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HomeMy WebLinkAbout2013-05-27 FINANCE AND CORPORATE SERVICES COMMITTEE MAY 27, 2013 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 9:05 a.m. Present: Councillor S. Davey - Chair Mayor C. Zehr and Councillors J. Gazzola, D. Glenn-Graham, B. Ioannidis, Z. Janecki, K. Galloway-Sealock, B. Vrbanovic, F. Etherington and P. Singh. Staff: J. Willmer, Chief Administrative Officer D. Chapman, Deputy CAO, Finance & Corporate Services P. Houston, Deputy CAO, Infrastructure Services M. May, Deputy CAO, Community Services R. Regier, Executive Director, Economic Development C. Collins, Acting Director, Corporate Communications & Customer Services W. Malcolm, Director of Utilities L. Baillargeon, Manager, Asset Optimization J. Gruenbauer, Manager, Regulatory Affairs & Supply J. MacDonald, Economic Development Technical Analyst C. Bluhm, Manager, Downtown Community Development J. Billett, Committee Administrator 1. report CAO-13-018, dated May 13, 2013, regarding a Downtown Financial Incentive Review and proposed public consultation. On motion by Councillor F. Etherington - it was resolved: Discussion report CAO-13-018; and further, That staff be directed to proceed with public consultation as outlined in report CAO-13- 018. 2. The Committee considered Finance and Corporate Services Department report FCS-13-088, dated May 17, 2013, regarding a request for a license fee reduction for the Heart and Hand Festival at the Joseph Schneider Haus. On motion by Councillor F. Etherington - it was resolved: That the licence fee for the Heart and Hand Festival on September 21, 2013 taking place at the Joseph Schneider Haus be reduced to $49.60. 3. -13-019, dated May 21, 2013, regarding an impact analysis of the Economic Development Investment Fund (EDIF). Mr. R. Regier advised that staff have conducted an analysis of EDIF on an annual basis over the past 6 years, measuring the impact of the program against certain core indicators. He pointed out that this is the last year of the 10 year implementation program, noting that when established in 2004, it was then understood that it was going to be a long term impact from investments and the City is now seeing profound changes from those investments. Ms. J. MacDonald presented details of the economic impact analysis, providing historical background and results of EDIF implementation on assessed values, employment opportunities, FINANCE AND CORPORATE SERVICES COMMITTEE MAY 27, 2013 - 65 - CITY OF KITCHENER 3. environmental benefits, perception of the downtown and investor confidence over the period of 2004-2012. It was noted that the City is attracting national and international media attention, gaining a positive reputation for having an innovative investment community for entrepreneurs and investors. Ms. MacDonald added that the economic impact analysis report was given to Wilfrid Laurier University for academic review to provide input on how the City can better assess the impact of EDIF. One of the principles coming out of that review was to try to take a broader approach by looking at the impact to the entire community, and not just the downtown core where the bulk of investments have been made. Mr. Harald Drewitz, resident, suggested that the analysis report should capture return on investment data, notwithstanding some benefits will not be realized into 2020. Mr. Drewitz raised concerns with the State of the City Address, in which $750M construction value of building permits in the downtown area is connected to EDIF, which he stated he could not visualize. He requested that he be provided with a list of at least 90% of building construction included in the valuation. He stated that assessment valuations should be used as a return on investment factor for purposes of the report, suggesting a table of increased tax revenues realized and estimated be included. Mr. Drewitz further suggested that at the conclusion of the 10 year implementation period a combination of academic and business consultants be involved in preparation of the next economic impact analysis report. Mr. R. Regier responded that while staff agree on many points raised by the delegation, there is challenge to quantifying data subjectively in that it is lagging significantly, noting that tax assessment data for developments currently underway is not yet available. He stated that it will take some time to identify the full impact of EDIF but noted that staff is in full agreement with conducting an external review and it has been discussed with the senior leadership team that at conclusion of the program the City will in the next year seek an external consultant to undertake review of the fund to that point. In reference to the challenges of quantifying data, Councillor B. Vrbanovic requested confirmation that a vast majority of projects that are