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HomeMy WebLinkAboutFin & Corp Svcs - 2005-10-31 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 31 2005 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 12:40 p.m. Present: Councillor B. Vrbanovic - Chair Mayor C. Zehr and Councillors G. Lorentz, J. Smola, J. Gazzola, M. Galloway and C. Weylie. Staff: C. Ladd, Chief Administrative Officer P. Houston, General Manager, Financial Services & City Treasurer G. Sosnoski, General Manager, Corporate Services & City Clerk R. Browning, Interim General Manager, Development & Technical Services A. Pappert, General Manager, Community Services L. Proulx, Director of Facilities Management M. Grummett, Director of Information Services & Technology R. Regier, Executive Director of Economic Development R. Pitfield, Director of Communications / Marketing L. MacDonald, City Solicitor F. McCrea, Assistant City Solicitor S. Wright, Manager of Downtown Community Development K. Weiss, Manager of Business Development R. Upfold, Director of Accounting M. Henderson, Supervisor of Asset Management D. Gilchrist, Committee Administrator 1. CRPS-05-159 - ENVIRONMENTAL COMMITTEE RECOMMENDATION - RESIDENTIAL ENERGY EFFICIENCY PROJECT (R.E.E.P.) - REQUEST FOR FINANCIAL SUPPORT The Committee considered Corporate Services Department report CRPS-05-159, dated October 21, 2005, in which the Environmental Committee requests a 2006 budget allocation of $20,000 for the Residential Energy Efficiency Project (REEP). Staff was requested to provide the following information to Council, prior to next Monday night's Council meeting: whether Federal funding for this project has been reduced; whether the Provincial government provides any funding for this project; and whether the City of Kitchener's grant can be reduced. Some members of the Committee spoke in favour of the Residential Energy Efficiency Project, stating it is good for the community, and promotes a reduction in wasteful use of energy. On motion by Councillor G. Lorentz- it was resolved: "That subject to consideration during the 2006 budget deliberations, $20,000. be allocated to the Residential Energy Efficiency Project (REEP), Waterloo Region, as part of the Environmental Committee's 2006 operating budget." 2. DELEGATION PRESENTATION - KITCHENER PUBLIC LIBRARY The Committee considered the report of the Kitchener Public Library Board, dated October 24, 2005, requesting $40,000 be added to the library's Operating Budget, effective January 1, 2006, to allow Kitchener Public Library to enter into agreements with Waterloo Public Library, Cambridge Public Library and Waterloo Regional Library with respect to reciprocal borrowing. Ms. S. Lewis, CEO, Kitchener Public Library, attended this meeting in support of the request. She advised that currently the library charges non-residents an annual fee to use the resources of the Kitchener Public Library, which will no longer be applicable when the reciprocal agreements are in place. The requested $40,000 will compensate for this lost revenue. Ms. Lewis also advised that Kitchener residents already have the privilege of reciprocal borrowing at these other municipal libraries. Ms. Lewis further advised that reciprocal borrowing in intended to supplement existing library services and not replacement them. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 31 2005 -118- CITY OF KITCHENER 2. DELEGATION PRESENTATION - KITCHENER PUBLIC LIBRARY (CONT'D) Several members of the Committee spoke in support of these reciprocal agreements, and the good will this will generate between municipalities. They also thanked the lay members of the Kitchener Public Library Board for the amount of time and effort put into this project. In addition it was noted that Kitchener Public Library did not previously enter in to reciprocal agreements, as other municipalities funded their library systems at a much lower rate per capita than Kitchener. Now library funding in the other municipalities is much closer to that of the City of Kitchener. On motion by Mayor C. Zehr- it was resolved: "That $40,000 be added to Kitchener Public Library's base Operating Budget, effective January 1, 2006, to support Reciprocal Borrowing Agreements with Waterloo Public Library, Cambridge Public Library and the Waterloo Regional Library." 3. CRPS-05-158 - WIFI (WIRELESS FIDELITY) - WIRELESS INTERNET ACCESS IN CITY OF KITCHENER FACILITIES The Committee considered Corporate Services Department report CRPS-05-158, dated October 18, 2005, recommending an agreement between the City of Kitchener and Atria Networks Inc., to allow for wireless internet access in certain City of Kitchener facilities. Mr. S. McCartney, Atria Networks Inc., was in attendance in support of the staff recommendation. He explained the concept and proposal, noting the agreement will be substantially the same as the ones they have with the Cities of Waterloo and Cambridge. On motion by Mayor C. Zehr- it was resolved: "That the Mayor and Clerk be authorized to execute an Access License Agreement with Atria Networks Inc., satisfactory to the City Solicitor, permitting the installation and operation of certain communications equipment in buildings and on land owned by the City of Kitchener." Councillor B. Vrbanovic left the meeting at this time and Councillor Galloway assumed the Chair 4. CRPS-05-160 - WILLIAMSBURG WATER SUPPLY - EXTENSION OF WATERMAIN The Committee considered Corporate Services Department report CRPS-05-160, dated October 21, 2005, recommending the watermain be extended to within 90 metres of the Chapel building at Williamsburg Cemetery, to provide water for fire fighting purposes. Mr. L. Proulx was in attendance to support the staff recommendation and to answer any questions the Committee might have in this regard. With respect to funding, Ms. Houston advised a portion of this project can be funded from the Water Works, but the exact percentage has not yet been determined. On motion by Councillor J. Smola- it was resolved: "That $90,000 be added to the Capital Forecast in 2006 for the extension of the watermain to provide water for fire fighting purposes for the chapel/crematorium at Williamsburg Cemetery, with further consideration referred to the 2006 budget process." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 31 2005 -119- CITY OF KITCHENER 5. DTS-05-182 - BELMONT AVENUE RECONSTRUCTION FUNDING TRANSFER -REQUESTFORADrnnONALFUNrnNG The Committee considered Development and Technical Services Department report DTS-05- 182, dated October 21, 2005, recommending the amount, and source of financing, for the expanded Belmont Avenue Reconstruction Project. Mr. M. Henderson explained this project started as a rehabilitation project on the portion of Belmont Avenue between Union Boulevard north to the boundary with the City of Waterloo; however, as the City of Waterloo was undertaking a reconstruction of Belmont Avenue north from the mutual boundary, the scope of our project expanded to full reconstruction. This reconstruction increased the costs resulting in the recommendation before the Committee this dated. Mr. Henderson also advised that the City of Kitchener portion of the reconstruction project is now complete. On motion by Councillor C. Weylie - it was resolved: "That $250,000.00 be transferred from the Belmont Avenue rehabilitation project's approved funding into the Capital Infrastructure Surplus account; and further, That complete funding for the Belmont Avenue reconstruction project, in the amount of $498,563.30, be paid from the Capital Infrastructure Surplus account." Councillor Vrbanovic re-entered the meeting at this time and resumed the Chair. 6. DTS-05-183 - IRON HORSE TRAIL SANITARY SEWER REPLACEMENT The Committee considered Development and Technical Services Department report DTS-05- 183, dated October 21, 2005, requesting funding for additional consulting fees relating to the Iron Horse Trail Sanitary Sewer Replacement. Mr. Henderson explained additional administration fees were required because the City accepted the lowest tender for this project. Further, he advised this project has been completed, and these consulting fees are appropriate for a project of this size. Mayor Zehr directed staff to establish a system of reporting these types of over-runs so Council can be informed early in the process. Councillor Vrbanovic requested an information report be presented the first meeting of every second month, during the construction season, on costs for each project as compared to the approved budget. On motion by Councillor C. Weylie- it was resolved: "That additional funds of $70,000 (not including G.S.T.) for professional consulting services for the Iron Horse Trail Sanitary Sewer replacement be paid from the Capital Infrastructure Surplus account." 7. CAO-05-039 - HURON BUSINESS PARK INVENTORY UPDATE The Committee considered Chief Administrator's Office report CAO-05-039, dated October 25, 2005, providing information on the remaining saleable land in the Huron Business Park, market, construction, and assessment values. Councillor Lorentz questioned revenues generated by the City's Business Parks, as he would like to be able to compare those figures with Downtown development. Ms. Ladd advised that a study was undertaken on the impact of Huron Business Park, which can be reviewed and amended, and the same template can be used for the Downtown. Mayor Zehr commented on a map of the Huron Business Park provided to Committee members by staff, requesting that the information on the map be updated. Councillor Lorentz spoke of the need to improve and maintain the appearances at entrances to the City's Business Parks, specifically in reference to the two auto wreckers properties at the entrance to the Lancaster Corporate Centre. He questioned whether the City could FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 31 2005 - 120 - CITY OF KITCHENER 7. CAO-05-039 - HURON BUSINESS PARK INVENTORY UPDATE (CONT'D) purchase or expropriate these lands. Ms. McCrea advised she was not certain whether a municipality can expropriate land in order to re-sell it; however, she will investigate this matter. On motion by Councillor G. Lorentz- it was resolved: "That the inventory of available land in Huron Business Park, and market, construction and assessment values, as contained in Chief Administrator's Office report CAO-05- 039, be received as information only." 8. CRPS-05-157 - PRE-BUDGET APPROVAL - PURCHASE OF ELECTION TABULATION EQUIPMENT & SERVICES The Committee considered Corporate Services Department report CRPS-05-157, dated October 13, 2005, recommending pre-budget approval for the rental/licensing, maintenance and election night support for tabulation and software for the 2006 Municipal Election. Mr. Sosnoski advised Kitchener has worked together with Cambridge and Waterloo in order to get the best price / support on a lease or buy option. He noted there is little difference between the cost of renting or buying. Further, the main reason to replace the current tabulation system is the lack of available of parts. On motion by Councillor G. Lorentz- it was resolved: "That pre-budget approval be given in the amount of $78,921. relative to the rental / licensing, maintenance and election night support for tabulation equipment and software for the 2006 Municipal Election, with $32,661. of this amount to be redirected from within the Election Reserve Fund and with the remaining $46,260. added as new funding." 