HomeMy WebLinkAboutFin & Corp Svcs - 2006-03-06FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
MARCH 6, 2006 CITY OF KITCHENER
The Finance and Corporate Services Committee met this date, commencing at 2:40 p.m.
Present: Councillor M. Galloway -Vice-Chair
Mayor C. Zehr and Councillors G. Lorentz, J. Smola, J. Gazzola and C. Weylie.
Staff: C. Ladd, Chief Administrative Officer
G. Sosnoski, General Manager, Corporate Services & City Clerk
P. Houston, General Manager, Financial Services & City Treasurer
R. Browning, Interim General Manager, Development & Technical Services
A. Pappert, General Manager, Community Services
R. Regier, Executive Director of Economic Development
D. Quinn, Director of Utilities
L. Proulx, Director of Facilities Management
J. Willmer, Director of Planning
U. Bradford, Business Development Officer
B. Steiner, Environmental Planner
P. Wetherup, Parks Planner
J. Gillett, Committee Administrator
1. FIN-06-005 - 2005 ANNUAL SUMMARY WATER REPORT
The Committee considered Finance and Corporate Services Department report FIN-06-005,
dated February 17, 2006 detailing a Summary Drinking Water Report as required by the
Ministry of Environment.
On motion by Councillor C. Weylie -
itwas resolved:
"That the 2005 Summary Drinking Water Report (FIN-06-0051 A. Mick), dated February
17, 2006 be accepted as per O.Reg170103 Section 22 of the Safe Drinking Water Act."
2. CRPS-06-039 -ENVIRONMENTAL COMMITTEE RECOMMENDATION
- INTEGRATED GEOTHERMAL ENERGY SYSTEMS
The Committee considered Corporate Services Department report CRPS-06-039, dated
February 24, 2006 concerning a recommendation by the Environmental Committee to endorse
the use of energy efficient designs and technologies, such as an integrated geothermal
heating and cooling system.
On motion by Councillor C. Weylie -
itwas resolved:
"That the use of energy efficient designs and technologies, such as an integrated
geothermal heating and cooling system, be endorsed; and further,
That staff be directed to present to a future meeting of the Environmental Committee
information regarding the applicability of incorporating integrated geothermal heating
and cooling systems for future City initiated construction projects."
3. CRPS-06-033 -ENVIRONMENTAL COMMITTEE RECOMMENDATION
-NATURAL LANDS ACQUISITION FUND
The Committee considered Corporate Services Department report CRPS-06-033, dated
February 17, 2006, concerning a recommendation by the Environmental Committee to
establish a Natural Lands Acquisition Fund beginning with the 2007 capital budget.
Development and Technical Services Department report, dated January 16, 2006 was
attached to report CRPS-06-033 as background information.
Mr. J. Willmer advised that the proposed fund is part of a long-term strategy for preservation of
natural lands, not all of which are currently protected through government policies. Mr. Willmer
noted that the City's first priority is preservation, followed by acquisition of natural lands into
public ownership. When opportunity has arisen in development applications, he advised that a
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
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3. CRPS-06-033 -ENVIRONMENTAL COMMITTEE RECOMMENDATION
-NATURAL LANDS ACQUISITION FUND (CONT'D)
portion of the 5% parkland dedication has been used to acquire natural lands in addition to
providing for park open space. The difficulty with this practice, however, is that the City is not
reaching its full potential of active parkland. The proposed fund will provide a mechanism to
offer environmental protection for natural lands without having to sacrifice the City's Park Trust
Fund.
Ms. B. Steiner reviewed the benefits of acquiring natural lands worthy of preservation and
noted in recent surveys, citizens have placed high value on their preservation. Acquisition of
natural lands into public ownership offers greater assurance that the lands will be appropriately
managed and preserved. She commented on practices of other municipalities which vary from
set policy with annual funding to community trust funds, and / or a combination of both. Ms.
Steiner advised that staff are proposing Kitchener consider a combination of approaches
beginning with establishment of a Natural Lands Acquisition Fund in the 2007 capital budget.
In response to questions, Ms. Steiner advised that an annual budget amount will be developed
in consultation between Planning and Community Services staff and could vary year to year if
based on staging of development.
Mayor C. Zehr commented that original plans for subdivision development often include 1 to 2
schools around which parkland space is proposed to be situate. He noted that in many
instances if the school does not proceed the lands are consumed back into the development,
resulting in lost opportunity for the City to increase its active parkland. Mayor Zehr suggested
that staff investigate a means to dedicate the lands regardless, to ensure the City has options
in regard to the lands if a school does not proceed.
