HomeMy WebLinkAboutFin & Corp Svcs - 2008-09-08FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
SEPTEMBER $, 200$ CITY OF KITCHENER
The Finance and Corporate Services Committee met this date, commencing at 10:05 a.m.
Present: Councillor B. Vrbanovic, Chair
Mayor C. Zehr and Councillors J. Gazzola, G. Lorentz, J. Smola, K. Galloway and C.
Weylie.
Staff: C. Ladd, Chief Administrator
P. Houston, General Manager, Community Services
D. Chapman, General Manager, Financial Services & City Treasurer
R. Browning, General Manager, Development & Technical Services
T. Speck, General Manager, Corporate Services
R. Gosse, Director of Legislated Services & City Clerk
S. Turner, Director of By-law Enforcement
R. Regier, Executive Director of Economic Development
W. Malcolm, Director of Utilities
P. Harris, Manager of Licensing
B. Nash, Manager of Customer Service
S. Wright, Manager of Downtown Community Development
C. Bluhm, Urban Investment Advisor
J. Billett, Committee Administrator
1. CRPS-0$-141 -REQUEST FOR VARIOUS VENDORSIACTIVITIES ON CITY
PROPERTY DURING OKTOBERFEST
- OCTOBER 9-19.200$
The Committee considered Corporate Services Department report CRPS-08-141, dated
August 26, 2008 concerning activities of K-W Oktoberfest Inc. on City property during the
Oktoberfest festival.
On motion by Councillor G. Lorentz -
it was resolved:
"That the request of K-W Oktoberfest Inc. to allow the following vendors and/or
activities to take place on City property be approved provided the necessary licenses,
including Health and Fire approval, are obtained:
• 1 Beer and Food Tent on Frederick Street
• 7 Food Vendors on Benton Street and one on Frederick Street
• 8 tents/stages/activity areas - 6 on Benton Street, 1 on King Street and 1 on
Frederick Street; and,
That those selling food provide proof of insurance naming the City as an additional
insured; and further,
That building permits for any tents, if required, are obtained."
2. CRPS-0$-142 -SOCIAL GAMING EVENT -CANADIAN TESTICULAR CANCER
ASSOCIATION -NOVEMBER 14. 200$
The Committee considered Corporate Services Department report CRPS-08-142, dated
August 26, 2008 concerning a request to hold a social gaming event.
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 Canadian Testicular Cancer Association to conduct a social gaming
event at the Kitchener Portuguese Club, 1548 Fischer-Hallman Road, Kitchener, on
November 14, 2008."
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3. CRPS-0$-143 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE
- K-W OKTOBERFEST EVENTS
The Committee considered Corporate Services Department report CRPS-08-143, dated,
September 2, 2008 concerning a noise exemption request.
In response to Councillor J. Gazzola, Mr. S. Turner advised that no significant complaints
have been received in recent years in regard to these events. Councillor C. Weylie added
that staff is preparing a report regarding noise exemptions for future consideration that will
include issues respecting Victoria Park events.
On motion by Councillor G. Lorentz -
it was resolved:
"That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be
granted to K-W Oktoberfest Inc. for a series of events being held at various clubs
between October 4 and October 18, 2008, as outlined in a letter from K-W Oktoberfest
Inc., dated August 12, 2008, attached to Corporate Services Department report CRPS-
08-143."
4. CRPS-0$-140 -AMENDMENT TO CHAPTER 467 (PUBLIC NUISANCES) OF THE
MUNICIPAL CODE
The Committee considered Corporate Services Department report CRPS-08-140, dated
August 25, 2008 concerning enactment of a by-law to amend c.467 (Public Nuisances) of the
Municipal Code.
On motion by Councillor G. Lorentz -
it was resolved:
"That the draft by-law attached to Corporate Services Department report CRPS-08-140
be enacted to amend Chapter 467 (Public Nuisances) of The City of Kitchener
Municipal Code."
