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HomeMy WebLinkAboutFCS-14-009 - 2014 Final Budget Day KI Staff Report Finance an,d Corporate Services Department www kitchener ra REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: January 30, 2014 SUBMITTED BY: Dan Chapman, Deputy CAO 519-741-2200 x 7347 PREPARED BY: Ryan Hagey, Director of Financial Planning 519-741-2200 x 7353 WARD(S) INVOLVED: All DATE OF REPORT: January 15, 2014 REPORT NO.: FCS-14-009 SUBJECT: 2014 Final Budget Day RECOMMENDATION: For discussion. BACKGROUND: In August, Council set direction for the budget after considering report FCS-13-120 (2014 Budget Process). Since then, Council has received the following reports and presentations regarding the 2014 budget: • FCS-13-151 (2014 Budget—Strategic Initiatives and Alternative Revenues) • FCS-13-160 (2014 Comprehensive Fee Review) • FCS-13-156 (2014 Capital Forecast) • FCS-13-179 (2014 Operating Budget) The final budget day material supplements the information from the reports listed above. The main purpose is to provide follow up information requested by Council. REPORT: Tax Supported Operatin_a Budget The starting net tax levy increase for 2014 is 1.17%, but Council has a number of options that could change this rate. The options available to Council were all discussed during the operating budget presentation and include: • Alternative revenue proposals • Additional assessment growth • Strategic Initiative proposals • Chronic deficits F - 1 KI Staff Report Finance an,d Corporate Services Department www1itchener ra The potential impact of each of these options is summarized in the chart below. Tax Increase Summary Starting Net Levy Increase 1.17% Alternative Revenue Options -0.15% Revised Net Levy Increase 1.02%to 1.17% Additional Assessment Growth -0.30% Strategic Initiatives 0.47% Chronic Deficits 0.39% Potential Adjustments 0% Enterprise Operating Budgets All enterprise statements are relatively unchanged from the statements Council reviewed in December with the exception of Building. Projected revenues in 2013 for the Building enterprise are down approximately $400,000 from the projection provided on Operating Budget day. This is due to a delay in issuing permits for a known project at the end of 2013, as well as lower than expected permit issuance towards year-end, in advance of the implementation of a new Building Code on January 1, 2014. The 2014 revenue budget has been increased by $100,000 to account for the known, delayed project, but no other revenue adjustments have been made based on economist's projections of a soft economy. Capital Forecast There have been no changes to the capital forecast since Council reviewed them in November. Some of the follow up issue papers requested by Council could impact the capital forecast depending on Council's direction. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Foundation: Efficient and Effective Government Goal: Financial Management Strategic Direction: Strive for competitive, rational and affordable taxation levels F - 2 KI Staff Report Finance an,d Corporate Services Department www kitchener ra FINANCIAL IMPLICATIONS: The budget impact for the average homeowner is shown below. �iuuiuu� uua uuU�»� Uuu N 'uNMKU»iui�Il�iiuuiu�ui�uiiiiuU � nu uuU u Change Change 2013 2014 $ % City Taxes $ 1 ,012 $ 1 ,024 $ 12 1 .17% Storm Water $ 118 $ 122 $ 4 3.00% Water $ 423 $ 438 $ 15 3.50% Sanitary $ 467 $ 490 $ 23 5.00% Gas $ 841 $ 835 $ (6) -0.71 % iiil��ii m��� While the overall impact on a homeowner is $48, it should be noted that $33 of this increase is attributed to increases in Regional wholesale water/wastewater rates which are beyond Kitchener Council's control. The table below breaks down the total impact to homeowner into the Regional and City portions. Impact on Homeowner— Regional Portion vs. City Portion Regional Portion of Increase 1 $33 City Portion of Increase $15 COMMUNITY ENGAGEMENT: Budget information has been made available on the City of Kitchener website (www.kitchener.ca/2014budget). Feedback has been welcomed using the following methods: • Public meeting on January 13, 2014 in the Council Chambers • Budget webpage including the interactive budget tool • Responses to Facebook and Twitter postings, including an "Ask the Expert" session • Regular mail at: 2013 Budget, c/o Corporate Communications, Kitchener City Hall, PO Box 1118, 200 King St. W. 2nd Floor, Kitchener, ON N2G 4G7 • Dedicated budget phone line Issue Paper BD10 summarizes public input received as of the date of this report. 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O O O llllllul�°II C) v Vi�I iw �uu ill�llhli. r � co LO Illllluu�ill CU V - R p > o c a) U � � O 0 c • — L- a) a) c/) c: a) a) a) 0 n ■— L- L- 70 C� — � o L L W A` O c c W 0) (D O - 0 LD C: O � U • III U m C/) C: N 42 O O O CU U cu uuuullulll '�I81 III D (D =3 L 1°Illlllllluum l U C: - � duuuuuul O �/ N uuulllluuuull O ■ �� O �; �, c L- 0 p 0 W QL C- m a) }+ ' > o 0 �--+ Cl) CL CU Cl) C/) Jc: CU C C ca — ° o O }, cn cn cn .cn — ca L- C. �--+ — a) o � o — . E .c ) E cl) a) =3 L) L- CU O � o o z LL >, — Final Budaet Day - Oneratina Issue Paper (IP) Index Included in IP # Description Proposed Budget? BD01 Potential Impact of the Delayed Central Library Opening No BD02 General Operating Questions No BD03 Work Related Injuries/Illness Claims No BD04 Use of Overtime and Absenteeism/Paid Sick Time - REVISED No BD05 Business Planning New Corporate Projects No BD06 Boulevard Tree Donations No BD07 Economic Development Investment Fund (EDIF) Update No BD08 Economic Development Strategic Initiatives Fund No BD09 Postage Charges No BD10 Summary of Public Input No BD11 Storm Water Rate Scenarios No F - 36 ISSUE: BD01 — Potential Impact of the Delayed Central Library Opening FUND: Operating DEPARTMENT: Kitchener Public Library (KPL) PREPARER: Sonia Lewis, CEO, Kitchener Public Library (519-743-0271 ext. 244) BUDGET IMPACT: $0—$110,000 BACKGROUND: Kitchener Public Library's (KPL's) 2014 operating budget request includes$497,700 for operational expenses associated with the renovated and expanded Central Library. This issue paper responds to the Finance and Corporate Services Committee's request of December 12, 2013 to provide information regarding costs which could potentially be deferred to 2015 due to the delay in the construction project. RATIONALE/ANALYSIS: Completion of the Central Library construction project was expected in 2013. Due to unforeseen delays in construction, completion is now projected to be mid May 2014. As some Central Library operating expenses are tied to the opening date, they could potentially be deferred to 2015. However, the delay has also resulted in some unbudgeted expenses. Maintaining the full $497,700 in the 2014 budget would allow the KPL Board to address costs associated with the delay. FINANCIAL IMPLICATIONS: Deferring staffing and facilities costs tied to the revised opening date of the Central Library could result in deferring costs totaling$110,000 to 2015. However, this would leave no funding in KPL's budget to address new costs associated with the delay. RECOMMENDATION: In order to address costs associated with the construction delay, the KPL Board recommends that the Board's original budget request for$497,700 be approved in the 2014 operating budget. F - 37 ISSUE: BD02—General Operating Questions FUND: Operating DEPARTMENT: Finance &Corporate Services— Financial Planning PREPARER: Ryan Hagey, Director of Financial Planning BUDGET IMPACT: None BACKGROUND: During Operating Budget Review on December 12, 2013, staff was asked to provide responses to a number of follow up items. The items contained in this issue paper are fairly short and straight forward, so they have been combined into a single issue paper instead of providing a separate issue paper for each topic. RATIONALE/ANALYSIS: 1. What is the 2014 water and sanitary rate increases for Waterloo and Cambridge? Kitchener Waterloo Cambridge (proposed) (approved) (approved) Water 3.25% 3.16% 8.40% Sanitary 5.00% 4.71% 2.30% Combined 1 4.30% 1 3.98% 1 5.40% Estimated Average 2014 Bill (250M) $928 $934 0,, 2. What services does Kitchener Utilities purchase from Union Gas and how much of the Gas Delivery budget is paid to Union Gas? Kitchener Utilities receives the following services from Union Gas: • Gas Storage • Gas Transportation Services • Interruptible Service Hub Contract • Connection Charge The 2013 projected actual expenses for Gas Delivery on page 0-58 were $13.4 million. Of this, $4.18 million is attributed to the services received from Union Gas. 3. Provide summary information about the City's grants for arts and culture, sports and recreation, and economic development compared to other cities. Staff investigated this request by using data from the Financial Information Return (FIR) which is submitted annually by municipalities to the Ministry of Municipal Affairs and Housing, but found information available for other cities is compiled on a different basis and is therefore not comparable, so it has not been provided. F - 38 CITY OF KITCHENER 2014 BUDGET ISSUE PAPER `° 4. Provide the tax rate increases been for the past 10 years (including EDIF and excluding EDIF). The table below shows the approved tax rate increases for the past 10 years including, and excluding the special levy for the Economic Development Investment Fund (EDIF). The 10-year average excluding EDIF is 1.77%, while the 10-year average including EDIF is 2.99%. 114 2005 2006 2007 2008 2009 2010 2011 2012 1 Excl. EDIF 2.99% 1.94% -1.65% 1.86% 3.01% 2.87% 1.73% 3.25% 1.41% 0.32% 1.77% Incl. EDIF 4.84% 3.76% 0.00% 3.08% 3.71% 3.98% 2.90% 3.89% 2.39% 1.39% 2.99% S. How would the proposed tax rate increase for Kitchener, the Region and the School Board impact the average homeowner (assessed value of$258,000)? Based on the proposed increases for the City (1.17%) and the Region (2.80%), the total impact to the average Kitchener homeowner would be $57.19 or 1.80% as shown in the chart below. 2013 2014 2014 %of 2014 %of Property Proposed Proposed Proposed Property Property Taxes %Increase $Increase Increase Taxes Taxes Kitchener $ 1,011.80 1.17% $ 11.84 21% $ 1,023.64 32% Region $ 1,619.83 2.80% $ 45.36 79% $ 1,665.19 51% School Board $ 546.96 0.00% $ - 0% $ 546.96 17% TOTAL $ 3,178.59 $ 57.19 100% $ 3,235.78 100% Total% Increase 1.80% 6. Provide the Comparative Tax graph for cities over 100,000 population for the past four years. These graphs have been attached below. In each of the four years Kitchener has had one of the lowest tax burdens in Ontario, but has improved from being fifth lowest in 2010 to third lowest in 2013. Focusing within the Region, Kitchener has also improved from being second lowest in 2010 to the lowest in 2013. The comparative tax graph shows the tax burden of the same house (3 bedroom, 1.5 bathroom 1,200 square foot bungalow on a 5,500 square foot lot) in different municipalities. This is not necessarily the average house for those municipalities, so the figures shown in the graph will likely differ from an analysis using a municipality's average house (e.g. the 2013 graph shows a tax burden of$2,988 for Kitchener, while the average tax burden is actually$3,179 as shown in question 5 above). Also, there is a significant decrease in the Waterloo figure from 2010 to 2011. This is due to a refreshing of the sample properties used to calculate the figures between 2010 and 2011 by BMA, who conducted the study. Since 2011, the same property group has been used to calculate the Waterloo figure. F - 39 7. Provide the 2014 budget in Schedule 1 (Variance Reporting) format. This schedule has been attached below. The budget schedule includes the following columns: • Council approved 2013 budget • Restated 2013 budget, which adjusts for reallocations between divisions within the City from 2013 budget approval and today (e.g. sports grant funding moving from General Expense to the KMAC and Arenas budget) • Proposed 2014 budget • Change between proposed 2014 budget and 2013 restated budget in dollars • Change between proposed 2014 budget and 2013 restated budget as a percentage • Commentary about significant changes. These are provided for changes that are more than $50,000 or 10%, which are the thresholds used to provide comments for variance reports. FINANCIAL IMPLICATIONS: None. RECOMMENDATION: For information only. F - 40 2010 Tax Burden Comparison $4,500 ............................................................................................................................................................................................................................................................................................................................................................. ..... $4,000 °•, $3,500 $3,236 $3,32 $0,000 .., $2,798 $2,810 $2,500 $2,000 $1,500 $1,000 $500 ........ ....... ... .... ... ........ ........ ........ a� Q- �n c 0 4 0 a _ �n v 2 �x �c v v a 0° a c U CE u 4.7 2011 Tax Burden Comparison $5,000 ........_... ............ $4,500 ....... ....... ....... ........... ... $4,000 �.3, ° $3,500 3a7 $3,043 $3,000 .................$2.879 $"2 883......... .....,,,„ $2,500 $2,000 $1,500 $1,000 .,,. $500 $a ,:w.w.e ...w.,,,.r.,, y ._y_._.__r ..w...,....�.,,. y m.........r r..,.,,..y.,..,..,y e........r..,.,.w .w.wyw.w.w e ...7...............w m.........r „r,,...,.,r...,.,,..y.::w.w.wr:.:........w"r:.... :F ttis c T x rd c as � � � � � E r 4 O 4 2 > 2 a 4 a� s � a a Ln~ ~ 0 l7 F - 41 2012 Tax Burden Comparison $5,000 $4,500 .............................................................................................................................................................................................................................. $4,000 ....° $3,369 $3,500 $3,121 $2,933 $2,946 $3,000 . .... ... $2,500 $2,000 $1,500 .... .. ... ... ... ... .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... $1,000 $500 $0 ............... ........................ ........... � E E ve E E .2 C) C) rz M - EM 0 2 > :E 0 0 U 2013 Tax Burden Comparison $5,000 $4,500 $4,000 $3,484 $3,500 3—,182 $2,988 $3,050 ffM M $3,000 $2,500 $2,000 .. .... ... $1,500 $1,000 $500 ,,—JET $0 1„,,-1- T---1---I- t,;'.,,,.,.1 T---I....I' .L w 0 CL 0 0 0 - -t f 0 w C2 t.- E2 -L E E 0 > 1E 0 L2 E < E 0 w U U 4�; 2 0 2 0 0 F - 42 Q � U [0 a � 7 N U N N 7 O a E N L O O U t U O O i s N � N N N 9 L N N 9 Y y C N N Vl N 9 0 y N > O U 6 Q O O C L U 0 C 7 O y O N C p — _ N LL j 'N Q N y N [0 7 ULw oU m > U U L O 9 N N 9 N —2r O N N 7 L 6 7 C 9 6 C O C p O O O _ 7 C 0 V y y O -6 N '> N C C C 9 N a U C E O O V 3 C 7 0 7 N i ' A - 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c0 ifJ C C0 ifJ c O 0 0 C\ L C0 V (V M O O N = N O N V O W M N N ifJ C0 O N I� M Q m N N O O N Q .y 0 U fn Q O d cn w c O ~ U Of W t F- co LLuu ¢ W cn w z Lu cn N F- F W U W co Lu Lu � mmw y W XwXcnF- ww � w cf) LU CL Z J J J Of W cn d' D >G LU Z Q Z � W 0 W "a W CO U D U U W �, p W Z W H W 0 J O Z d' LL ma ¢ m co W > K N Q Q JQ W > LLu z W_ W U LL cn W J x K J W Cl) 0 W U W �, K k CL W Q �i J Z z O Z Z J O o J = � � C� - cnNON W w zOQZ W � Q000 w N U W z Q Of O d' W Z W W J J W d U cn aj W N z W O M Nz W C� = JQ � ~ O C7 z � LU of K � � m my o C7 Z z = � w a ¢ z > ¢ ¢ Z Lu W d ¢ � w N ¢ o � J¢ z U z x d m d z XXX of O O ¢ w 0 0 0 >LU w O O o O CD m CW7 (D Y UO (D QU DU � � dH � (D F- U` cn JUd 0 0cn co IF.-I 101 F - 45 CITY OF KITCHENER 2014 BUDGET ISSUE PAPER `° ISSUE: BD03—Work Related Injuries/Illness Claims FUND: Operating DEPARTMENT: Finance and Corporate Services— Human Resources PREPARER: Michael Goldrup— Director, Human Resources (519-741-2200 ext. 7117) BUDGET IMPACT: None BACKGROUND: During Operating Budget Review on December 12, 2013, staff was asked to provide information about the City's experience with lost time. The City has comprehensive safety and disability management programs in place that have effectively reduced its claim costs by more than $200,000 since 2010. The programs are designed to educate, inform and support employees both at work and in their personal lives and are intended to: • prevent accidents and injuries • return employees back to work early and safe, therefore reducing financial impacts to the employee and the employer • reduce unexpected cost in overtime, loss of productivity, work re-assignment, turnover • improve employee knowledge, competency, and morale • help move the City towards a culture of safety excellence The following injury/illness prevention programs/resources are examples of programs currently in place that help prevent injuries and manage claims: • Corporate Safety Strategy 2011-2015 aimed at improving the City's Culture of Safety and Wellbeing based on Canadian Standards Association Standard for Safety Management • Comprehensive Safety Program for Compliance and Prevention • Disability Management Program for both Occupational and Non-Occupational cases including Early and Safe Return to Work Processes, Work Accommodation Processes, and Sick Leave Adjudication • Vehicle and Equipment Safety Program and Training • Safety Management Training and Workplace Accommodation Training for Management • Ergonomic Assessment, Training and Tools for Injury Prevention • Wellness Sessions • Joint Health and Safety Committees • Health and Safety Representatives • Monthly workplace inspections Through continuous improvement of prevention and return to work programs, the City has and will continue to experience many of the financial benefits of a safer and healthier workplace, including reductions in workers' compensation costs and a stronger culture of safety that helps make Kitchener an employer of choice. F - 46 CITY OF KITCHENER 2014 BUDGET ISSUE PAPER `° RATIONALE/ANALYSIS: Claims/disability management and proactive injury prevention programs have positively impacted the City's claims experience and reduced both claims costs and lost time from 2010 to 2013 YTD. Ultimately, how claims are managed and prevention is implemented will continue to impact not only cost and claims for the City of Kitchener but also reduce risk related to compliance with safety legislation. The City of Kitchener had the following approved WSIB claims from 2010 to 2013 YTD. Table 1 illustrates the Health Care and Lost Time claims over this time period. Table 1: City of Kitchener Claims 2010—2013 YTD City of Kitchener WSIB Claims 70 V) 60 50 0 40 30 E 20 z 10 0 2010 2011 2012 2013 YTD .All Health Care Claims 53 54 60 45 All Lost Time Claims 54 40 44 37 Fire Health Care 10 4 10 1 m -Fire Lost Time 10 4 9 4 The City of Kitchener has also showed an overall trend down in the number of Lost Time Days related to workplace related claims over the same time period. This is shown in Table 2. Table 2: City of Kitchener Lost Time Days 2010—2013 YTD City of Kitchener Lost Time Days 500 400 a 300 200ut 100 0 20.10................................. 2011 2012 2013YTD All Lost Time Days 466.2 275.6 231.2 115.4 Fire Lost Time Days 249.7 48.6 58.6 31.3 -J Lost time days for claims are within the time period. Does not include days lost for claims carried over from previous years. F - 47 CITY OF KITCHENER 2014 BUDGET ISSUE PAPER `° It is important to note that the severity of the injury greatly effects the lost time days. In the case of Fire, the lost time in 2010 and 2012 are attributed to only a few cases that had significant impairment preventing an early and safe return to work. Also, since Fire suppression staff work a 24 hour shift, so each missed shift is counted as 3 days as a day is considered to be 8 hours. The City of Kitchener Lost Time Incident Rate from 2010 to 2012 as compared to the Human Resources Benchmarking Network Survey Results of other municipalities shows the City of Kitchener has a much lower rate than average. Similarly, the lost work hours per employee for the City of Kitchener from 2010 to 2012 as compared to the Human resources Benchmarking Network Survey Results of other municipalities shows the City of Kitchener has a much lower average lost work hours per employee. Both the Lost Incident Rate and Lost Work Hours per Employee can be found in Tables 3 and 4. Table 3: Municipal Comparison of Lost Time Frequency Municipal Comparison - Lost Time Frequency 4 3.5 v u ,M *' 3 ...