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HomeMy WebLinkAboutFin & Corp Svcs - 2006-12-11FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 11, 2006 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 2:30 p.m. Present: Mayor C. Zehr and Councillors G. Lorentz, J. Gazzola, K. 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 & Fire Chief A. Pappert, General Manager, Community Services T. Speck, General Manager, Corporate Services D. Chapman, Director, Financial Planning & Reporting M. Hildebrand, Director of Aquatics & Athletics R. Gosse, Director of Legislated Services & City Clerk D. Quinn, Director of Utilities D. Paterson, Director of Human Resources H. Gross, Director, Project Administration and Economic Investment L. Proulx, Director, Facilities Management S. Adams, Director, Community & Corporate Planning G. Hummel, Manager, Park Planning, Development & Operations D. Ritz, Supervisor, Design & Development T. Boutilier, Senior Planner A. Grafstein, District Facilitator, Stanley Park Community Centre J. Billett, Committee Administrator In the absence of Councillor B. Vrbanovic, Chair and Councillor J. Smola, Vice-Chair, it was agreed that Mayor C. Zehr would assume the Chair to conduct this meeting of the Finance and Corporate Services Committee. 1. CRPS-06-174 -REQUEST FOR REDUCED LICENSE FEE - DOON HERITAGE CROSSROADS - "SEEDY SATURDAY" EVENT -FEBRUARY 17, 2007 The Committee considered Corporate Services Department report CRPS-06-174, dated December 1, 2006 concerning a request for a reduced licence fee. On motion by Councillor C. Weylie - it was resolved: "That the request of Doon Heritage Crossroads to pay a reduced licence fee of $38.10 for the `Seedy Saturday' event to take place on February 17, 2007 at Doon Heritage Crossroads be granted." 2. CSD-06-116 -COMMUNITY PLAYGROUND GRANT APPLICATION - ST. BERNADETTE CATHOLIC ELEMENTARY SCHOOL The Committee considered Community Services Department report CSD-06-116, dated November 20, 2006 concerning a community playground grant application. On motion by Councillor C. Weylie - it was resolved: "That St. Bernadette Catholic Elementary School be awarded aone-time community playground grant of $750 in 2006 toward construction of a new creative playground facility, to be located within the school campus." 3. CSD-06-11$ -COMMUNITY DEVELOPMENT INFRASTRUCTURE PROGRAM GRANT PROPOSAL - CENTREVILLE CHICOPEE COMMUNITY ASSOCIATION The Committee considered Community Services Department report CSD-06-118, dated November 14, 2006 concerning a community development infrastructure program grant application. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 11, 2006 - 145 - CITY OF KITCHENER 3. CSD-06-11$ -COMMUNITY DEVELOPMENT INFRASTRUCTURE PROGRAM GRANT PROPOSAL - CENTREVILLE CHICOPEE COMMUNITY ASSOCIATION tCONT'D) On motion by Councillor C. Weylie - it was resolved: "That a grant allocation be approved to the Centreville Chicopee Community Association from the Community Development Infrastructure Program for $6,700 for expenses related to developing a service plan for their licensed Pre-school Program and for ashort-term book-keeping project." CAO-06-056 -END OF MANDATORY RETIREMENT (ADDENDUM TO REPORT CAO-06-052) This matter was first dealt with at the September 5, 2006 Finance and Corporate Services Committee meeting at which time consideration of Chief Administrator's Office report CAO-06- 052 (End of Mandatory Retirement) was deferred to the Finance and Corporate Services Committee meeting of September 18, pending additional information on the best way for the City to deal with insured benefits for employees beyond age 65. An addendum report, CAO-06-056, dated September 11, 2006 was considered at the September 18 Committee meeting at which time this matter was again deferred to this date pending a report on the principle of providing benefits to employees aged 65 and over, based on the premise that such employees shall be in the same position of coverage as at prior to age 65. Mr. D. Paterson requested that this matter be further deferred to the end of January 2007 as staff require more time to fully explore the issues raised. He noted that the requested delay will not have an adverse impact as no employees will be in a position of reaching age 65 prior to March 2007. On motion by Councillor G. Lorentz - it was resolved: "That notwithstanding Council's resolution of September 25, 2006, staff report to the January 29, 2007 Finance and Corporate Services Committee meeting on the principle of providing benefits to employees age 65 and over, based on the premise that such employees shall be in the same position of coverage as at prior to age 65; as it relates to Chief Administrator's Office report CAO-06-052 (End of Mandatory Retirement) and addendum report CAO-06-056." FIN-06-059 -FUNDING ADJUSTMENTS -DEVELOPMENT CHARGE BY-LAW - ONTARIO MUNICIPAL BOARD APPEAL The Committee considered Financial Services Department report FIN-06-059, dated December 6, 2006 regarding a decision of the Ontario Municipal Board issued September 5, 2006 concerning an appeal to the City's Development Charge By-law (No. 2004-156). As a result of the Board's decision adjustments to the by-law are necessary; however, the overall net impact on the approved development charge rate is no change. Ms. P. Houston advised that timing and funding of special projects are being adjusted as a result of negotiations and the appeal