5. FIN-0$-115 -DELTA PROJECT -PURCHASE ORDER EXTENSION
The Committee considered Financial Services Department report FIN-08-115, dated August
19, 2008 requesting an increase to the consultant purchase order for the DELTA project.
Mr. D. Chapman explained that an extension of the consulting purchase order will provide
additional approval for further consulting services as may be required through the final phase
of the DELTA project and will be funded from within approved project contingencies. He
added that staff is satisfied that contingencies are sufficient to allow the project to conclude
with no cost over-runs.
On motion by Councillor G. Lorentz -
it was resolved:
"That staff be authorized to increase Purchase Order #0701436 to IDS Scheer Canada
for consulting services related to the Delta Project by up to 20% from $2,016,200. up
to a limit of $2,419,440. plus G.S.T. to be funded from within the approved Delta
Project capital budget."
6. DTS-0$-131 - JOSEPH I GAUKEL STREET RECONSTRUCTION -PURCHASE ORDER
EXTENSION
The Committee considered Development and Technical Services Department report DTS-08-
131, dated August 18, 2008 requesting an increase in the purchase order to cover additional
construction costs.
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6. DTS-A8-131 - JOSEPH I GAUKEL STREET RECONSTRUCTION -PURCHASE ORDER
EXTENSION tCONT'D)
Councillor J. Gazzola requested further explanation, raising concerns with the amount of the
extension over and above the original purchase order. Mr. R. Browning advised that it was
his understanding that subsequent to uncovering the existing infrastructure the work required
was found to be more complex than expected resulting in additional costs. He agreed to
request Mr. G. Murphy, Director of Engineering, to provide Council with additional information
prior to the September 15, 2008 Council meeting.
On motion by Councillor J. Gazzola -
it was resolved:
"That the following recommendation contained in Development & Technical Services
Department report DTS-08-131 (Joseph / Gaukel Street Reconstruction - PO
Extension), be referred to the September 15, 2008 Council meeting, pending
additional information from staff:
`That the extension of an existing purchase order to Bell Canada be approved to
cover additional construction costs for the relocation of an existing bell
ductbank."'
7. CAO-A8-028 -DIGITAL MEDIA CONVERGENCE CENTRE
The Committee considered Chief Administrator's Office report CAO-08-028, dated September
3, 2008 requesting authorization to provide a letter of support for the Digital Media
Convergence Centre (DMCC) to Communitech as part of their grant application to Centres of
Excellence for Commercialization and Research (CECR) as a `Centre for Advancing
Canadian Digital Media (CACDM)'.
Mr. R. Regier introduced Messrs. Gerry Remers, President, Christie Digital; Ken Coates,
Dean of Arts, University of Waterloo; and lain Klugman, President, Communitech; in
attendance to answer questions. Mr. Regier advised that the field of digital media was
identified as second in priority within the City's Economic Development Strategy 2007-2010.
A digital media centre is proposed to be located within Downtown Kitchener as part of
Communitech's CACDM, in concert with the City of Stratford's development of the Stratford
Institute and other interested partners including educational institutions and the private sector.
The DMCC is estimated at a cost of $30M over a five year period and will offer access to the
most current visualization technology and business start-up services. The City is asked to
contribute $500,000., to be funded from the Economic Development Investment Fund (EDIF),
together with various in-kind services.
Mr. Regier advised that the deadline to submit the grant application is October 15, 2008 and
the letter of support from the City is required as part of the application to demonstrate
resources behind the project. He added that the business community has enjoyed success in
building a global position in the field of digital media and will play a significant role in the
success of this project.
Mr. K. Coates stated that the University of Waterloo is fully committed to the project, with a
broad level of support across varying research groups in the field of Arts and Sciences; citing
an example of the Health Sciences Campus. He added that the project is attractive in its
collaborative approach with activities of private companies.
