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HomeMy WebLinkAboutFin & Corp Svcs - 2009-06-22FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 22. 2009 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 1:30 p. m. Present: Councillor B. Vrbanovic, Chair Mayor C. Zehr and Councillors J. Gazzola, G. Lorentz, J. Smola, K. Galloway and C. Weylie. Staff: C. Ladd, Chief Administrative Officer 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 R. Regier, Executive Director, Economic Development S. Adams, Director, Community & Corporate Planning S. Turner, Director, By-law Enforcement K. Weiss, Director, Business Development L. Gordon, Chief Purchasing Officer K. Woodcock, Manager, Departmental Planning, Research & Technology J. Hamm, Manager, Database Administration & GIS G. McTaggart, Manager, Infrastructure Asset Planning B. Korah, Manager, Development Engineering J. Billett, Committee Administrator 1. CRPS-09-069 -EXEMPTION TO CHAPTER 450 (NOISE) OF THE MUNICIPAL CODE - KYAC AND UNITY JAM The Committee considered Corporate Services Department report CRPS-09-069, dated June 12, 2009 concerning a noise exemption request. Mr. S. Turner agreed to clarify with Events staff prior to the June 29, 2009 Council meeting how skateboarding is to be accommodated for this event, including any need to close a portion of King Street. On motion by Councillor G. Lorentz - itwas resolved: "That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to the Kitchener Youth Action Council (KYAC) on Saturday, August 22, 2009, between the hours of 4:30 P. M. and 11:30 P. M. for the 7th Annual Unity Jam concert to be held in the Civic Square." 2. CRPS-09-087 -AMENDMENT TO CHAPTER 665 (PROPERTY STANDARDS) OF THE MUNICIPAL CODE -RELATING TO UNFINISHED BUILDINGS The Committee considered Corporate Services Department report CRPS-09-087, dated June 4, 2009 concerning an exemption to Chapter 665 (Property Standards) to provide that unfinished buildings that remain unfinished for a minimum period of 12 months be finished in an acceptable manner. Mr. S. Turner advised that dependent on the nature and scope of the structure, the City may finish the construction at cost to the building owner and / or require the structure to be taken down. Typically, complaints involve smaller projects such as decks, garages and small additions. It was noted that the City has legal authority to make such provision in its Property Standards By-law and an amending by-law to effect the change will come forward for Council's consideration in the near future. Mr. Turner stated that it was his opinion the proposed change would be supported by the community and those objecting would only be the builders of affected structures. In respect to large projects that normally would take longer than 12 months to complete, he stated that if it is determined the developer is making progress and taking steps to move the project forward the provision would not be applied. Mr. Turner added that By-law Enforcement staff have discretion to determine the nature of each circumstance and would fully investigate prior to an Order being issued. In the event an Order is issued, he advised that the appeal process under the Property Standards By-law would apply. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 22. 2009 - 109 - CITY OF KITCHENER 2. CRPS-09-087 -AMENDMENT TO CHAPTER 665 (PROPERTY STANDARDS) OF THE MUNICIPAL CODE -RELATING TO UNFINISHED BUILDINGS (CONT'D) On motion by Councillor G. Lorentz - itwas resolved: "That a by-law be enacted to amend Chapter 665 (Property Standards) of the City of Kitchener Municipal Code to include a provision requiring that unfinished buildings that remain unfinished for a minimum period of 12 months, be finished in an acceptable manner, as outlined in Corporate Services Department report CRPS-09-087." 3. DTS-09-095 -SOLE SOURCING FOR THE 2009 PAVEMENT MANAGEMENT DATA COLLECTION The Committee considered Development and Technical Services Department report DTS-09- 095, dated June 5, 2009 concerning awarding of the 2009 Pavement Condition Survey. Mr. G. McTaggart clarified that the City has purchased software developed by Stantec Consulting Ltd. which is used for the purpose of pavement condition analysis. He stated that the analysis conducted by Stantec requires specialized equipment to undertake scientific measurements that is too costly for the City to purchase and significant investment has been made in use of the current software over the past 10 years. He added that having canvassed the industry, staff found very few alternative companies who do this kind of analysis and Stantec's rates were very competitive within the industry. On motion by Councillor G. Lorentz - itwas resolved: "That the Purchasing By-law be waived to permit the 2009 Pavement Condition Survey to be awarded to Stantec Consulting Ltd., Kitchener, ON, at a fee of $94,820., plus a contingency of $9,482. and G.S.T., based on a satisfactory contract being negotiated; and further, That the Mayor and City Clerk be authorized to execute an agreement with Stantec Consulting Ltd., satisfactory to the City Solicitor." 