Loading...
HomeMy WebLinkAboutFinance & Admin - 2001-01-22 FINANCE & ADMINISTRATION COMMITTEE MINUTES JANUARY 22? 2001 CITY OF KITCHENER The Finance and Administration Committee feet this date, chaired by Councillor J. Z[egler, commencing at 10:11 a.ro., with the following merobers present: Mayor C. Zehr and Councillors M. Galroway, G. Lcrantz, J. Sroola, B, Vrbanovic and C. Waylie. Others Present: Ms. P. Houston, Ms, L. Marshall, Ms. J. Koppeser, Ms. G, Luclantonio, Ms. M. Morfislon, Ms. R. Willres and Ms. D, Gilchrist and Messrs. J. Gazzola, B. Stanley, S. Gyorffy, F. Pizzuto, G. Borovlios, J. McBdde, G. Melanson, D. Mansell, G. Sosnoski, B. Wakefield, P. Sinnott, P. Beaudry and M. Grourornett. 1. CRPS-01-006 - REQUEST TO WAIVE OR REDUCE BINGO UCENCE The Committee was in receipt of Corporate Services Department report CRPS-01-006, dated January 18, 2001, in response to the wrfften submission to Mr. M. Rausch, Chairman, Charities Bingo Committee, outlining his request for bingo licence fees to he waived or reduced to help continue operating the bingo palace for the benefit of 33 chadtabie organizations. The report requests Council's direction in this regard. Mr. M. Rausch, Chairman, Charities Bingo Committee, appeared as a delagation to represent his request for the waiver of or reduction in bingo licence fees. He stated that when bingo revenues wore high, roany charitJes contributed a significant amount of rooney to the City of Kitchener, and if bingos are not successful, they will have to close the hall and the City will not receive any licence fees. Councillor B. Vrbanovic declared a pecuniary interest in this matter as he is associated with an organization that benefits from bingo revenues, and did not participate with any discussion or voting with respect to this matter. Mayor Zehr noted that in the year 2000, when Mr. Rausch appeared before this Coremittee, one of the reasons sighted as justification for bingo licence fee reduction was the smoking by- law;, however, current statistics suggests there are other reasons for the reductions in bingo revenuee. Mr. Raussh agreed that there are other influences on these revenues; however, when speaking to former bingo participants, they advise that they are now playing bingo in Woodstock because there is no smoldng ban. Mayor Zehr advised that he was aware that the Province is in the process of preparing new regulations to lift certain restrictions for bingo halls, and asked that staff investigate and provide this information. He then questioned Mr. Rausch as to what other municipalities have done in this regard. Mr. Rausch advised that the City of Cambridge has reduced its licence fees to 1.5% the prize board. When questioned further by Mayor Zehr, Mr. Rausch did not have any inforrnation on how this situation is being handled Province-wide. Councillor Smola questioned bingo licence revenues anticipated in the 2001 Ucensing Section operating budget and Ms. J. Koppeser advised that staff have budgeted for revenues of $300,000. Councillor Smola then questioned Ms. P. Houston as to whether the City would have to find an additional $300,000. on budget day should Council choose to waive the entire amount of bingo licence fees and Ms. Houston responded that would be the case. Councillor G, Lorentz questioned what would happen if bingo licence fees were reduced by $100,000. and Ms. Koppeser advised that staff would still have the same amount of work to do, it would he harder to trace the charities fends, and even if bingos should cease entirely, staff would still have a 2 years of auditing to do with respect .to processing bingos. Councillor C. Waylie referred to a list in her possession respecting charities who conduct bingos, are eligible for granla and receive grants from the City of Kitchener. She questioned why the City would support only those greups who conduct bingos. Councillor G. Lorentz stated that what has been suggested today is a fundamental shift and put forward a motion to defer consideration of Mr. Rausch's request for a staff report outlining how other municipalities in the province are handling this situation, before this Council takes any steps in this regard. It was generally agreed that the staff report should include an update of the version of the list in Councillor Weylie's possession, details of the staffing and auditing implications in the event that bingos decline, and information on potential new regulations from the P;ov[nce with respect to bingos. FINANCE & ADMINISTRATION COMMITTEE MINUTES - 21 - CITY OF KITCHENEI'[ JANUARY 22~ 2001 1. CRPS-01-O06 - REQ~UEST TO WAIVE OR REDUCE BINGO LICENCE FEES (CONT'D) On motion by Councillor G. Lorentz - It was resolved: "That