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HomeMy WebLinkAboutCouncil Agenda - 2022-05-30Council Meeting Agenda Monday, May 30, 2022, 7:00 p.m. Electronic Meeting Beginning March 1, 2022, the City of Kitchener has aligned with provincial changes to COVID-19 restrictions and City Hall is now open for in person services, but appointments are still being encouraged. The City remains committed to safety of our patrons and staff and continue to facilitate electronic meeting participation for members of the public. Those people interested in participating in this meeting can register to participate electronically by completing the online delegation registration form at www.kitchener.ca/delegation or via email at delegation (a)kitchener.ca. For those who are interested in accessing the meeting live -stream video it is available at www.kitchener.ca/watchnow. 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.* Pages 1. COMMENCEMENT The electronic meeting will begin with a Land Acknowledgement given by the Mayor and the singing of "O Canada." 2. MINUTES FOR APPROVAL Minutes to be accepted as mailed to the Mayor and Councillors (regular meeting held May 9, 2022) - Councillor K. Galloway-Sealock. 3. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF 4. COMMUNICATIONS REFERRED TO FILE 4.1. Flag Request Under Policy MUN-FAC-442 4.1.a. KW Croatian Club - May 29 - 31, 2022 5. PRESENTATIONS 5.1. Ontario Good Roads Association - Elaine Robinson Volunteer of the Year Award Scott Butler, Executive Director, Ontario Good Roads Association, to present Mara Engel with the Elaine Robinson Volunteer of the Year Award. 6. DELEGATIONS Pursuant to Council's Procedural By-law, delegations are permitted to address Council for a maximum of five (5) minutes. Delegates must register by 5:00 p.m. on May 30, 2022, in order to participate electronically. 6.1. 2022 Development Charges (DC) - By-law Passage - FIN -2022-280, listed as Item 12.2.a 6.1.a. Nataliya Kelbas, Hemson Consulting 6.2. Official Plan Amendment OPA/21/012/O/CD - Zoning By-law Amendment ZBA/21/018/O/CD - 20 Ottawa Street North - 20 Ottawa GP Inc. - DSD -2022-195, listed as item 7.3.a 6.2.a. Dave Aston, MHBC Planning and Zac Zehr, Zehr Group 7. REPORTS OF COMMITTEES 7.1. FINANCE AND CORPORATE SERVICES COMMITTEE - May 16, 2022 7.1.a. Municipal Election Compliance Audit Committee (MECAC) - COR - 2022 -208 That a joint Municipal Election Compliance Audit Committee be established for the 2022-2026 term of Council in accordance with the Terms of Reference in Attachment 'A'; and, That the City Clerk be delegated authority to review and revise the Terms of Reference throughout the term of the Committee in accordance and in consultation with other participating municipalities; and, That the City Clerk be delegated authority to select and appoint members of the Municipal Election Compliance Audit Committee, in consultation with the other participating municipalities; and further, That remuneration of $200 per diem plus the applicable mileage rate be approved for members of the Municipal Election Compliance Audit Committee, as outlined in Corporate Services Department report COR -2022-208. 7.1.b. Delegated Authority - "Restricted Acts" Provisions - COR -2022-209 Page 2 of 44 That in the event the provisions of Section 275 of the Municipal Act, as amended, come into force and effect between Nomination Day and the end of the outgoing council's term, the Chief Administrative Officer is granted authority to approve expenditures or other liabilities which are currently unbudgeted and with a value in excess of $50,000, as outlined in Corporate Services Department report COR -2022-209; and, That the Mayor and Clerk be authorized to execute agreements that have been approved by the Chief Administrative Officer during this period, subject to the satisfaction of the City Solicitor; and further, That any approvals granted by the Chief Administrative Officer during this period be reported to council for information at the earliest opportunity following the Inaugural Meeting of the new City Council. 7.1.c. Business Licensing 3 -year Review and Housekeeping Amendments - COR -2022-203 That the Business Licensing By-law 2017-139 of the City of Kitchener Municipal Code be amended to include the proposed changes as outlined in Corporate Services Department report COR -2022-203 and Attachment'C'; and, That the fees set out in Attachment 'A' effective June 1, 2022, be approved; and further, That the 2022 User Fee Schedule be amended to include the fees set out in Attachment'A'. 7.1.d. Capital Financing and Debt Policy - FIN -2022-207 That financial policy FIN-PLA-xxx 'Capital Financing and Debt Policy' be approved, as outlined in Attachment A to Financial Services Department report FIN -2022-207. 7.2. COMMUNITY AND INFRASTRUCTURE SERVICES COMMITTEE - May 16, 2022 7.2.a. No Right Turn on Red - Queen's Boulevard and Patricia Avenue - DSD -2022-142 That the Traffic and Parking Bylaw be amended to prohibit right turns on a red signal at the Intersection Pedestrian Signal located at Queen's Boulevard and Patricia Avenue, as outlined in Development Services Department report DSD -2022-142. 7.2.b. Noise Exemption - Downtown Special Events - CSD -2022-177 That an exemption to Chapter 450 (Noise) of the City of Kitchener Page 3 of 44 Municipal Code be granted for the Downtown Special Events, as contained on Schedule 'A' to Community Services Department report CSD -2022-177. 7.2.c. Noise Exemption - Bingemans Summer Events/Oktoberfest - CSD - 2022 -178 That an exemption to Chapter 450 (Noise) of the City of Kitchener Municipal Code be granted to Bingemans for several events being held at 425 Bingeman Centre Drive, as outlined in Community Services Department report CSD -2022-178; and further, That the exemption is subject to the following conditions, which, if not complied with, will render the noise exemption null and void: a. There shall be no offensive language, in the opinion of City staff, generated from the music events, audible in any adjacent residential neighbourhood; b. The event organizers will ensure that there is an on-site contact person accessible to correspond with City staff at all times during the event(s); c. The event organizers agree to respond accordingly to requests from City staff, during the event(s), in order to address community concerns that may arise with regard to the impact of noise heard within adjacent residential areas. 7.2.d. Ontario's Energy Data Regulation - Green Button - INS -2022-202 That sole source of the Green Button certified e -billing solution from Smart Energy Water (SEW) be approved in order to comply with O.Reg 633/21 implementation deadline of November 1, 2023, as outlined in Infrastructure Services Department report INS -2022-202; and, That the implementation costs of the Green Button certified e -billing solution of $530,000 be funded from the gas utility and the SAP capital account as outlined in staff report INS -2022-202; and further, That future operating impacts be considered through the 2023 and 2024 budget processes. 7.2.e. Advanced Metering Infrastructure (AMI) - INS -2022-161 That due to the financial costs of Advanced Metering Infrastructure (AMI), staff be directed to evaluate the implementation of AMI for the water utility only as part of the rate options for the 2024-2028 Water Infrastructure Program (WIP) Review based on the analysis as outlined in Infrastructure Services Department report INS -2022-161. Page 4 of 44 7.2.f. Indoor Recreation Complex at RBJ Schlegel Park Business Case - INS -2022-218 That the Indoor Recreation Complex at Schlegel Park Business Case recommendation to design and construct the Aquatic and Indoor Turf facilities at RBJ Schlegel Park in tandem by 2025, as outlined in Infrastructure Services Department report INS -2022-218, be endorsed; and further, That staff be directed to begin concept and detail design development, to commence following approval of this report and expected to continue into Q4 - 2023. 7.3. PLANNING AND STRATEGIC INITIATIVES COMMITTEE - May 16, 2022 7.3.a. Official Plan Amendment OPA/21/012/0/CD - Zoning By-law Amendment ZBA/21/018/0/CD - 20 Ottawa Street North - 20 Ottawa GP Inc. - DSD -2022-195 That Official Plan Amendment Application OPA/21/012/0/CD for 20 Ottawa GP Inc. requesting a land use designation change from `Neighbourhood Mixed Use Centre with Special Policy Area 3' to `Mixed Use Corridor' to permit a mixed use development on the lands specified and illustrated on Schedule 'A', be adopted, in the form shown in the Official Plan Amendment attached to Development Services Department report DSD -2022-195 as Appendix `A', and accordingly forwarded to the Region of Waterloo for approval; and, That Zoning By-law Amendment Application ZBA21/018/0/CD for 20 Ottawa GP Inc. be approved in the form shown in the `Proposed By- law', and `Map No. 1', attached to Development Services Department report DSD -2022-195 as Appendix `A'; and further, That in accordance with Planning Act Section 45 (1.3 & 1.4), applications for minor variances shall be permitted for lands subject to Zoning By-law Amendment Application ZBA21/018/0/CD. 8. UNFINISHED BUSINESS 9. NEW BUSINESS 9.1. REGIONAL COUNCIL UPDATE — MAYOR B. VRBANOVIC 10. QUESTIONS AND ANSWERS 11. BY-LAWS 11.1. 1ST AND 2ND READING 11.1.a. Being a by-law to provide for the establishing and laying out of part of Page 5 of 44 12. Joseph Street as a public highway in the City of Kitchener. 11.1.b. To further amend By-law No. 2008-117, being a by-law to authorize certain on -street and off-street parking of vehicles for use by persons with a disability, and the issuing of permits in respect thereof. 