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HomeMy WebLinkAboutCouncil Agenda - 2019-01-14 SJanuary 11, 2019 Mayor B. Vrbanovic and Members of Council CHRISTINE TARLING Director of Legislated Services & City Clerk Corporate Services Department Kitchener City Hall, 2nd Floor 200 King Street West, P.O. Box 1118 Kitchener, ON N2G 4G7 Phone: 519-741-2200 x 7809 Fax: 519-741-2705 Chri sone. tarling@kitchener. c a Re: Special Council Meeting — Monday, January 14, 2019 Notice is hereby given that Mayor B. Vrbanovic has called a special meeting of City Council to be held in the Council Chamber on Monday, January 14, 2019 immediately following the Special Finance and Corporate Services Committee meeting. 1. In -camera Meeting Authorization (approximately 1:00 p.m.) Council is asked to enact the following resolution to authorize an in -camera meeting: "That an in -camera meeting of City Council be held immediately following this special meeting to consider a labour relations matter which is also subject to solicitor -client privilege." 2. DSD -19-026 — Bill 66 Restoring Ontario's Competitiveness Act, 2018 (approximately 2:00 p.m.) Attached is Development Services Department report DSD -19-026 (A. Pinard), dated January 9, 2019. Mayor B. Vrbanovic has given Notice of Motion that he will introduce the following motion for consideration this date: "BE IT RESOLVED THAT Kitchener City Council express concern to the provincial government with respect to planned changes in the proposed Bill 66, in its present form, that may allow for an "open for business" planning bylaw; and, BE IT FURTHER RESOLVED THAT the Government of Ontario be requested to reconsider the proposed changes to the Planning Act included in Bill 66, in its present form, which speak to the creation of the open -for -business bylaw; and, BE IT FURTHER RESOLVED THAT as input into that re -consideration, the City of Kitchener reaffirms its support for the principles of the Countryside Line and the Protected Countryside designation to appropriately manage growth through comprehensive planning review, analysis and community consultation; and, Accessible formats and communication supports are available upon request. If you require assistance to take part in a city meeting or event, please call 519-741-2345 or TTY 1-866-969-9994. CHRISTINE TARLING Director of Legislated Services & City Clerk Corporate Services Department Kitchener City Hall, 2nd Floor 200 King Street West, P.O. Box 1118 Kitchener, ON N2G 4G7 Phone: 519-741-2200 x 7809 Fax: 519-741-2705 Chri sone. tarling@kitchener. c a BE IT FURTHER RESOLVED, that the City of Kitchener reaffirms its support for meaningful public consultation on all land use planning — decision making matters, and , the continuing support to appropriately manage growth that achieves the protection of source water, farmland, and sensitive natural areas; and, FINALLY, BE IT RESOLVED that a copy of this motion be sent to the Association of Municipalities of Ontario, the Premier, the Minister of Municipal Affairs, and all MPP's in Waterloo Region." 3. Operating and Capital Budget — Direction (approximately 3:00 p.m.) Council is requested to ratify directions given to staff during the Operating and Capital Budget deliberations. 4. DSD -19-006 — Retail Cannabis Stores in Kitchener (approximately 4:30 p.m.) Attached is Development Services Department report DSD -19-006 (J. Readman), dated January 11, 2019. 5. By-laws for Three Readings a. To confirm all actions and proceedings of the Council. Yours truly, C. Tarling Director of Legislated Services & City Clerk c: Corporate Leadership Team J. Bunn D. Saunderson J. Rodrigues Records Accessible formats and communication supports are available upon request. If you require assistance to take part in a city meeting or event, please call 519-741-2345 or TTY 1-866-969-9994. CITY OF KITCHENER COUNCIL IN -CAMERA AGENDA DATE: MONDAY, JANUARY 14, 2019 � � I►�i I F[�I�l a►�i � LOCATION: CAUCUS ROOM Note: Any member of Council may question the appropriateness of a listed in -camera item. This may be done during the Special Council meeting or at the beginning of the in - camera session. ITEMS FOR CONSIDERATION Labour Relations / Solicitor -Client Privilege (Bill 66 — Proposed Amendments) Staff will provide a verbal update with respect to this matter. (15 min) C. TARLING CITY CLERK Staff Repold Development Services Department J K ){ vF-x www.kitchen er. c a REPORT TO: Special Council DATE OF MEETING: January 14, 2019 SUBMITTED BY: Justin Readman, General Manager, Development Services, 519-741- 2200 ext. 7646 PREPARED BY: Alain Pinard, Director of Planning, 519-741-2200 ext. 7319 Margaret