Loading...
HomeMy WebLinkAboutFin & Corp Svcs - 2006-02-20FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 20, 2006 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 3:25 p.m. Present: Councillor B. Vrbanovic -Chair Mayor C. Zehr and Councillors M. Galloway, G. Lorentz, J. Smola, J. Gazzola and C. Weylie. Staff: C. Ladd, Chief Administrative Officer G. Sosnoski, General Manager, Corporate Services & City Clerk R. Browning, Interim General Manager, Development & Technical Services H. Gross, Director of Project Administration and Economic Investment R. Regier, Executive Director of Economic Development D. Chapman, Director, Financial Planning & Reporting C. Sadeler, Interim Director, Community Programs and Services D. Paterson, Director, Human Resources L. MacDonald, City Solicitor P. Harris, Manager of Licensing D. Locke, Manager, Operational Support & Analysis J. Billett, Committee Administrator 1. CRPS-06-027 -SOCIAL GAMING EVENT - BETH JACOB CONGREGATION The Committee considered Corporate Services Department report CRPS-06-02, dated February 13, 2006 regarding issuance of a Provincial lottery licence for Beth Jacob Congregation. On motion by Councillor C. Weylie - it was resolved: "That the City of Kitchener has no objection to a Provincial Lottery Licence being issued to the Beth Jacob Congregation to conduct a social gaming event at the Beth Jacob Synagogue, 161 Stirling Avenue South, Kitchener, on June 21, 2006." 2. CAO-06-010 -CANADA'S TECHNOLOGY TRIANGLE -QUARTERLY REPORT The Committee considered Chief Administrator's Office report CAO-06-010, dated February 14, 2006 detailing the 4th quarterly report of Canada's Technology Triangle. At the request of Mayor C. Zehr, it was agreed to revise the staff recommendation in report CAO-06-010 to provide that the quarterly report be received, rather than accepted. At the request of Councillor J. Gazzola, staff agreed to provide additional explanation to Council regarding the differential in actual /projected figures for new leasing opportunities and the ratio of funding targets. On motion by Councillor C. Weylie - it was resolved: "That the Quarterly Report of Activities and Outcomes for Canada's Technology Triangle (4t"quarter 2005) be received." 3. CAO-06-014 - KITCHENER PUBLIC LIBRARY (KPL) / CENTRE BLOCK FINANCIAL REVIEW The Committee considered Chief Administrator's Office report CAO-06-014, dated February 17, 2006 in response to Councillor M. Galloway's request at the February 13, 2006 Council meeting for a review of project costs related to the KPL's proposal for a new central library and underground parking on the Centre Block. Ms. C. Ladd reviewed the context of current costing of the project, stemming from reports prepared in 2003 through 2005 by Beckman Associates, Walter Fedy Partnership and Hanscomb Limited. She advised that the Centre Block Steering Committee (CBSC) sees merit FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 20, 2006 - 48 - CITY OF KITCHENER 3. CAO-06-014 - KITCHENER PUBLIC LIBRARY (KPL) / CENTRE BLOCK FINANCIAL REVIEW in conducting a review of the costing and two approaches have been provided for consideration. These include a peer review of the Hanscomb costing or an independent review using available project information, with costs ranging from $8,000. to $16,000. plus disbursements. She added that is recommended that the review not proceed until such time as a decision is made to proceed with the Request for Expression of Interest /Proposal (RFP) process for the Centre Block project. Mayor C. Zehr questioned if it would be appropriate for the library to undertake further public consultation given recent interest in the project, prior to doing a costing review. Ms. Ladd advised that the CBSC and KPL Board have discussed this issue and see value in understanding what the public's viewpoint is with respect to the project. Mayor Zehr asked that the question of additional public consultation be dealt with by the Library Board and a response provided at the March 20, 2006 Council meeting. Councillor J. Gazzola requested clarification as to the expectations of a costing review. He advised that it was his understanding that little could be changed in terms of costing given a high degree of confidence in building construction estimates, which represents the majority of costs. Ms. Ladd agreed that little is expected to change in terms of building costs; however, she pointed out that the CBSC sees benefit in reviewing other aspects of the project. These would include costing of furnishings, technology and library collection growths; as well as, determining the trueness of assumptions in cost reductions through economies of scale (Public-Private Partnership Procurement - P3 process). Councillor Gazzola questioned the appropriateness of spending additional dollars for a costing review if the majority will not change. Ms. Ladd noted that a projection of $5 M in efficiencies is assumed but is not likely to determine the fate of the project; adding that it is