HomeMy WebLinkAboutCouncil - 2017-05-15 S6y,xy Fill WK9111LIN10khIIki Lei 9�1
MAY 15, 2017 CITY OF KITCHENER
A special meeting of City Council was held at 1:35 p.m. this date, chaired by Mayor B. Vrbanovic with
all members present except Councillor S. Marsh.
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.
IN -CAMERA MEETING AUTHORIZATION
Moved by Councillor B. loannidis
Seconded by Councillor Y. Fernandes
"That an in -camera meeting of City Council be held this date to consider a land acquisition /
disposition matter, a personal matter and a matter subject to solicitor -client privilege."
Carried
The meeting then recessed at 1:36 p.m. and reconvened at 3:11 p.m. chaired by Mayor B. Vrbanovic
with all members present.
INS -17-039 —ASSET MANAGEMENT AND WATER INFRASTRUCTURE PROGRAM
Council considered Infrastructure Services Department report INS -17-036 (D. McGoldrick, J. Winter,
and A. Bennett), dated April 26, 2017, providing an overview of the City's comprehensive Asset
Management Program and Water Infrastructure Program (WIP), and additional information on
developing rate options for the 2018 budget discussion. In addition, Council was in receipt this date of
a ranking sheet to assist with facilitating feedback on three questions relating to variables as outlined
in the report and presentation.
Ms. D. McGoldrick, Director of Operations, presented the report which aimed to provide a clearer
understanding of the rates and variables that influence rate recommendations. Ms. McGoldrick
advised staff is seeking Council feedback on the variables to be considered in the Water
Infrastructure Program to develop rate options for the 2018 budget process, and to receive feedback
on the following questions:
1. Are there any variables missing or should any variables be removed?
2. What are the top three variables you feel are most important to consider?
3. Is there anything that stands out from the guiding principles or resident feedback?
Mr. J. Winter, Director of Asset Management, provided a brief overview of the requirements for a
comprehensive Asset Management Program. He advised the goal of asset management is to develop
a plan for physical assets which balances the required level of service in a most cost-effective way
with an acceptable level of risk. Mr. Winter noted the comprehensive Asset Management Program
outlines three key philosophies:
1. Balancing asset condition to level of service;
2. Allocating financial resources amongst priorities; and,
3. Shifting from a reactive to proactive maintenance approach.
Ms. McGoldrick indicated the WIP encompasses drinking water, sanitary sewer and storm water
management. She noted in relation to asset management, the WIP applies a comprehensive
approach which recognizes the influences of maintenance and capital activities, rates and other
considerations to the overall program.
Ms. McGoldrick identified external and internal drivers of rate recommendations, explaining the City
can only control internal rate drivers. She explained internal (controllable) rate drivers include: capital
investment; maintenance programs; reserve strategies; and, internal revenues, while external
(uncontrollable) rate drivers include: legislation; consumption; region rates; grant funding; and,
extreme weather. She advised 46% of the City's water rate is set by the Region of Waterloo.
SPECIAL COUNCIL MINUTES
MAY 16, 2017 .80 - CITY OF KITCHENER
2. INS -17-039 — ASSET MANAGEMENT AND WATER INFRASTRUCTURE PROGRAM
(CONT'D)
In response to questions, Ms. C. Fletcher, Interim Executive Director, Infrastructure Services,
indicated changing rate variables does not necessarily correlate with rate increases or decreases.
She acknowledged there are variables that will: need to be explored further to identify what the impact
will be on rates.
Members were requested to complete and submit the circulated ranking sheet to identify the top three
variables for staff to consider when preparing rate options for the 2018 budget process. Additionally,
members were requested to identify variables missing or those that should be removed from the list
identified by staff.
Several members suggested removing asset sale, debt tolerance and reserve levels from the list,
while keeping estimated useful life of assets and maintenance program as important variables for
staff to consider.
Ms. McGoldrick advised staff will use the suggestions gathered to evaluate options and associated
rate impacts for the Water Infrastructure Program and wil'il report back to the Finance and Corporate
Services Committee on September 11, 2017 with recommendations. She noted Council's decision at
the September 11 meeting will guide the 2018 budget discussions.
On motion the meeting adjourned at 5:00 p.m.
MAYOR