4. "BUY CANADIAN" PURCHASING POLICY The Committee considered Financial Services Department report FIN-09-072, dated June 15, 2009 in response to a request from the Canadian Auto Workers (CAW) to adopt a "Buy Canadian" policy, as outlined in Appendix 1 to report FIN-09-072. Mr. L. Gordon commented that the City already does all that it can do in the absence of a policy to buy goods and services with as much Canadian content as possible, while still maintaining a competitive, transparent and fair process. He added that the policy as proposed by CAW is problematic in respect to the requirement to report on Canadian content annually. Mr. Gordon advised that the actual research required would be very onerous and if bidders are required to provide same, the City would have to accept their information at face value. Mr. Mike Devine, President -CAW Local 1451, thanked the City for consideration of their proposal and commended the City in respect to its current purchasing practices. He pointed out that the purpose of their proposal was to bring awareness across Canada and asked that the City be cognizant of the fact that while goods and services may be purchased locally it does not necessarily mean the vendor's product is of Canadian content. Mr. Devine noted that the recommendation in report FIN-09-072 did not address the issue of requiring a minimum of 50% Canadian content and domestic final assembly in the purchase of public transit vehicles and asked the Committee to further consider this matter. Mr. Devine acknowledged that public transit is a Regional responsibility but asked that Kitchener state a position on the issue. Mr. Devine also acknowledged the City and in particular, Councillor G. Lorentz, for supporting his request to move a monument dedicated to a fallen Union member from the former Kitchener Frame site to Budd Park. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 22. 2009 - 110 - CITY OF KITCHENER 4. "BUY CANADIAN" PURCHASING POLICY (CONT'D) Councillor G. Lorentz asked for clarification in respect to the requirement for public transit vehicles. Mr. Devine advised that the requirement is specifically written in respect to public transit but could be applied also to any vehicles purchased by the City. Mayor C. Zehr advised that Regional Council had dealt with CAW's proposal, at which time no delegations had attended to speak to the issue and had adopted a similar recommendation to that proposed by Kitchener staff this date. Mr. Devine advised that CAW was not notified and had they been aware would have been represented at the Regional meeting. Mr. Devine noted that the City of Waterloo had taken anon-position and the City of Cambridge had re- confirmed their current purchasing practices. Councillor Lorentz requested staff to comment on the requirement pertaining to purchase of public vehicles as it would relate to purchase of City vehicles. Mr. Gordon advised that staff reviewed purchasing practices for City vehicles and are of the opinion it is too difficult to determine Canadian content; citing example of Toyota who operates plants locally but not all parts may be purchased locally. He added that the issue of public transit vehicles was left with the Region to consider as it is a Regional responsibility. Mayor C. Zehr advised that currently buses are purchased from within North America and primarily within Canada and suggested that this issue may be more appropriately considered in respect to the Region's proposed rail transit should the Light Rail Transit (LRT) project be approved to go forward. Mayor Zehr advised that he would support staff's recommendation, commenting that he was uncertain what would be gained by requiring actual percentages of Canadian content to be reported and the principle does exist in the City's purchasing practices under which staff work consistently and which is fair and transparent. Mayor Zehr referred to the motion of the Federation of Canadian Municipalities (FCM), attached to report FIN-09-072, advising that he agreed with the principle of the motion to support the Government of Canada in its efforts to urge the United States Congress to repeal "Buy American" requirements in their federal stimulus packages, but he had not supported taking protectionist measures in Canada. Councillor's J. Gazzola and G. Lorentz spoke in support of staff's recommendation, commenting that protectionist measures have been proven ineffective in the past and acknowledging the importance of continuing the City's current practices in the absence of legislation. At the request of Councillor Lorentz, Mayor Zehr agreed to follow-up with Regional staff in respect to the issue of purchasing public transit vehicles and how this may relate to the proposed LRT project. On motion by Councillor C. Weylie - itwas resolved: "That the City of Kitchener Financial Planning & Supply Services Division, in accordance with the Purchasing By-law, continue to make every effort to ensure that products and services are obtained within Canada where reasonably possible." 