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HomeMy WebLinkAboutCIS Agenda - 2023-03-061 KiTc�ivER Community and Infrastructure Services Committee Agenda Monday, March 6, 2023, 2:00 p.m. - 4:30 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 M. Johnston Vice -Chair: Councillor D. Schnider 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 Uncollectable Miscellaneous Receivable Accounts Write -Off December 3 2022, FIN -2023-032 3.2 Uncollectable Utility Receivable Account Write -Off December 2022, FIN- 6 2023-033 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 8:30 a.m. on March 6, 2023, in order to participate electronically. 4.1 None. 5. Discussion Items 5.1 Drinking Water Quality Management Standard 15 m 9 (DWQMS) Re -Endorsement of the Operational Plan, INS -2023-012 (Staff will provide a 5 -minute presentation on items 5.1, 5.2 and 5.3) 5.2 Drinking Water Quality Management Standard 5 m 37 (DWQMS): Management Review Summary for 2022, INS -2023-011 5.3 Summary Water Report - 2022, INS -2023-010 5 m 73 6. Information Items 6.1 Inclusionary Zoning for Affordable Housing: Status Update, DSD -2023- 78 071 7. Adjournment Marilyn Mills Committee Administrator Page 2 of 119 Staff Report r NJ :R Financia( Services Department www.kitchener.ca REPORT TO: Community and Infrastructure Services Committee DATE OF MEETING: March 6, 2023 SUBMITTED BY: Saleh Saleh, Director, Revenue, 519-741-2200 ext. 7346 PREPARED BY: Marcy Ignor, Manager, Utility billing and Customer Service, 519-741- 2200 ext. 7460 WARD(S) INVOLVED: ALL DATE OF REPORT: January 6, 2023 REPORT NO.: FIN -2023-032 SUBJECT: Uncollectable Miscellaneous Receivable Accounts Write -Off December 2022 RECOMMENDATION: That uncollectable Miscellaneous Receivable Accounts amounting to $8,781 be written off against the Allowance for Doubtful Receivables. REPORT HIGHLIGHTS: • As per council policy, approval from Council approval is required for accounts to be written - off and sent to an outside collection agency for third party collection efforts. • Staff have worked diligently in attempting to collect on these accounts but have not been successful in the process. • This report recommends that accounts totalling $8,781 be written off and forwarded to an outside collection agency. BACKGROUND: As per council policy FIN -FEE -517 Utility and Miscellaneous Receivable policy, approval from Council is required for accounts to be written -off and sent to an outside collection agency for third party collection efforts. This report represents Miscellaneous Receivables accounts that are deemed to be uncollectable by collections staff. Miscellaneous Receivables represent services that are generally billed through the City's financial system (SAP). Examples of miscellaneous receivables include Direct Detect for alarm monitoring, Parking and Cemetery sales. Property tax and utility accounts are not included in miscellaneous receivables. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 3 of 119 REPORT: Staff are recommending that accounts totalling $8,781 be written off and forwarded to a collection agency. Staff have worked diligently in attempting to collect on these accounts but have not been successful in the process. The collection procedures staff have undertaken include: • Sending customers statements and demand letters. • Verbal request by telephone or in person. • Negotiating revised payment terms. • Applying any deposits held to the outstanding amounts. • Transferring uncollectable items to the customer's property tax account were permitted by the Municipal Act. The current amount being recommended to be written off relates to 20 customer accounts for services provided in the following areas: Cemeteries 1,398 Fire 69 Parking 6,039 Operations 333 Utilities 942 Tota I 8,781_ The cumulative amount of write-offs identified in this report equal $8,781 and relate to the years 2021 and 2022. The cumulative write-offs are shown in the table below and the average is well below the targeted upper limit for write-offs set at 0.3% previously approved by Council. Page 4 of 119 STRATEGIC PLAN ALIGNMENT: The recommendation of this report supports the achievement of the city's strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: The uncollectable accounts will be written off against the Allowance for Doubtful Receivables 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: • FIN -FEE -517 Collections- Utility and Miscellaneous Receivable APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Page 5 of 119 Cumulative Write-offs for the Year Total $ Invoiced Year to Date Write-offs as a % of Sales 2022 $ 12,791 $ 30,280,755 0.0422% 2021 $ 38,573 $ 27,380,864 0.1409% 2020 $ 55,769 $ 23,088,516 0.2415% 2019 $ 44,077 $ 26,057,740 0.1692% 2018 $ 54,464 $ 23,132,498 0.2354% Tota 1 $ 205, 674 $ 129, 940, 373 0.1583% STRATEGIC PLAN ALIGNMENT: The recommendation of this report supports the achievement of the city's strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: The uncollectable accounts will be written off against the Allowance for Doubtful Receivables 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: • FIN -FEE -517 Collections- Utility and Miscellaneous Receivable APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Page 5 of 119 Staff Report r NJ :R Financia( Services Department www.kitchener.ca REPORT TO: Community and Infrastructure Services Committee DATE OF MEETING: March 6, 2023 SUBMITTED BY: Saleh Saleh, Director, Revenue, 519-741-2200 ext. 7346 PREPARED BY: Marcy Ignor, Manager Utility billing and Customer Service, 519-741- 2200ext 7460 WARD(S) INVOLVED: ALL DATE OF REPORT: January 6, 2023 REPORT NO.: FIN -2023-033 SUBJECT: Uncollectable Utility Receivable Account Write -Off December 2022 RECOMMENDATION: That uncollectable utility accounts amounting to $80,371 be written off against the allowance for doubtful utility receivables. REPORT HIGHLIGHTS: • As per council policy, approval from Council is required for accounts to be written -off and sent to an outside collection agency for third party collection efforts. • Staff have worked diligently in attempting to collect on these accounts but have not been successful in the process. • This report recommends that accounts totalling $80,371 be written off and forwarded to an outside collection agency. BACKGROUND: As per council policy FIN -FEE -517 Utility and Miscellaneous Receivable policy, approval from Council is required for accounts to be written -off and sent to an outside collection agency for third party collection efforts. Utilities receivable represent invoices generally billed through the City's SAP utility billing System. The majority of these invoices relate to usage for Gas and Water. The current report represents write-off of utility accounts which have been deemed to be uncollectible up to the end of December 31, 2022. REPORT: Staff are recommending that accounts totalling $80,371 be written off and forwarded to the collection agency. Staff have worked diligently in attempting to collect on these accounts but *** 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 119 have not been successful either due to the customer declaring bankruptcy or having no forwarding address. Any tenant deposits previously received on the uncollectible accounts have been applied to reduce the debt outstanding. A total of 162 customer accounts are being recommended to be written off and transferred to a third -party collection agency. The collection procedures staff have undertaken include: • Sending customers statements and demand letters. • Verbal request by telephone or in person. • Negotiating revised payment terms. • Applying any deposits held to the outstanding amounts. • Transferring uncollectable items to the customer's property tax account where permitted by the Municipal Act. The cumulative amount of utility write-offs identified in this report equal $80,371 and relate to the years 2020, 2021 and 2022. The cumulative write-offs are shown in the table below and the average is well below the targeted upper limit for write-offs set at 0.3% previously approved by Council. A five-year summary of write-offs is included in the table below. Utility Accounts Write-off Cumulative Total $ Invoiced Write-offs as a Write-offs for the Year Year to Date % of Sales 2022 101,429 $ 233, 620, 592 0.0434% 2021 $ 156,012 $ 216, 217, 805 0.0722% 2020 $ 219,812 $ 213, 604, 976 0.1029% 2019 $ 216,675 $ 202, 658, 095 0.1069% 2018 $ 261,616 $ 211, 483, 209 0.1237% Tota 1 $ 955,544 $ 1, 077, 584, 677 0.0887% STRATEGIC PLAN ALIGNMENT: The recommendation of this report supports the achievement of the city's strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: Page 7 of 119 The uncollectable accounts will be written off against the Allowance for Doubtful Utility Receivables 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: • FIN -FEE -517 Collections- Utility and Miscellaneous Receivable APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Page 8 of 119 Staff Report Infrastructure Services Department www.kitchener.ca REPORT TO: Community and Infrastructure Services Committee DATE OF MEETING: March 6, 2023 SUBMITTED BY: Greg St. Louis, Director, Utilities, 519-741-2600 ext. 4538 PREPARED BY: Angela Mick, Manager — Quality Management and Water Programs, 519- 741-2600 ext. 4408 WARD(S) INVOLVED: All Wards DATE OF REPORT: January 18, 2023 REPORT NO.: INS -2023-012 SUBJECT: Drinking Water Quality Management Standard (DWQMS) Re - Endorsement of the Operational Plan RECOMMENDATION: That the Drinking Water Quality Management attached to report INS -2023-012 be re -endorse Water Act, 2002 and Regulation 188/07. REPORT HIGHLIGHTS: Standards (DWQMS) Operational Plan d in accordance with the Safe Drinking The purpose of this report is to obtain written re -endorsement of the Drinking Water Quality Management Standard (DWQMS) Operational Plan as per the requirements of the DWQMS This report supports the delivery of core services. BACKGROUND: The DWQMS, under the Safe Drinking WaterAct, 2002 and Regulation 188/07, requires the City of Kitchener to be licensed to operate and maintain Kitchener's Water Distribution System. One of the licensing requirements is the preparation of a Quality Management System (QMS) and Operational Plan. The QMS is based on a "Plan -Do -Check -Improve" methodology that is similar to other international quality standards. The "Plan" requirement of the QMS specifies policies and procedures that must be documented in the Operational Plan for the drinking water system and the "Do" requirements specifies the policies and procedures that must be implemented. "Check": and "Improve" requirements of the standards are reflected in the requirements to conduct internal audits, management reviews and to continually improve the system. Kitchener has obtained a Municipal Drinking Water Licence and has the required elements in place: Drinking Water Works Permit, Financial Plan, accreditation as an Operational Authority, and an audited Operational Plan. *** 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 119 One of the requirements of the DWQMS is for the Owner to provide a written endorsement of the Operational Plan. The Operational Plan was initially endorsed by Council in 2008 (FIN -08- 1130) and re -endorsed in 2015 (INS -15-023) and 2019 (INS -19-007). It is recommended that the Operational Plan be periodically brought forward to Council for re -endorsement, with endorsement to align with each new term of Council. The Safe Drinking Water Act, 2002 includes a statutory Standard of Care for individuals who have oversight responsibilities for municipal drinking water systems that can extend to municipal councillors. There are legal consequences for negligence, including possible fines or imprisonment. REPORT: The Operational Plan documents the QMS, essentially outlining how regulatory requirements are met. The Operational Plan consists of 21 elements including: risk assessment, review and provision of infrastructure, emergency management, audits, and continual improvement. A series of Standard Operating Procedures (SOPs) have been developed as part of the DWQMS. The SOPs are generally high level documents which describe the "who, what and when". The SOPs refer to Work Instructions, which explains the "how". Internal and external audits are regularly completed to evaluate the conformity of the DWQMS to confirm that "we say what we do and do what we say." The Operational Plan (attached) is a living document with references to approximately 300 associated standards operating procedures, work instructions, forms, and documents. The Standard requires continual improvement of the effectiveness of the DWQMS. Continuous improvement is completed by the creation of new work instructions, training programs and revisions to existing documents. On an annual basis, council is informed of the results of the annual management review, which may include changes that can affect the DWQMS and Operational Plan. Council receives the results of the DWQMS Management Review on March 6, 2023 (INS -2023-011). There have been no material changes to the Operational Plan since the last re -endorsement; however, the document is reviewed and updated at least annually to reference infrastructure changes, new SOPs, work instructions, etc., to ensure the plan is kept current. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: The recommendation has no impact on the Capital or Operating Budgets. Page 10 of 119 COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. The Drinking Water Quality Management Policy is available on Kitchener Utilities Website. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter; however, re -endorsement occurred most recently in 2019 (INS -19-007) APPROVED BY: Denise McGoldrick, General Manager, Infrastructure Services ATTACHMENTS: Attachment A — DWQMS Operational Plan Attachment B — Top Management Endorsement of Operational Plan Page 11 of 119 r6 Kitchener Utilities Re -Endorsement of Operational Plan Top Management re -endorses the Kitchener Utilities City of Kitchener Drinking Water Distribution System DWQMS Operational Plan. Original endorsement was November 10, 2008. Denise McGoldrick General Manager, Infrastructure Services Greg St. Louis, P.Eng. Director, Gas and Water Utilities Tammer Gaber, P.Eng. Manager, Operations (Gas and Water) So,, /2, Zo Z 3 Date Page 12 of 119 xitcbenerCity of Kitchener Water Distribution Utiwes[' DWQMS Operational Plan Kitchener Utilities The Corporation of the City of Kitchener Kitchener Utilities Municipal Drinking Water System: Kitchener Distribution System DWQMS Operational Plan Operational Plan Number 019-401 The contents of this document are the intellectual property of Kitchener Utilities and cannot be reproduced and/or distributed to any individual or organisation without the written authorization of Kitchener Utilities. Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 1 of 24 Page 13 of 119 xltcbener� City of Kitchener Water Distribution Ut;`it`e DWQMS Operational Plan TABLE OF CONTENTS PartA - Introduction.............................................................................................................................. 3 Purpose............................................................................................................................................... 3 Scope.................................................................................................................................................. 3 Permitsand Licences............................................................................................................................ 3 References........................................................................................................................................... 3 Definitions and Acronyms................................................................................................................... 4 PartB - Operational Plan........................................................................................................................ 5 QualityManagement System............................................................................................................... 5 Quality Management System Policy.................................................................................................... 5 Commitment and Endorsement.......................................................................................................... 5 QMSRepresentative........................................................................................................................... 