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HomeMy WebLinkAbout2016-09-12 FINANCE AND CORPORATE SERVICES COMMITTEE SEPTEMBER 12, 2016 CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 1:35 p.m. Present: Councillor S. Davey - Chair Mayor B. Vrbanovic and Councillors Y. Fernandes, K. Galloway-Sealock, S. Marsh, D. Schnider, Z. Janecki and P. Singh. Staff: J. Willmer, Chief Administrative Officer D. Chapman, Deputy CAO, Finance & Corporate Services M. May, Deputy CAO, Community Services C. Fletcher, Interim Executive Director, Infrastructure Services J. Readman, Interim Executive Director, Infrastructure Services C. Tarling, Director, Legislated Services & City Clerk J. Edmondson, Interim Director, Utilities C. Farrell, Manager, Waterloo Region SBC D. Persaud, Manager, Gas Supply Operations & Regulations C. Goodeve, Committee Administrator Pursuant to Chapter 25 (Procedure) of the Municipal Code, a motion was brought forward by Carried. Councillor Z. Janecki to discuss Consent item 1 which was voted on and INS-16-071 - PARKING LOT LEASE AGREEMENT - 194 KING STREET EAST 1. The Committee considered Infrastructure Services Department report INS-16-071, dated August 2, 2016, recommending approval of an agreement to operate public parking at 194 King Street East with the new owner. On motion by Councillor Y. Fernandes - it was resolved: That the Mayor and Clerk be authorized to execute an agreement to operate public parking at 194 King Street East with the new owner, 2425754 Ontario Ltd., subject to the satisfaction of the City Solicitor, as outlined in Infrastructure Services Department report INS-16-071 CAO-16-022 - WATERLOO REGION SMALL BUSINESS CENTRE 2. - AGREEMENT WITH THE PROVINCE OF ONTARIO - YOUTH SKILLS CONNECTIONS FUND 2016-2017 Councillor S. Marsh entered the meeting at this time. The Committee considered CAO-16-022, dated August 26, 2016 recommending a one year funding agreement with the Province of Ontario to undertake the Youth Skills Connections program. On motion by Councillor K. Galloway-Sealock - it was resolved: That the Mayor and Clerk be authorized to execute a one year funding agreement, subject to the satisfaction of the City Solicitor, with the Province of Ontario to undertake the Youth Skills Connections program, to be delivered by the Kitchener Waterloo - 16-022 FCS-16-120 - CORPORATE POLICY REVIEW 3. - IDENTIFICATION OF The Committee considered Finance and Corporate Services Department report FCS-16-120, dated August 20, 2016 recommending the classification of the corporate policies listed in Administrative policies. In addition, the Committee was in receipt of a memorandum from Mr. C. Goodeve, dated September 7, 2016 indicating that four policies had been re-classified since Report FCS-16-120 was finalized, and an updated version of Appendix A was subsequently circulated. FINANCE AND CORPORATE SERVICES COMMITTEE SEPTEMBER 12, 2016 - 38 - CITY OF KITCHENER FCS-16-120 - CORPORATE POLICY REVIEW 3. - At the request of Councillor K. Galloway-Sealock, Mr. J. Readman agreed to provide further information clarifying the differences between Policy I-1135 and Policy I-1140, which both pertain to storm water management. In response to questions, Ms. C. Tarling advised staff anticipate bringing forward a supplementary report recommending the repeal and/or housekeeping amendments for some ability to prescribe rules and does not impact the content of those policies. He added the intent of this initiative is to codify the internal administrative practices in a consistent and easy to find manner. Mayor B. Vrbanovic entered the meeting at this time. Councillor P. Singh declared a pecuniary interest with respect to Policy I-1220 (Snow Removal - Arthur Place) as members of his family own property on that street; accordingly, he did not take part in any discussion or voting regarding that Policy. Responding to questions regarding Policy I-1130 (Site Plan Agreements), Mr. M. May agreed to discuss the Site Plan Review Committee process in greater detail with Councillor Fernandes at a later date. On motion by Councillor Y. Fernandes - it was resolved: Policy I-1220 (Snow Removal - Arthur Place) - Carried. Pecuniary Interest & Abstention: Councillor P. Singh as family members own property in the area subject. Carried. Balance of motion - INS-16-067 - ONTARIO CAP AND TRADE PROGRAM - BILL 172, O.REG. 144/16 4. - OVERVIEW AND COMPLIANCE STRATEGY The Committee considered Infrastructure Services Department report INS-16-067, dated September 1, 2016 regarding the impact of the new Ontario Cap and Trade Program on Kitchener Utilities. Mr. D. Persaud