HomeMy WebLinkAboutCouncil - 2016-08-29 S6y,xy /e1WK9111LIN10khIIki Lei 9�1
AUGUST 29, 2016 CITY OF KITCHENER
A special meeting of City Council was held at 2:06 p.m. this date, chaired by Mayor B. Vrbanovic with
all members present.
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.a. INS -16 -073 —WATER AND WASTEWATER RATE STUDY
Council considered Infrastructure Services Department report INS -16 -073 (M. Ryan), dated August
22, 2016, regarding the need to establish an appropriate structure with respect to water and sanitary
sewer fixed rates and variable rates.
Councillor J. Gazzola and P. Singh entered the meeting at this time.
Messrs. M. Ryan, Interim Utilities Water Engineer, and J. Murphy, DFA Infrastructure International
Inc., presented the report and provided an overview and purpose of the Rate Study, including
background information on the current rate structure and the growing trends. Mr. Ryan advised that
current rates are dependent solely on consumption and of that rate approximately 55% of the
revenues generated are paid to the Region of Waterloo and approximately 45% of the rate makes up
the City's portion. Mr. Murphy indicated the current cost structure does not match the revenue
structure, noting as water consumption decreases it causes deficits in the utilities.
Mr. Murphy presented the proposed six Guiding Principles staff are seeking Council's endorsement
on, which will be used to guide the Rate Study's direction. He provided an overview of a sample of
rate structure options, including some pros and cons to the various options. Mr. Murphy then
summarized a list of potential next steps, noting the proposed rate structures would be brought back
for Council consideration at a future meeting. Mr. Ryan indicated staff is in attendance this date to
receive feedback on the following questions:
1. Is there support for the Guiding Principles?
2. Is there support for a fixed portion of water / waste water bills?
3. If yes, are there any limits you would want considered? For Example:
a. Only on residential customers?
b. As long as there was no impact to the "average" homeowner?
In response to questions, Mr. Ryan advised the water use chart demonstrates the amount of water
the City purchases from the Region versus the water that is sold and generates revenue. He
indicated the difference in the amounts is deemed lost water or water that is unbilled. He stated
events that contribute to lost water include but are not limited to: main breaks, leaks in the supply
system, temporary water mains and faulty water mains. He commented the difference in the
purchased and sold figures is approximatively 13 %. He further advised one way to address the water
loss is by improving the infrastructure sooner which is a challenge on the current rate structure.
Councillor B. Ioannidis questioned whether Economic Development staff has participated in any
discussions related to the possible implementation of a new rate structure. He expressed some
concern that a new rate could adversely impact attraction of new business if the water and waste
water rates were not comparable with other municipalities. Mr. R. Hagey, Director, Financial Planning,
noted the project team currently comprises staff from Engineering, Financial Planning and Utilities.
He further advised if it was Council's wish Economic Development staff could be consulted.
Questions were raised regarding the use of a fix rated and what the impacts would be on a water
conservationist. Mr. R. Hagey advised the implementation of a fix rate would mean everyone is
responsible to pay a fix charge on their bill for water and waste water services. He noted dependent
on the percentage of the rate being fixed would still allow homeowners who seek to conserve water to
reduce their monthly charge. He stated the amount of savings would be dependent on the percentage
of the rate that was variable, noting a higher fixed charge could possibly benefit high water users. Ms.
Fletcher advised that staff have identified that as a possible concern and have identified water
conservation as one of the Guiding Principles for the Rate Study.
Questions were raised on what type of feedback residents in other municipalities provided when their
municipality was implementing the new fixed /variable rate structure. Ms. Fletcher agreed to include
some of the feedback received as part of a follow up report on this matter. Councillor F. Etherington
SPECIAL COUNCIL MINUTES
AUGUST 29, 2016 -137- CITY OF KITCHENER
referenced the list of municipalities that already have a fixed charge and questioned whether staff
was aware what percentage of a fixed rate was being charged. Mr. Ryan advised that staff do have
that information and could follow up with the percentages. Mr. Murphy advised that some
municipalities when implementing the new rate structure have opted to phase in the fixed rate
percentage increase over a few years to assist customers in transitioning to the new rate structure.
Several members expressed support for the Guiding Principles noting consideration should also be
given to ensuring whatever rate structure is selected it is affordable to residents.
A motion was brought forward by Councillor B. loannidis, seconded by Councillor Y. Fernandes, to
approve the recommendation as outlined in report INS -16 -073 with an amendment to include
`affordability' as a seventh Guiding Principal to require staff to consult Economic Development in the
Study, and to report back to Council with proposed rate structure options prior to commencing the
public engagement process.
Moved by Councillor B. loannidis
Seconded by Councillor Y. Fernandes
"That the following Guiding Principles of the Water & Waste Water Rate Design Study, as
outlined in Infrastructure Services Department report INS -16 -073, be endorsed, with the
inclusion of a seventh Guiding Principle of affordability:
1. Full Cost Recovery;
2. Revenue Stability;
3. User Pay;
4. Fairness & Equity;
5. Water Conservation;
6. Transparency;
7. Affordability; and,
That staff be directed to consult with Economic Development staff regarding the proposed
water and sanitary sewer rate options; and further,
That the `potential next steps' be revised to include direction for a report to be provided on all
of the potential rate structure options prior to commencing the public engagement process."
Guiding Principle 1 - Full Cost Recovery - Carried
on a recorded vote.
In Favour: Mayor B. Vrbanovic and Councillors S.
