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AUGUST 24, 2015 CITY OF KITCHENER
A special meeting of City Council was held at 3:03 p.m. this date, chaired by Mayor B. Vrbanovic with
all members present except Councillor F. Etherington. Councillor P. Singh was in attendance for part
of the meeting.
Notice of this meeting had been previously given to all members of Council by the City Clerk pursuant
to Chapter 25 (Council Procedure) of the Municipal Code.
1. INS -15 -075 —STATE OF THE INFRASTRUCTURE
Council considered Infrastructure Services Department report INS -15 -075 (J. Winter), dated August
9, 2015, concerning the state of city infrastructure, specifically relating to the water, sanitary and
stormwater utilities and the Accelerated Infrastructure Replacement Program (ARIP). In addition, the
Committee was in receipt this date of a presentation entitled "State of the Infrastructure and Planning
for the Future: 2015 - 2032 ", dated August 24, 2015.
Mr. D. Tyagi, Deputy CAO — Infrastructure Services, introduced the report advising the City has
established a Corporate Asset Management Program to manage all of the City's assets. He noted
this program has incorporated all aspects of asset maintenance, replacement and service delivery
and stated that within the Water, Sanitary and Stormwater Utilities, data shows the City is exhibiting a
higher than average deterioration and condition rate, resulting in higher failures and increased risk.
He indicated that, in 2002, the ARIP funding model was developed and implemented based on
historical trends and age being used as the criteria for infrastructure replacement; however, since the
implementation of the ARIP, actual replacement costs have dramatically increased, resulting in a
shortage between the initial expectation of yearly replacements and the increased costs.
Councillor P. Singh entered the meeting at this time.
Messrs. W. Malcolm, Director of Utilities, and H. Gross, Director of Engineering and Acting Director of
Asset Management, provided an overview on the three Utilities, including their asset value, current
state, cost of maintenance and replacement; and, a ten -year summary of applicable user rates. Mr.
Tyagi advised the ARIP is a triple- funding sourced program as it is funded through the three Utilities.
He indicated that since the program was implemented, new information has validated the need for
additional financial and human resources to address not only the current replacement requirements,
but also the deficit that has been identified.
Mr. Tyagi indicated staff is proposing Council consider increases of 10.8% for Sanitary, 7.6% for
water; and 9.2% for Stormwater annually for the next 10 years as a means of addressing the
replacement and maintenance required by the three Utilities. He commented the proposed increases
would include the projected rate increases by the Region of Waterloo. In addition, he noted staffing
resources will need to be increased to manage the replacement and maintenance programs. Mr.
Tyagi further advised staff is not requesting a decision this date pertaining to user rates noting that
the presentation is intended to demonstrate the current state of the infrastructure and the challenge to
replace and maintain the various Utilities.
In response to questions raised regarding funding from the Federal Gas Tax program, Mr. D.
Chapman, Deputy CAO — Finance & Corporate Services, advised that Gas Tax funding is not
currently being applied to the ARIP, noting staff previously provided a summary of all the gas tax
programs and could recirculate the information.
In response to questions, Mr. Tyagi advised the proposed rate increases include the proposed
staffing required to manage the increased maintenance and replacement needed.
2. IN- CAMERA MEETING AUTHORIZATION
Moved by Councillor B. loannidis
Seconded by Councillor S. Davey
"That an in- camera meeting of City Council be held this date to consider a land acquisition /
disposition matter and two matters subject to solicitor - client privilege."
Carried
SPECIAL COUNCIL MINUTES
AUGUST 24, 2015 -145- CITY OF KITCHENER
On motion the meeting adjourned at 5:25 p.m.
MAYOR CLERK