HomeMy WebLinkAboutCouncil Agenda - 2019-12-02 SJeff Bunn
0s Aft Manager, Council & Committee Services/Deputy City Clerk
Legislated Services
Corporate Services Department
Kitchener City Hall — 2nd Floor
•ate 200 King St. W., P.O. Box 1118
Kitchener, ON N2G 4G7
Ph. 519-741-2200 Ext. 7278
TTY 1-866-969-9994
Jeff. Bunn(a)-kitchener.ca
www.kitchener.ca
November 29, 2019
Mayor B. Vrbanovic and Members of Council
Re: Special Council Meeting — Monday, December 2, 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, December 2, 2019 immediately
following the Finance and Corporate Services Committee meeting at approximately 4:30
p.m.
1. COR -19-048 — Licensing Tribunal Recommendation
Attached is Corporate Services Department report COR -19-048 (D. Saunderson),
dated November 20, 2019.
2. FIN -19-088 — 2020 Water Utilities Rate
Attached is Financial Services Department report FIN -19-088 (R. Hagey), dated
November 26, 2019.
3. Capital Budget - Direction
Council is requested to ratify directions given to staff during the Capital Budget deliberations.
4. By-law for Three Readings
a. To confirm all actions and proceedings of the Council.
Yours truly,
J. Bunn
Manager, Council / Committee Services &
Deputy City Clerk
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.
Jeff Bunn
0s Aft Manager, Council & Committee Services/Deputy City Clerk
Legislated Services
Corporate Services Department
Kitchener City Hall — 2nd Floor
•ate 200 King St. W., P.O. Box 1118
Kitchener, ON N2G 4G7
Ph. 519-741-2200 Ext. 7278
TTY 1-866-969-9994
Jeff. Bunn(a)-kitchener.ca
www.kitchener.ca
c: Corporate Leadership Team
J. Bunn
D. Saunderson
S. Delaney
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.
Staff Report KNE J�R
Corporate Services Department www kitchener ca
REPORT TO: Special Council
DATE OF MEETING: December 2, 2019
SUBMITTED BY: Licensing Tribunal
PREPARED BY: Dianna Saunderson, Committee Administrator, 519-741-2200 ext 7277
WARD (S) INVOLVED: 10
DATE OF REPORT: November 20, 2019
REPORT NO.: COR -19-048
SUBJECT: Decision of Licensing Tribunal - Chapter 553 (Lodging House)
RECOMMENDATION:
That the decision of the Licensing Tribunal, attached to Corporate Services Department
report COR -19-048, on the matter of a lodging house licence (Chapter 553 - City of Kitchener
Municipal Code) issued to Mr. S. Mohamed for the operation of a Lodging House, at the
property municipally addressed as 374 Louisa Street, Kitchener, Ontario, be adopted.
BACKGROUND:
Chapter 553 of the City of Kitchener Municipal Code governs the licensing and renewal of
lodging houses. As part of the renewal process, the by-law requires that City staff investigate
the impact of every lodging house on the immediate neighbourhood. Both Fire and Property
Standards conduct annual inspections of lodging houses, as well as, staff solicit comments
annually from neighbouring properties. Staff also work with Waterloo Regional Police Services
and By-law Enforcement to review the number and types of calls to service on each lodging
house.
Based on inspection reports, calls to service, and public comments, the Manager of Licensing
put conditions on the licence in 2017 and 2018 for the lodging house at 374 Louisa Street,
Kitchener, Ontario (the subject property). On June 28, 2019, the owner and licensee of the
subject property, Mr. Showkatali (Sam) Mohamed, applied to renew the lodging house licence.
Upon review by the Manager of Licensing, it was determined that several of the conditions were
not met and Mr. Mohamed was advised the licence would not be granted and would be referred
to the Licensing Tribunal for possible refusal.
