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Home My WebLink AboutFCS Agenda - 2021-04-19Finance & Corporate Services Committee Agenda Monday, April 19, 2021 10:30 a.m. - 12:30 p.m. Office of the City Clerk Electronic Meeting Kitchener City Hall nd 200 King St.W. - 2 Floor Kitchener ON N2G 4G7 Page 1 Chair - Councillor S. Davey Vice-Chair - Councillor K. Galloway-Sealock Due to COVID-19 restrictions City Hall is not open except for very limited services by appointment only. Members of public are invited to participate in this meeting electronically by accessing the meeting live- stream video at kitchener.ca/watchnow. While in-person delegation requests are not feasible at this time, members of the public are invited to submit written comments or participate electronically in the meeting by contacting delegation@kitchener.ca. Delegates must register by 8:30 a.m. on April 19, 2021, in order to participate electronically. Written comments will be circulated prior to the meeting and will form part of the public record. Consent Items The following matters are considered not to require debate and should be approved by one motion in accordance with the recommendation contained in each staff report. A majority vote is required to discuss any report listed as under this section. None Delegations -law, delegations are permitted to address the Committee for a maximum of five (5) minutes. Item 1 - Iain Klugman, Communitech - Atefeh Zarabadi, AIImSense Inc. Discussion Items 1. DSD-2021-43 - Kitchener's Economic Recovery Framework (90 min) (Staff will provide a 5-minute presentation on this matter) Any recommendations from the Committee regarding the above matter will be considered at a special Council meeting to be held immediately following this meeting. 2. FIN-2021-20 - Investment Policy Update (20 min) Information Items FIN-2021-12 - 2020 State of the Infrastructure Update CAO-2021-2 - 2021 Business Plan April Progress Report Jeff 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 ** REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: April 19, 2021 SUBMITTED BY: Cory Blum, Executive Director Economic Development, 519-741- 2200 ext 7065 PREPARED BY: Cory Bluhm, Executive Director, Economic Development, 519-741-2200 ext. 7065 Saleh Saleh, Director of Revenue, 519-741-2200 ext. 7346 Brian Bennett, Manager Business Development 517-741-2200 ext 7230 WARD(S) INVOLVED: All DATE OF REPORT: April 8, 2021 REPORT NO.: DSD-2021-43 SUBJECT: RECOMMENDATION: That Economic Recovery Framework, as attached to report DSD-2021-43 as Appendix A, be approved; and, That the following support measures be approved, providing additional relief and support to businesses, as outlined in report DSD-2021-43: a) suburban business areas to support customer development, including the provision of $100,000 to provide up to $10,000 in grant funding per business area, to engage in collaborative marketing efforts; b) Develop an application-based property tax installment deferral program to extend 2021 property tax installment due dates by 60 days for residents and businesses; c) In partnership with the Waterloo Region Tourism & Marketing Corporation, provide $125,000 to be used towards the provision of additional grant funding to the Tourism Adaptation & Recovery Program, specifically for Kitchener- based businesses; and, *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. d) That the Mayor and Clerk be authorized to execute a partnership agreement with Communitech to deliver business recovery supports over a 3-year period, its Innovation Lab, at a cost of $500,000 per year, for a total contribution of $1,500,000; and further, That staff be directed to return to Council with additional support measures and Recovery Framework, as outlined in report DSD-2021-43; REPORT HIGHLIGHTS The proposed Economic Recovery Framework is contained in Appendix A In 2020, the City provided $2 million worth of financial supports to impacted businesses and residents. business recovery: o Opportunity #1: Unleash Our Community Spirit & Spending Power o Opportunity #2: Accelerate a New Wave of Entrepreneurship & Innovation City Council allocated up to $5 million to support an agile approach to business recovery (in 2021 and beyond). Within the $5 million allocations, staff anticipate up to $1 million could be used to support a new seed fund for providing grants/supports to impacted businesses and organizations. The initiatives proposed to be approved in this report total $2,300,000, including the -day property tax deferral, grant funding to support tourism adaptation and creative professionals, and a partnership with Communitech. Where funding required exceeds Operating Budgets, funding will be allocated from the Make It Kitchener 2.0 reserve. Staff have undertaken significant business community engagement and industry analysis leading up to the formulation of the proposed framework. This report supports A Vibrant Economy by implementing Area of Focus #1 of the Make it Kitchener 2.0 Strategy. BACKGROUND: For municipal supports provided during the pandemic to date, refer to reports DSD-20-064, DSD-20-067 and DSD-21-020. Make It Kitchener 2.0 provides a framework for supporting a full and comprehensive long-term economic recovery. The initiatives outlined in this report focus on short and medium-term interventions. As part of report DSD-21-021, City Council supported an agile approach to supporting business recovery, whereby staff will present Council with a series of recommendations over time as clarity of needs emerge while complementing other funding programs. The Federal and Provincial governments continue to play the lead role in providing substantial supports to businesses. Municipalities simply do not have the financial means to provide supports at a scale tha business. Rather, the City can play an effective support role by complementing and leveraging these programs. In 2020, the City provided approximately $2.0 million worth of economic supports to impacted business and residents. In addition, new services have been created to support the business community, such as the Digital Main Street services offered by the Small Business Centre, and the Patio Expansion Program. As part of Make It Kitchener 2.0, City Council allocated up to $5 million to support economic recovery in 2021 and beyond. Engagement with Businesses & Organizations Since the onset of the pandemic, the City of Kitchener has broadly engaged the business community, stakeholders and industry representatives to understand how the City can best support local economic recovery. This has included, but not limited to, the following: More than 1,500 interactions with small businesses through the Digital Main Street program; More than 100 in-depth consultations with impacted small businesses during the summer of 2020; In-depth consultations with a wide range of businesses, including: o Retail/restaurant/food/service industry operators o Commercial landlords/property owners o Performing arts organizations o Festival and event organizations o Professional artists/musicians o Manufacturers o Real estate professionals E Committee; and, Engagement with the Downtown Action & Advisory Committee, Arts & Culture Advisory Committee, Downtown Kitchener BIA and Belmont Village BIA. Key Challenges & Opportunities Based on the input gathered to date, staff offer the following observations: The impacts of the pandemic have not been uniform across all sectors. Even within specific sectors, such as retail, certain businesses have experienced growth while others have experienced significant loss. Those businesses, workforce and entrepreneurs who are most dependant on in- person interaction have been disproportionately impacted. For many, the only viable path to recovery is an end to the pandemic and return to social interactions. Many businesses have pivoted (ex: e-commerce, virtual services, curbside pickup), however, this is not viable for every business for a variety of reasons, such as applicability, capabilities, etc. High potential, late stage start-ups and early scaling businesses have also been disrupted by the pandemic. Downtown businesses have encountered additional impacts due to i) the conversion to remote work by a large majority of downtown office companies; and, ii) curbside pickup is less convenient compared to suburban locations surrounded by easily accessible parking. Office space leasing, particularly in Downtown Kitchener, has been impacted significantly as companies re-evaluate their future space needs, including the potential to scale back the size of space needed in favour of a more virtual workforce. While the Provincial and Federal Governments have the financial means to lead broad economic recovery, municipalities can still play a key role. Small business owners have consistently identified the following key opportunities for the City to support business recovery: Minimize and eliminate barriers when able to return to full operations; Provide training and resources which support pivoting and the adoption of new sales models (ex: curbside pickup, e-commerce, marketing); Support businesses in re-engaging customers and attracting new customers; and, Support commercial landlords in attracting new businesses to vacant space. ent Advisory Committee (EDAC) has identified the following opportunities for the City to support business recovery: marketing and media reach to promote local businesses; Support restaurants through an effective patio expansion program; Support resident health and well-being by providing a one-stop online platform of all programming and recreational opportunities; and, Support community wide animation. Through the EDAC discussions, City Councillor media outlets) to appropriately promote local businesses. This concept aligns well with feedback received by the committee and other discussions with impacted businesses. Analysis of the Impacts of the Pandemic Staff have reviewed numerous research and analytical reports on the economic impacts of recovery path, whereby the large majority of the economy experiences a gradual or steep downturn followed up a gradual or steep recovery typically measured through indicators such as gross domestic product (GDP), employment, sales, etc. As demonstrated in the following graph, the initial lockdown in the Spring of 2020 produced most businesses shuttered or halted production, only to return to full or modified operations as society better understood how to implement public health measures, like physical distancing. Kitchener CMA -2000-2001 Employment Total (in 1,000s) 340 330 320 310 300 290 280 270 260 250 Source Stats Canada Labour Force Survey Data winners (businesses experiencing upward growth) and losers (businesses experiencing downward growth and/or significant revenue losses). Most notably, overall consumer spending has not decreased to the levels most expect. Rather, consumers have shifted their spending away from experiences (travel, concerts, etc.) to consumption of goods. Analyzing Canadian retail transaction data, the following chart shows the comparative impacts between sectors. Overall, retail sales have rebounded to exceed 2019 sales, services have returned close to 2019 levels, while travel and entertainment remain well below 2019 levels. Year-Over-Year Canadian Sales Growth (2019 -2020) 40.00% 20.00% 0.00% 6-Jan6-Feb6-Mar6-Apr6-May6-Jun6-Jul6-Aug6-Sep6-Oct6-Nov -20.00% -40.00% -60.00% -80.00% -100.00% RetailTravel & EntertainmentService Source Moneris Solutions Corporation, National Consumer Spending Trends However,within specific sectors, impacts have not been uniform. For example, while casual restaurants have experienced significant losses, quick serve restaurants serving comfort foods (ex: pizza) have seen record growth. The following table shows significant differences within the US retail sector: US Retail Sales Growth 2020 vs 2019 Top Performers Growth E-commerce businesses 25% Beer, wine, and liquor stores 18% Sporting goods stores 17% Building & garden supplies 14% Lowest Performers Growth Used merchandise stores -28% Book stores -28% Gift, novelty and souvenir -29% Clothing stores -30% Shoe stores -31% Department stores -46% Source US Census, Estimates of Monthly Retail and Food Services Sales As a direct result of ton businesses, employees of downward growth businesses have experienced disproportionate losses. Economists suggest that these businesses will experience a much slower return to pre-pandemic revenues. -over- year), an increase of approximately 7,400 unemployed residents. This does not capture those who are still working but with significantly reduced hours. It is believed most of job losses have been experienced within the food, beverage, hospitality, service and retail sectors. REPORT: Without question, the pandemic has adversely impacted many businesses and residents. A number of businesses have been able to pivot and/or return to normal sales volumes, even thriving on altered consumer behaviors. Many others, however, have experienced significant hardships in the form of drastic revenue loss, layoffs, debt accumulation and even closure. For some businesses and their employees, the only true path to recovery is a post-vaccination return to in-person interactions. For others, their very business model may never return to pre- pandemic forms. As a result, recovery cannot be about returning to the old normal. Recovery needs to focus on how our community can emerge better than when we entered the pandemic. To do this, we need to help businesses become leaders of the new normal (ex: through innovation, becoming more resilient, etc.). Likewise, the question for our community is not if we will recover - the question is how fast can we all lead, embrace and support a new normal. As outlined in Appendix A staff propose a recovery framework centred around two major challenges with two key opportunities to provide recovery support. For each, a set of actions and initiatives have been identified to advance change: Major Challenge #2 Major Challenge #1 The unknown future of office Significant impacts to the in- person service economy Opportunity #2 Opportunity #1 Unleash our community spirit & Accelerate a new wave of spending power Entrepreneurship & Innovation Key Objectives Key Objectives 1. 1. Support Startups, Scale-Ups, Innovation & Workforce Adaptation 2. When Able, Bring the City to Life 2. City Wide Startup & Entrepreneurial Network 3. Make Reopening Easy 4. Incubate New Food, Retail & Service Businesses NOTE for each Opportunity, a comprehensive listing of all initiatives are contained in Appendix A. Detailed information on the initiative proposed for immediate Council approval is contained in Appendix B. Opportunity #1 Unleash Our Community Spirit & Spending Power For those most deeply affected, the City of Kitchener simply does not have the financial resources to make a meaningful direct difference in their ongoing viability. But the community of Kitchener does! In fact, the ultimate source of economic recovery lies in the spending potential of our residents. For many local residents, the pandemic has enabled significant savings. Many now possess higher levels of discretionary income than prior to the -war/post- pandemic spending and prosperity, due in part to deferred spending, the 2020s could see a similar post-pandemicresponse. The City can play a role in supporting local businesses to ensure they are able to capture this spending locally. This is, in fact, what staff have heard from businesses. Enable operators to get back to business as efficiently as possible, support them as they pivot and transition their business, help them develop the tools to attract and re-attract customers, and To accomplish this, staff recommend two areas of focus: 1. Commence a series of initiatives that encourage residents to aggressively support local businesses. This should include i) training for businesses to advance their marketing, brand and audience development capabilities; and, ii) opportunities for the City to leverage its reach to help promote local businesses. The City has already implemented a series of programs to support impacted businesses, such as the waiving of temporary sign permit fees and the implementation of services through the Small Business Centre, such as Digital Main Street. The following new initiatives are proposed as part of this report: A) where the City would retain a marketing expert on contract to work directly with suburban business areas to support customer development. Business areas could collectively apply for seed funding to support marketing efforts, similar to a BIA. The City would seek to find opportunities to utilize its broad community reach (ex: social media) to support the promotion of our various business areas. Anticipated Cost = $225,000 B) Offer a 60-day Property Tax deferral in 2021, to support impacted businesses and residents. A similar program was provided in 2020. The proposed deferral allows businesses and commercial property owners added flexibility to manage their cash flow. This will be of particular importance to businesses who are waiting to receive Provincial or Federal funding supports. Anticipated Cost = $375,000 As the pandemic continues, staff anticipate providing Council with additional initiatives. 2. When able, Bring the City to Life Commence a series of initiatives that enable businesses, event organizers, cultural producers, creative professionals, etc., to bring the city to life. Certain initiatives may be launched during the pandemic, subject to Public Health requirements, while others will be best suited when larger in-person interactions are permitted. The following new initiatives are proposed as part of this report: A) Support Tourism Adaptation and Restaurant Patio Expansions - In partnership with Waterloo Region Tourism & Marketing Corporation (WRTMC), provide additional grant funding to the Tourism Adaptation & Recovery Program specifically for Kitchener-based businesses. In the Winter of 2021, WRTMC facilitated a grant stream to support tourism industry businesses, where applications far exceeded available funding. WRTMC is willing to facilitate a second intake if municipalities provide additional funding. Most notably, a significant number of Kitchener restaurants applied for supports to help expand their patios. By targeting grants to permanent restaurant patio expansions, for example, the City can support the local restaurant industry while also stimulating an elevated patio culture for residents. Grants given previously were typically under $5,000. The proposed funding contribution could support as many as 25 restaurants. Anticipated Cost = $125,000 B) Support Arts & Culture Professionals In partnership with organizations such as the Kitchener-Waterloo Community Foundations or the Centre In The Square, provide additional grant funding to support creative professionals. To date, the City has partnered with both organizations to deliver successful grant-based recovery programs, both of which were over-subscribed. Funding would either be dedicated to additional rounds of funding for established programs, or could be allocated to new programs that may arise from similar partner organizations. Grants would typically average $2,500. The proposed contribution could support as many as 30 creative professionals. Anticipated Cost = $75,000 3. Make Reopening Easy Continue to actively support impacted businesses by providing efficient services, such as the Patio Expansion Program, a flexible Business License Renewal Program, and free evening and weekend parking in City-owned lots within the Downtown. As the pandemic continues, staff anticipate identifying additional service enhancements to support impacted businesses. 