consideration of the request of Max Rausch on behalf of the Charities Bingo Commiffee for a waiver of or reduction in Bingo Licorice Fees be deferred and referred to a future Finance and Administration meeting, pending a report from staff proving the following: a) information on how other municiparities in the Province have addressed Bingo Licence Fees in light of reduced bingo revenues; and, b) information concerning the staffing and auditing implications in the event the .... · number of bingos decline; and, c) a current list of those charities conducting bingos that receive grants and are eligible for grants; and, d) an updated list of Provincial initiatives relative to bingos.' Councillor B. Vrbanovic declarad a pecuniary interest in this matter as he is associated with an organization that benefits fi.om bingo revenues, and did not participate with any discussion or voting with respect to this matter. 2. REQUEST FROM D. MOORE FOR REDUCTION IN FEE FOR POSTER REMOVAL REALTIVE TO THE LYRIC AND METROPCII_!._e_ NIGHT CLUBS MI'. Daryi Moore, operatoI' of the Lyric and Metropolis nightclubs, appeared as a delegation to 'request a reduction in the fees for poster removal undertaken by staff relative to the 2 nightclubs, In 1998 and 1999. He advised that he had appeared before this Cemmittee in 1999 with the same request and had been denied; however, in 1999 Council approved a similar request for the Walper. He then read from a letter he received from Mr. J. Harris, Municipal Law Enforcement Office, confirming that since 1999 there have been no further Incidence of illegal postering by either the Lydc or Metropolis. Mr. Moore then reviewed the situation with respect to Provincial Offences charges relative to these postedng incidence, noting that the charges with respect to the Metropolis have been withdrawn, and he is willing to come to a set'dement with the City Solicitor on the Provincial Offences charges relative to the Lyric if this Committee will agree to a reduction in the invoices for poster removal. He then requested a 50% reduction in fees for poster removal for both nightclubs. Councillor J. Zeigler questioned whether Mr. Moore had ever before been granted a reduction in fees for poster removal, aad whether the prope~¥ OWner had ever received a reduction in fees for poster removal for any of his establishments. Mr. Moore responded that neither he nor the property owner have ever received a reduction in poster removal fees. Councillor G~ Lorentz advised that he was adamantly opposed to ~rentinc Mr Moore's dv~sad that he recalled speaking with employees o~' Mr. Moore when they were erecting these posters, in the vicin~/ of Forest Heights S~hool, and if was his opinion that these employees knew they were breaking the law. Councillor Lorentz stated he wes opposed to any reduction in these fees. Mr. Moore advised thai these posters were erected at a time when the by-law was first passed and th~ City of Watedoo had passed their postering by-law at approximately the same time. The whichtW° by-laWSrules applieda~e differe'ntin whichandcity.there was some confusion on the part of his employees as to Councillor G. Lorenlz put forward a motion to take no action on Mr. Moore's request for a reduction in the fees charged by the City for poster removal. FINANCE & ADMINISTRATION COMMITTEE MINUTES JANUARY 22~ 200t - 22- CITY OF KITCHENER 2. REQUEST FROM D. MOORE FOR REDUCTION IN FEE FOR POSTER REMOVAL REALTIVE TO THE LYRIC AND METROPOLIS NIGHT CLUBS I'CONT'D) Mayor Zehr stated that he did not entirely disagree with Councillor Lorentz but noted that these posters were removed when the By-law was first passed. The purpose of the By-law was to inform business owners of the City's position with respect to postering. The situation with respect to the proliferation of poster has changed. He stated that he wouM not vote in favour of Councillor Lorentz's motion and is in favour of a 1/3 reduction in these fees. Severe] members spoke in favour of Mayor Zehr's position. Councillor Lorentz's motion to take no action on Mr. Moore's request for a reduction in the fees for poster was voted on and IosL On motion by Mayor C. Zehr - It was resolved: "That Council approve the request of Daryl Moore, on behalf of the Lyric and Metropolis Nightclubs, to reduce the fee for poster removal to $2,400., only if paid on or before February 2, 2001, for poster removal relative to those nightclubs, undertaken by staff from November 1998 to March 1999." 