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HomeMy WebLinkAboutFin & Corp Svcs - 2007-01-15 SFINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 15, 2007 CITY OF KITCHENER The Finance and Corporate Services Committee met in special session this date commencing at 10:15 a.m. Present: Councillor B. Vrbanovic -Chair Mayor C. Zehr and Councillors J. Smola, G. Lorentz, J. Gazzola, K. Galloway and C. Weylie. Staff: C. Ladd, Chief Administrative Officer P. Houston, General Manager, Financial Services & City Treasurer T. Speck, General Manager, Corporate Services R. Browning, General Manager, Development & Technical Services A. Pappert, General Manager, Community Services R. Gosse, Director of Legislated Services & City Clerk D. Chapman, Director of Financial Planning & Reporting J. Witmer, Director of Building J. Willmer, Director of Planning R. Regier, Executive Director of Economic Development K. Baulk, Director of Enterprise K. Currier, Director of Operations D. Mansell, Director of Engineering D. Patterson, Director of Human Resources L. Proulx, Director of Facilities Management R. Upfold, Director of Accounting M. Grummett, Director of Information Technology M. Hildebrand, Director of Community Programs J. McBride, Director of Transportation Planning D. Keehn, Director of Aquatics & Athletics H. Gross, Director of Project Administration & Economic Investment G. Hummel, Manager, Park Planning, Development & Operations K. Kugler, Manager, Kitchener Memorial Auditorium & Community Arenas L. Lynch, Manager of Engineering Infrastructure C. Goodeve, Committee Administrator The purpose of this special meeting was to discuss the proposed Capital Budget and 10-Year Capital Forecast 2007-2016. In this regard the Committee was in receipt of Financial Services Department report FIN-07-001 dated December 22, 2006, attached to which were the line by line listing of all projects in the Capital Forecast by Department/Division, and a list showing all of the changes to the original Forecast that are being recommended by the Administrative Review Committee. In addition, the Committee was in receipt this date of a revised Hydro Capital Investment Reserve Fund Projection, which was amended to reflect the Atria debt repayment as of the end of 2006. 1. CAPITAL BUDGET AND FORECAST 2007-2016 Ms. P. Houston introduced the 10-Year Capital Forecast (2007-2016) advising that the Forecast includes adjustments recommended by the Administrative Review Committee and that the list of adjustments is attached to the proposed Forecast. Ms. Houston reviewed the list of capital priorities as defined by the 2004 public process and the list of capital funding sources. She stated that as per the capital policy the impact to the taxpayer each year cannot be greater than the 3% rate of inflation, with increases and debt charges limited to the rate of assessment growth. Further, increases in debt charges and Capital out of Current are limited to the rate of assessment growth plus inflation and specific projects to be funded by debt must be approved by Council before the debt is issued. Ms. Houston outlined that the current rate of interest earned on investments ranges between 3 to 4.25% and the interest rate being paid on debt is approximately 4.5% over 10 years and 4.55% over 15 years. Mr. D. Chapman reviewed the Gas Capital Investment Reserve Fund Projection, outlining that this year's projection is not as conservative as previous year's. He added that staff are forecasting a higher margin for Gas Works, with projections for an increase across the entire gross margin. Mr. Chapman advised that the gross margin projections are scheduled to be considered by Council on February 26, 2007. Councillor J. Gazzola expressed concern with the proposed increase to the gross margin as in his opinion this increase may have been undertaken prematurely. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 15, 2007 - $ - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2007-2016 tCONT'D) Mr. D. Chapman then reviewed the Hydro Capital Investment Reserve Fund Projection, which now reflects the Atria debt repayment as of the end of 2006. Ms. P. Houston advised that the interest rate for this Fund has been set by the Ontario Energy Board at 6%. Mr. Chapman then agreed to report back as to the term of that rate. Mayor C. Zehr advised that with regard to the sale of Atria, there are some taxation issues that need to be resolved; however, it is anticipated that the sale will be finalized within approximately 30 - 60 days. He estimated that the City's return on this sale would be several million dollars. Councillor J. Gazzola expressed a concern regarding the projected $7.2 M in closeouts, stating that last year when he requested that the Kingsdale Community Centre be moved from the year 2011 to 2009 he was informed that his request could not be accommodated as only $1 Min closeouts were estimated for 2006. Ms. P. Houston advised that the $7.2 M in closeouts is resultant to the timeframes for several projects being changed which were not anticipated during last years budget deliberations. Mr. D. Chapman then provided an overview of the Development Charges (DC) Projections pointing out that the proposed timing and projected costs of growth related projects is forecasted to result in