HomeMy WebLinkAboutFCS Agenda - 2021-12-061
KiTc�ivER
Finance and Corporate Services
Committee
Agenda
Monday, December 6, 2021, 10:00 a.m. -12:00 p.m.
Electronic Meeting
Due to COVID-19 and recommendations by Waterloo Region Public Health to exercise physical
distancing, City Hall is open for select services. Members of the public are invited to participate in this
meeting electronically by accessing the meeting live -stream video at kitchener. ca/watch now.
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. Please refer to the delegations section on the agenda below for registration
deadlines. Written comments will be circulated prior to the meeting and will form part of the public
record.
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.
Chair: Councillor S. Davey
Vice -Chair: Councillor K. Galloway-Sealock
Pages
1. 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.
1.1. None.
2. Delegations
Pursuant to Council's Procedural By-law, delegations are permitted to address
the Committee for a maximum of five (5) minutes. Delegates must register by
5:00 p.m. on December 3, 2021, in order to participate electronically.
2.1. None at this time.
3. Discussion Items
3.1. COR -2021-28 - Digital Kitchener and 45 m 3
Innovation Lab Update
(Staff will provide a 5 -minute presentation on this matter.)
(This matter was deferred from the November 8, 2021, Finance and
Corporate Services Committee meeting.)
3.2. DSD -2021-167 - Conrad Centre for the 30 m 11
Performing Arts Interim Operating Model
(Staff will provide a 10 -minute presentation on this matter.)
3.3. DSD -2021-172 - Partnership with Textile 15 m 35
Magazine for the 2022 Artist in Residence
Appointment
3.4. DSD -2021-230 - My Main Street Accelerator 20 m 40
Program - Agreement with The Canadian
Urban Institute and Economic Development
Council of Ontario and the City of Kitchener
(Staff will provide a 5 -minute presentation on this matter.)
4. Information Items
4.1. FIN -2021-64 - September 2021 Variance Report 44
5. Adjournment
Sarah Goldrup
Committee Administrator
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Staff Report `
Corporate Services Departrmnt www. kitchener. ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: November 8t", 2021
SUBMITTED BY: Murray, Dan, Director Technology Innovation and Services, 519-
741-2200 ext. 7825
PREPARED BY: Murray, Dan, Director Technology Innovation and Services, 519-
741-2200 ext. 7825
Zinn, Courtney, Innovation Lab Director / Technology Strategist,
519-741-2200 ext. 7034
Bianchi, Sarah -Beth, Manager Digital Transformation and Strategy,
519-741-2200 ext. 7035
WARD(S) INVOLVED: All
DATE OF REPORT: October 25, 2021
REPORT NO.: COR -2021-28
SUBJECT: Digital Kitchener and Innovation Lab Update
RECOMMENDATION:
That report COR -2021-28 - Digital Kitchener and Innovation Lab Update be received
for information.
REPORT HIGHLIGHTS:
• The purpose of this report is to provide an update on progress of the Digital Kitchener
strategy
• The key finding of this report is that the COVID-19 pandemic has driven rapid digital
transformation of City of Kitchener processes and services
• There are no financial implications as a result of this report
• Community engagement included inform, consult and collaborate as appropriate for
each of the initiatives outlined in the report.
• This report supports the delivery of core services.
BACKGROUND:
In 2017, the Digital Kitchener strategy was launched, demonstrating the city's commitment
to creating a world-class smart city. Investing in digital technologies and processes that
would revolutionize the way we do business, and how citizens live, work and play in our
community. We've come a long way in five short years. This report will highlight some of the
most recent achievements toward building a city that is connected, innovative, on -demand
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 3 of 61
and inclusive. Kitchener is recognized, within Canada and internationally for its
achievements in the smart city space.
The impact of the global pandemic over the past two years has catalyzed many digital
transformations, compelling staff and the community to adapt to digital services at a rate we
have never experienced before. The investments in technology made in years prior to the
pandemic positioned the City of Kitchener to respond to this increased demand for digital
transformation.
The Digital Kitchener Innovation Lab has been a cornerstone of the Digital Kitchener
strategy, providing us with presence in the local technology community, engagement with
local higher education institutions and promoting innovative practices within our municipality.
The Lab has been operationalized within Technology Innovation and Services and has
delivered significant projects of interest through design thinking, rapid prototyping of new
ideas and exploration of new technologies like machine learning and augmented reality.
REPORT:
Update on Digital Kitchener
Since the Digital Kitchener strategy was endorsed by Council in January 2017, the city has
taken bold steps to elevate the use of digital technology to enhance the city's operations
and to improve services to residents. Digital Kitchener identified four theme areas:
Connected, Innovative, On -Demand and Inclusive. The intent was to identify 4-5 projects
each year that would be advanced to move Digital Kitchener forward. These strategic
projects were referred to in our annual Brave Plan. Before staff were able to return in 2020
for an update to committee, the COVID-19 pandemic disrupted our normal cadence of
updates. Staff efforts were shifted to respond to the evolving needs driven by the pandemic
and deploying new technology to advance digital services where our traditional service
models where no longer possible. The work completed over the course of 2020 and 2021
have introduced the most significant digital transformations the city has experienced. The
rate of change was driven by the need to quickly adapt and city staff have adopted new
technology, processes and ways of looking at service delivery swiftly. As a result, we have
made significant progress in all themes of Digital Kitchener.
A Microsoft Sway interactive presentation can be viewed at this link highlighting
many of the below Digital Kitchener achievements.
Connected: building smarter infrastructure to become a more competitive, more productive
and more attractive place to live and work.
• Resilience became a critical factor in continuing to deliver services through the
pandemic. With the elevated reliance on the City's network infrastructure to connect
staff to the workplace, facilitate virtual meetings and deliver services digitally, there
was need to ramp up our capacity. Internet services were bolstered and contracts
renegotiated to remove usage limits, VPN infrastructure deployed and leveraged and
our Citrix remote application environment was increased to handle the additional
load. We quickly rolled out Microsoft Teams and Zoom capabilities to ensure that
staff could easily pivot to virtual meetings.
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• Cloud technology was on the technology roadmap and we had begun the planning
for deployment. We leveraged our existing plans while shortening our deployment
schedule bringing Microsoft Azure Active Directory, Multi Factor Authentication and
Microsoft Office365 to city staff quickly to respond to the growing needs. We replaced
our aging email infrastructure with cloud -based Microsoft Exchange services,
increasing our email capacity and availability significantly.
• The exploration of Internet of Things has continued. In a collaboration with Eleven -
X and GHD, we connected several of our passive stormwater monitoring systems to
be able to get real-time data from the system. Another collaboration with Wilfrid
Laurier University and Hemmera saw the deployment of five air quality monitoring
systems across Kitchener around schools to monitor the impact of vehicles idling
around schools on air quality. A data dashboard and open data set have made this
data available to all those in community who wish to use. Work has also continued
on wayfinding applications, people and dog counting for dog parks and soil moisture
sensors.
• Telecom and wireless network infrastructure in our community has also been
improved. The telecommunications tower at Fire Station 7 on Huron Road has been
built and will be put into service improving cellular and Internet service for those in
the Rosenburg, Trussler and South Plains neighbourhoods. A new tower is planned
for Sportsworld Arena this year which will improve services in Sportsworld, Pioneer
Tower West and East neighborhoods. Another is planned for the Alpine
neighborhood which will improve service to all surrounding neighborhoods. Our
network infrastructure was also built out to extend public Wi-Fi to a number of new
locations.
Innovative: inspiring a community of creative minds to drive change that has meaningful
impact
• After a successful 3 year pilot, in January 2021, the Innovation Lab was
operationalized as part of Technology Innovation & Services, further embedding
innovation as our standard operating procedure. The lab supports innovation
throughout the city through design thinking, rapid prototyping and exploring emerging
technologies and potential application within the city.
• The Innovation Lab is supporting innovation in planning engagement through 3D
printing of key development areas including downtown. 31) printed models have
been printed and an Augmented Reality application has been developed with the
potential to help visualize future possibilities.
• Throughout the summer, 360 degree panoramic images were captured along trails
across the city. These images are being published to Google Street View, making
them available to the public to discover new trails and routes and to staff to assist in
work planning.
• Through prototypes and pilots, we're getting hands on with emerging technologies
such as machine learning and artificial intelligence to robotically inspect
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sidewalks, sort large libraries of images and derive new insights from the wealth of
city data.
• The collaborative Technology Solution Assessment process engages technology,
privacy, procurement and legal resources to evaluate new technology projects in their
early stages to identify risks and mitigation strategies, ensuring the city has a
thorough understanding of new technologies and has gathered the appropriate
information for a successful implementation and adoption.
On Demand: enhancing access to open data and online services
• Launched in March 2021, MyKitchener brings together a refreshed website content
and enhanced search experience, and introduced a centralized online services
portal. This transformation was driven by citizens and their feedback in the 2018
Customer Service review, and delivered through collaboration between staff in
technology, customer service and communications roles, and direct engagement with
citizens to define the user experience and prioritize features. The MyKitchener
platform continues to evolve, offering new content and functionality and delivering a
high quality online experience to citizens.
• Building on the power of SAP, we're deploying enhancements with customer impact.
Online tax deferrals and certificates offer convenience and efficient processing.
• Online forms and bookings connect citizens with city services, enabling
convenient, on -demand access to apply to programs, make requests and schedule
appointments 24/7, and have become a crucial tool in enabling the continuity of
business during the pandemic.
• Robust, secure and convenient payment options are a must -have for customers.
Online payment options are now available for property taxes, utilities and financial
services invoices with additional services currently being added.
• Streamlining our response to critical events, the Water Main Break App puts
information at our fingertips, enabling improved coordination and communication.
