HomeMy WebLinkAboutFin & Corp Svcs - 2009-06-01FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
JUNE 1, 2009 CITY OF KITCHENER
The Finance and Corporate Services Committee met in special session this date commencing at 1:10
p. m.
Present: Councillor J. Smola -Vice-Chair
Mayor C. Zehr and Councillors J. Smola, G. Lorentz, J. Gazzola, K. Galloway and C.
Weylie.
Staff: D. Chapman, General Manager, Financial Services & City Treasurer
T. Speck, General Manager, Corporate Services
J. Willmer, Interim General Manager, Development & Technical Services
P. Houston, General Manager, Community Services
S. Adams, Director, Community & Corporate Planning
R. Regier, Executive Director, Economic Development
H. Gross, Director, Project Administration & Economic Investment
R. Gosse, Director, Legislated Services & City Clerk
S. Turner, Director, By-law Enforcement
C. Fletcher, Director, Facilities Management
J. Sheryer, Assistant City Solicitor
S. Wright, Manager of Downtown Community Development
P. Harris, Manager of Licensing
K. Steiss, Inclusion Co-ordinator
T. Boutilier, Sr. Business Development Officer & Brownfield Co-ordinator
J. MacDonald, Technical Analyst, Business Development
J. Billett, Committee Administrator
CRPS-09-079 -REQUEST FOR A MIDWAY AT RIBFEST
- VICTORIA PARK -JULY 17-19. 2009
The Committee considered Corporate Services Department report CRPS-09-079, dated May
19, 2009 concerning a request to operate a midway in Victoria Park for the Ribfest event.
At the request of Councillor C. Weylie, Mr. S. Turner agreed to ensure that the Victoria Park
Advisory Group is notified of the proposed midway operation prior to the Ribfest event.
It was noted in the agenda that any recommendation from the Committee concerning this
matter would be forwarded for consideration to the special Council meeting to be held later this
same date.
On motion by Councillor K. Galloway -
itwas resolved:
"That GTA Midways Inc. be granted permission to operate a Midway in Victoria Park,
during Ribfest from July 17-19, 2009, subject to the following:
Hours of operation:
Date Start Close
Friday, July 17 5:00 p. m. 10:00 p. m.
Saturday, July 18 Noon 10:00 p. m.
Sunda ,Jul 19 Noon 6:00 m
That the music at the Midway be turned down at 8:00 p. m.; and,
That the music be turned off one hour before closing time; and further,
That the required licence be obtained prior to operating the Midway."
and,
CRPS-09-080 -REQUEST FOR REDUCED FEE -JOSEPH SCHNEIDER HAUS
- HEART AND HAND FESTIVAL -SEPTEMBER 19, 2009
The Committee considered Corporate Services Department report CRPS-09-080, dated May
19, 2009 concerning a request for a reduced licence fee.
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CRPS-09-080 -REQUEST FOR REDUCED FEE -JOSEPH SCHNEIDER HAUS
- HEART AND HAND FESTIVAL -SEPTEMBER 19, 2009 (CONT'D)
On motion by Councillor K. Galloway -
itwas resolved:
"That the licence fee for the Heart and Hand Festival to be held on September 19, 2009
at the Joseph Schneider Haus be reduced to $42.80."
CRPS-09-083 -REQUEST BY HOLY TRINITY SERBIAN ORTHODOX CHURCH TO HOLD
A SPECIAL EVENT -JULY 29, 2009
The Committee considered Corporate Services Department report CRPS-09-083, dated May
21, 2009 concerning a request to hold a special event.
On motion by Councillor K. Galloway -
itwas resolved:
"That the Holy Trinity Serbian Orthodox Church be approved to operate a special event
at Holy Trinity Serbian Orthodox Church, 700 Fischer-Hallman Rd., Kitchener on July
26, 2009 from 1:00 p.m. to 10:00 p. m. provided the necessary licence, including Health
and Fire approvals, is obtained; and,
That the Holy Trinity Serbian Orthodox Church be granted an exemption from Chapter
450 (Noise) of the City of Kitchener Municipal Code in conjunction with an event at 700
Fischer- Hallman Rd., Kitchener on July 26, 2009 from 2:00 p. m. to 10:00 p. m.; and
further,
That the City of Kitchener has no objection to a liquor licence being issued to the Holy
Trinity Serbian Orthodox Church for an event on July 26, 2009."
CRPS-09-068 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE
- CALVARY MEMORIAL UNITED CHURCH
The Committee considered Corporate Services Department report CRPS-09-068, dated May
21, 2009 concerning a noise exemption request.
