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HomeMy WebLinkAboutFin & Corp Svcs - 2009-10-05FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 5, 2009 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 1:05 p. m. Present: Councillor B. Vrbanovic -Chair Mayor C. Zehr and Councillors J. Smola, G. Lorentz, J. Gazzola, 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 S. Adams, Director, Community & Corporate Planning R. Regier, Executive Director, Economic Development R. Gosse, Director, Legislated Services & City Clerk C. Fletcher, Director, Facilities Management R. Upfold, Director of Accounting S. Allen, Manager, Engineering Designs & Approvals P. Harris, Manager of Licensing J. Billett, Committee Administrator 1. CRPS-09-129 -RECOMMENDATION OF THE ENVIRONMENTAL COMMITTEE - RESIDENTIAL ENERGY EFFICIENCY PROJECT (REEP) - ANNUAL REQUEST FOR FUNDING SUPPORT The Committee considered Corporate Services Department report CRPS-09-129, dated September 12, 2009 concerning a request for funding from the Waterloo Region Green Solutions. Councillor B. Vrbanovic declared a pecuniary interest and abstained from all discussion and voting concerning this matter as he has contracted to have a home inspection completed by Waterloo Region Green Solutions. Councillor J. Smola assumed the Chair. Councillor J. Gazzola questioned why this grant request is being considered now instead of in conjunction with all other 2010 grant requests. He added that a Financial Statement was not provided and there is no information as to the level of contributions made by other funding partners. Mayor C. Zehr noted that in this case an allotment is provided in the Environmental Committee's operating budget each year and as such, this does not represent new funding and it is not unusual to approve such requests subject to budget deliberations. Mr. D. Chapman concurred, adding that the wording of the recommendation provides that a final decision is pending budget deliberations. Councillor Gazzola inquired as to how he could obtain a better understanding of the data provided in respect to the purported results and benefits. Mr. J. Willmer suggested, and it was agreed, that staff would arrange to have a representative from the organization attend the October 13, 2009 Council meeting to answer questions. On motion by Mayor C. Zehr - itwas resolved: "That subject to consideration during the 2010 budget deliberations, $25,000. be allocated to the Waterloo Region Green Solutions, Residential Energy Efficiency Project (REEP), as part of the Environmental Committee's 2010 operating budget." Councillor B. Vrbanovic assumed the Chair. 2. FIN-09-134- CONTRACT EXTENSION - 1614310 ONTARIO INC. - CONSULTING SERVICES -CORPORATE FINANCIAL & INFRASTRUCTURE MANAGEMENT SYSTEMS (DELTAI The Committee considered Financial Services Department report FIN-09-134, dated September 28, 2009 concerning a request to extend the consulting services for the Corporate Financial and Infrastructure Management System (DELTA). FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 5, 2009 -137 - CITY OF KITCHENER 2. FIN-09-134- CONTRACT EXTENSION - 1614310 ONTARIO INC. - CONSULTING SERVICES -CORPORATE FINANCIAL & INFRASTRUCTURE MANAGEMENT SYSTEMS (DELTA) (CONT'D) On motion by Mayor C. Zehr - itwas resolved: "That the Mayor and Clerk be authorized to execute an amending agreement with 1614310 Ontario Inc. to extend consulting services on the Corporate Financial and Infrastructure Management System (Delta) Project from January 1, 2010 to March 12, 2010 at an estimated cost of $37,485 plus GST; said agreement to be satisfactory to the City Solicitor." 3. CRPS-09-134 -DECLARE LANDS SURPLUS OF VACANT LAND ON FERGUS AVENUE, INCLUDING PART OF SOLON AVENUE, CLOSED, FOR EASEMENT AND POSSIBLE CONVEYANCE The Committee considered Corporate Services Department report CRPS-09-134, dated September 30, 2009 concerning the declaration of City-owned vacant lands as surplus for purpose of conveying an easement and potential future conveyance of the lands. On motion by Mayor C. Zehr - itwas resolved: "That the lands located on Fergus Avenue, in the City of Kitchener, owned by the Corporation of the City of Kitchener, described as Part of Farm Lot, Registered Plan 589 & Part of 1 foot reserve 'A', Part of Lot 196, Streets & Lanes, Registered Plan 687, more particularly described as Parts 1-5 on Plan 58R-16463, being Part of Solon Avenue, an untravelled closed road allowance, be declared surplus to the City's needs for the purposes of conveying an easement to Rogers over Parts 2 and 4 of Plan 58R-16463, and the possible future conveyance of Parts 1 - 5 on Plan 58R-16463; and, That all costs associated with the closing and conveyance of that portion of Solon Avenue are to be deducted from any future sale proceeds of said lands; and further, That the Mayor and Clerk be authorized to execute any documentation in this regard required by and to the satisfaction of the City Solicitor." 