„., , oc 2.5 a c 2 w a 1.5 °1 1 0.5 0 2010 2011 2012 Municipal Average(%) 2.82 3.52 2.31 Table 4: Municipal Comparison— Lost Work Hours per Employee Municipal Comparison - Lost Work Hours Per Employee CL E 4 W i N a 3 V) L 0 2 .room 0000 0 1 V, 2010 2011 2012 Municipal Average 3.11 3.44 2.33 —City of Kitchener... 2.17 1.34 1.56 F - 48 CITY OF KITCHENER 2014 BUDGET ISSUE PAPER `° Costs related to both health care and lost time claims have decreased from 2010—2013 YTD. Proactive and cooperative approaches to both claims and disability management and a strong early and safe return to work approach have contributed to this decrease as shown in Table 5. . Table 5: Costs of claims from 2010 to 2013 YTD ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 300,000.00 250,000.00 200,000.00 41 0 150,000.00 o 100,000.00 a 50,000.00 Np mN 0N0N0N0NbRbl;,bN ��✓b 0.00 2010 2011 2012 2013 YTD Corporate Claim Costs 281,528.28 104,091.00 187,141.47 45,223.84 Fire Claim Costs 75,136.18 17,892.61 146,262.98 10,323.24 Note: Costs reflect heath care and lost time costs for claims in the current year. Fees and costs carried over from previous years not included. 2013 billing for health care costs have lag time. FINANCIAL IMPLICATIONS: Between 2010 and 2013 the City's lost time and health care costs, when comparing cost claims in the time period has been reduced by over$200,000. Studies have shown the cost of an actual claim only represents a small portion (10%) of the true cost of the injury. Although the costs related to claims in the current year are showing a trend down, costs from claims from previous years, and administrative and physician fees continue over time inflating the total cost to the City. Also, costs occur over a time period and can carry over from year to year, in some cases until the claimant reaches the age of 65. Many more indirect costs are incurred through each workplace injury such as damage, overtime, productivity or other insurance claims. Reducing the impact and likelihood of injuries and illness in the workplace can reduce cost of claims and indirect costs of accidents, but it can also decrease the risk of fines, sanctions, and other negative implications related to compliance. RECOMMENDATION: Continuing to develop and support injury/illness prevention programs and strengthen The City's culture of safety and well-being will result in workers suffering fewer injuries and illnesses. To adequately continue to reduce claims and costs and also comply with legislation, ongoing effort and resources are required to proactively support prevention and disability management resources. Through continuous improvement of prevention and return to work programs, the City has and will continue to experience many of the financial benefits of a safer and healthier workplace including reductions in workers' compensation costs and a stronger culture of safety that helps make Kitchener an employer of choice. F - 49 ISSUE: BD04— Use of Overtime and Absenteeism/Paid Sick Time - REVISED FUND: Operating DEPARTMENT: All PREPARER: Michael Goldrup— Director, Human Resources (519-741-2200 ext. 7117) BUDGET IMPACT: None BACKGROUND: During Operating Budget Review on December 12, 2013, staff was asked to provide further information on overtime and absenteeism. This issue paper has been updated to include 2013 overtime information, comparative information published in a City of Guelph review of overtime, and additional information on Fire sick time. RATIONALE/ANALYSIS: Overtime The table below shows the actual overtime and budgeted overtime figures for all City departments for the last four years. Overtime as Annual Overtime a % of Total Overtime Year Paid Payroll Budget 2010 $ 2,493,706 3.09% $ 1,550,238 2011 $ 2,636,228 3.23% $ 1,516,767 2012 $ 1,764,574 2.01% $ 1,480,728 2013 $ 1,949,938 1.83% $ 1,637,048 Overtime is monitored by management within divisions and corporately by the Corporate Leadership Team. The need for overtime is difficult to predict as seasonal demands on programs are the main driver, in addition to the pressure on staff to meet increasing service demands with no addition of staff in many parts of the organization over many years. Management continues to make efforts to manage the use of overtime, and to ensure that it is tied to valued service outcomes. The following summarizes the general provisions that are common across the City of Kitchener collective agreements. Overtime must be approved in advance by supervision/management. Types of overtime: a) Continuation of work day: this would be characterized as work that is typically a continuation of an employee's normal work day and is work that could not be completed within the normal days scheduled hours and cannot be left for completion on the next scheduled shift; b) Scheduled overtime: work that for varying operational reasons (e.g. equipment, public safety, required utility shutoffs etc.) cannot be performed during regularly scheduled hours; F - 50 c) Emergency overtime: work that could not be anticipated or must be attended to for service or safety reasons (e.g. immediate weather related work, equipment or infrastructure failure, CVOR requirements, etc.); d) Overtime resulting from on-call or standby: closely tied to emergency overtime, various operations place employees on standby or on-call in order to response to situations occurring outside of normal scheduled operating hours. MUNI'CI'PAL RIENCHIMARK DATA Total l Total OT Q/o of Total l Standby 0/0 Salllairies & Overtime Base Ray Standby of Base Pay Wages Guelllllph $89,2.09,3:31 Cash 4.07611/o $172,514 .1911/0 012 $3,622,356 Pop. Non-Cash 121,688 828 779 Guelph $57,288,772 Cash . , M $2,921,308 4. m 8 months $82,750,449 u 574,337 5.1 % Full Year $4,219,666, ftwecast 131111liington $72,086,085 Cash 1.8511/o $444,933 .b2l/o Pop. 164,41.5 $1,330,0701 Non-Cash $682,637 City of $43, 71.5,5407 889t ,278 2.0211i/ $121,2070 .2811/n Waterloo Pop. 129,100 Halton, $23.5,313,129 $8,771,369 3.7311/o $881,396 .371% Region Pop. 505,678 Hanfullltoin $53.3,300,330 $7,898,743 1.4311/o $1,92.9,327 .3011/6 Pop. 535,234 Sudbuiry $71,881,0724 $4,013,385 5.,5311/1 2288312 .301/1 Pop. 160,274 Cambridge $44,658,942 $1,393,4:32 3.1211/o $257,628 .58% Pop. 132,900 Wellington $34,512,297 61% County Pop. 94,628 Kitchener 123,482,679 Cash 1.2011// 247,6077 .200/6 1,4807,728 Pop. 234,'.1.070 Non-Cash 882,931 From the City of Guelph's Internal Audit Report on Overtime October 31, 2013 NOTE: Kitchener figures quoted are 2012 budget figures F - 51 Absenteeism/Paid Sick Time Paid sick time is trending well below the municipal average that is sourced from the Human Resources Benchmarking Network annual survey. The survey does not include Fire, so there is no average for this employee group. Fire is shown separately below. Paid Sick Days Per Eligible Employee (Based on 7 hour day) Municipal Average City of Kitchener 2010 2011 2012 2010 2011 2012 Days 10 9 11 8 8 8 Hours 69.2 61.9 75.8 57.2 58.2 55.5 Total Cost I 1 1 $1,729,945 1 $1,811,983 1 $1,887,707 Fire— Paid Sick Days Per Eligible Employee Suppression Non-Suppression (Based on 12 hour day) (Based on 7 hour day) 2010 2011 2012 2010 2011 2012 Days 7 6 6 2 4 5 Hours 85.6 75.6 69.7 15.8 25.9 33.9 Fire payroll postings are not separated into sick days, so providing the total cost for Fire is not feasible. FINANCIAL IMPLICATIONS: None. RECOMMENDATION: For information. F - 52 CITY OF KITCHENER 2014 BUDGET ISSUE PAPER `° ISSUE: BDOS— Business Planning New Corporate Projects FUND: Operating DEPARTMENT: Office of the CAO— Integrated Planning PREPARER: Laurie Majcher, Manager of Strategy& Business Planning BUDGET IMPACT: None BACKGROUND: During Operating Budget Review on December 12, 2013, staff was asked to provide information about the 10 new Corporate Projects identified on page 2-3 of report CAO-13-039 Proposed City of Kitchener 2014-2016 Business Plan. The information requested includes where these projects show up in the budget and when previous staff reports have come forward to Council. RATIONALE/ANALYSIS: Reports Project Name Budget Page Reference Timing of Previous 2015-2018 Strategic Funding is provided in the Corporate CAO-13-027, Oct 21, 2013 Plan Plan existing balance (page C-81) and 2014 capital budget (page C-107) Start-up Landing Pad Funding is provided in the Downtown CAO-13-036, Nov 18, 2013 Program Incentives existing balance (page C-80) and 2014 capital budget (page C-109) SAP Customer Funding is provided in the FCS-13-126, Sept 9, 2013 Relationship & Billing Enhancements to Tax/Utility System FCS-12-176, Nov 5, 2012 (CIS Replacement) existing balance (page (page C-81) and FCS-12-040, Mar 19, 2012 2014 capital budget (page C-114). Issue Paper Cap 02 (page C-92) Water& Sanitary To be completed with existing staff N/A Sewer Rate Structure resources, no new funding requested. Review Land Disposition To be completed with existing staff CSD-13-047, May 27, 2013 (Rockway RFP & resources, no new funding requested. Parking Lots 16, 3 & 6) Municipal Partnership Additional revenues possible in 2014 as CSD-13-105, Dec 2, 2013 Program outlined in issue paper AR 03 Increased Advertising Revenue through Sponsorship Strategy (page 0-98) Neighbourhood Funding is provided in the CSD-13-082, Aug 21, 2013 Strategy Neighbourhood Development Strategy existing balance (page C-82). No new funding requested. People Plan Roll-out To be completed with existing staff CAO-12-044, Dec 3, 2012 resources, no new funding requested Corporate Greenhouse To be completed with existing staff CSD-13-108, Nov 18, 2013 Gas Reductions resources, no new funding requested 2-Way GO Transit To be completed with existing staff CAO-12-045, Oct 22, 2012 Service resources, no new funding requested FINANCIAL IMPLICATIONS: None. RECOMMENDATION: For information only. F - 53 ISSUE: BD06— Boulevard Tree Donations FUND: Operating DEPARTMENT: Infrastructure Services - Operations PREPARER: Greg Hummel, Manager, Park Planning, Development &Operations BUDGET IMPACT: None BACKGROUND: During Operating Budget Review on December 12, 2013, staff was asked to provide additional information and clarification on the possibility of residents donating trees for planting to replace boulevard trees removed because of the Emerald Ash Borer (EAB). RATIONALE/ANALYSIS: The City has been preparing for EAB for a number of years. With the completion of the street and active parkland tree inventory, the City now knows the location of all ash trees on these lands. Knowing where ash trees are is the first step in managing this issue. The options to manage EAB continue to change based on the knowledge gained from other municipalities and advances in scientific research. Chemical injections and preserving the mature ash tree canopy are two areas receiving more attention. Recognizing the constantly changing variables, the EAB Strategy will need to be adapted and reviewed annually. A draft master tree planting plan for neighbourhoods impacted by EAB will be developed and shared through public meetings to seek community input and will be the basis for the decisions on which trees get planted where and by whom. The master tree planting plan will eliminate mono-cultures and create a more diverse urban canopy of larger stature trees. The City of Kitchener has 4,500 ash trees along city street and has started to actively remove them to minimize risks associated with the declining health of the trees. Removals started in January of 2013 through ward 4 and will continue in ward 6 and the abutting wards in January of 2014. Tree removals and injections have been allocated through the ten year capital budget forecast, but stumping and re-planting of boulevard trees has not yet been addressed. One option under consideration is to advance boulevard tree re-planting by accepting donations toward the replacement of trees removed due to the EAB infestation. Once the stump has been removed, a new tree could then be planted in that location. In discussion with the Canada Revenue Agency, they have indicated that donations for a tree to be planted on City property could be eligible for a tax receipt from the City of Kitchener. The cost to replace a boulevard tree ranges from $500-$700 per tree depending on the species of tree that is being planted. The species would be determined by the master tree planting plan that will be developed for that area. A communication plan will need to be created so that residents are aware of the program and the opportunity that would be available to the residents. The City would accept any donation amount for the Replacement Tree Fund and will determine the species and location priority based on the master tree planting plan. F - 54 To encourage participation in the program, Council could consider an incentive plan which would match resident donations. This Replacement Tree Fund program could be set up to augment our overall replacement strategy as capital planting funds becomes available and enhance and speed up the opportunity to get trees into the ground for the benefit of our entire city. There is currently no City budget for any matching fund program. Further, the City would encourage the participation of all residents and businesses which may not have been directly impacted by EAB but are interested in supporting the overall urban forest canopy preservation for the benefit of all residents in Kitchener. Additional options will continue to be assessed through discussion with other municipalities as EAB impacts the province. FINANCIAL IMPLICATIONS: Donation program - No financial impact other than the staffing time needed to issue tax receipts and administer and manage the program. Matching fund program — The financial impact would depend on the parameters set by Council for the matching fund program. RECOMMENDATION: That staff be directed to further investigate options for tree planting donations and report back to Committee. F - 55 ISSUE: BD07 — Economic Development Investment Fund (EDIF) Update FUND: Operating DEPARTMENT: Department of the CAO, Economic Development PREPARER: Rod Regier, Executive Director of Economic Development BUDGET IMPACT: None BACKGROUND: During Operating Budget Review on December 12, 2013, staff was asked to provide a brief update to the EDIF Impact Analysis prepared for Council in May, 2013. A more thorough analysis is scheduled to be undertaken by a third party consultant in mid-2014. RATIONALE/ANALYSIS: The success of EDIF is now best reflected through significant private sector activity, especially related to the Communitech Hub. This demonstrates that EDIF investments provided the necessary catalyst to stimulate wealth-generating private investment. Between 2010 and 2012, there were 863 startups associated with the Hub, and another 60 companies established through the University of Waterloo's Velocity program. The Hub has helped attract $350 million in equity investments, and Velocity startups have raised over$100 million in funding. Since 2012, startups graduating from the Hub have created demand for nearby office space. The resulting redevelopment activity created construction jobs, and is driving assessment growth through reuse of underutilized space. Other spinoffs include increased demand for downtown restaurants, retail and services. The residential market also became more attractive, resulting in the launch of two major projects: City Centre and One Victoria Condominiums. Objective 1: Stimulate assessment growth Properties that benefited directly from EDIF investment, or were in close proximity to these investments, demonstrate an increase in the growth rate of their assessed values, which grew by about $9.5 million per year prior to the implementation of EDIF. After EDIF was launched, the total assessed value of these properties rose by an average of$14.2 million per year. These properties were worth $167.8 million in 2004 and are now collectively worth $296.3 million.This does not reflect the market value adjustments still to come, especially in residential development. The market value of the first phase of City Centre Condominiums is expected to be approximately$57 million, and One Victoria Condominiums is expected to be worth $61 million. These two projects will combine to generate approximately$450,000 in annual City of Kitchener tax revenue—a 33 fold increase. Objective 2: Stimulate employment Noteworthy office developments include the conversion of upper-storey space in the Simpson Block on King Street to accommodate Vidyard. Thalmic Labs will occupy 24 Charles Street, which underwent a $400,000 interior renovation to house one of North America's hottest startups. Downtown office space attracted high-profile tenants in 2013, with Motorola and Square (Twitter cofounder Jack Dorsey's newest startup) setting up offices in the Breithaupt Block. Perimeter Development also acquired 305 King St W, intending to modernize the building. The proximity of F - 56 this office tower to the Tannery has made it an attractive location for graduating Hub startups, include TribeHR (acquired by Netsuite in 2013). There are approximately 530 employees in small technology companies occupying over 60,000 sq.ft. of space in downtown holdings outside the Tannery. The Tannery itself now houses approximately 1500 employees. The demand for downtown space has pushed the average asking lease rate for office space up to $14.53/sq.ft. in 2013 from $11.81/sq.ft. in 2012. This also reflects the increase in Class A office space. The vacancy rate rose both downtown (12.6%) and city-wide (10.2%) in 2013, reflecting the increase in available space in the core, as new office inventory was created at the Briethaupt Block, and the time lag to occupancy. The Downtown restaurant and retail cluster also continued its expansion in 2013 with new businesses including GoGo Mart, Zoup, Cheeses Murphy, and more. A group of specialty shops has sprung up on Ontario Street including 2013 additions Stylfrugal, and Flourish Florals, as well as nearby'More Than Half' clothing and Artisan Zone on King Street. Objective 3: Stimulate development of residential units in the Downtown Construction has begun on two major condominium projects, City Centre and One Victoria.The first phase of City Centre is a 17-storey tower with 203 units of residential, a number of commercial units on the ground floor and two levels of underground parking. One Victoria features a 19-storey tower with 205 residential units, commercial units at grade, plus two below- grade levels and six above grade levels of parking. Upon completion, these projects can accommodate about 735 residents, which would result in a 35% core population increase. While the construction value of residential permits in downtown neighbourhoods fell from $28.3 million in 2012 to $14.6 million in 2013, this reflects the timing of permit issuance. City Centre Condominiums and One Victoria only had shoring permits issued in 2013 (valued at $860,000 combined); as such, residential permits will rise considerably when these projects have construction permits issued. Each of these projects has a greater value than the total construction value of combined residential permits in any of the past 13 years. Conclusion The impact of the investment EDIF stimulated extends beyond employment and assessment growth. It has also resulted in a transformation of the urban brand of the City. In 2013, regional, national and international press reported the new identity, with a New York Times headline reading: "A Snowier Silicon Valley in Blackberry's Backyard". Momentum continues to build with new projects in the planning stage. Strong growth in residential, office and retail is expected to continue through 2014 to the commencement of the ION LRT service in 2017 and beyond. FINANCIAL IMPLICATIONS: None. RECOMMENDATION: For information. F - 57 ISSUE: BD08— Economic Development Strategic Initiatives Fund FUND: Operating DEPARTMENT: Department of the CAO, Economic Development PREPARER: Rod