On motion by Councillor K. Galloway -
itwas resolved:
"That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be
granted to the Calvary Memorial United Church on Saturday, June 20, 2009, between
the hours of 1:00 p. m. and 4:00 p. m., for their Annual Strawberry Social."
CRPS-09-070 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE
- CHERRY PARK NEIGHBOURHOOD ASSOCIATION
The Committee considered Corporate Services Department report CRPS-09-070, dated May
21, 2009 concerning a noise exemption request.
On motion by Councillor K. Galloway -
itwas resolved:
"That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be
granted to the Cherry Park Neighbourhood Association for a series of movie nights in
Cherry Park on June 12, July 11 and August 7, 2009, and in King Edward Field on June
26, July 24 and August 21, 2009, from 8:30 p. m. to 10:30 p. m. each evening."
CRPS-09-071 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE
- VICTOR JANNERT - 42 EVERGREEN CRESCENT
The Committee considered Corporate Services Department report CRPS-09-070, dated May
21, 2009 concerning a noise exemption request.
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6. CRPS-09-071 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE
- VICTOR JANNERT - 42 EVERGREEN CRESCENT (CONT'D)
On motion by Councillor K. Galloway -
itwas resolved:
"That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be
granted to Mr. Victor Jannert for a wedding celebration to be held at his residence at 42
Evergreen Crescent, on Saturday, June 20, 2009, between the hours of 7:00 p. m. and
11:00 p. m."
7. CRPS-09-078 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE
- BOBBY O'BRIENS - 125 KING STREET WEST
The Committee considered Corporate Services Department report CRPS-09-078, dated May
14, 2009 concerning a noise exemption request.
On motion by Councillor K. Galloway -
itwas resolved:
"That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be
granted to Bobby O'Brien's, 125 King Street West, for each Wednesday evening
between the hours of 7:00 p. m. and 11:00 p. m., from June 3 to October 14, 2009, for a
Blues band, playing on their patio area."
CSD-09-038 -ACCESSIBILITY FOR ONTARIANS WITH DISABILITIES ACT
- CUSTOMER SERVICE REGULATION (429/07) UPDATE
- LAUNCH OF TEXNET
The Committee considered Community Services Department report CSD-09-038, dated May
13, 2009 announcing the launch of TexNet in various areas across the Corporation, as of June
1, 2009. TexNet is a software tool that will allow staff to receive and give more immediate
response to inquiries from the deaf, deafened or hard of hearing.
Councillor J. Smola introduced Ms. Karen Panchaud, Sign Language Interpreter, who provided
sign language services for this portion of the meeting.
Ms. K. Steiss advised that previously the City used a TeleTypewriter (TTY) system that was
originally intended only for home usage but was acquired for the City as it was the only
available technology at the time. She stated that the TTY did not adequately meet the needs
of those who require the service and a process began in 2007 to acquire newer technology.
She added that TexNet aligns with the City's customer service and accessibility objectives and
is being introduced in conjunction with the start of the 2009 Access Awareness Week. Ms.
Steiss advised that members of the Canadian Hearing Society and the City's Accessibility
Advisory Committee were also in attendance this date.
Ms. Mandy Conlon, MJC Accessibility Consulting Services, provided a demonstration of
TexNet, noting that the system is free to download to existing PCs and servers and differing
from the TTY system, has transfer capabilities to improve more immediate response to
incoming calls.
Mayor C. Zehr inquired if the City has statistical data in respect to usage of the TTY system.
Ms. Conlon stated that it would be difficult to provide statistical data and suggested that the
frequency of calls is not as important as having a system available for those who require the
service. She added that the TexNet will have capability of tracking the number of calls but
pointed out that a comparison cannot be made between the TTY system and TexNet as they
are totally different. Councillor J. Gazzola suggested that it would be important to have an idea
of how often the system is used to determine future needs for expansion of this system within
the Corporation.
Councillor K. Galloway expressed support for the implementation of TexNet as it brings the
City closer to its goal of providing the types of service needed to achieve accessibility for all.
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9. CRPS-09-054 -REQUEST FOR PERMISSION TO OPERATE DOWNTOWN SIDEWALK
PATIO FOR 2009 SEASON -DANDY'S - 85 KING STREET WEST
The Committee considered Corporate Services Department report CRPS-09-054, dated April
22, 2009 concerning a request from Dandy's Restaurant to obtain an encroachment
agreement for an outdoor sidewalk patio at 85 King Street West for the 2009 season.
Messrs. Gus and Peter Bardouniotis, Dandy's Restaurant, attended in support of their request,
advising that in 2008 they were permitted to operate an outdoor patio for one specified event
only. They were required by the Kitchener Business Improvement Association (KBIA) to
provide a deposit of $1,000. and were advised that if any complaints were received an
appropriate dollar amount from the deposit would be deducted. Mr. P. Bardouniotis advised
that he had received good feedback following the event and was not aware of any complaints.
