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HomeMy WebLinkAboutFin & Corp Svcs - 2007-01-29FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 29, 2007 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 2:15 p.m. Present: Councillor B. Vrbanovic, Chair Mayor C. Zehr and Councillors G. Lorentz, J. Gazzola, K. Galloway, J. Smola 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 D. Chapman, Director, Financial Planning & Reporting S. Adams, Director of Community & Corporate Planning R. Gosse, Director of Legislated Services & City Clerk S. Turner, Director of By-law Enforcement L. MacDonald, Director of Legal Services & City Solicitor D. Mansell, Director of Engineering L. Proulx, Director of Facilities Management D. Paterson, Director of Human Resources D. Quinn, Director of Utilities K. Currier, Director of Operations F. McCrea, Assistant City Solicitor P. Harris, Manager of Licensing I. Magid, Supervisor, Benefit Development S. Ogilvie, Supervisor, Corporate Health & Safety J. Billett, Committee Administrator 1. CRPS-07-004 -REQUEST FOR EXEMPTION TO c.40$ (ANIMALS) OF THE MUNICIPAL CODE - JOANNE BARCLAY - 21 HOLBORN DRIVE The Committee considered Corporate Services Department report CRPS-07-004, dated January 24, 2007 regarding a request from Mrs. Joanne Barclay, 21 Holborn Drive, to be exempt from the provisions of c.408 (Animals) of the Municipal Code prohibiting her from keeping more than 6 rabbits in her dwelling. Mrs. Joanne Barclay advised that she is a certified veterinary assistant and has been a rabbit rescuer for the past 15 years. She stated that she was unaware of the by-law prohibiting the keeping of more than 6 rabbits, noting that she is currently keeping 20 rabbits in her dwelling. She advised that the superintendent had knowledge of the rabbits at the time she was rented her unit and she gave assurances that the animals are well cared for. She pointed out that the issue with her rabbits arose as a result of a cruelty to animals complaint received by the Kitchener-Waterloo and North Waterloo Humane Society but on investigation, the Humane Society found there was insufficient evidence to substantiate the claim. Mrs. Barclay stated her intentions to obtain not-for-profit status to allow her to operate an adoption /rehabilitation facility for rabbits. She added that she had no concerns with moving from her existing residence but would need sufficient time to find an alternate location. In response to questions, Mrs. Barclay advised that she has been operating her animal rescue at her current location since October 2005 and to her knowledge there has been no complaint by the landlord but rather by a neighbouring tenant. Mr. Shayne Turner advised that staff contacted the property management company who confirmed that concerns continue to be received from other tenants regarding issues of sanitation and odours and the management company does not support the proposed exemption. Mr. Turner added that there is currently no provision in c.408 (Animals) to allow an exemption to be granted by Council. Mayor C. Zehr commented that while he had no doubt Mrs. Barclay is conscientious and a responsible animal owner, he could not support the keeping of that many rabbits in a residential setting. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 29, 2007 - 20 - CITY OF KITCHENER 1. CRPS-07-004 -REQUEST FOR EXEMPTION TO c.40$ (ANIMALS) OF THE MUNICIPAL CODE - JOANNE BARCLAY - 21 HOLBORN DRIVE tCONT'D) Councillor B. Vrbanovic suggested that if the request was denied that consideration be given to delaying enforcement for a period of at least 30 days to allow Mrs. Barclay an opportunity to find an alternate location. At the request of Councillor G. Lorentz, it was agreed that the matter of enforcement be left with staff and staff be directed to work with Mrs. Barclay to remove the excess number of rabbits from her dwelling within a reasonable period of time. Councillor B. Vrbanovic then left the meeting and Councillor J. Smola assumed the Chair. On motion by Mayor C. Zehr - it was resolved: "That the request of Mrs. Jo-Anne Barclay for an exemption from the provisions of c.408 (Animals) of the Municipal Code prohibiting her from keeping more than six (6) rabbits in her dwelling at 21 Holborn Drive, be denied; and further, That By-law Enforcement staff be directed to work with Mrs. Barclay to remove rabbits in excess of the permitted number from her dwelling within a reasonable period of time." 2. CRPS-07-003 -REQUEST FOR EXEMPTION TO c.450 (NOISE) OF THE MUNICIPAL CODE -ONTARIO REALTY CORPORATION - KITCHENER COURT HOUSE - 200 FREDERICK STREET The Committee considered Corporate Services Department report CRPS-07-003, dated January 24, 2007 concerning a request from the Ontario Realty Corporation (ORC) for an exemption to c.450 (Noise) of the Municipal Code to permit construction noise between the hours of 7:00 p.m. to 11:00 p.m., Monday to Friday, for a period of approximately 4 months to facilitate construction of an addition to the Provincial Courthouse at 200 Frederick Street. Mr. Neil Henry, area