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HomeMy WebLinkAboutFin & Corp Svcs - 2006-03-27FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 27, 2006 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 2:05 p.m. Present: Councillor V. Vrbanovic -Chair Mayor C. Zehr and Councillors G. Lorentz, J. Smola, J. Gazzola, M. Galloway and C. Weylie. Staff: M. Grummett, Interim General Manager, Corporate Services P. Houston, General Manager, Financial Services & City Treasurer R. Browning, Interim General Manager, Development & Technical Services A. Pappert, General Manager, Community Services L. MacDonald, City Solicitor R. Regier, Executive Director of Economic Development D. Chapman, Director of Financial Planning & Reporting R. Shames, Director of Engineering H. Gross, Director of Project Administration & Economic Investment J. McBride, Director of Transportation Planning K. Currier, Director of Operations F. McCrea, Assistant City Solicitor M. May, Senior Public Affairs Officer P. Bacon, Sr. Business Development Officer T. Konstantinidis, Supervisor Parking Operations P. Harris, Manager of Licensing J. Billett, Committee Administrator 1. CRPS-06-040 -MULTI-CULTURAL FESTIVAL -JUNE 24 & 25, 2006 - DECLARATION OF CIVIC CELEBRATION I COMMUNITY FESTIVAL - TEMPORARY RETAIL MARKET LICENSE The Committee considered Corporate Services Department report CRPS-06-040, dated March 6, 2006 regarding a request to declare the Multi-Cultural Festival a Civic Celebration and issue a Temporary Retail Market Licence and Liquor Licence. On motion by Councillor C. Weylie - it was resolved: "That in conjunction with the Multicultural Festival and all activities connected therewith, to be held at Victoria Park on Saturday, June 24 and Sunday, June 25, 2006, the period of June 24 to July 2, 2006 inclusive, be declared a period of Civic Celebration in the City of Kitchener and this event be considered a 'Community Festival' within Kitchener; and further, That the Kitchener-Waterloo Multicultural Centre Inc., be granted a Temporary Retail Market Licence, provided that the necessary Licence, including Health and Fire approvals, is obtained." 2. CRPS-06-041- REQUEST FOR OUTDOOR FOOD AND MERCHANDISE VENDORS - DOON HERITAGE CROSSROADS - EMERGENCY SERVICES MUSTER -MAY 27. 2006 The Committee considered Corporate Services Department report CRPS-06-041, dated March 6, 2006 concerning a request for food and merchandise vendors for the Emergency Services Muster. On motion by Councillor C. Weylie - it was resolved: "That the request of Doon Heritage Crossroads to invite three food vendors and approximately 5 merchandise vendors to operate at the Emergency Services Muster, Games and Parade on May 27, 2006, at 10 Huron Road, be approved, providing the necessary licence, including Health and Fire approvals, are obtained; and further, That the reduced fee of $37.40 be applicable." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 27, 2006 - 61 - CITY OF KITCHENER 3. DTS-06-044 -WATERLOO STREET RECONSTRUCTION (EXPRESSION OF INTEREST E01-125) - ENGINEERING FEE INCREASE The Committee considered Development and Technical Services Department report DTS-06- 044, dated February 14, 2006 requesting additional engineering fees related to work completed under Expression of Interest E01-125 (Consultant Services -Waterloo Street Reconstruction). Mr. R. Shames advised that the additional funds are required to cover work outside the original scope of the project related to environmental remediation of the site. Mr. Shames responded to a number of questions, advising that the frequency of increased project scope requiring additional funds is being addressed through process improvements involving monitoring and evaluation of projects that will allow earlier detection and report to Council of any potential increase in scope. He added that a staff report outlining the proposed process improvements will come forward in April for consideration. It was also noted that the tender contract provides for penalties to be applied if the contractor does not meet the timing requirements; however, in this instance the work was completed ahead of schedule as a result of extended working hours. Mr. S. Allen added that the balance of $175,689.14 would be transferred back to the capital budget. On motion by Mayor C. Zehr - it was resolved: "That the negotiated request for additional engineering fees of $82,841.81 submitted by Conestoga - Rovers and Associates relative to Expression of Interest E01-125 (Consultant Services -Waterloo Street Reconstruction), be approved." 