deficits in the DC Reserve Fund. He added that while these deficits are projected to be eliminated by the end of the 10 and 20 year planning periods for non- engineering and engineering services respectively, they will result in the need to borrow within the Reserve Fund unless projects are deferred. He stated that these deficits were anticipated at the time of completing the DC Background Study and to fund the deficit, the City would issue debt within the Reserve Fund either through an internal borrowing or a Regional debenture issue. He noted that the long-term interest rate is currently 4.5%. He added that the City has traditionally avoided incurring a deficit in the Reserve Fund because of the uncertainty apparent in the growth forecast. He outlined that if actual growth does not occur at a minimum to the rate identified in the DC Background Study, DC revenues would be insufficient to provide for the debt service requirements. As a result, the general levy for future DC revenues would be used to make up the shortfall. He noted that if this risk is considered unacceptable to Council, a deferral or reduction in the scope and/or cost of existing projects would be necessary to avoid incurring a deficit in the reserve fund. Councillor J. Gazzola raised a concern regarding the proposed borrowing as a means of off setting the forecasted deficit, stating that he would not support this proposal. He advised that this type of borrowing has caused problems for other municipalities in the past, especially when the economy is estimated to take a down turn as it is anticipated to do in the near future. He added that the danger with this type of borrowing is that when a City experiences a long- term recession with a lot of new infrastructure in the ground that was paid for with borrowed money, it is often forced to use property tax revenues to pay for those loans. He suggested that the City should consider slowing down growth to off-set the need to run a deficit. Councillor B. Vrbanovic inquired into the possible implications of the Provincial government identifying Kitchener as a significant growth area and was advised that the Places to Grow report focuses primarily on infill growth. Mr. D. Chapman stated that additionally, staff are recommending that the deadline for the development of a proposed policy on Development Charge Refund Agreements be extended by one year to align it with a review of staging of development; and that the scope of the review be expanded to include a proposed approach for scheduling works in the Development Charges Background Study and Capital Forecast as well as the appropriate use of debt within the Development Charges Reserve Fund. He noted that this approach can include a benchmarking exercise to determine what other municipalities consider to be a reasonable level of debt. Mr. J. Willmer advised that aspects of the proposed report are scheduled to be brought forward on several occasions between now and the 2008 budget process. He outlined that initially in February 2007 staff will bring forward a report examining the City's 5 frontiers of green space growth, then in late March or early April 2007 a report is anticipated examining staging and development coordination with debt charges and the final report will be brought FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 15, 2007 - 9 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2007-2016 tCONT'D) forward in early 2008. Mayor C. Zehr suggested that when staff undertakes the proposed benchmarking exercise they examine historic patterns, primarily those of the late 1980s and early 1990s to see what impact the recession had on development charges. He noted that even during that period the City experienced growth and as such, this review might provide some indication for the future seeing how the Province has targeted Kitchener as a significant growth area. Councillor B. Vrbanovic inquired into the timeframe before the City runs out of lands for new subdivisions and was advised that based on historic growth trends the City has approximately 15 - 20 years before it reaches maximum capacity for the lands already targeted for development. Mr. J. Willmer added that the City of Waterloo estimates that they might run out of land for new subdivisions within the next 10 years, which could accelerate the rate of development in Kitchener. Mr. D. Chapman then reviewed the major changes in the Capital Forecast as compared to 2006. He highlighted the Kitchener Public Library (KPL) budget Book Reserve where funding was removed from tax supported capital funding to its operating budget, resulting in no change to net levy. Further, Fire Fleet funding is not required for 2007, but has been included in 2008- 2009. Mr. Chapman stated that in order to balance the funding for the City's roads program, the Lancaster reconstruction project (Regional) has been budgeted in 2010 at a cost of $4.2 M and at present, it is anticipated that the road will be reconstructed in 2009. He noted that if this timing is maintained by the Region, staff suggests that the City enter into an agreement with the Region to provide payment in 2010 rather than compromise the City's roads program by advancing the budget for these works. Mr. D. Chapman then reviewed the potential cost escalation for the Joseph / Gaukel project, noting that staff are not in position to comment on any potential funding shortfalls pending further analysis of tenders for this project. He advised that additionally, staff are asking for the increase in costs for the Hanson Avenue Twin Pad Business Case, as approved by the Community Services Committee on January 8, 2007, to be included in the staff recommendation this date (i.e. $1.57 M) to be funded from the capital pool. Finally, Mr. Chapman outlined that the current sanitary sewer budget does not include funding for the City's share of the trenchless rehabilitation program as the COMRIF application was not approved. He noted that consequently this project will not be proceeding and its funding will be reallocated to other triple funded projects. Mr. D. Chapman then advised that due to the delayed budget approval process, timing of several capital works have been delayed; as such, staff are recommending that pre-approval be granted for the following projects: • Annual Road and Sidewalk Program • City Hall Garage Monitoring • Corporate Integrated Financial System • Environmental Remediation • Guelph Street Reconstruction and Storm Outlet • New Community Arena /Twin Pads • PS 3150 Tangible Capital Assets • Stonegate Watercourse Reconstruction Mr. D. Chapman then pointed out that the Corporate Integrated Financial System, which is being recommended to go to tender, has been added this date to the list of projects requiring pre-approval as originally outlined in the staff report FIN-07-001. He noted that the savings in the tendering approach for the Annual Road and Sidewalk Program may be impacted by the new pricing system for asphalt. Councillor J. Gazzola expressed concern with granting pre-approval, as Council has yet to receive enough information to justify giving final approval to these projects and was advised that granting pre-approval does not represent a final decision for a majority of these projects. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 15, 2007 - 10 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2007-2016 tCONT'D) Further, most of the projects listed above require an RFP (Request for Proposal) to be brought forward for Council's consideration and final approval would then be granted at that time. The Committee then proceeded with a Department by Department review of the Capital Forecast. GENERAL EXPENSES Councillor J. Gazzola questioned proceeding with the implementation of Fleet ISO 14001 Certification as no detailed information has been provided thus far to demonstrate the merit of this proposal. Ms. P. Houston noted that a full report is intended to come forward for consideration prior to any of the funding being expended. Councillor B. Vrbanovic expressed support for Fleet ISO 14001 Certification and noted that this initiative was an aspect of the 2006 Air Quality in Kitchener 5 Best Bets, which was previously endorsed by Council. The following motion was Carried on a recorded vote, with Mayor C. Zehr and Councillors G. Lorentz, J. Smola, B. Vrbanovic, K. Galloway and C. Weylie voting in favour and Councillor J. Gazzola voting in opposition. On motion by Mayor C. Zehr - it was resolved: "That subject to final budget deliberations on April 16, 2007, the project Fleet ISO 14001 Certification (#070101045) be included in the 2007-2016 Capital Forecast." CENTRE IN THE SQUARE Representatives of the Centre in the Square came forward and advised that their facility's sound system is in need of replacement, which has an estimated cost of $500,000. Additionally, it is anticipated that the cooling system, exterior lights and stage lights will also require replacement in the near future. It was noted that eventually upgrades to the property's physical plan will be pursued. In response to questions, the delegation advised that while discounts for Kitchener ratepayers has been contemplated in the past, they were unsure as to how such a program would be implemented. Mayor C. Zehr advised that he had recently met with representatives from the Kitchener- Waterloo Art Gallery regarding their upcoming grant request and wanted it noted that if Council decides to approve the Art Gallery's grant request, funding may need to come from the Capital General Provision Fund. He stated that previous Kitchener-Waterloo Art Gallery grants were funded from the Capital General Provision Fund and in continuing to do so the Art Gallery would be in the same category as the Centre in the Square. KITCHENER PUBLIC LIBRARY With respect to the Radio Frequency Technology (#090102003), Ms. S. Lewis, CEO - Kitchener Public Library advised that this item will allow for the tracking of each item in the library's collection which in turn will allow the library to manage staffing costs and provide better customer service. Mayor C. Zehr suggested that this type of technology investment might be the type of initiative that the Atria proceeds could be used toward in the future. Councillor J. Gazzola expressed a concern regarding KPL's pursuit of a Capital Campaign and was advised that the requested funding would be used to hire an additional staff person with major fundraising experience who would be responsible for laying the groundwork for a future Capital Campaign. Ms. S. Lewis noted that KPL is not proposing to undertake a Capital Campaign at this time. The following motion was Carried on a recorded vote, with Mayor C. Zehr and Councillors G. Lorentz, J. Smola, B. Vrbanovic, K. Galloway and C. Weylie voting in favour and Councillor J. Gazzola voting in opposition. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 15.2007 - 11 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2007-2016 tCONT'D) On motion by Mayor C. Zehr - it was resolved: "That subject to final budget deliberation on April 16, 2007, Central Library Capital Campaign (#090102022) be included in the 2007-2016 Capital Forecast." CHIEF ADMINISTRATOR'S OFFICE Mr. D. Paterson advised that the Permit System (#150401001) is required to ensure City staff possesses 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. He stated 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. The Committee inquired into the specific requirements being sought by the Province and the possibility of this item being funded out of the Equipment Reserve Fund. Ms. C. Ladd suggested, and it was agreed, that consideration of the Permit System (#150401001) be deferred to allow time for staff to provide additional information prior to final budget deliberation on April 16, 2007. Mr. R. Regier advised that it is his understanding that the sizable expenditure forecasted for the Downtown Incentives Funding (#700101022) in 2012 relates to the Centre Block and he agreed to investigate this matter further and report back to the Committee at a later date. FINANCIAL SERVICES DEPARTMENT Mr. D. Chapman advised that the City is required to implement the Public Sector Accounting Board (PSAB) accounting standard, PS 3150 -Tangible Capital Assets (#300301001), by 2009 which requires reporting of capital assets on municipal financial statements similar to private sector organizations. He noted that the benefit in undertaking this inventory is that it should provide the City with a greater understanding of what is required to maintain these assets. The meeting then recessed at 12:45 p.m. and re-convened at 1:27 p.m. with all members present. CORPORATE SERVICES DEPARTMENT Ms. C. Ladd advised that the proposed Consolidated Maintenance Facility has yet to receive final approval, adding that a consultant has been hired to undertake a peer review of the Business Case and it is anticipated that those results will be brought forward in February 2007. She noted that as additional information may still be required, she is unsure if final approval for the Consolidated Maintenance Facility could be granted prior to April 16, 2007 Budget Day. Councillor J. Gazzola requested that staff provide an estimate by Budget Day as to the amount of money spent to date on the Consolidated Maintenance Facility. Mayor C. Zehr suggested that the word "New" could be removed from the Market-MICE-DT (#500201013) item. In regards to the K-W Judo & Gymnastics Club (#500201035), Mr. L. Proulx advised that the City of Waterloo has yet to provide any funding. It was noted that the City of Waterloo has been selective as to what they are willing to provide funding towards as they feel that any repairs to the building structure should be covered solely by the City of Kitchener as the building is located within its borders. Mayor C. Zehr requested a copy of the K-W Judo & Gymnastics Club Agreement as he intends to add that item to the next Twin City meeting agenda. Councillor J. Gazzola requested that the Committee be provided with the current balance of the Roof -General Provision (#500201011) and City Hall Renovations /General Provision (#500201012) accounts by April 16, 2007 Budget Day. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 15, 2007 - 12 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2007-2016 tCONT'D) COMMUNITY SERVICES DEPARTMENT Ms. A. Pappert advised that the funding earmarked for the Culture Capitals of Canada application is contingent upon winning the 2009 designation. She noted that if the City's application is rejected then staff would bring forward a report requesting direction from Council as to how staff should proceed. She then circulated a chart to the Committee outlining the projects being pursued under CulturePlan II Implementation (#620101007), noting that by focusing on undertaking the outlined projects over the next 3 years the City should be able to achieve the recommendations set-out in the Plan. Ms. K. Kugler advised that the Centennial Stadium Improvements (#620202033) concern the development of a short-term report, which is expected to come forward in March 2007, examining whether this facility continues to be a safe and healthy place for the public to come. The next component is a long-term report, anticipated to be brought forward in October 2007, which sets-out along-term strategy for this facility. Mr. D. Chapman provided clarification of the dollar amounts associated with the proposed increase in the Hanson Avenue Twin Pad Arena project funding by $1.75 M. On motion by Mayor C. Zehr, it was agreed to amend the staff recommendation contained in report FIN-06-001 to provide that the project budget for the new Community Arenas /Twin Pads be increased by $3.6 M in 2007 with $1.75 M to be funded from a Sport Partner capital fundraising campaign; $280,000. from Development Charges; and $1.57 M from Capital out of