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HomeMy WebLinkAboutCouncil - 2007-02-05COUNCIL MINUTES FEBRUARY 5, 2007 CITY OF KITCHENER The Council of the City of Kitchener met this date with all members present. The meeting began with the singing of "O Canada" by Symone Snively, King School of Vocal. On motion by Councillor J. Smola, the minutes of the regular meeting held January 15, 2007 and special meetings held January 15, 16 & 29, 2007, as mailed to the Mayor and Councillors, were accepted. COMMUNICATIONS REFERRED DIRECTLY TO FILE -NIL Ms. L. Stecho, Supervisor of Purchasing, was in attendance with respect to the tenders listed on the Committee of the Whole agenda. At the request of Ms. Stecho, it was agreed to withdraw Tender T06-077 (Two Vibratory Road Rollers), listed as Item 2.i) on the Committee of the Whole agenda this date, pending further review of the bid. Mayor C. Zehr advised that Tender T06-073 (Site Remediation - 44 Gaukel Street) would be considered later on this date in conjunction with 2 other reports regarding the Joseph /Gaukel reconstruction project. Moved by Councillor G. Lorentz Seconded by Councillor K. Galloway "That Tender T06-105, Domestic Gas Meters, be awarded to ElsterlCanadian Meter, Cambridge, Ontario at their tendered price of $439,242. including G.S.T. and P.S.T." -and- "That Tender T07-012, Six Wheel Street Sweeper, be awarded to Joe Johnson Equipment Inc., Barrie, Ontario, complete to specification CKF-72-2006, at their tendered price of $232,846.14, including G.S.T. & P.S.T." -and- "That Expression of Interest E06-102, Consultant Services - Greenbrook Plaza Culvert at Stonybrook Drive (City of Kitchener Bridge No. 854), be awarded to Muirtec Inc., Waterloo at their fee of $61,118.49, including a contingency of $5,713.95 and G.S.T.; and further, That the Director of Purchasing be authorized to execute an agreement satisfactory to the City Solicitor." -and- "That Expression of Interest E06-104 - Prequalification of General Contractors -Construction of a new Firehall at 1440 Huron Road, Kitchener be approved and that the following General Contractors be issued tender packages for the project: • CRD Construction Ltd. Guelph • Collaborative Structures Ltd. (CSL) Cambridge • Dakon Construction Ltd. Waterloo • Maple Reinders Constructors Ltd. Cambridge • Melloul-Blarney Construction Inc. Waterloo • Nith Valley Construction New Hamburg." -and- "That Quotation 006-086, Supply and Install Front Plow, High Leveling Wing, Quick Change Roll Off Body System and Steerable Air Operated Lift Axle, be awarded to Viking Cives Ltd., Mount Forest, Ontario, at their quoted price of $125,564.16, including G.S.T. & P.S.T." -and- COUNCIL MINUTES FEBRUARY 5, 2007 - 24 - CITY OF KITCHENER "That Expression of Interest E07-014, Consultant Services -Capital Asset Management Business Process Study, be awarded to Prior & Prior Associates Ltd., Markham, Ontario at their estimated fee of $74,068., including disbursements of $2,000. and G.S.T., based on a satisfactory contract being negotiated; and further, That the Director of Purchasing be authorized to execute an agreement satisfactory to the City Solicitor." Carried. Council considered this date Development and Technical Services Department report DTS-06-169 (J. Witmer / D. Chapman / L. Lynch), dated February 5, 2007, listed as Item 12 on the Committee of the Whole agenda this date. The report provides an update on the multi-phase Joseph /Gaukel / Richmond Street Reconstruction and Environmental Remediation Project and recommends a method of financing for over-expenditures of the project. Mr. J. Witmer, Director of Building and Environmental Remediation, advised that Phases 1 and 2 (reconstruction of Joseph and Francis Streets) is largely complete, with approximately $900,000. in over-expenditures due to additional work not included in the original tender. Phases 3 and 4 (environmental remediation of 44 Gaukel Street and environmental risk assessment) have not yet begun, with the tender to be awarded this date. Mr. Witmer advised that the original cost for Phase 3 was estimated at $4.86M but because of significant additional and unexpected environmental remediation and cost of disposal of greater quantities of contamination and larger volumes of hazardous soils, the projected cost for this Phase is now $12.9M, being a difference of $8.07M. Phase 4 of the project involves