in the pipeline are not yet included, being such projects as 1 Victoria Street, Arrow Lofts, Centre Block and LRT Hub. Mr. Regier concurred, adding that the Breithaupt Block is also not included as yet and based on the projects noted the City will see significant growth going forward equating to in the $100s of thousands to low $1 to 2M, including job growth and other economic spin-offs. Councillor J. Gazzola referred to Table 2 of the analysis report, questioning if it was premature to include $90M in partner allocations for the City Centre block. Mr. Regier advised that the City has good comparative information and though an educated guess, he considered the rough estimate robust. He added that full development is anticipated over the next 4 to 5 years and therefore, the full tax impact of the assessed value will not be known for another 5 years. Councillor Gazzola requested clarification of the $46M attributed to the Communitech Hub and Mr. Regier advised that Communitech has released an economic impact report for the Hub which he would circulate to Council. Councillor Gazzola questioned where the $1.2M for the Victoria Park improvements and $4.4M in partnership funds came from. Mr. Regier advised that the City was successful in leveraging Superbuild Grant Funds from the Federal Infrastructure Stimulus Program for the Victoria Park entrance feature and the Federal Government contributed similar funding of about $1.4M toward the King Street Streetscape improvements, with the Province contributing about $3M. Councillor Gazzola questioned if the $32M in partnership funds for the Kitchener Public Library (KPL) expansion is misleading in that, he suggested it came from ratepayers. Mr. Regier advised that a substantial portion of the additional funding is related to the parking garage to which the Province invested $7M and $5.9M came from the Region of Waterloo in a cost sharing arrangement. He pointed out that the garage was essential to the redevelopment of the library and without, the project could not have gone forward. Councillor Gazzola requested clarification that attempts had been made to develop the Tannery prior to EDIF, suggesting that it may have been only a matter of time before something took place regardless of EDIF. Mr. Regier advised that he became involved in discussions with the owners of the Tannery on his employment with the City in 2005 when they were considering sale FINANCE AND CORPORATE SERVICES COMMITTEE MAY 27, 2013 - 66 - CITY OF KITCHENER 3. of the property. It was his understanding that they had no intention of developing the property on their own and it was only when Cadan Inc. approached them with an offer to purchase that potential redevelopment was put on the table. He noted that Cadan was responding directly to -urbanization and development of a knowledge/education cluster in that area. Councillor Gazzola questioned the total cost to borrow EDIF funds. Mr. Regier advised that he did not have cost of debt on EDIF at this time but same is reviewed annually as part of the budget deliberations. Mr. D. Chapman subsequently advised that the interest forecast on EDIF debt over the 10 years and servicing period beyond is approximately $34M which is lower than forecast due to record low interest rates that this Region has ever seen its history. Councillor Gazzola questioned the impact of EDIF on the average ratepayer. Mr. Regier commented that there has been a fundamental transfer of the education and high tech sectors, noting that the City has achieved a completely new identity, as evidenced through references recognized as one of the fastest growing in National economies and there is a new source of venture capital coming from the U.S.A. He added that as a result of the new start-up environment there is tremendous employment opportunity for youth of all backgrounds. He stated that as a whole the fund has been profound in changing and advancing the C as a high tech, education / knowledge cluster and has positioned the City well to achieve important for the life of the community as a whole. Councillor Z. Janecki requested clarification of reference to the industrial development impact on Shirley Avenue, as the area is outside of what he understood downtown boundaries to be. Mr. Regier advised that EDIF is not strictly a downtown project but rather was designed to achieve a number of objectives as outlined in the presentation made earlier. He stated that the City made investments in the Shirley Avenue area from which it has benefited from private sector investments. Councillor Janecki requested clarification as to how EDIF influenced local School Boards. Mr. Regier advised that one of the initial projects under EDIF was development of the Downtown Community Centre to which the City partnered with the Waterloo Catholic District School Board in moving requested clarification