4. Incubate New Food, Retail & Service Businesses Service-based business have been disproportionately impacted by the pandemic, particularly businesses reliant on in-person interactions, casual restaurants and urban locations not well served by surface parking. As a result, a number of businesses have been forced to close, with more vacancies likely as the pandemic continues. To stimulate new businesses to fill these vacancies, staff will develop a business case for Council consideration, to launch a Food, Retail, Service & Hospitality incubation program utilizing vacant City-owned commercial spaces and the Small Business Centres service delivery model. Opportunity #2 Accelerate a New Wave of Entrepreneurship & Innovation One of the great biproducts of any major recession is accelerated innovation, entrepreneurship and an emergence of new companies. For example, following the 2008 financial crisis, North America saw a dramatic increase in new start ups. The viability of our local economy depends heavily on the creation of new jobs to replace those lost due to the pandemic. Unfortunately, the pandemic has caused, and will continue to cause, increasing commercial and office vacancies. However, our community has an opportunity to accelerate pace but bring forward new and innovative products and services. collective office space, currently challenged by the impacts of the pandemic, as an epicentre of post-pandemic innovation. If there is a community in Canada that can accelerate growth Kitchener. 1. Support Startups, Scaleup, Innovation and Workforce Adaptation is ideally positioned to deliver a series of recovery programs to advance new companies, entrepreneurship and job growth. Over the past 5 years, the City has maintained a funding partnership whereby Communitech has delivered a series of critical programs Lab. The following new initiatives are proposed as part of this report: A) Partner with Communitech to Deliver Recovery Supports - staff propose entering into a 3-year partnership agreement with Communitech to deliver a series of programs aimed at providing additional supports to startups and scaling companies, expanding Fierce Founders, supporting the Future of Work initiative, and continuing the Civic Innovation Lab (note - a more fulsome description of each program is contained in Appendix C). Anticipated Cost = $1,500,000 Staff anticipate similar partnership opportunities may arise with other local organizations who provide entrepreneurial services. 2. Expedite the Launch of a City-Wide Startup & Entrepreneurial Network (Make It Kitchener 2.0, Area of Focus #4) programs in the region, the City has an opportunity to develop a range of services to support their growth and success. In particular, focusing on entrepreneurs seeking to advance the UN Sustainability Goals. Staff will develop a business case for Council consideration, to launch an entrepreneurial network, including partnerships, the use of vacant City-owned space, grant programs, training models, etc., that is open to all and eliminates barriers for all entrepreneurs. Continued Business Attraction Efforts While the uncertainty of the future of office space and border restrictions have limited our ability to attract foreign investment, significant interest remains. In particular, interest remains high from US companies looking to establish Canadian headquarters. As such, staff will continue to work in partnership with organizations like Waterloo EDC to attract new companies to Kitchener. Launch a Seed Fund to Support Business Recovery For the above noted initiatives to be successful, and to provide direct supports to businesses, staff recommend the creation of a seed fund. Local needs may emerge which are not supported by the Provincial and Federal Government. Where possible, staff will look for opportunities to leverage other non-municipal grant programs, including applying for additional funding with other organizations and upper levels of government where possible. ework, staff estimate the up to $1,000,000 of the $5,000,000 allocation could be dedicated to seed funding. As the pandemic continues, staff will provide recommendations on additional seed funding/grant opportunities for Council to consider. Proposed Seed Funding Allocations Up to $1,000,000 Current Initiatives Status/Timing Estimated Cost Digital Main Street Grants Underway (2021) Provincially funded Proposed Seed Funding/Grants Requiring Status/Timing Estimated Council Approval Cost -Proposed (2021) $100,000 market their area. Grant funding to support the Tourism Adaptation & Proposed (2021) $125,000 Recovery Program specifically for Kitchener-based businesses (ex: for permanent patio improvements) Grant funding to support Creative Professionals Proposed (2021) $75,000 Future Seed Funding/Grants Status/Timing Estimated Cost Estimated funds remaining for future seed funding Future - based on Up to determination of $700,000 need STRATEGIC PLAN ALIGNMENT: This report supports A Vibrant Economy by supporting businesses impacted by the pandemic and accelerating new economic growth. FINANCIAL IMPLICATIONS: Based on the framework outlined in this report, approximately $5,000,000 would be Operating and Capital budgets, funding would be allocated from the Make it Kitchener 2.0 Reserve. Funding is proposed to be allocated as follows: Opportunity #1 Unleash Our Previously Proposed Proposed Community Spirit & Spending Power Approved/ to be Total Funded Approved Allocation Through by this Operating Report $155,000 $600,000 $755,000 2. When able, Bring the City to Life $195,000 $200,000 $550,000 3. Make Reopening Easy $35,000 - $35,000 4.Develop & Launch an Incubation Program - - $750,000 for new Food, Retail, Service and Hospitality Businesses Total $385,000 $800,000 $2,090,000 (A) Opportunity #2 Accelerate a New Wave of Entrepreneurship & Innovation 1. Partner with Communitech to Support - $1,500,000 $1,500,000 Startup, Scaleup, Innovation and Workforce Adaptation 2. Expedite the Launch of a City-Wide - - To be Startup & Entrepreneurial Network determined Total - $1,500,000 $1,500,000 (B) Funding Remaining for Future Allocations $1,410,000 (C) Total - Opportunity #1 & #2 $350,000 $2,300,000 $5,000,000 (A+B+C) By allocating funding to the various opportunities, but not committing all funding until future business cases/reports are presented, Council can maintain an agile approach to business recovery. Should new, more pressing needs arise, Council would have the flexibility to reallocate uncommitted funding accordingly. In 2020, the City provided $2 million worth of financial supports to impacted businesses and residents. COMMUNITY ENGAGEMENT: INFORM the council / committee meeting. CONSULT Staff have engaged extensively with the business community, impacted organizations and the Economic Development Advisory Committee. Staff have also engaged the Downtown Action & Advisory Committee and the Arts & Culture Advisory Committee. PREVIOUS REPORTS/AUTHORITIES: DSD-20-064, DSD-20-067, DSD-21-020 APPROVED BY: Justin Readman, General Manager Development Services ATTACHMENTS: Appendix A Appendix B Detailed Information on the Initiatives Proposed for Approval Appendix C Background on the Proposed Communitech Partnership BQSJM!3132 BSFB!PG!GPDVT!$2!GSPN! NBLF!JU!LJUDIFOFS!3/1! LJUDIFOFSÉT!FDPOPNJD SFDPWFSZ!GSBNFXPSL SFDPWFSZ; MJGU!VQ!UIF!NPTU L NJ 3 Dpvodjmmps!Ebwf!TdiojefsDpvodjmmps!Disjtujof!NjdibveDpvodjmmps!Qbvm!TjohiDpvodjmmps!Nbshbsfu!KpiotupoDpvodjmmps!Tbsbi!Nbsti 3/1 !Nbzps!Cfssz!Wscbopwjd Dpvodjmmps!Tdpuu!EbwfzDpvodjmmps!Kpio!Hb{pmmbDpvodjmmps!Lfmmz!Hbmmpxbz.TfbmpdlDpvodjmmps!Cjm!JpboojejtDpvodjmmps!Efccjf!Dibqnbo -!xf!bsf!dpnnjuufe!up!xpsljoh!dpmmbcpsbujwfmz!xjui!pvs!cvtjoftt!dpnnvojuz-!pvs!qbsuofst-!pvs! 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Ljudifofs!ibt!cffo!uispvhi!b!mpu!evsjoh!uijt!qboefnjd!boe!cvtjofttft!ibwf!dbssjfe!b!ifbwz!cvsefo/!!Cvu!xf!bsf!cfhjoojoh!up!tff!b!ofx!tupsz!vogpme/!Xf!bsf!npwjoh!gpsxbse!uphfuifs!xjui!b!sfofxfe!tfotf! pg!ipqf!boe!pqujnjtn/!!Ljudifofs!jt!Ñoejoh!mjhiu!jo!uif!ebsloftt½sftibqjoh!uif!obssbujwf!pg!pvs!pxo!tupsz/!Uif!qboefnjd!ibt!cffo!b!efÑojoh!npnfou!jo!uif!dpmmfdujwf!ijtupsz!pg!Ljudifofs/!!Ju!ibt!cffo! ibse!gps!nboz-!cvu!ibt!sfnjoefe!vt!xibu!nblft!Ljudifofs!tp!tqfdjbm!.!jo!ujnft!pg!dibmmfohf-!xf!dpnf!uphfuifs!up!mjgu!fbdi!puifs!vq/!!Xf!bmxbzt!ibwf-!boe!xf!bmxbzt!xjmm/!!Xf!bsf!b!djuz!xjui!bo!vocsfbl bcmf!tqjsju!boe!sfmfoumftt!sftjmjfodf!jo!uif!gbdf!pg!bewfstjuz/Uif!qboefnjd!ibt!sfnjoefe!vt!pg!xibu!xf!uppl!gps!hsboufe!boe!xibu!xf!usvmz!difsjti/!!Ju!ibt!sfnjoefe!vt!pg!uif!jnqpsubodf!pg!uif!qfpqmf! xip!lffq!pvs!mpdbm!cvtjofttft!bmjwf!.!cvtjoftt!pxofst-!fnqmpzfft!boe!qbuspot/!!Uifz!csfbui!mjgf!boe!wjcsbodz!joup!pvs!dpnnvojuz!fwfsz!ebz/!!Uif!Djuz!pg!Ljudifofs!xjmm!mjgu!vq!cvtjofttft!jo!fwfsz!xbz! xf!dbo/!!Cvu!jo!usvui-!uif!sfbm!tpvsdf!pg!pvs!sfdpwfsz!mjft!xjuijo!fbdi!pg!vt/!!Bt!b!dpnnvojuz-!ipx!xf!dipptf!up!tqfoe!pvs!npofz!boe!xip!xf!dipptf!up!tvqqpsu!xjmm!efÑof!pvs!qbui!gpsxbse/!!XfÉwf!hpu!u ijt-!Ljudifofs" Appendix B Detailed Information on Each Proposed Initiative Opportunity #1 Unleash Our Community Spirit & Spending Power Initiative Owner: City of Kitchener Economic Development Timing: Commence Q2/3 of 2021 Description: The City would hire a contract marketing professional to work with suburban business areas to develop promotional campaigns to support impacted businesses. Where possible and appropriate, the City would utilize its audience reach (ex: social media) to provide added exposure. Each business area could apply for up to $10,000 worth of funding to put towards their campaign. Rationale: Impacted businesses have identified the need for supports reaching and re-engaging their customer would aid in recovery. While the City cannot directly promote the products and services of individual businesses, it can support the promotion of business areas. Estimated Cost: Source of funding: $125,000 in contracted salary costs and marketing/development expenses Kitchener 2.0 Reserve $100,000 in grant/seed funding to support business area campaigns. Operating Budget (Economic Development) Initiative Offer a 60-day Property Tax Deferral in 2021 Owner: City of Kitchener, Revenue Timing: Commence Q2/3 of 2021 for approximately 12 months Description: Property taxes are billed twice a year (interim and final) with four installment due dates. The Interim tax bills with due dates of March 1, 2021 and May 3, 2021 have previously been mailed out to residents and businesses. Final tax bills are expected to be sent out in mid June with due dates of July 2, 2021 and September 1, 2021 for residential customers and September 1, 2021 and October 1, 2021 for non-residential customers. Staff are recommending that a simple application-based property tax installment deferral program be developed to extend 2021 property tax installment due dates by 60 days as follows: CƚƩ ƩĻƭźķĻƓƷźğƌ ƦƩƚƦĻƩƷźĻƭʹ hƩźŭźƓğƌ 5ǒĻ 5ğƷĻ wĻǝźƭĻķ 5ǒĻ 5ğƷĻ ağǤ ЌͲ ЋЉЋЊ WǒƌǤ ЋͲ ЋЉЋЊ WǒƌǤ ЋͲ ЋЉЋЊ {ĻƦƷĻƒĬĻƩ ЊͲ ЋЉЋЊ {ĻƦƷĻƒĬĻƩ ЊͲ ЋЉЋЊ bƚǝĻƒĬĻƩ ЊͲ ЋЉЋЊ CƚƩ ĭƚƒƒĻƩĭźğƌͲ źƓķǒƭƷƩźğƌͲ ğƓķ ƒǒƌƷźΏƩĻƭźķĻƓƷźğƌ ƦƩƚƦĻƩƷźĻƭʹ hƩźŭźƓğƌ 5ǒĻ 5ğƷĻ wĻǝźƭĻķ 5ǒĻ 5ğƷĻ ağǤ ЌͲ ЋЉЋЊ WǒƌǤ ЋͲ ЋЉЋЊ {ĻƦƷĻƒĬĻƩ ЊͲ ЋЉЋЊ bƚǝĻƒĬĻƩ ЊͲ ЋЉЋЊ hĭƷƚĬĻƩ ЊͲ ЋЉЋЊ 5ĻĭĻƒĬĻƩ ЊͲ ЋЉЋЊ The proposed eligibility criteria is outlined below: Must have experienced financial hardship directly related to the COVID- 19 pandemic due to one of the following reasons: loss of employment, temporary suspension/reduction of pay, business loss revenue or temporary business closure. All property taxes must have been paid in full up to and including the March 2021 Interim Installment. The proposed property tax installment deferral program has been discussed with the area municipalities. Only the City of Waterloo will be implementing a similar program at this time. Residents can continue to make payments through a Pre-Authorized Payment Plan, online banking, by mail or by the payment box located at the Young St. entrance at City Hall. Rationale: The recommended program has a number of benefits for residents, businesses and the City. These benefits include: Provides relief that is targeted to the current economic challenges related to COVID-19. Provides valuable statistics at the local level to help develop future economic recovery plans. The application form will be relatively simple for customers to understand and complete. Further, the processing of applications by the City can be managed efficiently by staff. This program would be available as an additional measure for those who may still be struggling financially as a result of COVID-19. It is intended to give residents and businesses extra time to pay their tax bills if needed by extending installment due dates by 60 days. The program is available to both residential and non-residential customers. Although it is recognized that there are residents and businesses who will need this level of support, there are many customers who are able to pay their property taxes by the original due dates. The City continues to encourage residents and businesses who have the ability to do so, to make payments for their property taxes as this is also the main source of revenue to the City to fund operations, including critical services for the community. Estimated Cost: Source of funding: $375,000 in lost interest revenue. $375,000 from COVID relief funding Initiative Provide Additional Grant Funding to the Tourism Adaptation & Recovery Program Owner: City of Kitchener Economic Development in Timing: Spring & Summer 2021 partnership with Waterloo Region Tourism Marketing Corporation (WRTMC) Description: In the Winter of 2021, WRTMC facilitated a Tourism Adaptation & Recovery grant program, whereby any business associated with the tourism industry could apply for funding to support adaptations to the pandemic (ex: personal protective equipment, etc.). The program received more applications than what the funding could support. A large majority of applications were from restaurants seeking capital funding to expand their patios. Given the ongoing importance of expanded patios, there is a clear need and opportunity to support local restaurants with such improvements. While the first round of funding was provided by FedDev Ontario, the Cities of Cambridge, Waterloo and Kitchener, the Township of Woolwich, and the Region of Waterloo are all considering providing additional funding to establish a second round of funding. Most Cities are considering the use of their Municipal Accommodation Tax funding to support the initiative. Any funding provided by the City of Kitchener would be used to support Kitchener-based businesses. Businesses are required to match a minimum of 20% of the cost of improvements. While businesses can apply for up to $20,000, the majority of grants provided in round 1 were less than $5,000 each. Rationale: The sit-down restaurant industry has been significantly impacted by physical distancing requirements. Utilizing expanded outdoor patios has been a key measure for expanding their seating capacity. Increasing seating capacity enables the return of more restaurant staff. Kitchener residents have long aspired to see a stronger patio culture in our community. By prioritizing applications which seek permanent patio improvements, staff believe this initiative will support a patio culture beyond the pandemic. Estimated Cost: Source of funding: $125,000 in grant funding Make It Kitchener 2.0 Reserve Initiative Additional Grant Funding to support Arts & Culture Professionals Owner: City of Kitchener Economic Development in Timing: Summer 2021 partnership with organizations such as the Kitchener Waterloo Community Foundation (KWCF) and Centre In The Square Description: In the fall of 2020, KWCF established the COVID-19 Arts & Sustainability Recovery Fund. The purpose and criteria were established by a volunteer committee comprised of local representatives from the arts and culture sector. Small and medium-sized arts and culture organizations and collectives were invited to apply for funding to support their ongoing adaptations to the pandemic (e.g. PPE, virtual programming etc.). The program received more applications than the funding could support. The first round of funding ($250,000) was provided by KWCF through a partnership with Community Foundations of Canada, the Government of Canada and individual fund holders. In the winter of 2021, the City and Centre In the Square piloted Create + Connect Grant program, specifically for musicians creating music and connecting with their audience through producing a song, creating a livestream, creating a music video, etc. Performers, artists and arts organizations continue to be among the hardest hit entities in the creative arts sector by the pandemic. Funds would be awarded to projects and initiatives that support organizations to connect with their audiences, creating tangible community benefits. Staff would work with partner organizations to establish new grant programs or second streams of grant funding for the previously successful programs. Rationale: Performers and performance-based organizations continue to be among the hardest hit entities in the creative arts sector by the pandemic. As public gatherings in the near future are once again in doubt, these entities are in dire need of resources to develop new ways of serving the community with art. Not only have established revenue streams been fully disrupted (ticketed performances, teaching, paid performances), new capital-intensive approaches are needed to connect with audiences and deliver art to the community (e.g. equipment and expertise for digital programming, increased staffing and equipment to ensure public safety, new platforms for audience engagement). Kitchener residents have long aspired to see more local arts programming. By prioritizing application which seek to connect with local audiences in new ways, staff hope this initiative will support live performance and arts and culture beyond the pandemic. Estimated Cost: Source of funding: $75,000 in grant funding Make It Kitchener 2.0 Reserve Appendix C Background on Proposed Communitech Partnership BACKGROUND: The City of Kitchener has had a long- inception in 1997. In 2010 the City invested $500K in the Communitech Hub to assist with its relocation to the Tannery located at 151 Charles St W, Kitchener. In 2016, the City invested $1.5M in Communitech over 5 years to assist with their expansion, leasehold improvements and expanded programming. This investment enabled Communitech to significantly increase their economic impact in the community, based on a study completed by Deloitte. For every $1 of economic impact is as follows: Fiscal Year 2011 2018 2020 Economic Impact $12.90 $22.12 $28.23 Communitech was entrusted during the pandemic as a lead organization, to help form the Business and Economic Support Team (BESTWR) to reduce barriers, accelerate coordination and engagement for all businesses across Waterloo Region. As Communitech expects the need for increased collaboration space creating client rental opportunities, they have renewed their lease at the Tannery for an additional 