He asked that they be allowed to resume operation of their outdoor sidewalk patio for the 2009
season.
Councillor J. Gazzola inquired as to the impact of not operating in 2008. Mr. G. Bardouniotis
stated that it resulted in an approximate $37,000. loss of business. Councillor Gazzola
requested staff to comment on reasons for denial of the request for the 2009 season.
Mr. S. Turner advised that Mr. Mark Garner, KBIA, was in attendance to speak to the issues of
concern. Mr. M. Garner advised that the restaurant had obtained permission to operate an
outdoor patio during the Cruising King Street event. Activities were monitored and similar
issues to those previously experienced at this location did arise, including such behaviour as
foul language and interference with pedestrian traffic. The matter was brought to the KBIA
Board and it was the Board's position that an encroachment agreement for an outdoor patio at
this location should not be granted at this time.
Mr. Bardouniotis advised that he had spoken with Mr. Garner following the event in 2008 and
had been congratulated on his efforts to control activities at his location and the full deposit
had been returned. He stated that he was unaware of the concerns raised by Mr. Garner this
date and suggested that if there had been concerns the full amount of the deposit should not
have been returned.
Mayor C. Zehr requested clarification of the purpose of the deposit. Mr. Garner advised that
the deposit was to ensure conditions of approval to operate the patio were enforced and to
cover any damages to property. Mayor Zehr asked if the deposit was then to address potential
physical damages as opposed to behavioural activities and Mr. Garner concurred.
Ms. J. Sheryer noted that the Downtown Development Advisory Committee was also opposed
to the proposed encroachment agreement.
Councillor J. Gazzola inquired when the King Street reconstruction project is to conclude. Mr.
J. Willmer advised that the entire project is to be completed by mid-September but throughout
construction there may be opportunity for businesses to open patios on a temporary basis. He
added that the subject restaurant is in the first block of reconstruction and for those businesses
in the first block there may be a longer period of time in which to operate their patios.
On motion by Councillor C. Weylie the recommendation in report CRPS-09-054 was brought
forward for consideration to deny the request for an encroachment agreement to operate an
outdoor sidewalk patio at 85 King Street West.
Councillor J. Gazzola spoke in support of the motion, commenting that rules and practices
governing the operation of an outdoor patio should be followed for the benefit of the whole and
it appears that for whatever reason the subject restaurant has not complied.
Councillor G. Lorentz questioned if any discussion had taken place between the KBIA and the
restaurant owners in respect to their concerns. He suggested that reconstruction of King
Street may provide some opportunity to change the outer area of the subject restaurant that
may allow them to improve their patio site and resume operation subject to appropriate
conditions. Councillor J. Smola advised that all encroachment agreements for outdoor patios
are reviewed annually by the KBIA Board and applicants have opportunity to address the
Board. He pointed out that complaints have been ongoing over a number of years at this
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9. CRPS-09-054 -REQUEST FOR PERMISSION TO OPERATE DOWNTOWN SIDEWALK
PATIO FOR 2009 SEASON
- DANDY'S - 85 KING STREET WEST (CONT'D)
location in respect to their patio operation and Mr. Garner was speaking on behalf of the Board
as a whole and not individually.
Mayor C. Zehr commented that notwithstanding the damage deposit was fully returned, the
behavioural issues still continued at this location. He stated that he would not support the
request as permission to operate an outdoor patio is a privilege that bears responsibility of the
operator and is not a guarantee.
On motion by Councillor C. Weylie -
itwas resolved:
"That the request of Dandy's Restaurant, 85 King Street West, to obtain an
encroachment agreement for an outdoor patio for the 2009 season be denied."
10. CRPS-09-081 -APPEAL OF REFRESHMENT VEHICLE LOCATION
- 33 MANITOU DRIVE
The Committee considered Corporate Services Department report CRPS-09-081, dated May
20, 2009 concerning a request to operate a refreshment vehicle at 33 Manitou Drive.
Ms. Sean Byrnes, Nostracucina, spoke in opposition to the request advising that her business
is located at 31 Manitou Drive on a shared site with the subject property. She noted that her
business is a small take-out sandwich shop and suggested that locating a refreshment vehicle
on the site would take away too much of her business. She added that this is not a location
that would draw a lot of walk-in traffic and the proposed refreshment vehicle has potential to
increase motor vehicle traffic in an already congested area.
Councillor J. Gazzola suggested that in some cases competition is good and asked how
operation of the refreshment vehicle compares to a business that pays property taxes. Ms. P.
