HomeMy WebLinkAboutFCS Agenda - 2022-12-121
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Finance and Corporate Services Committee
Agenda
Monday, December 12, 2022, 12:30 p.m. - 3:00 p.m.
Council Chambers - Hybrid
City of Kitchener
200 King Street W, Kitchener, ON N2G 4G7
People interested in participating in this meeting can register online using the delegation registration
form at www.kitchener.ca/delegation or via email at delegation(a)kitchener.ca. Please refer to the
delegation section on the agenda below for registration in-person and electronic participation
deadlines. Written comments received will be circulated prior to the meeting and will form part of the
public record.
The meeting live -stream and archived videos are available at www.kitchener.ca/watchnow.
*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 B. loannidis
Pages
1. Commencement
2. Disclosure of Pecuniary Interest and the General Nature Thereof
Members of Council and members of the City's local boards/committees are
required to file a written statement when they have a conflict of interest. If a
conflict is declared, please visit www. kitchener. ca/conflict to submit your written
form.
3. 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.
3.1 Fergus Avenue Reconstruction Purchase Order Extension, FIN -2022492
3.2 KW Woodworking and Craft Centre (KVWV&CC) - Extension of Existing
Agreement, CSD -2022481
3.3 House of Friendship - Funding Agreement, CSD -2022-480
3.4 Development Charges, Section 20 Dispute and Hearing Process, COR -
2022 -498
3.5 Pre -Approval of 2023 Capital Projects, FIN -2022-496
Please note: Any recommendation arising from the Committee regarding
this matter will be considered at the special Council meeting scheduled
for later this same date.
4. Delegations
Pursuant to Council's Procedural By-law, delegations are permitted to address
the Committee for a maximum of five (5) minutes. All Delegations where
possible are encouraged to register prior to the start of the meeting. For
Delegates who are attending in-person, registration is permitted up to the start
of the meeting. Delegates who are interested in attending virtually must register
by 10:30 a.m. on December 12, 2022, in order to participate electronically.
5.
A
7.
Presentations
5.1 2023 Budget Overview 30 m
Staff will provide an introductory presentation on the 2023 Budget.
Discussion Items
6.1 2023 User Fees, FIN -2022-482 40 m
Please note: Any recommendation arising from the Committee regarding
this matter will be considered at the special Council meeting scheduled
for later this same date.
6.2 2023 Water Utilities Rates, FIN -2022-488 30 m
(Staff will provide a 5 -minute presentation on this matter.)
Please note: Any recommendation arising from the Committee regarding
this matter will be considered at the special Council meeting scheduled
for later this same date.
6.3 2023 Natural Gas Rates, INS -2022-486 30 m
(Staff will provide a 5 -minute presentation on this matter.)
Please note: Any recommendation arising from the Committee regarding
this matter will be considered at the special Council meeting scheduled
for later this same date.
Information Items
7.1 September 2022 Variance Report, FIN -2022-484, FIN -2022-484
4
6
9
19
22
25
102
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118
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8. Adjournment
Dianna Saunderson
Manager of Council/Committee Services & Deputy Clerk
Page 3 of 135
Staff Report
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Development Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: December 12, 2022
SUBMITTED BY:
Steve Allen, Manager, Engineering Design and Approvals,
519-741-2200 ext 7584
PREPARED BY:
Steve Allen, Manager, Engineering Design and Approvals,
519-741-2200 ext 7584
Chris Spere, Manager, Construction Engineering,
519-741-2200 ext. 7412
WARD(S) INVOLVED:
2
DATE OF REPORT:
December 2, 2022
REPORT NO.: FIN -2022-492
SUBJECT: Fergus Avenue Reconstruction Purchase Order Extension
RECOMMENDATION:
That the Purchase Order for T21-092 Fergus Avenue (Weber Street East to Thaler
Avenue) Clover Place Reconstruction, issued to Steed and Evans Limited, St. Jacobs,
Ontario be increased in the amount of $90,000 funded by an existing surplus in the
project account.
REPORT HIGHLIGHTS:
The purpose of this report is to increase the purchase order to account for higher
than anticipated costs during construction.
There is sufficient surplus in the project account to fund the PO increase.
This report supports the delivery of core services.
BACKGROUND:
The reconstruction of Fergus Avenue is identified as a priority infrastructure replacement
project within the Water Infrastructure Program (WIP). The purpose of the project is to
replace aging underground infrastructure and rebuild all surface features including curb,
sidewalks and asphalt roadway. Funding for the completion of the construction phase of
the project was approved by Council as part of the 2021 Budget.
Work for the Fergus Avenue reconstruction was publicly tendered by the city in June 2021
and was awarded in July of 2021 at a cost of $4,241,989.50 including taxes. Work started
in August of 2021. Due to the size of the project, it was tendered as a 2 -year project to be
completed in 2021 and 2022. The construction of Fergus Avenue Reconstruction is now
essentially complete
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 4 of 135
REPORT:
The reconstruction tender was awarded July 2021 and construction was completed over two
construction seasons (2021 and 2022). A number of unforeseen circumstances such as a
utility conflicts, greater quantity of impacted soils than anticipated, and asphalt price indexing
have resulted in additional costs and a requirement to increase the purchase order.
On September 9, 2022, the purchase order was increased by 10% ($375,397.30), the
maximum allowable amount under the past Purchasing By-law, Item 170.7.6. This increase
covered the items as detailed above however additional funds are required to close the
project out.
A number of the out -of -scope changes required using current material and labour pricing
rather than unit pricing from the original contract. Material and labour costs have risen
sharply over the last 12-18 months from when the contract was executed in 2021.
Additionally, the contract includes price indexing provisions for asphalt cement which is a
standard provision. As the price of asphalt has increased significantly between the time of
bids being submitted (July 2021) and the placement of the asphalt, the city is obligated to
compensate the contractor for this price increase as per the terms of the executed
agreement.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
Capital Budget — The recommendation has no impact on the Capital Budget. Sufficient
surplus funding exists in the project account.
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: Justin Readman, General Manager, Development Services
Page 5 of 135
Staff Report
Community Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: December 12, 2022
SUBMITTED BY: Mark Hildebrand, Director, Neighbourhood Programs & Services, 519-
741-2200 ext. 7687
PREPARED BY: Lori Palubeski, Manager, Program & Resource Services, 519-741-2200
ext. 7623
WARD(S) INVOLVED: All(s)
DATE OF REPORT: November 18, 2022
REPORT NO.: CSD -2022-481
SUBJECT: KW Woodworking and Craft Centre (KWW&CC) — Extension of Existing
Agreement
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute a five-year funding agreement
extension with the Kitchener Waterloo Woodworking & Craft Centre, said agreement to
be to the satisfaction of the City Solicitor and;
That funding of $55,403 for the funding agreement with the Kitchener Waterloo
Woodworking & Craft Centre be moved from the Tier 1 grant program and placed into the
Neighbourhood Programs and services operating budget.
BACKGROUND:
Older adults are a growing segment of the population and are living healthier and longer lives
then previous generations. The City of Kitchener values the contributions that older adults make
in our community and aims to deliver a wide range of neighbourhood programs, services and
events that support their wellbeing and ability to age in place.
In 2005, Council approved the development of a "shared services" partnership between the City
of Kitchener, the City of Waterloo and the Kitchener Waterloo Woodworking and Craft Centre
(KWW&CC) for the purpose of implementing a community woodworking and craft centre. In
2018, the centre relocated to its current location (123 Ottawa Street South, Unit 2) and Council
approved a 5 -year funding agreement that is set to expire in December 2022.
The KWW&CC welcomes centre hobbyists of all ages who have varying degrees of experience
in woodworking.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 6 of 135
REPORT:
Since opening its doors in 2005, the Board of Directors and the centre volunteers have more
than exceeded project proposal targets as they relate to paid memberships, funding from
community grant programs, volunteer hour contributions, hours of centre operation and
community interest and engagement. The KWW&CC successfully managed the operational
challenges of the Covid-19 pandemic and has fully resumed centre operations and programs.
The board has recently negotiated a lease extension with an expiration date of September 2027.
Continued financial support from both the City of Kitchener and the City of Waterloo is
recommended to support the ongoing operations of this community asset. The City of Waterloo
currently provides $32,000 in annual funding. Should Council approve this recommendation, the
current funding agreement would be extended, under the same terms, with an annual total of
$55,403 from the City of Kitchener.
It is recommended that the funding be removed from the Tier 1 grant program because of the
uniqueness of this relationship. As part of our joint services program with the City of Waterloo,
both municipalities strive to assume a coordinated approach to supporting the KWW&CC.
Additionally, the funding agreement between the City of Kitchener and the centre is outside of
the scope and timeframe of the Tier 1 grant stream.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
The City of Kitchener has provided annual funding to the KW Woodworking and Craft Centre
since 2006. Should Council approve this recommendation, annual funding would continue for
five years to a maximum of the current level ($55,403 per year).
There is no additional funding being requested. Staff are recommending moving the Tier 1 grant
allocation of $55,403 over to the Neighbourhood Programs and Services annual operating
budget.
COMMUNITY ENGAGEMENT:
Municipal staff, the Board of Directors and the centre volunteers have been working together to
develop a plan for the future of the centre. The KWW&CC is a "not for profit" organization and
consults with its centre membership according to its own by-laws and operational processes and
procedures.
This report has been posted to the City's website with the agenda in advance of the council /
committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
• CSD -16-032 - KW Woodworking & Craft Centre (KWW&CC) — Agreement
Renewal
• CSD -02-076 - Update on Seniors Woodworking and Craft Centre
• CSD -04-021 - Proposal for a Woodworking and Craft Centre for Adults 50+ years
• CSD -05-068- Joint Wood Working/Craft Centre Project — Shared Services
Partnership
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APPROVED BY: Michael May, General Manager Community Services & DCAO
ATTACHMENTS:
None
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Staff Report
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Community Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: December 12, 2022
SUBMITTED BY: Mark Hildebrand, Director, Neighbourhood Programs and Services, 519-
519-741-2200 ext. 7687
PREPARED BY: Steve Roth, Manager, Community Centres, 519-741-2200 ext. 7077
WARD(S) INVOLVED: All
DATE OF REPORT: November 14, 2022
REPORT NO.: CSD -2022-480
SUBJECT: House of Friendship — Funding Agreement
RECOMMENDATION:
That funding of $158,621 for the services provided by House of Friendship be moved from
the Tier 1 grant program and placed into the Neighbourhood Programs and services
operating budget, and
That the General Manager, Community Services be authorized to execute a Funding
Agreement every two years with House of Friendship to cover expenses associated with
providing food programs at City of Kitchener facilities, said agreement to be subject to
the satisfaction of the City Solicitor.