Fisher, Director of Procurement, 519-741-2200 ext. 7214 WARD (S) INVOLVED: All DATE OF REPORT: January 9, 2019 REPORT NO.: DSD -19-026 SUBJECT: BILL 66, RESTORING ONTARIO'S COMPETITIVENESS ACT, 2018 RECOMMENDATION: That Report DSD -19-026, be submitted as City of Kitchener Staff comments to the Ministry of Municipal Affairs and Housing to Bill 66, Restoring Ontario's Competitiveness Act, 2018; and further, That a copy of Report DSD -19-026 be sent to the Association of Municipalities of Ontario, the Premier, the Ministry of Municipal Affairs, and Waterloo Region Members of Provincial Parliament. BACKGROUND: The Restoring Ontario's Competitiveness Act, 2018 was given first reading by the Provincial legislature on December 6, 2018. Bill 66 comprisesl2 schedules and affects 18 different pieces of provincial legislation, including legislation of interest to municipalities. A brief summary of the Bill, which identifies all of the affected legislation, is attached as Appendix A. According to the Province of Ontario the proposed amendments are to "stimulate business investment, create good jobs, and to make Ontario more competitive by cutting unnecessary regulations that are inefficient, inflexible or out of date". This report provides an overview and comments with respect to Schedules 9 and 10, which are of particular interest to the City of Kitchener. The deadline for comments is January 20, 2019. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 2-1 REPORT: Schedule 9 — Amendments to the Labour Relations Act, 1995 (Construction Employer Designation) The proposed amendments would clarify that municipal governments are not construction employers. From a procurement perspective, Schedule 9 is a positive proposal for the City. Currently, when the City completes a tender involving masonry work it is bound to use unionized masons because of this designation. The implementation of Bill 66 will remove this restriction, opening -up the number of eligible bidders for these types of projects and would likely decrease costs for the municipality. Schedule 10 — Amendments to the Planning Act (`Open For Business' Tool) ('nntPxt Bill 66 proposes a new planning tool called an "open -for -business" planning by-law. An open - for -business planning by-law would allow municipalities to exempt development proposals for major employment uses from a long list of statutory provisions, policies and regulations and would appear to be an "all or nothing" proposition. The exemption list includes all provincial plans (e.g. Growth Plan), the Provincial Policy Statement, all applicable official plans, section 39 of the Clean Water Act, and numerous Planning Act provisions. A major employment use is defined as an employer that provides 50 jobs in municipalities with a population of less than 250,000 and 100 jobs in a larger municipality. The City of Kitchener supports the government's objective of wanting to facilitate the establishment of new major employment uses. Major employers are important assets to communities and often provide benefits that go beyond job creation and economic gain. The City of Kitchener also support the fact open -for -business planning by-laws are an optional tool. That is, municipalities do not have to pass such a by-law. However, several aspects of Schedule 10 give rise to concern or require clarification. Environmental and Safety Concerns The "all or nothing" approach is of concern because the risks will vary from one particular "regulation" to another and from one municipality to another. For example, Section 39 of the Ontario Clean Water Act, 2006, is a very significant consideration in ground water dependent communities like the Region of Waterloo. There is major risk associated with exempting development from source water protection plans. Given the potential safety implications to the Region's drinking water supply the City of Kitchener does not support this aspect of the Bill. The Province is urged to consider allowing municipalities to "pick and choose" which "rules" would be exempted by an open -for -business planning by-law. The environmental risks associated with many of the exemptions are a disincentive for pursuing this tool. 2-2 Municipalities that decide not to adopt an open -for -business planning by-law due to environmental protection concerns may still be negatively impacted due to cross -boundary environmental impacts. Employment Definition Concerns There are concerns with defining major employers by the number of employees. Since the proposed changes do not contain sufficient detail the City of Kitchener has questions regarding how the number of employees would be ensured over time, whether there