• The Make Tracks app was developed to provide residents with a pandemic safe
activity to get out and learn more about the landmarks around each of our Community
Centres. This app was honoured with ESRI's App of the Month award in June 2021
for its innovative use of ESRI technology.
• Showcasing the City's Corporate Climate Action Plan, the Climate Action Storymap
demonstrates the critical need for climate action and projects the city is undertaking
to improve sustainability. The storymap was featured as part of THEMUSEUM's
ALARM exhibit in 2020.
• Originally launched through the regional Alert Waterloo Region program, the
Everbridge system enables automated communications to phone, text, and email.
At the onset of the pandemic, staff recognized the opportunity to leverage this
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technology to reach employees who had been directed to shelter at home or placed
on emergency leaves. This technology enabled rapid communication to all available
contact information for staff, saving 50+ hours of communications effort and allowing
the emergency operations center to coordinate on pandemic response.
• The adoption of online expense management and digital signatures has improved
the effectiveness of many of our internal processes and the delivery of customer
service. Concur allows for easy tracking of staff expenses and approvals, eliminating
a paper laden process and streamlining financial reconciliation. The digital
signature platform has enabled more effective processing of grant and funding
agreements, cemeteries contracts, performer and vendor contracts, and employment
agreements especially during the pandemic.
• The Clevest work management system puts all the information needed in the
hands of the on-site technician so they can deliver timely, efficient service to our
Kitchener Utilities customers. The solution is also helping streamline operations,
recording field work in real-time and eliminating paperwork backlogs. This project was
recognized by MISA Ontario in 2021 with an Excellence in Municipal Systems Award.
• The pandemic forced us to look for new ways to work collaboratively. Leveraging our
investment in Microsoft Office365, many processes were redeveloped to use MS
Teams and SharePoint allowing real-time collaboration on documents, presentations,
and spreadsheets. This platform allowed us to collect data from across the
organization, build reports and disseminate information easily to support decision
making throughout the pandemic.
Inclusive: improve digital literacy and access so that Kitchener can be a community where
no citizen is left behind
• Free outdoor public Wi-Fi was added to several downtown locations and
community centres to respond to the need to provide easier access to the service
during the pandemic. Wi-Fi was installed downtown including along King Street,
around Kitchener City Hall, Vogelsang Green and in Goudies Lane. Free public
outdoor Wi-Fi was also installed at Centreville Chicopee and Chandler Mowatt
community centres. The success of the outdoor Wi-Fi service has led to plans to add
this to other community centres.
• Public access computers were deemed a critical service during the pandemic,
ensuring members of our community have access to internet connected devices
during a time when services, shopping, and social connection shifted abruptly to a
digital mode. Computers are offered by pre -booked appointment, with some capacity
reserved for first-come first-served access. This service has been offered at seven
community centres, prioritizing areas of greatest need. Computer access
compliments other critical services on site, such as food distribution and vaccination
clinics.
• Kitchener Tech Connects supports digital access and literacy of older adults
through the provision of a digital device lending library and free training focused on
developing essential technology skills. These technology skills were critical before
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the COVID-19 pandemic. However, this crisis has highlighted the urgent need to
provide older adults with digital access and training to support not only social
connections but also their ability to access essential services and support. This
program was delivered through the Older Adult Services team with support from
Technology Innovation & Services to procure devices and develop device reservation
and course registration solutions.
• City staff also hosted Cyber Security Awareness sessions for senior groups that
had been forced to quickly adopt technology to remain connected with loved ones.
These sessions helped the seniors to benefit from the technology without increasing
the risk of falling prey to the many cyber security concerns that target unsuspecting
end users.
Digital Kitchener Innovation Lab Update
In December 2020, a renewed vision for the Innovation Lab was presented to committee
which would align the work of the lab to the city's strategic priorities and big challenges,
focusing deliverables around three key services:
• Design Sprints - Using a design -sprint model, the Lab leads teams through a
rapid-fire approach to problem solving, guiding an idea from problem definition to
prototyping and user testing before pitching a solution for implementation.
• Rapid Prototyping - Making an idea tangible with very little investment can help
build understanding of the potential benefits and unexpected impacts of new
technologies on customer experience and business processes. Prototypes can
take many forms and offer opportunities to experiment with multiple options,
gather feedback and understand the scope of an initiative early -on when the effort
to pivot or make changes is low.
• Technology Exploration - Demonstrating emerging technologies can help
identify use cases, envision future possibilities, and test user interest before
committing to larger scale investments.
To ensure strategic alignment of the workplan and enable flexible staffing plans, regular
updates and collaboration with the Corporate Leadership Team (CLT) on the lab's
workplan are taking place throughout each year. Accomplishments of the lab up to
December 2020 were shared previously with committee. Accomplishments from 2021 are
highlighted below.
Design Sprints
• Citizen Dashboard Design Sprint - In collaboration with the CAD's office,
Communications and Compass Kitchener we explored the potential for a citizen
dashboard and prototyped ideas of what might be included.
• Design Thinking Training — promoting the power of design thinking and building
internal capacity, the lab delivered internal CapaCITY training courses:
o Customer Journey Mapping - introducing tools to help staff explore customer
experiences and identify opportunities for improvement.
o Test your ideas - focusing on prototypes, pilots, and how to test new ideas and
gather feedback.
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Rapid Prototyping
• City Data Patterns project exploration. Combining multiple city datasets and
applying machine learning techniques, models were created around air quality
(considering weather, traffic counts and tree canopy) and traffic calming aligned to
the existing request evaluation criteria. Both projects resulted in predictive
classification models based on relationships within the datasets. Additional feature
generation, engineering and visualizations were developed to further explore,
validate and understand the model results.
Technology Exploration
• 3D Printing of Downtown and Block Line Station PARTS areas - Over 8 months
in 2021, we 3D printed buildings across a significant area of downtown and the
PARTS area around the Block Line LRT Station. In addition to printing the buildings
in these areas, we have printed our own building blocks that can be used to help
visualize new possibilities in development areas and how buildings of different
heights and configurations may fit into the broader neighbourhood context.
• Through the Safe x Connected Accelerator program, sponsored by Aviva
Canada, we have worked with Numina to pilot 10 devices to monitor the flow of
vehicles, cyclists and pedestrians along the identified slow streets at no cost to the
city. The output data includes counts, pathways and dwell times. The devices were
installed at the end of July and will remain until the end of October. As the slow streets
initiative was created in response to the pandemic, the data collected will help inform
whether the initiative continues.
• The Lab, in collaboration with Parks and Cemeteries, deployed a student on an etrike
to capture 360 degree panoramic images of the winter -maintained multi -use trails
across the city. We captured over 7000 images across over 40 kilometres of trail,
while travelling close to 500km. These images are being connected and published to
Google Street View, offering easy access to the public to discover new trails within
the community and to staff for work planning purposes. Highlighted by multiple local
media sources, this project has been very well received, with Google indicating close
to 40 000 views of our images. We intend to continue to build upon this content, with
plans to capture additional trails, community pathways and parks and refresh the
content as amenities are renovated.
Ongoing Pandemic Response - The lab has also continued to serve as a resource to
rapidly respond to new needs driven by the pandemic, including both data projects and
technology research such as:
• Workforce status and work from home reporting
• Technology research to support new and evolving needs such as people counting
and centralized customer service.
Ongoing Communitech Partnership
Earlier this year, a renewed partnership with Communitech has ensured that the Digital
Kitchener Innovation Lab will continue to have access to the lab space at Communitech and
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ongoing interactions with technology ecosystem and programs offered at the Communitech
Hub for the next five years. As the pandemic related health restrictions lift, we look forward
to being able to fully engage in the technology ecosystem that Communitech offers us.
Looking Forward
Digital Kitchener was envisioned as a 5 year digital strategy when it was launched. While
the arrival of the COVID-19 pandemic has impacted the ability to formalize annual work
plans, an agile, responsive approach has been utilized to continue to advance the strategic
objectives. The themes of Digital Kitchener have endured and remain relevant as we begin
to emerge from the pandemic. We will continue to leverage this agile approach while we
respond to the emerging needs post -pandemic.
When both the community and workplace environments have stabilized post -pandemic and
we can begin to engage fully with stakeholders, we will look to update and modernize Digital
Kitchener for the next five years.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
This report has no financial impactions
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of
the council / committee meeting.
CONSULT — The Digital Kitchener strategy was approved in January 2017 after extensive
consultation with stakeholders
COLLABORATE — Digital Kitchener's initiatives are developed in collaboration with various
internal and external partners.
PREVIOUS REPORTS/AUTHORITIES:
• FCS -017-002 — Digital Kitchener Strategy
• FCS -017-006 — Digital Kitchener — Civic Innovation Lab
• FCS -18-009 — Digital Kitchener 2017-2018 Update
• COR -19-017 — Digital Kitchener 2019 Update
• COR -20-019 — Digital Kitchener Innovation Lab Update
APPROVED BY: Victoria Raab, General Manager of Corporate Services
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Staff Report `
Develo lnentServicesDeoartr7ent www.kitchenerca
REPORT TO: Finance & Corporate Services Committee
DATE OF MEETING: December 6, 2021
SUBMITTED BY: Bluhm, Cory, Executive Director, Economic Development, 519-741-
2200 ext. 7065
PREPARED BY: Robson, Emily, Manager, Arts & Creative Industries, 519-741-2200
ext. 7084
WARD(S) INVOLVED: All
DATE OF REPORT: November 15, 2021
REPORT NO.: DSD -2021-167
SUBJECT: Conrad Center for the Performing Arts Interim Operating Model
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute a two-year lease agreement with
the Kitchener Waterloo Symphony at the Conrad Centre for the Performing Arts, with
terms and conditions generally consistent with the current lease agreement, said
agreement to be satisfactory to the City Solicitor, as outlined in Development
Services Department report DSD -2021-167; and
That the proposed grant program to support access to the Conrad Centre for
Performing Arts, as outlined in Appendix A of Development Services Department
report DSD -2021-167 be approved with an annual budget in 2022 of $80,000; and
That the Deputy Chief Administrative Officer and General Managers be authorized to
execute agreements with recipients pertaining to the proposed grant program; and
further,
That staff develop a scope of work and Terms of Reference for the development of a
long-term model for the Conrad Centre for the Performing Arts.