of City-owned employment lands within the Huron Business Park. Mr. Regier advised that the City owns a remnant parcel off of Strasburg Road (former Maple Leaf lands), acquired approximately 10 years ago and is about 37 acres in size. He noted that the lands are slated for redevelopment as an industrial subdivision in the near future. Councillor Janecki referred to commercial vacancy lease rates raising concerns they have not increased much over the past 10 years. Mr. Regier advised that office leasing rates have appreciated somewhat within the downtown; however, this has been modulated by a highly competitive suburban office market. Councillor P. Singh referred to City-owned land assets, questioning the benefit to ratepayers. Downtown Action Plan consideration is being given as to how to bring those parcels to market. The proceeds of disposition of the lands will have direct benefit to the community. Councillor Singh questioned if smaller construction projects associated to larger projects completed with EDIF funding would have happened without. Mr. Regier advised that one of the best examples of this is 170 King Street which was a building under-utilized that now has full occupancy and which can be attributed directly back to the Communitech Hub. Councillor Singh questioned that given positive media attention, if this has brought opportunities that the City would not have had access to otherwise. Mr. Regier advised that entrepreneurial start-ups primarily go to California to receive coaching; however, recent successfully incubate new and emerging companies which has had direct benefit to this Region in growing high tech companies. Councillor F. Etherington raised concerns of continual perception of an unsafe environment in the downtown, noting that panhandling remains an issue. He questioned how EDIF is being used to address this issue and in particular, assist in outreach and/or street programs. Mr. Regier advised that the City has seen significant improvement in downtown perception since EDIF, resulting from a variety of approaches including full core press by all downtown FINANCE AND CORPORATE SERVICES COMMITTEE MAY 27, 2013 - 67 - CITY OF KITCHENER 3. stakeholders and investments made in adding downtown vitality, residential redevelopment and special events. All have put more people on the street which helps to make a more secure and safe environment. He added that the King Street improvement project added improved lighting to downtown streets and suggested that the City will see concerns about safety perceptions decrease now that more will be living / working in the downtown. Mayor C. Zehr spoke to comments made by the delegation, advising that the dollars spoken of in the State of the City Address referenced investment leveraging dollars, not returns on investment. He stated that servicing costs of EDIF, being debentured over a period of 15 years, were known at the outset and that benefits of the fund would be achieved long term. Mayor Zehr challenged the notion that certain projects, like the Tannery, would have happened without EDIF, commenting that Cadan Inc. had come forward only when they started to see what was would not have happened. Mayor C. Zehr left the meeting at this time. Councillor D. Glenn-Graham questioned if EDIF has helped in any way to create an environment programs, known as the Golden Triangle Angel Network, that undertake monthly exercises to flush out new start-ups, which are hosted at Kitchener City Hall. He pointed out that organizers of the group have said all companies they are working with want to be in the downtown which is good validation of A motion by Councillor B. Vrbanovic was brought forward to provide that a report be completed with help of appropriate professionals if necessary to outline direct and indirect benefits of the 10 year EDIF program to the community with said report to come forward for consideration in 2014. Councillor P. Singh proposed an amendment to provide that an additional report be prepared outlining all City-owned land assets and overview of the inventory. Subsequently, Councillor Singh withdrew his proposed amendment based on a previous report of similar nature being recirculated to Council. On motion by Councillor B. Vrbanovic - it was resolved: That staff be directed to prepare a complete report, with the support of appropriate professionals if necessary, outlining the direct and indirect benefits of the 10 year Economic Development Investment Fund (EDIF) program to our community from both completed and confirmed projects, with said report to come forward to the Finance and Corporate Services Committee for consideration in 2014. 