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HomeMy WebLinkAboutFinance & Corp - 2002-05-13 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES Mav 13. 2002 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, chaired by Councillor J. Ziegler, commencing at 2:37 p.m., with the following members present: Councillors C. Weylie, M. Galloway, B. Vrbanovic and J. Smola. Others Present: Ms. P. Houston, Ms. R. Pitfield, Ms. J. Koppeser Ms. A. Menon, Ms. A. Tanner, Ms. D. Gilchrist and Messrs J. Fielding, R. Pritchard, G. Sosnoski, F. Pizzuto, R. Gosse, S. Turner, D. Quinn and M. Bolger 1. FIN-02-025 K-W ART GALLERY - REQUEST FOR LOAN GUARANTEE The Committee was in receipt of Financial Services Department report FIN-02-025, dated May 10, 2002, recommending that the City enter in an agreement with the K-W Art Gallery to guarantee a line of credit for the Gallery. The recommendation for the agreement is based on certain conditions, including the guarantee being fully secured as a first call on unencumbered artwork owned by the K-W Art Gallery. Messrs A. Bogusky, T. Mennill and M. Carty of the Art Gallery were in attendance to advise of their support of the staff recommendation as contained in the staff report. They thanked staff for their support which will greatly assist the Gallery with further fund raising, and allow the Gallery to operate with some stability. The delegation advised of their projections which indicate that within 3 to 5 years the Gallery will not have to rely on banked financing. The delegation also advised that the Gallery's collection is valued at approximately $6M, so the security for the guarantee is substantial, as the City will have a claim on the overall collection. When questioned, the delegation advised that the 2001 deficitfor the Gallery is approximately $90, 000., and they are currently running a debt of approximately $35,000. for 2002. They emphasized that most of their revenues come in the second half of the year. Mr. Bogusky advised the Gallery is in the process of developing a new strategic plan and business plan and although interim steps for enhancing the prospects of the Galleryare being taken, a full plan has not yet been finalized. Several members of the Committee identified concerns with respect to the lack of information provided, specifically the current financial status of the Gallery, and the lack of a detailed business plan and strategic plan, the following information being requested: past financial statements, current financial statements, a strategic plan and a business plan. Councillor J. Ziegler questioned why the bank would not be willing to accept the Gallery's Art Collection as security for this line of credit, without a guarantee from the City of Kitchener. Mr. Bogusky advised that the bank does want to deal with the potential public criticism which may result should they have to claim the security. Councillor Ziegler advised the City would not want to be in this position either. He stated he could not support the staff recommendation until the Art being used as security is identified, and a third party is established to handle the sale of the Art should it be necessary. Councillor C. Weylie moved the recommendation contained in the staff report. Speaking in support of the recommendation, she noted the Gallery's change in direction and optimism since the new Chair took office. Councillor Vrbanovic suggested an amendment to Councillor Weylie's motion that the agreement be approved in principle, that staff incorporate the concerns identified by this Committee into the agreement with the Gallery, the wording which is to be approved by Council. Councillor Weylie accepted Councillor Vrbanovic amendment as a friendly amendment. On motion by Councillor C. Weylie - it was resolved: "That approval in principal be given to an agreement between the City of Kitchener and the K-W Art Gallery whereby the City guarantees an operating line of credit for the Gallery with the T-D Canada Trust subject to the following terms: 1) the maximum amount of the guarantee shall be $200,000; FINANCE & CORPORATE SERVICES COMMITTEE MINUTES Mav 13. 