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HomeMy WebLinkAboutFin & Corp Svcs - 2006-01-23FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2006 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 10:37 a.m. Present: Councillor B. Vrbanovic -Chair, was in attendance for part of the meeting. Mayor C. Zehr and Councillors J. Gazzola, M. Galloway, G. Lorentz, J. Smola, 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 R. Regier, Executive Director of Economic Development L. Proulx, Director of Facilities Management H. Gross, Director of Project Administration and Economic Investment J. Sheryer, Assistant City Solicitor P. Harris, Manager of Licensing R. Upfold, Director of Accounting I. Magid, Supervisor, Benefit Development/ Human Rights Officer M. Petricevic, Manager Project/Energy Management K. Baulk, Director, Enterprise, Community Services K. Currier, Director Operations, Community Services S. Wright, Manager, Downtown Community Development K. Kugler, Manager Auditorium & Community Arenas V. Bradford, Business Development Officer K. Steiss, Inclusion Coordinator C. Goodeve, Committee Administrator 1. CRPS-06-011 -REQUEST FOR AMIDWAY - HOMENIUK RIDES INCORPORATED - 707 OTTAWA STREET SOUTH -APRIL 27 TO MAY 7, 2006 The Committee was in receipt of Corporate Services Department report CRPS-06-011, dated January 16, 2006 regarding a licencing request from Homeniuk Rides Inc. to operate a Midway at Weiland Ford from April 27 to May 7, 2006. Ms. P. Harris clarified that while the request from the applicant did not correspond with previous Council direction regarding hours of operation, the staff recommendation does. On motion by Councillor C. Weylie - it was resolved: "That Homeniuk Rides Inc. be granted permission to operate a Midway at Weiland Ford, 707 Ottawa Street South, from April 27 to May 7, 2006, subject to the following: I-Iniirc of nnaratinn• and Datev Start Close hursda , A ril 27 3:30 m 10:00 m Frida , A ril 28 3:30 m 11:00 m Saturda , A ril 29 10:00 am 11:00 m Sunda , A ril 30 Noon 10:00 m Monday, May 1 to Thursday Ma 4 3:30 pm 10:00 pm Frida , Ma 5 3:30 m 11:00 m Saturda , Ma 6 10:00 am 11:00 m Sunda , Ma 7 Noon 9:00 m That the music at the Midway be turned down at 8:00 p.m. except on those evenings preceding a school day when it shall be turned off at 8:00 p.m.; and, That the music be turned off one hour before closing time on the evenings preceding a non-school day; and, FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2006 - 20 - CITY OF KITCHENER 1. CRPS-06-011 -REQUEST FOR AMIDWAY - HOMENIUK RIDES INCORPORATED - 707 OTTAWA STREET SOUTH -APRIL 27 TO MAY 7, 2006 (CONT'D) That parking arrangements be reviewed with Transportation Planning staff to ensure adequate off-street parking will be provided; and further, That the required licence be obtained prior to operating the Midway." 2. CSD-06-004 -LENDING AGREEMENT -TERRA TREK ALL-TERRAIN WHEELCHAIR The Committee was in receipt of Community Services Department report CSD-06-004, dated December 19, 2005 regarding the establishment of a Lending Agreement for the City-owned Terra Trek All-Terrain Wheelchair. In response to questions, Ms. K. Steiss advised that staff anticipate receiving numerous requests to use the Terra Trek All-Terrain Wheelchair, as the cost of the wheelchair (approximately $6,000.) is financially prohibitive to most families. Ms. Steiss outlined other items purchased from the $10,000. Ronald McDonald Children's Charities Grant, and advised that a full report will be presented once the Lending Agreement has been finalized. On motion by Councillor C. Weylie - it was resolved: "That the General Manager of Community Services and his/her designates be authorized to execute, on behalf of the City of Kitchener, lending agreements satisfactory to the City Solicitor, with users, operators and/or borrowers of the Terra Trek All-Terrain Wheelchair owned by the City, which is to be made available for community use as outlined in Community Services Department report CSD-06-004." 3. CRPS-06-012 -SET FINES FOR CHAPTER 530 (DOGS) OF THE MUNICIPAL CODE The Committee was in receipt of Corporate Services Department report CRPS-06-012, dated January 16, 2006 regarding an increase in set fine amounts for offences under Chapter 530 (Dogs) of the City of Kitchener Municipal Code. Staff were directed to develop a press release to be included in a future issue of Your Kitchener informing residents of the set fine amounts. On motion by Councillor C. Weylie - it was resolved: "That the short form wording and suggested set fine amounts for the offences under Chapter 530 (Dogs) of the City of Kitchener Municipal Code, be approved, as set out in Schedule "A" appended to Corporate Services Department report CRPS-06-012; and further, That the City Solicitor be authorized to submit this matter to the Regional Senior Judge of the Ontario Court of Justice for the establishment of these set fines." 