5 years with Allied Reit. The pandemic has had an adverse impact across the business and technology community in Kitchener and Waterloo Region, including in the founder, startup and scaleup sectors. Given areas, supporting their increased service delivery provides a proven path to new company and job creation. As office-based companies reimagine their post-pandemic work space, it is expected that vacancies could persist in the office sector. Downtown Kitchener, for example, currently has one of the highest office vacancy rates in the region. Stimulating startup and scaleup growth would provide a prospectus of future office tenants. PROPOSED PARTNERSHIP: Staff propose the following partnership with Communitech to support business recovery: 1) $500K per annum from 2021-2023: Provide programming to accelerate the growth of startups and scaleups, talent attraction and retention, while supporting diversity, equity and inclusion through the expansion of the Fierce Founders Program. The City would continue to maintain and operate a Digital Kitchener Innovation Lab. This investment will be re-evaluated at the end of year 3. This investment is designed to preserve and grow our technology ecosystem, provide coaching, mentorship, collaboration, networking and advocacy. Proposed Programs i) Increased Startup Services: History has demonstrated that economic disruptions and challenges result in new companies entering the ecosystem. During the 2010 economic recession and Blackberry layoffs, startup intake grew by 230%. Communitech will be supporting and nurturing this sector through programming and advisory services both virtually and in-person at the appropriate time. Activities will include: Virtual advisory services which include mentorship, peer learning as well as market intelligence for respective sectors Access to digital learning through on-demand, scalable and customized learning with a focus on customer, market and investment readiness. Collaboration with the Waterloo Region Small Business Centre to support and Communitech onboarded 300 new startups in 2020 with the average increasing from 25 per month in 2020 to 36 per month in Q1, 2021. ii) Support Scaling Companies The pandemic has significantly impacted the growth of many scaling firms especially those within the initial stage. Impacts to their sales, marketing, and research and development has necessitated companies to re-evaluate their current path and explore new opportunities and markets. Supports would target scaling companies that have been interrupted by the pandemic to restore their growth prospects over the next 18-36 months, recognizing that scaling takes more initiative and time. The intent is to create more local jobs while expanding the local ecosystem, attracting both domestic and foreign investor capital and reinvigorating the Downtown office market. Activities include: Digital and in person delivery of roundtables, workshops, tailored programs and advisory services. These will include managing remote and hybrid teams, while maintaining culture, onboarding, enhancing digital marketing and workplace health, including supporting mental health initiatives investment and partnership with the University of Waterloo in the Health Innovation Strengthening partnerships with Velocity, Accelerator Centre, Laurier Launchpad and MaRS Reviewing and strengthening the local supply chain Attract more late stage capital investment with both domestic and global capital which includes more direct consultation with investors regarding Waterloo Region and specific investment opportunities iii) Expand Fierce Founders The Fierce Founders Program was established in 2014 to help women-led companies grow their businesses. Since its inception, 240 companies have graduated from this program. Communitech proposes to expand Fierce Founders by providing additional programming through the Fierce Founders Uplift Program to women founders who have faced barriers due to equity and anti-racism. Ongoing support will be provided through the addition of 4 new advisors/growth coaches from underrepresented groups to provide hands on support to new founders. Included in the programming could be grants for early stage businesses. iv) Support Co Future of Work Initiative Companies have been required to pivot to a virtual or hybrid work environment. Communitech has moved its talent recruitment, development and training services to a digital delivery model, resulting in adapting the programs to support the new requirements of startup and scaleup firms. New content and services are required to support companies in a new mobile, global talent landscape. Programming is to be established to manage borderless talent attraction and recruiting, while migrating to remote and hybrid work. Activities include: Enhance training through the Communitech Academy, preparing teams for an increasing virtual and remote work environment Through the Future of Work, review the strengths, weaknesses, and gaps that exist between workforce skills and employer needs including the responsiveness to private and public workplace dynamics Support local talent acquisition through Communitech as a referral partner for the v) Digital Kitchener Innovation Lab The Kitchener Innovation an innovative and visionary community. presence in the Communitech hub offers the City the opportunity to actively engage with other corporate innovation labs sharing learnings, problem-solving and identifying opportunities for collaboration. Connecting with startups enables the lab to explore how their early stage technologies could be applied to the City. Through direct engagement in the Communitech ecosystem the City is able to attract top co- -op onboarding programs, academic partnerships, and exposure to new trends in technology and innovation. The highly visible space allows the City to showcase lab initiatives and City priorities, facilitate vision and achievements as an agile, forward-thinking municipality. Economic Impact: In 2020 Deloitte conducted an economic impact assessment based on the following factors: Financial: Wages created, taxes owed, capital raised Human Capital: Jobs Created, employees at Communitech companies Brand: Social Media following, event attendance, mentoring from $250M in 2018, or $28.23 for every dollar of public funding an increase from $22.12 in 2018. Communitech clients raised $1.4 Billion in venture capital in 2020. Reporting Annual reporting is to be provided to Council by Communitech, sharing outcomes of the initiatives outlined in this report as well as their Annual General Meeting report. Finance and Corporate Services Committee REPORT TO: DATE OF MEETING: 4/19/2021 SUBMITTED BY: Ryan Hagey, Director of Financial Planning PREPARED BY: Ryan Hagey, Director of Financial Planning WARD(S) INVOLVED: All Wards DATE OF REPORT: March 30, 2021 REPORT NO.: FIN -2021-20 SUBJECT: Investment Policy Update RECOMMENDATION: That the City investment policy FIN-PLA-605, attached as Appendix A to staff report FCS-17-095, be approved as amended. REPORT HIGHLIGHTS: The purpose of this report is to amend the Investment Policy based on content presented through the Long Term Financial Plan (LTFP) The main changes involve better role definitions, updating the standards for eligible investments, and exclusion from the Prudent Investor standard This report supports the delivery of core services. BACKGROUND: The City of Kitchener Investment Policy is governed by the Municipal Act and related regulations. The policy was last updated in 2017. The goal of the Investment Policy is to set out the guiding principles for the purpose of investing public funds. The policy applies to all financial assets of the City of Kitchener including Operating, Capital, Reserve, and Trust Funds. The income resulting from the investment of City funds is one of the revenue sources available to reduce the financial burden on ratepayers. The objectives of the policy, in order of importance include: Adherence to statutory requirements with the Municipal Act and related regulations. Preservation of capital that the possibility of losing the invested funds is extremely unlikely. Liquidity sufficient funds availa they are due. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Return on Investment - The investments will be managed to attain the maximum rate of return while meeting the other objectives. The policy also governs the quality of securities the City can accept from others, for example, Letters of Credit. As part of the comprehensive content presented during the Long Term Financial Plan change to using a multi-year average to budget for investment income, as well as content changes to the Investment Policy which would be approved at a later date. The attached Investment Policy is largely consistent with the version presented to Council during the LTFP discussions. REPORT: The proposed Investment Policy is in a revised format and includes changes to the way it is presented. The primary content changes include: Better role definitions (Section 3 Scope Responsibilities) Updated standards for eligible investments (Section 4 Eligible Investments a) Exclusion from the Prudent Investor Standard (Section 4 Eligible Investments b) Each of these is briefly discussed below. Better role definitions (Section 3 Scope Responsibilities) The previous policy did not include any role definitions. The updated version includes clear definitions from Council, the Chief Administrative Officer, the Chief Financial Officer, and the Director of Financial Planning. Having better role definitions in financial policies was one of the recommendations from the LTFP. Updated standards for eligible investments (Section 4 Eligible Investments a) The City is limited by the Municipal Act and associated regulation in terms of the kinds of/quality of instruments in which it can invest. Under the updated policy, the City will be Schedule A of the policy. Under the previous policy only investments quality were considered. preserving capital, but should also better meet the policy goal of improving return on investment. During the historically low interest rate environment caused by COVID-19, investment returns for items like GICs, and bonds have been significantly lower than normal. The change to the quality of investment options will also apply to letters of credit accepted by the City as financial security. This will help development within the City, as some a letter of credit from their preferred financial institution instead of a different institution that would require a higher premium for their services. The change investments in add represents little risk to the City and is consistent with policies in other municipalities. Exclusion from the Prudent Investor Standard (Section 4 Eligible Investments b) As noted above, the City is limited by the Municipal Act and associated regulation in terms of the kinds of/quality of instruments in which it can invest. In 2018, a new section (Prudent Investment, 418.1) was added to the Municipal Act. Under the Prudent Investor Standard, ould choose to invest in more volatile products that could potentially provide higher returns, but also have a greater degree of risk, such as investing in stocks traded on the open market. Staff are not recommending this option at this time for a number of reasons including: It is more risky, because investment options are unlimited o While the Municipal Act is quite restrictive and limits returns, it also almost guarantees that invested funds will not be lost due to bankruptcy It relinquishes all control to an investment board o A municipality must either establish or participate through an investment board, which cannot include members of council or municipal staff, with the exception of a municipal treasurer. This would significantly limit the ypes of investments being entered into and would represent a risk to the municipality It is permanent o Once a municipality opts into Prudent Investment it cannot opt back out If Council is interested in pursuing Prudent Investment, the policy decision recommended as part of this report could be revisited at some point in the future. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: There are no immediate financial implications of the changes recommended in this report. ; however they would increase ult in improved investment yields. COMMUNITY ENGAGEMENT: INFORM the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: Investment Policy FIN-PLA-605 APPROVED BY: Jonathan Lautenbach, Chief Financial Officer ATTACHMENTS: 1. Investment Policy POLICY Policy No: FIN-PLA-605 Approval Date: Click here to enter a Policy Title: INVESTMENT date. Policy Type: COUNCIL Reviewed Date: August 2019 Category: Finance Next Review Date: August 2024 Reviewed Date: Click here to enter text. Sub-Category: Financial Planning Author: Senior Financial Analyst Last Amended: Click here to enter a date. Dept/Div: Finance/Financial Planning Replaces: Click here to enter text. Repealed: Click here to enter a date. Replaced by: Click here to enter text. Related Policies, Procedures and/or Guidelines: Municipal Act, 2001, S.O. 2001, c. 25, Part XIII, Section 418(1) Municipal Act, 2001, Ontario Regulation 438/97 1. POLICY PURPOSE: It is the policy of the City of Kitchener to invest public funds in a manner that will provide the highest investment return while protecting and preserving capital, maintaining liquidity, meeting the daily cash flow demands of the City and conforming to all legislation governing the investment of public funds. The purpose of the policy is to establish guidelines and controls related to the investment and holding of public funds to ensure funds are available when needed, while maximizing return. 2. DEFINITIONS: Asset-backed Securities short- or long-term debt instruments, which are backed by high quality assets (such as loans or mortgages) of the issuer, issued under Reg. 733(50)(1) of the Loans and Trust Corporations Act Commercial Paper short-term notes or drafts issued by a corporation, incorporated under the laws of Canada or a province of Canada 1 of 10 Policy No: Policy Title: Credit Risk risk to an investor that the issuer of an investment will default interest or principal payments Credit Union - community based financial co-operatives owned and controlled by members Diversification process of investing in a range of security types by class, sector, maturity, and quality rating Dominion Bond Rating Service (DBRS) a service that assesses the credit rating of institutions Forward Rate Agreement (FRA) contract with a qualified financial institution allowing an investor to fix the interest rate to be received on an investment for a specified term beginning at an agreed to future date Interest rate risk risk of an increase or decrease in the value of a fixed income security caused by declining or rising interest rates Long-term investment investment whose term to maturity is greater than one year Liquidity ONE Fund Public Sector Group of Funds pooled investment fund meeting the eligibility criteria defined by the regulations under the Municipal Act. It is operated by the Local Authorities Service Limited and CHUMS Financing Corporation Regulation Ontario Regulation 438/97 related to section 418 and 418.1 of the Schedule I Bank a chartered bank operating under the Bank Act. The voting shares must be widely held with no investor holding more than10% and foreign ownership limited to 25% Schedule II Bank a chartered bank operating under the Bank Act. It may be wholly owned by non-residents Schedule III Bank a foreign bank branch of foreign institutions operating under the Bank Act under certain restrictions Short-term Investment investment whose term to maturity is two years or less 2 of 10 Policy No: Policy Title: Supranational Institutions an agency sponsored by highly rated foreign bank(s) or Governments issuing debt to fund loans in developing countries for large infrastructure projects. They may be owned or guaranteed by a consortium of national governments Trust Company financial institution which acts as a fiduciary, trustee or agent in the administration of trust funds, estates and custodial arrangements 3. SCOPE: POLICY APPLIES TO THE FOLLOWING: All Employees All Full-Time Employees All Union Management C.U.P.E. 68 Civic Non Union C.U.P.E. 68 Mechanics Temporary C.U.P.E. 791 Student I.B.E.W. 636 Part-Time Employees K.P.F.F.A. Specified Positions only:! Other:! Council Local Boards & Advisory Committees The investment policy applies to all financial assets of the City of Kitchener held within the general fund, capital fund, reserve funds, enterprise funds, and trust funds. R esponsibilities Council Under section 224(e) of the Municipal Act 2001, Council is responsible for ouncil is required to make decisions that adhere to the financial policies and procedures that have been put in place to provide investment income for the municipality. Chief Administrative Officer Under section 229(a) of the Municipal Act 2001, the Chief Administrative Officer is responsible municipality for the purpose of ensuring the efficient and effective operation of in place that support the effective administration related to investment of City funds. 3 of 10 Policy No: Policy Title: Chief Financial Officer (Treasurer) Under section 286(1) of the Municipal Act 2001, the treasurer is responsible for nicipality on behalf of and in the Monitoring adherence to statutory requirements Ensuring preservation of capital Monitoring interest rate risk Ensuring liquidity of investments Maximizing return on investments Director of Financial Planning As part of their role the Director of Financial Planning has been delegated authority and is responsible for: Establishing investment procedures aligned with this policy Monitoring cash flow to make effective investment decisions Ensuring proper controls are in place related to investments Delegating specific investment related tasks to staff where appropriate 4. POLICY CONTENT: Objectives be: a) Adherence to statutory requirements Investment activity will be governed by the Municipal Act as amended and limited to eligible investments under the Act and associated provincial regulations b) Preservation of capital Safety of principal is a key objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital including: Utilizing credit ratings to assess the overall credit risk related to a particular investment 4 of 10 Policy No: Policy Title: Diversifying the overall investment portfolio in accordance with this policy Properly assessing and mitigating risk associated with fluctuating interest rates for short- and long-term investments c) Liquidity to meet all operating and capital requirements that might be reasonably anticipated and to limit temporary borrowing requirements. d) Return on Investments The investment portfolio shall be designed to attain the maximum rate of return while meeting the above three objectives Eligible investments a) Section 418 of Ontario Regulation 438/97 provides a list of eligible securities that the municipality may invest in. The regulation includes securities such as bonds, debentures, promissory notes, and other evidence of indebtedness. The City of Kitchener will consider potential investment opportunities related to all eligible securities types included in the regulation provided that: comply with all other aspects of this policy Schedule A and meet the minimum credit rating requirements and conditions as outlined in the regulation They have not been specifically restricted or excluded in this policy b) Exclusions Prudent Investor Standard (Section 418.1) Part of Ontario Regulation 438/97 includes new prudent investor standards that allow municipalities that meet certain eligibility criteria the option to invest in a broader range of securities. The City of Kitchener has not opted-in to this new standard and as such, is only authorized to invest in securities described under section 418 and not section 418.1 of the regulation. 