HomeMy WebLinkAboutFin & Corp Svcs - 2007-10-15FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
OCTOBER 15, 2007 CITY OF KITCHENER
The Finance and Corporate Services Committee met this date, commencing at 7:15 p.m.
Present: Councillor B. Vrbanovic, Chair
Councillors G. Lorentz, J. Smola, K. Galloway and C. Weylie.
Staff: C. Ladd, Chief Administrative Officer
A. Pappert, General Manager, Community Services
P. Houston, General Manager, Financial Services & City Treasurer
R. Browning, General Manager, Development & Technical Services
R. Gosse, Director of Legislated Services & City Clerk
D. Chapman, Director of Financial Planning & Reporting
J. Witmer, Director of Building
R. Regier, Executive Director of Economic Development
R. Lebrun, Manager, Financial Planning & Reporting
J. Billett, Committee Administrator
1. CRPS-07-133 -REQUEST TO OPERATE BARBECUES
- GRAND RIVER ARENA AND DON MCLAREN ARENA
The Committee considered Corporate Services Department report CRPS-07-133, dated
October 4, 2007 regarding a request to hold barbecues at Grand River and Don McLaren
Arenas.
On motion by Councillor K. Galloway -
it was resolved:
"That the request of the Minor Bantam Boys AAA Junior Rangers Hockey Team to
operate a barbecue at Grand River Arena, 555 Heritage Drive and Don McLaren Arena,
61 Green Street, at the Blueline Tournament on November 23 & 24, 2007 be approved,
provided the necessary licence, including Health approval is obtained."
2. FIN-07-117 - CUSTOMER INFORMATION (CIS) CONSULTANT -CONTRACT EXTENSION
- GAS DISTRIBUTION ACCESS RULE tGDAR) IMPLEMENTATION
The Committee was in receipt of Financial Services Department report FIN-07-117, dated
September 18, 2007 concerning extension of the contract for the CIS consultant for
implementation of the Gas Distribution Access Rule (GDAR).
Ms. P. Houston advised that a number of options for completing Phase II of GDAR were
considered; however, extending the contract for the CIS consultant was determined to be most
cost effective as it would allow earlier than expected completion of Phase II and would allow
for other system improvements and modules to proceed on schedule. Ms. Houston added
that as legislation governing natural gas vendors and vendor billing options /specifications is
constantly changing, staff will need to reassess future need for the CIS consultant contract in
late 2008.
On motion by Councillor C. Weylie -
it was resolved:
"That the contract for the CIS consultant (John Little) be extended by 12 months to the
end of 2008 to complete the system design requirements for Phase II of the Gas
Distribution Access Rule (GDAR) Implementation."
3. CRPS-07-132 - 200$ COUNCIL I STANDING COMMITTEE SCHEDULE
The Committee considered Corporate Services Department report CRPS-07-132, dated
October 1, 2007 concerning the 2008 meeting schedule for Council and Standing Committees.
Councillor B. Vrbanovic advised that 3 meeting schedule options have been provided by staff
and in all 3 instances, due to the recent Provincial announcement that February 18 will now be
a Statutory Holiday, the proposed Standing Committee meetings on that date will have to
move to February 11, 2008. He added that Council's 2008 Budget day was previously
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
OCTOBER 15, 2007 - 151 - CITY OF KITCHENER
3. CRPS-07-132 - 200$ COUNCIL I STANDING COMMITTEE SCHEDULE tCONT'D)
scheduled for January 28, 2008 and will have to be moved to February 4, 2008 to coincide
with the regularly scheduled Council meeting day. He noted that the options provide for 15 or
16 meetings and Option 3 is most closely aligned with the 2008 Regional meetings schedule.
On motion by Councillor C. Weylie -
it was resolved:
"That Option No. 3 attached to Corporate Services Department report CRPS-07-132,
dated October 1, 2007, as amended to provide for Standing Committee meetings to be
held on February 11, 2008 instead of the newly declared Statutory Holiday on February
18, be approved as the 2008 schedule of Council and Standing Committee meetings;
and further,
That the 2008 Council Budget day be moved from January 28, 2008 to February 4,
2008 to coincide with the regularly scheduled Council meeting of the same date."