5. FIN-09-078 - 2009 DEVELOPMENT CHARGES BACKGROUND STUDY AND BY-LAW The Committee considered Financial Services Department report FIN-09-078, dated June 17, 2009 recommending adoption of the 2009 Development Charges Background Study; calculated development charge rates with proposed deferral of non-residential rates to January 1, 2010; and the proposed by-law. The Committee was also circulated this date with correspondence from Lynda Townsend, Townsend and Associates, dated June 17, 2009; and from Martha George, Grand Valley Construction Association (GVCA), dated June 19, 2009, conveying concerns in respect to the Development Charges Background Study and development charge rates. Mr. D. Chapman advised that report FIN-09-078 provides the calculated development charge (dc) rates, responses to issues raised at the public meeting held June 15, 2009, phase-in options for non-residential rates and a draft by-law for approval. He noted that policy issues outlined in the Development Charges Whitepaper, previously presented to the Committee, will come forward for consideration in advance of the 2010 capital budget process. Mr. Chapman FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 22. 2009 - 111 - CITY OF KITCHENER 5. FIN-09-078 - 2009 DEVELOPMENT CHARGES BACKGROUND STUDY AND BY-LAW - (CONT'D) advised that Mr. Stefan Kreczenowicz, Hemson Consulting Ltd., was also in attendance to assist in answering questions. Mr. Chapman pointed out that while residential do rates will see a decline, non-residential rates will increase substantially due to a number of factors, including the number and costs of capital projects necessary to support growth, as well as the change to growth forecasts and allocation of a greater benefit to the non-residential sector. Mr. Chapman addressed concerns conveyed in the letter from Ms. Martha George, GVCA, advising that the City's Kitchener Growth Management Study (KGMS) indicates that the projected residential growth can be accommodated over the next 20 years and additional charges for development is required to provide infrastructure in support of growth demands. The letter questions if the cost of construction could be over-inflated given the current economic climate to which Mr. Chapman advised that all costs are based on 2008 dollars and indexed annually in accordance to the consumer price index (CPI). Mr. Chapman identified two projects approved for partial funding under the Federal Stimulus Fund, being McLennan Park Phase 4 and the Consolidated Maintenance Facility (CMF), as referenced in the response under Question 8 of report FIN-09- 078. Mr. Chapman reviewed options for phase-in of the non-residential do rates, advising that staff is recommending Option #3 to maintain the current rate for 2009 and defer implementation of the full rate increase to January 1, 2010. Option #3 recognizes concerns raised by the public in respect to the difficulties created by the current recession and aligns with the City's economic development priorities. The cost shortfall of deferral is approximately $1 M and the timing of deferral is consistent with the approach taken by the Region of Waterloo. He added that the cost of the phase-in, together with the cost of the downtown exemption, equates to approximately $3.7M which is proposed to be funded from the City's Economic Development Investment Fund (EDIF). Mr. Chapman advised that the majority of issues raised as a result of the public meeting have been resolved and in respect to those issues outstanding, staff is satisfied that the City's position is both reasonable and defensible. In respect to the proposed phase-in of non-residential rates, Councillor J. Gazzola requested clarification of annual indexing of the do rate. Mr. Chapman reiterated that all costs are in 2008 dollars and the City is required to prepare at minimum a 10 year capital forecast. Rates are reviewed annually to ensure the City is recovering true costs of development growth and relative to CPI, the rates may be adjusted up or down. Councillor Gazzola asked as to the impact on final rates relative to the proposed increase in contingency rates from 12% to 20%. Mr. S. Kreczenowicz suggested that the difference in the final rate would be marginal. Councillor Gazzola requested clarification as to how project cost over-runs are accounted for in respect to collection of do rates. Mr. Chapman advised that to the extent that there may be savings and/or over-expenditures, these would be carried forward from the current 5 year period to be addressed in the next do by-law and any encumbrances recovered in the new rates. Mr. Chapman also noted that ability to recover under-funded capital costs is capped under certain circumstances in which case, they may not all be recovered. Mr. Kreczenowicz added that if it appears the current rates are getting substantially out of line, the City could re- open its by-law prior to the next 5 year period to make adjustments as necessary. Councillor Gazzola referred to concerns that municipalities use dc's for other than what they are intended for and questioned if the external Auditor monitors in this respect. Mr. Chapman agreed to follow-up with the City's external Auditor in regard to their process. Councillor Gazzola questioned if the do rates are added to the cost of buildings by the developer. Mr. Chapman advised that in respect to residential rates he expected the cost would be applied to the price of the home and for commercial development to rental rates. He added that the developer is able to recoup some capital costs and rental costs through income tax provisions. Councillor G. Lorentz questioned the saturation point in light of the current recession, asking if consideration has been given to creating incentives at the municipal level to stimulate local economies. Mr. Chapman commented that even with the non-residential rate increase, the City is still among the lowest in respect to do rates and to that extent remains competitive. In FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 22. 