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HomeMy WebLinkAboutFinance & Corp - 2002-12-02 SFINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 2, 2002 CITY OF KITCHENER The Finance and Corporate Services Committee met this date in special session, commencing at 9:07 a.m., chaired by Councillor B. Vrbanovic with the following members present: Mayor C. Zehr and Councillors M. Galloway, J. Gazzola, J. Smola and C. Weylie. Councillor G. Lorentz was in attendance for part of the meeting. Others Present: Ms. P. Houston, Ms. G. Luciantonio, Ms. A. Tanner, Ms. S. McMorran, Ms. M. Walshe, Ms. D. George, Ms. S. Franzen, Ms. S. Henderson, Ms. S. McDonald, Ms. M. Brennan, Ms. R. Upfold, Ms. T. Crawford, Ms. D. Gilchrist, and Messrs. J. Fielding, R. Pritchard, G. Sosnoski, G. Stewart, F. Pizzuto, G. Gross, J. Grant, R. Browning, D. Trask, K. Baulk, D. Mansell, C. Pomeroy, M. Born, J. McBride, G. Borovillos, M. Hauser, M. Bolger, B. Musselman, L. Proulx, B. MacDonald, S. Saleh, R. Weber, G. Richardson and L. Lynch. Councillor B. Vrbanovic welcomed Councillor J. Gazzola to Council and this meeting. Mayor C. Zehr advised that Councillor J. Gazzola was legally sworn in earlier this morning to allow his participation in the decision making process. He further advised that a more public swearing in ceremony will be held on December 9, 2002, at the start of the regular Council meeting. 1. 2003 CAPITAL BUDGET and 10 YEAR CAPITAL FORECAST The purpose of this special meeting was to review the 2003 Capital Budget and 10 Year Capital Forecast (2003-2012) as recommended by the Administrative Review Committee. Ms. P Houston provided an overview of the Capital Budget and Forecast noting staff have used the following percentages: assessment growth - 1% (2003) and 2% (2004-2012); debt (10 year term) - 7%. She advised that contributions from the taxbase to the Capital Forecast have been reduced by $1M each year of the forecast, compared to the 2002 Forecast. Ms. Houston then reviewed the City's Capital Policy. She advised that the revised capital base per average household in 2003 would be $150.41, as compared to $158.96 in 2002. Ms. Houston further advised that the City's per capita debt in 2001 was $104.00, compared to $28.00 in Cambridge and $588.00 in Waterloo. Ms. Houston then reviewed sources of funds in the Capital Pool. With respect to the Hydro Capital Investment Reserve Fund, Ms. Houston advised that staff recommend no transfers from this Fund to the Tax Stabilization Reserve Fund pending changes in Hydro Legislation. She then reviewed Capital Investment Categories and Funding Sources, advising the Administrative Review Committee is recommending $429M worth of projects over the 10 years of the forecast. With respect to the Development Charge Reserve Fund, Ms. Houston noted that for the 10 years of the forecast, staff have taken a more conservative approach to receipts. Also, a new Development Charges By-law will be required by legislation in 2004, which may impact the Capital Forecast. Concerning the deficit position shown for Development Charges Projects in the Capital Forecast, Ms. Houston advised that if the deficit situation is not rectified as the City proceeds through the Capital Forecast, certain projects will have to be eliminated. Ms. Houston then advised the 2003 Capital Budget and 10 Year Capital Forecast is currently in a balanced position, and any additions made to the Forecast by the Committee will require reductions in other area(s). She then reviewed the major project deferrals recommended by the Administrative Review Committee in order to achieve this balanced position. She provided the Committee with a list of projects they may wish to add to the Capital Forecast, as well as a list of projects which could be cut from the Forecast. Councillor G. Lorentz entered the meeting at this time. The Committee then proceeded to review highlights of the 10 Year Capital Forecast, department by department. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 27 2001 - 97- CITY OF KITCHENER 1. 