BACKGROUND:
The House of Friendship is a Waterloo Region -based non-profit organization that provides food,
housing, addiction treatment and neighbourhood support to individuals and families in the region.
For over a decade, the House of Friendship, in partnership with the Food Bank of Waterloo
Region has received funding through the City's tiered funding program to offer several food
related programs (e.g. emergency food distribution, community gardens, cooking classes) at
Chandler Mowat and Kingsdale community centre. Increasing community need saw these
programs expanded to 3 more community centres between 2019 and 2022, including Centreville
Chicopee, Forest Heights, and Victoria Hills community centres. Prior to 2019, House of
Friendship served approximately 2,500 individuals experiencing poverty during the year, out of
Chandler Mowat and Kingsdale Community Centre. Since adding the other 3 community centre
sites (at the City's request), this number has doubled to more than 5,000 community members.
The City of Kitchener historically has provided funding to the House of Friendship through its
Tier 1 grant program. However, given that the food programs and need continue to grow in the
city, staff believe it makes more sense to manage this relationship through a contracted fee for
service model rather than through the grant program. To do that, staff are suggesting to move
the funds, provided to the House of Friendship from the Tier 1 grant program, to the
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 9 of 135
Neighbourhood programs and services operating budget, and entering into a fee for service
funding agreement.
REPORT:
The City of Kitchener provides annual operating support for foundational not-for-profit
organizations and groups (like House of Friendship) that are delivering services essential to a
healthy and vibrant community, through the Tier 1 grants program. To be eligible to continue
receiving an annual grant, each year all Tier 1 organizations must submit information
demonstrating that they continue to satisfy the requirements set out in their grant funding
agreements with the City. Any increases to an organization's grant are typically limited each
year to an inflationary increase. As per the council -approved Community Investment policy,
additional requests over and above this are to be negotiated through the agreement process
and brought forward to Council for consideration during the annual budget process. The number
of additional requests brought forward to Council are very minimal.
It has been the case since 2019, due to the expansion of the food programs to more City facilities,
that staff have had to negotiate additional funding requests with House of Friendship and bring
forward to Council for consideration and review during budget deliberations. Neighbourhoods
have come to rely on the food security programs provided by the House of Friendship out of
these facilities, and it is quite possible that this partnership may grow as need in Kitchener
continues to increase. Staff believe that managing this relationship through the Tier 1 grant is
not effectively meeting the needs of this growing relationship, that staff overseeing the Tier 1
grants are not the most appropriate to oversee this relationship, and that a more efficient
approach would be to move funding outside of the tiered grant program and entering into a fee
for service funding agreement. Through this approach, House of Friendship would negotiate
directly with Neighbourhood Programs and Services staff annually, who understand the needs
in the community; determining the food programs required and the facilities they are required in.
If there is a need for more resources to expand food programs at city facilities that would be
considered as a part of the City's annual budget process. This approach eliminates the additional
work required by the House of Friendship to submit a Tier 1 grant application.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
There is no additional funding being requested. Staff are recommending to move the Tier 1 grant
allocation of $158,621 over to the Neighbourhood Programs and Services annual 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.
Page 10 of 135
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Michael May, General Manager Community Services & DCAO
Page 11 of 135
Between
-and-
THIS FUNDING AGREEMENT dated the _ day of 2022.
THE CORPORATION OF THE CITY OF KITCHENER
(the "City")
House of Friendship
(the "Recipient")
WHEREAS s. 107 of the Municipal Act, 2001, S.O. 2001, c. 25, provides that a municipality may make grants, on
such terms and conditions as to security and otherwise as the council considers appropriate, to any person, group,
or body, including a fund, within or outside the boundaries of the municipality for any purpose that council
considers to be in the interests of the municipality;
AND WHEREAS the Recipient has applied to the City for a grant to assist the Recipient in the Recipient's activities
as described in Schedule A ("the Funded Activity");
AND WHEREAS the City approved a grant be made to the Recipient in connection with the Recipient's activities
upon such terms and conditions as are more particularly described in this agreement;
NOW THEREFORE in consideration of the mutual covenants and other terms and conditions in this Agreement,
the parties agree each with the other as follows:
1. Schedules Forming Part of Agreement
The following Schedules are attached to this Agreement and form part of this Agreement:
a. Schedule A: Description of Funded Activity
b. Schedule B: Maximum Contribution and Permitted Expenditures
2. Term
The Agreement shall commence on the date this Agreement is signed by both parties, and shall terminate on
the Funded Activity End Date as set out in Schedule A ("Term"), or shall terminate on such earlier date as set
out in this Agreement.
3. Funding
Subject to the terms and conditions of this Agreement, the City shall provide funding and in-kind assistance
to the Recipient as set out in Schedule B, which amount shall be payable and assistance provided as set out in
Schedule B. Payment of any monies under this Agreement is subject to the availability of funds in the City's
current approved budget.
4. Use of Funding
The Recipient covenants and agrees that the Recipient shall use the funding solely for the purpose of paying
the Permitted Expenditures in connection with the Funded Activity and for no other purpose.
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5. Reports
Where required by the City, the Recipient shall submit the reports as set out in Schedule A, on or before the
date set out in Schedule A to the City in a form and content satisfactory to the City. The reports shall include
a financial statement for the period covered by the reports.
6. Right of Inspection
The City or anyone designated in writing by the City may audit and inspect accounts, records, receipts,
vouchers, and other documents relating to the funding and shall have the right to make copies thereof and
take extracts. The Recipient shall make available all facilities, physical and otherwise, for such inspections and
shall furnish the City and its authorized representatives with all such information as it, or they, may from time
to time require with reference to such accounts, records, receipts, vouchers, and other documents.
7. Right of Attendance
The City or anyone designated in writing by the City may audit and attend any meetings of the members of
the Recipient, and the Recipient shall provide the City with notice of such meetings and all supporting
documentation and materials at such meeting. Nothing herein contained shall grant the City any voting rights
in the Recipient, unless the City makes successful application for membership in the Recipient, in accordance
with the recipient's requirements.
8. Official Notification
Any notice required to be given under this Agreement shall be given or provided by personal delivery, mail,
or courier service at the postal address of the receiving party as set out below and shall be deemed to have
been received one working day after they are sent:
a. The City: Community Services, The Corporation of the City of Kitchener, City Hall, 200 King St W
Kitchener, ON N2G 4G7 Attention: LoriAnn Palubeski
b. The Recipient: As set out in Schedule A
Either party to this Agreement may, at any time, give notice under this section to the other of a change of
address.
9. Informing the Public of the City's Contribution
The Recipient acknowledges that the City may publicize the name of the Recipient, the amount of the
contributions and the nature of the Funded Activity supported under this Agreement. The Recipient shall
recognize the City as a funding contributor in all Funded Activity -related publicity.
10. Termination
Despite any other provisions in this Agreement, the City may terminate this Agreement for any reason,
effective upon the giving of fifteen (15) days' prior written notice to the Recipient. Any termination by the City
under this Agreement shall be without compensation, penalty or liability on the part of the City, and shall be
without prejudice to any of the City's legal or equitable rights or remedies.
11. Indemnity
The Recipient shall indemnify and save the City, its officers, directors, employees, agents and Councillors,
harmless from and against all claims, actions, losses, expenses, costs or damages of every nature and kind that
the City may suffer, caused or alleged to be caused by any willful or negligent act, omission or delay on the
part of the Recipient or its officers, directors, employees, contractors or agents, in connection with anything
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purported to be or required to be done by the Recipient in connection with this Agreement or the Funded
Activity.
12. Insurance
It is the responsibility of the Recipient and their Insurance Broker to review all potential operations and
exposures to determine if the coverage and limits noted below are sufficient to address all insurance related
exposures presented by the specifications of the Funded Activity. The Recipient shall insure its undertaking,
business and equipment under the following coverage so as to protect and indemnify and save harmless the
City:
a. General liability insurance: The Recipient shall maintain liability insurance acceptable to the City
throughout the term of this Agreement. Coverage shall consist of a comprehensive policy of public
liability and property damage insurance, with all applicable coverage extensions/endorsements
available, in an amount of not less than $2,000,000 per occurrence. Such insurance shall name The
Corporation of the City of Kitchener as an additional insured with a cross liability endorsement and
severability of interests provision. The policy SIR/deductible shall not exceed $100,000 per claim
(unless otherwise approved by the City's risk management) and if the policy has an aggregate limit,
the amount of the aggregate shall be double the required per occurrence limit. A combination of
primary coverage plus umbrella or excess liability insurance may be used.
b. Provisions: Upon execution of this Agreement, the Recipient shall forward Certificates of Insurance
acceptable to the City evidencing this insurance with the executed Agreement and thereafter on or
prior to the expiry of the insurance coverage. These Certificates shall state that coverage will not be
suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30) days prior
written notice by certified mail to the City.
c. It is also understood and agreed by the Recipient that in the event of a claim any deductible or self-
insured retention (SIR) under these policies of insurance shall be the sole responsibility of the
Recipient and that this coverage shall preclude subrogation claims against the City and any other
person insured under the policy and be primary insurance in response to claims. Any insurance or
self-insurance maintained by the City and any other person insured under the policy shall be
considered excess of the Recipient's insurance and shall not contribute with it. The minimum amount
of insurance required herein shall not modify, waive or otherwise alter the Recipient's obligation to
fully indemnify the City under this Agreement.
13. Compliance with Laws
The Recipient shall carry out the Funded Activity in compliance with all applicable federal, provincial and
municipal laws, by-laws, policies, guidelines, rules and regulations, including applicable privacy legislation,
environmental legislation. The Recipient shall obtain, prior to the commencement of the Funded Activity, all
permits, licenses, consents and other authorizations that are necessary to the carrying out of the Funded
Activity.
14. Municipal Freedom of Information and Protection of Privacy Act and The Municipal Act, 2001
The Recipient acknowledges that all records in the City's control (including any records provided by the
Recipient to the City) are subject to the provisions of the Municipal Freedom of Information and Protection of
Privacy Act, and such records may be disclosed by the City to the public upon request under that Act. The
Recipient further acknowledges that pursuant to the Municipal Act, 2001, the proceedings of City Council are
matters of public record. The Recipient acknowledges that the City does not make any covenants with respect
to maintaining the confidentiality of any records the Recipient provides to the City.