REPORT:
On November 20, 2019, the Licensing Tribunal considered an agreed statement of facts as well
as ajoint submission from Ms. Erin Kearney, on behalf of the Corporation of the City of Kitchener
and, Mr. Mohamed, licensee for the subject property. The agreed statement of facts showed
that over the past 14 years when canvassing the neighbouring property owners each year as
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
1-1
part of the licence renewal process, the public comments have been overwhelmingly negative
for the subject property. In addition, Waterloo Regional Police have received 87 calls to service
for the subject property since 2016. After reviewing the 2019 business licence renewal
application the Manager of Licensing was of the opinion that the conditions previously imposed
on the licence were not being upheld; thus, the Manager of Licensing referred this matter to the
Licensing Tribunal recommending refusal the lodging house licence.
The Tribunal reviewed the statement of facts, and following their deliberation, agreed to impose
the three recommendations brought forward through the joint submission and requested an
additional condition requiring immediate being action to provide notice to all tenant/occupants of
the loss of licence. The decision attached as Appendix `A' outlines the Tribunals decision and
imposed conditions.
In accordance with the Municipal Act, all decisions of the Licensing Tribunal must be ratified by
Council before taking effect. In this regard, the recommendation contained herein will appear
on the December 2, 2019 Special Council agenda.
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:
There are no financial implications associated with this report.
COMMUNITY ENGAGEMENT:
INFORM — The decision of the Licensing Tribunal was served on the licensee, notifying him that
it would be considered at the December 2, 2019 Special Council meeting. In addition, this report
has been posted to the City's website with the agenda in advance of the council / committee
meeting.
ACKNOWLEDGED BY: Victoria Raab, General Manager, Corporate Services
Appendix `A' — Decision of the Licensing Tribunal
1-2
NOTICE OF DECISION
LICENSING TRIBUNAL
November 20, 2019 Hearing
(APPEAL #2019-01)
ISSUED at Kitchener this 20th day of November, 2019
TO: Showkatali Mohamed
IN THE MATTER OF Chapter 553, entitled
"Lodging House"
of the City of Kitchener Municipal Code;
AND IN THE MATTER OF the Ontario Municipal Act, 2001,
as amended;
AND IN THE MATTER OF the Statutory Powers Procedure Act,
RSO 1990, Chapter S. 22, as amended;
That the Licensing Tribunal established by the Council of the Corporation of the City of
Kitchener pursuant to Chapter 553 of the City of Kitchener Municipal Code, the Ontario
Municipal Act, 2001 and the Statutory Powers Procedure Act, sitting on November 20, 2019
to consider the submissions to determine whether or not to refuse a Lodging House Licence
to Showkatali "Sam" Mohamed, operating at 374 Louisa Street, Kitchener, Ontario, reports
as follows:
Having heard a joint resolution submission from Ms. E. Kearney, Associate City
Solicitor and Mr. S. Mohamed, Licensee, which was read into evidence;
The Tribunal recommends that:
That a Lodging House Licence issued to Mr. Showkatali Mohamed for the
property municipally addressed as 374 Louisa Street, Kitchener Ontario, be
refused subject to the following conditions:
The application for a licence for a lodging house by Mr. Showkatali
"Sam" Mohamed for 374 Louisa Street be refused effective on the
date this Tribunal's recommendation is approved by Council.
2. Despite the revocation of the licence, the City will not proceed with
charges for operating a lodging house without a licence against Mr.
Showkatali "Sam" Mohamed until on or after April 1St, 2020.
1-3
Page #2
NOTICE OF DECISION: NOVEMBER 20, 2019
APPEAL #2019-01 — LODGING HOUSE LICENCE
3. Any application made by Mr. Showkatali "Sam" Mohamed, or any
future owner of 374 Louisa Street that permits Mr. Mohamed to
maintain an interest in the property, for a licence to operate a lodging
house at 374 Louisa Street shall be required to proceed
automatically to Tribunal to determine whether such application
should be granted or refused.
4. Mr. Showkatali "Sam" Mohamed immediately provide notice to all
tenant/occupants at 374 Louisa Street of the loss of lodging house
licence and to immediately take all appropriate actions and steps to
remove occupants from the property as it is no longer permitted to
be a lodging house.
