HomeMy WebLinkAboutFin & Corp Svcs - 2006-10-02FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
OCTOBER 2, 2006 CITY OF KITCHENER
The Finance and Corporate Services Committee met this date, commencing at 4:55 p.m.
Present: Councillor B. Vrbanovic -Chair
Mayor C. Zehr and Councillors G. Lorentz, J. Gazzola, M. Galloway and C. Weylie.
Staff: C. Ladd, Chief Administrative Officer
P. Houston, General Manager, Financial Services & City Treasurer
R. Browning, General Manager, Development & Technical Services
A. Pappert, General Manager, Community Services
T. Speck, General Manager, Corporate Services
S. Williams, Assistant City Solicitor
D. Chapman, Director of Financial Planning & Reporting
R. Regier, Executive Director of Economic Development
M. May, Director, Corporate Communications and Marketing
H. Gross, Director of Project Administration & Economic Investment
S. Turner, Director of Enforcement
D. Quinn, Director of Utilities
S. Wright, Manager, Downtown Community Development
J. Billett, Committee Administrator
1. CRPS-06-147 -LIQUOR LICENCE REVIEW APPLICATION
- PHO 95 VIETNAMESE FAMILY RESTAURANT
- 323 KING STREET WEST
The Committee considered Corporate Services Department report CRPS-06-147, dated
September 25, 2006 concerning an application for a liquor licence for the property at 323 King
Street West.
On motion by Mayor C. Zehr -
it was resolved:
"That subject to the applicant entering into an agreement with the City including certain
conditions of operating a licensed establishment as set out below, Council take no
action to oppose the application for a liquor license for Pho 95 Vietnamese Family
Restaurant located at 323 King Street West applied for by Le Thi Be Nam (herein
referred to as the "Applicant"); and,
That the Mayor and Clerk enter into an agreement with the applicant should it be willing
wherein the applicant agrees to abide by the following conditions and to request they be
added to its licence if the Alcohol and Gaming Commission of Ontario (AGCO) chooses
to issue the licence:
1. to post in a conspicuous place and abide by the Downtown Licensed Establishments
Code of Conduct;
2. to become a member of the Kitchener Downtown Business Association's License
and Entertainment Committee and attend its meetings;
3. to abide to a set 30% monthly ratio of alcohol sales to gross refreshment sales
(including food and other sundries) (in other words, alcohol sales will be limited to
30% of gross refreshment sales);
4. to stop serving alcohol by 2:00 a.m. daily;
5. to notify the Clerk of the City of Kitchener in writing of any application to change the
license at the time the application for the change is made to the Alcohol and Gaming
Commission, and not to expand the establishment without the consent of the City's
Council;
6. to comply with the Noise By-law and the Smoking By-law; and,
7. these conditions shall bind all successors, assigns and subsequent licence holders
(if any)."
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
OCTOBER 2, 2006 - 130 - CITY OF KITCHENER
2. CRPS-06-149 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE
- DOWNTOWN CLEANING OF STREETS AND SIDEWALKS
- OCTOBER 2 TO 6, 2006
The Committee considered Corporate Services Department report CRPS-06-149, dated
September 27, 2006 concerning a request for a noise exemption for cleaning of streets and
sidewalks in the downtown.
On motion by Mayor C. Zehr -
it was 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 October 2 and
October 6, 2006."
3. CRPS-06-146 -ENVIRONMENTAL COMMITTEE RECOMMENDATION
- WATERLOO REGION GREEN SOLUTIONS (FORMERLY R.E.E.P.)
- ANNUAL REQUEST FOR FINANCIAL SUPPORT
The Committee considered Corporate Services Department report CRPS-06-146, dated
September 22, 2006 concerning a request from Waterloo Region Green Solutions (WRGS),
formerly known as the Residential Energy Efficiency Project (REEP), for financial assistance
from the City toward expansion of program services. WRGS's request was considered by the
Environmental Committee at its September 21, 2006 meeting and the Committee is
recommending approval of the grant as requested.