4. -13-017, dated May 17, 2013, regarding results of a study of the current economic development framework and governance structures, and options for implementing a new Waterloo Region Economic Development Strategy. Mr. J. Willmer advised that the Region of Waterloo and all 7 area municipalities jointly commissioned a study to look at economic development issues in the Region. The study was conducted by Malone Given Parsons Ltd. (MGP) to address key issues concerning the current approach to economic development and what should be done to ensure future availability of an adequate supply of employment lands. The purpose of the report this date is to present recommendations coming out of the study, to which all 8 CAOs have agreed upon. Mr. Willmer advised that the study report and proposed recommendations is being presented to all 8 municipal Councils and if approved, an incremental approach will be taken to implementation. He added that Recommendations 3, 4 and 5 will require additional work that will be reported back on at a later date. FINANCE AND CORPORATE SERVICES COMMITTEE MAY 27, 2013 - 68 - CITY OF KITCHENER 4. Technology Triangle both in the short and long term. Mr. J. Willmer advised that either CTTs mandate will grow beyond their current focus in foreign markets or, a newly created economic development corporation could bring CTT into its fold and include the foreign market aspect in what it does. Councillor Vrbanovic commented that services elevated to the Regional level have typically resulted in local municipalities losing ability to effectively influence decisions made concerning such services. He questioned how it will be ensured that economic development matters do not become totally decided at the Regional level and the City lose control over decisions that may have local impact. Mr. Willmer advised that the proposed Office of Economic Development at the Region is intended to oversee development of an economic development strategy; whereas, the proposed Waterloo Region Economic Development Corporation (WREDC) will operate similar to the CTT as a separate body to represent all economic development stakeholders, one of which will be the City of Kitchener. He added that it will not be governed by the Region itself. Councillor Vrbanovic questioned if a mechanism will be in place for the City to take back responsibility if desired. Mr. Willmer responded that would be the case, noting that CTT is a special Corporation now in existence that has been successful and is now being looked at differently in terms of future direction. Councillor Vrbanovic questioned the timeframe being considered for creation of the WREDC and Special Purpose Corporation. Mr. Willmer advised that if the recommendations are approved by area municipalities, he would anticipate within the next year Councils will see additional information coming forward on these matters. Councillor B. Ioannidis questioned how the interests of the City will be protected, asking if members of Council will be on a Board of Directors. Mr. Willmer advised that it is too early to comment on governance of the proposed Corporations, noting that at this time approval is being sought to allow work to continue on development of such details which will come back to Councils for consideration. Councillor K. Galloway-Sealock questioned the staff resources used to date and whether this that staff time involved Mr. Regier and himself, together with the 7 other CAOs in the Region. Going forward he suggested that there would be a combination of Regional and City staff, as well as, consultant services, with the work to be relatively similar in scope to the past year. Mr. Regier advised that the initiative was not specified in the workplan as advancement of the project is contingent on approval by all area municipalities. He added however, that it had been contemplated in the work plan he has been working on over the past several years and to date the work has not been overly onerous. Councillor Galloway-Sealock questioned by what authority the study was commissioned and if the Region currently has an Economic Development Department. Mr. Willmer advised that it was decided at the CAO level and the Region does not currently have an Economic Development Department. Councillor Galloway- Sealock questioned what local municipal responsibility will be versus the Regional office. Mr. Willmer advised that the Regional office will develop policy / strategies on a Region-wide basis, including compiling a database for analytical purposes on a Region-wide scale. Councillor J. Gazzola commented that he would have expected the CTT to have Region-wide data and questioned what this initiative is actually to accomplish. Mr. Willmer stated that there is misconception of CTTs role, noting that their main focus is in directly attracting foreign markets rather than data collection. He added that municipalities do data collection on their own but not much exists and the initiative is thought to be a more efficient way of doing so. Councillor Gazzola raised