HomeMy WebLinkAbout2016-10-03
FINANCE AND CORPORATE SERVICES COMMITTEE
OCTOBER 3, 2016 CITY OF KITCHENER
The Finance and Corporate Services Committee met this date commencing at 10:36 a.m.
Present: Councillor S. Davey - Chair
Mayor B. Vrbanovic and Councillors Y. Fernandes, F. Etherington, K. Galloway-
Sealock, J. Gazzola, B. Ioannidis, 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
R. Regier, Executive Director, Economic Development
J. Edmondson, Interim Director of Utilities, Infrastructure Services
H. Gross, Director, Engineering Services
C. Tarling, Director, Legislated Services & City Clerk
R. Hagey, Director, Financial Planning
K. Carmichael, Interim Director, Transportation Services
D. Persaud, Manager, Gas Supply Operations & Regulations
L. Cooper, Manager, Development Engineering
B. Bennett, Manager, Business Development
K. Pietrzak, Project Manager, Development Engineering
C. Goodeve, Committee Administrator
D. Saunderson, Committee Administrator
INS-16-061 – NATURAL GAS RATES
1.
The Committee considered Infrastructure Services Department report INS-16-061, dated
September 22, 2016, recommending the setting of the 2017 supply, transportation and delivery
components of the natural gas rate, and the establishment of the Ontario Cap and Trade
component. Additionally, the Committee was in receipt this date of a memorandum from Mr. C.
Goodeve, containing a motion that was deferred from the September 26, 2016 Council
meeting regarding the establishment of new stabilization and capital reserve funds for the
Ontario Cap and Trade program.
Mr. D. Persaud provided an overview of the rates, as outlined in Report INS-16-061, advising
the proposed natural gas rates result in no change to the residential customer based on
Kitchener Utilities natural gas program costs. He stated the mandatory Ontario Cap and Trade
charge would increase the natural gas bill for the average residential customer by 10%
annually. He noted the net impact of this to the average residential customer equates to an
annual increase of approximately $71.
Responding to questions regarding the transportation program, Mr. Persaud advised the price
of moving gas from the Province of Alberta to Ontario has increased due to higher demand. He
confirmed that Kitchener Utilities and Union Gas’ transportation rates are currently on par;
however, Union Gas will implement a slight reduction to their rates as of January 2017. He
indicated this is partly due to the different methodology that Union Gas employs for calculating
transportation rates. He acknowledged Kitchener Utilities would be exploring the applicability of
this method and hope to report back with further details in 2017.
In response to questions, Ms. C. Fletcher advised recently, Kitchener Utilities conducted an
extensive customer survey and it showed that ratepayers valued the stability of an annual rate
change. She agreed to circulate a summary of that survey to the Committee.
Questions were raised regarding the motion that was deferred from the September 26, 2016
Council meeting. Mr. Chapman confirmed the Ontario Energy Board (OEB) has recently made
it a requirement that stabilization and capital reserve funds be established to mitigate rate
volatility. Responding to further questions regarding the implications of a rate reduction, he
indicated the rates are currently set to meet the minimum stabilization targets across the
enterprise. He stated the annual dividend from Kitchener Utilities largely funds the City’s
capital budget; and therefore, any reduction to the rates to mitigate the impact of the new Cap
and Trade program would require either an associated reduction in the City’s capital spending
FINANCE AND CORPORATE SERVICES COMMITTEE
OCTOBER 3, 2016 - 41 - CITY OF KITCHENER
INS-16-061 – NATURAL GAS RATES (CONT’D)
1.
or a property tax increase. He indicated the dividend transfer from Kitchener Utilities primarily
goes to fund capital projects related to recreational or cultural facilities. He confirmed every 1%
reduction to the Ontario Cap and Trade rate would equate to a 1% property tax increase.
On motion, Councillor P. Singh brought the recommendation contained in Report INS-16-061
forward for consideration.
A motion was brought forward by Councillor J. Gazzola to amend Councillor Singh’s motion to
direct staff to include messaging on the natural gas bill to indicate that the approximately 10%
additional monthly charge is related to the provincial Cap and Trade Program.
Responding to questions, Mr. Persaud advised the OEB has no restriction with respect to the
messaging that is included as part of a natural gas bill.
Carried Unanimously
Councillor Gazzola’s amendment was voted on and on a recorded
vote.
On motion by Councillor P. Singh -
it was resolved:
“That the supply component of the natural gas rate be decreased to 9.5000 cents per
cubic meter from 10.5000 cents per cubic meter for system gas customers of Kitchener
Utilities effective January 1, 2017; and,
That the transportation component of the natural gas rate be increased to 5.0000 cents
per cubic meter from 4.0000 cents per cubic meter for system gas customers of
Kitchener Utilities effective January 1, 2017; and,
That the delivery components of the natural gas rate be as proposed in Appendix ‘A’ of
Infrastructure Services Department report INS-16-061 for all Kitchener Utilities delivery
customers effective January 1, 2017, which represents no net change in delivery
revenue attributed to Kitchener Utilities’ costs; and,
That the Ontario Cap and Trade component of the natural gas delivery rate be
established at 3.5647 cents per cubic meter for all gas customers of Kitchener Utilities
effective January 1, 2017 in accordance with the requirements of Provincial legislation,
as outlined in Report INS-16-061; and further,
That staff be directed to include messaging on the Kitchener Utility Natural Gas bill to
indicate the approximately 10% additional monthly charge is to cover the cost of the
new Province of Ontario Cap and Trade Program.”