Ms. Mary Jane Patterson, Executive Director-WRGS, presented REEP's 2005 annual report
and a summary of results to date in 2006. She advised that REEP will continue as a project
under the auspices of the newly incorporated WRGS and plans for expansion of new services
in 2007 include:
• Greening Sacred Spaces -evaluation of energy efficiency of churches and similar size
buildings;
• Provincial Low-Income Program for Electrically Heated Homes -free energy evaluations
and energy saving measures for low-income families in electrically heated homes; and,
• Solar Assessments -evaluation of potential for solar water heating, solar pool heating and
solar electricity in residential homes.
Ms. Patterson advised that WRGS is requesting an increase in 2007 of $5000. over the
$20,000. contributed by the City in 2006 for a total of $25,000. in 2007, to assist with service
expansion. In addition, she requested that the Committee consider extending funding approval
for a two year period, to include $25,000. in each of 2007 and 2008.
Ms. Patterson responded to questions, providing additional explanation of proposed new
services, structure of the new organization and approach to other funding partners. Ms.
Patterson also agreed to provide the organization's budget actuals in years 2004, 2005 and
2006 to City staff, prior to final consideration of their grant request as part of the City's 2007
budget deliberations.
On motion by Mayor C. Zehr -
it was resolved:
"That subject to consideration during the 2007 budget deliberations, $25,000. be
allocated to the Waterloo Region Green Solutions (formerly known as the Residential
Energy Efficiency Project, REEP), as part of the Environmental Committee's 2007
operating budget; and further,
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
OCTOBER 2, 2006 - 131 - CITY OF KITCHENER
3. CRPS-06-146 -ENVIRONMENTAL COMMITTEE RECOMMENDATION
- WATERLOO REGION GREEN SOLUTIONS (FORMERLY R.E.E.P.)
- ANNUAL REQUEST FOR FINANCIAL SUPPORT tCONT'D)
That during the 2007 budget deliberations concerning this matter, consideration be
given to extending funding approval fora 2 year period to include $25,000. in each of
2007 and 2008."
4. CRPS-06-14$ -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE
- KIWANIS CLUB'S HIP HOP CONCERT -OCTOBER 12, 2006
- KITCHENER MEMORIAL AUDITORIUM COMPLEX - OKTOBERFEST
EVENT
The Committee considered Corporate Services Department report CRPS-06-148, dated
September 27, 2006 concerning a noise exemption request from the Kiwanis Club for an event
to be held at the Kitchener Memorial Auditorium during Oktoberfest celebrations. This matter
was deferred by the Committee at its meeting of September 18, 2006 to allow issues of
concern to be resolved.
Mr. S. Turner advised that a meeting was held with all interested parties and the concerns of
area residents were addressed based on the imposition of certain conditions of approval.
On motion by Councillor G. Lorentz -
it was resolved:
"That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be
granted to the Kiwanis Club for their Hip Hop concert, at the Kitchener Memorial
Auditorium, on October 12, 2006, provided the organizers adhere to the agreed upon
acoustic settings as outlined in Corporate Services Department report CRPS-06-148,
dated September 27, 2006."
5. FIN-06-029 -FINANCIAL REPORT AS OF AUGUST 31, 2006
The Committee considered Financial Services Department report FIN-06-029, dated
September 27, 2006 which provides an Interim Financial Report as of August 31, 2006.
Mr. D. Chapman advised that a $4.6 M surplus in operating is now projected for year-end
based on 3 key factors: assessment growth; investment income; and departmental operations
budget savings resulting from mild winter conditions and utility cost variances. Mr. Chapman
also commented on variances, both negative and positive, as they relate to: Building
Enterprises; Golf Courses; Water /Sanitary Sewer Utilities; and Gas Utility, and provided the
Committee with clarification of a number of line items pertaining to General /Departmental and
Utility revenues and expenses. Mr. D. Chapman agreed to provide further explanation of the
variance related to the Building Enterprise Indirect Expenses.
Mr. Chapman advised that the projected surplus will be transferred to the Tax Stabilization
Reserve Fund and presents a number of financial planning opportunities for the City. He noted
that staff will report to the Committee at a future date with options for disposition of the surplus
funds.