4. CAO-06-022 -ASSIGNMENT OF LEASE -VICTORIA PARK BOATHOUSE The Committee considered Chief Administrator's Office report CAO-06-022, dated March 22, 2006 concerning assignment of a licence agreement to operate a restaurant and concession at the Boathouse in Victoria Park. Councillor C. Weylie referred to noise complaints received during summer operation of the Boathouse. Ms. P. Bacon advised that as a condition of the revised lease, the new operator will be required to manage and mitigate noise by installing air conditioning that will allow the doors of the building to remain closed during summer months. She added that the new agreement will not go beyond the existing term of May 2009 and a committee is being struck to develop along-term strategy for future use of the boathouse beyond that timeframe. Ms. Bacon submitted correspondence dated March 27, 2006 from Ms. Lisa Morell, Morell Kelly, asking that the assignment of the licence agreement be made to 1639885 Ontario Limited and Ms. Cindy Ward be released from her obligations pursuant to the agreement. At the request of Councillor J. Gazzola, Ms. L. MacDonald agreed to pursue legal fees pertaining to assignment of the agreement. On motion by Councillor G. Lorentz - it was resolved: "That release of the existing Licence Agreement for the Boathouse in Victoria Park with Cindy Ward be approved and a new Licence Agreement be entered into with 1639885 Ontario Limited for the remainder of the lease term generally in accordance with the terms of the existing agreement and the revised terms and Fee Schedule, as generally outlined in Chief Administrator's Office report CAO-06-022; and further, That the Mayor and Clerk be authorized to execute any necessary documentation required by the City Solicitor to complete the change to the agreement and Fee Schedule." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 27, 2006 - 62 - CITY OF KITCHENER 5. CAO-06-021 -CENTRE BLOCK CITIZENS' FORUM The Committee considered Chief Administrator's Office report CAO-06-021, dated March 23, 2006 outlining a proposed concept for a citizens' forum on the Centre Block redevelopment and centre library project. Mr. M. May advised that a preliminary concept for the forum has been developed based on 3 guiding principles: representation from among citizens at large using the six population segments identified by the Environics Research survey; representatives of diversified opinion having expressed favour, opposition or indecision respecting the library project; and representation from specific sectors (i.e. real estate, institutional, commerce, high technology, etc.). It is proposed to conduct an information presentation, followed by a facilitated citizens' panel and conclude with an opportunity for all in attendance to ask questions and provide feedback on the 2 projects. The date proposed is during the evening of May 23, 2006 and those not able to attend will be provided with a mechanism in which to provide their input in advance. In response to questions, Mr. R. Regier advised that the charette held in November 2005 was different from the forum proposed in that it took a design approach to the Centre Block redevelopment. The results of the charette were presented to the Centre Block Steering Committee and discussions were held on how to incorporate the results into a statement to be included in the Request for Proposals as it relates to the original process. Councillor J. Gazzola objected to having Communications /Marketing staff develop the concept for the forum, expressing preference for an independent review that would provide opportunity to hear the views of the general population. Mayor Zehr commented that the forum was proposed for the purpose of providing opportunity to listen to all citizens and to allow those in attendance to hear factual information on the process to date. He expressed the opinion that the proposed concept is open-ended and does not prescribe an outcome. Councillor M. Galloway suggested that parties involved in the 2 projects to date should not participate to allow opportunity for second opinions to be received. Councillor B. Vrbanovic expressed the opinion that it was appropriate to have Communications /Marketing staff facilitate the process given their expertise. At the request of Mayor C. Zehr, Mr. May agreed to report on final details for the proposed citizens forum at the April 10, 2006 Finance and Corporate Services Committee meeting. 6. DTS-06-046 -ADDITIONAL FUNDING - JOSEPH I GAUKEL STREET RECONSTRUCTION The Committee considered Development and Technical Services Department report DTS-06- 046, dated March 17, 2006 recommending deferral of certain projects and transfer of the unexpended funds to accommodate a shortfall in funding for the Joseph / Gaukel Street Reconstruction project. Councillor M. Galloway raised concerns with regard to the increased costs and suggested that insufficient information was provided to allow full understanding of the total scope and costing of the environmental remediation for the reconstruction. He proposed deferral of the matter to allow the additional information to be provided. Mr. R. Shames advised that all costs were included with the exception of those associated with the former Canada Post property, which are to be funded from different sources including the sale of the property. He added that the increased costs stem from further borehole testing which indicated contaminants are present to a greater depth than originally anticipated. In addition, remediation on Charles Street and more extensive ground water treatment is required, and reconstruction of Richmond Avenue has been added to take advantage of economies of scale; all of which were not previously included in the project. Mr. Shames added that pre-testing was limited due to negotiations with litigants. At the request of Councillor J. Smola, Mr. Shames agreed to investigate an inquiry regarding a citizen's