questions concerning staffing at the Region and local levels. Mr. Willmer stated that it is too early to estimate those numbers and would be part of the report back on detailed implementation. He added that it will depend on the scope of services and activities found to logically be done at the Region versus municipal level and there is a range of possibilities. He stated that he could not estimate at this time in terms of whether there would be a hard scale shift to the Region or minimal change with municipal operations staying in tact. Councillor Gazzola questioned how approval can be given in principle without such information. Mr. Willmer stated that the MGP report is the initial investigation which identified gaps and where things could be done better, and at this point staff believes they are ready to have all Councils approve the initiative, in principle, either as an expanded CTT or new function that would enfold CTT, notwithstanding more work is required. Councillor Gazzola questioned the amount spent to FINANCE AND CORPORATE SERVICES COMMITTEE MAY 27, 2013 - 69 - CITY OF KITCHENER 4. date on staff resources and/or consultant fees. Mr. Willmer advised that approximately $20,000 was expended for consultant fees and approximately the same on staff resources. He added that at this time costs going forward have not been estimated but did not anticipate in the next year that they would be any more than what he is authorized to approve under the City Purchasing By-law. Councillor Gazzola questioned why the City would be involved with the Region and City of Cambridge in respect to development lands to the east. Mr. Willmer stated that 10 to 15 years ago it was known future industrial land development opportunities will be outside Kitchener and because the City is one economic community that will benefit from industrial land growth it is in its best interest to ensure there is a supply of industrial land so that when CTT brings in investors there is options available to them. He noted that the Region has work in progress to bring these lands on stream and the City of Cambridge has had success at developing business parks; however, the Township has not. He suggested that it will require all 3 municipalities to achieve success and it is important for the whole of the Region to support them to ensure there is a supply of industrial lands available. Councillor D. Glenn-Graham requested that when the next report comes back staff take into consideration cost of the new bureaucracy, measures of success, and timeframe for an evaluation to be brought back on the initiative. Councillor Z. Janecki questioned how funding would be shared between municipalities. Mr. Willmer advised that the Regional Economic Development Office would be funded by the Region and the WREDC would be proportionate among all stakeholders, of which he anticipated a municipality did not support the initiative. Mr. Willmer advised that the impact of same will be determined at time that would become known and pointed out that all 8 municipalities stand to benefit from the development of industrial lands and a Region-wide economic development strategy which is considered critical for this Region. Councillor P. Singh requested clarification that the City would be buying into a Regional corporation where development of employment lands will be outside the municipal boundary. Mr. Willmer drew distinction between recommendations 3 and 5, noting that No. 5 relates to land development and all that is recommended is further investigation. He added that it may not be needed at all if Nos. 4 and 6 move well. No.3 talks about the provision of economic services outside of land development by either growing CTTs mandate or establishing a corporation that would bring CTT into the fold. Councillor Singh requested confirmation that the City is not tying itself to any commitment at this time and Mr. Willmer concurred, stating that it is intentional wherein staff is bringing recommendations they believe are reasonable and logical to which all municipalities can agree on, with more details to follow. Councillor Singh agreed that any further reports should address the immediate and/or long term costs and benefits beyond employment opportunities in the Region. Councillor F. Etherington questioned that had such a Corporation been in place at time of the Maple Leaf plant closure, if it could have prevented same. Mr. Willmer advised that while it may have been of some use he could not say for certain if it would have had a materially different outcome. On motion by Councillor B. Vrbanovic, the staff recommendation contained in report CAO-13- 017 was brought forward for consideration to accept the recommendations advanced by regional CAOs, stemming from the Waterloo Region Economic Development Study: Assessment of Economic Development Services and the Provision