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HomeMy WebLinkAboutFin & Corp Svcs - 2008-03-31FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 31, 200$ CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 1:05 p.m. Present: Councillor B. Vrbanovic, Chair Councillors J. Gazzola, G. Lorentz, J. Smola, K. Galloway, and C. Weylie. Staff: D. Chapman, General Manager, Financial Services & City Treasurer T. Speck, General Manager, Corporate Services R. Browning, General Manager, Development & Technical Services P. Houston, General Manager, Community Services R. Gospe, Director of Legislated Services & City Clerk R. Lebrun, Director of Financial Planning & Reporting R. Regier, Executive Director of Economic Development M. May, Director of Communications /Marketing S. Turner, Director of By-law Enforcement J. Sheryer, Assistant City Solicitor P. Harris, Manager of Licensing B. Stever, Senior Financial Analyst J. Billett, Committee Administrator 1. CRPS-0$-042 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - KITCHENER GOSPEL TEMPLE The Committee considered Corporate Services Department report CRPS-08-042, dated March 25, 2008 concerning a noise exemption request. On motion by Councillor G. Lorentz - it was resolved: "That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to the Kitchener Gospel Temple at 9 Conway Drive for their Community Carnival and BBO on Saturday, April 19, 2008, between the hours of 9:00 A.M. and 5:00 P.M." 2. CRPS-0$-043 -SOCIAL GAMING EVENT -BETH JACOB CONGREGATION - JUNE 25.200$ The Committee considered Corporate Services Department report CRPS-08-043, dated March 25, 2008 concerning issuance of a Provincial lottery licence. On motion by Councillor G. Lorentz - it was resolved: "That the City of Kitchener has no objection to a Provincial Lottery Licence being issued to the Beth Jacob Congregation to conduct a social gaming event at the Beth Jacob Synagogue, 161 Stirling Avenue South, Kitchener, on June 25, 2008." 3. CRPS-0$-044 - OKTOBERFEST -CIVIC CELEBRATION The Committee considered Corporate Services Department report CRPS-08-044, dated March 25, 2008 concerning Oktoberfest celebrations. On motion by Councillor G. Lorentz - it was resolved: "That K-W Oktoberfest, to be held October 10-18, 2008, be proclaimed a period of Civic Celebration; and, That the City of Kitchener has no objection to a Special Occasion Permit being issued for the Oktoberfest Festhallen to be operated by Kitchener-Waterloo Oktoberfest Inc. during the period of Civic Celebration; and further, That this event be declared a Community Fesitval as it is a celebration of Kitchener's German heritage." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 31, 200$ - 65 - CITY OF KITCHENER CRPS-0$-041 -LIQUOR LICENCE REVIEW APPLICATION - LUCKY'S WINGS - 320 KING STREET WEST The Committee considered Corporate Services Department report CRPS-08-041, dated March 26, 2008 concerning a liquor licence review application for a restaurant to be known as Lucky's Wings located at 320 King Street West in Downtown Kitchener. The Committee was also in receipt this date of correspondence received from the Kitchener Downtown Business Association, as well as several Downtown businesses expressing opposition to the proposed liquor licence application. Mr. Justin Novak, applicant, advised that he was the owner of the business and did not understand why his liquor licence application to the Alcohol and Gaming Commission of Ontario (AGCO) was being reviewed by the City. He acknowledged previous concerns with the proposed location but stated that his business has no relationship to the previous business operation and his business should not be judged by actions of the previous operator. He noted that this is his first business venture and advised that he would not personally be serving alcohol as he has no professional experience in dispensing but rather has hired trained professional staff. He voiced the opinion his business was no different than other similar businesses in the Downtown and should not be treated differently. He added that the Kitchener Downtown Business Association has suggested a relationship to the previous business because the previous business name appears on his application. He pointed out, however, that it is a standard practice of the AGCO to state the last business of record on the application and his business would be reflected on the new liquor licence. He commented that if it was necessary he was prepared to take the matter to an AGCO hearing for resolution. Councillor J. Smola advised the delegation that pursuant to a resolution of Council, all applicants for a liquor licence in the Downtown are advised of Council's policy regarding their applications and requested to complete an information form for review by the City's Liquor Licence Application Review Committee (LLARC). In response to questions, Mr. Novak advised that he is leasing the property from Ms. Joan Dunn. He circulated this date a revised menu for the restaurant and advised that he was not prepared to change his hours of operation to provide that the business close by 12 midnight during weekends. He noted that he has future plans to consider an outdoor patio on King Street and/or to the rear of the business. He also advised that only the front restaurant/ lounge seating area is to be licenced and no other areas that have exit doors would be licenced. Mr. Novak advised that while he had not seen a copy of the City's standard agreement, he was familiar with same as seen displayed in another Downtown