5 of 10 Policy No: Policy Title: c) The City may enter Forward Rate Agreements (FRA) to reduce the risk of future interest rate changes associated with known cash inflows provided that: The FRA is only executed with Schedule I, II, or III Banks whose minimum The term of any FRA must be less than 12 months An agreement must specify the forward amount, settlement date, forward interest rate, reference interest rate, as well as other pertinent details as prescribed in the regulation The agreement must be reviewed and approved by the Treasurer and comply with all other requirements of the regulation d) funds. Unrated municipalities are only permitted to invest in the following securities if made through the ONE Fund Program: Commercial paper Corporate debt and shares Asset-backed securities A Council approved bylaw is required prior to entering into any such agreement. Diversification The City of Kitchener will diversify its investments by security type and institution according to Schedule B. These restrictions apply at the time an investment is made. At specific times, portfolio limitations may be exceeded as a result of timing of individual instrument maturities. Safekeeping and custody Investments and letters of credit are stored physically on site or electronically on City servers. Term of investments To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the 6 of 10 Policy No: Policy Title: City will not directly invest in securities maturing more than two years from the date of purchase. Reserve and Trust Funds may be invested in securities exceeding two years if the maturity of such investments is made to coincide as nearly as possible with the expected use of the funds. Performance standards The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles commensurate with the investment risk constraints and the cash flow needs. Yields on the short-term general bank account. Standard of care a) Prudence Investments shall be made with judgment and care under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Investment officers and employees exercising due diligence and acting in accordance with written procedures and this Policy shall be relieved of changes, provided deviations from expectations are reported in a timely fashion and the liquidation or the sale of securities are carried out in accordance with the terms of the Policy. b) Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Officers and employees shall not undertake personal transactions with the same individuals with whom business is conducted on behalf of the Corporation. 7 of 10 Policy No: Policy Title: c) Internal Control The Treasurer shall ensure adequate internal controls over investment policies and procedures. The Treasurer shall establish a process of independent review by an internal or external auditor. d) Reporting The Treasurer shall provide an investment report to Council at least twice per year. Authorized investment dealers Authorized investment dealers must be registered as Investment Dealers with the Ontario Securities Commission and be members of the Investment Dealers Association of Canada, and be approved by the Treasurer. Securities for subdivision and Development Servicing The objective of the securities policy is to ensure that monies to guarantee the installation of services will be available to the City when required. The City of Kitchener shall accept only the following approved securities: a) Letter of Credit (in prescribed form acceptable to the City Solicitor) issued by a Schedule I bank, Schedule II bank, Schedule III bank or Trust Company with a minimum DBRS rating A (low) (or equivalent). b) Letter of Credit (in prescribed form acceptable to the City Solicitor) issued by a Credit Union provided that: The Credit Union is verified as a member of the Central 1 Credit Union The Central 1 Credit Union is rated A (low) (or equivalent) or higher The Credit Union has its Head Office in Ontario The cumulative Letters of Credit do not exceed 1% of the Credit financial statements. 8 of 10 Policy No: Policy Title: 5. HISTORY OF POLICY CHANGES Administrative Updates 2016-07-01 - I-605 policy template re-formatted to new numbering system and given number FIN-PLA-605. Formal Amendments 2008-04-07 - Resolution passed by Council 2012-12-03 - Resolution passed by Council, see report FCS-12-189 2016-06-01 - I-605 policy template was re-formatted to new numbering system and given number FIN-PLA-605 2017-06-05 - Resolution passed by Council, see report FCS-17-095. SCHEDULE A: LONG-TERM CREDIT RATINGS The following chart compares the different scales for long-term securities used by four rating agencies recognized in Ontario Regulation 438/97. Credit Quality DBRS S&P Fitch Superior: extremely strong capacity AAA AAA Aaa AAA to repay principal and interest AA (high) AA+ Aa1 AA+ AA AA Aa2 AA AA (low) AA- Aa3 AA- Good: strong capacity to repay A (high) A+ A1 A+ principal and interest A A A2 A A (low) A- A3 A- SHORT-TERM CREDIT RATINGS The following chart compares the different scales for short-term securities used by three rating agencies recognized in Ontario Regulation 438/97. Credit Quality DBRS S&P Fitch Superior: extremely strong capacity to repay R-1 (high) A-1+ F-1+ principal and interest R-1 (middle) Good: strong capacity to repay principal and R-1 (low) A-1 F-1 interest 9 of 10 Policy No: Policy Title: Schedule B: INVESTMENT POLICY DIVERSIFICATION SUMMARY SHORT-TERM PORTFOLIO Sector Maximum Limits** Portfolio Share Government of Canada 100% None Provinces 100% 25%/issuer Municipalities 20% 10%/issuer Schedule I Banks 100% Top 5 major chartered banks: 75%/issuer*; Other Schedule I banks: 25%/issuer Schedule II Banks and 30% HSBC Canada: 25%; Schedule III Banks Other Schedule II and III banks: 10%/issuer Credit Unions and Trust 20% 10%/issuer Companies Pooled Investment Funds 100% None * The minimum primary bank account balance required to obtain a preferred rate is excluded from the limit per issuer. ** Compliance with limits is required within 30 days of non-compliance. INVESTMENT POLICY DIVERSIFICATION SUMMARY LONG-TERM PORTFOLIO Sector Maximum Limits Portfolio Share Government of Canada 100% None Governments of other 10% 5%/issuer countries and supranationals Provinces 50% 25%/issuer Municipalities 35% total 10%/issuer Region of Waterloo 35% Other municipalities 25% College, University, Housing 10% Corp., Hospital Incorporated Municipal 100% Common Shares Total issued to City at Electrical Utilities incorporation; Preferred Shares None Financial 75% total Top 5 - 25%/issuer Schedule I banks top 5 75% major chartered banks Other 10%/issuer Other Schedule I, II, III 20% banks, Trust Companies, Credit Unions Pooled Investment Funds 75% 10% limit on equity portfolio 10 of 10 REPORT TO: Finance and Corporate Services DATE OF MEETING: April 19, 2021 SUBMITTED BY: Jason Winter, Director Asset Management & Business Solutions PREPARED BY: Jason Winter, Director Asset Management & Business Solutions WARD(S) INVOLVED: All Wards DATE OF REPORT: March 30, 2021 REPORT NO.: FIN-2021-12 SUBJECT: 2020 State of the Infrastructure Report RECOMMENDATION: For Information REPORT HIGHLIGHTS: The overall Grade B. As compared to other municipalities, the City remains in the middle in the pack in terms of overall condition of our core assets. Asset valuations have changed due to improved asset data made available. those assets. Long term investments in funding strategies for infrastructure replacement programs like the Water Infrastructure Program (WIP) are crucial to keep up with the pace of our aging infrastructure. The ability to effectively maintain infrastructure based on growth and intensification is putting strain on operational capacity. BACKGROUND: The City is legislated by the Province of 2015 and Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure to create and maintain thorough asset management plans (AMPs) for all core asset categories within our municipality. The most consistent and cost-effective asset management strategies include a data-driven, risk-based approach that combines long- range financial planning and effective maintenance activities. The goal is to sustain an organized approach that optimi and in the most cost-effective way. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. REPORT: The 2020 update for the State of the Infrastructure report provides detail as to both the overall condition of all 13 asset categories as well as the financial 10-year gap across the board. Although there are several assumptions that are required to illustrate the current state of our infrastructure, over time and with the introduction of additional data-driven asset management plans, comprehensive assessments will be more readily be possible. Some changes from the first report from 2019 include: The valuation has increased from $7.5B to $9.2B based on additional inventory information as well as updated valuations of much more of our core infrastructure. Facility valuation increased by $314M (28.3%) based on work underway on the Building Condition Assessment (BCA) program Stormwater asset valuations increased by $479M (66.6%) based on current inventory and updated asset management plans. Roads & sidewalks valuation increased by $800M (88.6%) due to including sidewalk and multi-use pathways inventories and valuation. Based on the 2020 capital budget update, the gap has changed from $341.7M to $442M The overall grade of asset categories remains relatively the same at a Grade B. While some attention is needed for some asset categories, the City is more advanced in other categories thus making us on average, the same as most other similar municipalities. For several\\asset categories, a calculation of useful life was used to identify those assets that are near or at the end of their lifecycle. A replacement value is used to calculate the required investment for each of those assets. This required investment is then compared to a current rolling 10-yr capital budget for that category. The only variation from this approach was for categories for which a formal replacement strategy is in place. An example of this is the Water Infrastructure Program, where in addition to useful life, factors such as condition and risk are also included to determine the replacement need (and costs) over the useful life of those assets. Continued adoption of the asset management framework supports the ability to minimize categories. The collaborative approach between operational teams and the Asset Management Division will increase resiliency against changes in our environment. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: There is no direct cost impact, however asset management plans influence long-term financial forecasting for assets under City management. COMMUNITY ENGAGEMENT: INFORM the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: FCS-19-078 - 2019 State of the Infrastructure Report INS-18-017 Corporate Asset Management Policy Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure APPROVED BY: Jonathan Lautenbach, CFO & General Manager Financial Services ATTACHMENTS: Attachment A 2020 State of the Infrastructure Report CITY OF KITCHENER 2020 STATE OF THE INFRASTRUCTURE REPORT 30 March 2021 This page left intentionally blank CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | ii Table of Contents Introduction .......................................................................................................................................... 1 ............................................................................................. 4 Asset Components .............................................................................................................................. 5 ........................................................................................................ 6 Summary of Key Findings .................................................................................................................... 8 Asset Category Report Cards ............................................................................................................ 9 Water Utility ..................................................................................................................................... 10 Sanitary Utility .................................................................................................................................. 11 Stormwater Utility ............................................................................................................................ 12 Gas Utility ......................................................................................................................................... 13 Roads & Bridges ............................................................................................................................. 14 Facilities ........................................................................................................................................... 15 Other Asset Categories ................................................................................................................. 16 Future Outlook ........................................................................................ 17 Appendix A Explaining the Scorecard ......................................................................................... 19 CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | iii Introduction It is undeniable that the City of Kitchener (similar to all other municipalities) experienced an unprecedented year in 2020. Along with the changes the world felt as an impact of the COVID-19 pandemic, the Calso was affected in ways not forecasted in previous models. Whether it was less traffic on city streets, or increased use of the active seen an overall impact affecting its condition and lifecycle. Use of the Iron Horse Trail saw on average 126% more traffic compared to last 3 years. On-going, long-term investments in infrastructure is essential to maintain the growing expectations of our community and to ensure we sustain the expected levels of services provided by As well, the City is developing at a significant rate resulting in an overall increase in asset inventories needing to be maintained. In addition to safeguarding continuing to influence necessary investments to maintain our infrastructure. The widespread scale and complexity of climate change poses considerable environmental, economic, and social risks to the City. The effects of climate change are creating more CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 1 extreme variations in local weather patterns and longer-term changes to local climatic conditions. As seen in the graph below from the National Oceanic and Atmospheric 1 Administration (NOAA), the temperature in February 2020 was the warmest month on record since tracking began. Infrastructure fails to perform as it should under these conditions in the following ways: increased pressure on the energy grid, facility heating and cooling systems which in turn create higher costs and potential outages; road and walkway damage along with liability from increased freeze/thaw cycles; invasive species migrate to new habitat and decimate local urban forests (e.g. Emerald Ash Borer); frequent heat waves putting vulnerable populations at risk; etc. Climate change is expected to affect a broad range of municipal assets and government services. Specifically for Waterloo Region, local impacts include more intense rainfall events resulting in negatively affecting the ability to control and treat stormwater with our existing infrastructure. Preparing for climate change is a matter of risk management, good governance, and development of effective asset management practices. The implementation of the Corporate Climate Action Plan (CORCAP) is a vital step in having an integrated approach to achieve climate related targets and minimize risk to our infrastructure investments. This too can significantly improve community resilience and 2 reduce the severity of these effects over time. The need for continued focus on detailed asset management planning is now more important than ever given the ; the age and changing 1 NOAA National Centers for Environmental information, Climate at a Glance: Global Time Series, published February 2021, retrieved on February 16, 2021 from https://www.ncdc.noaa.gov/cag/ 2 INS-18-017 Corporate Asset Management Policy CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 2 condition of our assets; and the impacts of factors such as climate change in the coming years. Further effort is needed to analyze the growing amount of data related to our asset categories so as to understand the cause and effect of the variables related to maximizing the lifecycle of our most important infrastructure. The robustness of our detailed asset management plans become so vitally important for the successful management of these new (and existing) assets. The 2020 State of the Infrastructure Report provides an updated infrastructure groups and highlights key aspects of each category. For each core asset 3 category, is given to illustrate the current state of that category. This grade is an overall assessment of the asset category and is based on a number of factors. These factors include: A thorough financial strategy to maintain the expected levels of service throughout the lifecycle of the asset. Condition information that leads to understanding the health of the asset throughout its useful life. The existence of preventative maintenance and/or rehabilitation programs to ensure the assets meet their expected lifecycle. The availability of complete and reliable data for which to create and sustain asset management plans focusing on optimizing the management of the assets. As mentioned above, an evaluation of data reliability is provided to illustrate the quality of information available to inform a detailed lifecycle management plan. Little or no reliable Reliable data, but Quality data, but High quality and information available historical information gaps in detail and/or lacking some detail reliable detailed found currency data When assessing the overall condition of an asset category, data reliability is only one factor in a number of components. Although there might be gaps in detail and/or currency of information, evaluating work activities, maintenance programs, achieving service levels and other capital projects, the overall condition is formulated. 3 A further explanation of grading is outlined in Appendix A Explaining the Scorecard CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 3 4 ASSET VALUATION Facilities 15% Roads & Bridges Total Replacement 21% Value - $9.2 Billion Other 4% Stormwater Utility 13% Sanitary Utility 11% Water Utility Gas Utility 19% 17% Please note that changes from previous totals are due to newly available and updated data leading to revised valuations across asset categories. 