Mr. Regier advised that letters of support from among the various partners (private/public)
represent their commitments, contingent on launch of the project. Mr. Coates advised that
through the application process academic institutions will make significant contributions
amounting to several million dollars, including in-kind services (faculty/graduate students'
time). Mr. G. Remers stated that Communitech will also contribute more than $1 M plus in-
kind services. Mr. Regier added that in addition to $20M in private sector funding, both the
Federal and Provincial governments is asked to make substantial contributions, ranging from
$10-20M; and the City of Stratford is contributing $10M. It was also noted that it is intended
that the Region of Waterloo will be approached to contribute as part of the funding process.
He pointed out that the DMCC will be a state of the art, multi-discipline centre, accelerating
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7. CAO-0$-02$ -DIGITAL MEDIA CONVERGENCE CENTRE tCONT'D)
innovation and creation of jobs; adding that it will put small businesses in the forefront of a
fast growing industry and foster economic spin-off. It was noted that $1 M was allocated in
EDIF to advance digital media and the City's contribution is a one-time grant, with future
operational costs for the DMCC to be funded by senior levels of government, academic
institutions and other private sector sources.
Mr. Regier advised that the DMCC requires sufficient land to accommodate an estimated
30,000 sq. ft. facility and initial investigations have determined that there is no City-owned
land suitable for this investment. He added that it is crucial that a facility be central within an
urban environment to capture the synergy of Downtown businesses and the City's support is
conditional on the DMCC being located in Downtown Kitchener. Mr. Regier suggested that if
funding acquisitions from senior governments is unsuccessful it would then become a matter
of scale, emphasizing that it is an important medium to the future economy that would warrant
a second look.
Mayor C. Zehr commented that the purpose of EDIF was to broaden the employment sector
by positioning for the new economy and by leveraging other source funding. It was his
opinion that this project meets the criteria of EDIF and is appropriate for an urban setting
within Downtown Kitchener.
Councillor J. Gazzola advised that he could not support the proposal, raising concerns that
not enough detail had been provided given the scope of the project. He added that the
concept ventures into the field of research and education, pointing out that the City has
already contributed substantially to area academic initiatives and suggesting that further
contribution was too much to ask of local taxpayers.
Mr. R. Regier pointed out that the City's investment in the University of Waterloo's Health
Sciences Campus has generated an estimated $300M in residential development alone
within the Downtown and commercial development is beginning to follow suit.
Mayor C. Zehr emphasized that the requested funding is not going to post secondary
education. He reiterated that pursuit of digital media is part of the City's Economic Strategy
and no additional funds are being asked of taxpayers as the funding exists within EDIF. He
added that the millions of dollars worth of development in the core would not have been
achieved without the City's investment in EDIF.
The following motion was Carried on a recorded vote, with Mayor C. Zehr and Councillors G.
Lorentz, J. Smola, K. Galloway, B. Vrbanovic and C. Weylie voting in support and Councillor
J. Gazzola voting in opposition.
On motion by Mayor C. Zehr -
it was resolved:
"That a letter of support for the "Digital Media Convergence Centre" (DMCC) be
authorized as part of a nationally significant Communitech funding application to
Centres of Excellence for Commercialization and Research (CECR) as the "Centre for
Advancing Canadian Digital Media"; and,
That specific only to this grant application:
^ an investment of $500,000. be authorized from the Economic Development
Investment Fund to be allocated for the purchase of specialized computing, digital
imaging, visualization and studio equipment required at start-up; and,
^ annual in-kind support for five years be authorized in the form of staff time
dedicated to supporting events, promotion and governance (DMCC board seat for
Mayor of Kitchener or designate) at the Digital Media Convergence Centre; and
further,
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7. CAO-0$-02$ -DIGITAL MEDIA CONVERGENCE CENTRE tCONT'D)
That this support is subject to full approval of a grant application to the Centre of
Excellence for Commercialization and Research, and is conditional on the DMCC
being located in downtown Kitchener."
