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HomeMy WebLinkAboutFinance & Corp - 2001-10-29FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 29, 2001CITY OF KITCHENER The Finance and Corporate Services Committee met this date, chaired by Councillor J. Ziegler, commencing at 2:08 p.m., with the following members present: Mayor C. Zehr and Councillors M. Galloway, G. Lorentz, J. Smola, B. Vrbanovic and C. Weylie. Others Present: Ms. P. Houston, Ms. L. MacDonald, Ms. C. Ball, Ms. B. Baker, Ms. R. Upfold, Ms. J. Hutchison, Ms. D. Gilchrist and Messrs, J. Fielding, R. Pritchard, R. Gosse, D. Paterson, O. den Ouden, L. Gordon, B. Stanley, G. Borovilos and R. LeBrun. 1. CRPS-01-195-REQUEST FOR EXTENSION -TAX SALE PROCEEDINGS -JOHN ZIVANOVIC HOLDINGS LIMITED The Committee was in receipt of Corporate Services Department report CRPS-01-195, dated October 24, 2001, with respect to a request received from Mr. Joseph Ward, solicitor for John Zivanovic Holdings Limited, for an extension in time to pay the cancellation price with respect to tax arrears certificates registered on November 23, 2000, on numerous lots in Registered Plan 1773. A copy of a letter received from Mr. Ward, dated October 16, 2001, is attached to the staff report. Mr. Ward advised that he is representing the request of his client, the owner of Registered Plan 1773, formerly known as the Bridgeport Drive-In, for an extension of time to pay the cancellation price pursuant to the Municipal Tax Sales Act. He explained that his client has been through five years of litigation with respect to these lands, noting that all the lands have now been returned to John Zivanovic Holdings Limited. During the litigation period the owner did not want to pay the taxes on these lands until ownership had been determined by the court. Mr. Ward then explained that there are six houses on these lands which have now had final inspections and can be sold. The proceeds of the sale of these houses would be approximately equal to the value of the tax arrears, including interest and penalties. The property owner will pay the cancellation price upon the sale of these houses, which Mr. Ward estimated would take approximately six months to close. After these houses have sold, the owner will still own 65 lots in the registered plan with no tax arrears. He asked that his client be given six months to pay the cancellation price with respect to the tax arrears certificates. He suggested that there is no disadvantage to the City of Kitchener to allow a six month extension, as interest and penalties continue to accumulate and will have to be paid as part of the cancellation price. Councillor John Smola put forward a motion to allow the owner a six month extension. He noted that the situation over the last five years has been very frustrating to all involved, and he stated that he could agree to the owner’s request for a six month extension if this situation could be resolved. Mayor Zehr questioned whether, if the City grants the extension as requested, there would be a commitment on the part of the owner to maintain these properties. Mr. Ward gave his commitment to urge his client to do so. On motion by Councillor J. Smola – it was resolved: “That, at its November 5, 2001 meeting, Council adopt a by-law to authorize an extension agreement with John Zivanovic Holdings Limited, the owner of various lots on Registered Plan 1773, in accordance with the Municipal Tax Sales Act, permitting a six (6) month extension of the period of time in which the cancellation price may be paid with respect to the tax arrears certificates registered November 23, 2001.” 2. DTS-01-022-ANNUAL GRANT FOR BUSINESS ENTERPRISE CENTRE TO ASSIST WITH STAFFING The Committee was in receipt of Development and Technical Services Department report DTS-01-022, dated October 24, 2001, recommending an annual grant of $50,000. to assist with the cost of staffing for the Business Enterprise Centre. Ms. Kathi Smith, Manager of the Business Enterprise Centre was in attendance to review the funding request. She advised that of the two budgets submitted with the staff report, the FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 29, 2001- 120-CITY OF KITCHENER 2. DTS-01-022-ANNUAL GRANT FOR BUSINESS ENTERPRISE CENTRE TO ASSIST WITH STAFFING (CONT’D) budget indicating a deficit reflects the actual situation. She then reviewed the current situation with respect to new partnerships and volume of customers, noting that as the economy softens, more people explore the possibility of starting their own business. With respect to the funding request identified in the staff report, Ms. Smith advised that rather than a grant, she is requesting a $50,000. line of credit which can be used if or as required; noting that a number of staff at the Centre are contract employees and a line of credit will allow for some stability for the staff, knowing that in the short term they will not have to be laid off. Upon questioning by the Committee, Ms. Smith advised that the $50,000. would not be allocated to any one staff person. Revenues from the Centre come from various places and specific revenues are not targeted to any one staff position. The question was raised as to whether the Centre would use the $50,000. grant if its revenue was $125,000. as noted in one of the budgets attached to the staff report. Ms. Smith advised that the requested funding would be used as a line of credit and only drawn