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HomeMy WebLinkAboutFin & Corp Svcs - 2006-05-15FINANCE & CORPQRATE SERVICES COMMITTEE MINUTES SAY 15, 2006 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 3:00 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 Administrator S. Turner, Interim General Manager, Corporate Services P. Houston, General Manager, Financial Services & City Treasurer R. Browning, General Manager, Development & Technical Services & Fire Chief K. Currier, Acting General Manager, Community Services R. Gosse, Director of Legislated Services and City Clerk M. Hildebrand, Interim Director of Community Programs and Services L. MacDonald, Director of Legal Services & City Solicitor P. Barris, Manager of Licensing J. Hutchinson, Facilitator, Volunteer Resources & Community Engagement J. Sheryer, Assistant City Solicitor M. May, Senior Public Affairs officer J. Billett, Committee Administrator 1. CRPS-06-078 -REQUEST FOR VARIQUS EVENTS IN DOWNTOWN DURING 2006 The Committee considered Corporate Services Department report CRPS-06-078, dated May 5, 2006 regarding permissions for various events in the Downtown consisting of the sale of food and / or merchandise; noise exemptions; selling of alcohol; and declaration of community festivals. At the request of staff, it was agreed to amend Schedule 'A' of report CRPS-06-078 to change the location of 'The Beat Rocks the Block' event (July 29, 2006} from the Civic Square to the Forsyth /King Street Parking Lot. In response to Councillor C. Weylie, Mr. S. Turner acknowledged that while some events may not present an issue of noise, all are included in the exemption to ensure none are omitted and the timing of the exemptions is based on the operating hours for each event. At the request of Councillor B. Vrbanovic, Mr. Turner agreed in future to include the operating hours for each of the events listed. Qn motion by Councillor C. Weylie - itwas resolved: "That the request for the sale of food and/or merchandise on City property during various events being conducted from June to December 2006, listed on Schedule `A' of Corporate Services Department report CRPS-06-078 and as amended by the Finance and Corporate Services Committee on May 15, 2006, be approved provided the necessary licences are obtained, including Health and Fire approval; and, That the request for an exemption from Chapter 450 (Noise} of the Municipal Code for the events listed on Schedule `B' of report CRPS-06-078 be granted; and further, That the request for permission to sell alcohol on City property for the events listed on Schedule `C of report CRPS-06-078 be granted and be declared `Community Festivals' for the purpose of applying for a liquor licence." 2. CRPS-06-081 -EXEMPTION TO CHAPTER 450 NOISE} OF THE MUNICIPAL CODE - DOWNTOWN STREET CLEANING The Committee considered Corporate Services Department report CRPS-06-081, dated May 9, 2006 regarding a noise exemption for cleaning of City streets and sidewalks in the Downtown core. Mr. S. Turner responded to questions, advising that street cleaning in the Downtown occurs at least twice each year and a subsequent request will come forward in the fall. The cleaning FINANCE & CORPORATE SERVICES COMMITTEE MINUTES SAY 15, 2006 - 84 - CITY OF KITCHENER 2. CRPS-06-081 - EXEMPTION TO CHAPTER 450 (NOISES OF THE MUNICIPAL CODE - DOWNTOWN STREET CLEANING (CONT'D) takes 4 to 5 days over a fixed route to cover all Downtown streets. ~e pointed out that prior notice is not given to the public; however, resident /business concerns on enquiry are generally satisfied once advised of the short term nature of the work. It was noted in the agenda that any recommendation from this Committee would be considered at the special Council meeting to be held later this date. Qn motion by Mayor C. Zehr - itwas resolved: "That an exemption to Chapter 450 (Noise} of the City of Kitchener Municipal Code be granted to permit the Community Services Department, through an independent contractor, to undertake cleaning of the streets and sidewalks in the Downtown Core between the hours of 10 PM and 6 AM on various dates between May 28 and June 1, 2006." 