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HomeMy WebLinkAboutFin & Corp Svcs - 2007-04-02FINANCE & CORPORATE SERVICES COMMITTEE MINUTES APRIL 2, 2007 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 1:35 p.m. Present: Mayor C. Zehr and Councillors G. Lorentz, J. Gazzola, C. Weylie and K. Galloway. 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 R. Gosse, Director of Legislated Services & City Clerk D. Chapman, Director of Financial Planning & Reporting L. Proulx, Director of Facilities Management S. Turner, Director of By-law Enforcement R. Upfold, Director of Accounting D. Paterson, Director of Human Resources S. Adams, Director of Community & Corporate Planning R. Regier, Executive Director of Economic Development L. MacDonald, Director of Legal Services & City Solicitor S. Williams, Assistant City Solicitor C. Yarling, Manager of Corporate Records P. Harris, Manager of Licensing I. Magid, Supervisor, Benefit Development J. Billett, Committee Administrator In the absence of Councillors B. Vrbanovic and J. Smola (Chair /Vice-Chair), Mayor C. Zehr assumed the Chair for purposes of conducting this meeting. 1. KITCHENER POWER CORPORATION I KITCHENER WILMOT HYDRO - ANNUAL REPORT 2006 Messrs. Ron Charie, past President and CEO, and Jerry Van Ooteghem, President and CEO, Kitchener-Wilmot Hydro Inc. (KWHI) / Kitchener Power Corporation, presented the 2006 Annual Report. A summary document highlighting aspects of the Annual Report were circulated this date. Mr. Charie presented highlights of the financial report noting that the Reserve for Impairment of Regulatory Assets in 2006 is at zero as a result of a decision by the Ontario Energy Board to allow full recovery of regulatory assets. Shareholders equity increased by approximately $6.4M and a net income of $8.1 M was realized in 2006; however, when factoring in the cost of regulatory directives totalling $3.15M, the result is an actual net income of $4.7M in 2006 versus $5.1 M in 2005. Factors impacting net income and kw/hr sales were attributed to a decrease in consumption due to the loss of a large user (closing of the Michelin Plant); as well as milder than average temperatures. Controllable expenses remain the lowest of the large utilities in comparison to the Provincial average, resulting in an expense to customer ratio of $149.29; and customer growth continues to increase at a healthy, sustainable rate. Mr. Van Ooteghem then provided statistics on customer service performance indicators, including: new services; locates; telephone accessibility; and written/emergency responses. Mr. Charie concluded that KWHI remains in good financial position, continuing to re-invest in its infrastructure and providing excellent service to its customers at the lowest residential rate of the large utilities in the Province. Mr. Charie then presented the 2007 Reforestation Grant of $35,000., representing KWHI's commitment to replenish trees removed as a result of maintenance of its hydro lines. He also presented a dividend cheque in the amount of $1,752,750. Mayor C. Zehr advised that Mr. Charie is retiring after 32 years of service, of which 25 years he served as the President and CEO of KWHI. On behalf of Council, Mayor Zehr presented Mr. Charie with a replica of a historical hydro truck to commemorate his tenure. Mr. Charie expressed appreciation for being recognized, acknowledging that results achieved were a collective effort among all staff at KWHI. 2. DELEGATION PRESENTATION - ILLEGAL BODY RUB PARLOURS Mr. Brad Baumbach attended on behalf of Mr. Morris Manning to request an update on actions being taken by the City in regard to illegal body rub parlours and also to ask for clarification of FINANCE & CORPORATE SERVICES COMMITTEE MINUTES APRIL 2, 2007 - 75 - CITY OF KITCHENER 2. DELEGATION PRESENTATION - ILLEGAL BODY RUB PARLOURS tCONT'D) the authority for staff to renew licences for adult entertainment parlours for shorter periods rather than annually. Ms. P. Harris advised that licences for Class D and E Adult Entertainment Parlours are currently being renewed on a three month basis pending amendments to Chapter 502 (Adult Entertainment Parlours) of the Municipal Code. She added that the intent still remains to issue licences on the basis of one year once the amendments have been dealt with. Mr. Baumbach was advised that the City has initiated a number of activities related to enforcement of illegal body rub parlours but is not in a position at this time to speak to specific matters of enforcement. 