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HomeMy WebLinkAboutFin & Corp Svcs - 2007-11-05FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 5.2007 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 2:15 p.m. Present: Councillor J. Smola, Vice-Chair Mayor C. Zehr and Councillors J. Gazzola, K. Galloway 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 R. Gosse, Director of Legislated Services & City Clerk D. Chapman, Director of Financial Planning & Reporting L. Proulx, Director, Facilities Management K. Baulk, Director of Enterprise S. Turner, Director of By-law Enforcement L. MacDonald, Director of Legal Services & City Solicitor G. Murphy, Director of Engineering T. Beckett, Fire Chief D. Keehn, Interim Director of Aquatics & Athletics M. Grummett, Director of Information Technology R. Regier, Executive Director of Economic Development J. McBride, Director of Transportation Planning M. May, Director of Communications/Marketing S. Williams, Assistant City Solicitor K. Kugler, Manager of The Aud & Community Arenas L. Eckel-Braun, Manager of Cemeteries T. Marr, Manager of Marketing/Creative Services & Printing Services P. Harris, Manager of Licensing D. Chapman, Supervisor, Special Events J. Billett, Committee Administrator 1. CRPS-07-13$ -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - BETHANY EVANGELICAL MISSIONARY CHURCH The Committee considered Corporate Services Department report CRPS-07-138, dated October 31, 2007 concerning a request for noise exemption. On motion by Councillor K. Galloway - it was resolved: "That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to the Bethany Evangelical Missionary Church for their annual Christmas Pageant from December 6 to 9, 2007, between the hours of 6:00 P.M. and 9 P.M., daily." 2. DTS-07-155 -LIMITING DISTANCE AGREEMENT - 34 BRAUN STREET & ABUTTING ACCESS ROAD SERVING MOUNT HOPE CEMETERY AT 175 MOORE AVENUE The Committee considered Development and Technical Services Department report DTS-07- 155, dated October 17, 2007 concerning an agreement to permit an increase in the limiting distance of the east side wall of 34 Braun Street. On motion by Councillor K. Galloway - it was resolved: "That the Mayor and Clerk be authorized to execute an agreement with the registered owner(s) of Lot 9, Registered Plan 413, known as 34 Braun Street, pursuant to Division B Section 9.10.15.2.(4) of the 2006 Building Code, said agreement to permit a single family home with the limiting distance for the exposing building face being measured to a point beyond the property line on the adjacent property, and the abutting access road to the Kitchener Mount Hope Cemetery at 175 Moore Avenue, Lot 457, Registered Plan 385, to the satisfaction of the City Solicitor." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 5, 2007 - 155 - CITY OF KITCHENER 3. DTS-07-169 - 200$ DUKE & ONTARIO GARAGE POST TENSIONING TENDON REPAIRS - CONSULTANT SELECTION The Committee considered Development and Technical Services Department report DTS-07- 169, dated October 22, 2007 concerning structural repairs to the Duke and Ontario Parking Garage. Mr. J. McBride advised that staff is recommending hiring of Read Jones Christoffersen Ltd. (RJC) as they have been undertaking structural analysis of the parking garage with specific focus on the post tensioning tendons and is one of the leading firms in the industry with extensive experience with this type of structure. He added that RJC has done work in the past on the parking garage with good success and their pricing is competitive. He pointed out that their previous work was done on time and within budget. Councillor J. Gazzola requested to be recorded as opposed to the following motion, as it was his opinion the work should be tendered to ensure the City receives the best price for the work to be done. On motion by Councillor K. Galloway - it was resolved: "That the consultant selection process be waived and the 2008 Duke and Ontario Garage Post-Tensioning Tendon Structural Engineering Services be awarded to Read Jones Christoffersen Ltd." 4. FIN-07-11$ - 200$ COMPREHENSIVE FEE REVIEW I BUDGET PUBLIC MEETING The Committee considered Finance & Corporate Services Department report FIN-07-118, dated October 15, 2007 regarding a comprehensive review of proposed fees and charges for 2008. Pursuant to the Municipal Act 2001, a Notice of Intention to consider fees and charges for 2008 was published in The Record on October 12, 2007. The Committee considered correspondence from Mr. Michael Gaudreau, dated October 29, 2007 raising concerns with regard to the proposed increase in portable sign permit fees from $55. to $60. Mr. Gaudreau was registered as a delegation to speak on this matter but did not attend the meeting. Ms. Cheryl Edwards, Ruby's