2002 - 41- CITY OF KITCHENER 1. FIN-02-025 - K-W ART GALLERY - REQUEST FOR LOAN GUARANTEE ICONT'DI 2) the guarantee shall be fully secured by a first call on unencumbered art work owned by the K-W Art Gallery; 3) the term of the guarantee shall not exceed 10 years; 4) the guarantee, security agreements, and contract wording shall be satisfactory to the City Solicitor, and shall receive the approval of Council; 5) the K-W Art Gallery shall provide to the City with a detailed 5 to 10 year business plan to eliminate the total accumulated deficit. The said business plan shall comply with the following guidelines, and shall be received for approval by the City within six months of this resolution: a) increases in the operating grants from the City of Kitchener shall not exceed inflation; b) any identified need for support from the City of Kitchener be in the form of short term or one-time funding to enable the K-W Art Gallery to implement its business plan; and, c) the plan should identify all other sources of revenue along with a strategy for stabilizing other funding sources." 2. DTS-02-105 - GRANT UNDER DOWNTOWN FINANCIAL INCENTIVES - THE CORA GROUP - 49 FREDERICK STREET & - 50 QUEEN STREET NORTH The Committee was in receipt of Development and Technical Services Department report DTS- 02-105, date April 29, 2002, recommending a grant in the amount of $2,602.50 under the Downtown Financial Incentive Program for building permit fees relative to renovations at 49 Frederick Street and 50 Queen Street North. It was resolved: "That the application of The Cora Group for a 'Grant-in-Iieu of Building Permit Fee' under the Downtown Financial Incentive Program, for renovations at 49 Frederick Street and 50 Queen Street North, in the amount $2,602.50, be approved." 3. FIN-02-020 - AGREEMENT WITH MUNICIPAL PROPERTY ASSESSMENT CORPORATION DELEGATION OF SIGNING AUTHORITY The Committee was in receipt of Financial Services Department report FIN-02-020, dated May 6, 2002, recommending that signing authority for the annual 'Licence to Use Property Assessment Information Agreement' and 'Request for Administrators Account' with the Municipal Property Assessment Corporation be delegated to the General Manager of Financial Services and City Treasurer, on the understanding that any substantial changes made to these agreements will be presented to Council for consideration. It was resolved: "That the General Manager of Financial Services and City Treasurer or designate be delegated authority to sign the annual 'Licence to Use Property Assessment Information Agreement' and 'Request for Administrator's Account' with the Municipal Property Assessment Corporation, in the form as attached to Financial Services Department report FIN-02-020, subject to the satisfaction of the City Solicitor. " 4. CRPS-02-110 - ROUTINE ADMINISTRATIVE CHANGES TO COUNCIL POLICIES FINANCE & CORPORATE SERVICES COMMITTEE MINUTES Mav 13. 2002 - 42- CITY OF KITCHENER The Committee was in receipt of Corporate Services Department report CRPS-02-11 0, dated May 7, 2002, recommending routine administrative changes to certain Council Policies. It was resolved: "That routine administrative changes to the Council Policies as referenced in Corporate Services Department report CRPS-02-11 0 be approved." 5. CRPS-02-114 - JESUSFEST 2002 - REQUEST TO OPERATE CONCESSION STANDS - EXEMPTION FROM MUNICIPAL CODE CHAPTER 450 (NOISE) - VICTORIA PARK - JUNE 15. 2002 The Committee was in receipt of Corporate Services Department report CRPS-02-114, advising of the request of 'JesusFest 2002', for an exemption from Municipal Code Chapter 450 (Noise) and permission to operate concessions for their event to take place at Victoria Park on June 15, 2002. It was resolved: "That the request of 'JesusFest 2002' to operate concession stands during their event at Victoria Park on June 15, 2002 be approved, provided the necessary licence, including Fire and Health approvals, is obtained; and further, That the request of 'JesusFest 2002' for an exemption from Municipal Code Chapter 450 (Noise) for their event to take place at Victoria Park on June 15, 2002 be approved." 