undertaking an Environmental Risk Assessment to address any remnant contamination from the site and adjacent road allowances, at a cost of $1.2M. He pointed out that the total project shortfall is now estimated at $12.2M, of which $9.4M is directly related to increased environmental remediation costs. The process of determining the extent of contamination was explained, with the most significant contamination related to Phase 3 of the project. Initial testing indicated the depth of soil contamination at 2 to 5.5 m and Frontline Environmental Management was retained to prepare estimates for remediation. The City was not able to enter onto the site at 44 Gaukel Street to undertake further testing because of ongoing litigation with the property owner. Using existing reports and studies, the consultant concluded that there was approximately 35,700 tonnes of contaminated soils on the site, excluding underneath the existing building, and 20,000 tonnes within the right-of-way on Joseph and Gaukel Streets. None of the previous information available gave indication of any hazardous soils but an allowance of 1,500 tonnes was included as a precaution in the estimate. Following commencement of construction within the Joseph Street right-of-way, contaminated soils were discovered at a depth of 7m but the City was still not in a position to undertake further on-site testing. When the City acquired ownership of the property in July 2006, an onsite test pitting program was undertaken to determine the level of hazardous vs. non-hazardous materials. This testing showed approximately 20,000 tonnes of hazardous soils vs. 60,000 tonnes of non-hazardous soils; far in excess of original estimates. Mr. Witmer also noted that Ministry of Environment (MOE) standards had changed impacting what had to be classified as hazardous and adding significantly to the cost of remediation. In evaluating options for disposal of the hazardous soils, a Quebec landfill site was chosen because of its cost effectiveness and ability to safely /efficiently dispose of the material within the tight timelines of the project. Mr. Witmer stated that it is important to move ahead with the project to keep the portion of the Quebec landfill reserved at significant cost savings and to take advantage of the colder weather to mitigate odours caused by remediation of the contaminated soils. He added that a commitment has been made to complete this phase of the project by December 31, 2007. In response to questions, Mr. Witmer advised that the cost of Phases 1 and 2 is $14.7M, which includes approximately $900,000. of project work not previously included in the original tender. He pointed out that original project estimates were not wrong but rather based on the available data accumulated at the time. He advised that delaying the project was not an option because of scheduling commitments made and raised concerns regarding the potential loss of the negotiated disposal price and loss of colder weather to mitigate odours. He pointed out that the MOE has not issued an Order because the City has demonstrated a willingness to expedite matters to address this COUNCIL MINUTES FEBRUARY 5, 2007 - 25 - CITY OF KITCHENER contamination. Mr. Witmer also spoke in regard to alternative approaches including moving the hazardous soils to an interim site within the Region or containment of the materials underground. He indicated that the soils are too rich in hazardous materials to support multiple movement and even if a barrier is placed around the contaminated soils, the City could not guarantee any further migration from the site. It was further noted that treatment underground was not an option as it would not diminish the hazardous soils, whereas once removed, the site will be in a clean, re-usable condition. It was noted that the non-hazardous contaminated soils directly beneath the former Canada Post building on the site do not have to be removed and will be addressed through the Environmental Risk Assessment, which includes continuous monitoring to ensure no change in conditions. Mr. D. Chapman then outlined two options for financing the project shortfall, with Option 1 to include debt issuance within the Gas Utility of $8.84M resulting in annual principle and interest payments of approximately $1.1 M, beginning in 2008 fora 10-year period; future land sale recovery at an appraisal of $2M; and use