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15. Assignment
The Recipient shall not assign this Agreement or any interest in this Agreement without the prior written
consent of the City, and for the purposes of this Agreement, assignment shall include any transfer in the
majority ownership or controlling interest in the Recipient, whether through the sale of shares, direct
acquisition of assets or otherwise.
16. Relationship Between the Parties
The Recipient is not in any way authorized to make a promise, agreement or contract on behalf of the City.
This Agreement is a funding agreement only, not a contract for services or a contract of service or
employment. The City's responsibilities are limited to providing financial and in kind assistance to the
Recipient towards the Eligible Expenditures. The parties hereto declare that nothing in this agreement shall
be construed as creating a partnership, an employer-employee, or agency relationship between them. The
Recipient shall not represent itself as an agent, employee or partner of the City.
17. Headings
The headings in this Agreement are for ease of reference only and shall not be taken into account in the
construction or interpretation of any provision to which they refer.
18. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements,
arrangements, letters of intent, understandings, negotiations and discussions, whether oral or written, of the
parties pertaining to the Funded Activity. The Recipient acknowledges that it has read this Agreement,
understands it and agrees to be bound by its terms and conditions.
19. Waiver
Failure by either party to exercise any of its rights, powers or remedies shall not constitute a waiver of those
rights, powers or remedies.
20. Force Majeure
Neither party shall be responsible for damage caused by delay or failure to perform under the terms of this
Agreement resulting from matters beyond the control of the parties including strike, lockout or any other
action arising from a labour dispute, fire, flood, act of God, war, riot or other insurrection, lawful act of public
authority, or delay or default caused by a common carrier that cannot be reasonably foreseen or provided
against.
21. Payment of monies is Subject to City Budget Approval
Any payment under this Agreement is subject to the approval by City Council for the fiscal year in which the
payment is to be made. In the event that the City Council cancels or reduces the level of funding for any fiscal
year in which payment is to be made under the Agreement, the City may terminate this Agreement or reduce
the amount of its contribution payable under the Agreement in that fiscal year by such amount that it deems
advisable. Where, pursuant to this section, the City intends to reduce the amount of its contribution under
the Agreement, it shall give the Recipient not less than one months' notice of its intention to do so. Where,
as a result of reduction in funding, the Recipient is unable or unwilling to complete the Funded Activity, the
Recipient may, upon written notice to the City, terminate the Agreement. The Recipient shall not hold the City
liable for any reduction or termination of funding.
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22. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario.
23. Canadian Currency
Any reference to currency is to Canadian currency and any amount advanced, paid or calculated is to be
advanced, paid or calculated in Canadian currency.
IN WITNESS WHEREOF the City has hereunto affixed its corporate seal under the hands of its Mayor and Clerk and
the Recipient has hereunto affixed its seal under the hands of their duly authorized signing officers.
SIGNED, SEALED & DELIVERED
in the presence of
THE CORPORATION OF THE CITY OF KITCHENER
General Manager, Community Services Date
Clerk
House of Friendship
Print Name:
Title:
"I/We Have Authority to Bind the Organization"
Date
Date
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SCHEDULE A— FUNDED ACITIVITY PARTICULARS
THE FUNDED ACTIVITY
1. Full Legal Name of Recipient: House of Friendship
2. Address for Service of Notice: 51 Charles Street East, Kitchener N2G 2133
3. Primary Contact Name: Clare Wagner Phone #: 519742.8327
4. Funded Activity Start Date (date for which funding will be commenced): January 1, 2023
5. Funded Activity End Date (date for which funding will end): December 31, 2023
6. FUNDED ACTIVITY DESCRIPTION:
The Organization is a Waterloo Region -based non-profit organization that provides food, housing,
addiction treatment and neighbourhood support to individuals and families. Grant funds are provided to
the Organization to help cover the costs associated with providing food programs at the Chandler
Mowat, Kingsdale, Centreville Chicopee, Victoria Hills and Forest Heights community centres. Grant
funds also support costs (including wages, benefits and administrative costs) associated with providing
specific community service programs that support people living on low incomes and dealing with the
impacts of poverty at the Chandler Mowat and Kingsdale Community Centres.
7. The Recipient shall provide the following Reports to the City:
a. Annual Report — due no later than the end of MONTH of the following year for each prior year. The report
shall include yearly activity plan, highlights of the full year's outcomes, year-end financial monitoring
including final revenue and expenditure statements; to be signed by the Board Chair and an authorized
employee.
b. Board Contact Information — A complete list of the Board of Directors for the organization, which includes
the contact information for each member.
c. Annual Financial Statement — to be provided in accordance with the legislation in advance of the
Recipient's Annual General Meeting.
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SCHEDULE B —MAXIMUM CONTRIBUTION AND PERMITTED EXPENDITURES
The City of Kitchener will provide to The House of Friendship transitional funding in the amount of $210,971
annually for the 1 -year period of January 2023 to December 31, 2023
Financial Contribution
Maximum Contribution of the City
The total amount of the City's contribution annually towards the Funded Activity under this Agreement is
$210,971 in funding.
2. Disbursement of funding
Subject to the Recipient's compliance with the provisions of this Agreement, the City's financial contribution
shall be disbursed to the Recipient over the Term of this Agreement, as twelve equal monthly payment of
funds for the entire Funded Activity, to be paid within 30 days of execution of this Agreement, and every 30
days thereafter by electronic fund transfer (EFT)
3. Permitted Funded Activity Expenditures
Permitted Expenditures for the Funded Activity may include the following:
a. Insurance;
b. Member registration and ride registration system;
c. Volunteer Recognition;
d. Professional Fees;
e. General Administrative Costs;
f. Program Supplies;
g. Community Meetings and Events; and
h. Other Program Costs
4. Conditions governing Permitted Expenditures
The Permitted Expenditures set out above are subject to the following conditions:
a. Permitted Expenditures must be incurred during the Funded Activity Start Date and End Date;
b. depreciation of capital assets is not eligible;
c. fines and penalties are not eligible; and
d. the cost of alcoholic beverages, recreational cannabis or travel expenses are not eligible.
In -Kind Contribution
1. Contribution by the City
In -Kind Contributions from the City may include the following:
• Subject to availability, space for food programs at City of Kitchener community centres facilities, with
schedule and location to be to the mutual agreement of the City and the Recipient
Page 18 of 135
Staff Report
r
NJ :R
Corporate Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: December 12, 2022
SUBMITTED BY: Amanda Fusco, Director, Legislated Services and City Clerk, 519-741-
2200 ext. 7809
PREPARED BY: Dianna Saunderson, Manager, Council and Committee Services and
Deputy Clerk, 519-741-2200 ext. 7278
WARD(S) INVOLVED: N/A
DATE OF REPORT: November 25, 2022
REPORT NO.: COR -2022-498
SUBJECT: Development Charges, Section 20 Dispute and Hearing Process
RECOMMENDATION:
That the Finance and Corporate Services Committee be delegated the authority of Council
to conduct hearings relating to complaints made under section 20 of the Development
Charges Act, 1997; and further,
That the hearings for section 20 Development Charges disputes be conducted as the per
the process as outlined in Corporate Services Department report COR -2022-498.
REPORT HIGHLIGHTS:
The purpose of this report is to delegate the authority of Council to the Finance and
Corporate Services Committee for the purpose of conducting complaint hearings made
under Section 20 of the Development Charges Act, 1997.
Staff will establish a hearing process, which will include providing the legislated notice to the
complainant so they may attend to represent their complaint.
This report supports the delivery of core services.
BACKGROUND:
The Development Charges Act, 1997 enables municipalities in the province to enact by-laws to
impose development charges against lands to be developed to pay for growth -related capital
costs for municipal services such as roads, water, wastewater, public works, recreation, police
and fire protection.
On October 27, 2022, Gowling WLG on behalf of McLean-Peister Limited submitted a compliant
to the City of Kitchener and the Region of Waterloo, pursuant to Section 20(1) of the
Development Charges Act, 1997 (the "DC Act"). The City acknowledged receipt of the complaint
on November 3, 2022, noting the complaint did constitute a statutory complaint under section
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 19 of 135
The purpose of this report is to outline the process that is required to be established by the DC
Act and Council for the Complaint.
REPORT:
Section 20 (4) of the DC Act requires Council to hold a hearing into the complaint and shall give
the complainant an opportunity to make representations at the hearing. Given the infrequent
need to date, no formal hearing process has been established by the City of Kitchener to address
complaints received pursuant to section 20 of the DC Act.
To address the current complaint and all future complaints received pursuant to section 20 of
the DC Act, staff propose that the Finance and Corporate Services Committee be delegated the
authority to conduct the hearing on behalf of City Council.
The following is proposed to be the process for which the hearings shall be conducted, in
accordance with the DC Act:
1. The City shall receive a complaint in writing within 90 days after the day the development
charge, or any part of it, is payable. The complaint must state the complainant's name,
the address where notice can be given to the complainant and the reasons for the
compliant.
2. The Finance and Corporate Services Committee, which through this report will be
delegated the authority to conduct the hearing process, will be scheduled for the required
hearing.
3. The Clerk of the municipality shall mail a notice of hearing to the complainant a minimum
of 14 days prior to the hearing.
4. Staff through a staff report included on the Committee agenda, will respond to the
compliant and make a formal recommendation to Finance and Corporate Services
Committee.
5. The Finance and Corporate Services Committee Chair will note the meeting is being held
as a formal hearing to the DC Act and shall comply with the principles of procedural
fairness including providing the Complainant with an opportunity to provide
representation. The Finance and Corporate Services Committee will rely on the
provisions outlined in Chapter 25 (Council Procedure) of the City of Kitchener Municipal
Code to conduct the hearing.
6. The Finance and Corporate Services Committee, after hearing any additional evidence
and submissions from the compliant, may dismiss the compliant or rectify any incorrect
determination or error that was subject to the complaint. The Committee when rendering
their decision must find that there has been an incorrect determination or error in the
application of the DC By-law before it grants the requested remedy.
7. The decision of the Finance and Corporate Services Committee would then be forwarded
to the next subsequent City Council meeting to be ratified and considered final and
binding.
8. Section 22 of the DC Act provides that the compliant can appeal Council's decision to the
Ontario Land Tribunal.