1,600 (lane-km) | Paved Local Streets 1,095 km | Gas mains 14 | Community centres 1,180 km| Sidewalks 75,246| Gas meters 7 | Fire Stations 95 | Roadway Bridges 823 | Horticulture beds 8 | Community pools 900 km | Water mains 220| Playgrounds 9 | Splash pads 4,566 | Hydrants 257 km | Trails 2 | Golf Courses 5 838 km | Sanitary sewer mains 126 | Sports fields 7 | Arenas 23 | Pumping Stations 69,619 | Trees 24 | Parking structures & paid lots 643 km | Stormwater mains 28,766 | Traffic Signs 67 | Community parking lots 152 | Stormwater facilities 19,443 | Street Lights 6 | Cemeteries 4 Golf, Transportation Services and Fleet. 5 Budd Park Indoor facility is in addition to the 7 arenas identified. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 4 Asset Components Within each asset category, there are a number of major components that make up the total valuation and lifecycle management strategy. The table below outlines the major asset components within each asset category across the City. As asset management plans are developed and updated, additional asset components may be added in order to Water Utility Sanitary Utility Stormwater Utility water main pipes sanitary main pipes stormwater pipes water service pipes stormwater manholes forcemains valves catchbasins sanitary service pipes hydrants stormwater management ponds sanitary manholes water meters oil & grit separators pumping stations stream reaches & creeks stormwater facilities Gas Utility Roads & Bridges Facilities gas mains road pavement critical facilities & structures gas service pipes curbs community facilities & structures gas valves sidewalks other facilities & structures gas meters multi-use pathways gas regulator pits & stations bridges (greater than 3m span) rental water heaters culverts Parks & Open Spaces Forestry Parking sports fields street trees revenue generating surface lots hard surface sports facilities wood lots community surface lots parks & turf parks & open spaces trees underground parking structures playgrounds parking garages trails on-street parking pedestrian bridges & boardwalks parking equipment horticulture parking sundry/misc. items Cemeteries Golf Transportation Services cemetery infrastructure (roads, course features bike racks & bollards horticulture, water services, etc.) buildings pedestrian railings and guiderails cemetery buildings (including course infrastructure streetlights & poles mausoleum, crematorium, utilities road & pedestrian islands storage structures, etc.) golf course vehicles & equipment traffic calming features traffic signs & poles Fleet arena equipment dump/fire trucks fire equipment lawn/turf equipment licensed equipment miscellaneous small equipment off road equipment two-way radios CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 5 Asset Management is an integrated and data-driven approach to effectively manage existing and new assets. The intent is to maximize benefits, reduce risk and provide expected levels of service to the community in a sustainable manner. Effective asset management practices are fundamental to achieving a sustainable and resilient community. The City is legislated by the Infrastructure for Jobs and Prosperity Act, 2015 and Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure to create and maintain thorough asset management plans (AMPs) for all asset categories. The most consistent and cost-effective asset management strategies include a data-driven, risk-based approach that combines long-range financial planning and effective maintenance activities. These activities outlined in the AMP would limit reactive maintenance by emphasizing a move toward planned/routine/proactive maintenance ensuring the lifecycle of assets and their ability to deliver services can be achieved. The with minimal risk and in the most cost-effective way. Asset management planning is cyclical to ensure that growth, new technologies and the introduction of new services are added to the framework. This process ultimately ensures that sustainable and resilient infrastructure is provided for through a process of continuous improvement. Through this lens, the goals would include efficiency gains which by improving proactive/scheduled maintenance will potentially reduce the number of reactive maintenance activities that are performed annually. When the Corporate Asset Management Program Policy and Framework (INS-11-082) was adopted in January 2012, it defined specific asset groups that shape the physical assets which make up the large and complex estimation of value. Since that time, the number of groups have expanded to 13 categories to best reflect the distinct types of assets across the city. The value of these assets are either derived through an Enterprise or Tax base (Figure 2). VALUATION SOURCE Tax 38% Enterprise 62% Figure 2 - Valuation Source CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 6 As asset management plans are developed for the 13 asset categories, collaborative support from cross functional teams and dedicated asset management leads provides new insights into the balance between optimizing the health of the asset while meeting expected level of service for which the asset supports. Through the development of asset management related replacement and rehabilitation e.g., Water Infrastructure Program (WIP), Facility Infrastructure Program (FIP), etc.), long term funding strategies continue to be proposed and adopted year after year. The 2020 capital budget included approximately $98M for asset rehabilitation and replacement and $978.8M over a ten-year timeframe. Although additional focus has been put towards increased spending for our infrastructure, the City still has a significant overall gap between investment and need. This need will be further underscored nership through increased development over the past several years. The infrastructure gap analysis (Figure 3) provides a point-in-time assessment of the current need across categories for those assets that are at the end or nearing the end of their useful lifespan. This financial requirement is compared to the available capital budget over a 10- year period. As asset management plans are completed, this gap analysis will be combined with level of service and condition data to round out a current state of the asset category. Overall Gap 10-Year Infrastructure Gap $442M $0 ($20,000,000) ($40,000,000) ($60,000,000) ($80,000,000) ($100,000,000) ($120,000,000) ($140,000,000) ($160,000,000) ($180,000,000) ($200,000,000) FacilitiesOtherRoads &StormwaterGas UtilitySanitaryWater Utility BridgesUtilityUtility Gap ($186,841,915($90,696,820)($59,189,734)($44,554,000)($42,501,800)($11,055,641)($7,565,241) Figure 3 - Infrastructure Gap (*) Please note: 1. The Stormwater Utility gap is reflective of the recent Disaster Mitigation & Adaptation Fund announcement for the City in 2019. 2. The Water and Sanitary gap are reflective of the financial model used for the Water Infrastructure program over the next 10 years. 3. Additional external funding sources such as the Federal Gas Tax has assisted somewhat in reducing the overall gap. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 7 Summary of Key Findings The gap analysis and associated forecasts are for a rolling 10-year period. This is a relatively short timeline for assets that have a typical lifespan of more than 80 years. Each year, the financial information will continue to improve and be updated accordingly. The overall total of the infrastructure gap for 2020 is $442M. For most asset categories, a calculation of useful life was used to identify those assets that are near or at the end of their lifecycle. A replacement value is used to calculate the required investment for each of those assets. This required investment is then compared to a current rolling 10-yr capital budget for that category. The only variation from this approach was for categories for which a formal replacement strategy is in place. An example of this is the Water Infrastructure Program, where in addition to useful life, factors such as condition and risk are also included to determine the replacement need (and costs) over the useful life of those assets. A comprehensive model has been developed as part of the Water Infrastructure Program (WIP) which combines multiple factors as mentioned above to assess the overall need for water, sanitary and stormwater infrastructure replacement. Overall, WIP is forecasting to close the gap of needed infrastructure replacement funding by 2044 as outlined in the report to Council (INS-17-070). On-going commitment post 2044 will be required as a significant number of assets will be reaching the end of the lifecycle based on significant growth in the 1960 In addition, considerations around the ability to support best practices for maintenance activities have not adequately been undertaken and needs to be an area of attention. This focus will need to continue to be examined as part of the WIP program to both close the existing infrastructure gap, and also to ensure that the gap doesn't widen as new infrastructure comes online and resources need to cover a larger number of assets. As mentioned under Figure 3, the gap information for the Stormwater Utility category now reflects the recent funding received through the Disaster Mitigation and Adaptation Fund in 2019. Additional funding through other sources such as the Federal Gas Tax also supports the ability to close the gap on an annual basis. With the development of asset management plans for the 13 categories, emphasis will continue to be placed on developing inspection programs that introduce condition information. This is a vital component to an overall comprehensive assessment of those assets. A recent example of this kind of program is the development of a comprehensive Building Condition Assessment (BCA) program for CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 8 Asset Category Report Cards Overall, in 2020 B, a slight increase from the previous report card. This grade is an overall average of the individual category evaluations and as such will continue to be re-evaluated as new information becomes available. Changes year-by- year can be attributed to adding or updating detailed asset management plans along with increasing the reliability of information used to analyze the overall condition of the asset category. In the following pages, a summarized component will summarize the relevant information leading up to the 2020 State of The Infrastructure. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 9 Data Reliability Water Utility The role of the water utility is to deliver water safely and efficiently to Kitchener residents. As part of that, the utility is responsible to maintain the infrastructure of pipes and valves that ucture Program (WIP), an approved rate model was established to address the overall gap related to its underground infrastructure by 2044. Overall, the water utility assets category is graded at an B. This past year in 2020, saw fewer watermain breaks than the previous 5-year average. Implementation of a mobile valve inspection program allowed for more efficient real-time follow-up work to be scheduled. Focus on the Water Infrastructure Program and associated funding continues to be a crucial component to improve the grade of this asset category and close the gap of infrastructure replacement by 2044. CAST IRON Total Length (Kms) by Material Average Expected Life 50YRS Average Average 68 0 ST - STEEL 0.2 Age Remaining Life YRS YRS DUCTILE IRON PVC - POLYVINYL CHLORIDE 335.7 Average Expected Life Average 80 YRS Age DI - DUCTILE IRON 327.4 Average 41 39 Remaining Life YRS YRS CPP - CONCRETE PRESSURE PIPE 42.7 PVC Average Expected Life Average COP - COPPER 0.6 100 YRS Age Average 14 86 CI - CAST IRON 183.0 Remaining Life YRS YRS OTHER AC - ASBESTOS CEMENT 7.7 Average Expected Life Average 80 YRS Age - 50 100 150 200 250 300 350 Average 47 33 Remaining Life YRS YRS % Asset Consumed 140% (4) 120% 10-Year Forecast 100% Required Current Gap 80% Investment Investment 60% υЊЎЋͲВЌЋͲЋЍЊ υЊЍЎͲЌЏАͲЉЉЉ ΛυАͲЎЏЎͲЋЍЊΜ 40% 20% (4) Current and Required investment based on WIP 0% AC -CI - CASTCOP -CPP -DI - DUCTILEPVC -ST - STEEL projections to 2029 ASBESTOSIRONCOPPERCONCRETEIRONPOLYVINYL CEMENTPRESSURECHLORIDE PIPE % Consumed 63%135%68%44%51%14%61% CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 10 Data Reliability SanitaryUtility The Sanitary Utility is responsible for the installation and disposal of the variety of sanitary network assets, which include the likes of wastewater pipes, manholes, syphons, forcemains, and pumping stations. Similar to the Water Utility, through the Water Infrastructure Program (WIP), an approved rate model was established to address the overall gap related to its underground infrastructure by 2044. Overall, the sanitary utility assets category is graded at a B. While the Sanitary Utility has a relatively good grade, the overall category can be improved with greater emphasis on preventative maintenance measures, which are currently limited in the Utility. As well, effort is underway to complete a detailed capital evaluation for pumping stations for which data is currently needing to be updated. Sanitary Main Material Type -Average Age OtherAsbestos 14%Cement 19% Plastic Ductile Iron 8% 17% Cement 16% Vitrified Clay 26% (5) 10-Year Forecast % Consumed Compared to Expected Life Required Current Gap 97.7%2.3% Investment Investment 18.5% υЋЋЋͲЉЊВͲЏЍЊ υЋЊЉͲВЏЍͲЉЉЉ ΛυЊЊͲЉЎЎͲЏЍЊΜ 160 140 14.7% 14.5% (5) Current and Required investment based on WIP 14.0% ) m12.6% 120 k projections to 2029. Required investments for 11.6% ( s 10.2% 100 n i pumping stations currently under review. a 80 M y r 60 a t PLEASE NOTE i n 40 a S 1.7% 1.3% 0.8% More than 25% of sanitary infrastructure is more than 20 0.2% 50 years old. 40% of is beyond half the average life - expectancy. This speaks to the need for a strong routine/preventative maintenance program to Age ensure no additional premature aging. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 11 Data Reliability Stormwater Utility -of-the- across the city. The Stormwater Utility provides critical infrastructure to prevent flooding and protect the natural environment by removing pollutants from runoff. Stormwater management infrastructure and approaches are rapidly evolving, and the City is incorporating green infrastructure and low impact development stormwater design to minimize the impact of urban land use to the natural environment. With the recent Federal funding (DMAF), the Utility has had the opportunity to advance several key aspects of its master plan. Overall, the stormwater utility asset category is graded at a B. The ability to further improve the grade level for this asset category might be a function of applying more preventative maintenance programs, which are currently limited. Installations of Storm Ponds STEEL Average Expected Life 30 80YRS Average Average 44 36 Remaining Life Age 25 YRS YRS CONCRETE Average Expected Life 20 80 YRS Average 38 42 15 Remaining Life Average YRS YRS Age PVC Average Expected Life 10 100 YRS Average Average 13 87 5 Remaining Life Age YRS YRS 0 Era STREAM REACHES IN KMS REHABILITATED CHANNELIZED 6.74 10.65 CONCRETE 10-Year Forecast 4.44 Required Current Gap Investment Investment υЋАЋͲБЍЊͲЉЉЉ υЋЋБͲЋБАͲЉЉЉ ΛυЍЍͲЎЎЍͲЉЉЉΜ NATURAL/MIXED 44.67 CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 12 Data Reliability Gas Utility Kitchener Utilities provides a safe natural gas delivery service for over 74,000 customers across Kitchener. Through a heavily regulated set of processes, Kitchener Utilities provides a heat source to homes and businesses through the installation and maintenance of key infrastructure such as gas mains, valves, meter sets, regulator stations, water heaters, etc. Overall, the gas utility category is graded at an B. With the completion of a detailed asset management plan, the condition of the asset category is based on the assets age compared to expected useful life. Approximately 60% of gas utility assets are currently in very good or good condition. The current annual spend is approximately $10M for gas pipeline & capacity projects however, spending will need to increase to reduce the future infrastructure gap. DISTRIBUTION OF PIPE BY MATERIAL PLASTIC Average Expected Life (KMs) 60YRS Average 19 Average 41 Remaining Life Age YRS YRS 39% STEEL Average Expected Life 60 YRS 61% Average 46 Average 14 Remaining Life Age YRS YRS PLASTICSTEEL GAS METERS BY INSTALL YEAR (6) 10-Year Forecast 34,735 Required Current Gap 35,000 Investment Investment υЊЏЊͲВЊЊͲБЉЉ υЊЊВͲЍЊЉͲЉЉЉ ΛυЍЋͲЎЉЊͲБЉЉΜ 30,000 (6) Note: The required investment is only for asset 25,000 replacement at the end of useful life. This constitutes 20,000 only 11% of the overall requirement as outlined in the key findings. 15,000 9,223 8,587 10,000 PLEASE NOTE 5,428 4,969 4,259 4,210 2,749 5,000 Gas meters on average have an expected useful life - of between 10-15 years. A significant number of 20132014201520162017201820192020 meters will need to be replaced over the next several years due to the high number installed in 2013 and earlier. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 13 Data Reliability Data Reliability (pavement) (bridge/culvert) Roads & Bridges Roads and bridges are among the most valuable infrastructure assets and need frequent maintenance and rehabilitation. Roads and bridges are widely used and highly visible to residents therefore the planning and execution of rehabilitation and reconstruction projects need a data-driven approach to ensure the expected level of support at a reasonable cost. Specific to pavement, City Council set a level of service Pavement Quality Index (PQI) of 70 (based on a scale of 0-100). Through heavily regulated legislation, city-owned bridges are defined to be more than 3.0m in span and are inspected on a 2-year cycle. Pavement assets portion of this category is graded as an A. Bridge assets are graded as a B. PAVEMENT QUALITY -2020 Unknown Poor BRIDGE/CULVERT CONDITION 1% 2% 25 20 s t Excellent e 15 s 39% s A f 10 o # 5 Good 0 49% Very GoodGoodFairPoorVery Poor Vehicle BridgesConcrete CulvertsCorrugated Stee Pipes Pedestrian BridgesRailway Bridges Fair 9% 10-Year Forecast Pavement/Sidewalks PAVEMENT QUALITY DISTRUBTION Required Current Gap (By # of Segments) Investment Investment υЊЉЌͲЌЏЋͲАЌЍ υЎЉͲЉЉВͲЉЉЉ ΛυЎЌͲЌЎЌͲАЌЍΜ 1600 PQI 1400 Note: the required investment for sidewalk replacement s t Tartget n 1200 included in the financial analysis has resulted in larger -70 e 1000 m gap in 2020 g 800 e S 600 f o 400 10-Year Forecast Bridges & Culverts # 200 Required Current Gap 0 Investment Investment υЊЊͲЉЉЉͲЉЉЉ υЎͲЊЏЍͲЉЉЉ ΛυЎͲБЌЏͲЉЉЉΜ Pavement Quality Index CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 14 Data Reliability Facilities The City of Kitchener owns and maintains 255 active facilities varying in function and age. Facilities and structures are categorized as Critical (39 facilities/structures); Community (160 facilities/structures); and Other (56 facilities/structures). A year since the Strategic Council Session on the Long-Term Financial Plan, additional funding has been allocated to address the on-going gap, now at $186M over 10 years. A thorough building condition assessment program has been started to effectively evaluate the overall condition of the facility as well as associated for those investments within the 10-year capital budget process. Overall, the facility asset category is graded at a C. FACILITY AGE BY CATEGORY FACILITY CATEGORY Critical 70 Other Facilities Facilities 15% 25% 60 50 40 30 20 10 0 Greater than 5030-50 years10-30 yearsLess than 10 Yearsyears Community Facilities 60% CriticalCommunityOther LIFECYCLE COSTS Upfront Design & Construction Major Repairs & Costs Maintenance 20% 30% 10-Year Forecast Facilities Required Current Gap Investment Investment υЋВЋͲЊЊЌͲВЊЎ υЊЉЎͲЋАЋͲЉЉЉ ΛυЊБЏͲБЍЊͲВЊЎΜ Operational Costs 50% CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 15 Other Asset Categories Transportation Services and Fleet. Due to limited condition information or detailed lifecycle management plans, these asset categories are currently in the process of developing asset management plans (AMPs) which include a data-driven approach to assessing the health of the asset and measuring the expected levels of service. As we move ahead on developing AMPs, the remaining asset categories will have full plans that monitor the current condition of their assets, as well as determine a long-term estimate and lifecycle management plan. This information will rank resources across the groups and 6 identify how to develop proactive maintenance actions. PARKS & OPEN SPACESFORESTRY 5ğƷğ wĻƌźğĬźƌźƷǤ5ğƷğ wĻƌźğĬźƌźƷǤ ЊЉΏĻğƩ CƚƩĻĭğƭƷЊЉΏĻğƩ CƚƩĻĭğƭƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ DğƦDğƦ LƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷ υЍЉͲББЌͲЊБАυЊЊͲЉББͲЉЉЉΛυЋВͲАВЎͲЊБАΜυЊЊͲЉБЊͲЊЉЎυЎͲЉЍВͲЉЉЉΛυЏͲЉЌЋͲЊЉЎΜ PARKING ENTERPRISECEMETERIES 5ğƷğ wĻƌźğĬźƌźƷǤ5ğƷğ wĻƌźğĬźƌźƷǤ ЊЉΏĻğƩ CƚƩĻĭğƭƷЊЉΏĻğƩ CƚƩĻĭğƭƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ DğƦDğƦ LƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷ υЊЋͲЊЌЍͲЍЏЉυЊЋͲЌЎАͲЉЉЉυЋЋЋͲЎЍЉυЊЏͲЉЊЉͲЋЋЉυЌͲЋЋВͲЉЉЉΛυЊЋͲАБЊͲЋЋЉΜ GOLFTRANSPORTATION SERVICES 5ğƷğ wĻƌźğĬźƌźƷǤ5ğƷğ wĻƌźğĬźƌźƷǤ ЊЉΏĻğƩ CƚƩĻĭğƭƷЊЉΏĻğƩ CƚƩĻĭğƭƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ DğƦDğƦ LƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷ υЊЊͲАЋЎͲЋВЏυЊͲЉАЌͲЉЉЉΛυЊЉͲЏЎЋͲЋВЏΜυЋͲВВЍͲЏЊЌυАͲЋЎЊͲЉЉЉυЍͲЋЎЏͲЌБА FLEET 5ğƷğ wĻƌźğĬźƌźƷǤ ЊЉΏĻğƩ CƚƩĻĭğƭƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ DğƦ LƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷ υВЎͲЉВАͲАЏЎυЏЋͲЌЌЌͲЉЉЉΛυЌЋͲАЏЍͲАЏЎΜ CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 16 Future Outlook Improving the Grade This State of the Infrastructure - On an annual basis, an analysis of new and/or changed information will be completed to update each . This analysis will better determine the overall health of the asset category while balancing the need to maintain an expected level of service. Specific examples of activities and programs that influence the annual grade of an asset category include: A continued commitment towards formalized replacement & rehabilitation programs such as the Water Infrastructure Program or Facility Infrastructure Program will ensure appropriate funding to address the aging infrastructure in such a way to meet the expectations of stakeholders. Continued support of the Building Condition Assessment & State of Good Repair programs across City facilities. Continue to implement low impact development (LID) options to further enhance the stormwater mitigation strategies across Kitchener. Continue to enhance inspection programs across asset categories not currently part of formalized programs to better assess the on-going condition of those assets. Although these are but a few specific improvement opportunities, there are some common elements that can be applied across all asset categories: Detailed asset management plans (AMPs) provide long term strategies to ensure we optimize the management of our infrastructure. Creating, updating, and integrating these AMPs into annual workplans will ensure that long term financial and lifecycle management strategies are maintained. Several asset categories have yet to complete asset management plans, while other categories require updating based on new information or changes in service levels. Understanding the health of an asset is a crucial component in assessing the overall condition and useful life of that asset. This information influences preventative maintenance and rehabilitation programs which identify those priority assets requiring the most care and maintenance. Several asset categories have yet to develop inspection programs which if implemented could improve that category. In other cases, the creation of inspection programs are in the initial stages which require critical analysis and follow up from the results to determine effective maintenance levels, prioritization, and actions. This is the only way to start to develop an appropriate preventative maintenance and rehabilitation plan. Quality data is the cornerstone of understanding and influencing decisions surrounding the lifecycle of all assets. A data-driven approach allows decision makers to understand the cause and effect of maintenance activities to the overall CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 17 health of the asset as well as needed in designing/implementing an effective maintenance program. The total cost of ownership helps to inform strategies that s assets while minimizing the risk of failure or degraded services. Continued adoption of the asset management framework supports the ability to minimize collaborative approach between operational teams and the Asset Management Division and increase resiliency against changes in our environment. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 18 Appendix A Explaining the Scorecard In order to consis used in the four factors outlined below (also included the Introduction section on Page 2 of this report). A thorough financial strategy to maintain the expected levels of service throughout the lifecycle of the asset. Condition information that leads to understanding the health of the asset throughout its useful life. The existence of preventative maintenance and/or rehabilitation programs to ensure the assets meet their expected lifecycle. The availability of complete and reliable data for which to create and sustain asset management plans focusing on optimizing the management of the assets. In essence, if a category had met all four factors, they would be assigned a total of 4 points. If they had three factors, 3 points would be assigned, etc. Those points, then would be associated to a grade, as shown below. Grade Factor Points A 4 B 3 C 2 D 1 The overall grade for the city is an overall average of each category combined. As we continue to evolve our asset management program and include more condition related data, a further quantitative evaluation will be included. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 19 REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: April 19, 2021 SUBMITTED BY: Karen Cooper, Manager, Strategic and Business Planning, 519-741-2200 ext. 7817 PREPARED BY: Lauren Burr, Corporate Planning Analyst, 519-741-2200 ext. 7059 WARD(S) INVOLVED: All Ward(s) DATE OF REPORT: April 8, 2021 REPORT NO.: CAO-2021-2 SUBJECT: 2021 Business Plan - April Progress Report RECOMMENDATION: For information REPORT HIGHLIGHTS: This report presents the 2021 Business Plan April Progress Report (Appendix A). The 2021 Business Plan comprises 40 strategic and business plan projects, with 24 to be completed this year. Progress has been made on 28 projects in the first quarter of 2021. The 3 projects completed as of April 30, 2021 include the Online Customer Service Portal Development, Transformation and Relaunch of Kitchener.ca, and Electronic Agenda Management. and vibrant Kitchener. BACKGROUND: As the World Health Organization declared COVID-19 a global pandemic on March 11, 2020, the lives of Kitchener residents and citizens throughout Waterloo Region and around the world dramatically changed. Over the past year, the City placed the safety of citizens and staff as a top priority throughout its pandemic response and recovery efforts, while also supporting the economic sustainability of businesses and employers in the municipality. To achieve these priorities, staff took complementary and innovative approaches to modernize service delivery and improve efficiencies. This included enabling staff to work from home, providing more services online, offering existing programs in new virtual formats, providing training and supports to local businesses and establishing centralized service counters at city hall. While some of the service delivery changes are only temporary to address the pandemic restrictions, many will remain post-pandemic and provide long- term benefits. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. REPORT: 2021 Business Plan - Overall Status In the context of the continuing pandemic, the 2021 Business Plan comprises 40 strategic and business plan projects, with 24 to be completed this year. Three projects have been completed in the first quarter of 2021. As of April 30, 2021, 25 projects are on track to meet their end dates as scheduled in the 2021 Business Plan. 5 projects are delayed, and 7 projects have not started yet. While this would be a commendable start to any year, the progress made in the first quarter of 2021 is especially noteworthy after a year of living with COVID-19. Figure 1: Status of the 2021 Business Plan as of April 30, 2021 Completed On Track Delayed / Not Started Ќ ƦƩƚƆĻĭƷƭ ЋЎ ƦƩƚƆĻĭƷƭЊЋ ƦƩƚƆĻĭƷƭ ΛБіΜ ΛЏЋіΜ ΛЌЉіΜ Figure 2: Status of Projects Scheduled for Completion in 2021 as of April 30, 2021 Completed On Track Delayed / Not Started Ќ ƦƩƚƆĻĭƷƭ ЊЍ ƦƩƚƆĻĭƷƭА ƦƩƚƆĻĭƷƭ ΛЊЌіΜ ΛЎБіΜ ΛЋВіΜ Strategic Plan Projects Overall Status of Strategic Plan Actions 2021 Completed Projects: Online Customer Service Portal Development On March 1, 2021, the City of Kitchener unveiled its new corporate website along with a leading-edge customer service portal called MyKitchener. Citizen input was the driving force and guiding principle in developing the new online experience. The portal offers a personalized user experience through a secure login. With its ability to create a customized d individual interests, My Kitchener is the first city portal of its kind in North America. With a MyKitchener account, users can: Customize their dashboard with content that is relevant to them View information about multiple properties in one place Receive notifications when new information is available like new skating and swimming events, road closures and school bus delays View and pay property tax and utility bills View news and upcoming events Watch council meetings and download meeting minutes and agendas On Track Projects 18 strategic plan projects are on track for completion by their scheduled end dates, including: 2021 Scheduled End Date Projects Pedestrian-First Street Plan for Gaukel Street Community Climate Action Plan Tree Canopy Target Incubator, Accelerator and Co-Working Space Network City-Owned Property Review Equity, Diversity and Inclusion Strategy Mill Courtland Community Centre Expansion Business Case Multi-Language Interpretation Support Customer Satisfaction Program 2022 Scheduled End Date Projects Bikeshare Program Connectivity and Year-Round Maintenance of Multi-Use Trails and Pathways Pedestrian-First Street Plan for Kitchener Market Leverage the Energy Efficiency Reserve Fund Tree Planting Elimination Backlog Huron Brigadoon Area School / Community Centre Construction Open Space Strategy Arts and Culture Plan 2023 Scheduled End Date Projects Protected Cycling Network Connected to the Downtown Delayed Projects Two strategic plan projects are delayed. The New Rosenberg Community Centre/School Business Case is now planned to start in 2023. Work on the Waste Diversion Strategy: Increase Waste Diversion in Our Public Spaces and Events commenced in 2019 but is postponed due to the continuing pandemic. Projects to Start Five strategic plan projects are due to start in 2021: City-Owned Property Brought to Market Innovation District (Bramm Yards) Master Plan Civic District Master Plan Set and Communicate Service Levels Customer Experience Program Status of the Business Plan Projects Completed Projects The following two business plan projects were completed in the first quarter of 2021: Transformation and Relaunch of Kitchener.ca On March 1, 2021, Kitchener launched its comprehensive new online experience for residents, including a completely transformed website and new customer service portal called MyKitchener. The integration between the new website, portal and services reimagines how municipalities offer services online. Staff redeveloped the online presence from the ground up, incorporating best-in-class web design practices to give Kitchener residents easy access to the information they are looking for. The new website is more accessible and easier to understand because it uses language at a Grade 7 reading level. Electronic Agenda Management -wide, fully automated application for submitting agenda items and managing meetings for Council, Standing Committees, and quasi-judicial committee meetings, such as the Committee of Adjustment. Through engagement in 2019, stakeholders identified opportunities to improve the report development and submission process. Agenda.NET creates a number of enhancements and efficiencies, including automatically assigning report numbers, document versioning, cross- departmental collaboration, and automated approval workflows. On Track Projects 7 business plan projects are on track for their scheduled end date in the 2021 Business Plan, including: Budd Park Strategy (2021) Cameron Heights Pool Feasibility Study (2021) Southwest District Pool Business Case (2021) Mobile Time Entry (2021) Rehabilitation of City Hall Outdoor Spaces Construction Phase 1 (2021) Facilities Infrastructure Program (2022) Implementation of Federal Disaster Mitigation & Adaptation Fund (2028) Delayed Projects 5 business plan projects are delayed with completion now planned for 2022 as follows: Ice Demand Study Development Charge (DC) and Community Benefits Charge (CBC) Studies Long Term Financial Plan Implementation Point of Sale and Expansion of Payment Options Implementation of Significant Parks Projects STRATEGIC PLAN ALIGNMENT: innovative, caring and vibrant Kitchener. FINANCIAL IMPLICATIONS: None COMMUNITY ENGAGEMENT: INFORM This report has council / committee meeting. CONSULT In 2018, Compass Kitchener consulted the public on developing community priorities for the 2019-2022 Strategic Plan, which informed preparation of the 2021 Business Plan project list. PREVIOUS REPORTS/AUTHORITIES: CAO-20-008 2020 Business Plan Year-End Progress Report and Recommended 2021 Business Plan Project List APPROVED BY: Dan Chapman, Chief Administrative Officer ATTACHMENTS: Appendix A: 2021 Business Plan Progress Report April 30, 2021 1 334778892 10101315182225252626272729 . .... ...... .............................. ................. ................ ................... .................. ..................... .................... ......................... ........................ ................................................................................ ............................ ............................. ................................................................ ................................ ................................................................ ................................ ................................................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................................................................................ ................................ ................................ ................................................................ ................................ ................................................................ ................................ ................................................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................................................................................ ................................ ................................ ................................................................ ................................ ................................................................ ................................ ................................................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................................................................................ ................................ ................................ ................................................................ ................................ ................................................................ ................................ ................................................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................................................................................ ................................ ................................ ................................................................ ................................ ................................................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ ................................ rategic Plan Actions................................................................ ................................ 19: One Year Later ................................ - Transportation ................................................................ Friendly - ................................ ................................ Impact of COVIDOverall Status of StStrategic Plan Completions and AchievementsPeopleEnvironmental LeadershipVibrant EconomyCaring CommunityGreat Customer ServiceBusiness Plan Project CompletionsCommunity ServicesCorporate ServicesFinancial ServicesInfrastructure Services 2022 Strategic Plan Evaluation Criteria2022 Strategic Plan Actions -- Contents IntroductionOverall Status of the 2021 Business Plan Projects2019Strategic Plan2019Business Plan ProjectsBusiness Plan Projects 3 d an To nly staff s made include how is described of This g training and t the year. , with 10 projects project This report contains as a top priority through Each efficiencies. staff and improve n the Strategic Plan. term benefits. - business plan projects. lan and other key priorities. These projects form outlined i p 14 Council and the community can be proud strategic and business plan projects trategic egion and around the world changed as the World Health s 19. R - placed the safety of citizens modernize service delivery and has to he City pandemic and provide long While this would be a commendable start to any year, the progres - . the economic sustainability of businesses and employers in the municipality. . 