resident, spoke in opposition to the proposed exemption on behalf of Ellen Street East residents, citing reasons of adverse impact to their family's welfare and safety, as well as damage to property and disruption of quiet enjoyment of their neighbourhood. He provided examples of incidents demonstrating that the Courthouse has not been a particularly good neighbour and advised that at a public meeting held in October 2006, the ORC was clearly told that the neighbourhood would not support any request for an exemption to the Noise By-law for this construction project. Mr. Henry commented that they have no issue with the concept of the proposed addition to the Courthouse but asked that the construction work take place during the time-line allowed by By-law. He further noted that the ORC has not indicated when the construction is to begin nor given any assurances that the project will be finally completed at the end of the 4 month period. Messrs. Bill Moore and Bruce Jackson, ORC, responded to questions advising that their client is the Ontario Ministry of the Attorney General Mayor C. Zehr referenced review of a Provincial proposal for a consolidated Court facility, questioning why this project was being undertaken at this time. The delegation indicated that the review is still in very early stages and is likely to be a number of years before being addressed; while the purpose of this project is to address an immediate need for achild-friendly courtroom. Mr. Moore noted that the exemption is being requested prior to tendering for the project so that timing perimeters can be included in the tendered documents; and in estimating the length of time at 4 months, contingencies have been built in with a goal to achieve an earlier completion. Mr. Jackson advised that additional capital projects for the Courthouse are unknown at this time pending annual review of their capital repair program. He added that if granted the exemption, construction is anticipated to start by mid-May and continue through the summer months; and conversely if not approved, further discussions would have to take place with their client regarding implications to timing and cost of the project. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 29, 2007 - 21 - CITY OF KITCHENER 2. CRPS-07-003 -REQUEST FOR EXEMPTION TO c.450 (NOISE) OF THE MUNICIPAL CODE -ONTARIO REALTY CORPORATION - KITCHENER COURT HOUSE - 200 FREDERICK STREET tCONT'D) Councillor G. Lorentz raised concerns in regard to violations of past exemptions and questioned how enforcement would be handled. The delegation indicated that through the tendering process the successful contractor would be made aware of the time restrictions they would be expected to enforce and the repercussions of not complying. Councillor Lorentz commented that given the past practice of the ORC in handling this project, particularly as it relates to area residents and without evidence of tangible penalties given no-one has been held accountable for past violations, he could not support the requested exemption. On motion by Councillor G. Lorentz - it was resolved: "That the request of the Ontario Realty Corporation for an exemption to the provisions of c.450 (Noise) of the Municipal Code to permit construction noise between the hours of 7 p.m. and 11 p.m., Monday to Friday, for approximately 4 months relative to construction of an addition to the Provincial Court House at 200 Frederick Street, be denied." 3. CRPS-07-007 -PUBLIC MEETING - RELOCATION OF CLASS `D' ADULT ENTERTAINMENT PARLOUR The Committee considered Corporate Services Department report CRPS-07-007, dated January 11, 2007 concerning a request from Mr. Randy Zivkovic, owner of the Taj Mahal Adult Entertainment Parlour, to move his Class `D' Adult Entertainment Parlour from 4-808 Courtland Avenue East to 37 Bruce Street. Mr. Morris Manning, Solicitor for Mr. Zivkovic, spoke on behalf of his client, circulating this date photographs /maps of the proposed location, together with a copy of a previous staff report (CRPS-05-018) concerning this matter. Mr. Manning drew attention to the following paragraph in the previous report, which states in part: "The particular location of this building, beside the on-ramp to the expressway and abutting a commercial parking area, may offer enough distance and separation from the other properties in the area to make it a suitable location. In addition, the by-law restricts signage of the business to the operators' name on the licence, the name of the business, the licence number and, the address /telephone number of the business. Under the Municipal Act, Council could, as a condition of the licence, require suitable screening of the property in the form of fencing and / or landscaping subject to any fence /site triangle restrictions contained in the Municipal Code." Mr. Manning then referred to the criteria to which a new location must conform, and in particular clause (h), which requires a 400 m distance separation from any M4 Zone or any lands on which any other adult entertainment parlour is located, other than a