11.1.c. To further amend By-law No. 88-171, being a by-law to designate private roadways as fire routes and to prohibit parking thereon. 11.1.d. To further amend By-law No. 2010-190, being a by-law to prohibit unauthorized parking of motor vehicles on private property. 11.1.e. To further amend By-law No. 2019-113, being a by-law to regulate traffic and parking on highways under the jurisdiction of the Corporation of the City of Kitchener. 11.1.f. To confirm all actions and proceedings of the Council. COMMITTEE OF THE WHOLE 12.1. TENDERS 12.1.a. Q22-014 Brubacher Green Park and Westwood Park Improvements , FIN -2022-276 That Quotation Q22-014 Brubacher Green Park and Westwood Park Improvements, be awarded to Onyx General Contracting. Oakville, Ontario, at their quoted price of $627,295., plus provisional items of $92,862. plus H.S.T. of $93,620.42, for a total of $813,777.42, provided a satisfactory contract is executed. 12.1.b. Non -Standard Procurement - NSP22-046 Two (2) Dustless Regenerative Air Sweepers, FIN -2022-279 That The Equipment Specialist Inc., Hamilton, Ontario, be the sole source provider for Two (2) Dustless Regenerative Air Sweepers, at their quoted price of $853,500., plus H.S.T of $110,955., for a total of $964,455. 12.2. ADMINISTRATIVE REPORTS 12.2.a. 2022 Development Charges (DC) - Bylaw Passage, FIN -2022-280 That the Development Charge Background Study as amended in Attachment 1 and the capital forecasts prepared in conjunction with the Study in accordance with Section 10 of the Development Charges Act, 1997 be adopted; and, That future excess capacity identified in the Development Charge Background Study be paid for by development charges or other similar charges; and, 12 16 Page 6 of 44 That where grant funding is provided for a growth related project, to the extent possible, it be used to fund the non -growth portion of the project; and further, That the Development Charges Bylaw in the form attached to Report FIN -2022-280 as 'Attachment 2' be approved. 12.2. b. 2022 Resolution of Support - Association of Municipalities of Ontario 43 (AMO) Board Nomination - D. Chapman, CAO -2022-256 That the Council of the City of Kitchener express its support for the nomination of Dan Chapman, Chief Administrative Officer, for the position of Large Urban Caucus municipal employee representative on the 2022-2024 Board of Directors of the Association of Municipalities of Ontario (AMO) along with reasonable expenses associated with Board directorship. 13. REPORT OF THE COMMITTEE OF THE WHOLE 14. BY-LAWS 14.1. 3RD READING 14.1.a. Being a by-law to provide for the establishing and laying out of part of Joseph Street as a public highway in the City of Kitchener. 14.1.b. To further amend By-law No. 2008-117, being a by-law to authorize certain on -street and off-street parking of vehicles for use by persons with a disability, and the issuing of permits in respect thereof. 14.1.c. To further amend By-law No. 88-171, being a by-law to designate private roadways as fire routes and to prohibit parking thereon. 14.1.d. To further amend By-law No. 2010-190, being a by-law to prohibit unauthorized parking of motor vehicles on private property. 14.1.e. To further amend By-law No. 2019-113, being a by-law to regulate traffic and parking on highways under the jurisdiction of the Corporation of the City of Kitchener. 14.1.f. To confirm all actions and proceedings of the Council. 15. ADJOURNMENT Page 7 of 44 Staff Report J IKgc.;i' r� R Financial Services Department wwwlitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: May 30, 2022 SUBMITTED BY: Ryan Scott, Manager of Procurement, 519-741-2200 ext. 7214 PREPARED BY: Ian Fischer, Procurement Specialist, 519-741-2200 ext. 7416 WARD(S) INVOLVED: 8 and 10 DATE OF REPORT: May 19, 2022 REPORT NO.: FIN -2022-276 SUBJECT: Q22-014 Brubacher Green Park and Westwood Park Improvements RECOMMENDATION: That Quotation Q22-014 Brubacher Green Park and Westwood Park Improvements, be awarded to Onyx General Contracting. Oakville, Ontario, at their quoted price of $627,295., plus provisional items of $92,862. plus H.S.T. of $93,620.42, for a total of $813,777.42, provided a satisfactory contract is executed. REPORT HIGHLIGHTS: • The purpose of this report is to obtain approval to proceed with an award as per Purchasing By-law 2017-106; • The reason this report is coming forward is that the value of the bid being recommended for award is in excess of both, the Council approved budget, and temporary measures approved by Council through FIN -2022-149 Temporary Measures — Supply Chain and Inflationary Trends; • There were three (3) solicitations received for this procurement; • This report supports the delivery of core services. BACKGROUND: As part of the capital improvements program, Brubacher Green, located in ward 10, and Westwood Park located in ward 8 are two neighborhood parks identified for upgrades. The purpose of the upgrades is to meet current accessibility standards, replace aging park infrastructure, and address operational constraints while creating park spaces that reflect the current needs of their communities (community engagement conducted in 2021). These projects are deemed to be a priority; Brubacher Park has an older play area which does not meet current Canadian Safety Association (CSA) standards due to the lack of a suitable resilient play surface material. In addition, the site lacks accessibility due to grades and lack of site infrastructure. As an extremely well used park space, embedded within a community that is deficient in park space, staff believe it is important to complete these enhancements. Westwood Park faces acute community pressures; the neighbouring school site which had shared greenspace with the park is subject to an ongoing redevelopment, which has reduced the community perception of park size and space. In *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 8 of 44 addition, the redevelopment of the school has increased the local population and eliminated some amenities that were present on the school site and not in the park. The scope of the work within this contract includes: Brubacher Green Replacement of the existing play equipment to bring the design of the play area in line with current safety and accessibility standards, and operational needs New sand play area with dedicated small toy storage in support of community -led "bring -your - own play" activities Formalized community gathering with site furnishings including seating and in -ground waste receptacle. Westwood Park • Consolidated play space with new play amenities to bring the design of the play area in line with current accessibility standards, and operational needs • Formalized and accessible paved circulation through the park • Upgraded recreational facilities including a half -court basketball area and area for cricket • New community gathering and seating area with shade • Naturalization and new tree planting REPORT: Quotations were advertised publicly on the City of Kitchener website. Documents were downloaded by fourteen (14) interested parties and by the closing date of Monday May 16, 2022, three (3) quotations had been received. The following quotations were received: Onyx General Contracting GMR Landscaping Inc. Buildscapes Construction Ltd Bid Price Oakville, Ontario $735,723.23 Toronto, Ontario $794,222.56 Toronto, Ontario $961,382.08 Upon review, an error in quantity was noticed on two line items, the bid prices have been adjusted: Onyx General Contracting GMR Landscaping Inc. Buildscapes Construction Ltd Adjusted Bid Price Oakville, Ontario $708,843.36 Toronto, Ontario $768,995.31 Toronto, Ontario $932,023.26 Adjusted Bid Price With Provisionals $813,777.42 $864,611.39 $1,087,313.67 Brubacher Green and Westwood Park budgets were established as part of the 2019 capital budget cycle. Between 2019 and 2022 staff have been seeing significant upward inflation (well above the budget applied -2%), on many elements within parks and open spaces, in particularly in regards to play equipment. Additional to this, as identified in FIN -2022-149, staff are seeing significant budgetary pressures as a result of global supply chain pressures and high demand for contractors to perform work, with labour market challenges. In addition to inflationary pressures on elements within parks, staff believe Page 9 of 44 that the significant overage reflects market pressure on contractors to perform the works. Lastly, there have been additional costs incurred associated with site investigations and engagement that were not foreseen. Staff do not believe that deferring work and reducing the scope of work to meet a lower budget will result in a satisfactory community experience, nor will deferring work and re -tendering result in lower pricing. Additional funds will be required to award this scope of work. Surplus funds of approximately $200,000 from a recent trail project (Rolling Meadows) will be used to fund the majority of the forecasted deficit. To fund the remainder, staff recommend cancelling a lower priority project (Woodside building) which will then be prioritized against other capital needs in the future. The quotations were reviewed by R. Roy, Landscape Architect, Parks and Cemeteries, M. Barker and M. Fantini, Shift Landscape Architecture Co. Inc., the City's Consultant on the project, who concur with the above recommendation. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: The net cost for this quotation (A), is fair and reasonable for a project of this scope however, the upset limit is over the funding available (B) for this project. Funding for this project is included within the approved capital budget. The estimated deficit (E) will be funded using surpluses from project T22-036 Rolling Meadows & Timberlane Park Trail Upgrades as well as cancelling the Woodside Park building project. Q22-014 Brubacher Green Park & Westwood Park Improvements Estimated Cost Quotation Q22-014 costs, including HST less: HST rebate Net Cost Being Awarded Costs incurred to date - Shift Landscape Architecture, Geotechnical Projected Costs: Consulting fees, staff times, signage Contingency regarding Brubacher foundation Total Estimated Cost Budget Budget - Westwood Budget - Brubacher Parks Improvement Fund Total Budget Total Estimated Surplus/(Deficit) 813,777.42 (80,945.61) 732,831.81 A 90,262.59 30,000.00 50,000.00 903,094.40 C 400,000.00 200,000.00 60.000.00 ••1 111 11 (243,094.40) E Page 10 of 44 COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department Page 11 of 44 Staff Report � ) Financial Services Department www. kitchen er.ca REPORT TO: Committee of the Whole DATE OF MEETING: May 30, 2022 SUBMITTED BY: Ryan Scott, Manager, Procurement, 519-741-2200 ext. 7214 PREPARED BY: Ian Fischer, Procurement Specialist, 519-741-2200 ext. 7416 WARD(S) INVOLVED: N/A DATE OF REPORT: May 20, 2022 REPORT NO.: FIN -2022-279 SUBJECT: Non -Standard Procurement - NSP22-046 Two (2) Dustless Regenerative Air Sweepers RECOMMENDATION: That The Equipment Specialist Inc., Hamilton, Ontario, be the sole source provider for Two (2) Dustless Regenerative Air Sweepers, at their quoted price of $853,500., plus H.S.T of $110,955., for a total of $964,455. REPORT HIGHLIGHTS: The purpose of this report is to obtain approval to proceed with an award as per Purchasing By-law 2017-106; This report supports the delivery of core services and supports Environmental Leadership. BACKGROUND: The City currently operates five (5) street sweepers to support various sweeping activities on 1,840 curb lane km of roads city-wide (City and Regional roads). Sweeping activities include ongoing road sweeping, cycling lane sweeping, leaf collection, special event pre/post clean up and hazardous waste cleanup from accidents and spills, and fine dust. This includes road sediments and dust that is created from brake pad linings, tire compounds, asphaltic materials as well as fine particulate from engine exhaust. Units 14627 and 14628 in INS — Roads and Traffic have been approved for replacement through the Annual Equipment Review. These units will be used for ongoing street and laneway sweeping activities. The current units are both in their seventh (7t") year of operation with an anticipated life cycle of six (6) years. The current units are not able to capture all particulates during sweeping operation; especially extremely fine particles. Replacement of the two units allows an opportunity to improve environmental performance of the City's sweeping activities. A high efficiency street sweeper will allow for the reduction of pollutants on the roads within our city, reduce the *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 12 of 44 generation of fine particulate dust during sweeping activities and minimize sediments entering into the storm sewer system. The use of the sweeper proposed for purchase (TYMCO Model DST -6) will support the city's overall strategic goal of environmental leadership. TYMCO Model DST -6 Dustless Regenerative Air Sweepers have been successfully sourced and deployed in various municipalities including Hamilton, Milton, Oakville, Markham and Waterloo. REPORT: A Standard Procurement (competitive public process) cannot not be conducted as the design of Dustless Regenerative Air Sweeper is proprietary and can only be supplied by one particular supplier and no alternative or substitute exists. In addition, there is only one authorized distributor of this equipment for the Ontario market. This is a specialized piece of equipment that has production availability and units could be delivered in Q4 of 2022. The City will heed the following benefits at sourcing these units: • The TYMCO Model DST -6 is the only regenerative air sweeper currently on the market filtering exhaust air at 0.3 Microns. The proposed unit has been independently certified as the optimum product for maximum pickup and containment of particulate matter to a 2.5 micron level; • Certification was completed by Environmental Technology Verification Canada, for air quality and street sweeper performance; • The TYMCO Model DST -6 sweeper can sweep without using water which reduces contamination and particulates/sediments from entering the storm water system; • Waterless sweeping ability increases the City's emergency response in weather conditions below zero degrees Celsius; • Increased efficiency due to sweeping of all materials in one pass, therefore reducing the number of passes typically required by our existing mechanical sweepers; • Added suction hose which can be utilized for shoulder and boulevard leaf clean up in compact locations where we currently use staff labour; • Reduction in maintenance costs as the TYMCO Model DST -6 has fewer wear parts compared to our current mechanical sweepers which contain high -wear maintenance prone elevator systems; • Broom replacement costs should also decrease as most of the sweeping uses an air blast to lift material rather than mechanical abrasion; and • Reduction in daily maintenance costs and time as there are no daily grease points on this type of sweeper. As per clause 170.8.2 of the Purchasing By-law 2017-106, it states, "The use of a Non - Standard Procurement process is only permitted under the following circumstances: c. where there is an absence of competition for technical reasons and the Goods, Services, Construction, or Consulting Services can only be supplied by one particular Supplier and no alternative or substitute exists; Page 13 of 44 As per clause 170.8.3 of the Purchasing By-law 2017-106, it states, "All non-standard Procurement processes must be approved and conducted in accordance with this By-law including the table set out in this section and all applicable procedures." Requirement Procurement Value Excluding Taxes Procurement Process Approval Authority Goods, Up to $99,999 Non -Competitive or Director of Services, Construction, Limited Competition Supply Services Consulting Services Goods, Greater than Non -Competitive or Council Services, Construction, $100,000 Limited Competition Consulting Services The quotation was reviewed by M. Lynch, Manager, Fleet Planning, S. Berry, Manager, Maintenance Operations — Roads and Traffic, D. Miller, Director, Fleet, and R. Lusk, Director, Operations — Roads and Traffic, who concur with the above recommendation. STRATEGIC PLAN ALIGNMENT: This report supports core service delivery and Environmental Leadership. FINANCIAL IMPLICATIONS: The net cost for this purchase (A), is fair and reasonable for a purchase of this scope, but the upset limit is beyond the allowance provided within the budget (B). Funding for this equipment is included within the approved capital budget. The estimated deficit (D) will be funded from previous surpluses that have been closed out to the Equipment Reserve Fund. NSP22-046 Two (2) Dustless Regenerative Air Sweepers Estimated Cost for this Purchase Non Standard Procurement NSP22-046 costs including optional equipment and HST less: HST rebate on tender Net Cost Being Awarded Projected Costs for Additional Outfitting Total Estimated Cost for this purchase Budget for this Purchase Replacement units 14627 & 14628 in Roads & Traffic Estimated Surplus/(Deficit) for this Purchase (B - C) to be funded from Equipment Reserve Fund $ 964,455.00 $ (95,933.40 $ 868,521.60 A $ 868,521.60 C $ 800,000.00 B $ (68,521.60) D Page 14 of 44 COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter. APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department Page 15 of 44 Staff Report J IKgc.;i' r� R Financial Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: May 30, 2022 SUBMITTED BY: Ryan Hagey, Director of Financial Planning & Reporting, 519-741-2200 ext. 7353 PREPARED BY: Ryan Hagey, Director of Financial Planning & Reporting, 519-741-2200 ext. 7353 WARD(S) INVOLVED: All Wards DATE OF REPORT: April 28, 2022 REPORT NO.: FIN -2022-280 SUBJECT: 2022 Development Charges (DC) - Bylaw Passage RECOMMENDATION: That the Development Charge Background Study as amended in Attachment 1 and the capital forecasts prepared in conjunction with the Study in accordance with Section 10 of the Development Charges Act, 1997 be adopted; and That future excess capacity identified in the Development Charge Background Study be paid for by development charges or other similar charges; and That where grant funding is provided for a growth related project, to the extent possible, it be used to fund the non -growth portion of the project; and That the Development Charges Bylaw in the form attached to Report FIN -2022-280 as Attachment 2 be approved. REPORT HIGHLIGHTS: • The purpose of this report is to pass a development charges bylaw based on the updated information in the background study. • The key finding of this report is DC rates are increasing by a relatively modest amount. • The financial implications are development charges are used to fund growth related infrastructure and must conform to Provincial legislation. • Community engagement included posting all of the DC information on the City's website, an information session with the development industry, and the required statutory public meeting. • This report supports the delivery of core services. BACKGROUND: The Development Charges Act and its associated regulation allow municipalities to impose development charges to pay for growth -related capital costs to service new development. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 16 of 44 In order to do so, under the terms of the Act, municipalities must prepare a development charge background study and pass a bylaw to determine the development charges, taking the following into account: • A forecast of the amount, type and location of development anticipated in the municipality for which development charges can be imposed. • The average capital service levels provided by the municipality in the 10 -year period immediately preceding the preparation of the background study. • A review of future capital projects, including analysis of gross expenditures, funding sources and net expenditures incurred or to be incurred by the municipality, to provide for the expected development. • An examination of the long-term capital and operating costs for capital infrastructure for each service to which the development charges relate. Development charge (DC) bylaws have a maximum term of five years. Kitchener's current DC bylaw was passed in 2019 and expires in 2024, but is being updated early due to Provincial legislative changes which have been covered in previous budget presentations and staff reports. In order to update the bylaw, a background study must be published, and at least one public meeting must be held. Council has already provided direction to publish a background study, which was posted to the City's website on March 31, 2022. In addition, Council has also held a mandatory, statutory public meeting on the April 25, 2022. The final step is to officially pass the DC bylaw based on the updated information in the background study. The purpose of this report is to: • Provide the updated calculated DC rates • Discuss affordability REPORT: Calculated DC Rates The calculated DC rates have been updated based on feedback received from industry stakeholders after the April 25th public meeting as summarized in Attachment 1 to this report. The specific adjustments deal with increases to cost estimates for two Engineering projects included in the DC background study. The effect of the changes is an increase to the suburban rates, where the projects are located (the central neighbourhood rates remain unchanged). Overall, the rate increases remain relatively modest, will come into effect on July 1, 2022, and are summarized in the table below. Proposed Development Charqe Rate Chanqes Table 9 & 10 in DC Stu Residential (Single) Suburban $20,945 $24,733 18% Residential (Single) Central Neighbourhood $14,033 $16,612 18% Non -Residential Suburban $64.45/m2 $75.75/m2 18% Non -Residential Central Neiqhbourhood $23.24/m2 $25.08/m2 8% Page 17 of 44 Discuss Affordability The staff report (FIN -2022-189 2022 Development Charges (DC) Study & Bylaw— Public Input) from the April 25, 2022 meeting included a comparison of DC rates from a number of different Ontario municipalities. The comparison showed that Kitchener's proposed DC rates were in the lower half of the comparator group, and were in line with local municipalities like Waterloo, Cambridge, and Guelph. This comparison is shown in the graph below with the Kitchener rates being highlighted by an orange rectangle. Comparison of Ontario Large City DCs (Single Detached Units) Markham � �m VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVIVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVIIVVVVVVVVVVVVVVVVVVVVVVVV Vaughan Brampton m maIIIIIIIIIIIIIIIIIIII mm iamllllllllllllllllllll m Mississauga Oakville uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuumuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuummuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu�VVVVVVVVVVVVVVVVVVVVVVVVVVumuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuVl Toronto mmIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIVIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIVIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Richmond Hill IVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIIIIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIIIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVmmmmmmlllmmmmmmmmmmmmmmmmmV Barrie mi Milton Whitby illi iii iii iii iii iii iiimIII iii iii iii iii a mm a miiiiiillllllllllllllllllllllllllllllllllllllllliiiiii a mmlllllllllllllllllllllllllllllllllllll B rr rl i n g,t o r7 IIII UWmmmlVlVIVIVIVIVIVIm Oshawa mmmmmmmmmmmmmmmml Carnbridge mmmlmmlmmlmmlmmlmmlmmlmmlmVVmlm Vmlm Vmlm Vmlm Vmlm .... K i tc � e ne r f S u �r u r bra i t 'R i erCscs e e�� Vuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuummw�mmn Waterloo 00000u00000u0000000000u00000u000000000u0000u0000000000uou0000umm IIIIIuuuuuuuuuuuuuuuuuuuu K i tc Fr e r r e r, C e �,t r a( P � u h n a ecl� IVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIIIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIVmmmmmuuwmmlmlmlmlV Guelph mlullllllllllllllllllllllllllllllllllllllllllllllllllllllllllllmllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllliiiiii w mull Branford (City Wide) Ottawa (Outside Greenbelt) London (inside Urban Growth Areal mimmommommmmo St. Ca th a r i ne s (l.l r b a n) mmmmmmoommm Windsor (City -Wide) 0000m0000000m000m000m000moommmmmmmuuuuuuuuuuuuuuuuu Kingston uuu miiiiilllllllllllllllllllllllllllllllllllllllllllllVllllllllllllllllllll Chatharn-Keret min $0 0,20,000 1,40,000 $60,000 $80,000 $,100,000 1,120,000 $140.000 `,160,000 1,180,000 $200,000 mom VLpper-Tier & EDCs uum Local STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: Development charges are used to fund growth related capital infrastructure, with the specific projects and timing detailed in the 2022 DC background study. The proposed rates are summarized earlier in this report and will come into effect July 1, 2022. Once approved by Council, the 2023-2032 Capital Budget and Forecast will be updated to reflect the approved capital program based on the updated DC rates. COMMUNITY ENGAGEMENT: Page 18 of 44 INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. CONSULT — A consultation meeting was held virtually with the development industry on March 24, 2022. The meeting included a presentation of the Draft 2022 DC Study content (which had been emailed to the attendees on March 11, 2022) and an opportunity for questions from industry stakeholders that led to changes being made before the DC Study was posted publicly. During the April 25, 2022 Committee meeting, information was requested about who was consulted from the development community. This consultation included: • Being provided draft DC information in advance of it being published on the City's website • Being invited to the industry stakeholder meeting on March 24 where information was presented by the City's DC consultant and an opportunity for questions and answers • Being reminded of the legislated public meeting on April 25 and their opportunity to speak directly to Council regarding the DC bylaw update. As Council is aware, the mandatory public meeting took place on April 25, 2022 with no delegates, industry stakeholders or otherwise, making a presentation to Council. One written submission was received that day and has led directly to the changes noted earlier in this report and in Attachment 1. The table below lists the industry stakeholders invited to the consultation process. PREVIOUS REPORTS/AUTHORITIES: • FIN -2022-189 2022 Development Charges (DC) Study & Bylaw — Public Input • FIN -2022-066 2022 Development Charges Study Initiation • FIN -2022-158 Affordable Housing Development Charge (DC) Waiver Policy • FIN -2022-179 Affordable Housing Development Charge Waiver Policy — REVISED • Development Charges Act APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services ATTACHMENTS: Page 19 of 44 Attachment 1 — Kitchener 2022 DC Background Study Summary of Changes Since Publishing on March 31, 2022 As well, the draft DC Study & Bylaw are both posted on the City website under the Development Charges page. Page 20 of 44 Attachment 1 - Kitchener 2022 DC Background Study Summary of Changes Since Publishing on March 31, 2022 Engineering Services (Sanitary Servicing & Roads and Related) • Changes made as requested by the development industry and/or review by staff: • Dodge Drive Trunk Sanitary Sewer & Road Restoration: The project cost has been increased from $6,254,000 to $9,500,000 based on updated design information. • Middle Strasburg Trunk Sanitary Sewer: The project cost has been increased from $14,200,000 to $21,500,000 based on updated design information. • Blair Creek Drive - Road & Watermain Extension: Costs from the 2019 DC Study have been increased by 10% to account for recent cost escalations. • Upper Hidden Valley SPS & Forcemain: Changes have been made due to coordinating timelines with the Region of Waterloo for their River Road Extension project. Part B Design and Tender cost remains at $363,000 (indexed to $499,125 in the 2022 DC Study) but includes a timing change to 2023. Part C Construction cost changes to $18,000,000 and a timing change to 2024. The Total Project Cost changes to $18,817,000 (from $10,424,000). Page 21 of 44 BY-LAW NUMBER 2022 -XX OF THE CORPORATION OF THE CITY OF KITCHENER Being a by-law to establish development charges for the City of Kitchener and to repeal By-law 2019-086 WHEREAS subsection 2(1) of the Development Charges Act, 1997, c. 27 (the Act") authorizes the council of a municipality to pass By-laws for the imposition of development charges against land to pay for increased capital costs required because of increased needs for services