Staff have consulted with the Region of Waterloo and have developed the foregoing hearing
process in alignment with that of the Region of Waterloo. The Regional Development Charges
Page 20 of 135
By-law delegates Regional Council's authority for the conducting hearings under section 20 of
the DC Act to their Administration and Finance Committee.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
Capital Budget — The recommendation has no impact on the Capital Budget.
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.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Victoria Raab, General Manager, Corporate Services
Page 21 of 135
Staff Report
Financia( Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: December 12, 2022
SUBMITTED BY: Ryan Scott, Chief Procurement Officer, 519-741-2200 ext. 7214
PREPARED BY: Ryan Scott, Chief Procurement Officer, 519-741-2200 ext. 7214
Ryan Hagey, Director of Financial Planning & Reporting, 519-741-2200
ext. 7353
WARD(S) INVOLVED: All Wards
DATE OF REPORT: November 24, 2022
REPORT NO.: FIN -2022-496
SUBJECT: Preapproval of 2023 Capital Projects
RECOMMENDATION:
That Council pre -approve the capital projects listed in Appendix A to report FIN -2022-496
for procurement prior to passing the 2023 budget.
REPORT HIGHLIGHTS:
• The purpose of this report is to obtain pre -approval from Council to procure a small number
of capital projects prior to the 2023 budget being approved.
• The projects proposed for pre -approval are standard budget items.
• Preapproval is being sought to secure more favourable pricing than waiting until early spring
when Kitchener will have to compete with other local municipalities for bids.
• This report supports the delivery of core services.
BACKGROUND:
Kitchener's 2022 budget process concluded in December of 2021, meaning the City had an
approved budget before the end of the year. This allowed the City to procure many of its capital
projects in December/January and receive multiple bids from interested contractors. Due to
2022 being an election year, the final approval of the 2023 budget cannot take place until the
new year (Final Budget Day is scheduled for February 2nd). If the City of Kitchener waits until
February to start procurement, it will face increased competition from other local municipalities
which will likely mean fewer bids and higher prices.
REPORT:
Given the delayed passing of the 2023 budget, staff are recommending Council pre -approve a
small number of high-priority capital projects. This will allow the City of Kitchener to go to market
early, which will create the conditions to encourage more bids, better pricing, and aligns with
trends from the past. The City's experience has been to see the greatest number of bids early
in the year when contractors are planning their work compared to far fewer bids (and higher
prices) received for procurements later in the year.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 22 of 135
With the pre -approval of the projects listed in Appendix A of this report, procurement staff will
have the ability to award the projects in accordance with the procurement by-law. In addition to
getting more favourable pricing, this should ensure work on these projects proceeds early in
2023 instead of taking place later in the year. This is an important factor as work on some of
the projects is extremely time sensitive.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
The budgets for each of the projects shown in Appendix A are from the 2023 budget and are
included in the proposed rate increases Council will consider as part of the budget process.
There have been relatively few capital budget reductions made by Council during the last several
budget processes, so the risk of impacting the 2023 budget discussions is extremely low.
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.
ATTACHMENTS:
Appendix A — List of Projects for Pre -Approval
Page 23 of 135
Appendix A — List of Projects for Pre -Approval
Engineering
Engineering
Engineering
Engineering
r
Engineering
Engineering
Engineering
Engineering
Engineering
Facilities
Management
Fleet
Delaware Avenue/Highland Road
Reconstruction
Bruce Street — Fife to Heather
Reconstruction
Westwood Crescent
Reconstruction
McKenzie Avenue — Ottawa to
Sheldon Reconstruction
Second Avenue — Kingsway to
Connaught Reconstruction
Patricia Avenue — Queen to
Highland Reconstruction
Resurfacing City Streets
Downtown Cycling Infrastructure
Strasburg Road South &
Watermain Detailed Design
Salt Dome Replacement
One (1) Plow Truck
Project 2023
Number udge.
901004029 $2,764,000
901004021 1 $2,405,000
901004020 $2,390,000
901003028 $1,568,000
701205078 $872,000
800405000 $2,765,000
801101001 $1,978,000
901007008 $849,000
900401052 1 $1,859,000
3008010011 $375.000
Page 24 of 135
Staff Report
Financia( Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: December 12, 2022
SUBMITTED BY: Ryan Hagey, Director of Financial Planning
519-741-2200 Ext 7353
PREPARED BY: Debbie Andrade, Manager of Budgets
519-741-2200 Ext 7114
WARD(S) INVOLVED: All
DATE OF REPORT: October 20, 2022
REPORT NO.: FIN -2022-482
SUBJECT: 2023 User Fees
RECOMMENDATION:
THAT the proposed fees and charges contained in the 2023 User Fee Schedule attached
to Financial Services Department report FIN -2022-482 be approved; and,
THAT Legal Services staff be directed to prepare the necessary by-laws to amend The
City of Kitchener Municipal Code Chapters for fees and charges pertaining to licensing,
planning applications, building permits and Committee of Adjustment applications.
REPORT HIGHLIGHTS:
• The purpose of this report is to approve the proposed fees and charges contained in the
2023 User Fee Schedule
• For 2023, departments were provided with a guideline to increase fees and charges by 4%,
which is below the rate of inflation
• This report supports the delivery of core services.
BACKGROUND:
A comprehensive review of fees and charges forms part of the annual budget process. Council
normally approves a new fee schedule each fall to provide time to secure Provincial approvals
and by-law amendments before fees are increased effective the beginning of the following year.
Fees and charges are used by municipalities as an alternative to fully funding various programs
and services through property taxes. Fees and charges are often used for programs and services
where customers have a choice whether to use them and, for this reason, the use of fees and
charges tends to be favoured over property taxes alone.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 25 of 135
REPORT:
A comprehensive schedule of proposed fees and charges is attached to this report.
When setting individual rates, departments consider a range of factors including cost recovery,
legislation, rates of other municipalities and market conditions. For 2023, departments were
provided with a guideline to increase fees and charges by 4%. This is higher than a typical
inflationary increase, but is considerably lower than actual inflation which has averaged around
7% in Ontario. Fee increases help offset the escalating costs of materials, supplies, utilities and
labour used to deliver the different programs and services covered by the user fee schedule.
The 2023 user fees will make up approximately 10% of all tax supported revenues which is
consistent with the previous year. Failure to adjust user fees would shift program costs to the
property tax base and necessitate property tax increases above the rate of inflation.
In general, fees are increasing by the guideline amount, or something close to it. Some fee
increases differ from the guideline in order to come to a rounded amount (e.g. nearest $0.25,
$1, or $5). The table below breaks down the change in fees into different categories. This
breakdown shows the majority of fees (971) are increasing by an amount close to the guideline,
while the next largest category is fees being held flat (168).
Summary of Change in User Fees Compared to Prior Year
changeFee
, of Fees
Fee decrease (i.e. less than 0%)
14
1 %
No change (i.e. 0%)
168
12%
Between 0% - 2.99%
36
3%
Between 3% - 4.0%
971
71%
Greater than 4.0%
133
10%
New fee
42
3%
The remainder of the report highlights fee changes that differ from the inflationary guideline.
Highlighted Fee Changes
Engineering (Fees 92 — 230 on the detailed fee schedule)
Project Manager & Engineering Construction Inspector Administration Fee for off-
site servicing works on regional roads (Fee 229 & 230)
These are new fees that apply when development involves the installation of off-site
services on a regional road. Regional staff require the inclusion of Kitchener staff to
ensure consistent communication and coordination of construction activities.
Planning (Fees 231 — 367 on the detailed fee schedule)
Planning has a large number of fee changes as a result of a Planning -Related Application Fee
Review project conducted in 2022. This comprehensive review looked at all Planning -related
Page 26 of 135
fees to ensure they were recovering costs from the work being done and not making this a
burden on existing tax payers. The review included internal stakeholders from across the
corporation (e.g. Engineering, Building, Transportation & Parks) as well as external
stakeholders. External stakeholders feedback was received from the Kitchener Development
Liaison Committee (KDLC) which includes developers, consultants, and lawyers who are
actively involved with building new homes within the city. All fee adjustments have been
reviewed by KDLC who support the changes which will ensure there are adequate staff
resources to process development applications in a timely fashion and increase the available
housing stock within the city.
Parking (Fees 368 — 398 on the detailed fee schedule)
Parking fees have largely remained flat due to the impacts of the pandemic.
Theatre Rate (Fee 380 & 381)
Theatre rates are adjusted every 3 or 4 years. The new rates are effective September 1,
2023.
Electric Charging Station Rate After Fully Charged per hour (Fee 397)
Subtle rate change to relocate charged vehicles allowing other EV owners use of the
charger.
Electric Charging Station Rate per hour - On Street (Fee 398)
Rate is being set higher than in the parking garages because users are not paying for
parking at on street charging locations.
Building (Fees 399 — 498 on detailed fee schedule)
The Building Enterprise is proposing no change to the 2023 permit fees. Favourable results
over the last few years have allowed the Building Stabilization reserve fund to reach its target
level. Building fees were decreased by 10% in 2021.
Fire (Fees 500 — 575 on the detailed fee schedule)
Fire Alarm Monitoring Residential Fees (Fee 542)
Given the financial instability resulting from COVID-19, all residential alarm monitoring
fees will receive a lower fee increase in 2023 to prevent a loss of customers.
Response to Provincial Highways/Truck (Fee 555 - 557)
These hourly rates are set by the province and have been updated to match their
legislated fee.
Dispatch systems administration and analysis (Fee 563)
This fee has been adjusted to align with actual wage recovery.
Neighbourhood Programs & Services (Fees 603 - 836 on the detailed scheduled)
Room Rental (fee 629, 637, 638, 649, 684, 711)
Page 27 of 135
Centres have done a review to ensure all available rental space is being utilized.
Rooms have been measured for pricing and new rooms have been added so the public
has more rental options.
Doon Pioneer Park Room 2 and Room 3 (fee 661, 662)
The fees for these two rooms have been adjusted to be in line with other rooms in other
city facilities to ensure the fees are consistent
Kitchener Memorial Auditorium Complex (KMAC) (Fees 837 — 875 on the detailed
scheduled)
Meeting Room rental — group 3 and group 1 (fees 842 - 843)
Following the same approach as other city facilities, the meeting rooms were measured,
and fees were set based on size. All rooms had previously been set at the same rate.