would be a distinction between full and part-time employees and what mechanisms would be in place to ensure jobs continue to meet this threshold over time. In addition, it is not clear what happens to a land use approved under an open -for -business planning by-law if the employer is bought out, forced to lay off employees or goes bankrupt or whether the agreement be transferable. If major employers are to be defined by the number of employees, we urge the Province to consider thresholds that are much higher than 50 and 100 jobs (depending on population size). While employers of all sizes make valuable contributions to a community's economy, employers of 50 and 100 jobs are far from the largest in most communities. The thresholds should be comparable to levels that would justify a Minister's Zoning Order. We also question why the Bill does not simply enhance the Minister's Zoning Order framework. Efficiency and Consultation Concerns The City of Kitchener questions whether developing customized development agreements to put checks and balances in place will actually be more expeditious than using existing processes and template agreements. Because open -for -business planning by-laws would exempt zoning by-law amendments from public consultation, there should be some form of mandatory public consultation prior to establishing such a by-law. Public consultation is a critical component of municipal planning where the broader public interest is the overarching priority. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city's strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. 2-3 CONCLUSION: The City of Kitchener has a long history of innovation and is interested in effective and efficient governance. However, the City of Kitchener does not support Bill 66 in its current form for the reasons cited in this report. In 2018 the City of Kitchener launched a development services review. This review aims to create a made in Kitchener approach to work with the development industry and citizens to streamline development approvals. Streamlining development approval processes is a key objective of Kitchener's development services review, and in general speaks to the City's commitment to improve customer service at -large through red tape reduction. The result will be a made -in Kitchener approach that addresses the local context, yet expedites the approval of new major employment uses. ACKNOWLEDGED BY: Justin Readman, General Manager, Development Services Appendix A — Summary of Bill 66 2-4 Appendix A Summary of Bill 66 The proposed Restoring Ontario's Competitiveness Act 2018, if passed, would make the following legislative changes: Schedule 1; Ministry of Agriculture Food and Rural Affairs • Remove outdated and time-consuming reporting requirements under the Ministryof ,agriculture, Food and Rural Affairs Act including ones required for loan guarantee programs. • Amend the Agricultural Employees Protection Act (AEPA)to cover ornamental horticultural .................. workers. • Enable amendments under the Farm Registration and Farm Organizations Fund;ng✓ ctto simplify delivery of programs and enhance responsiveness. Schedule 2. Ministry of the Attorney General • Repeal the Pawnbrokers Act. Schedule 3: Ministry of Education • Remove restrictions on home-based child care providers, including allowing additional children, to make it easier for parents to find affordable child care. • Lower the age of children that authorized recreation programs can serve from 6 to 4. Schedule 4• Ministry of Energy, Northern Development and Mines • Repeal the authority of the Ontario Energy Board to set rates for Unit Sub Metering Providers (USMPs) Schedule S. Ministry of the Environment, Conservation and Darks • Repeal the Toxics Reduction Act 2009 by 2021, rernove the toxics red uctian plan i n 2019 and rely on the robust and science -based Federal Chemicals Management Plan • See "Repeal the Torics Reduction Act 2009and all associated regulations by December 311, 2021 " (ERC. #X113-4234) and • See "Planninrg and reporting changes ander the toxics reduction program and Ontario Regulation 455109" (ER,Q # (113-4235) 2-5 Schedule 6: Ministry of Finance • Stop requiring a new regulation whenever businesses and non -profits merge single - employer pension plans into jointly sponsored pension plans. Schedule 7: Ministry of Government and Consumer Services • Reduce where operating engineers are required to supervise. • Repeal the Wireless Services Agreements Act 2013and harmonize with the federal government's national wireless code. Schedule 8: Ministry of Health and Long -Term Care • Modernize and streamline administrative requirements