business. He re-iterated that he would not consider a closing hour of midnight, maintaining his business should not be judged differently from others currently operating in the Downtown. Ms. J. Sheryer advised that the Committee may make recommendations to either: not object to the application, provided the standard agreement is entered into by the applicant; object to the application and request an AGCO hearing; or not object to the application with additional conditions as may be agreed upon by the applicant. She added that the City has issued a business licence to the establishment and in future, should concerns arise in regard to the business licence the City may hold a licensing hearing to consider those matters. A motion by Councillor J. Smola was brought forward for consideration to oppose the application unless the applicant agrees to enter into the standard agreement with the following two conditions added: hours of operation to be Monday to Thursday, 9:00 a.m. to 9:00 p.m. and Friday to Sunday, 9:00 a.m. to 12:00 midnight; and the licenced area to be restricted to the front restaurant/lounge area comprising 2,550 square feet, with an occupant load of 180 persons with tables set for approximately 70 persons. Ms. J. Sheryer advised that notwithstanding the City's decision, the AGCO has authority in this matter and could choose to either: ignore the request of Council and issue the licence; discuss the City's concerns with the applicant to attempt to resolve the issues; or proceed to a hearing. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 31, 200$ - 66 - CITY OF KITCHENER 4. CRPS-0$-041 -LIQUOR LICENCE REVIEW APPLICATION - LUCKY'S WINGS - 320 KING STREET WEST tCONT'D) Councillor J. Smola stated that he would not be opposed to modifying his motion to provide for hours of operation Monday to Sunday from 9:00 a.m. to 12:00 midnight, but in light of past concerns at this location could not support weekend closings of 2:00 a.m. Mr. Novak advised that since his original application, the hours of operation have been revised to provide an earlier opening of 7:00 a.m. to allow breakfast to be served as reflected in the revised menu. Ms. J. Sheryer advised that the AGCO sets the hours of operation and all similar services have closing hours of 2:00 a.m. She cautioned that the agreement is voluntary and if not agreed to by the applicant could result in the AGCO choosing to not apply any conditions to the licence; and opportunity to have at minimum the conditions of the standard agreement applied may be lost. It was noted in the agenda that any recommendation from the Committee would be considered at the special Council meeting to be held later this date. Ms. J. Sheryer agreed to report to the special Council meeting this date, as to the name of the current property owner. Councillor J. Gazzola inquired as to why the matter must go to special Council this date and was advised that the deadline to provide the City's comments to the AGCO is April 3, 2008 and the next regular Council meeting is not until April 7, 2008. On motion by Councillor J. Smola - it was resolved: "That Kitchener Council opposes the application for a liquor license for Lucky's Wings restaurant located at 320 King Street West, applied for by Justin Novak (herein referred to as the "Applicant"), unless the applicant agrees to enter into an agreement with the City, including certain conditions of operating a licensed establishment as set out below; and further, That the Mayor and Clerk be authorized to enter into an agreement with the applicant should he be willing wherein the applicant agrees to abide by the following conditions and to request that they be added to his 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 30% monthly ratio of alcohol sales to gross refreshment sales (including food and other sundries) in other words, alcohol sales will be limited to 30% of gross refreshment sales; 4. to close the business and stop serving alcohol by 12:00 p.m. daily for the first year of operation; 5. to provide that only the main floor restaurant/lounge area, comprising 2,550 square feet with an occupant load of 180 persons and tables set for approximately 70 persons, be licensed; 6. 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 of Ontario and not to expand the establishment without the consent of the City's Council; 7. to comply with the Noise By-law and the Smoking By-law; and, 8. these conditions shall bind all successors, assigns and subsequent licence holders (if any)." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 31, 200$ - 67 - CITY OF KITCHENER 5. FIN-0$-040 -COUNCIL POLICY 1-605 tFINANCIAL -INVESTMENT) -AMENDMENT The Committee considered Financial Services Department report FIN-08-040, dated March 20, 2008 concerning amendments to Council Policy I-605 (Investment). The policy provides for investment of public funds in a manner that provides the highest investment return while protecting and preserving capital, maintaining liquidity, meeting the daily cash flow demands of the City and conforming to all legislation governing the investment of public funds. Mr. R. Lebrun highlighted proposed amendments to the City's Investment Policy that provide for an increase in eligible investments to allow greater diversification and specified distinction between short and long term portfolios. Credit rating criteria, as well as limitations and terms for investments were reviewed, as outlined in Schedules `A' to `D' of the policy, attached to report FIN-08-040. Staff responded to questions, advising that the City's long term debt obligations are issued by the Region of Waterloo, and as such, the City has no debt rating. The City is prohibited by legislation from direct investment in asset-backed securities, commercial paper or corporate debt where the City's long term debt obligations are unrated. On motion by Councillor J. Gazzola - it was resolved: "That the amended City of Kitchener Investment Policy (I-605) be approved, as attached to Financial Services Department report FIN-08-040." 