3. DELEGATION PRESENTATION -CHILD CARE RESOLUTION Ms. Sharon Mitic and Mr. Jim Woods attended in regard to a recent decision of the Federal Government to terminate the Federal-Provincial child care funding agreements and to request the City's support by endorsing a resolution to request the Federal Government to reinstate a 5 year commitment to continue moving forward with the agreements. Mr. J. Woods advised that he represented the Canadian Auto Workers (CAW}, Canada's largest private sector union, which has been part of a long standing movement that has been lobbying the Federal Government for publicly funded daycare. ~e expressed the opinion that today's workers should have access to an affordable, high quality and non-profit early learning and child care system; however, in announcing its budget the Federal Government has decided to terminate the previous government's publicly funded daycare proposal as of March 2007 with no strategy for the future beyond that timeframe. Ms. S. Mitic advised that the child care funding agreements are to be replaced with a $1,200. a year allowance for each child under 6 years of age and a community child care investment program that is intended to create 125,000 new spaces over 5 years through tax credits of up to $10,000. each to employers and non-profit organizations. Ms. Mitic expressed the view that the proposed tax credit will not cover ongoing maintenance costs and will be a concern of employers, particularly in large new urban areas where such costs are already estimated at $40,000. per year. She pointed out that only 7,500 spaces are available to serve approximately 33,000 children in Waterloo Region and the funding cut means a loss of $15.5 M to the Region. Ms. Mitic stated that it was her opinion the proposed child allowance will not achieve what is intended for lower income families; but rather will enhance the chances of those who already have the most economical option for access to privately run, quality daycare spaces. Mr. J. Woods commented that though this is a Federal initiative, this issue represents a significant impact to local municipalities and asked that politicisation be set aside in recognition of the benefits of a publiclyfunded daycare system forworking families in the community. Mayor C. Zehr agreed that this is an issue of concern for municipalities and even though the City does not have responsibility for child care issues, he was prepared to support the delegations' request for endorsement of the resolution subject to a minor modification to remove partisan reference made to the Conservative Party. He asked if the Region of Waterloo who bears responsibility for child care had been approached and was advised by the delegation that the Region will be making a decision on this matter as part of its budgetary considerations on child care at a meeting to be held on May 16, 2006. Councillors G. Lorentz and B. Vrbanovic supported endorsement of the resolution, commenting on the importance of early education and provision of the right programming to support a future knowledged based economy. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES SAY 15, 2006 - 85 - CITY OF KITCHENER 3. DELEGATION PRESENTATION -CHILD CARE RESOLUTION ~CONT'D~ Mayor C. Zehr brought forward the proposed child care resolution for consideration, as modified by replacing the phrase 'Conservative Party's' in the third paragraph with the word 'Government's'to remove the partisan reference. At the request of Councillor B. Vrbanovic, it was agreed to further modify the resolution by replacing the phrase 'funding deals' in the last sentence with the phrase 'child care funding agreements' and to include provision that the resolution be forwarded to the Prime Minister, Minister of Finance, local MP's, the Federation of Canadian Municipalities and the Association of Municipalities of Qntario. The motion of Mayor C. Zehr, as amended, was then voted on and Carried Unanimously. Qn motion by Mayor C. Zehr - itwas resolved: "WHEREAS child development experts, women's advocates, and international organizations have all agreed that Canada's current patchwork system of child care is sadly inadequate and undermines the lifelong potential of our children, and the opportunity for full labour force participation by parents; and, WHEREAS the existing bilateral Federal-Provincial child care agreements are a long overdue, partial step toward developing a national system of early child education; and, WHEREAS the Federal Government's anticipated annual surplus of $15 billion in the coming years provides ample resources with which to fund both the continuation of those bilateral agreements, as well as the Government's proposed $100. per month child allowance; T~EREFQRE BE IT RESOLVED that the City of Kitchener call on the Federal Government to make afive-year commitment to continue the Federal-Provincial child care funding agreements in the next Federal budget; and, BE IT FINALLY RESOLVED that a copy of this resolution be sent to the Right Honourable Stephen harper; honourable James Flaherty, Minister of Finance; all local MP's; the Federation of Canadian Municipalities and the Association of Municipalities of Qntario." 