Affiliated Sports fees (fee 846, 847, 853, 854)
These fees are only increasing by 3% to stay within range of the affiliated rate for
neighbouring municipalities.
Sport Development (Fees 876 - 910 on the detailed fee scheduled)
Affiliated Rates (Fees 880, 887, 889, 892, 893, 897, 899, 901, 903)
These fees are only increasing by 2% to keep in line with other municipalities and our
ice rental discounts.
Cricket Fees (Fee 881-884)
No increased proposed for these fees due to condition of the fields.
Aquatic Programs (Fee 911 — 1024 on the detailed fee schedule)
Summer Swim Pass (Fee 933-935)
This new summer only fee is for use of outdoor pools from opening until pool closure.
Lifesaving Courses and Leadership (Fees 944-947 & 950-957)
These fees have been adjusted to reflect the length of the program set by the Lifesaving
Society.
Standard First Aid/CPR-C recertification (fee 965)
The length of time for this recertification program has been reduced by the Lifesaving
Society, so the User Fee has been reduced to reflect the reduction in hours.
Golf Fees (Fee 1025 — 1069 on the detailed fee schedule)
Classic 9 Doon (Fees 1033-1034)
A one-time discount will be applied to the Doon Valley Classic 9 memberships due to
the ongoing construction that will impact the start of the 2023 season.
Pitch N Putt 9 Hole (Fees 1049-1050)
Page 28 of 135
The pitch N Putt fees for children and seniors are set at no increase for 2023 to
encourage play by offering an affordable introduction to Golf.
Power Cart Rentals (fees 1057-1063)
These fees are being held flat to remain comparable to neighbouring courses.
Cemeteries (Fee 1098 — 1302 on the detailed fee schedule)
A number of fees within Cemeteries services are being adjusted by an amount other than the
4% guideline. The reasons are provided within the detailed schedule and broadly fall into two
categories:
• Fees being held flat as they are legislated — e.g. Provincial License Fee (Fee 1100)
• Fees increasing greater than the guideline of 4% to be more in line with market prices or
to provide cost recovery — e.g. Adult, extra deep (Fee 1102)
There are also two fees set by others as noted below and in the detailed schedule
Regional Services - Adult flush marker (Fee 1259)
This is a set price by the Region of Waterloo based on their funding.
Foundation cost (pre poured in Stoney Ridge and Cremorial Gardens for Crem
Up -no annual increase) (Fee 1166)
Foundation Charge (pre poured for estate columbaria) (Fee 1179)
Increased memorial care and maintenance fee mandated by Bereavement Authority.
Gas Utility (Fees 1304 — 1402 on the detailed schedule)
Gas Meter Set - residential (Fees 1305-1306)
The increase to these fees is due to increased gas meter costs. The increased meter
cost will be phased in over a 5 -year period.
Gas Meter Set — Commercial/Industrial (Fee 1307)
The fee increase is based on the minimum time required to build a large meter set. The
cost of the meter will be phased in over 5 years, starting next year.
5 PSI Meter Set (Fee 1310)
The increase to this fee is based on increased equipment (instruments, regulators and
rotary meters) costs. The fee will be increased gradually over a five-year period, to
approximate the full cost of replacement.
Cage of 5 PSI Meter Set (Fee 1312)
This fee increase is based on current contractor pricing.
Impact Post (100mm and 150mm) for Meter Set Protection (Fees 1315-1314)
This fee increase is based on current contractor pricing and the cost of the bollard.
Residential OPCO Regulator (Over Pressure Cut Off) (Fee 1320)
This fee has been reduced to approximate actual pricing.
Page 29 of 135
Inches and 5 Pounds Delivery Pressure- Light and Large Gas Usage Reduced
Clearance Regulator (Fees 1327-1330)
These new fees cover the cost of special low -clearance regulators when regulator
clearance requirements are not met.
Provide Pulse Output (Fee 1331)
This new fee is a cost recovery of time and materials for a Measurement and Controls
Technician to provide the output information at the customer's request. The pulse output
allows large use customers to get a better understanding of their gas usage.
Large Meter Set Rebuild/Relocation Fee (Fee 1332)
This is a new fee required to cover the cost of rebuilding or moving a meter set.
Initial Third -Party Sub -Metering Admin Fee (Fee 1333)
New fee for customers who have a large KU gas meter, but also have privately installed
sub -meters that flow from the KU meter. The fee covers administrative issues related to
creating site specific response requirements.
Installation of Supervisory Valve on Meter Set (Fee 1334)
New fee to align with other gas utilities. KU will begin installing the emergency generator
valve at all gas meter sets that require one. In the past, the valve has been supplied and
installed by the builder; however, this has resulted in significant support from KU. To
increase efficiency, KU will install these valves going forward.
Rental Gas Water Heater Rates — Yearly (Fees 1335-1377)
The increase in water heater rental rates is due to increased costs in new tanks
(approx. 30% increase), contractor installation and supply costs (increase of 30-50%).
Anti -scald valve rental fee has increased due to increased costs of valves (approx. 17%
increase). A market analysis was conducted and Kitchener Utilities continues to be
$100 to $125 per year lower compared to competitors.
Water Utility (Fees 1403 — 1433 on the detailed schedule)
New Water Meter Fee — 5/8" to 2" (Fees 1420-1423)
This fee increase is due to the increased cost of new water meters.
Sanitary and Stormwater Utility (Fees 1434-1464 on the detailed schedule)
Consolidated Linear Infrastructure Environmental Compliance Approvals (CLI -
ECA) (Fees 1453-1464)
The introduction of the new CLI ECA fees for 2023 are required to cover the mandatory
transition of regulatory responsibility for environmental approvals from the Ministry of
the Environment, Conservation and Parks (MECP) to the City of Kitchener related to
sewage collection and stormwater management. Typical submissions to the Ministry
took approximately 8-12 months to receive approvals, while the new City process is
targeting turnaround times of 4-8 weeks. The fee structure helps offset the staff needs
to implement this new application and review process, complete the administrative
requirements of the program (monitoring, reporting, etc.) and improve review and
Page 30 of 135
approval timelines for applicants. The fees were presented to the Kitchener
Development Liaison Committee (KDLC) in October 2022 and received unanimous
support for the improvement to the ECA process. The reductions in approval timelines
will remove more red tape to get housing and other infrastructure projects related to
sanitary and stormwater constructed.
Legislated Services Fees (Fees 1504 — 1527)
Several fees within Legislated services are being adjusted by an amount other than the 4%
guideline. The reasons are provided within the detailed schedule and include:
• Recommendation of the Development Fee Review - e.g. Committee of Adjustment —
Consent (Fee 1512)
• Rounding to the nearest dollar - e.g. Certificate of Official (Fee 1513)
• Legislated fee — e.g. Information Access Request (Fee 1518-1521)
• Updated for cost recovery — e.g. Marriage License (Fee 1523)
• Adjusting/holding flat to align with neighbouring municipalities — e.g. Death Registration
(Fee 1525)
Revenue Fee (Fees 1653 — 1672 on the detailed schedule)
A number of fees are being held flat as Kitchener's fee is already higher than neighbouring
municipalities.
Utility Certificate (Fee 1655)
This fee has a higher increase as this fee is adjusted to align with the Tax Certificate
fee.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
User fees make up approximately 10% of the revenues used to fund the tax supported
operating budget. The proposed 2023 tax supported budget includes increases to fees and
charges by 4% in most instances, which is well below the current rate of inflation.
COMMUNITY ENGAGEMENT:
INFORM - This report has been listed on the City's website. In addition, the finalized listing will
be posted on the City's website after adoption by Council.
CONSULT - The Planning, Engineering and Building fees were reviewed with development
industry stakeholders at a Kitchener Development Liaison Committee (KDLC) meeting with no
objections.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer (CFO), Financial Services
ATTACHMENTS:
Attachment A — 2023 User Fee Schedule
Page 31 of 135
Page 32 of 135
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Staff Report
r
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Financia( Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: December 12, 2022
SUBMITTED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 ext. 7353
PREPARED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 ext. 7353
WARD(S) INVOLVED: All
DATE OF REPORT: November 21, 2022
REPORT NO.: FIN -2022-488
SUBJECT: 2023 Water Utilities Rates
RECOMMENDATION:
THAT the proposed rates contained in the 2022 Water Utilities Rates schedule attached
to Financial Services Department Report FIN -2022-488 be approved.
REPORT HIGHLIGHTS:
• The combined Water Utilities rate increase is 4.5% and comes into effect January 1St
• Water supply and sewage processing costs from the Region of Waterloo make up nearly
half of the expenses in the City's water and sanitary budgets.
• An increase in stormwater is required to leverage nearly $50M of grant funding through the
Disaster Mitigation and Adaptation Fund (DMAF)
• This report supports the delivery of core services.
BACKGROUND:
The rates for the City's Water Utilities (water, sanitary, and stormwater) are set annually by
Council. A comprehensive, multi-year rate forecast was prepared in 2017 as part of the Water
Infrastructure Program (WIP). The WIP report provided information about the infrastructure in
each of the utilities and provided Council with investment options for both capital replacement
and maintenance spending. Council's consensus from the WIP discussion provided staff with
direction for future investments and rate increases which have been reflected in previous
budgets and is being used to inform the proposed 2023 rate increase. Staff will be updating the
WIP analysis in 2023 to inform future budget years.
REPORT:
Water utility rates support maintenance, operations and capital upgrades to ensure Kitchener's
water, sanitary and stormwater utilities deliver critical services to Kitchener residents and
ensure the safe and reliable provision of drinking water, wastewater collection, and water
quality and quantity control of stormwater runoff to prevent property damage and protect the
natural environment. These services are highly regulated to ensure the proper management
and decision making that supports this critical service delivery. Federal and provincial
legislation include the Canadian Environmental Protection Act, Safe Drinking Water Act, Clean
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 102 of 135
Water Act, Environmental Assessment Act, Canadian Fisheries Act, Ontario Water Resources
Act, as well as requirements specified within other regulations, such as developing and
updating asset management plans.
The proposed combined rate increases for the Water Utilities is 4.5% and will come into effect
on January 1St. The table below summarizes the rate increase by utility with a more detailed
schedule attached to the report.
Summary of Water Utilities Rate Changes
Water
3.2%
Sanitary
2.0%
Stormwater
8.0%
Combined
4.5%
Rate changes in these utilities are a function of four factors:
1) Regional rate changes (Water & Sanitary only)
Roughly half of the expenses for City's water & sanitary utilities are paying the Region for
supplying clean water and processes sewage.