2009 - 112 - CITY OF KITCHENER 5. FIN-09-078 - 2009 DEVELOPMENT CHARGES BACKGROUND STUDY AND BY-LAW - (CONT'D) respect to incentives, Mr. Chapman noted the City's exemption of downtown development and suggested that incentives could be investigated in respect to commercial development. Councillor B. Vrbanovic referred to Table 3 of report FIN-09-078 relative to the dates applied to the options for phase-in. Mr. Chapman acknowledged that the years referenced as 2011 are incorrect and should be revised to 2010. Councillor Vrbanovic advised that he had received associated costs of deferring non-residential rates to July 1, 2010 at $1.93M and to January 1, 2011 at $2.98M, questioning the impact if either option was pursued in respect to the ability to fund capital projects. Mr. Chapman advised that there would be no impact to growth if the non-residential rates are suppressed and staff would propose funding the costs through EDIF. He pointed out that EDIF is contemplated due to a $5.5M allocation for parking solutions, of which approximately $1 M is required for the underground parking structure on the Centre Block, and the remainder of which would be sufficient to cover either deferral option. Councillor Vrbanovic asked if only the McLennan Park project reflects change in the do rates as it relates to use of Federal stimulus funding. Mr. Chapman concurred, pointing out that the stimulus funding for the CMF is being applied to aspects outside the original scope of the project and has no impact on costs. Mayor C. Zehr inquired as to the total funding remaining in EDIF. Mr. Chapman advised that the fund balance comprises $5.5M for parking solutions and $3.1 M related to land sales on the Centre Block, for a total of $8.6M. Ms. Lynda Townsend, Townsend and Associates, requested consideration of concerns outlined in her correspondence dated June 17, 2009, including: changing inputs to charge to recognize net population growth instead of gross population growth; return to the previous 12% contingency on road projects from the proposed 20%; restore project splits for projects identified in the MTE memo to staff; and remove 67% of the cost of the City Hall parking facility. She asked that the City recognize a drop in building permits now projected at 480 for the year in comparison to the do study expectation of 1524 units. She commented that a significant number of jobs will be lost if the development industry is not able to deliver on those permits and asked that the City help the industry to keep development going. Councillor Gazzola asked the delegation who would be affected by the proposed change in contingencies and Ms. Townsend acknowledged that the increase would be included in the price of a house having impact to the new homeowner. Mayor Zehr referred to an example of Wabanaki Drive cited by the delegation in respect to the cost /benefit split of projects, suggesting it was not a good example to pursue in this instance. He pointed out that the Wabanaki extension is only proceeding because of new development and otherwise would not be undertaken at this time. Ms. Townsend suggested that viewpoint could be applied to all work wherein everything is built to accommodate new development; however, it is their position that benefit should be applied to the existing community in that area as all will use the road system. Ms. Jennifer Voss, Manager of Planning, Activa Group, spoke to the timeline of the Ottawa / Trussler Sewer Pumping Station currently scheduled for 2019, asking that consideration be given to advancing this project to 2012. She pointed out that this project has been identified as a Priority 'B' in the KGMS and suggested that there is a disconnect between staff's responses under Questions 10 and 11, as outlined in report FIN-09-078. She added that the proposed timing of the pumping station at 2019 seems in contradiction to a Priority 'B' ranking. Mr. J. Willmer commented that there is no disconnect between responses under Questions 10 and 11, as #10 speaks to the impact of reductions to the City's overall capital program, whereas, #11 deals specifically with a timing issue for a specific project. He pointed out that cash flow constraints in the do reserve fund must be considered over the 10 year capital forecast and beyond, and staff is managing capital projects as best they can to provide for development in the KGMS, while not depleting the reserve so much that development becomes a burden on the community. Mr. Willmer advised that the developer does have the option to front-end costs regardless of the projected timing, for which they would be compensated under acredit/refund agreement. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 22. 2009 - 113 - CITY OF KITCHENER 5. FIN-09-078 - 2009 DEVELOPMENT CHARGES BACKGROUND STUDY AND BY-LAW - (CONT'D) Mayor Zehr asked if there was any alternative to service the Trussler area if the pumping station did not proceed until 2019. Mr. Willmer advised there was not, emphasizing it is necessary to have the pumping station and forcemain in place to support growth development in this area. Mayor Zehr noted that the environmental assessment is to be completed within the next three years and questioned the feasibility of moving the pumping station forward if the do by-law was to be re-opened at that time. Mr. Willmer advised that any decision made relative to this study would not prejudice the outcome of any subsequent do study regardless of whether that was to happen in the normal 5 year period or sooner. Councillor Gazzola questioned the impact of moving the project forward to 2012 now. Mr. Chapman advised that it would necessitate an increase in the do rate and would result in additional financing costs associated with phasing-in non-residential rates. On motion by Mayor C. Zehr, the staff recommendations in report FIN-09-078 were brought forward for consideration, relative to actions associated with adoption of the 2009 Development Charge Background Study and calculated development charge rates. Mayor Zehr commented that deferral of the non-residential rates to January 1, 2010 is consistent with the action taken by the Region of Waterloo and provides reasonable notice of the change in rates. He advised that he could not support a further deferral of the rates as he was not convinced a longer delay would change the course of development. He added that requests have been made to reduce the capital program, in which instance some physical work would not be done and pointed out that businesses cannot grow if the infrastructure is not in place. He expressed the opinion that the rates are reasonable and the City does provide incentives outside of the do by-law, citing EDIF as an example of a stimulus package that was ahead of others introduced in response to the downturn in the economy. Councillor G. Lorentz inquired as to the extent of non-residential stimulus in the downtown and Mr. R. Regier advised that the City has seen approximately $40M in recent downtown non- residential development. Councillor J. Gazzola inquired as to the status of the Waterloo Development Charges By-law and Mr. Chapman advised that the City of Waterloo adopted their latest by-law in the Fall 2008 and did not phase-in rates. Councillor Gazzola advised that he would not support continuation of the downtown exemption as it was his opinion enough had been given over the past years to the downtown and there are other areas such as the Belmont Improvement Area that are growing and could benefit from similar incentive. He also advised that he would not support phase-in of the non- residential rates as the cost is borne by the ratepayers and businesses have opportunity to deduct their expenses from income tax. He commented that lowering property taxes can also act as a stimulus and has direct benefit to the ratepayer. He added that in comparison to other area municipalities Kitchener do rates are less and it was his opinion there was no need to phase-in the increase. A motion by Councillor G. Lorentz was brought forward to amend Paragraph 4 of the main motion to provide that the new non-residential do rates calculated in the DC Background Study, dated June 1, 2009 be deferred until July 1, 2010. Councillor Lorentz commented that with the substantial increase in non-residential rates he had no concern with phasing-in the new rates in the interest of fairness. Mayor C. Zehr advised that he could not support the proposed amendment given developers are already in an advantage of paying lower rates in Kitchener than other area municipalities and reiterated that he believed it would not make any difference to those planning development either here or in Waterloo. He added that his reason for supporting the original phase-in was to give reasonable notice of the change in rates and he pointed out that further deferral will result in additional financing costs to the City. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 22. 