of the Move Ontario grant funding in the amount of $1.4M. Option 2 is similar to Option 1 with the exception of providing adebt-free solution by having the Gas Utility fund the remediation costs out of current operations and includes a reduced transfer to the Gas Capital Investment Reserve Fund (GCIRF) by the same amount to avoid incurring a deficit. The transfer from the GCIRF will reduce the balance available in the Capital Pool to fund future works. As a result, staff are recommending the shortfall be off-set by a transfer of funds from the Tax Stabilization Reserve Fund; reduction in the road reconstruction and resurfacing budgets; and deferral of Wards Pond works to 2009 / 2010. Mr. Chapman advised that Option 2 is being recommended by staff. Mr. Chapman referred to three other Options considered but not recommended for reasons outlined in report DTS-06-169, including use of the Economic Development Investment Fund; monetization of investment in Kitchener Power Corporation /Kitchener-Wilmot Hydro Inc.; and use of the Hydro Capital Investment Reserve Fund. Mr. Chapman responded to questions, advising that gas rates would not be impacted by the option chosen as there will be no change in Council's policy to maintain ayear-end operating surplus in the Gas Utility; but the amount of dividend will be less, having an impact on funding of future capital projects. He added that the utility has returned approximately $191 M back to the City over the past 20 years, of which $8.8M or approximately 4%, is proposed to be used to pay for the remediation costs. Councillor J. Gazzola questioned the need to determine financing this date, preferring to delay a decision on funding until Council's final budget deliberations in April. He commented that more information is needed to determine the full impact on future capital works and should be considered in conjunction with all other budget information on Budget Day. He added that he would like to look at the option to monetize the City's investment in Kitchener Power Corporation /Kitchener-Wilmot Hydro Inc. such that the City would sell a portion of its investment to interested citizens in the community without impact to the cash flow operation of the Hydro utility. Ms. P. Houston advised that monetization would require notice to be given to the Hydro companies and would not necessarily result in a cash reimbursement to the City. She pointed out that Hydro is more likely to pursue public financing options that would entail sizable shares being sold to large groups leaving little or no option for individual citizens to buy in. Mayor C. Zehr suggested that the portions of the staff recommendation pertaining to financing could be approved in principle, subject to Budget Day deliberations, and still meet Council's legal obligation to ensure approved expenditures have funding. Councillor B. Vrbanovic expressed concerns regarding monetization of the Hydro investment suggesting that it would be more appropriate to have the Gas Utility pay for the remediation given it is the originator of the pollution. He questioned the impact of the deferral of Wards Pond work and was advised that staff is in a position to complete design work in 2007 and the delay in construction to 2009 / 2010 is still within the parameters of the approved environmental assessment (EA). On motion by Councillor B. Vrbanovic, seconded by Councillor C. Weylie, the staff recommendation contained in report DTS-06-169 was brought forward for consideration to approve the proposed financing of the Joseph / Gaukel /Richmond Streets Construction Project shortfall. COUNCIL MINUTES FEBRUARY 5, 2007 - 26 - CITY OF KITCHENER Councillor B. Vrbanovic suggested that as part of the approach to be made to senior levels of government for financing, staff pursue other communities in the Province and across the country facing similar situations to join in lobbying the government to address this issue. A motion by Councillor J. Gazzola, seconded by Councillor G. Lorentz, to defer consideration of the second, third and fourth paragraphs and Wards Pond works in paragraph five to the April 16, 2007 Council Budget Day deliberations, was voted on by a recorded vote and Lost, with Councillors J. Gazzola and G. Lorentz voting in favour and Mayor C. Zehr and Councillors J. Smola, K. Galloway, B. Vrbanovic and C. Weylie voting in opposition. Moved by Councillor B. Vrbanovic