Voted on clause by clause.
Carried on a recorded vote.
Clause 4 -
In Favour:
Mayor B. Vrbanovic and
Councillors S. Davey, D. Schnider, K.
Galloway-Sealock, B. Ioannidis, S. Marsh, P.
Singh and F. Etherington.
Contra:
Councillors J. Gazzola, Y. Fernandes
and Z. Janecki.
Carried on a recorded vote.
Balance of motion -
In Favour:
Mayor B. Vrbanovic and
Councillors S. Davey, D. Schnider, K.
Galloway-Sealock, B. Ioannidis, S. Marsh, P.
Singh, F. Etherington, Y. Fernandes and Z.
Janecki.
FINANCE AND CORPORATE SERVICES COMMITTEE
OCTOBER 3, 2016 - 42 - CITY OF KITCHENER
INS-16-061 – NATURAL GAS RATES (CONT’D)
1.
Contra:
Councillor J. Gazzola.
On motion by Councillor K. Galloway-Sealock -
it was resolved:
“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
Appendix ‘C’ of Infrastructure Services Department report INS-16-067.”
The Committee recessed at 12:01 pm and reconvened at 1:03 p.m., Chaired by Councillor S. Davey
with all members present.
Pursuant to Chapter 25 (Procedure) of the Municipal Code, a motion was brought forward by
Carried.
Councillor J. Gazzola to discuss Consent items 2 and 4, which was voted on and
Councillor K. Galloway-Sealock entered the meeting at this time.
Councillor P. Singh left the meeting at this time.
INS-16-036 – FREEPORT FORCEMAIN PHASE 2 – CONSULTANT PURCHASE ORDER
2.
EXTENSION
The Committee considered Infrastructure Services Department report dated August 24, 2016
recommending the approval of the extension of the purchase order issued to MTE Consultants
Inc. for engineering consultant services related to the Freeport Forcemains. Mr. H. Gross, Ms.
L. Cooper and Ms. Katie Pietrzak were in attendance and responded to questions from the
Committee.
Mayor B. Vrbanovic and Councillors S. Marsh, Y. Fernandes and P. Singh entered the meeting at this
time.
On motion by Councillor B. Ioannidis -
it was resolved:
“That an extension of the purchase order be issued to MTE Consultants Inc. for
Engineering Consultant services related to the Freeport Forcemains from Hidden Valley
Drive to the intersection of Goodrich Drive and Wabanaki Drive in the amount of
$346,734., plus HST, be approved, as outlined in Infrastructure Services Department
report INS-16-036.”
INS-16-075 - TRAFFIC CALMING FOLLOW-UP REVIEW – PIONEER/BECHTEL
3.
The Committee considered Infrastructure Services Department report INS-16-075, dated
August 29, 2016 recommending the existing speed humps and raised crosswalk on Bechtel
Drive and existing speed cushions and raised crosswalk on Pioneer Drive be maintained on a
permanent basis.
On motion by Councillor B. Ioannidis -
it was resolved:
“That the existing five (5) speed humps and one (1) raised crosswalk be maintained
permanently on Bechtel Drive between Doon Village Road and Black Walnut Drive; and
further,
That the existing two (2) speed cushions and one (1) raised crosswalk be maintained on
a permanent basis on Pioneer Drive between Doon Village Road and Black Walnut
Drive, as outlined in Infrastructure Services Department report INS-16-075.”
FINANCE AND CORPORATE SERVICES COMMITTEE
OCTOBER 3, 2016 - 43 - CITY OF KITCHENER
CAO-16-029 – WATERLOO REGION ECONOMIC DEVELOPMENT CORPORATION –
4.
GERMAN MISSION
The Committee considered Chief Administrator’s Office report CAO-16-029, dated September
21, 2016 recommending that in accordance with Council Policy II-35 (Conference, Seminar
and Meeting Attendance and Expenses) that Brian Bennett be approved to attend the
Waterloo Region Economic Development Corporation’s Foreign German Aftercare mission
being held November 2016, in Germany. Mr. B. Bennett was in attendance and responded to
questions from the Committee.
It was noted any recommendation arising from this matter would be considered at a special
Council meeting later this date.
Carried
The following motion was voted on and on a recorded vote, with Mayor B. Vrbanovic
and Councillors K. Galloway-Sealock, B. Ioannidis, F. Etherington, D. Schnider, P. Singh, S.