3. BPS-O'I-O12 - DOON VlLLIAGE ROAD DIVERSION The Commiffee was in receipt of Business and Planning Services report BPS-01~012, dated January 19, 2001, which was distributed under separate cover. This report was prepared in response to a request from Mr. M. Tutton, Vice-President, Monarch Construction Limited, at the January 8, 2001, Finance and Administration meeting, to have the City's potion of the Doon Village Road Diversion constructed in 2001 rather than being postponed to 2003/2004, as identified in the Capital Forecast. The construction of the Doon Village Road Diversion is necessary in order for Monamh to proceed with Phase 3 of their subdivision. As requested by this Committee, staff reviewed altematJves to the construction of the City's portion of the Diversion and recommended that it be moved forward in the Capital Forecast to 2001/2002, it be financed by debenture, and that the interest cost associated with the debenture be shared by the City and Monarch Construction Limited, Mr. G. Scheels, Green Scheels Pigeon, appeared as a delegation on behalf of Monarch Construction Limited and addressed the staff reporL He referred to Monarch Construction Limifed's letter, affached to the staff report, supporting the debenturing and advised that Monarch is willing to assume 1t3 of the debenture costs. Mr. Scheels then noted that the City of Kitchener has always indicated that it would build its portion of the Doon Village Road Diversion to match the timing of the construction of phase 3 of Monamh's subdivision, He also advised that Monarch, through the subdivision agreement, has an obligation to construct its portion of Doon Village Road, which will cost $3M. He noted that Monarch Construction has paid a considerable amount of development charges through constructing this subdivision. Referring to the staff report, he advised that Monarch Construction has ccncems with rates used by staff to calculate the financial charges of debenturing and requested that the market rate be used to calculate Monarch Constructions portion of the interest costs relative to the debenture. In response to Mr. Scheels' concerns with respect to the interest costs for the debenture, Ms. P. Houston advised that staff used the figure of 8% to illustrate the cost involved, and that staff will only charge Monarch based on the actual rate of the debenture. Councilor M. Galloway put forward a motion to adopt the recommendation in the staff report as amended to stipulate that the City of Kitchener will pay 2/3 of the interest cost associated with the debenture and Monarch Construction will pay 113 of the interest costs, with the interest costs charged to Monarch being the actual interest rate for the debenture. The Committee then briefly discussed the proportion of the interest costs which should be paid for by Monarch Construction. Councillor M. Galloway stated that there is a problem with how this situation has materialized pointing out that initially the City had agreed to construct its portion of the diversion in concert with Phase 3 of the subdivision but the diversion had FINANCE & ADMINISTRATION COMMITI'EE MINUTES JANUARY 22~ 2001 - 23- CITY OF KITCHE/,;~.:: 3. BPS'Ol'012 - DOON VILLIAGE ROAD DIVERSION I'CONT'D) subsequently been postponed in the Capital ForecasL He noted that the City had agreed, to pay the full price of its portion of the Dcon Village Road Diversion. On motion by Councillor M. Galloway - It was resolved: 'That Council advance construction of the Doon Village Road Diversion in the Capital Forecast fi.om 2003/2004 to 2001/2002 and finance this construction through a two year debenture, the interest costs of the debenture to be shared 2/3 by the City and 1/3 by Monarch Construction Limited; and further, That the interest rate charged to Monarch Construction be the actual rate of the · :..:~ debenture' .'~. · 4. CRPS-01-007 . REPEAL AND REPLACE PAWNBROKER BY-LAW - MUNICIPAL CODE CHAPTER 572 The Comrr~ttas was in receipt of Corporate Services Department staff report CPRS-01-007, dated January 18, 2001, ~commending that the cunent Municipal Code Chapter 572 (Pawnbrokers) be repealed and replaced in the form as shown in the Draft By-law attached to ~ ~ff reporL On mo'don by Mayor C. Zehr- it Waa resolved: 'That Council approve a by-law to amend Municipal Code Chapter 572 (Pawnbrokers) in the form as attached to Corparate Services Department report CRPS-01-007, dated January 18, 2001.' 