6. FIN-0$-045 -CAPITAL ASSET ACCOUNTING IMPLEMENTATION The Committee considered Financial Services Department report FIN-08-045, dated March 26, 2008 concerning co-ordination of the City's Capital Asset Inventory Data Collection and Evaluation activities in support of the implementation of PSAB 3150 (Tangible Capital Assets). Mr. D. Chapman advised that the PSAB 3150 Project Manager left the City and without assigning additional resources to this initiative, the project will be at risk of not complying with legislative deadlines and Delta Project requirements. The Asset Accounting Work Group (AAWG) and Delta Project Joint Steering Committee is recommending that the City's consultant selection process be waived to allow the firm of Prior & Prior Associates Limited to be retained to continue co-ordination of this initiative. The firm is recommended for its previous experience in completing the 2007 Capital Asset Management Business Process Study for the City; their ability to begin immediately to mobilize a team to accelerate the project; prior work with LOKI, the provider of the City's Asset Management/Accounting tool, extensive knowledge of the City's GIS/data base structures and experience in completing and supporting other PSAB 3150 implementations; KPMG, Risk Advisor to the Delta Project, concurrence that responding quickly to fill the vacancy and hiring an experienced firm is desirable; and staff is satisfied that the firm's pricing is competitive, with proposed rates lower than rates paid to the firm for completion of the previous business process study. Mr. Chapman advised that staff is also requesting permission to dispense with providing May Interim Financial Statements to enable re-allocation of time spent on interim reporting to support asset inventory and evaluation activities. He pointed out that the most significant potential budget variance generally arising between January and May relates to Winter Control and staff have been asked to report to the May 5 Committee meeting with an update on this matter that would include discussion on budget variance mitigation. Mr. D. Chapman advised that the primary benefit of the PSAB 3150 is compilation of a consolidated inventory of the City's assets, which will provide a mechanism to monitor life cycles and improve capital budget planning in respect to maintenance and/or replacement. He pointed out that PSAB 3150 is a legislated requirement and therefore, the City is obligated to comply with implementation. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 31, 200$ - 6$ - CITY OF KITCHENER 6. FIN-A$-045 -CAPITAL ASSET ACCOUNTING IMPLEMENTATION tCONT'D) Councillor J. Gazzola advised that he could not support the recommendation, questioning the value of the initiative given the high cost and limited benefits to citizens and was not supportive of eliminating the May Interim Financial report. Mr. Chapman noted that the costs were approved as part of the project's business case and in lieu of the Project Manager leaving, staff is recommending retainment of the firm as opposed to an extension of the existing contract. Mr. Chapman added that it was likely in the event the tendering process was completed, that Prior & Prior would be the leading contender but re-iterated that this project is tied in with timing of the Delta Project scheduled for completion at the end of December 2008. Tendering for the Capital Asset Accounting Implementation Project would result in a loss of up to two months and accordingly, staff is recommending responding quickly to replace the Project Manager. Mr. Chapman advised that he has had no indication from senior levels of government that the PSAB 3150 Project would be delayed for any reason beyond the specified deadline. Councillor B. Vrbanovic questioned the feasibility of providing limited May Interim Financial Statements based on variances of more than 5%. Mr. Chapman suggested that the second paragraph of the recommendation could be revised to direct staff to prepare a Schedule I (Statement of Operations) as opposed to a complete interim statement, suggesting Schedule I would provide the most value. Each paragraph of the following motion was voted on separately and both paragraphs were Carried. On motion by Councillor J. Smola - it was resolved: "That the consultant selection requirements of the City's Purchasing By-law be waived and staff be directed to retain the firm of Prior & Prior Associates Limited to co-ordinate the City's capital asset inventory data collection and valuation activities in support of the implementation of PSAB 3150 -Tangible Capital Assets to an upset limit of $110,000; and further, That staff be directed to prepare only Schedule I (Statement of Operations) of the May interim financial statement in order to create capacity for Financial Planning & Reporting Staff to support inventory collection and valuation activities as well as report creation for the Delta Project. " 7. ADJOURNMENT On motion, the meeting adjourned at 2:00 p.m. Janet Billett, AMCT Committee Administrator