of Employment Lands. At the request of Councillor J. Gazzola, clause 3 of the motion, dealing with approval in principle to create a Waterloo Region Economic Development Corporation, was voted on separately by a Carried recorded vote and , with Councillors D. Glenn-Graham, B. Ioannidis, K. Galloway- Sealock, S. Davey, B. Vrbanovic and P. Singh voting in favour; and Councillors J. Gazzola, Z. Janecki and F. Etherington voting in opposition. Mayor C. Zehr and Councillor Y. Fernandes were not present and accordingly, did not vote. FINANCE AND CORPORATE SERVICES COMMITTEE MAY 27, 2013 - 70 - CITY OF KITCHENER 4. On motion by Councillor B. Vrbanovic - it was resolved: Waterloo Region Economic Development Study: Assessment of Economic That the Development Services and the Provision of Employment Lands, prepared by Malone Given Parsons Ltd. and dated April 2013, be received; and, That the creation of an Office of Economic Development at the Region of Waterloo, pursuant to the parameters outlined in the memo from the CAOs dated April 25, 2013, and attached to Office report CAO-13-017, be supported; and, That the creation of a Waterloo Region Economic Development Corporation (WREDC) be approved in principle, subject to the development and approval, by each municipal Council, of a detailed implementation plan; and, That the pursuit of changes to the Municipal Act which would allow the Region to participate in strategic employment land development be approved in principle, subject to the development and appropriate consideration of a more detailed report to each municipal Council about how this could be accomplished; and, That the creation of a Special Purpose Corporation to develop strategic employment lands in Waterloo Region be further investigated; and further, That the Region be encouraged to work together with the City of Cambridge and East Side property owners to develop a plan to expedite the development of the East Side Lands. INS-13-022 - NATURAL GAS RATES 5. The Committee considered Infrastructure Services Department report INS-13-022, dated May 17, 2013, regarding natural gas rates. - $30 expressing the view that this would achieve annual savings of $1 to $2M per year for the City and that he intended to pursue support for this by advocating for same through use of social media. Mr. H. Drewitz, resident, raised similar concerns regarding higher costs to Kitchener customers and presented illustration of cost comparisons using the new price points between Kitchener and Waterloo that show a higher percentage of costs for Kitchener customers. He questioned why when gas prices have continually declined since 2009 that Kitchener customers are still paying high rates and suggested that gas profits should not go back into the Tax Stabilization Reserve Fund but rather should either be credited to Kitchener customers or increases in rates postponed. Ms. L. Baillargeon advised that in October 2012 staff presented a proposal for rate redesign which would reduce revenue generated from transportation costs, while increasing the variable delivery component to preserve overall utility revenues and full recovery of costs of service. She advised that under the proposed new rates, the supply rate is to decrease from 17.5 c/m3 to 16.5 c/m3; the transportation rate is to decrease from 6.182 c/m3 to 4.0 c/m3; and the variable delivery rate is to increase from 4.5172 c/m3 to 7.6992 c/m3. Overall, Ms. Baillargeon advised customers. customer preference for stability in rates, and is a combination of spot (short term) and fixed pricing for gas supply. The approach also ensures program contingency reserves for the municipal Enterprise is met. He pointed out that price management differs for Union Gas who solely uses spot pricing which does not provide stability in rates. He noted that Union Gas has FINANCE AND CORPORATE SERVICES COMMITTEE MAY 27, 2013 - 71 - CITY OF KITCHENER INS-13-022 - NATURAL GAS RATES 5. been ordered by the Ontario Energy Board to manage in this way, the order of which came just prior to the global financial crisis and commodities like natural gas bottomed out, which benefited Union Gas customers. Mr. Gruenbauer advised that notwithstanding the Utility uses a fixed pricing method that lags behind market pricing both when gas prices increase or decrease, the Utility has achieved approximately $30M in savings since 2008, equating to approximately $300 in annual savings to the average customer since that time. Mr. Gruenbauer noted that stable rates are popular when gas prices are rising but less so when they are in decline, where in the latter instance customers either misunderstand or choose to ignore the trade-off between stable and variable rates. He noted that the gap in rates between Kitchener Utilities and Union Gas st has gradually closed over the past several years and the proposed rate