to the Board but the net effect to the approved development charge rate is that it will remain the same. Amendments to By-law No. 2004-156 are required to reflect the decision of the Board and to incorporate a decision of Council to revise the definition of "existing industrial building" in accordance with the definition in the City's previous Development Charge By-law. In addition, staff is seeking approval to proceed with preparation of a service specific amendment to the 2004 Development Charge Background Study to implement a number of revised project cost estimates identified as part of the hearing process. It was noted that this process would be subject to the Public Hearing process and be specific to changes related to the following services: sanitary sewers, storm sewers, roads and fleet. Ms. Houston stated that staff is of the opinion that the proposed increase in project cost estimates should be pursued now rather than waiting until the normal FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 11, 2006 - 146 - CITY OF KITCHENER 5. FIN-06-059 -FUNDING ADJUSTMENTS -DEVELOPMENT CHARGE BY-LAW - ONTARIO MUNICIPAL BOARD APPEAL tCONT'D) five year review of the Development Charge By-law in 2009, given the potential difference in revenue during the intervening years will amount to approximately $1 M. Typographical errors in the staff recommendation were noted, in that, brackets were missing from around the amount listed for the Schneider Creek Channel Project and the line item for the McLennan Park project was inadvertently omitted. Accordingly, it was agreed to revise the staff recommendation to correct these errors. On motion by Councillor C. Weylie - it was resolved: "That a transfer of $2,028,455 from the tax stabilization reserve fund to fund the net changes to the following projects as a result of the Ontario Municipal Board decision issued on September 5, 2006 (Decision /Order No. 2483) be approved: • Soccer facilities $17,186 • Downtown Community Centre ($109,910) • Victoria Hills Community Centre $1,210,477 • Chandler Mowat Community Centre $1,143,145 • Schneider Creek Channel ($323,754) • McLennan Park $91,311; and, That a transfer of $2,028,455 from the above projects to Development Charge reserve fund be approved; and, That By-law 2004-156 be amended to replace Schedule `A' with the schedule attached to Financial Services Department report FIN-06-059 to reflect the Ontario Municipal Board Decision/Order No. 2483, issued on September 5, 2006 and to incorporate Council's resolution on January 17, 2005 amending the definition of `existing industrial building'; and further, That staff be directed to proceed with the preparation of a service specific amendment to the 2004 Development Charge Background Study to implement the remaining increases in project cost estimates and growth allocation changes that were endorsed by the Ontario Municipal Board in its Decision /Order No. 2483, to be brought back to Finance and Corporate Services Committee for consideration in early 2007." 6. FIN-06-053 - 2007 COMPREHENSIVE FEE REVIEW The Committee considered Financial Services Department report FIN-06-053, dated November 30, 2006 regarding a Comprehensive Review of Proposed Fees and Charges for 2007, with the exception of Utility rates. Pursuanf fo fhe Murricipal Acf 2001, a Nofice of lnfenfion fo consider fees and charges for Fire Services as parf of fhe 2007 Comprehensive Fee Review, was published in The Record on November 17, 2006. No delegations came forward to address the Committee regarding fees and charges for Fire Services. Mr. D. Chapman advised that departments based fee increases on an initial guideline of 3% and most are increasing by an inflationary amount. It was noted that a number of low dollar- value fees are only adjusted periodically to maintain a round value for ease of payment, which includes such fees as hourly parking rates and arena /community centre admissions. Mr. Chapman then outlined three strategic fee adjustments in the following areas: Cemetery fees to increase to the middle of the range of rates identified during a market review to continue to bring fees more in line with market rates; parking rates to increase by 5% to continue to move toward full cost recovery and support transportation demand management initiatives; and Community Services direct programs and course rates to be based on instruction hours rather than the number of weeks a course is offered. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 11, 2006 - 147 - CITY OF KITCHENER 6. FIN-06-053 - 2007 COMPREHENSIVE FEE REVIEW tCONT'D) Staff responded to questions, advising that increases in Cemetery fees will result in the current deficit of $175,000 being reduced by approximately $20,000 and staff are continuing to pursue strategic plan initiatives in efforts to further reduce the deficit; a business case to provide options for a long term business model for parking operations will come forward in January 2007 but it is recommended to proceed with rate changes now as it may take the next year to implement initiatives resulting from the business case; and significant rate increases proposed for sports fields relate to an eight year agreement with sports groups to bring rates to a cost recovery level. On motion by Councillor G. Lorentz - it was resolved: "That the proposed fees and charges contained in the 2007 Comprehensive Fee Review attached to Financial Services Department report FIN-06-053 be approved; and, That the Manager of Cemeteries be directed to forward the Cemetery Tariff of Fees and Charges to the Ministry of Government Services -Cemeteries Regulation Unit for filing, in order that the proposed fees become effective January 1, 2007; and further, That Legal Services staff be directed to prepare the necessary by-laws to amend the City's Municipal Code chapters for fees and charges pertaining to licensing, planning applications, building permits and Committee of Adjustment applications." 