Davey, S. Marsh and Y. Fernandes voting in favour; and, Councillors J. Gazzola and Z.
Janecki voting in opposition.
On motion by Councillor B. Ioannidis -
it was resolved:
“That in accordance with Council Policy II-35 (Conference, Seminar and Meeting
Attendance and Expenses), that participation of Brian Bennett, Manager Business
Development, in the Waterloo Region Economic Development Corporation’s Foreign
German Aftercare Mission being held in Germany, November 2016 be approved, as
outlined in Chief Administrator’s Office report CAO-16-029.”
FCS-16-150 – INTEGRITY COMMISSIONER – OPTIONAL SERVICES FOLLOW-UP –
5.
DEFERRED FROM JUNE 27, 2016 COUNCIL MEETING
The Committee considered Finance and Corporate Services Department report FCS-16-150,
dated September 22, 2016 recommending various optional services that could be provided to
members of Council by the Integrity Commissioner and that the budget increase associated
with the optional services be referred to the draft 2017 Operating Budget. Ms. C. Tarling was in
attendance and responded to questions from the Committee.
In response to questions, Mr. D. Chapman advised the budget allocation for the Integrity
Commissioner is not accumulative; any funds remaining in the account at the end of the fiscal
year would be transferred to the Tax Stabilization Reserve Fund (TSRF). He stated if it was
Council’s wish to carry over a balance for future years, a reserve fund would need to be
established.
Questions of clarification were raised regarding the recommendation as outlined in Report
FCS-16-150, Mr. Chapman advised that if the motion is approved, it would provide direction to
staff to allocate funds to the optional services through the 2017 budget process.
A motion was brought forward by Councillor B. Ioannidis to refer consideration of this matter
with the inclusion of Option 1: Education and Training Services; as well as, Option 4:
Combining MCIA legal advice with access to formal advice and consultations to November 14,
2016 Finance and Corporate Services Committee meeting (Operating Budget).
Councillor J. Gazzola brought forward a motion to defer consideration of this matter until
further information is received from the Province on the proposed changes to the Municipal
Act; and, whether those changes would impact the Municipal Conflict of Interest Act.
LOST.
Councillor Gazzola’s deferral motion was then voted on and
Carried.
The following motion was then voted on and was
On motion by Councillor B. Ioannidis -
it was resolved:
FINANCE AND CORPORATE SERVICES COMMITTEE
OCTOBER 3, 2016 - 44 - CITY OF KITCHENER
FCS-16-150 – INTEGRITY COMMISSIONER – OPTIONAL SERVICES FOLLOW-UP –
5.
DEFERRED FROM JUNE 27, 2016 COUNCIL MEETING (CONT’D)
referred to November 14,
“That consideration of the following recommendation be
2016 Finance and Corporate Services Committee meeting (Operating Budget)
to
allow for the development of an Issue Paper to outline:
“That ADR Chambers, Toronto, Ontario provides the following Optional Services
as outlined in Finance and Corporate Services report FCS-16-150 at their quoted
hourly rates for a contract term of three (3) years with the option to renew for two
(2) additional years with the same terms and pricing:
Option #1 - Education and Training Services;
Option #4 - Combining MCIA legal advice with access to formal advice and
consultations; and,
That the budget increase associated with these optional services be included in
the draft 2017 operating budget as a service level increase; and further,
That staff report back at a future date with the requisite policy changes to
implement any optional services selected by Council.”
FCS-16-152 – CLEAN WATER AND WASTEWATER FUND
6.
The Committee considered Finance and Corporate Services Department report FCS-16-152,
dated September 23, 2016 recommending the full reconstruction projects for Alice
Avenue/Karn Street and Hugo Crescent/Lorne Avenue be submitted for consideration under
the Clean Water and Wastewater Fund (CWWF). Mr. R. Hagey was in attendance and
responded to questions from the Committee.
On motion by Councillor K. Galloway-Sealock -
it was resolved:
“That the following project applications be approved to be submitted forconsideration
under the Clean Water and Wastewater Fund (CWWF):
a. Alice Avenue/Karn Street Full Reconstruction
b. Hugo Crescent/Lorne Avenue Full Reconstruction, as outlined in Finance and
Corporate Services Department report FCS-16-152.”
CAO-16-019 – AUGUST BUSINESS PLAN STATUS UPDATE
7.
Pursuant to Chapter 25.10.9(5) (Procedure) of the Municipal Code, a motion was brought
forward by Councillor Y. Fernandes to discuss an Information Item, which was voted on and
Carried.
was
The Committee considered Chief Administrator’s Office report CAO-16-019, dated September
22, 2016 outlining the status of the projects on the City of Kitchener 2016 Business Plan. Mr.
M. May was in attendance and responded to questions from the Committee.
ADJOURNMENT
8.
On motion, this meeting adjourned at 2:18 p.m.
C. Goodeve D. Saunderson
Committee Administrator Committee Administrator