Regier, Executive Director of Economic Development BUDGET IMPACT: $150,000 annually BACKGROUND: 2013 was the final year in the Economic Development Investment Fund (EDIF). Its success challenges the City of Kitchener to consider support for further catalytic investments in the local economy. During Operating Budget Review on December 12, 2013, staff was asked to provide a list of investment opportunities that can advance the City's economic development strategy by leveraging approximately$150,000 reallocated from alternative revenue proposals. Two classes of investment opportunities present themselves: smaller pilot projects generally less than $500,000, and longer term capital projects greater than $1,000,000. This report addresses the former. A complementary report on the renewal of the Economic Development Reserve Fund will be brought forward for Council consideration in late winter. RATIONALE/ANALYSIS: The City of Kitchener Economic Development Strategy (KEDS) outlines a program that positions the City's economy to compete globally for talent and investment. The KEDS framework provides a road map for future investments. Each leverages established partnerships to achieve maximum impact. The following projects could benefit if annual funding of$150,000 is provided. What follows is a very general description of 9 concepts, with very high-level funding estimates: Startup City: California Office— Partner with Communitech to establish a market liaison service for startup tech and digital media companies in California. Kitchener based companies have benefited from access to mentorship, capital and market opportunities in Silicon Valley. In 2013, Kitchener startups raised $20.5 million from primarily California venture capital companies. Additional startup investment from acquisitions by California based tech companies have triggered accelerated growth opportunities and helped create over 100 Kitchener tech jobs. Proposed investment: $50,000 per year for 3 years; 17% of total annual project cost: $300,000. Cluster Building: Manufacturing— Partner with UW Velocity to establish a manufacturing startup incubator in Kitchener. Velocity is Canada's most successful university startup accelerator. Over 60 firms are being incubated in the program Velocity startups are landing in downtown Kitchener as they graduate. This facility would help create an entirely new generation of Kitchener based manufacturing businesses ranging from wearable devices (i.e. Thalmic Labs) to business and consumer products hardware (i.e. BufferBox, Mappedin). Proposed investment: $50,000 per year for a 3 year period. This represents 5% of the total annual project cost $1,000,000. Cluster Building: Digital Content— Partner with the Kitchener Studio Project, Communitech, Education Institutions, Creative Enterprise Initiative, and OMDC to establish a digital content accelerator program to support emerging artists (music, visual art, animation, film, game development, etc.) and drive growth in the local creative cluster. Proposed Investment $50,000 per year for 3 years. This represents 25% of the total annual project cost: $200,000. F - 58 Cluster Building: Music Cluster— Partner with Canadian Cultural Spaces Program to develop a feasibility study of a music business resource centre in Kitchener. Proposed Investment $25,000. Total project cost $50,000. Cluster Building: Film—Collaborate with OMDC and regional partners to support an integrated film cluster strategy. This strategy would attract film projects to Kitchener, support the local film industry, and raise the city's profile as a destination for filming. Proposed investment: $20,000 Total Project Cost: $40,000. Talent Strategy: Tech Bus— Both established and startup tech companies in Kitchener require access to the large talent pool in the GTA to support growth. Established tech companies already have buses bringing their staff from Toronto. Smaller, startup companies do not have the critical mass to purchase this service. Communitech has been asked by its members to coordinate a "tech bus" as an express commuter service from Toronto. Programmed to be self-sustaining after the 3rd year, the service would establish demand for a 2-way, all day GO train service. Proposed investment: $50,000 per year for three years, 5%of total annual project cost: $1,000,000 Dynamic Downtown: Music Cluster— Partner with the Downtown Kitchener BIA and local venue operators to facilitate the growth of a live music scene in Downtown Kitchener. Project objectives: (1) establish Downtown as hotbed of live music; (2) encourage participation of as many operators and venue types as possible; and (3) build relationships between venue operators and the live music community. The target: 300 performances per year. Proposed City investment: $30,000, 25% of the total annual project cost $120,000. Dynamic Downtown: Downtown Shuttle— Kitchener's downtown is evolving rapidly, with new office, residential and retail development underway. However, development is unevenly distributed, resulting in poor performance in some key resources (i.e. parking structures) and businesses. A 'hop on, hop off' style downtown shuttle would help move people around the downtown quickly and improve the distribution of benefits, including utilization of parking infrastructure and retail. Proposed Economic Development investment $100,000 per year.This represents 33% of the total annual operating cost: $300,000 annually. Innovation District: Brand Development and Marketing— Partner with the Downtown Kitchener BIA and developers in the Innovation District to develop a promotional package and advertising program to leverage growing interest in the District as a desirable location for creative office and residential development. Proposed City Investment $25,000; total project cost $75,000. FINANCIAL IMPLICATIONS: $150,000 to be allocated in the 2014 operating budget to an Economic Development Strategic Initiatives Fund to provide seed funding to key partnership projects that advance the KEDS. RECOMMENDATION: For Council direction. F - 59 ISSUE: BD09 — Postage Charges FUND: Operating DEPARTMENT: Finance and Corporate Services - Revenue Division PREPARER: Saleh Saleh, Supervisor of Collections and Payment Processing (519-741-2200 extension 7346) BUDGET IMPACT: Tax Base - $50,000; Enterprise -$43,000 BACKGROUND: On December 11, 2013, Canada Post announced it will dramatically increase the cost of postage effective March 31, 2014. The current 2014 proposed operating budget does not account for this unforeseen increase in postage being proposed by Canada Post. RATIONALE/ANALYSIS: The 2014 budget for postage is currently set at $830,741. A large percentage (70%) of the postage budget relates to costs of mailing out property tax and utility bills. As a result of the postage rate increase announced by Canada Post, it is expected that the cost of mailing out a property tax or utility bill will go up by an average of 15%to 19% depending on the weight of the item. To properly budget for the increased cost of postage, the 2014 budget for postage would need to be increased by$93,000 (Tax Base - $50,000; Enterprise- $43,000). This amount reflects the increased costs of postage for 9 months beginning March 31, 2014. A further increase would need to be allowed for in 2015 to annualize the costs for the remaining 3 months. If the increase in budget allocation is not approved, it will result in a new chronic shortfall in the City's postage budget beginning in 2014. FINANCIAL IMPLICATIONS: Tax based operating budget would increase by$50,000 with a corresponding net levy impact. The Enterprise based operating budget would increase by$43,000, spread across four utilities. RECOMMENDATION: For Council direction. F - 60 ISSUE: BD10—Summary of Public Input FUND: Operating and Capital DEPARTMENT: Finance and Corporate Services— Financial Planning PREPARER: Ryan Hagey, Director of Financial Planning BUDGET IMPACT: None BACKGROUND: Public engagement continued to be a significant area of focus for the 2014 budget process. Both traditional and electronic methods of engagement were employed again this year, allowing for a number of different input points into the budget process. The efforts taken and the corresponding results are summarized below. RATIONALE/ANALYSIS: 1) Ask an Expert In December, staff conducted an Ask an Expert session focused on the 2014 Budget. Ask an Expert is a series of one-hour Facebook events which allow citizens to interact directly with City personnel on specific subjects. The questions and answers of the budget session are attached. 2) Interactive Budget Website In November staff launched an interactive budget website that includes an online calculator to help residents understand the impact of budget changes on their property taxes. As of January 7, the interactive website had 234 hits, and resulted in 3 residents submitting their preferences for alternative revenues and strategic initiatives. The submissions have been summarized and the comments have been attached. 3) Other Feedback Channels Staff has solicited feedback via e-mail, Facebook, Twitter, voice-mail and regular mail. The City was tagged in one tweet about the 2014 budget which also linked to the online budget calculator: "@glsssgrl: @CityKitchener has a budget calculator to show what they need to consider for the 2014 budget. That's transparency!http://t.col682b2nNiti" One letter has been received and is attached for Council's information. 4) Public Input Night On January 13, 2014, the City held a public input night where citizens could address Council. In total seven delegations spoke before Council on the following topics: • Reducing the amount of City vehicle traffic coming into Victoria Park (x4) • Limiting tax and user rate increases (x2) • Increasing City advertising opportunities and making all parking at the Aud paid (x1) A full video recording of the meeting is available on the City website. FINANCIAL IMPLICATIONS: None. RECOMMENDATION: For information only. F - 61 Ask An Expert Questions and Answers How do Kitchener's taxes compare to other cities? Locally and across the province? For Ontario cities over 100,000 in population, Kitchener has the third lowest taxes. Locally, Kitchener has the lowest tax burden in the Region of Waterloo (lower than Waterloo and Cambridge). When can the public talk to council about the 2014 budget? There is a special Finance and Corporate Services meeting dedicated solely to the 2014 budget on January 13 in the evening. If citizens want to address Council, they should contact the Clerks office to sign up. http://kitchener.ca/.../insidec.../RegisterAsADelegation.asp Are there other ways the public can provide input if they can't make it on Jan. 13? Yes, there are many options available to the public like responding to Facebook and Twitter postings about the budget, or contacting the City through email or phone. One of the best ways though is to use the Budget Calculator that shows the impact on your individual taxes. All of the information can be found on the Budget webpage http://kitchener.ca/en/insidecitvhall/2014- Budget.asp What is the proposed tax rate increase for 2014? 1.17%, which works out to $11.86 a year to the average Kitchener homeowner with an assessed value of$258,000. Has this rate been approved? Is this just the municipal increase? This has not been approved yet. Council will finalize the budget on January 30 after hearing from citizens at a Public Input night on January 13th. And yes, this is only the City increase.The Region sets their own budget, separate from the City. What methods are being considered to reduce taxes? Council is considering Alternative Revenue options that could reduce the tax rate increase by 0.15%. Some of them include increased cost recoveries for Bylaw and Engineering work and additional advertising revenues. Additional details can be found on the City's budget page. http://kitchener.ca/en/insidecitvhall/2014-Budget.asp How are property taxes divided between the region and city? Property taxes are paid to the City, but are then divided between the City, Region and School Board. In 2013, the split was 51%to the Region, 32%to Kitchener and 17%to the School Board. F - 62 Interactive Budget Website Summary 1) Responses to making no changes to the proposed budget Respondent No 1 N 2 N 3 N 2) Responses to Alternative Revenue proposals Special Bylaw Sponsorship Mobile User Engineering Subdivision Respondent . Advertising Catering Fees Fees Review 1 N N N N N N N 2 N N N Y N Y N 3 N Y Y N Y Y Y 3) Responses to Strategic Initiative proposals S101 S102 S103 04 Mobile Bylaw Respondent . Technology Data Tree Mtce 1 N N N Y 2 N N N N 3 N Y Y N 4) Respondent comments Respondent Comments I do like this new way of participating in the budget process. Secondly, I think it is very important that our City be fiscally responsible, so limiting the tax increase to 1 about 1.25%is a very worthwhile goal.Thirdly, I voted yes for Proactive Street Tree Maintenance because ourtrees an important contributorto an environmentally friendly city and they add a lot to the beauty of our city. 2 3 F - 63 Allan eaupre' Chartered Accountant Allan Beaupree C.A. 490 Dutton Drive November 25, 2013 suite e3 Waterloo,Ontario N2L 61-17 The Mayor and Councilors of Telephone(519)884-4690 The City of Kitchener, Facsimile(519)725-2484 C/o City Hall, Kitchener, Ontario, It is hard to believe that another year has passed and that it is budget time again. I would be remiss if I did not take the time to participate in the process by making my comments known. They follow the same theme as last year. I believe that the deep recession of 2008 set us on a new and very different course; one that will change the way we live forever. Those that do not adapt or are slow to adapt will be left behind. I see it in daily with my clients. According to the latest numbers some 300,000 jobs have disappeared in Ontario. This should not surprise us in the Region as we see Maple Leaf leaving and Blackberry fighting for its survival. Unemployment will remain high for the foreseeable future. Governments must change if they want their communities to prosper. Rather than following the traditional process of having staff present a budget that they know is too high and council tweaking it to get to an acceptable mill rate, I hope that council will spend more time developing a strategic plan. Develop a plan that looks as far into the future as possible. One that defines what is affordable and what is not. One that stresses infrastructure above all else. One that uses the private sector to carry out services where applicable. One that shrinks the size of government and is respectful of every taxpayer dollar. Since wages and salaries represent a substantial portion of the budget a strong plan will require long and painful discussions with the unions and the staff that they represent. Without these discussions no meaningful change is possible. I am not optimistic about the future of our province. The government of Ontario has to borrow money every year just to pay the interest on our burgeoning debt. Even the finance minister is back peddling from a balanced budget by 2017. The lending community will tire of this lack of action and eventually force the Province into F - 64 balancing the budget. And the Province will react by reducing transfers to municipalities as a way to cut expenditures. There is a tsunami of seniors like me that will be retiring during the next five years. Affordable property taxes will be high on the agenda and with time on our hands we will be vocal and active in selecting a council that shares our vision. For the naysayers that believe change is not possible I urge to look at the companies such as Ford. Prior to the great recession they started to reduce their costs and the price of their cars. They asked suppliers to take a 14%reduction in pricing for several years. The suppliers that adapted thrived; those that said no were left behind. Today the company builds better, longer lasting cars at the same or lower price. My simple advice to you is spend much more time discussing how our city will look twenty years from now, and leave staff to deal with operating issues such as the Boathouse. I challenge you to get out of your comfort zone and really dwell on the future. Demand that staff do the same thing. Redefine what the role of a city government should be given the new demands of an international economy. Have a healthy open debate on what role the private sector should play in providing better services at a lower cost. The Kitchener that I have spent all of my life is has been known for its progressive thinking. Take your leadership to a new level in 2014 and beyond by redefining what city government is. To all of you that have served the last three years thank you. To those of you seeking re- election I wish you good luck. F i � CPA CA F - 65 ISSUE: BD11 —Storm Water Rate Scenarios FUND: Operating DEPARTMENT: INS— Engineering PREPARER: Nick Gollan, Manager, Storm water Utility BUDGET IMPACT: None BACKGROUND: During Operating Budget Review on December 12, 2013, staff was asked to provide storm water projections for a 1%or 2% rate increase instead of 3%. RATIONALE/ANALYSIS: Storm water rates are established based on overall program costs and a 10 year forecast of capital and operating costs (see report DTS-10-100, Appendix B) to provide a sustainable level of service based on the best information available at the time. In October 2013, Council received the Corporate Asset Management Program Update (report INS-13-100) which included a review of storm water assets and the long term (to the year 2093) lifecycle costs associated with maintaining and replacing existing storm water assets.This study included SWM pipes, SWM facilities, and oil-grit separators (OGS), but did not include another significant asset category, stream reaches, due to the availability of information at the time of this study. Stream reaches are a significant component of the overall storm water network and there are ongoing remedial works on stream reaches that will need to be funded in the long term. The study determined the current funding level and 3% rate increases over the next 10 years was adequate to manage storm water assets over the next decade, however a strategy would need to be determined to address deficits that will have accumulated by 2023 in the amount of$24M for SWM pipes, $6M for SWM facilities, and $3.4M for OGS. Having appropriate funding in place to manage the City's SWM assets is aligned with the City's Strategic Plan, specifically being a community that focuses significant energy and resources on becoming more environmentally friendly and having long term corporate financial stability. FINANCIAL IMPLICATIONS: If the 2014 SWM rate increase is less than 3%, it will undermine the ability for the City to responsibly manage storm water infrastructure. Additionally, the utility is currently in a deficit position and projected to be out of deficit by 2017 with 3% rate increases. Reducing the 2014 SWM rate increase to 1% or 2%would extend the deficit beyond 2018 or require the need to defer planned work. As much of the planned work (e.g. OGS maintenance, SWM facility rehabilitation) is a requirement under existing Certificates of Approval (now Environmental Compliance Approvals), not completing this work exposes the City to increased risk and potential fines for non-compliance. Table 1 below shows the ending balance in the SWM Stabilization reserve fund for different rate scenarios of 1%, 2%, and 3% across all years of the forecast. F - 66 Table 1: SWM Stabilization Reserve Fund Projected Balance Rate Increase 2014 2015 2016 2017 2018 3% (928) (1,554) (61) 800 510 2% (1,030) (1,888) (768) (433) (1,414) 1% (1,132) (2,220) (1,466) (1,643) (3,290) RECOMMENDATION: For information. F - 67 Final Budaet Day - Capital Issue Paper (IP) Index Included in IP # Description Proposed Budget? BD20 General Capital Questions No BD21 Council Home Office &Technology Budget No BD22 Public Art Fund Balances No BD23 Fire Communications Equipment No BD24 Park &Trail General Provision Work Plans No BD25 Synthetic Turf Funding Reallocation No BD26 Woodside Park - Synthetic Fields Update No BD27 Cenotaph &Vogelsang Green No BD28 Civic District Urban Square No BD29 Charles & Water Parking Garage No BD30 Traffic Calming Reduction No BD31 Margaret Avenue Bridge Replacement - Funding Sources No BD32 Engineering Studies No F - 68 ISSUE: BD20—General Capital Questions FUND: Capital DEPARTMENT: Various PREPARER: Ryan Hagey, Director of Financial Planning BUDGET IMPACT: None BACKGROUND: During Capital Budget Review on November 21, 2013, staff was asked to provide responses to a number of questions. The questions contained in this issue paper lend themselves to a concise response, so they have been combined into a single issue paper to reduce the number of individual issue papers being provided to Council. RATIONALE/ANALYSIS: 1. What are the capital projects that add up to $68,000 of capital closeouts? Tax Supported Capital Closeouts in 2013 Dept. Div. Description Amount CAO Communications Printing Shop Billing System $40,000 FCS Revenue Cheque Remittance Processing system 19,008 CSD CPS Admin Community Development Infrastructure 6,515 CSD Program Resource Services Graffiti Program 586 CSD Building Kitchener Green Housing Program 2,000 Total $68,109 2. What are the funds in Corporate Plan used for? Funds in this account are used for both ongoing and one-time expenditures related to corporate strategy and corporate culture. Some examples from the past three years include: Ongoing: Leadership Development Organizational Development Employee Culture Survey(next planned for 2015) People Plan — Refresh as well as development and implementation plan Strategic Plan (other than community survey) One-time: Organizational Design Review Regional Economic Development Studies (portion of) F - 69 3. What are the plans for the existing funds and budget for PeopleSoft? The PeopleSoft capital budget covers ongoing expenses for technical and functional training as well as project support required to maintain and upgrade the Human Resources Management System (HRMS). The roadmap for the system outlines a work plan for the next several years to ensure that the limited funds are prioritized and invested carefully. Implementation of the Performance Management module is tentatively planned for 2014 for which training and project support will be required. Other upcoming projects such as the Absence Management and Workflow modules will require similar investment. 