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Home My WebLink AboutCouncil Agenda - 2020-06-22 S CHRISTINE TARLING Director of Legislated Services & City Clerk Corporate Services Department nd Kitchener City Hall, 2Floor 200 King Street West, P.O. Box 1118 Kitchener, ON N2G 4G7 Phone: 519-741-2200 x 7809 Fax: 519-741-2705 Christine.tarling@kitchener.ca Due to COVID-19 and recommendations by Waterloo Region Public Health to exercise physical distancing, City Hall is closed to the public. Members of the public are invited to participate in the open portion of this meeting electronically by accessing the meeting live-stream video at kitchener.ca/watchnow. While in-person delegation requests are not feasible at this time, members of the public are invited to submit written comments to Jeff Bunn, Deputy City Clerk, at jeff.bunn@kitchener.ca, which will be provided to the Mayor and Council prior to the meeting, and will form part of the public record. June 19, 2020 Mayor B. Vrbanovic and Members of Council Re: Special Council Meeting Monday, June 22, 2020 Notice is hereby given that Mayor B. Vrbanovic has called a special meeting of City Council to be held electronically on Monday, June 22, 2020 at 1:00 p.m. to consider the following: 1. In-camera Meeting Authorization Council is asked to enact the following resolution to authorize an in-camera meeting: "That an in-camera meeting of City Council be held to consider two matters subject to solicitor-client privilege Recess and Re-convene The meeting will then recess and reconvene immediately following the in-camera meeting at approximately 2:00 p.m. 2. Notice of Motion Essential Workers Day March 17 Councillor C. Michaud has given notice that she will introduce the following motion for consideration this date: WHEREAS the Province of Ontario enacted a Declaration of Emergency on March 17th, 2020 in response to the COVID-19 Worldwide Pandemic; and, CHRISTINE TARLING Director of Legislated Services & City Clerk Corporate Services Department nd Kitchener City Hall, 2Floor 200 King Street West, P.O. Box 1118 Kitchener, ON N2G 4G7 Phone: 519-741-2200 x 7809 Fax: 519-741-2705 Christine.tarling@kitchener.ca WHEREAS in response to the COVID-19 pandemic, the Province of Ontario and the City of Kitchener have declared a state of emergency under the Emergency Management and Civil Protection Act; and, WHEREAS citizens are asked to isolate at home to reduce the spread of COVID-19 as essential workers continue to work and provide an essential service to their community; and, WHEREAS essential workers across the country are risking their lives; and, WHEREAS some essential workers have been stricken with illness, suffered trauma or injury, or lost their lives as a result of providing an essential service; and, WHEREAS without this dedicated workforce, essential services, including but not limited to, healthcare, police, fire, paramedics, military, social services, community services, food distribution, agriculture, postal and delivery services, education, security, transit, financial services, hospitality, commerce, manufacturing, construction, maintenance and repair, waste management, sanitation services, government, and administrative services would fail to function; and, WHEREAS our community owes a profound debt of gratitude to every single essential worker who ensured our community could continue to operate; NOW THEREFORE, on behalf of Kitchener residents, the Council of the City of Kitchener extends their heart-felt appreciation and gratitude to all essential workers for their vital efforts and sacrifices during the COVID-19 pandemic; and, BE IT FURTHER RESOLVED that the City of Kitchener encourages the Government of Ontario and the Government of Canada to declare March 17 to be Essential Workers Day to honour all of the essential workers who sacrificed so much during the COVID-19 pandemic; and, BE IT FINALLY RESOLVED that this resolution be forwarded to municipalities within the Region of Waterloo; the Association of Municipalities of Ontario; the Federation of Canadian Municipalities; and the Local Members of Federal and Provincial Parliament. 3. Notice of Motion Electronic Meeting Participation Procedural Amendment Councillor S. Davey has given notice that he will introduce the following motion for consideration this date: WHEREAS the World Health Organization declared COVID-19 a pandemic on March 11, 2020, the Province of Ontario declared a state of emergency on March 17, 2020 and both the Region of Waterloo and the City of Kitchener declared states of emergency on March 25, 2020; and, CHRISTINE TARLING Director of Legislated Services & City Clerk Corporate Services Department nd Kitchener City Hall, 2Floor 200 King Street West, P.O. Box 1118 Kitchener, ON N2G 4G7 Phone: 519-741-2200 x 7809 Fax: 519-741-2705 Christine.tarling@kitchener.ca WHEREAS, as a response to the COVID-19 pandemic, the City of Kitchener as of March 18, 2020, has closed, or restricted public access, to city facilities; and, WHEREAS on March 23, 2020, City Council adopted temporary provisions permitting electronic meeting participation for all meetings of Council (special council and caucus) only during a declared emergency; and, WHEREAS Section 238 of the Municipal Act permits municipal Councils to amend their Procedural By-laws to allow for electronic meeting participation in a meeting which is open to the public; and, WHEREAS the Council of the City of Kitchener deems it desirable to temporarily extend permissions to conduct all meetings electronically where possible and to support the facilitation of City business while adhering to COVID-19 precautions established by public health authorities; THEREFORE IT BE RESOLVED THAT City Council temporarily extends permissions for electronic meeting participation for all Committees of Council, Quasi- Judicial Committees and Advisory Committees only during the declared emergency; THEREFORE IT FINALLY BE RESOLVED that a by-law be considered for three readings to amend the City of Kitchener Municipal Code Chapter 25 (Procedure) to further extend approval on a temporary basis for electronic participation for all Committees of Council, Quasi-Judicial Committees and Advisory Committees. 4. Notice of Motion Community Outreach Program Councillor M. Johnston and Mayor B. Vrbanovic has given notice that they will introduce the following motion for consideration this date: WHEREAS a Community Outreach Program has provided mentorship opportunities to more than 1300 youth in our community over the past 20+ years; and, WHEREAS concerns have been raised about the program from a cross-section of residents, including residents of the African, Caribbean and Black community and organizations; and, WHEREAS the program will be paused in 2020 due to COVID-related public health restrictions; THEREFORE IT BE RESOLVED THAT the City of Kitchener conduct a review of the program which will include engaging program stakeholders (including past participants, program partners and members of the African, Caribbean and Black community) to determine what is working well with the program and what changes should be made going forward; and that the findings of that review and recommendations for any changes be presented to City Council for its consideration no later than the end of January 2021. CHRISTINE TARLING Director of Legislated Services & City Clerk Corporate Services Department nd Kitchener City Hall, 2Floor 200 King Street West, P.O. Box 1118 Kitchener, ON N2G 4G7 Phone: 519-741-2200 x 7809 Fax: 519-741-2705 Christine.tarling@kitchener.ca 5. FIN-20-045 2019 Audited Consolidated Financial Statements Attached is Financial Services Department report FIN-20-045 2019 Audited Consolidated Financial Statements (S. Brisbane), dated May 28, 2020. (Tom Mennill, KPMG, will make a 10-minute presentation on this matter) 6. CAO-20-002 2nd Quarter Audit Status Report nd -20-02 2 Quarter Audit Status Report (C. Tasker), dated June 2, 2020. (Staff will make a 5-minute presentation on this matter) 7. DSD-20-075 City of Kitchener Recovery Planning: Stage 2 Re-openings Attached is Development Services Department report DSD-20-075 City of Kitchener Recovery Planning: Stage 2 Re-openings (J. Readman), dated June 17, 2020. (Staff will make a 5-minute presentation on this matter) 8. DSD-20-073 Activation of Streets Attached is Development Services Department report DSD-20-073 Activation of Streets (B. Cronkite), dated June 4, 2020. (Staff will make a 5-minute presentation on this matter) 9. FIN-20-046 2020 Capital Project Deferrals and Closures Attached is Financial Services Department report FIN-20-046 2020 Capital Project Deferrals and Closures (R. Hagey), dated June 9, 2020. (Staff will make a 5-minute presentation on this matter) 10. DSD-20-068 Demolition Control Application DC20/005/F/ES 312 Forest Creek Drive Hallman Construction LTD Attached is Development Services Department report DSD-20-068 Demolition Control Application DC20/005/F/ES (D. Ross), dated April 8, 2020. 11. DSD-20-070 Addendum to DSD-20-061 - Private Street Naming 30 Saddlebrook Court Attached is Development Services Department report DSD-20-070 Addendum to DSD- 20-061 Private Street Naming (T. Seyler), dated June 5, 2020. CHRISTINE TARLING Director of Legislated Services & City Clerk Corporate Services Department nd Kitchener City Hall, 2Floor 200 King Street West, P.O. Box 1118 Kitchener, ON N2G 4G7 Phone: 519-741-2200 x 7809 Fax: 519-741-2705 Christine.tarling@kitchener.ca 12. FIN-20-048 Sole Source FPO20-119 Geographical Information Systems (GIS) Software Attached is Financial Services Department report FIN-20-048 Sole Source FP020-119 Geographical Information Systems (GIS) Software (R. Scott), dated June 1, 2020. Information Items 13. FIN-20-022 2019 Yearend Variance Attached is Financial Services Department report FIN-20-022 2019 Yearend Variance (D. Fagerdahl), dated June 9, 2020. 14. FIN-20-044 FPO20-088 Microsoft Enterprise Agreement Attached is Financial Services Department report FIN-20-044 FPO20-088 Microsoft Enterprise Agreement (R. Scott), dated March 23, 2020. 15. FIN-20-047 Summary of Bid Solicitations Awarded by Manager of Procurement January 2020 to March 2020 Attached is Financial Services Department report FIN-20-047 Summary of Bid Solicitations Awarded by Manager of Procurement January 2020 to March 2020 (R. Scott), dated June 3, 2020. 16. FIN-20-049 Summary of Road Reconstruction Tenders Awarded by Chief Administrative Officer with Sidewalk Infill Attached is Financial Services Department report FIN-20-049 Summary of Road Reconstruction Tenders Awarded by Chief Administrative Officer with Sidewalk Infill (R. Scott), dated June 3, 2020. By-laws 17. By-laws for Three Readings a. Being a by-law to exempt certain lots from Part Lot Control Block 188 and Part of Block 190, Registered Plan 58M-631 Reistwood Drive and Stonehill Avenue. b. To confirm all actions and proceedings of the Council. CHRISTINE TARLING Director of Legislated Services & City Clerk Corporate Services Department nd Kitchener City Hall, 2Floor 200 King Street West, P.O. Box 1118 Kitchener, ON N2G 4G7 Phone: 519-741-2200 x 7809 Fax: 519-741-2705 Christine.tarling@kitchener.ca Yours truly, C. Tarling Director of Legislated Services & City Clerk c: Corporate Leadership Team J. Bunn D. Saunderson S. Goldrup Records Accessible formats and communication supports are available upon request. If you require assistance to take part in a city meeting or event, please call 519-741-2345 or TTY 1-866-969-9994 CITY OF KITCHENER COUNCIL IN-CAMERA AGENDA DATE: MONDAY, JUNE 22, 2020 TIME: 1:00 P.M. LOCATION: ELECTONIC MEETING CAUCUS ROOM Note: Any member of Council may question the appropriateness of a listed in-camera item. This may be done during the special Council meeting or at the beginning of the in-camera session. ITEMS FOR CONSIDERATION 1. Solicitor-Client Privilege (Agreement to Advance Construction in Southwest Kitchener to Expedite Library) (15 min) Staff will provide information and seek a decision with respect to this item. 2. Solicitor-Client Privilege (COVID-19 Emergency Declaration) (30 min) Staff will provide a verbal report with respect to this matter. C. TARLING CITY CLERK REPORT TO:Audit Committee DATE OF MEETING:June22, 2020 SUBMITTED BY:Sheri Brisbane,Supervisor Financial Reporting,519-741-2200 ext 7349 PREPARED BY:Sheri Brisbane,Supervisor Financial Reporting,519-741-2200 ext 7349 WARD (S) INVOLVED:All DATE OF REPORT:May 28, 2020 REPORT NO.:FIN-20-045 SUBJECT:2019Audited Consolidated Financial Statements ___________________________________________________________________________ RECOMMENDATION: That the 2019Audited Consolidated Financial Statements of the Cityof Kitchener be approved. BACKGROUND: Staff is pleased to submit the 2019Audited Consolidated Financial Statements of the Cityof Kitchener. Financial statement highlights have been included as Appendix A. Representatives of the City(virtually) to discuss theirAudit Findings Report. REPORT: The consolidated financial statements are prepared in accordance with Canadian generally accepted accounting principles for local governments as established by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. These financial statements are prepared on a full accrual basis and combine the results of the tax-based operations, enterprises, local boards, capital activity, and reserve fund activities. Local boards include The Centre in theSquare Inc., Kitchener Public Library, Belmont Improvement Area, and Kitchener Downtown Improvement Area. Please see Appendix Bto this report for a reconciliation between the non-consolidated results for the tax-based operations and the enterprises and the Audited Consolidated Financial Statements.Please note that the full annual report is being finalized and will be provided to Council at a later date before being posted to the City ALIGNMENT WITH CITYOF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the City through the delivery of core service. FINANCIAL IMPLICATIONS: None. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 5 - 1 COMMUNITY ENGAGEMENT: INFORM This report has been posted to the Cityagenda in advance of the council / committee meeting.The audited financial statements will be posted on the Citywebsite and notice will be provided to all residents through one of the widely distributed local newspapers in accordance with Section 295 (1) of the Municipal Act, 2001. ATTACHMENTS: The Corporation of the Cityof Kitchener consolidated financial statementsfor the year ended December 31, 2019 Financial statements for the year ended December 31, 2019 for the following entities: o The Corporation of the Cityof Kitchener Trust Funds o Belmont Improvement Area Board of Management o Kitchener Downtown Improvement Area Board of Management o Kitchener Public Library o The Centre in the Square Inc. o The Corporation of the Cityof Kitchener Gasworks Enterprise o Kitchener Generation Corporation o Kitchener Power Corp. Audit Findings Report for the year ended December 31, 2019(KPMG) ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services 5 - 2 Appendix AFinancial Statement Discussion and Analysis The following financial statement discussion and analysis has been prepared by management and should be read in conjunction with the audited consolidated financial statements and financial and statistical review. There are four required financial statements: statement of financial position; statement of operations; statement of change in net financial assets, and statement of cash flow. The consolidated financial statements reflect the assets, liabilities, reserves, surpluses/deficits, revenue, and expenditures of City funds and governmental functions or entities. These functions and entities comprise a part of the combined City operations based upon control exercised by the City. The exception is the City City 5 - 3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION The Consolidated Statement of Financial Position highlights four key figures that together describe the financial position of a government: 1) cash resources, 2) net financial asset position, 3) non-financial assets that are normally held for service provision such as tangible capital assets, and 4) accumulated surplus (deficit). The statement is used to evaluate the City commitments. The Cityt balance is $254 million, an increase of $33 million from 2018. This balance is calculated as total financial assets less liabilities and represents the amount available to finance future operations. The increase year over year is due to changes in the various balance sheet accounts which are described in the paragraphs below. Of note, many municipalities maintain a net financial liability balance as their liabilities exceed their financial assets. The fact that the City has a positive net financial asset balance and that it has grown or maintained this balance over the last number of years demonstrates the City .%4 &).!.#)!, !33%43 Cash and cash equivalents The City-term investments to meet ongoing cash requirements. The cash position has increased to $75 million from $43 million in 2018. The Consolidated Statement of Cash Flows summarizes the sources and uses of cash in both 2019 and 2018. The increase in cash held relates to growth in the City year. The interest rate on the City-term investment products at yearend so excess funds were held in the bank account rather than purchasing investments. 5 - 4 Taxes receivable The increase in Taxes receivable at yearend to $22 million from $19 million in 2018 is due to a larger amount of supplementary taxes being processed and billed just before yearend. A larger number of customers were granted instalment arrangements that allow them to pay their tax bill in smaller increments over a longer period. Some significant tax customers paid their 2019 tax bills in January 2020. 4!8%3 2%#%)6!",% !3 ! 0%2#%.4 /& #522%.4 LEVY Trade and other accounts receivable The amount in Trade and other accounts receivable has decreased to $35 million from $38 million in 2018. The 2018 balance included a sizable receivable that normally is cleared out before yearend but due to staff changeover at that entity, it was not closed out before yearend. The balance receivable from that entity has returned to a near zero balance in 2019. Loans Receivable Loans receivable have decreased to $6 million from $7 million in 2018. This is consistent with the fact that the City did not issue any new loans in 2019 and continues to collect these amounts in line with the pre-set repayment terms. 5 - 5 Inventory for resale The City holds certain inventory items for resale (normally this is related primarily to the Gasworks enterprise). This inventory has increased to $13 million from $8 million in 2018 due to certain parcels of land meeting the requirement to be classified as available for sale rather than being part of tangible capital assets. Investments The City of Kitchener invests in a manner that provides the highest return while protecting and preserving capital, maintaining liquidity to meet the daily cash flow demands and to conform to all legislation governing the investment of public funds. Investment in Kitchener Power Corp. & Kitchener Generation Corporation The City Corporation is made up of the Cityn less dividends received. See Notes 7 and 8 to the Consolidated Financial Statements for further details. Deferred revenue obligatory reserve funds There is a requirement to defer specific funding until those funds have been spent on eligible projects. The increase in deferred revenue obligatory reserve funds to $46 million from $35 million in 2018 is primarily due to much higher collections of development charges and the amount of Federal Gas Tax grants received more than doubling in 2019 compared to 2018. Please see Note 10 to the financial statements which provides greater detail regarding activity in both years. Deferred Revenue Other Certain user fees and charges are collected for which the related services have yet to be performed. These are recorded under the classification Deferred revenue - other. Deferred revenue - other has increased by $2 million to $26 million in 2019. The increase relates to funds contributed by developers to move up the timing of capital projects. These funds will be returned by way of a reduction in the amount of development charges collected in the future from these developers. 5 - 6 Municipal debt The City has three components that comprise the overall debt total. Debt has been issued to fund: a portion of the tax-supported capital program capital improvements to Enterprises, where the debt charges will be funded through user fees or external sources, such as the Parking Enterprise or the Kitchener Rangers the Economic Development Investment Fund (EDIF) -5.)#)0!, $%"4 The City must comply with annual debt and financial obligations limits as outlined in Ontario Regulation 403/02. The Province provides the City with an Annual Repayment Limit that caps overall debt charges to 25% of the Cityte a responsible approach to debt management, the City has established its own debt limits as follows: Tax supported debt charges will be limited to 10% of the City Rate supported debt charges will be limited to 10% of the City supported revenues Capital Pool debt charges will not increase by more than 5% annually The City created EDIF in 2004 as a $110 million commitment to invest in catalyst projects to strengthen the local economy and stimulate urban development in Downtown Kitchener. EDIF investments have had a remarkably positive impact on the City, increasing the City innovation, entrepreneurship, and a sought-after urban lifestyle. 5 - 7 Municipal debt has decreased to $64 million from $71 million in 2018. The change in debt is a result of new debt issuance of $4.1 million offset by repayment of $11.3 million of existing debt. Debt is expected to decrease for the next number of years as the EDIF program continues to be paid down. Employee future benefits Total employee future benefits includes liabilities for future sick leave costs, post-retirement benefits and future Workplace Safety and Insurance Board (WSIB) payments. The liability has increased from $49 million in 2018 to $51 million in 2019. The increase relates to rising cost of benefits and additional coverages introduced by WSIB as well as a decrease in the interest rate used. Tangible capital assets Tangible capital assets are recorded at cost, which includes all amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost less residual value of the tangible capital assets is amortized on a straight-line basis over their estimated useful lives ranging from 2 to 100 years. During 2019, the City acquired $116 million in tangible capital assets (2018 - $122 million). Amortization of assets was $50 million (2018 - $48 million). Refer to Note 14 and Schedule A of the Consolidated Financial Statements for a detailed breakdown of tangible capital asset activity for 2019 and 2018. The net book value of tangible capital assets at December 31, 2019 is $1.24 billion, up from $1.19 billion in 2018. 4!.')",% #!0)4!, !33%43 "9 !33%4 490% Linear Assets $695M ($663M) Assets under construction $66M ($45M) Land$200M ($194M) Vehicles$16M ($17M) Computer Hardware & Software$21M ($22M) Leasehold Improvements Land Improvements $2M ($2M) Buildings $42M ($36M) Machinery and Equipment $174M ($181M) $26M ($25M) 5 - 8 Accumulated surplus The City- $1.41 billion). The accumulated surplus reflects the resources that have been built over time at the City and the balance includes items such as tangible capital assets, equity in Kitchener Power Corp. and Kitchener Generation Corporation, and various reserves. Reserve funds Reserve funds are included as part of accumulated surplus and these balances are disclosed in Note 15 to the financial statements. Reserve fund balances have increased during 2019 to $85 million (2018 - $70 million). Under the authority of the Municipal Act, the City and certain of its consolidated entities have established reserve funds to ensure future liabilities can be met, capital assets are properly maintained and sufficient financial flexibility exists to respond to economic cycles or unanticipated financial requirements. Council or the Boards of the consolidated entities are responsible for exercising discretion with respect to the use of reserve funds, subject to the terms of their respective policies, as well as ensure the reserves continue to support the financial goals and serve the highest priority needs of the City and its citizens. 2%3%26% &5.$3 5 - 9 CONSOLIDATED STATEMENT OF OPERATIONS The Consolidated Statement of Operations reports the revenue collected by the City, the cost of providing municipal services and the resulting annual surplus/deficit. This year, overall assessment growth was 2.53%. While this new assessment creates revenue for the City, there is also a cost to provide services to new development. In addition, cost increases in excess of inflation, public demand for new services and unreliable revenue sources all place significant pressure on the City budget. The tax rate increase for 2019 operations was 2.25%. 2%6%.5% "9 490% Revenue Revenue is received from the following sources: taxation; user fees from gasworks, water, sewer, storm water and other; grants and other. Kitchener is one of only two municipalities in Ontario that own and operate a natural gas utility. Gasworks revenue was $6 million higher than budget due to greater volume of gas used by the City customers compared to budget and due to some recoveries from the Region of Waterloo related to work done on gas infrastructure at the time of the light rail transit work. The decrease from 2018 of $6 million is primarily attributable to the fact that there were nine months of the cap and trade program in 2018. The program was eliminated on Oct 1, 2018, so there were no comparable revenues in 2019. The decrease from 2018 is also consistent with the reduction in rates. 5 - 10 Water, sewer & storm water revenue is $8 million greater than in 2018 due to the approved increases in the user fee rates charged for these services in addition to greater water consumption by the City customers. The increased consumption explains why revenue has exceeded budget by $5 million. Other user fees are greater than budget and prior year as a result of obligatory revenues previously deferred being recognized in 2019 as work on a significant park began. The revenue of the local boards were also higher than last year and budget. Grant revenue exceeds budget and prior year due to the introduction of some new grants after the budget had been approved and due to the additional influx of Federal Gas Tax Funds in 2019 most of which will be earned in future years as the eligible projects are completed. investment income, penalties and interest on taxes, development charge revenue recognized, and share of net income of Kitchener Power Corp. and Kitchener Generation Corporation. Revenue in this category is higher for 2019 compared to 2018 primarily due to significantly larger amounts of contributed assets to the City. The timing of asset contributions is not something the City controls. These revenue exceeded budget due to the timing of expenditures in development charge funded projects. The revenue was budgeted in earlier years, but only met the requirements to be earned within 2019. %80%.3%3 "9 &5.