upon if and as needed. Councillor Vrbanovic noted in the report that the purpose of this grant would be to allow Ms. Smith time to investigate more partnerships, and requested that she report to this Committee in one year’s time on the success of those efforts. Mayor Zehr put forward a motion to defer consideration of this funding request to the 2002 budget deliberations, and that Ms. Smith present a report to this Committee by June 30, 2002 on the Centre’s financial situation and its success in generating new partnerships. Councillor Vrbanovic put forward a friendly amendment, accepted by Mayor Zehr, that the funding be a budget over-expenditure to a maximum of $50,000. On motion by Mayor C. Zehr – it was resolved: “That consideration of the request of the Business Enterprise Centre for a 2002 budget overexpenditure of up to $50,000., as outlined in Development and Technical Service Department report DTS-01-022, be deferred and referred to Council budget deliberations; and further, That prior to June 30, 2002, the Business Enterprise Centre provide Council with a report on its financial and partnership situation.” 3. DTS-01-014-ONE YEAR EXTENSION TO CONTRACT WITH KITCHENER-WATERLOO TOURISM The Committee was in receipt of Development and Technical Services Department report DTS-01-014, dated October 24, 2001, recommending that the City of Kitchener, along with its partner, the City of Waterloo, approve a one year extension to the Greater Kitchener Waterloo Chamber of Commerce for the provision of visitor information services. It is noted in the report that the current funding expires as of December 31, 2001, and a new organization model would require a six month lead time in order to establish an appropriate location, marketing and communications plan, along with budgeting, staffing and other typical start-up requirements. The report further notes that analysis of options, in terms of provision of tourism services into the future, will take place by April 1, 2002 in order to allow staff appropriate time to evaluate and comment. Mr. Borovilos advised that a series of focus groups are currently taking place, and staff are recommending a one year extension to the current contract to allow time for the focus groups to continue, and to evaluate the outcome of these groups. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 29, 2001- 121-CITY OF KITCHENER 3. DTS-01-014-ONE YEAR EXTENSION TO CONTRACT WITH KITCHENER-WATERLOO TOURISM (CONT’D) Councillor Vrbanovic commented that any evaluation should result in identification of expectations, measurable deliverables, and address the current visibility problems associated with K-W Tourism’s current office located on Queen Street. He put forward a motion to adopt the staff recommendation, subject to receipt of a report from staff no later than May, 2002. Several members of the Committee commented on their dissatisfaction with the service provided by K-W Tourism, some suggesting that City staff could do a better job in the short- term, while another method of delivery and another provider is investigated. It was noted by Mayor Zehr that the bulk of the cost for tourism information is in the preparation of materials, which is done in the year before it is required. Councillor Vrbanovic stated that the contract extension should be worded in such a manner that the new provider, being City staff or otherwise, can start working in 2002 on preparation for 2003. Mayor Zehr suggested that it would be retrogressive for each municipality to conduct their own tourism operation, as it would not be cost effective. He put forward a motion that consideration of the staff recommendation be deferred to Council, pending receipt from staff of appropriate wording to allow for the transfer of responsibilities from the Chamber to a new organizational structure prior to December 31, 2002, to allow that new structure to prepare for the 2003 calendar year. Councillor Vrbanovic agreed with Mayor Zehr’s motion and withdrew his previous motion. On motion by Mayor C. Zehr – it was resolved: “That consideration of Development and Technical Services report DTS-01-014 (Extension of Contract with Kitchener-Waterloo Tourism) be deferred and referred to , pending a further report from staff on the Council meeting of November 5, 2001 appropriate wording to include in any extension agreement with the Greater Kitchener Waterloo Chamber of Commerce pertaining to the transfer of responsibilities for the provision of tourism services from the Chamber to a new organizational structure.” 4. CSD-01-181-NEW OPEN CODE CLASSIFICATION FOR ‘SPECIALIZED INSTRUCTOR' -9000 SERIES EMPLOYEE SALARY SCHEDULE The Committee was in receipt of Community Services Department report CSD-01-181, dated October 9, 2001, requesting an additional classification in the 9000 Series Pay Scale to allow course instructors whose hourly rate of pay is above the current 9000 Series, to be paid through the pay roll system. it was resolved: “That a new open code classification called ‘Specialized Instructor’ for the 9000 Series Pay Scale be approved, so as to allow course instructors to be paid through the payroll system.” 