arising from development of the area to which the By-law applies; AND WHEREAS the Council of The Corporation of the City of Kitchener ("City of Kitchener") has given Notice in accordance with Section 12 of the Act of its intention to pass a by-law under Section 2 of the said Act; AND WHEREAS the Council of the City of Kitchener has heard all persons who applied to be heard no matter whether in objection to, or in support of, the development charge proposal at a public meeting held on April 25, 2022; AND WHEREAS the Council of the City of Kitchener had before it a report entitled Development Charges Background Study dated March 31, 2022 (the "Study") prepared by Hemson Consulting Ltd., wherein it is indicated that the development of any land within the City of Kitchener will increase the need for services as defined herein; AND WHEREAS copies of the background study were made available on March 31, 2022 and copies of the proposed development charges by-law were made available on April 11, 2022 to the public in accordance with Section 12 of the Act; AND WHEREAS the Council of the City of Kitchener on May 30, 2022 approved the applicable Development Charges Background Study, dated March 31, 2022, in which certain recommendations were made relating to the establishment of a development charge policy for the City of Kitchener pursuant to the Development Charges Act, 1997; AND WHEREAS by resolution adopted by Council of The Corporation of the City of Kitchener on May 30, 2022, Council determined that the increase in the need for services attributable to the anticipated development as contemplated in the Development Charges Background Study dated March 31, 2022, as amended including any capital costs, will be met by updating the capital budget and forecast for the City, where appropriate. Page 22 of 44 AND WHEREAS by Resolution adopted by Council on May 30, 2022, Council approved the Study and determined that no further public meetings were required under Section 12 of the Act; AND WHEREAS by resolution adopted by Council of The Corporation of the City of Kitchener on May 30, 2022, Council determined that the future excess capacity identified in the Development Charges Background Study dated March 31,2022 shall be paid for by the development charges contemplated in the said Development Charges Background Study, or other similar charges; AND WHEREAS the Council has given consideration of the use of more than one development charge by-law to reflect different needs for services in different areas, also known as area rating or area specific DCs, and has determined that for the services, and associated infrastructure proposed to be funded by DCs under this by-law, that it is fair and reasonable that the charges be calculated on a municipal -wide and area -specific basis; AND WHEREAS the Development Charges Background Study dated March 31,2022 includes an Asset Management Plan that deals with all assets whose capital costs are intended to be funded under the development charge by-law and that such assets are considered to be financially sustainable over their full life -cycle. AND WHEREAS the Council of the City of Kitchener will give consideration to incorporate the asset management plan outlined in the Development Charges Background Study within the City of Kitchener's ongoing practices and corporate asset management strategy. NOW THEREFORE the Council of The Corporation of the City of Kitchener enacts as follows: SECTION 1 INTERPRETATION Definitions 1.1 In this by-law: "accessory use" means a use, including a building, which is commonly incidental, subordinate and exclusively devoted to the main use or main building situate on the same lot; "agricultural use" means the use of land and buildings for apiaries, fish farming, animal husbandry or the cultivation of trees, shrubs, flowers, grains, sod, fruits, vegetables and other crops or ornamental plants ("agricultural products") but shall not include any building or structure where agricultural products are displayed for Page 23 of 44 sale in more than twenty-five per cent of the gross floor area of such building or structure; "capital cost" has the same meaning it has pursuant to the Act, "development" means any activity or proposed activity in respect of land that requires one or more of the actions referred to in Section 2.3, and includes redevelopment; "development charge" means a development charge imposed pursuant to this By-law. "duplex" means a dwelling or residential building divided predominantly horizontally into two dwelling units; "dwelling unit" means a room or suite of rooms which: (a) is located in a building (including a non-residential building), (b) is occupied or designed to be occupied by a household as a single, independent and separate housekeeping establishment, (c) contains both a kitchen and bathroom for the exclusive common use of the occupants thereof, and (d) has a private entrance leading directly from outside the building or from a common hallway or stairway inside the building; "excess capacity" means uncommitted excess capacity but excludes uncommitted excess capacity if, either before or at the time the excess capacity was created, the Council of the City expressed a clear intention that the excess capacity would be paid for by development charges or other similar charges; "existing industrial building" means an industrial building or buildings that existed on July 1, 2022 or the first building or buildings constructed and occupied on a vacant site pursuant to a site plan approval under section 41 of the Planning Act subsequent to July 1, 2022 for which full development charges were paid. "floor area" means the area of floors of a building or structure measured between the outside surfaces of exterior walls or between the outside surfaces of exterior walls and the centre line of party walls, and in the case of a dwelling unit includes only those floor areas above grade. This shall not include any area which is specifically designed for parking and is not being used for the repair or sale of vehicles; "grade" means the average level of finished ground adjoining a dwelling unit at all exterior walls; "gross floor area" means the total floor area of a building or structure; Page 24 of 44 "growth -related net capital cost" means the portion of the net capital cost of services that is reasonably attributable to the need for such net capital cost that results or will result from the anticipated development in all or a defined part of the City less the City's excess capacity and the extent to which an increase in service to meet the increased need will benefit existing development within the City; "home business" means a vocational use, as permitted by the applicable City zoning by-law, conducted in a dwelling unit which is secondary to the use of the dwelling unit as a private residence; "hospital" means a hospital as defined in the Public Hospitals Act, R.S.O. 1990, c. P.40; "household" means one or more persons living together as a single non-profit, housekeeping unit, sharing all areas of the dwelling unit and may, in addition, be designed to accommodate lodging units containing less than four residents; "industrial building" means a building used in connection with: (a) manufacturing, producing, processing, storing (but only where the storage is ancillary to related manufacturing, production, processing or distribution) or distributing something; (b) research or development in connection with manufacturing, producing or processing something; (c) retail sales by a manufacturer, producer or processor of something they manufactured, produced or processed, if the retail sales are at the site where the manufacturing, production or processing takes place; or, (d) office or administrative purposes, if they are, i. carried out with respect to manufacturing, producing, processing, storage or distributing of something, and, ii. in or attached to the building or structure used for that manufacturing, producing, processing, storage or distribution. "local board" means a municipal service board, transportation commission, public library board, board of health, police services board, planning board or any other board, commission, committee, body or local authority established or exercising any power under any Act with respect to any of the affairs or purposes of the City or the Regional Municipality of Waterloo (the "Region") or any part or parts thereof, excluding a school board, a conservation authority and any other board excluded under any general or special Act; "local services" means services related to a plan of subdivision or within the area to which the plan relates, to be installed or paid for by the owner as a condition of approval under section 51 of the Planning Act, or as a condition of approval under section 53 of the Planning Act; "lodging house" means a dwelling or residential building containing one or more lodging units designed to accommodate four or more residents. The residents Page 25 of 44 may share common areas of the dwelling other than the lodging units, and do not appear to function as a household. This shall not include a group home, nursing home, hospital or any residential care facility licensed, approved, or supervised under any general or specific Act, or a hotel or motel. This shall include but not be limited to student residences, convents, unlicensed nursing homes and tourist homes; "lodging unit" means a room or set of rooms located in a lodging house designed or intended to be used for sleeping and living accommodation, which: (a) is designed for the exclusive use of the resident or residents of the unit; (b) is not