HomeMy WebLinkAboutFin & Corp Svcs - 2008-10-20FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
OCTOBER 20, 200$ CITY OF KITCHENER
The Finance and Corporate Services Committee met this date, commencing at 1:05 p.m.
Present: Councillor J. Smola, Vice-Chair
Mayor C. Zehr and Councillors J. Gazzola, G. Lorentz and K. Galloway.
Staff: C. Ladd, Chief Administrator
P. Houston, General Manager, Community Services
D. Chapman, General Manager, Financial Services & City Treasurer
T. Speck, General Manager, Corporate Services
J. Willmer, Interim General Manager, Development & Technical Services
R. Regier, Executive Director of Economic Development
S. Turner, Director of By-law Enforcement
R. LeBrun, Manager, Financial Planning & Reporting
W. Malcolm, Director of Utilities
M. May, Director of Communications/Marketing
G. Murphy, Director of Engineering
L. MacDonald, Director of Legal Services & City Solicitor
K. Weiss, Director of Business Development
C. Fletcher, Director of Facilities Management
R. Upfold, Director of Accounting
G. Hastings, Manager of Golf Courses
G. Hummel, Manager, Park Planning, Development & Operations
C. Goodeve, Committee Administrator
1. CRPS-0$-173 -LIQUOR LICENCE REVIEW APPLICATION
- EXHIBIT CAFE INC. - 10 KING STREET WEST
The Committee considered Corporate Services Department report CRPS-08-173, dated
October 10, 2008 concerning a liquor licence review application for a restaurant to be known
as Exhibit Cafe Inc., located at 10 King Street West, Kitchener.
On motion by Mayor C. Zehr -
it was resolved:
"That subject to the applicant entering into an agreement with the City including certain
conditions of operating a licensed establishment as set out below, that Council take no
action to oppose the application for a liquor license for Exhibit Cafe Inc. located at 10
King Street West applied for by Exhibit Cafe Inc. (herein referred to as the "Applicant");
and further,
That the Mayor and Clerk be authorized to enter into an agreement with the Applicant
should they be willing wherein the Applicant agrees to abide by the following conditions
and to request they be added to their licence if the Alcohol and Gaming Commission of
Ontario chooses to issue the licence:
1. to post in a conspicuous place and abide by the Downtown Licensed
Establishments Code of Conduct; and,
2. to become a member of the Kitchener Downtown Business Association's License
and Entertainment Committee and attend its meetings; and,
3. to abide by 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); and,
4. to stop serving alcohol by 12:01 a.m. daily in the first year of holding the liquor
licence and thereafter to stop serving alcohol by 2:00 a.m. daily; and,
5. 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, and not to expand the establishment without the consent of
the City's Council; and,
6. to comply with the Noise By-law and the Smoking By-law; and further,
7. these conditions shall bind all successors, assigns and subsequent licence holders
(if any)."
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2. FIN-A8-131 -NATURAL GAS RATES
The Committee considered Financial Services Department report FIN-08-131, dated October
10, 2008 concerning changes to the City's natural gas rates.
Mr. W. Malcolm advised that an increase in the supply component of the natural gas rates,
from $.280 to $.316 per cubic meter, is required to meet the projected gas costs for this year;
and, to ensure that the City's system gas program is not in an overall deficit position. He
stated that TransCanada Pipelines received approval from the National Energy Board (NEB)
to increase their rates and accordingly the transportation component of the natural gas rates
should be increased to 5.284 cents per cubic meter to reflect the rates now being charged by
TransCanada Pipelines. He noted that the combined impacts of the revised supply and
transportation rates are expected to produce an increase of 9.9% or approximately $100. per
year for the average residential customer.
In response to questions, Mr. W. Malcolm advised that typically natural gas prices are less
expensive during the summer months, however, that trend did not continue this year. He
stated that prices rose quickly and steeply between March and July when the bulk of the
City's purchasing for storage fill took place, adding that since that time, prices have fallen to
levels not seen during the past 2 years. He noted that staff have examined the possibility of
adding more storage space, so that is prices continue to decline the City would be able to
take advantage of that buying opportunity. Mr. Malcolm further advised that the supply
program is run on anon-profit basis and therefore if an equivalent rate increase was not
passed on, then the program would eventually be in a deficit position. He added that the
proposed 9.9% increase is taken on a cost recovery basis and any measures enacted to
mitigate its impact would create a deficit scenario.
Councillor J. Gazzola expressed concern with the size of the proposed increase and
requested that additional information be provided on the potential cost to the supply program
if TransCanada Pipelines' rate increase was not passed directly on to the City's natural gas
customers.
Mayor C. Zehr noted that in Financial Services Department report FIN-08-128, which is to be
considered later this date, it outlines that as of July 31, 2008 the Gas Utility is currently ahead
of its original budget expectations by approximately $1.4 million. He requested that staff
report back to the October 27, 2008 Council meeting with information as to why the Gas
Utility revenues are currently exceeding its budget by this large margin and how this
additional revenue would project over next year. In addition, he requested that information be
provided regarding the impact that the proposed supply component and transportation
component rate increases would each have on the Gas Utility's overall budget.