#4)/. Millions $100 $80 $60 $40 $20 $- GeneralProtectionTransport-Environ-RecreationOtherGasworks governmentservicesationmental& cultural servicesservicesservices 2019 Budget20192018 5 - 11 Expenses The City of Kitchener is a diversified government institution and provides a wide range of services to its citizens including fire, roads, water, sewer, natural gas, libraries, and community services. Schedule B of the Consolidated Financial Statements breaks the expenses into major functional activities, consistent with legislated requirements. As is common with most Ontario municipalities, the City of Kitchener does not budget for amortization of tangible capital assets or gains and losses on disposal of assets. However, to provide a more meaningful comparison to actuals, the Council-approved budget has been adjusted to include amortization expense and other accounting adjustments mandated by the Public Sector Accounting Board to express the financial statements on an accrual basis. This provides greater clarity for all readers in assessing budget to actual variances. Transportation services expenses are $3 million higher than budget related to the write-off of streetlights that were replaced in the LED light replacement. It was more cost effective to replace the entire network of streetlights at once rather than doing it piecemeal as the lights reached the end of their useful lives. The cost of this project is being recovered through the reduced electricity bills resulting from the higher efficiency LED bulbs. Expenses in this area exceed prior year due to the streetlight write-off and higher maintenance costs including the pilot project for clearing sidewalks in a portion of the City, an increase in multi-use trails being maintained through the winter, and new provincial standards around maintenance of sidewalks. Environmental services expenses are $6 million higher than in 2018 as a result of the increased rates for water and sewage treatment being charged by the Region of Waterloo and as a result of higher consumption of water and therefore greater sewage production by the Citys. Amortization of linear assets has also increased due to greater tangible capital asset additions in recent years. Recreation and cultural services expenses are $3 million higher in 2019 than 2018 due to higher expenses at the Centre in the Square and increased amortization due to greater tangible capital asset additions in recent years. services, and Planning and development. The expenses in this function are $5 million higher than budget due to the expenses in the budget being offset by expected proceeds on the sale of certain parcels of land. These sales were not finalized in 2019, so the proceeds are not offsetting expenses. Gasworks expenses are $8 million less than in 2018 primarily related to the fact that there were nine months of the cap and trade program in 2018. The program was eliminated on Oct 1, 2018, so there were no comparable allowance purchases in 2019. 5 - 12 %80%.3%3 "9 490% Materials and services $162M ($162M) Debenture debt interest $3M ($3M) Grants and other $4M ($6M) Amortization $49M ($48M) Loss/(Gain) on sale of assets $5M (-$4M) Salaries, wages and employee benefits $164M ($159M) CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS or deficit for the reporting year and its change in net financial assets in the same reporting year. This statement provides for the reporting of the acquisition of tangible capital assets and other significant items that impact the difference between the annual surplus/deficit and the change in net financial assets. CONSOLIDATED STATEMENT OF CASH FLOW The statement of cash flows reports changes in cash and cash equivalents resulting from operations, capital, investing and financing activities and shows how the City financed its activities during the year and met its cash requirements. 5 - 13 Appendix B Annual Surplus Reconciliation Year-end operating results are provided in report FIN-20-022 that is also included on the June 22, 2020 Special Council Agenda. The annual surplus presented in the Audited Consolidated Financial Statements reconciles to the Cityof Kitcheneryear-end results as follows: 5 - 14 KPMG LLP 115 King Street South 2nd Floor Waterloo ON N2J 5A3 Canada Tel 519-747-8800 Fax 519-747-8830 INDEPENDENT AUDITORS’ REPORT To the Mayor and Members of Council, Inhabitants and Ratepayers of he Mayor and Members of Council, Inhabitants and Ratepayers of he Mayor and Members of Council, Inhabitants and Ratepayers of the Corporation of the City of Kitchener Opinion T We have audited the consolidated financial statements ofWe have audited the consolidated financial statements ofWe have audited the consolidated financial statements ofthe Corporation of the City of Kitchener(the Entity), which comprise:(the Entity), which comprise:(the Entity), which comprise: the consolidated statement of statement of the the the financial positionfinancial positionfinancial positionas at December 31, 2019 F the consolidated statement of statement of statement of operationsoperationsoperationsfor the year then endedfor the year then ended the consolidated the consolidated the consolidated statement of change in net financial assetsstatement of change in net financial assetsstatement of change in net financial assetsfor the year then ended A the consolidated the consolidated the consolidated statement of cash flowsstatement of cash flowsstatement of cash flowsfor the year then ended and notes to the and notes to the and notes to the consolidated consolidated consolidated financial statements, including a summary of significant accounting policiesaccounting policiesaccounting policies R (Hereinafter referred to as the “(Hereinafter referred to as the “(Hereinafter referred to as the “consolidated financial statements”). In our opinion, the acconion, the acconion, the accompanying consolidated financial statements present fairly, in all material respects, thematerial respects, thematerial respects, the D consolidated financial positionof the Entity as at December 31, 2019, and its consolidated results of operations, its changes in consolidated net financial assets, and its consolidated cash flowsfor the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of theConsolidatedFinancial Statements” section of our auditors’report. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP. 1 5 - 15 Page 2 We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of theconsolidatedfinancial statements in Canada and we have fulfilled our otherethicalresponsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance Responsibilities of Management and Those Charged with Governance Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the preparation and fair presentation of the preparation and fair presentation of the consolidated financial statementsin accordance with Canadian public sector accounting standardsCanadian public sector accounting standardsCanadian public sector accounting standardsand for such internal control as management determines is necessary to enable the for such internal control as management determines is necessary to enable the for such internal control as management determines is necessary to enable the preparation ofconsolidatedfinancial statementsfinancial statementsfinancial statementsthat arethat arethat arefree from material misstatement, free from material misstatement, T whether due to fraud orerror. In preparing the consolidated consolidated financial statements, management is responsible for financial statements, management is responsible for financial statements, management is responsible for assessing the Entity’s ability to continue as a going concern, disclosing as applicable, assessing the Entity’s ability to continue as a going concern, disclosing as applicable, assessing the Entity’s ability to continue as a going concern, disclosing as applicable, F matters related to going concern and using the going concern basis of accountmatters related to going concern and using the going concern basis of accountmatters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic management either intends to liquidate the Entity or to cease operations, or has no realistic management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.alternative but to do so.alternative but to do so. A Those charged with governance are responsible for overseeing the Entity’s financial Those charged with governance are responsible for overseeing the Entity’s financial Those charged with governance are responsible for overseeing the Entity’s financial reporting process.reporting process.reporting process. R AuditorsAuditorsAuditors’ ’ ResponsibiliResponsibiliResponsibilities for the Audit of theties for the Audit of theConsolidated Financial StatementsStatementsStatements Our objectives are to obtain reasonable assurance about whether theOur objectives are to obtain reasonable assurance about whether theOur objectives are to obtain reasonable assurance about whether theconsolidated D financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue anauditors’report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of theconsolidatedfinancial statements. As part of anaudit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout theaudit. 2 5 - 16 Page 3 We also: Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for The risk of not detecting a material misstatement resulting from fraud is higher than for The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, one resulting from error, as fraud may involve collusion, forgery, intentional omissions, one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.misrepresentations, or the override of internal control.misrepresentations, or the override of internal control. Obtain an understanding of internalcontrol relevant to thecontrol relevant to thecontrol relevant to theaudit in order to design audit audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of procedures that are appropriate in the circumstances, but not for the purpose of procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. expressing an opinion on the effectiveness of the Entity's internal control. expressing an opinion on the effectiveness of the Entity's internal control. T Evaluate the appropriateness of accounting policies used and the reasonableness of Evaluate the appropriateness of accounting policies used and the reasonableness of Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.accounting estimates and related disclosures made by management.accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of Conclude on the appropriateness of management's use of the going concern basis of Conclude on the appropriateness of management's use of the going concern basis of F accounting and, based on the audit evidence obtained, whether a mataccounting and, based on the audit evidence obtained, whether a mataccounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's exists related to events or conditions that may cast significant doubt on the Entity's exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, ability to continue as a going concern. If we conclude that a material uncertainty exists, ability to continue as a going concern. If we conclude that a material uncertainty exists, A we are required to draw attention in our we are required to draw attention in our we are required to draw attention in our auditors’ report tothe related disclosures in the consolidated consolidated consolidated financial statements or, if such disclosures are inadequate, to modify our financial statements or, if such disclosures are inadequate, to modify our financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of opinion. Our conclusions are based on the audit evidence obtained up to the date of opinion. Our conclusions are based on the audit evidence obtained up to the date of R our auditors’ our auditors’ our auditors’ report. However, future events or conditions may cause the Entity to report. However, future events or conditions may cause the Entity to report. However, future events or conditions may cause the Entity to cease to continue as a going concern.cease to continue as a going concern.cease to continue as a going concern. Evaluate the overall presentation, structure and content of the Evaluate the overall presentation, structure and content of the Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether thestatements, including the disclosures, and whether thestatements, including the disclosures, and whether theconsolidated financial D statements represent the underlying transactions and events in a manner that achieves fair presentation. Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during ouraudit. 3 5 - 17 Page 4 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group Entity to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. Chartered Professional Accountants, Licensed Public AccountantsChartered Professional Accountants, Licensed Public AccountantsChartered Professional Accountants, Licensed Public Accountants Waterloo, Canada T June 22, 2020 F A R D 4 5 - 18 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 5 5 - 19 TTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDD 6 5 - 20 TTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDD 7 5 - 21 TTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDD 8 5 - 22 T F A R D 9 5 - 23 T F A R D 10 5 - 24 T F A R D 11 5 - 25 TTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDD 12 5 - 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33 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 20 5 - 34 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 21 5 - 35 TTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDD 22 5 - 36 T F A R D 23 5 - 37 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA 24 RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 5 - 38 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA 25 RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 5 - 39 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA 26 RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 5 - 40 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA 27 RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 5 - 41 KPMG LLP 115 King Street South 2nd Floor Waterloo ON N2J 5A3 Canada Tel 519-747-8800 Fax 519-747-8830 INDEPENDENT AUDITORS’ REPORT To the Mayor and Members of Council, Inhabitants and Ratepayers of The Corporation of he Mayor and Members of Council, Inhabitants and Ratepayers of The Corporation of he Mayor and Members of Council, Inhabitants and Ratepayers of The Corporation of the City of Kitchener Opinion We have audited the financial statements of We have audited the financial statements of We have audited the financial statements of The Trust Funds of the Corporation of the City The Trust Funds of the Corporation of the City The Trust Funds of the Corporation of the City of Kitchener(the Entity), which comprise:(the Entity), which comprise:(the Entity), which comprise: the balance sheetas at December 31, 201as at December 31, 201as at December 31, 201999 the statement of continuitycontinuitycontinuityfor the year then endedfor the year then endedfor the year then ended and notes to the and notes to the and notes to the financial statements, including a summary of significantfinancial statements, including a summary of significantfinancial statements, including a summary of significant accountingpoliciespoliciespolicies (Hereinafter referred to as the “financial s(Hereinafter referred to as the “financial s(Hereinafter referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly opinion, the accompanying financial statements present fairly opinion, the accompanying financial statements present fairly, in all material respects, therespects, therespects, thebalance sheetbalance sheetbalance sheetof the Entity as at December 31, 2019, and the statement of continuityfor the year then ended in accordance with Canadian publifor the year then ended in accordance with Canadian publifor the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP. 1 5 - 42 Page 2 Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statementsin accordance with Canadian public sector accounting standardsand for such internal control as management determines is necessary to enable the preparation of financial statementsthat arefree from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the In preparing the financial statements, management is responsible for assessing the In preparing the financial statements, management is responsible for assessing the Entity’s ability to continue as a going concern, disclosing as applicable, matters related to Entity’s ability to continue as a going concern, disclosing as applicable, matters related to Entity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either going concern and using the going concern basis of accounting unless management either going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to intends to liquidate the Entity or to cease operations, or has no realistic alternative but to intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are Those charged with governance are responsible for overseeing the Entity’s financial responsible for overseeing the Entity’s financial responsible for overseeing the Entity’s financial reporting process. Auditors’ Responsibilities for the Audit of the Financial StatementsResponsibilities for the Audit of the Financial StatementsResponsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from mateas a whole are free from mateas a whole are free from material misstatement, whether due to fraud or error, and to issue rial misstatement, whether due to fraud or error, and to issue rial misstatement, whether due to fraud or error, and to issue an auditors’report that includes our opinion. report that includes our opinion. report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit Reasonable assurance is a high level of assurance, but is not a guarantee that an audit Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted conducted in accordance with Canadian generally accepted conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. detect a material misstatement when it exists. detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or Misstatements can arise from fraud or error and are considered material if, individually or Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of thefinancial statements. As part of anaudit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout theaudit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. 2 5 - 43 Page 3 The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.accounting estimates and related disclosures made by management.accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of Conclude on the appropriateness of management's use of the going concern basis of Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty audit evidence obtained, whether a material uncertainty audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's exists related to events or conditions that may cast significant doubt on the Entity's exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, ability to continue as a going concern. If we conclude that a material uncertainty exists, ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our w attention in our w attention in our auditorsauditorsauditors’’report to the related disclosures in the report to the related disclosures in the T financial statements or, if such disclosures are inadequate, to modify our opinion. Our financial statements or, if such disclosures are inadequate, to modify our opinion. Our financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our conclusions are based on the audit evidence obtained up to the date of our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Entity to cease to continue report. However, future events or conditions may cause the Entity to cease to continue report. However, future events or conditions may cause the Entity to cease to continue F as a going concern. Evaluate the overall presentation, structure and content of the financial statements, Evaluate the overall presentation, structure and content of the financial statements, Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent thincluding the disclosures, and whether the financial statements represent thincluding the disclosures, and whether the financial statements represent th A e underlying transactions and events in a manner that achieves fair presentation.underlying transactions and events in a manner that achieves fair presentation.underlying transactions and events in a manner that achieves fair presentation. Communicate with those charged with governance regarding, among other matters, Communicate with those charged with governance regarding, among other matters, Communicate with those charged with governance regarding, among other matters, the planned scope and timing of thethe planned scope and timing of thethe planned scope and timing of theaudit and significant audit findings, including any R signifisignifisignificant deficiencies in internal control that we identify during ourcant deficiencies in internal control that we identify during ourcant deficiencies in internal control that we identify during ouraudit. D Chartered Professional Accountants, Licensed Public Accountants Waterloo, Canada June 22, 2020 3 5 - 44 TTTTTTTTT FFFFFFFFF AAAAAAAAA RRRRRRRRR DDDDDDDDD 4 5 - 45 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 5 5 - 46 T F A R D 6 5 - 47 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA 7 RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 5 - 48 KPMG LLP 115 King Street South 2nd Floor Waterloo ON N2J 5A3 Canada Tel 519-747-8800 Fax 519-747-8830 INDEPENDENT AUDITORS’ REPORT To the Members of the Belmont Improvement Area Board of Managementbers of the Belmont Improvement Area Board of Managementbers of the Belmont Improvement Area Board of Management Opinion T We have audited the financial statements of Belmont Improvement Area Board of We have audited the financial statements of Belmont Improvement Area Board of We have audited the financial statements of Belmont Improvement Area Board of Management (the Entity), which comprise:Management (the Entity), which comprise:Management (the Entity), which comprise: the statement of financial posistatement of financial posistatement of financial position tion tion as at December 31, 201as at December 31, 201as at December 31, 2019 F the statement of revenue and expenses and accumulated surplusrevenue and expenses and accumulated surplusrevenue and expenses and accumulated surplusfor the year then ended A the statement of changes in net financial assetsstatement of changes in net financial assetsstatement of changes in net financial assetsfor the year then ended and notes to the and notes to the and notes to the financial statements, including a summary of signifinancial statements, including a summary of signifinancial statements, including a summary of significant accounting policiesaccounting policiesaccounting policies R (Hereinafter referred to as the “financial statements”).(Hereinafter referred to as the “financial statements”).(Hereinafter referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly opinion, the accompanying financial statements present fairly opinion, the accompanying financial statements present fairly, in all material respects, thefinancial position of the Entity as at financial position of the Entity as at financial position of the Entity as at December 31, 2019, and its results of D operations,andits changes in net financial assetsfor the year then ended in accordance with Canadian public sector accounting standardsrelevant to preparing such a financial statement. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP. 8 5 - 49 Page 2 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statementsin accordance with Canadian public sector accounting standardsand for such internal control as management determines is necessary to enable the preparation of internal control as management determines is necessary to enable the preparation of internal control as management determines is necessary to enable the preparation of financial statementsthat arefree from material misstatement, whether due to fraud or free from material misstatement, whether due to fraud or free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the In preparing the financial statements, management is responsible for assessing the In preparing the financial statements, management is responsible for assessing the Entity’s ability to continue as a going concern, disclosing as applicable, matters related to Entity’s ability to continue as a going concern, disclosing as applicable, matters related to Entity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either going concern and using the going concern basis of accounting unless management either going concern and using the going concern basis of accounting unless management either T intends to liquidate the Entity or to cease operations, or has no realistic alternative but to intends to liquidate the Entity or to cease operations, or has no realistic alternative but to intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity’s financial Those charged with governance are responsible for overseeing the Entity’s financial Those charged with governance are responsible for overseeing the Entity’s financial F reporting process. Auditors’ ResponsibilitiResponsibilitiResponsibilities for the Audit of the Financial Statementses for the Audit of the Financial Statementses for the Audit of the Financial Statements A Our objectives are to obtain reasonable assurance about whether the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue as a whole are free from material misstatement, whether due to fraud or error, and to issue as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorsan auditorsan auditors’’report that includes our opinion. report that includes our opinion. report that includes our opinion. R Reasonable assurance is a high level of assurance, but is not a guarantee that an audit Reasonable assurance is a high level of assurance, but is not a guarantee that an audit Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always conducted in accordance with Canadian generally accepted auditing standards will always conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. detect a material misstatement when it exists. detect a material misstatement when it exists. D Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of thefinancial statements. As part of anaudit in accordancewith Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout theaudit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. 9 5 - 50 Page 3 The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of Evaluate the appropriateness of accounting policies used and the reasonableness of Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.accounting estimates and related disclosures made by management.accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of Conclude on the appropriateness of management's use of the going concern basis of Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty accounting and, based on the audit evidence obtained, whether a material uncertainty accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's exists related to events or conditions that may cast significant doubt on the Entity's exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, ability to continue as a going concern. If we conclude that a material uncertainty exists, ability to continue as a going concern. If we conclude that a material uncertainty exists, T we are required to draw attention in our we are required to draw attention in our we are required to draw attention in our auditors’ auditors’ auditors’ report to the related disclosures in the report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our financial statements or, if such disclosures are inadequate, to modify our opinion. Our financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our conclusions are based on the audit evidence obtained up to the date of our conclusions are based on the audit evidence obtained up to the date of our auditors’ F report. However, future events or conditions may cause the Entity to cease to continue report. However, future events or conditions may cause the Entity to cease to continue report. However, future events or conditions may cause the Entity to cease to continue as a going concern.as a going concern.as a going concern. Evaluate the overall presentation, structure and content of the financial statements, Evaluate the overall presentation, structure and content of the financial statements, Evaluate the overall presentation, structure and content of the financial statements, A including the disclosures, and whether the financial statements represent the including the disclosures, and whether the financial statements represent the including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.underlying transactions and events in a manner that achieves fair presentation.underlying transactions and events in a manner that achieves fair presentation. CommunicateCommunicateCommunicatewith those charged with governance regarding, among other matters, with those charged with governance regarding, among other matters, with those charged with governance regarding, among other matters, R the planned scope and timing of the audit and significant audit findings, including any the planned scope and timing of the audit and significant audit findings, including any the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during oursignificant deficiencies in internal control that we identify during oursignificant deficiencies in internal control that we identify during ouraudit. D Chartered Professional Accountants, Licensed Public Accountants Waterloo, Canada June 22, 2020 10 5 - 51 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 11 5 - 52 TTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDD 12 5 - 53 TTTTTTT FFFFFFF AAAAAAA RRRRRRR DDDDDDD 13 5 - 54 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 14 5 - 55 INDEPENDENT AUDITORS’ REPORT Opinion We have audited the financial statements of Kitchener Downtown Improvement Area Board of Management (the “Entity”), which comprise: the statement of financial position as atDecember 31, 2019 the statement of revenue and expenses and accumulated surplusfor the year then ended the statement of changes in net financial assets for the year then endedthe statement of changes in net financial assets for the year then endedthe statement of changes in net financial assets for the year then ended the statement of cash flows for the year then endedthe statement of cash flows for the year then endedthe statement of cash flows for the year then ended and notes to the financial statements, including a summary of significantand notes to the financial statements, including a summary of significantand notes to the financial statements, including a summary of significant accounting policies T (Hereinafter referred to as the “financial statements”).