HomeMy WebLinkAboutFinance & Corp - 2003-01-20FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
JANUARY 20, 2003
CITY OF KITCHENER
The Finance and Corporate Services Committee met this date, chaired by Councillor B. Vrbanovic,
commencing at 2:40 p.m., with the following members present: Mayor C. Zehr and Councillors C. Weylie,
M. Galloway, G. Lorentz, J. Smola and J. Gazzola.
Officials Present:
Ms. P. Houston, Ms. L. MacDonald, Ms. C. Ladd, Ms. J. Billett and Messrs. R.
Pritchard, G. Sosnoski, H. Gross, D. Paterson, S. Turner, L. Bensason and L.
Masseo.
1. SSD-02-029 - CAPITAL PROJECT COSTING FUND
The Committee was in receipt of Strategic Services Department report SSD-02-029 dated
December 19, 2002 concerning establishment of a Capital Project Costing Fund to be used to
better define and manage capital projects and improve the City's ability to obtain the best value for
its investments.
On motion by Mayor C. Zehr -
it was resolved:
"That the Capital Project Costing fund be approved as identified in the City's Capital
Forecast 2003-2012; and further,
That any expenditures from the Capital Project Costing Fund be authorized by the
Project Administration Office."
2. DTS-03-014 - HERITAGE TAX REFUND PROGRAM
The Committee was in receipt of Development and Technical Services Department report
DTS-03-014 dated January 15, 2003 concerning establishment of a Heritage Tax Refund
Program to provide incentive for conservation of significant heritage building resources and
attract investor interest in historic commercial and industrial sites targeted for adaptive re-use.
Councillor C. Weylie disclosed a pecuniary interest and abstained from all discussion
pertaining to staff report DTS-03-014 as she is the property owner of a designated heritage
building.
Mr. Michael Cowie, Waterloo Warehouse Equities (Victoria) Limited, attended in support of
the staff recommendation and provided correspondence dated January 20, 2003 for
circulation this date. He advised that he was part owner of the designated heritage property
at 72 Victoria Street South. Mr. Cowie pointed out that the type of tax incentive program
proposed is common in the United States (US) and has resulted in a resurgence of historical
steel towns, manufacturing and textile centres in a number of US cities. He stated that
implementation of the Province's tax incentive program is needed to generate similar
redevelopment and preservation of heritage resources within Kitchener. He provided a brief
outline of benefits to be realized, including: rebates to building tenants resulting from realty
tax reductions; offset of liabilities associated with high risk profile tenants ("start-up
companies"); generation of expanded and new employment growth; and enhancement of
property values through renewed interest in redevelopement of heritage properties. Mr.
Cowie commented on concerns raised by other developers and suggested that long term
economic benefits to the community will far outweigh any associated costs. He further pointed
out that other developers also have opportunity to benefit from the program by including
purchase of heritage properties for redevelopment in their business portfolios.
Mr. Bill Green, Green Scheels Pidgeon Planning Consultants, attended on behalf of the
property owner of the designated heritage property at 410 King Street West (Kaufman
Footwear) and also as an interested tenant of 72 Victoria Street South. He advised that
substantial investment has been made in redeveloping 410 King Street West and it is
anticipated redevelopment will result in a significant increase in realty taxes to be applied to
the property. He stated that in his opinion, 410 King Street West is an excellent example of
why the program should be implemented and suggested that the program presents a
reasonable reward for redevelopment investment and preservation of heritage resources.
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2. DTS-03-014 - HERITAGE TAX REFUND PROGRAM (CONT'D)
Councillor M. Galloway advised that Heritage Kitchener was in full support of the staff
recommendation and on motion brought forward the recommendation contained in staff report
DTS-03-014 for consideration.
Mayor C. Zehr advised that concerns had been raised by the Economic Development
Advisory Committee (EDAC) with respect to implementation of this program and further
discussion is to take place at its meeting to be held on January 22, 2003. Accordingly, he
suggested that this matter be deferred pending receipt of input from EDAC.
On motion by Mayor C. Zehr -
it was resolved:
"That the following recommendation contained in Development and Technical Services
Department report DTS-03-014 be deferred and referred to the January 27, 2003
Council meeting for consideration:
'That a Heritage Tax Refund Program be established in accordance with the
Proposed By-law dated January 15, 2003, as attached to Development and
Technical Services Department report DTS-03-014, to provide a 40% tax refund of
the City and Educational share of property taxes levied on the eligible portion of a
heritage property in the Residential, Multi-Residential, Farm, Commercial and
Industrial property classes, subject to available funding; and,
That a limit of one heritage tax refund paid annually to a maximum of ten (10)
refunds be established for each eligible easement or preservation and
maintenance agreement in respect of an eligible heritage property in the Multi-
Residential, Commercial and Industrial property classes, subject to available
funding; and,
That funding for the Heritage Tax Refund Program be taken from the general
municipal levy; and further,
That the Regional Municipality of Waterloo be encouraged to pass a similar by-
law to enable the Region to provide a 40% tax refund of the Regional share of
property taxes to eligible heritage property in the Residential, Multi-Residential,
Farm, Commercial and Industrial property classes, subject to the same terms and
conditions established by the City of Kitchener.'"