licenced Class `A' adult entertainment parlour. He stated that clause (h) was added to the by-law after the time his client originally applied to move his business. He acknowledged that it was technically true that the proposed location does not meet the criteria of clause (h) but expressed the opinion the by-law was changed to ensure that these businesses are not seen from the front of the building from any residential dwellings or schools; and suggested this location meets those objectives. He added that when originally considered a number of residents, as well as a number of employees of Cowan Insurance Inc., the abutting commercial property, objected to the proposal. He noted that to his knowledge no one was objecting at this time. Mr. Manning added that his client was willing to comply with any conditions the Committee may wish to impose. Mayor C. Zehr advised that the Committee received a letter this date dated January 23, 2007 from Cowan Insurance Inc. objecting to the proposal and it was noted that one other delegation was in attendance this date to speak to this matter. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 29, 2007 - 22 - CITY OF KITCHENER 3. CRPS-07-007 -PUBLIC MEETING - RELOCATION OF CLASS `D' ADULT ENTERTAINMENT PARLOUR tCONT'D) Mayor C. Zehr inquired if any changes have been made to the original application and any other responses received as a result of the current application. Ms. Pat Harris advised that the application remains the same and in addition to the letter from Cowan Insurance, she had received several phone calls from area residents objecting to the proposal. Councillor J. Smola added that he had also been contacted by area residents / businesses objecting to the proposal. In reference to the paragraph noted from the previous report, Mayor Zehr inquired as to what context the word "may" in the first sentence was used and Mr. R. Gosse advised that it was not used in a legal context but rather in the context of providing possibilities for consideration. Ms. Katrina Goraj, Bruce Street resident, spoke in opposition to the proposal, advising that she could see the building from her home and while not located beside a residential property, the proposed location is directly across from another residential dwelling. She raised concerns that the existence of this type of business in the neighbourhood would attract undesirable individuals, creating an unsafe environment particularly for children; and in addition, may have an adverse impact on residential property values. Mr. Manning advised that his client had not received a copy of the letter from Cowan Insurance. He added that he was surprised by the letter as it was his understanding no employees currently occupy the Cowan building as this business was moving. In regard to the resident concerns expressed this date, he suggested that it was not within the Committee's purview to consider Mr. Zivkovic's application on a morality basis. Mr. Manning indicated that he would like the matter deferred to allow him time to review letters of objection. Mr. R. Gosse pointed out that the only written objection received by staff was the one page letter from Cowan Insurance and suggested that Mr. Manning be given a moment to review the letter rather than deferring the matter. A copy of the letter was provided to Mr. Manning who undertook to review it with his client. Mayor C. Zehr suggested that whether or not employees still occupy the Cowan building was a mute point in that, Cowan Insurance as an adjacent property owner has the right to make comment on the application. Mr. Manning disagreed, suggesting it brings into question the motivation behind the letter, noting his previous allegations regarding the potential conflict of interest that Cowan Insurance and / or the City may have if the company is the insurer for the municipality. A motion by Councillor J. Gazzola was brought forward for consideration to deny the request to relocate Mr. Zivkovic's Class `D' adult entertainment parlour from 4-808 Courtland Avenue East to 37 Bruce Street, as it does not meet the locational criteria. Mr. R. Gosse pointed out that Mr. Zivkovic indicated in his letter of application that his lease for 4-808 Courtland Avenue East expired as of December 31, 2006. Mr. Gosse referred to section 502.5.8 of the Municipal Code which states that the total number of Class `D' adult entertainment parlour locations shall be reduced as operators' licences expire or are otherwise surrendered or revoked until there are 2 such locations in the City. He advised that currently the City has 3 such locations which includes 4-808 Courtland Avenue East. Mr. Gosse suggested that in light of Mr. Zivkovic's lease expiring such that an adult entertainment parlour is no longer operating at 4-808 Courtland Avenue East, the Committee may wish to consider amending c.502 (Adult Entertainment Parlour) of the Municipal Code to remove this address as a permitted location in keeping with the objective of section 502.5.8. The following motion was Carried Unanimously by all members present. It is