At the request of Mayor C. Zehr, it was agreed that consideration of the recommendation
contained in report FIN-08-131 would be referred to the October 27, 2008 Council meeting
pending the receipt of additional information from staff.
On motion by Mayor C. Zehr -
it was resolved:
"That the following recommendation contained in Financial Services Department report
FIN-08-131 (Natural Gas Rates), be referred to the October 27. 2008 Council
meeting, pending additional information from staff:
`That the supply component of the natural gas rates be increased to 31.6 cents
per cubic meter from 28.0 cents per cubic meter for system gas customers of
the City of Kitchener effective November 1, 2008; and further,
That the transportation component of the natural gas rates be increased to
5.284 cents per cubic meter from 4.114 cents per cubic meter for system gas
customers of the City of Kitchener effective November 1, 2008 to reflect the final
rates charged by TransCanada Pipelines as previously approved by the
National Energy Board."'
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3. FIN-0$-12$- AUGUST 200$ INTERIM FINANCIAL STATEMENTS
The Committee considered Financial Services Department report FIN-08-128, dated October
14, 2008 which provides an update on City spending and revenues compared to the 2008
budget and explains significant actual and projected variances as of August 31, 2008.
Mr. R. LeBrun advised that weather was the major contributor to the projected operating budget
deficit and year to date shortfalls in the enterprise statements. He added that after the
significant number of winter events in early 2008 led to a cost overage of $1.2M, the Corporate
Management Team undertook measures to fund the shortfall and / or reduce costs, which
resulted in a favourable reduction of $970,000. He pointed out that during June, July and
August, there were significant rainfall events and in July, the total rainfall was the highest in 20
years. The wetter season lead to: delayed opening of golf courses, lower summer golf course
revenue, higher equipment and wage costs on sports fields, reduced water revenue and
sanitary surcharge revenue from less lawn watering, and higher sewage processing from
increased inflow and infiltration rates in the sanitary sewers. He stated that with additional
shortfalls now being projected to the end of the year, it will be necessary to contain controllable
costs by undertaking such measures as maximizing gapping, reducing overtime, and
eliminating discretionary spending where possible.
Councillor J. Gazzola requested that additional information be provided prior to the October
27, 2008 Council meeting on the indicators that have led to the projection of the lower than
expected supplementary taxes. He then questioned why the Chief Administrator's Office
budget appears to have a surplus of approximately $250,000. and was advised that this is
due to budget verses actual timing differences and will correct by year end. Mr. R. LeBrun
outlined that the apparent surplus could be funds set aside for a particular project that was
not initiated as of when the interim financial report was drafted.
In response to questions regarding the variation in the total gross profit percentage for the City's
golf courses, Ms. P. Houston advised that those figures are not solely impacted by the goods
sold at the golf courses, but also include such things as staff wages. She noted that the
fluctuation in the total gross profit percentage is not uncommon for this time of year. Mr. G.
Hastings stated that the severe weather delayed the opening of the golf courses and led to
lower revenues. He noted that compared to previous years, the number of rounds of golf
played at each course is down by approximately 3,500. He added that there is hope that some
of those rounds will be recovered in the month of October. Councillor J. Gazzola requested that
additional information be provided detailing the reasons for the fluctuation in the golf courses
total gross profit percentage.
Mayor C. Zehr inquired as to the continuity of the figures for the Building Enterprise Reserve
Fund and Mr. R. LeBrun agreed to report back with the correct opening balance for the
Building Enterprise Reserve Fund prior to the October 27, 2008 Council meeting. Mayor Zehr
then referred to Schedule 6, regarding inflow and infiltration affecting sewage processing
costs, and asked for clarification. Councillor J. Gazzola asked to what extent the infiltration
problem has been quantified and if there is a plan to remedy it. Engineering staff are to
provide information before October 27, 2008 Council meeting.
In response to questions regarding the inclusion of local improvements in the operating
statements when they are capital in nature, Mr. D. Chapman advised that while local
improvement projects are now funded through the Capital budget the City used to fund them
directly from revenues, which led to their inclusion in the operating statements. He further
advised that a repayment schedule is set out in all local improvement by-laws outlining the
time period that those residents impacted by a particular project have to pay the
corresponding local improvement charge. He noted that it's not uncommon for repayments to
be amortized over 20 years and as the City must front end the cost of local improvements,
over time repayments can appear as revenues. However, they are actually equivalent to the
capital cost of the project. Mr. R. LeBrun added that rather than continually adjusting the
budget to reflect the amount of local improvement repayments anticipated to be collected in a
given year, staff hold the line on this item and as the amortization periods end, the local
improvement revenues decrease accordingly. Councillor J. Gazzola asked that additional
information be provided prior to the October 27, 2008 Council meeting regarding the
expenditures that correspond to the local improvement revenues.
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4. FIN-0$-132- 2009 FEES AND CHARGES
The Committee considered Financial Services Department report FIN-08-132, dated October
15, 2008 concerning a comprehensive review of proposed fees and charges for 2009. In
addition, the Committee was in receipt this date of revised 2009 Development and Technical
Services Department (Engineering) and (Planning /Engineering) fees for: condominiums,
other than vacant land; municipal consent plan review; and, administration and site
inspection.