REPORT HIGHLIGHTS:
The purpose of this report is to seek direction to execute an interim operating model for
Conrad Centre for the Performing Arts.
The key finding of this report is that a short-term lease with Kitchener Waterloo
Symphony and a grant program to support affordable access are necessary to achieve
the objectives at the Conrad Centre for the Performing Arts.
The financial implications are $80,000 allocated for a new grant program funded by the
rent collected from the lease agreement with Kitchener Waterloo Symphony and the
Economic Development Reserve Fund.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 11 of 61
• Community engagement included consultation with Kitchener Waterloo Symphony.
• This report supports A Vibrant Economy.
BACKGROUND:
In early 2021, the Conrad family gifted the city a 24,000 square foot performing arts
facility located in Downtown Kitchener at 36 King Street West, known as the Conrad Centre
for the Performing Arts (CCPA). The venue is a key component of realising the City's Make
It Kitchener 2.0 vision for both a strong creative industries sector and enabling platforms for
our community to create a vibrant city.
The facility has been occupied by the Kitchener Waterloo Symphony (KWS) since 2009.
The KWS is the main tenant of the CCPA and operates the facility on a cost -recovery
basis. The KWS currently pays the City $38,000 in rent and is responsible for the building's
operating expenses.
Current rental costs at the CCPA are prohibitive for many local performing arts groups and
therefore securing third party bookings has proven to be a challenge. KWS has recently
entered into an agreement with Green Light Arts to assist with securing and supporting third
party rental bookings. KWS has never received public subsidy for its stewardship of CCPA,
which might have been used to mitigate other users' costs.
As part of the donation of the facility, the City made a commitment to the Conrad family to
bring the facility to life and see it play a prominent role in local performing arts. Staff propose
meeting this expectation through a two-phase process:
Phase 1 – Interim operating model that includes a lease agreement with KWS focused on
enabling increased use through a City -issued grant (subject of this report).
Phase 2 – Comprehensive review of the CCPA operating model in 2022-2023 (future report).
The performing arts sector has been greatly impacted by the COVID-19 pandemic. What
was already a challenging financial model has been further hampered by reduced house
sizes and the impact of other public health constraints. For this reason, efforts to improve
affordability at the CCPA are also efforts to support the development and recovery of the
performing arts sector.
REPORT:
The CCPA is a highly valued community asset and sophisticated theatre venue. The current
operating model has proven cost prohibitive for local performing arts groups. With the
building now in public ownership, the City has an opportunity to steward a new operating
model that will drive higher levels of utilization.
Management of performing arts venues, particularly those with the degree of complexity of
the CCPA, requires specific expertise. As such, staff propose a two-phase approach which
will stimulate an increase in performances during phase one, while providing a window of
time for the City to:
1) Better understand the operating opportunities and challenges of the CCPA;
11) Engage experts in the field of managing performing arts venues;
111) Engage the local performing arts community; and,
IV) Consider the role of the CCPA in relation to other performing arts venues under
City ownership.
Phase 1—Interim Operating Model
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To ensure the CCPA continues operations in 2022-2023, and to support increased
performances/pandemic recovery, the following two actions are proposed:
1. Enter into a 2 -Year Lease Agreement with KWS
Staff recommend execution of a lease agreement between the City of Kitchener and the
Kitchener -Waterloo Symphony for an 18 to 24 -month term. The terms of the lease will
largely be taken from the KWS's lease with the Conrad family, including annual rent of
$38,000. The lease would permit KWS to utilize a third -party operating partner to support
increased use of the theatre KWS would maintain responsibility for general building
operations, security, internet, custodial, and interior maintenance. The City would be
responsible for life safety systems and building envelope projects (i.e., new roof, elevator
maintenance etc.). An Issue Paper was included in the 2022 Budget Process identifying
costs associated with these responsibilities.
Further detail on this analysis is included in the CCPA Interim Model Business Case
(Appendix B).
2. Establish a Grant Program to Support Increased Programming
As the operating tenant, KWS remains a key partner in increasing theatre usage. The KWS
currently operates the theatre on a cost -recovery basis. Staff have assessed KWS's current
cost structure for theatre rentals and confirm that this structure is reasonable for KWS to
break even. As a result, the only immediate method to boost live performances would be
through subsidization. As such, staff propose development of a grant program with the
following objectives:
• Increase the dates booked at the CCPA from 55 (2019) to 70-80 annually in 2022 &
2023;
• Decrease the cost to performing arts users to rent the facility; and,
• Support a greater diversity of programming.
To achieve this volume of performances, staff estimate the need for an annual grant fund of
$80,000, proposed to be funded as follows:
• $38,000 rent revenue from KWS
• $42,000 from the Make It Kitchener 2.0 Reserve
This approach will build on current operations at CCPA and will offer the City the opportunity
to prioritize which organizations have preferred and discounted access to the theatre.
Priority would be given to local performers, non-profit performing arts organizations,
including theatre, dance, and music; and equity -deserving applicants. Rental costs would
be offset to bring the fees in line with comparable facilities. Appendix A: Event and
Performing Arts Grant for Presenters at Conrad Centre for the Performing Arts details the
framework and criteria for this grant program.
Phase 2—Comprehensive review of CCPA operating model
In early 2022, staff will prepare a report to seek direction on the comprehensive review,
including the scope of work and terms of reference. Staff anticipate seeking support for the
retention of a consultant to facilitate components of the comprehensive review that require
specialized knowledge of performing arts/theater operations, and to facilitate objective
stakeholder engagement. Staff would endeavour to complete this review by the end of 2022.
Page 13 of 61
The anticipated scope of work will include:
• Research of industry best practices;
• Review existing operating models of municipally owned performing arts venues across
Canada;
• Stakeholder consultation;
• Suggested program mix for performances and use of the facility; and,
• Potential long-term operating and financial models for Council's consideration
STRATEGIC PLAN ALIGNMENT:
This report supports A Vibrant Economy.
FINANCIAL IMPLICATIONS:
Capital Budget — Make it Kitchener 2.0 Reserve
In 2021, Council approved a Recovery Framework, including an allocation of $5 million to
support recovery efforts. Given that the proposed grant program will support local
performing arts organizations who have been impacted by the pandemic, staff recommend
allocating $42,000 in 2022. The remaining $38,000 required to support the grant program
would be funded using the lease payments from the KWS.
Operating Budget — The recommendation has no impact on the Operating Budget.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of
the council / committee meeting.
CONSULT — Staff have consulted one-on-one with key stakeholders.
COLLABORATE — KWS agrees with the proposed approach.
APPROVED BY: Readman, Justin General Manager of Development Services
ATTACHMENTS:
Appendix A — Event and Performing Arts Grant for Presenters at Conrad Centre for
the Performing Arts
Appendix B — Business Case for Interim Operating Model at Conrad Centre for the
Performing Arts
Page 14 of 61
APPENDIX A
EVENT AND PERFORMING ARTS GRANT FOR PRESENTERS AT CONRAD CENTRE
FOR THE PERFORMING ARTS
In alignment with the City of Kitchener's Make It Kitchener 2.0 strategy and section 12.0 of
the City of Kitchener's Community Investment Fund (FIN -GRA -525), the City shall offer
grants to local performing arts organizations to support rental costs associated with the
use of the Conrad Centre for the Performing Arts, as described herein.
1. Background
In 2021, the City of Kitchener acquired the Conrad Centre for the Performing Arts (CCPA)
with the goal of increasing the number of nights the facility is programmed for live
performance (ex: theatrical, music, dance, comedy, etc.). Local performing arts
organizations have noted that the high rental costs of the facility are the primary challenge.
KWS has never received public subsidy for its stewardship of CCPA, which might have
been used to mitigate other users' costs. As such, the City is offering a pilot program
where the City will consider applications for grant funding to offset a portion of the rental
costs.
2. Intent
This grant program is intended to assist local performing arts organizations seeking to rent
the CCPA for the purposes of hosting live performances that are open to the general
public to attend. Eligible costs include:
a. Rental fees for the facility, as charged by the Kitchener Waterloo Symphony (KWS);
and,
b. Fees associated with the use of specially contracted Kitchener Waterloo Symphony
staff for the performance, not included in the rental fee (such as ushers, sound
technicians, front of house staff, etc.).
Ineligible costs include any expense the organization incurs to produce a performance,
such as artist fees, management costs, presenting costs, ticketing fees not associated with
KWS, wardrobe, set production, additional sound/light equipment, any staffing costs
associated with the organization, etc.
3. Area of Application
This grant program is only available for performances at the Conrad Centre for the
Performing Arts.
4. Eligibility Requirements
Only those applicants which meet the following requirements will be eligible to receive a
grant:
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a. All applications for grants under this program are subject to the availability of
funding. The provision of any grant funding will be considered on a first come first
served basis.
b. Applicants must be a performing artist or performing arts organization based in
Waterloo Region.
c. For a performance to be eligible, the majority of artists, performers and technical
staff must live and/or work in Waterloo Region.
d. Only those performances which are open to the general public to attend shall be
considered. Grants will not be given for any rentals where the primary purpose
includes any of the following:
i. For rehearsals only.
ii. For private production, such as filming.
iii. Religious rentals, ceremonies, or family celebrations, such as weddings.
iv. Private parties and events.
v. Academic lectures not associated with arts -based programming.
vi. Social dances; and,
vii. Corporate meetings, fundraising events, etc.
e. Applications must be received at least 6 -weeks prior to start of the rental
f. Applicants must be able to provide proof of insurance naming the Corporation of the
City of Kitchener as additional insured in an amount determined by the City of
Kitchener and/or the KWS.
g. Grants will not be issued to any applicant who is in financial arrears to, or involved
in active litigation against, the City of Kitchener.
h. The City of Kitchener reserves the right to deny or refuse any application.