normally accessible to persons other than the resident or residents of the unit; and (c) may contain either a bathroom or kitchen but does not contain both for the exclusive use of the resident or residents of the unit, but does not include a unit or room in a hotel, motel, nursing or retirement home, group home, or hostel designed for human habitation; "multiple dwelling" means a dwelling or residential building containing three or more dwelling units, but shall not include townhouse or row dwellings; "net capital cost" means the capital cost less capital grants, subsidies and other contributions made to the City or that the Council of the City anticipates will be made but only to the extent that the grant, subsidy or other contribution is clearly intended by the person making it to benefit new development and includes conveyances or payments under sections 42, 51.1 and 53 of the Planning Act, in respect of the capital cost; "non-residential use" means the use of land, building or structures for a use other than residential use, including all commercial, industrial and institutional uses and excluding agricultural uses; "owner" means the owner of land or a person who has made application for an approval for the development or redevelopment of land upon which a development charge is imposed; "residential use" means the use of land, buildings or structures for one or more single detached, semi-detached, townhouse, row dwelling, multiple dwelling or duplex dwelling units and lodging houses; "semi-detached dwelling" means a dwelling or residential building divided predominantly vertically into two dwelling units; "services" means services designated in Schedule "A" attached to this by-law; Page 26 of 44 "single -detached dwelling" means a dwelling or residential building consisting of one dwelling unit and not attached to another residential structure, and shall include a mobile home located on a foundation; "site" means a parcel of land which can be legally conveyed pursuant to section 50 of the Planning Act and includes a development having two or more lots consolidated under one identical ownership; "townhouse or row dwelling" means a dwelling or residential building divided predominantly vertically into three or more attached dwelling units, each of which has a separate entrance from the outside; and Interpretation 1.2 This By-law shall be construed in accordance with the Act and the regulations thereunder, and the definitions in Section 1.1 shall be read with any necessary modifications as may be required in order to comply with the Act and the Regulation, or any successor legislation, as amended from time to time. Subject to the foregoing, undefined words in this By-law for which definitions exist within the applicable Zoning By-law of the City of Kitchener shall be interpreted and applied in accordance with the said Zoning By-law. The intention of this By-law is that it shall be interpreted and applied in a manner so that there is consistency between the Act, any regulations passed thereunder, and the applicable Zoning By-law of the City. Declaration 1.3 It is hereby declared by the Council that all development of land within the City will increase the need for services. Statutory Contents of By-law 1.4 For purpose of complying with section 6 of the Act, rules have been developed as follows: Rule Location Reference The rules for determining if a development Section 2.3 and Schedule charge is payable in any particular case and for "B" determining the amount of the charge The rules for determining the exemptions to Section 2.2 development charges The rules for determining the indexing of Sections 7.2 and 7.3 development charges The rules respecting the redevelopment of land Section 6.8 to 6.10 The area of the municipality to which this By-law Section 2.1 Relates Page 27 of 44 SECTION 2 APPLICATION AND EXEMPTIONS Geographic Application 2.1 Subject to section 2.2, this by-law applies to all lands within the City of Kitchener and any lands outside the City of Kitchener to which services are provided by the City, whether or not the land or use thereof is exempt from taxation under section 3 of the Assessment Act, R.S.O. 1990, c.A.31. Exceptions 2.2 This by-law does not apply to land owned by and used for the purposes of: (a) a board of education as defined by subsection 1(1) of the Education Act, R.S.O. 1990, c.E.2; (b) the City of Kitchener or any local board thereof; (c) the Region or any local board thereof; (d) any area municipality within the Region; and (e) the Crown in right of Ontario or the Crown in right of Canada. Imposition of Development Charges 2.3 Subject to sections 2.4 to 2.9 inclusive, development charges shall apply on land to be developed for residential and non-residential use, where the development or redevelopment requires one or more of the following approvals: (a) the passing of a zoning by-law or of an amendment thereto under section 34 of the Planning Act, R.S.O. 1990, c. P. 13; (b) the approval of a minor variance under section 45 of the Planning Act, R.S.O. 1990, c. P. 13; (c) a conveyance of land to which a by-law passed under subsection 50(7) of the Planning Act, R.S.O. 1990, c. P. 13 applies; (d) the approval of a plan of subdivision under section 51 of the Planning Act, R.S.O. 1990, c. P. 13; (e) a consent under section 53 of the Planning Act, R.S.O. 1990, c. P. 13; Page 28 of 44 (f) the approval of a description under section 9 of the Condominium Act, S.O. 1998, c. 19; or (g) the issuing of a permit under the Building Code Act, 1992, S.O. 1992, c.23 (the "Building Code"), in relation to a building or structure. 2.4 Section 2.3 shall not apply in respect of, (a) local services; or (b) local connections to water mains, sanitary sewers and storm drainage facilities installed at the expense of the owner including amounts imposed under a by-law passed under section 326 of the Municipal Act, 2001, c. 25, as amended. 2.5 Where two or more of the actions described in section 2.3 are required before the land to which a development charge applies can be developed or redeveloped, only one development charge shall be imposed, calculated and collected in accordance with the provisions of this by-law. 2.6 Despite section 2.5, if two or more of the actions described in section 2.3 occur at different times and if the subsequent action or actions has the effect of increasing the need for services as designated in this by-law, additional development charges shall be imposed, calculated and collected in accordance with the provisions of this by-law. 2.7 Section 2.3 shall not apply to: (a) a temporary use permitted under a zoning by-law enacted under sections 39 or 39.1 of the Planning Act, R.S.O. 1990, c.P.13; (b) an accessory use to residential uses; (c) a home business; (d) an agricultural use; (e) temporary erection of a building without foundation for a period not exceeding six consecutive months and not more than six months in any one calendar year on a site for which development charges or lot levies have previously been paid; and (f) the enlargement of a new or existing dwelling unit or the creation of additional dwelling units as prescribed by Ontario Page 29 of 44 Regulation 82/98 and set out in Schedule "D" attached hereto, and as such Regulation may be amended from time to time, provided that: (i) the number of dwelling units created in the renovated or enlarged residential building does not exceed the applicable maximum number of additional dwelling units set out in Schedule "D" attached hereto, and the total gross floor area of the additional dwelling units does not exceed the applicable maximum gross floor area provisions set out in Schedule "D" attached hereto; and (ii) no more than one or two additional dwelling units, notwithstanding rental residential buildings, in accordance with this subsection may ever be created without the imposition of development charges. 2.8 Development charges as set out in Sections 3, 4, and 5 of this by-law shall apply to all lands that are developed or redeveloped for residential and non-residential use in accordance with this by-law, but only insofar as, (a) the growth -related net capital costs of services are attributable to residential or non-residential use, as the case may be; and, (b) the growth -related net capital cost of each service is attributable to the anticipated development and at standards no higher than the average level of each such service provided by the City over the ten year period immediately preceding the preparation of the Study. SECTION 3 RESIDENTIAL DEVELOPMENT CHARGES 3.1 Development charges against land to be developed or redeveloped for residential use shall be based upon the services to be provided by the City which are designated in Schedule "A" attached hereto. 3.2 Subject to the provisions of this by-law, development charges are hereby imposed against land to be developed or redeveloped for residential use located within the Suburban Area the boundary of which is shown on Schedule "C-2" attached hereto and shall be calculated and collected at the rates set out in Schedule "B" attached hereto. 3.3 Subject to the provisions of this by-law, development charges are hereby imposed against land to be developed or redeveloped for residential use located within the Central Neighbourhoods the boundary of which is shown on Schedule "C-1" attached hereto and shall be calculated and collected at the rates set out in Schedule "B" attached hereto. Page 30 of 44 3.4 Subject to the provisions of this by-law, development charges against land to be developed or redeveloped for mixed residential use shall be the aggregate of the amount applicable for each dwelling unit according to its type as set forth in Schedule "B" attached hereto. 