4. CRPS-07-134 -WARD BOUNDARY REVIEW -TERMS OF REFERENCE
The Committee considered Corporate Services Department report CRPS-07-134, dated
October 5, 2007 concerning Terms of Reference for the Ward Boundary review.
Mr. R. Gosse advised that the Terms of Reference for the Ward Boundary review will also be
used to issue a Request for Proposals (RFP) to retain the services of a consultant to lead the
public process, develop options and make final recommendations for Council's consideration.
Councillor C. Weylie raised concerns with the substantial workload created by representation
of businesses and overseeing of the Economic Development Investment Fund, especially as it
relates to the Downtown. She questioned how this would be taken into consideration during
the Ward Boundary review. Mr. Gosse advised that the primary focus will be to establish
boundaries based on fair representation and secondary, matters such as representation by
population, workloads and special areas would be considered. He noted that as a stakeholder
in the process, members of Council will have opportunity to relay their concerns directly to the
consultant for consideration.
Councillor K. Galloway referred to the last sentence of the first paragraph of the Terms of
Reference and Mr. R. Gosse agreed that the wording should be changed to reflect that the
revised ward structure will be in place for the 2010 Municipal Election, as opposed to using the
word "intended".
Mr. Gosse further explained that issuing an RFP for this review is a change in process, based
on the model used by the City of Ottawa which has become a standard for municipalities to
use. It provides for an extensive public process, with Council's role as a consulted
stakeholder. He added that Dr. Williams, who previously worked with City staff on Ward
Boundary reviews, has expressed an interest to participate in the RFP process.
Councillor C. Weylie spoke against the staff recommendation as it was her opinion it did not
appear to provide any more fair a process than that undertaken for the last Ward Boundary
review.
On motion by Councillor J. Smola -
it was resolved:
"That the terms of reference for the Ward Boundary Review, attached to Corporate
Services Department report CRPS-07-134, be approved; and further,
That the approved terms of reference form the basis for a Request For Proposal to
retain the services of a consultant to lead a public process, develop options and make
final recommendations for Council's consideration."
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
OCTOBER 15, 2007 - 152 - CITY OF KITCHENER
5. CRPS-07-131 -INCREASE OF LICENSING FEES FOR BINGO EVENTS
The Committee considered Corporate Services Department report CRPS-07-131, dated
September 27, 2007 requesting an increase in the fee per bingo event charged to
organizations conducting bingo in Kitchener.
Mr. Bill Pegg, Past Chair, K-W Gaming Centre Sponsors Association, circulated a written
submission this date on behalf of the Association and expressed concerns with respect to the
proposed increase in fees charged to organizations conducting bingo in Kitchener.
Mr. R. Gosse stated that having just received the written submission from the Association, it
would be appropriate for this matter to be referred to the October 22, 2007 Council meeting to
allow staff time to review and consider the impact of the suggestions proposed by the
Association in respect to the fees.
On motion by Councillor G. Lorentz -
it was resolved:
"That the following recommendation contained in Corporate Services Department report
CRPS-07-131 be referred to the October 22, 2007 Council meeting, pending staff
review of a submission from the K-W Gaming Centre Sponsors Association:
`That the fee per bingo event being charged to organizations conducting bingo in
Kitchener be increased from $90. to $130. for licences coming into effect
January 1, 2008."'
6. FIN-07-115- AUGUST 31, 2007 INTERIM FINANCIAL STATEMENTS
The Committee was in receipt of Financial Services Department report FIN-07-115, dated
October 1, 2007 which provides an update on City spending and revenues compared to the
2007 budget and explains significant projected variances.