Harris responded that a refreshment vehicle pays a licence fee but was not sure how this
would compare to taxes. She pointed out that the City's policy requires Council direction in
instances where the location does not meet the required distance separation and existing
businesses within the distance separation are notified of the request and do have the right to
object. Councillor Gazzola requested further clarification of the issue of competition. Mr. J.
Willmer responded that while a prospective restaurant business may willingly enter into
competition on a site where there is an existing portable vendor, an existing restaurant
business has the right to reasonable expectation of adherence to the City's policy in respect to
the distance separation requirements under the licensing process.
A motion by Councillor G. Lorentz to deny the request to operate a refreshment vehicle at 33
Manitou Drive was brought forward for consideration. Councillor Lorentz advised that he could
not support the request as this is an area where traffic congestion is already a concern and
existing businesses do have greater costs in paying taxes and maintaining overhead
expenses. He commented that he had no difficulty with refreshment vehicles being placed in
areas where there is a need but suggested that areas where permanent places of refreshment
exist are not appropriate locations and is why the policy has a distance separation
requirement.
Mayor C. Zehr suggested that the issue relates to attempting to create a level playing field and
that assessing an application fee to that of paying property tax is not a good comparator. He
concurred with problems concerning traffic congestion at this location, noting that this is further
exacerbated by the narrow, curvature of the roadway and the speed at which traffic travels.
Councillor Gazzola did not disagree with the philosophy of creating a level playing field but
suggested that this issue might be addressed by applying a more substantial application fee.
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10. CRPS-09-081 -APPEAL OF REFRESHMENT VEHICLE LOCATION
- 33 MANITOU DRIVE (CONT'D)
On motion by Councillor G. Lorentz -
itwas resolved:
"That the request from Ms. Sarah McIntosh to operate a refreshment vehicle at 33
Manitou Drive be denied as this location does not meet the required distance separation
between existing Places of Refreshment."
11. CRPS-09-064 -APPEAL OF REFRESHMENT VEHICLE LOCATION
- D. WILSON - 932 VICTORIA STREET NORTH
The Committee previously considered Corporate Services Department report CRPS-09-064 at
its meeting held May 11, 2009 at which time a recommendation to deny the request to operate
a refreshment vehicle at T/A Appliance, 932 Victoria Street North was forwarded for
consideration to the May 19, 2009 Council meeting. Subsequently, Council deferred and
referred the matter back to Committee this date to allow the applicant, Mr. D. Wilson, SOS
Barbecue, an opportunity to dialogue with the businesses who had objected to the proposal.
The Committee was circulated with an e-mail transmission, dated May 29, 2009 from Mr.
Andrew Head, Dryden Smith & Head Planning Consultants Ltd, advising that Mr. Head no
longer represents Mr. Wilson and Mr. Head would not be in attendance at this meeting. It was
noted that Mr. Wilson had been invited to attend the meeting in support of his request but was
not present at this time. It was agreed to temporarily set this matter aside until conclusion of
the meeting to allow an opportunity for Mr. Wilson to arrive. At conclusion of the meeting
agenda, Mr. Wilson was still not in attendance and the Committee proceeded to consider the
matter.
Councillor G. Lorentz advised that he wished to re-confirm his previous motion to deny the
request based on the same reasoning he had provided at the previous Committee meeting.
On motion by Councillor G. Lorentz -
itwas resolved:
"That the request of Mr. Dave Wilson, SOS Barbecue, to operate a refreshment vehicle
at T/A Appliance, 932 Victoria Street North, be denied as this location does not meet the
required distance separation between existing Refreshment Vehicles and Places of
Refreshment."
12. DELEGATION -BINGO INDUSTRY
Mr. Brian Gilmour attended on behalf of Mr. Bill Pegg, K-W Gaming Centre /Cambridge Bingo
Centre Sponsors' Associations, to update the Committee on a recent meeting between Ontario
Cabinet Minister George Smitherman and representatives from the bingo industry. Mr. Gilmour
advised that the Minister indicated that he is very committed to improving revenues for Ontario
charities and reinforced the need for the charitable bingo industry to modernize through new
products and technology. The Minister also had indicated a commitment to expedite expansion
of the electronic bingo model (2003) and as part of new products, would be bringing a proposal
forward to place slot machines in bingo centres in 'under-serviced' areas.