7. DEPARTMENTAL PROJECT REFERRALS TO THE 2007-2016 CAPITAL FORECAST The Committee considered six departmental reports, as outlined below, regarding departmental referral of projects to the 2007-2016 Capital Forecast. Ms. P. Houston advised that staff undertook a new approach that consolidates all requests by department for consideration at one time, as opposed to receiving reports at varying intervals on individual projects. Ms. Houston noted that this allows all additions to the Capital Forecast to be seen at one time and provides opportunity to develop a strategy as to where new projects will fit into the Capital Forecast. She asked that the Committee provide staff with their comments on the new process to determine its acceptance or need for future change. Ms. P. Houston clarified that approval of the staff recommendations this date does not represent a final decision on projects to be included in the Capital Forecast but rather allows the specified projects to advance to consideration as part of the 2007 budget deliberations. a) FIN-06-057 -GENERAL EXPENSES AND BOARDS The Committee considered Financial Services Department report FIN-06-057, dated November 29, 2006 regarding capital projects proposed to be included in the 2007-2016 Capital Forecast. Ms. Houston advised that two projects under this category are proposed, which include: a fundraising campaign/activities for the Kitchener Public Library; and implementation of ISO 14001 EMS Program for the City's Fleet Operations as recommended by the Environmental Committee Air Quality report. Councillor J. Gazzola suggested that the Kitchener Public Library (KPL) allocation for fundraising was premature pending further discussions on the status of the central library project and disposition of the $32.5 M dedicated to the project under the Economic Development Investment Fund (EDIF). Ms. P. Houston stated that the allocation is not specific to the central library project but rather to general fundraising for any future KPL building projects. She also noted that any portion of this project related to the central library could be funded from EDIF as part of the central library project. Ms. Sonia Lewis, CEO -KPL, pointed out that a Fundraising Feasibility Study was completed in 2005 wherein it proposed that KPL take 12 to 18 months to develop a strong FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 11, 2006 - 14$ - CITY OF KITCHENER 7. DEPARTMENTAL PROJECT REFERRALS TO THE 2007-2016 CAPITAL FORECAST a) FIN-06-057 -GENERAL EXPENSES AND BOARDS tCONT'D) communications /marketing package prior to undertaking any fundraising. She stated that the proposed allocation will assist in providing that lead time, adding that staffing resources are needed to ensure KPL has the expertise to manage a successful fundraising program now and into the future. Councillor J. Gazzola questioned proceeding with an implementation of an ISO 14001 EMS program for Fleet Operations as no detailed information has yet been provided that would demonstrate there is merit in doing so. Ms. P. Houston noted that some analysis has been undertaken and it is intended that a full report will come forward for the Committee's consideration prior to any of the funding being expended. A motion by Councillor J. Gazzola to provide that the projects as outlined in Financial Services Department report FIN-06-057 be added to the 2007-2016 Capital Forecast as line items with no dollar amounts specified, was voted on and Lost. On motion by Councillor C. Weylie - it was resolved: "That the following capital projects be included in the 2007-2016 Capital Forecast for consideration by the Finance and Corporate Services Committee as part of the 2007 budget deliberations, as outlined in Financial Services Department report FIN-06-057: • Kitchener Public Library -Fundraising Campaign and Activities -new project - total cost of $176,000 over 2007-2009; and, • Environmental Committee Air Quality Report -Implementation of ISO 14001 EMS program for the City's Fleet operations - $75,000 in 2007." At the request of Councillor C. Weylie, it was agreed that attempts be made to convene a meeting between Council and members of the Kitchener Public Library Board early in 2007 to determine a course of action as to the future needs of the library. b) CAO-06-066 -CHIEF ADMINISTRATOR'S DEPARTMENT The Committee considered Chief Administrator's Office report CAO-06-066, dated November 23, 2006 outlining two projects for inclusion in the Capital Forecast which include: a Vehicle and Equipment Permit System and Brownfields Community Improvement Plan (CIP) TIF Payments. Ms. C. Ladd advised that the permit system is required to ensure City staff possess the skills and knowledge necessary for safe operation of vehicle /equipment and compliance with legislation under the Occupational Health and Safety Act and Commercial Vehicle Operators' Registration (CVOR) program. The second project provides related funding for four approved grant applications under the City's Brownfields CIP program. The grants will apply in the year following construction completion and re-assessment by the Municipal Property Assessment Corporation, and continue for a maximum of 10 years or until total eligible remediation cost has been reached. Mr. T. Boutilier responded to questions, advising that beyond finalizing the four approved grant applications, staff are anticipating future changes to the City's Brownfields CIP program pending confirmation that the Region will be authorized legislatively to financially participate in brownfield re-development grant programs. Mr. D. Paterson also responded to questions, advising that the City formerly had a permit system but was unable to maintain the program due to lack of structure and limited resources. He added that without such a program the City is vulnerable under provincial safety legislation and CVOR in the event of accidents. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 11, 2006 - 149 - CITY OF KITCHENER 7. DEPARTMENTAL PROJECT REFERRALS TO THE 2007-2016 CAPITAL FORECAST b) CAO-06-066 -CHIEF ADMINISTRATOR'S DEPARTMENT tCONT'D) On motion by Councillor C. Weylie - it was resolved: "That the following capital projects be included in the 2007-2016 Capital Forecast for consideration by the Finance and Corporate Services Committee as part of the 2007 budget deliberations, as outlined in Chief Administrator's Office report CAO-06-066: • Vehicle & Equipment Permit System $200,000 2007/2008 • Brownfields Community Improvement Plan TIF Payments $2,065,144 2007-2016." c) CSD-06-115 -COMMUNITY SERVICES DEPARTMENT The Committee considered Community Services Department report CSD-06-115, dated December 6, 2006 outlining 14 projects for inclusion in the Capital Forecast. Ms. A. Pappert highlighted four main areas, beginning with parks and open space which include projects related to: community trails; general park development and completion of a Parks and Open Space Master Plan. Ms. Pappert advised that the projects represent a move toward addressing the backlog of new park and open space trail development and the master plan is intended to guide improvements for existing and new development over the next 10 years based on evolving standards, recreational trends, community values / expectations and forecast growth. It was also noted that the proposed funding differs slightly from what was originally proposed in report CSD-06-105 considered by the Committee in October 2006. Pre-planning items were noted which include: master plans and feasibility studies for the Homer Watson House and Gallery, special events and future South Kitchener District Recreation Complex; application to the Cultural Capitals of Canada Program; and continued implementation of CulturePlan II. It was noted that a report will be brought forward on January 8, 2007 requesting pre-budget approval of the Cultural Capitals of Canada application in order to meet a deadline imposed under the federal program. Ms. Pappert then spoke in regard to McLennan Park commenting that under agreement with the Region of Waterloo the park is to be developed as a recreational use. Development of the park use is proposed to be undertaken in a phased approach over a period of 20 years. Finally, projects related to Williamsburg Cemetery were reviewed which stem from the Cemetery Strategic Plan and include: design and business plan for Phase II of the Cemetery; business plan for purchase of lands for future cemetery development; and feasibility of a mausoleum development for the Cemetery. Mr. G. Hummel) explained the difference in funding regarding park and open space, advising that in October staff had recommended a short term solution to increase the General Park and Community Trail Capital Budgets by $700,000 per year over a 5 year term, which would have allowed 3 to 5 park facilities per year to be completed. The proposal now recommends that the same dollar amount be applied over a 10 year period, allowing completion of 1 to 2 park facilities per year, and a portion of the funds to be used to complete the master plan to enable priorities to be determined and actual costs projected. Mayor C. Zehr commented on the importance of addressing the backlog of park and open space development in keeping with environmental issues and suggested that this is an area where thought should be given toward other possible sources of funding. Ms. C. Ladd stated that the desire to accelerate this program is understood and completion of a master plan is a good starting point toward determining priorities. She added that a second Environmental Planner has been hired to assist in completion of a new comprehensive Environmental Strategic Plan that will also provide direction. In response to questions, Mr. Hummel) advised that approximately 20 community parks are outstanding of which 5 or 6 have been graded /seeded by the developer as required. The remaining have not been pursued pending the timing of construction schedules. He added that Community Services is working with Planning staff to bring park development into the first phases of development. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 11, 2006 - 150 - CITY OF KITCHENER 7. DEPARTMENTAL PROJECT REFERRALS TO THE 2007-2016 CAPITAL FORECAST c) CSD-06-115 -COMMUNITY SERVICES DEPARTMENT tCONT'D) Mr. Hummel) also spoke to plans for a South Kitchener District Recreation Complex, noting that a 41.5 acre parcel of City-owned lands located at the corner of Fischer-Hallman and Huron Roads (known as the Huron Farm) is being considered as a potential site for the recreational complex, as well as for the proposed Fire Hall 7. It is intended that the entire site be looked at in terms of community needs and desires and how such activities can be accommodated spatially on the site. At the request of Councillor G. Lorentz, Ms. C. Ladd agreed to have Legal staff follow up on the status of tenancy on the City-owned Huron Farm lands. Mr. G. Hummel) then spoke to the development of McLennan Park, advising that an implementation strategy and detailed costing developed throughout 2006 determined that combining the 2006 and 2007 Capital Budget amounts ($1,044,000) was an appropriate first phase to the development and that it would be more practical and cost effective to develop the remaining works in three additional phases at approximately $1.2 M (2006 dollars). Mr. Hummel) pointed out that as the various phases come forward the need for certain features such as a skateboard park, will be reviewed with the local Neighbourhood Association. On motion by Councillor K. Galloway - it was resolved: "That the following capital projects be included in the 2007-2016 Capital Forecast for consideration by the Finance and Corporate Services Committee as part of the 2007 budget deliberations, as outlined in Community Services Department report CSD-06- 115: Capital Project Amount Year 1. Auditorium Lobby Floor $ 50,000 2016 2. Cenotaph $ 150,000 2010 3. Community Trails $1,600,000 2007-2016 4. Cultural Capitals of Canada 2009 $ 667,000 2007-2009 5. CulturePlan II Implementation $ 286,000 2007-2009 6. General Park Development $1,884,000 2007-2016 7. Hanson Avenue Extension $ 700,000 2007 8. Master Plans & Feasibility Studies 8.1 Homer Watson House & Gallery Plan $ 80,000 2007 8.2 Special Events Strategic Plan $ 40,000 2007 8.3 South Kitchener Recreation Complex $ 70,000 2007 9. McLennan Park $2,690,000 2008-2016 10. Parks & Open Space Master Plan $ 180,000 2007 11. Skateboard Facility $1,100,000 2010-2012 12. User Fee Review $ 80,000 2012 13. Williamsburg Cemetery Phase II Dev. $ 60,000 2007 14. Williamsburg Cemetery Phase I Project $ 49,000 2008-2009." d) CRPS-06-171 -CORPORATE SERVICES DEPARTMENT The Committee considered Corporate Services Department report CRPS-06-171, dated November 23, 2006, outlining 13 projects for inclusion in the Capital Forecast. Mr. T. Speck advised that 15 to 20 building audits are proposed in 2007 to coincide with initial stages of an inventory process required as part of the PSAB Tangible Asset reporting. Renovations are proposed for the Centreville Chicopee Community Centre to provide a more welcoming environment and improve customer service. City Hall cooling towers will be replaced over a two year period in the years this equipment is expected to reach its life expectancy. The line items associated with office furniture stem from direction given to consolidate departmental budgets for office furnishings under the umbrella of Facilities Management for ease of administration and no net budget increase is realized. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 11, 2006 - 151 - CITY OF KITCHENER 7. DEPARTMENTAL PROJECT REFERRALS TO THE 2007-2016 CAPITAL FORECAST d) CRPS-06-171 -CORPORATE SERVICES DEPARTMENT tCONT'D) Replacement of City Hall spandrel glass panels is needed due to deterioration of the paint film. Funds are required in the community centre contingency to address major replacement and maintenance expenses as a result of increased building square footage involving: Victoria Hills Community Centre, Kingsdale Community Centre, Bridgeport Community Centre and the Chandler Mowat Community Centre. Anew motorized solid room divider is proposed for the Downtown Community Centre to allow simultaneous programming and maximum capacity use of the facility. An increase in Other Funding for Energy Management is a change in how the funding is presented wherein projected recoveries are now based on specific energy management projects as opposed to generalized budgeted expenses and related recoveries. A number of building repairs, arising from two separate audits of the Homer Watson House and Gallery, are required to be completed in accordance with the City's Maintenance Easement Agreement with the Province. Increased funding is proposed in the 10-Year Capital Forecast Contingency to cover plumbing maintenance costs of two new fountains proposed for installation at the entrance to Victoria Park and Charles and Gaukel Streets. Finally, funding to cover building maintenance at 79 Joseph Street (former KOR Gallery) is required to ensure it remains viable for future occupancy. In regard to 79 Joseph Street, Mr. L. Proulx advised that no new use is proposed for the building at this time. On motion by Councillor C. Weylie - it was resolved: "That the following capital projects be included in the 2007-2016 Capital Forecast for consideration by the Finance and Corpora te Services Committe e as part of the 2007 budget deliberations, as outlined in Corporate Ser vices Department report CRPS-06- 171: Project Name Project Cost Project Year Building Audit $ 80,000 2007 Centreville CC Vestibule Alteration $ 100,000 2008 City Hall Cooling Towers $ 100,000 2014 