Massage, was registered as a delegation to speak to increased licensing fees for Adult Entertainment Parlours (Classes D and E) but did not attend the meeting. Messrs. Bill Papazotos, 2027625 Ontario Ltd. (The Doll House) and Barry Grieve, Roxanne's Bar and Grill, spoke in opposition to proposed increases in licensing fees for Adult Entertainment Parlours (Class E) from $1,081. to $4,200. The delegation stated that the proposed fee increase is substantial, representing a 500% increase over 2007. Ms. P. Harris explained that the fee increase is proposed to recover enforcement and legal costs which have increased as a result of the City taking a more proactive approach to addressing enforcement issues. She added that in comparison to other municipalities Kitchener's fees were well below the average, with the range between $3,000 to $10,000. She advised that the City of Waterloo does not have a fee for this type of business as none exist in their municipality; however, the City of Cambridge has an annual fee of $4,200. She pointed out that several court cases are pending, with costs already in excess of $10,000., and several tribunals are also pending that will require substantial preparation by staff. Mr. Brad Baumbach, Phoenix Massage, spoke in opposition to the proposed fee increase for Adult Entertainment Parlours (Class D), stating that there are many massage parlours operating illegally but the City is not doing anything to enforce against these illegal operations. He suggested that documentation should be provided to substantiate the fee increase and asked that there be equity in treating this type of business the same as any other. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 5, 2007 - 156 - CITY OF KITCHENER 4. FIN-07-11$ - 200$ COMPREHENSIVE FEE REVIEW I BUDGET PUBLIC MEETING COt NT, D) Ms. P. Harris advised that the City has undertaken enforcement of illegal operations in the Class D category, and in this regard, will be conducting five tribunals scheduled over the next several months. On motion by Councillor C. Weylie, the staff recommendation contained in Finance and Corporate Services Department report FIN-07-118 was brought forward for consideration to approve the proposed fees and charges in the 2008 comprehensive fee review attached to report FIN-07-118. Mr. D. Chapman advised that departments based fee increases on an initial guideline of 6% and most are increasing by this amount. Staff responded to questions, advising that the increase in tournament ice rental rates is an adjustment to current market rates; however, in keeping with Council direction forecasting for Kitchener Minor Hockey was done at 3%; increased clean-up costs for community centres is an adjustment toward cost recovery; budget focus groups indicate public support of rate increases toward cost recovery of programs as it translates to reduced pressure on the tax base; the impact of the 6% guideline represents approximately $940,000. in additional revenue for the tax supported budget, which would be reduced by half if the City maintained its previous guideline of 3%; the January 7, 2008 meeting replaces the original date of October 15, for public consultation on the budget at which time information on the operating budget will be available; the CD version of the Economic Development Business Directory is priced higher than the hard copy as the data is in a more valuable format allowing the purchaser to manipulate and print data for their own use; Council previously approved dog licence fees which are raising in parity with the City of Waterloo and will apply to seniors; and the fee for hard copy of Development and Technical Services Committee agendas /minutes is priced higher than the City's two other Standing Committees as they are on average more substantial in content. Councillor J. Gazzola referred to the increase in non-prime time ice rental rates and Ms. K. Kugler advised that these rates would also be adjusted for Kitchener Minor Hockey at 3%. Councillor J. Gazzola raised concerns with respect to the increased fees proposed for Family Summer All Pool Passes. Ms. D. Keehn advised that the pass permits families to use any pool at an unlimited number of days and children, and the proposed increase would bring the City's fees in line with other municipalities all season passes. Mayor C. Zehr commented that he did not believe the proposed change in parking rates from $2 for 3 hours to $3 for 4 hours would necessarily encourage people to stay longer in the Downtown; however, he supported the change given parking rates have not been increased in the last six years. Mr. D. Chapman noted that the Federal Government has announced intention to decrease the GST from 6% to 5% as of January 1, 2008. He pointed out that fees have been