The Bingo Associations expressed concerns with respect to the possibility of electronic bingo
in slot facilities as it relates to only in 'under-serviced' areas. They stated that anything that
increases competition with charitable bingo centres would be a concern without allowing
similar gaming for the bingo centres. They suggest that at minimum if bingo is placed in slot
facilities it should not compete geographically with an existing bingo centre; and bingo
operators should have opportunity to run the gaming and existing charities be permitted to
actively participate, to keep the direct funds distribution model in place. Secondly, they raised
concerns with the Minister's comments regarding the Trillium Fund, advising that they were
clear in their position of the importance of the direct-to-local charities funding model and active
volunteer participation for both regular and enhanced electronic gaming. Mr. Gilmour noted
that the Minister's proposals are still in early stages, with further opportunity for industry input
to continue and at this time, the Sponsors' Associations are requesting area Council's support.
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
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12. DELEGATION -BINGO INDUSTRY (CONT'D1
Mayor C. Zehr requested clarification as to in what form support is being requested. Mr.
Gilmour responded that they are seeking Council's support of expanded electronic gaming
within charitable bingo centres. Mayor Zehr asked if this includes slot machines and Mr.
Gilmour responded that it may include all forms up to and including slot machines. Mayor Zehr
commented that the potential addition of slot machines does present a concern.
At the request of Mayor C. Zehr, Licensing staff was directed to monitor the Ontario
Government's proposal for improvements to the gaming industry and to keep Council informed
as to its progress.
13. PROPOSED ENCROACHMENT AGREEMENT - 28 WATERLOO STREET
Councillor J. Smola advised that the property owner of 28 Waterloo Street was in attendance
to address the Committee related to a matter of solicitor-client privilege discussed earlier in-
camera this date.
Ms. Elizabeth Karczmarczyk advised that at issue is a wall on her property beneath which lies
a gas line which the City requires access to for the purpose of upgrading gas service to a
property across the street. She advised that the wall had been constructed to address issues
of safety and to provide protection /privacy to her property. She stated that they had met
several years ago with City staff at which time they had been of the understanding they had
been given permission to construct the wall, noting that a fire hydrant had been moved that
otherwise would not have allowed the wall construction. She noted that the City has indicated
that the gas line could be relocated outside the wall but that the City would require them to
enter into an encroachment agreement as the wall is located on City-owned property. Ms.
Karczmarczyk stated that they could not afford the associated fee and could not take on
liability for the wall. She noted that the cost of constructing the wall was significant and that
they had constructed the wall in keeping with the historical features of their home to help
beautify the surrounding neighbourhood. She asked that the City consider re-locating the gas
line without requiring them to enter into an encroachment agreement.
Mayor C. Zehr commented that it is not the aesthetics of the wall that is at issue but rather the
fact that it has been constructed on City property. He added that while the City may be able to
work around the issue of the gas line, it still does not negate the fact that an encroachment
agreement is required. Ms. Karczmarczyk re-iterated her concerns in respect to assuming full
liability and the costs associated with an encroachment agreement. Mayor Zehr pointed out
that this is not a City structure on City-owned lands but rather a private structure on City-
owned lands. Ms. Karczmarczyk suggested that the City land belongs to all of the residents
and by requiring an encroachment agreement the City is putting up divide between residents
and the Corporation.
Mayor Zehr advised that Council has the collective responsibility to preserve and protect the
assets of the City. He cited an example of a property he had purchased 20 years ago on
which a contractor had constructed a fence that encroached into a small portion of parkland
and ultimately, he had to purchase the portion of parkland to resolve the matter. Mayor Zehr
stated that the compromise in this situation is that the property owner will be permitted to keep
the wall provided they enter into an encroachment agreement with the City. Ms. Karczmarczyk
responded that they felt they had already relieved the City of liability by constructing the wall to
address safety concerns.
Councillor G. Lorentz commented that it was his understanding that originally the City had
offered to construct the wall and thereby would have been responsible for it; however, the
property owner had declined the offer. Ms. Karczmarczyk acknowledged that this was correct.
Councillor Lorentz suggested that given the City could require the owner to remove the wall,
the fairest way to deal with this matter would be for the property owner to compromise by
entering into the required encroachment agreement.
Councillor J. Gazzola requested clarification as to what the property owner was prepared to
do, if anything. Ms. Karczmarczyk responded that they have no funds to enter into an
encroachment agreement but suggested that discussion in respect to the disposition of the
wall could continue in respect to it being moved, or perhaps sold. Councillor Gazzola inquired
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
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13. PROPOSED ENCROACHMENT AGREEMENT - 28 WATERLOO STREET (CONT'D)
if the delegation was prepared to dismantle the wall and move it onto her own property. Ms.
Karczmarczyk responded that if dismantled they would not re-erect the wall as it would be too
costly.
On motion by Mayor C. Zehr -
itwas resolved:
"That staff be directed to negotiate an encroachment agreement with the owner(s) of 28
Waterloo Street pertaining to a retaining wall the property owner(s) has constructed on
City-owned property."