6 Document and Record Control........................................................................................................... 6 Drinking Water Distribution System..................................................................................................... 6 Risk Assessment Procedures and Outcomes.........................................................................................12 Organizational Structure, Roles, Responsibilities and Authorities.........................................................12 Competencies....................................................................................................................................19 PersonnelCoverage...........................................................................................................................19 Communications................................................................................................................................19 Essential Supplies and Services........................................................................................................... 20 Infrastructure Review and Provision..................................................................................................20 Infrastructure Maintenance, Rehabilitation and Renewal................................................................... 20 Sampling, Testing, and Monitoring.................................................................................................... 20 Calibration........................................................................................................................................ 20 Emergency Management................................................................................................................... 20 InternalAudits................................................................................................................................. 211 ManagementReview.........................................................................................................................21 ContinualImprovement..................................................................................................................... 21 Historyof Changes............................................................................................................................21 Subject System Description Form.......................................................................................................... 23 Appendices........................................................................................................................................... 24 Water Distribution System Map............................................................................................................ 25 Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 2 of 24 Page 14 of 119 xltcbener�City of Kitchener Water Distribution Ut;`it`es DWQMS Operational Plan PART A - INTRODUCTION Purpose The purpose of this Operational Plan is to describe the comprehensive Drinking Water Quality Management System (DWQMS) developed and implemented by Kitchener Utilities for the operation and maintenance of its water distribution system. This DWQMS Operational Plan includes references to all components of the DWQMS. scope This Operational Plan covers the activities and personnel associated with all operational aspects of the drinking water distribution system for Kitchener Utilities, identified by waterworks number 260001458. This Operational Plan, the procedures, work instructions and other DWQMS documentation that are referenced herein are complementary to the legislated requirements for safe drinking water in the Province of Ontario. The scope of the waterworks begins at the point where treated water enters the watermain from the treatment facilities, and ends at the property lines of the consumers. Permits and Licences The waterworks system has the following permits and licences: • Municipal Drinking Water Licences, Number 019-101 • Drinking Water Works Permit, Number 019-201 • Financial Plan, Number 019-301 • Operational Plan, Number 019-401 For Form 1 Review, the City of Kitchener reviews/approves for City owned watermains and the Region completes the review/approval for Regional owned watermains. For those watermains that are dual owned, it is the proponent's responsibility to contact the other owner so that both parties sign -off. Interconnections between the two systems are documented by both parties. References • Drinking Water Quality Management Standard • Applicable Ontario Safe Drinking Water Legislation Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 3 of 24 Page 15 of 119 xitcbenerCity of Kitchener Water Distribution Utilffies[' DWQMS Operational Plan Definitions and Acronvms • AOP Advanced Oxidation Process • CAO Chief Administrative Officer • Distribution Watermains and related items (i.e. Hydrants, valves) • DWQMS Drinking Water Quality Management Standard • GAC Granulated Activated Carbon • GIS Geographic Information System • ML Mega Litre • MECP Ministry of Environment, Conservation and Parks • OIC Operator in Charge • ORO Overall Responsible Operator • Primary Response Vehicle Under the Ontario Energy Board distributors are secondary /263/Emergency Response responders; the primary response to emergencies is provided Vehicle by the 911 Emergency Response service. In Kitchener Utilities documents, Primary Response Vehicle refers to the Construction and Maintenance Kitchener Utilities vehicle/staff equipped and responsible to respond to emergencies. • QMS Quality Management System • RMOW Regional Municipality of Waterloo • SCADA Supervisory Control and Data Acquisition • UV Ultraviolet • Waterworks Kitchener Utilities Drinking Water Distribution System • WTP Water Treatment Plant Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 4 of 24 Page 16 of 119 xltcbener�City of Kitchener Water Distribution Ut;`it`es DWQMS Operational Plan PART B - OPERATIONAL PLAN Quality Management System This Operational Plan describes the QMS which covers the drinking water distribution system that is owned and operated by Kitchener Utilities. Kitchener Utilities receives treated water from the Regional Municipality of Waterloo (RMOW). Quality Management System Policy Kitchener Utilities owns, maintains and operates the City of Kitchener's Drinking Water Distribution System. At Kitchener Utilities, we are committed to supplying you with safe drinking water. We work together with the City of Kitchener and the Region of Waterloo to keep water matters top of mind. We are committed to these principles: 1. Quality Kitchener water is safely treated and regularly tested according to government legislation and regulations for the consistent delivery of safe, quality drinking water. We are committed to maintaining and continually improving the Quality Management System, and complying with applicable legislation. 2. Trust Trust us to look after your water needs by delivering quality water and reliable service. 3. Value Tap water is the most economical choice. 4. Communication We will communicate openly with the public concerning matters of drinking water quality. Commitment and Endorsement The Owner (Mayor and Council) and Top Management endorsement of the Operational Plan shall be demonstrated by a copy of the council meeting minutes where the Operational Plan is accepted and endorsed (see Appendix). Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 5 of 24 Page 17 of 119 xltcbener�City of Kitchener Water Distribution Ut;`it`es DWQMS Operational Plan QMS Representative The Manager, Quality Management and Water Programs is appointed by Top Management to the role of QMS Representative for the Kitchener drinking water distribution system QMS. The QMS Representative has the responsibilities and authorities listed in the section of this Operational Plan called `Organizational Structure, Roles, Responsibilities and Authorities'. The appointment is documented and filed with the QMS Specialist and on Laserfiche. Document and Record Control Procedures are in place for Document Control and Record Control (attached in the Appendix). These procedures describe how QMS documents and procedures are controlled, including instructions related to currency, legibility, retention, and storage. All QMS system documentation is controlled. Methods of control are defined in the referenced procedures. Records are maintained as objective evidence of conformance to the DWQMS and compliance with all applicable Safe Drinking Water Regulations. The Master List of Documents is a complete list of all system components. The most current version of the Master List of Documents is also available. Drinking Water Distribution System The scope of the waterworks begins at the point where treated water enters the watermain from the Regional treatment facilities, and ends at the property lines of the consumers. There is no storage, chlorine boosting, secondary disinfection or pressure boosting within the control of the waterworks. As of the end of 2022, the waterworks consists of approximately: • 924.6 km of distribution watermain — 792 km Kitchener owned, 23 km Dual owned and 109 km Regional owned (20 km is untreated) • 70,572 water meters in service • 4,717 hydrants (not including private hydrants) • 8,005 valves (not including service valves or hydrant valves) — 7,445 Kitchener owned, 130 Dual owned and 430 Regional owned Hard copy maps are updated annually along with stats, however digital mapping changes are made daily (available electronically to field staff via laptops in the field). Electronic maps are Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 6 of 24 Page 18 of 119 Kitchener City of Kitchener Water Distribution Utahties r DWQMS Operational Plan updated daily are available internally and externally via Open Data. A copy of the map is included at the end of the Operational Plan. Process Flow Chart INCOMING WATER from RMOW (various sources) DISTRIBUTION SYSTEM Owner — Kitchener Utilities Operating Authority -Kitchener Utilities KITCH EN ER DISTRIBUTION SYSTEM RIVER RIDGE BRESLAU DISTRIBUTION SYSTEM, in TOWNSHIP OF WOOLWICH I I I I I I I CITY OF I WATERLOO BOARDWALK A map of the distribution system is available on Laserfiche and is filed with the Manager, Quality Management and Water Programs on an annual basis. General Description The supply system consists of multiple RMOW pumping stations, treatment systems and wells. Not all systems are required to be in operation at the same time to deliver adequate water supply. The waterworks also provides distribution to the neighbourhood of River Ridge (commonly referred to as Falconridge). The City of Waterloo Distribution System supplies water to this community, but Kitchener Utilities owns, operates and maintains the distribution to River Ridge. The City of Kitchener supplies water to the City of Waterloo in the Boardwalk area. The waterworks has a direct connection feeding water to Breslau, including a meter chamber. Breslau is a distribution system within the Township of Woolwich, which is owned and operated by the Township of Woolwich. The distribution system is not owned or operated by Kitchener Utilities. Doc # 0 Revision 31.0 Uncontrolled When Printed Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 7 of 24 Page 19 of 119 xltcbener�City of Kitchener Water Distribution Ut;`it`es DWQMS Operational Plan Some watermains are shared with the RMOW (Dual owned) but are maintained by Kitchener Utilities. The RMOW is back -charged for the maintenance activities performed by the waterworks. The RMOW may participate in watermain repair, however Kitchener Utilities is the first responder. Description of Water Source The Kitchener Drinking Water Distribution System is part of the RMOW's Integrated Urban System. All drinking water is supplied by the RMOW's various water treatment plants; the location of these RMOW assets can be found in GIS via Arc Reader. The water supplied by RMOW is controlled by the RMOW, who owns and operates the treatment plants and equipment, pumps and Supervisory Control and Data Acquisition (SCADA) system which controls the quality and pressure of the supply. The Kitchener Water Distribution System is supplied by the following RMOW Water Supply Systems: 1. Greenbrook Well Supply System 2. K34 Well Supply System 3. Mannheim Water Treatment Plant 4. Parkway Well Supply System 5. Strange St. Well Supply System 6. Woolners (K80's) Well Supply System More details regarding the above can be found at: www.regionofwaterloo.ca/water-reports 1. Greenbrook Well Supply System The Greenbrook Well System is comprised of five ground water wells K1A, K2A, K413, K5A and K8. These wells pump directly into the Greenbrook Treatment Plant and Pumping Station. Iron and manganese removal is achieved through the use of three pressure filters. Following filtration, treatment for 1,4 -dioxane is accomplished by an advanced oxidation process (AOP) using 50% hydrogen peroxide and Ultraviolet (UV) irradiation. Treated water from the UV reactors proceeds through upflow Granular Activated Carbon (GAC) contactors before being transferred to 2 storage reservoirs with capacities of 2 million gallons (approximately 10,000 cubic metres) and 500,000 gallons (approximately 2400 cubic metres). Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 8 of 24 Page 20 of 119 xltcbener� City of Kitchener Water Distribution Ut;`it`e DWQMS Operational Plan Disinfection is achieved through Ultraviolet (UV) irradiation and by the use of a sodium hypochlorite system consisting of a solution tank complete with spill containment and protection and a metering pump dispensing commercial 12% sodium hypochlorite solution. 20% ammonium sulphate is added to the water at the discharge header of the pumping station prior to the water leaving the station. The purpose of the ammonium sulphate is to convert free chlorine to the combined form, creating a more stable distribution disinfectant. Continuous analyzers monitor the levels of chlorine, turbidity, UVT and UV dosage prior to the water being discharged. The analyzers are connected with the Mannheim Water Treatment Plant SCADA system which is monitored by an operator 24 hours per day. There is no emergency standby power at this site. 2. K34 Well Supply System The K34 well supply is a groundwater supply consisting of two wells, K34 and K36, a treatment facility and an in ground clear well/reservoir. The total storage capacity of the reservoir is 90 cubic meters. Two high lift pumps are used to discharge the treated water into the distribution system. The treatment facility has five closed pressure filters used for removal of iron and manganese. Disinfection is achieved by the use of a sodium hypochlorite system consisting of a solution tank complete with spill containment and protection and two metering pumps dispensing commercial 12% sodium hypochlorite solution. The sodium hypochlorite is also used as an oxidizing agent prior to filtration. Upon discharge to the distribution system, 20% ammonium sulphate is injected. The purpose of the ammonium sulphate is to convert free chlorine to the combined form, creating a more stable distribution disinfectant. Continuous analyzers monitor the levels of chlorine and turbidity. The analyzers are connected with the Mannheim Water Treatment Plant SCADA system which is monitored by an operator 24 hours per day. There is no emergency stand-by electrical power at this facility. Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 9 of 24 Page 21 of 119 Kitchener Utilities City of Kitchener Water Distribution DWQMS Operational Plan 3. Mannheim Water Treatment Plant The Mannheim Water Treatment Plant receives raw water from the Hidden Valley Low Lift Station located at the Grand River. The raw water entering the WTP is treated with coagulation, flocculation, sedimentation, ozonation and filtration. Immediately after filtration, the water is disinfected prior to entering the clearwells/reservoirs. There are two clearwells/reservoirs that have a combined total usable volume of 15.28 ML. Disinfection is achieved through ozonation, ultraviolet (UV) irradiation followed by chlorination via a gas chlorination system. Continuous analyzers monitor the levels of ozone, chlorine, turbidity, UVT and UV dosage prior to the water being discharged. The analyzers are connected with the Mannheim Water Treatment Plant SCADA system which is monitored by an operator 24 hours per day. The water from the Mannheim Aquifer Storage and Recovery Facilities (ASRI, ASR2, ASR3, ASR4, RCWI and RCW2) can be mixed with the treated water and then stored in the clearwells/reservoirs. This water is then directed to the Mannheim Pumping Station Reservoir, where it blends with seven other ground water wells (K91, K92, K93, K94, K21, K25, and K29). Treated water from the Mannheim Village wells (K22A, K23, K24 and K26) and Shingletown wells (K50 and K51) can also indirectly supply the Mannheim Pumping Station Reservoir. This reservoir has a total storage capacity of 101.3 ML. Prior to the treated water being pumped into the distribution system, anydrous ammonia or 20% liquid ammonium sulphate is injected to convert free chlorine to the combined form, creating a more stable distribution disinfectant. This facility has emergency standby power available. 