Preference may be given to applications which demonstrate the following:
a. Performing arts organizations which hold a not-for-profit status.
b. Applicants with a history of executing successful events/performances/productions.
c. Applicants whose organization demonstrates attention to diversity and inclusion.
d. Applicants who show a commitment to volunteer development and fosters local
partnerships.
5. Program Assistance and Requirements
a. The grant shall not exceed 50% of the rental costs per production as billed by the
KWS, in accordance with Section 2 Intent as noted above. The maximum amount of
any grant issued under this program shall be $3,000. The City may consider grants
exceeding $3,000 for rental agreements which extend beyond 1 (one) week in
duration.
b. The value of the grant provided shall be determined at the sole discretion of the City
of Kitchener.
c. Prior to applying, applicants are required to contact the KWS directly and negotiate
for a rental quote and venue dates. The rental quote provided by KWS must be
submitted to the City as part of any application. The rental quote must include the
costs associated with rental of the venue and any KWS staffing charges.
d. All decisions on rental dates are at the sole discretion of KWS and its designates.
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e. All grants will be provided directly from the City to KWS to offset rental costs. No
funding will be provided directly to the applicant.
f. Organizations may apply for multiple grants throughout a calendar year. No more
than 1 grant shall be issued per performance or production. Approval of a grant
does not ensure approval will be given to any subsequent grant applications.
6. Procedures
a. The applicant is required to submit a complete application form to the City of
Kitchener, through one of the following ways:
Submit electronically to Karoline Varin at karoline.varine@kitchener.ca
Submit an application in writing to:
Karoline Varin
200 King Street West
City Hall — 61" Floor
PO Box 1118
Kitchener, ON
N2G 4G7
b. Complete applications will be reviewed and evaluated on an on-going basis.
c. Applicants must have secured a tentative booking date(s) from KWS and been
issued a rental quote from KWS.
d. Groups will be notified of the outcome as soon as possible, typically within 2 weeks
of an applicant's submission.
e. Applicants will be issued a letter from the City confirming the status of their
applications. For approved applications, said letter will identify the value of the
grant which will be provided to KWS for reflection on the rental invoice. Approval
letters will be forwarded to KWS; however, it is the applicant's responsibility to
ensure rental invoices accurately reflect the value of grant funding provided.
f. The needs of each applicant are unique, and the guidelines cannot address every
possible scenario. If more information is needed, city staff will work with applicants
to gather the information required to make an informed decision.
g. The applicant agrees to report back to the City, upon completion of the
event/production, the following:
• Confirmation the performance occurred; and,
• A copy of the final invoice or similar, from KWS, indicating that all financial
obligations have been reconciled.
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BUSINESS CASE
Conrad Centre for Performing Arts
09/28/2021
CONRAD CENTRE FOR PERFORMING ARTS - 09/2021
TABLE OF CONTENTS
pi
E)ECUTIW SUMMARY- "THE WHY'........................................................................................................ 2
BUSINESS DESCRIPTION- "THE HOW'................................................................................................... 2
OPPORTUNITY- "THE WHAT"................................................................................................................. 2
ECONOM[C "ACT ANALYSIS.................................................................................................................. 2
SWOTANALYSIS........................................................................................................................................ 2
MARKTAS SES SMENT............................................................................................................................. 2
STRATEGICALIGNMENT........................................................................................................................... 2
FINANCIAL PLAN & RISKANALYSIS ..........................................................................................................2
OPTIONSCONSIDERED............................................................................................................................ 2
CONCLUSIONS AND RECONtAENDATIONS.............................................................................................. 2
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When Manfred and Penny Conrad donated the Conrad Centre for the Performing Arts (CCPA) to
the City of Kitchener, it was on a promise. Originally built to be an ongoing epicenter of
performing arts in our region, the Conrad Centre has failed to achieve the collective
community's expected level of use. As a cultural destination in Downtown Kitchener, the
Conrad Centre has not drawn the degree of foot traffic to King Street it could if fully utilized.
To make matters worse, the pandemic has halted every in-person performance industry
(theatre, live music, comedy, etc.). Desperate to return to live experiences, local industry
stakeholders will need significant support to rebuild their internal infrastructure and re-engage
their audience. Many will be returning to operations in the face of significant financial barriers
and debts. Should the Federal and Provincial governments continue to provide recovery
funding, opportunity exists to enable local cultural producers to re-engage the CCPA
But even more importantly, what our community has missed the most is the transformative
power of performance. To experience live performance (theatre, music, comedy, etc.) doesn't
just boost our spirits but can shift our very outlook on life and inspire us to make the world
better. Emerging from a pandemic, live performance could be at the forefront of bringing our
community back to life.
In the coming years, the City will explore a new long-term operating model for the CCPA. In the
interim, however, the City has an opportunity to facilitate new live performance measures
through modest resource contributions that are identified in this business case.
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M
The City of Kitchener is uniquely positioned in the Arts and Culture space not only because of
the diverse community in Kitchener but also because of the growing interest and participation
seen in the arts and culture sector. However, the impact of the pandemic and lack of available
performance spaces has significantly impeded our community's ability to grow:
Challenge #1— Impact of the Pandemic
Throughout the pandemic, arts and cultural events were forced to cancel or postpone to a later
date. These postponements drastically impacted the arts and culture scene not only financially
impacting the event organizers and facilities but also affecting community spirit, morale, and
vibrancy. The negative impact the sector has gone through has been substantial. According to
Statistics Canada data prepared by the Canadian Association of the Performing Arts, those
engaged in live performances have been disproportionately impacted relative to the sector.
• While the GDP for the cultural sector was 7.6% away from full recovery in the first
quarter of 2021, the GDP for the live performance domain was 62.9% away from full
recovery.
• Similarly, while culture jobs are 11.0% away from their pre-COVID level, employment in
the live performance domain is 46.7% away from its pre-COVID.
Challenge #2 — Lack of Accessible & Affordable Performance Spaces
For many years, the performing arts community has expressed their challenges in accessing
affordable performance and rehearsal space. In 2016 The Registry Theatre/JM Drama retained
ArtsBuild Ontario to facilitate a strategic "refresh" of their organization (CAO -15-021). Through
interviews with 43 stakeholders and in reference to other community consultation findings, the
report found that "the arts community is in immediate need of affordable rehearsal and
performance space". Furthermore, key local stakeholders indicated that despite the existence
of several theatres/performing arts spaces in the community, many of these spaces are
inaccessible due to cost. The heart of the issue is that while the cost of operating performing
arts venues is high, the ability of many users to pay this direct cost is low. Therefore, most
venues, especially those presenting smaller productions find ways to offset these costs. For
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examples, the KWS currently operates the theatre on a cost -recovery basis and this fee is often
too costly for many presenters to afford. Throughout the interviews, there were three theatres
mentioned repeatedly that the interviewees considered to be "their" performing arts theatres
in the community, The Conrad Centre for the Performing Arts, The Registry Theatre and Centre
in the Square.
Interim Opportunity — Increase Access to the Conrad Centre for the Performing Arts
The Conrad Centre for Performing Arts (CCPA) was donated to the City by the Conrad family in
2020. The Conrad Centre holds 226-400 people and has been in operation since 2003, being
operated by the Kitchener -Waterloo Symphony (KWS). To date, the CCPA hosts the KWS along
with other arts and cultural groups on an annual basis. As the City looks to restructure the lease
agreement with the KWS, new opportunities exist for the City to enable other arts and culture
groups to use the CCPA facility. With an increased need for affordable rehearsal and
performance space, the City sees an opportunity to revisit the cost structure for the CCPA
facility and look at new ways to minimize costs for both the KWS and other arts and culture
groups interested in renting the facility.
Long-term Opportunity — Re-evaluate the Operating Model of the Conrad Centre for the
Performing Arts
Subject to a future business case, analysis, community engagement and expert input, City staff
intend to undertake a comprehensive review of the operating model of the CCPA to determine
more permanent solutions for increasing access to the theater and bringing the facility to full
life. The interim opportunity proposed through this business case will allow the City to gain
insights and learnings ahead of a permanent solution.
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To support the local live performance industry while increasing the frequency of use at the
CCPA, the City could consider the following interventions:
Intervention #1— Reduce Rental Fees at the CCPA
Following in-depth discussions with KWS, staff are of the opinion that the cost structure the
KWS uses for third party organizations to utilize the theatre is reasonable. While there may be
modest opportunities to reduce costs, rentals contribute a negative variance to the KWS
budget. As such, the simplest way for the City to increase usage is to provide a subsidy for live
performances, ideally at an amount of 50% of the rental rate (greater detail is provided in the
Economic Analysis section). Three potential options include:
1) Subsidize the operations of KWS through rent relief and an operating contribution. Through
the lease agreement, KWS would be required to offer reduced rental rates accordingly. Their
exposure would be capped based on the City's contribution.
2) Offer a grant program, like the City's Tier 2 Grant Program, where live performance
organizations can apply for an operating grant to subsidize up to 50% of the cost of the rental.
The City could cap its exposure but setting a maximum annual grant amount.
3) Direct liaison support, whereby City staff would actively work with local live performance
organizations to facilitate new rentals of the CCPA. Staff would have access to a fund and
authority to provide grants for rent subsidies. The City could cap its exposure by setting an
annual grant amount.