2009 - 114 - CITY OF KITCHENER 5. FIN-09-078 - 2009 DEVELOPMENT CHARGES BACKGROUND STUDY AND BY-LAW - (CONT'D) Councillor B. Vrbanovic supported the proposed amendment, commenting that given the extent of the planning process it would be difficult for developers to have all approvals in place within the original 6 month phase-in period and the additional deferral would fall into place with the next construction season. Councillor G. Lorentz's motion to amend Paragraph 4 to extend the phase-in of non-residential rates to July 1, 2010 was then voted on and LOST, on a recorded vote, with Councillors G. Lorentz and B. Vrbanovic voting in favour, and Mayor C. Zehr and Councillors J. Gazzola, J. Smola, K. Galloway and C. Weylie voting in opposition. The following motion was voted on in separate parts, by recorded votes, as follows Paragraphs 1, 2, 3, 7 and 8 -Carried Unanimously. Paragraphs 4, 5 and 6 -Carried, with Mayor C. Zehr and Councillors G. Lorentz, J. Smola, K. Galloway, B. Vrbanovic and C. Weylie voting in favour, and Councillor J. Gazzola voting in opposition. On motion by Mayor C. Zehr - itwas resolved: "That the increase in the need for services attributable to anticipated development in the City of Kitchener be met, subject to sufficient development charge revenues being generated and other City affordability criteria being met; and, That the Development Charge Background Study dated June 1, 2009 and the capital forecasts prepared in conjunction with the Study in accordance with Section 10 of the Development Charges Act, 1997, be adopted; and, That future excess capacity identified in the Development Charge Background Study, dated June 1, 2009, be paid for by development charges or other similar charges; and, That the non-residential development charges rates calculated as at January 1, 2009 be maintained until December 31, 2009 and the new non-residential development charge rates calculated in the Development Charge Background Study, dated June 1, 2009 be deferred until January 1, 2010, in accordance with non-residential rate phase-in Option #3 as set out in report FIN-09-078; and, That the proposed Development Charge By-law in the form attached to report FIN-09- 078, subject to Schedule B to the by-law being in accordance with non-residential rate phase-in Option #3 as set out in report FIN-09-078, be approved; and, That the costs over the term of the new Development Charge By-law associated with the maintenance of the Downtown Core Area exemption ($2,734,883. -Table 2) and the phase-in of the non-residential rate increase ($981,310. -Table 3) be funded from the Economic Development Investment Fund; and, That staff be directed to report back in advance of the 2010 capital budget process with policies for Council's consideration related to the issues outlined in the Development Charges Policy and Practices Whitepaper; and further, That staff be directed to engage stakeholders in a review of the draft policies prior to bringing them forward for Council's consideration." 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. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 22. 2009 - 115 - CITY OF KITCHENER 6. CSD-09-041 -AMENDMENTS TO COUNCIL POLICY I-525 (COMMUNITY INVESTMENT) The Committee considered Community Services Department report CSD-09-041, dated June 16, 2009 concerning amendments to Council Policy I-525 (Community Investment) and proposed rescinding of Council Policy I-598 (Grants -Travel Assistance -Minor Sports) and Council Policy I-400 (Community Gardens). On motion by Councillor C. Weylie - itwas resolved: "That Council Policy I-525 (Community Investment) be amended in accordance with the changes outlined in Community Services Department report CSD-09-041; and further, That as a result of the amendments to Council Policy I-525 (Community Investment), Council Policy I-598 (Grants -Travel Assistance -Minor Sports) and Council Policy 1- 400 (Community Gardens) be rescinded." 7. CRPS-09-085 -EXPRESSIONS OF INTEREST FOR CORPORATE TECHNOLOGY STRATEGIC PLAN AND CUSTOMER INFORMATION SYSTEM ASSESSMENT The Committee considered Corporate Services Department report CRPS-09-085, dated May 28, 2009 concerning the issuance of Expressions of Interest (EOI) for two strategic technology studies, being development of a detailed Corporate Technology Strategic Plan and a detailed business application assessment of the City's Customer Information System (CIS). Mr. J. Hamm advised that the EOI will be issued in July 2009 and the objective of the two studies is to develop a plan to meet the organization's collective technological objectives, as well as assess the City's CIS application and its future direction. The Corporate Services Department will sponsor this initiative as facilitated by the Information Technology Division. A key stakeholder committee will be established representing groups across the organization and the studies will be conducted in two phases with Phase 1 (Corporate Technology Strategic Plan) commencing September 2009 through to January 2010 and Phase 2 (CIS Application Assessment) commencing December 2009 through March 2010. In response to Councillor J. Gazzola, Mr. Hamm advised that the project budget is $120,000. for the 1St phase and $60,000. for the 2"d phase, and the funding provides for hiring of a consultant. He noted that other cities, including the City of Waterloo, have recently undertaken similar studies to develop a strategic plan for use of technology. Mr. Hamm pointed out that recommendations for a master plan will have to be quantitative and a consultant will have the basis and experience to develop a plan that will be a true enterprise approach to technology. He added that the studies are contemplated to be done within a specified timeline and there is no current capacity to allow the studies to be completed in-house. Councillor Gazzola inquired as to the status of introduction of smart meters. Mr. D. Chapman advised that this is an initiative of Kitchener-Wilmot Hydro and Kitchener Utilities is in discussions with Hydro to determine opportunity to partner in respect to gas and water billings. 