4. Parkway Well Supply System The Parkway Well System is comprised of three ground water wells, K31, K32 and K33. These wells pump directly into the Parkway Reservoir and Pumping Station. The Parkway Reservoir has a capacity of three million imperial gallons (14,000 cubic meters). Disinfection is achieved by the use of a sodium hypochlorite system consisting of a solution tank complete with spill containment and protection and a metering pump dispensing commercial 12% sodium hypochlorite solution. Ammonium sulphate is added to the water at the discharge header of the pumping station prior to the water leaving the station. The purpose of the ammonium sulphate is to convert free chlorine to the combined form, creating a more stable distribution disinfectant. These chemical systems are located at Parkway Reservoir and Pumping Station. Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 10 of 24 Page 22 of 119 Kitchenerr!; City of Kitchener Water Distribution Utiwes-1 1 DWQMS Operational Plan Continuous analyzers monitor the levels of chlorine and turbidity prior to the water being discharged. The analyzers are connected with the Mannheim Water Treatment Plant SCADA system which is monitored by an operator 24 hours per day. This site has no emergency standby power available on site. 5. Strange St. Well Supply System The Strange Street Water Treatment System is comprised of five ground water wells, K10A, K11A, K13A (Currently out of service), K18 and K19. The wells feed into a 450 mm diameter raw water main to the Strange Street Water Treatment Plant (WTP) located at 25 Strange Street in the City of Kitchener, Ontario. The incoming well field water is injected with Sodium Hypochlorite before feeding into the Pre -Oxidation Tank (total volume: 116 m3). Low Lift Pumps situated in the Pre -Oxidation Tank are used to pump the water to three Iron and Manganese Pressure Filters. Each pressure filter contains 3 filter cells. The filtered effluent water is then injected with Sodium Hypochlorite before entering the Treated Water Reservoir (total volume: 250 m3). Disinfection is achieved by the use of sodium hypochlorite systems consisting of solution tanks complete with spill containment and protection and metering pumps dispensing commercial 12% sodium hypochlorite solution. Booster Pumps are then utilized to pump water out of the Treated Water Reservoir towards being discharged from the WTP. Before discharging the water, Ammonium sulphate is added to the water downstream of the Booster Pumps. The purpose of the ammonium sulphate is to convert free chlorine to the combined form, creating a more stable distribution disinfectant. When the Pressure Filters require cleaning, Backwash Supply Pumps feed the Filters with filtered water from The Backwash Supply Tank (total volume: 340 m3). Wastewater from the Backwash Procedure is sent to two Backwash Waste Tanks (total volume: 442m3 each). Solids from inside these Waste Tanks is pumped into a Sludge Tank (total Volume: 84 m3) using two Sludge Pumps. Supernatant Pumps in the Backwash Waste Tanks are used to either recycle the supernatant water back to the Pre -Oxidation Tank or discharge it to a manhole outside the WTP depending on either Recycle or Waste modes. Continuous analyzers monitor the levels of chlorine and turbidity prior to the water being discharged. The analyzers are connected with the Mannheim Water Treatment Plant SCADA system which is monitored by an operator 24 hours per day. This site has no emergency standby power available on site. Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 11 of 24 Page 23 of 119 Kitchenerr!; City of Kitchener Water Distribution Utiwes-1 1 DWQMS Operational Plan 6. Woolners (K80's) Well Supply System The Woolners Well Supply system is comprised of three wells: K80, K81, and K82. These wells combine in a common header prior to entering the Ebydale UV Building. The water from the three wells is injected with sodium hypochlorite located in the well houses of K81 and K82. The systems consist of solution tanks complete with spill containment and protection and metering pumps dispensing commercial 12% sodium hypochlorite solution. The water entering the Ebydale UV Building is then passed through an Ultraviolet (UV) system, which provides primary disinfection. Ammonium sulphate is then added to the water at the discharge header prior to the water leaving the station. The purpose of the ammonium sulphate is to convert the free chlorine residual to a more stable combined chlorine residual. Continuous analyzers monitor the levels of chlorine, turbidity, UVT and UV dosage prior to the water being discharged. The analyzers are connected with the Mannheim Water Treatment Plant SCADA system which is monitored by an operator 24 hours per day. In November 2019, the well houses and treatment plant buildings were decommissioned and the connection to the Kitchener Distribution System was removed. There is no emergency standby power available at this site. Common fluctuations There are known seasonal issues with the water supply: • Summer — increased water usage can result in pressure challenges in some areas of the system • Fall - Grand River temperature changes may cause odour challenges in the source water, which may increase flushing requirements • Winter — temperature extremes may cause more watermain breaks in the system Risk Assessment Procedures and Outcomes The Risk Assessment Procedure is provided in the Appendix. The Risk Assessment Table shows the identified hazards and hazardous events, ranked risks, control measures, and reference to monitoring and response procedures. The Critical Control Points identified in the Risk Assessment are: • Asset operation and maintenance: o to reduce water adverses o to reduce backflow / siphonage hazards including water chambers full of water with air relief valves Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 12 of 24 Page 24 of 119 xttcbener� City of Kitchener Water Distribution Ut;`it`e DWQMS Operational Plan o to reduce chambers full of water with air relief valves o to reduce valves accidentally left closed after watermain cleaning Organizational Structure, Roles, Responsibilities and Authorities A basic overall organization chart is shown below. A detailed Organizational Chart that includes all key waterworks staff is provided in the Appendix. A list of backup or designated contacts in case of absence is available on the Kitchener Utilities Important Numbers List. Mayor and Council (Owner) Chief Administrative Officer (CAO) General Manager of Infrastructure Services (Tarp Management) Director of Utilities (Top Management) Manager of Dperat ons, Manager, Quality Manager, Business Gas & Water (Top Management and Development and ManaRement) Water Programs Customer Experience Construction and Responsibilities* Authorities City of Kitchener Dispatchers, Maintenance Supervisors, Council and Water Meter Shop, obligations for the operation of Marketing, Business Utility Distribution the waterworks Cross Connection necessary Development, Technicians, Toad Quality • Represent the waterworks to end users and the ControlSupport Services Services and Training Specialist infrastructure, as necessary General Managers of Community Service and DCAO, Corporate Services, Development Services, and Financial Services Manager, Training and Programs Quality Management System Specialists, Drafting Technician, Locators Key waterworks roles are listed as follows, with associated responsibilities and authorities. This information is communicated to staff as per the Communication Procedure. Role Responsibilities* Authorities City of Kitchener e Prescribe requirements and monitor operations • Prescribe requirements and Council and of the waterworks obligations for the operation of Mayor (Owner) e Provide resources and system infrastructure, as the waterworks necessary e Ensure a continual supply of safe • Represent the waterworks to end users and the drinking water public • Provide resources and system infrastructure, as necessary • Designate responsibilities as appropriate Doc # 0 Revision 31.0 Uncontrolled When Printed Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 13 of 24 Page 25 of 119 xiitcbener�City of Kitchener Water Distribution Ut;`it`es DWQMS Operational Plan Role Responsibilities' Authorities General Manager, e Obtain and provide resources as required for • Approval of hiring of all Infrastructure operation of the waterworks waterworks personnel Services (Top e Attend meetings with Council and senior • On -Warn Assistance declaration Management) leadership teams • Report issues to the CAO and Council, as necessary • Participate in Management Review • Member of Emergency Operations Centre Management Team Director, Gas and e Responsible for the day-to-day leadership and • Allocation of provided resources Water Utilities operation of the Utilities division. Develops e Administration of labour (Top and implements Utilities programs, policies, agreement(s) Management) budgets, rates, and strategies that are aligned e Oversees utilities water assets with Council's priorities and corporate strategic e Monitors expenditures, expenses direction and Regulatory requirement. and controls costs through the Accountable for ensuring regulatory budget year to ensure high levels compliance of financial, operational and • Supervises Utilities Managers service integrity on a day-to-day • Overall responsibility for the operation of the basis waterworks e Recommends rate structures for • Attend meetings with Council as required water • Ensure QMS is in place e Designate responsibilities as • Ensure Operating Authority staff are aware of required applicable legislation • Determine, obtain and provide resources required for QMS • Report issues to the General Manager Infrastructure Services, as necessary • Participate in Management Review • Designates On -Call Manager as per On-call Schedule • Declares Emergency exemptions for Hours of Service (MTO), or designate Manager, e Manages the safe and reliable distribution of • Direct supervisors and staff Operations (Gas water e Develop/improve departmental and Water) (Top e Maintain regulatory compliance practices Management) e Supervise Construction and Maintenance • Designate responsibilities as Supervisors required • Schedule work assignments • Work safety program • Reporting of deviation from critical limits to the Manager of Quality Management & Water Programs, appropriate • Report issues to the Director of Utilities as necessary • Hire waterworks personnel Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 14 of 24 Page 26 of 119 xiitcbenerCity of Kitchener Water Distribution Utiwes[' DWQMS Operational Plan Role Responsibilities' Authorities • Determine, obtain and provide resources required for Operations • Participate in Management Review • Develops On-call schedule and designates ORO as per On-call Schedule • Response to deviations, as required Supervisor, e Supervise Utilities Construction & Maintenance • Direct staff in day-to-day Utilities staff in the daily operation of the City's water operations and maintenance system, to respond to and direct staff during activities water emergencies. e Schedule construction activities as • Reporting of deviation from critical limits to they affect operations the Manager of Operations, as appropriate e Recommend to the Manager of • Overall Responsible Operator (ORO) when Operations ways to improve on-call operational effectiveness • OIC when not on-call • Designate responsibilities as • Response to deviations, as required required • One Supervisor is designated to support training and complete training on equipment Manager, Training e Reporting of deviation from critical limits to • Recommend to the Manager of and Programs the Manager of Operations, as appropriate Operations ways to improve • Manages QMS Specialist, Locator and Drafting operational effectiveness Technician • Designate responsibilities as • Responsible for organizing maintaining all required training needs for staff directly affecting e Ensure training of supervisors and drinking water quality Construction and Maintenance • Training and development staff meets requirements • Backup for the Manager, Quality Management and Water Programs • Participates in Top Management Review • Maintain Utilities Training Matrix Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 15 of 24 Page 27 of 119 xltcbener� City of Kitchener Water Distribution Ut;`it`e DWQMS Operational Plan Role Responsibilities' Authorities Manager, Quality • Ensures the distribution of a safe supply of • Designate responsibilities as Management and drinking water to customers, including meeting appropriate Water Programs — regulatory requirements, developing related • Arrange for corrective actions for Designated as standards and enforcement water quality adverse QMS • Perform specified duties as per training and/or • Completes reporting for adverses Representative direction of superiors • Report of adverse water quality • Maintain operational parameters of the incidences to Top Management waterworks • Prepare Annual Regulatory Reports, Management Reviews and communication to Top Management • Prepare and present reports to council • Represent the waterworks in communication with the RMOW • Compiling/Reporting waterworks performance operations data to council • Review and Approval of Form 1 includes review of Construction drawings for new construction/ reconstruction • Review and approval of commissioning plans • Review of water quality reports and approval to connect • Communicate QMS as per communication • Monitor water quality & demand • Ensure Operating Authority are aware of applicable legislation • Supervises Cross Connection group and Water Meter Shop • Preparation and provision of training as related to QMS • Communicates to operations/supervisors for water quality related response • Preparation of budget documents as related to QMS, Capital works • Supports continual improvement • Sits on Regional Best Management Practices committees for standard development Designates for this position (portions) may be: • Manager, Training and Programs • On -Call Manager • QMS Specialist On Call Manager • Perform back-up to the Manager, Quality • Same as Manager, Quality Management and Water Programs for specific Management and Water Programs water quality related items requiring immediate response • Declares emergency for Hours of Service MTO Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 16 of 24 Page 28 of 119 xiitcbener� City of Kitchener Water Distribution Ut;`it`e DWQMS Operational Plan Role Responsibilities' Authorities Construction and • Perform specified duties as per training/work • Operate and maintain the Maintenance Staff instructions/procedures and/or direction of waterworks under direction of — Utilities superiors OIC/ORO/Manager Distribution • Complete all paperwork/supplemental work Technician or orders — Cityworks and associated paperwork Operator -in are considered to be MECP regulatory Training requirements • Maintain operational parameters of the waterworks • Maintain and repair equipment where qualified • All staff must maintain Internal Responsibility System (Safety as per Occupational Health and Safety Act) Construction and • The OIC is the Crew Leader or the Temporary • Direct crews Maintenance Staff Crew Leader • Enforce all applicable Ontario - Utilities Staff — • Constructor's representative, all duties Regulations (MECP, MOL) Utility Crew associated with Ministry of Labour • Enforce all applicable City policies Leader/Temporary requirements Crew Leader • Duties as outlined in Utilities Staff — Utilities Distribution Technician • Rotation on 263 Emergency Response Vehicle — secondary response • Complete all paperwork/supplemental work orders — Cityworks and associated paperwork are considered to be MECP regulatory requirements • Perform all regulatory requirements of an OIC Construction and • Maintain and repair equipment and • Purchase equipment/supplies Maintenance Staff Owner's/Manufacturer's manuals • Maintain tools/equipment in - Tool Quality • Ensure equipment