5. ~:SD-01-O03 - STAFF EVALUATION OF THE POSEIDON PRO, eL: I PROPOSAl The Committee was ~ receipt of Community Services Deparl~ent report CSD--01-003, dated January 17, 2001, in response to Council's direclJen to determine the amount of cap~l co.i~?uutfon the City should make la the Poseidon Project, and aquatics, retail and office development proposed for the former Uniroyal property at the intefseclion of King Street West and V'mtoda Street. CouneiJ's direction la staff also ioctuded the request for an assessment of the financial and operating assumptions put for~ by the Poseiden Project Group. Staff's recommendation is that Co~nci~ take no action regarding a capital and operating financial contribution to the Poseidon Project. Mr. Pizzute, with the aid of a PowerPoint presentation, presented staffs report. He gave an ovendew of the project nc~ng that it would be a mulitiuse facility allowing the opportunity for compe~tive use and community use. The overall cost of the Poseidon Project is expected to be $60M and the proponents have requested a caprtei centn'bution from the City of $15M and an annual operating contribution of $200,000. Mr. Pizzuto advised that a review of the City's budget shows that an annual operating con~bution of that amount would affect operation of the City's existing fac~litios, and building this facility would affect the City's revenues with respect to providing the same programs. Mr. Pizzuto mviewecl the assumptions made by the Poseidon Project Group in terms of aquatic services they ' traffic and paddng considerations, intend to provide, downtown revitalization and Mr. Pizzute then reviewed the financial implications. He noted that the Poseidon Project Group has estimated the City would gain $200,000. in tax revenues in this project. He advised that the impact on the aquatic budget would be increased costs of $100,000. plus a potential loss of revenue for leadership programs, etc., of aeproximately $20-25,000. V~th respect la the requested capita~ coniutbut~on of $15M, Mr. Pizzuto explained that this contribution is higher than the capital value atbibulable to the City of Kitchenor which would be approximately $4.2M, equivalent to the capital cost of a community poo/. He also advised that $15M cannot be accommodated in the capital forecast for a least the next 5 years. FINANCE & ADMINISTRATION COMMII'rEE MINUTES JANUARY 227 2001 - 24- CITY OF KITCHENER 5, CSD-01-003 - STAFF EVALUATION OF THE POSEIDON PROJECT PROPOSAl. {CaNT'D} In summary Mr. Pizzute stated that, although the City must take risks in the realization of projects I~e the Poseidon Project, staff are of the opinion that this project is not worth the dsk as it does little from a programming and financial perspective, and it has limited capacity from an economic development and downtown renewal perspective. Ms. Nancy Brewley and Mr. Roger Farwell appeared on behalf of the Poseidon Project Group to advise of and explain their opposition to the staff report` Ms. Brawley stated that the staff report looks at the Poseidon Project as an aquatic facility but it is much target than that, This will be an international facility and training ground for Olympic athletes. She stated that the project group needs Council to have a vision as to what this development, on this site, can do for downtown revftalizat[on. As well as being a sports facility, the project will be a coaching development centre, a centre for alternative aquatic a~vity and has the potential for wellness outreach. Ms. Brawley then spoke of the commemial/office mix proposed as pert of the project, noting that it has maximum flexibility. Mr. Roger Farwell then addressed the Committee with respect to the downtown revitalization aspect of the project. He stated that Geon has gifted this site and wants to see it developed as a vital site. He stated that ~t is a gateway site for the downtown, The athletic complex will be supported by the other uses which surround it, and there is development interest in the project. Mr. Farwell stated that the City's contribution must be declared before the project can move fon~ard. He advised that the direct economic benefits of the project for the City of Kitchener are significant; the site would not be vacant, construction costs would be in the vicinity of $25-28M and the City's portion of the pmpe~y taxes would be $200,000. Mr. Farwell then addressed the capital budget impact contained in the staff report by stating that this project exists outside of the mandate of staff and it will fake political wtil to make it happen. In conclusion Mr. Farwell acknowledged Geon's enthusiasm for this site and has extended the gesture of offering this site, They want to know what will happen to the site if the Poseidoi3 Project does not go forward. On behalf of the Poseidon Project Group, Mr. Farwell stated that this project has been a vision for the future and stated the need to be bold for the future. He thanked the City of Kitchener for its support in investigating this project. Members of the Committee questioned whether the delegation has approached the senior Ievels of government for funding and the prcportion of funding targeted at various sources. Ms. Brewiey