Mr. R. LeBrun advised that when setting individual rates, departments consider a range of
factors including cost recovery, legislation, rates of other municipalities and market
conditions. He stated that departments were provided with a guideline for fee increases of
6% and, in general, most fees are increasing by that amount. He added that this rate of
increase helps to maintain parity with projected budget increases and also serves to mitigate
property tax increases. He stated that as outlined in report FIN-08-132, strategic fee
adjustments are being recommended in the following areas: cemetery operations, parking,
rental water heaters, and storm water management quality fee. He noted that a 6% increase
in fees and charges amounts to approximately $800,000. of additional revenue for the tax-
supported budget or 0.9% of the general levy.
In response to questions, Ms. K. Kugler stated that cemetery operations fee increases reflect
the current market and what other municipalities charge for those services. In response to
concerns regarding the potential confusion that could be caused by having all of the City's
golf course green fees posted at the same time, Ms. Kugler advised that only those green
fees that are relevant to a particular time of year are posted at any one time.
Mr. J. Willmer advised that the revisions to the Engineering and the Engineering /Planning
fees are resultant to discussions with the Waterloo Regional Home Builders Association. He
stated that subsequent to those discussions staff are recommending the elimination of the
"per unit fee" for condominium applications currently set at $58. Further, it was determined
that the originally proposed 15% inspection fee was unreasonably large for industrial,
commercial, institutional and most multi-residential developments. Therefore, staff are
recommending that it be changed to a flat rate site inspection fee to help facilitate the cost
associated with the staff time required to approve the site servicing permit. He added that an
issue paper will be brought forward during the 2009 budget deliberations for a new
Engineering staff position that is intended to be funded through the 40% increase to those
development application fees that involve Engineering review. He noted that this was also
supported by the Home Builders Association as the additional staff resource would help to
expedite the permit issuing process. He pointed out that if Council decided not to approve
the new staff position, then the 40% increase should be rolled back accordingly to 6%.
Ms. L. MacDonald advised that earlier this date staff became aware that the revisions to the
2009 Corporate Services Department (Legal) fees for encroachment agreements were
inadvertently omitted from the list of proposed fees and charges contained in the 2009
Comprehensive Fee Review attached to report FIN-08-132. She then reviewed the
amendments proposed for the 2009 encroachment agreement fees.
On motion by Mayor C. Zehr -
it was resolved:
"That the proposed fees and charges contained in the 2009 Comprehensive Fee
Review attached to Financial Services Department report FIN-08-132, with the
exception of building permit fees which will be considered at the regularly scheduled
meeting of Council on November 24, 2008, be approved, as amended to provide that:
a) Development and Technical Services (Engineering /Planning) - 2009 fee for
Condominium, other than vacant land, be adjusted as follows:
• application fee plus be set at $4,200.;
• per unit fee, previously set at $58., be removed;
• modification /exemption fee be set at $600.;
• registration fee be set at $1,360.; and,
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
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4. FIN-0$-132- 2009 FEES AND CHARGES tCONT'D)
b) Development and Technical Services (Engineering) - 2009 fee for Municipal
Consent Plan Review be set at $225.; and,
c) Development and Technical Services (Engineering) - 2009 Administration and Site
Inspection fee, be adjusted as follows:
• street fronting residential (per dwelling unit) fee be set at $150.;
• ICI and multi-residential (per lot or block) fee be set at $600.; and,
d) Corporate Services (Legal) - 2009 fees for all Encroachment Agreements, save and
except Downtown patios, be adjusted as follows:
• application fee be set $200.;
• processing fee be set at $170;
• annual fee calculated in accordance with the formula and terms outlined in
Corporate Services Department reports CRPS-08-093 and CRPS-08-150;
and,
That the Manager of Cemeteries be directed to forward the Cemetery Tariff of Fees
and Charges to the Ministry of Government Services -Cemeteries Regulation Unit for
filing; and further,
That Legal Services staff be directed to prepare the necessary by-laws to amend The
City of Kitchener Municipal Code Chapters for fees and charges pertaining to licensing,
planning applications, and Committee of Adjustment applications."
5. CRPS-0$-169 -REVIEW OF PARKING FINES
The Committee considered Corporate Services Department report CRPS-08-169, dated
October 14, 2008 concerning a proposed full scale increase in the City's parking fine
structure.
Mr. S. Turner advised that a full scale increase in the City's parking fine structure has not
taken place since 1996, while operating costs have increased incrementally each year. He
stated that staff are recommending an across the board increase of $5. for each violation,
except for 3 violations where an increase of $10. is being recommended. He added that
concerning the "snow event" parking prohibition, Council requested that staff examine the
possibility of relocating vehicles as opposed to seizing and taking them to a compound; along
with the feasibility of a 2 tiered fine structure to help offset some of the costs associated with
the towing /relocation activities. He stated that staff have determined that a 2 tiered fine
structure was not advisable and are recommending an $80. fine which will provide a level of
equality of treatment between all by-law offenders.