Seconded by Councillor C. Weylie "That the over-expenditure of $903,016 for Phases 1 and 2 of the Joseph/Gaukel project and $11,378,655 for Phases 3 and 4 of the Joseph/Gaukel project, for a total of $12,281,671 be approved; and, That the over-expenditure be funded as follows: Gas current operations $ 8,844,743 Future land sale $ 2,000,000 Move Ontario grant funding $ 1,436,928 $12,281,671; and, That the transfer from the Gas Utility to the Gas Capital Investment Reserve Fund be reduced by $8,844,743 in 2007; and, That a transfer in the amount of $6.1 million be made from the Tax Stabilization Reserve Fund to the Gas Capital Investment Reserve Fund in 2007; and, That the projected expenditures out of the Gas Capital Investment Reserve Fund be reduced by $1.5 million in 2007 and the following adjustments be made to the 2007-2016 capital forecast: Reduce Road Reconstruction budget $ 120,000 Reduce Road Resurfacing budget $ 780,000 Defer Ward's Pond works to 2009/2010 $ 600,000 $ 1,500,000; and further, That the Mayor and Chief Administrative Officer be directed to immediately engage senior levels of government to investigate potential funding for the environmental clean up of 44 Gaukel Street and other future remediation projects." A recorded vote was requested. In Favour: Mayor C. Zehr and Councillors G. Lorentz, J. Smola, K. Galloway, B. Vrbanovic and C. Weylie Contra: Councillor J. Gazzola Motion Carried. Council then considered Financial Services Department report FIN-07-016 (L. Gordon), listed as Item 2.viii) on the Committee of the Whole agenda, concerning awarding of Tender T06-073 for site remediation of 44 Gaukel Street. Councillor C. Weylie noted concerns the City has had with past practice of the company being awarded the tender as it relates to their ability to complete the project within the timelines specified. Mr. J. Witmer advised that staff shared these concerns and undertook an interview with company representatives that resulted in a unanimous decision that the company had clearly demonstrated ability to complete the work as required. COUNCIL MINUTES FEBRUARY 5, 2007 - 27 - CITY OF KITCHENER Moved by Councillor G. Lorentz Seconded by Councillor K. Galloway "That Tender T06-073, Site Remediation - 44 Gaukel Street, be awarded to Bel-Air Excavating & Grading Ltd., Cambridge, Ontario at their tendered price of $11,210,879.59, including provisional items and contingency of $562,250. and G.S.T.; and further, That the Mayor and City Clerk be authorized to execute an agreement satisfactory to the City Solicitor." Carried Unanimously, on a recorded vote. Council then considered Development and Technical Services Department report DTS-06-023 (R. Browning), dated January 26, 2007, listed as Item 9 on the Committee of the Whole agenda, recommending that a forensic review of the Victoria Street Reconstruction and Joseph /Gaukel Streets Reconstruction Projects be undertaken. Mr. R. Browning, General Manager of Development and Technical Services, advised that the two projects represent two of the largest and most complex reconstruction projects recently undertaken by the City and while soil testing is a viable method of determining the existence and nature of contamination, accurate assessments cannot be conclusively known until the ground is excavated. In both projects, the extent of contamination and the proportion of non-hazardous to hazardous was found to be far greater than original estimates, affecting the ultimate costs significantly. Accordingly, staff is recommending that an independent, external review of the project development and construction processes used be conducted to determine strengths and weaknesses inherent in the City's current project management process and to act as a learning tool for future improvement. In response to questions, Mr. Browning advised that an Expression of Interest will be developed to retain the services of a consultant to undertake the review and a report will be brought forward in June 2007 for consideration of the Terms of Reference prior to issuing the Expression of Interest. Ms. P. Houston added that the report will also provide information on financing. At the request of Mayor C. Zehr, it was agreed to modify the wording of the staff recommendation to remove the phrase `forensic review' and replace it with the phrase `audit review of the process'. Moved by Councillor B. Vrbanovic