responded that the project group anticipates the following contrib~ions: $15M from the City of KJfohener, $9M from the Pmvinca, $6-7M from the Federal Government and SSM from corporate donations. She advised that they would apply to the SuperBuild Partnemhip if they could get a le~far of endorsement from the City of K*~tchener. Councillor Vrbanovic qt~estiened how aggressive the project group has been in soliciting donor funding and Ms. Brawlay advised that they need the City's suppod in order to obtain Corporate donations. She noted that while pursuing donations, the main question from perspective donors has been whether the City is suppoding the project. Councillor Vrbanovic then questioned why the City's supl~'t must initially be in the form of fonds, Mr. Farwell advised that an aquatics facility is not financially self supporting and the commemiat/offica component will have to generate enough revenue to support the aquatics facility. Before corporations will donate or invest in the project they want to know that the City is supportive of the project. He stated that the $15M does not have to be paid until all the funding has been acquired. Councillor Vrbanovic quesldoned what would happen to the project if the City decides to take no action at this time. Ms. Brawley stated that the project will not disappear as the project group believes this facility is needed, and will pursue avecuos for development. Councillor Weylla questiosed how many national aquatics facir~des there are in Canada and Ms. Brawlay responded that this facility would be one of 3 across the country. Upon further questioning, it was determined that the other 2 facilities were funded as part of either the FINANCE & ADMINISTRATION COMMITTEE MINUTES JANUARY 227 2001 - 25- CITY OF KITCHEN~.~ ~ 5. CSD-01-O03 - STAFF EVALUATION OF THE POSEIDON PROJECT PROPOSAL ~'CONT'D) Commonwealth Games or the Pan Am Games. Mayor Zehr stated that if the focus for the facility is to train Olympic athletes and ceaches then it should be paid for by the senior levels of government, and questioned how to convince those levels of government to become involved in the project. Mr. Marty Schreiter of the Kitchener Downtown Business Association appeared as a delegation and spoke briefly in suppor~ of the project on behaffof the Association. Councillor B. Vrbanovic put forward the recommendation in the staff report with an amendment stating that the CRY continues to support the Poseidon Project but will take no action at this time on their request for funding. He urged the delegation to pumue other funding options, padiculaify the Federal Government. Mayor Zehr spoke in support of the motion nating that he believos in the vision but the City is not in a position to make the financial contribution requested, at this time. He then pointed out that the City d~d help fund the cost of the feasablitly study for this project. On mo'don by Councillor B. Vrbanovic - it was resolved: 'That the City of Kitchener continue to endorse but, at this time, take no action regarding a Capital and operating financial contribution to the Poseidon Project.' Councillor G. Lorentz requested that a letter be sent to Mr. Larson of Geon (PolyOne), to ~i determine what types of proposals will be supported by them for this site, and their position - with respect to the property if the Poseidon Project does not come to fruition. Mayor Zehr · advised that he will send the letter. 6. MARKET VALUE REASSESSMENT- POWERPOINT pRI=-~_;NTATIC~,; It was generally agreed by the Committee that the PowerPoirif presentation relative to Mad(et Value Reasseesmeat be deferred to the Finance and Adminis~'ation Committee meeting Scheduled for Monday February 5, 2001. 7. BPS430-17t - 18, 22, 26 & 30 MADISON AVENUE NORTH REQUEST FOR BY4..AW MUNICIPAL CODE CHAPTER 665 (PROPERTY STANDARDS FOR MAINTENCE AND OCCUPANCY) The Committee was in receipt cf Business and Planning Services report BPS-00-171, dated December 20, 2000, recommending that Council pass a by-Law at its January 29, 2001 meeting authorizing exterior property standards repairs to 18, 22, 26 & 30 Madison Avenue North, Kifchener. On motion by Councillor G. Lorentz - it waa resolved: "That Council consider a by-law at its meeting of January 29. 2001. authorizing extedor Properb/Standards repairs to the properties municipally known as 18, 22, 26 and 30 Madison Avenue North, if the work has not been completed by the owner on or before June 30, 2001." 