concerns that reconstruction of Mansion Street is also proposed to be delayed. Councillor J. Gazzola advised that in light of the increased costs, he would prefer the matter to FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 27, 2006 - 63 - CITY OF KITCHENER 6. DTS-06-046 -ADDITIONAL FUNDING - JOSEPH I GAUKEL STREET RECONSTRUCTION tCONT'D) go forward to the April 3, 2006 Council meeting rather than be ratified at the special Council meeting to be held later this date, as noted on the Committee agenda. Councillor Gazzola questioned what steps were being taken to reduce costs associated with removal of contaminants from the site. Mr. Shames advised that staff will negotiate with the Region of Waterloo in regard to costs associated with any materials that must be taken to the Regional landfill site and alternative technologies are being pursued to reduce costs for hazardous waste removal. In response to questions from Mayor C. Zehr, Mr. Shames advised that the site will be supervised daily by the Consulting firm and City staff will regularly monitor the site to ensure work is done correctly and extensions of project scope are minimized. Mayor Zehr referred to the City's legal obligation to undertake the work and questioned the effect of deferring the decision this date. Mr. Shames advised that a short term delay of one week would not have a detrimental impact but noted that a public meeting between area residents and the Consulting firm was scheduled later this week on the basis of Council approval this date. Mayor Zehr suggested that regardless of whether the matter is deferred or not the public meeting should go ahead as scheduled. Councillor G. Lorentz spoke in favour of proceeding given that notification has gone out to the residents and there is a high expectation to move forward with the project. On motion by Councillor M. Galloway - it was resolved: "That the recommendations contained in Development and Technical Services Department report DTS-06-046 regarding a request for additional funding for the Joseph /Gaukel /Francis /Richmond /Victoria Park Entrance Project, be deferred and referred to the April 3, 2006 Council meeting to allow additional information to be provided by staff regarding costs associated with environmental remediation." 7. TENDER T06-010 -ROAD RECONSTRUCTION -JOSEPH I GAUKEL I RICHMOND I VICTORIA PARK ENTRANCE The Committee was in receipt of Financial Services Department report regarding awarding of Tender T06-010 for road reconstruction of Joseph /Gaukel /Richmond /Victoria Park Entrance. On motion by Councillor M. Galloway - it was resolved: "That the recommendation contained in Financial Services Department report Tender T06-010, dealing with awarding of the tender for road reconstruction (Joseph /Gaukel / Richmond /Victoria Park Entrance), be deferred and referred to the April 3, 2006 Council meeting to allow its consideration in conjunction with the recommendations contained in Development and Technical Services Department report DTS-06-046 (Additional Funding -Joseph /Gaukel Street Reconstruction)." 8. FIN-06-00$ -FINANCIAL REPORT AS OF DECEMBER 31, 2005 The Committee was in receipt of Financial Services Department report FIN-06-008, dated March 17, 2006 outlining the City's 2005 year-end financials. Due to time constraints, it was agreed that presentation of this matter would be referred to the April 10, 2006 Finance and Corporate Services Committee meeting. Councillor J. Gazzola requested that when this matter is considered, staff provide an explanation of the financial differentials in regard to the gas surplus and the tax-supported operating surplus as at December 31, 2005 in comparison to projections given during the 2006 budget deliberations. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 27, 2006 - 64 - CITY OF KITCHENER 9. CSD-06-041 -INTERIM PARKING OPTIONS -CENTRE BLOCK PROPERTY The Committee considered Community Services Department report CSD-06-041, dated March 21, 2006 concerning a proposal to develop interim surface parking lots on the Centre Block property. Mr. H. Gross advised that staff propose to develop areas of the former Forsyth buildings and greenspace along King Street West of the Centre Block property into interim surface parking. He stated that the City requires 345 parking spaces to meet current parking demands and if approved, the areas to be developed will provide 160 spaces in addition to 182 spaces currently available at Madison /King Streets. The cost to develop the interim parking is estimated at $320,000. to be funded from the Economic Development Investment Fund with annual revenues of approximately $140,000. to be returned to the fund. Mr. H. Gross responded to questions, advising that the City has a contractual obligation to provide 175 parking spaces for the Wilfrid Laurier University School of Social Work at a subsidized rate, within 3 to 4 blocks of the school. Mr. Gross noted that without the interim parking on the Centre Block the City would have a shortage of spaces. Councillor J. Gazzola questioned if the Forsyth buildings were demolished to provide parking and Mr. Gross responded that it was not, advising that the request is the result of staff seeking the best solution at this time based on