14. FIN-09-064- DEVELOPMENT CHARGES MATTERS -DOWNTOWN CORE EXEMPTION
- NON-RESIDENTIAL RATE PHASE-IN & CREDIT /REFUND AGREEMENT
EXAMPLES
The Committee considered Financial Services Department report FIN-09-064, dated May 27,
2009 in response to questions raised at the May 11th Committee meeting related to
presentation of the Draft Development Charges Background Study and Policy Whitepaper.
Mr. D. Chapman advised that three issues required additional information of staff, including:
financial impact to the City of continuing the Downtown Core Exemption; impact of phasing-in
the new non-residential rates; and examples of recent development charges credit /refund
agreements. Mr. Chapman advised that the Committee is not being asked to make
recommendations this date, but rather staff will seek their direction following the public meeting
to be held June 15, 2009.
Councillor J. Gazzola requested clarification of the Region of Waterloo's participation in the
Downtown Core Exemption. Mr. Chapman advised that it is intended to continue with
Kitchener's exemption and the Region's participation is dependant on the area municipality
participating. He added that because the Cities of Waterloo and Cambridge have indicated
that they will discontinue their Downtown Core Exemptions, the Region intends to remove its
participation in these centres as well. Mayor Zehr advised that during recent discussions at
the Regional level, the Mayor of Cambridge indicated it is still to be decided whether or not
Cambridge will remove its Downtown Core Exemption.
Councillor Gazzola requested clarification as to the City's obligation to refund costs under
certain agreements even if the exemption is eliminated. Mr. Chapman advised that this relates
to instances where the City has already entered into an agreement wherein the refund is
guaranteed by provisions of the agreement.
Councillor G. Lorentz inquired if the report had been shared with industry stakeholders. Mr.
Chapman advised that the report is posted on the City's website and noted that the appropriate
venue for stakeholder input will be the June 15th public meeting. He added that the purpose of
this report is to provide context for the Committee when they hear submissions at the public
meeting.
Mayor Zehr advised that it was his understanding the Region was considering reducing the
Regional non-residential amount and aphase-in to January 1, 2010. Mr. Chapman responded
that to his knowledge this has not been publicly confirmed but would be considered by the
Region on June 2, 2009. Mayor Zehr requested clarification of inclusion of parking and its
effect. Mr. Chapman advised that in considering the 2004 development charges, parking was
not included as a service area as there were no projects contemplated in the 5 year term. He
pointed out that four projects are now contemplated and can be considered as a legitimate
service area given they are growth related. Mr. Chapman also provided explanation as to the
effect parking has on the Economic Development Investment Fund (EDIF) relative to the
Centre Block Parking project.
15. CAO-09-026 -CONSOLIDATED MAINTENANCE FACILITY -SOLAR ROOF BUSINESS
CASE
The Committee considered Chief Administrator's Office report CAO-09-026, dated May 21,
2009 concerning a business case for the proposed installation of a solar roof at the
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15. CAO-09-026 -CONSOLIDATED MAINTENANCE FACILITY -SOLAR ROOF BUSINESS
CASE (CONT'D)
Consolidated Maintenance Facility (CMF)
Mr. T. Boutilier advised that an inquiry in respect to potential leasing of the CMF roof prompted
a review of sustainable and revenue effective green uses. It was determined that
approximately 130,000-140,000 sq. ft. of the roof could be used and would be an effective site
for solar panels but as the City was not permitted to sell excess energy generation the
proposal was not pursued. Earlier this year, announcements were made regarding the
Government of Canada's Infrastructure Stimulus Fund, the Government of Ontario's new
Green Energy Act and the Ontario Power Authority's (OPA) proposed Feed-In-Tariff (FIT)
Program, which have provided new opportunity to pursue the solar roof proposal. The Province
of Ontario Plan is to reduce greenhouse gas emissions to 6% below 1990 levels by 2014 and
by 15% below by 2020; primarily by phasing out coal fired electricity generating stations, such
as Nanticoke, and which will require new sources of energy generation.
Mr. Boutilier advised that Arise Technologies was retained to complete a feasibility study,
which suggests the City could operate a 500 KWhr photovoltaic solar system, consisting of
approximately 2,500 panels, each producing 200 watts. The CMF is expected to consume
1.5M KWhr of electricity annually resulting in an annual hydro bill of approximately $129,600.
at 2009 costing ($.0865 /KWhr). The solar roof is anticipated to generate approximately
605,000 KWhr of electricity annually and generate approximately $363,967. in revenues per
year. Mr. Boutiler advised that the total cost of this project is $4.1 M of which the City's share
would be approximately $1.3M if the project is approved for Federal stimulus funding. Of six
options considered, aCity-owned and operated system is recommended, wherein the City
would sell all generated power to the OPA under a 20 year contract. The annual net revenue
generation will allow a payback period of 5 years, after which the next 15 years would see
additional revenues generated at approximately $3.5M over the balance of the contract. At
conclusion of the 20 year contract, the system would remain in place and a new contract could
be negotiated or the City would use the electricity it generates.