is in good working order accordance with manufacturer Support and • Verification/Calibration of equipment specs Training Specialist • Training staff on equipment use • Contacting • Maintenance of equipment/sign-out logs suppliers/manufacturers/ calibration companies Utilities Assistant • Support operational/construction related and Operational activities including scheduling, follow-up, Services Support invoicing, communication Person • Creation of work orders Cross Connection • Implements, administers and enforces the Cross • Determine hazards and Control Specialist Connection Control/Backflow Prevention By- appropriate device selection law • Commencement of enforcement • Inspection of new devices activities (e.g. fines, water shut- off) in consultation with superiors Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 17 of 24 Page 29 of 119 xltcbener� City of Kitchener Water Distribution Ut;`it`e DWQMS Operational Plan Role Responsibilities' Authorities Manager, Business • Provides leadership and direction to Dispatch • Develops operating procedures, Development and staff/marketing staff policies, manuals and training Customer • Manages the collection and reporting of related to customer service Experience information regarding citizen inquires, complaints • Oversees marketing, communications and branding strategies to ensure consistent messaging Dispatcher • Receive and process incoming calls from the • Follows established procedures public and internal staff for general inquires, and makes calm decisions as appointments, complaints and emergencies required in an emergency services • Dispatch Construction & Maintenance Staff environment • Provides general information and direction on • Deploy resources, as required the services, procedures, practices, policies and • Refers escalated issues to the programs provided by the City through public supervisor and/or on-call and internal inquirers manager, when applicable QMS • Develop, implement and maintain the QMS • Delegate duties as necessary Representative — • Report on the performance of the QMS to Top designated as Management Manager -Quality • Identify needs for improvement in the QMS Management and • Ensure that the current versions of documents Water Programs required by the QMS are in use at all times • Ensure that all personnel are aware of all applicable legislative requirements that are relevant to the operation of the works • Stay up to date on changes to relevant legislative and regulatory requirements • Promote the QMS throughout the Operating Authority QMS • Manages the development, implementation • Delegate duties as necessary Specialist and maintenance of the DWQMS • Arrange for corrective actions for • Develop, implement and maintain the QMS adverse water • Identify needs for improvement in the QMS • Completes reporting for adverses • Ensure that the current versions of documents required by the QMS are in use at all times • Ensure that all personnel are aware of all applicable legislative requirements that are relevant to the operation of the works • Promote the QMS throughout the Operating Authority • Assists with the preparation of water quality related reports • Prepares and submits data for benchmarking • Review of water quality data • Review of water quality tests and provides approval to connect Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 18 of 24 Page 30 of 119 xitdenerCity of Kitchener Water Distribution Utiwes[' DWQMS Operational Plan Role Responsibilities' Authorities Drafting • Processing records for operational staff (e.g. • Record changes Technician valve replacements) • Updating/correcting attribute info • Completing/processing records for engineering related record changes • Map tentative as -built watermains based on red -line Job duties are as related to the DWQMS, detailed job descriptions are developed in conjunction with Human Resources for CUPE 791 and non-union management staff. Job postings may include additional information. Additional Resources Outside of Kitchener Utilities Engineering — Development Engineering, Engineering Design and Approvals and Building, Engineering Construction - design, construction and inspection of new installation and reconstruction of watermains as well as provision of as-builts Technology Innovation and Services- mapping as-builts and maintenance of GIS system and maps Asset Management and Business Solutions — develops the annual 10 year Road & Utility Capital Forecast using water asset condition information developed via the Infrastructure Maintenance, Rehabilitation and Renewal procedure. Corporate Contact Centre (CCC) — some Dispatch duties after hours Competencies The Competencies Procedure describes the process for identifying, developing and maintaining required competencies for personnel performing duties directly affecting drinking water quality. The procedure also describes activities to ensure personnel are aware of the relevance of their duties. Records show evidence of activities to meet and maintain the competencies described in the procedure, and to ensure personnel awareness. The Procedure is provided in the Appendix. Personnel Coverage The Personnel Coverage Procedure describes the process for ensuring personnel are available for duties. The Procedure is provided in the Appendix. Communications The Communications Procedure describes the process for ensuring relevant aspects of the QMS are communicated between Top Management and the Owner, waterworks personnel, suppliers and the public. The Procedure is provided in the Appendix. Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 19 of 24 Page 31 of 119 xltcbener�City of Kitchener Water Distribution Ut;`it`es DWQMS Operational Plan Essential Supplies and Services The Essential Supplies and Services Procedure describes the process for identifying essential supplies and services, and ensuring quality requirements and procurement methods are established and communicated. The Procedure is provided in the Appendix. Infrastructure Review and Provision The Infrastructure Review Procedure describes the process for the review of the infrastructure adequacy. This Procedure is provided in the Appendix. The procedure also describes the provision of infrastructure, and the communication of review findings to the Owner. The Procedure is provided in the Appendix. Infrastructure Maintenance, Rehabilitation and Renewal The Infrastructure Maintenance, Rehabilitation and Renewal Procedure describes the maintenance programs undertaken by Kitchener Utilities, and how the system is rehabilitated and renewed. The Procedure is provided in the Appendix. Sampling, Testing, and Monitoring The Sampling, Testing and Monitoring Procedure describes procedures used to maintain chlorine residual in the Distribution System by sampling, testing and monitoring at the waterworks. Maintenance programs including dead end main flushing and new development flushing maintain chlorine residuals within the distribution system. The procedure outlines requirements for bacteriological testing within the distribution system, including temporary watermains. Additional sampling requirements as per regulatory requirements are also included in the procedure (see Appendix). Calibration The Calibration Procedure describes procedures for maintenance and calibration of measurement and recording equipment. The Procedure is provided in the Appendix. Emergency Management An emergency is considered to be a potential situation or service interruption that may result in the loss of the ability to maintain a supply of safe drinking water to consumers. The Emergency Management procedure describes the process of maintaining a state of emergency preparedness at the waterworks. It refers to applicable emergency response procedures. The procedure is provided in Appendix. Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 20 of 24 Page 32 of 119 xltcbener�City of Kitchener Water Distribution Ut;`it`es DWQMS Operational Plan Internal Audits The Internal Audits Procedure describes the procedure for internal audits, including audit criteria, frequency, scope, records, methodology and schedule. The Corrective Action Procedure describes the process of initiating, investigating, performing and documenting corrective actions. Both procedures are provided in the Appendix. Management Review The Management Review Procedure describes the procedure for management review, including review items, reviewers, outcomes, and documentation. The Procedure is provided in the Appendix. Continual Improvement Kitchener Utilities strives to continually improve the effectiveness of its QMS through the use of corrective actions, especially from the annual internal audits (as per the Internal Audit Procedure), staff suggestions and management reviews (as per the Management Review Procedure). The procedure can be found in the Appendix. History of Changes Revision Date Description By 24.0 January 30, 2019 Updating infrastructure summary, Steve Young deleting outdated information. 25.0 September 30, 2019 Filing of approval of QMS Rep, Steve Young new element 15 procedure, updating job titles 26.0 March 5, 2020 Update of Drinking Water Dean Chapman Distribution System section and other sections as a result of the Kitchener Utilities Re-org. 27.0 April 17, 2020 Updated Description of Water Ras Sonthisay Source section to be consistent Region of Waterloo's Water Quality Report. 28.0 March 3, 2021 Updates to the Drinking Water Dean Chapman Distribution System section. 29.0 January 12, 2022 Updates to the Drinking Water Dean Chapman Distribution System stats and Strange St Well Supply system. Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 21 of 24 Page 33 of 119 xltcbener�City of Kitchener Water Distribution Ut;`it`es DWQMS Operational Plan 30.0 September 29, 2022 Primary response vehicle added Angela Mick to definitions section. 31.0 January 10, 2023 Updates to the Drinking Water Angela Mick, Dean Distribution System and Chapman Sampling, Testing and Monitoring sections. Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 22 of 24 Page 34 of 119 ,r6 City of Kitchener Water Distribution DWQMS Operational Plan SUBJECT SYSTEM DESCRIPTION FORM t/��Ontario Ministry ofthe Environment and Climate Change Fields marbed with an asterisk ;`j are maanda Dry - C urrer of Municipal Residential Dmbing Water System ' The Coiporattoo of the City of Kitchener Ham of Municipal Resider►tial Ddnkkq Water System Kitchener Di=l uham System Print Form Schedule D - Director's Directions for Operational Plans (Subject System Description Form) Municipal Residential drinking Water System Subject' systems. Q Check here if the MuniCipal Pesidentral Drirbing Water Systern s op4E-raied 0 o^e operat -g aut^o ,i. Eller the narne of the operating arthimly in the tellmtable- Name of Operational StbsygeWiif Jfplwahte) Name cf Cpera'ing Authority ' DWS dumber(s) 1 I I City ofK tchene� Add item (+] Prcvide the infomrafim ordlinEd it the'Condant Irrkanation' section far each Operafona Subsys,err.. Contact Information Last Name Mick Utilities Water Engineer angela.mick,'AA- itchener.ca Add item (+1 F - Save Form Print Completed Form 21E3E izo M03] O Oueeft Priftrtw OnWn, M6 Doc # 0 Revision 31.0 19,141-2600 ram M h— Uncontrolled When Printed Printed on: Jan. 10, 23 260001452 Remove V cc a I- sial L Clear Form Paw 1 rr ° Revision Date: January 10, 2023 page 23 of 24 Page 35 of 119 Kitchener!; City of Kitchener Water Distribution Ut'" 1 DWQMS Operational Plan APPENDICES WATER DISTRIBUTION SYSTEM MAP Appendix 1 Endorsement Appendix 2 Document Control Procedure Appendix 3 Record Control Procedure Appendix 4a Risk Assessment Procedure Appendix 4b Risk Assessment Table Appendix 5 Critical Control Point Procedure Appendix 6a Current Position/Employee List Appendix 6b Organizational Chart Appendix 6c Construction and Maintenance Staff Appendix 7 Competencies Procedure Appendix 8 Personnel Coverage Procedure Appendix 9 Communications Procedure Appendix 10 Essential Supplies and Services Procedure Appendix 11 Review and Provision of Infrastructure Procedure Appendix 12 Sampling, Testing and Monitoring Procedure Appendix 13 Emergency Management Procedure Appendix 14 Maintenance and Calibration of Measuring & Recording Equipment Procedure Appendix 15 Internal Audits Procedure Appendix 16 Corrective Action Procedure Appendix 17 Management Review Procedure Appendix 18 Continual Improvement Procedure Appendix 19 Infrastructure Maintenance, Rehabilitation and Renewal Procedure Appendix 20 Drinking Water Works Permit Doc # 0 Uncontrolled When Printed Revision 31.0 Printed on: Jan. 10, 23 Revision Date: January 10, 2023 page 24 of 24 Page 36 of 119 Staff Report Infrastructure Services Department www.kitchener.ca REPORT TO: Community and Infrastructure Services Committee DATE OF MEETING: March 6, 2023 SUBMITTED BY: Greg St. Louis, Director, Gas & Water Utilities, 519-741-2600 ext. 4538 PREPARED BY: Angela Mick, Manager, Quality Management and Water Programs, 519-741-2600 ext. 4408 WARD(S) INVOLVED: Ward(s) DATE OF REPORT: February 2, 2023 REPORT NO.: INS -2023-011 SUBJECT: Drinking Water Quality Management Standard (DWQMS): Management Review Summary for 2022 RECOMMENDATION: That the City of Kitchener Drinking Water Quality Management Standard (DWQMS): Management Review Summary for 2022 Report be received for information. REPORT HIGHLIGHTS: • The purpose of this report to inform the decision-making authority about the status of the drinking water system • The key finding of this report is that the Kitchener distribution system meets the requirements under the Safe Drinking Water Act. • There are no financial implications of this report • This report supports the delivery of core services. BACKGROUND: The Safe Drinking Water Act, 2002 and Regulation 188/07, requires the City of Kitchener to be licensed to operate and maintain Kitchener's water distribution system. Some of the licensing requirements include the development and management of a Quality Management System (QMS) and Operational Plan as well as communication to the owner. The City of Kitchener became licensed in August, 2009 with a Financial Plan submitted in July, 2010. The licence was renewed in 2019. Section 19 of the Safe Drinking Water Act imposes a statutory standard of care on persons who oversee the municipal drinking water system: "... every person who, on behalf of the municipality, oversees the accredited operating authority of the system or exercises decision-making authority over the system". This standard of care includes Council since they have decision-making authority. Part of the standard of care includes requiring system owners to undertake financial planning and implement the Drinking Water Quality Management System (DWQMS). The following link is a guide for municipal councillors to help understand their responsibilities under the Safe Drinking Water Act, 2002 and provides information on how Ontario's drinking water is *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 37 of 119 safeguarded: Taking Care of Your Drinking Water: A Guide for Members of Municipal Councils I ontario.ca Three things to remember as a municipal councillor (as outlined in the above Guide): • It's your duty. There are legal consequences for not acting as required by the standard of care, including possible fines or imprisonment. • Be informed. Your decisions can have an impact on public health. You don't have to be an expert in drinking water operations, but you do need to be informed about them. • Be vigilant. It is critical you never take the drinking water safety for granted or assume all is well with the drinking water systems under your care and direction. REPORT: The purpose of this report is to inform Council as the decision-making authority about the status of the drinking water system on an annual basis. The Kitchener water distribution system meets the requirements under the Safe Drinking Water Act. There are specific areas that must be reported per regulatory requirements, which include; but are not limited to consumer feedback, results of infrastructure review, results of audits and summary of maintenance. The DWQMS requires Top Management to "report the results of the management review, the identified deficiencies, decisions and action items to the Owner". Top Management is defined as "a person, persons or group of people at the highest management level within an Operating Authority that makes decisions respecting the QMS and recommendations to the Owner respecting the subject system or subjects systems". The Owner of the water utility is the Corporation of the City of Kitchener, represented by City Council. The 2022 Management Review was completed with Top Management: Denise McGoldrick, General Manager, Infrastructure Services, Greg St. Louis, Director, Gas & Water Utilities, and Tammer Gaber, Manager, Operations (Gas & Water) as well as Matt Ryan, Manager, Training and Programs, Angela Mick, Manager, Quality Management and Water Programs and Dean Chapman, Quality Management System Specialist. The Management Review report is attached. Highlights of the report are: • The Summary Water Report -2022 (INS -2023-010) confirmed that the drinking water system was in compliance with regulatory water sampling requirements during 2022. The DWQMS Management Review confirms the continuing adequacy and effectiveness of the quality management system which includes compliance, customer feedback, operational performance, audit information etc. as outlined in this report. • COVID restrictions were minimal and largely did not impact 2022 operations; however, construction and operating costs increased. • Year Five Water Infrastructure Program (WIP) maintenance end of year achievements (specific areas of improvement identified by WIP): o Cleaned approximately 168km of watermain. 