2003 CAPITAL BUDGET and 10 YEAR CAPITAL FORECAST (CONT'D) Centre In The Square On motion by Councillor G. Lorentz - it was resolved: "That the 2003 Capital Budget and 10 Year Capital Forecast for The Centre In The Square be approved as recommended." Kitchener Public Library Mayor Zehr noted the 2004 allocation for "Main Library/Auditorium Upgrade", and recommended the City not commit to this upgrade until the future of the Main Branch is determined through the Library Headquarters Feasibility Study. Upon questioning, Ms. M. Walshe advised the Country Hills Community Library will be open to the public by the fall of 2004. Councillor J. Gazzola requested a report from Ms. Walshe by Budget Day providing details of the Technology Upgrade, being a new item in the Library's 10 Year Capital Forecast. On motion by Councillor M. Galloway - it was resolved: "That the 2003 Capital Budget and 10 Year Capital Forecast for Kitchener Public Library be approved as recommended, subject to consideration of removing the $100,000 allocation in 2004 for 'Main Library/Auditorium Upgrade' pending the outcome of the Library Headquarters Feasibility Study." Fire Department Mr. R. Browning explained funds allocated in 2005 are for the purchase of land for Fire Station #7, proposed for in the vicinity of Fischer-Hallman Road close to the Portuguese Club. Councillor M. Galloway noted the City owns land close to the intersection of Huron Road and Fischer-Hallman Road which may be suitable. On motion by Councillor M. Galloway - it was resolved: "That the 2003 Capital Budget and 10 Year Capital Forecast for the Fire Department be approved as recommended." General Expenses Ms. Houston noted that funds have been moved from "General Capital Contingency" to "Capital Project Administration and "Capital Project Costing Fund". The purpose of the "Capital Project Costing Fund" will pay the costs of studies or consultants in order to better determine the cost of capital projects. Staff were directed to provide Councillor J. Gazzola with a copy of the Capital Strategy which had recently been presented to Council. On motion by Councillor J. Smola - it was resolved: "That the 2003 Capital Budget and 10 Year Capital Forecast for General Expenses be approved as recommended." FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 27 2001 - 98- CITY OF KITCHENER 1. 2003 CAPITAL BUDGET and 10 YEAR CAPITAL FORECAST (CONT'D) Strate,qic Services Department On motion by Councillor C. Weylie - it was resolved: "That the 2003 Capital Budget and 10 Year Capital Forecast for the Strate,qic Services Department be approved as recommended." Financial Services Department Mr. F. Pizzuto explained that a study is currently underway to determine the efficient use of City vehicles in order to reduce the required number of vehicles. Ms. Houston noted that as the study is still underway, staff made a decision not to replace any equipment, except for emergency situations, in 2003. On motion by Mayor C. Zehr - it was resolved: "That the 2003 Capital Budget and 10 Year Capital Forecast for the Financial Services Department be approved as recommended." Corporate Services Department Mr. L. Proulx was directed to provide details of City Hall Maintenance for 2005, estimated in the Capital Forecast at $216,000. The Committee questioned the $34,000 allocation in 2003 for 'Cleaning/Sealing Stone - City Hall' and was advised the green slate in the upper and lower rotunda has been damaged by food vendors participating in special events. Mr. Proulx stated the cleaning is for cosmetic and not structural purposes. Councillor Galloway advised that he is supportive of cutting the "Committee Room Chairs - City Hall" and the "Council Chamber Chairs - City Hall", which are included in the list of projects the Committee may wish to remove from the Capital Forecast, the total value over a 3 year period being $65,000. Councillor B. Vrbanovic questioned the allocation for "Benton Street Garage - Mtce" in the second half of the Forecast, when Council has not yet decided to build this garage. Councillor M. Galloway noted the significant increase in budget for the website, from $50,000.00 per year in the 2002 Capital Forecast, to $143,000.00 in this Forecast. Mr. M. Bolger advised there has been a significant change in the website from an information provider to service provider, which changes the cost of the service. Staff were directed to provide a breakdown of the website funding as proposed in the Capital Forecast, for Budget Day; the report to include a comparison of the City's website 5 years ago and the website we have today. Staff were also directed to provide Councillor J. Gazzola with previous staff reports with respect to the website. On motion by Councillor G. Lorentz - it was resolved: "That the 2003 Capital Budget and 10 Year Capital Forecast for the Corporate Services Department be approved as recommended; subject to: 1. receipt of a staff report on Budget Day concerning the City's website; and, receipt of a staff report concerning the $216,000. allocation for City Hall maintenance in 2005; and, 3. further consideration of Cleaning/Sealing Stone - City Hall; and, FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 27 2001 - 99- CITY OF KITCHENER 1. 