Councillor J. Gazzola questioned if a policy should be established to require dedication of
parkland as opposed to allowing cash-in-lieu of the 5% parkland dedication. Mr. P. Wetherup
advised that it is preferable to maintain the option to do either or both as in some cases, the
lands may be too small for practical use making cash-in-lieu a more viable option.
On motion by Councillor G. Lorentz -
itwas resolved:
"That in recognizing the public's desire to protect natural lands, and whereas in some
instances, natural lands worthy of conservation cannot be protected by planning policy
alone, and as such the best guarantee for their conservation becomes public
ownership; consideration be given to establishing a Natural hands Acquisition Fund
commencing with the 2007 Capital budget; and,
That Planning staff work with Community Services staff in respect to parkland
dedication policies, the Parkland Trust Fund, and resources available for natural lands
management; and further,
That potential budgeting for future natural lands acquisition be co-ordinated with the
City's annual Staging of Development report."
4. CAO-06-015 -GRAND RIVER WEST BUSINESS PARK -SALE OF LOT 8A
The Committee considered Chief Administrator's Office report CAO-06-015, dated February
27, 2006 regarding an Offer to Purchase part of Part 12, Registered Plan 58R14324 in the
Grand River West Business Park.
Ms. V. Bradford advised that the lot is located on Bingemans Centre Drive and is the last lotto
be sold in the Grand River West Business Park. The 2.56 acre lot is being sold at $150,000.
per acre and the purchaser proposes to construct a 40,000 sq. ft. manufacturing building, with
15% gross floor devoted to office use and the balance to be subdivided to accommodate light
manufacturing uses. The sale is scheduled to close as of April 1, 2006 with a buy back option
should construction not commence within 1 year from the date of closing or the building not be
completed and occupied within 2 years.
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4. CA4-06-015 -GRAND RIVER WEST BUSINESS PARK -SALE OF LOT 8A (CONT'D)
Mayor C. Zehr requested that staff report to a future Finance and Corporate Services
Committee meeting summarizing all land sale activities, including average selling price, within
the Grand River West Business Park.
On motion by Councillor J. Smola -
itwas resolved:
"That the conditional Offer to Purchase from Melloul Blarney in Trust for a corporation
to be formed, be accepted for part of Part 12 on Registered Reference plan 58814324,
being an irregular shaped parcel of land in the Grand River West Business Park, having
an area of approximately 2.56 acres, at a price of $150,000. per acre, for a total
purchase price of $384,000. and being identified as Proposed dot 8A on Schedule B
attached to Chief Administrator's Office report CAO-06-015; and,
That the Mayor and Clerk be authorized to execute any other necessary documentation
required by the City Solicitor to complete the sale transaction; and further,
That staff report to a future Finance and Corporate Services Committee meeting
summarizing land sale activities and financials relative to the Grand River West
Business Park."
5. FIN-06-006 -NATURAL GAS RATES
The Committee considered Financial Services Department report FIN-06-006, dated February
28, 2006 recommending changes in the supply, transportation and delivery components of
natural gas rates, resulting in a combined total increase of 7.8%.
Mr. D. Quinn advised that the City's supply rates have remained constant throughout the winter
months at a lower rate than other supply companies; however, an increase in the supply rate is
required to meet projected gas costs for the coming year. He added that even though an
increase is proposed, Kitchener Utilities natural gas rates will remain lower than the proposed
decrease in Union Gas rates. Mr. Quinn noted that Utilities staff continue to pursue buying
opportunities to keep the supply rate constant; however, the supply program is a cost based
service which cannot be cross-subsidized with other utilities profits. Accordingly, staff are
reserving the right to review and adjust rates in the fall of this year if needed.
On motion by Mayor C. Zehr -
itwas resolved:
"That the supply component of the natural gas rates be increased to 31.9 cents per
cubic meter from 27.7 cents per cubic meter for system gas customers of the City of
Kitchener effective April 1, 2006; and,
That the transportation component of the natural gas rates be decreased to 3.529 cents
per cubic meter from 4.076 cents per cubic meter for system gas customers of the City
of Kitchener effective April 1, 2006 to reflect the interim rates charged byTrans-Canada
Pipelines as previously approved by the National Energy Board; and further,
That the delivery components of the natural gas rates be changed as proposed in
Appendix 'A', as attached to Financial Services Department report FIN-06-006, for all
Kitchener delivery customers effective April 1, 2006."