2022 was the final year of the 6 year program to complete all main cleaning over 6 years. In 2023 the program will restart with the area previously cleaned in 2017. o Water quality complaints continue to decrease. There were 105 complaints total with 28 discoloured water complaints for 2022; which has greatly decreased from pre-watermain cleaning/pre-treatment plant upgrade levels in 2016 (395 complaints total with 147 discoloured water). Page 38 of 119 0 21 broken valves and/or failing valves were either replaced or removed which allows for quicker isolation for water emergencies. Broken valves are tracked in real time and the majority are addressed within weeks (except for winter). o Approximately 1,873 valves were proactively operated (23%); the majority were within the watermain cleaning area and the 2022 reconstruction areas. Operating valves ensures that they will work when they are needed in an emergency or for construction activities. o Completed spring and fall maintenance of fire hydrants. o Underground utility locates — continued to meet regulatory requirements with a combination of in-house and contract staff (17,885 locates completed; representing the largest number of locates completed over the past 10 years). o Approximately 3,300 services are protected by Backflow Prevention (BFP) — the focus is on high risk use. o Regulatory reliefs were provided by the Ministry to decrease the number of monthly samples and to limit the fall lead testing programs (customer premises) to hydrants only due to COVID restrictions. A relief has also been granted for the spring 2023 lead testing program (hydrants only). • An inspection of approximately 130 air relief valves in chambers was completed. No air reliefs were replaced in 2022. A study was commenced to determine which air reliefs require replacement and which may be removed. • There were 93 watermain breaks in 2022, which is above than the 5 -year average of 84. • Approximately 6,065 aging/problem water meters were replaced. • Hydrant painting program for corrosion protection was re -started with 450 hydrants painted, painting will continue in 2023. Hydrants are also stencilled with the watermain diameter for the Fire Department. • Unaccounted for water was 10% (At the 10% industry target). The unaccounted for water generally fluctuates around 10% (9-12%, with 10% being the approx. 10 year average). • Pressure reducing valve maintenance was completed. • The Water Utility Asset Management Plan was completed in 2022. The water assets have a value of more than $1 Billion and are generally in very good condition. Overall, watermains are more than halfway through their useful life. This is being addressed through the WIP. • Staff training programs included: Ethics for Drinking Water Operators, Water Quality for Distribution System Operators and New Watermain Commissioning Course. DWQMS Awareness training occurred for new staff. • Replaced watermains as outlined in the 2022 City of Kitchener Engineering & Water Utility Capital Forecast. • External audit determined that the management system is effectively implemented and maintained and recommended continued certification of accreditation for the municipal drinking water system. • Increased erosion and sediment control procedures during watermain breaks to minimize sediment from entering storm sewer and to provide rehabilitation steps if sediment does enter storm sewer or watercourses. Sediment control/rehabilitation costs associated with watermain breaks can be significant. • Locate related costs are expected to increase significantly in 2023 due to new regulatory requirements. Locating costs are split between gas and water. A Locate Review is Page 39 of 119 currently being led by the City's Internal Auditor to evaluate the service level, risk and resourcing needs associated with new legislative requirements. Continuing Areas of Focus are: • Continue with tasks associated with the next WIP review. • Re -endorsement of the DWQMS Operational Plan by Council. • Approval of the Water Distribution System Financial Plan as part of Application for Renewal of Licence due later this year. • Proceed with improvements to the As -built process in conjunction with Engineering, specifically hiring the additional resource approved through the budget process. There has been difficulty filling this position. Hiring staff is the last outstanding item related to the 2020 MECP inspection which flagged that The owner did not have up-to-date documents describing the distribution components as required. As-builts and GIS mapping is required within 12 -months from when a new watermain is commissioned. A number of process changes have been completed over the last 2 years to improve turn- around time. • Development and roll out AMANDA solution for better tracking of Backflow Prevention/Cross Connection program. • Development of a water disruption communication tool. The existing Watermain Break App provides for updates to the website and email for emergency watermain breaks but there is no notification for planned water outages or emergency outages associated with other infrastructure (valves, services). • Check valves along the LRT. The valves are largely new but are deemed to be critical due to potential impacts to the LRT. • Hydrant mobile field inspections are anticipated to be rolled out in spring 2023. It is anticipated that the solution will provide efficiencies by minimizing data entry and provide faster deficiency follow-up. • Proceed with OnPoint roll-out to replace ArcReader infrastructure mapping. • Proceed with filling technical water position approved as part of the 2023 budget process. • Participation in locates review with Internal Auditor. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: The recommendation has no impact on the Capital or Operating Budgets. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. The Drinking Water Quality Management Policy is available on the Kitchener Utilities website. PREVIOUS REPORTS/AUTHORITIES: Page 40 of 119 There are no previous reports/authorities related to this matter; however the Management Review Summary Reports are provided on an annual basis with the last report being INS - 2022 -038 APPROVED BY: Denise McGoldrick, General Manager, Infrastructure Services ATTACHMENTS: Attachment A — Drinking Water Quality Management Standard Review - 2022 Page 41 of 119 Kitchener Utilities Kitchener Utilities City of Kitchener Drinking Water Distribution System Drinking Water Quality Management Standard Management Review — 2022 The contents of this document are the intellectual property of Kitchener Utilities and cannot be reproduced and/or distributed to any individual or organisation without the written authorization of Kitchener Utilities. Page 42 of 119 xit�ner6l � City of Kitchener Water Distribution Uti�el DWQMS Management Review TABLE OF CONTENTS PartA - Introduction............................................................................................................................... 3 Purpose.............................................................................................................................................. 3 ExecutiveSummary........................................................................................................................... 3 Background........................................................................................................................................ 5 Other Related Water Quality Reports................................................................................................. 6 Quality Management System Policy................................................................................................... 7 Part B — Management Review............................................................................................................... 8 SystemDescription............................................................................................................................ 8 Water Infrastructure Program............................................................................................................. 8 COVIDImpacts.................................................................................................................................. 8 Incidents of Regulatory Non Compliance............................................................................................ 9 Incidences of Adverse Drinking Water................................................................................................ 9 Deviations from Critical Control Points Limits and Response........................................................... 11 Effectiveness of the Risk Assessment Process................................................................................ 16 Results of External and Internal Audits............................................................................................. 17 OFI's, Non -Conformances, Non -Compliances by Year..................................................................... 19 Operational Performance................................................................................................................. 20 Raw Water Supply and Drinking Water Quality Trends..................................................................... 20 Follow-up on Action Items from Previous Management Reviews ...................................................... 20 Status of Management Action Items Identified Between Reviews ..................................................... 20 Changes That Could Affect the Quality Management System.......................................................... 20 ConsumerFeedback........................................................................................................................ 21 Resources Needed to Maintain the Quality Management System .................................................... 22 Results of the Infrastructure Review................................................................................................. 23 Summary of Maintenance................................................................................................................. 23 Effectiveness of Maintenance........................................................................................................... 26 Operational Plan Currency, Content and Updates............................................................................ 27 StaffSuggestions............................................................................................................................. 27 Other................................................................................................................................................ 27 2 Page 43 of 119 xit�nerCity of Kitchener Water Distribution Uti�el DWQMS Management Review PART A - INTRODUCTION Purpose The purpose of this report is to inform the decision-making authority about the status of the drinking water system. The Drinking Water Quality Management Standard (DWQMS) under the Ministry of Environment, Conservation and Parks (MECP) requires management to review and evaluate the continuing suitability, adequacy, and effectiveness of the Quality Management System at least once a calendar year and that the results of the management review, identified deficiencies, decisions and action items are provided to Council as the `Owner' of the drinking water system. Executive Summary Highlights of the report are: • The Summary Water Report -2022 (INS -2023-010) confirmed that the drinking water system was in compliance with regulatory water sampling requirements during 2022. The DWQMS Management Review confirms the continuing adequacy and effectiveness of the quality management system which includes compliance, customer feedback, operational performance, audit information etc. as outlined in this report. • COVID restrictions were minimal and largely did not impact 2022 operations; however, construction and operating costs increased. • Year Five Water Infrastructure Program (WIP) maintenance end of year achievements (specific areas of improvement identified by WIP): o Cleaned approximately 168km of watermain. 2022 was the final year of the 6 year program to complete all main cleaning over 6 years. In 2023 the program will restart with the area previously cleaned in 2017. o Water quality complaints continue to decrease. There were 105 complaints total with 28 discoloured water complaints for 2022; which has greatly decreased from pre-watermain cleaning/pre-treatment plant upgrade levels in 2016 (395 complaints total with 147 discoloured water). 0 21 broken valves and/or failing valves were either replaced or removed which allows for quicker isolation for water emergencies. Broken valves are tracked in real time and the majority are addressed within weeks (except for winter). o Approximately 1,873 valves were proactively operated (23%); the majority were within the watermain cleaning area and the 2022 reconstruction areas. Operating valves ensures that they will work when they are needed in an emergency or for construction activities. o Completed spring and fall maintenance of fire hydrants. o Underground utility locates — continued to meet regulatory requirements with a combination of in-house and contract staff (17,885 locates completed; representing the largest number of locates completed over the past 10 years). o Approximately 3,300 services are protected by Backflow Prevention (BFP) — the focus is on high risk use. 3 Page 44 of 119 xit�ner6l � City of Kitchener Water Distribution Uti�el DWQMS Management Review o Regulatory reliefs were provided by the Ministry to decrease the number of monthly samples and to limit the fall lead testing programs (customer premises) to hydrants only due to COVID restrictions. A relief has also been granted for the spring 2023 lead testing program (hydrants only). • An inspection of approximately 130 air relief valves in chambers was completed. No air reliefs were replaced in 2022. A study was commenced to determine which air reliefs require replacement and which may be removed. • There were 93 watermain breaks in 2022, which is above than the 5 -year average of 84. • Approximately 6,065 aging/problem water meters were replaced. • Hydrant painting program for corrosion protection was re -started with 450 hydrants painted, painting will continue in 2023. Hydrants are also stencilled with the watermain diameter for the Fire Department. • Unaccounted for water was 10% (At the 10% industry target). The unaccounted for water generally fluctuates around 10% (9-12%, with 10% being the approx. 10 year average). • Pressure reducing valve maintenance was completed. • The Water Utility Asset Management Plan was completed in 2022. The water assets have a value of more than $1 Billion and are generally in very good condition. Overall, watermains are more than halfway through their useful life. This is being addressed through the WIP. • Staff training programs included: Ethics for Drinking Water Operators, Water Quality for Distribution System Operators and New Watermain Commissioning Course. DWQMS Awareness training occurred for new staff. • Replaced watermains as outlined in the 2022 City of Kitchener Engineering & Water Utility Capital Forecast. • External audit determined that the management system is effectively implemented and maintained and recommended continued certification of accreditation for the municipal drinking water system. • Increased erosion and sediment control procedures during watermain breaks to minimize sediment from entering storm sewer and to provide rehabilitation steps if sediment does enter storm sewer or watercourses. Sediment control/rehabilitation costs associated with watermain breaks can be significant. • Locate related costs are expected to increase significantly in 2023 due to new regulatory requirements. Locating costs are split between gas and water. A Locate Review is currently being led by the City's Internal Auditor to evaluate the service level, risk and resourcing needs associated with new legislative requirements. Continuing Areas of Focus are: • Continue with tasks associated with the next WIP review. • Re -endorsement of the DWQMS Operational Plan by Council. 