2003 CAPITAL BUDGET and 10 YEAR CAPITAL FORECAST (CONT'D) further consideration of the budget allocation for replacing chairs in the Council Chamber and Committee Rooms; and, 5. further consideration of the construction of the Benton Street Garage." This meeting of the Finance & Corporate Services Committee recessed at 10:50 a.m. and reconvened at 11:04 a.m. with all members present. Community Services Department. Mayor Zehr questioned the allocation for Kitchener Memorial Auditorium Concession Upgrades, which Mr. Baulk advised are primarily in the Dom Cardillo Arena portion of the building and not the Twin Ice Pads. The intention is to bring these facilities to an acceptable standard, and to budget for continuous upgrades to aging equipment. Mayor Zehr directed staff to provide a report by mid- February containing a detailed plan as to how these funds will be spent. With respect to budget allocations for the Old Market, Mr. Pizzuto advised these are contingency funds in case the New Market opens later than anticipated. Mayor Zehr directed staff to provide updates in this regard as the year progresses. The Committee then discussed the Community Centre program, Councillor Vrbanovic noting funds for the Stanley Park Community Centre have been transferred to 2003-2004. Councillor Galloway questioned the transfer of funds for the Chandler-Mowat Community Centre to 2008-2009. Mr. Pizzuto advised that the Community Centre Feasibility Study presented in 2000 identified priorities for community centres: the first priority being Stanley Park, followed by expansions to the Victoria Hills Community Centre and Doon-Pioneer Park Community Centre. In the feasibility study the 4th priority is Chandler-Mowat, followed by a Downtown community centre. Due to budget restrictions and work Icad considerations, staff have moved some of these projects in the capital forecast. Councillor Galloway directed that the Chandler-Mowat Community Centre be brought forward in the 10 Year Capital Forecast by Budget Day, and Mr. Pizzuto agreed to present Council with a report in this regard for Budget Day. Mr. Pizzuto then reminded the Committee that in 2001, because of health concerns, the 2 portables which were the Chandler-Mowat Community Centre were removed and replaced with 4 portables, thereby doubling the size of the centre. Councillor J. Gazzola questioned the provision of a community centre in the Kingsdale area. Mr. Pizzuto advised that Kingsdale was not identified in the community centre feasibility study for a permanent community centre; although, the need for a portable building was identified and installed last year. The portable building is intended to last the community for a few years. Mr. Pizzuto suggested the community centre feasibility study be reviewed in 2005-2006. He also noted a leisure facilities master study is to be undertaken in 2003, and perhaps the priorities for community centre could be review with this study. Councillor G. Lorentz suggested the community centre allocation in 2008-2009 be specifically identified for the Chandler-Mowat Community Centre. He questioned the factors taken into consideration for the feasibility study and whether Chandler-Mowat Community Centre is a priority for this Council. Mr. Pizzuto advised that the priorities identified in the feasibility study were adopted by Council. Councillor C. Weylie questioned the allocation for equipment replacement for the Victoria Hills Community Centre in 2005 and 2010, noting that the Forecast indicates the addition to this centre is not to be built until 2011. She requested a report from staff detailing the equipment replacement by Budget Day. With respect to the Aquatics & Athletics Division Capital Budget and Forecast, staff were directed to provide Councillor Gazzola with previously considered reports on the Peter Hallman Ballyard. 