In response to questions, Mr. S. Turner advised that staff are proposing that Kitchener's
parking fine structure should gradually increase to bring it on par with what other local area
municipalities charge. He added that he is not aware of any proposed changes to the rates
currently being applied by the Cities of Waterloo or Cambridge. He stated that staff hope that
by applying the proposed fine to all vehicles found in violation of the "snow event" parking
prohibition, the overall fine revenue would help offset the City's towing costs. He noted that
staff will need to examine this issue at the end of the up-coming winter season to determine
its effectiveness in offsetting the towing costs.
Councillor G. Lorentz suggested that given the safety hazard posed by a vehicle parked in a
fire route, the fine for that infraction should be increased from the proposed $50. to $75.;
which would also bring it inline with what is charged by the City of Waterloo. Mr. S. Turner
advised that he has no concerns with increasing the fine for parking in a fire route to $75.
At the request of Councillor J. Gazzola, Mr. S. Turner agreed to provide information
comparing the fines collected over the past 3 years to the cost incurred by the City as a result
of issuing those fines.
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
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5. CRPS-0$-169 -REVIEW OF PARKING FINES tCONT'D)
It was noted that any recommendation arising from the Committee concerning this matter
would be considered at the special Council meeting to be held later this same date.
On motion by G. Lorentz -
it was resolved:
"That the proposed fine for parking in a fire route, as outlined in Appendix `A' of
Corporate Services Department report CRPS-08-169, be increased from the proposed
amount of $50. to $75.; and further,
That staff be directed to apply to the Minister of the Attorney General for approval of
the parking fine increases outlined in Appendix `A' of report CRPS-08-169, as
amended."
6. DEPARTMENTAL PROJECT REFERRALS TO THE 2009-201$ CAPITAL FORECAST
The Committee considered five department reports and a report from the Kitchener Public
Library (KPL), as outlined below, regarding referral of projects to the 2009-2018 Capital
Forecast.
Mr. D. Chapman advised that all new capital projects with budgets in excess of $50,000. are
referred to the 10-year Capital Forecast by resolution of Council It was noted that a decision
this date does not constitute a final decision on the projects but rather allows them to
advance to consideration as part of the 2009 budget deliberations.
a) FIN-0$-113 -FINANCIAL SERVICES DEPARTMENT
The Committee considered Financial Services Department report FIN-08-113, dated
September 30, 2008 regarding capital projects proposed to be included in the 2009-2018
Capital Forecast.
Mr. D. Chapman advised that Financial Services is recommending additional funds be
added throughout the Capital Forecast to accommodate the purchase of SAP, Cityworks
and RIVA software upgrades in relation to the Delta Project. In order to keep the software
current, capital funds are being allocated for a major system upgrade in 2014 in the
amount of $275,000. and $285,000. in 2018. It is being further recommended that
$50,000. be added to the Capital Forecast in both 2012 and 2016 to allow for periodic
upgrades of the Point of Sale system, which is being implemented in 2009. Due to
increasing regulatory and system functionality requirements and a significant backlog of
work, it is recommended that the 2008 level of funding ($1.6 million) be maintained for the
development and maintenance of the Tax /Utility System (CIS); and, inflated at a rate of
2% thereafter. In addition, staff are recommending the extension of the contract for the
CIS consultant (John Little) by 6 months to meet the technical requirements of Phase II of
the Gas Distribution Access Rules (GDAR) and the completion of "Multi-Tiered Delivery
Rates Project" by May 1, 2009; as compared to a completion date of September 2009 if
only internal staff resources were used. The budget for uncommitted water mains is
expected to increase for 2009 and 2010 as there are currently more demands on the
account because of increased infrastructure renewal. A pilot on trenchless rehabilitation
of water pipe is proposed in 2009 at a cost of $250,000., which will be funded through
water rates. He then reviewed the following list of water mains that are proposed for
replacement: Tyson Avenue ($80,000. in 2011), Bridge Street ($300,000. in 2009),
Victoria Street South ($350,000. in 2010), Frederick Street ($100,000. in 2010), and
Victoria Park ($125,000. in 2009). Funding for the Demand Side Management (DSM)
program originally included in the Capital Forecast at $200,000. per year is proposed to be
increased to $300,000. due to the increasing volumes for REEP energy audits, increase in
partnership opportunities with other energy service providers, increasing volumes for
furnace rebates and new rebates for tank-less water heaters. The current budget of
$100,000. annually for replacement gas mains has been doubled for all years, as more
funds are needed for those streets that require upgrading of the gas plant. An increase of
$100,000. has been included in all years of the Capital Forecast for new large meter
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6. DEPARTMENTAL PROJECT REFERRALS TO THE 2009-201$ CAPITAL FORECAST
a) FIN-0$-113 -FINANCIAL SERVICES DEPARTMENT tCONT'D)
installs to more accurately reflect the current level of activity related to oil to gas
conversions and the construction of new developments. Further, it is recommended that
$100,000. be added to the Capital Forecast in 2009 to fund new small meter installations
based on the projected requirements of the capital account.