4 Page 45 of 119 xit�nerCity of Kitchener Water Distribution Uti�el DWQMS Management Review • Approval of the Water Distribution System Financial Plan as part of Application for Renewal of Licence due later this year. • Proceed with improvements to the As -built process in conjunction with Engineering, specifically hiring the additional resource approved through the budget process. There has been difficulty filling this position. Hiring staff is the last outstanding item related to the 2020 MECP inspection which flagged that The owner did not have up-to-date documents describing the distribution components as required. As-builts and GIS mapping is required within 12 -months from when a new watermain is commissioned. A number of process changes have been completed over the last 2 years to improve turn- around time. • Development and roll out AMANDA solution for better tracking of Backflow Prevention/Cross Connection program. • Development of a water disruption communication tool. The existing Watermain Break App provides for updates to the website and email for emergency watermain breaks but there is no notification for planned water outages or emergency outages associated with other infrastructure (valves, services). • Check valves along the LRT. The valves are largely new but are deemed to be critical due to potential impacts to the LRT. • Hydrant mobile field inspections are anticipated to be rolled out in spring 2023. It is anticipated that the solution will provide efficiencies by minimizing data entry and provide faster deficiency follow-up. • Proceed with OnPoint roll-out to replace ArcReader infrastructure mapping. • Proceed with filling technical water position approved as part of the 2023 budget process. • Participation in locates review with Internal Auditor. Background One of recommendations from Justice O'Connor's Part Two Report of the Walkerton Inquiry was "The Ministry of the Environment should require the owners of municipal water systems to obtain an owner's licence for the operation of their waterworks". Justice O'Connor also recommended that the Owners and Operating Authorities of these systems implement a quality management approach to operations and management. As a result of these recommendations a Drinking Water Quality Management Standard (DWQMS) under the Safe Drinking Water Act, 2002 was released in October 2006. The Safe Drinking Water Act, 2002 and Regulation 188/07, requires the City of Kitchener to be licensed to operate and maintain Kitchener's Water Distribution System. Some of the licensing requirements include the development and management of a Quality Management System (QMS) and Operational Plan as well as communication to the Owner. The City of Kitchener became licensed in August 2009 with a Financial Plan originally submitted in July 2010. Renewals of the Licence and Financial Plan were complete and brought forward to Council in 2014 and 2018, and every 4-5 years thereafter prior to each Drinking Water System License 5 Page 46 of 119 xit�ner6l � City of Kitchener Water Distribution Uti�el DWQMS Management Review renewal. The Financial Plan will be brought forward to Council in 2023 and an application for licence renewal will be made in late 2023. Section 19 of the Safe Drinking Water Act, 2002 imposes a statutory standard of care on persons who oversee the municipal drinking water system: "...every person who, on behalf of the municipality, oversees the accredited operating authority of the system or exercises decision-making authority over the system." This standard of care includes Council since they have decision-making authority as the `Owner" of the system. Part of the standard of care includes requiring system owners to undertake financial planning and implement a QMS. The following link is a guide for municipal councillors to help understand their responsibilities under the Safe Drinking Water Act, 2002 and provides information on how Ontario's drinking water is safeguarded: Taking Care of Your Drinking Water: A Guide for Members of Municipal Councils I ontario.ca Three things to remember as a municipal councillor (as outlined in the above Guide): • It's your duty. There are legal consequences for not acting as required by the standard of care, including possible fines or imprisonment. • Be informed. Your decisions can have an impact on public health. You don't have to be an expert in drinking water operations, but you do need to be informed about them. • Be vigilant. It is critical you never take the drinking water safety for granted or assume all is well with the drinking water systems under your care and direction. Other Related Water Quality Reports The City of Kitchener Summary Water Report for 2022 is a regulatory report provided to Council, which provides a summary of drinking water including adverse water quality incidences and water volume. The Kitchener Distribution System prepares an annual summary of the number of tests taken within the distribution system as well as the range of the results. A copy of this report is available on the Kitchener Utilities website. The Kitchener Distribution System is part of an Integrated Urban System, meaning the Regional Municipality of Waterloo is responsible for water treatment and the development and operation of a trunk water network to distribute treated water to Kitchener, Cambridge, Waterloo, Woolwich, and Wilmot. There is a variety of groundwater supply wells (80%), treatment facilities as well as a Grand River (20%) source. The Region of Waterloo's water infrastructure system is complex, consisting of numerous supply sources, pressure zones, reservoirs, and pumping stations. Ensuring sufficient pressure and quantities to meet current and planned growth requires a long-term, co-ordinated strategy. The Region provides annual summaries for each supply and the information is available on their website with a link available at the Kitchener Utilities website. 6 Page 47 of 119 xit�ner6l � City of Kitchener Water Distribution Uti�el DWQMS Management Review A portion of Kitchener (River Ridge area) is supplied by the City of Waterloo. Kitchener supplies water to a small section of Waterloo (Ira Needles area) and water travels through the Kitchener distribution system to Breslau (Woolwich). The City of Waterloo's water quality report is available on their website. Quality Management System Policy Kitchener Utilities owns, maintains, and operates the City of Kitchener's Drinking Water Distribution System. At Kitchener Utilities, we are committed to supplying the City with safe drinking water. We work together as the City of Kitchener and the Region of Waterloo to keep water matters top of mind. We are committed to these principles: 1. Quality Kitchener water is safely treated and regularly tested according to government legislation and regulations for the consistent delivery of safe, quality drinking water. We are committed to maintaining and continually improving the Quality Management System and complying with applicable legislation. 2. Trust Trust us to look after your water needs by delivering quality water and reliable service. 3. Value Tap water is the most economical choice. 4. Communication We will communicate openly with the public concerning matters of drinking water quality. 7 Page 48 of 119 xit�ner6l � City of Kitchener Water Distribution Uti�el DWQMS Management Review PART B — MANAGEMENT REVIEW System Description The scope of the waterworks begins at the point where treated water enters the watermain from the treatment facilities and ends at the property lines of the consumers. There is no storage, chlorine boosting, secondary disinfection or pressure boosting within the control of the waterworks. At the end of 2022, the waterworks consists of approximately: • 924.6 km of distribution watermain — 792 km Kitchener owned, 23 km Dual owned (joint ownership between Kitchener and Region) and 109 km Regional owned . • 70,572 water meters in service. • 4,717 hydrants (not including private hydrants). • 8,005 valves (not including service valves or hydrant valves) — 7,445 Kitchener owned, 130 Dual and 430 Regional. (See Appendix for a map at end of this document) The waterworks system has the following permits and licences: • Municipal Drinking Water Licence • Drinking Water Works Permit • Financial Plan • Operational Plan Water Infrastructure Program The Water Infrastructure Program (WIP) was initiated in spring 2017. Targets for Year 5 of maintenance -related work were achieved, included: • Watermain cleaning program - cleaned 168km of the City. • Valve maintenance and replacement programs — operated approximately 1,873 valves and replaced 21 broken or failing valves. • Hydrant operation and maintenance — completed as required. • Underground utility locates — continued to meet regulatory requirements with a combination of in-house and contract staff (17,885 locates completed). • Approximately 3,300 services are protected by Backflow Prevention (BFP), approximately 2,400 still require protection. The exact number of devices will not be reportable until the new system is fully operational, anticipated in 2023. COVID Impacts M Page 49 of 119 xit�nerCity of Kitchener Water Distribution Uti�el DWQMS Management Review • COVID impacts were lessened in 2022, however there were ongoing difficulties with parts/supplies on back order and cost increases. There are indications that the cost increases and supply chain issues will continue into 2023 and may impact reconstruction project costs. Staff are monitoring trends closely to determine appropriate mitigation actions. • A regulatory relief was provided for the spring and fall lead sampling program — hydrants were only sampled, no internal sampling. A request for relief from the spring 2023 program has been granted. Incidents of Regulatory Non Compliance A Ministry of Environment, Conservation and Parks (MECP) completed an announced inspection on June 23, 2023, and covered June 23, 2021, to June 23, 2022. There were no notices of non-compliance. A notice of violation was created by the MECP on September 16, 2022, relating to three watermain breaks which occurred on September 14, 2022. Due to a lack of erosion and sediment control measures, significant sediment was discharged to Sandrock Creek. Corrective action included hiring a third party to assess the creek, completion of recommended remediation activities, creation of new procedures to prevent future issues and training staff on the procedures. Incidences of Adverse Drinking Water There were 15 Adverse Water Quality Incidences (AWQI) during the year. One self-imposed Boil Water Advisories (BWA) was initiated in 2022 and one Drinking Water Advisory (DWA) was initiated. The volume of AWQIs decreased from 2021, the majority of the decrease was related to temporary watermains used during construction. Temporary watermains are particularly sensitive as they are above ground systems influenced by the water heating up in warmer temperatures. This may increase the potential for bacteriological growth. Warmer weather seems to increase the incidences of Total Coliform. The additional challenge with temporary watermains is the sample port is located outside and subject to unsanitary conditions. Many contractors remove the sampling ports when not in use because they are subject to vandalism/theft. These ports need to be maintained in a sanitary condition between uses. The general nature of reconstruction projects often leads to "false positives", where the results received are more reflective of what is on the sampling tap, rather than what is in the water. Every positive result is reportable, and resampling must occur in accordance with regulations. When the resamples are clear, it is an indication that the issue was with the sampling port, not in the water. Additional communications efforts to contractors regarding the importance of maintain the sampling ports in a sanitary manner was made over the 2022 construction season. These communication efforts will continue for 2023 and beyond. • Low chlorine AWQIs (8 total) 9 Page 50 of 119 xit�ner6l � City of Kitchener Water Distribution Uti�el DWQMS Management Review o Six were in areas of new subdivisions with no houses yet built. Along with dead ends, KU proactively flushes new areas until there are homes built and water is being used. • Total coliform AWQIs (5 total) 0 4 were at temporary main sampling locations. 0 1 was at a distribution sampling location. • Boil Water Advisory (BWA — 1 total) o E -Coli present in distribution sample for KID 129 Victoria Hills Community Centre. • Drinking Water Advisory (DWA — 1 total) o Non -Potable Grease found on Fitting at 2 services • Lead: o No lead adverses were reported in 2022. Due to COVID, the spring and fall lead program was reduced to sampling for lead at hydrants (relief was granted by MECP). No exceedances were reported. In general, corrective actions include reporting, flushing and resampling. The above AWQIs were all resolved. The Summary Water Report for 2022 discusses water quality compliance and corrective actions further. Action: No further action required — for information only 10 Page 51 of 119 xitner� 61 City of Kitchener Water Distribution Utes N d Q 0 �C G M Z Nu DWQMS Management Review Adverse Water Duality Incidents (AWDIs) Deviations from Critical Control Points Limits and Response • There were 93 watermain breaks in 2022, which is slightly higher than the 5 -year average of 84. Of the 93, 17 were deemed to be Category 2. Category 2 watermain breaks require bacteriological sampling upon completion. The 5 -year average increased slightly due to an increase in watermain breaks in 2022 over 2021 as well as the removal of a low break year (2017 was 79 breaks). Watermain breaks are influenced by the watermain age/condition, material type, and is also heavily weather dependent due to the frost movement with colder winters resulting in more breaks. Incident debriefs are completed for watermain breaks and break history is included as part of asset condition. This information helps to determine priorities for replacement due to condition. 11 Page 52 of 119 Kitchener City of Kitchener Water Distribution Utilities N Y 0? L m E L G L M E M z Year A art Number of Bre DWQMS Management Review Number of Watermain Breaks by Year 12 Page 53 of 119 KilA City of Kitchener Water Distribution Iffilities DWQMS Management Review Mainbreaks - 5 year average 2015 2016 2017 2018 2019 2020 2021 2022 -A,__ 6A Number of Watermain Breaks per 100 km 18.0 16.0 14.0 12.0 E Y c 10.0 e m 8.0 m i Ca 6.0 4.0 2.0 0.0 Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Breaks/100 km 7.7 14.2 16.1 15.8 7.8 8.9 10.7 10.0 6.9 8.5 10-1 13 Page 54 of 119 xit�ner6l � City of Kitchener Water Distribution Uti�el DWQMS Management Review • Unaccounted for water for was 10%; the MECP target is 10%. Water loss includes water used for construction watermain commissioning (e.g., new mains and replacement mains), water for temporary main supply during reconstruction, and water use for reactive flushing). The 10 -year average for Kitchener is 9.9%, although the percentage fluctuates. • Infrastructure Leak Index (ILI) is a performance indicator which is the ratio of the level of Current Annual Real Losses (CARL) to the Unavoidable Annual Real Losses (UARL). The UARL considers the total length of watermain in the distribution system, number of hydrants, average pressures, number of service connections, length of service and hydrant connections. The UARL is the theoretical low limit of leakage that could be achieved if all the current best leakage management could be implemented. The URAL is specific to each water system. For example, the UARL for a large system with high pressure will be higher than a small system with low pressure. Leakage in any water system can never be totally eliminated. One caveat is that the calculation is made based on an average pressure. Kitchener has several pressure zones with a great deal of variation across the city. As part of the National Water and Wastewater Benchmarking Initiative (Benchmarking), Kitchener recently began reporting ILI and trending will be established as more data is generating. Benchmarking is completed on the previous year's data. The 2021 ILI value was 1.75 meaning the current level of real losses is 1.75 times greater than the theoretical low level losses. The ILI graph is a comparison to other Cities participating in 2021 benchmarking. 