8. CAO-0$-027- 200$ ADVISORY COMMITTEE REVIEW -FINAL RECOMMENDATIONS
The Committee considered Chief Administrator's Office report CAO-08-027, dated August 26,
2008 concerning recommendations for enhancement of the City's Advisory Committees. It
was noted that the recommendations were first tabled with Council on June 23, 2008 (report
CAO-08-021), at which time Council requested further consideration of the scope of the
nominating committee, the Chair/Vice-Chair model and four year appointment term.
Ms. C. Ladd advised that following further consultation with Council during the summer
recess, modifications were made to the original recommendations which now propose that:
the nominating committee will provide a list of screened, eligible nominees for Council's
consideration and Council will make a final decision as to appointments to Advisory
Committees; the Chair/Vice-Chair model will provide that a Council member sit as Vice-Chair;
and the term of appointments will be reduced from four to two years.
Concerns were raised with respect to the Chair/Vice-Chair model, in respect to the necessity
for a member of Council to act in a chair capacity. Councillor K. Galloway suggested that the
position should be left to a lay appointee to encourage community engagement. Councillors
G. Lorentz and J. Gazzola were of the opinion that members of Council should not be
precluded from either position and should remain open for the Committee to decide. The
previous model of Co-Chairs provided for a member of Council and a lay appointee to act as
peers in the role of Chairing a meeting and Councillor B. Vrbanovic suggested that this model
achieves the objective and maintains a working relationship between Council and the
Advisory Committee.
On motion by Councillor J. Gazzola, it was agreed to modify the staff recommendation in
report CAO-08-027 to provide that the Co-Chair system be replaced with a Chair and Vice-
Chairsystem where a member of Council may sit as either Chair or Vice-Chair.
Procedural issues concerning youth/cultural representation; cross appointments;
administration; and reporting channels was discussed and it was noted that procedural issues
will be further reviewed in a second phase prior to and in conjunction with the next term of
Council. Mr. R. Gosse agreed to provide information to area high-schools on the upcoming
appointment process to Advisory Committees.
On motion by Mayor C. Zehr it was agreed to modify the staff recommendation in report CAO-
08-027 to provide that clause 3.1 of Council Policy I-63 be amended by replacing the phrase
"8 consecutive years" with "6 consecutive years".
It was noted in the agenda that any recommendation from the Committee concerning this
matter would be considered at the special Council meeting to be held later this same date.
On motion by Councillor J. Gazzola -
it was resolved:
"That the recommendations contained in Chief Administrator's Office report, CAO-08-
021 (2008 Review of Advisory Committees), tabled for discussion on June 23, 2008,
be adopted as amended by replacing paragraphs 1 and 2 with the following:
"That Policy I-60 (Advisory Committees) be amended as follows:
• Compass Kitchener and the Cycling Advisory Committee be added as
Advisory Committees of Council;
• The Co-Chair system be replaced with a Chair and Vice-Chair system where
a member of Council may sit as either Chair or Vice-Chair; and,
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8. CAO-0$-027- 200$ ADVISORY COMMITTEE REVIEW -FINAL RECOMMENDATIONS
CONT'D)
That Policy I-63 (Appointments to Boards and Committees) be replaced with the
revised draft policy attached to Chief Administrator's Office report CAO-08-027,
as amended by deleting from clause 3.1 the phrase "8 consecutive years" and
replacing it with the phrase "6 consecutive years"."
9. CRPS-0$-144 - 2009 COUNCIL & STANDING COMMITTEE SCHEDULE
The Committee considered Corporate Services Department report CRPS-08-144, dated
August 29, 2008 concerning adoption of a 2009 Council and Standing Committee meeting
schedule. Three options were provided for the Committee's consideration, which take into
account a five week summer break and in varying degrees aligns with the Region of Waterloo
meeting schedule.
A motion by Councillor J. Smola to adopt Option 1, as modified to move the February 9
Standing Committees to February 2 and the February 23 Council meeting to February 9, was
subsequently withdrawn.
Mr. R. Gosse advised that Option 3 was preferred by staff as it provides one additional set of
Standing Committee/Council meetings to better manage issues coming forward.