for the operators of long-term cane homes. Schedule 9: Ministry of Labour • Amend the Employment Standards Act, 2000 (ESA)to reduce regulatory burden on businesses, including no longer requiring them to obtain approval from the Director of Employment Standards for excess hours of work and overtime averaging. + Stop requiring employers to post the Employment Standards Act (ESA) poster in the workplace, but retain the requirement that they provide the poster to employees. • Amend the Labour Relations Act 1995 to explicitly deem public bodies, including municipalities, school boards, hospitals, colleges and universities, as "non -construction employers". Schedule 10: Ministry of Municipal Affairs and Housing + Introduce a new economic development tool and remove planning barriers to expedite major business investments and speed up approvals by about two years. • See "Proposed open -for -business planning tool" (ERO # 013-4125) and * See "New Regulation under the Planning Act for Open -for -Business Planning Tool (ERO. 013-4239) Schedule 11: Ministry of Training, Colleges and Universities • Amend the Private Career Colleges Act, 2005to reduce administrative burdens. Schedule 12: Ministry of Transportation • Allow electronic documentation for International Registration Plans Source: Environmental Registry of Ontario 2-6 Staff Re art �r J R Corporate Services Department www.kitchenerca REPORT TO: Special Council DATE OF MEETING: January 14, 2019 SUBMITTED BY: Justin Readman, General Manager, Development Services, 519-741- 2200 ext. 7646 PREPARED BY: Gloria MacNeil, Director of Bylaw Enforcement 519-741-2200 ext. 7952, Helen Fylactou, Manager of Licensing, 519-741-2200 ext. 7854, Janine Oosterveld, Manager of Site Development and Customer Service, 519-741-2200 ext. 7076 WARD (S) INVOLVED: ALL DATE OF REPORT: January 11, 2019 REPORT NO.: DSD -19-006 SUBJECT: Retail Cannabis Stores in Kitchener RECOMMENDATION: That the City of Kitchener opt -in to allow retail cannabis stores; and, That the Municipal Retail Cannabis Store Policy Statement as outlined in Appendix "A" as attached to report DSD -19-006 be adopted; and further, That the Manager of Site Development and Customer Service or designate be delegated authority to provide written submissions to the registrar under the Cannabis Licence Act, 2018, regarding the issuance of proposed retail cannabis store licences within the City of Kitchener in accordance with the commenting criteria as outlined in the City of Kitchener's Municipal Retail Cannabis Store Policy Statement. BACKGROUND: On October 17, 2018, recreational cannabis was legalized across Canada. The provincial Cannabis Licence Act, 2018 (the "Act') creates the framework around the retail and consumption of cannabis, which includes permitting private retail cannabis stores and gives municipalities until January 22, 2019 to either opt -in (permit) or opt -out (prohibit) of such stores. The Act will permit private `brick and mortar' retail stores beginning in April 2019 with the Province of Ontario being responsible for the licensing and regulating of these stores through the Alcohol and Gaming Commission of Ontario (ACCO). On December 13, 2018, the Province announced a change to the legislation to initially limit the number of retail stores to twenty-five (25) only for April 2019. Amongst the 25 authorizations, the Province has further restricted the number of stores with allocation *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. C=I rules resulting in a maximum of seven (7) retail store authorizations for the "West Region", which includes the following census divisions: Waterloo; Dufferin; Wellington; Hamilton; Niagara; Haldimand-Norfolk; Brant; Perth; Oxford; Elgin; Chatham -Kent; Essex; Lambton; Middlesex, Huron; Bruce; Grey; Manitoulin. REPORT: The Act requires Council to decide to opt -in or opt -out of permitting stand-alone, retail cannabis stores. Based on the recent changes to the legislation, even if a municipality opts -in, the Province still needs to select the municipality and allocate one or more of the 7 retail store authorizations to the municipality. Even if Council opts -in, there is no guarantee that Kitchener will be selected as a municipality for the first available licenses. The Province has not confirmed when they will be opening up the next phase of issuing retail store authorizations after April 2019. Staff recommends Council opt -in as cannabis is now a legal substance, similar to alcohol and tobacco, and should not be treated differently. Permitting provincially -licensed retail stores would provide a safer alternative to the illegal market. As well, with retail occurring