3.5 Where Subsection 26.2(1)(a) or (1)(b) of the Act apply to a development for the purposes of determining the amount of the development charge, interest shall be charged on the development charge in accordance with Corporate Policy, as may be amended from time to time with Council approval. SECTION 4 NON-RESIDENTIAL DEVELOPMENT CHARGES 4.1 Development charges against land to be developed or redeveloped for non-residential use shall be based upon the services to be provided by the City which are designated in Schedule "A" attached hereto. 4.2 Subject to the provisions of this by-law, development charges are hereby imposed against land to be developed or redeveloped for non-residential use located in the Suburban Area the boundary of which is shown on Schedule "C-2" attached hereto and shall be calculated and collected at the rate set out in Schedule "B" attached hereto 4.3 Subject to the provisions of this by-law, development charges are hereby imposed against land to be developed or redeveloped for non-residential use in the Central Neighbourhoods the boundary of which is shown on Schedule "C-1" attached hereto and shall be calculated and collected at the rate set out in Schedule "B" attached hereto. 4.4 Despite anything in this by-law, there shall be an exemption from the payment of development charges for one or more enlargements of an existing industrial building on a site in accordance with the Act and the Regulation. 4.5 Despite anything in this by-law, there shall be an exemption from the payment of development charges in respect of any enlargement of a hospital. 4.6 Where Subsection 26.2(1)(a) or (1)(b) of the Act apply to a development for the purposes of determining the amount of the development charge, interest shall be charged on the development charge in accordance with Corporate Policy, as may be amended from time to time with Council approval. Page 31 of 44 SECTION 5 MIXED USE 5.1 Subject to the provisions of this by-law, development charges against land to be developed or redeveloped for mixed residential and non-residential use shall be the aggregate of the amount applicable to the residential component and the amount applicable to the gross floor area of the non- residential component. 5.2 Where Subsection 26.2(1)(a) or (1)(b) of the Act apply to a development for the purposes of determining the amount of the development charge, interest shall be charged on the development charge in accordance with Corporate Policy, as may be amended from time to time with Council approval. SECTION 6 ADMINISTRATION Payment 6.1 All development charges required to be paid to the City pursuant to this by-law shall be paid by a method acceptable to the Treasurer of the City. Calculations 6.2 Subject to the provisions of this Section, development charges shall be calculated and payable in accordance with Section 26.1 and Section 26.2 of the Act. 6.3 Where subsections 26.1 and 26.2 of the Act do not apply, the development charges shall be calculated and payable in full on the date that a building permit is issued in relation to a building or structure on land to which a development charge applies. 6.4 Where development charges apply to land where a building permit is required, no building permit shall be issued until the development charge is paid in full in accordance with subsection 26.1 and 26.2 of the Act. 6.5 Notwithstanding subections 6.3 and 6.4, developments to which Section 26.1 applies only, shall be payable in instalments in accordance with the requirements of subsection 26.1 (3), including applicable interest, or in accordance with the terms of an agreement entered into with the City pursuant to section 27 of the Act. 6.6 Despite section 6.2, the City may require that development charges applicable with respect to the services described in subsections 2.9 (a) to (d) inclusive of this by-law ("Engineering Services"), be calculated as set Page 32 of 44 forth in Schedule "B" hereto and payable immediately upon the execution of a subdivision agreement under section 51 of the Planning Act, R.S.O. 1990, c. P. 13. or a consent agreement under section 53 of the Planning Act, R.S.O. 1990, c. P. 13., with respect to the lands to which such agreement, as the case may be, relates. Credits 6.7 The City may by agreement permit the owner of land to which development charges apply to provide services for development or redevelopment of that land in lieu of the payment of all or any portion of a development charge, including services additional to or of a greater size or capacity than is required under this by-law ("services in lieu"). 6.8 Upon proof of the installation or construction of services in lieu to the satisfaction of the City's Engineer, a credit, without interest, shall be applied against development charges payable for an amount equal to the reasonable cost to the owner of providing services in lieu, as determined by the City's Engineer, not to exceed the total amount of the development charges otherwise payable. 6.9 Any unused credit may be applied, upon proof satisfactory to the City's Chief Building Official, to any subsequent development charge payable with respect to the same land as referred to in section 6.5, or transferred and applied to any development charge payable with respect to other land owned by the same owner to be developed or redeveloped with the consent of the City on terms satisfactory to the City Solicitor. Redevelopment Allowances 6.10 Subject to the provisions of this section, where any redevelopment or re- use of land replaces or changes a former or existing development and, in the case of demolition upon proof of issuance of a demolition permit for the land being provided, the development charge applicable to the redevelopment or re -use shall be reduced by a redevelopment allowance, without interest, not to exceed an amount equal to the total of: (a) the number and types of legally established residential units in the former or existing development; and (b) the legally established non-residential gross floor area of the former or existing development, as determined by the Chief Building Official, or his or her designate, at the rates applicable to such units or gross floor area at the time the first building permit for the re -development is issued. 6.11 No redevelopment allowance shall be made in excess of the development Page 33 of 44 charge payable for a redevelopment; however, the redevelopment allowance may be carried forward and applied, upon proof satisfactory to the City's Chief Building Official, to any subsequent development charge payable with respect to the same land as referred to in section 6.8. 6.12 A credit can, in no case, exceed the amount of the development charge that would otherwise be payable, and no credit is available if the existing built form is exempt under this by-law. 6.13 The availability of redevelopment allowances is time-limited, and such availability shall expire in accordance with the following: (a) Where a demolition permit was issued after the passing of this By- law: (i) For the redevelopment of former residential lands, redevelopment allowances shall not be available later than the fifth anniversary of the date on which a demolition permit was issued in respect of the applicable buildings or structures on the lands; and, (ii) For redevelopment of former non-residential lands, redevelopment allowances shall not be available later than the tenth anniversary of the date on which a demolition permit was issued in respect of the applicable buildings; or structures on the lands; and, (b) Where a demolition permit was issued prior to the passing of this By-law: (i) For the redevelopment of former residential lands, redevelopment allowances shall not be available later than the tenth anniversary of the date on which a demolition permit was issued in respect of the applicable buildings or structures on the lands; and, (ii) For redevelopment of former non-residential lands, redevelopment allowances shall not be available later than the twentieth anniversary of the date on which a demolition permit was issued in respect of the applicable buildings. 6.14 Despite section 6.10, where the applicable timeframes in section 6.10 have not expired, a record of site condition is required for the development of lands, and the process to obtain the record of site condition is underway and is being pursued with all due dispatch, the Chief Building Official may grant one or more extensions to the expiration dates in section 6.10 to alleviate the delay occasioned by the necessity of obtaining a record of site Page 34 of 44 condition, provided that no such extension (or the cumulative effect of multiple extensions) shall result in a total extension exceeding ten years in relation to any site. Reserve Funds 6.15 Monies received from payment of development charges shall be maintained in a separate reserve fund or funds, and shall be used only to meet the growth -related net capital costs for which the development charge was imposed under this by-law. 6.16 Income received from investment of the development charge reserve fund or funds shall be credited to the development charge reserve fund or funds in relation to which the investment income applies. 6.17 Where any development charge, or part thereof, remains unpaid after the due date, the amount unpaid shall be added to the tax roll and shall be collected as taxes. 