based on the 6% rate and Council may wish to consider revising the fees to coincide with the decrease or leave them as is. Mr. Chapman asked that user fees remain as proposed for the year 2008 as the final budget has yet to be set and savings may be realized through the property tax base. Councillor J. Gazzola expressed the opinion that when the reduction in GST is made the savings should be passed along to citizens. Mayor C. Zehr stated that further discussion in respect to this matter could be undertaken when it is confirmed that the Federal Government has taken action to reduce the GST rate. On motion by Councillor C. Weylie, it was agreed to amend the motion to provide that the 2008 fee for Development and Technical Services Committee minutes be set at $92. on par with the City's two other Standing Committees. On motion by Councillor J. Gazzola, it was agreed to further amend the motion to provide that the 2008 fees for Family Summer All Pool Passes (Early Bird and Regular) be adjusted to an increase of no more than the approved guideline of 6%. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 5, 2007 - 157 - CITY OF KITCHENER 4. FIN-07-11$ - 200$ COMPREHENSIVE FEE REVIEW I BUDGET PUBLIC MEETING COt NT, D) The main motion, as amended, was then voted on and it was resolved: "That the proposed fees and charges contained in the 2008 Comprehensive Fee Review attached to Financial Services Department report FIN-07-118, be approved, as amended to provide that: a) Corporate Services (Legislated Services) - 2008 fee for Development & Technical Services Committee minutes be set at $92. on par with the fee to be charged for minutes of the City's two other Standing Committees; and, b) Community Services (Aquatics & Athletics) - 2008 fees for Family Summer All Pool Passes (Early Bird & Regular) be adjusted to an increase of no more than the approved guideline of 6%; and, That the Manager of Cemeteries be directed to forward the Cemetery Tariff of Fees and Charges to the Ministry of Government Services -Cemeteries Regulation Unit for filing; and, That Legal Services staff be directed to prepare the necessary by-laws to amend The City of Kitchener Municipal Code Chapters for fees and charges pertaining to licensing, planning applications, building permits and Committee of Adjustment applications; and further, That a public input session be scheduled for the 2008 budget as a special meeting of the Finance and Corporate Services Committee on the evening of January 7, 2008." 5. DEPARTMENTAL PROJECT REFERRALS TO THE 200$-2017 CAPITAL FORECAST The Committee considered five departmental reports and a report from the Kitchener Public Library (KPL), as outlined below, regarding referral of projects to the 2008-2017 Capital Forecast. Ms. P. Houston advised that all new capital projects with budgets in excess of $50,000. are referred to the 10-year Capital Forecast by resolution of Council She pointed out that a decision this date does not constitute a final decision on the projects but rather allows them to advance to consideration as part of the 2008 budget deliberations. a) FIN-07-131 -FINANCIAL SERVICES DEPARTMENT The Committee considered Financial Services Department report FIN-07-131, dated October 25, 2007 regarding capital projects proposed to be included in the 2008-2017 Capital Forecast. Ms. P. Houston advised that Financial Services is recommending additional funds be added throughout the Capital Forecast to accommodate purchase of a POP/Remittance Processing system. It was noted that funding in the amount of $160,000. was included in the 2007 budget for this purchase; however, further research of the costing of this type of system has resulted in an additional request for $14,000. to be added in 2008, $12,000 in 2012 (upgrades) and $200,000. in 2017 (replacement software). Replacement of mailing/stuffing equipment is recommended to be moved from 2011 to 2008 due to a 25% increase in volumes. The total cost is projected at $50,000. rather than the $40,000. as per the 2011 capital budget. Funding for the Demand Side Management (DSM) program originally included in the Capital Forecast at $200,000. per year for 2007 through 2011, is recommended to be extended throughout the forecast period to make this a permanent program. The program supports the Residential Energy Efficiency Program, thermostat program and other rebates. Extension to the year 2010 of the program to replace all relined gas mains at a cost of $400,000., is required due to materials and contractor cost increases. Funding in the amount of $90,000. in 2009 and 2014 is recommended to cover staff and consulting costs associated with preparation of new background studies and FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 5, 2007 - 15$ - CITY OF KITCHENER 