2003 CAPITAL BUDGET and 10 YEAR CAPITAL FORECAST (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 27 2001 - 100- CITY OF KITCHENER Concerning the allocations in the 10 Year Capital Forecast for Chandler Yard Improvements, and Bramm Yard Improvements, the Committee questioned the need for these funds in light of recent discussions, and agreed to discuss this matter further later in the meeting. With respect to the funds allocated for the Leisure Facilities Master Plan, staff advised that a final report will be presented to Council before this project is commenced. Councillor M. Galloway questioned the reduction in funding for MacLennan Park Site Development, and directed staff to provide a report for Budget Day on the reduced funding in the Forecast for this project, as well as the long term ramifications. On motion by Councillor G. Lorentz - it was resolved: "That the 2003 Capital Budget and 10 Year Capital Forecast for the Community Services Department be approved as recommended, subject to the following: 1. the funds in 2008/2009 of the 10 Year Capital Forecast for Community Centres being allocated to a new Chandler-Mowat Community Centre; receipt of a staff report on or before Budget Day detailing the equipment replacements for the Victoria Hills Community Centre identified in 2005 and 2010 of the 10 Year Capital Forecast; 3. receipt of a staff report on or before Budget Day on the details and long term ramifications of the reduced funding for MacLennan Park Site Development; and, 4. further consideration of funding for Bramm Street and Chandler Yards Improvements." This meeting of the Finance & Corporate Committee recessed at 12:00 noon and reconvened at 12:38 p.m. with all members present except Mayor C. Zehr and Councillor G. Lorentz, who entered the meeting shortly after it reconvened. Development and Technical Services Department (except for the Fire Department) Mayor C. Zehr disclosed a pecuniary interest in "Stonegate Drive Slope Stabilization" listed on page 42 of the 2003 Capital Budget and 10 Year Capital Forecast, as he owns property on Stonegate Drive, and did not participate in any discussion or voting with respect to this matter. Councillor C. Weylie disclosed a pecuniary interest in the "Heritage Property Grant Program" listed on page 55 of the 2003 Capital Budget and 10 Year Capital Forecast, as she owns a property designated under the Ontario Heritage Act. The Committee was in receipt of Development and Technical Services Department report DTS-02- 280, dated November 26, 2002, providing development options for a parking garage at Benton and Charles Streets. Councillor Galloway recommended deleting the Benton Street Parking Garage from the 10 Year Capital Forecast and reallocating these funds to various infrastructure projects. When questioned, Mr. D. Mansell advised staff have a priority listing of infrastructure projects which could be added to the Capital Forecast if money was available. Ms. Houston cautioned that the $8M for the parking garage includes debenture funding and grant funding which may not be available to other projects. 1. 2003 CAPITAL BUDGET and 10 YEAR CAPITAL FORECAST (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 27 2001 - 101- CITY OF KITCHENER The Committee then considered the Capital allocation for Parking Garage Automation, which Mr. McBride advised has a 2-3 year payback period. Mayor Zehr directed that savings from the parking garage automation be clearly identified in the operating budget. Councillor Galloway noted, on page 35 of the Capital Forecast, a $55,000. allocation for Charles Benton Garage Lighting which should be removed from the forecast if the garage is not constructed. Councillor G. Lorentz questioned why the Voisin Greenway is not included in the 10 Year Capital Forecast. Mr. Gross advised of work which can be undertaken by staff to resolve the problem. Councillor Lorentz directed staff to report to the Community Services Committee in the spring on the Voisin Greenway. Councillor Weylie referred to Street Improvements on page 52 of the 10 Year Capital Forecast specifically "Martin St. - Benton to Peter" and directed staff to