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HomeMy WebLinkAboutCouncil Minutes - 2003-03-03 SSPECIAL COUNCIL MINUTES MARCH 3, 2003 CITY OF KITCHENER A special meeting of City Council was held at 5:40 p.m. this date, Chaired by Mayor C. Zehr with all members present. Notice of this special meeting had been previously given to all members of Council by the City Clerk pursuant to Chapter 25 (Council Procedure) of the Municipal Code. Mayor C. Zehr advised that staff have requested consideration of an additional item not listed on the special Council agenda. L. MacDonald advised of receipt of a request from Lee Larsen of LP Holdings Inc. over the execution of a Letter of Intent which would encapsulate the discussions with the City regarding the transfer of the Epton site. The reason for dealing with this request at this time was the fact that Mr. Larsen was leaving LP Holdings Inc. by March 7, 2003. Moved by Councillor C. Weylie Seconded by Councillor J. Smola "That pursuant to Chapter 25 (Council Procedure) of the Municipal Code, the following matter be added to the agenda of the special meeting of Council on March 3, 2003: Consideration of the request for the execution of a Letter of Intent pertaining to the transfer of the Epton site by LP Holdings Inc. and PolyOne Canada Inc." Carried Unanimously. Council considered a recommendation arising from the Finance & Corporation Services Committee meeting held earlier this date with respect to the status of the Kitchener-Wilmot Hydro utility under Section 159.1 of The Electricity Act, 1998, as amended. Moved by Councillor B. Vrbanovic Seconded by Councillor J. Smola "WHEREAS Section 142 of the Electricity Act, 1998, required municipalities to convert their existing hydro-electric commissions into corporations under the Business Corporations Act (Ontario) before November 7, 2000; and, WHEREAS the City of Kitchener through a public process and meetings, incorporated Kitchener-Wilmot Hydro Inc. under the Business Corporations Act (Ontario) required pursuant to Section 142 of the Electricity Act, 1998 and effective as at August 1,2000; and, WHEREAS on December 9, 2002, Bill 210, the Electricity Pricing, Conservation and Supply Act, 2002 ('the Act') received third reading, Royal Assent and came into force; and, WHEREAS the Act amends the Electricity Act, 1998, by adding Section 159.1, which provides that each municipality that beneficially owns voting securities in a corporation incorporated under Section 142 of the Electricity Act, 1998, and that is licensed under the Ontario Energy Board Act, 1998 to distribute electricity, may within 90 days after Section 159.1 comes into force, pass a resolution affirming that the corporation should continue to be incorporated as provided in Section 142(1) of the Electricity Act, 1998; and, WHEREAS the Act stipulates that should Council not pass the required resolution and submit the necessary certificate certifying the passing of the resolution, consequences for the Hydro utility would include a prohibition against declaring or paying dividends for the benefit of any person; a prohibition against any disposition of the assets or liabilities of the electricity distribution corporation; prohibitions against entering into certain contractual arrangements, and an application being deemed to have been made to the Ontario Energy Board for a rate order that incorporates a 0% return on common equity which effectively converts the distribution corporation into a not-for-profit business; and, WHEREAS the ownership of Kitchener-Wilmot Hydro Inc. has consistently ensured that the electricity customers and taxpayers of the City of Kitchener and the Township of Wilmot receive efficient electrical services at competitive rates; SPECIAL COUNCIL MINUTES MARCH 3, 2003 - 76 - CITY OF KITCHENER THEREFORE BE IT RESOLVED THAT the Council of the Corporation of the City of Kitchener affirms that Kitchener-Wilmot Hydro Inc., an electricity distributor licensed under the Ontario Energy Board Act, 1998, continue to be incorporated as a corporation under the Business Corporations Act (Ontario) as provided in Section 142(1) of the Electricity Act, 1998, and to operate on a for-profit basis; and, BE IT FURTHER RESOLVED THAT the Mayor and Clerk are authorized to prepare and file with the Minister of Energy the necessary certificate required under Section 159.1 of the Electricity Act, 1998, as provided for in the Act." Carried. Council considered a letter from Lesley O'Hagen and Kathy Janzen, Co-Directors of the University of Waterloo's Bus Push fundraising event requesting Council's permission to collect funds on City streets during the event to be held March 8, 2003. Moved by Councillor C. Weylie Seconded by Councillor M. Galloway "That Council approve the request of the Engineering Society of the University of Waterloo to collect funds for the Big Brothers and Big Sisters of Kitchener-Waterloo & Area along the route of the 2003 Bus Push to be held on Saturday, March 8, 2003." Carried. Council then considered the request to execute a Letter of Intent pertaining to transfer of the Epton site by LP Holdings and PolyOne Canada Inc. L. MacDonald advised that the Letter of Intent lays out the discussions that have taken place between the City and LP Holdings Inc. regarding the transfer of the Epton site and does not commit the City to any agreement. Moved by Councillor B. Vrbanovic Seconded by Councillor M. Galloway "That the Mayor and Clerk be authorized to execute a Letter of Intent dated March 3, 2003, pertaining to the transfer of the Epton site by LP Holdings Inc. and PolyOne Canada Inc." Carried. Moved by Councillor G. Lorentz Seconded by Councillor J. Smola "That an in-camera meeting of City Council be held immediately following this special meeting to consider three matters subject to solicitor-client privilege." Carried. Moved by Councillor B. Vrbanovic Seconded by Councillor J. Gazzola "That leave be given the Mover and Seconder to introduce a by-law to confirm all actions and proceedings of the Council and that the same be taken as read a first, second and third times, be finally passed and numbered 2003-42 by the Clerk." Carried. On motion, the meeting adjourned at 5:45 p.m. MAYOR CLERK