4. CRPS-09-135 -TERMS OF REFERENCE -NOMINATING COMMITTEE The Committee previously considered Corporate Services Department report CRPS-09-123 dealing with Terms of Reference for the Nominating Committee at its meeting held September 14, 2009. Subsequently, this matter was deferred and referred back to Committee for further consideration of including designated representation from various organizations within the Terms of Reference. The Committee considered this date Corporate Services Department report CRPS-09-135, dated September 30, 2009, which provides further information and recommends that the Terms of Reference attached to report CRPS-09-123 be adopted. It was noted in the report that staff will undertake to solicit local not-for-profit, and/or social organizations, and/or City affiliated groups for interested candidates to sit on future Nominating Committees. Mayor C. Zehr commented that it was not so much getting a representative from a particular not-for-profit or cross section of specific sectors as getting someone with broad knowledge of the community and cited an example of the model used by the K-W Community Foundation. Councillor B. Vrbanovic concurred, noting that his suggestion stemmed from the difficulty experienced in filling citizen appointments for the Nominating Committee and the concerns individuals raised in respect to appointees being excluded from sitting on any other Advisory Committees. He suggested that designated representatives like the Chair and/or Executive- Director of organizations such as the K-W Community Foundation or United Way could become the Committee, if willing; adding that they would bring broad community knowledge in an unbiased manner and likely not have any desire to sit on multiple Committees given the extent of their own work responsibilities. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 5, 2009 -138 - CITY OF KITCHENER 4. CRPS-09-135 -TERMS OF REFERENCE -NOMINATING COMMITTEE (CONT'D) Mayor Zehr inquired as to timing of naming the Nominating Committee. Mr. R. Gosse advised that the Committee is in place and what is requested for approval this date is adoption of the Terms of Reference for the Committee. He added that it is preferred not to put specific organizations in the Terms of Reference but rather staff would look at soliciting organizations as part of the recruitment process. Councillor Vrbanovic suggested that it would be more simplified if they were already included in the Terms of Reference and there would then be no need to recruit. Councillor J. Gazzola questioned the value of the Nominating Committee, noting the difficulty in recruiting and suggesting that it is no more than an added level of bureaucracy. Ms. S. Adams stated that the Nominating Committee provides a more co-ordinated approach to the overall Committee appointments process and suggested that the Terms of Reference should be focused on appointing persons with broad community knowledge rather than on a specific organization. She suggested that the Terms of Reference could make general provision for a representative from any like organization that may be well connected in the community. Mr. Gosse added that the Nominating Committee does not vet applications but works rather to create a diversity lens in review of incoming applications. A list of potential nominees devised by the Committee is provided to Council based on their review; however, Council also receives additional information on the full complement of applications and makes the final decision. Mayor Zehr referred to Councillor Vrbanovic's suggestion that it would be simpler to include specified members of certain organizations in the Terms of Reference to fill the positions. Mr. Gosse requested clarification, asking if the intent was to fill all 5 positions with an organizational representative and Councillor Vrbanovic concurred. Mr. Gosse noted that staff had approached the issue on the basis of the difficulty of filling the last of 5 positions with a representative from a specific organization and the remainder to still be filled from citizen appointments. Councillor Vrbanovic suggested that the K-W Community Foundation model makes sense and should be looked at. Mayor Zehr questioned if any organizations had been approached. Ms. Adams advised that specific