4. CRPS-06-004 -TWIN PAD ARENA SITE SELECTION - DESIGN /DEVELOPMENT /PRELIMINARY BUDGET STAGE The Committee was in receipt of Corporate Services Department report CRPS-06-004, dated December 22, 2005 regarding the Twin Pad Arena Business Case and a request for approval to proceed to the design development /preliminary budget phase. Mr. G. Sosnoski advised that the proposed 80,000 sq. ft. Twin Pad facility will be located on Hanson Avenue and has a preliminary total project budget of $15.5M (2007 dollars). He added that this includes a building construction estimate of approximately $110. per sq. ft., which incorporates the arenas, offices and mechanical rooms in a class 'B / C' type building. He stated that staff are planning to use the construction management approach, noting that while FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2006 - 21 - CITY OF KITCHENER 4. CRPS-06-004 -TWIN PAD ARENA SITE SELECTION - DESIGN /DEVELOPMENT /PRELIMINARY BUDGET STAGE (CONT'D) this is not necessarily the least expensive approach, it has been identified as the most appropriate as it allows the City to have a greater degree of control over the project's quality. Mr. G. Sosnoski advised that additional reports will be provided to Council in the event that partnership needs or other changes in the scope of the project have an impact on the budget estimate. He stated that at various points in the process, the accuracy of the project cost estimate will be refined, pointing out that the $15.5M estimate is considered to be a 'B / C' class estimate with a possible variance +/- of 15-25%. He added that as the project progresses so to will the class of estimates and eventually Council will be provided with an `A' class estimate (+/- 5-10%). He then outlined factors that could affect the projects cost and funding as noted in the staff report. Mr. G. Sosnoski advised that design /development funding will be required in 2006 in the range of $800,000. to $1 M from the projects 2007 capital allocation. He added that the purpose of this funding is to retain an architect and hire a construction manager to undertake the relocation of the snow dump site currently on the Hanson Avenue property including pre- grading of the Hanson property and final grading of the replacement site; and, to pay some fees and undertake any preliminary studies. He stated that parallel to the pre-design / development process, staff will be negotiating partnerships and finalizing fundraising commitments with all partnerships and partnership contributions to be identified and presented to Council in individual reports by July 1, 2006. He noted that the Boxing Club and the Kitchener Minor Hockey Association have expressed an interest in partnering; with Minor Hockey providing detailed floor space requirements and also committing to assist with fundraising for the project. Mr. Sosnoski outlined the following as the projects next steps: • Design /Development -February to Fall 2006; • Partner-specific Business Cases -February to July 2006; • Subsequent reports to Council -Fall 2006; • Construction drawings -January 2007; • Tendering of construction -February /March 2007; and, • Site preparation /construction -May 2007 -April 2008. In response to questions, Mr. G. Sosnoski advised that the two main construction approaches are lump sum and the construction management approach. He noted that the construction management approach is preferable as it allows the City to have control over the hiring of the sub-trades, which in turn provides the City with greater control over the quality, cost and timeframe of the project. Mr. M. Petricevic commented that in his experience a lump sum approach is initially cheaper; however, given the greater control over quality, the construction management approach produces savings in future maintenance costs. In response to questions regarding the City's current ice facilities, Ms. K. Kugler pointed out that while the structures of those facilities may be class 'A', the internal systems and technologies are class 'C'. Mr. K. Baulk advised that the initial project estimate of $8.3M was used as a placeholder in the Capital Forecast, stating that it was placed there in the early 1990's and was not updated until recently, which is why the project estimate has increased to $15.5 M. Mr. G. Sosnoski advised that the $15.5M is a complete estimate, which is inclusive of the snow dump relocation costs and is consistent with earlier revised project estimates. Mr. H. Gross advised that the Corporate Management Team is currently conducting a review of possible snow dump site locations and the feasibility of developing an additional site. Mr. Sosnoski added that the possibility may exist to share a snow dump site with the Region of Waterloo. Mr. Gary Draves, Vice President, Kitchener Minor Hockey Association, advised that to consolidate all of their spacing needs they are proposing that they be allocated a space of approximately 2,000 sq. ft. He noted that the 2,000 sq. ft. does not all have to be located within the same section of the Twin Pad facility. He added that he is confident they will be able to work with City staff to address all of their spacing needs. Mr. M. Petricevic stated that once meetings are held with individual stakeholders staff will be able to determine how much space is required to meet the various proposed partnership requirements. He commented that the proposed 80,000 sq. ft. should be capable of accommodating most spacing requests. Mr. G. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2006 - 22 - CITY OF KITCHENER 4. CRPS-06-004 -TWIN PAD ARENA SITE SELECTION - DESIGN /DEVELOPMENT /PRELIMINARY BUDGET STAGE (CONT'D) Sosnoski advised that Partner-specific Business Cases will be presented for Council's consideration by July 2006, and will outline the needs of the individual stakeholders. Mr. K. Baulk added that within the next few months staff will be presenting a report regarding the use of ice at the Sportsworld facility. Councillor G. Lorentz inquired as to why the City is constructing a Twin Pad facility instead of a Quad Pad facility and was advised that there are a number of planning constraints associated with a Quad Pad facility and that the savings realized in building a Twin Pad facility are not as prevalent in the construction of a Quad Pad facility. The following motion was Carried Unanimously on a recorded vote. On motion by Councillor G. Lorentz - it was resolved: "That the Business Case for the new Twin Pad Arena as appended to Corporate Services Department report CRPS-06-004 be accepted, and staff proceed with the design development phase of the project on the basis of a B / C Class building, with a preliminary budget estimate of $15.5M (2007 dollars) and an estimated 2006 cost of between $800,000. and $1 M; and further, That staff be authorized to hire, through the standard consultant hiring procedure, an architect for the design development component, and a construction manager to participate in both the design development and construction phases of the project." 5. CAO-06-006 -WELLNESS PROGRAMMING - UPDATE AND REQUEST FOR FUNDING The Committee was in receipt of Chief Administrator's Office report CAO-06-006, dated January 17, 2006 regarding the establishment of an annual $12,000. fund to promote wellness initiatives, programming and events. Ms. I. Magid presented an update as to the various projects relating to wellness promotion. She advised that to ensure programming, monetary resources need to be available to develop new initiatives, as well as sustain existing initiatives. She requested that an annual wellness fund of $12,000. be established with the funding to be allocated from the City's Fringe Benefit Account; to be topped up annually. In response to questions, Ms. I. Magid advised that the funding request is based on an estimated expenditure of $6. per employee. Ms. Magid agreed to report to the Committee at the end of 2006 to provide information regarding the program's actual costs and overall effectiveness. Ms. P. Houston advised that given the small amount being requested, this funding can be accommodated through the City's Fringe Benefit Account. On motion by Councillor G. Lorentz - it was resolved: "That an annual fund of $12,000. be established to promote Wellness initiatives, programming and events with the monies to be funded from the City's Fringe Benefit Account as outlined in Chief Administrator's Office report CAO-06-006." 6. CAO-06-001 -LIQUOR LICENCE APPLICATION REVIEW COMMITTEE - RELAX - 91 QUEEN STREET SOUTH The Committee was in receipt of Chief Administrator's Office report CAO-06-001, dated January 17, 2006 regarding a Liquor Licence Application for 91 Queen Street South. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2006 - 23 - CITY OF KITCHENER 6. CAO-06-001 -LIQUOR LICENCE APPLICATION REVIEW COMMITTEE - RELAX - 91 QUEEN STREET SOUTH (CONT'D) In response to questions, Ms. S. Wright stated that this application is for Unit 10 of 91 Queen Street South. Ms. J. Sheryer advised that ensuring that the applicant is complying with the permitted ratio of alcohol to be served is the responsibility of the Provincial Alcohol Inspectors and is not within the jurisdiction of the City. Ms. Wright noted that numerous attempts were made to contact the applicant to advise them of today's meeting. Councillor C. Weylie commented that she has received several complaints arising from this general location and suggested that Enforcement Division staff be made aware of this application. On motion by Councillor C. Weylie - it was resolved: "WHEREAS Raisa Rattsan gave the Corporation of the City of Kitchener notice on October 3,2005 that she would be seeking a liquor licence for premises known municipally as 91 Queen Street South; and, WHEREAS the information provided by the Applicant was reviewed by the City's Liquor Licence Review Committee in consultation with members of the public; and, WHEREAS the information provided by the Applicant and the Liquor Licence Review Committee was considered by the City's Finance and Corporate Services Committee held on January 23, 2006; and, WHEREAS the Applicant has indicated that she does not intend to hire any security staff, the Applicant has not provided sufficient detail to demonstrate venue operation with regard to sitting and standing occupancy, the Applicant has failed to display a placard at the proposed location as required by the AGCO; THEREFORE BE IT RESOLVED that the Council of The Corporation of the City of Kitchener (the "City") has determined and submits pursuant to section 7(4) of the Liquor Licence Act and 7.1(1) of Regulation 719 there under that issuance of a liquor licence to Raisa Rattsan (the "Applicant") for the establishment "Relax", to be located at 91 Queen Street