MI
Page #3
NOTICE OF DECISION: NOVEMBER 20, 2019
APPEAL #2019-01 — LODGING HOUSE LICENCE
LICENSING TRIBUNAL
COUNCILLOR K. L WAY-SEALOCK
COUNCILLOR S. MARSH
ISSUED BY:
D. Saunderson, Secretary of the Licensing Tribunal
Legislated Services Division of the Department of Corporate Services
200 King St. W., Kitchener, ON, N2G 4G7 Tel. (519) 741-2200 ext. 7277
NOTE RE: APPEAL PROCEDURE
Ifyou wish, you may appeal this Decision to a Judge of the Superior Court ofJustice.
You must notify the City Clerk in writing and apply to the Superior Court of Justice within
fourteen (14) days of the sending of this Decision.
1-5
l
Staff Report K�R x
Financia! Services Department www.kitchener.ca
REPORT TO: Council
DATE OF MEETING: December 2, 2019
SUBMITTED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353
PREPARED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353
WARD (S) INVOLVED: All
DATE OF REPORT: November 26, 2019
REPORT NO.: FIN -19-088
SUBJECT: 2020 Water Utilities Rates
RECOMMENDATION:
THAT the proposed rates contained in the 2020 Water Utilities Rates schedule attached
to Financial Services Department Report FIN -19-088 be approved.
BACKGROUND:
The rates for the City's Water Utilities (water, sanitary, and stormwater) are set annually by
Council. In 2017, a comprehensive review of the water, sanitary and stormwater infrastructure
(the Water Infrastructure Program or WIP) was conducted to evaluate infrastructure investment
needs and other factors such as affordability, growth, and sustainability. The WIP report
provided information about the infrastructure in each of the utilities and provided Council with
investment options for both capital replacement and increased maintenance spending along
with 5 -year rate options for the utilities. Council's consensus from that discussion provided
staff with direction for future investments and rate increases which were reflected in the 2018
and 2019 utility rate increases approved through the budget.
Rate changes for the Water Utilities have typically been passed as part of approving the
overall budget on Final Budget Day in January, with the new rates coming into effect on March
1 St. Starting in 2020, the City is moving to an effective date of January 1 St to coincide with rate
changes from the Region of Waterloo who supplies the City with water and treats its
wastewater. This report is seeking approval of the new rates in order to implement them on
January 1St
REPORT:
The proposed rate increases for the Water Utilities are summarized in the table below, with the
more detailed schedule attached to the report.
Summary of Water Utilities Rate Changes
Water 2.9%
Sanitary 3.3%
Stormwater 5.0%
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
2-1
The combined impact on the average homeowner for 2020 is 4.4%, which is slightly lower than
the forecast rate increase for 2020 as shown in the table below.
Projected Combined Utility Rate Increases
2018 2019 2020 2021 2022
Rate Increase Projection from WIP 1 6.5% 6.5% 4.50/o 4.5% 1 4.5%
Revised Rate Increase Proiection 1 6.5% 6.5% 1 4.4% 1 4.5% 1 4.5%
The change for 2020 is because of two Regional impacts that offset each other, but were not
anticipated as part of the original WIP modeling. First, the Region has moved the date of their
rate increase for water supply and sanitary sewage processing to January 1 st instead of March
1St. This has upward pressure on rates since higher prices are being charged earlier than was
modeled during the WIP analysis. Second, the Region has reduced the rate increase for water
supply and sanitary sewage processing by 1 %. This has downward pressure on rates since the
price increase is less than what was modeled during the WIP analysis. The overall impact is
summarized in the chart below and shows how each change impacts the overall WIP rate
increase.