In response to questions, Ms. R. Upfold advised that as the Delta project has been
implemented the complexities of this system have become more apparent and it is
estimated external assistance will be required for the first 2 upgrades. She added that this
additional cost was inadvertently missed when the project budget was originally
presented. She noted that it is anticipated that over time less reliance will be placed
on consultants as staff knowledge increases. Mr. D. Chapman further advised that the
Delta project is being implemented to replace technology that is over 2 decades old and
should significantly enhance the City's decision making ability for such things as asset
management. In addition, Kitchener Utilities was unable to mirror the Union Gas structure
of multi-delivery rates in 2008 due to system limitations, resulting in potential new revenue
being foregone by the Utility. He noted that the same issue can be anticipated in 2009 if
the functionality is not implemented on a timely basis.
Councillor J. Gazzola expressed concern with the proposed additions to the Capital
Forecast, noting that given the current economic climate the City should be looking to
reduce expenditures.
On motion by G. Lorentz -
it was resolved:
"That the following capital projects be included in the 2009-2018 Capital Forecast for
consideration by the Finance and Corporate Services Committee as part of the 2009
budget deliberations, as outlined in Financial Services Department rep ort FIN-08-113:
Capital Project Project Cost Project Year
SAP / Cityworks Software Upgrade $ 275,000 2014
$ 285,000 2018
Point of Purchase System Upgrade $ 50,000 2012
$ 50,000 2016
Development and Maintenance of the Tax /
Utility System (CIS) $ 100,000 2009
$ 32,000 2010
$ 164,000 2011
$ 298,000 2012
$ 532,000 2013
$ 545,000 2014
$ 556,000 2015
$ 565,000 2016
$ 565,000 2017
$ 1,914,000 2018
Uncommitted Water Mains $ 99,000 2009
$ 48,000 2010
Trenchless Pipe Rehabilitation $ 250,000 2009
Main Replacement -Tyson Avenue $ 80,000 2011
Main Replacement -Bridge Street $ 300,000 2009
Main Replacement -Victoria South $ 350,000 2010
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6. DEPARTMENTAL PROJECT REFERRALS TO THE 2009-201$ CAPITAL FORECAST
a) FIN-0$-113 -FINANCIAL SERVICES DEPARTMENT tCONT'D)
Main Replacement -Frederick Street $ 100,000 2010
Main Replacement -Victoria Park $ 125,000 2009
Demand Side Management $ 92,000 2009
$ 88,000 2010
$ 84,000 2011
$ 80,000 2012
$ 75,000 2013
$ 70,000 2014
$ 65,000 2015
$ 60,000 2016
$ 55,000 2017
$ 300,000 2018
Replace Gas Mains $ 102,000 2009
$ 104,000 2010
$ 106,000 2011
$ 106,000 2012
$ 108,000 2013
$ 110,000 2014
$ 112,000 2015
$ 114,000 2016
$ 117,000 2017
$ 238,000 2018
New Large Meter Installs $ 36,000 2009
$ 34,000 2010
$ 33,000 2011
$ 32,000 2012
$ 30,000 2013
$ 29,000 2014
$ 28,000 2015
$ 27,000 2016
$ 25,000 2017
$ 100,000 2018
New Gas Meter Sets $ 100,000 2009; and further,
That the contract for the CIS consultant (John Little) be extended by 6 months to June
30, 2009 to complete the "Multi-Tiered Delivery Rates Project" and assist wit h the
technical requirements for the Gas Distribution Access Rules (GDAR) Phase II."
b) CAO-0$-033 -CHIEF ADMINISTRATOR'S DEPARTMENT
The Committee considered Chief Administrator's Office report CAO-08-033, dated
September 24, 2008 regarding capital projects proposed to be included in the 2009- 2018
Capital Forecast.
Ms. C. Ladd advised that $20,000. in each of the following years 2010, 2013, 2016 is
being requested to conduct regular market salary comparisons for all groups at the City of
Kitchener to ensure that salary plans do not fall behind comparable market pay trends.
$40,000. is requested to be added in 2009 for an on- line recruiting system to improve the
internal and external recruitment process through increased automation and efficie ncies.
It was noted that the requested $40,000. represen ts the average cost of recruitment
software currently on the market.
Mr. M. May advised that the Capital Forecast currentl y includes a provision for $102,000.
for a print shop /collator in 2009 and $151,000. for a collator #2 in 2012. He stated that it
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6. DEPARTMENTAL PROJECT REFERRALS TO THE 2009-201$ CAPITAL FORECAST
b) CAO-0$-033 -CHIEF ADMINISTRATOR'S DEPARTMENT tCONT'D)
is proposed that these funds totalling $252,230. be reallocated to 2009, 2014 and 2017 to
accommodate the purchase of improved technology. He noted that equipment and
technology has changed since the original projects were initially approved resulting in the
need to move funds to reflect the acquisition of new equipment.
On motion by K. Galloway -
it was resolved:
"That the following capital projects be included in the 2009-2018 Capital Forecast for
consideration by the Finance and Corporate Services Committee as part of the 2009
budget deliberations, as outlined in Chief Administrator's Office report CAO-08-033:
Capital Proiect Proiect Cost Proiect Year
Market Salary Survey $ 20,000 2010
$ 20,000 2013
$ 20,000 2016
On-Line Recruiting System $ 40,000 2009; and further,
That the Corporate Communications budget for Print Shop /Collator in 2009 of
$102,000 and Collator #2 in 2012 of $151,000, be reallocated as follows:
Capital Project Project Cost Project Year
Financial reporting /billing software $ 40,000 2009
Colour copier replacement $ 93,000 2014
Black and white copier replacement $ 119,230 2017"
c) CRPS-0$-163 -CORPORATE SERVICES DEPARTMENT
The Committee considered Corporate Services Department report CRPS-08-163, dated
October 3, 2008 regarding capital projects proposed to be included in the 2009-2018
Capital Forecast.
