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HomeMy WebLinkAboutFin & Corp Svcs - 2006-01-09FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 9, 2006 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 2:07 p.m. Present: Councillor B. Vrbanovic -Chair Mayor C. Zehr and Councillors J. Smola, G. Lorentz, J. Gazzola, M. Galloway and C. Weylie. Staff: C. Ladd, Chief Administrative Officer P. Houston, General Manager, Financial Services & City Treasurer G. Sosnoski, General Manager, Corporate Services & City Clerk R. Browning, Interim General Manager, Development & Technical Services A. Pappert, General Manager, Community Services D. Chapman, Director of Financial Planning & Reporting R. Regier, Executive Director of Economic Development L. Proulx, Director of Facilities Management H. Gross, Director of Project Administration and Economic Investment R. Gosse, Director of Legislated Services L. MacDonald, City Solicitor J. Sheryer, Assistant City Solicitor P. Harris, Manager of Licensing L. Lynch, Manager of Engineering Infrastructure S. Allen, Design & Construction Engineer J. Gillett, Committee Administrator 1. DELEGATION PRESENTATION -GREATER KITCHENER-WATERLOO CHAMBER OF COMMERCE - CHAMBER HEALTH CARE RECRUITMENT COUNCIL - FUNDING REQUEST - FAMILY AND SPECIALIST PHYSICIANS RECRUITMENT PROGRAM The Committee was in receipt of correspondence, dated January 4, 2006 and attached background material, from the Greater Kitchener-Waterloo ~GKW) Chamber of Commerce, on behalf of the Chamber Health Care Recruitment Council CHCRC), in which an invitation is extended to the City of Kitchener to invest $20,000. in 2006 in a comprehensive economic development initiative for physician recruitment in the community. The following individuals comprised a deputation in support of the CHCRC's request: Messrs. Roger Farwell, Chair and Todd Letts, CEO and Ms. Mary Sue Fitzpatrick, Vice President, GKW Chamber of Commerce; Mr. Bruce Antonello, Chamber Board of Directors Advisor; and Dr. James Israel, Vice President and Chief Medical Officer, Grand River Hospital ion behalf of Dr. Ashok Sharma, Common Chief of Staff, GRH and St. Mary's Hospital). Mr. R. Farwell advised that in January 2005 a similar presentation was made by the Joint Medical Resource Planning Committee requesting the City to invest $20,675. in the Physician Specialist Recruitment Program. At that time, Council deferred consideration pending further consultation with all related/affected parties. Mr. Farwell stated that the consultation is now complete and has resulted in the creation of the CHCRC; mandated to implement programs to attract and retain family and specialist physicians to the community. Mr. Farwell highlighted aspects of the recruitment program, commenting on the scope of the initiative, its challenges and the competitive environment in which the program operates. It was noted that the Ministry of Health and Long Term Care MOH) revoked Kitchener-Waterloo's under-serviced designation in August 2005, resulting in doctors who locate in the community no longer being eligible for financial incentives and Chamber recruitment weekends no longer being eligible for up to $10,000. in MOH re-imbursements. Under the new CHCRC model, liaison with the Joint Medical Resource Planning Committee will be integral to ensure co-ordination of planning and financial resources between family and specialist physician recruitment. The 2006 annual Operating Budget is established at $170,000, of which the City has been asked to invest $20,000. to be divided equally between both sectors of physician recruitment. It was also noted that a 5 year commitment of $20,000. in each year, is preferred. Mr. B. Antonello added that municipal leaders need to be forward thinking in approaching physician recruitment in order to meet the challenges created by aging FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 9, 2006 - 2 - CITY OF KITCHENER 1. DELEGATION PRESENTATION -GREATER KITCHENER-WATERLOO CHAMBER OF COMMERCE (CONT'D) physicians, development growth and a competitive market in providing the community with quality health care. The Committee then raised a number of questions to which the delegation responded, advising of the following: • a review of the MOH decision to revoke the under-serviced designation has been requested and a response is anticipated in January 2006; in the interim, re-application has been made to MOH to restore the designation; • opportunity for Regional funding has been difficult to achieve as the City of Cambridge does not have an under-serviced designation; more dialogue with the Region is needed to determine what can be done from a legal perspective; • need for augmentation of the re-certification program for physicians trained out-of- country to allow them to practice is recognized and being pursued; Chamber representatives will provide further information to Council regarding this matter; • municipal funding is being sought in combination with private sector funding to facilitate doubling of efforts in co-ordinating family and specialist physician recruitment. Councillor J. Gazzola raised concerns in providing an incentive program for one profession when all professions are needed in a community, and as well, the appearance of absolution of