5. SSD-01-010-HUMAN RESOURCES ADDITIONAL FULL-TIME STAFF MEMBER -REFERRAL TO 2002 BUDGET PROCESS The Committee was in receipt of Strategic Services Department report SSD-01-010, dated October 24, 2001, requesting that an additional permanent full-time staff member for Human Resources be referred to the 2002 Budget review process. : it was resolved “That the request of Human Resources for an additional permanent full-time staff member be referred to the 2002 Budget review process.” FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 29, 2001- 122-CITY OF KITCHENER 6. DTS-01-021-ES- 2001 DESIGN AND 2002 CONSTRUCTION -LOUISA STREET FROM WEBER STREET TO MARGARET AVENUE -ROY STREET FROM QUEEN STREET TO YOUNG STREET The Committee was in receipt of Development and Technical Services Department report DTS-01- 021, dated October 19, 2001 recommending that funds be transferred from existing projects to allow for the 2001 design and 2002 construction of Louisa Street, from Weber Street to Margaret Avenue, and Roy Street from Queen Street to Young Street. On motion by Councillor J. Smola – it was resolved: “That the following projects be approved for 2001 design and 2002 construction: a) Louisa Street from Weber Street to Margaret Avenue; and, b) Roy Street from Queen Street to Young street; and further, That the following financing be approved: a) $150,000. be transferred from the Simeon Street Project to Louisa Street for 2001 design; and, b) $100,000. be transferred from the Mansion Street Project to Roy Street for 2001 design.” 7. DTS-01-016-ES-ADDITIONAL FUNDING FOR REPAIRS TO TRUNK SANITARY SEWER CROSSING GRAND RIVER IN BRIDGEPORT The Committee was in receipt of Development and Technical Services Department report DTS-01- 016, dated October 15, 2001, recommending additional funding from the Sewer Surcharge Account be approved for costs related to repairs to the trunk sewer crossing the Grand River in Bridgeport. On motion by Councillor J. Smola – it was resolved: “That additional funding of $37,611.79 from the Sewer Surcharge fund be approved for costs related to repairs to the trunk sewer crossing the Grand River in Bridgeport.” 8. FIN-01-035-MUNICIPAL CODE CHAPTER 170 (PURCHASING AND MATERIALS MANAGEMENT) -PROPOSED BY-LAW TO REPEAL AND REPLACE The Committee was in receipt of Financial Services Department report FIN-01-035, dated October 23, 2001, recommending that the current Municipal Code Chapter 170 (Purchasing and Materials Management), be repealed and replaced with a new chapter as attached to the staff report. Mr. L. Gordon gave an overview of the proposed changes to the purchasing by-law, noting that the changes would bring the City’s purchasing by-law in line with those of most major municipalities in Canada. Committee members questioned both the formal and informal quotes and methods of advertising. Mr. Gordon noted that companies on the City’s bid list are notified as well as placing advertisements in newspapers and on the City’s website. As well, staff are working on a process to have specifications available electronically. Several Committee members noted their concerns with the increased limits proposed by staff, including the consultant and professional services fees, and asked that the Chief Administrative Officer review the proposed changes prior to a decision being made by Council. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 29, 2001- 123-CITY OF KITCHENER 8. FIN-01-035-MUNICIPAL CODE CHAPTER 170 (PURCHASING AND MATERIALS MANAGEMENT) -PROPOSED BY-LAW TO REPEAL AND REPLACE (CONT’D) Councillor Vrbanovic questioned City support for local businesses and whether the City is able to accept quotes from local businesses that may be 2-3% in excess of the lowest bid, in order to support local business. Mayor Zehr commented that he would not like to see the City take the approach suggested by Councillor Vrbanovic, but would like to see that information on City tenders and purchases is made available to the local business community. Ms. L. MacDonald advised that there is a lot of recent case law involving tendering and she will forward Councillor Vrbanovic’s questions to Mr. J. Shivas for comment. She also cautioned the Committee in this regard. Councillor Vrbanovic questioned whether there is an opportunity to consider support services available from the bidding companies in comparison to those companies who provide only a product without support. Mr. Gordon advised that acceptance of tenders is based on the specifications provided in the tender. When creating specifications, staff must include everything required. On motion by Councillor G. Lorentz – it was resolved: “That consideration of Financial Services Department report FIN-01-035, recommending Municipal Code Chapter 170 (Purchasing and Materials Management) be repealed and replaced, be deferred and referred to a future Finance and , pending review and comment by the Chief Corporate Services Committee meeting Administrative Officer.” 9. FIN-01-036 -UTILITIES MONTHLY METER READING The Committee was in receipt of Financial Services Department report FIN-01-036, dated October 24, 2001, recommending that monthly meter reading be introduced effective January 1, 2002, for all utility customers, and that staff continue to investigate the feasibility of a joint meter reading contract with Kitchener-Wilmot Hydro Inc. On motion by Mayor C. Zehr – it was resolved: “That effective January 1, 2002, monthly meter reading be introduced for all utility customers; and further, That staff continue to investigate the feasibility of a joint meter reading contract with Kitchener-Wilmot Hydro Inc.” 10. ADJOURNMENT On motion, the meeting adjourned at 3:40 p. m. Dianne H. Gilchrist Committee Administrator