Mayor C. Zehr proposed that Option 1 be adopted as modified by moving the March 9
Council meeting to March 23.
Mr. R. Gosse advised that the modification would create a two week gap between the
Standing Committee meeting date and the next Council meeting, whereas standard practice
is to have no more than one week in between.
On motion by Mayor C. Zehr -
it was resolved:
"That Option 1, attached to Corporate Services Department report CRPS-08-144 dated
August 29, 2008, as amended by moving the March 9 Council meeting date to March
23, be approved as the 2009 schedule of Council and Standing Committee meetings."
10. FIN-0$-127- INVESTING IN ONTARIO ACT GRANT
The Committee considered Financial Services Department report FIN-08-127, dated August
28, 2008 concerning development of a priority list of infrastructure projects to be funded from
the Investing in Ontario Act grant allocation received from the Province.
Mr. D. Chapman advised that the funding must be used for capital projects and given a
significant shortfall, focus is directed toward advancing the City's Infrastructure Program. He
acknowledged, however, that soft service initiatives are not precluded from eligibility and
agreed to consider same in preparing the list of priority projects to be considered by Council.
On motion by Councillor G. Lorentz -
it was resolved:
"That staff be directed to develop a list of priority infrastructure projects that could be
funded out of the lnvesfing in Ontario Acf grant allocation to the City in the amount of
$9,801,171.; and further,
That Council give consideration to the list of recommended projects as part of the
review of the Capital Forecast on November 24, 2008 and make a final decision during
budget approval on January 12, 2009."
11. FIN-0$-114- RENTAL WATER HEATER PROGRAM
The Committee considered Financial Services Department report FIN-08-114, dated August
8, 2008 concerning a proposed increase in rental water heater rates.
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11. FIN-0$-114- RENTAL WATER HEATER PROGRAM tCONT'D)
Ms. P. Houston advised that staff is seeking direction in regard to the practice of applying rate
increases and to implement new rates effective January 1, 2009. She noted that the rate
increase is coming forward at this time as consideration of the City's comprehensive review of
fees and charges in November does not provide sufficient time to have the new rates in place
by January 1, 2009.
Mr. W. Malcolm advised that rates have not increased for the majority of Kitchener Utilities
customers since 2001. New technological changes and maintenance issues necessitate an
increase to remain competitive and to continue to provide the type of customer service
preferred. Mr. Malcolm noted that staff conducted focus group sessions and undertook a
telephone survey, the results of which indicated that customers are generally pleased with the
service and prefer larger increases over longer periods of time to annual increases. It was
also noted that staff is also pursuing opportunity to partner with area home builders to
communicate the services provided by Kitchener Utilities.
Mr. Malcolm responded to questions, advising that currently rates are 23-48% below market
rates and if implemented the new rates would place Kitchener Utilities at approximately 30%
below market. He added that the purpose of the increase is to ensure optimal customer
service continues while still providing a reasonable return for the Corporation.
Mr. B. Nash provided further explanation of maintenance issues related to venting
installations, advising that failures in ABS venting required a change in standard to PVC, a
more reliable and stable product. He noted that conversion is taking place as units with
existing ABS venting require replacement; however, to address any safety concerns,
customers may have their units inspected free of charge.
Councillor G. Lorentz referred to the tankless technology and Mr. Malcolm advised that the
City is currently undergoing a new pilot program with 35 customers taking advantage of the
new technology at this time. Mr. B. Nash provided cost comparators, advising customers with
the new technology pay approximately $35. per month as compared to the existing at $15.
per month. He added that the units are high efficiency and the rates are higher because of
additional capital costs. Ms. P. Houston added that the capital costs are still too high for the
customer to realize payback from less fuel usage.
On motion by Mayor C. Zehr -
it was resolved:
"That the proposed rental water heater rates in Appendix 1 to Financial Services
Department report FIN-08-114, be approved effective January 1, 2009; and further,
That Kitchener Utilities maintain its competitive advantage by maintaining rates below
market but raise rates on a periodic basis based on the costs of the program while
continuing to provide a fair rate of return to the Corporation."