Davey, D. Schnider, J. Gazzola, S. Marsh, K.
Galloway - Sealock, F. Etherington, Z. Janecki, P.
Singh and B. loannidis
Contra: Councillor Y. Fernandes
Guiding Principle 2 - Revenue Stability - Carried
Unanimously on a recorded vote.
Guiding Principle 3 - User Pay - Carried on a
recorded vote.
In Favour: Mayor B. Vrbanovic and Councillors S.
Davey, D. Schnider, Y. Fernandes, S. Marsh, K.
Galloway - Sealock, F. Etherington, Z. Janecki, P.
Singh and B. loannidis
Contra: Councillor J. Gazzola
Guiding Principle 4 - Fairness & Equity - Carried
Unanimously on a recorded vote.
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AUGUST 29, 2016 -138- CITY OF KITCHENER
Guiding Principle 5 - Water Conservation - Carried
Unanimously on a recorded vote.
Guiding Principle 6 - Transparency - Carried
Unanimously on a recorded vote.
Guiding Principle 7 - Affordability — Carried on a
recorded vote.
In Favour: Mayor B. Vrbanovic and Councillors S.
Davey, D. Schnider, Y. Fernandes, S. Marsh, K.
Galloway - Sealock, F. Etherington, P. Singh and B.
loannidis
Contra: Councillors J. Gazzola and Z. Janecki
Balance - Carried on a recorded vote.
In Favour: Mayor B. Vrbanovic and Councillors S.
Davey, D. Schnider, Y. Fernandes, S. Marsh, K.
Galloway - Sealock, F. Etherington, Z. Janecki, P.
Singh and B. loannidis
Contra: Councillor J. Gazzola
The meeting then recessed at 3:37 p.m. and re- convened at 3:45 p.m., chaired by Mayor B.
Vrbanovic and with all members present except Councillor J. Gazzola.
1.b. FCS -16 -129 — SAP CUSTOMER RELATIONSHIP AND BILLING IMPLEMENTATION —
UPDATE AND NEXT STEPS
Council considered Finance and Corporate Services Department report FCS -16 -129 (A. Ahkoon),
dated August 23, 2016, regarding an update and next steps related to the SAP Customer
Relationship & Billing Implementation. Messrs. D. Chapman and A. Ahkoon and Ms. H. Foulds and
Ms. C. Zinn presented the report, responded to questions from the Committee and provided a
demonstration of the SAP E- Billing platform.
Councillor J. Gazzola entered the meeting at this time.
In response to questions, Ms. Zinn agreed to include Council members as part of the current E- Billing
Pilot program. She noted launch of the E- Billing Customer Platform is anticipated for October 2016.
2. CAO -16 -021 - ONTARIO 150 FUNDING PROPOSALS
Council considered Chief Administrator's Office report CAO -16 -021 (J. Young), dated August 29,
2016, regarding applications to the Ontario 150 Program. Mr. J. Young presented the report and
responded to questions from the Committee.
A motion was brought forward by Councillor S. Marsh, seconded by Councillor Y. Fernandes, to
approve the recommendation as outlined in the report including the Public Space Improvements for
consideration under the Ontario 150 Community Capital program, as well as an amendment to direct
staff to review the Kitchener Youth Strategy and Youth audit to determine whether a project can be
determined for submission under the Ontario 150 Partnership Program.
Mr. M. May, Deputy CAO — Community Services, indicated the only reason why a project was
identified for the Partnership Program was due to the size of the projects proposed. He indicated
depending on the size of the grant allocation, the reporting requirements of the grant would be too
onerous. He noted staff has no objections to reviewing the two Youth documents as requested to
determine if a suitable project could be identified. He further advised that staff can report back on the
status /proposals of that application, but due to the submission deadlines staff would not be able to
report back formally on a project if one could be identified.
SPECIAL COUNCIL MINUTES
AUGUST 2S,2016 ~139' CITY OF KITCHENER
Moved by Councillor S.Marsh
Seconded by Councillor Y.Fernandes /
"That Public Gpmoo Improvements be approved to be submitted for consideration under the
Ontario 16O Community Capital program; and,
That the Ontario Day special event be approved to be submitted for consideration under the
Ontario 1G0 Community Celebration Program; and,
That the Deputy Chief Administrative Officer, Finance and Corporate Services be authorized to
execuhe, on behalf ofthe Corporation of the City of Kihchener, contribution agreements for
funding under the Ontario 150 Grant Program, subject to the satisfaction of the City Solicitor;
and further,
That staff be directed to review the Kitchener Youth Strategy and Youth Audit to determine
whether o project contained therein would meet the ohbxia for submission to the Unbmho 150
Partnership Program."
Carried
3^ |N-CAMERA MEETING AUTHORIZATION
Councillor J. Gazzola declared pecuniary interest with regards to Item 1 being considered as part of
the in-camera session this date, as ofamily member is employed by one of the parties discussed,
Accordingly, he was not present for the duration of that discussion,
Councillor P. Singh respect to Item I being considered as part of the
in-camera mamo|on this dote, as members of his family owns real estate in the vicinity of the property
that imsubject to land acquisition / disposition. Accordingly, he was not present for the duration of that
discussion.
Moved by Councillor D.8ohnkder
Seconded by Councillor Y. Fernandes
"That mn in-camera meeting of City Council be held immediately following this special meeting 0m
consider a land acquisition / disposition matter and a personal matter."
Carried
On motion the meeting adjourned ot4:48p.m.
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MAYOR LERK