online regardless of any municipal decision, staff is of the opinion that allowing the retail cannabis stores would help achieve the objectives of protecting youth, protecting health and safety, and preventing illicit activity. Prohibiting retail cannabis stores would limit residents' access to legal and federally -inspected cannabis. The only legal access would be through the online store (Ontario Cannabis Store) or by visiting another municipality that permits retail cannabis stores. Staff are of the opinion that the benefits of allowing stores would include: • Product Safety: Federally controlled and inspected cannabis; • Economic Development & Job Opportunities: Opportunities through the establishment and operation of the business; • Harm Reduction: Less opportunity for illegal market; and, • Provincial Funding: Greater financial support for host municipalities. The AGCO has implemented strict controls designed to minimize social harm, prevent access and sales to minors, address safety issues, and ensure products are only sourced from licensed producers. The AGCO has also established standards and requirements for the store operator, the physical retail store, and the retail store manager. Some of the regulations include floor plan designs, surveillance systems and security requirements, background checks, financial records, bookkeeping, and advertising and promotions standards. If retail cannabis stores are prohibited in Kitchener, staff are of the opinion that more illegal storefronts and black market cannabis are likely to appear which would have a larger impact for police and municipal enforcement resources. As well, opting out would not support the governmental goal to protect youth, protect public health and safety, and prevent illicit activities. 4-2 Whether or not Council chooses to opt -in or opt -out, recreational cannabis is available online through the Ontario Cannabis Store and therefore consumption of cannabis will be occurring within Kitchener. MUNICIPAL RETAIL CANNABIS STORE POLICY STATEMENT: The new application process through the ACCO, allows municipalities to comment during a 15 -day public notification process with respect to proposed locations. To ensure consistency for commenting, the Association of Municipalities Ontario (AMO) has recommended that municipalities have councils adopt a "Municipal Retail Cannabis Store Policy Statement" which includes what the municipality deems as local sensitive uses. Since providing comment is purely administrative in nature and because of the short turn- around time for commenting to the ACCO, staff recommends that Council delegate its authority to staff to respond to the AGCO in accordance with the policy statement (Appendix "A"). The Manager of Site Development and Customer Service or designate will be tasked with reviewing notifications posted on the AGCO website and distributing the application for comment to appropriate divisions, as well as a point person at the Region of Waterloo. Once completed, written comment, as it pertains to public interest and using the criteria within the policy statement will be submitted to the AGCO for its consideration. All retail cannabis stores are subject to the requirements of the Zoning bylaw as a retail use. A zoning (occupancy) certificate will be required to confirm the use meets the Zoning bylaw requirements. The sign bylaw, building and fire codes also apply to proposed stores. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city's strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: The Province has allocated a minimum of $40 million to be distributed to municipalities over the next two years to support the transition to permitting retail cannabis stores. In early January, the Ministry of Finance will disburse the first payment of $15 million to support municipalities through retail cannabis implementation. Regardless of the decision to opt -in or opt -out, all municipalities will receive the first payment which will be dispersed based on a per household basis, and adjusted so that at least $5,000 is provided to each municipality. After the 50/50 split with the upper tier, City of Kitchener is slated to receive a total of $122,743 in the first installment. Staff understand that a second payment of $15 million will then be distributed following the deadline for municipalities to opt -out. Municipalities that opt -in will again receive funding on a per household basis, similar to first payment installment, and adjusted so at least $5,000 is provided to each municipality. Municipalities that opt -out, will not be eligible for a payment based on a per household basis model and will only receive 