Mr. T. Speck advised that $400,000. is requested in 2009 to address foundation leaks at
Rockway Senior Centre, noting that the project budget also includes landscaping and
upgrades to accessibility into the facility. He noted that over the next year, Facilities
Management staff will complete a comprehensive roofing assessment and update the
City's roofing projections. Accordingly, $2,250,000. over 2016-2018 is being requested for
roof replacements at various City facilities with a goal of replacing approximately 50,000
square feet of roofing per year. It is being further recommended that $725,000. be added
over 2014-2018 to enable the auditing of a target number of buildings annually to facilitate
the establishment of major component condition data, which in conjunction with lifecycle
benchmarks will be used to prioritize future retrofits. To address maintenance costs at
new and expanding community centres it is proposed that $70,000. be added to the
Capital Forecast from 2010-2018. He added that the responsibility for ongoing capital
maintenance and upgrades of the Kiwanis Park facility will be assumed by Facilities
Management as of 2009 and as such $165,000. has been included in the Capital Forecast
over 2009-2018. Mr. Speck outlined that in 2014, an Olympic sized pool is scheduled for
opening in Huron Park in the south end of Kitchener; accordingly, it is recommended that
$94,000. be added over 2014-2018 for the ongoing maintenance of the pool. He added
that by September 2009, Facilities Management staff will assume responsibility for
ongoing maintenance and retrofits at the Activa Twin Pad Complex. He stated that as
such, capital dollars in the amount of $511,000. will be needed in 2010 to 2018 to be
proactive in the ongoing maintenance of the building.
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6. DEPARTMENTAL PROJECT REFERRALS TO THE 2009-201$ CAPITAL FORECAST
c) CRPS-0$-163 -CORPORATE SERVICES DEPARTMENT tCONT'D)
In response to questions regarding the fundraising surplus for the Activa Twin Pad
Complex, Ms. K. Kugler advised that those funds are to be used towards user specific
amenities, which would not include costs for the ongoing maintenance of the building.
On motion by K. Galloway -
it was resolved:
"That the following capital projects be included in the 2009-2018 Capital Forecast for
consideration by the Finance and Corporate Services Committee as part of the 2009
budget deliberations, as outlined in Corporate Services Department report CRPS-08-
163:
Capital Proiect Proiect Cost Proiect Year
Foundation leaks - Rockway Senior Centre $ 400,000 2009
Roof -General Provision -Various City
Facilities $ 2,250,000 2016 - 2018
Replacements -Various City Facilities $ 725,000 2014 - 2018
Maintenance -Community Centres $ 70,000 2010 - 2018
F/M Maintenance - Kiwanis Park $ 165,000 2009 - 2018
Aquatics New Pool $ 94,000 2014 - 2018
Activa Twin Pad $ 511,000 2010 - 2018"
d) CSD-0$-0$3 -COMMUNITY SERVICES DEPARTMENT
The Committee considered Community Services Department report CSD-08-083, dated
October 15, 2008 regarding capital projects proposed to be included in the 2009-2018
Capital Forecast.
Ms. P. Houston advised that funding of $390,000. in 2018 is requested to replace the
dehumidification system in the Kitchener Memorial Auditorium Complex (The Aud). In
addition, $2,063,000. is requested over 2009-2015 to fund the expansion of the Bridgeport
Community Centre. To facilitate a more condensed approach to the construction of
McLennan Park it is proposed that funding in the 2014 Major Park Development account
be moved to 2015 and matching funds in the McLennan Park account be moved from
2015 to 2014. Further, a reallocation of Skateboard Park funding in the amount of
$50,000. and $500,000. in 2010 and 2011 be moved to 2014 and 2015, in order to make
available matching funding for the McLennan Park skateboard park in 2010 and 2011.
Funding of $10M ($5M in 2014 and $5M in 2015) is requested to build a district recreation
complex for the South Kitchener community, as identified in the 2005 Leisure Facilities
Master Plan (LFMP). Moreover, $200,000. is recommended to be added to the Capital
Forecast to complete a tree inventory of the City's active parkland. She noted that
$100,000. is requested in 2009 to complete a design report proposal and for costs
associated with the Shared Services Review with the City of Waterloo.
Mr. G. Hummel advised that the LFMP identified the need for 4 skateboard parks city-
wide, with one currently in place at the Aud and another proposed for McLennan Park in
2015. He added that 2 additional Skateboard Parks are allocated in the capital budget in
2011 and 2017; however, locations have not been approved. He noted that accelerating
the construction of McLennan Park was not considered within the context of the City's
park development backlog. He added that 4 to 5 parks are identified annually for
construction as a means of addressing that backlog.