City Hall Cooling Towers $ 100,000 2015 City Hall Office Furniture - C/C $ 547,000 2007-2016 City Hall Office Furniture - RES-BLDG $ 57,000 2007-2016 City Hall Spandrel Glass Replacement $ 200,000 2012 Community Centre Contingency $ 410,000 2007-2016 Downtown CC Gym Divider $ 65,000 2007 Energy Management -OTHER $ 319,000 2007-2016 Homer Watson House & Gallery Repairs $ 79,000 2007-2008 Outdoor Fountains $ 71,000 2007-2016 79 Joseph Street $ 55,000 2007-2016." e) DTS-06-179 -DEVELOPMENT & TECHNICAL SERVICES DEPARTMENT The Committee considered Development and Technical Services Department report DTS- 06-179, dated November 30, 2006 outlining nine projects for inclusion in the Capital Forecast. Mr. R. Browning advised that the Adaptive Re-use Incentive Program provides encouragement to renovate and re-use existing buildings and the funds proposed are for the Mansion Lofts, which is the first development to benefit from the program. An Automated Attendance Management System is proposed for Kitchener Fire, Operations and Utilities to more effectively manage associated issues with staffing and could be used Corporate-wide to enhance employee contact capabilities when invoking emergency procedures. Additional funds are proposed for the Cedar Hill project to address appeals to Zoning and Official Plan Amending By-laws relating to Phase I of the project and to cover the cost of a consultant to begin Phase IL An annual allocation to the Heritage Tax Refund FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 11, 2006 - 152 - CITY OF KITCHENER 7. DEPARTMENTAL PROJECT REFERRALS TO THE 2007-2016 CAPITAL FORECAST e) DTS-06-179 -DEVELOPMENT & TECHNICAL SERVICES DEPARTMENT tCONT'D) Program is proposed to meet current and future demands of owners of heritage properties protected either by a Heritage Conservation Easement Agreement or Preservation and Maintenance Agreement. Restoration of the old Westmount trunk sanitary sewer, between Glasgow Street and Gage Avenue adjacent to the Iron Horse Trail, is required and is to be funded from the Sanitary Sewer Enterprise. The Mike Wagner and Urban Environmental Awards previously funded from the operating budget annually, are proposed to be funded from the capital budget as they are now only conducted every two years. A reduction in the annual allocation for the Natural Lands Acquisition Fund is proposed in order to achieve overall budget targets of the 10-year Capital Forecast. Staff anticipate another portion of the old Westmount Trunk Sanitary Sewer, between Waverly Road and Victoria Street, that is in poor condition can be abandoned with some services re-routed and the work scheduled for 2013 is to be funded from the Sanitary Sewer Enterprise. Replacement of Engineering Services' Geodometer Total Station equipment is proposed to continue efforts toward engineering best practices. Mr. Browning also made note of the annual program for street reconstruction advising that infrastructure condition ratings for roads, watermains and sewers are reviewed annually and while adjustments are made annually, they do not significantly affect the base accelerated infrastructure program. The annual capital program is predicated on meeting a 2032 target to have all buried pipe in the City's systems at less than 80 years of age. Mr. D. Mansell advised that Infrastructure Improvement projects will be assigned to uncommitted funds within the department's capital budget. Mr. D. Chapman clarified the proposed reduction to the annual allocation for the Natural Lands Acquisition Fund, advising that $50,000 (uninflated) is to be allocated over the first 5 years of the Forecast with $100,000 (inflated) thereafter. Mayor C. Zehr reiterated comments made in regard to the importance of addressing environmental issues, suggesting this may be another area where thought should be given to alternate sources of funding. On motion by Councillor G. Lorentz - it was resolved: "That the following capital projects be included in the 2007-2016 Capital Forecast for consideration by the Finance and Corporate Services Committee as part of the 2007 budget deliberations, as outlined in Development and Technical Services Department report DTS-06-179: Project Name Project Cost Project Year Adaptive Re-Use Grant $ 580,000 2007-2016 Automated Attendance Management System $ 165,000 2008 Cedar Hill Phase 1/Phase 2 $ 55,000 2007 Heritage Tax Refund Program $ 100,000 2007-2016 Iron Horse Trail 2 Sanitary Sewer $ 605,000 2011 Mike Wagner/Urban Environmental Awards $ 67,000 2007-2016 Natural Lands Acquisition $ 825,000 2007-2016 Old Westmount Trunk Sanitary Sewer $ 250,000 2013 Total Station $ 50,000 2010." f) FIN-06-055 -FINANCIAL SERVICES DEPARTMENT The Committee considered Financial Services Department report FIN-06-055, dated November 21, 2006 outlining four projects for inclusion in the Capital Forecast. Ms. P. Houston advised that in 2005 Council approved funding for a Corporate Integrated Financial System and directed a business case to be prepared. The business case is now complete and recommends an increase in funding of $763,000, for a total project cost of $3.9 M. New project funding is requested for the Gas Works Demand Side Management Program with the following priorities identified for 2007: programmable thermostat program; Waterloo Region Green Solutions (formerly REEP); advertising /promotions; rebates; and FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 