6. FIN-06-007 -GAS CAPITAL SURPLUS -GAS INFRASTRUCTURE
The Committee considered Financial Services Department report FIN-06-007, dated February
22, 2006 concerning transfer of funding from the Gas Capital Investment Fund to the
Gasworks Capital budget to support gas infrastructure programs in 2006.
In response to questions, Mr. Quinn advised that prior to the 2006 budget deliberations, staff
were unable to completely quantify a number of initiatives requiring capital investment but
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6. FIN-06-007 -GAS CAPITAL SURPLUS -GAS INFRASTRUCTURE (C4NT'D)
have now had opportunity to refine their original estimate of $2 M down to $1.8 M. The funding
is required for extension of existing gas infrastructure programs and new programming to meet
regulatory standards.
At the request of Councillor G. Lorentz, Mr. Quinn agreed to provide information as to the
status of the meter replacement program regarding areas completed and / or yet to be done.
On motion by Councillor C. Weylie -
itwas resolved:
"That a transfer of $1,000,000. from the Gas Capital Investment Fund to Gasworks
Capital budgets to support gas infrastructure programs that will be initiated in 2006 be
approved, as follows:
• Statutory Meter Changes $344,000.
• Meter Replacement $250,000.
• Regulator Pit Remediation $244,000.
• Inside Regulators $150,000.
• Pipeline Integrity Management $100,000.
7. ACKNOWLEDGEMENT -GENERAL MANAGER OF CORPORATE SERVICES AND CITY
CLERK
Councillor M. Galloway recognized Gary Sosnoski, General Manager of Corporate Services
and City Clerk, who is leaving his position at the City of Kitchener after 18 years of service to
accept a position with the Region of Waterloo as Commissioner of Corporate Resources. Mr.
Sosnoski was acknowledged for his stable, common sense approach to the many issues he
has dealt with corporately and for his exemplary performance as a senior public official.
8. CRPS-06-036 -HAZARDOUS MATERIALS ABATEMENT COSTS FAR F4RSYTH
DEMOLITION
The Committee considered Corporate Services Department report CRPS-06-036, dated
February 28, 2446 requesting funding for payment of costs associated with hazardous
materials abatement related to the Forsyth demolition.
Mr. L. Proulx advised that under normal circumstances hazardous substances are removed
prior to demolition of a building; however, in this instance by Order of the Chief Building
Official immediate demolition of phases 1, 2 and 4 of the Forsyth building was undertaken for
reasons of safety. Mr. Proulx added that by law abatement of hazardous materials is still
required and the funding is requested to carry out the work to meet provincial regulations.
In reference to disposal of the material, staff advised that the hazardous materials must go to
the Regional landfill site and the City will incur tipping fees of $92,500. Several members of
the Committee were of the opinion that clarification should be provided by the Region as to
their reasons for considering the materials unsuitable for re-use in regard to building a road
base within the landfill site. It was suggested that further negotiation be undertaken with the
Region to determine possible alternatives that could reduce the disposal costs.
A motion by Councillor J. Gazzola was brought forward for consideration to defer and refer
consideration of this matter to the March 20, 2006 Council meeting to be considered with all
other issues pertaining to the Centre Block and allow further negotiation with the Region
regarding disposal of the hazardous materials. This motion was voted on and host.
It was noted that any recommendation arising from this Committee with regard to this matter
would be dealt with at the special Council meeting to be held later this date.
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8. CRPS-06-036 -HAZARDOUS MATERIALS ABATEMENT COSTS FOR FORSYTH
DEMOLITION (CONT'D)
On motion by Councillor J. Smola -
itwas resolved:
"That a purchase order in the amount of $150,000. be processed for the payment of
costs related to hazardous materials abatement, with the work to be paid from the
Economic Development Investment Fund, for the Forsyth buildings phases 1, 2 and
4, as outlined in Corporate Services Department report CRPS-06-036; and further,
That staff undertake further discussion with the Regional Municipality of Waterloo to
investigate possible alternatives for disposal of the hazardous materials that may result
in cost reductions."