Seconded by Councillor K. Galloway "That an independent audit review of the process of the Victoria Street Reconstruction and the Joseph /Gaukel Streets Reconstruction Projects be undertaken, as outlined in Development and Technical Services Department report DTS-07-023." Carried Unanimously, on a recorded vote. Moved by Councillor C. Weylie Seconded by Councillor J. Gazzola "That the report of the Development and Technical Services Committee be adopted." Moved by Councillor B. Vrbanovic Seconded by Councillor J. Smola "That the report of the Finance and Corporate Services Committee be adopted." Carried. Carried. At the request of Councillor G. Lorentz, Ms. A. Pappert agreed to report to a future Community Services Committee meeting on an offer received from the Grand River Conservation Authority to obtain trees for planting and to include information on a similar program conducted by Kitchener- Wilmot Hydro Inc. COUNCIL MINUTES FEBRUARY 5, 2007 - 2$ - CITY OF KITCHENER Council agreed to a request of Mr. R. Gosse, City Clerk, to add two additional by-laws for three readings this date being a zoning amending by-law relative to Clause 5 of the Development and Technical Services Committee report and a by-law to amend Chapter 502 (Adult Entertainment Parlour) of the Municipal Code relative to Clause 3 of the Finance and Corporate Services Committee report. Moved by Councillor C. Weylie Seconded by Councillor G. Lorentz "That leave be given the Mover and Seconder to introduce the following by-laws, namely: (a) Being a by-law to provide for the establishing and laying out of part of Helena Feasby Street, Commonwealth Crescent and Commonwealth Street as public highways in the City of Kitchener. (b) Being a by-law to provide for the establishing and laying out of part of Cranbrook Street as a public highway in the City of Kitchener. (c) Being a by-law to provide for the establishing and laying out of part of Shirley Drive as a public highway in the City of Kitchener. (d) Being a by-law to provide for the establishing and laying out of part of River Valley Drive and River Birch Street as public highways in the City of Kitchener. (e) Being a by-law to provide for the establishing and laying out of part of Sheldon Avenue as a public highway in the City of Kitchener. (f) Being a by-law to exempt certain lots from Part Lot Control -Lots 165 to 171 inclusive, Registered Plan 58M-393 -Edgewater Crescent. (g) To confirm all actions and proceedings of the Council. (h) Being a by-law to amend By-law 85-1, as amended, known as the Zoning By-law for the City of Kitchener -Valley View Heights (St. Jacobs) Limited -Fairway Road / Morrison Road. (i) Being a by-law to amend Chapter 502 of the City of Kitchener Municipal Code with respect to Adult Entertainment Parlours. and that the same be taken as read a first time and stand referred to the Committee of the Whole." Carried. On motion, the Council resolved itself into the Committee of the Whole to consider its agenda and Mayor C. Zehr appointed Councillor J. Smola as Chair. On motion, the Council rose from the Committee of the Whole and Mayor C. Zehr occupied the Chair. Moved by Councillor J. Smola Seconded by Councillor G. Lorentz "That the proceedings and the recorded pecuniary interests and conflicts taken in the meeting of the Committee of the Whole held this date, as attached hereto and forming part of these minutes are hereby adopted and confirmed." Carried. Moved by Councillor C. Weylie Seconded by Councillor G. Lorentz "That the by-laws listed on the agenda for third reading, namely: COUNCIL MINUTES FEBRUARY 5, 2007 - 29 - CITY OF KITCHENER (a) Being a by-law to provide for the establishing and laying out of part of Helena Feasby Street, Commonwealth Crescent and Commonwealth Street as public highways in the City of Kitchener. tBy-law No. 2007-20) (b) Being a by-law to provide for the establishing and laying out of part of Cranbrook Street as a public highway in the City of Kitchener. tBy-law No. 2007-21) (c) Being a by-law to provide for the establishing and laying out of part of Shirley Drive as a public highway in the City of Kitchener. tBy-law No. 2007-22) (d) Being a by-law to provide for the establishing and laying out of part of River Valley Drive and River Birch Street as public highways in the City of Kitchener. tBy-law No. 2007-23) (e) Being a by-law to provide for the establishing and