Mr. D. Chapman advised that a deficit of $0.6M is projected at year end, resulting from lower
than average net supplementary tax revenues; over-expenditure of general expenses due to a
loan written-off related to the Waterloo Regional Children's Museum and expenses related to
Fleet; and an over-expenditure of departmental operations due to an increase in the number
of winter events in the first half of 2007. He noted that the deficit will be off-set somewhat by
higher than anticipated investment income as interest rates have increased beyond original
forecasts, resulting in a projected positive variance of $1.3M. Mr. Chapman advised that staff
has taken immediate action to reduce controllable costs in an attempt to mitigate the projected
deficit by maximizing gapping, reducing overtime and eliminating discretionary spending where
possible.
Mr. Chapman reviewed performance of the City's Enterprises, noting that the Building
Enterprise has exceeded expectations with an operating surplus of $1 M to date, resulting from
increased permit activity and delays in filling vacant positions; the Golf Courses are on target
with a positive variance of $44,000. to date; the Water Utility is performing as expected while
the Sanitary Sewer Utility is under-performing as a result of an increase in the cost of sewage
processing paid to the Region of Waterloo; and the Gas Utility is out-performing expectations
as a result of increased consumption and lower than anticipated supply costs.
Mr. Chapman advised that at present the City's Investment Policy limits the percentage of the
portfolio that can be invested in Schedule I banks to 60% and Schedule II banks to 50%. He
pointed out the difficulty in finding appropriate investment opportunities in Schedule II markets
that comply with the Investment Policy and accordingly, asked that the portfolio limits in
Schedule I banks be increased to a maximum of 100% until such time as the policy may be
revised by Council but not to exceed a period of more than six months.
Mr. Chapman responded to questions, further clarifying the need to increase the limit in
Schedule I banks notwithstanding the current Investment Policy and advising that the City in
doing so, will minimize its risk by investing in Chartered Banks under Canadian ownership as
opposed to being exposed to Schedule II banks having foreign holdings that may be impacted
by downturns in the real estate /mortgage sectors across the border.
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
OCTOBER 15, 2007 - 153 - CITY OF KITCHENER
6. FIN-07-115- AUGUST 31, 2007 INTERIM FINANCIAL STATEMENTS tCONT'D)
On motion by Councillor K. Galloway -
it was resolved:
"That the Financial Report as of August 31, 2007 be received for information, as
attached to Financial Services Department report FIN-07-115; and further,
That staff be authorized to exceed the 60% portfolio limit for investment in Schedule I
banks as outlined in Corporate Policy 1-605 (Investment Policy) until such time as the
policy may be updated and approved by Council, but for a period of no more than six
months."
7. CAO-07-04$ - CREATING A CULTURE OF SAFETY FOR KITCHENER: FUTURE SEARCH
SUMMARY AND NEXT STEPS
The Committee considered Chief Administrator's Office report CAO-07-048, dated October 8,
2007 which provides an overview of a 2 day forum on Creating a Culture of Safety in
Kitchener, held at the Waterloo Regional Children's Museum on September 20 and 21, 2007.
Ms. C. Ladd advised that approximately 90 community members participated in the 2 day
forum, resulting in 9 district action plans, proposing short and long term activities toward
creating a culture of safety. She noted that next steps involve working with the Safe and
Healthy Community Advisory Committee and the Creating a Culture of Safety Planning
Committee to bring forward a comprehensive strategy to address City-specific action items
and how this City might support other stakeholders in moving forward with their own actions.
A subsequent report will come forward in November 2007 seeking approval of a
comprehensive strategy for the remaining 3-year term of Council.
Councillor B. Vrbanovic added that the Safe and Healthy Community Advisory Committee will
be reviewing the resultant action plans to determine how items may be incorporated into the
Committee's Work Plan from both a short and long term perspective.
On motion by Councillor J. Smola -
it was resolved:
"That Chief Administrator's Office report CAO-07-048 (Creating a Culture of Safety for
Kitchener: Future Search Summary and Next Steps), dated October 8, 2007, be
received."
8. ADJOURNMENT
On motion, the meeting adjourned at 7:40 p.m.
Janet Billett
Committee Administrator