more likely public interest will determine if the project proceeds. Councillor J. Gazzola commented that he would prefer a second opinion on upgrading the main library in its existing location and an analysis of the projected economic impact of placing the library on the Centre Block. Mayor C. Zehr commented that expectations are also high in regard to the P3 process which is likely to be the ultimate test once Council has an opportunity to review the proposals and see to what degree the private sector is willing to participate in this project. Mayor Zehr questioned staff's intent in regard to timing of the costing review and Ms. Ladd advised that no further action was intended until after a decision is made on March 20, 2006 in regard to proceeding with the RFP process. Mayor C. Zehr brought forward a motion for consideration to complete a review of project costing, subject to a decision being made on March 20, 2006 to proceed with the RFP process, with the review process to be completed prior to the RFP document being issued to the public. He commented that the intent is to ensure funds are not expended unnecessarily while clearly stating the intent to undertake a review if the project does proceed. Councillor M. Galloway commented that he had requested the review based on concerns with the age of the reports relied upon and recent escalation in project costs over and above the City's initial commitment of $32.5 M. He did not agree with deferral, suggesting that review of the costing should be undertaken prior to proceeding with the Terms of Reference for the RFP to fully understand what the actual costing may be. He also raised concerns with regard to the parking structure, noting that recent information indicates that parking in the downtown is not as severe an issue as originally indicated. He suggested that the City's Parking Study should also be updated. Mayor C. Zehr noted that the costing review could include review of the Parking Study. A motion by Councillor J. Gazzola to defer and refer Mayor Zehr's motion to the March 20, 2006 Council meeting was brought forward for consideration. Councillor Gazzola subsequently withdrew his deferral motion on the basis that the original motion infers deferral as it is subject to a decision being made on March 20, 2006 in regard to proceeding with the RFP process. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 20, 2006 - 49 - CITY OF KITCHENER 3. CAO-06-014 - KITCHENER PUBLIC LIBRARY (KPL) / CENTRE BLOCK FINANCIAL REVIEW (CONT'D) On motion by Mayor C. Zehr - it was resolved: "That subject to a decision being made at the March 20, 2006 Council meeting to proceed with the Request for Expression of Interest/Proposal (RFP) process for the development of a new central library on the Centre Block, a review of project costing in relation to the new library and underground parking be completed, with a report to Council as to the findings of the review prior to public issuance of the Terms of Reference RFP document for the Centre Block project." 4. DELEGATION PRESENTATION -OIL SPILL AT PETER STREET Mr. Mark Irvine, Kitchener resident, spoke in regard to a bill in the amount of $1, 668.91 received from the City for clean-up of an incident that resulted in oil spilling from his vehicle onto Peter Street and subsequently contaminating the Schneider Creek. He advised that while driving in the subject area, a small obstacle on the roadway punctured his oil filter. On discovering the damage, he had his vehicle towed and subsequently repaired. Following the incident, he received a telephone call from City staff advising of the clean-up operation and that he would be held responsible for the associated clean-up costs. He suggested that the measures taken by the City were excessive in contrast to the limited amount of oil spilled from his vehicle. He added that the accident occurred through no malice or negligence on his part and as similar occurrences could happen to anyone, he suggested it was unreasonable to expect citizens to pay the clean-up costs. In response to questions, Mr. Irvine indicated that he was advised by his insurance provider that he could submit a claim but was given no assurances that it would be covered. He added that he was unsure as to the deductible for the comprehensive component of his insurance coverage. Mr. D. Locke advised that warm /snow weather conditions on the day of the incident caused the oil to run, carrying it into a catchbasin that empties into the Schneider Creek. The spill was reported by salt crews working in the area. The clean-up consisted of sanding and sweeping the street, and placing absorbent buoys in the Schneider Creek to collect oil seepage from the water. Councillor G. Lorentz questioned the frequency of such incidents and Mr. Locke advised that Operations may respond to calls 2 or 3 times per year. Mr. R. Browning advised that the Fire Department responds more frequently to similar occurrences and also bills for clean-up of any discharged contaminants. Councillor