reconsider its placement in the Capital Forecast prior to Budget Day. Councillor B. Vrbanovic referred to "AUTOCADD" being a new project in the 10 Year Capital Forecast, questioning why it is not covered by the Computer Reserve Fund, which staff agreed to investigate. On motion by Councillor J. Smola - it was resolved: "That the amount of $260,000 in year 2004 of the 10 Year Capital Forecast for the 'Stonegate Drive Slope Stabilization' be approved." Mayor C. Zehr had previously disclosed a pecuniary interest in this matter as he owns property on Stonegate Drive, and did not participate in any discussion or voting with respect to this matter. On motion by Councillor J. Smola - it was resolved: "That the funding in the 2003 Capital Budget and 10 year Capital Forecast for the 'Heritage Property Grant Program' be approved. Councillor C. Weylie previously disclosed a pecuniary interest in this matter as she owns a property designated under the Ontario Heritage Act, and did not participate in any discussion or voting with respect to this matter. On motion by Councillor G. Lorentz - it was resolved: "That the 2003 Capital Budget and 10 Year Capital Forecast for the Development and Technical Services Department, excluding the Fire Department, be approved as recommended, subject to the following: 1. further consideration of the proposed Charles Benton Parking Garage, and the $55,000. allocation in Year 2006 of the 10 Year Capital Forecast for Charles Benton Garage Lighting; 2. further consideration of the timing for 'Martin Street - Benton to Peter' Street Improvements; and, 3. consideration of funding 'AUTOCADD' from the Computer Reserve Fund." 1. 2003 CAPITAL BUDGET and 10 YEAR CAPITAL FORECAST (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 27 2001 - 102- CITY OF KITCHENER Utilities When questioned by the Committee, Ms. Houston advised the possibility of combining Gas Utility and Hydro meter reading is being investigated at this time. On motion by Councillor J. Smola - it was resolved: "That the 2003 Capital Budget and 10 Year Capital Forecast for Utilities be approved as recommended." Items For Further Consideration The Committee further reviewed those matters identified throughout this meeting as requiring further consideration. With respect to chairs for the Council Chamber and Committee Rooms, identified in the Corporate Services Department Capital Forecast, Councillor Galloway suggested rotating chairs in these rooms, as some are not used regularly. He put forward a motion to remove the $65,000 for these chairs from the Capital Forecast, which was voted on and lost. On motion by Mayor C. Zehr - it was resolved: "That the total $65,000 allocation in the 10 Year Capital Forecast for new chairs in the Council Chamber and Committee Rooms be reduced to $15,000." On motion by Mayor C. Zehr - it was resolved: "That staff provide a detailed report on or before Budget Day with respect to the $34,000 allocation in Year 2003 of the 10 Year Capital Forecast for 'Cleaning/Sealing Stone - City Hall'." On motion by Councillor M. Galloway - it was resolved: "That consideration of 'Benton Street Garage - Mtce', as contained in the Corporate Services Department Capital Forecast, be deferred and referred to Budget Day." On motion by Councillor J. Smola - it was resolved: "That the Community Centre Feasibility Study (Monteith Report) be updated in 2005." The Committee then considered Development & Technical Services Department report DTS-02- 280, dated November 26, 2002, titled Charles & Benton Garage Development Options. Mayor Zehr commented that tenders received for this project are $4M in excess of the amount budgeted. Not going forward with the project at this time will allow an opportunity for discussions with the private sector on provision of parking in the Downtown. Mayor Zehr then referred to the road and infrastructure improvements report to be considered at the Development and Technical Services Committee meeting later this date. He requested that the capital forecast not be changed at this time, with respect to the parking garage; however, it may be determined that some of these funds be transferred to road and infrastructure improvements. 1. 