In the interim, City staff recommend option two as the operating model. The City would offer a
grant program where organizations can apply for an operating grant to subsidize up to 50% of
the cost of the rental.
Intervention #2 — Support KWS in an Enhanced Rental Experience
City staff, whom have extensive experience in venue rentals and event management, would
work with KWS to identify opportunities for an enhanced experience for organizations seeking
to rent the CCPA for live performance. The goal of this work would be to identify opportunities
to reduce the operating demands rentals place on KWS while potentially streamlining processes
utilizing tools the City has access to.
Intervention #3 — Support KWS in Identifying Opportunities to Reduce Risk Exposure
The CCPA is a complex facility that comes with inherent risks in enabling third party
organizations to utilize the space. These include, but not limited to, use of stadium seating, use
of specialized lighting/sound equipment, serving of alcohol, working at heights, etc.
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Historically, the options for mitigating these risks are either to avoid high-risk activities, require
existing staffing to mitigate risks and/or higher insurance premiums. All the above can
contribute to difficulties activating the facility, City staff would work with internal risk/legal
experts and KWS staff to identify any alternative, cost-effective options for mitigating risk.
Purpose of this Business Case
Based on the foregoing, the primary purpose of this business case is to assess the impact and
value on return should the City seek to pursue Interventions 1 through 3.
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As previously mentioned, the arts and culture community are in immediate need of rehearsal
and performance space. Findings from the 2016 Registry Theatre/JM Drama Strategic Refresh
Report noted "over 200+ rental requests were turned away, as their theatre was fully booked".
In contrast, the Kitchener Memorial Auditorium sets yearly targets of 800,000+ annual
participants and 23,000+ ice hours utilized, surpassing both targets on an annual basis. It is no
surprise that our local facilities are operating beyond capacity and having to turn business
away.
With the current operating structure of the CCPA,
• Annually, approximately 55 events are hosted.
• Current average cost of renting the facility is $1133 per event. The proposed grant
subsidy could reduce this cost to $567 per event.
• With a restructuring of the operating structure, the CCPA could host an approximate
total of 80 events at a lower cost to event organizers.
• Although it's not a substantial increase in events held, creating availability for an
additional 25 events/organizations will provide much needed rehearsal and
performance space in the City.
• 80 events with an average attendance of 150 would bring a total of 12,000 additional
visits to Downtown Kitchener.
Research commissioned by the Canadian Associated for the Performing Arts indicates that the
performing arts benefits span many aspects of life. The Value of Presenting: A Study of
Performing Arts Presentation in Canada, a culmination of two years of intensive action
research, which involved two pan -Canadian surveys, and consultations of more than 1,000
stakeholders, articulates several findings:
• Canadians believe that the presentation of performing arts equally benefits the
individual who attends and the community as a whole.
• Canadians who attend performing arts events are first and foremost looking for a fun,
entertaining experience (84%). They are also seeking emotional, intellectual, or spiritual
stimulation (58%), as well as the opportunity to experience or learn something new
(57%).
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• For Canadians, the highest-rated benefits of the performing arts in their communities
are energy and vitality along with improved quality of life, and a more creative
community.
• The broader society also benefits from the spill-over effects of the performing arts on
health, education, social cohesion, and economic development
Providing local performing arts groups with additional space at a reasonable price will help
boost community morale, spirit and will give residents access to new and exciting events. After
a pandemic that rippled through the arts and culture scene, ensuring we bounce back as a
community and provide residents with opportunities to enjoy some down time with friends and
family will help us with our recovery efforts. Giving locals and visitors a chance to get out and
enjoy an event held at the CCPA will help re -spark local tourism, will increase hotel bookings,
increase food spending, and will reignite the economy within the downtown core and
surrounding areas.
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The SWOT analysis below is based on the interim approach planned for the CCPA facility.
Additional points will be made on the long-term opportunity in the final business case.
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STRENGTHS
WEAKNESSES
•
The donation of the CCPA to the City gives
• The City doesn't have the capacity to
the City a unique, highly coveted space to
manage the building in the interim. The City
more actively manage/support
will need to work closely with the KWS to
•
KWS have extensive experience using and
find an operating structure that works for all
renting the Conrad Centre.
parties
•
KWS has strong knowledge of the technical
• Operating subsidies are likely need in the
elements of the theatre (ex: lighting, sound,
interim
seating configurations, etc.)
•
The City has experience in event
management and venue rentals; knowledge
transfer will be beneficial
•
Numerous local organizations have an
interest in utilizing the CCPA for live
performance
OPPORTUNITIES
THREATS
•
Gives the City a chance to experience the
• Currently it is hard to predict whether there
CCPA operating model, in advance of
will be another lockdown in the future but
developing a long-term model.
any type of lockdown or reintroduction of
•
To support the arts and culture community
restrictions, including additional costs which
by opening the availability of the CCPA and
may be required to meet requirements.
welcoming new events to the City and new
• If the pandemic subsides, other facilities
organizers
within the Region may be aggressively
•
To support performing arts with affordable
looking to book similar events.
access to the CCPA — more bookings, more
• Hard to predict the level of interest residents
paid performers, more local spending by
will have in a large gathering within the CCPA
attendees
even with social distancing protocols in
•
Residents may be eager to reconnect with
place. It may take a gradual effort in slowly
community events as the pandemic passes,
increasing attendance to ease the crowds
creating an opportunity to engage new
back into the CCPA.
audiences
•
Opportunity to increase foot traffic and
consumer spending downtown
•
With the potential for future COVID recovery
funding streams (from other levels of
government), the CCPA could become a
willing, host venue for funding recipients.
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Waterloo Region is home to several facilities that support similar events to those often held at
the CCPA. Below is a list of alternative event spaces with feedback which was provided by key
renters in the community. These results were gathered by ArtsBuild Ontario to get a better
understanding of the Registry's Theater's strategic refresh in 2016. Costs for the associated
facilities listed below will be included in the final business case.
• Studio 180 — Limited equipment and house capacity can negatively impact revenue
generation through ticket sales
• KW Little Theatre — Often too small for the purpose of larger productions, negatively
impacting the potential of revenue generation through ticket sales
• Maureen Forrester Recital Hall, Wilfrid Laurier University—Unaffordable
• Humanities Theatre, University of Waterloo — Unaffordable, difficult to navigate campus
making the theatre hard to find for audiences
• Cambridge Centre for the Arts — High demand and limited availability, too far for many
Kitchener -based audiences to travel
• Registry Theatre — Great location, limited availability due to high number of bookings
• The Studio, Centre in the Square—Unaffordable
Potential users of the CCPA include, but not limited to, the following:
• Actout KW Children's Drama Workshop
• BlackBall Comedy
• Flush Ink Productions
• Green Light Arts
• Inter Arts Matrix
• Kitchener Waterloo Comedy Festival
• Kitchener Waterloo Musical Productions
• Mada Theatre Collective
• MT Space
• Neruda Arts
• Pat the Dog Theatre Creation
• Shadow Puppet Theatre
• Unwrap Theatre
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Based on Statistics Canada and Environics data, the Canadian Association of Performing Arts
identified the following trends:
• Seven in ten Canadian (68%) a performing arts event or an artistic or cultural festival in
2016. This attendance rate is high across all demographic groups.
• Seven in ten (69%) Canadians consider arts and cultural events to be either very (27%)
or moderately important (42%) to their own and their family's quality of life.
• 79% of Canadians say they would miss it if there were no live, professional performing
arts available in their community (21% to a moderate extent and 58% to a high extent).
• The live performance domain contributed $2.9 billion to the Canadian Gross Domestic
Product in 2018.
• 65% of businesses and skilled workers agree that a thriving arts and culture scene is a
driving factor when considering relocation
The CCPA, with its prime location in the downtown core, is ideally situated to meet the need
for affordable and centrally located performance space. If rental costs can be subsidized, the
CCPA could be appealing to key organizations along with new entrants. Within the downtown
core, there is no other space of its size and scale, making this a unique facility. The CCPA was
designed and built in a way to offer a space for small to mid-sized events, offering a full
professional experience, a niche that differentiates the CCPA.
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This facility and its purpose align with Make It Kitchener 2.0 and the goal of creating a vibrant
and active city by "launching platforms and enabling opportunities through the City for
difference makers to bring our city to life. To work with key stakeholders, business areas and
cultural producers to build and promote inspiring and impactful experiences." The CCPA facility
strategically fits with this goal as the CCPA can be utilized to instill the much -anticipated return
of arts and culture events. Providing some form of subsidization of rental costs will create a
platform for new organizations to rent the space and will enable difference makers to utilize
such a coveted and respected space in the community.
The second alignment this project has with the Make it Kitchener 2.0 strategy is with the long-
term plan to support, develop and boost the creative industry of Kitchener. Our ambition within
the arts and culture space is to collaborate with industry and educational partners to become a
global leader in creative industries. The City will look to continue efforts in making creative
spaces affordable which will enable growth and will create a collision of creative entrepreneurs.
Expanding the availability of event spaces such as the space at the CCPA and offering the space
at a lower cost will make the facility more affordable and will allow for new and returning event
organizers to make use of the space. Once the CCPA reopens, we will continue to engage local
stakeholders and event organizers to ensure that our programming aligns with their needs.
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The interim operating model for the CCPA aims to increase annual bookings while reducing the
cost to users. For a comprehensive list of interim operating models considered, please see the
next section titled "Options Considered".
If the City were to invest approximately $80,000 into subsidizes rental fees, the number of
booked days at the theatre would increase from 55 to 80 and the cost to users would be
reduced by up to 50%. This grant would lower the average rental cost from $1133/event to
$567/event making the space more affordable. This grant would be funded through the rent
collected from the KWS ($38,000 annually) and from the Make It Kitchener 2.0 Reserve Fund
($42,000). KWS operates the theatre on a cost -recovery basis, therefore this grant is required
to ensure that KWS does not incur an operating loss and that the facility is available an
affordable rate to users.