4. Confirm the amount of the proceeds from selling the Elmsdale property that was included in the budget for the Kitchener Operations Facility (KOF). What is the expected surplus/deficit on this project? The Kitchener Operations Facility capital project account is currently showing a deficit of approximately$7.5 million. The sale of two properties; Elmsdale (net proceeds estimated at $7.4M) and a small portion of Battler Yards remain outstanding. In addition, the City has yet to receive the grant portion of the funding allocation from the Green Municipal Fund as it is subject to the approval of final environmental reports. It is reasonable to expect that the deficit currently shown in the KOF capital account will be eliminated through a combination of land sales and grant dollars received. S. Provide a listing of ongoing creek rehabilitation projects planned for 2015. There are two anticipated projects that will use this funding and are described below: 1) Hidden Valley Creek— Hydraulic Study required to determine the impact of future development on existing watercourse due to increased runoff. 2) Balzer Creek—Sanitary sewer exposed due to the movement of the existing creek over the existing sanitary sewer alignment posing a threat to sanitary sewer infrastructure, private property and the natural environment in the event of a sewer failure or further erosion in the creek adjacent to private property. The costs for these two projects will be reviewed and updated as part of the 2014 development Charges Background Study update. 6. How are Quality of Estimates used in budgeting? How can the City better estimate project costs to mitigate overspending in future projects? For Engineering/Utility projects, contingencies are included in the budget figures. This means that if a project is noted as a Class C, the budget includes a contingency amount of 40%-60%. As these projects move closer in the capital forecast, the cost estimates are refined and updated to reduce the amount of contingency required. If total costs are revised downward, the capital transfer can be reduced or budget room be made available to address other urgent capital requirements. For non-Engineering/Utility projects, contingencies are not included in the budget figures. This means that if a project is noted as a Class C, the budget does not include a contingency amount of 40%-60%, and there is some risk that the actual cost could be higher than budget. As these projects move forward in the capital forecast, the cost estimates are refined and F - 70 updated. If the full contingency is in fact required, other projects would be re-prioritized to make the additional funding available. To help prepare budget estimates, staff review recent tenders to better understand current costing and/or contract for outside expertise in costing to help prepare budgets. Staff will continue to use these measures and adjust project budgets as better information becomes available. 7. Provide revenue and expense totals for all reserve funds. This information is attached below in standardized categories of revenues and expenses. FINANCIAL IMPLICATIONS: None. RECOMMENDATION: For information only. 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M N R LL (7 ++ V r V N 1� O r- Or- O O O c r- O LO (O T LO LO O O 0) co LO LO I, M (0 r M M I- L T r V Q L[) N M M C LL) N (fl 0 a W N O O CO w M L[) L[) CO L() r Co CO O LC) w T M O 0 I- � r- O O N LC) M O CL r r V c � Lo r M M co co M 0) r- 0 O CO O CO V V Q r N d H W > W _0 J O LL W F- > O LL + d CC W U) N C N U) N Q CD 0 CD 0 to U) O U OC aa) a ro (1) ''� m m C v W m E E E 0 d O U K d 7 m N .F .F .F C It y 0 0 0 Q W lC LL C m W Z S r � � c w c z c > j N L y > c c c °' u5 - 0 c c c u5 - v ai E 'x W a y ro ro ro x ro ro ro m c m cc O � HHH � Ocn LU M0cn Z W GC .2! .2 r 0 N Q m U o W F - 76 ISSUE: BD21—Council Home Office &Technology Budget FUND: Operating and Capital DEPARTMENT: CAO — Mayor &Council PREPARER: Roger LeBrun, Manager of Accounting BUDGET IMPACT: None BACKGROUND: During Capital Budget Review on November 21, 2013, staff was asked to provide information that summarizes the budgets and costs to date for the Council Home Office &Technology Budget. RATIONALE/ANALYSIS: Operating Budget: Each year, the operating budget is determined by Council and this amount is equally distributed and capped per member of Council. Any surplus balance at the end of the year is not carried forward to the next year. The table below shows the annual budget and spending for all members of Council for the current term of Council. Note that the annual budget was reduced in 2013 by$6,000. lip lip 2616 (1 rnonth) 2.611 261.2 261.3 YTD Budg'e't for Mayor and Councillors 3,,36,9 46,,425 46,,425 34,,425 Less.Olperatiiing Expenses 738 22„211. 23,688 22,914 Surplus (defdidt) 2„631 18�,214 17,,337 11,,.511 Capital Budget: For each 4 year term of Council, a total capital budget is established and funded in the first year. The amount is capped per member of Council and any unused portion is carried forward to the next year. At the conclusion of the 4 year term, any unused funding is closed out to capital surplus. The table below shows the total 4 year budget for all members of Council and the spending by year. Budget for Mayor and Councillors 58,316 Less 2010 Capital Purchases 1,716 Less 2011 Capital Purchases 18,933 Less 2011 Capital Purchases 6,651 Less 2013 YTD Capital Purchases 2,371 Total Spending To Date 29,670 Balance Remaining 28,646 F - 77 FINANCIAL IMPLICATIONS: Any reduction to the operating budget would reduce the tax levy by that amount. Any reduction to the capital budget would reduce the tax levy by% of that amount, since the impact would be spread over each of the 4 years. For example, reducing the capital budget by $8,000 for the term would result in a tax levy reduction of$2,000. RECOMMENDATION: For information only. F - 78 ISSUE: BD22 — Public Art Fund Balances FUND: Capital DEPARTMENT: CAO— Economic Development PREPARER: Silvia Di Donato, Manager, Arts and Culture BUDGET IMPACT: None BACKGROUND: During Capital Budget Review on November 21, 2013, staff was asked to provide additional information about the existing balance related to Public Art. RATIONALE/ANALYSIS: The Public Art capital project has a current balance of$601,836, which is subject to the City's Public Art Policy (1-816). The Public Art Policy governs the use of the Pubic Art Fund balances, specifically directed as a 1% allocation of qualifying capital projects. The policy defines Public Art as original art works, permanent or temporary, in any medium or discipline, placed, incorporated or performed in publicly accessible indoor or outdoor locations in response to the site and for the benefit of the public. Public Art Policy aims to contribute to the City's cultural identity and its strategic priorities resulting in better quality of life, increased social cohesion, good urban design, broad community involvement, increased potential for economic development, and public access to the arts. The vision statement for Public Art in Kitchener was created through community consultation: "Kitchener is a vibrant community where the best forms of public art explore our diversity, tell our stories, and welcome artists to use creativity and imagination to make unique landmarks and beautiful gathering places." The existing balance in the Public Art capital project represents a value of 1% of qualifying City capital projects. The existing balance in the project relates primarily to timing differences between when funds are allocated and when they are spent. In other words, balances accumulate over time and are spent as capital projects are implemented, in accordance with 1% allocation stated in Public Art Policy. Public Art funds can fall into one of two categories. • Allocated 1% Public Art Projects • Consolidated Fund 1% Public Art Projects Allocated 1% Public Art Projects: As per policy, funds are transferred into the Public Art capital account at the outset of related capital projects. As public art projects can take multiple years to complete, the funds can remain unspent in the Public Art capital account for a number of years. Projects are recommended for council approval by ACAC (Arts and Culture Advisory Committee) through PAWG (Public Art Working Group) review. The table below presents a list of projects that are in progress across the City. Allocated 1% Public Art Projects Existing Balance Civic District Garage (128,400) Kitchener Public Library (,70,015,) Other: Doon Golf, Bridgeport Community Centre, temporary installations, City Centre Parking (50,427) Total Balance (248,842) F - 79 Consolidated Fund 1% Public Art Projects: Based on the Public Art Policy, large construction projects contribute a portion of their Public Art budget to a consolidated fund. These funds are accumulated over time to develop more impactful projects, rather than developing small installations associated with smaller projects. The fund is used 'top up' smaller projects and to complete the priorities set out in the Public Art Master Plan. The current allocation plan for these funds is contingent on three factors: First, the timing of projects tied to public art will cause a time lag in the expenditures from this fund. Second, the separate annual capital funds for restoration and annual maintenance of the current public art collection requires increased allocation. In 2013 an assessment of the public art (30 items) and the industrial artifacts (22 items) collections was undertaken as a preliminary step to determine realistic maintenance allocations in the future. Based on these inspections, restoration and maintenance would require an estimated transfer of $100,000 for both public art and industrial artifacts. Third, in order to determine the best use of these consolidated funds, there is a planned Arts and Culture Strategy for 2014-2015. This strategy will include consultation with stakeholders for elements such as public art, arts programming, business development in arts sectors, including digital content, design, music and film. It should be noted that the fund is not likely to accumulate as quickly over the next few years, since stimulus funding from other levels of government created a greater than usual capital project investment in recent years. For this reason, careful planning for future funding and implementation is intended as part of the Arts and Culture Strategy. The strategy will also include a review of the Public Art Five-Year plan to aid in fund allocation that aligns with community needs and policy direction. The table below presents a list of projects that are in progress or to be allocated across the City. Consolidated Fund Public Art Projects: Existing Balance Public Art Collection Restoration & Maintenance (estimated transfer to maintenance fund) (100,000) Fairway Road Extension (in progress) (74,000) Community Proposals (e.g Planning Around Rapid Transit Station (PARTS) CSD- 13-104, COKE-13-061, ROW Temporary installations, community murals, sponsored Statue Project, Youth Video, Bike Rack, Art in Community Centres) (178,995) Total Balance (352,995) FINANCIAL IMPLICATIONS: None. RECOMMENDATION: For information F - 80 ISSUE: BD23 — Fire Communications Equipment FUND: Capital DEPARTMENT: Community Services - Fire PREPARER: Tim Beckett, Fire Chief BUDGET IMPACT: None BACKGROUND: During Capital Budget Review on November 21, 2013, staff was asked to provide details of the 10 year replacement plan for Fire Communications Equipment. RATIONALE/ANALYSIS: In order to maintain an effective and efficient emergency service communications centre to meet the needs of citizens, timely replacement or upgrades of critical components are necessary. In the past, the City has reactively pushed off upgrades or taken funding from other sources (such as computer maintenance) to fund these expenditures. The proposed Fire Communications Equipment capital project proactively ensures that a lifecycle funding model is in place to replace/upgrade equipment at the end of its useful life. A multi-year lifecycle funding model has been used successfully to manage the replacement of Fire Major Equipment and Fleet, and that method is being applied to manage the replacement of Fire Communication Equipment. The details of the Fire Communications Equipment capital projects are shown on the attached appendix, but there is no net budget impact as all funding has been reallocated from existing/planned capital projects. The beginning balance of$185,548 comes from the existing balance in the Dispatch Upgrade capital project, while the transfer from capital in 2014 to 2023 is being reallocated from other Fire capital accounts that were earmarked to be used for these purposes. FINANCIAL IMPLICATIONS: None. RECOMMENDATION: For information. F - 81 a, 3 v � O O O O O O an a 00 v 0 m v rn n v �o an v ry n v rl 0 rl m 00 O ti m 00 00 c-i 00 It 17 ti 0 I� m N ., 0 m rn Ln ri ko of rl ri rl rl m rl nn m ry ti m r-4 m W v �o ti v ° 3 v W U m O N O O ll1 0 l0 00 to O 00 -O O E to O rl O M W M O V � �0 � y ry 00 I� l0 M V O Cif m L 0 0n ? 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RATIONALE/ANALYSIS: Annually staff update work plans for park and trail general provision accounts, these accounts include: • MULTI-USE PATHWAYS &TRAILS Development of the city wide trail network (Community Trail General Provision) as per the direction of the Multi-Use Pathways and Trails Master Plan (2012). • PLAYSTRUCTURE REPLACEMENTS Annual replacement of park playstructures beyond their 20 year life cycle. • NEIGHBOURHOOD PARK DEVELOPMENT Development of new Neighbourhood Parks (General Park Provision) as forecasted by the Kitchener Growth Management Plan (2013-2015). • NEIGHBOURHOOD PARK REHABILITATION Renewal of existing Neighbourhood Parks within mature neighbourhoods in the central area of the city as per the direction of the Parks Strategic Plan (2010). • DISTRICT& CITY-WIDE PARK DEVELOPMENT Annual upgrades to district parks, including sportfields (Major Park General Provision) and the ongoing upkeep and upgrades to City-Wide Parks (General Provisions) as per the direction of the Parks Strategic Plan (2010) and Leisure Facilities Master Plan Update (2013). Note: The above work plans are attached separately to this issue paper. Each work plan includes a project list of short-term projects (2-3 years) and long-term projects (7- 10 years). A city key map is included on the work plan to identify project locations. FINANCIAL IMPLICATIONS: No change to the existing 2014-2023 capital forecast. RECOMMENDATION: For information only. F - 83 MULTI-USE PATHWAYS & 'TFUILS UPDATED DECEMBER 2013 COMMUNITY TRAILS GENERAL PROVISION FOREGASTED(201441023I PLANNED(BEYOND 2023) 2014 11111 2023a 2023. 1 Conerriciril 21) Dux rmirrily Trail-IFranktl n SP-N..It Carbor PI In(30—a SI 219 Sir-br"g Crook FisJ­Hall Rd In Gas Enaemu11c1. 12 l sdduo Wua(4 pkari'marl 2 2, (Tmmunity Trail-SUl Dr,Na l Cwlils V OwNe Cr. 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Fistier Hallman-Huron NaWraj Area i Imp 123 Water Been CRT-Kal Sit, ren Hur.;7raroGan,.1,a T.J-H—,Rd ioMi11 Ps,,k[3,- 124 1:2,r Inw,Horse/Traits Canadm TmA•CournwTI Aw 0 fill A", 126 Backer E swats Tralls A, 127 WaBat 81 CRT Scouts property OD Buldp Sk 1.25 bran Hl Frns(cunm Trni-Mill!Pone[), i.5 al I A 'N' 920 LEGEND A2 7 '972 TYPE 1 MAIL NETWORK r 5 ------ TYPE 2 TRAIL NETWORK 1 2f, Rl 1dN Y&AR COMMUNITY TRAIL DEVRATTIPMF.iluP PORR'ASt IS S WIKIF.Co(0 RLWS414 BASED ON ANNUAL BUDGET AFIF Rl AND RE FRIORI-Il OF TW&SEGMENTS SWTIWN ASME KifICHENF.R. F - 84 PLAYSTRUCTURE REPLACEMENTS PLAYSTRUCTURE UPDATED DECEMBER 2013 REPLACEMENTS CAPITAL FORECAST 2014-2023 PARK(2014-2016) YEAR PARK(2017-2019) YEAR PARK(2020-2023) YEAR ill Victoria Park 2014 3.1 Carly&Park 2017 61 Cedar Crest Park 2020 2015 3,2 Chandler Park 2017 6.2 Cancauha Park 2020 112 Eby Park 2014 3.3 Eastforest Park 2017 6.3 Highland Courts Park 2020 1.3 Tecumseh Park 2014 3.4 Forest West Park 2017 6.4 Overdo Park 2020 2 1 Kiwanis Park 2016, 3-5 Voiri Park 2017 66 Timilberiare Park 2020 2.2 Centreville-Chicopee Park 2016, 41 Country Hills Park 2018 7.1 Fenwick Green 2021 23 Upper Canada Park 2016 42 Highbrook Park 2018 72 Hillside Park 2021 24 Crosby Park 2016 43 Laurentian Park 2018 73 Major Park 2021 2.5 GildnerPark 2016, 44 Vanier Park 2018 74 Willowlake Park 2021 45 Wheatfield Park 2018 7.5 Timm Park 2021 46 Knollwood Park 2018 82 Bruburcher Park 2022 51 Wadau Woods Park 2019 83 Guelph St.Park 2022 5,2 Sandhills,Park 2019 8A Lips Park 2022 53 Resurrecdon Park 2019 2 1 99 Civic Park 2023 5.4 Wilson Park 2019 4 912 Ferrer Park 2023 5,5 Windrush Park 2019 93 Heritage Park 2023 94 River Ridge Park 2023 M Sylvia Park 2023 1.4 4.6 a ,-,fir F oii e2 35 s4 'w A ........ . .... 2 Ki -*11ENER F - 85 NEIGHBOURHOOD PARK DEVELOPMENT UPDATED DECEMBER 2013 GENERAL PARK PROVISION GENERAL PARK PROVISION GENERAL PARK PROVISION PARRS COMPLETED•.2018 CAPITAL FORECAST 201.4.2015 CAPITAL.FORECAST 101 1 1 Fellowflold Community Park 21 Tomplewood Community Park 31 Ao N&TwestarCOmmuntlty,2 Community Part.,t 1.2 Forese Crack Community Park 2.2 City Centro Community Park QF..Oh Siitle) Pottle 3,.2 Banker Estates Communiy:.2 Cormmunity Parks,6 1,3 Forces T.Cmrnmunity,Park 2.3 1 Oaks Community Park Psrkekles 14 Tit Green 24 Groh ParlketPe 31 Behr Community:l Community Park 25 Hidden Walley Commonly Park 3,.4 Huron Road Urban Green 2,5 Oscar Leader Pauli 15 Blair Creek:3lParkzltes 2.7 Old Collage Parkena 3.6 Brigedoan South Community,2 Community Parks 2.8 Pioneer Grove Parkette 3.7 Grtend River(Flats(Rockway Hindi 2 Community 2.9 Robert Parse Green Parks.,3 Pod,ones 2.10 Rosemount Community PacklNoQrte[lame SaPoaoll 3'.8 Huron Words Cummurlty.1 Community Park(Talon Cresl,1 Parkei[a 211 Schre.rg Be.Parke14e 3.9 Mornsein Road Community Park 2.12 Sophie Green. 