Mr. Boutilier advised that there are a number of qualitative /environmental benefits and staff is
of the opinion that this project meets the criteria of the City's Local Environmental Action Fund
(LEAF). It is proposed to borrow the City's share of costs under the LEAF program at current
rates over a 5 year term, subject to proclamation of the Green Energy Act, enactment of the
OPA's FIT program and funding approval under the Federal Infrastructure Stimulus Fund.
Councillor G. Lorentz referred to the City Hall's co-generation system which was not
successful. Mr. Boutilier suggested that the system was slightly ahead of its time, advising that
it ran on natural gas and legislation at the time did not permit the City to sell excess hydro
generation. He added that the solar roof proposal will not go forward until all funding partners
are in place and an application with the OPA is approved and a contract signed. Mr. Hans
Gross stated that from a performance perspective, solar panels are not new to the City having
been installed at the Breithaupt Centre 15 years ago and which are still fully operational. He
stated that the manufacturing sector has indicated at minimum a 20 year life span and a
metering system will be installed to determine continuous efficiency of the solar system. Mr.
Gross advised that warranty guarantees will also be included in the tender process and if
approved, this will be one of the largest solar power generation systems.
Councillor J. Gazzola inquired as to total costing of the CMF project to date, not including the
solar panel proposal. Mr. Gross advised that he is in the process of refining costs, which are
expected to be somewhat higher than the current budget of $48.7M. Councillor Gazzola
referred to the Ontario Electricity Act which restricts municipalities from participation in
generation of electricity. Mr. Boutilier advised that at this time the City cannot sell electricity;
however, proclamation of the Green Energy Act will change this to allow municipalities to
participate. Councillor Gazzola questioned the status of the Federal and Provincial greenhouse
gas reduction plans. Mr. Boutilier advised that he did not know the status of reduction goals
but noted that closure of the Nanticoke coal fire station is a significant factor in reaching the
targets. Councillor Gazzola stated that he had expected to see an improvement in the annual
electrical consumption from the 3 existing outside locations to that of the consolidated facility.
Mr. Gross pointed out that the area of the 3 current facilities totals approximately 140,000 sq.
ft., whereas, the new CMF facility is double the size at 300,000 sq. ft. Councillor Gazzola
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
JUNE 1.2009 -101 - CITY OF KITCHENER
15. CAO-09-026 -CONSOLIDATED MAINTENANCE FACILITY -SOLAR ROOF BUSINESS
CASE (CONT'D)
referred to property taxes and Mr. Chapman advised that assuming the roof is not leased the
facility would be tax exempt; however, if a lease is entered into with the private sector there
may be taxes applicable to the lease. Councillor Gazzola requested clarification of the
maintenance costs. Mr. Boutilier advised that an allowance under general expenses has been
included to cover some maintenance; however, he re-iterated that the panels would be
warranted for 20 years. Councillor Gazzola requested clarification of the payback period and
staff advised that revenue generated is expected to provide a payback of 5 years for the City's
portion of the project cost. Councillor Gazzola pointed out that the total project cost is $4.1 M
of which staff is seeking Federal and Provincial contributions, and suggested that the actual
payback period is 15 years. Mayor C. Zehr re-iterated that this project is subject to partner
funding and it is not the municipality but rather the senior government's responsibility to
consider the return on their respective investments.
Mayor C. Zehr requested clarification as to the purpose of including reference to the closure of
the Nanticoke station as it was his opinion it had no particular relevance in respect to whether
or not this project would go forward. Mr. Boutilier advised that it is included as a critical factor
in meeting Provincial greenhouse gas target reductions and to highlight the City's potential to
partner with the Province in finding replacement, renewable electricity generation. Mayor Zehr
requested clarification of the impact of the proposal to use LEAF funds as it relates to other
commitments to, and/or potential future uses of, the LEAF funds. Mr. D. Chapman agreed to
provide a detailed projection prior to Council's consideration of this matter on June 15, 2009.
Mayor Zehr questioned if Mr. Chapman was satisfied that the financial calculations were
sufficiently conservative. Mr. Chapman responded that it was his opinion that the payback
period could be much less but the timing has been set at 5 years to ensure flexibility and he
was satisfied based on the proposed partnership funding arrangements.