On motion by Councillor M. Galloway -
it was resolved:
"That the Financial Report as of August 31, 2006 be received for information, as
attached to Financial Services Department report FIN-06-029."
6. FIN-06-030 -NATURAL GAS PURCHASE POLICY
The Committee considered Financial Services Department report FIN-06-030, dated
September 25, 2006 recommending revisions to the gas purchase policy criteria relative to the
provision of gas supply services.
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
OCTOBER 2, 2006 - 132 - CITY OF KITCHENER
6. FIN-06-030 -NATURAL GAS PURCHASE POLICY tCONT'D)
Mr. D. Quinn advised that staff is requesting the criteria be updated to reflect changes in the
gas industry that have opened opportunity to expand the City's portfolio of suppliers to achieve
ongoing value for its customers. In addition, housekeeping amendments are required resulting
from departmental restructuring to correct designated staff for authorization for gas purchase
transactions.
On motion by Councillor J. Gazzola -
it was resolved:
"That the Gas Purchase Policy Criteria for continuation of the Utilities Division provision
of Gas Supply services as attached to Financial Services Department report FIN-06-
030 be approved."
7. FIN-06-031 -NATURAL GAS RATES
The Committee considered Financial Services Department report FIN-06-031, dated
September 25, 2006 concerning a proposed rate change in the supply component of natural
gas rates.
Mr. D. Quinn advised that industry pricing has gone down, and accordingly, a rate decrease is
in order to ensure forecast revenues will not exceed reasonable levels and the projected gas
costs are covered for this year. The impact of the supply rate change is expected to produce a
decrease of 4.1 % equal to a savings of approximately $52. per year for the average residential
customer. The rate change will take effect November 1, 2006 and is expected to remain
constant through March 31, 2007. Mr. Quinn noted that notice of the intention to consider a
rate change this date was published in the local newspaper, The Record.
On motion by Mayor C. Zehr -
it was resolved:
"That the supply component of the natural gas rates be decreased to 29.9 cents per
cubic meter from 31.9 cents per cubic meter for system gas customers of the City of
Kitchener, effective November 1, 2006."
8. CAO-06-060 -CENTRE BLOCK REDEVELOPMENT
- REQUEST FOR EXPRESSIONS OF INTEREST I PROPOSAL
The Committee considered Chief Administrator's Office report CAO-06-060, dated September
28, 2006 concerning a draft Request for Expressions of Interest /Proposal (RFP) for
redevelopment of the Centre Block, and attached copy of the draft RFP document and
promotional booklet (overview).
Mr. Hans Gross and Ms. Silvia Wright presented an overview of the draft RFP document and
promotional marketing tools, highlighting the following:
• Community Vision Statement - "Within a re-energizing downtown, Centre Block will be a
vibrant new main street destination that will offer new stores, urban living alternatives and
style. Centre Block will reinforce the downtown as a cultural urban centre and act as a
catalyst for day and evening activities."
• Required and Preferred Elements -
o Required: 250 public parking spaces in an underground structure; and financial
ability and past performance to complete development;
v Preferred: diverse residential development; street level active retail and
commercial uses; excellence in building design; combinations of safe, connected
public outdoor spaces within the site; opportunities for connected outdoor
animated uses such as restaurants or cafes; and incorporation of public art.
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
OCTOBER 2, 2006 - 133 - CITY OF KITCHENER
8. CAO-06-060 -CENTRE BLOCK REDEVELOPMENT
- REQUEST FOR EXPRESSIONS OF INTEREST I PROPOSAL tCONT'D)
• Heritage Elements -honour history of the block through building design and reuse of
reclaimed /salvaged materials from the former Forsyth factory; and incorporation of 11
Young Street (former Mayfair Hotel) and 156-158 King Street West into the development in
recognition of their heritage value.