organizations have not been approached at this time; however, she noted that in initial appointments to the Nominating Committee many organizations, together with citizens at large, were solicited and only 4 applications were received. Mayor Zehr suggested there is a need to canvass organizations and explain the process to ascertain their interest, as if none are willing, the matter would become a mute point. On motion by Mayor C. Zehr - itwas resolved: "That the following recommendation contained in Corporate Services Department report CRPS-09-123 (Terms of Reference -Nominating Committee), be deferred for further consideration to the October 26, 2009 Finance and Corporate Services Committee meeting, pending dialogue with various organizations to determine their interest in representation on the Nominating Committee: 'That the Terms of Reference for the Nominating Committee, as attached to Corporate Services Department report CRPS-09-123, be approved."' 5. CRPS-09-133 -MEETING INVESTIGATOR 2010 The Committee considered Corporate Services Department report CRPS-09-133 dated September 29, 2009 concerning renewal of a service agreement to provide closed meeting investigations. Mr. R. Gosse advised that staff is recommending the service agreement with Local Authority Services Ltd. (LAS) be terminated in favour of using a no cost service provided by the Ontario Ombudsman. It was noted that the City has taken steps to ensure that closed meeting requirements of the Municipal Act are met and no requests for closed meeting investigations have been received over the 2 year period of the existing agreement. On motion by Councillor J. Gazzola - itwas resolved: FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 5, 2009 -139 - CITY OF KITCHENER 5. CRPS-09-133 -MEETING INVESTIGATOR 2010 (CONT'D) "That the service agreement with Local Authority Services Ltd. to provide closed meeting investigations pursuant to Section 239.1 of the Municipal Act, 2001, as amended, be terminated effective December 31, 2009." 6. CRPS-09-132 -PERMANENT VENDOR LICENSE FEES The Committee considered Corporate Services Department report CRPS-09-132, dated September 28, 2009 concerning a request from Council to investigate an alternate fee structure for individual entrepreneurs (home businesses). Three options for consideration of the Committee were provided: continue with the existing practice of a one time licence fee for both commercial and home businesses (2009 fee at $301.); aone-time licence fee of $200. for both commercial and home businesses with a $50. renewal fee; or a separate category for home businesses with aone-time licence fee of $200. Councillor J. Gazzola inquired of the three options which staff would recommend and Ms. P. Harris responded that it would be staff's preference to continue with the existing practice of a one-time licence fee for both commercial and home businesses. A motion by Councillor G. Lorentz was brought forward for consideration to approve continuation of the existing practice of a one-time Permanent Vendor licence fee for both commercial and home businesses. Councillor Lorentz disagreed that the current fee structure needs to be changed, noting that the one-time fee is not exorbitant, can be written off as a business expense, and is a set fee with no yearly renewals required. He suggested that a system of tracking home businesses to ensure they are licensed is more important. Ms. P. Harris advised that staff currently track home business operations through a number of methods, including newspaper advertisements placed by a business and by educating operators in what is needed to start a business (ie. use of new technology - BizPal). Mayor C. Zehr commented that the Working Centre encourages those unemployed to create income for themselves and one such individual desiring to start a home business had indicated difficulty in paying the licence fee. He recognized that a number of options were given to the individual but raised concerns that the City may be asking too much of small businesses given the current economic climate. He suggested that the City does not need to be a 'big brother' in respect to whom else may be operating out of their homes unless it is an illegal business. Mayor Zehr advised that the individual in question ultimately chose not to start their business because they could not afford the licence fee and suggested that in some instances the City's practice may be overkill. Councillor J. Gazzola inquired as to the purpose of the licence fee. Ms. Harris advised that primarily it focuses on providing consumer protection. She added that in 2004 an analysis of