6.18 Where any unpaid development charges are collected as taxes under section 6.14, the monies so collected shall be credited to the development charge reserve fund or funds referred to in section 6.12. SECTION 7 GENERAL PROVISIONS 7.1 This by-law shall be administered by the City's Chief Building Official and the City's Treasurer, and their respective designates. Annual Adjustment 7.2 The development charges imposed pursuant to this By-law shall be adjusted annually, without amendment to this by-law, as of the 1st day of December in each year, in accordance with the index prescribed by Ontario Regulation 82/98 and as such Regulation may be amended from time to time. 7.3 The minimum interest rate that the City shall pay under subsection 18(3) and 25(2) of the Development Charges Act, 1997, c.27 in relation to a development charges by-law shall be the Bank of Canada interest rate on the day the by-law comes into force and thereafter as such rate is adjusted on the first business day of every January, April, July and October of each year. Page 35 of 44 SECTION 8 REPEAL — ENACTMENT Term 8.1 This by-law shall come into force and effect on July 1, 2022. 8.2 This by-law shall continue in force and effect for a term not to exceed five years from the date of its coming in to force and effect unless it is repealed or replaced at an earlier date by a subsequent by-law. 8.3 Nothing in this by-law shall be construed so as to commit or require the City or it's Council to authorize or proceed with any specific capital project at any specific time. 8.4 Each and every provision of this by-law is severable and, if any provision or provisions of this by-law should, for any reason, be declared invalid by any court, it is the intention of Council that each and every of the then remaining provisions of this by-law shall remain in full force and effect. 8.5 The Clerk is hereby directed to make this by-law a part of The City of Kitchener Municipal Code as Chapter 315 by adding it to the Concordance and arranging and numbering it so as to fit within the scheme of the Code. 8.6 By-law No. 2019-086 and the contents of Chapter 315 of The City of Kitchener Municipal Code, as amended, are hereby repealed effective at midnight on June 30, 2022. PASSED at the Council Chambers in the City of Kitchener this 30th day of May, A.D. 2022. Mayor Clerk Page 36 of 44 Schedule `A' to Development Charge By-law Services - Designations SERVICES DESIGNATION Residential/Non-residential 1. Sanitary Servicing 2. Services Related to a Highway: a. Public Works b. Roads and Related 3. Watermains 4. Engineering Studies 5. Storm/Watercourse 6. Intensification Allowance 7. Fire Protection 8. Growth -Related Studies Residential 9. Library 10. Indoor Recreation 11. Outdoor Recreation Page 37 of 44 SCHEDULE `B' DEVELOPMENT CHARGE RATES Note: 1 square metre = 10.761 square feet. Page 38 of 44 Residential Charge by Unit Type Non - Residential Singles & Multiples & Lodging Semis Townhouses Duplexes Houses Charge per m2 Total Suburban $24,733 $17,370 $12,505 $7,027 $75.75 Total Suburban Partial Services - No Sanitary Sewer $20,403 $14,329 $10,316 $5,797 $48.55 Total Suburban Partial Services - No Sanitary Sewer or Water $19,977 $14,030 $10,100 $5,676 $45.87 Total Central Neighbourhood $16,612 $11,667 $8,399 $4,719 $25.08 Note: 1 square metre = 10.761 square feet. Page 38 of 44 Page 39 of 44 SCHEDULE 'C21 Clity of Kitchener Suburban area uuuuuuuuuuuuuuuuuuu in Boundary of Sluburban.Azea J$ 4&3 C SeNkea rmerrl, InrMiallan TeOin,DMgy _ GIS Aprl14,201d Nm.rwA Fw V6rur&e LPI A,,grud Y+ s#, Pvm.,,Wr-IlI W&p - rm uv iN dw*",M—: Page 40 of 44 Schedule `D' — Classes of Development Exception Relating to the Creation of Additional Dwelling Units in Existing Residential Buildings Name of Description of Class of Maximum Restrictions Class of Existing Residential number of Existing Buildings additional Residential dwelling Building units Existing single Existing residential Two The total gross floor area detached buildings, each of which of the additional dwelling dwellings contains a single unit or units must be less dwelling unit, that are not than or equal to the gross attached to other floor area of the dwelling buildings. unit already in the building. Existing semi- Existing residential One The gross floor area of detached buildings, each of which the additional dwelling dwellings or contains a single unit must be less than or row dwellings dwelling unit, that have equal to the gross floor one or two vertical walls, area of the dwelling unit but no other parts, already in the building. attached to other buildings. Existing rental Existing residential rental Greater of one None residential buildings, each of which and 1 % of the buildings contains four or more existing units dwelling units. in the building Other existing An existing residential One The gross floor area of residential building not in another the additional dwelling buildings class of residential unit must be less than or building described in this equal to the gross floor table. area of the smallest dwelling unit already in the building. Page 41 of 44 Exception Relating to the Creation of Additional Dwelling Units in New Residential Buildings Name of Class of Proposed New Residential Buildings Proposed new detached dwellings Proposed new semi-detached dwellings or row dwellings Proposed new residential buildings that would be ancillary to a proposed new detached dwelling, semi-detached dwelling or row dwelling Description of Class of Proposed New Residential Buildings Proposed new residential buildings that would not be attached to other buildings and that are permitted to contain a second dwelling unit, that being either of the two dwelling units, if the units have the same gross floor area, or the smaller of the dwelling units. Proposed new residential buildings that would have one or two vertical walls, but no other parts, attached to other buildings and that are permitted to contain a second dwelling unit, that being either of the two dwelling units, if the units have the same gross floor area, or the smaller of the dwelling units. Proposed new residential buildings that would be ancillary to a proposed new detached dwelling, semi- detached dwelling or row dwelling and that are permitted to contain a single dwelling unit. Restrictions The proposed new detached dwelling must only contain two dwelling units. The proposed new detached dwelling must be located on a parcel of land on which no other detached dwelling, semi-detached dwelling or row dwelling would be located. The proposed new semi- detached dwelling or row dwelling must only contain two dwelling units. The proposed new semi- detached dwelling or row dwelling must be located on a parcel of land on which no other detached dwelling, semi-detached dwelling or row dwelling would be located. The proposed new detached dwelling, semi-detached dwelling or row dwelling, to which the proposed new residential building would be ancillary, must only contain one dwelling unit. The gross floor area of the dwelling unit in the proposed new residential building must be equal to or less than the gross floor area of the detached dwelling, semi- detached dwelling or row dwelling to which the proposed new residential building is ancillary. Page 42 of 44 Staff Report J IKgc.;i' r� R Chief Administrator's Office www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: May 30, 2022 SUBMITTED BY: Dan Chapman, Chief Administrative Officer, 519-741-2200 ext. 7350 PREPARED BY: Linda Korabo, Executive Assistant, 519-741-2200 ext. 7092 WARD(S) INVOLVED: N/A DATE OF REPORT: May 11, 2022 REPORT NO.: CAO -2022-256 SUBJECT: 2022 Resolution of Support — Association of Municipalities of Ontario (AMO) Board Nomination — D. Chapman RECOMMENDATION: THAT the Council of the City of Kitchener express its support for the nomination of Dan Chapman, Chief Administrative Officer, for the position of Large Urban Caucus municipal employee representative on the 2022-2024 Board of Directors of the Association of Municipalities of Ontario (AMO) along with reasonable expenses associated with Board directorship REPORT HIGHLIGHTS: The purpose of this report is to obtain support for the nomination of Dan Chapman for a position on the Association of Municipalities of Ontario Board of Directors. The financial implications are limited to travel costs to attend in-person Board meeting once they resume. BACKGROUND: On November 23, 2020, Council passed a resolution of support nominating D. Chapman for the position of Large Urban Caucus municipal employee representative in response to an Expression of Interest to fill board vacancies. This appointment is expiring in August 2022 REPORT: On April 26, 2022, the Association of Municipalities of Ontario released a Call for Nominations for the 2022-2024 Board of Directors. Applications and a supporting Council resolution are due to be submitted no later than Monday, June 27, 2022. D. Chapman is interested in continuing with his Board involvement as an advocate on behalf of the municipality and continue his involvement with policy development at the Provincial level. STRATEGIC PLAN ALIGNMENT: *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 43 of 44 This report supports the delivery of core services. FINANCIAL IMPLICATIONS: Capital Budget — The recommendation has no impact on the Capital Budget. Operating Budget — The City would typically cover the costs of travel (primarily to Toronto) for six meetings per year. Currently meetings remain virtual. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: There are previous reports/authorities related to this matter. • CAO -20-009 Resolution of Support for AMO Board Nomination (Dan Chapman) APPROVED BY: D. Chapman, Chief Administrative Officer ATTACHMENTS: Page 44 of 44