3. FIN-07-041 -HUMANE SOCIETY CONTRACTS 2007-2010 The Committee considered Financial Services Department report FIN-07-041, dated March 22, 2007 concerning renewal of agreements with the K-W & North Waterloo Humane Society. Ms. R. Upfold advised that two agreements have been negotiated with the Humane Society for Animal and Dog Control and Pound Services, as well as for the Spaying and Neutering Program. She noted that there is no change in the level of services and the overall financial increase is 5%. Ms. Upfold advised that Mr. Ward McAlister, Humane Society, was also in attendance to answer questions. Ms. Upfold advised that the increase in 2007 is based on 2% inflation; 1.1 % growth; and 2% related to costs associated with enforcement of the City's Dangerous Dog By-law. It was noted that persons charged under the by-law are not subject to a fine and in order to implement a fine amendments would be required to the by-law. Ms. Upfold added that staff is currently investigating changes to the Municipal Act that provide for licensing of cats and a comprehensive report on licensing fees will come forward in late summer /early fall. On motion by Councillor G. Lorentz - it was resolved: "That the Mayor and Clerk be authorized to execute the Animal and Dog Control and Pound Services Agreement with the Corporation of the City of Waterloo and the Kitchener-Waterloo and North Waterloo Humane Society; for the term of January 1, 2007 to December 31, 2010; and further, That the Mayor and Clerk be authorized to execute the agreement for the Spaying and Neutering Program with the City of Waterloo and the Kitchener-Waterloo and North Waterloo Humane Society, for the term of January 1, 2007 to December 31, 2010." 4. CRPS-07-029 - REPLACEMENT OF CORPORATE ARCHIVES POLICY The Committee considered Corporate Services Department report CRPS-07-029, dated February 22, 2007 concerning changes to the City's Corporate Archives Policy. Ms. C. Yarling advised that a new policy is proposed to replace the existing to support growth and expansion of the City's Corporate Archive Program. The new policy will provide clarity in identification and preservation of archival materials, as well as how they may be accessed. On motion by Councillor G. Lorentz - it was resolved: "That Corporate Archives Policy (I-205), dated January 21, 2000 be replaced with the Corporate Archives Policy, dated February 7, 2007, attached to Corporate Services Department report CRPS-07-029." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES APRIL 2, 2007 - 76 - CITY OF KITCHENER 5. CRPS-07-047 -REQUEST TO OPERATE A BBO AT FOREST HEIGHTS COMMUNITY CENTRE -JUNE 16, 2007 The Committee considered Corporate Services Department report CRPS-07-047, dated March 26, 2007 concerning a request to operate a barbecue. On motion by Councillor G. Lorentz - it was resolved: "That the request of the Forest Heights Community Centre to operate a barbecue at 1700 Queen's Boulevard, on June 16, 2007 be approved, provided the necessary licence, including Health and Fire approvals, is obtained." 6. CRPS-07-04$ -REQUEST FOR OUTDOOR FOOD AND MERCHANDISE VENDORS - DOON HERITAGE CROSSROADS -MAY 26. 2007 The Committee considered Corporate Services Department report CRPS-07-048, dated March 27, 2007 concerning an event to be held at Doon Heritage Crossroads. On motion by Councillor G. Lorentz - it was resolved: "That the request of Doon Heritage Crossroads to invite two food vendors and approximately 5 merchandise vendors to operate at the Emergency Services Muster Games and Parade on May 26, 2007, at 10 Huron Road, be approved, providing the necessary licence, including Health and Fire approvals, are obtained; and further; That the reduced fee of $38.10 be applicable." 7. CRPS-07-049 -REQUEST TO HOLD A FUNDRAISING AUCTION AT CITY HALL ROTUNDA - NUMUS -MAY 4, 2007 The Committee considered Corporate Services Department report CRPS-07-049, dated March 28, 2007 concerning a request to hold an art auction at City Hall. On motion by Councillor G. Lorentz - it was resolved: "That the City of Kitchener has no objection to NUMUS Concerts Inc. holding a fundraising auction at 200 King Street West on May 4, 2007, provided the necessary licences are obtained." 