noted that Councillor B. Vrbanovic was absent at the time of voting. On motion by Councillor J. Gazzola - it was resolved: FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 29, 2007 - 23 - CITY OF KITCHENER 3. CRPS-07-007 -PUBLIC MEETING - RELOCATION OF CLASS `D' ADULT ENTERTAINMENT PARLOUR tCONT'D) "That the request of Mr. Randy Zivkovic, owner of the Taj Mahal Adult Entertainment Parlour, to move his Class D Adult Entertainment Parlour from 4-808 Courtland Avenue East to 37 Bruce Street, be denied as it does not meet the locational criteria set out in Chapter 502 of the Municipal Code; and further, That the provisions of c.502 (Adult Entertainment Parlour) of the Municipal Code be amended by by-law to remove 4-808 Courtland Avenue East as a Class D Adult Entertainment Parlour location as this type of business is no longer operating at that location." 4. CRPS-07-010 - OKTOBERFEST -DECLARATION OF CIVIC CELEBRATION AND SPECIAL OCCASION PERMIT The Committee considered Corporate Services Department report CRPS-07-010, dated January 15, 2007 concerning matters related to the 2007 K-W Oktoberfest celebrations. On motion by Councillor G. Lorentz - it was resolved: "That K-W Oktoberfest to be held October 5-13, 2007 be proclaimed a period of Civic Celebration; and, That the City of Kitchener has no objection to a Special Occasion Permit being issued for the Oktoberfest Festhallen to be operated by Kitchener-Waterloo Oktoberfest Inc. during the period of Civic Celebration; and further, That this event be declared a Community Festival as it is a celebration of Kitchener's German heritage." 5. CRPS-07-011 -REQUEST TO HOLD BINGOS ON AN ON-GOING BASIS - ST. JACOBS LIONS CLUB The Committee considered Corporate Services Department report CRPS-07-011, dated January 16, 2007 concerning a request by the St. Jacobs Lions Club to hold bingos in the City of Kitchener. On motion by Councillor G. Lorentz - it was resolved: "That the request of the St. Jacobs Lions Club to hold bingos in the City of Kitchener be approved, providing that the funds being raised are used for charitable purposes as mandated in the Provincial Regulations." 6. CRPS-07-012 -LIQUOR LICENCE REVIEW APPLICATION - CAFE EUROPE - 91 QUEEN STREET SOUTH The Committee considered Corporate Services Department report CRPS-07-012, dated January 16, 2007 concerning a liquor licence application for Cafe Europe, 91 Queen Street South. On motion by Councillor G. Lorentz - it was resolved: "That subject to the applicant entering into an agreement with the City of Kitchener 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 Cafe Europe located at 91 Queen Street South, applied for by Svetlana Laketa (herein referred to as the "Applicant"); and further, FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 29, 2007 - 24 - CITY OF KITCHENER 6. CRPS-07-012 -LIQUOR LICENCE REVIEW APPLICATION - CAFE EUROPE - 91 QUEEN STREET SOUTH tCONT'D) That the Mayor and Clerk be authorized to 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 & 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 35% monthly ratio of alcohol sales to gross refreshment sales (including food and other sundries) (in other words, alcohol sales will be limited to 35% 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)." 7. CRPS-07-006 -REQUEST FOR EXEMPTION TO c.450 (NOISE) OF THE MUNICIPAL CODE - VIEN QUANG BUDDHIST ASSOCIATION OF KITCHENER-WATERLOO - 23 CAMPBELL AVENUE The Committee considered Corporate Services Department report CRPS-07-006, dated January 24, 2007 concerning a request for a noise exemption by Vien Quang Buddhist Association of Kitchener-Waterloo. 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 Vien Quang Buddhist Association of Kitchener-Waterloo at 23 Campbell Avenue, on February 17, 2007 between the hours of 10 PM to 11 PM, as part of their celebration of the Chinese New Year." 8. CRPS-07-00$ - 2006 MUNICIPAL ELECTION REVIEW The Committee considered Corporate Services Department report CRPS-07-006, dated January 5, 2007 in which a review of the 2006 Municipal election is provided. Mr. R. Gosse responded to questions, advising that the Association of Municipal Managers, Clerks and Treasurers (AMCTO) is currently conducting a municipal survey related to the 2006 election. Staff are awaiting the results of that survey to determine if the problems experienced in regard to the voters' lists as prepared by the Municipal Property Assessment Corporation (MPAC) exists on a large scale across the Province. Staff intend to follow up with AMCTO to press the issue of the voters' list which may involve lobbying for legislative changes to give MPAC more flexibility in obtaining information necessary to compile the list. The percentage of turn-out for the advance vote was noted and Mr. Gosse pointed out that in past years Ward 1 historically had the highest turn-out as all advanced voting was conducted at City Hall, which is central to the Ward. Changes made in 2006 to go out into the community centres in each ward for advanced voting demonstrates a more equitable percentage of voters across