2) Capital impacts
Funding needed for capital projects that create/replace assets that will serve the community
for long periods of time. This includes replacing the underground infrastructure during a full
road reconstruction project (e.g. watermains and sewers for sanitary and stormwater) as well
as replacing water meters, sewage pumping stations, and naturalizing creeks. The
replacement of infrastructure is critical to ensure that disruption of service is minimized to the
maximum extent possible and the City meets the goals of safe, reliable water, sanitary and
stormwater services.
3) Operating impacts
Funding needed for day-to-day costs to operate and maintain the capital investments made
by the utilities and to meet regulatory requirements to operate these systems. This includes
drinking water testing, maintaining shutoff valves so water can be turned off during a main
break, maintaining pumping stations so sewage can get to the treatment plant, and removing
pollutants from stormwater catch basins prior to entering the natural water system.
4) Other impacts
Other impacts include items like changes in amount of water sold, changes in transfers from
reserves, or one-time items.
The proposed combined rate increase of 4.5% is in line with the forecast rate increase from the
original WIP discussion as shown in the table below. The original WIP forecast only went out to
2022, but has been extended by one year as an update was delayed by the COVID pandemic.
This one-year extension was indicated to Council through the 2022 budget process.
Page 103 of 135
History of Combined Water Utilities Rate Increases
In 2021 & 2022, recognizing the pandemic related hardships to ratepayers, the City was able to
achieve lower than forecasted rate increases by only passing on the Regional water and sanitary
rate increases and not advancing important capital and maintenance investments on City
infrastructure. This is not possible for 2023 as the impacts of inflation are significant on operating
and capital expenses for each of the utilities and reserves (funds saved up in prior years to offset
higher costs in future years) are projected to be completely used up within the 5 -year forecast
window.
Regarding stormwater, an 8% rate increase is required to continue to fund the City's 10 -year
commitment which is significantly funded (approximately $50M) by other levels of government
through the Disaster Mitigation and Adaptation Fund (DMAF). Failure to keep up with the
commitment would mean the City would forfeit a large amount of grant funding and not address
underlying issues of potential flooding within the city. A significant portion (75%) of urban areas
in the city lack adequate stormwater management. The DMAF funding will implement important
stormwater management initiatives that will help mitigate the impacts of climate change by
reducing the severity of local flooding that can impact drinking water quality, downstream
environments and public and private properties. It is estimated that for every dollar spent by
Kitchener ratepayers, they receive a projected return of $18 in prevented damage costs.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
The total annual impact of the proposed rate changes is $42 (or 4.5%) as noted in the table
below.
Impact on Homeowner
Assumptions:
• Water & Sanitary: water consumption of 170m3 annually
• Stormwater: Residential Single Detached Medium
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of the
council / committee meeting.
Page 104 of 135
Water
$422
$446
$14 3.2%
Sanitary
$545
$556
$11 2.0%
Stormwater
$197
$225
$17 8.0%
TOTAL
$1,174
$1,227
$42 4.5%
Assumptions:
• Water & Sanitary: water consumption of 170m3 annually
• Stormwater: Residential Single Detached Medium
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of the
council / committee meeting.
Page 104 of 135
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
ATTACHMENTS:
Attachment A — 2023 Water Utilities Rates
Page 105 of 135
Attachment A - 2023 Water Utilities Rates
The minimum charge for water and sanitary sewer is calculated as 1/10 m3 per day
The flat rate sewer charge for properties not connected to the municipal water system is based on
the average annual residential consumption of 170 m3 at the current approved sanitary sewer rate
and is billed monthly
Page 106 of 135
176=R
a t e
2023
Sanitary (per cubic metre)
$
3.2051
$
3.2692
$
0.0641
2.00%
Water (per cubic metre)
$
2.5396
$
2.6209
$
0.0813
3.20%
Stormwater (monthly charge)
Residential Single Detached Small
$
10.41
$
11.24
$
0.83
8.00%
Residential Single Detached Medium
$
17.37
$
18.76
$
1.39
8.00%
Residential Single Detached Large
$
22.83
$
24.66
$
1.83
8.00%
Residential Townhouse/Semi-Detached
$
12.40
$
13.39
$
0.99
8.00%
Residential Condominium
$
6.91
$
7.46
$
0.55
8.00%
Multi- Residential duplex
$
13.90
$
15.01
$
1.11
8.00%
Multi- Residential triplex
$
20.89
$
22.56
$
1.67
8.00%
Multi- Residential four-plex
$
27.77
$
29.99
$
2.22
8.00%
Multi- Residential five-plex
$
34.76
$
37.54
$
2.78
8.00%
Multi -Residential (>5 units)
$
3.49
$
3.77
$
0.28
8.00%
Non -Residential Smallest
$
33.22
$
35.88
$
2.66
8.00%
Non -Residential Small
$
88.84
$
95.95
$
7.11
8.00%
Non -Residential Medium -Low
$
232.78
$
251.40
$
18.62
8.00%
Non -Residential Medium -High
$
679.50
$
733.86
$
54.36
8.00%
Non -Residential Large
$ 1,646.86
$ 1,778.61
$
131.75
8.00%
Non -Residential Largest
$ 3,535.45
$ 3,818.29
$
282.84
8.00%
The minimum charge for water and sanitary sewer is calculated as 1/10 m3 per day
The flat rate sewer charge for properties not connected to the municipal water system is based on
the average annual residential consumption of 170 m3 at the current approved sanitary sewer rate
and is billed monthly
Page 106 of 135
Staff Report
Infrastructure Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: December 12, 2022
SUBMITTED BY: Greg St. Louis, Director, Gas & Water Utilities, 519-741-2600 ext. 4538
PREPARED BY: Khaled Abu-Eseifan, Manager, Gas Supply and Engineering, 519-741-
2600 ext. 4826
WARD(S) INVOLVED: All Wards
DATE OF REPORT: December 5, 2022
REPORT NO.: INS -2022-486
SUBJECT: 2023 Natural Gas Rates
RECOMMENDATION:
That the supply component of the natural gas rate be decreased to 20.85 cents per
cubic meter from 21.45 cents per cubic meter for system gas customers of Kitchener
Utilities effective January 1, 2023; and,
That Kitchener Utilities' natural gas variable and fixed delivery rates be approved as
proposed in report INS -2022-486 - Attachment A, for all Kitchener delivery customers
effective January 1, 2023; and further,
That the supply rate of natural gas be reviewed quarterly against market conditions and
necessary changes to be brought forward for Council approval.
REPORT HIGHLIGHTS:
• The purpose of this report is to provide an update and recommendations for the natural gas
supply and delivery rates of Kitchener Utilities for 2023
• The key finding of this report is that the supply rate is recommended to decrease from 21.45
cents per cubic meter to 20.85 cents per cubic meter to respond to slightly lower market
prices in updated forecasts. The report also recommends increasing delivery rate
components as proposed in attachment A to cover various capital, operations and financial
requirements
• The financial implications to Kitchener Utilities residential customers will be approximately
$81 or 10% during 2023 over the 2022 natural gas rates
• This report supports the delivery of core services
BACKGROUND:
Kitchener Utilities (KU) is committed to delivering natural gas using a rate setting approach that
focuses on rate stability for our customers. We follow the Council endorsed Gas Purchase Policy
for the procurement of natural gas. The policy outlines how much of our natural gas portfolio can
be purchased in advance and on the spot market. It provides the ability to blend our natural gas
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 107 of 135
rate with fixed and market price natural gas. The blending of fixed and market price natural gas
is used to reduce volatility in prices to keep rates stable for customers. It is also used to respond
to significant changes in market prices within a reasonable time frame. This is a key feature
which softens spikes in market prices and provides longer range rate stability while allowing KU
to respond to long term sharp market changes.
Other natural gas utilities, regulated by the Ontario Energy Board, purchase natural gas on the
market and adjust rates quarterly, due to the volatility of natural gas. This strategy provides rates
that are more reflective of market prices, but also includes more frequent rate fluctuations.
The natural gas market is impacted by the supply and demand; in the past few years, both of
the factors were balanced and predictable. However, recent events have changed that balance
and created uncertainty in the supply and demand trends. Events such as global disruption to
natural gas supply due to the war in Ukraine, extreme weather conditions and increased demand
for economic recovery have resulted in a volatile and increasing market prices. They also
increased the uncertainty in market forecasts, made forecasting much harder and increased the
margin of error in all forecasts and predictions.
Kitchener Utilities last natural gas supply rate increase was in August 2022 and the plan was to
review the prices more frequently due to the anticipated volatility in market prices. This report
aims to revise the rates based on updated market conditions and the requirements to deliver
safe and reliable natural gas for Kitchener Utilities customers. Kitchener Utilities is in a very good
storage position entering the heating season and the proposed changes aim to timely adjust
rates to reduce future impacts, avoid significant rate spikes and ensure reasonable rates are
maintained for longer periods of time.
REPORT:
Kitchener Utilities natural gas rates have two components: gas supply, and gas delivery. The
gas supply program is responsible for the purchase of the gas commodity and transportation of
natural gas to Kitchener and is a pass-through cost program. The delivery program is responsible
for delivery of natural gas to customers. This includes billing, meter reading, capital,
maintenance and operating costs of the distribution system.
The following are key highlights of this natural gas rate change report:
• Natural gas supply rate decrease for system gas customers;
• Delivery rate increases as proposed in Attachment A;
• An average residential customer will see an overall rate increase of approx. $81 or 10%,
for the period January 1 st, 2023 to December 31 st, 2023 with the proposed rate changes
Gas Supply:
The natural gas market prices usually fluctuate with supply, demand and weather factors.
Kitchener Utilities relies on its purchasing policy to create a blended portfolio of hedging (fixed
price contracts) and market price purchases. Along with the purchase policy, KU relies on the
stabilization reserve to absorb sudden price increases and soften rate spikes. The recent
increase in market prices was significant and risked driving the stabilization reserve into the
negative. Given the uncertainty and high volatility in market prices, a rate increase in August of
2022 was needed to ensure sufficient funding was available and to maintain the stabilization
reserve within the approved limits, by the end of 2022. Although gas prices increased
Page 108 of 135
significantly in recent months, the increase was below forecasts. Additionally, KU used a
measured approach to secure reasonably priced deals for its 2022 requirements. This helped
KU in keeping the stabilization reserve at a very good balance at the end of 2022.