9. CRPS-06-037 -BUILDING MAINTENANCE COSTS
- 48 ONTARIO STREET NORTH (FORMER LEGION BUILDING)
- 11 YOUNG STREET (MAYFAIR HOTEL)
-156-158 KING STREET WEST (FORMER HYMMEN HARDWARE)
The Committee considered Corporate Services Department report CRPS-06-037, dated
February 28, 2006 requesting funding for building repairs and maintenance for City-owned
properties on the Centre Block site, being: 48 Ontario Street North, l l Young Street and 156-
158 King Street West.
In response to questions, Mr. G. Sosnoski advised that in bringing this matter forward staff
attempted to find lower cost solutions; however, the repairs outlined are necessary to prevent
further deterioration and ensure suitability of the structures for any future adaptive re-use. Ms.
C. Ladd added that the repairs are proposed at this time based on a recent decision of this
Committee to support preservation of the structures by adding them to the Heritage Inventory.
On motion by Councillor J. Smola -
itwas resolved:
"That $225,000. be taken from the Economic Development Investment Fund (E.D.I.F.)
to fund building repairs and maintenance for 48 Ontario Street North (former Legion
building),11 Young Street (Mayfair Hotel), and 156-158 King Street West (former
Hymmen Hardware), as outlined in Corporate Services Department report CRPS-06-
037; this amount including 2006 operating costs for the former Legion building,
municipally known as 48 Ontario Street North."
10. CRPS-06-038 -NEW FIRE HALL N0.7 -PROPOSED LOCATION AND DESIGN
The Committee considered Corporate Services Department report CRPS-06-038, dated
February 28, 2006 regarding construction of a new Fire Hall (No.7) on City-owned lands at
Huron Road, west of Fischer-Hallman Road.
Mr. L. Proulx advised that focus was shifted from negotiating acquisition of lands to
investigating the feasibility of utilizing City-owned lands on Huron Road for construction of the
new fire hall. At the same time, staff were also asked to consider combining the new fire hall
with other uses, such as a community centre. Mr. Proulx advised that the Huron Road site is
considered ideal for this project and while it requires sanitary servicing to be installed, the
associated costs will be substantially lower than if new land is purchased for the project. In
regard to combined facilities, Mr. Proulx pointed out that construction of a community centre
on the West side is not scheduled in the Capital Forecast until 2013 whereas the fire hall is
slated for 2007. Accordingly, staff are recommending that the fire hall be constructed as a
stand alone facility; however, it was noted that the size of the land would not preclude future
additions to the site. Mr. Proulx added that the City will achieve cost savings from the use of
standard design drawings used in construction of previous fire halls.
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10. CRPS-06-038 -NEW FIRE HALL N0.7 -PROPOSED LOCATION AND DESIGN (CONT'D)
On motion by Councillor G. Lorentz -
itwas resolved:
"That Fire Hall No. 7 be constructed on City-owned lands fronting onto Huron Road to
the west of Fischer-Hallman Road and not be combined with any other facility.
11. CAO-06-017 -ECONOMIC DEVELOPMENT ADVISORY COMMITTEE RECOMMENDATION
-EAST SIDE LANDS
The Committee considered Chief Administrator's Office report CAO-06-017, dated February
27, 2006 concerning a recommendation by the Economic Development Advisory Committee
(EDAC) to request the Region of Waterloo to expedite development of the East Side
employment lands, as well as construction of the new Highway 7 between Kitchener and
Guelph; and to consider diversity of lot configurations on the East Side lands, including smaller
sized industrial lots.
Mr. R. Regier advised that a report which assesses the supply and demand for employment
lands in the Region will soon be considered by the Regional Planning and Works Committee.
As such, it was considered appropriate timing to present the City's position regarding
development of employment lands to the Region.
Mayor C. Zehr noted that the position outlined in the Regional report indicates their focus is
toward larger sized lots, to be followed by a review at an appropriate time to determine if
smaller sized lots are warranted. Mr. Regier pointed out that based on the majority of sales in
Kitchener being in the range of 2 to 5 acres, EDAC believes there is an immediate need to
plan for smaller sized lots at the outset. He added that at this time availability of employment
lands in Kitchener equates to a 2 to 3 year supply and will be at a critical stage in the near
term if alternatives are not made available.
Councillor J. Gazzola questioned if the shortage of employment lands was a result of previous
decisions of Council. Mr. Regier pointed out that development of employment lands on the
West side of Kitchener was evaluated but was determined too costly and difficult to proceed
with. In the short term, the City proceeded to develop lots on Bingemans Centre Drive which
have now been fully sold and has looked upon the East side lands (Breslau North) as the long
term solution. He added that the City also has some opportunity for additional lands
dependent on the outcome of the consolidated maintenance facility project, as well as through
infill 1 Brownfield redevelopment and severance of privately owned parcels of land.