4. CRPS-06-079 - REQUEST TO SELL ALCOHOL - PARKING LOT 7 - 91 QUEEN STREET SOUTH The Committee considered Corporate Services Department report CRPS-06-079, dated May 8, 2006 concerning a request to sell alcohol in Parking Lot #7 at 91 Queen Street South during a customer appreciation event. Mr. Kevin Callum, owner of Sharper Images, spoke in support of his request advising that he wished to hold an outdoor barbecue in appreciation of his customers and sell alcohol at the event. ~e advised that the event is intended to take place over a 9 hour period from 12 to 9 p.m.; however, he indicated that if the amount of time was a concern he would be willing to work within a shorter period. Mr. Callum responded to a number of questions, advising that the event was to be exclusive to his customers and estimated approximately 200 attendees. In answer to how the event would be controlled to ensure exclusivity to his customers, Mr. Callum stated that he was unsure that a guarantee could be achieved as persons would be coming and going throughout the time of the event. He suggested, however, that the event could be by invitation and noted his ability to identify his customers. He acknowledged the need to obtain a liquor licence permit and advised that he was aware of the requirements which must be met. He added that he had spoken to representatives of the Kitchener Downtown Business Association ~KDBA~, who had held a barbecue previously in the same parking lot, to enquire what was needed and was advised to contact the City. Mr. Callum also commented on parking issues indicating he would FINANCE & CORPORATE SERVICES COMMITTEE MINUTES SAY 15, 2006 - 86 - CITY OF KITCHENER 4. CRPS-06-079 - REQUEST TO SELL ALCOHOL - PARKING LOT 7 - 91 QUEEN STREET SOUTH (CONT'D} prefer any costs associated with lost parking revenues to be waived and he intended to section off a specific area of the lot where the alcohol would be sold. Mayor C. Zehr commented that events held on City property involving the serving of alcohol represent some risk and / or liability to the City and it was his recollection the KDBA did not serve alcohol at their event. ~n questioning, Mr. Callum advised that he had no previous experience in serving alcohol to large numbers of people. In response to Councillor J. Gazzola, Ms. P. Harris advised that the only issue of concern to Parking staff is the selling of alcohol on City-owned property and they would have no concerns if the barbecue was held without the presence of alcohol. Qn motion by Councillor C. Weylie, the staff recommendation to deny the request of Mr. Callum for permission to serve alcohol at his proposed customer appreciation event was brought forward for consideration. Councillor J. Gazzola expressed the opinion that this event could be a good venue to bring people to the downtown and would like to see more information in regard to the requirements for a liquor licence permit and any provisions the City has made in the past in renting out its facilities to other events. Councillor G. Lorentz stated that while he was not in favour of serving alcohol on City property, he liked the idea of a public barbecue and suggested that the KDBA work with the business owner and City staff to determine how this event may be accommodated. Mr. R. Gosse clarified that the barbecue, in and of itself, was not a concern but rather staff have brought the matter forward only because of concerns with the serving of alcohol. Councillor J. Smola advised that the KDBA would be holding a Board meeting the following day and suggested that Mr. Callum's request be deferred to allow him, as the City's Board representative, an opportunity to raise the matter with the KDBA. Qn motion by Mayor C. Zehr - itwas resolved: "That the request from Kevin Callum, owner of Sharper Images, to sell alcohol in Parking Lot #7 at 91 Queen Street South during a customer appreciation event be deferred and referred to the ~ay 29, 2006 Council meeting to allow discussion to take place with the Kitchener Downtown Business Association and staff to provide additional information regarding details associated with this event." 