CAO-0$-023 - DOWNTOWN COMMUNITY IMPROVEMENT PLAN
- DRAFT MODIFICATIONS TO FACADE I INTERIOR LOAN PROGRAM
The Committee considered Chief Administrator's Office report CAO-08-023, dated September
2, 2008 concerning modifications to the Downtown Community Improvement Plan (DCIP) and
Council Policy I-535 (Combined Fagade/Interior Loan/Upper Storey Renovation Program).
The modifications will change the existing Downtown Fagade Improvement Loan Program to
a grant program.
Mr. C. Bluhm advised that under the current loan program property owners may receive up to
a $15,000. loan of which 15% is forgivable. The program is open only to building owners with
the loan amount tied to a lien on the property. The loan is repayed through a three stage
repayment plan over a period of five years, requiring extensive staff administration. 13 loans
have been issued, of which only two were of the type envisioned and accordingly, it is staff's
opinion that the program is not producing the desired results. A review of programs offered
by 16 municipalities of comparable sizes was conducted and staff now propose the following
changes to become effective January 1, 2009: change the program from aloan/grant to a
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12. CAO-0$-023 - DOWNTOWN COMMUNITY IMPROVEMENT PLAN
- DRAFT MODIFICATIONS TO FACADE I INTERIOR LOAN PROGRAM
tCONT'D)
straight grant program; offer grants to a maximum of $10,000. per fagade, not to exceed 50%
of the project costs and paid upon completion of work; open eligibility to
merchants/businesses as well as property owners; limit grants to exterior street fronting
facades/signage only; reserve a minimum of 70% of available annual grant funding for the
King Street fagades; and require improvements to meet the general intent of the City's
Downtown design policies and future King Street fagade guidelines. Mr. Bluhm advised that
the potential of the changes would include: a minimum of 60 projects from a total budget of
$600,000. over a five year period; with a minimum of $1.2M in total economic activity. The
changes are expected to accelerate positive change by attracting new businesses and private
sector investment. The next steps involve public consultation to be undertaken by the
Downtown Advisory Committee, Economic Development Advisory Committee and the
Kitchener Downtown Business Association; the latter of which has already done preliminary
testing with favourable response.
Councillor J. Gazzola inquired as to what the City expended on Downtown landscaping and
Mr. Bluhm advised that the most recent funding approved by Council was $8.8M. Councillor
Gazzola requested information on what other municipalities are expending on their Downtown
landscaping, suggesting that businesses should also contribute given the City has already
invested substantially. Councillor Gazzola inquired as to how funding would be applied and
Mr. Bluhm advised that applications would be reviewed to ensure that they meet the criteria
and those approved would receive a grant for half the cost of the improvements up to a
maximum of $10,000. Staff added that many businesses have expressed the desire to make
improvements to store-fronts but have not been able to do so under the existing program.
Mayor C. Zehr suggested that provision be made for the Fagade Improvement Program to be
reviewed in one year as part of the 2010 budget process to determine the impact of the
changes made.
On motion by Councillor C. Weylie -
it was resolved:
"That staff be directed to advertise a public meeting before the Finance and Corporate
Services Committee to consider the draft by-law to modify section 9.4 of the Downtown
Community Improvement Plan and revisions to Council Policy I-535 (Combined
Fagade Interior Loan /Upper Storey Renovation Program) proposing to modify the
existing Downtown Fagade Improvement Loan Program to a grant program, as
attached to Chief Administrator's Office report CAO-08-023, dated September 2, 2008;
and further,
That the impact of the proposed modifications to the Downtown Fagade Improvement
Loan Program be reviewed in one year as part of the 2010 budget process."
13. ADJOURNMENT
On motion, the meeting adjourned at 12:20 p.m.
Janet Billett
Committee Administrator