6. CRPS-02-115 - KITCHENER DOWNTOWN BUSINESS ASSOCIATION - CRUISING ON KING STREET - JULY 5, 2002 - REQUEST FOR FOOD VENDORS REQUEST FOR EXEMPTION FROM MUNICIPAL CODE CHAPTER 450 INOISEI The Committee was in receipt of Corporate Services Department report CRPS-02-115, dated May 8, 2002, advising of the request of the Kitchener Downtown Business Association for four food vendors and a car care vendor to operate booths on King Street during the "Cruising on King Street" event to take place on July 5, 2002. The KDBA also requests an exemption from Municipal Code Chapter 450 (Noise) for this event. It was resolved: "That the request of the Kitchener Downtown Business Association to locate four food vendors on King Street during the annual 'Cruising on King Street' event on July 5, 2002, be approved, provided the necessary licence, including Fire and Health approvals, is obtained; and, That Classic Auto Cleaning, 69 Joseph Street, be permitted to operate a stand on King Street during this event; and further, That the request of the Kitchener Downtown Business Association for an exemption from Municipal Code Chapter 450 (Noise) for 'Cruising on King Street', July 5, 2002, be approved." 7. CRPS-02-113 - ASSIGNMENT OF LEASE FINANCE & CORPORATE SERVICES COMMITTEE MINUTES Mav 13. 2002 - 43- CITY OF KITCHENER - CITY HALL WEDDING CHAMBER & ROSE CHAPEL The Committee was in receipt of Corporate Services Department report CRPS-02-113, dated May 7, 2002, recommending that Associated Ministerial Services Inc. be permitted to assign its interest in the lease of the City Hall Wedding Chambers and Rose Chapel to Patricia Fretwell. It was resolved: "That the Mayor and Clerk be authorized to sign a consent to permit Associated Ministerial Services Inc. to assign its interest in the lease of the City Hall Wedding Chambers and Rose Chapel to Patricia Fretwell." 8. FIN-02-024 - ADJUSTMENT TO WATERMAIN CLEANING SCHEDULE The Committee was in receipt of Financial Services Department report FIN-02-024, dated May 3, 2002, with respect to recent water quality complaints and containing a recommendation as to the best solution to these problems, including adjustments to the watermain cleaning schedule to concentrate on areas of greatest need. On motion by Councillor J. Smola- it was resolved: "That the watermain cleaning schedule be adjusted to focus on cleaning areas of greatest need." 9. CRPS-02-112 - FORMATION AND MEMBERSHIP - AD HOC COMMITTEE ON COMPANION ANIMALS WORKING GROUP - ESTABLISH & FINANCIAL COSTS OF A SPAY/NEUTER PROGRAM The Committee was in receipt of Corporate Services Department report CRPS-02-112, dated May 7, 2002, recommending the formation of and appointment to an Ad Hoc Committee on Companion Animals Working Group. This Working Group is to be charged with the responsibility of negotiating an agreement between the Cities of Kitchener and Waterloo and the Kitchener-Waterloo and North Waterloo Humane Society for the creation and funding of a spay/neuter program. On motion by Councillor B. Vrbanovic - it was resolved: "That an Ad Hoc Committee on Companion Animals Working Group be formed to negotiate an agreement between the Cities of Kitchener and Waterloo and the Kitchener- Waterloo and North Waterloo Humane Society for the creation and funding of a spay/neuter program, in accordance with the provisions set out in Corporate Services Department report CRPS-02-112; and further, That the following be appointed as Kitchener's representatives on this Ad Hoc Committee: a) voting members: Councillor J. Ziegler and Dr. Gary Goeree; b) non-voting members: Ms. Anne Menon and Ms. Rosemary Upfold." 10. CRPS-02-094 - AMENDMENTS TO AND REPEAL OF COUNCIL POLICIES RESPECTING STANDING COMMITTEES The Committee was in receipt of Corporate Services Department report CRPS-02-094, dated April 24, 2002, recommending changes to Council's Policies with respect to Standing Committees, in light of the Committee restructuring approved by Council in 2001 . Councillor J. Ziegler requested Section 5 of Council's existing Policy with respect to the 10. CRPS-02-094 - AMENDMENTS TO AND REPEAL OF COUNCIL POLICIES RESPECTING STANDING COMMITTEES ICONT'DI FINANCE & CORPORATE SERVICES COMMITTEE MINUTES Mav 13. 