senior government responsibility for health care provision by involving municipal governments in fundraising efforts. He also questioned moving away from a strong volunteer based model to the CHCRC model. Mayor C. Zehr commented that while it is valid that senior governments have responsibility for provision of health care, the City has recognized the economic development and welfare benefits of the recruitment program to the community and he encouraged the Committee's support. A motion was brought forward for consideration by Mayor C. Zehr to approve $20,000. in 2006 for the Physician Recruitment Program, with an additional $20,000. in each of the next four years, subject to an annual report as to the effectiveness of the program. In response to a procedural question regarding approval of funding that would extend beyond the term of the existing Council, Mr. G. Sosnoski advised that the incoming Council-elect would not be bound by the decision of this Council and any decision of the new Council to make a change would not require a Notice of Motion or Motion to Reconsider. Councillor J. Gazzola advised that he would support the motion; however, it was his opinion that it does not address the root cause of the problem. Councillors G. Lorentz and B. Urbanovic also spoke in support of the motion, commenting on the importance of supporting this initiative to meet demand for quality health care in a high growth community. Mayor Zehr's motion was then voted on in two parts by recorded vote, with the first paragraph Carried Unanimously and the second paragraph Carried with Mayor C. Zehr and Councillors J. Smola, G. Lorentz, B. Urbanovic, M. Galloway and C. Weylie voting in support and Councillor J. Gazzola voting in opposition. On motion by Mayor C. Zehr - itwas resolved: "That the request of the Board of Directors of the Greater Kitchener-Waterloo Chamber of Commerce, on behalf of the Chamber Health Care Recruitment Council, asking the City of Kitchener to invest $20,000. in 2006 to the Physicians Recruitment Program ($10,000. for Family Physicians and $10,000. for Specialist Physicians), be approved; and further, That an additional $20,000. be approved in each of the subsequent 4 years X2007- 2010) for the Physicians Recruitment Program subject to an annual report to City Council as to the effectiveness of the program." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 9, 2006 - 3 - CITY OF KITCHENER 2. CRPS-06-008 -MAYFAIR HOTEL ELEVATOR REPLACEMENT PROGRESS REPORT The Committee was in receipt of Corporate Services Department report CRPS-06-008, dated January 3, 2006, regarding the status of replacement of the Mayfair Hotel elevator. Mr. L. Proulx advised that in February 2005 Council approved funding of $312,000. to implement replacement of the Mayfair Hotel elevator. At that time, staff noted that maintenance costs for the elevator were escalating annually. He stated that once tendered, the project came in substantially over-budget as a result of revisions to the Elevator Code and additional work required on the structure. Thiessen Krupp (TK) was retained to undertake inspection and maintenance of the elevator with costs in 2004 over $15,000. for repairs and service. Discussions were undertaken with TK regarding the risk of delaying the installation of a new elevator. TK advised that they have the capability of manufacturing parts and are prepared to assist the City in maintaining the existing elevator to allow more time for a decision to be made with respect to development on the Centre Block site. Staff have requested, and it has been agreed by the contractor, to hold the tendered price on the elevator upgrade until April 2006, at which time the situation would be reviewed. Accordingly, Mr. Proulx advised that staff are not recommending proceeding with an elevator upgrade at this time to provide the additional time to consider the fate of the hotel. Mr. Proulx added that should a decision be made to retain the hotel building, staff will report back to the Committee to seek a decision on the elevator replacement prior to proceeding with the project. 3. FIN-06-002 -RESOLUTION - TOWN OF ESSEX - MUNICIPAL LIABILITY INSURANCE The Committee was in receipt of Financial Services Department report FIN-06-002, dated December 22, 2005 regarding a resolution received from the Town of Essex on the issue of Municipal Liability Insurance. Councillor J. Gazzola enquired as to the feasibility of requesting claims to be awarded pursuant to the percentage of liability assessed. Ms. P. Houston advised that under the Negligence Act, R.S.O1990, the City could be made to pay 100%of a judgement even though it may be as little as 10% liable. In light of requests approved by the Province from other municipalities for a reduction to 50%, the percentage is viewed as a reasonable starting point. On motion by Councillor M. Galloway - itwas resolved: "That the following resolution of the Town of Essex, regarding Municipal Liability Insurance be endorsed: 'WHEREAS municipalities have experienced significant increases in the cost of liability insurance; and, WHEREAS a significant factor in the cost of municipal liability insurance relates to The Negligence Act R.S.O1990; and, WHEREAS The Negligence Act R.S.O. 1990 can mandate a