9. CAO-05-037 - FINANCIAL INCENTIVES POLICY The Committee considered Chief Administrator's Office report CAO-05-037, dated October 17, 2005, recommending Council Policy 1-535 (Downtown Building Fac;;ade / Interior Loan Program) be repealed, and replaced with a new Financial Incentives Program which will be a combined fac;;ade, interior loan and upper storey renovation program in the form as attached to the staff report. Ms. Wright noted the last time this report came to Committee, the existing policy was not provided for comparison. Also, staff have now provided a copy of Council Policy 1-540 (Downtown Financial Incentives) which is a companion program. Ms. Wright and Mr. Regier reviewed application deadlines for these financial incentives. With respect to early loan repayment, Ms. Upfold advised the maximum repayment period of the loan is 10 years, and the forgivable portion remains on the books for the same period of time. If the loan is re-paid over a shorter period of time, the forgivable portion will remain on the books for the originally agreed to life of the loan. In response to a question from Councillor Gazzola, Ms. Wright advised that there is no interest charge during the first two years of these loans in order to provide the greatest incentive possible at the beginning of the process. It was noted by staff, in response to questions from the Committee, that a property owner could be entitled to receive more than one loan for the same project on the same property, as they could qualify for loans under more than one loan program. However, Ms. Wright advised the total of the loans may not exceed the value of the project. Ms. Upfold advised that applications are reviewed and evaluated, and those with the highest scores are the first to receive loans. The application forms and accompanying information lets the applicant know what the City requires. Ms. Wright added that if the Committee wishes, the scoring criteria can be shared with the applicants. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 31 2005 - 121 - CITY OF KITCHENER 9. CAO-05-037 - FINANCIAL INCENTIVES POLICY (CONT'D) On motion by Councillor M. Galloway - it was resolved: "That the following recommendation put forward through Chief Administrator's Office report CAO-05-037 (Financial Incentives Policy), be deferred and referred to the Council meetina of November 7 2005 to allow staff to present scenarios as to funding for small and large projects, and an estimate of the effect on loan applicants if the City charges a low rate of interest on these loans during the first two years: 'That Council Policy 1-535 (Downtown Building Fac;;ade - Interior Loan Program) be repealed and replaced with the draft Policy (Combined Fac;;ade / Interior Loan / Upper Storey Renovation Program), attached to Chief Administrator's Office report CAO-05-037; and further, That the Executive Director of Economic Development be authorized to grant or refuse all applications for loans under the Combined Fac;;ade / Interior Loan / Upper Storey Renovation Program, based on the conditions and criteria established for this program, and to execute all necessary resulting documentation, to the satisfaction of the City Solicitor.''' 10. FIN-05-034 - PROJECT PROPOSAL - CORPORATE INTEGRATED FINANCIAL SYSTEM The Committee considered Financial Services Department report FIN-05-034, dated October 14, 2005, presenting a proposal to obtain an Integrated Financial System for the Corporation. The report also recommends an allocation in the Capital Forecast for this purpose. Ms. Upfold reviewed the project proposal as attached to the staff report. Mayor Zehr questioned the length of time to complete the process, Ms. Upfold responding that the consultation will take the best part of a year, followed by negotiations and a year of implementation. When questioned as to whether a dedicated staff person would shorten the time, Mr. Grummett responded two IT staff people will be dedicated to this project, along with other staff. Mayor Zehr directed the project move forward as quickly as possible. Ms. Upfold reviewed the major problems with the existing system, including that fact that in the next few years the current system will not be supported, and there is no ability to make improvements to the current system or to improve business practices. Ms. Upfold then identified the costs of this project. Costs of $150,000 in 2006 will pay for the preparation of the Business Case; 2007 costs of $1.4M will cover staffing, licensing and hardware costs. The actual overall cost for the project will depend on the vendor chosen. On motion by Mayor C. Zehr- it was resolved: "That the Corporate Integrated Financial System Project Proposal as contained in Financial Services Department report FIN-05-034 be approved, and the related estimated project funding of $ 3,200,000 be included in the 2006 Capital Forecast for consideration during the 2006 Capital Budget Review Process." 11. ADJOURNMENT On motion, the meeting adjourned at 3:00 p.m. Dianne Gilchrist Committee Administrator