11, 2006 - 153 - CITY OF KITCHENER 7. DEPARTMENTAL PROJECT REFERRALS TO THE 2007-2016 CAPITAL FORECAST f) FIN-06-055 -FINANCIAL SERVICES DEPARTMENT tCONT'D) new initiatives. The City is required to implement the Public Sector Accounting Board (PSAB) accounting standard, PS 3150 -Tangible Capital Assets, by 2009 which requires reporting of capital assets on municipal financial statements similar to private sector organizations. A business case has also been prepared which estimates a total project cost of $600,000 over years 2007-2009. Finally, replacement of current Revenue payment process software is required due to risks associated with ongoing support of the software. Mayor C. Zehr inquired as to anticipated efficiencies /savings as a result of the Corporate Integrated Financial System. Ms. R. Upfold advised that overall such systems have typically resulted in 10-20% return on investment by year 5 related to the systems ability to enable more productive and efficient business processes. She stated that it would be difficult to predict staff reductions given the number of Corporate-wide users but suggested that as the system becomes more familiar, it may prompt delayed replacement hiring as vacant positions are reviewed to determine if things can be done differently. At the request of Mayor C. Zehr, Ms. Upfold agreed to undertake discussions with the software provider to determine a means of monitoring operating savings. In regard to the Tangible Capital Assets accounting standard, staff advised that failure to meet the 2009 deadline would result in a qualified audit opinion being issued and may have impact on funding from senior governments. In particular, Ms. P. Houston noted that compliance is one of the eligibility criteria for the Federal gas tax allocation funding program, of which the City's allocation is $1.6 M per year, and escalating to $6 M per year at year 5. Mr. D. Chapman also agreed to pursue discussions with other municipalities and municipal associations to determine options to pursue implementation efficiencies. On motion by Councillor G. Lorentz - it was resolved: "That the following capital projects be included in the 2007-2016 Capital Forecast for consideration by the Finance and Corporate Services Committee as part of the 2007 budget deliberations, as outlined in Financial Services Department report FIN-06-055: • Corporate Integrated Financial System -increase in project funding request by $763,000 over 2007-2009; • Gasworks Demand Side Management -new project funding -total cost $1,041,000 over 2007 to 2011; • PS 3150 Tangible Capital Assets Implementation -new project -total cost $600,000 over 2007-2009; and, • Revenue Payment Process Software -new project -total cost $166,000 in 2007." 8. FIN-06-054- PUBLIC CONSULTATION - 2007 BUDGET The Committee considered Financial Services Department report FIN-06-054, dated December 5, 2006 regarding a process for public consultation on the 2007 budget and a schedule for budget meeting dates. Mr. D. Chapman advised that two public meetings are proposed for January 9, 2007 in the City Hall Rotunda and January 17 at the Kitchener Memorial Auditorium Subscribers Lounge; both to be held in the evening from 7-9 p.m. The proposed agenda for these meetings include: a general overview; discussion of the City's approach to strategic planning; overview of the City's finances and budget; structured discussion on budget priorities aligned with the strategic plan and community input; public discussion /question and answer time. It was also noted that staff will be attending the Kitchener Market on January 13, 2007 to distribute copies of the budget workbook and talk with citizens about the City's budget consultations. A budget brief has been prepared for distribution at the two public meetings and will also be included in the January edition of the `Your Kitchener' newsletter, as well as posted to the City's website. The public will have opportunity to provide input through a budget exercise included in the brief, with a deadline to receive feedback by January 19, 2007. Mr. Chapman then outlined the FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 11, 2006 - 154 - CITY OF KITCHENER 8. FIN-06-054- PUBLIC CONSULTATION - 2007 BUDGET tCONT'D) proposed budget meeting schedule and asked the Committee's concurrence on all matters as outlined. Mayor C. Zehr suggested that rather than an open house format, the two public meetings be convened as special Finance and Corporate Services Committee meetings to allow the public an opportunity to speak directly to the whole of Council. Councillor J. Gazzola disagreed with the proposed change in meeting format. He noted that of the 2 hour session, the public is allotted only 1 hour for open discussion and it was his opinion a formal meeting would deprive the public of their time to speak given the Committee is likely to interject with questions and comments. Mayor C. Zehr noted a meeting conflict with the January 17 date and at his request, Mr. D. Chapman agreed to consider changing the second public meeting to January 18, 2007. Mr. Chapman noted, however, that staff have had difficulty aligning dates with a suitable facility and the suggested date may make it difficult for those attending the second meeting to give written feedback by the January 19 deadline. Councillor J. Gazzola inquired if a report dealing with an implementation plan based on the Healthy Communities