(Hereinafter referred to as the “financial statements”).(Hereinafter referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly, in all In our opinion, the accompanying financial statements present fairly, in all In our opinion, the accompanying financial statements present fairly, in all F material respects, the financial position of the Entitymaterial respects, the financial position of the Entitymaterial respects, the financial position of the Entityas atDecember 31, 2019, and its results of operations, its changes in net financial assets and its cash flows and its results of operations, its changes in net financial assets and its cash flows and its results of operations, its changes in net financial assets and its cash flows for the year then ended in accordance with Canadian public sector accounting for the year then ended in accordance with Canadian public sector accounting for the year then ended in accordance with Canadian public sector accounting A standards.standards.standards. Basis for OpinionBasis for OpinionBasis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing We conducted our audit in accordance with Canadian generally accepted auditing We conducted our audit in accordance with Canadian generally accepted auditing R standards. Our responsibilities under those standards are further described in standards. Our responsibilities under those standards are further described in standards. Our responsibilities under those standards are further described in the “the “the “Auditors’Auditors’Auditors’ResponResponResponsibilities for the Audit of the Financial Statements” section of our auditors’section of our auditors’section of our auditors’report. D We are independent of the Entityin accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilledour other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 15 5 - 56 Page 2 Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Entity’s ability to continue as a going concern,disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management eitherintends to liquidate the Entityor to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the EntityThose charged with governance are responsible for overseeing the EntityThose charged with governance are responsible for overseeing the Entity’s financial reporting process. Auditors’ Responsibilities for the Audit of the Financial Auditors’ Responsibilities for the Audit of the Financial Auditors’ Responsibilities for the Audit of the Financial Statements T Our objectives are to obtain reasonable assurance about whether the financial Our objectives are to obtain reasonable assurance about whether the financial Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud statements as a whole are free from material misstatement, whether due to fraud statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’or error, and to issue an auditors’or error, and to issue an auditors’report that includes our opinion. report that includes our opinion. report that includes our opinion. F Reasonable assurance is a high level of assurance, but is not a guarantee that an Reasonable assurance is a high level of assurance, but is not a guarantee that an Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing audit conducted in accordance with Canadian generally accepted auditing audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. standards will always detect a material misstatement when it exists. standards will always detect a material misstatement when it exists. A Misstatements can arise from fraud or error and are considered material if, Misstatements can arise from fraud or error and are considered material if, Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence individually or in the aggregate, they could reasonably be expected to influence individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of thethe economic decisions of users taken on the basis of thethe economic decisions of users taken on the basis of thefinancial statements. R As part of anAs part of anAs part of anaudit in accordance with Canadian generally accepted auditing audit in accordance with Canadian generally accepted auditing audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional standards, we exercise professional judgment and maintain professional standards, we exercise professional judgment and maintain professional skepticism throughout theskepticism throughout theskepticism throughout theaudit. D Wealso: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to providea basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion onthe effectiveness of the Entity's internal control. 16 5 - 57 Page 3 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report.However, future events or conditions may cause the EntityHowever, future events or conditions may cause the EntityHowever, future events or conditions may cause the Entityto cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financialEvaluate the overall presentation, structure and content of the financialEvaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statementsstatements, including the disclosures, and whether the financial statementsstatements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achievesent the underlying transactions and events in a manner that achievesent the underlying transactions and events in a manner that achieves fair presentation. T Communicate with those charged with governance regarding, among otherCommunicate with those charged with governance regarding, among otherCommunicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant auditmatters, the planned scope and timing of the audit and significant auditmatters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that wefindings, including any significant deficiencies in internal control that wefindings, including any significant deficiencies in internal control that we F identify during ouridentify during ouridentify during ouraudit.audit.audit. A ChartChartChartered Professional Accountants, Licensed Public Accountantsered Professional Accountants, Licensed Public Accountantsered Professional Accountants, Licensed Public Accountants R WaterWaterWaterloo, Canadaloo, Canadaloo, Canada Date D 17 5 - 58 KITCHENER DOWNTOWN IMPROVEMENT AREA BOARD OF MANAGEMENT Statement of Financial Position Year ended December 31, 2019, with comparative informationfor 2018 20192018 (Restated See note 6) Financial Assets Cash$ 263,352 $ 251,964 Term deposits (note 2) 113,712112,886 Accounts receivable75,42630,222 Prepaid expenses10,8176,399 463,307401,471 Financial Liabilities Accounts payable and accrued charges92,68392,683122,203 Due to the City of Kitchener (note 4)184,312184,312184,31275,018 276,995276,995276,995197,221 TTTTTT Net financial assets186,312204,250 Non-Financial Assets FFFFFF Tangible capital assets(note 5) 30,68844,254 Net assets$ 217,000 $ 248,504 AAAAAA Accumulated SurplusAccumulated SurplusAccumulated Surplus Reserve for rate stabilizationve for rate stabilizationve for rate stabilization$ 50,000 $ 50,000 RRRRRR Accumulated net revenueAccumulated net revenueAccumulated net revenue136,312154,250 Invested in tangible capital Invested in tangible capital Invested in tangible capital assetsassetsassets30,68844,254 Total accumulated surplus$ 217,000 $ 248,504 DDDDDD See accompanying notes to financial statements. On behalf of the Board: ______________________________ Director ______________________________ Director 18 5 - 59 KITCHENER DOWNTOWN IMPROVEMENT AREA BOARD OF MANAGEMENT Statement of Revenue and Expenses and Accumulated Surplus Year ended December 31, 2019, with comparative informationfor 2018 BudgetActualActual 201920192018 (Restated See note 6) Revenue: Assessments$ 1,379,000 $ 1,379,000 $ 1,279,000 Interest-833755 Other income10,000 25,585246 1,389,0001,405,4181,280,001 Expenses: Promotions and advertising511,000511,000511,000435,582299,237 Salaries, wages and benefits397,767397,767397,767406,341364,350 Administration111,133111,133111,133106,106,604100,532 Meetingsand seminars11,60011,60011,6007,9207,92017,390 Safety and beautification185,000185,000185,000 2 241,59441,594 193,983 Member relations17,50017,50017,500 11,15314,878 Amortization10,00010,00010,00014,17517,572 TTTTTT Downtown Improvement Project--29,24154,544 Queen Street Project100,000100,000100,000100,000100,000 1,344,0001,344,0001,344,0001,352,6101,162,486 FFFFFF Net revenuebefore other items45,00045,00045,000 52,808117,515 Net assessment write-offs (note 4) 4) 4) 45,00084,31275,018 AAAAAA Net revenue(loss)-(31,504)42,497 Accumulated surplus, beginning of year, beginning of year, beginning of year289,161 248,504206,007 RRRRRR Accumulated surplusAccumulated surplusAccumulated surplus, end of year, end of year, end of year$ 289,161 $ 217,000 $ 248,504 See accompanying notes to financial statements.See accompanying notes to financial statements.See accompanying notes to financial statements. DDDDDD 19 5 - 60 KITCHENER DOWNTOWN IMPROVEMENT AREA BOARD OF MANAGEMENT Statement of Changes in Net Financial Assets Year ended December 31, 2019, with comparative informationfor 2018 20192018 (Restated See note 6) Net revenue(loss)$ (31,504) $ 42,497 Acquisition of tangible capital assets(609)(3,993) Amortization of tangible capital assets14,17517,572 Change in net financial assets(17,938) 56,076 Net financial assets, beginning of year204,250148,174 Net financial assets, end of year$ $ $ 186,186,312 $ 204,250 See accompanying notes to financial statements. TTTT FFFF AAAA RRRR DDDD 20 5 - 61 KITCHENER DOWNTOWN IMPROVEMENT AREA BOARD OF MANAGEMENT Statement of Cash Flows Year ended December 31, 2019, with comparative informationfor 2018 20192018 (Restated See note 6) Cash provided by (used in): Operating activities: Net revenue(loss)$ (31,504) $ 42,497 Item not involving cash: Amortization14,17517,572 Changes in non-cash assets and liabilities: Accounts receivable(45,204) 4,768 Prepaid expenses(4,418) 527 Accounts payable and accrued liabilities((29,52029,520) 44,214 Due to theCity of Kitchener109,294109,29440,657 Cash from operating activities12,82312,823150,235 Investing activities: Acquisition of tangible capital assets(609)(3,993) TTTTTT Purchase of investments(826)(751) Cash used in investing activities(1,435)(4,744) Increase in cash11,388145,491 FFFFFF Cash,beginning of year251,964106,473 Cash,end of year$ 263,352 $ 251,964 AAAAAA See accompanying notes to financial statements.See accompanying notes to financial statements.See accompanying notes to financial statements. RRRRRR DDDDDD 21 5 - 62 KITCHENER DOWNTOWN IMPROVEMENT AREA BOARD OF MANAGEMENT Notes to Financial Statements Year ended December 31, 2019 1.Summary of significant accounting policies: Kitchener Downtown Improvement Area Board of Management (the “Board”) is established for the main purpose of revitalizing the Central Business District of the City of Kitchener. It is designated as a Business Improvement Area(BIA) through the Ontario Municipal Act and a City of Kitchener by-law enacted in 1977. Thefinancial statements of the Board are the representation of management and have been prepared in accordance with Canadian generally accepted accounting principles for localprepared in accordance with Canadian generally accepted accounting principles for localprepared in accordance with Canadian generally accepted accounting principles for local governments, as recommended by the Public Sector Accounting Board (PSAB) of the Cgovernments, as recommended by the Public Sector Accounting Board (PSAB) of the Cgovernments, as recommended by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountantsof Canada. Since precise determination of many assets and liabilities is. Since precise determination of many assets and liabilities is. Since precise determination of many assets and liabilities is dependent upon future events, the preparation of periodic financial statements necessarilydependent upon future events, the preparation of periodic financial statements necessarilydependent upon future events, the preparation of periodic financial statements necessarily involves the use of estimates and approximations. These have been made using carefulinvolves the use of estimates and approximations. These have been made using carefulinvolves the use of estimates and approximations. These have been made using careful judgment. TTTT (a)Tangible capitalassets: Tangible capital assets are recorded at cost which includes amounts that are directlyTangible capital assets are recorded at cost which includes amounts that are directlyTangible capital assets are recorded at cost which includes amounts that are directly FFFF attributable to acquisition, construction, development or betterment of the asset. The cost,attributable to acquisition, construction, development or betterment of the asset. The cost,attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital assets, excluding land and landfill sites, areless residual value, of the tangible capital assets, excluding land and landfill sites, areless residual value, of the tangible capital assets, excluding land and landfill sites, are amortized on a straight-line basis over their estimated useful lives as follows:line basis over their estimated useful lives as follows:line basis over their estimated useful lives as follows: AAAA AssetUseful Life - Years Computers4 years Furniture and fixturesFurniture and fixturesFurniture and fixtures7 years RRRR Leasehold improvementsLeasehold improvementsLeasehold improvements7 years Event equipmentent equipmentent equipment10 years DDDD Annual amortization is charged in the year of acquisition and in the year of disposal. Assets under construction are not amortized until the asset is available for productive use. Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and also are recorded as revenue. (b)Accrual basis of accounting: The accrual basis of accounting recognizes revenues as they become available and measurable; expenditures are recognized as they are incurred and measurable as a result of receipt of goods or services and the creation of a legal obligation to pay. 22 5 - 63 KITCHENER DOWNTOWN IMPROVEMENT AREA BOARD OF MANAGEMENT Notesto Financial Statements, continued Year ended December 31, 2019 1.Summary of significant accounting policies(continued): (c)Revenue recognition: Revenues are recognized as follows: The Board Assessment revenue is recorded on an annual basis using the proportionate share of the total number of businesses for the year and anannually established rate per business. Revenue is recognized when assessed. Other revenues are recorded upon sale of goods or provision of service when collection isOther revenues are recorded upon sale of goods or provision of service when collection isOther revenues are recorded upon sale of goods or provision of service when collection is reasonably assured. 2.Term deposits: TTTTT The term deposits consist of the following: PrincipalMaturityMaturityMaturityRate FFFFF $ 10,851March 29, 2020March 29, 2020March 29, 20201.50% 50,886 March 28, 2020March 28, 2020March 28, 20201.30% 51,975March 3, 2020March 3, 2020March 3, 20201.20% AAAAA 3.Commitments:Commitments:Commitments: RRRRR During 2016, the Boardhe Boardhe Boardexecuted a new lease agreementexecuted a new lease agreementexecuted a new lease agreement. The lease expires onJune 30, 2021. The Board is committed to the following minimum paymentsThe Board is committed to the following minimum paymentsThe Board is committed to the following minimum paymentsunder the agreement: DDDDD 2020$ 35,539 2021 17,769 4.City of Kitchener: The Boardreceives assessment income from the Cityof Kitchener for its operations. During the year, assessment write-offs were incurred for $84,312 (2018 - $75,018). 23 5 - 64 - Net year 1,376 end of 10,82618,48630,688 book value, $ 8 $ year 3,498 end of 25,772 115,13 amortization, Accumulated $ $ - 2,5394,89156,1796,74529,689 14,175 Amortization -- - Deletions $ -$ $ -$ - Net 3,915 of yearof year15,10825,23144,254 beginningbeginning book value,book value, TTTTTT $ $ $ 3,4983,498 of yearof yearof year23,23323,23323,23351,28851,28822,944 100,963 umulatedumulatedumulated beginningbeginningbeginning FFFFFF amortization,amortization,amortization, Acc $ $ $ e, yearyearyear 3,4983,4983,498 end of 27,14827,14827,14867,00567,00567,00548,17548,17548,175 AAAAAA 145,826145,826145,826 Balanc 24 - - - - - - - Write downs RRRRRR - - - DDDDDD Transfers Disposals/ $ -$-$ $ -$-$ $ -$-$ MPROVEMENT AREA BOARD OF MANAGEMENT - - 609609 Additions $ -$-$-$ $ 3,498 27,14866,39648,175 balance 145,217 Opening $ $ 2019 ecember 31, equipment ture mprovements i Tangible capital assets:ComputersFurniLeaseholdEvent KITCHENER DOWNTOWN I Notes to Financial Statements, continuedYear ended D5. 5 - 65 KITCHENER DOWNTOWN IMPROVEMENT AREA BOARD OF MANAGEMENT Notes to Financial Statements, continued Year ended December 31, 2019 6.Restating comparative information –due to the City of Kitchener: During theyear ended December 31, 2019, management identified an immaterial prior period misstatement relating to thenet assessment write-off adjustment for 2018 which was received in February, 2020. As a result, net assessment write-off for the year ended December 21, 2018 and accumulated surplus and due to the City of Kitchener as at December 31, 2018 were understated by $40,657. Management has reflected the net assessment write-off adjustment pertaining to 2018 in the comparative figures. T F A R D 25 5 - 66 KPMG LLP 115 King Street South 2nd Floor Waterloo ON N2J 5A3 Canada Tel 519-747-8800 Fax 519-747-8830 INDEPENDENT AUDITORS’ REPORT To the members of Kitchener Public Library Opinion We have audited the financial statements of Kitchener Public Library (the Entity), which comprise: the statement of financial position as at end of December 31, 2019 the statement of operations and changes in accumulated surplus for the year then ended the statement of changes in net financial assets for the year then ended the statement of cash flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies (Hereinafter referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Entity as at end of December 31, 2019, and its results of operations, its changes in net financial assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. KPMG Canada provides services to KPMG LLP. 26 5 - 67 Page 2 Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Entity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity’s financial reporting process. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of thefinancial statements. As part of anaudit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 27 5 - 68 Page 3 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’report. However, future events or conditions may causethe Entity to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during ouraudit. Chartered Professional Accountants, Licensed Public Accountants Waterloo, Canada April 15, 2020 28 5 - 69 KITCHENER PUBLIC LIBRARY Statement of Financial Position December 31, 2019, with comparative information for 2018 20192018 Financial assets Cash$ 1,174,596 $ 1,698,526 Accounts receivable 165,351 117,848 Due from City of Kitchener 116,781 281,631 Investments50,00050,000 Endowment investments 100,000 100,000 Total financial assets 1,606,728 2,248,005 Financial liabilities Accounts payable and accrued liabilities 483,797 866,418 Deferred revenue 641,506 900,200 1,125,303 1,766,618 Net financial assets 481,425481,387 Non-financial assets Tangible capital assets (note 2) 5,364,961 5,712,999 Subsequent events (note 7) Accumulated surplus (note 6) $ 5,846,386 $ 6,194,386 See accompanying notes to financial statements. On behalf of the Board: Director Director 29 5 - 70 KITCHENER PUBLIC LIBRARY Statement of Operations and Accumulated Surplus Year ended December 31, 2019, with comparative information for 2018 Budget 2019 Actual 2019 Actual 2018 Revenues: Grants: The City of Kitchener – Operating $ 11,039,863 $ 11,039,863 $ 10,823,395 -771,687643,403 The City of Kitchener – Capital and Special The City of Kitchener – Special -562,451115,571 Province of Ontario 286,755 286,755286,755 Fines223,000206,613 222,261 Interest and miscellaneous 44,000 59,237 51,850 Photocopy43,00045,66544,305 Room rental 38,000 35,428 39,500 Partnerships29,00029,40129,202 Total revenue 11,703,618 13,037,100 12,256,242 Expenses: Personnel costs (schedule 1)9,031,5008,922,0948,717,515 Resource materials 394,7001,459,0241,471,942 Facilities costs (schedule 4) 802,068 852,639 807,055 Equipment (schedule 2) 268,500 706,897 711,202 Required expenditures related to special grants (note 4) -562,451115,571 475,048417,266 Expenditures related to capital and special (note 3) 813,200 Administrative (schedule 3) 192,300 209,470214,248 Processing/bindery115,000118,887114,224 Programs and publicity (schedule 5) 76,500 72,763 90,428 General library equipment 9,8505,827 9,362 Total expenses 11,703,618 13,385,100 12,668,813 Excess of expenses over revenue-(348,000)(412,571) Accumulated surplus, beginning of year 6,194,386 6,194,3866,606,957 Accumulated surplus, end of year$ 6,194,386 $ 5,846,386 $ 6,194,386 See accompanying notes to financial statements. 30 5 - 71 KITCHENER PUBLIC LIBRARY Statement of Change in Net Financial Assets Year ended December 31, 2019, with comparative information for 2018 20192018 Excess of expenses over revenue $ (348,000) $ (412,571) Acquisition of tangible capital assets (1,084,430) (1,092,817) Amortization of tangible capital assets 1,423,468 1,505,421 Increase in net financial assets 3833 Net financial assets, beginning of year 481,387481,354 Net financial assets, end of year $481,425 $ 481,387 See accompanying notes to financial statements. 31 5 - 72 KITCHENER PUBLIC LIBRARY Statement of Cash Flows Year ended December 31, 2019, with comparative information for 2018 20192018 Operating activities: Excess of expenses over revenue$(348,000)$(412,571) Item not involving cash: Amortization of tangible capital assets 1,432,468 1,505,421 Changes in non-cash operating working capital Accounts receivable (47,503) (51,169) Prepaid expenses -25,325 Due from City of Kitchener 164,850 (135,367) Accounts payable and accrued liabilities(382,621)384,391 Deferred revenue (258,694) 141,767 Cash provided by operating activities 560,500 1,457,797 Capital activities: Cash used to acquire tangible capital assets (1,084,430)(1,092,817) Increase (decrease) in cash (523,930) 364,980 Cash, beginning of year 1,698,5261,333,546 Cash, end of year $ 1,174,596 $ 1,698,526 See accompanying notes to financial statements. 32 5 - 73 KITCHENER PUBLIC LIBRARY Notes to Financial Statements Year ended December 31, 2019 Kitchener Public Library (the "Board") was incorporated as a not-for-profit organization, without share capital, under the laws of Ontario. It is a Board of the City of Kitchener (the "City") and is dependent on the City for a significant portion of its operating and capital funding. The Board contributes to the community as a resource and a gateway with sources of information and works of imagination. 1.Significant accounting policies: The financial statements of the Board are the representation of management and have been prepared in accordance with Canadian generally accepted accounting principles for local governments, as recommended by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. Since precise determination of many assets and liabilities is dependent upon future events, the preparation of periodic financial statements necessarily involves the use of estimates and approximations. These have been made using careful judgments. The following is a summary of the significant accounting policies followed in the preparation of these financial statements. (a)Accrual basis of accounting: The accrual basis of accounting, recognizes revenues as they become available and measurable;expenditures are recognized as they are incurred and measurable as a result of receipt of goods or services and the creation of a legal obligation to pay. (b)Revenuerecognition: Revenues are recognized in the period in which the transactions or events occurred that gave rise to the revenues. All revenues are recorded on an accrual basis, except when the accruals cannot be determined with a reasonable degree of certainty or when their estimation is impracticable. Government transfers are recognized as revenues when the transfer is authorized and any eligibility criteria are met, except to the extent that transfer stipulations give rise to an obligation that meets the definition of a liability. Transfers are recorded as deferred revenue when transfer stipulations give rise to a liability. Transfer revenue is recognized in the statement of operations as the stipulation liabilities are settled. Government transfers, contributions, and other amounts are received from third parties pursuant to legislation, regulation, or agreement and may only be used in the conduct of certain programs, in the completion of specific work, or the purchase of tangible capital asset. In addition, certain user charges and fees are collected for which the related services have yet to be performed. Revenue is recognized in the period when the related expenses are incurred, services performed, or the tangible assets are acquired. 