municipality to pay 100% of a loss when in fact they could be as little as 1 % liable; and, WHEREAS other Provinces have amended The Negligence Act so that only where a municipality is found to be at least 50% liable would the full claim be paid; THEREFORE BE IT RESOLVED that the Province of Ontario be requested to amend The Negligence Act R.S.O. 1990 so that only where a municipality is found to be at least 50% liable would the full claim be paid; and further, That this resolution be circulated to the Association of Municipalities of Ontario FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 9, 2006 - 4 - CITY OF KITCHENER 4. CRPS-06-006 -DELEGATION OF AUTHORITY FOR THE EXECUTION OF DATA EXCHANGE AGREEMENTS The Committee was in receipt of Corporate Services Department report CRPS-06-006, dated December 23, 2005, requesting that the City Clerk be authorized to execute agreements for exchange of City informationldata from or to the City of Kitchener with public agencies, educational institutions and all levels of government. Ms. L. MacDonald advised that a standard agreement has been developed for use in this instance and each agreement will be reviewed by legal staff prior to its execution. In response to questions, Ms. MacDonald advised that the agreements are necessary to ensure the City's interests are protected against commercial use of the information. It was noted in the agenda that any recommendation from this Committee will be considered at the special Council meeting to be held later this date. On motion by Mayor C. Zehr - itwas resolved: "That the City Clerk be authorized to execute agreements satisfactory to the City Solicitor for the exchange of City information/data from or to the City of Kitchener with public agencies, educational institutions and all levels of government, which require the information for public or educational, non-commercial purposes; said release of any information to be in compliance with any legislative obligations." 5. CRPS-06-005 - AMENDMENT TO CHAPTER 531 OF THE MUNICIPAL CODE - DOG-KENNELS-BREEDING-BOARDING-DOGGIE DAYCARE The Committee was in receipt of Corporate Services Department report CRPS-06-005, dated December 23, 2005, requesting an amendment to Chapter 531 of the Municipal Code to impose a distance separation between Doggie Daycares and residential properties. Ms. J. Sheryer provided comments received from the Dog By-law Review Committee with regard to this matter, advising that the issue was contentious in that, strict regulations are already in place and the addition of a distance separation could have the effect of over regulating this type of business out of existence. Ms. Sheryer responded to questions, advising that the amendment is specific to Doggie Daycare businesses and would not affect dog breeding or kennel facilities; and existing businesses would be grandfathered and allowed to continue at their present locations until such time as the business ceases to operate. Ms. P. Harris added that the distance separation would assist to address noise issues. On motion by Mayor C. Zehr - itwas resolved: "That staff prepare a by-law to amend Chapter 531 of the Municipal Code (Dog- Kennels-Breeding-Boarding-Doggie Daycare) to impose a distance separation of 200 metres between a `Doggie Daycare' and residential properties; and further, That staff initiate the required public process with respect to the amending by-law." 6. CRPS-06-007 - AMENDMENT TO VARIOUS CHAPTERS OF THE MUNICIPAL CODE - SCHEDULE "A" -BUSINESS LICENCE PROCEDURE The Committee was in receipt of CRPS-06-007, dated December 28, 2005 requesting that the word "shall" be changed to "may" in Sections 7 of Schedules'A' (Business licence Procedure) of all applicable licensing Chapters in the Municipal Code. Ms. P. Harris advised that the amendment is requested to allow the Manager of licensing to use discretionary power when a licensee or applicant is in contravention of conditions outlined in the Schedule. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 9, 2006 - 5 - CITY OF KITCHENER 6. CRPS-06-007 - AMENDMENT TO VARIOUS CHAPTERS OF THE MUNICIPAL CODE - SCHEDULE "A" -BUSINESS LICENCE PROCEDURE (CONT'D) On motion by Mayor C. Zehr - itwas resolved: "That staff prepare a by-law to amend all applicable Licensing Chapters of the Municipal Code to change the word "shall" to "may" in Sections 7 of all Schedules 'A' (Business licence Procedure); and further, That staff initiate the required public process with respect to the amending by-law." 7. CRPS-06-001 -LEASE AGREEMENT- VACANT LAND -PATRICK STREET At the request of staff this matter was withdrawn from the agenda and not considered this date to allow staff an opportunity to review new information. 