Note that this grant is separate from the capital needed to upgrade and maintain the facility.
Facilities Management has prepared a budget issue paper including capital costs for 2022 and
2023 and annual facility operating costs. At the time of this memo, this budget issue paper
requested $800,000 for 2022 and $550,000 for 2023 in capital costs and $25,000 annually in
building operations. This includes a full Roof Replacement, HVAC replacements, and Fire and
Life Safety System upgrades. In 2023, a full elevator rehabilitation and upgrades to the
plumbing systems are required at an estimated cost of $550,000 (2021 values). FM will require
$25,000 in 2022 and 2023 for the following for base -building needs:
• Fire and Life Safety System inspection, maintenance, and repairs
• Elevator inspection, maintenance, and repairs
• Electrical Safety Authority inspections and repairs
• HVAC inspection, maintenance, and repairs
• General building inspections, maintenance, and repair (i.e., interior/ exterior doors)
In all projects, there comes a risk with a change in operation or modifications to how things are
run. The greatest risk that comes with this restructuring is the uncertainty around the number
of events that will be held in any given year. Although the objective is to expand the availability
of the CCPA and allow for up to 80 events per year at a lower cost, there are other factors that
may influence that total. For example, the ongoing pandemic may cause hesitation in the minds
of the event organizers and crowd levels may be lower than expected due to safety concerns
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and hesitation from the public eye. The advantage of the proposed grant program is that any
unused grant funds can either be reallocated or held for future use when demand increases.
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The chart below includes an exhaustive list of all options considered for the interim
opportunity. A more detailed outline of which option will be chosen for the long-term
opportunity will be included in the final business case.
MODEL & DISCRIPTION PROS
Option 1
Reduce KWS Facility Operating Expenses
Relieve KWS of operating 0 Builds on current
expenses where operations at CCPA rather
possible (rent, utilities) than implementing new
to increase KWS resources operational procedures
to allocate to third -party 0 Minimal city staff resources
facility use. needed
Specify these details and
expectation in the lease &
related documents.
Option 2
Provide Grants to Event and Performing Arts Organizers
Grants offered to qualifying
0 Builds on current
performing arts groups
operations at CCPA rather
to offset the cost of renting
than implementing new
the CCPA
operational procedures
• Ability to prioritize which
organizations have
preferred and discounted
access to the theatre
Option 3
City/ KWS Operating Partnership
City staff person to actively
develop and facilitate new
partnerships and
programming for CCPA and
allocate resources to
subsidize user costs.
• Bring capacity to
KWS's area of operational
weakness (business
development)
• Builds direct relationships
with performing
arts stakeholders
• Improves experience for
both users and the KWS by
facilitating the rental
process
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CONS
• City forgoes rent and assumes new
financial responsibilities for the facility
• KWS has not demonstrated the
competencies required to meet increased
use objective
• This financial support may be viewed as
support to the Symphony rather
than support to the facility
• City to develop, fund and
administer a new grant program
• Challenging to determine how best to
allocate subsidization funding
• Capacity issues with city staff fulfilling
new and existing roles
• Considerable City resources required
• City to develop, fund and
administer a new grant program
• Challenging to determine how best to
allocate subsidization funding
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In summary, the CCPA facility offers a unique opportunity for the City and a significant
responsibility. Major benefits of having ownership of the CCPA facility include,
• The location of the facility. The CCPA is in the downtown core at the centre of a very
vibrant intersection.
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• This location is ideal for a facility that offers programming for small to mid-sized events
within the arts and culture space. The community needs more accessible, affordable,
and centrally located space.
• We add a property to the City's portfolio that is highly coveted and respected in the arts
and culture sector.
The pandemic has significantly impacted the arts and culture sector. With affordable access,
the CCPA can support the recovery of the performing arts sector. The CCPA is in the heart of the
downtown core near one of the busiest intersections within the core and located near several
restaurants, eateries, and hotels.
Staff recommend pursuing option 2—provide grants to event and performing arts organizations.
This approach will build on current operations at CCPA and will offer the City the opportunity to
prioritize which organizations have preferred and discounted access to the theatre. Priority
would be given to local performers, non-profit performing arts organizations, including theatre,
dance, and music; and equity -deserving applicants. Rental costs would be offset to bring the fees
in line with comparable facilities.
By increasing affordability and use, the interim operating model for the CCPA will:
• Offer an affordable, well -situated rehearsal and performance space to support the
creation and presentation of local performances.
• Support vibrancy in the downtown core by attracting patrons for other local businesses
such as restaurants and bars.
• Reviving in-person experiences and activities
Art has always been transformative, and this is needed more now than ever. People are looking
for meaningful ways to connect and make sense of the world. Local businesses are looking for
ways to build relationships with patrons. Creators are looking for way to interact with
audiences. Affordable access to the CCPA offer an opportunity to support all these catalytic
endeavours.
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Staff Report `
Develo hent Services Deoartr7ent www.kitchener. ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: December 6, 2021
SUBMITTED BY: Emily Robson, Manager, Arts & Creative Industries, 519-741-2200
ext.
PREPARED BY: Karoline Varin, Program Administrator, Arts & Creative Industries,
519-741-2200 ext. 7912
WARD(S) INVOLVED: All Wards
DATE OF REPORT: November 25, 2021
REPORT NO.: DSD -2021-172
SUBJECT: Partnership with Textile Magazine for the 2022 Artist in Residence
Appointment
RECOMMENDATION:
That report # DSD -2021-172 regarding the Partnership with Textile Magazine for the
2022 Artist in Residence Appointment, be received for information.
REPORT HIGHLIGHTS:
• The purpose of this report is to outline the rationale for a partnership with Textile
Magazine and its role in the Artist in Residence program.
• The key finding of this report is that Textile Magazine's broad community practice, focus
on engaging local artists from equity -seeking groups, and experience in administering
an effective mentorship program, strengthens and broadens the delivery of the city's
artist in residence program.
• The financial implication is a consultation and programming fee of $5000 plus HST for
Textile Magazine.
• Community engagement included consultations with Public Art Working Group and the
Arts and Culture Advisory Committee.
• This report supports the delivery of core services.
BACKGROUND:
Established in 1995 as the first municipal program of its kind, the City of Kitchener Artist -in -
Residence program aims to engage the community in the production of contemporary art
that reflects our shared identity and supports the development of local artists. The program
delivers on the understanding that meaningful engagement in the arts, and growth of the
creative sector contributes positively to the dynamism, authenticity, attractiveness and
overall competitiveness of the City of Kitchener.
Link: Learn more about the Citv of Kitchener's Artist in Residence aroaram
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 35 of 61
The annual program continues to emphasize a high level of community engagement such
as workshops and events, exhibitions in the Rotunda Gallery and Berlin Tower ARTSPACE,
collaboration with City and community events, programs and facilities, and participation on
Public Art Working Group (PAWL), a subcommittee of the Arts and Culture Advisory
Committee (ACAC). The artist -in -residence is provided with an honorarium.
The residency has seen very talented artists deliver programming in Kitchener over the
years. Artists who successfully continued to develop their careers locally, nationally, and
internationally. Last year saw the passing of the 25th anniversary of the program. Due to the
pandemic response, honouring these artists and this anniversary has been postponed until
this year in lieu of choosing a 2021 artist in residence. To celebrate the anniversary in a
meaningful way A&CI staff has initiated a partnership with Bonn Park Podcast — a local
podcast, focused on local creative producers - to conduct a series of interviews with a
selection of past artists of the program, to highlight their residency experiences, their
successes and current artistic pursuits. In addition, staff hopes to facilitate a showcase in
2022 with all past artists participating. This anniversary has further contributed to re-
evaluating how the program is currently serving the needs of the local artists and artistic
community.
It has been noted that the majority of past artists have focused on visual art, and thus the
need for broader representation among selected artists has been identified. Since 2015,
the call for the program has been expanded to include artists working in disciplines other
than visual art (a shift developed in close consultation with PAWG and ACAC): performing
arts, dance, design, digital and media arts, folk and traditional arts, literature and spoken
word, music, multidisciplinary works, opera, theatre, musical theatre and performing arts. In
2019, in hopes of further encouraging proposals from diverse and equity seeking artists,
staff adjusted the program description and language to expand the eligibility criteria. While
these efforts have resulted in some expansion of both the disciplines and backgrounds of
the selected artists, staff and PAWG continue to prioritize the evolution of the program to
address persistent barriers for local artists from equity -seeking communities.
REPORT:
To diversify the artists who are served by the Artist in Residence program, staff and PAWG
recommend an approach that will offer a pilot mentorship opportunity and will reach out into
communities historically underrepresented in the program. To achieve this, a partnership
with Textile Magazine is proposed due to its expertise in providing local writers with a
nurturing approach to supporting artistic practice, a focus on centering the voices of artists
who have been marginalized and showcasing diverse perspectives of this region. This
opportunity will also provide beneficial and valuable resources for the selected artist to
expand their writing skills, knowledge of the publication process and offer a chance for the
opportunity to access the magazine's wide networking resources to establish community
connections. Furthermore, this pilot will offer important feedback to staff in order to consider
the benefit of future partnerships with local arts organizations, in order to enhance the
residency program experience for the artist.
Textile Magazine
Page 36 of 61
Textile Magazine has a history of working with arts practitioners, schools, non-profit
organizations, regional governments, and other groups to empower equity-
seeking/marginalized junior writers and artists across the region. It is a community -engaged
arts organization/publication and mentorship program based in Kitchener -Waterloo.