2022 Strategic Plan, as well as ing - Over the past year, t and April 30, 2021 mentary and innovative approaches le all 25 actions from the 2019 19 a global pandemic. - recovery efforts, while also support lan, which is developed alongside the budget to ensure resources are aligned to complete the work. including anticipated timing for completion. Regular progress is reported to Council and the public throughou City Council approves a list of projects that implement the current p: One Year Later 19 - allenging time, staff demonstrated resiliency and made progress on local businesses and establishing centralized service counters at city hall. While some of the service delivery changes are o usiness in 2020, and 3 more completed in the first quarter of 2021 b Business Plan includes 1 business plan, March 11, 2020, the lives of Kitchener residents and citizens throughout Waterloo Introduction Each year, Kitchener the annualin the The 202update on progress made between January 1 Impact of COVID OnOrganization declared COVIDits pandemic response andachieve these priorities, staff took compenabling staff to work from home, providing more services online, offering existing programs in new virtual formats, providinsupports to temporary to address the pandemic restrictions, many will remain postThrough this chcompletedin the first quarter of 2021 is especially noteworthy after a year of living with COVIDadapted to the challenges of the pandemic and continued to deliver on the community priorities 4 projects (10%) are delayed, and 5 . Not Started end dates (30%) (29%) 7 projects 12 projects are expected to be completed in 2022, 2 in 2023 and planned 3 1 Delayed or Delayed or Not Started . their this year . (62%) (58%) Projects 21 - On TrackOn Track 25 projects14 projects 10 to be completed %) are on track to meet 62 pages projects 4 ness Plan projects ( as of April 30, 2021 i 5 2 , with 2 Bus 1 (8%) (13%) projects . 3 projects3 projects 40 CompletedCompleted Business Plan 1 started yet have been completed. comprises of the 202of Projects Scheduled for Completion in 2021 as of April 30, 2021 projects and their status is included on have not projects 3 , Status of the 202 StatusStatus (20%) Business Plan : 1:2 1 scription of April 30 de projects Overall The 2021 in 2028. As of 7The FigureFigure 5 ment Transformation and Relaunch of Kitchener.caElectronic Agenda Manage business plan projects 2 1 Construction Phase (2021) : Disaster Mitigation & Adaptation Fund include projects Online Customer Service Portal Development completed Budd Park Strategy (2021)Cameron Heights Pool Feasibility Study (2021)Southwest District Pool Business CaseMobile Time Entry (2021)Rehabilitation of City Hall Outdoor Spaces (2021)Facilities Infrastructure Program (2022)Implementation of Federal (2028) rack 3 T strategic plan project 7 business plan projects 1 Complete The On 25 projects are on track for their scheduled end date in the 2021 Business Plan, including: 6 Implementation on of Payment Options Ice Demand StudyDevelopment Charge (DC) and Community Benefits Charge (CBC) StudiesLong Term Financial Plan Point of Sale and ExpansiImplementation of Significant Parks Projects business plan projects are delayed into 2022, including: 5 (2023) : , including: scheduled to 2022) re (postponed, Community Centre/School Business Case Communicate Service Levels Owned Property Brought to Market - plan projects will begin in 2021 CityInnovation District (Bramm Yards) Master PlanCivic District Master PlanSet and Customer Experience Program Waste Diversion Strategy: Increase Waste Diversion in Our Public Spaces and EventsNew Rosenberg strategic 2 Strategic Plan projects are delayed, including To Start 5 Delayed 7 Plan. , staff Citizen 0 he Strategic As of April 30, 2021, the fall of 202 In . provide a roadmap for the s adopted the 2030 Agenda e implementation of the SDGs will ject he public through an online inning in 2021. 004. - 20 - serve as a model regionally, nationally, and globally. will nequality, confront injustice and tackle climate change by 2030. and Appendix B of report CAO p the SDGs for the Kitchener context. This pro 2022 strategic plan connect to at least one of the SDGs - ing 2022 Strategic Plan: - and adapt ment Goals ing localiz within the strategic planning process c benchmarks and measure progress towards achieving the SDGs within current and future strategic plans. provides advice to Council on 2022 Strategic Plan can be found in - completed (28%). als , begin work on of the 25 action statements within the 2019 Each Green Beacon , Citizen Advisory Committee identifies community priorities for action, and monitors progress toward achieving the community vision and in implementing t er has 4 levels of evaluation criteria/measures for the 2019 2022 Strategic Plan Evaluation Criteria - Overall Implementation of the Strategic PlanOverall Implementation of the Sustainable Development Goals (SDGs) through the Strategic PlanImplementation of Strategic Plan GoImplementation of Strategic Plan Actions Compass Kitchener to fully integrate, implement, and operationalize SDGs 2019 The Compass KitchenerCompass KitchenOne evaluation metric has been proposed for each of the 25 Strategic Plan actions. These metrics will be tracked by staff beg7 out of the 25 strategic plan actions have been At the United Nations (UN) Sustainable Development Summit in September 2015, world leaders from Canada and other member stateThe City of Kitchener is committed to working with the Government of Canada in embracing the 2030 Agenda and to supporting thin Canada and internationally.worked with local consultantCity This localized project has enabled the City to set specifiOnce the localized SDG targets and indicators are finalized and benchmark data has been collected, they will be shared with tDashboard. 8 Strategic Plan Overall Status of Strategic Plan Actions 9 Citizen the new strategic plan project and school bus ity portal of its kind developing c itchener account users can customize their , with additional rollout to follow by summer. DI strategy by end of June 2021. customer service portal, called MyKitchener. services edge - begin in 2021. With a MyK The portal offers a personalized user experience through a . the five goals of the Strategic Plan. The following leading its ith work to each of On March 1, 2021, the City of Kitchener unveiled its new corporate website along with input was the driving force and guiding principle behind online experience. address and individual interests, My Kitchener is the first in North Americadashboard with content that is relevant to them; view information about multiple properties in one place; receive notifications when new information is available like new skating and swimming events, road closuresdelays; view and pay property tax and utility bills; view news and upcoming events; watch a council meeting and download meeting minutes and agendas, and so much more. being prepared for public input. is projects under committed : Language Interpretation Support with key frontline - : s progress in include construction of the Protected Cycling Network, w considerable progress in the first quarter of 2021 in implementation of Multi Completions and Achievements is making Online Customer Service Portal Development A tender posted for A complete draft of the Community Climate Action Plan Starting Data set on tree canopy completed 1. as Strategic Plan The City w Other strategic plan 10 . here ooters as part sc - Update bikes and e - Progress wide bikeshare feasibility study - . a wider range of transportation Completed in 2019.Read Complete Streets Kitchener A regionwas approved that recommends a collaborative approach to a bikeshare program throughout the region. A regionwide project team is investigating the use of eof the future program and note that traditional private bikeshare providers have changed their business model to reflect options 2022 - to 2019 Timeline Complete Completedin 2020 Cronkite Project Manager Barry Cronkite Transportation Services Barry Transportation Services ch bicycles Project ikeshare service in whi b Actions hare Program made available for shared use to the public Complete StreetsƚƩƉ ĭƚƒƦƌĻƷĻķ źƓ ЋЉЊВ͵Bikes Implement aare a feasibility study to determine the most appropriate system. Transform how people move through the city by making the transportation network safe, convenient, comfortable and connected. y 2021. Statement 2022 Strategic Plan - GOAL: Friendly Transportation - Strategic Plan Action Develop a set of Complete Encourage and incentivize 1.1 Streets (safe and comfortable) guidelines and an associated evaluation scorecard by 2020 to apply to roadway construction projects.1.2 alternative modes of transportation by developing and subsidizing a bikeshare program b 2019 People 11 Valley Update Progress . A tender has posted for construction, which will begin in spring 2021.Completed in 2020.Read the Cycling and Trails Master Plan hereTrail improvements are being planned on several community trails and bridges including: Traynor to Wilson, Kingsway to Vanier, sections of the Laurentian Trail, bridges in Vanier, Rothsay, Lynn and Victoria Park. 3 2022022 -- to 2020 Timeline Complete 2020 Completedin 2020 Project Christensen Manager Darren Kropf Transportation Services Liz Christensen Transportation Services Liz Parks & Open Space Design & Development with , round - athways and the Round , in one - Connected to the cent neighbourhoods Trails and P 3 km of existing trails . se round access to a U - use trails and pathways - - Project connectivity and year wayfinding. road cycling facilities, as well as - town by 2022 Use Trails and Pathways Master Plan - the 2010 Cycling Master Plan e actions, Cycling and Trails Master Plan UpdateConnectivity and Year road trails infrastructure nclude on - i Protected Cycling NetworkDowntown Install a continuous and protected cycling network that connects adjato the down 1.4.1 Update2012 Multito offcomprehensive plan that also addresses education and 1.4.2 Maintenance of Multi Prioritizmaintenance to multithrough the Cycling and Trails Master Planan initial target of yearminimum of an additional by 2022. . . cent round access - Statement use trails and pathways town by 2022 - round maintenance to -minimum of an additional Strategic Plan Action Install a continuous and Improve connectivity and 1.3 protected cycling network that connects adjaneighbourhoods to the down 1.4 yearmultias prioritized through the Cycling and Trails Master Planwith an initial target of providing yearto a 3 km of existing trails by 2022 12 Update interventions. Progress cost street - pace in late spring 2021, subject to Gaukel Street was closed to traffic during the pandemic and will continue to remain closed as a passive pedestrian space. The block between King St and Charles St will be turned into passive sdevelopment construction completing, and additional formal seating will be added to the Joseph St/Charles St block in summer 2021.A project charter has been approved. Staff is investigating programming and low 20212022 -- to Timeline Complete 20202021 Project Manager Darren Kropf Transportation Services Darren Kropf Transportation Services . destrians over et Plan for Gaukel et Plan for Kitchener Gaukel Street. Project First StreFirst Stre -- PedestrianPedestrian 1.5.1 Street Develop plans to prioritize pedestrians over other travel modes on 1.5.2 Market Develop plans to prioritize peother travel modes between the Kitchener Market ION station and Kitchener Market first streets - Statement Strategic Plan Action Develop a plan to create 1.5 pedestrianbetween Victoria Park and City Hall and between the ION and Kitchener Market by 2022. 13 . here sources. 2021. - h projects are underway. capital energy reserve project Progress Update 19 safety concerns the project was - Project completed in 2019. Read the Corporate Climate Action Plan Originally the 2020 was to retrofit the remaining administrative office lighting at the Kitchener Operations Facility (KOF). Due to COVIDswitched to outfitting Civic District Garage and KOF Shops & Stores. BotThe KOF administrative lighting project is on hold and will be reassessed in 2021 if it or another project with similar payback will take its place.A draft of the Community Climate Action Plan is complete and is being prepared for final public input. The community climate action plan will be presented to Council by mid 20222021 -- 2019 Complete Timeline to Completed in 20202020 --- Project Manager Claire Bennett AdministrationDevelopment Services Claire Bennett AdministrationDevelopment Services Claire Bennett AdministrationDevelopment Services Reporting Project nually on greenhouse gas emission ommunity Climate Action Plan Corporate Climate Action PlanƚƩƉ ĭƚƒƦƌĻƷĻķ źƓ ЋЉЊВ͵anreduction will continue until 2026.Leverage the Energy Efficiency Reserve Fund Leverage the fund to undertake energy efficiency retrofit projects on City of Kitchener assets and capture and reinvest the operating savings to pay for capital costs.C Complete the 80x50 Community Climate Action Plan. . ciency Reserve i Statement ergy Eff arting in 2019, leverage Achieve a healthy and livable community by proactively mitigating and adapting to climate change and by conserving natural re . Launch and implement a StDevelop a Community Strategic Plan Action 2.1 Corporate Climate Action Plan by 2019 to achieve an absolute greenhouse gas emission reduction of at least 8% by 2026.2.2 the EnFund and other resources to reduce consumption and emission at our facilities and in our operations 2.3 Climate Action Plan with partner organizations by 2020 Environmental Leadership Goal: 14 learning or with visual Community and Council Progress Update emic, large public events were The final tree canopy dataset has been received from the consultant.engagement regarding Kitchener's tree canopy and the setting of a tree canopy target will occur in the spring/early summer of 2021, followed by Council consideration of a tree canopy target.Approximately 630 trees will be planted in 2021. All suitable tree replacement locations identified as of December 31, 2018 will have been planted by the end of 2021, eliminating the 2018 tree planting backlog.Due to the pandcancelled, and this project is postponed until events restart. Recycling and organics diversion has also increased across public facilities and spaces, including a pilot project to improve waste station wayfinding for people impairments as well as English as a second language (ESL) visitors. 22 2021202220 --- Complete Timeline to 202020202020 - Project Manager Dave Schmitt Forestry & Natural Areas Management Adam Buitendyk Forestry & Natural Areas Management Claire Bennett AdministrationDevelopment Services acklog B Project vailability, quality of lanting P run events with large - ion Tree Canopy TargetTree iminat 2.4.1 Review the current canopy cover and set an achievable target based on best practices as well as constraints such as land asoil, etc. in order to guide ongoing and future investment in tree planting, protection and maintenance.2.4.2 El Plant at least 750 trees in 2020, with the goal of reaching 2,500 trees and eliminating the current backlog by the end of 2022.Waste Diversion Strategy: Increase Waste Diversion in Our Public Spaces and Events Expand the Waste Diversion Station to all Cityvolunteer involvement, and evaluate expanded waste diversion stations at events, parks and public facilities. nd events by Statement . . Implement the Reduce waste diverted to Strategic Plan Action 2.4 Sustainable Urban Forest Strategy with a focus on establishing a tree canopy target by 2020 and eliminating the current (2018) tree planting backlog by 2022 2.5 landfills by implementing new diversion programs at our facilities a2021 15 here. and great places . here Progress Update 2019.2019. in in about this project Completed Read the Urban Design Manual Completed Learn 20192019 Complete Timeline to Completed in Completed in Project Manager Dayna Edwards Planning Cory Bluhm Economic Development Project Buildout of 44 Gaukel Urban Design ManualƚƩƉ ĭƚƒƦƌĻƷĻķ źƓ ЋЉЊВ͵3.2.1 ƚƩƉ ĭƚƒƦƌĻƷĻķ źƓ ЋЉЊВ͵ - wide - tech industries. - working spaces by completing Build a vibrant city by making strategic investments to support job creation, economic prosperity, thriving arts and culture, - h/med Complete a new Urban Design Foster the creation of a city Strategic Plan Action Statement 3.1 Manual by 2019 that expresses city building and design expectations to ensure vibrant new development throughout Kitchener.3.2 network of incubators, accelerators and cothe buildout of 44 Gaukel in 2019, advancing work on a Creative Hub and undertaking business cases in 20192021 for the food manufacturing and healt Vibrant Economy GOAL:to live. 16 . here is in late A Because of the to Council owned space and with - ke It Kitchener, components of Progress Update . Due to the pandemic, finalization of the omprehensive review and completion Staff is investigating opportunities for incubators within Citypotential partners. Business cases will be prepared and presented 2021. Completed in 2020.Read the Make It Kitchener 2.0 Strategy Initial focus has been on supportive housingsitesreview is delayed until 2021.pandemic and urgent need around affordable housing and Mathe review commenced in 2020.canticipated in 2021. 2021 - 1 2020 Complete Timeline to 2020 Completed in 202 msky & u Project Manager Cory Bluhm Economic Development Lauren Chlumsky Economic Development Lauren ChlRob Morgan Economic Development tech - eview to ensure the Accelerator and ives. Project comprehensive review ubators. owned properties by 2020 to - Owned Property R - Working Space Network - 3.2.2 Incubator, Co Lease all spaces in the Creative Hub, explore the potential to facilitate a Food Incubator with a business case pending, and explore partnerships for the development of manufacturing and health/medindustry inc Make It Kitchener 2.0 Strategy Develop the Make it Kitchener 2.0 Strategy by 2020 with a focus on transformative actionsattraction, success and retention of diverse businesses, talent, and arts/culture across the city.City Complete aof citydetermine how they could be effectively used to advance city strategic object owned properties by 2020 to - Develop the Make it Kitchener 2.0 Complete a comprehensive review Strategic Plan Action Statement 3.3 Strategy by 2020 with a focus on transformative actions to ensure the attraction, success and retention of diverse businesses, talent, and arts/culture across the city.3.4 of citydetermine how they could be effectively used to advance city strategic objectives. 17 working with University of Progress Update ght to market in late 2021 after This will occur once the City owned property review has been completed by September 2021. It is expected that the first property will be broucomprehensive community engagement.The current focus is Waterloo to build out the Health Innovation Arena on the Health Sciences Campus. Work on the Master Plan will commence in late 2021.Preliminary project planning has started. A visioning exercise will be completed before the Master Plan commences. 1 20232022022 --- 10 Complete Timeline to 2022022021 Bluhm Project Manager Brian Bennett Economic Development Cory Bluhm Economic Development Cory Economic Development th at least one new Project Owned Property Brought - Innovation District (Bramm Civic District Master Plan arket owned property brought to - 3.5.1 Cityto M Develop a vision for downtown Kitchener and continue to position downtown Kitchener as a leading destination for redevelopment opportunities, wicitymarket by 2020.3.5.2 Yards) Master Plan Finalize the Innovation District (Bramm Yards) Master Plan by 2022.3.5.3 Finalize the Civic District Master Plan by 2022. s) owned property brought to Develop a vision for downtown - Strategic Plan Action Statement 3.5 Kitchener and continue to position downtown Kitchener as a leading destination for redevelopment opportunities, with at least one new citymarket by 2020. Finalize the Innovation District (Bramm YardMaster Plan by 2021 and the Civic District Master Plan by 2022. 