available sites. Mr. R. Browning added that staff are actively pursuing other sites to meet the City's long term parking needs. In response to Councillor M. Galloway, Mr. J. McBride commented that statements in the City's Parking Study indicating a third of the City's parking spaces are unoccupied during peak times refers to vacancies in lots situated on the periphery of the downtown and with the loss of the Epton site the numbers have now changed. He added that within the downtown core parking is at capacity. Councillor G. Lorentz asked that staff consider extending the buffer along King Street West and take steps to make the parking area as aesthetically pleasing as possible. The following motion was Carried Unanimously on a recorded vote. On motion by Councillor M. Galloway - it was resolved: "That Area 1 (former Forsyth building) and Area 2 (Greenspace -King St. W.) on the Centre Block property be developed as interim surface parking lots, as outlined in Community Services Department report CSD-06-041." 10. DTS-06-064 -AGREEMENT BETWEEN THE UNIVERSITY OF WATERLOO AND THE CITY OF KITCHENER FOR THE TRANSFER OF THE PROPERTY KNOWN AS 521 KING STREET WEST The Committee considered Development and Technical Services Department report DTS-06- 064, dated March 23, 2006 concerning an agreement with the University of Waterloo for the transfer of the property known municipally as 521 King Street West. Mr. R. Browning advised that the proposed agreement is one of the final steps in negotiations of the School of Pharmacy project and provides for a phased approach to the transfer of 521 King Street West to the University. Councillor J. Gazzola asked for clarification of the costs associated with regard to the transfer of lands and the market value of the lands. Ms. L. MacDonald advised that there is no cost for the lands as they are being donated to the City by the current owner to facilitate conveyance to the University. She also clarified that the City agreed in 1996 / 97 to write off a tax debt owing by a previous owner of the property in exchange for demolition of the building. In regard to market value, Ms. MacDonald advised that staff have not had any reason to date to pursue an appraisal but could acquire the services of a qualified appraiser if so directed. Explanations were also provided with respect to current zoning of the property and the need to indemnify the University in regard to any damages for losses as a result of contamination proven to have originated from the site. Councillor Gazzola suggested that the agreement should provide that in the event the University ceases to use the premises it be transferred back to the City rather than to a charitable organization as proposed in the agreement. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 27, 2006 - 65 - CITY OF KITCHENER 10. DTS-06-064 -AGREEMENT BETWEEN THE UNIVERSITY OF WATERLOO AND THE CITY OF KITCHENER FOR THE TRANSFER OF THE PROPERTY KNOWN AS 521 KING STREET WEST tCONT'D) Mayor C. Zehr commented that the tax write-off referred to had no bearing on the current proposal as the matter was dealt with under different ownership at a time prior to commencement of this project. He added that the agreement provides that the property will continue to be used for public purpose and whether it reverts back to the City or a charitable organization, the chances of the University not continuing operation on the site is remote. On motion by Mayor C. Zehr the staff recommendation contained in report DTS-06-064 to authorize execution of the agreement with the University was brought forward for consideration. In response to Councillor C. Weylie, Ms. L. MacDonald advised that the University of Waterloo is developing a recognition program relative to the project which would include recognition of the property owner's donation of the land. Councillor J. Gazzola spoke in opposition to the motion, raising concerns that this is the first time the land exchange has been discussed in public and that Council had not passed a resolution to deal with the exchange. He expressed the opinion that given the City has provided a $30 M grant to the project, the University should be required to pay for the value of the land. Mayor C. Zehr disagreed with Councillor Gazzola's comments, stating that the exchange of lands has been discussed on many occasions in a public forum in conjunction with the $30 M grant and pointed out that Councillor Gazzola has on several occasions spoken in public against the land exchange. It was noted that any recommendation of the Committee regarding this matter would be considered at the special Council meeting to be held later this date. The motion of Mayor C. Zehr was then voted on by a recorded vote with Mayor C. Zehr and Councillors J. Smola, G. Lorentz, V. Vrbanovic, M. Galloway and C. Weylie voting in favour and Councillor J. Gazzola voting in opposition. On motion by Mayor C. Zehr - it was resolved: "That the Mayor and Clerk be authorized to execute the necessary documentation with the University of Waterloo for the staged transfer of the property known as 521 King Street West, satisfactory to the City Solicitor." 11. ADJOURNMENT On motion, the meeting adjourned at 4:00 p.m. Janet Billett, AMCT Committee Administrator