It was founded in 2018 with the goal of merging community work with writing and publication.
Founders saw that some writers face publication barriers and envisioned a magazine that
supports a literary landscape that is approachable and inclusive in addition to providing
relevant commentary on what is happening in Waterloo Region.
In 2019, Textile published In Transit, its first print issue, with a collection of over twenty
writers and artists from across the Region of Waterloo. In 2020, it organized a mentorship
program that paired curious new writers with more experienced mentors. In 2021, it
published Space(s), the second annual edition. The magazine continues to grow and
explore opportunities for publishing on a rolling basis, incorporating as a non-profit, and
reaching out to collaborate with like-minded organizations.
Its focus is on creating time and space for writing. Their mentorship approach/program seeks
to allow the voices of writers to emerge. The work of the team is driven by a desire to build
relationships, celebrate our community's strengths and assets, and call attention to
important social issues. The magazine already works through a series of workshops and
collaborations to support the publication of each issue. All these goals closely align with the
mandate of the city's Artist in Residence: community engagement through an artistic
process and supporting the development of an artistic practice
Textile Magazine x Artist in Residence
The process for submissions will remain the same. However, the public call for submissions
will specifically seek literary proposals. Textile Magazine will provide input into writing the
call. Submissions will be jointly adjudicated by PAWG and editorial staff from Textile
Magazine. The selected artist and their residency proposal will be the subject of a future
staff report to be brought to Council for consideration in the second quarter of 2022. This
staff report will outline the residency project and associated budget. Once the artist is
selected, Textile will provide mentorship with the outcome of publishing the artist's work in
an upcoming issue of the magazine.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
The fee for Textile Magazine, $5000 plus HST, will be paid from the existing Arts and
Creative Industries Operating Budget.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of
the council / committee meeting.
CONSULT — PAWG evaluates the program as a subcommittee of ACAC. A PAWG motion
carried on November 8, 2021, that city of Kitchener enter into a mentorship partnership with
Page 37 of 61
Textile Magazine for the 2022 City of Kitchener's Artist in Residence program was
considered and supported by ACAC on November 16, 2021.
COLLABORATE — An important component of the Artist -in -Residence program is the
requirement for meaningful public engagement. By entering a partnership with Textile
Magazine, the City is collaborating with the region's literary community. Furthermore, the
chosen artist will have expanded opportunities to deliver the goals of the program as they
will both work with City staff and Textile Magazine to identify interesting opportunities for
public engagement.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Readman, Justin, General Manager of Development Services
ATTACHMENTS:
Attachment A — Textile Magazine's responsibilities and anticipated timeline of delivery.
Page 38 of 61
APPENDIX A
Textile Magazine will be paid $5000.00 plus HST for their services.
Textile Magazine's Responsibilities
• co-authoring the call for submission
• joint adjudication with PAWG
• mentorship — offering insight into publication/production, developing writing craft
• working one on one with the artist as well as through workshops and in collaboration
with other writers from different populations
• expanding the artist's research methodology
• creating opportunities for community facing events and networking
• promotion of program and artist's work during residency
• publication in the next issue of Textile Magazine
• scheduling consistent updates with city staff
Anticipated Timeline of Delivery
• DEC. 6 Report to Council on Textile Magazine partnership
• Week of JAN. 3 Call for Proposals for 2022 Artist in Residence becomes
active
• MARCH 14 Deadline for application and adjudication to follow
• Beg. MAY Report to Council on artist appointment
• Mid May Start of residency
Page 39 of 61
Staff Report
Develo n7ent Services Deoartr7ent
REPORT TO: Finance & Corporate Services Committee
DATE OF MEETING: December 6, 2021
www. kitchener ca
SUBMITTED BY: Cory Bluhm, Executive Director, Economic Development
519-741-2200 ext. 7065
PREPARED BY: Vedran Askraba, Economic Development Analyst
WARD(S) INVOLVED: 1, 8, 9 and 10
DATE OF REPORT: November 17, 2021
REPORT NO.: DSD -2021-230
SUBJECT: My Main Street Accelerator Program - Agreement with The
Canadian Urban Institute and Economic Development
Council of Ontario and the City of Kitchener
RECOMMENDATION:
That the Mayor and Clerk be authorized to sign a funding agreement with the
Economic Development Council of Ontario to deliver the Local Business Accelerator
program, with said agreement to be to the satisfaction of the City Solicitor; and
further,
That the General Manager, Development Services be authorized to execute on behalf
of the City of Kitchener any amendments to the funding agreement provided such
amendments are to the satisfaction of the City Solicitor.
REPORT HIGHLIGHTS:
• The purpose of this report is to seek Council approval to enter into a funding agreement
to execute the My Main Street Ambassador program.
• The key finding of this report is that Kitchener has been successful in applying to the
My Main Street Ambassador program, a key economic recovery initiative. In order to
receive funding, Council must authorize an agreement with the funding bodies and
agree to fund the City's portion of the program.
• The financial implications are that the City will receive $230,000 in funding to execute
the program; local businesses will be eligible to receive $400,000 in grant funding, to
be distributed in $10,000 increments; and, the City will be required to contribute up to
approximately $80,000 to program costs, proposed to be funded through the Make It
Kitchener 2.0 Reserve.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 40 of 61
• Community engagement included feedback from main street businesses throughout the
pandemic; support from the Downtown and Belmont Village BIAs for the City to execute
the program.
• This report supports A Vibrant Economy.
BACKGROUND:
In the Fall of 2021, the Federal Government announced a new COVID-19 recovery
initiative to support main street businesses, called My Main Street. The Canadian Urban
Institute and Economic Development Council of Ontario have been tasked with
administering the initiative. Under the program, municipalities can apply for funding to hire
Ambassadors who will provide direct business advisory supports to local main street
business owners to aid in their recovery from the impacts of the pandemic.
For each Ambassador, the My Main Street program will cover $50,000 in salary costs plus
$7,500 in incidentals (ex: laptop, software). The City is required to cover all other costs,
estimated at up to $20,000 per Ambassador. Each Ambassador will have an ability to
support up to 10 local businesses in applying for $10,000 grants (distributed by the My
Main Street Program) which can be used for capital improvements (signage, interior, etc.)
or to advance marketing efforts.
The goals of each ambassador will include, but is not limited to,
1. Attracting new businesses to fill vacancies;
2. Supporting businesses with understanding market research;
3. Supporting businesses in launching new marketing campaigns to broaden their
customer base or re-engage previous customers;
4. Attracting new businesses to fill vacancies and diversify retail options; and,
5. Supporting existing businesses with enhancing their physical stores and
restaurants.
In 2021, City Council approved an Economic Recovery Framework and allocated up to $5
million to support recovery efforts. The framework identifies a goal to `Unleash our
Community Spirt & Spending Power' by i) supporting local businesses in re-engaging their
customers and attracting new customers; and ii) actively support impacted businesses by
providing efficient services.
REPORT:
Throughout the pandemic, local businesses have consistently identified the need for direct
business advisory supports to assist in their recovery efforts. While the Digital Main Street
Program has been successful in providing training for the adoption of digital technologies
to respond to changing consumer habits, the My Main Street program will provide wrap-
around community economic development services to new and existing businesses, such
as consumer research, market trends, etc.
The City successfully applied for funding to support 4 Ambassadors (the maximum
allowed). In total, the City would receive $230,000 in funding to hire four local
ambassadors on one-year contracts. The Ambassadors would facilitate the distribution of
Page 41 of 61
$400,000 in grant funding to local businesses. The City is required to fund the remaining
salary costs, estimated to be up to $80,000.
Each Ambassador must be assigned to a dedicated main street area. As part of the
application process, the City was required to identify which areas would be served by the
program. The following main street areas were approved:
1. Market District and King Street East (from Montgomery to Frederick)
2. Downtown Kitchener (Frederick to the railway)
3. Belmont Village (Union to Victoria)
4. Lancaster Street West (Victoria to Bridge) and Victoria Street North (Duke to
Lancaster)
The above areas capture the majority of our community's urban main street areas.
Collectively they are home to approximately 1470 businesses, of which approximately
600+ are main street businesses. Each Ambassador is expected to support at least 100
businesses through wrap around business supports and/or access to market research.
Alignment with Make It Kitchener 2.0 - Economic Recovery Framework
As a direct action of the Economic Recovery Framework, Council supported the launch of
a `Love My Business' Program to provide direct marketing supports to suburban
businesses. The My Main Street Ambassador program not only compliments the intent of
the `Love My Business' Program but will provide similar directs supports to urban
businesses. Staff would manage both programs in alignment to maximize the benefit of
both while ensuring a consistent, unified message to our business community.
The recovery framework also identified the need to support impacted businesses and to
advance up to $1 million in seed funding to provide direct supports for businesses. This
program would see $400,000 in federal funding distributed in our community.
STRATEGIC PLAN ALIGNMENT:
This report supports A Vibrant Economy (including the City's Make It Kitchener 2.0
strategy and the Economic Recovery Framework).
FINANCIAL IMPLICATIONS:
In total, the City's contribution of up to $80,000 would unlock $630,000 in funding for our
community. Staff recommend the City's contribution come from the unallocated portion of
funding within the Make It Kitchener 2.0 Economic Recovery Framework.
COMMUNITY ENGAGEMENT:
The Downtown and Belmont Village BIAs are supportive of the City leading the My Main
Street Ambassador program. The City would work closely with both BIAs on the
implementation of the program, to maximize participation rates among their members.