33 5 - 74 KITCHENER PUBLIC LIBRARY Notes to Financial Statements, continued Year ended December 31, 2019 1.Significant accounting policies (continued): (c)Investments: Investments consist of bonds and are recorded at amortized cost. Discounts and premiums arising on the purchase of these investments are amortized over the term of the investments. When there has been a loss in value that is other than a temporary decline in value, the respective investment is written down to recognize the loss. (d)Endowmentinvestments: Endowment investments received are recorded as financial assets which have the principal restricted for use. Income earned on the endowment is used for the purpose specified by the donor. Any unspent funds earned during the year are deferred for future use. (e)Tangible capital assets: Tangible capital assets are recorded at cost which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value,of the tangible capital assets, excluding land, are amortized on a straight- line basis over their estimated useful lives as follows: AssetRate Furniture, fixtures and equipment 10 - 30 years Other equipment and vehicle 8 years Computers3 - 10 years Books and audio visual equipment 2 - 10 years (f)Deferred revenue: Deferred revenue represents unspent funds subject to external restrictions as to how the funds are disbursed. These amounts are subsequently included in revenue when the related expenditures are made. 34 5 - 75 Total 7,427,5231,432,4687,623,732 -(1,236,259)-(1,236,259) 734 68,14868,882 108,462 12,988,693 (22,077)(22,077) 785,565142,207 905,695 2,085,656 Furniture, fixtures Other equipment (45,908)(45,908) 280,061 35 2,684,395 $ 731,422 $ 1,179,961 $ 38,580 $ 5,364,961 103 $ 2,565,456 $ 2,045,157 $ 70,806 $ 13,140,522 696,1821,952,973413,998 8,110,1804,854,9901,718,8201,009,4664,3, (1,168,274)(1,168,274) $ visual resources Computers and equipment and vehicle Books and audio 2.Tangible capital assets:2019CostBalance, beginning of year $ 8,459,Additions 819,351 164,817 62,576 37,656 1,084,430 DisposalsBalance, end year Accumulated amortization Balance, beginning of year AmortizationDisposalsBalance, end of year Net book value, end of year KITCHENER PUBLIC LIBRARY Notes to Financial Statements, continued Year ended December 31, 2019 5 - 76 Total 7,087,9821,505,4217,427,523 -1,092,817- (1,165,880)-(1,165,880) 3,151 70,806 13,140,52264,99768,148 - (36,740) 679,479 142,826785,565 2,045,157 Furniture, fixtures Other equipment (25,607) 306,083 36 2,565,456 $ 846,636 $ 1,259,592 $ 2,658 $ 5,712,999 031 $ 2,386,426 $ 2,065,322 $ 70,806 $ 13,213,585 854,9901,718,820604,113 8,459,1034,905,1621,438,3441,053,3614,3, (1,103,533) (25,607) (1,103,533) $ visual resources Computers and equipment and vehicle Books and audio 2.Tangible capital assets (continued):2018CostBalance, beginning of year $ 8,691,Additions 871,605 204,637 16,575 DisposalsBalance, end year Accumulated amortization Balance, beginning of year AmortizationDisposalsBalance, end of year Net book value, end of year KITCHENER PUBLIC LIBRARY Notes to Financial Statements, continued Year ended December 31, 2019 5 - 77 KITCHENER PUBLIC LIBRARY Notes to Financial Statements, continued Year ended December 31, 2019 3.Capital and special grants: Each year, the City approves capital and special grants for the Board to purchase specific capital items. The capital grants approved for 2019 included $96,000 (2018 - $94,000) for general renovations, maintenance and upgrading of existing facilities, $290,251 (2018 - $284,207) for communication infrastructure and technology upgrades, $28,000 (2018 - $28,000) for KPL Accessibility Fund, $200,000 for the library automation system (2018 - $500,000), $nil for a customer needs survey (2018 - $50,874) and $4,508,159 (2018 - $nil) for the southwest community library. The portion of these grants and previous year grants that are included in revenue in 2019, is $771,687 (2018 - $643,403). 4.Specialgrants: As directed by the funding agency or terms of any applicable agreements, expenditures are made to finance, in whole or in part, capital items, replacements and maintenance projects. In 2019, the Board received various special non-recurring grants and donations totaling $310,689 (2018 - $257,338). The portion of these grants and previous year special grants that are included in revenue in 2019 is $562,451 (2018 - $115,571). The remainder is included in deferred revenue. 5.Pension plan: The Board makes contributions to the Ontario Municipal Employees Retirement Systems (OMERS), which is a multi-employer plan, on behalf of its staff. The plan is a defined benefit plan which specifies the amount of the retirement benefit to be received by the employees based on the length of service and rate of pay. During the year, the Board incurred expenses equal to $618,799 (2018 - $615,348) forcurrent service on behalf of its staff. The latest available report for the OMERS plan was as at December 31, 2018. At that time the plan reported a $4.2 billion actuarial deficit, based on actuarial liabilities of $100.1 billion and actuarial assets of $95.9 billion. Ongoing adequacy of the current contribution rates will need to be monitored and may lead to increased future funding requirements. As at December 31, 2018, the Board has no obligation under the past service provisions of the OMERS agreement. 37 5 - 78 KITCHENER PUBLIC LIBRARY Notes to Financial Statements, continued Year ended December 31, 2019 6.Accumulated surplus: The accumulated surplus consists of surplus and reserve funds as follows: 20192018 Invested in tangible capital assets $ 5,364,761 $ 5,712,999 Endowment investments 100,000 100,000 Reserves set aside by the Board: Capital fund 344,460 344,260 HR fund 37,000 37,000 Total reserves 381,460 381,260 Surplus165127 $ 5,846,386 $ 6,194,386 7.Subsequent events: Subsequent to December 31, 2019 the COVID-19 outbreak was declared a pandemic by the World Health Organization. The situation is dynamic and the ultimate duration and magnitude of the impact on the economy and the financial effect on the Library’s business is not known at this time. These impacts could include potential future decreases in revenue or the profitability of ongoing operations. 38 5 - 79 KITCHENER PUBLIC LIBRARY Schedules of Expenses Year ended December 31, 2019, with comparative information for 2018 20192018 Schedule 1 – Personnel Salaries$7,296,398$7,104,484 Pension benefits 916,484900,269 Health benefits 441,813445,941 Employment insurance 136,883 134,779 Sick leave reserve 70,00070,000 Staff training 37,38737,909 WSIB23,12924,133 $ 8,922,094 $ 8,717,515 Schedule 2 – Equipment Amortization$423,002$452,060 Technology269,618240,380 Equipment maintenance 14,27718,762 $ 711,202 $ 706,897 Schedule 3 – Administrative General business $ 61,254 $ 60,531 Stationery55,85752,490 Professional services 50,50752,448 Insurance19,59619,212 Telephone15,43923,156 Postage and delivery 6,8176,411 $ 209,470 $ 214,248 Schedule 4 – Facilities Facilities expenses $ 488,384 $ 463,425 Main utilities 264,002 253,286 Country Hills building 54,174 43,673 Forest Heights utilities 22,959 24,137 Pioneer Park building 22,525 21,188 Grand River Stanley Park building 595 1,346 $ 852,639 $ 807,055 Schedule 5 – Programs and Publicity Promotional$44,697$49,023 Public programs 28,06641,405 $ 72,763 $ 90,428 39 5 - 80 KPMG LLP 115 King Street South 2nd Floor Waterloo ON N2J 5A3 Canada Tel 519-747-8800 Fax 519-747-8830 INDEPENDENT AUDITORS’ REPORT To the Directors of The Centre In The Square Inc. Opinion We have audited the financial statements of The Centre In The Square Inc. (the Centre), which comprise: the statement of financial position as at end of December 31, 2019 the statement of operations for the year then ended the statement of change in net financial assets for the year then ended the statement of cash flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies (Hereinafter referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Centre as at end of December 31, 2019, and its results of operations, its changes in net financial assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’report. We are independent of the Centre in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. KPMG Canada provides services to KPMG LLP. 40 5 - 81 Page 2 Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Centre’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Centre or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Centre’s financial reporting process. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of thefinancial statements. As part of anaudit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 41 5 - 82 Page 3 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Centre's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Centre's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’report. However, future events or conditions may cause the Centre to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during ouraudit. Chartered Professional Accountants, Licensed Public Accountants Waterloo, Canada March 26, 2020 42 5 - 83 THE CENTRE IN THE SQUARE INC. Statement of Financial Position December 31, 2019, with comparative information for 2018 20192018 Net Assets Financial assets: Cash$ 3,463,348 $ 4,789,533 Due from The City of Kitchener151,85392,754 Accounts receivable 209,396123,419 Interest receivable 2,2182,042 Costs to be recovered 197,541 308,546 Investments (note 2) 1,436,372 1,389,705 Total financial assets 5,460,728 6,705,999 Financial liabilities: Accounts payable and accrued liabilities 1,541,044 3,060,393 Deferred revenue (note 3) 2,103,2612,321,923 3,644,305 5,382,316 Net financial assets 1,816,4231,323,683 Non-financial assets: Tangible capital assets (note 4) 13,027,54912,622,446 Inventories (note 5) 80,32981,868 Prepaid expenses 271,211250,136 13,379,089 12,954,450 Net assets $ 15,195,512 $ 14,278,133 Accumulated Surplus Operating fund activities (note 6) $ -$- Reserves - Capital (notes 7 and 12) 1,362,582878,852 Reserves - Performance Development (note 8) -- Reserves - Sustainability (notes 8 and 12) 199,068206,863 Reserves - Restricted (notes 9 and 12) 606,313 569,972 Invested in tangible capital assets 13,027,549 12,622,446 Subsequent events (note 11) Accumulated surplus $ 15,195,512 $ 14,278,133 See accompanying notes to financial statements. On behalf of the Board: Director Director 43 5 - 84 THECENTRE IN THE SQUARE INC. Statement of Operations Year ended December 31, 2019, with comparative information for 2018 Budget 2019 Actual 2019 Actual 2018 Revenues: Performances $ 7,513,400 $ 7,772,959 $ 7,659,122 Rent - Kitchener-Waterloo Symphony 102,485 203,210 102,485 Capital reserve fund surcharge (note 7) 316,800 432,917 357,438 Grants from The City of Kitchener - Operating 2,000,000 2,000,000 2,000,000 Grants from The City of Kitchener - Capital 1,560,492 925,984 1,101,258 Grants from other governments - Operating 45,000 45,000 51,700 Grants from other governments - Capital -248,127285,025 Donations2,00026,72716,888 Investment income 48,000 118,74694,003 Sponsorships and memberships 142,722 74,90185,921 Rent - Kitchener-Waterloo Art Gallery 101,100 101,10099,185 Lottery revenue -7,4939,822 Other198,000677,281508,243 Gain (loss) on investments -21,321(924) Total revenue 12,029,999 12,655,766 12,370,166 Expenses: Direct: Performances6,415,8856,946,1116,736,435 Operating: Administration530,000553,187531,002 Marketing105,000100,406130,685 Lottery expenses -7,3489,892 Occupancy850,000778,740 809,763 Salaries and wages 2,837,4843,419,9553,017,662 Recoveries - performances (593,978) (1,248,149) (1,015,340) Amortization800,000934,191920,168 Write down of tangible capital assets 150,000 190,865 158,340 Reserves expenditures (note 12) 20,000 55,733 21,603 Total expenses 11,114,391 11,738,387 11,320,210 Excess of revenue over expenses915,608917,3791,049,956 Accumulated surplus, beginning of year 14,278,13314,278,13313,228,177 Accumulated surplus, end of year$ 15,193,741 $ 15,195,512 $ 14,278,133 See accompanying notes to financial statements. 44 5 - 85 THE CENTRE IN THE SQUARE INC. Statement of Change in Net Financial Assets Year ended December 31, 2019, with comparative information for 2018 20192018 Excess of revenue over expenses$917,379$1,049,956 Acquisition of tangible capital assets (1,530,159) (1,743,293) Amortization of tangible capital assets 934,191 920,168 Write-down of tangible capital assets 190,865 158,340 512,276385,171 Net use (acquisition) of inventories 1,539(20,110) Net acquisition of prepaid expenses (21,075)(25,446) (19,536) (45,556) Increase in net financial assets 492,740339,615 Net financial assets, beginning of year 1,323,683984,068 Net financial assets, end of year $1,816,423 $ 1,323,683 See accompanying notes to financial statements. 45 5 - 86 THE CENTRE IN THE SQUARE INC. Statement of Cash Flows Year ended December 31, 2019, with comparative information for 2018 20192018 Operating activities: Excess of revenue over expenses$917,379$1,049,956 Items not involving cash: Amortization934,191920,168 Write down of tangible capital assets 190,865158,340 Change in non-cash operating working capital (1,791,794) 983,980 Cash provided by operating activities 250,641 3,112,444 Capital activities: Cash used to acquire tangible capital assets (1,530,159)(1,743,293) Investing activities: Investments(46,667)(18,197) Increase (decrease) in cash (1,326,185) 1,350,954 Cash, beginning of year 4,789,5333,438,579 Cash, end of year $3,463,348 $ 4,789,533 See accompanying notes to financial statements. 46 5 - 87 THE CENTRE IN THE SQUARE INC. Notes to Financial Statements Year ended December 31, 2019 The mission of The Centre In The Square Inc. (“The Centre”), is to create memorable experiences. It is incorporated as a not-for-profit corporation without share capital, is exempt from income taxes under the Income Tax Act, and is a registered charity. The Centre is a governed by a Board of Directors and receives an operating grant from the City of Kitchener (“the City”). 1.Significant accounting policies: The financial statements of The Centre are the representation of management and have been prepared in accordance with Canadian generally accepted accounting principles for local governments as established by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountants of Canada. Since precise determination of many assets and liabilities is dependent upon future events, the preparation of periodic financial statements necessarily involves the use of estimates and approximations. These have been made using careful judgment. (a)Tangible capital assets: Tangible capital assets are recorded at cost which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital assets, excluding land, is amortized on a straight- line basis over their estimated useful lives as follows: AssetRate Buildings 5 - 100 years Equipment4 - 50 years Computers3 - 10 years Software3years Site2 - 50 years (b)Accrual basis of accounting: The accrual basis of accounting, recognizes revenues as they become available and measurable; expenditures are recognized as they are incurred and measurable as a result of receipt of goods or services and the creation of a legal obligation to pay. (c)Inventories: Bar stock inventories are valued at the most recent replacement cost. Supplies inventories are valued at the lower of cost and net realizable value on a first-in, first-out basis. Net realizable value is defined as replacement cost. 47 5 - 88 THECENTRE IN THE SQUARE INC. Notes to Financial Statements, continued Year ended December 31, 2019 1.Significant accounting policies (continued): (d)Investments: Investments are recorded at the lower of cost or market value on a fund portfolio basis. Interest income and all expenses are fully accrued. (e)Revenue: Performance revenue is recognized when the show occurs. Deferred gift certificate revenue is an estimate based upon gift certificate sales during the period from July 1 to December 31 of the current year. 2.Investments: Investments consist of: Carrying value MarketCarrying value Market 2019201920182018 Cash$ 11,793 $ 11,793 $ 2,321 $ 2,321 GICs788,417788,417774,645774,645 Bonds357,338358,257328,429 324,446 Shares 278,824 450,887 284,310 413,328 $ 1,436,372 $ 1,609,354 $ 1,389,705 $ 1,514,740 3.Deferred revenue: Deferred revenue consists of the following: 20192018 Sponsorships$ 19,116 $ 24,000 Performances 1,991,661 2,081,308 Gift certificates 45,70138,710 Membership7,1656,540 Other39,618171,365 $ 2,103,261 $ 2,321,923 48 5 - 89 - Total 934,191 (252,968) ---10,082,150 Workin Progress - (129,902) Site 82,473 (11,201) 775,061 Software 586) -(11,201)(7,330) (443,833) 996) - 29,149 -31,541 $ -$ 1,015,168 $ 412,704 $ 13,027,549 (58, 206,052 154,781 1,790,229 412,704 23,109,699 $ 245,548 $ 154,781 $ 1,731,398 $ 140,732 $ 22,023,373 Computers 49 - - - 491 204,358 154,781 703,789 -9,400,927 Equipment (56,555)(126,216) Buildings 4,924,994 4,052,803 174,511 154,781 -812,614218,219 20,090 -70,032409,204 1,530,159 -(195,956)(169,760) (59,-129,902-4,519,5083,818,-462,041360,528 -- Land 975,300 12,827,961 6,742,672 $ 975,300 $ 7,902,967 $ 2,689,869 $ CENTRE IN THE SQUARE INC. of year 4.Tangible capital assets:2019CostBalance, beginning of year $ 975,300 $ 12,081,401 $ 6,694,213 AdditionsDisposalsTransfersCost, end year Accumulated amortization Balance, beginningAmortizationDispo salsAccumulated amortization, end of year Net book value, end of year THE Notes to Financial Statements, continued Year ended December 31, 2019 5 - 90 - Total 920,168 (1,266,201)(1,107,861) ----9,400,927 Workin Progress 719 $ 2,078,255 $ 21,546,281 Site 80,099 703,789 (471,723)(367,665) - 35,040 (2,078,255) (1,068)(1,068) Software - 33,941 -41,190 $ -$ 1,027,609 $ 140,732 $ 12,622,446 $ 227,344 $ 155,849 $ 2,031, Computers 50 - 708 170,417 155,849 991,355 -9,588,620 Equipment (552,722)(186,406) - Buildings 4,519,508 3,818,491 204,358 154,781 -981,118466,877 18,204 -136,362140,732 1,743,293 -(604,505)(188,905) --2,043,215-4,627,2913,643,-444,939361,189 - Land 975,300 12,081,401 6,694,213 245,548 154,781 1,731,398 140,732 22,023,373 $ 975,300 $ 7,561,893 $ 2,875,722 $ CENTRE IN THE SQUARE INC. of year 4.Tangible capital assets (continued):2018CostBalance, beginning of year $ 975,300 $ 9,661,573 $ 6,416,241 AdditionsDisposalsTransfersCost, end year Accumulated amortization Balance, beginningAmortizationDisposalsAccumulated amortization, - end of year Net book value, end of year THE Notes to Financial Statements, continued Year ended December 31, 2018 5 - 91 THECENTRE IN THE SQUARE INC. Notes to Financial Statements, continued Year ended December 31, 2019 5.Inventories: Inventories consist of the following: 20192018 Bar stock $ 75,175 $ 76,594 Supplies5,1545,274 $ 80,329 $ 81,868 6.Operating fund activities: Budget Actual Actual 201920192018 Revenues: Performances$ 7,513,400 $ 7,772,959 $ 7,659,122 Rent - Kitchener-Waterloo Symphony102,485 203,210 102,485 Grants from The City of Kitchener 2,000,000 2,000,000 2,000,000 Grants, other Governments and Foundations 45,000 45,000 51,700 Donations-24,32914,491 Investment income 42,000 74,797 59,764 Sponsorships and memberships 142,722 74,90185,921 Rent - Kitchener-Waterloo Art Gallery 101,100 101,100 99,185 Lottery revenue -7,4939,822 Other 198,000 677,281 508,243 Total revenue 10,144,707 10,981,070 10,590,733 Current fund expenditures: Direct: Performances 6,415,885 6,946,111 6,736,435 Operating: Administration 530,000 553,187 531,002 Marketing 105,000 100,406 130,685 Lottery expenses -7,3489,892 Occupancy850,000 778,740 809,763 Salaries and wages 2,837,484 3,419,955 3,017,662 Recoveries - performances (593,978) (1,248,149) (1,015,340) Total current fund expenditures10,144,391 10,557,598 10,220,099 Operating fund net revenues before amortization 316 423,472 370,634 Transfer to reserve funds (316)(423,472)(370,634) Transfer to The City of Kitchener -- - Fund balances, end of year $ -$-$- 51 5 - 92 THECENTRE IN THE SQUARE INC. Notes to Financial Statements, continued Year ended December 31, 2019 7.Capital Reserve Fund Surcharge: The Capital Reserve Fund represents the collection of a surcharge from the sale of tickets. At the direction of the Board of Directors, expenditures from the Capital Reserve Fund are made to finance, in whole or in part, major capital items, replacements and major maintenance projects. In 2019, the Centre’s Board of Directors approved transfers out of the Capital Reserve Fund for major capital asset projects of $1,530,159 (2018 - $1,743,293). 8.Performance Development and Sustainability Reserve Funds: At the direction of the Board of Directors, transfers are made to and from the Performance Development Reserve and Sustainability Funds, equal to one-half of the annual operating net revenue. In 2019, The Centre’s Board of Directors approved the transfer of the funds to the Sustainability Fund of $nil (2018 - $nil) from the operating fund. 9.RestrictedFund: The Restricted Fund was set up by the Board of Directors of The Centre in 2000 by a transfer of investments from the Sustainability Reserve Fund in accordance with the Restricted Fund Policy. Income from this fund is to be used forcapital requirements, special projects and/or new programming initiatives that help further The Centre’s mandate. 10.2019budget: The original budgeted figures were approved by the Board of Directors at their meeting in August 2018 and included certain expenses and offsetting recoveries on a net basis. For purposes of presentation in these financial statements, these items have been shown as gross amounts. 11.Subsequentevents: Subsequent to December 31, 2019, the COVID-19 outbreak was declared a pandemic by the World Health Organization and has had a significant financial, market and social dislocating impact. At the time of approval of these financial statements, the entity has experienced the following indicators of financial implications and undertaken the following activities in relation to the COVID-19 pandemic. Experienced temporary declines in the fair value of investments and investment income Postponement or cancellation of events starting March 14, 2020 Closure of all facilities from March 24, 2020 to the date of the auditors’ report based on public health recommendations Temporary layoff of non-essential employees At this time these factors present uncertainty over future cash flows, may cause significant changes to the assets or liabilities and may have a significant impact on future operations. An estimate of the financial effect is not practicable at this time. 52 5 - 93 THECENTRE IN THE SQUARE INC. Notes to Financial Statements, continued Year ended December 31, 2019 12.Schedule of reserve funds: PerformanceTotal DevelopmentCapitalSustainabilityRestrictedFunds Revenue: Donations and sundry $ -$-$-$2,398 $ 2,398 Grants from The City -925,984- - 925,984 of Kitchener Grants from the other governments -248,127- - 248,127 Ticket surcharge -432,917- - 432,917 Investment income -18,0953,223 22,631 43,949 Loss on investments -- - 21,321 21,321 Total revenue -1,625,1233,223 46,350 1,674,696 Expenses: Professional fees - - 11,018 10,009 21,027 Capital costs -34,706- - 34,706 Total expenses -34,70611,018 10,009 55,733 Excess of revenue over expenses-1,590,417 (7,795) 36,341 1,618,963 Transfer to accumulated surplus - tangible capital assets -(1,530,159)- -(1,530,159) Other transfers -423,472- - 423,472 Balance, beginning of year -878,852206,863 569,972 1,655,687 Balance, end of year $ -$1,362,582 $ 199,068 $ 606,313 $ 2,167,963 . 53 5 - 94 KPMG LLP 115 King Street South 2nd Floor Waterloo ON N2J 5A3 Canada Tel 519-747-8800 Fax 519-747-8830 INDEPENDENT AUDITORS’ REPORT To the Mayor and Members of Council, Inhabitants and Ratepayers of The Corporation of he Mayor and Members of Council, Inhabitants and Ratepayers of The Corporation of he Mayor and Members of Council, Inhabitants and Ratepayers of The Corporation of the City of Kitchener Opinion T We have audited the financial statements of the Corporation of the City of KitchenerWe have audited the financial statements of the Corporation of the City of KitchenerWe have audited the financial statements of the Corporation of the City of Kitchener Gasworks Enterprise(theEntity), which comprise:Entity), which comprise:Entity), which comprise: F the statement of operations and accumulated surplusthe statement of operations and accumulated surplusthe statement of operations and accumulated surplusfor the year ended December 31, 2019December 31, 2019December 31, 2019 (Hereinafter referred to as the “financial statements”).(Hereinafter referred to as the “financial statements”).(Hereinafter referred to as the “financial statements”). A In our opinion, the accompanying financial statements present opinion, the accompanying financial statements present opinion, the accompanying financial statements presents fairly, in all material respects, respects, respects, the statement of the statement of the statement of operations and accumulated surplus for the year ended operations and accumulated surplus for the year ended December 31, 201December 31, 201December 31, 201999in accordance with Canadian public sector accounting standardsin accordance with Canadian public sector accounting standardsin accordance with Canadian public sector accounting standards R relevant to preparing such a financial statementrelevant to preparing such a financial statementrelevant to preparing such a financial statement. Basis for OpinionBasis for OpinionBasis for Opinion D We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP. 54 5 - 95 Page 2 Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statementsin accordance with Canadian public sector accounting standardsand for such internal control as management determines is necessary to enable the preparation of financial statementsthat arefree from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the In preparing the financial statements, management is responsible for assessing the In preparing the financial statements, management is responsible for assessing the Entity’s ability to continue as a going concern, disclosing as applicable, matters related to Entity’s ability to continue as a going concern, disclosing as applicable, matters related to Entity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management going concern and using the going concern basis of accounting unless management going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative either intends to liquidate the Entity or to cease operations, or has no realistic alternative either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. T Those charged with governance are responsible for overseeing the Entity’s financial Those charged with governance are responsible for overseeing the Entity’s financial Those charged with governance are responsible for overseeing the Entity’s financial reporting process. F Auditors’ Responsibilities for the Audit of the Financial StatementsResponsibilities for the Audit of the Financial StatementsResponsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements A as a whole are free from material misstatement, whether due to fraud or error, and to as a whole are free from material misstatement, whether due to fraud or error, and to as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorsauditorsauditors’’report that includes our opinion. report that includes our opinion. report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit Reasonable assurance is a high level of assurance, but is not a guarantee that an audit Reasonable assurance is a high level of assurance, but is not a guarantee that an audit R conducted in accordance with Canadian generally accepted auditing standards will always conducted in accordance with Canadian generally accepted auditing standards will always conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it edetect a material misstatement when it edetect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or Misstatements can arise from fraud or error and are considered material if, individually or Misstatements can arise from fraud or error and are considered material if, individually or D in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of thefinancial statements. As part of anaudit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. 