2003 CAPITAL BUDGET and 10 YEAR CAPITAL FORECAST (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 27 2001 - 103- CITY OF KITCHENER Councillor Galloway stated Council has put a great deal of time and money into improving the Downtown, with the intention that the improvements would draw interest from the private sector. He agreed with Mayor Zehr that some of the funds from the proposed parking garage could be channelled to improvements in roads and aging infrastructure. Councillor J. Gazzola advised he would like to look more closely at private sector involvement in the Downtown. He suggested taking no action on the parking garage tender. Mayor Zehr cautioned that there were commitments with respect to parking made to some Downtown developments, and advised he could support not constructing the garage if these commitments can be met some other way. On motion by Mayor C. Zehr - it was resolved: "That no action be taken on Tender T02-063 for the Charles and Benton Parking Garage; and, That Council confirms its commitment to Downtown parking needs; and, That the $8.1M be retained in the Capital Budget to address Downtown parking and other capital needs of the municipality; and further, That staff review other options to achieve the development of a parking solution within the allotted funding." Carried Unanimously. On motion by Councillor M. Galloway - it was resolved: "That consideration of 'Benton Street Garage - Mtce' and 'Charles Benton Garage Lighting' be deferred and referred to Budget Day." On motion by Councillor M. Galloway - it was resolved: "That staff provide a detailed report on or before Budget Day concerning the City Hall Parking Garage repairs." Additional Capital Projects The Committee then considered the list, provided by staff, of those capital projects they may wish to add to the 10 Year Capital Forecast. Mayor Zehr directed staff to ensure a balanced Forecast including any items the Committee may add. On motion by Councillor J. Smola - it was resolved: "That 'Traffic Lights - Queen & Margaret' at a cost of $85,000 in 2003, be added to the 10 Year Capital Forecast." On motion by Councillor G. Lorentz - it was resolved: "That 'Hospital Parking Permit Program' at a cost of $28,000 in 2003 be added to the 10 Year Capital Forecast." 1. 2003 CAPITAL BUDGET and 10 YEAR CAPITAL FORECAST (CONT'D) FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 27 2001 - 104- CITY OF KITCHENER On motion by Mayor C. Zehr - it was resolved: "That 'Earth Week' at a cost of $26,000 per year, be added to the 10 Year Capital Forecast." Following discussion on Iow level pedestrian street lighting, Mr. Fielding agreed that staff will review this matter in conjunction with other infrastructure programs and report to Council. Councillor Vrbanovic directed that consideration of 'Emergency Preparedness', at a cost of $50,000 in each of 2003 and 2004 be deferred and referred to Budget Day. Mr. Sosnoski was directed to provide Councillor Gazzola with background information in this regard. Proiects For Removal From Forecast The Committee next considered the list, provided by staff, of those items it may wish to remove from the Capital Forecast. On motion by Mayor C. Zehr - it was resolved: "That the 2003 allocation of $40,000 for Chandler Yard Improvements and $36,000 for Bramm Yard Improvements be removed from the 10 Year Capital Forecast." The Committee considered staff report FCS-02-236, dated November 15, 2002, titled "Exploration of New Industrial Lands - West of Fischer-Hallman Road South of Bleams Road" submitted by the Director of Economic Development recommending a study of the feasibility of developing new industrial lands on the City's west side. On motion y Councillor G. Lorentz - it was resolved: "That the Terms of Reference attached to staff report FCS-02-236, pertaining to a study of the feasibility of developing new industrial lands on the City's west side in the area west of Fischer-Hallman Road and south of Bleams Road, be supported in principle and a consultant be retained to undertake the study; and, That a steering committee composed of select members of the Economic Development Advisory Committee and staff, be established to work with the consultant; and further, That funding at an upset limit of $50,000 be allocated in the 2003 Capital Budget toward all aspects of the project." 2. ADJOURNMENT On motion the meeting adjourned at 2:12 p.m. Dianne H. Gilchrist Committee Administrator