Page 42 of 61
Main street businesses contribute heavily to economic growth in the community. The hired
Ambassadors will work with businesses in their geographic area and will be the liaison for
their business needs. The Ambassadors will work with local businesses to develop
marketing campaigns to broaden their business reach or retain existing customers in
addition to working with businesses on optimizing the look and feel of their physical space.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Justin Readman, General Manager of Development Services
ATTACHMENTS:
None
Page 43 of 61
Staff Report
Financial Services Department
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: December 6, 2021
SUBMITTED BY: Ryan Hagey, Director of Financial Planning & Reporting
PREPARED BY: Debbie Andrade, Manager of Budgets
WARD(S) INVOLVED: All Wards
DATE OF REPORT: November 16, 2021
REPORT NO.: FIN -2021-64
SUBJECT: September 2021 Variance Report
RECOMMENDATION:
For information.
REPORT HIGHLIGHTS:
wwwkitchener. ca
• The purpose of this report is to provide an update on financial results for City operations.
• Tax supported operations are projecting a deficit of $7.4M, largely due to COVID-19.
This size of deficit is to be expected based on the ongoing nature of the pandemic.
• The City is well positioned to cover any deficits due to COVID-19 by funding provided
by the Federal and Provincial governments in 2020 and 2021.
• This report supports the delivery of core services.
BACKGROUND:
This is the second variance report to Council regarding the City's financial performance
versus the 2021 budget. The report and attached schedules include information regarding:
• Tax supported operations
• Rate supported enterprises/utilities, and
• Supplementary information related to investment income
REPORT:
Overall staff is projecting the City's tax supported results for 2021 will be a deficit of $7.4M
(3.6% of expenditures totaling $207.8M), or the equivalent of just over a 5.0% property tax
rate increase if there was no balance in the appropriate stabilization reserve. The major
contributors to the overall negative variance are the projected deficits in Sport recreation
revenues, Emergency Operations Centre, and Investment Income. As COVID-19 related
restrictions carried into 2021 causing facility closures and reduced programming these areas
continued to be greatly impacted for the first half of 2021 with considerable losses in income
for recreational programs (e.g. pools, arenas, sportsfields, and community centres). These
deficits are offset in part by Gapping savings resulting from COVID-19, as well as, regular
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 44 of 61
vacancies. More details about each of the City's tax supported divisions are provided in the
report below and in Schedule 1.
The City's enterprise (non -tax supported business lines) results to the end of September show
most of the enterprises have results that were better than budgeted. However, in the rate
supported operations, Parking was hit hardest by COVID-19 with lower than anticipated
revenues due to the ongoing restrictions causing downtown businesses to close and/or run at
reduced capacity resulting in less vehicle traffic requiring monthly or hourly parking in the
downtown core. More details about each of the City's enterprises are provided in the report below
and in Schedules 2-8.
The City has a total of $6,534,000 in Safe Restart Funding of which $4,022,000 was carried
over from 2020 and $2,512,000 was received in 2021. In addition to this funding, the City
received $4.8M in COVID-19 Recovery Funding from the Provincial government as part of
their COVID-19 relief plan announced on March 4, 2021 to support Ontario municipalities in
dealing with the ongoing impacts of the pandemic. The total Safe Restart and COVID-19
Recovery Funding of $11.3M will be sufficient to fund the City's projected deficit of $7.4M in
tax supported operating, as well as year-to-date deficits in the Parking enterprise of $1.1 M
and the Golf enterprise of $14k. Any carryover funding will help the City deal with any
continuing negative financial impacts of COVID-19 that extend into 2022.
Operating Fund — Tax Base (Schedule 1)
Staff is projecting the City's tax supported results for 2021 will be a deficit of $7.4M (3.5% of
expenditures totaling $207.8M), or the equivalent of just over a 5.0% property tax rate increase
if there was no balance in the appropriate stabilization reserve. Significant projected tax
supported variances (over $200,000) are summarized below. Additional details are provided
in Schedule 1 for projected variances that exceed $100,000.
Significant Proiected Variances (over $200, 000)
Community Services Department:
• Bylaw Enforcement is projecting a deficit of $735,000 in fine revenues, as the City
has not been issuing as many tickets due to the COVID-19 restrictions in place for
the first half of the year. Additionally, the collection of defaulted fine amounts is not
back to pre -pandemic levels as the Ministry of Transportation has not been
enforcing license plate renewals, which would ensure outstanding fines are paid.
• Sport is projecting a deficit of $6,420,000 due to reduced revenues as programs
and rentals are negatively impacted due to COVID-19 restrictions. This projection is
slightly better than first reported in the June variance report as COVID-19
restrictions have lessened in the second half of the year.
Corporate Services Department:
• Legislated Services is projecting a deficit of $215,000 due to lower than anticipated
licensing revenues as a result of COVID-19
Page 45 of 61
Development Services Department:
• Economic Development is projecting a deficit of $215,000 due to lower than
anticipated Market and special event room rental revenues as a result of COVID-
19.
• Planning is projecting a surplus of $325,000 due to higher than anticipated
revenues for site plans.
Engineering is projecting a surplus of $590,000 as a result of increased revenues
from site plans, service charges and recoverable external billings.
Infrastructure Services Department:
Facilities Management is projecting a surplus of $1,330,000 due to reduced utility
costs compared to budget, as some City facilities remain closed and/or operating at
reduced capacity due to COVID-19 restrictions.
• Parks and Cemeteries is projecting a $275,000 deficit due to a loss in revenues at
Williamsburg Crematorium, unbudgeted playground repairs and forestry cleanup
requirements.
General Expense:
• Gapping is projecting a surplus of $2,330,000 due to staff savings related to regular
vacancies and COVID-19, as a number of staff whose facilities or programs were
suspended during the pandemic were put on designated emergency leave (DEL) or
infectious disease emergency leave (IDEL) allowing them to take advantage of
various income support programs offered by the Federal government such as the
Canada Emergency Response Benefit (CERB).
Emergency Operations Centre is projecting a deficit of $2,500,000 due to the
COVID-19 pandemic. Example of costs include:
o Purchases of personal protective equipment and other health & safety
supplies
o Staff costs related to managing the City's COVID-19 response
o Additional cleaning and minor retrofits of City facilities
General Revenues:
• Supplementary Taxes/Write-Offs is projecting a deficit of $800,000 due to increased
write-offs from assessment appeals.
Investment income is projecting a deficit of $1,670,000 due to Bank of Canada
emergency rate cuts in March 2020, which is lower than the budgeted rate based
off a 3 -year average.
Penalties & Interest is projecting a $640,000 surplus due to an increase is property
taxes receivable.
Enterprises — (Schedules 2 to 8)
For the period of January to September, total enterprise results are $6.OM better than
budget, with four of the City's seven enterprises in a year-to-date surplus position. Details
of each enterprise are noted below.
Page 46 of 61
Building Enterprise (Schedule 2)
$(117) , ($1,347) $1,230
The Building Enterprise has a favourable variance of $1,230,000 as a result of higher than
budgeted permit revenues and lower than budgeted expenses due to staff vacancies.
Golf Enterprise (Schedule 3)
$49
The Golf Enterprise has a slight unfavourable variance of $14,000 primarily due to higher
than budgeted expenses.
Parking Enterprise (Schedule 4)
NetResults ($000's)
Favourable/(Unfavourablewdget Variance
•
MIN
The Parking Enterprise has an unfavourable variance of $1,088,000 as revenues are
significantly lower than budget due to reduced monthly and hourly parking demands
related to COVID-19.
Water Utility (Schedule 5)
Water
$1,432 $345 $1,088
The Water Utility has a favourable variance of $1,088,000 primarily due to higher than
budgeted volume of water sales as a result of the dry spring.
Sanitary Sewer Utility (Schedule 6)
Sanitary Sewer
$5,233
($1,076)
$4,157
Page 47 of 61
The Sanitary Sewer Utility has a favourable variance of $4,157,000. Sewer surcharge
revenues are higher than budgeted, which is consistent with increased volume sales noted
in the Water utility. In addition, sewage processing costs were less than budget due to the
dry spring. These favourable variances are slightly offset with unbudgeted standby costs
and vehicle rentals as a result of COVID-19.
Stormwater Utility (Schedule 7)
aiormwaier -1)aLL �nnz k�,+u)
The Stormwater Utility has an unfavourable variance of $40,000. Much of this is related to
increased administration expenses due to additional development review costs and
unanticipated standby costs and vehicle rentals incurred as a result of COVID-19. The
negative variance is mostly offset by reduced maintenance costs due to a delay in a
contract renewal.
Gas Utility (Schedule 8)
Gas Utility (Total) $(1,776) _ $(2,422) _ $647
Gas Delivery $(1,3544 $ 1( 327)J ($26)
Gas Supply J ($422) ($1,095) $673
The Gas Utility (Total) has a favourable variance of $647,000. The majority of this variance
is due to lower than anticipated Gas Supply expenses as lower volumes of gas were
purchased due to the warmer than normal winter. Gas Delivery has an unfavourable
variance due to lower than anticipated revenues which are partially offset by savings in
expenses due to staff vacancies and increased program revenues in tank rentals and
recoveries from warranty items.
Investment Report (Schedule 9)
All investments made were in accordance with the City's investment policy. Short-term
investment yields to date have averaged 1.05%, and are well below the average interest
rate of 1.64% for all of 2020.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
Financial implications are discussed above and detailed in the attached schedules.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of
the council / committee meeting.
Page 48 of 61
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer
ATTACHMENTS:
•
Schedule 1:
Statement of Operations
— Tax Supported Services
•
Schedule 2:
Statement of Operations
— Building
•
Schedule 3:
Statement of Operations
— Golf
•
Schedule 4:
Statement of Operations
— Parking
•
Schedule 5:
Statement of Operations
— Water
•
Schedule 6:
Statement of Operations
— Sanitary Sewer
•
Schedule 7:
Statement of Operations
— Stormwater
•
Schedule 8:
Statement of Operations
— Gas
•
Schedule 9:
Investment Report
Page 49 of 61
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