18 - - & here task force ty, Anti by the end income youth informed - - working groups will be to complete work the Progress Update entorship program for low ommunity grant for racialized groups Policy Training Demographic Data CollectionHiring & Recruitment Communications CM The Mayor's Task Force on Equity, Diversity & Inclusion is on track of June 2021. There are currently seven working groups developing equitystrategies and recommendations in the following areas: The deliverables of compiled into a comprehensive Equity & AntiRacism Strategy for the City of Kitchener, to be implemented by the newly formed EquiRacism & Indigenous Initiatives staff team.Completed in 2020. 2021 - to 2020 Timeline Complete 2020 Completed in - Project Manager ervices Elin Moorlag Silk AdministrationCommunity S Andrew Ramsaroop Planning f o . focused on better nity groups and the and Inclusion able Housing Project industry represented people, as - Strategy reate an Equity, Diversity and Equity, DiversityStrategy CInclusion engaging and serving marginalized and underwell as creating a more inclusive City workplace.Affordable Housing Strategy Create an AffordStrategy for Kitchener by 2020 in collaboration with the Region Waterloo, commudevelopment . . nclusion I industry f Waterloo, o Statement nity groups and the Diversity and , Strategic Plan Action Create a comprehensive Create an Affordable Caring Community 4.1 EquityStrategy by 2020 to combat systemic barriers to full economic and social participation in the city 4.2 Housing Strategy for Kitchener by 2020 in collaboration with the Region commudevelopment 4. GOAL:supporting our diverse populations & helping to make housing affordable. 19 to of 2021. 2 Q . in here Progress Update 2019. in nticipate starting A stigma training will now become a core - Completed in 2020.Antilearning program with ongoing evaluation and customization as required to meet the diversity of staff needs throughout the organization andensure the content is relevant to evolving community needs. Completed Learn about this project Staff resource supporting this project has been redeployed to run summer programs and services. 2021 - to 20202019 Timeline Complete Completed in Completed in 2020 Project Manager Paula Dunn Human Resources Mark Hildebrand Neighbourhood Programs & Services tigma through S aphics. Business Case Project ocial S needs assessment and Courtland Community raining Reduce Support for Safe Consumption Mill T taff 4.3.1 S Provide staff with the resources torespond effectively to changing community demogr 4.3.2 and Treatment FacilitiesƚƩƉ ĭƚƒƦƌĻƷĻķ źƓ ЋЉЊВ͵4.4.1 Centre Expansion Complete a business case to determine the requirements for an addition to the Mill Courtland Community Centre. resources across Statement . and support the and an Open Space ers, Strategic Plan Action Reduce social stigmas Better utilize existing 4.3 experienced by those living with mental illness and addiction in our community through staff training and supporting the creation of appropriate safe consumption and treatment facilities in Kitchener 4.4 facilities, provide relevant programming at community centequitable distribution of leisureprograms and neighbourhoods. Start work on the Mill Courtland Community Centre expansion by 2020 and the Rosenberg Community Centre by 2021. Complete the Huron Brigadoon Community CentreStrategy by 2021. 20 . roject has been sent Progress Update awaiting final costing and approvals - have been approved. P . Project pushed out to 2023 to 2026 by the school boardDetailed design has been completed. Building permits have been approved. Application to the Province for approval of design and budget submitted by Waterloo Region District School Boardto tender Project initiation is ongoing with project manager identified, scope and charter being developed. 2 2022022 -- to 23 Timeline Complete 2021 New date: 20 2020 2020 Lobley Project Manager Mark Hildebrand Neighbourhood Programs & Services Mark Hildebrand Neighbourhood Programs & Services Niall Parks & Cemeteries / assessment and Business Case Project New Rosenberg Community Huron Brigadoon Area School Open Space Strategy 4.4.2 Centre/School With the Catholic School board, complete a needs business case to determine the requirements for a joint community centre/school in the Rosenberg area.4.4.3 Community Centre Construction Construct a joint school/community centre in the Huron Brigadoon area, in partnership with the Waterloo Region District School Board.4.4.4 Develop an open space strategy to explore the value of open spaces, how they function, are planned, maintained, and managed, and including a review of permitted uses in parks. Statement Strategic Plan Action 21 terloo for ime to commence Progress Update on these initiatives in underway. pandemic, and therefore engagement has - The City developed a partnership with the Region of Waterloo and the City of Wastakeholder consultation, research and analysis. A Terms of Reference and plan for stakeholder consultation are under development. Consultation was anticipated for late 2020, however this has been postponed until later in 2021. The appropriate tcommunity engagement for the Culture Plan is postbeen postponed. Support for professional artists and cultural organizations will be considered as part of the COVID recovery plan. Specific engagement 2 202 - to Timeline Complete 2020 Project Manager Emily Robson Economic Development cultural - Project by engaging a broad section of the community - Arts and Culture Plan Develop a new and inclusive Arts and Culture Plan crossincluding the arts and creative industry sector and multicommunities. - - Statement Strategic Plan Action Engage a broad cross 4.5 section of the community including the arts and creative industry sector and multicultural communities to develop an inclusive arts and culture Plan by 2021. 22 open. - re based feedback collection - nal service channels will be mail Progress Update call surveys at our contact centres, as well - Contract for service has been finalized with the vendor. Work with community centres to determine top languages (by neighbourhood) to advertise the new service is complete. A more limited implementation of this service, with key frontline users including Bylaw, Revenue, Corporate Contact Centre and Community Centres, is scheduled to be complete by the end of the April with additional roll out to more staff to follow by summer.Postas online and ebegan in late 2020 for City Hall appointment and Book Your Bubble bookings, and overnight parking exemptions. The program has expanded to include the new MyKitchener portal and website beta launch feedback collection. Additioincorporated into the program as they 20212021 -- Complete Timeline to 20202020 Project Manager Jana Miller Corporate Customer Service Christine Baker Corporate Customer Service ience - wide - demand multi - person inquiries to Project - 7 on - 24 time feedback, monitoring - and engagement with the city by providing friendly, easy and convenient services. an organization Language Interpretation Support - stomer Satisfaction Program that ulti M Implement a language interpretation support for telephone and inenable staff in all facilities to ensure a more consistent and equitable experfor all customers.Customer Satisfaction Program Implement Cuenables realand reporting of satisfaction data to drive service improvements. wide - collection demand - Statement . Strategic Plan Action Provide onIntroduce a corporate 5.1 customer service support in many languages through the Corporate Contact Centre by 2020 5.2 Customer Satisfaction Program that will allow for the of real time feedback from customers accessing city facilities, programs, and services by 2020. Great Customer Service GOAL: 23 rtal: k and portal . Progress Update MyKitchener customer service Completed in 2021.The launched in beta (an almost finished version the public can provide feedback on) to the public on March 1, 2021. The public is testing the functionality of the portal during the beta test and staff are monitoring feedbacmaking improvements based on what we learn. Later in 2021, the project team will regroup to review the scope of Phase 2 of the portal's development, which will include additional new functionality for residents.See the new website and access the powww.kitchener.ca Project to start in late 2021 2022 - Complete Timeline to Completed in 2021 2021 Project Manager Jana Miller Corporate Customer Service Jana Miller Corporate Customer Service services - nd grass e Portal Project ugh a personalized, single a centralized online service portal on account. - aunch Online Customer ServicDevelopment Lwhere citizens can access their ein one place throsign Set and Communicate Service Levels Set clearly communicated and specific service levels for frequently asked about or accessed City services, including: tree maintenance, parking, property standards complaints, snow clearing acutting by 2022. ng and . by 2022 Statement and allowing financial , Strategic Plan Action Enhance customer Set clearly communicated 5.3 experience online by delivering customized information, providing easy access to servicestransactions by 2021.5.4 and specific service levels for frequently asked about or accessed City services, including: tree maintenance, parking, property standards complaints, snow clearigrass cutting 24 . Progress Update Project to start in 2021 2022 - Complete Timeline to 2021 ce Project Manager Jana Miller Corporate Customer Servi Project Customer Experience Program Implement a comprehensive CustomerExperience Review Program to help ensure services are easy and convenient by 2022. Statement Strategic Plan Action Implement a 5.5 comprehensive Customer Experience Review Program to help ensure services are easy and convenient to access from the 2022. 25 ner new website, Council, Standing the its comprehensive new ed wide, fully automated application MyKitchener portal will empower - edge online customer service portal - eedback made it clear that the City is judicial committee meetings, such as the - reimagines how municipalities offer services online. class web design practices to give Kitchener residents - the City of Kitchener launch in - departmental collaboration, and automated approval - serve on their schedule. - ss On March 1, 2021, online experience for Kitchener residents, including a completely transformed website and new, cuttingcalled MyKitchener. The seamless integration between portal and City servicesThe City has redeveloped its online presence from the ground up, incorporating bestexperience includes a new website with plain language content. By lowering the reading level of the website from college to grade seven, the City is making their website more accessible and easier to understand. The City hopes that the new website and residents to self for submitting agenda items and managing meetings for Committees, and quasiCommittee of Adjustment. Through engagement across the City in 2019, stakeholders identified opportunities to improve our report development and submission process. Valuable fready for an enhanced and efficient report writing and meeting management software solution. Agenda.NET creates enhancements and efficiencies, including automatically assigning report numbers, document versioning, croworkflows. For report writers and approvers, it is time to make creating and submitting items to Council and Committee meetings easy! s Transformation and Relaunch of Kitchener.caElectronic Agenda Management 1.2. Business Plan Project Business Plan Project Completions 26 term impacts of - g own. n p the terms of reference for o School Board contacted by the pandemic on ice users is unk Progress Update A condition report has been completed for the facilities on the site. The work to evaluate the benefits of the Budd Lands for employment and for recreation is underway.Waterloo Region District end of March 2021 to confirm support to release the Terms of reference for consultant services.Planning is underway to develthe pool business case.Work was paused to avoid putting additional pressures on the user groups during the pandemic. Speculation on future ice demands is challenging when the lonthe to 2021202120212021 ---- 0 22 TimelineComplete 202202020202020 New date: 20 Project Manager Kim Kugler Sport Kim Kugler Sport Kim Kugler Sport Jeremy Dueck Sport e ermine the elements Feasibility Study Waterloo Region District School Pool Business Cas timing of a new arena. Community ServicesBudd Park Strategy Identify potential sites and estimated costs to relocate the recreational assets at Budd Park and compare the costs to the economic benefits of using the Budd Park for employment lands.Cameron Heights Pool Collaborate with the Board to determine the renovations and estimated costs to isolate the pool operation from the school operation to preserve a recreational asset in the downtown.Southwest District Engage community residents/stakeholders in a needs assessment and business case to detto be included in the new pool.Ice Demand Study Evaluate ice user needs and trends for ice time to determine the 1234 BP0BP0BP0BP0 Business Plan Projects 27 taff , s for council and members of the launch rollout will continue within the - governance, training, documenting ated rules are being considered and built into the . Post launch administrative work will be ongoing - rel - Progress Update The website and portal launched March 1, 2021. Postincludingprocesses, early improvements, etc.Agenda.Net was launched February 5, 2021 for City and on February 19, 2021publicorganiza tion as more Committees are added to the platform. Progress Update Project team currently completing requirements workshops and beginning design phase of the solution. Close collaboration with divisions that will become early adopters has been effective in ensuring all business processes and unionfinal solution. 2021 - Timeline to Complete 2020 Timeline to Complete Completed in 2021Completed in 2021 Communications Services Project Manager Jason Winter Asset Management & Business Solutions Project Manager Nicole Amaral Corporate & Marketing Jeff Bunn Legislated first - based timesheets. - the have to Implement mobile time entry for operations, Corporate ServicesTransformation and Relaunch of Kitchener.ca Relaunch Kitchener.ca as a userdesigned site that is easy for residents to quickly find any information they are looking for, as well as delivered to them.Electronic Agenda Management Create, prepare, approve and publish meeting agenda packages and minutes in a more efficient, collaborative, streamlined manner.Financial ServicesMobile Time Entry eliminating the need for paper 5 06 BP0BP BP07 28 consider the expansion of payment determination on Community Benefits Charge to be Progress Update Provincial legislation proclaimed in Fall 2020. Consultant has been retained and work will be launching in Q1 2021. Planning to complete Development Charges study in 2021, with completed in 2022.Capital Variance report and some policy updates planned for 2021. Other policy updates will occur in a future year.Expansion of Payment Options for Utility and Property Tax customers went live on February 24, 2021. The next phase of the project will options for Business Licensing, Building Permit, Planning and Miscellaneous Receivable services.The Point of Sale part of the project will be delayed until 2022. 202120212021 --- 2 22222 Timeline to Complete 2020 New date: 20 2020 New date: 20 2020 New date: 20 Project Manager Ryan Hagey Financial Planning Ryan Hagey Financial Planning Saleh Saleh Revenue Term - . Implementation ge study life cycle, and expand payment options Financial ServicesDevelopment Charge (DC) & Community Benefits Charge (CBC) Studies investigate whether the City should prepare a community benefits char Long Term Financial Plan Implement/consider recommended actions identified as 2020 items in the LongFinancial Plan.Point of Sale and Expansion of Payment Options Replace the existing Point of Sale system, which is past its for various services. 080910 BPBPBP 29 and development of a , preparations will be taking background research on e, ongoing, and a series of stakeholder Progress Update Several project activities have been completed: a capital budget restructuring exercismunicipal and industry comparatorscapital planning framework and processes. Financial modelling and projection work areworkshops will be conducted starting in May 2021.Construction activities continued in Winter 2020/2021. It is expected that underground work will be completed in Carl Zehr Square in the Spring 2021 and final place for surface concrete placement. Mechanical installations for the ice rink and water feature are underway. The demolition of the upper terrace will also be a focus area of work. 2 lete 2022021 -- Timeline to Comp 20202020 Project Manager Beatrice Powell Facilities Management Lynda Stewart Facilities Management on Carl Zehr r Spaces ing ss the infrastructure focus , term maintenance and capital - comprehensive review of facility construction associated with the rehabilitation Infrastructure ServicesFacilities Infrastructure Program Conduct ainfrastructure needs that will incorporate building condition assessments, sustainability opportunities, and accessibility needs to identify current gaps and inform longimprovement strategies to addredeficit.Rehabilitation of City Hall OutdooConstruction Phase 1 Begin of City Hall Outdoor spacesSquare and College Street. BP11BP12 30 rand River rk to track Community Assessment report, First ently resumed with the donor and and REEP (DMAF funding recipients) Greenhouse Gas consultation, and a framewo - k for RBJ Schlegel Phase 2 is nearing completion WIP (Water Infrastructure Program) is completed to - wood Park will have design and engagement completed in Progress Update Design worwith construction tenders being issued and prepared through spring. Construction is scheduled for summer and fall 2021. Survivor Garden was deferred in 2020 due to the impacts of COVID; discussions have recit is anticipated that this will move forward in 2021, with a tentatively completion of end of 2021. Westwood Park is part of a bundle of parks projects that has been awarded for design, engagement and implementation; West2021, and it is anticipated a tender for work will be issued and awarded in 2021. Construction may need to be deferred to 2022. Currently finalizing reporting and financial claim templates for the program. Preceding conditions of the DMAF agreement are complete, including Nations preEmployment Benefits. Agreements with GConservation Authorityhave been executed. Approximately 9% of construction for the DMAFdate. lete 2028 2021 - - 2 2 Timeline to Comp 2020 New date: 20 2020 Project Manager Niall Lobley Parks & Cemeteries Nick Gollan Sanitary & Stormwater Utilities Park; ; and RBJ Schlegel urvivor Garden Adaptation Fund (DMAF) Infrastructure ServicesImplementation of Significant Parks Projects Complete Phase 2 design work for plan, design and construct the Scomplete the upgrade to Westwood Park.Implementation of the Federal Disaster Mitigation and Plan and execute stormwater management infrastructure projects across the city to leverage the DMAF grant funding and advance the implementation of the 2016 Integrated Stormwater Management Master Plan. 1314 BPBP