55 5 - 96 Page 3 The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness ofEvaluate the appropriateness of accounting policies used and the reasonableness ofEvaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.accounting estimates and related disclosures made by management.accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis ofConclude on the appropriateness of management's use of the going concern basis ofConclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertaintyaccounting and, based on the audit evidence obtained, whether a material uncertaintyaccounting and, based on the audit evidence obtained, whether a material uncertainty exists relatedto events or conditions that may cast significant doubt on the Entity'sto events or conditions that may cast significant doubt on the Entity'sto events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists,ability to continue as a going concern. If we conclude that a material uncertainty exists,ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our we are required to draw attention in our we are required to draw attention in our auditors’ auditors’ auditors’ report to the related disclosures in thereport to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Ourfinancial statements or, if such disclosures are inadequate, to modify our opinion. Ourfinancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our conclusions are based on the audit evidence obtained up to the date of our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Entity to cease to contireport. However, future events or conditions may cause the Entity to cease to contireport. However, future events or conditions may cause the Entity to cease to continue as a going concern.as a going concern.as a going concern. Evaluate the overall presentation, structure and content of the financial statements,Evaluate the overall presentation, structure and content of the financial statements,Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent theincluding the disclosures, and whether the financial statements represent theincluding the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair prunderlying transactions and events in a manner that achieves fair prunderlying transactions and events in a manner that achieves fair presentation. Communicate with those charged with governance regarding, among other matters,Communicate with those charged with governance regarding, among other matters,Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including anythe planned scope and timing of the audit and significant audit findings, including anythe planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during oursignificant deficiencies in internal control that we identify during oursignificant deficiencies in internal control that we identify during ouraudit. Chartered Professional Accountants, Licensed Public Accountants Waterloo, Canada June, 2020 56 5 - 97 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 57 5 - 98 TTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDD 58 5 - 99 MANAGEMENT REPORT Management’s Responsibility for Financial Reporting The accompanying financial statements of Kitchener Generation Corporation are the responsibility of management and have been prepared in accordance with Canadian public sector accounting standards. The significant accounting policies followed by Kitchener Generation Corporation are described in the Significant Accounting Policies contained in Note 2 of the financial statements. The preparation of financial statements necessarilyinvolves the use of estimates based on management’s judgment, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods. The financial statements have been prepared within reasonable limits of materiality and in light of information available up to June 22, 2020. Management maintained a system of internal controls designed to provide reasonable assurance that Management maintained a system of internal controls designed to provide reasonable assurance that Management maintained a system of internal controls designed to provide reasonable assurance that the assets were safeguarded and that reliable information was available on a timely basis. The system the assets were safeguarded and that reliable information was available on a timely basis. The system the assets were safeguarded and that reliable information was available on a timely basis. The system included formal policies and procedures and an organizational structure that provided for the included formal policies and procedures and an organizational structure that provided for the included formal policies and procedures and an organizational structure that provided for the appropriate delegation of authority and segregation of responsibilities. appropriate delegation of authority and segregation of responsibilities. appropriate delegation of authority and segregation of responsibilities. KITCHENER GENERATION CORPORATION On behalf of management, T F Jonathan Lautenbach, CPA, CGA Chief Financial Officer and City TreasurerChief Financial Officer and City TreasurerChief Financial Officer and City Treasurer A June 22, 2020 Kitchener, Canada R D 59 5 - 100 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 60 5 - 101 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 61 5 - 102 62 5 - 103 TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD 63 5 - 104 T F A R D 64 5 - 105 T F A R D 65 5 - 106 66 5 - 107 67 5 - 108 68 5 - 109 69 5 - 110 70 5 - 111 71 5 - 112 72 5 - 113 73 5 - 114 74 5 - 115 75 5 - 116 76 5 - 117 77 5 - 118 78 5 - 119 79 5 - 120 80 5 - 121 81 5 - 122 82 5 - 123 83 5 - 124 84 5 - 125 85 5 - 126 86 5 - 127 87 5 - 128 88 5 - 129 89 5 - 130 90 5 - 131 91 5 - 132 92 5 - 133 93 5 - 134 94 5 - 135 95 5 - 136 96 5 - 137 97 5 - 138 98 5 - 139 99 5 - 140 100 5 - 141 101 5 - 142 102 5 - 143 ded 5 2020 for the audit committee Meeting 2 Corporation of , 2020 June 22 Prepared May onkpmg.ca/audit The the City of Kitchener Audit Findings Reportfor the year enDecember 31, 2019 Chartered Professional Accountants, Licensed Public Accountants 5 - 144 12789 12 101113 JUSTMENTS S CLOSURE EMENT CES AND CORRECTED AD DIT PRESENTATION AND DIS LTS ALITY AND RISK MANAG OACH Audit Findings Report Table of contents EXECUTIVE SUMMARYAUDIT RISKS AND RESUAUDIT APPRTECHNOLOGY IN THE AUFINANCIAL STATEMENT UNCORRECTED DIFFERENAPPENDICESAPPENDIX 1: OTHER REQUIRED COMMUNICATIONAPPENDIX 2: AUDIT QU 5 - 145 1 | es, Page ing policies and practices your review of the results of our audit of the consolidated , in deficiencies Significant accountUncorrected differences There have been no initial selections of, or changes to, significant accounting policies and practices to bring to your attention.We concur with management’s assertion that any uncorrected audit differenc Control We did not identify any control deficiencies that we determined to be significant deficiencies in internal control over financial reporting. individually and in aggregate, are not material to the financial statements. This Audit Findings Report builds on the Audit Plan we presented to the audit remaining any is to assist you, as a member of the audit committee ’s approval of the financial statements he audit committee t 1 Council completed the audit of the consolidated financial e have w , Audit Findings Report , 2020 . 25 May Completing our discussions with Obtaining evidence of the Obtaining a signed management representation letterReceipt of legal letters Changes from the Audit Plan Finalizing the Audit This Audit Findings Report should not be used for any other purpose or by anyone other than the audit committee. KPMG shall have no responsibility or liability for loss or damages or claims, if any, Executive summary Purpose of this report The purpose of this Audit Findings Reportfinancial statements as at and for the year ended December 31, 2019.committee There have been no significant changes regarding our audit from the Audit Planning Report previously presented to you.As ofstatements, with the exception of certain remaining procedures, which include amongst others:We will update the audit committee, and not solely the Chair, on significant matters, if any, arising from the completion of the audit, including the completion of the above procedures. Our auditors’ report will be dated upon the completion of procedures. 1 to or by any third party as this Audit Findings Report has not been prepared for, and is not intended for, and should not be used by, any third party or for any other purpose. – – – – 5 - 146 profit enterprises - grants, and is not subject to complexity or government off or “channel” stuffing would be utilized to perpetrate fraud - fees, and from The presumed fraud risk is ordinarily associated with forThe majority of revenue is calculated based on MPAC data, approved utility rates Why is it significant?This is a presumed fraud risk. However, the audit team has rebutted this presumption due to the following reasons: ——and userjudgement at the reporting level; and KPMG does not believe that the use of inappropriate cut Fraud Risk from Revenue Recognition significant findings ant risks identified. Significant Risk 1 Significant financial reporting risk Fraud risk from revenue recognition Our response and Not Applicable Audit risks and results We highlight our significant findings in respect of significant financial reporting risks as identified in our discussion with you in the Audit Plan, as well as any additional signific 5 - 147 ctivities. is a presumed fraud risk. We have not identified any specific additional risks of in professional standards to address this risk. These procedures include testing of Why is it significant?This management override relating to this audit. Fraud risk from management override of controls rmed various substantive based procedures examining journal entries that were being posted to the general ledger. Significant Risk ues were identified in our testing performed. 2 Significant financial reporting risk Fraud risk from management override of controls Our response and significant findings As the risk is not rebuttable, our audit methodology incorporates the required proceduresjournal entries and other adjustments, performing a retrospective review of estimates and evaluating the business rationale of significant unusual transactions.KPMG perfoJournal entries were selected using various criteria to identify journal entries that could possibly be related to override aNo iss Audit risks and results 5 - 148 related” project. - Why are we focusing here?Revenue recognized from the Development Charge Reserve Fund is subject to judgement as capital projects must be development in nature by ensuring the expenditure meets the criteria as a “growth Obligatory Reserve Funds Revenue and Deferred Revenue findings focus controls around the recording of revenues/cash receipts Other area of focus TestedObtained management’s continuity schedule for deferred development charges and ensured the spreadsheet was accurate Vouched a sample of development charges collected from developers during the current fiscal yearPerformed substantive testing over amounts being recognized as revenue ur response and significant 3 Other area of Obligatory Reserve Funds Revenue and Deferred Revenue O———— Audit risks and results Significant findings from the audit regarding other areas of focus are as follows:KPMG did not find any issues through our testing. 5 - 149 be reasonable, and consistent with similar term borrowing rates Estimates and judgements used by managementComplexity of the accounting guidance -- Why are we focusing here? considered to %, 3.00 of 19 We believe management’s process for identifying critical accounting estimates is considered adequate. . in 20 (Actuarial Consultant) in our audit of the accounts and disclosures. employment benefits - Post Mondelis Actuarial issues identified through our audit procedures with management’s actuarial specialists d used in calculating the employee future benefits any the reasonableness of assumptions used, and find the appropriateness of the underlying data, including employee populations ed used the work of the Other area of focus employment benefits CommunicateManagement’s process for identification and making accounting estimates are consistent with prior year.AssessTestedDiscount rateEnsured the note disclosure was complete and accurate based on actuary reports. We ur response and significant findings 4 Other area of focus Post-O——————— Audit risks and results Significant findings from the audit regarding other areas of focus are as follows:KPMG did not 5 - 150 Significance of the account balancesRisk of error in inappropriately recognizing costs as either capital or operating -- Why are we focusing here? Tangible Capital Assets (TCA) Other area of focus Substantive test of details approach, vouching samples of additions and retirements in fiscal 2019Review of expense accounts to ensure that items related to tangible capital assets were not inappropriately expensed in 2019Recalculation of amortization expenses performed ur response and significant findings 5 Other area of focus Tangible Capital Assets (TCA)O——— Audit risks and results Significant findings from the audit regarding other areas of focus are as follows:KPMG did not find any issues identified through our audit procedures. 5 - 151 and budgeted tax rates s to ensure proper revenue recognition criteria was followed. To ensure the transfers were authorized and Confirmation of details with investment managersPerformed a substantive analytical procedure using MPAC dataAnalytical procedures were performed comparing current year’s revenues on a disaggregated basis to the current year budget and the prior year, adjusting for known changes in assumptionsSubstantive procedures performed to test the existence and accuracy of expenses Testing the completeness, existence, and accuracy of yearend accruals, most notably those that contain areas of estimate of judgmentReviewed agreementall eligibility criteria and any stipulations were met. Performed test of details on significant transfers audit procedures on the above noted areas of focus Our audit approach and findings——————— our through issues Other areas of focus Investments and related incomeTaxation RevenueUser Fees and Service Charge RevenueExpensesGovernment Transfers Audit approach KPMG did not find any 5 - 152 of the audit. system at the Organization. This tool was Our results and insights Our KAAP tool was utilized to facilitate a direct extraction of all journal entries from the SAPsuccessful in extracting the large data from the system so we can efficiently test journal entries of the audit where Technology and D&A routines were used Areas Tool Data Extraction & Analytics Tools Technology in the audit As previously communicated in our Audit Planning Report, we have utilized technology to enhance the quality and effectiveness 5 - 153 . City letter. relevant financial reporting framework. City’s The form, arrangement and content of the financial statements are appropriate for the size, scope and industry segment of theNo concerns at this time regarding future implementation. following: t not yet effective Form, arrangement, and content of the financial statementsApplication of accounting pronouncements issued bu Financial statement presentation and disclosure The presentation and disclosure of the financial statements are, in all material respects, in accordance with the Misstatements, including omissions, if any, related to disclosure or presentation items are in the management representation We also highlight the 5 - 154 . that all identified differences be corrected. We have already made this request of audit committee adjustments. the Uncorrected differences and Corrected Adjustments Differences and adjustments include disclosure differences and Professional standards require that we request of management and management.Uncorrect ed differences We concur with management’s representation that the differences are not material to the financial statements. Accordingly, the differences have no effect on our auditors’ report Corrected adjustments We did not identify any adjustments that were communicated to management and subsequently corrected in the financial statements. 5 - 155 Appendices Content Appendix 1: Required communications Appendix 2: Audit Quality and Risk Management 5 - 156 of the management a copy ion letter are provided to The audit committee. Management Management representation letter In accordance with professional standards, representathave provided you with a copy of the representation letter for the audit of the financial statements. Appendix 2 Other Required Communications accordance with professional standards, there are a number of communications that are required during the course of and upon completion of Auditor’s report The conclusion of our audit is set out in our draft auditors’ report attached to the draft financial statements Audit quality Audit Quality (AQ) is at the core of everything we do at KPMG. provides more information on AQ. Appendix 1: In our audit. These include: 5 - 157 . . objectivity, integrity for more information including and gram summarizes the key opinion. Audit Quality and Transparency report Executed consistently, in line with the requirements and intent of applicable professional standards within a strong system of quality controls and All of our related activities are undertaken in an environment of the utmost level of independence, ethics, What do we mean by audit quality?Audit Quality (AQ) is at the core of everything we do at KPMG. We believe that it is not just about reaching the right opinion, but how we reach thatWe define ‘audit quality’ as being the outcome when audits are: Our AQ Framework summarises how we deliver AQ. Visit our Audit Quality Resources pageaccess to our – – Industry technical definition standards excellence Performing with our AQ professional aligned with audits in line Methodology expertise and clients tools and leadership technology Associating Smart audit Transparency with the right Governance and Audit Quality Framework and candid Code of including specialists Honest and Appropriately independence qualified team, conduct, ethics communication Appendix 2: Audit Quality and Risk Management KPMG maintains a system of quality control designed to reflect our drive and determination to deliver independent, unbiased advice and opinions, and also meet the requirements of Canadian professional standards.Quality control is fundamental to our business and is the responsibility of every partner and employee. The following diaelements of our quality control system. 5 - 158 All rights reserved. International Cooperative (“KPMG International”). kpmg.ca/audit KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited liability partnership established under the laws of Ontario, is the Canadian member firm of KPMG KPMG member firms around the world have 174,000 professionals, in 155 countries.The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss entity. Each KPMG firm is a legally distinct and separate entity, and describes itself as such.© 2019 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated withKPMG International Cooperative (“KPMG International”), a Swiss entity. 5 - 159 REPORT TO:Audit Committee DATE OF MEETING:June 22, 2020 SUBMITTED BY:Corina Tasker, Internal Auditor, (519)741-2200, ext. 7361 PREPARED BY:Corina Tasker, Internal Auditor, (519)741-2200, ext. 7361 WARD (S) INVOLVED:All DATE OF REPORT:June 2, 2020 REPORT NO.:CAO-20-002 SUBJECT:2ndQuarter Audit Status Report ___________________________________________________________________________ RECOMMENDATION: No recommendation required. The following information is being provided as an update and assurance on internal audit matters, in accordance with the Audit Committee Terms of Reference. BACKGROUND: The following report provides a summary of the Internal Audit assurance services completed during the period of January to March2020.Due to COVID-19 and re-deployment of internal audit stafffrom March to June, audit activity was temporarily paused. As t plans are implemented and regular business resumes, audit activity will also resume.A summary of resulting changes to the 2020 internal audit work plan are includedin this report.The table below shows the auditcontained in this report, which was completed prior to March.In addition, one confidential investigation was completed. Division / TopicScope ProcurementStatus report Assurance work is in progress on the following audits: Overtime and On-call Pay Consulting work is in progress on the following reviews: Development Services process improvement facilitation for the site plan process ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. 6 - 1 REPORT: 2020 Work Plan Adjustments Due to COVID-19 and the re-deployment of internal audit staff to assist with pandemic response and recovery planning, the 2020 internal audit plan hadbeen paused, and a number of planned activities have been impacted. The following adjustmentshave been made to the 2020 work plan. Postponethe Facility Rentals audit until 2021 or beyond since it relies on collecting real time data related to facility booking staff effort. Since community centres and facility rentals are closed at this time itis not possible to continue with this review at this time. Addcontrols audits of any new processes which have emerged as a result of COVID- 19 that involve the safeguarding of assets of any kind.A survey will be sent to all divisions to collect information on processes to include in this scope. Remove rental waterheater review. This review is still taking place butis being led by the manager of the area, with support from service improvement staff. The review is intended to critically examine current processes and be a catalyst for process improvements, rather than a value for money audit. Therefore,internal audit services are not required at this time. All other audits will continue as planned in the second half of 2020. 1.ProcurementStatus Report Date of original audit: November 3, 2014 Completed: March 3, 2020 Overview: The objective of the original audit was toexamine the services provided, processes, resourcing and culture within the Purchasing section of the Supply Services division (Stores was out of scope). The review assessed the positive aspects which should continue, as well as possible areas to improve efficiency and effectiveness, mitigate risks, and improve the culture of the division. The analysis found that the Purchasing section staff are knowledgeable and possess a great deal of purchasing expertise. The purchasing processes are seen to be open, fair and transparent and are applied consistently. There are multiple levels of controls in place to protect the City from fraud and theft. Any non-compliance whichwas found was isolated, small dollars and did not represent a fraud risk to the corporation. There were many small improvements suggested by either staff or customers to help improve the efficiency or effectiveness of their processes. There were threemain themes, however, 6 - 2 which were critical for the section to address in order to be successful, provide value, and avoid losing talented staff. The top three themes were: 1.The lack of a divisional mandate and goals 2.The negative culture within the section 3.The lack of business partner focus Audit Objective: All services which have undergone an audit in the past are subject to a status update, not sooner than one year following the original audit. The purpose of status updates are to hold staff accountable for addressing the audit findings and to identify any areas that have not seen significant progress. Status Definitions: Complete = the recommendation has been fully implemented. In progress= implementation has begun. Not started= No work has begun yet but will in the future. Not required= the recommendation either does not require any action, or it is no longer relevant and no work will be done to implement it. Recommendation Status: StatusNumber of recommendations Number of original recommendations57 Number of recommendations complete48 Number of recommendations in progress4 Number of recommendations not started1 Number of recommendations not required4 Most of the recommendations have been completed. There are four recommendations which are no longer relevant given the long time which has elapsed since the original audit. Only one recommendation has not been started yet which related to creating a checklist for users to assist with creating the recommendations in staff reports for Council. Work was done immediately following the original audit to create a compelling vision statement, establish team focus and improve employee culture within the division,all of which resulted in a number of positive outcomes for the team.However, as a result of turnover within employee culture has deteriorated.The most recent employee culture survey results were not positive. A new management team has recently been established within the division and there has also been turnover at a staff level primarily through attrition.In light of these changes, an opportunity exists to place renewed focus on aligning around a shared vision and building a strong team culture. 6 - 3 Other work was done to update the Purchasing By-law and to improve clarity around purchasing processes. Process improvements are ongoing. Conclusion: Nofurther follow-up is required for this audit, although this topic will remain on the list for periodic compliance testing. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: livery of core service. FINANCIAL IMPLICATIONS: There are no financial implications related to this report. COMMUNITY ENGAGEMENT: INFORM council / committee meeting. ACKNOWLEDGED BY: Dan Chapman, CAO 6 - 4 June 22, 2020 Second Quarter Audit Committee 6 - 5 002 - 20 - CAO 2ND QUARTER AUDIT STATUS REPORT 6 - 6 19, the following revisions to the - Revised Work Plan Postpone Facility Rentals reviewAdd controls audits of new processesRemove Rental Water Heater review Due to COVIDwork plan have been made:••• 6 - 7 ll Pay Ca - Summary Procurement status updateDevelopment Services ReviewOvertime and On n progress: Completed:I 6 - 8 Procurement Develop division mandate and goalsImprove employee cultureImprove business partner approach ––– Open, fair, transparent procurement processesSound controls and no evidence of fraudKnowledgeable staffRecommendations to Original Objective:To assess Procurement division (excluding Stores) services, processes, resources and culture.Findings / Recommendations:•••• 6 - 9 Number of recommendations 48414 revisit mandate, improving culture, : Council report writing checklist for users Status of Recommendations In progress: strategic spend analysis, exploring purchasing strategies Not started Status CompleteIn progressNot startedNot required 6 - 10 aw l - Benefits up required. - Updated the Purchasing ByImproved clarity around purchasing processesProcess improvements are ongoing o further follow •••NCompliance topics will be periodically tested. 6 - 11 REPORT TO:Strategic Session of Council DATE OF MEETING:June22, 2020 SUBMITTED BY:Justin Readman,General Manager, Development Services,519-741- 2200, extension 7646 PREPARED BY:Justin Readman,General Manager, Development Services,519-741- 2200, extension 7646 WARD (S) INVOLVED:All DATE OF REPORT:June17, 2020 REPORT NO.:DSD-20-075 SUBJECT:City of KitchenerRecovery Planning:Stage 2 Re-openings ___________________________________________________________________________ RECOMMENDATION: amended to include additional details regarding outlined in Appendix Ain DSD-20-075, Kitchener Reopens 2.0. EXECUTIVE SUMMARY: The Kitchener Reopens Document, presented to Special Council on June 8, 2020,aligned very Report DSD-20-075identifies where there are differencesin alignment andidentifies specific facilities for phased re-opening. Changes to the Kitchener Reopens are also highlighted in Appendix A. It is important to note that the cost per facility and/or subsidy per participant is significantly higher with COVID restrictions and procedures in place. Therefore, it is very important for the City to follow a phased approach to reopening. Facility/ProgramChangeDetails Splash PadsPhased facility opening isPhase 1 (End of June): McLennan Park, clarified.Centreville-Chicopee and Kingsdale. Possible Phase 2 (Mid July): Victoria Park, Chandler Mowat and Breithaupt PoolsOutdoor pools were Phase 1 Outdoor Pools (Early July): Harry identified in Class Pool, Idlewood Pool Stage 3a, the Province Phase 1 Indoor Pools (Mid-July): Breithaupt announced ability to Phase 2 Indoor Pools (Stage 3a): Forest reopen in Stage 2. Heights and Lyle Hallman Phased facility opening is clarified. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 7 - 1 Facility/ProgramChangeDetails Community Phased facility opening is Phase 1 (End of June mid-July): Kingsdale Centresclarifiedand Mill Courtland Community Centre reopen for food distribution program; Chandler Mowat opens as a cooling centre; Country Hills, Stanley Park, Victoria Hills and Forest Heights reopened for day camp use. Phase 2 (Stage 3a): Doon Pioneer Park, Williamsburg, Bridgeport, and Rockway Community Centres reopened with limited capacity depending on Provincial restrictions. ArenasFacility reopening Phase 1 (Stage 3a, mid-July): Reopening of adjusted within Stage 3aDom Cardillo Ice Pad, Sportsworld and Activa for National or Provincial Sports Organization trainingonly. PlaygroundsThe City had identified Playgrounds moved from Stage 2 to Stage playgrounds possibly opening in Stage 2. The Province is not permitting playgrounds to open until Stage 3 Virtual meetings Moved from Stage 3a to The Province of Ontario has stated that the used to facilitate planning act decision time clock is restarting nd other legislated reopening frameworkon June 22and is encouraging virtual engagement engagement to be conducted on planning requirements matters. Therefore, this item has been (e.g. Planning moved forward in the reopening framework Information to accommodate provincial direction, if Centres or needed. Environmental Assessments) BACKGROUND: On June 8, 2020, Council endorsed the recommendation outlined in report DSD-20-072, City of Kitchener Recovery Plan, Reopening Framework and Post-Pandemic Opportunities. While Council was discussing the reopening framework, the Province of Ontario announced that 24 out of 34 Public Health Unitsacross Ontario, including Region of Waterloo Public Health and Emergency Services,were permitted to enter Stage 2of their reopening framework. plan permits the reopening of additional retail, food and personal services; additional outdoor and recreational activities; and, additional care and community services. Water recreational facilities (indoor and outdoor pools, splash pads)within the outdoor and recreational activities category are now permitted to open, subject to several procedural 7 - 2 changes and restrictionsto limit the spread of COVID-19. Outdoor recreational sportstraining is also permitted. Community centres are permitted to reopen to provide limited services. mework aligned quite well with the Provincial announcement. The details regardingthe Provincial Stage 2re-openingswere limited at the time of authoring DSD-20-072and staff had applied the overall assumptions correctly to align our service delivery withlikely re-openings. The areas out of alignment related to indoor swimming pools (where the City had identified these as opening later), and playgrounds(wherethe City had identified opening earlier).The staged reopening of Kitchener Facilities and amenities have been updated in the Kitchener Reopens version 2.0 document, attached in appendix A As outlined at the June 8, 2020 Strategic Session of Council, it will not be possible to open all facilities at once and facility reopening will need to be phased.This is due to the following: physical distancing and other health and safetyrestrictions from the Province; a customized plan to reopen safely; time and resources for staff to implement that plan;and, in some cases, funding for new safety measures. REPORT: In order to prioritize which facilities to reopen staff developed and applied a set of prioritization criteria. The criteria areas follows: Community Need/Partner Readiness o Proximity to other available public recreation facilities o Proximity to other free passive recreation opportunities o Facility located in a high need community (i.e.high youth population, high density, lower income) o Availability of partner programs to be delivered at the facility Facility Criteria o The amount of useable space in the facility o Number of washrooms in the facility o Complexity to reopen the facility (constrained layouts, etc.) o Whether the facility or amenity provides barrier freeaccess Financial Criteria o Staff requirements to reopen the facility or restart the program o Retrofit/renovation costs to ensure provincial restrictions are met o The opportunity for the facility to recover/generate revenue Splash Pads th Staff are working towards opening three splash pads on June 26as the first phaseof splash pad re-openings. These include McLennan Park, Centreville-Chicopee and Kingsdale(including public access washroomnear Wilson Pool). Due to provincial restrictions requiring timed entry and physical distancing, the operations of splash pads will be very different during the pandemic. 7 - 3 The changes require fencing to be installed around the splash pad and staffing the splash pad with at least two staff members per padandduring eachshiftto limit entry and ensure physical distancing. Capacity at splash pads will be limited tobetween 10 -20 people at a timeand following the existing requirement thatanyone under the age of 9 needsto be accompanied by a guardian. Phasing the reopening of splash pads will help to understand how many staff are needed and how well the measuresto ensure compliance with provincial restrictions are working.Victoria Park, Chandler Mowat and Breithauptsplash pads maybe phased for reopening by mid-July. Pools The Harry Class pool is a large outdoor pool with lots of deck space to support physical distancing and is recommended to reopen in early July to provide family swims, lane swims, professional development, and family lessons. The Idlewood pool is recommended to reopen in early July for free family swims to support a high need community. The province has placed a number of restrictions on public pools. These include: water slides will not be permitted to reopen in Stage 2. Change rooms and showers will be available to the public if operators can adequately sanitize and disinfect the facilities. People shall always maintain physical distancing of at least two metres from each other by: o Reducing resting areas and pool capacity. o Limiting and distancing pool-side seating. o Timed entry The indoor pool recommended to openas a first phaseis Breithauptin mid-July. Opening an indoor pool will extend the operating hours past 7pm and alleviate pool pressures when there is inclement weather. This pool will provide opportunitiesfor lane swims, public swims, older adult swims and family lessons while providing the space required to promote promotedistancing. Community Centres Staff are recommending the opening of the Chandler Mowat Community Centre and Mill Courtland Community Centre for modified purposes. Chandler Mowat Community Centre is planned to be opened as a cooling centre during times where the community needs respite from the heat, during a heat alert.Mill Courtland would be opened to volunteers two days a week to support the Mill Courtland Neighbourhood Association and Highland- bag lunch program. This program provides lunches to local community residents and takeout/delivery food service is currently permittedby the provinceto occur at community centres.The Kingsdale Community Centre is also recommended to reopen to provide food distribution services by the House of Friendship on Wednesdays. Thisfood distributionis currently occurring within the parking lot. However, with warmer weather, it is recommended that 7 - 4 the program be relocated indoors. In theseinstances, existing staff would be redeployed to provide support to these activities,orthey willbe delivered by community partners. Staff are also recommending to open four community centre facilities for day camp useonly. These include, Country Hills Community Centre, Stanley Park Community Centre, Victoria Hills Community Centre and Forest Heights Community Centre. largest community centres and contain some of our larger meeting rooms and gymnasiums. Using these facilities allows us to maximize the number of participants in the day camp program. When reviewing smaller facilities, it was found that they were less feasible options, given the small spaces, and hallways etc. which directly affects the number of participants that can be accommodated. The province has provided guidanceon how to operate summer day camps, which includes many restrictions to protectthe health and safety of staff and the camp participants.With all the provincial restrictions in place, the City will be able to offer summer camp services to approximately 1,000-1,300 individuals, rather than the 4,900 spaces offered in a typical year. Staff will need tobe recalled from DELin order to run summer day camps this year. Thecommunity centre will not be open to the public beyond those participating in the summer day camp program. The Ministry of Health COVID-19 Guidance Document forSummer Camps requires day camp providers to implement strict and clear daily screening requirements of all staff and campers, detailed daily record keeping for contact tracing perspectives and a minimum facility cleaning schedule of two times per day. Additionally, the requirement to maintain secure cohorts of ten while maintaining physical distancing and the removal of all public common areas requires staff to maximizeand reserve all occupancy capacity in order to provide as many camp spaces as possible.As such, it will not be necessary to staff the community centres, beyond the daycamp staffbeing recalled. permitted, including a variety of indoor recreation services and programs. The province is currently only permitting limited, physically distant activities at community centres. These include: In-person counselling; Group counselling; Computer access; Education; and, Tutoring Therefore, it is not practical, nor recommended to open additional community centres until restrictions are further lifted, likelylater in the summerin Stage 3A. Arenas In report DSD-20-072,arenas were scheduled to reopen in mid-August.Staff are recommending advancing the reopening of ice arenas to mid-July to ensure iceisavailable for the sport groups who are successful in obtaining all their approvals from their National or 7 - 5 Provincial Sport Organizations and can provide individual or small group training in accordance with Waterloo Region Public Health guidelines.The number of ice sheets to be installed will be determined and scheduled based on the sport groups securing their approvals and the number of hours they are requesting. The Citywill open one to four sheets of ice starting with Activa Sportsplex and then Sportsworld, depending on demand. The splash pads, outdoor pools and community centres are generally distributed acrossthe City; however, focus on community need and other criteria have guided the recommended first phased opening. As our recovery progresses, the City will reopen additional amenities, as outlined in the staging plan attached asAppendix A. ALIGNMENT WITHCITY OF KITCHENER STRATEGIC PLAN: The recommendationsof this report support the delivery of core service. FINANCIAL IMPLICATIONS: As the City begins to slowly reopen in various phases of the recovery plan, additional costs will be incurred in order to make facilities and amenities safe for staff and the public. The following tables outline the typical costing to provide these services and the costing under COVID-19 restrictions.Any costs would be applied to the appropriate operating budget. Splash PadsPer Pad Costing* Pre-COVIDCOVID Modified Program Queue and Physical $0$19,885 Distancing Staffing Pre-season Cleaning$400$400 Signs and Fencing$0$1,217 Custodialand Sanitization $984$4,645 Products NetCost Per Splash Pad$1,384$26,147 *Note: Utilities are not included in the comparison as they are highly variable based on seasonal temperatures,user demand, are not metred by time of useand/or the metre is shared with other adjacent facilities. There may be utility cost savings due to operations being limited to 8 hours a day, rather than 12 hours a day. The costs included are known pre-COVID and modified COVID programcosts. Pools Harry ClassPre-COVIDCOVID Modified Program Participants22,39517,920 Revenues$82,820$12,013 Sport Expenses$95,719$93,715 FM Expenses$54,534$54,534 Net Cost$67,433$136,235 Subsidy Per Participant$3.01$7.60 7 - 6 IdlewoodPre-COVIDCOVID Modified Program Participants3,9043,000 Revenues$7,602- Sport Expenses$37,852$37,392 FM Expenses$22,108$22,108 Net Cost$52,364$59,500 Subsidy Per Participant$13.41$19.83 BreithauptPre-COVIDCOVID Modified Program Participants10,2216,720 Revenues$106,082$3,771** Sport Expenses$114,845$113,360 FM Expenses$111,738$111,738 Net Cost$120,501$221,328 SubsidyPer Participant$11.79$32.94 **Note: Existing seniors discounts and membership cards are heavily used at this site Community Centres (summer day camps only) Pre-COVIDCOVID Modified Program Number of Registered 4,900Estimated, 1,000 1,300 Spaces Available Part-time Camp Staff196Estimated, 103 Total Revenue$390,000$220,000*** Total Cost$769,055$610,070 Net Cost$379,055$390,070 Subsidyper Participant$77.36$300.05-$390.07 ***Note: Total Revenue includes a $98,000 wage subsidy grant which was awarded by the Federal Government from the Canada Summer Jobs Initiative, Youth Employment and Skills Strategy. Although staff apply for the grant yearly, receiving approximately $15,000under normal circumstances, the amount of the subsidy providedthis year was increased to $98,000 in response to Covid-19. COMMUNITY ENGAGEMENT: INFORM councilmeeting.Cost comparisons have been provided that show typical operating costs and the anticipated costs associated with operating under COVID-19 Provincial restrictions. PREVIOUS CONSIDERATIONSOF THIS MATTER: DSD-20-072, City of Kitchener Recovery Plan, Reopening Framework and Post-Pandemic Opportunities ACKNOWLEDGED BY: Dan Chapman,Chief Administrative Officer 7 - 7 KITCHENER A PHASED APPROACHTO REOPENING MUNICIPAL FACILITIES& RESUMINGVALUEDPROGRAMS, SERVICESANDEVENTS JUNE 22,2020 Version2.0 kitchener.ca/covid19 7 - 8 PHASEDREOPENING MID-JUNETOMID-JULY GUIDANCEFROMTHEPROVINCEOFFRAMEWORKFORREOPENING Opening more workplaces with significant mitigationplans Opening more publicspaces Allowing some larger publicgatherings Continued protections for vulnerablepopulations Public health measure/restrictions willcontinue Remote work arrangements should continue wherefeasible ASSUMPTIONS Provinceeasesrestrictionstoallowsomelargerpublicgatherings Staffcontinuetoworkfromhomewheretheycandosoeffectively Requirements for physical distancingcontinue Adequatestaffingisavailabletoprovidetheseadditionalservices OUTDOORAMENITIESPROGRAMS&EVENTS INDOORFACILITIES SomesportsfieldsreopenforSmaller public bookings maybegin Pilotfoodtrucksat5community modifiedbookings,iforganizedat 1-2 City facilities, dependentoncentre locations across thecity. sportsareallowedbytheprovincecrowdsize Non-legislatedwrittenconsultations (under modifiedconditions). City Hall open byappointment.begin(notlinkedtostatutory ReopeningofHarry Class and approvals) Country Hills, Stanley Park, Idlewoodoutdoorpools. Victoria Hills and Forest Virtual meetings used to Reopen Breithaupt pool. HeightsCommunityCentres facilitateother legislated reopened forday camp use.engagementrequirements McLennan Park, Centreville (e.g.PlanningInformation Chicopee and Kingsdale splash Kingsdaleand Mill Courtland Centres forEnvironmental padsopen as a first phase, with Community Centre reopens Assessments) Victoria Park, Chandler Mowat and for food distribution program. Breithaupt splashpads opening Chandler Mowat opens as a later in this stage. cooling centre. Reopenlawnbowlingclub& WRBA facility. Reopen KMHA, Kitchener Rangers and KSC offices. This framework for reopening is one component of the City of overall COVID-19 Recovery Plan. It outlines a gradual, phased reopening of municipal facilities, and the resumption of programs, services and events, based on the latest direction of the Province of Ontario and local public health officials as of June 1, 2020. As the situation in Ontario continues to evolve, those directions will change and the City will be required to adjust its reopening plan. Final decisions about when specific facilities will be reopened are subject to future provincial guidance and the easing of public health restrictions. In making final decisions about reopening, the primary goal will be to protect the health and wellbeing of its employees, as well as the residents it serves. 8 7 - 9 PHASEDREOPENING MID-JULY TOSEPTEMBER GUIDANCEFROMTHEPROVINCEOFFRAMEWORKFORREOPENING Openingallworkplacesresponsibly,withappropriateprotocolsinplace Furtherrelaxationofrestrictionsonpublicgatherings Continued protections for vulnerablepopulations Public health measure/restrictions willcontinue Remote work arrangements should continue wherefeasible ASSUMPTIONS Provincefurthereasesrestrictionstoallowlargepublicgatherings Concertsandlargesportingeventscontinuetoberestricted Requirements for physical distancingcontinue Riskassessmentsandpoliciesareinplacetoprotectstaffandthepublicaccessingservices Adequatestaffingisavailabletoprovideadditionalservices OUTDOORAMENITIESPROGRAMS&EVENTS INDOORFACILITIES tƌğǤŭƩƚǒƓķƭ ƩĻƚƦĻƓ źŅ ƦƩƚǝźƓĭźğƌ City Hall continues to be openbyRegularStandingCommittee/ ƩĻƭƷƩźĭƷźƚƓƭ ğƌƌƚǞ͵ appointmentonlyCouncil cycle resumes inAugust (virtual delegationsonly) Phased re-opening of arenasfor small scale bookings andorganizedModified Advisory Committees and sports booking, if allowed by thequasi judicial committeescommence province Virtual meetings used to facilitate ReopeningDomCardilloIcePadnon-legislated communityengagement and Sportsworld & Activa arenas. Increasegroupprogrammingcapacity AdditionalstaffbegintoworkatCity in recreationfacilities Hallutilizingshifts(laterinthisphase) Providesmallscaleevents/festivals Acceptslightlylargerbookingsandre- inamodifiedformat,ifallowedby openindoor recreation atCityfacilities,if theprovince allowedbytheprovince. Doon Pioneer Park, Williamsburg, Bridgeport, and Rockway CommunityCentres reopenedwith limitedcapacitydepending on provincial restrictions. Re-opening of Forest Heights and Lyle Hallman indoorpools. This framework for reopening is one component of the City of overall COVID-19 Recovery Plan. It outlines a gradual, phased reopening of municipal facilities, and the resumption of programs, services and events, based on the latest direction of the Province of Ontario and local public health officials as of June 1, 2020. As the situation in Ontario continues to evolve, those directions will change and the City will be required to adjust its reopening plan. Final decisions about when specific facilities will be reopened are subject to future provincial guidance and the easing of public health restrictions. In making final decisions about reopening, the primary goal will be to protect the health and wellbeing of its employees, as well as the residents it serves 7 - 10 Specific amenities, between 2020onsecond addition,engagement non-legislatedengagements period accine19widelyailable All sportsfields reopen for regularAllMunicipalbuildingsopentoRegularCouncil/Committee bookings and return to theirregularpublicusedelegationsresume maintenancecycle Reinstate larger bookings atCityResumeeventsandlarge facilitiesgatherings Resumeregulardaycampsand community centreprogramming 7 - 11 -19 Recovery Plan. It outlines a gradual, phased reopening of municipal facilities, and the resumption of programs, services and events, based on the latest direction of the Province of Ontario and local public health officials as of June 1, 2020. As the situation in Ontario continues to evolve, those directions will change and the City will be required to adjust its reopening plan. Final decisions about when specific facilities will be reopened are subject to future provincial guidance and the easing of public health restrictions. In of its employees, as well as the residents it serves. 7 - 12 REPORT TO:Special Council DATE OF MEETING:June 22, 2020 SUBMITTED BY:Barry Cronkite, Director, Transportation Services, 519-741-2200ext. 7738 PREPARED BY:Darren Kropf, Active Transportation Planning Project Manager, 519-741-2200 ext. 7314 WARD (S) INVOLVED:All Wards DATE OF REPORT:June4, 2020 REPORT NO.:DSD-20-073 SUBJECT:Activation of Streets ___________________________________________________________________________ RECOMMENDATION: That staff be directed to assess opportunities to quickly and affordably expand active transportation infrastructure to facilitate essential tripsand exercise while physical distancing; That painted bike lanes be installed on Krug Street (River Road to East Avenue),Franklin Street (Weber Avenue to Ottawa Street) and Stirling Avenue (Courtland Avenue to King Street), and that the Uniform Traffic By-law be amended accordingly; That Delta Street be permanently converted from a road to a multi-use trail, including an interim road closure until full reconstruction in 2021; That Gaukel Streetbe closed from Charles Street to Joseph Street and converted into a passive seating area until November 2020; That notwithstanding Section 9(a), Schedule 12, of Chapter 599 of The City of Kitchener Municipal Code, for the time period of July 1 to August31, 2020, which may be extended area zoned R1, R2, R3, R4, R5, R6, R7, R8 or R9 by the City Zoning By-law, as amended, in the City of Kitchener, provided they comply with Chapter 599 as well as the various conditions set out in Report DSD-20-073; and further, That the Uniform Traffic By-law be amended to reflect recent and current bike lane installations through street reconstructions on Mill Street (Stirling Avenue to Ottawa Street), Franklin Street (Trafalgar Avenue to Weber Street)and Stirling Avenue (Greenbrook Drive to CourtlandAvenue). *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 8 - 1 EXECUTIVE SUMMARY: The ongoing efforts to improve active transportation has continuedthrough the pandemic, with some new initiatives, some recently startedprojects ready for City Council approval,and several existing projects under construction. Through a variety of seasonaland permanent upgrades, the city can add approximately 13.5 kilometersof new active transportation facilitiesand additional temporary outdoor seating/dining areasin 2020,as well asnew secure bike parking facilities. StreetFacility typeLength VariousSlow StreetsApproximately 5 km Krug StreetPainted bike lanes1.5 km Franklin StreetPainted bike lanes1.7 km Stirling AvenuePainted bike lanes0.7 km King Street, Belmont Avenue & Seasonal conversion to 1.2 km Gaukel Streetpatio and passive seating Mill Street(Stirling to Ottawa)Painted bike lanes0.8 km Mill Street(Ottawa to Courtland)Boulevard multi-use trail0.8 km Wilson AvenueBoulevard multi-use trail1.0 km Budd ParkMulti-use trail0.8 km The majority of capital funding is providedprogramfor street reconstructions and a provincial grant through the Ontario Municipal Commuter Cycling (OMCC) program. According to the grant agreement, the OMCC funding must be spent before the end of 2020 or be returned to the province. BACKGROUND: As the province and city begin to lift emergency measures, People-Friendly Transportation will take on greater importancethrough the remainder of the pandemicand post pandemic period.A shift away from public transit is expected for at least the short to medium term, puttinggreater pressure on both vehicle and activetransportation networks.An additional pressure on the street network exists as restaurants and bars are currently only permitted to provide non-takeaway dining through outdoorpatioseating to maintain physical distancing. People living in apartments and condos are having a muchdifferent experience during stay at home orders than those living inhousing with front and back yards. People living without private outdoor space are reliant onaccessingpublic spacessuch as streets, trails and parks for physical activity and mental well-being. Redeployed city staff have been monitoring active transportation corridors to gather data on the frequency of residents walking, rolling and cycling. It is clear from the data that more people are choosing active transportation at this time.Studies along the IronHorse trail indicate that active transportation has more than doubled when compared to 2018 (the IronHorse Trail was closed for upgrades in 2019)as illustrated in the table below: 8 - 2 Daily IronHorse Trail use pre and post COVID-19 Month20182020 February230279 March305616 April 402793 May7191,189 To help understand the impacts of COVID-19 on vehicle patterns, city-wide data collection for motor vehicle speed and volumes was conducted over a 4 week period in May 2020 at 22 strategic locations. Basedon this information, motor vehicle volumes were reduced by 52%over pre-pandemic data counts.Vehicle speeds varied from street to street, with no discernable pattern. Increases in speed by up to 8 km/h were found on some streets, while decreases down to 5 km/h were also measured. All proposed cycling facilitiesin this reportare identifiedin The Cycling Master Plan (2010), which outlines a plan to implement 114 kilometres of cycling infrastructure over 20 years. It is worth noting that all affected streets are identified in the draft Cycling and Trails Master Plan as well, which will be brought forward to Council later this year. REPORT: New initiatives Slow Streets Slow streets is a temporary change to city streets to create slower and safer neighbourhood streets that are more comfortable for walking, rolling, and biking. Streets designated as Slow Streets willnot be fully closed to vehicle traffic, but will beclosed to through trafficmeaning only emergency vehicles, maintenancevehicles, delivery vehicles and people who live on the street are intended to have access. All users of the street must still follow the rules of the road, but by reducing traffic volume, it is safer for cyclists and vehicles to share the street while pedestrians can safely use the sidewalk and pass on the roadway as necessaryto maintain physical distancing. Staffis working with neighbourhood associationsto identify streets, as well recommending streets based on proposed neighbourhood bikeways in the draft Cycling and Trails Master Plan. Neighbourhood bikewaysare quiet, local streets that can be enjoyed in a low-stress environment Focusing on neighbourhood bikeways is a reflection that staffanticipate seeing higher numbers of local cyclists using these streets, and therefore the reduction in through traffic will make the street feel more comfortable for pedestrians and people cycling. Preference has been given to the neighbourhoods indicated in the table below due totheir increased vulnerability relative to the rest of the City of Kitchener. This vulnerability was 8 - 3 determined usingpopulationdensity, vulnerabilityof COVID-19(age over 65)and proximity to major trails appropriately wide enough for physical distancing. Neighbourhood*Population**Vulnerability of Proposed Boundaries DensitypopulationStreet Central HighHighCameron Street King to East Fredrick&Stirling to Frederick Samuel Street Heritage ParkHighHighMontcalm Drive Lorraine to Ottawa Victoria HillsMedHighBrybeck Westmount to Karn Crescent VanierMedHighGreenfield Fifth to Traynor Avenue RockwayMedHighSydney StreetCourtland to Charles & Delta Street& Sydney to Floral *Population density: High: 5,000 < population per area square km, Medium: 2,500-4,999, low:< 2,500 **Vulnerability of population: High: More than 45% of population is 65+, Medium: 20%-30% population is 65+, low: Less than 5% In addition to theabovepriority neighbourhoods, Slow Streets were implemented on the following: Duke St W(Wellington Stto WaterlooSt) and ShanleySt(DukeStto MooreAve) Duke St E(PandoraAveto CedarSt)and Cameron Street (Weber St to King St) The above noted streets were identified by their respective neighbourhood associations. Staff then reviewed and determined that they were ideal candidates for the program given that they are currently identified as neighbourhood bikeways within the CTMP that typically do not carry transit. Krug Street bike lanes Krug Street is currently a very wide, two lane road with on-street parking.Krug Street is one of the bestoptions for cycliststo connect between the east side of the city andthe downtowndue to the absence of highway ramps and limited roadway volume,relative to Regional roads.That being said, there is still a considerable amount of volume(app. 5,000 vehicles per day) and high th rates of speed (58km/h 85percentile) that make Krug Street uncomfortable for cycling. The proposed bike lanes extend from River Roadto East Avenue, connecting to the existing bike lanes on East Avenue, and include a painted buffer where space permits. This will make Krug Street a safer, more comfortable connection. On-street parking alongboth sides of Krug Street between EastAvenueand DumfriesAvenue will be impacted(approximately 27spaces). From DumfriesAvenueto RiverRoad, parking on the east side will be impacted, (approximately 70spaces), while parking on the west side will be maintained (approximately 68spaces). Parking studies conducted in 2016 found an average occupancy of less than 10%, indicating the remaining spaces are adequate to satisfy parking demand. To improve access to parking for residents between East and Dumfries, an additional 8 - 4 7spaces are proposed to be added on Krug between Merner Avenue and EastAvenue,in place of a right turn lane. A public open house was held on May 18, 2017, with 23 comments and 20 surveys submitted. Support for the bike lanes were expressed, as well as concerns regarding traffic speed and the loss of parking and trees. Alternative parking arrangements were investigated, such as the addition of parking between Merner Avenue and East Avenue. The tree impacts were isolated to the section betweenWeber Street and East Avenue, andbike lanes are no longer recommended for installation in that sectiondue to the impacts to very large stature trees. Alternatively, staff are proposing acycling route using East Avenue, Chapel Street and Lancaster Avenue, which is being recommended in the Cycling and Trails Master plan and is being considered for installation cycling grid with connections from surrounding neighbourhoods, in 2021. Franklin Street bike lanes Reconstruction of Franklin Street North between Weber Street and Trafalgar Avenue began in 2019 and will be completed in 2020, including the addition of new bike lanes. An amendment to the Uniform Traffic Bylaw is needed to reflect these changes. To complete the bike lane connection to Ottawa Street and the Dom Cardillo Trail, and serve a school and community centre, bike lanes are proposed from Trafalgar Avenue to Ottawa Street. There is sufficient roadway width on Franklin to add bike lanes and a painted buffer. Twenty- eight parking spaces will be removed, with an average occupancy of 8% (study conducted in early 2020, before state of emergency). A public open house was heldon March 10, 2020 with 40 attendees. The majority of attendees supported the bike lanes. One resident from outside the project limits was concerned regarding the loss of parking. The Cycling and Trails Advisory Committee passed a motionon March 10, 2020: Stirling Avenue bike lanes Over the last several years, Stirling Avenue has been reconstructed several blocks at a time. Bike lanes have been added with each stage of construction. In 2020-2021, reconstruction will see bike lanes added to the southerly limits, creating a continuous corridor from Greenbrook Drive to Courtland Avenue.An amendment to the Uniform Traffic Bylawis neededto reflect these changes. Staff are proposing to extend the existing bike route on Stirling Avenue by installing bike lanes between Courtland Avenueand King Street. This portion of Stirling Avenue have excess road capacity to convert the street from four lanes to two (with left turn lanes) and add bike lanes, through repainting and signage. This section can be done in rapid implementation (1-2 months depending on contractor availability). 