As the high prices, high volatility and uncertainty are expected to continue into 2023, staff
recommend keeping the stabilization reserve balance at the maximum limit, continue monitoring
market conditions and revise the supply rate as needed. Staff also recommend reducing the
supply rate from 21.45 cents per cubic meter to 20.85 cents per cubic meter effective January
1St, 2023 to reflect the fact that actual market prices were slightly lower than forecasts.
Figure 1 below shows historical and forecasted supply rate changes for Kitchener Utilities
compared with market prices and Enbridge rates. KU's gas supply rate continues to be
significantly lower that Enbridge's gas supply rate for 2023. The forward market prices are
provided by KU's consultants. These consultants are natural gas subject matter experts who are
hired to provide natural gas market analysis, forecasts, gas models and assist in purchasing
KU's natural gas portfolio.
Figure 1: Natural gas supply rates comparison
Gas Delivery:
There are two components to the delivery charges- a daily fixed charge, and a variable rate.
There are four Delivery Rate Groups- M1, M2, M4 and M5, (complete definitions are in
Attachment A). These rates service customers of different volumetric requirements. The
Page 109 of 135
NG Market Price vs KU Gas Rate vs Enbridge Gas Rate
50.0-
I Market
Forward
45.0
resp
,
market
policy
'
price
40.0
I
1
�
I
I
,
11
35.0
It
'1
30.0
E
1 1
25.0
t
CL
L
4n
20.0
15.0
10.0
I �
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,
,
5.0
-
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I
I
,
,
,
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I
,
,
00 dl O r -I N
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O r -I c -I rl r -I c -I rl r -I c -I rl r -I N
r -I N M qt Lr)lD �
N N N N N N N
— — — — —
7 7 7 7 7
— — — — — —
7 7 7 7 7 7
— — — — — — — — — — — —
7 7 7 7 7 7 7 7 7 7 7 7
— —
7 7
— — — — —
7 7 7 7 7
-A -1 -A
-1 -1 c-1 c-1 -I -I
-A c-1 -A c-1 -A c-1 -1 r- I -A c-1 -A c-1
c-1 c-1 c-1 r- I -A
KU Gas Rate
- cents per m3
--- Enbridge Gas rate - cents per m3
Market
Figure 1: Natural gas supply rates comparison
Gas Delivery:
There are two components to the delivery charges- a daily fixed charge, and a variable rate.
There are four Delivery Rate Groups- M1, M2, M4 and M5, (complete definitions are in
Attachment A). These rates service customers of different volumetric requirements. The
Page 109 of 135
proposed delivery components of the natural gas rates starting January 1St, 2023 are shown in
Attachment A. The key drivers of delivery rate changes are the following:
• Additional resources that are needed to meet new regulatory requirements
• Critically low delivery stabilization reserve that need to be increased to mitigate financial
risks to the gas utility and its customers
• Inflationary increases to operating and capital expenditures
Comparison with Enbridge:
For an average system gas residential (Ml) customer, the total KU gas bill cost in 2022 was
14% lower than the cost of similar customer in Enbridge franchise area. It is expected that the
total gas cost for Kitchener Utilities customers will continue to be lower than Enbridge in 2023
as their gas supply rate is forecasted to remain high although it has not been determined yet.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
For an average system gas residential (M1) customer consuming 2,000 cubic meters annually,
the proposed natural gas rates result in an increase to the overall annual bill by approx. $81 for
the period January 1, 2023 to December 31, 2023. This excludes the Federal Carbon Charge.
The increase in delivery rates is necessary to mitigate financial risks to the delivery stabilization
reserve. The stabilization reserve balance is forecasted to be below the 2022 budget estimate.
This reserve is needed to absorb variances in revenues due to weather factors, (colder weather
increases revenue and warmer weather decreases revenue) and to maintain rate stability
through out the year. The 5 -year operating budget projection for gas delivery is presented in
Attachment B.
The natural gas supply stabilization reserve balance is forecasted to be higher than the 2022
budget estimate and therefore, a decrease in the supply rate intends to keep the balance towards
the maximum benchmark of the reserve. The supply stabilization reserve is needed to absorb
fluctuations in market prices and soften rate spikes. Due to uncertainty and volatility of gas
markets, this reserve needs to be at the maximum balance to avoid rate shock for KU customers.
The 5 -year operating budget projection for gas supply is presented in attachment C.
Kitchener Utilities supports the Waterloo Region Energy Assistance Program. This program
offers support to customers facing challenges paying their utility bills. The program is
administered by the Region of Waterloo and offers support for both electricity and natural gas
bills.
COMMUNITY ENGAGEMENT:
INFORM - Kitchener Utilities will work with the Corporate Communications and Marketing
Division to ensure that media outlets are provided with a press release to inform customers. An
insert will be distributed with utility bills along with posting information on the Kitchener Utilities'
and City websites. An on -bill message will also appear in January 2023 natural gas bills.
This report has been posted to the City's website with the agenda in advance of the council /
committee meeting.
Page 110 of 135
PREVIOUS REPORTS/AUTHORITIES:
• INS -2021-13 2022 Natural Gas Rates
• INS -2022-282 August 2022 Gas Supply Rate Change
APPROVED BY: Denise McGoldrick, General Manager Infrastructure Services.
ATTACHMENTS:
Attachment A — Natural Gas Rates
Attachment B — 5 -year operating budget projection — Gas Delivery
Attachment C — 5 -year operating budget projection — Gas Supply
Page 111 of 135
ATTACHMENT A
CORPORATION OF THE CITY OF KITCHENER
NATURAL GAS
GENERAL SERVICE RATE M1
Applicability
To residential and non -contract commercial and industrial customers that consume less than 50,000 m3 per year.
Rate
Daily Fixed Charge
$ .7600
SUPPLY COMMODITY VARIABLE DELIVERY NET RATE
¢/m3 ¢/m3 ¢/m3
20.8500 9.2371 30.0871
Meter Readings
Gas consumption by each customer under this rate schedule shall be determined by periodic meter readings, provided that in
circumstances beyond the control of the Corporation, such as strikes or non -access to a meter, The Corporation may estimate
the monthly consumption between the meter readings and render a monthly bill to the customer.
Effective
January 1, 2023
Policv Relating to Terms of Service
1) Gas purchased under this rate schedule shall not be resold, directly or indirectly by the customer, unless resold as "motor
vehicle fuel gas", as that term is defined in Ontario Regulation 805/82.
2) Customers who temporarily discontinue service during any twelve consecutive months without payment of the monthly
fixed charge for the months in which the gas is temporarily disconnected shall pay for disconnection and reconnection.
Page 112 of 135
CORPORATION OF THE CITY OF KITCHENER
NATURAL GAS
GENERAL SERVICE RATE - M2
Applicability
To residential and non -contract commercial and industrial customers that consume 50,000 m3 and more per year.
Rate
Daily Fixed Charge
And
$2.4500
SUPPLY COMMODITY VARIABLE DELIVERY NET RATE
RATE
¢/m3 ¢/m3 ¢/m3
20.8500 8.0023 28.8523
Meter Readings
Gas consumption by each customer under this rate schedule shall be determined by periodic meter readings, provided that in
circumstances beyond the control of the Corporation, such as strikes or non -access to a meter, The Corporation may estimate
the monthly consumption between the meter readings and render a monthly bill to the customer.
Effective
January 1, 2023
Policy Relating to Terms of Service
2) Gas purchased under this rate schedule shall not be resold, directly or indirectly by the customer, unless resold as "motor
vehicle fuel gas", as that term is defined in Ontario Regulation 805/82.
3) Customers who temporarily discontinue service during any twelve consecutive months without payment of the monthly
fixed charge for the months in which the gas is temporarily disconnected shall pay for disconnection and reconnection.
Page 113 of 135
CORPORATION OF THE CITY OF KITCHENER
NATURAL GAS
FIRM INDUSTRIAL AND COMMERCIAL CONTRACT RATE - M4
Applicability
To a customer who enters into a contract for a minimum term of one year, that specifies a daily contracted demand (CD) as follows:
Between 2,400 m3 and 140,870 m3.
Rate
1. Bills will be rendered monthly and shall be the total of:
i) A Fixed Deman(
ii) A Variable Deli
I Charge:
First 8,450 m3 of the daily contracted demand, 63.9000 ¢/m3
Next 19,700 m3 of the daily contracted demand, 27.8000 ¢/m3
All m3 over 28,150m3 of the daily contracted demand, 16.8000 ¢/m3
�cry Charge (incl. storage):
First 422,250 m3 delivered per month 2.0000 ¢/m3
Next volume equal to 15 days use of CD 2.0000 ¢/m3
Remainder of volumes delivered in the month 2.0000 ¢/m3
iii) A Monthly Gas Supply Char e.
Supply Commodity 20.8500 O/m3
2. Over -run Charge
Authorized overrun gas is available provided that it is authorized by the Corporation in advance. The Corporation will not
unreasonably withhold authorization. Overrun means gas taken on any day in excess of 103% of contracted daily demand.
Authorized overrun will be available April l through October 31, and will be paid for at the rate of 4.5813 ¢/m3 for the delivery
and, if applicable, the federal carbon charge and the total gas supply rate of 20.85 ¢/m3.
Unauthorized overrun in any month shall be paid for at the rate of 9.2371 ¢/m3 for the delivery and, if applicable, the federal
carbon charge and the total gas supply charge for system -supplied volumes at the rate of 20.85 ¢/m3.
3. Minimum Annual Charge
In each contract year, the customer shall purchase from the Corporation or pay for a minimum volume of gas equivalent to
150 days use of contracted demand. Overrun gas volumes will not contribute to the minimum volume. In the event that the
customer shall not take such minimum volume, the customer shall pay an amount equal to the deficiency from the minimum
volume times a rate of 2.497 ¢/m3, and if applicable, a total gas supply charge of 20.85 ¢/m3.
In the event that the contract period exceeds one year, the annual minimum volume will be pro -rated for any part year.
Effective
January 1, 2023
Policy Relating to Terms of Service
Gas purchased under this rate shall not be resold, directly or indirectly by the customer.
Page 114 of 135
CORPORATION OF THE CITY OF KITCHENER
NATURAL GAS
INTERRUPTIBLE INDUSTRIAL AND COMMERCIAL CONTRACT RATE - M5
Applicability
To a Customer who:
A) Enters into a contract for a minimum term of one year that specifies a daily contracted demand between 2,400 m3 and 140,870
m3 inclusive and,
B) Has an alternate fuel supply and combustion system available.