14 Page 55 of 119 KiIAI City of Kitchener Water Distribution DWQMS Management Review Percentage Unaccounted For Water 15 Page 56 of 119 Hitchener6l City of Kitchener Water Distribution r DWQMS Management Review Displaying: Infrastructure Leakage Index - Non Outliers •ILI ■Related KPI 4 3 a 7 7 2 a Y 7 I KIT Action: No further action required — for information only Effectiveness of the Risk Assessment Process • A risk assessment was completed on September 22, 2022. For 2022, attendees included staff from the Region of Waterloo and City of Kitchener. The purpose of the risk assessment was to brainstorm potential risks and identify counter measures, where appropriate. The following is a summary: 16 Page 57 of 119 xit�ner6l � City of Kitchener Water Distribution Uti�el DWQMS Management Review o Reviewed all risks to ensure all information and assumptions are current and valid. Also discussed and added the following new potential risks: ■ Cyber Security. ■ Telecommunications provider outage. ■ OnPoint GIS mapping system to replace existing ArcReader system (not scored — additional info required). ■ Equipment and Supplies shortages. ■ Cost of chemicals, construction costs, etc. due to inflation. o Preventive / Control measures and risk score updated for several existing risks and added for the new risks above. Action: For Information Only Results of External and Internal Audits The DWQMS Standard is divided into Plan, Do, Check, and Improve sections. Audits are completed to analyze processes to confirm that what is stated in the procedures and work instructions is what is being done. External Audits are completed by a third party while Internal Audits are completed by accredited City saff. External: • In 2022, two audits were conducted and completed by a certified external auditor (SAI Global) — Certificate of Accreditation achieved. o Systems Audit — October 5 — October 6, 2022. No non -conformances were found. One opportunity for improvement was identified. o Reaccreditation Audit — November 1 — November 2. 2022. No non -conformances were found. Three opportunities for improvement were identified. Internal: • 5 Field audits were conducted in 2022: o New Development Flushing o Tool Room o Water Tapping o Water Service Cut-offs o Curb Stop Repair • 4 Element audits were conducted in 2022. • 17 opportunities for improvement were identified from internal audits in 2022. As of December 31, 2022, 0 5 (29%) of these opportunities have been acted upon and implemented; 0 2 (11%) of these opportunities could not be implemented; and 0 10 (60%) of these opportunities are still being investigated. • Zero nonconformances and zero non -compliances were found during the internal audits. 17 Page 58 of 119 xitdwneb City of Kitchener Water Distribution UfiWes DWQMS Management Review • Seven nonconformances were found outside of the internal audits. All have been resolved with follow-up completed: o Plug style main stop with non -NSF grease o Chlorine residuals above 2.Omg/L need to be reported since equipment does not accurately read above this level o Notice of violation relating to sediment release o Digital sign -off was delayed on weekly chlorine residuals o Categorization of watermain break was incorrect o Water sample was not taken immediately after a main break o Low chlorine residual adverse was not called in by staff member immediately A previous 2020 non-conformance is still outstanding (CAR 42). The Owner did not have up-to-date documents describing the distribution components as required. At the time of the inspection, the City was in the process of updating the distribution map which is referenced in Table 1 of the DWWP. Condition 3.5 in Schedule B of the DWWP requires the City to update the map within 12 months of any additions, modifications, replacements or extensions to the distribution system. For further clarification, the 12 month clock starts when a watermain is commissioned and the public is able to consume the water from the respective watermain. A number of process improvements were made. The remaining item is to fill a dedicated AutoCAD resource position to complete as -recorded drawings/submissions for internal projects as well as process those completed by consultants on City reconstruction projects. Process improvements have been made over 2020/21 include: o A First Submission Asset Drawing Checklist was developed for consultants o Kitchener Utilities will not conduct final water inspections until as-builts have been received and mapped in GIS o Letter of Credit is not reduced until the As -Recorded information has been accepted o GIS boundaries to flag projects under construction, until as-builts have been received. o New Water As -Built Drawing Work Instruction Procedure with monthly email alerts o Regional mapping of projects where City infrastructure is replaced o Development Storyboard as a reference for consultants to fill out as -built information o Revised attribute template to streamline data connection o Topology fixer to minimize errors back to consultant o Attribute checker to allow consultants to check their own data o Entering red -line construction documents Continuous Improvement 1s Page 59 of 119 ffitchener6 City of Kitchener Water Distribution UUMes r DWQMS Management Review Continual Improvement is a key element of all quality management systems and we are regulated to have a process to identify and implement preventative actions to eliminate the occurrences of potential non -conformities. Opportunities for improvement can come from many sources, such as external audits, staff suggestions, public concerns, management reviews, debriefs, or the risk assessment meeting. In total for 2022, excluding the results from internal audits, there were: • 98 opportunities for improvement, of which: 0 51 (52%) were acted upon and implemented; 0 6 (6%) could not be implemented; and 0 41 (42%) are still being investigated. OFI's, Non -Conformances, Non -Compliances by Year 120 100 80 60 40 20 ' 2 1 I 4 0 2 4 2019 2020 2021 ■ Audit OFI's ■ Other OFI's ■ NonConform- ■ NonCompliance- 2022 Action: The Continual Improvement Log is updated monthly to discuss new items, track process and circle back to determine the effectiveness of implementation. The log is be reviewed annually with Top Management as part of the Management Review. Results of the Emergency Response Training/Testing • New On -Call Management Staff took the IMS -100 Introduction to the Incident Management System (IMS) for Ontario training • Water Emergency — Management training was provided to supervisors and management in January 2022. • Debriefs are also completed for selected events. For example, debriefs after Boil Water and Drinking Water Advisories are completed to improve our processes. Action: No further action required — for information only 19 Page 60 of 119 xit�nerCity of Kitchener Water Distribution Uti�el DWQMS Management Review Operational Performance • Ongoing work with the Region for the Zone 2 and 4 Optimization — this will improve water pressures and supply in the southeastern end of the city. The majority of the work is Regional; however, there is coordination work with the City. This work is dependent on timing of development in the areas and as development proceeds, additional sections of the main are installed. The section between Strasburg Road and Robert Ferrie Drive is awaiting the completion of the Environmental Assessment for the Road extension. • The Region's Zone 4 Trunk Watermain project includes the installation of 750mm concrete pressure pipe watermain from the Mannheim Water Treatment plant across the southern portion of the City to Strasburg Rd. The watermain was brought into service on January 23, 2023. Action: No further action required — for information only Raw Water Supply and Drinking Water Quality Trends There are known seasonal issues with the water supply: • Fall - Grand River temperature changes may cause odour challenges in the source water, which may increase flushing requirements. • Winter — temperature extremes may cause more watermain breaks in the system. Action: No further action required — for information only Follow-up on Action Items from Previous Management Reviews Action items were completed as part of the revised report and associated council report. Action: No further action required — for information only Status of Management Action Items Identified Between Reviews There were no items identified between the management reviews. Action: No further action required — for information only Changes That Could Affect the Quality Management System • The Federal government has a manganese limit, however the current provincial regulations, which Kitchener is required to follow only has an aesthetic limit. It is anticipated that the Province will follow the federal guidelines and implement a maximum allowable concentration. The Strange Street upgrades were complete in anticipation of this regulatory change. 20 Page 61 of 119 xit�nerCity of Kitchener Water Distribution Uti�el DWQMS Management Review • There are indications that the lead maximum allowable concentration will be reduced, which will likely increase the number of lead tests that exceed the regulatory limits. Customers are not required to complete any corrective actions when elevated lead exists. The City is required to flush and resample if there is a lead adverse in the distribution system. The City tracks streets with lead or suspected lead and includes them as part of the considerations for replacement. It is most cost effective to replace a number of lead services as part of a road reconstruction project, rather than individual services. • Bill 23, More Homes Built Faster Act, 2022 and Bill 109, More Homes for Everyone Act, 2022. It is anticipated that changes in the Development Charge (DC) Framework and decreased DC revenue could hamper the City's ability to supply infrastructure in a timely and coordinated manner to support grown (e.g., Strasburg Road South & Watermain project). o Kitchener does not have surplus funds in the DC reserve fund that are not allocated to a future project. o It is anticipated that the Province's investment to help unlock and build housing supply will increase the volume of subdivision and site plan review and processing for Drinking Water Works Permits. o Bill 23 may impact the Region's Official Plan update and the existing urban boundary. o Bill 93 — "An Act to amend the Building Broadband Faster Act, 2021 and the Ontario Underground Infrastructure Notification System Act, 2012" which is related to locating infrastructure, has set out several new requirements that the City of Kitchener (the infrastructure owner) must meet. The first being a strict adherence to a 5 day locate completion timeframe. Locates not completed within this timeframe are now subject to an Ontario One Call fine and it is now possible for excavators to seek compensation from a loss or expense incurred due to the locate being late. It is expected that locating costs will increase significantly in 2023. A Locate Review is currently being led by the City's Internal Auditor to evaluate the service level, risk and resourcing needs associated with new legislative requirements. Action: No further action required — for information only Consumer Feedback • The number of customer water complaints continues to decrease. Dispatch staff guide customers through a number of questions to determine whether the problem is suspected to be internal (plumbing) or external (distribution system). • The problem, cause, and remedy are tracked for each complaint. • Discoloured water complaints are often the result of changes in flow in the system. This can be due to reconstruction, watermain cleaning, watermain breaks, valve replacement and other construction. 21 Page 62 of 119 Kier/6 City of Kitchener Water Distribution Utilities DWQMS Management Review • Low pressure complaints are largely internal issues (softeners, internal plumbing). • Other complaints include water hardness, no water, odour/taste, air in lines (white water), customer sample requests. We are seeing more residents moving into Kitchener who may not be familiar with water hardness and education is a component of resolving the concerns. • In general, a number of customer complaints can be resolved by educating the customer (water hardness), flushing/sampling (discoloured water) or confirming private side issue (water softener, pressure reducing valve, drain issues) Distribution of Customer Water Complaints 450 450 400 400 350 350 300 300 250 . ■ 250 200 15500 ■ ■ ■ ■ 150 100 100 50 50 0 0 2016 2017 2018 2019 2020 2021 2022 Customer Water Complaints 395 242 279 295 142 148 105 ■ Other 167 63 65 83 52 42 31 ■ Low Pressure 81 96 101 107 47 66 46 ■ Discoloured Water 147 83 113 105 43 40 28 Action: Continue with proposed watermain cleaning area in 2023. Resources Needed to Maintain the Quality Management System • A mobile solution for inspection data entry would decrease administrative burden. A mobile water valve program was implemented in 2020 and there are a number of programs that could be mobile. Anticipated that a mobile application for hydrant inspections will be rolled -out in 2023. • An Issue Paper requesting a technical position to address the growing demand on the water utility was submitted for the 2023 budget. Action: Proceed with posting for the position following approval of 2023 budget process. 22 Page 63 of 119 xit�nerCity of Kitchener Water Distribution Uti�el DWQMS Management Review Results of the Infrastructure Review • The Water Utility Asset Management Plan was completed and captured watermains, valves, hydrants, and meters. Asset Management Plans are required for all core and non-core asset classes (roads, storm, parks, facilities etc.), prepared in accordance with Ontario Regulation 588/17 — Asset Management Planning for Municipal Infrastructure. The water assets have a value of more than $1 Billion and are generally in very good condition. Overall, watermains are more than halfway through their useful life. This can be attributed to an increase in infrastructure investments made between the 1950s and 1970s. These assets may be beginning to deteriorate and could require replacement or rehabilitation. This is being addressed through the WIP. • Individual project selection is based on a number of factors including condition (watermain break history), material, criticality, watermain size, presence of lead services, shallow mains, and other infrastructure needs (storm, sanitary, road). • 2022 reconstruction projects were largely completed as per the 2022 Engineering/Storm/Sanitary/Water Capital Forecast • The Region replaces some Kitchener infrastructure as part of their projects (Kitchener funded). • 2023 projects were finalized; however, it should be noted that there were a number of Regional projects moved out to future years in the Regional capital program. • Meetings were held with Asset Management and Engineering staff at both the City and the Region to determine future project needs. • Issue papers are brought forward as part of the budget process, additional funding requests related to maintenance and water -only capital projects. The majority of water - only projects are included as part of Regional roadwork to minimize disruptions to citizens and be cost effective. Action: No further action required — for information only Summary of Maintenance • Watermain cleaning — Approximately 168kms of watermain was cleaned in 2022. The 2022 watermain cleaning area map is shown below. The next map shows the proposed 2023 area in pink/red. The 2023 area was previously cleaned in 2017 thus re -starting the 6 -year cleaning cycle. The purpose of watermain cleaning is to remove iron and manganese build up in the watermains. The iron and manganese cause discolouration in the water. Although iron and manganese are naturally occurring and not health related, discoloured water causes a public perception of issues with the drinking water. Provincial health related regulations are anticipated for iron and manganese. 