8. DTS-05-214 -CHESTNUT 1 PEQUEGNAT RECONSTRUCTION ENGINEERING FEE INCREASE The Committee was in receipt of Development and Technical Services Department report DTS-05-214, dated November 3, 2005 requesting an increase in consultant service fees related to Expression of Interest E04-073 for Chestnut and Pequegnat Street Reconstruction. Mr. ~. Lynch advised that during a routine geotechnical investigation the potential presence of contaminated material was discovered and further sampling for chemical analysis was required by the consultant which was outside the scope of the original fee estimate. In addition, removal and disposal of the material was provided for in the construction contract which was also outside of the original scope of the fees. Mr. S. Allen responded to questions, advising that at the time of tender it is not possible to determine full costs as samples must be taken as the work proceeds, resulting in full costs not being known until the work is complete. Mr. Allen added that staff could have reported to Council in February of 2005 with regard to the presence of the contaminated materials to forewarn that additional costs would be incurred; however, full costing would not have been available until the work was complete. Mayor C. Zehr requested that staff provide information regarding potential fee increases for tendered work at the earliest time possible. On motion by Councillor J. Smola - itwas resolved: "That the request of The Walter Fedy Partnership for an increase in fees for consultant services related to Expression of Interest E04-073, Consultant Services -Chestnut Street (Frederick Street to Victoria Street) and Pequegnat Avenue (Frederick Street to Mansion Street), projected to be $14,677.10 excl. GST), be approved, to account for additional engineering costs associated with the analysis and administration required for the identification and removal of the contaminated material on Chestnut Street and Pequegnat Avenue." 9. DTS-05-215 -WILSON AVENUE BRIDGE REHABILITATION FEE INCREASE FOR EXPANDED SCOPE The Committee was in receipt of Development and Technical Services Department report DTS-05-215, dated November 23, 2005 requesting an increase in consultant service fees related to rehabilitation of the Wilson Avenue Bridge. Mr. L. Lynch advised that during the course of the rehabilitation work more concrete was required to be removed than originally estimated, and steel components were found to be severely corroded requiring replacement. Accordingly, an increase in consultant fees is FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 9, 2006 - 6 - CITY OF KITCHENER requested to cover the additional work undertaken. 9. DTS-05-215 -WILSON AVENUE BRIDGE REHABILITATION FEE INCREASE FOR EXPANDED SCOPE (CONT'D) On motion by Mayor C. Zehr - itwas resolved: "That the request of MuirTec Incorporated for an increase in fees for consultant services related to the rehabilitation of the Wilson Avenue Bridge, projected to be $12,330. excl. GST), be approved, to account for increased quality control testing and additional design work." 10. CRPS-06-003 - IN-CAMERA PROTOCOL AND PROCEDURAL AMENDMENTS Councillor M. Galloway assumed the Chair for the purpose of conducting this portion of the meeting to allow Councillor B. Vrbanovic to participate in discussion. The Committee was in receipt of Corporate Services Department report CRPS-06-003, dated December 20, 2005 in which additional information is provided with respect to in-camera protocol and procedural amendments as requested by Councillor B. Vrbanovic at the November 28, 2005 Council meeting. The report addresses issues related to a proposed administrative policy statement; placement of a notification on either the special Councilor in- camera agenda to remind Council that individual members have an opportunity to question or debate the appropriateness of a particular item being considered in-camera; amendments to the Procedural By-law to require a 2/3 vote of Council members present to authorize in- cameradiscussion; and background and rationale for creation of an Integrity Commissioner in the City of Toronto. Mr. R. Gosse advised that with respect to incorporating the existing in-camera meeting protocol into an Administrative Policy Manual, the protocol already has been formalized as Council Policy I-32 in the Council Policy Manual. Mr. Gosse advised that in 2005, 32 in- camera meetings, at a total of 23.5 hours, were held with the percentage of time spent in in- camera decreasi ng to 13% i n 2005 from 38% i n 2002. Mr. R. Gosse responded to questions, advising that items on an in-camera agenda are identified in generality by the list of categories outlined in the Municipal Act. He noted that the public can ascertain the number of items and area of concern, and agreed that an estimated time for discussion of each item could be included on agendas. Mr. Gosse added that staff have concerns with expanding identification of items, explaining that in some circumstances it may not be possible to do so because of the nature of the item, making it difficult to maintain consistency in identifying all items listed. A motion by Councillor B. Vrbanovic was brought forward for consideration to incorporate the existing in-camera protocol as an administrative policy statement should staff create an Administrative Policy Manual; to add a statement on the special Council agenda to remind Council they have an opportunity to question or debate the appropriateness of items listed for in-camera discussion; and to amend the Procedural By-law to require a 2/3 vote of Council members present to authorize in-camera discussion. Mayor C. Zehr questioned the relevancy of requiring a 2/3 vote to authorize in-camera discussion as it is the right of any member to leave the room if they disagree with any item listed