3.18 Rosenberg Commum^:T Community Parks,multiple 2.13 Slae4Yer Woods Park Parkettes 2.14 Seabrook Urban Green I&2 3.91 Sarodra Sprop Parkelle, 2.15 Seabrook and l.udolph Neighbourhood Park 8.12 West Oak Trail.Urban Green 2.16 Ludellph Gre®sway s 313 Thomas Ski 2 Community Parks 2.17 Blair Creek Community Perk(Monarch) 3.114 Walleyscaps Panels +" 27 r 3.15 Weinhaviii Beside Gonnn iryr.t Community Park r 1ar1'nh ✓ri0r 819 r "rb1✓ 4�^' 23 ��Pr�h //i�1,r✓� iiri i/� m /'✓urn� y✓liiiiiiiii ,rrl' a r%�////%✓//i ✓✓�./��; l//�'" �+„� d rr4ua T �} lull/ 3 9 ;' iii ii tr e *✓r i� t uo ' iii 2 U7 3118 21 y.. 215 y r 13 4 215214 12 T`1 B 5 rr r 1 2 iii///������������/iii��ii������ 3B r' KT�- ER F - 86 NEIGHBOURHOOD PARK REHABILITATION UPDATED DECEMBER 2013 PARK REHABILIATION PARK REHABILIATION CAPITAL FORECAST 2014-2016 YEAR CAPITAL FORECAST 2017-2023 1.1 Charles Best Park 2014 4.1 Arnold Park 12 Glendale Park 2014 42 Belmont Park 13 Stabler Green 2014 4.3 Cherry Park 2.1 George Lippert Park 2015 4.4 Concordia Park 22 Homewood Green 2015 4.5 Duke Park 3.1 Growski Park 2016 4.6 Highland Courts Park 3.2 Gill Green 2016 4.7 Hillside Park 4.8 Kaufman Park 4.9 Major Park 4.10 Maple Lane Green 4.11 01 Park 4.12 Sandhills Park i. 4.13 Scharlach,Green yiiiiiiiiiiii 4,14 Uniroyal-Goodrich Park 4.15 Wallenberg Park 4.16 Weber Park Note the parks abolo are Psrel aiphababluny , R tGHgOU 000 PARK 4.9 h4 0 REHABILITATION AREA 4 iiii ole;;171� �e.......... ............... .......... ............... KITOTEN'L±/ F - 87 DISTRICT & CITY WIDE PARK DEVELOPMENT UPDATED DECEMBER 2013 MAJOR PARK GENERAL PROVISION CITY-WIDE PARKS GENERAL SKATEBOARD PARKS PROVISIONS COMPLETED 2013 LEAF FUNDING,-COMPLETED 2013 2014-2016 1.1 Meirtzinger Park-Replace broken 1"water main,with 2'water 4.1 Kiwarns Park.-tree inanting 36 Fischer Park-skatepark design(2014) main 4.2 Huron Natural Area-Plantation final �6 Fischer Park-skate auk construction f2015) 1,2 Peter Hallman Bailyard-Backstop and fencing replacements 2014-2016 3 McLennan Park-wq parl,lighting 2016-2017 21 BndgppDr(-Cii entrance sign 3 McLennan Park-tree plai 2.5 Supintrut Opbm,A Spusl5held-skatep.,k design(2015) 22 Brefthaupt Park-Repacesitant backstops diamonds 112 4.4 Victoria Park-Commons irrigation 2-3 Southwest Optimist Swirlsfied-skategark construction f2017p 23 Southwest Optimist Sportsfieds-sporisheld masterplan and LEAF FUNDING,-2014 construction 4.1 Kiwaria Park-Ponic shelter 24 Pete,Hallman Balitimid-Light pole retrofit 4.2 Huron Natural Area-natural playground 2.5 Voisin Park-Ball diamond ouffield fence connection 43 McLennan Park West side trail 2017-2019 44 Vicious Park-Mourk garbage containers, 31 Menu Park-3 mini soccer fields turf rehab 2015 32 Bridgeport Spandisfield-Civitair 3 oulfield fence 4.3 McLennan Park-asphalt paving 33 Bridgeport Sporefield-Joe 71holl buffed forcing 4.4 Victoria Park-asphalt paving 34 Bridgeport Spornsfield-Shown I and 2 turf rehab 4.1 315 Eby Park-new Tournament goals and turf rehab 3.8 Fischer Park-Upper and lower soccer hold turf Theo 37 idlewood Park,Edit diannond Infleldl,sower and ball turf rehab 38 Laurentian Park-2 sower fields turf rehab 39 Mathison Park-Mini sower fields furl rehab 310 Rosenberg Perk-0jamord 41 lighting retrofit 311 Weber Park-Ba�l,l infield rehab 312 Westbeghts Park-Sower field turf rehab 12 'WA 3,13 Wilson Park-Backsides and fencing diamond 3 and 4 3 14 Woodaide Park-Hr hlland entrance lilt iii' Secondary Fields-Straighten,repair,and paint socceilfootball goals 52 313 NF, (D i 31 'A KTCH NCR F - 88 ISSUE: BD25 —Synthetic Turf Funding Reallocation FUND: Capital DEPARTMENT: Infrastructure Services - Operations PREPARER: Dan Ritz, Supervisor Design & Development (519-741-2600, ext. 4348) BUDGET IMPACT: None BACKGROUND: During Capital Budget Review on November 21, 2013, staff was requested to provide options on reallocating the 2014 portion of Synthetic Turf funding ($488,000) to 2014 Parks &Trails projects, with matching Park &Trail funding ($488,000) back to Synthetic turf in later years. RATIONALE/ANALYSIS: Synthetic Turf funding has been forecasted in the 10 year capital budget (shown below) for the conversion of existing natural turf fields to synthetic turf as per the direction of the Parks Strategic Plan (2010), recommendation 4.2. $488,000 of C/C funding is identified in 2014. Capital Budget Forecast 2014 2015 2016 12017 2018 2019 2020 2021 2022 2023 Totals Synthetic Turf—C/C 488 539 550 1577 Synthetic Turf—DC 573 633 645 1851 Note:all values shown in thousands OPTION 1 (Existing Forecast— No Change) That synthetic turf funding remains in 2014 as per the current capital budget forecast. Design and construction drawings for the conversion of sportfields would proceed in spring 2014, tender in summer 2014 and construction occurring in the fall of 2014 and spring of 2015. OPTION 2 (Reallocation of 2014 Synthetic Turf Funding) That synthetic turf C/C funding for 2014 is reallocated to 2015 & 2016. Design, tender and construction for the conversion of sportfields would occur throughout 2015. Matching park C/C funding would be reallocated to 2014 as identified below. Impact to staff resources, minimal. Proposed Changes 2014 2015 2016 Comment Synthetic Turf Sportfields (488) 338 150 Reallocate 2014 C/C Funding to 2015&2016. Community Trails 0 (0) (0) Trail Funding in 2015&2016 is below the recommended Trails Master Plan level of$700,no reallocation is recommended as significant funding is still available from 2013 LEAF allocation. Playground Features 158 (0) (18) Restore 2014 playground funding that was reallocated to McLennan Park Paving project. McLennan Park(Asphalt) 190 (190) (25) Move McLennan Park paving forward to 2014. Emerald Ash Borer 100 (50) (50) Reallocate EAB funding recommended to accelerate tree removal activities. General Park Development 0 (58) (57) Reallocate a portion of the General Park Development funding for 2015/16 to Playground Features. Victoria Park(Asphalt) 40 (40) Move Victoria Park paving forward to 2014. Difference 0 0 0 No Net Annual Impact FINANCIAL IMPLICATIONS: No net impact annually to capital budget. RECOMMENDATION: For direction by council. F - 89 ISSUE: BD26 Woodside Park—Synthetic Fields Update FUND: Capital DEPARTMENT: Infrastructure Services - Operations PREPARER: Greg Hummel, Manager Park Planning, Development and Operations BUDGET IMPACT: None BACKGROUND: During Capital Budget Review on November 21, 2013, staff was asked to provide information on the status of the synthetic fields at Woodside Park in order to determine if the City is meeting its projected targets. RATIONALE/ANALYSIS: Grass Fields versus Synthetic Fields The City's Al and A2 grass fields are booked out at a maximum of 450 hours of use per season (May to October). These hours have been set because any additional use above these hours would cause greater wear and tear on the grass and require additional operating costs to repair. While under repair, there is a continuous loss of revenue. Each year it costs $30,000 to maintain an Al or A2 field. Through the cultural practices, mowing and repair, the City is able to meet the level of service currently expected for these grass fields.To construct a natural grass field costs$400,000. By comparison, replacing a natural grass field with a synthetic field would increase the available hours of use from 450 to 2000 hours per season (March to December). As well, the operating expenses at the synthetic field would be reduced to $5,000 per year since there would be no need to cut, fertilize, aerate or repair the wear areas in the field. To construct a synthetic field costs$1,200,000. The following table provides a comparison of Al and A2 Grass Fields versus Synthetic Fields (2013 $'s): Grass Field Synthetic Field Useable Hours per season 450 hours 2000 hours Operating season May-October March-December User Fees (per hour) $57.45 $78.80 Maximum Revenue (per season) $25,852.50 $157,600 Operating Cost (per season) $30,000 $5,000 Capital Cost $400,000 $1,200,000 Over a ten year period, the synthetic field will have collected $1.576 million dollars of revenue through user fees and will have saved $250,000 in operating expenses. The additional revenue and operational savings more than offset the additional capital expense of the synthetic field development. Woodside Park Woodside Park synthetic fields were completed and opened in March of 2012. The fields continue to become more popular within the community as more groups are aware of the fields and additional booking requests continue to rise. Due to the impact of the fields on the neighbouring townhouse complex, concessions were made to close field #2 at 10:00 pm nightly and to restrict the start times on weekends to 9:00 am. These concessions have reduced the primetime hours available by 200 hours each year. These concessions impact groups that typically play 7:00-9:00pm and 9:00-11:00pm so that their teams are in one place and they use the same referees. With the adjustment to field #2, the games are at 6:00-8:00pm and 8:00-10:00pm and the times do not meet their required schedules. These groups have gone elsewhere in the city or to other municipalities to play. F - 90 A summary of hours booked and revenue generated at the Woodside fields is show in the table below. Hours Revenue 2012 2013 2012 2013 Woodside 1 941.75 987.00 70,695.78 72,273.73 Woodside 2 759.50 775.00 57,030.45 57,532.16 Total 1,701.25 1,762.00 1127,726.23 129,805.89 The fields are being used by Minor and Adult Soccer, Field Hockey, Field Lacrosse, Disc Sports, Football and Rugby groups both during the week and for tournaments and regular league play on weekends. Adult independent leagues are inquiring about available field times for the 2014 season. Prior to the opening of the fields, it was anticipated that the target hours for Woodside Park would be 1200 hours per field for year one and increase to 2000 hours per field by year five. As more and more groups are becoming aware of the availability of Woodside Park Synthetic Fields, additional requests are being made for field bookings and the City has seen an increase from 2012 to 2013 and is expecting more in 2014. In two years at Woodside Park, the first field booking has occurred in the middle of March (snow still on the ground until mid-April 2013) and the last booking was December 3rd. The City's grass fields do not open for use until May 1St and are closed by the end of October to eliminate the damage to the grass. In 2013 the City had had to close its grass fields 12 times due to inclement weather and to minimize the damage to the fields. With the synthetic fields, the fields were used through all bookings and closing of the fields was not required. Staff has been working with the school boards to look at opportunities for the shoulder times from mornings through to 3:00-5:30pm additional use and revenue. Staff is also looking at opportunities for daytime bookings through the summer months for camps, exercise groups and other recreational programs. FINANCIAL IMPLICATIONS: None. RECOMMENDATION: For information. F - 91 ISSUE: BD27 —Cenotaph &Vogelsang Green FUND: Capital DEPARTMENT: Infrastructure Services - Operations PREPARER: Dan Ritz, Supervisor Design & Development (519-741-2600, ext. 4348) BUDGET IMPACT: None BACKGROUND: During Capital Budget Review on November 21, 2013, staff was requested to consider whether the Cenotaph site rehabilitation scheduled for 2017 could be advanced to 2014. RATIONALE/ANALYSIS: The Cenotaph and Vogelsang Green are located on federally-owned lands along Duke Street between Frederick and Queen Streets and have been identified in 2017 for rehabilitation due to deteriorating landscape structures on the site. These areas currently serve as public/urban green space in addition to the Cenotaph serving as the location of the annual Remembrance Day ceremony. These sites are currently maintained year-round by the City. Light Rail Transit (LRT) & Street Reconstruction The proposed northbound corridor of the LRT project travels along Frederick and Duke Streets with a proposed platform on Frederick Street. It is anticipated that the curb/sidewalk alignment at the corner of Frederick/Duke and along Frederick will be altered in configuration and final grade at the Cenotaph site. In addition, the Duke Street reconstruction works originally scheduled by the City's Engineering division will be coordinated within the LRT work plan for 2014 through 2016. LRT work adjacent to the Cenotaph site is scheduled to be completed by late 2016, allowing Cenotaph site work to occur in 2017. Final Cenotaph designs will match up to the new curb alignment and grades. Capital Budget Impact Currently, the Cenotaph and Vogelsang projects are identified simultaneously in the capital budget for economy of scale in 2017 at $175,000 each. Final designs have not been completed and it is anticipated that detailed design and costing would be done prior to the 2017 capital budget to confirm the budgeting. In order to move these projects earlier in the capital budget, other more prioritized park and trail projects would need to be reallocated out to 2017. FINANCIAL IMPLICATIONS: No impact to 2014-2023 Capital Budget if projects remain in 2017. RECOMMENDATION: That the Cenotaph and Vogelsang Green rehabilitation projects remain scheduled for 2017 as currently identified in the capital forecast. F - 92 ISSUE: BD28—Civic District Urban Square FUND: Capital DEPARTMENT: Infrastructure Services - Operations PREPARER: Dan Ritz, Supervisor Design & Development (519-741-2600, ext. 4348) BUDGET IMPACT: None BACKGROUND: During Capital Budget Review on November 21, 2013, staff was asked to provide an update on the surface area above the parking garage next to the Kitchener Public Library and funding options for future development of the Urban Square. RATIONALE/ANALYSIS: The Civic District Vision & Master Plan The Civic District Vision & Master Plan (May 2009) provided the development of a greater vision for the Civic District based on the findings of the visioning exercise, that focused on enhanced arts, cultural, educational and related uses within the Civic District. Included within this vision was an Urban Square, located at the centre of the Civic District. b / District ILcnlc,�-Term Master Plan - Urban Square fB - Kitchener Public Library C Centre in the Square/KWAD D-Registry Theatre r. E- Future(Buildings Parking Garage The underground parking garage is currently under construction and an interim grassed area is proposed at the surface of the parking structure.This surface work is anticipated to be completed by June 2014 and in the short term will function as an informal park space. Included in the space will be a sidewalk link between Centre in the Square and the Kitchener Public Library with access to the underground parking structure. Urban Square The future Urban Square lies at the centre of the Civic District.The square is approximately 2,000 to 3,000m2 and located above the future underground parking garage, adjacent to the KPL, Regional Building and Civic Centre Park. The goals of the new square are to create space for people for a variety of daily activities, community gatherings, performances, arts, &festivals. F - 93 In late 2009, a public consultation visioning exercise concluded, identifying 3 preferred concept plans: Concept#1: an eye for art (urban plaza, seat walls, amphitheater, natural garden, tree wall) Concept#2: the creative culture gardens (pathways to success, sculpture & reading gardens) Concept#3: the flow of creativity(urban plaza, commons, reading area & artistic feature wall) Final design and costing for the urban square has not begun. In comparison, similar urban squares range from $450 to $850/m2 in cost depending on the features and materials. Based on the size of the City's location, this could equate to a cost in the range of$0.91VI to $2.6M. Urban Square - Next Steps Upon completion of the parking garage interim surface use, staff will re-examine the potential opportunities and will bring forward recommendations for the long term development, design, timing and estimated budgets for the urban square, including opportunities to partner with other Civic District stakeholders. FINANCIAL IMPLICATIONS: Information to be brought forward during the 2015-2024 or 2016-2025 capital budget process. RECOMMENDATION: For information only. F - 94 ISSUE: BD29 —Charles &Water Parking Garage FUND: Capital DEPARTMENT: Infrastructure Services—Transportation Services PREPARER: Justin Readman, Director,Transportation Services (519) 741-2200, ext. 7038 Paul McCormick, Manager, Parking Enterprise (519) 741-2200, ext. 7155 BUDGET IMPACT: None BACKGROUND: During Capital Budget Review on November 21, 2013, staff was asked to provide information on the impact of removing the Charles & Water Parking Garage from the capital forecast. RATIONALE/ANALYSIS: The City of Kitchener has identified the potential need for a parking garage near the corner of Charles Street West and Water Street South. It is expected that existing surface parking will satisfy the short term parking needs in the Innovation District, but that future development and employment growth in the nearby area will create a need for additional parking. The City currently operates approximately 145 parking spaces spread over two surface parking lots within the Charles & Water block. As well, in 2010, Council approved the development of temporary public parking lot on the former Bramm Street Yards site. This parking is considered temporary as the long term plan for the Bramm Street Yards site is redevelopment. The original need for the Charles & Water parking garage did not include the consideration of Light Rail Transit (LRT). As LRT becomes operational and a better understanding for the type and scale of development through the City's Planning Around Rapid Transit Stations (PARTS) studies, the need for this garage should be revisited. A needs assessment should be completed in 2018. FINANCIAL IMPLICATIONS: There is no immediate financial implication to the 2014 budget as the Charles & Water parking garage is planned for 2023 and is only tracked as a reminder of the potential parking development opportunity. RECOMMENDATION: That the Charles & Water parking garage remain in the capital budget forecast pending completion of a needs assessment to validate the requirements in 2018. F - 95 ISSUE: BD30—Traffic Calming Reduction FUND: Capital DEPARTMENT: Infrastructure Services—Transportation Services PREPARER: Justin Readman, Director,Transportation Services (519) 741-2200, ext. 7038 BUDGET IMPACT: $56,500 decrease BACKGROUND: During the 2011 budget, Council increased the City's traffic calming budget to allow for the completion of 4 traffic calming projects per year. The proposed 2014 traffic calming budget is $226,000 per year. As part of the traffic calming policy update presentation to Special Planning and Strategic Initiatives committee on November 25, 2013 staff were directed to report back on the impacts of reducing the number of traffic calming projects per year from 4 to 3. RATIONALE/ANALYSIS: Staff has reviewed peer municipality groups to determine the number of traffic calming projects completed per year and their associated budget. Each of the peer municipalities do not have a target number of traffic calming projects per year, however the associated budgets are as follows: • Brampton - $250,000 • Cambridge - $0 • Guelph -$ 80,000 • Hamilton - $278,000 existing, $370,000 proposed for 2014 • Kingston - $220,000 in 2013, $230,000 proposed for 2014 • London - $125,000 • Waterloo -$100,000 • Windsor- $75,000 proposed for 2014 While it is difficult to compare traffic calming budgets between municipalities, due to differences in localized traffic issues, it appears