laying out of part of Sheldon Avenue as a public highway in the City of Kitchener. tBy-law No. 2007-24) (f) Being a by-law to exempt certain lots from Part Lot Control -Lots 165 to 171 inclusive, Registered Plan 58M-393 -Edgewater Crescent. (g) To confirm all actions and proceedings of the Council. tBy-law No. 2007-25) tBy-law No. 2007-26) (h) Being a by-law to amend By-law 85-1, as amended, known as the Zoning By-law for the City of Kitchener -Valley View Heights (St. Jacobs) Limited -Fairway Road / Morrison Road. tBy-law No. 2007-27) (i) Being a by-law to amend Chapter 502 of the City of Kitchener Municipal Code with respect to Adult Entertainment Parlours. tBy-law No. 2007-28) be taken as read a third time, be finally passed and numbered serially by the Clerk." On motion, the meeting adjourned at 9:25 p.m. Carried. MAYOR CLERK COUNCIL MINUTES FEBRUARY 5, 2007 - 30 - CITY OF KITCHENER REPORTS ADOPTED BY COUNCIL DEVELOPMENT & TECHNICAL SERVICES COMMITTEE - 1. That heavy trucks be prohibited at anytime on Trussler Road between Ira Needles Boulevard and Highland Road. 2. That the Uniform Traffic By-law be amended to prohibit on-street parking at anytime on both sides of Deer Ridge Drive from the intersection of King Street East to a point 50 metres north of the intersection of Candle Crescent. 3. That the 2007 Traffic Calming Program include the completion of traffic calming studies for Vanier Drive/Traynor Avenue, Kinzie Avenue, Old Carriage Drive, Clark Avenue and Heritage Drive. 4. That temporary occupancy be approved and enforcement of the City's Zoning By-law be waived for the property at 585 Queen Street South, with respect to a retail and restaurant use (cafe and gallery) within a building existing on January 29, 2007, subject to the retail and restaurant use vacating the location in the event the City initiated Zone Change (ZC06/06/TC/RM) to permit retail and restaurant uses on the subject lands is not approved; and further; That in the event of failure to vacate, the City's Municipal By-law Enforcement Officer be directed to commence notice of action to remove the illegal use and that any work done to the premises be at the sole risk and responsibility of the owner in the event losses are incurred as a result of final disposition of this application. 5. That Zone Change Application ZC 06/14/F/BB (Valleyview Heights Limited; Fairway Rd./"Proposed Sims Estate Drive" ) requesting a change in zoning to: Residential Three (R-3), Residential Three (R-3) with special regulation provision 175R, Residential Four Zone (R-4), Residential Four Zone (R-4) with special regulation provisions 454R and 456R, Residential Six Zone (R-6), Residential Six Zone (R-6) with special regulation provision 399R, and Public Park Zone (P-1) from: Residential Four Zone (R-4), Residential Four Zone (R-4) with special regulation provision 400R, Residential Six Zone (R-6), Residential Six Zone (R-6) with special regulation provision 399R, and Open Space Zone (P-2) ,Residential Four (R-4) with on lands legally described as Block 54, R.P. 1798, Part of Blocks 132 and 136, R.P. 1647, Part of Lots 10 and 12, R.P. 591 and Part of Lot 118, German Company Tract, in the City of Kitchener, be approved, in the form shown in the "Proposed By-law", dated January 9, 2007, attached to Development and Technical Services Department report DTS-06-172, without conditions; and further, That pursuant to Section 51(44) of the Planning Act, R.S.O. 1990, and By-law 2002-164, as amended, the modified conditions of draft approval for Plan of Subdivision 30T-03201 for Valley View Heights (St. Jacobs) Limited to revise the plan and text as outlined in Development and Technical Services Department report DTS-06-172, be approved, subject to the following amendments: • Condition 1 -Block 82 to read ...multiple residential (16 to 24 units); • Condition 3.19 -last sentence of the first paragraph "...and zoned for Open Space use only" be deleted; • Condition 6.19 -reference to "...residential apartments" be changed to "dwelling units"; • Condition 2.2.10 - "...and zoned for Open Space" reference be deleted from first paragraph last sentence; • Regional Condition 6 -revised to read "...for Lots 1, 2 and 3 (Stage 2)..."; • Parkland -the sentence "The dedication of this parkland is to be satisfied by a cash-in- lieu contribution," be removed. COUNCIL MINUTES FEBRUARY 5, 2007 - 31 - CITY OF KITCHENER REPORTS ADOPTED BY COUNCIL FINANCE AND CORPORATE SERVICES COMMITTEE - 1. 