all 6 Wards. The cost for the 2006 advance vote was estimated at $5,000. The issue of online voting as a potential option for the 2010 Municipal Election was raised. Mr. Gosse advised that the City of Markham used online voting in 2003 and determined that while it FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 29, 2007 - 25 - CITY OF KITCHENER 8. CRPS-07-00$ - 2006 MUNICIPAL ELECTION REVIEW tCONT'D) offered convenience, it did not result in increasing the number of voters and the initial figures for 2006 indicate the same result. He pointed out that the election staff committee is in the process of gathering information which will include best practices of other municipalities and a review of the results of AMCTO's survey, to determine options for change as it relates to the 2010 Municipal Election. He noted that a decision has already been made to move toward a decentralized tabulation system for 2010 and a full report on new directions /options for the next election is expected to come forward in the Fall of this year. Mr. Gosse added that a separate report coming forward in June concerning the process for review of Ward boundaries will also address the question of increasing the size of Council. 9. CAO-07-007 - REFERRAL OF ECONOMIC DEVELOPMENT ADVISORY COMMITTEE APPOINTMENTS The Committee considered Chief Administrator's Office report CAO-07-007, dated January 24, 2007 concerning appointments to the Economic Development Advisory Committee. On motion by Councillor G. Lorentz - it was resolved: "That Mr. Willy Heffner be appointed to represent the Arts & Culture sector of the Economic Development Advisory Committee, for a term expiring November 30, 2008; and further, That Mr. Don Zehr be appointed to represent the Major Retail sector of the Economic Development Advisory Committee, for a term expiring November 30, 2008." Councillor B. Vrbanovic re-entered the meeting at this time and assumed the Chair. 10. FIN-07-002 - 2007 WATER AND SEWER BUDGETS I RATES The Committee considered Financial Services Department report FIN-07-002, dated January 22, 2007 concerning the 2007 Water and Sewer Budgets and Rates. Pursuanf fo fhe Municipal Acf 2001, a nofice of infenfion fo consider fees and charges for wafer and sewer rates was published in The Record on January 5, 2007. On invitation, no delegations came forward to speak to this matter. Mr. D. Chapman advised that since approving the accelerated infrastructure replacement program to address an ongoing need for infrastructure replacement, the City is in a more sustainable position in comparison to other municipalities, such as the Region of Waterloo. He pointed out that budget projections for waterworks and sanitary surcharge utilities for this budget cycle were based on existing City and Regional rate forecasts from 2006; assuming City rate increases of 4% for water and 5.9% for sewer, inclusive of Regional rate increases of 5.4% for water and 6.4% for sewer over the next 5 year period. Recent indication from Regional staff is for Regional rate increases of 9.9% for water and 19.9% for sewer and should the City maintain the rates outlined under its existing forecast, both utilities would incur significant deficits in 2007. Adjustments were made to the triple-funded program to avoid incurring a deficit in either utility in 2007 and balancing the budget is deemed prudent until such time as the accelerated infrastructure model can be reviewed and updated. Factors influencing the deficit position include: higher than projected Regional rate increases; lower than anticipated growth in consumption; and higher than anticipated non-infrastructure capital costs. Mr. Chapman then outlined 3 options for 2007 rate-setting based on the proposed Regional rate increases, which include: maintain existing City rate projection in 2007 having a net rate increase of 4.3%, equating to $2.12 per month for the average household; increase City rates in 2007 to balance the utility budgets resulting in a net rate increase of 7.99%, equating to $3.66 per month for the average household; or defer additional capital works to balance the utility budgets and maintaining a net rate increase of 4.63%, but deferral of capital works may FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 29, 2007 - 26 - CITY OF KITCHENER 10. FIN-07-002 - 2007 WATER AND SEWER BUDGETS I RATES tCONT'D) further limit the City's ability to achieve the targets identified in the accelerated infrastructure model. Mr. Chapman advised that staff prefer Option 2 (net rate increase of 7.99%) to become effective March 1, 2007, but are recommending that a final decision on rate increases be deferred pending confirmation of Regional rate increases in early February. Councillor J. Gazzola questioned the impact if no rate changes were made prior to May 1. Mr. Chapman advised that the combined impact would be approximately $365,000. in forfeited revenues per month. In response to Councillor J. Gazzola, Mr. D. Quinn advised that additional staffing is necessary as the program is not sustainable at current levels. He agreed that a