5. DEPARTMENTAL PROJECT REFERRALS TO THE 200$-2017 CAPITAL FORECAST a) FIN-07-131 -FINANCIAL SERVICES DEPARTMENT tCONT'D) by-laws, resulting from review of the Development Charge by-law every five years as per legislated regulations. Ms. P. Houston advised that staff is in the process of implementing an electronic billing system that will begin with Utilities in the early part of next year to be followed by tax billings later in the year. She anticipated that initially the uptake will be small in terms of public usage but will become more effective over time. Ms. Houston agreed to provide additional information for budget day on the results associated with the City's Demand Side Management (DSM) program, and include similar information on initiatives by the Ontario Energy Board in respect to natural gas. On motion by Councillor K. Galloway - it was resolved: "That the following capital projects be included in the 2008-2017 Capital Forecast for consideration by the Finance and Corporate Services Committee as part of the 2008 budget deliberations, as outlined in Financial Services Department report FIN-07-131: Capital Project Project Cost Project Year POP/Remittance Processing $ 14,000 2008 $ 12,000 2012 $ 200,000 2017 Mailing/Stuffing Equipment $ 50,000 2008 $ 80,000 2013 Demand Side Management $1,395,000 2012-2017 Replace Relined Gas Mains $ 400,000 2010 Development Charges Study $ 90,000 2009 $ 90,000 2014" b) KITCHENER PUBLIC LIBRARY The Committee considered the Kitchener Public Library report, dated October 30, 2007 regarding capital projects proposed to be included in the 2008-2017 Capital Forecast. Ms. Sonia Lewis, CEO -KPL, advised that the KPL forecasting assumes the current main library will be renovated and expanded by 2010. Accordingly, significant repair and maintenance items have been included and should the renovation not proceed, there will be significant additional ongoing capital costs not currently reflected in the forecast. Eight new items were reviewed, of which five are in excess of $50,000., namely: replacement of the Forest Heights HVAC unit in 2013 at a cost of $25,000; $131,000. over 2013-2017 for removal of barriers to accessibility in accordance with Provincial legislation; $700,000. over 2013-2014 for replacement or major upgrade of the automation system; $65,000. in 2014 for replacement of the main library boiler; $40,000. in 2014 for replacement of variable speed control drives for two air handler units at the main library; $25,000. in 2017 for replacement of the Pioneer Park furnace unit; $450,000. in 2012 for Radio Frequency Technology (automated check-in) at the main library; and $267,000. over 2015-2017 for technology upgrades. Ms. S. Lewis advised that as a result of an audit undertaken of the City's various facilities a number of improvements were identified to bring KPL facilities in-line with accessibility legislation. Ms. Lewis explained costs associated with the automation system, advising that estimates are based on comparison with like-sized libraries in other municipalities who have recently replaced their systems; as well as with various industry vendors. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 5, 2007 - 159 - CITY OF KITCHENER 5. DEPARTMENTAL PROJECT REFERRALS TO THE 200$-2017 CAPITAL FORECAST b) KITCHENER PUBLIC LIBRARY tCONT'D) Councillor J. Gazzola referred to the Radio Frequency Technology inquiring as to the savings to be achieved as a result of the new technology. Ms. Lewis advised that savings were outlined in the business case previously presented to Council and agreed to provide an extract of the information for budget day. At the request of Mayor C. Zehr, Ms. Lewis agreed to pursue discussions with Financial Services staff in regard to implementing similar budgeting practices to that of the City, whereby a fixed amount would be budgeted annually to be drawn on as needed for the technology upgrades. On motion by Councillor K. Galloway - it was resolved: "That the following capital projects be included in the 2008-2017 Capital Forecast for consideration by the Finance and Corporate Services Committee as part of the 2008 budget deliberations, as outlined in the Kitchener Public Library's report, dated October 30, 2007: Capital Proiect Proiect Cost Proiect Year Forest Heights HVAC Unit KPL Accessibility Fund Library Automation System Replacement Main Library Boiler Replacements Main Library Variable Speed Drives Pioneer Park Furnace Unit Radio Frequency Technology Technology Upgrade $ 25,000 2013 $ 131,000 2013-2017 $ 700,000 2013-2014 $ 65,000 2014 $ 40,000 2014 $ 25,000 2017 $ 450,000 2012 $ 267,000 2015-2017" c) CAO-07-050 -CHIEF ADMINISTRATOR'S DEPARTMENT The Committee considered Chief Administrator's Office report CAO-07-050, dated October 17, 2007 