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. 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. 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. 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. 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. 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, 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). COUNCIL MINUTES FEBRUARY 5, 2007 - 32 - CITY OF KITCHENER REPORTS ADOPTED BY COUNCIL FINANCE AND CORPORATE SERVICES COMMITTEE - (CONT'D) 7. 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. 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. 9. 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." 10. 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. 11. 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. 12. 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. 13. 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. COUNCIL MINUTES FEBRUARY 5, 2007 - 33 - CITY OF KITCHENER REPORTS ADOPTED BY COUNCIL FINANCE AND CORPORATE SERVICES COMMITTEE - (CONT'D) 14. 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. 15. 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. COUNCIL MINUTES FEBRUARY 5, 2007 - 34 - CITY OF KITCHENER COMMITTEE OF THE WHOLE A. BY-LAWS LISTED ON THE AGENDA - 2ND READING - It was resolved: "That the by-laws considered by this Committee be taken as read a second time and be recommended for enactment." B. ADMINISTRATIVE REPORTS - 1. Encroachment Agreement - 286 Duke Street West It was resolved: "That the Mayor and Clerk be authorized to execute an Encroachment Agreement, satisfactory to the City Solicitor, with the property owner of Part Lot 221, Plan 376 designated as Part 1 on 58R-9291 (PIN 22319 0168), municipally known as 286 Duke St. W., to legalize the proposed projecting signs which will encroach approximately .66 metres, more or less, into the Duke St. W. and Breithaupt St. road allowances." 2. Various Tenders Dealt with under Delegations. 3. Committee of Adiustment Decision Council considered minutes and other background information from D. Gilchrist, Secretary-Treasurer, Committee of Adjustment, regarding a meeting held January 16, 2007. It was resolved: "That the application of Agata Artel (Submission No. SG 2007-002 - 274 Frederick Street) requesting permission to locate a ground sign 0.3m (0.98') from the lot line along Frederick Street rather than the required 3m (9.84'), on Part Lot 2, Registered Plan 111, 274 Frederick Street, Kitchener, Ontario, BE APPROVED, subject to the following conditions: 1. That the proposed sign shall be located outside of the 4.57 metre driveway visibility triangle. 2. That the owner shall remove the existing sidewalk in the location for the proposed sign by June 30, 2007. 3. That the owner shall submit and receive approval of a landscaping plan for the front yard, to the satisfaction of the Director of Planning, and shall implement the landscaping plan by June 30, 2007." 4. Surplus Land Designation - 290 & 310 King Street East Council considered Corporate Services Department report CRPS-07-017 (L. MacDonald), dated January 30, 2007. It was resolved: "That the following lands and rights of easement be declared surplus to the City's needs for purposes of sale to Barrel Works Market Shops Inc.: • Part Lot 12 "Marked N. Ziegler" and Part Lot 18, North of King and West of Cedar Streets, B. Eby's Survey, Registered Plan 364 being Parts 1, 15, 16, 27, 30, 36 and 39, Reference Plan 58R-15060, subject to easements in favour of the City to the COUNCIL MINUTES FEBRUARY 5, 2007 - 35 - CITY OF KITCHENER COMMITTEE OF THE WHOLE B. ADMINISTRATIVE REPORTS - (CONT'D) 4. Surplus Land Designation - 290 & 310 Kinq Street East - tCont'd) benefit of its abutting lands as more particularly described in Schedule `A' attached to Report CRPS-07-017; and, • To transfer appurtenant easements over abutting lands owned by the City being Part of Lots 18, North of King Street and West of Cedar Street, B. Eby's Survey, Registered Plan 364 designated as Parts 1, 2, 3, 4, 7, 15, 16, 17, 25, 27, 28, 29, 30, 35, 36, 38, 39 and 40 on Reference Plan 58R-15060 as more particularly described in Schedule `A' attached to Report CRPS-07-017." 