the fee structure was undertaken in which it was determined the cost recovery for a Permanent Vendor licence would actually be $600. per licence in order to cover administrative, enforcement and legal costs. The fee was set at $258. at that time so as not to create a financial burden. Councillor Gazzola inquired how the City protects the consumer. Mr. Gosse advised that a Licensing Tribunal is struck to hear matters concerning businesses operating illegally or whose operational integrity has been found to be questionable and can result in suspension and/or revoking of a licence. Mr. Gosse also noted that the City is able to provide information as to a business contact to consumers experiencing difficulties with a particular business. He added that changing the fee structure for home businesses may create a disadvantage for commercial business owners, in that, home businesses may provide similar goods and services at a more competitive price as they do not have the same overhead costs or take similar risk in rental of a commercial unit. Councillor Vrbanovic cited another example of a home business questioning if in the particular instance the business would be known and/or require a licence. Ms. Harris advised that if found to be selling goods and services it would require a licence to operate. Councillor Vrbanovic requested clarification on the basis of the business only operating at certain times during a week and Ms. Harris advised that this scenario would require a temporary vendor licence. She added that a temporary vendor licence is issued based on consecutive periods of FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 5, 2009 -140 - CITY OF KITCHENER 6. CRPS-09-132 -PERMANENT VENDOR LICENSE FEES (CONT'D) up to 3 per year, with fees up to $1,000. and such business operators have in some cases chosen to obtain the one time Permanent Vendor licence instead because it is less expensive. Councillor Vrbanovic questioned if consideration was given to differentiating between home businesses that do or do not have customers /clients coming to the home. Ms. Harris advised no differentiation is made as it is difficult to determine on start-up of a business if the operation will change from initially not having patrons attend the home to subsequently deciding to do so. Councillor Vrbanovic inquired if by creating a new fee structure for home businesses, difficulties would arise in instances where if may be necessary to consider revoking a licence. Mr. Gosse advised that it would not as they would be dealt with in the same manner through a Licensing Tribunal. Councillor Lorentz agreed that the licence fee should not be a stumbling block but suggested there are other means to accommodate a struggling entrepreneur, such as devising a fee payment schedule or allowing a request to Council to waive the fee. Ms. Harris advised that staff already do work with individuals on a case by case basis to develop a fee payment schedule where there is a need. On motion by Councillor G. Lorentz - itwas resolved: "That aone-time Permanent Vendor licence fee continue to be charged to new business owners (both commercial and home businesses), in the amount as annually approved by Council." 7. FIN-09-119 -INFRASTRUCTURE STIMULUS PROJECT UPDATE -SEPTEMBER 2009 The Committee considered Financial Services Department report FIN-09-119, dated September 29, 2009 recommending a number of measures to accelerate implementation of projects under the Infrastructure Stimulus Fund; Community Adjustment Fund; and Recreational Infrastructure Canada Fund. Mr. D. Chapman advised that staff is recommending extensions to various purchase orders because of the difficulty of separating out the infrastructure stimulus component of projects and to ensure projects are completed on time. A summary of project status was provided, including the Consolidated Maintenance Facility (CMF), McLennan Park, Sportsworld Arena upgrades and King Street reconstruction. Mr. Chapman advised that project timelines have also been updated and no further revisions will be made so as to track actual progress against this plan. He added that staff is still awaiting a decision on applications related to the Aquatic Facility upgrade and Solar Retrofits project. Mr. Chapman noted that staff had been requested to consider the possibility of leveraging funds from the Green Infrastructure Fund to enhance funding capacity of the Local Environmental Action Fund (LEAF); however, it has been determined that current applications under LEAF are ineligible as they have already been approved for funding by the City with costs already incurred in most cases. This