2002 - 44- CITY OF KITCHENER Finance and Administration Committee be included in the new Terms of Reference for the Finance and Corporate Services Committee. On motion by Councillor B. Vrbanovic- it was resolved: "That Council Policies 1-72 (Community Services Committee-Terms of Reference), 1-85 (Finance and Administration Committee-Terms of Reference), 1-130 (Planning and Economic Development Committee-Terms of Reference) and 1-133 (Standing Committee Meetings) be amended as attached to report CRPS-02-094 and be re-numbered accordingly, save that those items listed in Section 5 of Council Policy 1-85 shall be included in the new Terms of Reference for the Finance and Corporate Services Committee; and further, That Council Policies 1-84 (Finance and Administration Committee- Agenda), 1-125 (Planning and Economic Development Committee- Public Meetings) and 1-132 (Public Works and Transportation Committee-Terms of Reference) be repealed." 11. CRPS-02-095 AMENDMENTS TO AND REPEAL OF COUNCIL POLICIES TERMS OF REFERENCE - COUNCIL'S ADVISORY COMMITTEES The Committee was in receipt of Corporate Services Department report CRPS-02-095, dated May 1, 2002, recommending changed to Council's Policies with respect to appointment to and Terms of Reference for Council's Advisory Committees. These changes implement Council's decision of August 2001 , relative to the restructuring of its Advisory Committees. On motion by Councillor B. Vrbanovic - it was resolved: "That Council Policies 1-5 (Appointments-Voting Procedures), 1-60 (Appointment-Lay Members-Length of Service), and 1-61 (Appointment-Special Committee) be consolidated into one new Policy entitled 'Appointment-Boards and Committees', as attached to Corporate Services Department report CRPS-02-095 and the individual Policies be repealed; and, That Council Policies 1-63 (Arts and Culture Advisory Committee-Terms of Reference), 1- 75 (Economic Development Advisory Committee-Terms of Reference), 1-81 (Environmental Committee-Terms of Reference) and 1-90 (Kitchener Downtown Advisory Committee-Terms of Reference), be amended as attached to Corporate Services Department report CRPS-02-095 and re-numbered accordingly; and, That Council Policies 1-71 (Community Services Advisory Committee-Terms of Reference), 1-79 (Employment Equity Review Committee-Terms of Reference), 1-83 (Ethno-Cultural Advisory Committee-Terms of Reference), 1-97 (Kitchener Safe City Committee-Terms of Reference) and 1-131 (Public Art Committee-Terms of Reference) be repealed; and further, That the draft Policies attached to report CRPS-02-095, entitled 'Safe & Healthy Community Advisory Committee-Terms of Reference' and 'Heritage Kitchener-Terms of Reference', be adopted as Council Policy and numbered accordingly." 12. CRPS-02-117 - BY-LAW TO AMEND MUNICIPAL CODE CHAPTER 665 (PROPERTY STANDARDS FOR MAINTENANCE & OCCUPANCY) - STAGNANT WATER IN SWIMMING POOLS FINANCE & CORPORATE SERVICES COMMITTEE MINUTES Mav 13. 2002 - 45- CITY OF KITCHENER The Committee was in receipt of Corporate Services Department report CRPS-02-117, dated May 8, 2002, recommending an amendment to Municipal Code Chapter 665 (Property Standards for Maintenance & Occupancy) to require swimming pools to be kept clear of stagnant water. On motion by Councillor J. Smola- it was resolved: "That a by-law be considered at the May 27, 2002 Council meeting, to amend Municipal Code Chapter 665 (Property Standards for Maintenance and Occupancy), to require swimming pools to be kept clean of stagnant water." 13. INFINISHED BUSINESS LIST At the request of Councillor C. Weylie, it was generally agreed that the first item on the Unfinished Business List for the Finance and Corporate Services Committee be removed. 14. ADJOURNMENT On motion, the meeting adjourned at 3:17 p.m. Dianne H. Gilchrist Committee Administrator