5. Request to Extend Closing -Sale of Retail Lands - 290 & 310 Kinq Street East Council considered Corporate Services Department report CRPS-07-018 (L. MacDonald), dated January 30, 2007. It was resolved: "That the Mayor and Clerk be authorized to execute an amendment to the Retail Component Purchase Agreement with Barrel Works Kitchener Limited and Barrel Works Market Shops Inc. to extend the closing date to March 1, 2007 on terms and conditions satisfactory to the City Solicitor." 6. Uncollectible Utility Accounts -Write-off Council considered Financial Services Department report FIN-07-023 (P. Houston), dated January 30, 2007. It was resolved: "That Uncollectible Utility Accounts, amounting to $86,440.76, be written off against the Allowance for Doubtful Sundry Receivables and the Allowance for Doubtful Utility Receivables." 7. Uncollectible Receivables -Write-off Council considered Financial Services Department report FIN-07-024 (P. Houston), dated January 30, 2007. At the request of Mayor C. Zehr, Ms. P. Houston, General Manager of Financial Services & City Treasurer, agreed to provide additional information concerning the details of several uncollectible receivable write-offs pertaining to the Cemeteries. It was resolved: "That Uncollectible Receivables, amounting to $35,501.98, be written off against the Allowance for Doubtful Sundry Receivables and the Allowance for Doubtful Utility Receivables." $. Results of 2007 Budaet Consultati Council considered Financial Services Department report FIN-07-011 (P. Houston), dated January 29, 2007, providing information on the recently held budget consultation process. Mr. D. Chapman, Director of Financial Planning & Reporting, advised that despite the multi-phase approach to public consultation, the response rate was disappointing. Notwithstanding, on average survey respondents indicated support for increased investment in the areas proposed in the Budget Brief, with protecting the environment a COUNCIL MINUTES FEBRUARY 5, 2007 - 36 - CITY OF KITCHENER COMMITTEE OF THE WHOLE B. ADMINISTRATIVE REPORTS - (CONT'D) $. Results of 2007 Budget Consultation - tCont'd) high priority for new investment. There was little support for the proposal to use the City's rate of inflation, Municipal Price Index (MPI), as the basis for setting annual property tax increases and a balanced approach was preferred for use of assessment growth revenues, including selected service expansion as well as tax rate reductions. Discussion at the public meetings centered around the 2006 one-time tax credit, City surpluses, the Economic Development Investment Fund and use of the MPI; and in general, it was clear there was concern among the public with a proposed tax rate increase of 5.29%. Mr. Chapman advised that citizens were asked as to their preference of consultation approaches and a majority of respondents preferred aweb- based survey. A number of observations were noted to be taken into account for future planning of citizen consultations on City financing, including use of the Internet; enhancing the level of representative responses and participation; and timing of consultation. At the request of Councillors B. Vrbanovic and J. Gazzola, staff were directed to report at the February 26, 2007 Operating Budget deliberations as to how the City might achieve a tax rate increase below 3% and / or below the Consumer Price Index (CPI) of 2.7%. 9. Forensic Review -Victoria Street and Joseph I Gaukel Reconstruction Projects Dealt with under Delegations. 10. Execution of Data Exchange Agreement - Google Earth Council considered Corporate Services Department report CRPS-07-020 (J. Ham), dated January 26, 2007. It was resolved: "That the Mayor and Clerk be authorized to execute an agreement with Google Earth, satisfactory to the City Solicitor for the use of city data, namely aerial photography for public, non-commercial purposes, said release of any of this data to be in compliance with any legislative obligations." 11. CRPS-07-021 -Williams Coffee Pub Lease Agreement Council considered Corporate Services Department report CRPS-07-021 (S. Williams), dated February 1, 2007. It was resolved: "That the Mayor and Clerk be authorized to execute an agreement with Williams Coffee Pub Inc. for the lease of the premises located on the ground level of City Hall, subject to the satisfaction of the City Solicitor." 12. DTS-06-169 - Joseph I Gaukel Street Remediation and Reconstruction -Financial Information Dealt with under Delegations.