Mayor C. Zehr commented that the City has for some time proactively pursued opportunities
for employment lands, noting that the Economic Development Investment Fund was firstly
established for the purpose of working with the private sector to develop employment lands
and is now available to do so again.
On motion by Councillor C. Weylie -
itwas resolved:
"That Kitchener Council requests Regional Council to expedite the development of the
East Side Employment Lands in order to ensure that the strength of the local and
regional economy will not be impacted negatively because of lack of available, serviced
employment lands; and,
That City and Regional Councils make every possible effort to persuade the Province to
expedite construction of the new Hwy. 7 between Kitchener and Guelph in order to
accommodate these new employment lands as the businesses who will locate
there must have transportation infrastructure for the purposes of moving people and
goods to and from the Business Park; and further,
That outside of this recommendation, the City of Kitchener has concerns regarding the
future availability of smaller lots, based on past and current sales, and believes there
needs to be flexibility in the diversity of lot configuration on the East Side lands."
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12. CAO-06-018 -ECONOMIC DEVELOPMENT ADVISORY COMMITTEE RECOMMENDATION
-CENTRE BLOCK
The Committee considered Chief Administrator's Office report CAO-06-018, dated February
27, 2006 concerning a recommendation by the Economic Development Advisory Committee
(EDAC) advising of their support for the Kitchener Public Library 1 Centre Block Project
Committee approach to development of the Centre Block and recommendation that the
Project Committee move ahead with the Request For Proposals (RFP), including a new main
library.
A motion by Mayor C. Zehr to receive the recommendation of EDAC was brought forward for
consideration. Councillor C. Weylie noted that a consensus among the Project Committee
members had not been reached in regard to the RFP development recruitment process.
Accordingly, she asked that report CAO-06-018 be revised by ending the last sentence under
the heading "Report" after the phrase "Centre Block project".
On motion by Mayor C. Zehr -
itwas resolved:
"That the recommendation of the Economic Development Advisory Committee (EDAC),
as contained in Chief Administrator's Office report CAO-06-018 (EDAC
Recommendation -Centre Block) dated February 27, 2006, expressing their support for
the Kitchener Public Library /Centre Block Project Committee's current approach to the
development of the Centre Block site and recommendation that they move ahead with
the Request For Proposals (RFP), including a new main library, be received; and
further,
That report CAO-06-018 be revised by ending the last sentence under the heading
'Report' after the phrase 'Centre Block project' and deleting the remainder of the
sentence, as not all Project Committee members were in agreement with the RFP
development recruitment process."
13. CAO-06-019 -SHARED SERVICES -PROGRAM REVIEW AND UPDATE
The Committee considered Chief Administrator's Office report CAO-06-019, dated February
27, 2006 concerning revised Terms of Reference for the Kitchener Waterloo Joint Service
Initiatives Committee.
Ms. C. Ladd commented on the 5 originating initiatives considered by the Joint Committee
which included: woodworkers; border streets; infrastructure management system; consulting
service agreements; and election system selection. She noted that these initiatives are well
underway and / or completed and the Committee continues to move ahead having identified a
number of additional opportunities for collaboration. Ms. Ladd advised that the revised Terms
of Reference provide an expanded scope to include strategic initiatives that extend beyond
basic service delivery (ie. new provincial legislation 1 tourism strategy); and clarification of
criteria, structure and a number of general considerations to improve the effectiveness of the
Committee.
On motion by Mayor C. Zehr -
itwas resolved:
"That the revised Terms of Reference for the Kitchener Waterloo Joint Service
Initiatives Committee be approved, which reflect an expanded scope and refinement of
the Shared Services program between the Cities of Kitchener and Waterloo as
approved in September 2004."
14. EMPLOYMENT LANDS -REQUEST FOR UPDATE
At the request of Mayor C. Zehr, staff was directed to report to the March 27, 2006 Finance
and Corporate Services Committee meeting as to the status of the Economic Development
Investment Fund in respect to employment lands, detailing past activity, present position and
future initiatives.
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15. ADJOURNMENT
On motion, the meeting adjourned at 4:30 p.m.
Janet Gillett, AMCT
Committee Administrator