presented an overview of the Government of Ontario Program, which is aimed at reducing the impacts of climate change by cutting emissions by 15% from 1990 levels by 2020. He advised it is mandatory for all natural gas utilities across the Province to participate in this Program and they must purchase emission allowances / credits on behalf of residential, commercial and small industrial customers. He stated Kitchener Utilities is estimated to require approximately 508,000 emission allowances at a cost of $10- 12M annually, which equates to a $75 increase on the average annual residential natural gas bill. He indicated that carbon is to be a new commodity, and must be procured, stored and expensed as part of the natural gas business in Ontario. He added in order to administer Cap and Trade regulations, it is recommended a new stabilization reserve fund and capital reserve fund be created. He noted details regarding the creation of a new carbon portfolio and compliance plan as well as amendments to existing gas purchasing policy to account for new carbon commodity will be brought forward in early 2017. FINANCE AND CORPORATE SERVICES COMMITTEE SEPTEMBER 12, 2016 - 39 - CITY OF KITCHENER INS-16-067 - ONTARIO CAP AND TRADE PROGRAM - BILL 172, O.REG. 144/16 4. - OVERVIEW AND COMPLIANCE STRATEGY In response to questions, Mr. Persaud advised 95% of the money collected by Kitchener Utilities for the Cap and Trade Program is directed to the Provincial Green Investment Fund that is projected to have an annual balance of $1.9B. He stated the remaining 5% collected by the City would go toward administering the Program. He noted the annual cost is based on the anticipated auction floor price of $18.09; however, there is a risk that this could be substantially higher. He advised that many of the details regarding this Program are unknown at this time; however an update will be provided once more information is released by the Province. He acknowledged that as part of the update, information could be provided on the type of projects which may qualify for offset credits. Questions were raised with respect to implementing the standard natural gas rate increase in November 2016 and then adding the Cap and Trade rate increase in January 2017. Mr. Persaud advised it is preferable to align the rate change to reduce communication costs and to simplify the information provided to the customers. Responding further, Mr. D. Chapman confirmed that as per the legislation, the Cap and Trade rate must come into effect as of January 1, 2017. He requested that a clear indication be provided at the October 3, 2016 Committee meeting as to whether there will be a single or dual rate change, due to the timing of when the subsequent notice would have to be issued. On motion by Councillor K. Galloway-Sealock, the recommendation contained in Report INS- 16-067 was brought forward for consideration with an additional clause directing staff to advocate for Kitchener Utilities to gain access to the Provincial Green Investment Fund. A motion was brought forward by Councillor Y. Fernandes to defer Clause 2 of the staff recommendation and utilize the existing gas stabilization and capital reserve funds until more details are known regarding the need for creating new funds. LOST on and was on a recorded vote, with Councillors Z. Janecki and Y. Fernandes voting in favour; and, Mayor B. Vrbanovic and Councillors K. Galloway-Sealock, D. Schnider, P. Singh, S. Davey and S. Marsh voting in opposition. Councillors B. Ioannidis, F. Etherington and J. Gazzola were not in attendance and accordingly did not vote. Carried The following motion was voted on and on a recorded vote, with Mayor B. Vrbanovic and Councillors K. Galloway-Sealock, D. Schnider, P. Singh, S. Davey, S. Marsh and Y. Fernandes voting in favour; and, Councillor Z. Janecki voting in opposition. Councillors B. Ioannidis, F. Etherington and J. Gazzola were not in attendance and accordingly did not vote. On motion by Councillor K. Galloway-Sealock - it was resolved: That staff be directed to develop a Trade Program and report back in early 2017; and, That a new stabilization and capital reserve fund be created to mitigate rate volatility and fund capital projects relating to the Cap and Trade program, as outlined in -16-067; and further, That staff be directed to advocate for Kitchener Utilities to gain access to the Provincial Green Investment Fund of $1.9B annually from the Cap and Trade Program to help reduce greenhouse gas emissions in the City of Kitchener ADJOURNMENT 5. On motion, this meeting adjourned at 3:35 p.m. C. Goodeve Committee Administrator