that the budget allocation for Kitchener is slightly higher than peer groups. A reduction to reflect 3 traffic calming projects per year may bring Kitchener in line with other peer groups. Alternatively, Council could direct staff to reduce the number of projects per year while maintaining the existing budget allocation. There is a desire from members of the community, Emergency Medical Services, Transit and members of council to seek alternatives to traditional speed hump designs. These measures are more costly to implement. For instance, the construction of a traditional speed hump costs approximately$5,000, speed cushions (which permit emergency vehicles to pass at greater speeds) cost approximately$6,000 and a chicane costs approximately$20,000. A movement towards more progressive traffic calming measures will have an overall impact on budget requirements. F - 96 Based on the draft proposed traffic calming policy, a reduction in the number of traffic calming projects per year would increase the time to complete the list of qualifying traffic calming projects by 4 years (to a total of approximately 16 years based on the current list of eligible projects). A reduction in number of projects would allow staff to focus efforts on other policies and programs that have been delayed due to lack of staffing resources. A third alternative is to maintain the status quo and have staff report back at a later date. This will allow staff to better gauge the cost impacts of new traffic calming policy over the next year. FINANCIAL IMPLICATIONS: Should council choose to reduce the number of traffic calming projects from 4 to 3 per year and the associated budget then the capital forecast would be reduced by$56,500 over all years. This project is funded from the Capital Pool, so any decrease to the budget would reduce the tax rate increase. However, the cost to implement traffic calming measures in the future will likely increase as more progressive measures are installed. An alternative could be that Council direct staff to reduce the number of traffic calming projects to 3 per year while maintaining the existing budget to accommodate the implementation of more progressive traffic calming measures. RECOMMENDATION: For information. F - 97 ISSUE: BD31 — Margaret Avenue Bridge Replacement—Funding Sources FUND: Capital DEPARTMENT: Infrastructure Services - Engineering PREPARER: Steve Allen, Manager Engineering Design and Approvals BUDGET IMPACT: None BACKGROUND: During Capital Budget Review on November 21, 2013, staff was asked to provide the funding sources for the Margaret Avenue Bridge project; totaling$6,286,000. RATIONALE/ANALYSIS: The replacement of the Margaret Avenue bridge was unplanned, but became an immediate need due to the condition of the bridge. In order to fund the bridge replacement, other project budgets have been reduced, deferred or cancelled as shown in the table below. The three major funding sources are effectively capital out of current, Federal gas tax and the gas utility (for gas main work). FINANCIAL IMPLICATIONS: Funding Sources for the Margaret Avenue Bridge Replacement ($000) 2013 (existing Source balances) 2014 2015 2016 TOTALS Road Resurfacing Program (Gas tax) 1,233 308 1,541 New Sidewalks Local Streets (Gas tax) 164 164 Laneway Rehabilitation (Gas tax) 204 204 AIRP projects reallocation (Gas tax) 216 620 640 1,476 Capital out of Current 1,200 1,200 Gas Utility(for gas main replacement) 300 300 Highland Road (Gas tax) 560 560 Hayward Bridge (Gas tax) 24 24 Slurry Seal Program (Gas tax) 50 50 Operations Sidewalk Repair(Gas tax) 350 350 Balance in Fed Gas Reserve (Gas tax) 399 399 TOTALS 1 1,383 3,317 928 1 640 1 6,268 RECOMMENDATION: For information only. To be read in conjunction with Issue Paper Cap 05 — Margaret Avenue Bridge Replacement. F - 98 ISSUE: BD32 — Engineering Studies FUND: Capital DEPARTMENT: Infrastructure Services— Engineering Services PREPARER: Binu Korah, Manager of Development Engineering BUDGET IMPACT: None BACKGROUND: During Capital Budget Review on November 21, 2013, staff was asked to provide details about the planned activity in the Engineering Studies capital account and the impact if these studies were deferred. RATIONALE/ANALYSIS: The Engineering Studies capital account is used primarily to undertake studies which help identify whether development can be supported. As well, this account is used to fund the City of Kitchener Subdivision Development Manual Update. The City hires consultants in order to complement staff expertise, tools and time required to complete these tasks. Details of planned studies and the Development Manual Update are provided below. Storm Water Management Master Plan -$200,000 This Master Plan will guide the City to make sure that the existing infrastructure can accommodate proposed developments in accordance with the current Official Plan. This study will also examine the citywide storm water management facilities to understand whether there is any need for infrastructure upgrades or if new infrastructure is required to address storm water management including quality and quantity of the storm runoff. Deferral of this item will eliminate the ability to understand the overall impact to the City's infrastructure and lose the ability to collect the appropriate funds through the development process. Upper Blair Watershed Study update - $250,000 As part of the Ontario Municipal Board hearing for the Doon South Phase 2 Community Plan, the City developed the Upper Blair Drainage Study in 2008/2009. In accordance with this study's recommendation, the City is required to update the drainage study every 5 years. As such staff is planning to undertake the study in 2014 to update the watershed modeling; incorporating GRCA's monitoring results and other relevant legislative requirements. Deferral of this item will result in non-compliance with the study recommendations and it will negatively affect the environment. Sanitary Sewer Model Update and Analysis - $150,000 As part of the ongoing Official Plan update and Pumping Station area planning, the City needs to update the sanitary sewer model to understand how proposed growth can be accommodated within existing and planned infrastructure. This funding is also used to complete an area specific servicing study (if required) during the site plan/subdivision process. Deferral of this item will eliminate the ability to understand the overall impact to the City's infrastructure and lose the ability to stage the developments until the required upgrades are completed. F - 99 Development Manual Update and related works - $ 100,000 In 2010, the City completed a Development Manual which was approved by Council. During the 2010 update, the Waterloo Home Builders Association, the consulting industry, and the City committed to undertake an update in 2014 to incorporate any new legislative requirements including various City, Ministry and Regional standards. Therefore an update of the Development Manual and related works is required. Deferral of this item will result in the City being in non-compliance with its commitment. FINANCIAL IMPLICATIONS: The Engineering Studies account is fully funded from Development Charges and as such, deferring any of these items would have no financial impact on the tax levy. The total funding required to complete the above projects is $700,000. The City is planning to initiate these projects in 2014. As of September 30, there is an existing balance of $523,110 in this account. With additional funds in the amount of $166,000 planned for in 2014, approximately $689,000 will be available to complete these projects. RECOMMENDATION: For information. F - 100 l,l:,C l Alternative Revenue Issue Paper (IN Index Included in IP # Description Proposed Budget? AR 01 Additional Cost Recovery for Special Events - Non-City Events No AR 02 Increased Cost Recovery for Bylaw Enforcement No AR 03 Increased Advertising Revenue Through Sponsorship Strategy No AR 04 Mobile Catering Licensing Fees No AR 06 New Cost Recovery for Engineering No AR 06b - Engineering Driveway Ramp Permit Fee AR 07 Fee for Fourth and Subsequent Subdivision Review No * AR 05 Increase User Fees by an Additional 1%, While Providing Additional Funding for the Leisure Access Card (LAC) is not included as Council has already approved direction with regard to this item. F - 101 ISSUE: AR 01—Additional Cost Recovery for Special Events- Non-City Events FUND: Operating DEPARTMENT: Office of the Chief Administrator- Economic Development PREPARER: Jeff Young, Manager of Special Events NET BUDGET IMPACT: $5,000 DESCRIPTION OF THE ALTERNATIVE REVENUE PROPOSAL: Staff has identified an opportunity to increase revenues in Special Events through the chargeback of services offered through the city to 3rd party event organizers (non-city events). Throughout the year, Special Events works with a number of 3rd party event organizers who host both large and small scale events throughout the city. These events typically utilize a combination of city streets and park spaces to host their events. Examples of these types of events include Kitchener Blues Festival, Ribfest, LINK Picnic, Oktoberfest,Tri Pride. Based on event history, staff have identified costs required to run these events in city locations. Examples of these costs that are currently charged back to the event organizers include repairs to grass, garbage collection, custodial, traffic, parking, etc. Special Events will continue to work with internal departments to identify areas where additional costs can be charged back as actuals to 3rd party event organizers. In addition, Special Events will detail in their contract the replacement cost of equipment if it is damaged during their event. Examples of equipment currently loaned to the event organizers from the Special Events inventory includes tents, tables, chairs, projector, etc. NET BUDGET IMPACT: An estimated $5,000 can be further recovered from 3rd party event organizers throughout the yea r. RISKS/IMPACTS ASSOCIATED WITH THIS PROPOSAL: If costs to host their events on city property are increased there is a high likelihood that the organizers would request additional funding through their Tier1 and Tier2 grant applications. If these requests were agreed to, there would be no net benefit to the City. F - 102 ISSUE: AR 02— Increased Cost Recovery for Bylaw Enforcement FUND: Operating DEPARTMENT: Community Services Department— Bylaw Enforcement PREPARER: Shayne Turner, Director of Bylaw Enforcement Kim Kugler, Director of Enterprises NET BUDGET IMPACT: $32,500 DESCRIPTION OF THE ALTERNATIVE REVENUE PROPOSAL: Staff has identified two opportunities to increase revenues in the Bylaw Enforcement Division: 1. Cost recovery for parking enforcement during Kitchener Ranger games ($25,000): The bylaw enforcement division currently provides targeted parking enforcement during all Kitchener Ranger's games (within The Aud parking lots and in surrounding neighbourhoods). This increased level of service is in response to the challenges experienced by surrounding neighbourhood residents and it aligns with the commitment made to them during the public consultation process related to the expansion of The Aud. During a typical evening there are two enforcement officers on duty. During a Kitchener Ranger's game these two officers are directed to pay increased attention to The Aud and surrounding neighbourhoods. In addition a third officer is brought in and assigned specifically for this increased level of parking enforcement. The total costs incurred to provide this increased service level over the entire hockey season is approximately$25,000. Currently those costs are funded through the tax-based operations of the bylaw enforcement division. Staff is proposing the bylaw enforcement division begin to recover these costs through revenue generated from the recently introduced paid parking initiative at The Aud. This will provide a new source of revenue for the bylaw division which is not tax-based. Staff recommends this change as funds from paid parking at The Aud were always intended to fund a variety of future parking and transportation management initiatives, including the enforcement of current parking regulations. Revenue generated from paid parking at The Aud is intended to go into a reserve to fund future investments into transportation and parking initiatives at the facility. 2. New Fees for follow-up inspections ($7,500): Some existing bylaw violations (e.g. property standards) require the bylaw enforcement division to conduct follow-up inspections to ensure the homeowner has complied with an order to remedy a situation by a certain date. On some occasions, when those follow-up inspections are conducted the work remains incomplete, requiring a Bylaw Enforcement Officer to conduct a second (and possibly a third) follow-up inspection at a later date. The City could begin to charge a fee to property owners to assist in recovering staffing costs when these additional follow-up inspections are required because the homeowner has not completed required work by the stated deadline. If an inspection reveals that the violation F - 103 has been corrected, the fee would not apply. Staff would ensure that any documentation given to a property owner, relating to a Bylaw violation and the required corrective action, also advises of the potential for follow-up inspection fees to be applied if the work is not completed in time. A number of municipalities in Ontario have a follow-up inspection fee mechanism in place, although the amounts of the fees vary. As a starting point, staff is proposing a fee of$75 per inspection when non-compliance is observed, with the potential to increase that fee as additional follow-up in sections are required on the same property. Based on past experience relating to the number of situations where multiple inspections are required before compliance is achieved, staff estimate the potential for$7,500 in new revenue to be generated in 2014. Implementing this new fee will likely require amendments to several existing by-laws, or alternatively an entirely new by-law. Staff also proposed that any fees charged and not paid within a designated timeframe would be applied to the tax rolls for the subject property. NET BUDGET IMPACT: Over the past three years staff has identified a structural deficit in the bylaw enforcement division related to fine revenue and part-time wages. For 2013, staff are projecting that chronic deficit to be in the range of$265,000—$280,000. Council may wish to allocate the new revenues identified in this issue paper to either: (1) reduce the bylaw enforcement division's chronic deficit by$32,500, or(2) increase revenue projections within the Division by$32,500 to reduce the tax supported levy. RISKS/IMPACTS ASSOCIATED WITH THIS PROPOSAL: 1. Cost recovery for parking enforcement during Kitchener Ranger games: Should Council choose to allocate $25,000 in revenue from paid parking at The Aud to fund the increased parking enforcement around The Aud during Kitchener Ranger games, that would reduce the amount of money available in future years to fund other parking and transportation initiatives at The Aud. New Fees for follow-up inspections:This type of fee mechanism is primarily a tool to encourage compliance and will likely not ensure sustained revenue levels over the long term. As compliance levels increase, revenue realized through this fee will decrease. F - 104 ISSUE: AR 03 - Increased Advertising Revenue through Sponsorship Strategy FUND: Operating DEPARTMENT: Community Services Department PREPARER: Michael May, DCAO NET BUDGET IMPACT: $45,000 DESCRIPTION OF THE ALTERNATIVE REVENUE PROPOSAL: The City of Kitchener owns and operates a wide variety of"assets" (e.g. physical buildings, programs, services, special events) that could potentially be leveraged through increased advertising opportunities and/or sponsorship partnerships with corporations, organizations and individuals to generate non-tax based revenue for the municipality. Currently the City has no formal strategy, policy or program regarding sponsorships. As a result, there is no coordinated and unified approach to identifying, costing and selling these opportunities for the benefit of the municipality and its residents/customers. Nor are there any corporate-wide processes or guidelines in place to encourage, plan, implement, monitor and control sponsorships. The City's historic ad hoc and decentralized approach to selling sponsorships and advertising has for the most part focused on cost recovery instead of maximizing this potential source of non-tax based revenue through sponsorships sold at fair market value. On May 14, 2012, City Council directed staff to undertake the development of a Municipal Sponsorship Strategy. In early 2013, staff began work on a sponsorship strategy that is intended to provide strategic directions and tactical recommendations on the potential development and implementation of a formal Municipal Partnership Program. Staff is continuing to work on a Municipal Sponsorship Strategy which will be presented to the Planning & Strategic Initiatives Committee on December 2, 2013. That strategy, and accompanying staff report, will outline the benefits and risks of proceeding with the development and implementation of a formal, corporate-wide Municipal Partnership Program, and will make specific recommendations on work to be completed prior to launching such a program. NET BUDGET IMPACT: While more work is required to complete the Municipal Sponsorship Strategy before presenting it to City Council on December 2, at this time staff believes there may be an opportunity to add $45,000 in new advertising revenue to the 2014 budget. Staff have already identified the following specific items for 2014: (1) increased advertising revenues at The Aud and Cemeteries ($10,000); (2) increased ad rates for Leisure magazine ($5,000), and; (3) new advertising opportunities in Your Kitchener, Best of Times and Leisure ($15,000). F - 105 In addition to these three opportunities which have already been identified, the Municipal Sponsorship Strategy will identify other potential opportunities to increase advertising revenues by$15,000 through items such as: • advertisements on municipally owned and operated websites; • facility signage advertisements (e.g. parking garages, aquatics facilities), and; • advertisements on city fleet vehicles. In order to pursue these new advertising opportunities and generate an increased level of revenue for the municipality, it will be necessary to engage the support of an outside vendor through a competitive RFP process. RISKS/IMPACTS ASSOCIATED WITH THIS PROPOSAL: While staff believe it is reasonable to estimate an additional $15,000 in revenue could be generated through these additional advertising sales, there is a moderate risk this revenue target will not be achieved in 2014 due to the startup time required prior to implementation of sales and revenue collection. There is also a public relations risk related to residents' acceptance or disagreement with this increased level of advertising on municipal assets. Further details on the potential revenues and implementation costs of a Municipal Partnership Program will be included in the Municipal Sponsorship Strategy and accompanying staff report being presented to the Planning & Strategic Initiatives Committee on December 2, 2013. F - 106 ISSUE: AR 04— Mobile Catering Licensing Fees FUND: Operating DEPARTMENT: Finance and Corporate Services— Legislative Services PREPARER: Patricia Harris— Manager of Licensing NET BUDGET IMPACT: $5,500 DESCRIPTION OF THE ALTERNATIVE REVENUE PROPOSAL: In the past year, licensing staff have received several enquiries from businesses that wish to offer their services as mobile caterers. A mobile caterer is hired by a private business to bring a mobile refreshment vehicle to a private social, sporting or recreational event and serve the patrons of that event. Historically, the City has not licensed mobile businesses, but in recent years mobile businesses have