Mayor C. Zehr request that information be provide prior to the 2009 budget deliberations
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6. DEPARTMENTAL PROJECT REFERRALS TO THE 2009-201$ CAPITAL FORECAST
d) CSD-0$-0$3 -COMMUNITY SERVICES DEPARTMENT tCONT'D)
as to the Park Fund expenditures over the last several years.
On motion by G. Lorentz -
it was resolved:
"That the following capital projects be included in the 2009-2018 Capital Forecast for
consideration by the Finance and Corporate Services Committee as part of the 2009
budget deliberations, as outlined in Community Services Department report CSD-08-
083:
Capital Proiect Proiect Cost Proiect Year
Auditorium Dehumidification $ 390,000 2018
Bridgeport Community Centre Expansion $ 2,063,000 2009 - 2015
McLennan Park $ 50,000 2010
$ 500,000 2011
$ 700,000 2014
Skateboard Parks $ 50,000 2014
$ 500,000 2015
Major Park Development $ 750,000 2015
South Kitchener District Park Development $10,000,000 2014 - 2015
Tree Inventory -Active Parkland $ 200,000 2014 - 2015
Williamsburg Cemetery Phase 2 Development $ 100,000 2009"
e) DTS-0$-151 -DEVELOPMENT & TECHNICAL SERVICES DEPARTMENT
The Committee considered Development and Technical Services Department report DTS-
08-151, dated October 15, 2008 regarding capital projects proposed to be included in the
2009-2018 Capital Forecast.
Mr. G. Murphy advised that $150,000. in 2009 is requested to upgrade the Homer Watson
Sewage Pumping Station. It was noted that currently there are a number of draft plan
applications that are coming forward within this service area and upgrades to this pumping
station are necessary to accommodate future development. It is recommended that an
additional $300,000. in 2009 be approved to complete detailed design work for the
recommended alternative for the Freeport Sewage Pumping Station. He added that
$600,000. in 2009 is requested to replace a section of sanitary sewer pipe which crosses
Highway 8 from Kingsbury Drive to Kingsway Drive, which was found to be sagging and
deficient in its capacity. $1 M is requested over 2009-2010 to allow for the extension of
Block Line Road from Hanson Avenue to Courtland Avenue. Further, to provide for the
start of construction in early 2009 of the extension of Wabanaki Drive from Goodrich Drive
to Wilson Avenue, funding in the amount of $2,556,555. has been included in the Capital
Forecast in 2009. $1 M is requested to be added for the Huron Road upgrade in 2009. In
addition, it is recommended that funding of $45,000. be provided in 2009 for the Cycling
Master Plan, which is a related initiative under the Transportation Demand Management
(TDM) program. It was noted that the Cycling Master Plan would proceed when matching
funds are secured from the Ontario TDM Municipal Grant Program. Mr. Murphy added
that $50,000. in 2009 is requested to undertake modifications to the traffic calming
measures on Heritage Drive.
In response to questions, Mr. G. Murphy advised that the occurrence of a number of
serious vehicle collisions on Heritage Drive has indicated that improvements to this
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6. DEPARTMENTAL PROJECT REFERRALS TO THE 2009-201$ CAPITAL FORECAST
e) DTS-0$-151 -DEVELOPMENT & TECHNICAL SERVICES DEPARTMENT tCONT'D)
roadway may help to address traffic safety concerns. He stated that while Transportation
Planning staff have not yet recommended a final preferred plan, it is evident that any
recommended action would include the removal of a significant portion of the existing
traffic calming measures already in place on Heritage Drive. He noted that the objective
of the Cycling Master Plan is to double the modal share of cycling as a percentage of trips
by all modes by 2016 through the promotion, design, funding and strategic implementation
of adequate cycling facilities in the City.
On motion by G. Lorentz -
it was resolved:
"That the following capital projects be included in the 2009-2018 Capital Forecast for
consideration by the Finance and Corporate Services Committee as part of the 2009
budget deliberations, as outlined in Development and Technical Services Department
report DTS-08-151:
Capital Proiect Proiect Cost Proiect Year
Homer Watson Sewage Pumping Station
Upgrade $ 150,000 2009
Freeport Sewage Pumping Station Upgrade $ 300,000 2009
Highway #8 Sanitary Sewer Crossing
(Kingsbury Drive) $ 600,000 2009
Blockline Road Extension from Hanson
Avenue to Courtland Avenue $ 1,000,000 2009 - 2010
Wabanaki Drive Extension $ 2,556,555 2009
Huron Road Upgrade $ 1,000,000 2009
Transportation Demand Management Initiatives $ 45,000 2009
Heritage Drive Traffic Calming Modifications $ 50,000 2009"
f) KITCHENER PUBLIC LIBRARY
The Committee was in receipt this date of Kitchener Public Library (KPL) report, dated
October 3, 2008 regarding capital projects proposed to be included in the 2009-2018
Capital Forecast.