changes for July 1 will assist in further closing that gap. Councillor J. Gazzola questioned if it is possible to purchase gas supply from Union Gas, as has been done in the past. Mr. Gruenbauer suggested that in theory it may be possible but would take ti price management practices to that of Union Gas. Councillor Gazzola inquired what portion of gas supply is purchased at fixed pricing versus spot pricing. Mr. Gruenbauer advised that for calendar 2013 approximately 72% is fixed, adding that contracts are firm at an approximate value of $50M spread out over 4 years. Councillor Gazzola questioned if there is a set percentage staff would like to see each year in respect to fixed pricing. Mr. Gruenbauer advised that guidelines govern foward periods wherein the percentage is fixed for a certain amount and is not arbitrary, but rather based on the guidelines and provides recommendations as to how much the City may want to hedge for future years in order to protect the gas supply rate and stability of same for its customers. Councillor Gazzola questioned how transportation costs will change in future. Mr. Gruenbauer advised changes will be made similar to the supply program where rates are set based on forecast costs of transportation and be recovered with no profit or loss. He added that he anticipates the Utility will pay more attention to the expected costs of transportation so as to ensure there is no rate shock. Councillor Gazzola questioned how transportation profit / loss is to be measured and addressed. Mr. D. Chapman advised that staff would look to recover a surplus and/or deficit in the following period and any deficit would be addressed through use of the stabilization reserve. Councillor Gazzola asked that staff consider the feasibility of converting the Gas Works to a st fiscal rather than calendar year reporting, given rates are set July 1 and it would better assist at time of budget deliberations. He further asked how the $30M in savings was derived. Mr. Gruenbauer advised that this equates to a decrease in actual gas supply costs between 2008 and 2012. dealing with outside marketers. Ms. Baillargeon advised that the City has not specifically discouraged same, noting an obligation to provide choice of which Kitchener Utilities is the default, or customers can chose from any one of approximately 50 to 80 gas marketers. She stated that the City has certain rules that must be followed but does not discourage anyone from making a choice. Councillor Gazzola questioned if there would be any concern if all went to an outside marketer and Ms. Baillargeon advised that it would not be of particular concern as it makes no difference to profit or loss but may present challenges in having to manage the supply component differently. Councillor D. Glenn- Ms. Baillargeon advised that a survey was conducted in March 2012 with 79% of respondents in favour of maintaining stability in rates. Mr. Gruenbauer added that there were approximately 250 respondents to the survey. Councillor Glenn-Graham asked that staff provide Council with the survey questions. On motion by Councillor J. Gazzola - it was resolved: That the supply component of the natural gas rates be decreased to 16.5 cents per cubic meter from 17.5 cents per cubic meter for system gas customers of the City of Kitchener effective July 1, 2013; and, FINANCE AND CORPORATE SERVICES COMMITTEE MAY 27, 2013 - 72 - CITY OF KITCHENER INS-13-022 - NATURAL GAS RATES 5. That the transportation component of the natural gas rate no longer be based on TCPL tolls as approved by the NEB and instead reflect the average forecast cost of transportation and be decreased to 4.0 cents per cubic meter from 6.182 cents per cubic meter effective July 1, 2013 to phase-in the new rate-setting approach; and further, That the delivery components of the natural gas rates no longer be based on Union Gas base rates as approved by the OEB and instead reflect a modified cost-of-service approach to fully recover all utility costs, including earnings and a fixed dividend to the City, with changes as proposed in Infrastructure Services Department report INS-13- 022 - Appendix A for all Kitchener delivery customers effective July 1, 2013 to phase-in the new rate-setting approach. FCS-13-061 - PERFORMANCE INDICATORS UPDATE 6. Due to time constraints it was agreed to refer Finance and Corporate Services Department report FCS-13-061 (Performance Indicators Update) to the June 17, 2013 Finance and Corporate Services Committee meeting. FCS-13-055 - 2012 DEVELOPMENT CHARGE RESERVE FUND 7. The Committee received for information Finance and Corporate Services Department report FCS-13-055, dated April 8, 2013, regarding the annual statement of the 2012 Development Charge Reserve Fund. ADJOURNMENT 8. On motion, this meeting adjourned at 12:35 p.m. J. Billett, AMCT Committee Administrator