8 - 5 When complete, Stirling will be a continuous cycling corridor linking the east end of downtown to a new active transportation bridge over the expressway into Chandler Mowat and Alpine neighbourhoods, and improving connectivity to McLennan Park. Delta Streettemporary closure (2020) and conversion to multi-use trail (2021) Delta Street is scheduledfor a full reconstruction in 2021. Being parallel to Charles Street East and based on updated traffic data, Delta is considered a redundant roadway in terms of capacity and access; however it contains underground infrastructure that cannot be located (looped water mains and sanitary sewer connections. Future redevelopment will orient vehicle access to SydneyStreetand/or CharlesStreet.As a result, staff identified an opportunity to convert the road to a multi-use trail, providing a pedestrian and cycling connection from the Iron Horse Trail to Rockway Gardens and the Rockway, Kingsdale and Vanier neighbourhoods. This is consistent with the draft Cycling and Trails Master Plan and the Planning Around Rapid Transit Stations master plan for the Rockway neighbourhood. The design of the trail will generally match the Iron Horse Trail. With construction scheduled for 2021, an interim closure with road closure barricades can open up the street for active transportation and physical activity, and give the community a chance to experience the new configuration before permanent changes are made. The Cycling and Trails Advisory Committee passed a motion committee supports the redevelopment of Delta Street into a multi-use trail, as pres Following the cancellation of a planned open house, property owners next to Delta Street were informed of proposed plans to convert the street to a trail and were in support of the proposal. In addition, staff is proposing a boulevard multi-use trail on Sydney Street to fill the short, 200 m gap between the Iron Horse Trail, Nyberg sidewalks/contraflow bike lane and the proposed new trail on Delta Street.The trailis located on the golf course side of the street and will have no impact on privateproperty. It is planned be included as part of the Delta Street reconstruction tender in 2021. King Street and Belmont Avenue seasonal conversion to patios The food service industry has been impactedby the COVID-19 pandemic.In order to support the viability of restaurants, the city launched a streamlined patio program. To facilitate greater outdoor seating capacity, restaurants have requested additional street space for patio expansion in 2020. In efforts to promote local downtown business recovery, City staff have been working with King Street businesses to provide extended patio spaces, in collaboration with the Downtown BIA. Expanded patio spaces create greater community vibrancy as residents reclaim their downtown neighbourhood in the safest way possible and support downtown businesses to safely serve customers. Additionally, staff are exploring options to expand pedestrian space on King Street for increased physical distancing measures. The closure is dependent upon feedback from businesses and 8 - 6 resident response to visiting the downtown. If appropriate, the closure would take place in two stages. Stage 1 would see the closure along King Street from Young Street to Ontario Street, running approximately from July 2, 2020-Sept 30, 2020. Contingent upon favourable resident and business response staff would move towards a second closure. The stage 2 closure of King Street would be determined by input received andwould begin August 4, 2020-Sept 30, 2020. The closed portion of King Street would feature additional public seating and safe community programming while maintaining physical distancing measures. While we cannot replace the large summer events the City is known for, this type of initiative supports smaller gatherings and is reflective of the programming we can provide at this time, allowing groups to gather in small numbers in a safe manner. Similarly, city staff have agreed to temporarily closethe auxiliary lane of Belmont Avenue West between Argyle Street and Claremont Avenue to motor vehicles and convert to patio space until fall of 2020.Again, City staff have been working with businesses and the Belmont Village BIA to provide this space in an appropriate manner that meets the needs of businesses and still provides for appropriate physical distancing. Food Trucks in Residential Zones Staff have received requests from thefood truckindustryto permitoperation in residential zones as an economic tool.The desirability of this type of operation is evidenced by the fact that residents often inquire if food trucks can be hired for operation at a personal home or neighbourhood event. Traditionally, this would require a special event licence. Food truck operatorshave requested tooperate near residential parks, schools, and high-density neighbourhoods, as they speculate that is where they will have the most exposure and pass-by traffic. It is worth noting that there are approximately 37 food trucks that operate in Kitchener annually,21 of which have renewed for the 2020 season. There are many advantages to allowing food trucks to operate in residential zones.Specifically, it continues to promote community identity and a sense of belonging, especially in areas with high-density, for example townhouse complexes. Allowing food trucks in residential zones provides the possibility for various food options within a neighbourhood, limiting the need to visit commercial areas with higher exposure to covid-19 concerns. It also eliminates the need to obtain a special event permit whenhavingafood-truck attend aprivate residence. With the reduction of special events occurring across the city, thisinitiative willhelp support food trucks that arecurrentlylicensed and operatingin the City of Kitchener. It will increase their visibility and increase the locations that they are permitted to operate.It willalsoencourage food trucksyet renewedto obtain their 2020 licence. In order to ensure public health and safety, nuisance control, and consumer protection, staff have developed conditions that will dictate proper operation. The conditionsinclude: Food truck must have a valid City of Kitchener business licence; 8 - 7 Operate only between the hours of11:00am 8:00pm; or school); No horns, flashing lights, or amplified sound/music would be permitted; Parking must be in a legal parking spot and must abide by allparking regulations; Food truck must be parked in a manner that the serving window is parallel to the sidewalk; Parking in one location has a 2-hour maximum limit and then the food truck must move to a different street; Food trucks cannot operate within200 metres of a property with a licensed Food Shop; Food trucks cannot operate within 500 metres of each other; Food trucks cannot operate on Regional roads; Operator must ensure that no waste is left behind; Operator must ensure that any line-ups are onthe sidewalk or boulevard; and Operator must ensure that physical distancing measures are in place. Any violation of any of the conditions listed above, the Business Licensing By-law, or another Municipal by-law will result in revocation of permission by the Manager of Licensing to operate in residential zones. Food trucks are required to continue to comply with the all other regulations in the Business Licensing By-law. Gaukel Streetseasonal conversion to passive seating area a plan to create apedestrian-firstGaukel Street.A project team of staff and community members has been working for several months on this project, generating many creative ideas to enhance the current pedestrian experience.Many of these ideas centred on active events and aprogramming schedule that isnot currently feasible during the pandemic; however,the street can still be a valuable active transportation connection and passive seating area for takeout dining and community-based art. City staff is recommending closingGaukel Streetbetween Joseph Street and Charles Street to motor vehicle trafficfor passive dining and recreation useuntil November 2020. This provides the community an opportunity to experience the space in its current format, and imagine what the space might look like in the future, when a more comprehensive pedestrian first street and public space experience can be provided. Projectconstructionupdates(for information purposes) Mill Street bikelanes(Stirling to Ottawa)and multi-use trail(Ottawa to Courtland) Mill Street is being reconstructedand will include cycling facilities, which will connect tothe ION Mill Station from either direction and createa more connected cycling network. Mill Street facilities will also connectwith bike lanes on Stirling Avenue, the recently built multi-use trail on Courtland Avenue under the expressway and Ottawa Street bike lanes, thereby filling a major critical gapin the cycling network. 8 - 8 The intersection of Mill Street and Stirling Avenue rst two-stage left turn queue boxes. This designencouragesless confident cyclists to take a more cautious approach to turning left. Instead of mixing with vehicles in the left turn lane, cyclists can stay aligned with the bike lane and proceed through the intersection with a green light, and then wait at the other side until the light switches again to proceed in the opposite direction. This design is based on newly established best practices as outlined in the Ontario Traffic Manual. Public consultation meetings were held in advance of construction, informing residents of the impending construction and intention to add sidewalks, multi use trail and bike lanes along Mill Street. Wilson Avenue boulevard multi-use trail Currently a four lane road, Wilson Avenue has no cycling facilities and intermittent sidewalks. A multi-use trail in the boulevard on one side of the street is proposed. Given the industrial focus of the neighbourhood, pedestrian volumes are sufficiently low that a multi-use trail for both pedestrians and cyclists is appropriate. Staff investigated the feasibility of pedestrian and cycling facilities between Webster Road and Kingsway Drive, in order to provide a full connection to Fairway ION Station, Fairview Mall and the Kingsdale neighbourhood. However, further studies and analysis is needed as a result of space constraints and challenges due to the railway overpass and LRT corridor. This work could not be included within the timelines of the grant requirements, so has been deferred to a later date. Budd Park multi-use trailupgrade In 2019-2020, the Region of Waterloo constructed a 7km boulevard multi-use trail along Homer WatsonBoulevard, with an 800 m gap through city-owned Budd Park. Anexisting stone dust trail through Budd Park requires upgrading to asphalt to make it a four season facility. Upgrading the trail through Budd Park to asphalt and widening it to 3 m would make the entire Homer Watson corridor accessible year round for adjacent neighbourhoods, industrial employment lands and retail located along the corridor. Secure bike parking Construction has begun on new secure bike parking facilities at the Duke Ontario and Kitchener Market parking garage, bringing secure bicycle parking to all of the City of Kitchener garages. While additional bike rackcapacity and amenities are still to come, both secure bike parking locations are available foruse. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Strategic Priority:People-friendly transportation.Transform how people move through the city by making the transportation network safe, comfortable and connected. 8 - 9 FINANCIAL IMPLICATIONS: SlowStreets While full cost implications are not yet known, it is anticipatedthat the total annual lifecycle of each roximately $5,000due to initial site preparation (pothole and trip hazard repairs), as well as set up, occasional monitoringand removal of signs and barricades. It is worth noting that approximately$1,500of the total cost per streetis unfunded. The maintenance (pothole and trip repair) is a requirement of legislated minimum maintenance standards and already incorporated in existing operating budgets. However slow streets are being prioritized in anticipation of increased active travel, and repairs arebeing tailored to accommodate shared use of the street.The unfunded portion of the 2020 slow streets program can be accommodated withinexisting budgets, however continuation of the program in 2021 ng budget. Food Trucks There will be no additional charge or licence to food trucks looking to operate in residential zones. All food trucks must have a 2020 City Kitchener Business Licence. The cost of a licence is $275 for a new licence and $185 for arenewal. Capital Expenditures The cycling projectscontained within this reportare primarily fundedby grant funding awarded to the city in 2018, through the Ontario Municipal Commuter Cycling program. The province contributed 80% of project costs, with the city contributing the remaining 20%, for a total of $1,081,363.75towards a variety ofcycling projectsapproved by the province.Approximately $585,000 remains in the OMCC funding allotment. Capital costsfor projects in this report add up to $585,000, based on these estimates: Stirling Avenue bike lanes -$5,000 Franklin Avenue bike lanes -$4,000 Krug Street bike lanes -$6,000 Wilson Avenue Boulevard Multi-use Trail -$300,000 Budd Park trail upgrade $250,000 Upgrades remaining to Duke Ontario and KitchenerMarket secure bike parking -$20,000 The grant agreement for OMCC provides a deadline of December 31, 2020 for all construction, with unspent funds being returned to the province. A request for an extension, due to the pandemic emergency, has not been granted. or through road reconstruction project accounts Annual Operating expenditures Due to limited snow storage space along Stirling Avenuebetween Courtland Avenue and King Street, the painted bike lanes are expected requiresnow loading removalto adhere to minimum 8 - 10 maintenance requirements.The totalincrease in annual on-roadoperating costs for winter maintenance of the proposed bike lanes in this report are estimated at $21,000 annually. Portions of the new on-road cycling facilities on Mill Street between Ottawa Street and Stirling Avenue are expected to requiresnowloadingremoval to adhere to minimum maintenance requirements. The total increase in annual on-road operating costs for winter maintenance of the proposed bike lanes on Mill Street is approximately$10,000 annually. The new multi-use trails on Wilson Avenue,Mill Streetand through Budd Parkwill require year- round off-road maintenance, estimated to cost $24,000annually. All Operating costs will be referred to the 2021 operating budget deliberations. COMMUNITY ENGAGEMENT: INFORM council / committee meeting. CONSULT Some engagement was completed before pandemic emergency measures were in place, though some engagements were cancelled.For clarity, the engagement conducted has been described earlier in the body of the report.Given that typical engagement has not happened due to pandemic physical distancing and limiting of group sizes, staff will engage the community after installation. While this process is not typical it will allow for staff to understand sentiment of affected property owners and report back to council at a later date. This approach only applies to Krug Street and Stirling Avenue between King Street and Courtland Avenue. PREVIOUS CONSIDERATION OF THIS MATTER: DSD-20-071 Business Recovery Patio Program for 2020 DSD-19-235 Complete Streets, October 10, 2019 DTS 10-144 Cycling Master Plan, July 21, 2010 CSD-17-100 Planning Around Rapid Transit Station Areas (PARTS) Rockway, November 15, 2017 ACKNOWLEDGED BY: Justin Readman, General Manager, Development Services 8 - 11 REPORT TO:Council DATE OF MEETING:June 22, 2020 SUBMITTED BY:Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 PREPARED BY:Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 WARD (S) INVOLVED:All DATE OF REPORT:June9, 2020 REPORT NO.:FIN-20-046 SUBJECT:2020Capital Project Deferrals & Closures ___________________________________________________________________________ RECOMMENDATION: Thatspending on the capital projects in the amounts outlined in Appendix A,column D to report FIN-20-46 be deferred until 2021in order to improve the position; and further That the balances in the capital projects outlined in Appendix A, column E to report FIN- 20-46 be closed out to the Tax Stabilization reserve fund in order to provide additional funding to mitigate projected tax-supported operating deficits in 2020 and beyond. BACKGROUND: COVID-19 is a global pandemic that has already had significant impacts on individuals and organizations. The City of Kitchener is not immune to these impacts and has seen the cancellation of programs, closure of facilities, and changes in the way staff work. These 1.Cash Flow The City is projecting to run very low on cash at different points throughout the year, meaning it may need to borrow funds to pay bills when they come due 2.Projected Deficits The City is projecting to fall short of the 2020 budget and will need to draw funds from reserves at the end of the year to balance its books. Cash Flow As noted in a previous report to Council (report DSD-20-067), the City has projectedlower than normalcash balances across all of 2020, with some approaching orbelowits typical comfort level of $20M.The concern is that if cash balances become negative, the City will need to borrow to pay bills as they come due throughout the year. Projected Deficits The most recent variance projection for the City shows a $5.6M deficit for tax supported services, with additional deficits in City enterprises likeBuilding, Golf, Parking, Storm Sewer, and Natural Gas Delivery. If these deficits materialize at the end of the year, reserves (funds saved up in prior years) will need to be used to pay off the deficit. In manycases the appropriate reserves have large enough balances to fund the projected deficits, but it removes *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 9 - 1 the City currently has and puts the City at higher risk of tax/user rate increases in future years, or decreases in service levels. To help alleviate these issues, the City has taken measures to curb spending within the operating budget that covers day-to-day costs. This report recommends deferrals of some 2020 capital report also recommends cancellations of other 2020 tax supported capital projects with the intention of moving these tax supported funds to the Tax Stabilization reserve fund in order to fund any deficit realized in 2020. REPORT: Due tothe financial pressures associated withCOVID-19, staff undertook a review of 2020 capital projects with the goal of deferring or cancelling projects where possible. Many large dollar projects(e.g. full road reconstructions, City Hall Outdoor Spaces)for 2020 were already underwayand were not able to be considered. After careful review, staff were able to find $21M of project deferrals and $1.3M of project closeouts. The projects are detailed in Appendix A to this report and are broken down between large projects (over $200,000) and small projects (under $200,000). In addition to the financial considerations associated with deferring or cancelling some 2020 capital projects, staff also considered the ability to effectively deliver on these projects in 2020 and beyond based on available staffing resources. Given the redeployment of staff to support critical services, the capacity to deliver on capital projects based on original timelines has been impacted. Based on the resources available to deliver projects, divisions assessed whether it made sense to defer projects to 2021, or close out projects and reconsider them against other priority projects in the capital forecast. Even if the projects outlined in appendix A were not identified to be deferred, it is unlikely based on current staff resource constraints that theycould be accomplished this year, further supporting their deferral until 2021. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city's strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: Cash Flow and Project Deferrals By deferring projects, $21M in spending would be put position and easing the 2020 concern about cash flow. It also means that the funding for these financial situation atthat time. The cash flow projection in the graph below (yellow line) shows somewhat low balances of $30M expected in both June and August, with a concerning balance of only $10M expected in December. Deferring capital projects as recommended in this report, regardless of funding 9 - 2 source, would improve the cash flow projection by $21M. In other words, the yellow line would go up by $21M by December. Projected Deficits and Project Cancelations The most recent financial impact report provided to Councilat the beginning of June highlighted that the City is projecting a deficit of $5.6M in 2020 for tax-supported operations. The impact of this projected deficit on applicable stabilization reserve funds is shown below. It is anticipated that without financial support from other levels of government, the tax stabilization reserve will be exceeded based on the current projection. ReservesCurrent BalanceProjected Balance Tax Stabilization Reserve$4,483,898($171,102) Investment Stabilization Reserve$1,766,423$766,423 Cancelled capital projects would normally have their funding closed out to the appropriate capital reserve.Because of the sizeable operating deficit projected for 2020, staff are seeking approval to instead close out the funding to the Tax Stabilization reserve, which would be used to fund the operating deficit at the end of the year. The recommended closeouts of $1.3M would provide sufficient funding to cover the current projected Tax Stabilization reserve shortfall, leaving a balance of $1.1M to addressadditional impacts if the projected deficit increases. Having a positive balance in the Tax Stabilization reserve at the end of the year would also be beneficial as it is expected that there will be additional financial pressures that the City will be facing as part of the 2021 budget process. COMMUNITY ENGAGEMENT: INFORM council / committee meeting. ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services 9 - 3 9 - 4 9 - 5 REPORT TO: Planning and Strategic InitiativesCommittee DATE OF MEETING: June 22, 2020 SUBMITTED BY: Della Ross,InterimDirector of Planning PREPARED BY: Eric Schneider, 519-741-2200 ext. 7843 WARD (S) INVOLVED: Ward4 DATE OF REPORT:April 8, 2020 REPORT NO.: DSD-20-068 SUBJECT: Demolition Control Application DC20/005/F/ES 312 Forest Creek Drive Hallman Construction LTD. RECOMMENTATION: That Demolition Control Application DC20/005/F/ESrequesting permission to demolish a single detached dwellinglocated at 312ForestCreek Drivebe approved. Location Map: 312 Forest Creek Drive BACKGROUND: TheDevelopmentServices Departmenthas received an applicationrequesting the demolition of asingle detached dwelling,municipally addressed as 312Forest Creek Drive.The subject propertyis splitzoned Residential ThreeZone(R-3)and Hazard Land Zone (P-3)in the Zoning By-law85-1andsplit designated Low Rise Residentialand Natural HeritageConservationin the Official Plan.The applicant isproposing to demolishthesingle detached dwellingto allow for future construction of a single detached dwelling. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 10 - 1 REPORT: Staff advise that theowners/applicantof the subject propertiesare proposing to demolish the single detached dwellingto allow forfuturereplacement of a single detached dwelling onthe subject property.The property owners/applicant have indicated that the current dwelling is incompatible with the approved grading for the area and they wishto remove it to sell as a vacant lot. Staffdonot have concerns with the demolition of the residential unitas it is a remnant parcel of land from the Gubler and Tilt Plans of Subdivision that have built up around it. The existing homeis incompatible with the approved grading in the area, which has been raisedsignificantly higher toaccommodatethe surrounding subdivision..Thelandownerdoes not wish to build on the lot themselves anddoes not want to encumber a purchaser with the removal of the dwelling. The lot has legal frontage onto a public road and has access to full services. Since there will be a loss ofa residential unitwithoutimmediate plans to replace it by the current landowner (building permit), Demolition Control Policy. Figure 1:View of the existing single detached dwelling at 312 Forest Creek Drive Heritage Planning: Heritage staff hasno objectionto the proposed demolition. Building Division: TheBuilding Division has no objections to the demolition.Ademolition permit will be required. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 10 - 2 Planning Analysis: Staff advisethat the ownerisproposing to demolish asingle detached dwellingon the subject propertyto allow for future redevelopment of the site.Staff is bringing this application before Council becausethe owner does not intend on redeveloping thelot and would like to sell asa vacant lot.Staff is comfortable that this lot will be developed with another residential unitafter the vacant lot is sold,and therefore will not actually result in the loss of a dwelling unit.Staff have taken all internal agency comments (seeAppendi concerns with the proposed demolition. Figure 2:View of grading change between subdivision and existing dwelling ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supportsthe achievement of the cs strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: No new or additional capital budget requests are expected with this recommendation. COMMUNITY ENGAGEMENT: A neighbourhood circulation was notmadeas part of this application. However, allproperty owners within 30 metres of the subject propertieswill receive notice of the demolition control application for information purposesimmediately followingCouncilapproval. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 10 - 3 REVIEWED BY: DellaRoss, Interim Director of Planning ACKNOWLEDGED BY: Justin Readman -General Manager, Development Services List of Attachments: Existing BuildingsLocationPlan Internal AgencyComments *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 10 - 4 CITY OF 0 KITCHENER m E i t dw u tc v U GUBLER TILT/GUBLER RESIDENCE SUBDIVISION UqwvjE m 0 p q q F 0228-114- Land Development Division 00228-114 MS12.1 10 - 5 CƩƚƒʹ Victoria Grohn <Victoria.Grohn@kitchener.ca> {ĻƓƷʹ Monday, March 30, 2020 9:32 AM ƚʹ Eric Schneider {ǒĬƆĻĭƷʹ RE: Demolition Control- DC20/005/F/ES- 312 Forest Creek Drive Hi Eric, m back to working from home. No heritage concerns. Victoria Victoria Grohn Heritage Planner | Planning Division | City of Kitchener 519-741-2200 ext. 7839 | TTY 1-866-969-9994 |victoria.grohn@kitchener.ca CƩƚƒʹ Eric Schneider <Eric.Schneider@kitchener.ca> {ĻƓƷʹ Tuesday, March 24, 2020 3:49 PM ƚʹ Victoria Grohn <Victoria.Grohn@kitchener.ca> {ǒĬƆĻĭƷʹ Demolition Control- DC20/005/F/ES- 312 Forest Creek Drive Hi Victoria, the applicant is proposing to demolish this home to sell as a vacant lot for redevelopment of another single detached home. Any Heritage concerns? Thanks, Eric Schneider, B.E.S. Planner | Planning Division | City of Kitchener (519)741-2200 ext 7843 | TTY 1-866-969-9994 | eric.schneider@kitchener.ca 10 - 6 BUILDING DIVISION City of Kitchener th 200 King St. West, 5 floor Kitchener, ON N2G 4G7 Date:April 7, 2020 To:Eric Schneider From:Trevor Oakley Cc: Subject:312 FOREST CREEK DR - Demolition Control Application The following is a brief summary of the general conditions of the building. Property Features: Single storey house, approximately 3,000 SF, with basement. Double bay attached garage at basement level, single detached garage as well. Property is serviced with hydro only. No water, storm, sanitary, or gas at this time. There is a septic system in the rear yard (2007 permit) Well head in front yard beside driveway is not yet capped or decommissioned. House Description: Single family dwelling, addition in rear yard (2007 permit) Poured concrete foundation with wood frame construction. Exterior Conditions: Exterior wood/metal siding, soffit, and fascia in good condition. Some areas damaged by minor demolition Roof is in good condition. Flashing and sealing appear intact. Rear ground level deck has been removed. Concrete foundation appears intact with no observed cracks. Some spalled parging. Windows dated 1988, appear double glazed and in good condition. Interior Conditions: Unable to enter building, however, observations of exterior revealed the following: Pipes for oil tank filling observed, may be oil fired furnace Minimum 3 electric air conditioning units on exterior serving various spaces Chimney in middle of house appears intact. Has 2 flues, maybe 2 fireplaces. Overall Observations: The house appears to be about 50 years old and is generally in good condition. The well needs to be decommissioned and the existing septic system will have to be investigated or decommissioned prior to any new development. Overall condition: Good It is understood that the house in the current condition does not meet the needs of the owner. We understand that the owner’s intention is to demolish the existing house and incorporate the lands into the surrounding subdivision. The Building Division has no objections to the demolition of this home. Please note that a demolition permit will be required, please contact 519-741-2433 for more information. Respectfully, Trevor Oakley, CET, CBCO, Municipal Building Official II 1 10 - 7 REPORT TO:Council DATE OF MEETING:June 22, 2020 SUBMITTED BY:Della Ross, Interim Director of Planning, 519-741-2200 ext. 7327 PREPARED BY:Tim Seyler,Planner, 519-741-2200 ext. 7860 WARD(S) INVOLVED:Ward 5 DATE OF REPORT:June 5,2020 REPORT NO.:DSD-20-070 SUBJECT:Follow Up to DSD-20-061 NAMING OF PRIVATE STREETS 30 SADDLEBROOK COURT FREURE PROMONTORY INC RECOMMENDATION: That the City of Kitchener acknowledge that Freure Promontory Incorporatedto name private streets:Pony WayRoper Placeand ShedrowPlacewithin a vacant land condominiumdevelopmentlocated at 30 Saddlebrook Court; andfurther, preparation and registration of the necessary By-law for the naming of Pony Way Roper Placeand ShedrowPlace. Report: On May 11, 2020, Kitchener City Council deferred consideration of the above noted application to the next Council meeting. The purpose of the deferral was to allow further discussion with the owner of the property to change the proposed road name of CutterPlace to a different option, as there were concerns expressed about the name Cutter Place. After a discussion with the applicant the Planning Division received a revised road name of Shedrow Place as well as an updated fire route plan indicating the name change. The Region of Waterloo has also approved the proposed new street name of Shedrow Place. Staff are satisfied that the proposed private street names areappropriate and support the street naming requests. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: through the delivery of core service. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 11 - 1 FINANCIAL IMPLICATIONS: All costs associated with the registration of the reference plan, advertisingof the intent to name the streetsand street signage and/or any agreements deemed necessary by the City Solicitor to implement the street naming are to be entirely borne by the applicant. COMMUNITY ENGAGEMENT: notice of the intention to pass a private street naming by-law would be advertised in The Record. This communication corresponds to the PREVIOUS CONSIDERATIONSREPORT DSD-20-061: FruerePromontory Incorporated is seeking Council approval to name three private streets within the residential development located at 30 Saddlebrook Court (formerly addressed 710 Huron Road). In June 2019, the subject lands received Site Plan Approvalin Principlefor96 townhouseunits on private roadways. Private Street Naming Request The applicant is proposing to name the private streets shown on the plan belowPony Way Roper PlaceandCutter Place. The naming of the private streets will eliminate the need for a complicated Multiple Unit Identification Sign at the entrance to the site. Also, site navigation for emergency services, residents and visitors to the sitewill be improved. The proposal has been circulated to a number of internal departments and no concerns were raised, particularly from Fire and the Region. The dwellingswill be addressed in accordance oved the proposed street names. Staff are satisfied that the proposed private street names areappropriate and support the street naming requests. REVIEWED BY:Della Ross,Interim Director of Planning ACKNOWLEDGED BY: Justin Readman, General Manager (Development Services) Attachments: Appendix AUpdate Fire Route Plan 30 Saddlebrook Court 11 - 2 11 - 3 REPORT TO:Committee of the Whole DATE OF MEETING:2020-06-22 SUBMITTED BY:Ryan Scott,Manager, Procurement, 519-741-2200 ext. 7214 PREPARED BY:Brad Kowaleski,Procurement Specialist519-741-2600 ext. 7063 WARD (S) INVOLVED:N/A DATE OF REPORT: 2020-06-01 REPORT NO.:FIN-20-048 SUBJECT:Sole Source FPO20-119 Geographical Information Systems (GIS) Software __________________________________________________________________________________________ RECOMMENDATION: ThatEsriCanada Limited,Toronto,Ontario, be the sole source provider for Geographical Information Systems (GIS) softwarelicencing at a cost of $540,000, plus H.S.T of $70,200, for a total of $610,200, for a three (3) year term. BACKGROUND: The City uses the Esrisoftware platform for all GIS related work. The software platform consists of GIS desktop software,GIS mobile applications used in the field, and GIS server software which providesunderlying GIS capability to systems such as OnPoint and Cityworks. The software platform offers a number of cloud-based Open Data catalogue, Story Maps, Dashboards and ArcGIS Online that can generate real-time web maps. The Enterprise License Agreement (ELA) is a software licensing model that Esrihas been moving clients to over the past ten years. TheELAmodel simplifies licensing processes and offers full access to all GIS software that Esriprovides. The local municipalities and the Region of Waterloouse Esrisoftware productswhich enables the high level of collaboration that exists between the municipal GISteams.The Region of Waterloo,the City of Cambridgeand the City of Waterloo currently license Esrisoftware through an ELA. REPORT: As per clause 170.8.2 of the Purchasing By-law 2017--Standard Procurement process is only permitted under the following circumstances: c.where there is an absence of competition for technical reasons and the Goods, Services, Construction, or Consulting Services can only be supplied by one particular ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. 12 - 1 As per clause 170.8.3 of the Purchasing By-law 2017-106, it states, All non-standard Procurementprocesses mustbe approved and conducted in accordance with this By-law including the table set out in this section and all applicable procedures. RequirementProcurementProcurementApproval Authority ValueProcess Excluding Taxes Goods, Up to $99,999Non-Competitive or Director of Supply Services, Construction, Limited CompetitionServices Consulting Services Goods, Greater than Non-Competitive or Council Services, Construction,$100,000Limited Competition Consulting Services The recommendation was reviewed by D.Murray, Director Technology Innovation&Services andB.Kowaleski,Procurement Specialist, who concur with the above recommendation. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The the delivery of core service. 12 - 2 FINANCIAL IMPLICATIONS: The net cost for this purchase (A), is fair and reasonable for a purchase of this scope, although the upset limit exceeds the budget allowance (B) provided within the budget. Funding for this purchase is included within the approved capital budget. The estimated deficit (D) will be funded from the GIS General capital account. There are sufficient funds in the account to fund the deficit. FPO20-119 Geographical Information Systems (GIS) Software Estimated Cost for this Proposal FPO20-119 costs, including HST610,200.00 $ Less: HST rebate(60,695.97) Net Cost Being Awarded549,504.03 A Add: Projected Costs- Total Estimated Cost $549,504.03 C Budget for this Proposal 513,229.00 ESRI Agreement Capital Account (2020-2022) Total Budget$513,229.00 B Estimated Surplus/(Deficit) (B -C)(36,275.03)D COMMUNITY ENGAGEMENT: INFORM council / committee meeting. ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department 12 - 3 IF13 - 1 IF13 - 2 IF13 - 3 IF13 - 4 IF13 - 5 IF13 - 6 IF13 - 7 IF13 - 8 IF13 - 9 IF13 - 10 IF13 - 11 IF13 - 12 IF13 - 13 IF13 - 14 IF13 - 15 IF13 - 16 IF13 - 17 Average Short-Term Investment Balance* Investment Report as of December 31, 2019 January to December 2019 Comparison of Short Term Yields IF13 - 18 Operating Fund Accumulated Interest Investment Report as of December 31, 2019 Long Term Investments Cash & Short Term Investments Investment Balances IF13 - 19 REPORT TO:Committee of the Whole DATE OF MEETING:2020-06-22 SUBMITTED BY:Ryan Scott,Manager of Procurement, 519-741-2200 ext. 7214 PREPARED BY:Brad Kowaleski,ProcurementSpecialist, 519-741-2200 ext. 7063 WARD (S) INVOLVED:N/A DATE OF REPORT:2020-03-23 REPORT NO.:FIN-20-044 SUBJECT:Emergency Procurement -Microsoft Enterprise Agreement __________________________________________________________________________________________ RECOMMENDATION: For Information Only BACKGROUND: software licenses on behalf of the organization. Microsoft software is used moston computer systems and licenses are purchased for: Desktop / Laptop and Server Operating Systems Back office server systems supplied by IT such as email and database systems Office productivity software (Word, PowerPoint, Excel, Access, Visio) Cloud based services such as Office365for email, security and collaboration The City plans to use the Microsoft Enterprise Agreementvolume licensing program to purchase this software. The licensing pricing has been negotiated by the Ontario government and purchase agreement terms set by the lead agency and extended to the broader public sector agencies providing the best value to the City. Microsoft Enterprise Agreementthis volume purchasing program is designed for large organizations (500+) with a standard software deployment across the organization. This program locks in the pricing for three years and spreads the cost of the software licensing equally across the three-year- management. The Enterprise Agreement licensing also facilitatesthe transitionof services to online cloud-basedoptions for Office 365 which the City is in the process of deployingin 2020. AllMicrosoft software used at the City is purchased through theEnterprise Agreement. iscontract for a three-yearperiod is $1,500,000. The actual spend will depend on the level of activity throughout the term of the contract. ***This information is available in accessible formats upon request. *** Please call 520-741-2345 or TTY 1-866-969-9994for assistance. IF14 - 1 In the fall of 2019, the Region of Peel issued a Request for Tender for a Microsoft Enterprise Agreement for the Peel Regional Police. The tender was awarded to CDW Canada Corp. with th an effective date of October 29, 2019. Broader public sector organizations can take advantage of the terms and pricing offered within this agreement. As a result, the City engaged in dialogue with CDW Canada Corp., who provided the City with the software list and pricing offered within the agreement. Through a review of the agreement, as well as current costs gathered through historical competitive processes facilitated by the City, staff have assessed that thistender offers the best value for the City. REPORT: A recommendation for award of the Microsoft Enterprise Agreement to CDW Canada Corp. was planned for the March 23rd Council meeting. The previous agreement was set to expire on March 31st. As the COVID-19 emergency unfolded in mid-March, Microsoft offered a 60 day extension to the existing agreement and the renewal was put aside to focus on the needed response to facilitate staff working from home. As we approached the original agreement expiry date, additional details were provided from Microsoft and the reseller on our ability to manage ability to maintain critical technology services through the COVID-19 pandemic. The City relied heavily on our Microsoft investments through this state of emergency and our ability to manage and administer all aspects of the technology was essential. On March 31st it was communicated that there would be no opportunity to bring this forward on April 6th as intended and most likely not in April at all.On April 1st, a decision was made to enact clause 170.9 Emergency Procurement of the Purchasing By-law 2017-106 to prevent disruption to essential City services. As an information only report, this report was not brought forwardon the May 11th Special Council meeting as selected critical reports were still being brought forward. As we await a return to the regular Council meeting schedule, this report is being brought forward before a summer recess. As per clause 170.9.1of the Purchasing By-law 2017-106, it states,Notwithstanding any other provisions of this By-law and provided time does not permit the use of a Standard Procurement process, Goods, Services, Construction and Consulting Services may be purchased on an Emergency basis where they are required as a result of an unforeseensituation or event occurs that is a threat to any of the following: b.the maintenance of essential City services or to prevent the disruption of essential City services; As per clause 170.9.3 of the Purchasing By-law 2017-106, it states the provisions of By-law 93-200 (now 2017- rector IF14 - 2 of Supply Services or a Deputy CAO shall authorize any required purchases. For amounts exceeding $100,000., the Director of Supply Services shall issue an information report to The City proceeded to piggyback on the Region of Peel Tender 2019-677T Microsoft Enterprise Agreement, with CDW Canada Corp., Etobicoke, Ontario, at their proposed unit prices for a three (3) year period, with no options for renewal. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The the delivery of core service. FINANCIAL IMPLICATIONS: The net cost for this tender (A), is fair and reasonable for a purchase of this scope and is within thebudget allowance (B) provided. As this is a three-yearcontract, the budget shown represents amounts for 2020 to 2022. The estimated surplus (E) will be returned to the Tax Capital Reserve account upon completion of the three-year contract. FCS-20-034 Microsoft Enterprise Agreement Estimated Cost for this Work Microsoft Enterprise Agreement costs including HST1,500,000.00 less: HST rebate on tender(149,203.47) Net Cost Being Awarded1,350,796.53 A Projected Costs- Total Estimated Cost for this Work$1,350,796.53 C Budget for this Work TIS Capital Budget (2020-2022)1,398,724.00 Total Budget for this Work$1,398,724.00 B Estimated Surplus/(Deficit)$47,927.47E The above figures represent the known costs for the Enterprise Agreement software purchase. Software will be purchased as needed from these contracts in accordance with the purchasing by-law. These purchases could be related to growth (new PCs or staff) or by specific project requirements and will be funded by various project and divisional budgets as appropriate. IF14 - 3 COMMUNITY ENGAGEMENT: INFORM ith the agenda in advance of the council / committee meeting. ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department IF14 - 4 REPORT TO:Committee of the Whole DATE OF MEETING:2020-06-22 SUBMITTED BY:Ryan Scott,Managerof Procurement,519-741-2200 ext. 7214 PREPARED BY:Ryan Scott, Manager of Procurement,519-741-2200 ext. 7214 WARD (S) INVOLVED:N/A DATE OF REPORT:2020-06-03 REPORT NO.:FIN-20-047 SUBJECT:Summary of Bid Solicitations Approved by the Managerof Procurement(January 1, 2020March31, 2020) __________________________________________________________________________________________ RECOMMENDATION: For Information Only BACKGROUND: In accordance with the Purchasing By-law 2017-106 (Chapter 170 Municipal Code), section City's Director of Supply Services shall prepare a quarterly information only report to Council on Solicitations awarded where the Procurement Value is between $100,000 and $750,000 and the Director of Supply Services approved the award awarded by the Director of Supply Services were within approved budgets, capital projects were specifically identified within the Council approved budge government or granting agencies which require Council approval, and more than one bid was received in response to the bid solicitation. REPORT: Appendix 1 is a listing of the nineteen(19)approved bid solicitations for Co FINANCIAL IMPLICATIONS: All recommendations awarded by the Managerof Procurement, were within approved budgets. ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. IF15 - 1 HST) 873.41470.50 ,, 193298,821.24190 $$$ Exclusive of Award Amount ( ) 020 .00 , 2 1 3 accountsaccounts $450,000 Funded from Funded from March various operating various operating Budget Amount 20 , 20 NN N January 1 Awarded Vendor(s) McCarthy Uniforms Inc., Etobicoke, OMcCarthy Uniforms Inc., Etobicoke, OAquafor Beech Limited, Guelph, O outlet isibility v - avy work i nh .. ork wear clothing, and w termsterms Description is expected to occur in 2021. project. esistant r he retrofit of the existing (BP) sewer at SWMF 61. Listing of Approved Bid Solicitations ( project is for consulting services to lame f tional 1 year the supply and delivery of pass - or the supply and delivery of For wear clothing, and the management of all facets of the program.3 year term with option to renew for 2 additional 1 year Fandthe management of all facets of the program.3 year term with option to renew for 2 addiThis complete the final design for permit, tender preparation, as well as contract administration and inspection. The works include tstructure at SWMF 7 and the relocation of the byThe estimated surplus will remain within the account and will be used for the construction phase of the Construction Appendix 1 Visibility - 150 Navy Work 151 Hi195 Professional --- Bid Solicitation Number & Name P19Wear Clothing ProgramP19and Flame Resistant Work Wear Clothing ProgramP19Services for Permit, Tender Preparation, and Construction Administration for Retrofit Works at SWMFs 7 and 61 IF15 - 2 43,960.00 270,511.49203,272.64$260,108.07 $$$ $323,000.00$650,000.00$265,000.00 Funded from operating account N ON N Tel N- PPE Solutions Inc., Val Caron, Stantec Consulting Ltd, Waterloo, OGEngineering, London, ODavey Tree Expert Co. of Canada, Limited, Ancaster, O , and the firefighter leak surveys s . . ender preparation, as termsterms is expected to occur in 2021. project. his tender provide term with option to renew for 2 e of the year term with option to renew for 2 or the removal of the tree and stumps of the For the supply and delivery of protective equipment management of all facets of the program. 3 yearadditional 1 year This project is for consulting services to complete the design, twell as contract administration and inspection. The works includes removal and replacement of four (4) bridge structures in 3 locations.The estimated surplus will remain within the account and will be used for the construction phasConstructionUnder the Kitchener Utilities maintenance program, tfor all underground mains and attached services including meter sets but does not include surveying gas piping inside buildings.1additional 1 year F352 declining ash trees Firefighter 001 004 Professional 056 Public 205 Ash Tree -- -- P20Bunker GearP20Services for Multiple Pedestrian Bridge ReplacementsT19Building Natural Gas Leak SurveysT19and Stump Removal Services IF15 - 3 183,017.00121,775.00137,781.00158,431.00100,926.00129,814.50228,150.00 $$$$$$$ .00 926 $250,000.00$175,000.00$150,000.00$175,000.00$100,$200,000.00$325,000.00 N N - -- Sekum Apex - - nstruction, 1320376 Ontario Ltd. o/a GENPRO, Burlington, OMJK Construction Inc., Mississauga,ONBothwellAccurate Co. Inc., Mississauga, ONAtlasRoofing Inc., Etobicoke, OBothwellAccurate Co. Inc., Mississauga, ONEkumIncorporated o/a Brantco CoCambridge, ONConestogo Mechanical ouse roof h painting the - way parking, - oach . c flow issues allowing oom rthe heat pumps for . rust application was submitted tation of way out exit point, re ultipurpose - as well as associated roof work as well as associated roof work m ouse h eritage h or the replacement of the or improvements to an existing parking oach For the supply and installation of new skylights related to support and connection.For the supply and installation of new skylights related to support and connection.For the replacement of the flat roof section over the For the replacement of the entire roof.Fand the application of a coating to the classroom roof.Aand approved for roof replacement of the cFfacility servicing Woodside Park artificial turf sports fields. Improvements include creating a new oneparking lot to angled onepedestrian paving and a new exit gate.This tender will address better utiliz ent Skylight 218 Breithaupt 219 Forest 222 Victoria Hills 224 Kitchener 225 Homer 006 Woodside 010 Kitchener ------- T19Centre ReplacementT19Heights Pool Skylight ReplacemT19Community Centre Roof ReplacementT19Boathouse Roof ReplacementT19Watson House and Gallery Roof ReplacementT20Park Parking LotImprovementsT20Op erations Facility IF15 - 4 250.00 , 50,278.009532,800.00 $$104,560.00$ $ accounts $109,000.00 Funded from Funded from Funded from various operating operating accountoperating account ON ON N N N Inc., Kitchener, 1077860 Ontario Inc., Ariss, OGenerator Services Inc., West Lorne, OSAFFA Engineering Inc., Markham, Allturf Ltd, Innisfil, O ity C at various City floor heating in the very of sports field - throughout the facility. s termsterms term with option to renew for 2 term with option to renew for 2 yearyear or the provision of customized chain link or inspection, maintenance and repair of all acilities and pumping stations. This contract heating and cooling and enhance staff working environmentIn addition we will be able to use the electric heat pumps instead of using gas fired boilers to supply heat to the inAnnex portion of the building. This will reduce our greenhouse gasemissions.Fcage enclosures for the protection of natural gas meter assemblies.1additional 1 year Femergency generator systemsfis for monthly service and maintenance as required by the Ontario Fire Code and CSA Standards.1additional 1 year This tender supports internal reconstruction works, the road rehabilitation program and the sidewalk infill program across all wards.For the supply and delifertilizer. 016 Cage 023 Emergency 028 040 Sports Field ---- (KOF) Hydronics OptimizationT20Enclosures for Natural Gas Meter SetsT20Generator Service and MaintenanceT20Construction Material TestingT20Fertilizer IF15 - 5 219,800.00 $ $240,000.00 N TEAM Truck Centres, London, O ater w ab and c luminum a onventional c . xle z terms ear r omplete with an ingle c s This unit will replace 996415 in INS year term with option to renew for 2 hassis ank. 1additional 1 year For the supply and delivery of One (1) G.V.W. ctParks and Cemeteries 061 One (1) - T20G.V.W. Single RearAxle ConventionalCab and ChassisComplete with anAluminum WaterTank IF15 - 6 REPORT TO:Committee of the Whole DATE OF MEETING:2020-06-22 SUBMITTED BY:Ryan Scott, Manager of Procurement,519-741-2200 ext. 7214 PREPARED BY:Ryan Scott, Manager of Procurement, 519-741-2200 ext. 7214 WARD (S) INVOLVED:Ward10 DATE OF REPORT:2020-06-03 REPORT NO.:FIN-20-049 SUBJECT:Summary of Tenders Approved by the Chief Administrative Officer Road Reconstruction with Council Approved Sidewalk Infill __________________________________________________________________________________________ RECOMMENDATION: For Information Only BACKGROUND: In accordance with Staff Report INS-15-051where it was resolved that: he Chief Administrative Officer be delegated authority to approve tenders for road reconstruction projects with Council-approved sidewalk infill, provided the total costs are within the approved budgets contained in the relevant departmental budgets and that a report This report fulfills the requirement of the Council resolution. REPORT: The following recommendationsfor award werewithin budget and approved: T20-049 Edwin Street (Louisa Street to Blucher Boulevard) Road Reconstruction Administrative awards allow for an efficient and timely procurement process. Appendix 1 provides the details of the tender awards made by the Chief Administrative Officer since the previous Council meeting. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: the delivery of core service. ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. IF16 - 1 FINANCIAL IMPLICATIONS: As set out in Appendix 1 COMMUNITY ENGAGEMENT: INFORM council / committee meeting. PREVIOUS CONSIDERATION OF THIS MATTER: INS-15-051 Sidewalk Infill Policy DSD-19-1402020 Sidewalk Infill through Road Reconstruction June 17, 2019, Community and Infrastructure Services Committee ACKNOWLEDGED BY: Jonathan Lautenbach, Chief FinancialOfficer, Financial Services Department IF16 - 2 is: 00 . stimated 000 , budget for all e urplus Budget 327 , otal 2 : $ 3,832.13 The total phases of this project isThe tproject s$ Price HST) 122,846.96 (Including Applicable , Award 2 $ Ltd Ltd ed . CAO Tender Awards List of Bidders (Successful Bidder Indicated in Bold) Appendix 1 Terracon Underground Ltd J.Weber Contracting LimitNetwork Sewer and WatermainSierra Infrastructure IncRegional Sewer and WatermainNabolsy Contracting Inc. Tender Number & Name 049 Edwin Street (Louisa - T20Street to Blucher Boulevard) Road Reconstruction IF16 - 3