for discussion. Councillor J. Smola agreed, commenting that if a vote was successful he could be required to sit in-camera to hear items he may consider inappropriate for in-camera discussion and preferred the option of leaving the room. Councillor B. Vrbanovic stated that the intent was to emphasize that in-camera meetings are different and should be taken seriously. He added that staff could provide an opinion as to the appropriateness of a member having voted against hearing an item in-camera, ultimately sitting to hear the item by virtue of a majority vote. Councillor B. Urbanovic's motion was then voted on in 3 parts, by recorded vote, with paragraphs 1 and 2 Carried Unanimously and paragraph 3 Carried with Mayor C. Zehr and FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 9, 2006 - 7 - CITY OF KITCHENER Councillors G. Lorentz, J. Gazzola, B. Vrbanovic and C. Weylie voting in favour and Councillors J. Smola and M. Galloway voting in opposition. 10. CRPS-06-003 - IN-CAMERA PROTOCOL AND PROCEDURAL AMENDMENTS (CONT'D) On motion by Councillor B. Vrbanovic - itwas resolved: "That subject to the Corporate Management Team creating an Administrative Policy Manual, the existing in-camera protocol (Council Policy I-32) for submitting items for in- cameradiscussion be incorporated in the proposed manual as an administrative policy statement; and, That a statement to remind Council that individual members have an opportunity to question or debate the appropriateness of a particular item being considered in-camera be placed on the special Council Agenda; and further, That Chapter 25 Council Procedure) of the Municipal Code be amended to require a 2/3 majority vote of Council members present to authorize in-camera discussion." At the request of Councillor B. Vrbanovic, staff was directed to report to a future meeting of the Finance and Corporate Services Committee as to how an Integrity Commissioner position might be incorporated into the City's existing corporate structure, including associated costs. Mayor C. Zehr raised concerns that the size of the City is not comparable to that of the City of Toronto. He added that if a dual staff role is intended, the employee could be placed in a tenuous position that may compromise hislher relationship between staff and Council. He asked that these matters be addressed in the staff report. Councillor B. Vrbanovic agreed that a dual role may present challenges and asked that staff include other alternatives for provision of such a position. Councillor B. Vrbanovic then assumed the Chair. 11. MUNICIPAL ASSESSMENT GROWTH -UPDATE Ms. P. Houston advised that Kitchener has realized higher than expected assessment growth in 2006 which will increase revenues and allow a reduction from the target of a 3% tax increase down to 2.68%. Ms. Houston advised that assessment has risen by 4.08% in 2006 over 3.17% in 2005 and 2.63% in 2004, representing an addition of more than $3 M to the City's base budget. Ms. Houston cautioned that the assessment growth is primarily the result of new construction and is not expected to continue at the same pace in future years. Councillor J. Smola referred to a recent resolution by the City of Sarnia requesting that 2006 Municipal Property Assessment Commission (MPAC) assessment values be deferred and 2004 assessment values remain in place, pending a report and recommendations resulting from an investigation into the property assessment process. He questioned if Kitchener should endorse a similar resolution. Ms. Houston advised that it was her understanding the resolution is related specifically to major market shifting in the City of Sarnia but would investigate further and report back on this matter. Mayor C. Zehr also cautioned against endorsement of the resolution in that deferral of 2006 assessment values would only compound assessment increases in the following term. 12. FEDERATION OF CANADIAN MUNICIPALITIES (FCM} -NATIONAL ELECTION - CHECKLIST ON MUNICIPAL ISSUES Councillor B. Vrbanovic advised that FCM has launched a national campaign to determine where candidates for Parliament stand on Federal assistance to eliminate the $606 municipal infrastructure deficit. FCM is asking municipal governments to present a checklist of the following items to all candidates running in their areas and asking candidates to sign off in order to ascertain where they stand on these issues: • erase the infrastructure deficit within 20 years; • lock the 20 year gas tax transfer in law; • maintain existing infrastructure funding; FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 9, 2006 - 8 - CITY OF KITCHENER • involve municipalities in decision making. 12. FEDERATION OF CANADIAN MUNICIPALITIES (FCM} -NATIONAL ELECTION - CHECKLIST ON MUNICIPAL ISSUES (CONT'D) Councillor B. Vrbanovic advised that he would share the results of this initiative when the information becomes available. 13. NOTICE OF MOTION -KITCHENER PUBLIC LIBRARY -PROPOSED NEW MAIN LIBRARY Councillor M. Galloway gave notice that he would introduce a motion at the January 16, 2006 Council meeting regarding the Kitchener Public Library's new main branch to be located on the Centre Block site. 14. ADJOURNMENT On motion, the meeting adjourned at 3:50 p.m. Janet Gillett, AMCT Committee Administrator