comprehensive review of the program is needed but also stressed the importance of moving ahead with projects to keep the program on track. Mr. Quinn pointed out that a decision on rate increases is not being asked for at this time but rather only approval of the staffing request to better manage the program. Councillor J. Gazzola raised concerns that not enough information is known at this time regarding the Regional rate increase and suggested that the increase in staffing also ties in with the budget process. He advised that he could not support the recommendation as it was his opinion all this information should be comprehensively reviewed prior to a decision being made and delaying until the April budget day meeting would not jeopardize the program. Mayor C. Zehr asked that when details of the proposed Regional rate increases become available staff provide their comments to members of Council. He stated that he did not want to see the program fall back on infrastructure renewal as in his opinion this would only add costs in the end and the only information outstanding at this time was details of the Regional wholesale rates. In response to Mayor Zehr, Mr. Quinn advised that the requested FTE's will replace consultants currently working on existing projects and it was his view that ultimately this course of action would reduce costs. 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 the Full Time Equivalent (FTE) complement for the Engineering Services Division of the Development and Technical Services Department be increased by three (3) in order that one additional Engineer, one additional Technologist and one additional Administrative Program Assistant be hired to facilitate the Corporate Infrastructure Replacement Program; and, That staff be directed to review and update the accelerated infrastructure model along with the associated water and sewer rate projections in 2007 to provide information for the 2008 budget and rate-setting discussions; and further, That the following recommendations be deferred to the February 28, 2007 Council meeting pending confirmation of Regional Water and Sewer rate increases: `That the municipal enterprise budgets for the Waterworks and Sanitary Surcharge utilities be approved as follows for 2007 ($000's): Revenues Expenses Surplus/(Deficit) Waterworks $27,058 $27,059 ($1) Sanitary Surcharge $25,860 $25,857 $3; and further, That effective March 1, 2007, the water rate be set at $1.1827 per cubic metre and the sewer rate be set at $1.1920 per cubic metre."` FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 29, 2007 - 27 - CITY OF KITCHENER 11. CRPS-07-015 - ACCOUNTABILITY & TRANSPARENCY COMMITTEE - TERMS OF REFERENCE The Committee considered Corporate Services Department report CRPS-07-015, dated January 22, 2007 recommending establishment of an Accountability and Transparency Committee to develop comprehensive policies, procedures and / or by-laws to ensure accountability and transparency of the operations of the City. Mr. R. Gosse advised that if approved, staff will proceed with placing an advertisement to receive applications for appointments to the public and media positions which will be brought back to Council to decide on those appointments and a Council representative. On motion by Councillor G. Lorentz, the staff recommendation contained in report CRPS-07- 015 was brought forward for consideration to establish an Accountability and Transparency Committee based on the Terms of Reference attached to the report. At the request of Councillor J. Gazzola, it was agreed to amend the Terms of Reference by increasing the composition of the Committee from 9 members to 12 with the 3 additional members to be comprised of 2 additional members of the public and 1 additional representative of a local news media company. On motion by Councillor G. Lorentz - it was resolved: "That the Accountability and Transparency Committee be established based on the Terms of Reference attached to Corporate Services Department report CRPS-07-015, as amended, to increase the composition of the Committee from 9 members to 12 by appointing 2 additional members from the public for a total of 4 and 1 additional representative from a local news media company for a total of 2" 12. CRPS-07-014 -KITCHENER MEMORIAL AUDITORIUM COMPLEX - HEAT PUMPS The Committee considered Corporate Services Department report CRPS-07-014, dated January 17, 2007 recommending replacement of all heat pumps in 2007 at the Kitchener Memorial Auditorium Complex (KMAC). Mr. L. Proulx advised that existing heat pumps are at or beyond their life expectancy and provided several options for their replacement, including: replace on an as-needed basis using the same type of unit / technology; or replace all pumps now with newer, environmentally friendly technology and achieve substantial savings in energy costs. It was noted that the newer technology cannot be installed piecemeal as all pumps are interconnected. Mr. Proulx added that the funding package proposed utilizes existing accounts with no new funding required. Mr. Proulx responded to questions, advising that staff will be applying to Kitchener-Wilmot Hydro for financial assistance through its energy savings incentive programs, which, if received, will further reduce costs for this project. An explanation of the funding package and repayment plan was also provided. On motion by Councillor G. Lorentz - it was resolved: "That staff proceed to replace all the heat pumps in 2007 at the Kitchener Memorial Auditorium Complex with more efficient technology; and further, That the proposed financing package as outlined in Corporate Services Department report CRPS-07-014 be approved." 