South, Kitchener is not in the public interest having regard to the needs and wishes of the residents of the municipality, and accordingly, Council opposes the application and requests a hearing to be held on behalf of the residents of the municipality; and, BE IT FURTHER RESOLVED that Council directs staff to request the Alcohol and Gaming Commission of Ontario (the "AGCO") to attach the conditions listed below to t he Applicant's liquor licence should the AGCO issue the licence in spite of Council's opposition; and, BE IT FURTHER RESOLVED that Council authorize staff to enter into an agreement with the Applicant should she be willing, wherein the Applicant agrees to abide by the following conditions as private conditions with the City and may also agree to request the conditions be added to her licence if the AGCO chooses to issue the licence in spite of Council's opposition: 1. To install a commercial kitchen facility in the establishment prior to commencing operation; 2. To post in a conspicuous place and abide by the Downtown Licensed Establishments Code of Conduct; 3. To become a member of the Kitchener Downtown Business Association's License & Entertainment Committee and attend its meetings; 4. To abide by a set 40% monthly ratio of alcohol sales to gross refreshment sales (including food and other sundries) as set out in his application (in other words, alcohol sales will be limited to 40% of gross refreshment sales); 5. To stop serving alcohol by 1:00 a.m. daily; FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2006 - 24 - CITY OF KITCHENER 6. CAO-06-001 -LIQUOR LICENCE APPLICATION REVIEW COMMITTEE - RELAX - 91 QUEEN STREET SOUTH (CONT'D) 6. To voluntarily surrender the liquor license to the AGCO should the applicant cease to operate this establishment in the future; 7. To notify the Clerk of the City of Kitchener in writing of any applications to change the license at the time the application for the change is made to the Alcohol and Gaming Commission, and not to expand the establishment without the consent of the City's Council; 8. To comply with the noise by-law and the smoking by-law; 9. These conditions shall bind all successors, assigns and subsequent licence holders (if any); and, BE IT FINALLY RESOLVED that Council requests that the AGCO acknowledge receipt of this resolution and advise City staff of any hearing date." 7. CAO-06-002 -ECONOMIC DEVELOPMENT ADVISORY COMMITTEE - TOURISM RECOMMENDATION The Committee was in receipt of Chief Administrator's Office report CAO-06-002, dated December 19, 2005 regarding a request from the Economic Development Advisory Committee that the Mayor propose the development of a Regional Destination Marketing Organization (DMO) as a tourism initiative to Regional Council. Ms. C. Ladd advised that Regional area CAO's meet on a quarterly basis regarding common issues including tourism. She stated that she has been working on a report concerning the impact of tourism on this area and requested that the recommendation of the Economic Development Advisory Committee be referred to her. She noted that she anticipates presenting the tourism report to Council sometime in June 2006. At the request of Councillor J. Gazzola, Ms. C. Ladd agreed to incorporate into her report what tourism means and if this area should be a tourism destination. On motion by Mayor C. Zehr - it was resolved: "That consideration of the following motion be deferred and referred to the Chief Administrative Officer to be addressed in a report she is developing regarding Regional tourism initiatives: That the Economic Development Advisory Committee urges the Mayor to include tourism, and the establishment of DMO (Destination Marketing Organization) at the Regional level at the forthcoming meetings, that will be held between the Mayors of the Region, and the Regional Chairman; and further, That this new Tourism initiative to be set up to be industry driver." Councillor B. Vrbanovic left the meeting at this time and Councillor M. Galloway assumed the Chair. 8. CRPS-06-002 -NEW OFFICE STANDARDS PROPOSAL The Committee was in receipt of Corporate Services Department report CRPS-06-002, dated January 19, 2006 regarding proposed revisions to the office and furniture standards for City Hall and other facilities to accommodate anticipated future staffing increases. Mr. L. Proulx advised that City Hall was designed to accommodate additional staff for 15 years beyond occupancy in 1993, predicated on an anticipated growth rate of 2% annually. He added that in 1998, Facilities Management proposed capital funding to construct an addition to City Hall and Council indicated they were not supportive of that proposal. He stated that since growth is inevitable and an addition to the building is not supported, there are only two means of responding to future growth: 1) decentralization or, 2) adjust office sizes and workspace standards to accommodate more staff in the same space. He added that the FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2006 - 25 - CITY OF KITCHENER 8. CRPS-06-002 -NEW OFFICE STANDARDS PROPOSAL (CONT'D) change in workplace layout and furnishings would also support overall corporate efforts in terms of promoting employee interaction and