been growing in popularity. This includes businesses such as mobile hairstyling and mobile catering. Current City by-laws require caterers at a specific address to obtain a license. Refreshment vehicles such as hot dog carts, chip wagons and mobile canteen trucks that operate at industrial and construction sites are also required to obtain a license to ensure public safety. In order to create a level playing field for all food related businesses and to ensure the health and safety of the public, the licensing of mobile caterers is also being recommended. Among other things, this will enable the necessary inspections to take place (e.g., public health and fire). An amendment to Chapter 586 (Refreshment Vehicles) and Chapter 501 (Business License Fees) will be required to accommodate this new license category. The licensing of mobile caterers will not impact the current food truck program operating in Civic Square. Businesses that sell food only at special events require a Special Event license only, and not an annual business license. NET BUDGET IMPACT: Approximately 10 mobile caterers may be operating in Kitchener. In speaking with the operators, they have indicated that they are asked regularly to provide catering to private events in the City. Based on that information a license fee of$550 per mobile caterer is suggested. This fee was determined by taking the average of the fee for stationary refreshment vehicles such as hot dog carts and chip wagons ($1,020), caterers at specific addresses ($306) and mobile canteen trucks ($328). This amounts to approximately$5,000 in new license fees for 2014. Licensing currently has the resources to issue the licenses and provide enforcement. RISKS/IMPACTS ASSOCIATED WITH THIS PROPOSAL: As in all business licensing, the number of licensees may not meet expectations. This may be because a business is no longer operating. F - 107 ISSUE: AR 06 New Cost Recovery for Engineering FUND: Operating DEPARTMENT: Infrastructure Services - Engineering PREPARER: Linda Cooper, Supervisor of Client Services NET BUDGET IMPACT: $37,150 Tax Supported $ 6,700 Enterprise DESCRIPTION OF THE ALTERNATIVE REVENUE PROPOSAL: Guiding Principle: Development should pay for itself. No fees are currently collected for several different types of applications and requests that Engineering facilitates. Engineering should collect fees for these services to cover staff's time and associated costs. The new fees are described below and are split into tax supported fees and enterprise fees. Tax Supported Fees Damage Deposit Inspection: Currently the Building department collects a damage deposit on behalf of Engineering as part of every building permit application. Engineering will complete at minimum two inspections for the construction work prior to refunding the damage deposit. Engineering is proposing to collect an admin fee on all damage deposits to cover Engineering admin staff time and field inspections, the proposed fee is $40 per meter of lot frontage up to a maximum of$400. On Site Plumbing Applications:This process is initiated and facilitated by Building. Building will receive an application for a site servicing permit from a developer who is proposing new or revised servicing on site, but is not going through the Site Plan Process. Building will circulate the plans to Engineering, and Engineering staff will review the plans in accordance with the development manual, DGSSMS specs and in terms of adequate capacity within our system. Building will complete their review in accordance with the Building code. Once the plans are acceptable, Engineering will give Building their sign off and then Building will then issue a servicing permit for the property. Engineering is proposing a review fee for these applications of$475 per application which is in line with the Engineering Site Servicing Permit fee. Driveway Ramp Widening Permit: Engineering receives requests for permission/approval from residences who would like to widen their driveway by cutting their driveway ramps. Engineering coordinates the approval with Planning and Transportation Services for the driveway cut. Once all the requirements are satisfied, as per the driveway ramp widening application, then Engineering will issue a permit for the work. Engineering is proposing an admin fee for this process in the amount of$150 per application. F - 108 Enterprise Fees Sewer Surcharge Review: Engineering receives requests from property owners and developers to surcharge additional flows to the sanitary system. Engineering will run the additional flows through the sanitary model and grant approval for the surcharge. The proposed Sewer Surcharge Fee will be $850 per application which will cover the staff time required to facilitate these requests. Capacity Analysis Request: Engineering receives capacity analysis requests from developers prior to submitting a development application, or for a zone change application for a property. Engineering reviews the development proposal and determines if the sanitary system can accommodate the increase in flow. Engineering is proposing to collect a new fee for a Capacity Analysis Request in the amount of$500 per application. NET BUDGET IMPACT: The total increase in revenue is projected to be $43,850. The breakdown is noted in the table below. I I Sol Tax Supported Damage Deposit Inspection $40 per meter of lot frontage $10,400 to a maximum of$400 On Site Plumbing Applications $475 per application 50 $23,750 Driveway Ramp Widening $150 per application 20 $3,000 Total Tax Supported Additional Revenue $37,150 Enterprise Sewer Surcharge Review $850 per review 2 $1,700 Capacity Analysis Request $500 per application 10 $5,000 Total Enterprise Additional Revenue $6,700 J Total Additional Revenue $43,850 RISKS/IMPACTS ASSOCIATED WITH THIS PROPOSAL: All the fees proposed are new and could be viewed negatively by developers and residents. F - 109 ISSUE: AR06b— Engineering Driveway Ramp Permit Fee FUND: Operating DEPARTMENT: Infrastructure Services— Engineering Services PREPARER: Linda Cooper, Supervisor of Client Services BUDGET IMPACT: None BACKGROUND: During Operating Budget Review on December 12, 2013, staff were asked to provide further details on the Engineering alternative revenue sources in issue paper AR06. Staff are in the process of compiling a comparison of these fees from surrounding municipalities. This issue paper addresses only driveway ramp permit fees. Engineering receives requests for permission/approval from residents who would like to widen their driveway by cutting the curbs and removing boulevards to extend the driveway ramp. Engineering coordinates the approval with Planning and Transportation Services for the driveway widening. Once all the requirements are satisfied as per the driveway ramp widening application then Engineering will issue a permit for the work. Engineering staff propose collecting an administration fee for this process in the amount of$150.00 per application. RATIONALE/ANALYSIS: Engineering will receive the application from the applicant and circulate the proposal to both Transportation Services to ensure compliance with on street parking regulations and construction staging safety along with Planning to ensure compliance with applicable by-laws. Engineering reviews the application to assess the impacts to the boulevard, street lights, utility conflicts, fire hydrants etc., followed by completing a minimum of two inspections; pre and post construction to ensure work was completed to City standards. In accordance with the regulating work on city roads by-law if a resident does not obtain a permit, they could be charged. In comparison to other local municipalities (City of Guelph, City of Cambridge and City of Waterloo), their Operations staff completes the curb cuts at their own rates, which would include an administrative component. City of Kitchener is the only local municipality that allows private contractors to complete this work. All municipalities have similar by-laws that require any work within the right of way including curb cutting, to receive a permit or permission by the municipality for that work or the proponent could be charged. FINANCIAL IMPLICATIONS: As part of issue paper AR06, Engineering has proposed a new fee of$150.00 per application for driveway ramp widening to recover a portion of staff's time. It is estimated that Engineering will issue 20 permits a year, totaling$3,000 in revenue. RECOMMENDATION: For information only. F - 110 ISSUE: AR 07— Fee for Fourth and & Subsequent Subdivision Review FUND: Operating DEPARTMENT: Infrastructure Services - Engineering PREPARER: Linda Cooper, Supervisor of Client Services NET BUDGET IMPACT: $25,000 DESCRIPTION OF THE ALTERNATIVE REVENUE PROPOSAL: Currently the Engineering drawing review for Subdivision development is paid through an administration fee which amounts to 4.5% of the construction value of the development. This fee is to cover all aspects for which Engineering is involved in the approval of the subdivision. On average the engineering drawings for the subdivision go through 3-4 review submissions prior to approval of the drawings. Occasionally, subdivision plans are submitted which require more than three reviews, occasioning additional staff time for engineering. In these cases the Engineering Consultant is not completing the required revisions as requested by Engineering and/or in accordance with the Development manual. For these cases, Engineering suggests establishing an additional review fee for the subdivision drawings for those developments that are constantly resubmitting drawings for review without addressing Engineering's past review comments and standards. Additional reviews occasioned by circumstances outside of the Engineering Consultant's control will not be subject to this additional fee. The Engineering Review Fee of$5000/submission will be applied to any subdivision development upon submitting their fourth and subsequent Engineering drawing set for review. It is anticipated that this fee will encourage thorough preparation of submissions by Engineering Consultants. NET BUDGET IMPACT: The estimated revenue the Subdivision Review Fee will generate is$25,000 per year. RISKS/IMPACTS ASSOCIATED WITH THIS PROPOSAL: Industry may view this new fee as unfair so it will be applied reasonably by the Director of Engineering and may be waived for minor changes such as items missed by City staff in previous reviews, changes in standards, and minor drawing. Since the fee is tied to issues of non- compliance, increased compliance levels may cause a decrease in actual revenue realized over time. F - 111 Stratec0c Initiatives Issue Paper (IP) Index Included in IP # Description Proposed Budget? SI 01 Improve Citywide Bylaw Enforcement No Improve Customer Service and Efficiency through Mobile SI 02 Technology - REVISED No S103 Improve Infrastructure Data Management to Better Support No Spending Decisions - REVISED S104 Proactive Street Tree Maintenance - REVISED No F - 112 ISSUE: SI 01— Improve Citywide Bylaw Enforcement FUND: Operating DEPARTMENT: Community Services— By-law Enforcement PREPARER: Shayne Turner, Director of By-law Enforcement BUDGET IMPACT: $179,409 tax OVERVIEW OF THE PROPOSED STRATEGIC INITIATIVE: Respond to a significant increase in bylaw enforcement service requests from the community by shortening response times and ensuring bylaw officers are available 24/7 to respond to calls from the public. RATIONALE/ANALYSIS: On August 26, 2013, City Council received the results of a service level review of the Bylaw Enforcement Division which demonstrated that over the past several years the numbers of service requests being made by residents has grown significantly. For example: • 80% increase in noise complaints from 2002 to 2012 (2,068 to 3,783); • 220% increase in total calls for service for Noise Officers (includes other by-law types) from 2002 to 2012 (2,224 to 4,979); • 300% increase in parking complaints from 2002 to 2012 (1,330 to 4,014). In addition to a significant increase in the number of calls received from the public, since 2002 the Bylaw Enforcement Division has been required to provide services in a number of new areas. These include (but are not limited to): licensing inspections, open air burning, snow events, student housing, public nuisance, graffiti, site alterations and tree cutting bylaws, towing and snow dumping on roadways. At the same time as service demands have increased within the Bylaw Enforcement Division, staffing levels have remained relatively constant. As a result, during peak periods (late evenings and weekends), response times can be as long as 3 hours depending on the nature of the complaint and the time of day when it is received. In addition to slower than acceptable response times, approximately 26 hours per week, there is no Bylaw Officer on duty to respond to complaints from the public (e.g. noise, public nuisance, backyard fires). The number of calls received during times when no officer was available to respond has increased from 130 in 2008 to 301 in 2012. This has essentially meant there was no response to those calls, or a very late response which is often ineffective given the nature of the issues. The addition of two Bylaw Enforcement Officers would provide the following benefits: 1. Improved response times by filling gaps in the existing staffing schedule and ensuring an officer is on duty 24 hours a day, 7 days a week to respond to public complaints. The addition of 2 FTEs would allow for a schedule that will provide full 24/7 coverage. Staff has experienced an increased public expectation with regard to not being able to access F - 113 enforcement services during certain times of the week. Now that residents are able to call the main bylaw enforcement line 24/7 and get a live response, they also expect an officer will be available 24/7 to respond to a call in a timely manner. 2. Improved response times by providing for extra officer coverage during times when the City traditionally experiences high call volumes. The two additional FTEs would be assigned as Noise Enforcement Officer and would perform enforcement duties related to the noise bylaw, as well as the Open Air Burning, Public Nuisance and Traffic By-laws. They would also play a key role in supporting Parking Enforcement, particularly during evenings, overnight and weekends. Current staffing levels often allow for only one Noise Enforcement officer to be on shift during peak demand periods such as late evenings or weekends. The addition of these two positions would provide for improved response times during peak periods and will lessen concerns expressed from the public when they are not allow able to receive a timely response to their complaint. 3. Mitigate safety risks to officers by providing for increased times when officers can support/back-up one another when responding to a call with an elevated level of risk; as opposed to only one officer attending to the call. Staff are noticing an increase in the number of incidents where an officer's safety has been jeopardized, either by a specific incident or by an identifiable "near miss."The overlap of officer coverage provided by the addition of two FTEs would mitigate some of these risks by allowing for a joint response (officers teamed together) when responding to calls where elevated risks are identified. 4. Increased bylaw enforcement presence/capacity in Lower Doon. On June 24, 2013, City Council directed staff to consider additional bylaw enforcement in Lower Doon and Doon Pioneer Park as part of the 2014 budget process. This proposal to add two FTEs will allow for increased capacity to provide an increased level of enforcement and presence in the Lower Doon area to focus on: 1) proactively engaging the tenants to help mitigate the nuisance concerns identified; and 2) providing for zero tolerance enforcement where circumstances are warranted. BUDGET IMPACT: This initiative requires two additional full time equivalent (2 FTE) Bylaw Enforcement Officers. Total cost of two additional Bylaw Enforcement Officers is$179,409 (including salary, fringe and administrative expenses). In addition to the service improvements and shorter response times that would result from the addition of two Bylaw Enforcement Officers, it is anticipated those new officers would generate approximately$40,000 in fine revenue (combined) annually that would assist in reducing the $215,000 chronic deficit identified in the April 2013 variance report. ALIGNMENT TO THE CITY OF KITCHENER STRATEGIC PLAN: This proposal is linked to the Community Priority of Quality of Life. F - 114 ISSUE: 5102— Improve Customer Service and Efficiency through Mobile Technology - REVISED FUND: Operating DEPARTMENT: Finance and Corporate Services— Information Technology PREPARER: Dan Murray— Interim Director, Information Technology (519-741-2200 ext. 7825) BUDGET IMPACT: $102,767 tax/$102,767 enterprise ($205,534 total) OVERVIEW OF THE PROPOSED STRATEGIC INITIATIVE: Further implement and support the use of mobile technology at the City of Kitchener to improve handling of citizen requests for service, provide faster response times to citizens, and improve efficiency and effectiveness through better use of data. RATIONALE/ANALYSIS: The Corporate Technology Strategic Plan (2010) identified "mobile computing for staff on the move" as one of the four key strategic areas of focus for the City. The mobile computing strategy was developed in 2013 in response to that recommendation and outlines the requirements to position the City to bolster the use mobile computing for members of the public, field workers and mobile staff to achieve the following: 1. Improved handling of citizen requests for service Increasing the use of mobile technology will be required in order for the City to establish a "closed loop" for two-way communications with citizens which forms part of the customer service vision. This means that citizens will be able to request service through any number of channels (e.g., mobile application, City website, Corporate Contact Centre) and this request can in turn be routed to front-line service staff via mobile technology. Once the request has been completed, information on the status of the request can then be immediately relayed back to the requestor by the field worker using mobile technology and also be tracked for reviewing performance against service levels in real time. This presents an opportunity for improvements in areas such as By-Law enforcement, where complainants have an interest in follow-up communications on the status of their requests. With the use of mobile technology, By-Law enforcement officers could update the status of calls in real time which in turn can be relayed to the complainant at any hour of the day. The addition of mobile computing resources is one of the essential actions required to establish this higher level of customer service. 2. Faster response times for citizens Providing technology to front-line employees enables the City to reduce the need for requests for service to be handled by multiple staff members before they are acted upon in the field. Over the long term, this will increase response times for citizens on selected services. For example, graffiti reporting is presently reported via a phone call to the Corporate Contact Centre, which is handled by a Customer Service Representative, entered into a work management system, prioritized by a Supervisor and assigned via a crew meeting to workers in the field. Using mobile technology, a resident could conceivably snap a picture of graffiti using their smartphone and immediately submit it with location coordinates via the F - 115 City's mobile application. An automated workflow could immediately route the work request to the appropriate Supervisor or crew, enabling a much faster response. 