13. CRPS-07-005 - CONSENT FOR SUB-LET ARRANGEMENT - WATERLOO REGIONAL CHILDREN'S MUSEUM The Committee considered Corporate Services Department report CRPS-07-005, dated January 11, 2007 requesting approval of a sub-let arrangement between the Waterloo FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 29, 2007 - 2$ - CITY OF KITCHENER 13. CRPS-07-005 - CONSENT FOR SUB-LET ARRANGEMENT - WATERLOO REGIONAL CHILDREN'S MUSEUM tCONT'D) Regional Children's Museum and the Mad Science Group for space in the Museum premises leased at 10-22 King Street West. Mr. L. Poulx advised that the City's lease with the Children's Museum requires that they obtain Council approval to sub-let any portion of the premises at 10-22 King Street West and which must be for a use which is ancillary to, and supportive of, the main use of the Children's Museum. Mr. T. Speck provided a brief overview of the Mad Science Group which delivers unique, hands-on science experiences for children and is expected to blend well with the goals of the museum in advancing the education of children in the field of science. Mr. Proulx added that in return for the leased space, the museum will benefit from presentations and exhibitions put on by the Mad Science Group. On motion by Councillor K. Galloway - it was resolved: "That the City consents to the sublet arrangement as identified in Corporate Services Department report CRPS-07-005, between the City's tenant, the Waterloo Regional Children's Museum, and the Mad Science Group of a portion of the basement of the Museum premises leased at 10-22 King Street West, provided that the City is not responsible for the costs of any leasehold improvements or modifications required to accommodate the Mad Science Group." 14. CRPS-07-013 - EXTENSION OF PURCHASE ORDER #0600621 - VICTORIA HILLS COMMUNITY CENTRE PROJECT The Committee considered Corporate Services Department report CRPS-07-013, dated January 12, 2007 requesting extension of a purchase order to cover additional budgeted costs to complete the addition and renovations to the Victoria Hills Community Centre. Mr. L. Proulx advised that total project costs now exceed 10% above the initial purchase order, however, the project itself is not over-budget. In accordance with the City's Purchasing By-law a resolution of Council is required for increases exceeding 10% of the approved purchase order. Contributing factors to the requested extension include: undertaking re-asphalting and re-roofing of the existing parking lot and existing roof at the same time as construction of the addition; and additional soil remediation. Mr. Proulx noted that no new funding is required as the additional costs will be funded by the construction contingency and other existing funds in the construction budget. On motion by Councillor C. Weylie - it was resolved: "That the City of Kitchener's Purchase Order #0600621, dated May 24, 2006 to PM Contracting be extended from its original amount of $1,229,614.12, including GST to $1,465,641.14, including GST, to cover additional budgeted costs to complete the addition and renovations to Victoria Hills Community Centre." 15. CAO-07-002 - END OF MANDATORY RETIREMENT 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 the December 11, 2006 Finance and Corporate Services Committee meeting pending a report on FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 29, 2007 - 29 - CITY OF KITCHENER 15. CAO-07-002 - END OF MANDATORY RETIREMENT tCONT'D) 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. At the request of staff, this matter was again deferred at the December 11 meeting to the end of January 2007 to allow time to more fully explore the issues raised. The Committee considered Chief Administrator's Office report CAO-07-002, dated January 23, 2007 dealing with issues related to the elimination of mandatory retirement and the issue of providing benefits for employees aged 65 and over. Mr. D. Paterson outlined 4 options dealing with provision of benefits for employees who choose to work beyond age 65 including: provision of a basic benefits plan for those aged 65 and over; a cash payout based on a percentage of an employee's earnings in lieu of benefits; a fixed annual payout based on an employee's benefits utilization rates; or no provision of benefits for employees remaining in the workforce beyond age 65. Mr. Paterson advised that Option 1 is preferred as it provides a level of benefit coverage to ensure the employee's health and wellness