4-3 $5,OOO.The Province is setting aside $10 million of the municipal funding for any unforeseen circumstances. If Ontario's portion of the federal excise duty on recreational cannabis over the first two years of legalization exceeds $100 million, the Province will provide 50% of the surplus to municipalities that have opted in prior to the January 22 deadline. COMMUNITY ENGAGEMENT: Staff have been engaging with various stakeholders, including Conestoga College, Belmont Village BIA, Downtown Kitchener BIA, Fire Prevention, Region of Waterloo, Waterloo Catholic District School Board, Waterloo Region District School Board, Waterloo Regional Police Services, Wilfrid Laurier University, and University of Waterloo. Overall, the stakeholders do not have any objection to staff's recommendation. Their comments are summarized as follows: • Conestoga College, Belmont Village BIA, Downtown Kitchener BIA, Wilfrid Laurier University, and University of Waterloo have responded and have no opinion on this matter. • Waterloo Catholic District School Board and Waterloo Region District School Board have commented on wanting a larger distance from schools, but are in support of allowing retail cannabis stores. • Fire Prevention, Region of Waterloo, and Waterloo Regional Police Services are in support of staff's recommendation. INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. ACKNOWLEDGED BY: Justin Readman, General Manager of Development Services Appendix "A" t ++' POLICY Policy No: ADM -AUT -2013 t-� KIT(',]-ir.NP,R Policy Title: MUNICIPAL RETAIL Approval Date: (to be added based on CANNABIS STORE POLICY Council's decision) Next Review Date: January, 2022 Policy Type: COUNCIL, Category: Administration Last Amended: Sub -Category: Authority & Delegations of Staff Author: Manager, Site Development & Replaces: Customer Service Repealed: Dept/Div: Development Services Replaced by: Related Policies, Procedures and/or Guidelines: Cannabis Licence Act, 2018 Ontario Regulation 468/18 made under the Cannabis Licence Act 1. POLICY PURPOSE: This policy confirms delegated authority and criteria for staff to provide comment to the Alcohol and Gaming Commission of Ontario (AGCO) with regard to the location of recreational cannabis retail store locations. The City of Kitchener is committed to providing comment on proposed retail cannabis store locations based on the safety and security of our residents including protecting of our most vulnerable residents. As such, the City's comment shall be based on the public interest as defined as: • Protecting public health and safety • Protecting youth and restricting access to cannabis • Preventing illicit activities in relation to cannabis The intent of establishing this policy statement is to provide consistent and fair comment among all interested retail store operators, and to provide clear direction to potential retail store operators in their site selection. 2. DEFINITIONS: Recreational facilities are defined as municipally owned or operated buildings that are used for recreational purposes including but not limited to swimming pools and arenas. 4-5 3. SCOPE: Delegated Authority: The Manager of Site Development and Customer Service, or designate, shall provide comment on behalf of the City of Kitchener to the AGCO in regard to the proposed location of retail cannabis stores. 4. POLICY CONTENT: Municipal Commenting Criteria: Staff shall provide City comment to the AGCO in accordance with the timeframes prescribed by the Province on proposed cannabis store locations based on the following. In addition to the criteria established by the province (i.e. minimum distance to schools), retail cannabis stores are recommended to be a minimum of 150 m from the following: a. Addiction service providers b. Residential shelters and supportive housing for youth or other vulnerable populations c. Social service providers that support youth or other vulnerable populations d. Community centres and recreational facilities e. Libraries f. Other retail cannabis stores Note that if the Province increases the minimum distance criteria for schools, the City shall use the same distance criteria for commenting above. Note that consistent with other uses under the zoning bylaw, a zoning (occupancy) certificate will be required to confirm zoning compliance as a retail use along with all applicable zoning regulations. The City's sign bylaw as well as the Ontario Building Code and Ontario Fire Code also apply. 5. HISTORY OF POLICY CHANGES Administrative Updates No administrative history to date. Formal Amendments This section will include Council's decision on the policy referencing staff report DSD -19- 006. 4-6