3. Improve efficiency and effectiveness through better use of data Mobile technology will enable field workers to access better information in the field (e.g., infrastructure drawings and maps, property data, customer history, service request details, etc.) and will also allow field workers to capture data while still in the field. This will improve the ability of field workers to diagnose issues quickly, make better decisions, and complete their work efficiently and effectively. As an example, utility service connection details were historically maintained in hardcopy files. More recently, all of this data was converted to an electronic format in the Geographic Information System (GIS). Without mobile technology, field workers would still be required to print out hardcopy maps and diagrams, which can become outdated and do not provide the ability to capture details in the field based on actual physical conditions or work completed. Implementing mobile technology ensures that workers are using the most current information when undertaking repairs and maintenance. Mobile technology will also enable field workers to capture data remotely, reducing the need for the information to be handled twice, once in the field on paper and once in the office where it would be entered into a system. This would apply to many maintenance and inspection activities, such as routine valve maintenance, fire hydrant inspections, etc. Implementing mobile technology represents a significant new service offering for the Information Technology (IT) division and will have many facets, including: • Implementation of citizen-facing mobile applications to engage citizens and improve the handling of requests for service • Increased use and management of mobile devices (tablets, mobile phones and laptops) • Improved support for existing and new applications with a mobile interface , including a Customer Relationship Management System • Development of a Bring-Your-Own-Device (BYOD) mobile policy and procedures In order to achieve the objectives outlined in the mobile computing strategy, dedicated staff resources will be required to both implement the services and to support them on a continuing basis. Without these additional staff resources, significant core services will not be properly established to support the growing demand of mobile computing initiatives and future mobile computing projects will fail to meet their objectives. The staff resources required are: • One Mobile Computing Infrastructure Support Specialist who is required for developing and maintaining the "back end" technologies to support mobile computing, including wireless technology, application delivery, web servers and technologies, device management, etc. • One Mobile Computing Device Support Specialist who is required for managing the end user device lifecycle, including device specifications, device testing, laptop builds, end user support procedures and training, escalated issue resolution, etc. F - 116 During the December 12, 2013 Finance and Corporate Services Committee meeting, additional information was requested in regards to mobile computing technology projects and the impact if only one of the two recommended positions were approved in the 2014 budget. There are two main work activities that will influence the overall success of mobile computing initiatives at the City: • The ability of the IT division to deploy, manage and support mobile computing technologies on an ongoing day-to-day basis. • Well managed mobile computing projects to deploy mobile computing solutions to the various operating areas in the City. These projects will include policy, infrastructure and support set up as well as queued and future/ongoing projects to deliver the solutions to the end users. These projects will introduce increased ongoing support and maintenance activities from IT staff. The two staff positions being recommended are needed to provide the ongoing day-to-day support, maintenance for end-users of the technology and for the continual improvement of mobile computing technologies. The following table shows a high-level breakdown of the anticipated % of time spent on various work activities for the two recommended staff. Work Activities Mobile Mobile Device (numbers represent %of time) Infrastructure Specialist Specialist Mobile Device Policy and Service Offerings 5% 10% (procurement, support processes, BYOD) Enterprise Laptop Management 5% 20% Enterprise Management of Smartphone and Mobile 10% 10% Tablet Devices Mobile Systems Network Connectivity and Mobile 50% 20% Application Delivery Mobile End User Support 10% 20% Mobile Computing Projects 20% 20% 100% 100 Should only one of the two recommended positions be approved, it will negatively impact the ability of IT to support increased mobile computing required to deliver on future mobile and e- services goals. It would limit the ability to develop the core services required to support increased mobile computing goals and would also severely limit the ability to deliver mobile computing projects. It will not only take longer to address the number of mobile computing project opportunity areas that have been identified but the ongoing success of each deployed mobile solution will be at risk without the required staff to provide the ongoing support. A sampling of mobile computing opportunities by operating area and a highlight of expected benefits of each is attached. It is important to note that this is not a comprehensive list and is intended only to provide a sense of the benefits that can be realized through increased mobile computing. Full cost-benefit analysis cannot be completed until the mobile solutions and F - 117 business process improvements can be fully defined. As highlighted in the November 18, 2013 Planning and Strategic Initiatives meeting, many of the identified mobile computing opportunities offer considerable efficiencies throughout various City operations that will provide a solid return on the investment in staff to support the e-services and mobile computing. IT will report back on the effectiveness of the overall Mobile Computing Strategy and specific mobile computing projects through regular updates through IT Governance and to Council. BUDGET IMPACT: This initiative requires two additional full time equivalent (2 FTE) Mobile Computing staff in the IT division. The staff resources required to deliver on the mobile computing strategy will be funded through a split of tax supported and internal recoveries from the enterprise divisions. The total annual funding required is $205,534, with a tax-supported increase of$102,767 (50/50 split). ALIGNMENT TO THE CITY OF KITCHENER STRATEGIC PLAN: This proposal is linked to the Effective and Efficient Government Foundations of Information Technology. The mobile computing strategy is directly referenced in both the Corporate Technology Strategic Plan, The Customer Service Strategy as well as in the City's Strategic Plan. The following is an excerpt from the City's Strategic Plan: "As the world of technology moves forward at a rapid pace, the city's information technology group supports the technological infrastructure for many of our financial and operational services. With increasing demands for real-time information, the city is looking to bolster the use of mobile technology to help staff report on activities remotely from the field." 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E: d ' a) m hn m v m o m °— m bn m V5, S.' > Q a)) D a) 3' in m bn E :: 3 t m E v v m y LL m w 12 F - 120 ISSUE: SI 03—Improve Infrastructure Data Management to Provide the Basis for Future Grants and to Better Support Spending Decisions-REVISED FUND: Operating DEPARTMENT: Infrastructure Services—Administration PREPARER: Hans Gross, Director of Asset Management BUDGET IMPACT: $34,205 tax/$35,602 enterprise ($69,807 total) OVERVIEW OF THE PROPOSED STRATEGIC INITIATIVE: Enter and maintain infrastructure data required to manage assets through detailed Asset Management Plans, to assist in optimizing decisions by staff and Council regarding capital infrastructure maintenance and replacement and to provide the basis for future applications for upper tier infrastructure grants. RATIONALE/ANALYSIS: Infrastructure Services Administration currently has two full time staff(temporary positions) spending 80%of their time on staff time entry and 20%of their time on asset data entry.The city's mobile time entry process will be phased in over one to three years. As the City transitions into the mobile time entry process,there is a need to transition the two staff positions to asset data entry and data maintenance. The asset data entry and data maintenance process is a vital and first step in the development of detailed, long-term asset management plans which is a legislated requirement of Bill 141—an Act to enact the Infrastructure for Jobs and Prosperity Act, 2013,which received its second reading December 5, 2013 and is awaiting its third and final reading. The asset management plans will result in establishing sustainable financial plans for the management of assets within Facilities Management, Parks, Forestry, Cemeteries and Golf Courses which have a replacement value of at least$546 million. Asset data entry and data maintenance (i.e. asset condition, location, maintenance process cost activity) is required for Facilities Management, Parks, Forestry, Cemeteries, and Golf Courses and is currently not being done by anyone. The need for this work and the associated additional staff will also support many of the recommendations of the Operations Division audit related to improved data collection and management to support decision- making. Furthermore,the need for data management is based on the Asset Management Program Roadmap. The Roadmap's first priority and first step is to establish a Data Management Plan, which will consist of data collection, data quality control and data entry/data maintenance.This builds the foundation for financial decision-making and sustainability of the city's assets and for the development of detailed asset management plans which form the basis for future applications for upper tier infrastructure grants. Currently one position is funded from the Cityworks Capital account. The funding from the Cityworks account will stop in 2014.The second position is currently funded from the Water and Gas Utilities.The funding from Water and Gas will stop in 2015. As these positions are needed for the long-term, the current temporary funding and employee status should be converted to a long-term approach as well. BUDGET IMPACT: This initiative requires one additional full time equivalent (1 FTE) in 2014 to assist with asset data entry. The position will be funded through a sharing of tax supported and internal recoveries from the enterprise divisions. The total annual funding required is$69,807, with a tax-supported increase of$34,205 and an enterprise increase of$35,602. The second additional FTE will be required in 2015. ALIGNMENT TO THE CITY OF KITCHENER STRATEGIC PLAN: This proposal is linked to the Effective and Efficient Government Foundations of Asset Management and Financial Management. F - 121 ISSUE: SI 04— Proactive Street Tree Maintenance - REVISED FUND: Operating DEPARTMENT: Infrastructure Services—Operations PREPARER: Greg Hummel, Manager Park Planning, Development and Operations BUDGET IMPACT: $169,500 tax OVERVIEW OF THE PROPOSED STRATEGIC INITIATIVE: Implement proactive street tree maintenance which will better support the quality of street trees within the City of Kitchener. RATIONALE/ANALYSIS: The City of Kitchener has an existing inventory of approximately 60,000 street trees which should benefit from proactive maintenance including the activities of street raising, structural pruning, and timely stumping. In addition, there are over 800 hectares of natural/hazard and park lands that are covered with trees and forest that need additional maintenance to ensure the quality of the trees, as well as the safety of Kitchener residents. The first activity of street raising ensures safe passage beneath the trees for pedestrians, cyclists and trucks/automobiles. The street raising process needs to be completed every three to five years to ensure that the limbs are not obstructing safe passage or hindering views. Street raising becomes one of the most important proactive maintenance activities when dealing with the existing tree inventory. With the limited number of foresters within the City's labour force, when faced with balancing one priority versus another immediate priority, tree raising gets delayed. Delaying this activity impacts safe passage. The second activity is structural pruning. This new approach to pruning establishes acceptable growing patterns for the trees. Completing this type of maintenance early in the life of a tree takes more time initially, but over the long term growth of the tree will reduce overall maintenance, especially in later years. This time invested early is labour intensive, but as the trees grow, the need for severe street tree raising and the use of costly equipment is reduced. This is healthier for the tree and reduces the overall maintenance costs of the tree. The final activity is the immediate stumping of trees as they are removed. Currently stumps are removed approximately one year after the branches and stems are removed. The additional proposed staff would be able to assist with the immediate stumping, allowing the tree replacement to happen within a growing season. During the December 12, 2013 Finance and Corporate Services Committee meeting, additional information was requested about whether the requested positions could be hired seasonally. The Forestry Division has used temporary labourers previously to perform street raising, structural pruning and stumping. There were issues associated with using temporary staff from the perspective of additional training requirement, the hours available for work, and the technical skills needed to do the job. The work performed by the Forestry section is a year round function. With over 60,000 street trees and over 1400 hectares of natural area, the work load for this area continues to grow, like the City's F - 122 tree inventory, resulting in an ever increasing backlog of work. The type of equipment used and the work performed by this section is specialized and requires trained staff to carry out the day to day activities safely and efficiently. Temporary employees provide valuable assistance from a physical labour perspective, but there is a continual change-over of this staff resulting in the need to re-train on a regular basis. In the past, the time spent training the temporary employee has been very beneficial to the individual as they take this learned skill and find full time jobs elsewhere. The training of new temporary labourers in Forestry on an annual basis, while necessary, does not provide the support in the completion of daily tasks and the ever increasing workload.The lack of experience of the new staff puts additional work load pressure on the full time staff as they must provide guidance and direction to ensure the work site is operated in a safe and efficient manner. Due to the limitations within the existing collective agreement on Temporary Labourers, these labourers' efforts can be minimized by the number of hours they can work in a day. Temporary staff typically work from early April until the end of December assisting with various Forestry functions.The temporary staff is restricted in the help they can actually provide due to lack of training (e.g. tree climbing, tree felling, chainsaw permits and safety procedures), license restrictions, as well as lack of experience in the field does not permit the temporary staff to use the aerial truck, chipper,and truck&trailer. All Temporary Labourers and seasonal staff are required to complete training sessions each year as part of their hiring process and Health & Safety. These training sessions are mandatory and take a great amount of time each year but are essential to the safety of the seasonal staff and their co-workers. Each year, the City invests 12.5 days of training for Forestry temporary labourers to ensure the safety of the labourer, co-workers and citizens. Examples of training include fuel handling, chainsaw permit, chipping, stumping, etc. The training sessions require the involvement of full time employees to assist in the training or to act as a mentor/trainer in many of the day to day functions. Based on the above noted number of days(for one labourer),the City would be investing 37.5 days(or approximately$9,000)of training to a seasonal complement (3 temp staff) in Forestry without actually completing forestry work. With Forestry being a twelve month operation, when the temporary staff leaves for the season, it creates a void resulting in the reduction in the Forestry crews. The bulk of the woodlot/natural area forestry work is carried out during the winter months and with the need to address low hanging limbs/structural pruning and now with the work needed due to EAB, response to ice and wind storms the loss of temporary labourers, minimizes the work that is being completed. Having full-time staff, the requirements to train and assess temporary hires on an on-going basis would be eliminated and that time would be spent doing productive work. While new full time hires would require initial training, once trained the amount of time spent in that area would decrease.The additional full time staff would add to the current staff complement to assist with the work load on a year round basis. Part of this year round work is done with the assistance of staff from other sections of Operations when they are available which is typically in the winter months. By increasing the core complement of trained staff, the City would be able to utilize more staff from other areas when available to address the workload situation as there would be more fully trained Foresters to provide direction to the supplemented work crews. F - 123 With over 2000 requests in the system for low hanging limbs from trees that are obstructing safe passage or hindering views for both pedestrians and vehicular traffic, these need to be completed as soon as possible.These low limbs result in additional costs to repair the damaged vehicles (public and private) and demerit points being issued against employees. While Forestry attempts to deal with these issues in a timely manner the volume of work is far greater than what the current staff complement is able to deal with and against changing priorities. Reviewing the impact of the ice storm on December 22, 2013, Forestry staff has determined that over 30%of the damage would not have occurred if the trees had been structurally pruned many years ago. Trees in a woodlot grow straight with tall trunks as the tree competes with neighbouring trees for sunlight. In the case of a boulevard tree with abundant sunlight all around the canopy, the tree develops multiple and competing trunks and leaders. This growth habit becomes easily damaged due to the poor structure and has a lesser life expectancy. By proactively pruning new trees to ensure proper structure is established, long term benefits will show by less street raising required in the future, healthier trees and less impact from occurrences of future wind and ice storms. BUDGET IMPACT: This initiative requires two additional full time equivalent (2 FTE) staff and one temporary labourer at a combined cost of $188,000. Staff will also require a chipper truck and necessary attachments to address the structural pruning and chipping of branches at a cost of$61,500. The combined cost is $249,500, of which $80,000 is already included in the 2014 Growth Allocation, reducing the additional budget request to $169,500. The chart below outlines the costs of the original proposal (2 full time staff, one temporary labourer) and the information requested by Council (3 temporary labourers). Original Proposal Only Temporary Staff Staffing Costs $188,000 $126,500 Equipment $61,500 $61,500 Less: Growth Allocation -$80,000 -$80,000 Budget Request $169,500 $108,000 ALIGNMENT TO THE CITY OF KITCHENER STRATEGIC PLAN: This proposal is linked to the Community Priority of Environment. F - 124