regarding capital projects proposed to be included in the 2008-2017 Capital Forecast. Ms. C. Ladd advised that an additional $200,000. is requested to be added in 2008 for detailed design and specific site selection for two entrance features on Highway 401, for a total budget of $400,000. $250,000. is requested to be added in 2008 for redevelopment of the City's website. It was noted that an approach has not been fully defined for the website redevelopment but may either be completed by appointing a project manager for a period of two years or issuing a Request for Proposals for retention of a consultant. Mr. M. May advised that currently within Information Technology's budget there is $84,300. for website maintenance. He added that the project estimate was based on discussions within the industry and staff has targeted an amount determined to be sufficient to cover either approach taken. It was noted that hiring a consultant would shorten the length of time required to complete the project to within a 4-6 month timeframe. Mr. May added that recognizing Council's desire for improvements, a number of short-term improvements have been identified and will be completed by staff as soon as possible. Councillor J. Gazzola raised concerns with including a dollar amount in the capital budget at this time, when an approach on redevelopment of the website has not been decided on. Mr. M. May advised that the City currently has 9 websites being co-maintained by Information Technology and Communications and in addition, there are a number of Content Administrators across the Corporation. Mr. M. Grummett advised that the current budget has approximately $50,000 remaining this year and the budget does not compound yearly, with any unused portions returned to FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 5, 2007 - 160 - CITY OF KITCHENER 5. DEPARTMENTAL PROJECT REFERRALS TO THE 200$-2017 CAPITAL FORECAST c) CAO-07-050 -CHIEF ADMINISTRATOR'S DEPARTMENT the City at year end. He added that the proposed $250,000. is to escalate redevelopment of the website. Councillor J. Gazzola requested that information on the cost to operate the website be provided for budget day. Ms. C. Ladd pointed out that the redevelopment of the website will require a business case and suggested that the impact on operating costs be incorporated into the business case. She added that some funding is required in 2008 in order for staff to at least begin the process of redeveloping the site. Councillor J. Gazzola raised similar concerns with respect to adding in the proposed funding for the entrance feature signs as true cost estimates are not yet known. Ms. T. Marr advised that the projected estimate is based on comparison of what other municipalities have paid for entrance features. She added that based on the cost comparisons, staff is of the opinion that what could be developed from the existing budget of $200,000. would not meet Council's expectations for the two proposed signs. Councillor J. Gazzola stated that he was not opposed to the two projects, however, was of the opinion a decision on adding funding in the Capital Forecast should not be made until it is known what amounts will really be needed. On motion by Councillor C. Weylie - it was resolved: "That the following capital projects be included in the 2008-2017 Capital Forecast for consideration by the Finance and Corporate Services Committee as part of the 2008 budget deliberations, as outlined in Chief Administrator's Office report CAO-07-050: Capital Project Project Cost Project Year 401 Signage $ 200,000 2008 Website Redevelopment $ 250,000 2008" d) CSD-07-101 -COMMUNITY SERVICES DEPARTMENT The Committee considered Community Services Department report CSD-07-101, dated October 26, 2007 regarding capital projects proposed to be included in the 2008-2017 Capital Forecast. Ms. A. Pappert advised that $375,000. over 2013-2017 is requested to be added for a general provision project and pre-planning fund for the Department to support completion of outstanding `paused' Leisure Facilities Master Plan (LFMP) recommended actions and provide funding for staff to proactively investigate opportunities /ideas arising during the calendar year. $80,000. is requested in 2017 for replacement of the sound system at the Kitchener Memorial Auditorium Complex (KMAC). $56,000. in 2008 and $75,000. in 2013 is requested for installation of 14 Automated External Defibrillator (AED) units for City facilities and unit replacement costs. It was noted that if the City is successful in receiving grant funding from the Heart & Stroke Foundation Public Access Defibrillator program, the City's costs will be reduced accordingly. $150,000. is requested in 2012 for Kitchener's 100th Anniversary as a City. $100,000. is