Councillor C. Weylie previously disclosed a pecuniary interest and abstained from all discussion
and voting pertaining to staff report DTS-03-014 as she is the property owner of a designated
heritage property.
SSD-02-028
- STRATEGY FOR CONFIDENTIALITY OF INFORMATION POLICY &
CONFIDENTIALITY AGREEMENTS
The Committee was in receipt of Strategic Services Department report SSD-02-028 dated
November 27, 2002 concerning a strategy to deal with the existing Confidentiality of Information
Policy and signing of confidentiality agreements.
Mr. D. Paterson responded to a number of questions during which he commented on the purpose
of implementing the strategy, its relativity to existing legislation dealing with protection of privacy
issues and rationale for limiting the number of staff required to sign confidentiality agreements to
those in Human Resources, the Mayor's Office and Legal Services. Councillor B. Vrbanovic was
of the opinion that the number of existing staff required to sign agreements should not be limited
and provided examples of other Divisions not listed that deal with highly sensitive information.
Mayor C. Zehr suggested that the matter be deferred pending a review of existing staff
complement to identify an appropriate starting point for the signing of agreements. Mr. G.
Sosnoski advised that Freedom of Information legislation provides indexed listings that could be
SSD-02-028 - STRATEGY FOR CONFIDENTIALITY OF INFORMATION POLICY &
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CITY OF KITCHENER
CONFIDENTIALITY AGREEMENTS (CONT'D)
reviewed to determine appropriate City Divisions to be included. He further pointed out that all
new employees will be required to sign agreements as part of the employment process and over
time, the City will achieve signed agreements with all staff.
On motion by Mayor C. Zehr -
it was resolved:
"That Strategic Services Department report SSD-02-028 (Strategy for Confidentiality of
Information Policy and Confidentiality Agreements) be deferred and referred to the
February 3, 2003 Finance and Corporate Services Committee meeting for
consideration."
4. CRPS-03-009- LOT MAINTENANCE - 107 ACTIVA AVENUE
The Committee was in receipt of Corporate Services Department report CRPS-03-009 dated
January 15, 2003 in response to Council direction given at its meeting of January 13, 2003 to
consider an extension of time for the property owner at 107 Activa Avenue to comply with the
provisions of Municipal Code Chapter 650 (Lot Maintenance). This report also recommends
that a review be undertaken of the provisions of Chapter 650 and Chapter 655 (Property
Standards) concerning the storage of unlicensed vehicles on private property.
Mr. Shayne Turner advised that staff had undertaken discussions with the owner of 107 Activa
Avenue and are in agreement with allowing an extension to May 31, 2003 for removal of an
unlicensed vehicle from the property. In addition, he noted that the request raised concern
that Chapter 650 does not provide an appeal process. Accordingly, he advised that a review
is proposed to determine an appropriate method of appeal and a report will be provided at a
future meeting of the Finance and Corporate Services Committee.
On motion by Councillor C. Weylie -
it was resolved:
"That Mr. Frank Engrich be granted an extension to May 31, 2003 to comply with the
provisions of Municipal Code Chapter 650 (Lot Maintenance) to remove an unlicensed
vehicle from outdoor storage at 107 Activa Avenue."
On motion by Councillor C. Weylie -
it was resolved:
"That staff be directed to review the provisions of Chapter 650 (Lot Maintenance) and
Chapter 655 (Property Standards) of the City's Municipal Code regarding the storage of
unlicensed vehicles on private property; and further,
That staff prepare a report for future consideration by the Finance and Corporate
Services Committee."
5. FIN-03-005 - ASSET MANAGEMENT STRATEGY
The Committee was in receipt of Financial Services Department report FIN-03-005, dated
January 14, 2003 concerning development of an Asset Management Strategy to deal with City
investment in capital assets and enterprises.
Ms. P. Houston advised that the purpose of the Asset Management Strategy is to provide a
co-ordinated approach to managing the City's capital assets and enterprises. She noted that
the plan will be completed over a 2-year period following which yearly monitoring and
maintenance of the plan will be undertaken. She then briefly reviewed Phase 1 (Land and
Buildings) and Phase 2 (Business Enterprises) of the strategy.
Councillor J. Gazzola raised concern with respect to the $100,000. to be allocated for
implementation. Ms. P. Houston advised that the funding is required to purchase property
FIN-03-005 - ASSET MANAGEMENT STRATEGY (CONT'D)
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CITY OF KITCHENER
inventory management software for proper classification and prioritization of capital assets
and to obtain appraisals for assets recommended for disposal.
On motion by Mayor C. Zehr -
it was resolved:
"That the Asset Management Strategy contained in Financial Services Department
report FIN-03-005 be approved; and further,
That a maximum $100,000. be allocated from the Asset Management Reserve Fund for
the purchase of software, contract services and appraisals related to the Asset
Management Strategy development."
6. ADJOURNMENT
On motion, the meeting adjourned at 3:45 p.m.
Janet Billett, AMCT
Committee Administrator