while affording a net savings to the Corporation. Councillor J. Gazzola asked for an explanation of the rationale for Option 1, in particular raising concerns with reliance on the Ontario Drug Benefit to provide drug coverage rather than including it in the Extended Health Care Plan. He suggested that those over 65 should be given a spending plan similar to senior management staff as an equitable solution. Mr. Paterson advised that provision of a spending plan presents challenges around perimeters that must be set. He added that this method is not preferred by the City's carrier and may also present issues with Revenue Canada. Mr. Paterson noted that staff are of the opinion monies paid out in lieu of benefits would not necessarily address the objective of employee health and wellness and accordingly, prefer to provide a basic benefits plan that will balance exposure to increased costs. In response to Councillor B. Vrbanovic, Mr. Paterson advised that a travel benefit is not recommended because of the high costs involved. He added that while not yet passed, a bill has been tabled that attempts to make municipalities with benefit plans for employees over 65 the first payor for drug benefits and the Province the second payor; thereby transferring the costs from the Province to the municipality. Councillor J. Gazzola requested that this matter again be deferred to allow further investigation into his suggestion of a spending plan. On motion by Councillor J. Gazzola - it was resolved: "That the recommendations contained in Chief Administrator's Office report CAO-07- 002 (End of Mandatory Retirement) be deferred to the March 5, 2007 Finance and Corporate Services Committee meeting, pending further review by staff as to the feasibility of providing a spending plan similar to senior management for those employees who choose to work beyond age 65." 16. CSD-07-017 - PUBLIC ART PROGRAM UPDATE The Committee considered Community Services Department report CSD-07-017, dated January 22, 2007 which provides an update on a review of public art policies and creation of a program plan; requests direction on imposing a moratorium on processing unsolicited art and design proposals until the policy review and program plan is completed in early 2008; and comments on the current Percent for Art policy as it applies to public-private partnerships. In response to questions, Ms. A. Pappert advised that the review requires consultation with the Arts and Culture Advisory Committee and the Public Art Working Group and it is expected to take up to 8 months to review all existing policies. In addition, it is intended to ensure that these policies have relevance to, and are aligned with, strategic goals and to ensure clarity in their application. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES JANUARY 29, 2007 - 30 - CITY OF KITCHENER 16. CSD-07-017 - PUBLIC ART PROGRAM UPDATE tCONT'D) In regard to the Percent for Art policy, Ms. Pappert commented that the review will have a positive impact on the policy itself in providing clarity in its application regarding private-public partnerships. In regard to the School of Pharmacy project, she advised that the policy was reviewed by the Public Arts Working Group and found not to apply as written because that structure will be semi-private as opposed to a building solely for general public use. She reminded the Committee, however, that in ongoing discussions with the University of Waterloo they have indicated a willingness to consider provision of public art in Phase 2 of the project. Ms. C. Ladd added that discussions also continue with the University regarding Phase 1 of the project. The Committee agreed that staff should proceed to impose a moratorium on endorsing any further unsolicited art and design proposals until the completion of the review of the public art policy and plan, anticipated to be completed early in 2008. 17. CAO-07-003 -VEHICLE AND EQUIPMENT PERMIT PROGRAM The Committee considered Chief Administrator's Office report CAO-07-003, dated January 22, 2007 concerning re-instatement of a Vehicle and Equipment Permit Program 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. Ms. C. Ladd advised that this matter was considered at the January 15, 2007 Capital Budget review and deferred pending additional information from staff regarding specific requirements sought by the Province and the potential for this program to be funded from the Equipment Reserve Fund. The report this date is to address these matters of clarification. Ms. S. Ogilvie advised that the staff recommendation has been revised to provide that funding fora 2-year implementation of the program will be taken from the Equipment Reserve Fund. On motion by Councillor J. Gazzola - it was resolved: "That the recommendations contained in Chief Administrator's Office report CAO-07- 003 (Vehicle and Equipment Permit Program - Re-instatement) be referred for consideration to the April 16, 2007 Budget Day deliberations." 18. ADJOURNMENT On motion, the meeting adjourned at 4:40 p.m. Janet Billett, AMCT Committee Administrator