collaboration through more team oriented arrangements. Mr. Proulx outlined that the Berlin Tower, from 4th floor to 9th was originally designed for an average of 35 staff per floor and with the introduction of modular furniture using the proposed reduced office standards it is conceivable that the same floor plan can accommodate an average of 55 staff per floor. He noted that this is an increase of 57% over the original model and advised that if approved he would like to commence the proposed renovations in the spring of 2006. In response to questions, Mr. L. Proulx advised that the decentralization of the City's Enforcement Division has been generally considered a success, adding further that decentralization of other divisions could be possible but locations would have to be provided. He noted that the construction of a consolidated maintenance facility would move 30 staff members off site. Mr. G. Sosnoski advised that the original purpose behind the construction of City Hall was to centralize staff into one location and at that time office standards were established that by today's standards are considered to be very generous. Mr. L. Proulx clarified that staff is requesting that Council budget $100,000. a year over a 10 year period to finance this proposal. He added that the allocation of funding to relocate the Building Division is scheduled for consideration by Council as part of their January 30, 2006 budget process. He noted that the proposed remodelling is cheaper than the construction of an addition to City Hall. Mayor C. Zehr questioned the effect that this would have on staff morale and was advised that when the Enforcement Division was relocated the key to maintaining staff morale was giving staff the opportunity to provide input and to be involved in the overall process. Mayor Zehr stated that when City Hall was initially constructed it was known that eventually more space would be needed; as such, he is in support of this proposal as it can be seen as a new era for City Hall. At the request of Councillor G. Lorentz, Mr. Proulx agreed to provide a sample of what white noise sounds like. Further, staff were directed to provide information at the January 30, 2006 Council meeting regarding a breakdown as to how the requested $100,000. will be spent. On motion by Mayor C. Zehr - it was resolved: "That the proposed revisions to office and furniture standards for City Hall and other facilities as outlined in Corporate Services Department report CRPS-06-002 be adopted; and, That approval be given in principle to the increased use of modular furniture where appropriate, subject to Council review of the related furniture tender; and further, That consideration of the request for additional funding with respect to office renovations/furnishings be referred to budget deliberations on January 30, 2006." 9. CAO-06-008 -SALE OF PART OF LOT 8 - GRAND RIVER WEST BUSINESS PARK - BINGEMANS CENTRE DRIVE The Committee was in receipt of Chief Administrator's Office report CAO-06-008, dated January 16, 2006 regarding a Conditional Offer to Purchase a parcel of land in the Grand River West Business Park from Broda Enterprise Incorporated. Ms. V. Bradford advised that the Offer to Purchase is for 4.31 acres of the total 6.87 acres that make up Part 12, Reference Plan 58R-14324. She stated that Part 12, also known as Lot 8, is the last remaining unsold lot in the Business Park and the proposed sale will require a severance resulting in 2.56 acres of remaining lands. Ms. Bradford noted that the sale price for FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 23, 2006 - 26 - CITY OF KITCHENER 9. CAO-06-008 -SALE OF PART OF LOT 8 - GRAND RIVER WEST BUSINESS PARK - BINGEMANS CENTRE DRIVE (CONT'D) these lands is $150,000. per acre, plus an additional $10,000. to cover the cost of the severance. In response to questions, Ms. V. Bradford advised that the $150,000. per acre sale price is based on the intended use of the land and is comparative to the asking price of similar lands in the area. She noted that while the remaining parcel of land will be comparatively smaller, the City has previously received inquiries into the availability of lots that size. Councillor J. Gazzola requested that at the January 30, 2006 Council meeting staff provide a complete update of the Business Park finances, including total costs incurred and the amount of profit realized thus far. On motion by Councillor C. Weylie - it was resolved: "That the conditional Offer to Purchase from Broda Enterprises Inc. for part of Part 12, Reference Plan 58R-14324, being a parcel of land in the Grand River West Business Park, having an area of approximately 4.31 acres at a price of $150,000. per acre, for a total purchase price of $656,500. be accepted; and, That an additional sum of $10,000. be included as a portion of the total purchase price to cover severance and service costs to accommodate the severance of the remaining 2.56 acres which will then be sold; and further, That the Mayor and Clerk be hereby authorized to execute any other necessary documentation required by the City Solicitor to complete the sale transaction." 10. ADJOURNMENT On motion, the meeting adjourned at 12:33 p.m. C. Goodeve Committee Administrator