On motion by Mayor C. Zehr the recommendation contained in report CAO-09-026 was
brought forward for consideration to accept the CMF solar roof business case and to instruct
staff to proceed with implementation, subject to Federal Infrastructure Stimulus Funding
approval and enactment of the OPA's FIT Program.
Councillor J. Gazzola spoke in opposition to the motion, commenting that while the proposal is
good the final costing of the CMF is yet unknown and to contribute more dollars requires
borrowing. He referred to the total project cost of $4.1 M, suggesting that the true payback
period is 15 years during which many things may occur, including emergence of new energy
sources for electricity.
Mayor Zehr commented that the final cost of the CMF has no relevance to this discussion as
the cost of the roof is already included and the proposed solar system is a separate project
which should not be attributed to increasing costs of the CMF project. He expressed the
opinion that this proposal should be supported given the City's return on investment is
achievable in a short period of time and there are substantial environmental benefits.
Councillor K. Galloway concurred, commenting that the payback period is minimal in return for
so many environmental benefits and will be a good step forward toward achieving the City's
environmental goals.
On motion by Mayor C. Zehr -
itwas resolved:
"That the Solar Roof Central Maintenance Facility (CMF) Business Case, dated May 7,
2009, be accepted and that staff be instructed to proceed with project implementation
subject to:
a) The CMF Solar Roof project receiving approval and funding as part of Kitchener's
submission to the 2009 Federal Budget Infrastructure Funding Program; and,
b) The Ontario Power Authority (OPA) enacting its proposed Feed-in-Tariff (FIT)
Program and the OPA approving of Kitchener's application for participation in the
FIT Program; and further,
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
JUNE 1, 2009 -102 - CITY OF KITCHENER
15. CAO-09-026 -CONSOLIDATED MAINTENANCE FACILITY -SOLAR ROOF BUSINESS
CASE (CONT'D)
That Kitchener's portion of the required funding ($1,366,667.) be sourced from the City's
LEAF Program at the prevailing rate of borrowing, over a 5 year term."
16. CAO-09-027 -DOWNTOWN TRENDS AND INDICATORS
The Committee considered Chief Administrator's Office report CAO-09-027, dated May 27,
2009 concerning the 2008 Downtown Trends and Indictors Annual Report. The report provides
action items intended to guide the process of creating an environment for sustained and
balanced vitality of the core through people living, working, playing and learning within the
Downtown. The report monitors these four areas to measure progress and work related to the
Downtown Strategic Plan, Economic Development Investment Fund (EDIF) and the 2007-2010
Economic Development Strategy.
Highlights of the report included: core population of 19,249 with 1,207 new units since 2001
(90 units in 2008); 1,213 new residential units proposed for future development; $86M in
residential construction values since 2001 with a rental vacancy rate at a 6 year low; 11,967
employees with 220 new employees in 2008; attendance at special events at 2.2M since 2001
with 55,000 visitors at the Blues Festival in 2008 over a 3 day period; 3,370 students in the
core with another 613 to come once the Health Science's Campus is fully operational in 2010;
and increased student capacity at the School of Pharmacy from 45 to 63. All indicators
suggest that the catalyst investments realized from EDIF and the Downtown Strategic Plan are
making substantial difference in the City's Downtown core. A growth synopsis, highlighting
development projects currently proposed was also provided.
Ms. S. Wright commented on the importance of growing an environment of cultural vitality and
in capturing the talent of graduates to assist in building a healthy community and in spurring
investor confidence. She advised that new initiatives include provision of Downtown
orientation tours for area students and small businesses, and development of vitality strategies
to attract young professionals. Management of activities will continue under the newly filled
Downtown Co-ordinator position, which works closely with the KBIA and all stakeholders to
maximize the services provided by staff and outside organizations.
Councillor J. Gazzola requested clarification of the significant spike in building permit values
between 2006-2007. Ms. J. MacDonald advised that this is attributed to construction of the
School of Pharmacy. Councillor Gazzola inquired as to what is expected that the next
generation will be looking for in a downtown environment. Ms. Wright advised that cultural
vitality will be key in respect to activities that are ongoing into evening hours, with recreation
such as outdoor patios and a walkable, 24/7 environment.
On motion by Councillor C. Weylie -
itwas resolved:
"That Chief Administrator's Office report CAO-09-027, 2008 Downtown Trends and
Indicators and associated Background Report, be received as information."
17. THE MARKET - REQUEST FOR UPDATE
At the request of Councillor J. Smola, Mr. R. Regier agreed to provide an update on the status
of discussions concerning a walkway and enforcement of a veranda at a property located on
Duke Street, as they relate to the Market facility.
18. ADJOURNMENT
On motion, the meeting adjourned at 4:00 p. m.
J. Billett
Committee Administrator