8. FIN-09-077 -INFRASTRUCTURE STIMULUS FUNDING AND PURCHASING PROCESS The Committee considered Financial Services Department report FIN-09-077, dated June 11, 2009 recommending funding sources for the City's 1/3 share of the Infrastructure Stimulus Fund (ISF) eligible projects and measures to accelerate project implementation. Mr. D. Chapman advised that there are 9 projects, the City's share of which totals $10.1 M. He noted that the Centre in the Square Board of Directors has given direction to use funds from the Centre's Reserve Fund for their improvement project and therefore, will not affect the City's accounts. Mr. Chapman advised that the measures for acceleration are temporary measures to be taken in respect to the City's purchasing practices and approval is also requested to delegate authority to the Chief Administrator to execute tender agreements during the summer hiatus and in instances where there is an unacceptable time delay in meeting schedules. A report regarding such awards would be brought to Council at future meetings. In addition, approval is requested to hire temporary staff to assist with administrative functions of the FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 22. 2009 - 116 - CITY OF KITCHENER 8. FIN-09-077 -INFRASTRUCTURE STIMULUS FUNDING AND PURCHASING PROCESS - (CONT'D) purchasing and accounting processes, at a cost of approximately $150,000. to be funded from the Capital Contingency. Mr. Chapman noted, however, that the Federal Government is considering modifying the ISF program to allow 2.5% of project values to be applied to administrative functions. If approved, the two temporary positions as proposed would be eligible. Mr. Chapman advised that it is intended to report to the August 10, 2010 Committee meeting on the status of projects and provide a schedule for future updates. At the request of Mayor C. Zehr, it was agreed that the staff recommendation be revised to reflect that the two temporary positions be funded from ISF should administrative costs become eligible and if not, then be funded from the City's Capital Contingency. Mayor Zehr commented that considerable effort was made to lobby against a 1/3 model but was not successful. He stated that he was pleased how staff had devised the funding sources to accommodate the City's 1/3 share and the ISF will go a long way toward decreasing the City's infrastructure deficit. He added that he believed the City had received less than its fair share of the ISF and he hoped that this would improve with approvals under the Recreational Infrastructure Canada Fund. Councillor J. Gazzola questioned the impact of not hiring the temporary staff. Mr. Chapman responded that it would present significant challenge, noting that there is a substantial number of major projects to be completed and if not done in the required timeframe, this would put the City's share of ISF in jeopardy. He added that the Federal Government is considering an administrative allotment of 2.5% of project values, whereas, the temporary staff proposed here equates to only 0.5% of project values. Councillor Gazzola inquired if a recently contracted position could be of assistance and Mr. Chapman advised that he would investigate the feasibility of same, however, he was not certain the person would have the required technical skills. Councillor Gazzola inquired if there had been any change from the original list of locations for the Storm Water Infrastructure and Sewer Watermain Rehabilitation projects and Mr. G. McTaggart advised that the locations remain the same. Councillor Gazzola expressed surprise at the balance of uncommitted infrastructure funding in the City's accounts. At the request of Councillor B. Vrbanovic, it was agreed to revise the staff recommendation to provide that reference to the Community Adjustment Fund also be included in respect to the proposed temporary implementation measures. He also noted that the application process for the Green Infrastructure Fund (GIF) has been launched. Mr. Chapman advised staff is aware and will be proceeding to submit application under the GIF program. On motion by Mayor C. Zehr - itwas resolved: "That the funding sources identified in Table 1 of Financial Services Department report FIN-09-077 be approved as the source of the City of Kitchener's 1/3 share of funding for the Infrastructure Stimulus Fund eligible project costs totalling $10,121,665.; and, That the following measures be adopted to accelerate the implementation of Infrastructure Stimulus Fund projects, and Recreational Infrastructure Canada Fund and Community Adjustment Fund projects (as may be approved at a future date): 1. the Mayor and Clerk be authorized to sign Provincial and Federal agreements as they relate to the Infrastructure Stimulus Fund, the Recreational Infrastructure Canada Fund and the Community Adjustment Fund, subject to the satisfaction of the City Solicitor; 2. the Chief Administrative Officer be designated to award tenders on Infrastructure Stimulus Fund, the Recreation Infrastructure Canada Fund projects and the Community Adjustment Fund projects, provided that the costs are within the projected expenses outlined in the applications and that a report regarding these awards be brought to Council at a future meeting; FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 22. 