will be a consideration in the next intake of LEAF applications. Mr. Chapman further noted that an announcement on the City's application to the Ontario Power Authority for approval of the CMF Solar Roof project under the Feed In Tariff program is anticipated by year end. Councillor J. Gazzola questioned the total cost of the King Street reconstruction project and Mr. S. Allen advised that the original budget was $9M and $1.2M was added under the Community Adjustment Fund. Mr. D. Chapman added that the total project cost is approximately $10.8 M. Councillor Gazzola requested clarification in respect to extension of purchase orders, questioning how stimulus funding for the CMF was obtained and how staff can report to the Federal /Provincial governments on stimulus spending if it is not possible to sort these components from the original scope of the project. Ms. P. Houston clarified that the issue is in having differing consultants work on one project. Mr. Chapman provided an example in respect to the mechanical /electrical work, wherein LEED standards are now adding another part to improvements but one contractor is needed to design the overall work. Councillor Gazzola requested clarification of the issue of the 'as built' drawings for the Sportsworld Arena. Ms. C. Fletcher explained that the original Twin Pad project was undertaken as a 'design /build' project through Ball Construction and as a result of the original FINANCE & CORPORATE SERVICES COMMITTEE MINUTES OCTOBER 5, 2009 -141 - CITY OF KITCHENER 7. FIN-09-119 - INFRASTRUCTURE STIMULUS PROJECT UPDATE -SEPTEMBER 2009 - (CONT'D) owner's financial position the drawings were never completed. The drawings are the property of Ball Construction and to accelerate the upgrades it is recommended that Ball Construction be retained to complete the drawings. She pointed out that if staff are required to tender the work, it will be like starting over with another company having to come in to measure the building, do a complete inventory and create new 'as built' drawings, at substantially higher cost than having Ball Construction continue on from where the original project stopped. On motion by Councillor K. Galloway - itwas resolved: "That the following measures be adopted to accelerate the implementation of Infrastructure Stimulus Fund projects: • the extension of Purchase Order Number 200387 for Architect Consulting Services provided by Giffels Associates Limited / IBI Group in the amount of $222,961.66, including disbursements and GST, related to the Consolidated Maintenance Facility Improvements project; • the extension of Purchase Order Number 200572 for Mechanical and Electrical Consulting Services provided by Morrison Hershfield Limited in the amount of $470,452.50, including disbursements and GST, related to the Consolidated Maintenance Facility Improvements project; • the extension of Purchase Order Number 200459 for LEED Consultant Services provided by Morrison Hershfield Limited in the amount of $92,635.66, including disbursements and GST, related to the Consolidated Maintenance Facility Improvements project; • the extension of Purchase Order Number 200840 for Consulting Services provided by The Walter Fedy Partnership in the amount of $223,174.88, including disbursements and GST, related to the McLennan Park Infrastructure Improvement project; • the Mayor and Clerk be authorized to execute a'cost plus' agreement with Ball Construction for the completion of the design and construction of Sportsworld Arena improvements to an upset limit of $900,000; said agreement to be to the satisfaction of the City Solicitor; and, That the following measure be adopted to accelerate the implementation of the Community Adjustment Fund project: • the King Street Reconstruction Project be delivered by general contractors and consultants under existing construction contracts and consulting contracts through a standard change order process as per purchasing guidelines; and further, That the following measure be adopted to accelerate the implementation of any project for which funding is approved through the Infrastructure Stimulus Fund, the Recreational Infrastructure Canada Fund and the Community Adjustment Fund: • the Mayor and Clerk be authorized to execute any amendments to Agreements pertaining to Projects for which funding is approved through the Infrastructure Stimulus Fund, the Recreational Infrastructure Canada Fund and the Community Adjustment Fund, if necessary, and provided said amendments are satisfactory to the City Solicitor. 8. ADJOURNMENT On motion, the meeting adjourned at 2:00 p. m. J. Billett Committee Administrator