5. CSD-06-067 -LEGAL AGREEMENTS - KITCHENER WOODWORKING AND CRAFT CLUB, CORPORATION OF THE CITY OF WATERLOO & REGISTERED OWNER OF 173 ROGER ST. I JG GROUP OF COMPANIES The Committee considered Community Services Department report CSD-06-067, dated May 9, 2006 regarding a tri-party agreement between the City of Kitchener, Kitchener Woodworking and Craft Club, Inc. KWCC), and the City of Waterloo for purposes of providing funding to create a woodworking and craft centre at 173 Roger Street, Waterloo; and a lease agreement with the registered owner of 173 Roger Street for securing leasehold improvements for benefit of the woodworking and craft centre. It was noted that representatives of the KWCC were in attendance this date in support of the staff recommendation. Ms. P. Houston advised that the agreements presented represent the next step in moving forward in partnering with the City of Waterloo and KWCC to establish a woodworking and craft centre at 173 Roger Street. It was noted that the parameters of the lease arrangement and funding for the project is consistent with direction given by Council in June 2005. Ms. Houston advised that the lease is for a term of 10 years, with option for renewal, based on 4,800 sq. ft. of space, with the City incurring an initial $30,000. capital expenditure and a share FINANCE & CORPORATE SERVICES COMMITTEE MINUTES SAY 15, 2006 - 87 - CITY OF KITCHENER 5. CSD-06-067 -LEGAL AGREEMENTS - KITCHENER WOODWORKING AND CRAFT CLUB, CORPORATION OF THE CITY OF WATERLOO & REGISTERED OWNER OF 173 ROGER ST. I JG GROUP OF COMPANIES (CONT'D) of the $75,000. in rental costs per year. The rental fee is based on $15.63 per sq. ft. of space and is comparable to the previously negotiated space at the former St. Jerome's school site. Ms. Houston responded to questions, providing a comparison between the proposed arrangement and that of the previous arrangement at the St. Jerome's school site. Councillor J. Gazzola questioned if a grant could be given to the KWCC rather than payment of annual rent. Ms. Houston advised that the KWCC is seeking a funding guarantee for the term of the lease to ensure rental costs are met and the arrangement with the landlord has resolved an issue of outstanding tax arrears on the property. Ms. L. MacDonald added that the renewal option of the proposed agreement is for a period of 3 years, subject to continued funding from both municipalities. Ms. Houston further noted that the agreement contains an inflationary clause regarding annual rent in the amount of 2% per year equal to the net increase of real property taxes on a proportionate basis. Councillor M. Galloway referred to Section 1 of the lease agreement with the owner of 173 Roger Street and enquired how $345,000. in leasehold improvements could be completed by the specified deadline of June 1, 2006. Ms. Houston advised that many of the improvements had already been completed, noting that it had originally been intended to bring forward the agreements several weeks ago but they were delayed. She briefly outlined the improvements made and agreed to provide a detailed listing. She added that Facilities Management staff prepared the cost estimates for the leasehold improvements, which they reviewed with the landlord and KWCC, and have completed inspections for the work to date. She also advised that the agreements would be finalized only after the leasehold improvements have been completed to the satisfaction of the City. Councillor Galloway raised concerns that the majority of leasehold improvements having been completed prior to receiving this report, places the Committee in a position of having no choice but to proceed. Ne also raised concerns with the cost of the leasehold improvements in comparison to the amount of property tax arrears to be recouped and expressed disappointment that the information was not received well in advance of the deadline. Ms. Houston stated that negotiations for this project were completed based on the direction given and the landlord chose to proceed with the leasehold improvements at his own risk. She added that it has taken considerable time to work out all the details associated with partnering with the City of Waterloo, as well as funding arrangements for the lease agreement. Ms. Houston responded to questions of Councillor C. Weylie, advising that while the work could have been tendered staff chose to undertake negotiations as a protective measure to ensure the City received appropriate value in the lease; and did so by achieving the same cost per square foot. Ms. L. MacDonald also advised that should the