requested in 2008 to advance recommendations in the Cemetery Strategic Plan to initiate a design and business plan proposal for Phase II of the Williamsburg Cemetery. Ms. Pappert noted that the LFMP provision account of $213,000. to complete short term actions is running a shortfall but expected funding from the City of Waterloo should balance the fund at year-end. At the request of Councillor J. Gazzola, Ms. Pappert agreed to provide a list of the outstanding action items relative to the LFMP for budget day. Mayor C. Zehr inquired if the City is obligated to operate cemeteries. Ms. L. Eckel-Braun FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 5, 2007 - 161 - CITY OF KITCHENER 5. DEPARTMENTAL PROJECT REFERRALS TO THE 200$-2017 CAPITAL FORECAST d) CSD-07-101 -COMMUNITY SERVICES DEPARTMENT tCONT'D) advised that the City is obligated to provide service for abandoned cemeteries and is why staff is of the opinion it is beneficial for the City to continue operation of the cemeteries. Mayor Zehr questioned if there is some other mechanism that could be explored through the business case to recoup some of the costs from fees over a period of years, so as not to be a burden on the tax levy. Ms. P. Houston provided suggestions related to an increase or surcharge on fees, or investigating the feasibility of operating the cemeteries as an enterprise. Mr. K. Baulk added that the issue of moving toward a more self-sufficient operation could be addressed as part of developing the business case, although he was uncertain how much of the capital costs would be recoverable. On motion by Mayor C. Zehr - it was resolved: "That the following capital projects be included in the 2008-2017 Capital Forecast for consideration by the Finance and Corporate Services Committee as part of the 2008 budget deliberations, as outlined in Community Services Department report CSD-07- 101: Capital Project Project Cost Project Year Administration General Provision Project /Pre Planning Auditorium Sound System Replacement Automated External Defibrillator Units City of Kitchener 100th Anniversary Celebratior Williamsburg Cemetery Phase II Development $ 375,000 2013-2017 $ 80,000 2017 $ 131,000 2008-2013 $ 150,000 2012 $ 100,000 2008" e) CRPS-07-137 -CORPORATE SERVICES DEPARTMENT The Committee considered Corporate Services Department report CRPS-07-137, dated October 18, 2007 regarding capital projects proposed to be included in the 2008-2017 Capital Forecast. Mr. T. Speck advised that $50,000. is requested in 2008 for exterior lighting in the City Hall Civic Square. It was noted that a consultant was retained to commence work in 2007 and the project estimate is preliminary pending completion of a design plan. $500,000. over 2008-2017 ($100,000. annually, representing an increase of $50,000. in each year of the 10 year forecast), is requested for interior renovations for various floors within City Hall. $50,000. is requested in 2008 to hire a consultant to lead the public process for a Ward Boundary review. Mr. L. Proulx advised that funds originally targeted to complete a parking study on the Market were used to hire a consultant for the exterior lighting in Civic Square as the Market study did not proceed. Mr. Proulx also commented on proposed interior renovations, advising that certain works are more costly than originally anticipated, such as cable installations for technological improvements and replacement of the original high quality finishes. Mr. R. Gosse commented on the Ward Boundary review, advising that a fresh approach is proposed for the review, primarily based on models undertaken in 2002 by the Cities of Ottawa and London. It was noted that the City of Ottawa was required by Order of the Ontario Municipal Board to completely redo their original process and subsequently, the resultant successful process has become a model for other City's to use. He added that staff is of the opinion hiring a consultant is appropriate for integrity of the public process. Councillor J. Gazzola requested to be recorded as opposed to the additional funds requested for Interior Renovations in City Hall, as it was his opinion not enough information was provided as to the need for the funding. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 5, 2007 - 162 - CITY OF KITCHENER 5. DEPARTMENTAL PROJECT REFERRALS TO THE 200$-2017 CAPITAL FORECAST e) CRPS-07-137 -CORPORATE SERVICES DEPARTMENT tCONT'D) On motion by Mayor C. Zehr - it was resolved: "That the following capital projects be included in the 2008-2017 Capital Forecast for consideration by the Finance and Corporate Services Committee as part of the 2008 budget deliberations, as outlined in Corporate Services Department report CRPS-07- 137: Capital Proiect Proiect Cost Proiect Year Exterior Lighting -City Hall $ 50,000 2008 Interior Renovations -City Hall $ 500,000 2008-2017 Ward Boundary Review $ 50,000 2008" f) DTS-07-167 -DEVELOPMENT & TECHNICAL SERVICES DEPARTMENT The Committee considered Development and Technical Services Department report DTS- 07-167, dated October 29, 2007 regarding capital projects proposed to be included in the 2008-2017 Capital Forecast. Mr. R. Browning advised that $550,000. in 2008 is requested for decorative lighting on Queen Street, between Highland Road and Courtland Avenue as part of the road reconstruction tentatively scheduled for 2008. This project may be deferred to 2009 if the road reconstruction does not proceed and the original estimate has been reduced from $800,000. to $550,000. as decorative lighting cannot be accommodated on most sections of the east side of Queen Street due to underground infrastructure. $1.8 M in 2008-2009 is requested for the Sandrock Trunk Sanitary Sewer, representing a 35% increase from the original budget, for a total budget of $4.8 M. $400,000. in 2008 is requested for Victoria Park Lake dredging and improvements, with $300,000. to be used to dredge a portion of the lake to address immediate sedimentation problems and $100,000. to be used to commence an Environmental Assessment to determine alternatives to improve the overall condition and function of the up-stream channel works along the Henry Sturm Greenway. $305,000. in 2008 is requested for repairs to the pedestrian bridge over Hwy. 7/8 between Boniface and Dixon Avenues. $200,000. in 2008 is requested for reconstruction of the existing stairs and walkway between Madison Avenue and Cameron Heights Collegiate as a barrier free walkway. $415,000. in 2009 is requested for upgrades to the Homer Watson Sewage Pumping Station to accommodate future development. $950,000. in 2008 is requested for upgrades to the Freeport Sewage Pumping Station to accommodate future development. $620,000. in 2008-2017 is requested for costs associated with ongoing planning studies and process mapping. Mr. G. Murphy advised that improvements to the Sandrock Trunk Sanitary Sewer have been on the list since 2001 and are required to address problems related to sewer back- ups along the trunk. The 35% increase is related to increases in construction costs, a major portion of which relates to the high cost of asphalt, petroleum and removal of contaminated soils. Mr. Murphy advised that further information will come forward to Council as part of a future report on the City's Accelerated Infrastructure program. Mr. Murphy commented on the Victoria Park lake project, pointing out that the costs to completely dredge the lake have escalated due to inflationary increases. Staff has recognized the need for regular maintenance but need to plan for associated costs to ensure funding is available to maintain storm water management facilities, not just at Victoria Park, but across the City. On motion by Councillor C. Weylie - it was resolved: FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 5, 2007 - 163 - CITY OF KITCHENER 5. DEPARTMENTAL PROJECT REFERRALS TO THE 2007-2016 CAPITAL FORECAST f) DTS-07-167 -DEVELOPMENT & TECHNICAL SERVICES DEPARTMENT tCONT'D) "That the following capital projects be included in the 2008-2017 Capital Forecast for consideration by the Finance and Corporate Services Committee as part of the 2008 budget deliberations, as outlined in Development & Technical Services Department report DTS-07-167: Capital Project Project Cost Project Year Queen Street Lighting $ 550,000 2008 Sandrock Trunk Sewer $1,800,000 2008-2009 Victoria Lake Dredging and Improvements $ 400,000 2008 Hwy 7/8 Pedestrian Bridge $ 305,000 2008 Madison Avenue Walkway $ 200,000 2008 Homer Watson Sewage Pumping Station Upgrade $ 415,000 2009 Freeport Sewage Pumping Station Upgrade $ 950,000 2008 Planning Studies $ 620,000 2008-2017" 6. DTS-07-166 -PRE-BUDGET APPROVAL -HIRING OF STAFF FOR FIRE STATION N0.7 The Committee considered Development and Technical Services Department report DTS-07- 166, dated November 5, 2007 concerning pre-approval of budget funds to hire firefighters to staff Fire Station No.7. Fire Chief T. Beckett advised that construction of Fire Station No.7 is scheduled to be completed in late December 2007. Accordingly, staff is requesting $1.6M be pre-approved for hiring of 20 firefighters, with a hire date of January 7, 2008. It is proposed that training will commence in the first full week of January with the goal to be fully staffed and operational at the start of March 2008. Pre-approval of funding is required as Council's budget day is not until February 4, 2008 which is after the recommended hire date. Fire Chief Beckett pointed out that approval to build Fire Station No.7 was given as a result of increased response times