8. PW-O0-005 - REQUEST TO HIRE L'. - CORRIDOR MANAGEMENT TECHNOLOGIST The Committee wes in receipt of Public Works Depar'm~ent report PW-00-005, dated January 15, 2001, requesting approval to hire a new full-time position of CorTfd0r Management Techno4ogisi' FINANCE & ADMINISTRATION COMMz i ~ ~-E MINUTES JANUARY 22r 2001 - 26- CITY OF KITCHENER 8. PW-00-O05 - REQUEST TO HIRE ;. - CORRIDOR MANAGEMENT TECHNOLOGIST (CONT'D) in the Engineering Division of the Public Works Depa~nent. The report noted that the increased number of telecommunication companies installing plant, has created a need for a dedicated staff person to deal with the volume of applications for plant installation. On motion by Councillor C. Weylie - it was resolved: "That Council approve the hiring of one (1) new full-time position of Corridor Management Technologist in the Engineering D;vislon of the Public Works Department, subject to final approval of the Department's 20(}1 Operating Budget.' Councillor Vrbanovic asked for a report to be presented at a future Public Works and Transportation Committee meeting outlining the revenues generated from these telecommunications companies and whether o~' not the City of Kitchener is charging appropriate rates for this service. Mr. Lynch responded that the rates charged for this service by the City of Kitchener are based on a formula and are reviewed annually. 9. CRPS-0t-005 - COUNCIL MEETING TRANSLATION - HEARING IMPAIRED The Committee was in receipt of Corporate Services Department report CRPS-01-005, dated January 17, 2001, outlining the options and costs related to providing translation services for the deaf andfor the heedng impaired in regard to televised Council mee~dngs. Councillor C. Weylle requeated that consideration of this report be deferred to a f~ture Finance and Administration Con~mittae meeting and that the report by cireulefion to the K-W Barrier Free Advisory Committee who had requested this sea*ice. On motion by Councillor C. Weyl[e - It was resolved: "That consideration of Corporate Services Department report CRPS-01-005. dated Janua~ 17, 2001, be defert'ed end referred to a future Finance and Administration Committee meeSng; and further, That the report be circulated to the K-W Barrier Free Advisory Committee for comment,' 10. CAe-01-001 - INTERNET IMPROVEMENTS -POWERPOINT PRESENTATION The Committee was in receipt of Chief Administrative Officer Department report CAe-01-001, dated January 22, 2001, providing background to the recommendation contained in the report requesting additional funds in the Capital and Operating Budget to purchase hardware and software to improve the City's website, staff and training, and the creation of a 'Dynamic Content Programmer Position' in the Information Services*Division to be responsible for the City's website. Mr. Sinnott, with the aid of a PowerPoint presentation, displayed an example of the level of sophistication envisioned by staff for the City's website. Mr. Borovilos addressed the website needs fi`om the pempective of business facilitation, relationship marketing and improved delivery. Mr. Sinnott responded to comments from Councillor Galloway by advising that a comparison was conducted with larger cities' websites to see what the trends are. Staff's proposer sets the City's website in the general dimciton of current trends. Mr, J. Vinden, of Brickworks Communications, who had conducted the study on redeveloping the website was also in attendance, __ - POWERPOINT PRESENTATION (CONT'D) Councillor Galloway stated that what is being proposed Js beyond the City's needs and he has difficulty understanding why such a sophisticated website is proposed. Following further discussion and questions, Councillor Galloway stated that hts main concern is that this process is moving too fast and it is not known exactly what the City needs. He also stated that there will be a~er costs which have not been taken into consideratron in the report. Councillor Galloway put forward a motion to defer COnsideration of the staff report to next week's Council meeting in order to get additional costing information from staff and also an indication of the level of service which wilt be obtained for the funding being requested. Councillor J. ZJegtsr requested that Councillor Galloway Provide staff with a specific list of questions for which answers are required, in time for a response at next Monday night's ~.= ~- Council Mest~ng. ·" On motion by Councillor M. Galloway- It was resolved: "That considera~'on of Communications Division report CAO-00-O01, dated January 22, 2001, e efa ,:l n a Coen il of Janu~ pending further information from staff on detailed costs and the level of service proposed. · , Councillor Vd3anovic requested detailed informa'don on the capital costs as part of the staff report for next Monday nights Council meeting. 11. On rnot~on, the ~ adjourned at 12:55 p.m. Dianne H. Gilchrist Committee Aclministrator