Mr. Gross advised that creation of a new "Centre Block Evaluation Committee" is
recommended to undertake a four step evaluation, to include: initial screening of proposals
received, conducting interviews, gathering public input and negotiating with the final two
proponents; culminating in a recommendation to City Council of a preferred development
proposal for the Centre Block. Mr. Gross stated that if approved by Council on October 16,
2006 the final RFP document will be issued the week of October 23 and the entire evaluation
process is anticipated to unfold over a 60 week period.
Mr. Gross noted that the cost of redevelopment to the City will consist of a contribution toward
construction of the 250 underground parking spaces through combination of land and money
to be negotiated with the developer. He added that the public will continue to have a vital role
in redevelopment of the site through various public processes throughout the evaluation
stages. He then referenced the weighted scoring criteria to be used in evaluating the final two
proposals, consisting of 4 components and including treatment of: the overall site; open space
on the site; redevelopment /reuse of 11 Young Street and 156-158 King Street West; and the
parking structure.
In response to questions, Mr. Gross advised that the draft RPF has been vetted by outside
legal counsel and outside communications advisor for content and a number of changes have
been, and continue to be made, as a result of their input. Comments of the Committee this
date will also be incorporated into the final version of the RFP document, which is to be
provided to Council prior to consideration at the October 16 Council meeting. It was further
noted that the review by outside advisors included consideration of the document in terms of
fairness and transparency and it was deemed sound.
Mr. Gross further advised that no other financial incentives are to be provided, other than
through the City's existing Downtown Financial Incentive Program (EDGE) and proposed
negotiation of the land in terms of the City's contribution towards construction of the 250
parking spaces. In regard to the proposed membership of the Evaluation Committee, Mr.
Gross commented that it was recommended by outside advisors not to have political
representation on the Committee so as to maintain a neutral position and ensure Councils'
objectivity in making the final decision. Further, in regard to provision of a higher level of
environmental best practices, Ms. C. Ladd advised against mandatory requirement to surpass
industry standards as it could jeopardize the RFP process and instead suggested that
additional points may be applied in scoring proposals that choose to go beyond LEED
objectives.
Mr. Gross noted that considerable interest by the development industry has already been
demonstrated in varied approaches to staff and suggested it is likely that proposals will be
received. He added that in the event that the RFP process does not garner a successful
proposal, it should then be re-assessed to determine why and changes made for the purpose
of trying again to obtain a successful outcome.
Prior to producing the final version of the draft RFP document, Mr. Gross was asked to confirm
the "lease price per square foot at end of the 2"d quarter of 2006" as noted on page 47 of the
draft document and to correct a typographical error in Appendix B on page 68 (Timing) of the
document to change the year referenced from "20065" to "2006". Mr. Gross also agreed to
provide Council with a comprehensive list of changes made to the draft RFP document to
assist in its final consideration on October 16.
Mayor C. Zehr requested, and it was agreed, to revise the staff recommendations in report
CAO-06-060 to provide that they be approved, in principle, to accommodate incorporation of
further revisions to the RFP document.
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
OCTOBER 2, 2006 - 134 - CITY OF KITCHENER
8. CAO-06-060 -CENTRE BLOCK REDEVELOPMENT
- REQUEST FOR EXPRESSIONS OF INTEREST I PROPOSAL tCONT'D)
On motion by Mayor C. Zehr -
it was resolved:
"That the following recommendations pertaining to the Request for Expressions of
Interest /Proposal for the redevelopment of the Centre Block, as outlined in Chief
Administrator's Office report CAO-06-060 (M. May / H. Gross), be approved, in
principle:
1. That the City of Kitchener issue its Request for Expressions of Interest /Proposal
for the redevelopment of Centre Block, as contained in Appendices A and B of
report CAO-06-060; and,
2. That a new "Centre Block Evaluation Committee" be struck according to the
mandate and general membership outlined in report CAO-06-060; and further,
3. That City of Kitchener staff work with staff from the Region of Waterloo and
Kitchener Housing Inc. to develop a strategy by June 2007 for the relocation of
the remaining residents of the Mayfair Hotel to a superior facility ideally within the
proximity of the downtown."
9. ADJOURNMENT
On motion, the meeting adjourned at 6:55 p.m.
Janet Billett, AMCT
Committee Administrator