WIP 2020 Rate Increase Reconciliation
Originally Forecasted WIP 2020 Rate Increase 4.50
Timing of Regional Rate Increase Moved to January 1 +0.3%
Regional Rate Reduction -0.4%
Revised Proposed WIP 2020 Rate Increase 4.4%
As part of the Operating Budget discussion on November 25, there was some interest shown in
reducing stormwater rates as they are going up by more than an inflationary amount and the
City was recently approved for nearly $50M of federal grant funding over the next 10 years
through the Disaster Mitigation Adaptation Fund (DMAF). Historical information about
stormwater utility rates since the utility's inception in 2011 was requested and is shown in the
table below.
Historical Stormwater Rate (Residential Single Detached Medium property
Year Cost ', Change Year Cost ', Change
2011 $10.50 2016 $11.44 9.2%
Jan -Jun
2011 $9.45 -10.0% 2017 $12.49 9.2%
Jul -Dec
2012 $9.73 3.0% 2018 $13.73 9.9%
2013 $9.87 1.4% 2019 $14.72 7.2%
2014 $10.17 3.0% 2020 $15.46 5.0%
2015 $10.48 3.0%
2-2
2-2
The table above shows the original stormwater rate implemented in 2011 based on the
recommendations from a multi-year comprehensive review to create a separate and sustainable
stormwater utility was $10.50. This initial rate was reduced by 10% (effective July 1, 2011) as
part of the 2011 budget process. As shown in the table above, the stormwater rate did not return
to its original level until 2015. Since 2015, rate increases have been more than inflationary, but
were required to:
• Make up for effectively having no rate increase between 2011-2015
• Eliminate an accumulated deficit of $1 M in the stormwater utility at the end of 2015
• Provide proportionate funding for increased WIP full road reconstruction projects
As noted during the operating budget presentation, when Council considered multi-year WIP
rate options in 2017, they endorsed the lowest option (Option #3) and stated that any grant
funding would go towards an incremental increase to planned work which is what is proposed
through the 2020 budget. Further, any reduction in the projected stormwater rate increase would
mean a reduction in planned work, which could lead to a reduction in DMAF grant funding.
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 total annual impact of the proposed rate changes is $50 as noted in the table below.
Im
act on Homeowner
2019 2020
$ .-
Water
$435
$450
$15
Sanitary
$543
$568
$25
Stormwater
$175
$185
$10
TOTAL
$1,153
$1,203
$50
Assumptions:
• Water & Sanitary: water consumption of 175m3
• Stormwater: Residential Single Detached Medium
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of the
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
2-3
Appendix A - 2020 Water Utilities Rates
2-4
Sanitary (per cubic metre)
$
3.0538
$
3.1546
$ 0.1008
3.30%
Water (per cubic met re)
$
2.4339
$
2.5045
$ 0.0706
2.90%
Stormwater (monthly charge)
Residential Single Detached Small
$
8.82
$
9.26
$
0.44
5.00°%
Residential Single Detached Medium
$
14.72
$
15.46
$
0.74
5.00%
Residential Single Detached Large
$
19.35
$
20.32
$
0.97
5.00%
Residential Townhouse/Semi-Detached
$
10.51
$
11.04
$
0.53
5.00%
Residential Condominium
$
5.86
$
6.15
$
0.29
5.00%
Multi -Residential duplex
$
11.78
$
12.37
$
0.59
5.00%
Multi -Residential triplex
$
17.70
$
18.59
$
0.89
5.00%
Multi -Residential four-plex
$
23.54
$
24.72
$
1.18
5.00%
Multi -Residential five-plex
$
29.46
$
30.93
$
1.47
5.00%
Multi -Residential (>5 units)
$
2.95
$
3.10
$
0.15
5.00%
Non -Residential Smallest
$
28.16
$
29.57
$
1.41
5.00%
Non -Residential Small
$
75.30
$
79.07
$
3.77
5.00%
Non -Residential Medium -Low
$
197.30
$
207.17
$
9.87
5.00%
Non -Residential Medium -High
$
575.95
$
604.75
$
28.80
5.00%
Non -Residential Large
$1,395.90
$1,465.70
$
69.80
5.00%
Non -Residential Largest
$2,996.70
$3,146.54
$ 149.84
5.00%
2-4