current owner sell the property the new owner would be obligated to honour the lease arrangement. Ms. Houston added that payment of the property tax arrears included all interest, penalty charges and an outstanding facade improvement loan, bringing the property taxes up to date as of May 1, 2006; and the property owner will be required to maintain property taxes in good standing. In response to Mayor C. Zehr, representatives of the KWCC stated that they were satisfied that the new facility would meet their needs; however, they would find it difficult at this time to assess the value of the leasehold improvements as the work is incomplete. It was also noted that they will use existing equipment in the interim of applying to various agencies for grant funding to replace the existing equipment over a period of time. Councillor J. Gazzola requested that Facilities Management staff comment on the leasehold improvements at the May 29th Council meeting, and provide an opinion in respect to the value of the work in comparison to the cost. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES SAY 15, 2006 - 88 - CITY OF KITCHENER 5. CSD-06-067 -LEGAL AGREEMENTS - KITCHENER WOODWORKING AND CRAFT CLUB, CORPORATION OF THE CITY OF WATERLOO & REGISTERED OWNER OF 173 ROGER ST. I JG GROUP OF COMPANIES (CONT'D) Councillor G. Lorentz expressed the opinion that the arrangement represents awin /win situation for both municipalities and the community, and demonstrates that sharing of services can be achieved. Ne asked that a tour of the facility be arranged for members of Council when improvements have been completed. Qn motion by Councillor G. Lorentz - itwas resolved: "That the Mayor and City Clerk be authorized to execute a tri-party agreement, satisfactory to the City Solicitor, between Kitchener Woodworking & Craft Club Inc., the Corporation of the City of Kitchener and the Corporation of the City of Waterloo, for the purposes of providing funding for the creation of a woodworking and craft centre located at 173 Roger Street, Waterloo; and further, That the Mayor and Clerk be authorized to execute an agreement, satisfactory to the City solicitor, with the registered owner of 173 Roger Street, Waterloo, for the purposes of securing leasehold improvements for the benefit of the woodworking and craft centre." 6. CRPS-06-077 -APPEAL HOT DOG CART LOCATION - 6 BRIDGE STREETWEST The Committee considered Corporate Services Department report CRPS-06-077, dated May 5, 2006 concerning an appeal of a decision of the Manager of Licensing to deny issuance of a licence for operation of a hot dog cart at 6 Bridge Street West. It was noted in the report that the location does not meet the distance separation requirement between a refreshment vehicle and place of refreshment, and between two refreshment vehicles. Qn motion by Councillor J. Smola - itwas resolved: "That no action be taken on the appeal of Zbigniew Wilk of the decision of the Manager of Licensing not to issue a licence to operate a Refreshment Vehicle shot dog cart} at 6 Bridge Street West." 7. ENERGUIDE FOR HOUSES PROGRAM Councillor G. Lorentz referred to a recent announcement that the Federal Government has cancelled the EnerGuide for Houses program, effective May 13, 2006. At his request, it was agreed that this matter be referred to the May 18, 2006 Environmental Committee meeting to draft an appropriate response to the Government's actions, with a report to be brought forward for consideration at the May 29, 2006 Council meeting. 8. CENTRE BLOCK DEVELOPMENT - CITIZEN'S FORUM UPDATE Mr. M. May advised that details are being finalized for the Citizen's Forum and a random draw for 9 community sector representatives will take place prior to the Development and Technical Services Committee meeting this date. ~e noted, however, that an issue has arisen with the proposed selection of the 12 citizens at large. Originally, the 12 were to be divided in 4 equal categories of 'for', 'against', and 'undecided'. After reviewing preliminary results of on-line and phone-in responses, staff have concerns that the proposed system will not achieve what was intended. Accordingly, Mr. May asked that the proposed system not be used and instead be replaced by selecting 2 residents at large within each of the 6 Wards. The Committee agreed with Mr. May's request. FINANCE & CORPORATE SERVICES CD~MITTEE MINUTES SAY 15, 2006 - 89 - CITY QF KITCHENER 9. ADJOURNMENT Qn motion, the meeting adjourned at 4:10 p.m. Janet Billett, AMCT Committee Administrator