C. Weylie brought forward a motion for consideration to provide that Mr. Irvine not be charged with the costs associated with the clean-up of the oil spill. She commented on the unfortunate circumstances surrounding the incident and suggested that prior to the February 27, 2006 Council meeting staff could provide more detailed information. Councillor J. Smola asked that information be provided regarding the impact to the City's insurance pool if the costs are not charged to Mr. Irvine. Councillor J. Gazzola expressed the opinion that the individual should firstly explore cost recovery through his insurance provider and subsequently, approach the City to consider any costs not covered. Mayor C. Zehr requested that consideration of this matter be deferred and referred to the February 27, 2006 Council meeting to allow staff to meet with Mr. Irvine to obtain additional information and bring forward a recommendation. Councillor B. Vrbanovic asked that staff also provide a comparison of similar occurrences experienced by the Fire Department in terms of the number of incidents, nature and average billing. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 20, 2006 - 50 - CITY OF KITCHENER 4. DELEGATION PRESENTATION -OIL SPILL AT PETER STREET (CONT'D) On motion by Mayor C. Zehr - it was resolved: "That the request of Mr. Mark Irvine to waive payment of costs associated with clean-up of an oil spill onto Peter Street (and into Schneider Creek) in the amount of $1,668.91, be deferred and referred for consideration to the February 27, 2006 Council meeting, pending receipt of additional information from Mr. Irvine concerning his insurance coverage and a recommendation from staff." 5. CAO-06-011 -STAFF RECOGNITION PROGRAM The Committee considered Chief Administrator's Office report CAO-06-011, dated February 14, 2006, requesting an increase in funding from $50,000. to $100,000. for the City-wide Staff Recognition Program. Mr. D. Paterson advised that a new Performance Management Program was implemented in 2003 based on variable pay for senior management positions and a cash pool of $50,000. for recognition of outstanding performance of individuals or groups throughout the organization. The funds for both is charged to the City's gapping account. Ms. C. Sadeler commented that the Senior Leadership Team undertook a review of the program in 2005 and it was decided to discontinue the performance based bonus system for management in favour of improving the organization-wide performance recognition program. The revised program recognizes the importance of all staff and provides for special acknowledgement of staff who go beyond their duties to meet the values and principles of the City. Ms. Sadeler added that research shows that recognition is a key component in recruiting and retaining talented, dedicated staff. If approved, the revised program will be launched to all staff and management training in recognition will be provided at LE.A.D. workshops. Mayor C. Zehr asked for clarification of the intended use of the additional funds and a breakdown of funds expended under the current budget. Ms. C. Ladd advised that the additional funds will enhance managers' abilities to recognize individuals and team efforts, and a portion of the funding will also be used for roll-out and training. It was agreed that a report would be provided on the status of the current budget and how the revised program is to be implemented. Councillor J. Gazzola asked for clarification of the concerns noted regarding recruitment and retainment of employees. Mr. D. Paterson commented that corporately the goal is to become known as the employer of choice to enhance ability to attract the best candidates. Ms. C. Ladd added that the City is beginning to experience issues with hiring quality candidates and staff have made arrangements for awell-known authority on the subject to attend Council's next Strategic Planning Session. Councillor M. Galloway suggested, and it was agreed, that consideration of staff's request to increase the recognition fund be referred to the next Strategic Planning Session to allow thorough discussion of the recognition program and staff's proposal. On motion by Councillor M. Galloway - it was resolved: "That the request of staff to increase funding of the City-wide Staff Recognition Program to $100,000. from $50,000., as outlined in Chief Administrator's Office report CAO-06- 011, be deferred and referred for consideration to the April 10, 2006 special Council meeting (Strategic Planning Session) to allow thorough discussion of the issues raised and additional information to be provided, including: a breakdown of the existing program budget; intended use of the additional funds; and clarification of associated concerns related to the recruitment process." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES FEBRUARY 20, 2006 - 51 - CITY OF KITCHENER 6. ADJOURNMENT On motion, the meeting adjourned at 5:00 p.m. Janet Billett, AMCT Committee Administrator