8. CAO-07-017 -ELIMINATION OF MANDATORY RETIREMENT The Committee considered Chief Administrator's Office report CAO-07-017, dated March 28, 2007 concerning amendments to Human Resources policies affected by legislation ending mandatory retirement. This matter was deferred by Council at its meeting held March 19, 2007 pending further review as to the feasibility of providing a spending account similar to senior management for those employees choosing to work beyond age 65. Ms. Ita Magid advised that staff are not recommending a spending account as it would create two levels of benefits in a singular bargaining unit and the experience of the group would reflect on the Corporation's rates, impacting future financial liability. Ms. Magid pointed out that a new option has become available which is believed to be a viable alternative. The Municipal Retirees Organization of Ontario (MROO) is now offering benefits to employees who continue to work beyond age 65 and this group's experience would have no reflection on the Corporation's rates. Accordingly, staff is recommending that this option be pursued. In response to questions, Ms. Magid advised that claims under MROO would be made to the group's insurer as opposed to the Corporation's; and thereby the group's experience would not reflect on the Corporation's rates. Whereas, a spending account would reflect on the Corporation's rates as it would be part of the Corporation's overall benefit package. She FINANCE & CORPORATE SERVICES COMMITTEE MINUTES APRIL 2, 2007 - 77 - CITY OF KITCHENER 8. CAO-07-017 -ELIMINATION OF MANDATORY RETIREMENT tCONT'D) added that extension of benefits under MROO would be seamless with options to increase or decrease levels of benefits on retirement and life rates would be fixed at entry. Reference was made to $850. per calendar year provided for prescription drugs under MROO. Ms. Magid advised that this amount is over and above what is covered by the Ontario Drug Benefit Plan (ODBP) and is to be used in conjunction with the ODBP. It was further noted that coverage under MROO would cost the City $4,000. a year in comparison to the current utilization rate of $3,757. Councillor J. Gazzola stated that he was not convinced that a spending account would not work. Mayor C. Zehr commented that he had difficulty with the proposed alternative as it was his opinion affected employees are deserving of equal treatment. Ms. Magid advised that staff is attempting to balance a fair level of benefit coverage while at the same time mitigating costs to the Corporation. At the request of Mayor C. Zehr, it was agreed to refer this matter to the April 16, 2007 Council meeting for further consideration. On motion by Councillor C. Weylie - it was resolved: "That the following recommendation contained in Chief Administrator's Office report CAO-07-017 (Elimination of Mandatory Retirement) be referred to the April 16, 2007 Council meeting for further consideration: "That Human Resources Policy II-250, Retirement and Human Resources Policy 11- 145, Group Insurance and Pension Plans, be amended, as outlined in Chief Administrator's Office report CAO-06-052; and, That employees who work beyond age 65 continue to accrue service for vacation purposes, and sick leave, in the same manner as employees under the age of 65; and further, That premium based insurance benefits continue for employees who continue to work after the age of 65 under a new benefit program, as outlined in Chief Administrator's Office report CAO-07-017." 9. CRPS-07-044 -KITCHENER MEMORIAL AUDITORIUM -HEAT PUMPS The Committee considered Corporate Services Department report CRPS-07-044, dated March 23, 2007 concerning replacement of all heat pumps at the Kitchener Memorial Auditorium Complex. Mr. L. Proulx advised that before proceeding with the retrofit, services of mechanical engineers were retained to confirm estimated cost savings in energy. As a result of their findings, it was determined that the estimated energy savings would not be realized because of the configuration, size and operation of the Auditorium such that the higher efficiency equipment would not operate at optimum in many areas for substantial periods of time. Consequently, staff are recommending that the project not proceed and the funding set aside be returned to respective accounts. Concerns were raised regarding the process of approval for this project. Mr. T. Speck advised that this project involved implementing technological changes requiring capital dollars which affects how staff plan to budget for replacement of the equipment. Staff brought the matter forward for approval in January to first determine Council's willingness to pursue the new technology and subsequently, undertook a more in-depth investigation to determine its viability prior to any funding being spent on the actual design for the retrofit at the Auditorium. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES APRIL 2, 2007 - 7$ - CITY OF KITCHENER 9. CRPS-07-044 -KITCHENER MEMORIAL AUDITORIUM -HEAT PUMPS tCONT'D) On motion by Councillor J. Gazzola - it was resolved: "That the project to replace all the heat pumps at the Auditorium in 2007 be cancelled and the funds that were re-directed towards this project, as outlined in Corporate Services Department report CRPS-07-014, be returned to their previous accounts." 10. CRPS-07-045 -LICENSING FEES FOR BINGO EVENTS The Committee considered Corporate Services Department report CRPS-07-045, dated March 26, 2007 concerning the imposition of a flat licence fee per bingo session held. Ms. P. Harris provided explanation of the varying levels of licensing under the new bingo model wherein the Province will now also licence each charity, as opposed to just the bingo Association. The new model takes effect May 1, 2007. On motion by Councillor C. Weylie - it was resolved: "That a flat fee of $90.00 per bingo event be charged to organizations conducting bingo at K-W Gaming Centre, 501 Krug Street and Kitchener Bingo Country, 1356 Weber St. E; and further, That the licence fee be reviewed in March 2008 and a report be submitted to the Finance and Corporate Services Committee in April 2008." 11. CRPS-07-046 -LIQUOR LICENCE REVIEW APPLICATION -ENERGY CAFE - 21 WEBER STREET WEST The Committee considered Corporate Services Department report CRPS-07-046, dated March 26, 2007 concerning an application for a liquor licence for the Energy Cafe. On motion by Councillor G. Lorentz - it was resolved: "That subject to the applicant entering into an agreement with the City including certain conditions of operating a licensed establishment as set out below, Council take no action to oppose the application for a liquor license for Energy Cafe located at 28 Weber Street West, applied for by Tanja Matkovic (herein referred to as the "Applicant"); and further, That Council authorize the Mayor and Clerk to enter into an agreement with the applicant should she be willing wherein the applicant agrees to abide by the following conditions and to request they be added to her licence if the Alcohol and Gaming Commission of Ontario (AGCO) chooses to issue the licence: 1. to post in a conspicuous place and abide by the Downtown Licensed Establishments Code of Conduct; 2. to become a member of the Kitchener Downtown Business Association's License and Entertainment Committee and attend its meetings; 3. to abide to a set 60% monthly ratio of alcohol sales to gross refreshment sales (including food and other sundries) in other words, alcohol sales will be limited to 60% of gross refreshment sales); 4. to stop serving alcohol by 2:00 a.m daily; 5. to notify the Clerk of the City of Kitchener in writing of any application to change the license at the time the application for the change is made to the Alcohol and Gaming Commission, and not to expand the establishment without the consent of the City's Council; 6. to comply with the Noise By-law and the Smoking By-law; and, 7. these conditions shall bind all successors, assigns and subsequent licence holders (if any)." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES APRIL 2, 2007 - 79 - CITY OF KITCHENER 12. DISCUSSION - 2007 BUDGET -POTENTIAL REDUCTIONS At the request of Councillor G. Lorentz, Ms. A. Pappert agreed to provide information at the April 16, 2007 Budget Day meeting of the Finance and Corporate Services Committee, pertaining to drainage problems experienced in the Forest West Park, along with options to address this matter in 2007. 13. ADJOURNMENT On motion, the meeting adjourned at 3:00 p.m. Janet Billett Committee Administrator