Rate
1. The price of all gas delivered shall be determined on the basis of the following schedules:
i) Monthly Fixed Charge $750.00
a. and
ii) Delivery Charge (incl. storage):
Dailv Contracted Demand Level (CD
2,400 m3 < CD <
17,000 m3
3.5539 ¢/m3
17,000 m3 < CD <
30,000 m3
2.7611 ¢/m3
30,000 m3 < CD <
50,000 m3
2.6859 ¢/m3
50,000 m3 < CD <
70,000 m3
2.6332 ¢/m3
70,000 m3 < CD <
100,000 m3
2.5955 ¢/m3
100,000 m3 < CD <
140,870 m3
2.5584 ¢/m3
iii) A Monthly Gas Supply Charge:
Supply Commodity 20.85000 ¢/m3
2. Over -run Charge
Overrun gas is available provided that it is authorized by the Corporation in advance. The Corporation will not unreasonably
withhold authorization. Overrun means gas taken on any day in excess of 105% of contracted daily demand.
Unauthorized overrun gas taken in any month shall be paid for at the rate of 9.2371 ¢/m3 for the delivery and, if applicable,
the federal carbon charge and the total gas supply charge for system -supplied volumes at the rate of 20.85 ¢/m3.
Unauthorized Overrun Non -Compliance Rate:
Unauthorized overrun gas taken any month during a period when a notice of interruption is in effect shall be paid for at the
rate of 234.72 ¢/m3 ($60 per GJ) for the delivery.
3. Minimum Annual Charge
In each contract year, the customer shall purchase from the Corporation or pay for a minimum volume of gas equivalent to
150 days use of contracted demand. Overrun volumes will not contribute to the minimum volume. In the event that the
customer shall not take such minimum volume, the customer shall pay an amount equal to the deficiency from the minimum
volume multiplied by 4.0299 ¢/m3 for the delivery charge and if applicable, a gas supply charge of 20.85 ¢/m3.
Effective
January 1, 2023
Policy Relating to Terms of Reference
Gas purchased under this rate shall not be resold, directly or indirectly by the customer.
Page 115 of 135
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Staff Report
r
NJ :R
Financia( Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: December 12, 2022
SUBMITTED BY: Ryan Hagey, Director of Financial Planning and Reporting, 519-741-
2200 Ext 7353
PREPARED BY: Debbie Andrade, Manager of Budgets, 519-741-2200 Ext 7114
WARD(S) INVOLVED: All
DATE OF REPORT: November 7, 2021
REPORT NO.: FIN -2022-484
SUBJECT: September 2022 Variance Report
RECOMMENDATION:
For Information
REPORT HIGHLIGHTS:
The purpose of this report is to provide an update on financial results for City operations.
Tax supported operations are projecting a surplus of $1,178,000.
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 2022 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 2022 will be a surplus of $1,178,000.
The major contributors to the overall positive variance are the projected surpluses in investment
income, penalties and interest, facilities management and gapping savings. These positive
variances are offset in part by deficits in Sport, Emergency Operations Centre and the May 2022
Storm Event. As COVID-19 related restrictions carried into 2022 causing facility closures and
reduced programming these areas continued to be impacted for the first half of 2022 with
considerable losses in income for room rentals, admissions, and registration fees. Furthermore,
on May 21, 2022 the City was impacted by the severe windstorm which occurred across Ontario
causing damage and requiring additional cleanup costs primarily in Forestry.
More details about each of the City's tax supported divisions are provided in the report below
and in Schedule 1.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 118 of 135
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 has an unfavourable variance due to lower than anticipated revenues because
of reduced monthly and hourly parking demands related to hybrid working environments. Additionally,
Golf has an unfavourable variance due to increased expenses resulting from unexpected food and
beverage equipment repairs.
More details about each of the City's enterprises are provided in the report below and in Schedules
2-8.
In 2020/2021, the City received a total of $20AM in Safe Restart & COVID-19 Recovery
funding from the Federal and Provincial governments. The City used $9.04M of this funding to
address its 2020 deficits and $8.22M to fund its 2021 deficits. This means the City is carrying
forward $3.14M of funding and will be sufficient to fund the year-to-date deficit in the Parking
and Golf enterprise without requiring a draw from the City's stabilization reserve. Any carryover
funding will help the City deal with any continuing negative financial impacts of COVID-19 that
extend into 2022 and beyond.
The table below shows the amount of Safe Restart funding received, how it was applied, and
the amounts remaining to be employed in 2022.
Safe Restart Funding Continuity
N
1
11
Actual
Deficit
Deficit
�
i P
Mederal
1
Provincial
1Total-
Funding
Available
Tax
S5,062.000
S
4.651.260
S
9.713,260
S
8.472.000
51,692,762
52,441.171
S12.605,933S2.892.673
Parking
52,263,000
S
3,060,435
S
5.323.435
$
2.852,000
S
673.139
'$2.030.861
S 5.556.000
S 232.565
Golf
S
596,000
S
509,128
S
1,105,128
$
619,000
S
146.099
$
349,901
3 1,115,000
S 9.872
Utilities
S1.119.000
S
-
S
1.119.000
S
1,119.000
S
-
S 1,119.000
S
Total
59,040,000
S
8.220.823
S 17.260,823
S 13.062.000
52,512.000
54.821.933
520.395.933
53,135,110
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.
Operating Fund — Tax Base (Schedule 1)
Staff is projecting the City's tax supported results for 2022 will be a surplus of $1,178,000 .
Significant Proiected Variances (over $200, 000)
Community Services Department:
• Neighbourhood Programs & Services is projecting a deficit of $230,000 due to reduced
revenues as programs and rentals were negatively impacted due to COVID-19
restrictions in early 2022.
Sport is projecting a deficit of $2,180,000 due to reduced revenues as programs and
rentals were negatively impacted from the COVID-19 restrictions in early 2022.
Page 119 of 135
Corporate Services Department:
• Corporate Communications is projecting a deficit of $230,000 due to reduced
advertising and sponsorship revenue
Development Services Department:
• Planning is projecting a surplus of $220,000 due to higher than anticipated revenues for
site plans.
Engineering is projecting a surplus of $250,000 because of increased revenues from
site plans and service charges.
Infrastructure Services Department:
• Facilities Management is projecting a surplus of $850,000 due to reduced utility costs
compared to budget, as some City facilities closed and/or operated at reduced capacity
due to COVID-19 restrictions in early 2022.
Parks and Cemeteries is projecting a deficit of $360,000 due to a significant winter as
well as increased costs associated with the downtown operations and increasingly
elevated demand for maintenance to playground equipment.
• Operations — Roads and Traffic is projecting a surplus of $375,000 which relates to
external billables stemming from heavier winter billings.
General Expense:
• Gapping is projecting a surplus of $2,965,000 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).
• Contract Services is projecting a deficit of $215,000 due to increased costs related to
the existing contract with the Humane Society.
Emergency Operations Centre is projecting a deficit of $785,000 due to the COVID-19
pandemic. Example of costs include:
o Purchases of personal protective equipment and other health & safety supplies
o Staff overtime related to managing the City's COVID-19 response
o Additional cleaning and minor retrofits of City facilities
May 2022 Storm Event is projecting a deficit of $1,100,000 due to the additional cleanup
costs related to the severe windstorm which occurred on May 21, 2022 across Ontario.
These costs will be transferred to the weather control reserve at year end.
General Revenues:
• Investment income is projecting a surplus of $650,000 due to rapid Bank of Canada rate
increases since March 2022.
Penalties and Interest is projecting a surplus of $650,000 due to an increase in overall
property tax receivable balances.
Page 120 of 135
Enterprises — (Schedules 2 to 8)
For the period of January to June, total enterprise results are $3.8M better than budget. Five of
the City's seven enterprises are projecting surpluses. Details of each enterprise are noted
below.
Building Enterprise (Schedule 2)
The Building Enterprise is essentially on budget, with a small favourable variance of $8,000.
Lower than budgeted revenues as a result of a decline in the number of new construction
builds is completely offset by due to lower than budgeted expenses due to staff vacancies.
Golf Enterprise (Schedule 3)
The Golf Enterprise has an unfavourable variance of $71,000 primarily due to higher than
budgeted expenses in food and beverage equipment and a change in the proshop model.
Parking Enterprise (Schedule 4)
Parking
($1,077)
`ylL I LI `wu%J /)
The Parking Enterprise has an unfavourable variance of $865,000 as revenues are
significantly lower than budget due to reduced monthly and hourly parking demands related to
new hybrid working environments. Any deficit realized at year end will be funded from the Safe
Restart Funding as the negative variance is as a result of the COVID-19 pandemic.
Water Utility (Schedule 5)
Page 121 of 135
The Water Utility has a favourable variance of $813,000 due to higher than budgeted volume
in water sales as a result of a dry spring/summer in addition to lower than budgeted
administration costs due to a higher allocation of costs to capital.
Sanitary Sewer Utility (Schedule 6)
Sanitary Sewer
$6,037
$807
$5,230
The Sanitary Sewer Utility has a favourable variance of $5,230,000. Sewer surcharge
revenues are higher than budgeted, which is consistent with increased volume sales also
noted in the Water utility. Additionally, sewage processing costs were far less than budget due
to the dry spring and early summer. These favourable variances are slightly reduced by
increased maintenance costs from unforeseen emergency repair costs for the Ottawa Street
trunk sanitary sewer.
Stormwater Utility (Schedule 7)
Stormwater
The Stormwater Utility has a favourable variance of $275,000 as a result of higher than
budgeted stormwater fee revenues from increased development and lower than budgeted
costs related to staff savings.
Gas Utility (Schedule 8)
Gas Utility (Total) ($760) ($2,562) $1,802
Gas Delivery ($1,439) ($2,061) $622
Gas Supply $679 ($500) $1,179
The Gas Utility (Total) has a favourable variance of $1,802,000. The majority of this variance is
due to gas sales revenues higher than budget from increased gas consumption because of the
cold winter at the beginning of the year.
Investment Report (Schedule 9)
All investments made were in accordance with the City's investment policy. Short-term
investment yields to date have averaged 1.78%, and are above the average interest rate of
1.32% for all of 2021.
Page 122 of 135
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.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
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 123 of 135
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