Ms. Sonia Lewis, KPL, advised that previous capital forecasts reflected a budget cost of
$146,000. for the Pioneer Park HVAC Unit, which has been reduced $30,000. in 2009 as
a result of re-evaluation of the project scope requirements. She added that it is requested
that Fundraising Campaigns and Activities be adjusted to $161,000. in 2009 to enable a
larger percentage of capital campaign donations to be directed towards building costs,
rather than campaign administrative costs. She noted that previous capital forecasts
reflected a budget cost of $243,000. for the replacement of the oldest sections of the Main
Library roof; however, as a result of updated projections it is requested that the Capital
Forecast be revised to reflect a project cost of $270,000. in 2009.
In response to questions, Ms. S. Lewis advised that previous estimates for the Pioneer
Park HVAC Unit where based on a larger project scope similar to the Forest Heights
HVAC replacement undertaken several years ago. She added that replacement of
sections of the Main Library roof cannot be delayed until the Central Library Project nor is
it included in the projected construction costs. She noted that the requested Capital
Forecast adjustments do not change KPL's overall 2009 capital budget request from the
previous year, rather it is simply reflects a redistribution of funds.
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6. DEPARTMENTAL PROJECT REFERRALS TO THE 2009-201$ CAPITAL FORECAST
f) KITCHENER PUBLIC LIBRARY tCONT'D)
On motion Councillor K. Galloway -
it was resolved:
"That the following capital projects be included in the 2009-2018 Capital Forecast for
consideration by the Finance and Corporate Services Committee as part of the 2009
budget deliberations, as outlined in the Kitchener Public Library's report, dated October
3, 2008:
Capital Proiect Proiect Cost Proiect Year
Pioneer Park HVAC $ 30,000 2009
Fundraising Campaigns and Activities $ 161,000 2009
Main Library Roof $ 270,000 2009"
7. CAO-0$-03$ -YOUR KITCHENER MARKET UPDATE
The Committee considered Chief Administrator's Office report CAO-08-038, dated October
14, 2008 regarding the status of the implementation of the 2008 Short-Term Strategic Plan
for the Kitchener Market.
Ms. K. Weiss provided an update as to the implementation of the 20 strategic actions
contained in the 2008 Short-Term Strategic Plan for the Kitchener Market, which was
presented to the Community Services Committee on June 16, 2008. She advised that a
branding exercise is underway to develop a brand that is unique, memorable, and reflects the
direction of the new market. She added that public input is key to the branding process and
accordingly the initial phase included a public survey which ran from August 14 to September
3, 2008. She noted that input will also be obtained after developing the proposed brand
identity. In addition, a parking assessment is underway that is examining: availability,
accessibility, usage, signs, and marketing. Ms. Weiss further advised that a reduction in
expenses is expected for the year end 2008 and moving forward, the 2009 operating budget
has been reduced. She stated that staff will continue their assessment on an on-going basis
to identify further reductions as well as new opportunities to generate revenues; such as,
sponsorships. She added that beginning November 1, 2008 a further 2,500 square feet of
space will be leased to new vendors and research is currently underway to find a solution for
the upper level mini-market concept. She outlined that staff will be presenting the findings of
the branding study and proposed outcomes to Council in November 2008. She noted that it
is anticipated that all of the strategy components will be implemented, including the addition
of the upper level "mini-market", and the new Kitchener market will be launched by May 2009.
In response to questions, Ms. K. Weiss advised that the new vendors she referred to would
be operating during the week. She noted that the new brand identity would include: name,
tag line, logo, graphics, colours, images and fonts.
8. CRPS-0$-134 -MAINTENANCE SERVICES FOR CITY HALL ELEVATORS
The Committee considered Corporate Services Department report CRPS-08-134, dated
October 8, 2008 concerning an agreement for elevator maintenance services at Kitchener
City Hall.
Ms. C. Fletcher advised that the maintenance of the elevators at Kitchener City Hall was
provided by ThyssenKrupp Elevator (Canada) Ltd. up until 2006 when that servicing tender
was awarded to another firm. She added that an independent elevator consultant, Takamaki
Consultants Inc., was recently retained to examine the effectiveness of the firm currently
providing maintenance services for the elevators at City Hall. She stated that the consultant
found that the elevator maintenance service company has limited crews trained to service the
types of equipment installed at City Hall and given that City Hall's elevating system has been
obsolete for many years, it is unlikely that any more of their crews will be trained in this
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8. CRPS-0$-134 -MAINTENANCE SERVICES FOR CITY HALL ELEVATORS tCONT'D)
system. Ms. Fletcher noted that Takamaki Consultants concluded that most technicians
trained in this type of equipment are employed by ThyssenKrupp Elevator Ltd. and
contracting ThyssenKrupp Elevator Ltd. allows the City full access to expertise, parts, and
timely service. She commented that with this access, the consultants have indicated that the
life span of the elevating devices at Kitchener City Hall could be extended another 15 years.
On motion by Mayor C. Zehr -
it was resolved:
"That the Mayor and Clerk be authorized to execute an agreement, satisfactory to the
City Solicitor, with ThyssenKrupp Elevator (Canada) Limited for the procurement of
elevator maintenance services for Kitchener City Hall at a cost of $3,695. per month for
a period of 5 years commencing on October 28, 2008."
9 ADJOURNMENT
On motion, the meeting adjourned at 3:43 p.m.
Colin Goodeve
Committee Administrator