in the southwest portion of the City. Current response times in the area are between 9 to 12 minutes, which exceeds approved response times of 7 minutes or less achieved 90% of the time. It was noted that staffing costs for Fire Station No.7 will result in a property tax levy increase of 2%which was included in the overall pro-forma levy increase of 6.1% presented to the Committee in May 2007. Fire Chief Beckett responded to questions, advising that there has been no change in proposed staffing levels or hiring timelines since approval to construct the new Fire Station. He noted that the station has been constructed in such a way that future option is open to add on Emergency Medical Services (EMS); however, EMS has not made any decision as yet in this regard. He stated that for public safety it is staff's view the only option is to have the new Fire Station operational and regular site meetings indicate construction is on target for completion in December 2007. On motion by Councillor K. Galloway - it was resolved: "That budget funding be pre-approved in the amount of $1,669,676. (Salaries and Benefits) for the hiring of 20 firefighters to staff Fire Station No.7, with a hire date of January 7, 2008." 7. DTS-07-170 -STREET LIGHTING ENERGY COSTS The Committee considered Development and Technical Services Department report DTS-07- 170, dated October 31, 2007 concerning electricity costs related to street lighting. Mr. J. McBride explained that the City pays $1.1 Min electricity costs for street lighting annually. The actual rate the City pays for electricity is determined twice a year by the Ontario Energy Board (OEB) and under a Regulated Price Plan (RPP) is applied to public sector groups. As energy consumption for street lighting typically occurs during off peak hours (evenings) there is opportunity to achieve significant savings by opting out of the RPP and FINANCE & CORPORATE SERVICES COMMITTEE MINUTES NOVEMBER 5, 2007 - 164 - CITY OF KITCHENER 7. DTS-07-170 -STREET LIGHTING ENERGY COSTS tCONT'D) taking advantage of actual spot market rates. Mr. McBride stated that if the City had opted out in 2007 savings would have been realized between $193,000. to $295,000. It was noted that there is minimal risk in separating the street lighting electricity supply from the RPP since most volatility in supply of electricity is related to peak demand periods during the day. The remainder of the City's buildings would still be covered under the RPP rate established by the OEB. Mr. McBride noted that the regulated price for electricity dropped on November 1, 2007 to $0.59; however, even with the reduced RPP rate the City would still realize a savings by opting out of between $150,000. to $250,000. He advised that if approved to opt out of the RPP, a rebate will be owed to the City by the OEB amounting to approximately $30,000. In addition, opting out will require the assistance of an independent energy provider for the purchase of electricity and staff recommend ECNG Energy. Mr. McBride responded to questions, advising that $150,000. is the minimum savings expected to be achieved and a conservative approach is recommended at this time in regard to removing this amount from the street lighting electricity index as opposed to the maximum potential savings. He added that the City of Waterloo is going through the Association of Municipalities of Ontario's (AMO) provider; however, staff is recommending ECNG as they are not tied to a specific supplier whereas AMO is tied to a specific supplier through a tender process. Mr. McBride agreed to undertake discussions with Waterloo to determine their interest in partnering with Kitchener but pointed out that Kitchener has already achieved competitive pricing with ECNG. On motion by Councillor C. Weylie - it was resolved: "That the City opt out of the Regulated Price Plan for the purchase of electricity related to the street lighting system as defined by the Ontario Energy Board; and, That the City purchase electricity related to the street lighting system on the spot market; and, That the City enter into an agreement with ECNG Energy L.P. to solicit and manage energy contracts for the purchase of electricity for street lighting for a term of one year, to the satisfaction of the City Solicitor; and further, That electricity costs related to street lighting be reduced by $150,000 for the 2008 budget year." 8. PELLET GUNS At the request of Mayor C. Zehr, staff was directed to investigate whether or not the City has jurisdictional authority to impose a ban on the sale of pellet guns within the municipality, with a report to come forward to a future Finance & Corporate Services Committee meeting. 9. ADJOURNMENT On motion, the meeting adjourned at 4:30 p.m. Janet Billett Committee Administrator