2009 - 117 - CITY OF KITCHENER 8. FIN-09-077 -INFRASTRUCTURE STIMULUS FUNDING AND PURCHASING PROCESS - (CONT'D) 3. the extension of consulting services provided by The Walter Fedy Partnership, Kitchener in the amount of $69,688.50, including disbursements and GST, related to the McLennan Park Development Phase 4 be approved; 4. for Consultant projects over $100,000., cost information be included with the original submission, the interview process be waived where appropriate, and the selection be based on the original submissions; 5. a contract Purchasing Assistant be retained for up to 24 hours per week over an eight-month period to expedite the tendering, selection and contract processing aspects of the City's approved projects, to be funded from Infrastructure Stimulus funding should administrative costs become eligible, or otherwise be funded from the City's Capital Contingency; and, That the General Manager of Financial Services be directed to report to the Finance and Corporate Services Committee on August 10, 2009 with a status update on the Infrastructure Stimulus Fund, the Recreation Infrastructure Canada Fund projects, and the Community Adjustment Fund, including a schedule for future project updates for the Committee; and further, That a contract Accounting Technician be retained for up to 24 hours per week over a twenty-two month period to assemble cost documentation, facilitate quarterly reporting and claim submission, and to support overall program coordination, including regular reporting to the Finance and Corporate Services Committee; the position to be funded from Infrastructure Stimulus funding should administrative costs become eligible, or otherwise be funded from the City's Capital Contingency." 9. CAO-09-037 -THREE YEAR LEASES -KITCHENER MARKET UPPER LEVEL VENDORS The Committee considered Chief Administrator's Office report CAO-09-037, dated June 15, 2009 concerning lease agreements for upper level Market vendors. In response to Councillor J. Gazzola, Ms. K. Weiss advised that a number of other priorities related to the Market delayed the process for renewal of the leases and rental rates applying to the leases will become effective as of August 1, 2009. She added that the costs applied to grease trap cleaning and cooler maintenance reflect current industry rates and she could not say at this time if there would be future increases applied. At the request of Councillor G. Lorentz, it was agreed to revise the staff recommendation to reflect the effective date for rental rates as August 1, 2009. On motion by Councillor G. Lorentz - itwas resolved: "That the Mayor and Clerk be authorized to execute a three (3) year lease with the upper level market vendors at the Kitchener Market located at 300 King St. E., Kitchener, Ontario, subject to the satisfaction of the City Solicitor; and further, That a rental fee of $9.00 / sq. ft. for year one be included in each lease effective as of August 1, 2009, with an annual rental increase totalling $13.00 / sq. ft. for year two and $17.00 / sq. ft. for year three." 10. FIN-09-080 -PROVINCIAL HARMONIZED SALES TAX The Committee considered Financial Services Department report FIN-09-080, dated June 16, 2009 recommending endorsement of the City of Cornwall's resolution, dated April 27, 2009 appealing to the Government of Ontario to exempt recreation facilities and registration fees for minor sports from the planned harmonization of the PST and GST taxes. FINANCE AND CORPORATE SERVICES COMMITTEE JUNE 22. 2009 - 118 - CITY OF KITCHENER 10. FIN-09-080 -PROVINCIAL HARMONIZED SALES TAX (CONT'D) Councillor J. Gazzola raised concerns that this matter is premature in that, there is likely to be further requests for exemption and it would be his preference to consider all at the same time as it may have greater impact. Councillor B. Vrbanovic anticipated that the Association of Municipalities of Ontario and other relevant groups would be working on developing a common position; however, in the interim he suggested that it would be prudent to support the City of Cornwall. On motion by Mayor C. Zehr - itwas resolved: "That the resolution adopted by the City of Cornwall on April 27, 2009 regarding an appeal to the Provincial Government to exempt from the planned harmonization of the PST and GST taxes items related to the rental of recreation facilities and registration fees for minor sports to ensure that all youth are able to afford to participate, be endorsed; and further, That a copy of this motion be circulated to area MPP's, the Association of Municipalities of Ontario and the Premier of Ontario." 11. ADJOURNMENT On motion, the meeting adjourned at 3:50 p. m. J. Billett Committee Administrator