin-offs realized by attendance at downtown events and factors attributed to a decrease in the number of downtown businesses. At the request of Councillor J. Gazzola, it was agreed that staff would include statistics as to the impact on downtown assessment in the 2005 Downtown Monitoring Annual report. 8. FIN-05-026 - BANKING SERVICES The Committee was in receipt of Financial Services Department report FIN-05-026, dated August 10, 2005 concerning results of a Request for Proposals (RFP) for banking services and recommending that the City's current banker, CIBC, be appointed as the City's banker for a term of 5 years (September 1, 2005 to August 31, 2010), with an option to re-negotiate the agreement for an additional 5 years. The proposed banking agreement will result in an annual savings of approximately $50,000. in banking services. Ms. P. Houston and Ms. R. Upfold responded to questions, advising that the Bank of Montreal was the City's banker prior to CIBC, but did not submit a proposal under the City's RFP process. Staff agreed to make inquiries with the Bank of Montreal as to why a proposal was not submitted. It was also noted that the proposal by CIBC is comparable to other banks that submitted a proposal; however, in considering the time and costs associated with conversion to another bank, staff are recommending continuing with CIBC for banking services. In addition, the option to re-negotiate an additional 5 year term is proposed due to the lengthy process to issue an RFP and analyse the proposals. Staff added that if at the end of the first 5 year term re-negotiation appears not to be feasible with CIBC, then consideration will be given to proceeding with issuing an RFP. Councillor M. Galloway advised that the report this date was intended only to provide background information pending a recommendation that will come forward at the August 29, 2005 Council meeting as part of the tender reporting process. 9. CAO-05-022 - GRAND RIVER WEST BUSINESS PARK - CEDARVIEW PLACE CONSTRUCTION The Committee was in receipt of Chief Administrator's Office report CAO-05-022, dated August 4, 2005 recommending that the City front-end capital funding for construction of Cedarview Place, on a cost recovery basis by the developers, as the second phase of the Grand River Business Park - Shirley Drive Extension Business Case partnership. Mr. H. Gross advised that a request was made by the developer to extend an agreement to allow the existing consultant and contractor to continue their work to construct Cedarview Place. Mr. Gross noted that of the 11 lots created through Phase I of this partnership, 6 have been sold and 4 of the remaining 5 lots have Offers to Purchase pending. Similar to Phase I, the City would front-end costs for the second phase, resulting in 8 additional lots created, and then recover full construction cost, with interest, through a lot frontage assessment payable at the time each lot is sold. At the request of Councillor J. Gazzola, Mr. Gross provided clarification of the re-payment schedule and interest rates to be applied over a 3 year term. Councillor Gazzola pointed out that the actual funding to be approved should be $668,457.36, with the total of $732,000. to be achieved through interest accrued on re-payment of the loan. Accordingly, it was agreed to FINANCE & CORPORATE SERVICES COMMITTEE MINUTES AUGUST 22 2005 - 96- CITY OF KITCHENER 9. CAO-05-022 - GRAND RIVER WEST BUSINESS PARK - CEDARVIEW PLACE CONSTRUCTION (CONT'D) revise the staff recommendation to reflect an actual capital funding of $668,457.36. It was noted that other lending institutions charge interest rates of 6.25 - 6.5% as opposed to the City's rate of 4.75%. Mr. Gross pointed out that the purpose of the City's lending concept is to promote employment land development and the current sale price per acre, as compounded by a higher interest rate, would not make it financially feasible for developers. On motion by Councillor C. Weylie - it was resolved: "That capital funding of approximately $668,457.36 be approved for the construction of Cedarview Place including utilities, within Registered Plan 1677; and further, That the Mayor and Clerk be authorized to execute an agreement with the developer to provide for recovery of the costs to construct Cedarview Place on terms and conditions satisfactory to the City Solicitor." 10. ADJOURNMENT On motion, the meeting adjourned at 2:35 p.m. Janet Billett, AMCT Committee Administrator