Current. Mayor C. Zehr advised that the Cities of Waterloo and Kitchener previously held 150th anniversaries of becoming Towns and clarified the 100th Anniversary (#620203003) relates to Kitchener's anniversary of becoming a City. Mr. K. Baulk advised that at present there is no timeframe for the Cemeteries to become self- sufficient. He outlined that the Williamsburg Cemetery Phase II relates to the planning phase for future development of the remaining 25 acres of the 50 acres owned by the City. He pointed out that in accordance with direction in the Cemeteries Business Plan staff are to investigate options for cemetery expansion and/or development of new facilities and a report is expected to be brought forward in late 2007. A motion by Councillor J. Gazzola was brought forward to provide that the Kingsdale Community Centre (KCC) be moved forward from 2011 to 2009. Councillor J. Gazzola commented that a number of other community centre projects have proceeded ahead of the KCC and this area is no less deserving. He suggested that it be left to staff to determine how other projects will be moved within the budget to allow this project to proceed in 2009. Ms. A. Pappert spoke to pre-planning for 4 Community Centre (CC) projects of which a needs assessment report for the Kingsdale CC and Mill-Courtland CC is scheduled to come forward in April-May 2007. She added that the Bridgeport CC expansion is anticipated to come forward in June 2007; however, timing for the Doon CC expansion is unknown as it is in early stages of development. Mayor C. Zehr agreed in principle to moving KCC ahead, but expressed concern if 2009 is the right place. He then asked if the report will address issues related to design timelines, sighting of building in relation to others on the site, impact to arenas and sportsfields. Ms. A. Pappert advised that the intent of the report is to address how the CC will dovetail with the decommissioning of other arenas and sports contracts. She noted that the challenge is with size and budget, stating that staff will need more time to complete the report. Councillor G. Lorentz raised concerns with operational aspects of the Community Centre and questioned whether the local Neighbourhood Association would have a sufficient volunteer base to run programs or if City staff will have to intercede. Councillor B. Vrbanovic stated that the challenge is determining what comes first, the building or the volunteer network. He added FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 15, 2007 - 13 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2007-2016 tCONT'D) that a volunteer network takes time to develop and the City needs to be sure the Association is ready to take on this responsibility. Mayor C. Zehr stated that he could support the motion on the basis that there will be a fuller discussion when the business case / needs assessment report comes forward for consideration and an indication given of what other projects will have to be moved to accommodate moving the KCC to 2009. Councillor B. Vrbanovic suggested that the motion be subject to staff coming back with information pertaining to the issues raised. Councillor J. Gazzola did not accept the proposed amendment and asked that the motion be voted on as is by a recorded vote. The following motion was Carried Unanimously on a recorded vote. On motion by Councillor J. Gazzola - it was resolved: "That subject to final budget deliberations on April 16, 2007, the Capital Forecast 2007 - 2016 be amended by moving the project Kingsdale Community Centre (#620304007) from 2011 to 2009." Councillor G. Lorentz commented that the Mill Courtland CC was originally constructed on top of a scrap-yard and as a result over the years metal shards have come to the surface in the rear yard and have made that area almost unusable. He stated that the Mill Courtland Community Centre Addition (#620304006) is listed in the Capital Forecast for construction in 2012, and asked that staff be directed to report back to Council prior to April 16, 2007 on a new timeline for accelerating this construction. The following motion was Carried Unanimously on a recorded vote. On motion by Councillor G. Lorentz - it was resolved: "That staff be directed to examine the Mill Courtland Community Centre site and report prior to final budget deliberations on April 16, 2007 as to how project Mill Courtland Community Centre Addition (#620304006) can be moved forward in the Capital Forecast and how the issues related to the property's rear yard may be resolved." Regarding the New Indoor Pool (#600901001), Ms. P. Houston advised that funding for this project is based on the projected development and growth of the southwest area. Mr. M. Hildebrand advised that as a potential means of alleviating some of the demand for recreational services in this area, a report is anticipated to be presented in March 2007 regarding the rental of space in southwest Kitchener. In reference to the installation of defibrillators at community centres, Councillor B. Vrbanovic noted that staff are currently investigating moving this item to the Operating Budget. He suggested that a report be provided from the Safe and Healthy Advisory Committee outlining how to move forward with this matter. Councillor B. Vrbanovic left the meeting and Councillor J. Smola assumed the Chair. Ms. D. Keehn advised that the City currently leases the license for the Class Registration System (#620702001). She noted that originally the funding for this item was expressed in one lump sum of $56,000.; however, it has now been re-budgeted and spread out across the 10- year Forecast. Mr. K. Currier advised that the replacement and re-installation of Speakers' Corners (#620908001) is dependant upon Engineering's street improvement timeframe for the re- construction of the existing retaining wall. Mayor C. Zehr requested that additional information be provided as to the exact nature of this project prior to Budget Day. He noted that he would more likely support this project if greater emphasis is placed on greening the area. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 15, 2007 - 14 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2007-2016 tCONT'D) Councillor B. Vrbanovic entered the meeting and assumed the Chair. Mayor C. Zehr advised that in terms of major development, there needs to be significant funding that is allocated toward greening the City that is tied into an overall environmental strategy. He stated that all of the global issues related to things like climate change can and must be dealt with at the local level. He added that in his opinion the City has been too timid in regard to addressing environmental issues. He noted that now is the time to take apro-active approach to addressing environmental issues and allot some of the unallocated funds in EDIF towards environmental initiatives. Mayor Zehr commented that hopefully an Environmental Fund will be the catalyst for an increase in environmental awareness /initiatives across the City. He then advised that after the conclusion of all of the items listed on the agenda he would bring forward a motion proposing the development of an Environmental Fund. Councillor J. Gazzola spoke in support of Mayor Zehr's proposal, noting that he would like to see the Environmental Fund used toward the preservation of the Hidden Valley area. Councillor B. Vrbanovic also expressed support for the proposal and advised that the City's Strategic Plan for the Environment is currently being updated, suggesting that an opportunity may exist to incorporate the proposed fund into that process. He added that the money the City receives from the sale of Atria could potentially be used to set up some sort of endowment for the Environmental Fund to leverage monies from other levels of government. Mr. G. Hummel outlined that given budget implications it was determined that funding for the Natural Area Stewardship /Conservation Fund (#620910004) would not commence until 2009. He stated that based on a cost benefit analysis it was determined that purchasing plant material is significantly less expensive than growing it. Mr. K. Currier advised that concerning Skateboard Parks (#620912010) there is an overwhelming desire expressed by the youth of this City for the installation of additional skateboard parks. Ms. A. Pappert advised that on October 23, 2006 staff presented a General Park Overview report, which estimated that approximately $700,000. would be needed to catch-up on the backlog of undeveloped parks. She added that to address this staff proposed undertaking the development of a Park and Open Space Master Plan (#620912011). At that time Council also requested that the Master Plan include measures to rehabilitate the parks located in the inner City. Councillor J. Gazzola expressed concerns with the allocation of these funds and inquired into the possibility of postponing this item for inclusion in the Capital Forecast until the results of the Master Plan are presented. Ms. C. Ladd advised that last fall staff advised that it could take between 15 to 20 years to address the current park backlog and Council indicated that it was not willing to wait that long to address this problem. She noted that the Master Plan will not only be addressing the backlog issue, but will also be examining measures to prevent this from happening in the future. Councillor K. Galloway inquired as to why only $523,000. is allocated toward the McLennan Park Site Development (#601303016) in 2007. Mr. G. Hummel advised that an implementation strategy and detailed costing developed throughout 2006 determined that combining the 2006 and 2007 Capital Budget was an appropriate first phase to the development of the McLennan Park Site and that it would be more practical and cost effective to develop the remaining works in three additional phases. Councillor Galloway stated that while she can appreciate that approach she would prefer to see the project moved forward in the Capital Forecast. A motion by Councillor K. Galloway was brought forward directing staff to report back prior to April 16, 2007 Budget Day as to the possibility of accelerating the timeframe for the McLennan Park Site Development (#601303016). Councillor J. Gazzola spoke in opposition to the motion as this project was initially scheduled to take place over 20 years and staff has already consolidated that timeframe to 10 years. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 15, 2007 - 15 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2007-2016 tCONT'D) On motion by Councillor K. Galloway - it was resolved: "That staff be directed to report prior to final budget deliberations on April 16, 2007 as to how the McLennan Park Site Development (#601303016) can be moved forward in the Capital Forecast." DEVELOPMENT AND TECHNICAL SERVICES DEPARTMENT Mr. R. Browning advised that the Natural Lands Acquisition (#700201013), Mike Wagner/Urban/Environmental Awards (#700201014), and Adaptive Re-use Grant (#700201015) are now projected over 2 years and as such were moved from the Operating Budget to the Capital Forecast. He noted that an Automated Attendance Management System (#700607002) is proposed to more effectively manage associated issues with staffing and could be used Corporate-wide to enhance employee contact capabilities when invoking emergency procedures. Councillor J. Gazzola requested that the Automated Attendance Management System (#700607002) be voted on separately as in his opinion this item should be included as a line item without specified funding. On motion by Mayor C. Zehr - it was resolved: "That subject to final budget deliberations on April 16, 2007, the Automated Attendance Management System (#700607002), be included in the 2007-2016 Capital Forecast." In regard to the items listed under `City's Share of Regional Roads', Mr. L. Lynch advised that while these projects were originally scheduled for 2007, all of these projects have been deferred to 2008 due to rescheduling by the Region of Waterloo. Councillor G. Lorentz suggested that Mayor Zehr raise this issue with the Region, as in his opinion it is unreasonable for them to push off a whole years worth of roads projects. Mr. D. Mansell advised that the increased costs for Stonegate Drive Slope Stabilization (#800404029) are resultant to undertaking this project during the winter months. In addition, when this project went to tender a substantial amount of additional erosion was discovered as compared to initial estimates, which has significantly increased the amount of required restoration. Mr. J. McBride advised that as a result of an Environmental Committee recommendation $20,000. has been allocated toward Bike Racks (#701206009), which would provide for the installation of approximately 60 bike racks in the Downtown core. Concerning the project Charles and Water Garage (#701206004), Mr. H. Gross advised that this item has been included as a place holder and that staff anticipate bringing forward a report on this matter by the end of February 2007. DELAYED BUDGET ITEMS /PRE-APPROVALS A motion by Mayor C. Zehr was brought forward to approve the staff recommendation contained in report FIN-07-001, as previously amended to provide the increased amount for the Community Arena /Twin Pads project. At the request of Mr. D. Chapman, it was agreed to amend the motion by deleting the 1St paragraph dealing with approval in principle of the 2007-2016 Capital Forecast. Councillor B. Vrbanovic noted that any recommendation arising from the Committee would be forwarded to the regular Council meeting scheduled for later this date. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 15, 2007 - 16 - CITY OF KITCHENER 1. CAPITAL BUDGET AND FORECAST 2007-2016 tCONT'D) On motion by Mayor C. Zehr - it was resolved: "That the budget for the new Community Arena /Twin Pads be increased by $3.6 M in 2007 to be funded as follows: $1.75 M from a Sport Partner capital campaign, $280,000. from Development Charges and $1.57 M from Capital out of Current; and, That the 2007 budgets for the following time-sensitive projects be approved in order to expedite the works in 2007: • Annual Road and Sidewalk Program • City Hall Garage Monitoring • Corporate Integrated Financial System • Environmental Remediation • Guelph Street Reconstruction and Storm Outlet • New Community Arena /Twin Pads • PS 3150 Tangible Capital Assets • Stonegate Watercourse Reconstruction; and further, That the deadline for the development of a proposed policy on Development Charge Refund Agreements be extended by one year to align it with a review of staging of development and that the scope of the review be increased to include the approach for scheduling works in the Development Charges Background Study and Capital Forecast as well as the appropriate use of debt within the Development Charges Reserve Fund." NEW BUSINESS A motion by Mayor C. Zehr, to direct staff to develop a plan for the establishment and criteria of an Environmental Fund with an initial base amount of $3 M to $5 M was brought forward for consideration. At the request of Councillor B. Vrbanovic, it was agreed to include a provision in the motion that the proposed fund be developed in consultation with the City's Environmental Committee. In response to questions regarding the timing for the development of the proposed Environmental Fund, Mayor C. Zehr advised that first it is necessary to determine whether such a fund can be established, noting that he would anticipate a report prior to April 16, 2007 Budget Day. On motion by Mayor C. Zehr - it was resolved: "That staff be directed to examine the feasibility of establishing an Environmental Fund with a base capital between $3 M and $5 M with a report to be brought forward prior to final budget deliberations on April 16, 2007." 2. ADJOURNMENT On motion, the meeting adjourned at 4:46 p.m. C. Goodeve Committee Administrator