Plan would come forward prior to budget deliberations to allow public comment. Ms. S. Adams advised that a new Committee was recently appointed and a review is necessary to bring new members up to date and determine if the preferences of the former Committee will stand or be modified. She anticipated bringing forward an update report in March but advised a full implementation plan would not be completed in time for budget deliberations. She added that the public will receive information pertaining to the Healthy Communities Plan as represented throughout the Budget Workbook /Brief. Staff responded to further questions, providing explanation of challenges presented in maintaining the City's share of capital infrastructure and reflections to date on how best to manage the City's rapid rate of growth. Councillor J. Gazzola raised concerns that the budget documents indicate a proposed 5.29% tax rate increase. He pointed out that apro-forma budget meeting has not been held and accordingly, Council has never discussed a target tax rate increase. At his request, it was agreed that the budget documents be notated as staff documents and reference be made in the documents that clearly indicate Council has not yet discussed a target tax rate increase. At the request of Councillor J. Gazzola, it was also agreed to add a question to the budget brief questionnaire to provide opportunity for the public to put forward suggestions on how the City might increase in efficiencies and thereby decrease costs. A motion by Councillor G. Lorentz was brought forward for consideration to approve the proposed public consultation process and budget meeting dates, and to provide that the two public meetings proposed for January 9 and 17, 2007 be convened as special meetings of the Finance and Corporate Services Committee. Paragraph 3 of the motion, dealing with convening special meetings of the Finance and Corporate Services Committee, was voted on separately and Carried. The remainder of the motion was then voted on and Carried. On motion by Councillor G. Lorentz - it was resolved: "That the approach outlined in Financial Services Department report FIN-06-054 be approved as the basis for public consultation on the 2007 Budget; and, That the following budget meeting dates be confirmed and approved: Capital Budget and Forecast January 15, 2007 Water and Sewer Budgets and Rates January 29, 2007 Grants Day February 5, 2007 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 11, 2006 - 155 - CITY OF KITCHENER 8. FIN-06-054- PUBLIC CONSULTATION - 2007 BUDGET tCONT'D) Preliminary Results of Public Consultation February 5, 2007 Operating Budget February 26, 2007 December 31, 2006 Financial Report March 5, 2007 Budget Day March 19, 2007; and further, That public consultation meetings proposed for January 9 and 17, 2007, as outlined in report FIN-06-054, be convened as special meetings of the Finance and Corporate Services Committee." 9. DTS-06-173 -EXTENSION OF PURCHASE ORDER -MTE CONSULTANT INC. - KING STREET EAST I MADISON AVENUE NORTH RECONSTRUCTION The Committee considered Development and Technical Services Department report DTS-06- 173, dated November 20, 2006 concerning a request to extend a purchase order for additional engineering expenditures associated with reconstruction of King Street East and Madison Avenue North. On motion by Councillor C. Weylie - it was resolved: "That the request for an extension to MTE Consultant Inc.'s Purchase Order for additional engineering expenditures be approved, due to changes in project scope for the King Street East (Madison Avenue to Stirling Avenue) and Madison Avenue North (King Street East to Weber Street East) reconstruction in the amount of $87,560." 10. DTS-06-177 -ONWARD AVENUE -LIQUIDATED DAMAGES REPORT The Committee considered Development and Technical Services Department report DTS-06- 177, dated December 11, 2006 concerning a request for additional engineering fees related to Expression of Interest E 04-074, Onward Avenue reconstruction. On motion by Councillor G. Lorentz - it was resolved: "That the request for additional engineering fees of $11,760.74, as submitted by Stantec Consulting Ltd., be approved relative to Expression of Interest E04-074 (Consultant Services -Onward Avenue Reconstruction)." 11. APPOINTMENTS TO COMMITEES AND BOARDS Mayor C. Zehr spoke in regard to annual appointments to Committees and Boards, noting that for various reasons appointments have not yet been made to the Arts and Cultural Advisory Committee, Heritage Kitchener, Kitchener Public Library Board and Downtown Advisory Committee. He suggested that staff review the entire appointment process over the next several months and in particular, how information is gathered relative to potential applicants, to determine improvements that would make it easier for Council in making these appointments. In addition, he asked that the Terms of Reference for Compass Kitchener be reviewed to determine if the current number of persons to be appointed is sufficient to cover all sectors, and including representatives of each Ward. Ms. C. Ladd suggested that this review could be undertaken in conjunction with review of Advisory Committees as recommended in the Healthy Communities Plan. It was agreed that the requests of Mayor C. Zehr be taken as direction to staff. 12. ADJOURNMENT On motion, the meeting adjourned at 5:30 p.m. Janet Billett, AMCT Committee Administrator