23 Page 64 of 119 Kitchener City of Kitchener Water Distribution Utilities DWQMS Management Review Completed 2022 Watermain Cleaning Area (light green) Kitchener Utilities Watermaln Cleaning Schedule Kitchi,—Utihties wa Either zoom to your address or type in your address in the search (using the magnifying glass near the top left corner of the map), then click on the avaternna n cleaning area that covers your address to identity the status o£work in your area, This data is updated every mooning. ls�+vasr-s Petersburg aAo oP 0 4 l Proposed 2023 Watermain Cleaning Area 24 Page 65 of 119 t e 61 City of Kitchener Water Distribution Uti es DWQMS Management Review Kitchener Utilities Watermain Cleaning Schedule Either zoom to your address or type in your address in the search (using the magnifying glass near the top left corner of the snap), tt of work in your area. This data is updated every morning. �e Gsave Rd. 38 Rio�r�ida Park �;Pre-st�n_ • Hydrant maintenance — spring maintenance was completed on all hydrants and all hydrants were dipped in the fall. • Hydrants are flushed to maintain chlorine residuals was completed in spring and fall. • New development areas are flushed monthly until the subdivision is built-up. • A valve turning/exercising program was completed for 1,863 valves — the majority of valves were operated in the watermain cleaning area with additional valve operation in 25 Page 66 of 119 xit�nerCity of Kitchener Water Distribution Uti�el DWQMS Management Review areas of reconstruction. Operating valves ensures that they will work when they are needed in an emergency or for construction activities. • There were 21 broken valves and/or failing valves were either replaced or removed which allows for quicker isolation for water emergencies. Broken valves are tracked in real time and the majority are addressed within weeks (except for winter). At the end of 2022 there were 11 broken valves remaining, 7 of which will be replaced as part of future reconstruction work. • 450 hydrants were painted. • Leak detection survey — 1/3 of city completed each year. Follow-up is completed on potential leaks. Approximately 330km of mains were surveyed resulting in 4 possible hydrant leaks — the majority of which were repaired by tightening the nuts of the hydrants. No leaks were found. • Staff continue to inspect new connections and cut and caps for reconstruction and new development. Staff complete all new service tappings for development as well as witness old service abandonment. This work requires 48 hours to schedule and is driven by new development and watermain replacement work. • Erosion and sediment control procedures were developed and rolled -out to staff. • Anodes are installed on existing watermains whenever they are exposed (e.g., watermain breaks, valve repairs, hydrant repairs). • Pressure Reducing Valves (PRVs) were inspected. • Chamber inspections/pump outs for chambers containing air relief valves — approximately 130. Air reliefs are a potential risk to the system if they become submerged and there is a watermain break or incident in the distribution system. A study was commenced in 2022 to determine which air reliefs could possibly be removed. • Staff continue to use the watermain break app for reporting breaks, which improves customer communication for breaks Action: No further action required — for information only Effectiveness of Maintenance Completion of numerous maintenance programs associated with the water and the infrastructure are essential for the delivery of safe drinking water, although not all maintenance programs have been identified. The effectiveness of the maintenance program is determined by the following key factors: • Number of Adverse Water Quality Incidents • Water loss/unaccounted for water • Water quality complaints • Number of watermain breaks 26 Page 67 of 119 xit�ner6l � City of Kitchener Water Distribution Uti�el DWQMS Management Review The system performance has demonstrated effectiveness by achieving: • There were 15 AWQIs (downward trend and an indication of water quality). • Water loss/unaccounted for water was 10% (at the target of 10%). • The number of quality complaints was at 105, 26% of which were related to discoloured water and 44% pressure (largely internal issues). The remainders included complaints relating to hard water (new residents are not always familiar with hard water), and general safety concerns. The watermain cleaning program has decreased the number of complaints. • There were 93 watermain breaks in 2022, which is a bit higher than the 5 -year average of 84 breaks/year. Action: No further action required — for information only Operational Plan Currency, Content and Updates • The Operational Plan is updated annually. Action: No further action required — for information only Staff Suggestions Staff suggestions are included under the new Continual Improvement section of the report. Other • Water Meter Replacement — 6,065 aging water meters were replaced. There are 70,572 meters in the system. There are currently water meter supply issues. An Advanced Metering Infrastructure (AMI) option will be brought forward as part of the WIP report. Given the meter shortages and potential of meter change outs as part of AMI, there are no large-scale meter replacement plans for 2023. • Development growth is anticipated to continue with both new subdivision, site plans and redevelopment, which creates technical demands for Drinking Water Works Permit approvals, commissioning plan approvals and on -demand inspection requirements for final connections, tappings and cut and caps. • Water Consumption Trends — water consumption has increased since 2018 as population growth demands increase. Average residential daily consumption values were decreasing prior to the pandemic but increased in 2020. The 2021 values decreased slightly; however 2022 benchmarking values are not yet available. Kitchener average residential daily consumption levels are lower than many comparison municipalities (around the 25th percentile). The Region of Waterloo is initiating an update to their Water Supply Strategy, to look at current water supply sources, assessing future water demands and investigating possible new water 27 Page 68 of 119 xitner� 61 City of Kitchener Water Distribution Utes DWQMS Management Review sources. The previous Water Supply Master Plan was completed in 2015. The Strategy will develop and evaluate recommendations to meet future water supply needs in Waterloo Region to 2051. The Water Supply Strategy will build on previous master plans, and will look at: • Current sustainable water supply sources and water demands. • Population growth and how it impacts future water demands. • The gap between today's water supply and tomorrow's needs and resourcing that gap in a sustainable, efficient way. • The effect of climate change on our water supply resources. 28 Page 69 of 119 KilA City of Kitchener Water Distribution Iffilities 25,000,000 tI1�lIlIl�IIlI1: E 15,000,000 L 41 41 10,000,000 5,000,000 C: DWQMS Management Review Water Purchased (m3/year) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year Displaying: Average Residential Daily Consumption (L / Cap / day) •KIT *25th Percentile •Median A75th Percentile 300 250 200�'_- -_____� d__________ Ift_—__ _ aC1ii 7 150 — "-- -___V111[ ii 100 50 0 2014 2015 2016 2017 2018 2019 2020 2021 kaiE'. Pero values will have data labels above the respective year. If data labels are missing then the value is missing! blank. 29 Page 70 of 119 Kier/ City of Kitchener Water Distribution Utilities ll DWQMS Management Review • Locates - Kitchener Utilities and their Locate Service Provider physically locate gas and water infrastructure for contractors prior to construction and excavation work. Approximately 17,885 locates were completed in 2022, which is up from 2021 levels and the highest levels ever experienced. Locate volumes are driven by customer requests and construction. Bill 93 will likely create additional financial impacts (see Changes That Could Affect the Quality Management System section). Action: No further action required — for information only 20,000 18,000 16,000 14,000 N 12,000 V d J 0 10,000 L 7 8,000 Z 6,000 4,000 2,000 0 Locates 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 30 Page 71 of 119 Kitchener City of Kitchener Water Distribution Utilities DWQMS Management Review AnnPndiv 31 Page 72 of 119 Staff Report Infrastructure Services Department www.kitchener.ca REPORT TO: Community and Infrastructure Services Committee DATE OF MEETING: March 6, 2023 SUBMITTED BY: Greg St. Louis, Director, Gas & Water Utilities, 519-741-2600 ext. 4538 PREPARED BY: Angela Mick, Manager, Quality Management and Water Programs, 519-741-2600 ext. 4408 WARD(S) INVOLVED: Ward(s) DATE OF REPORT: January 19, 2023 REPORT NO.: INS -2023-010 SUBJECT: Summary Water Report - 2022 RECOMMENDATION: That the 2022 City of Kitchener Summary Drinking Water Report be received for information as required by O.Reg. 170/03 Schedule 22 of the Safe Drinking water Act; and, further that the City of Kitchener provide a copy of the Summary Drinking Water Report to the Township of Woolwich and the City of Waterloo as required by Schedule 22 of O. Reg. 170/03. REPORT HIGHLIGHTS: The key finding of this report is that the City of Kitchener is in compliance with regulatory water sampling requirements of the reporting period of January 1, 2022 to December 31, 2022. There are no financial implications of this report. The report supports the delivery of core services. BACKGROUND: As outlined in Schedule 22 of the Drinking Water Systems Regulation (O.Reg.170/03) of the Safe Drinking Water Act, 2002, a Summary Report is to be prepared and given to the members of the municipal council. The following information is required to be included in this report: Page 73 of 119 (a) list the requirements of the Act, the regulations, the system's approval and any order that the system failed to meet at any time during the period covered by the report and specify the duration of the failures; and (b) for each failure referred to in (a), describe the measures that were taken to correct the failure. The report must also include a summary of the quantities and flow rates of the water supplied during the period covered by the report. REPORT: The following matters are reported to Council in accordance with the requirements of the Safe Drinking Water Act, for the period from January 1 to December 31, 2022: • The Kitchener Distribution System is part of an Integrated Urban System, meaning the Regional Municipality of Waterloo is responsible for water treatment and the development and operation of a trunk water network to distribute treated water to Kitchener, Cambridge, Waterloo, Woolwich, and Wilmot. The Region provides annual summaries for each supply and the information is available on their website with a link from the Kitchener Utilities (KU) website. Reports from the connected systems have been or will be received. • A portion of Kitchener (River Ridge area) is supplied by the City of Waterloo. Kitchener supplies water to a small section of Waterloo (Ira Needles area) and water travels through the Kitchener distribution system to Breslau. The City of Waterloo's water quality report is available on their website. • The Ministry of Environment, Conservation and Parks (MECP) completed an annual inspection on June 23, 2022, which covered June 23, 2021 to June 23, 2022. There were no non -compliances found. • There were 3,943 chlorine residual samples taken and 2,311 bacteriological samples taken within the distribution system. Of these, there were 15 Adverse Water Quality Incidents (AWQI's) reported in this time period (see Table 1) and all resamples were clear. • The Lead Sampling program was minimal due to a pandemic related sampling relief, however all lead samples taken were below the limits. Summary of AWQIs An AWQI does not necessarily mean that the water is a risk to the customer. It means that a potential problem has been identified and corrective actions must be taken to resolve the problem. City staff work with ministry staff and the local public health unit to resolve the issue, which generally includes resampling. Low Chlorine Residual AWQIs • Low chlorine AWQIs can occur in areas of new subdivisions with no houses yet built. Along with dead end watermains, KU proactively flushes areas with new watermains until there are homes built and water is being used. Page 74 of 119 • Dead end watermain and new development flushing is a proactive approach to increase the levels of chlorine in the distribution system. The water is initially disinfected (primary disinfection) at the treatment plant and sufficient chlorine is added to protect the water from microbiological contamination as it travels through the pipes in the distribution system (secondary disinfection). Low chlorine does not pose a threat to human health; to have an impact to human health, there must be microbiological contamination and no, or extremely low, chlorine. Bacteriological AWQIs • The presence of total coliform on a test does not necessarily mean the water is unsafe to drink. Coliform bacteria can be found in many different environments. There are several different strains of coliform bacteria. Most are harmless and do not cause illness. Coliform bacteria are used as an "indicator organism" to assess the possibility of other disease -causing organisms, and their detection would prompt further investigation and/or corrective action. It is different than E.coli, which is a bacteria only associated with human or animal faecal matter. • When total coliform is found, a resample is done using a different technique, which provides a number of total coliforms to analyze in consultation with Public Health and the MECP. Based on a risk assessment of a number of factors including the coliform count, chlorine residuals, and upstream/downstream coliform counts, the requirement for a boil water advisory is determined. • Four (4) total coliform AWQIs were at temporary sampling locations within reconstruction projects. Temporary watermains are particularly sensitive as they are above ground systems influenced by the water heating up in warmer temperatures. This may increase the potential for bacteriological growth. Warmer weather seems to increase the incidences of Total Coliform. The additional challenge with temporary watermains is the sample port is located outside and subject to unsanitary conditions. Many contractors remove the sampling ports when not in use because they are subject to vandalism/theft. These ports need to be maintained in a sanitary condition between uses. The general nature of reconstruction projects often leads to "false positives", where the results received are more reflective of what is on the sampling tap, rather than what is in the water. Every positive result is reportable, and resampling must occur in accordance with regulations. When the resamples are clear, it is an indication that the issue was with the sampling port, not in the water. • Six (6) Total Coliform AWQIs were related to flushing within new development areas. • There was one Boil Water Advisory as a result of a positive E.Coli sample at a community centre. Resamples showed the area was free of contamination Drinking Water Advisory • There was one Drinking Water Advisory on two addresses related to manufacture supplied fittings with non -potable grease. The fittings were removed from the system and will no longer be used. Sampling completed before and after the fittings were removed both showed oils and grease and semi -volatiles below lab detection limits. No further action was required. Page 75 of 119 Table 1 — Adverse Water Quality Incident Summary — January 1 to December 31, 2022 # Adverse Type AWQI Date AWQI # Site Name Site Location Results/Notes (verbal) 1 Low chlorine Jan 12/22 157573 Hydrant 13252 332 Broadacre Free=0.00mg/L Dr. Total=0.21 mg/L New development 2 Low chlorine Jan 13/22 157589 Hydrant 12972 20 Nathalie St. Free=0.01 mg/L Total=0.04mg/L New development 3 Low Chlorine Feb 8/22 157789 Hydrant 13395 332 Broadacre Free=0.04mg/L (hydrant was Dr Total=0.26mg/L remapped and New development given new number) 4 Total Coliform Feb 11/22 157827 KID 103 3111 King St E Total Coliform Present Present 5 Low Chlorine March 8/22 157948 Hydrant 13444 912 Nathalie Free=0.04mg/L Crt Total=0.11 mg/L New development 6 Total May 11/22 158359 KID 129 Victoria 10 Chopin DR Boil Water Advisory Coliform/E.Coli Hills Community May 11-13 present Centre Total Coliform/E.Coli Present 7 Total Coliform May 31/22 158541 SP -1A-1 115 Heather Total Coliform present Cambridge Ave Ave — Present Temp main Cambridge Temp main 8 Low Chlorine June 30/22 158951 KID139 Stanley 175 Indian Rd F=0.04mg/L Park Library T=0.26mg/L C=0.22mg/L 9 Total Coliform Sept 1/22 159812 S2 Lot 66 - 66 Traynor Ave F=0.03mg/L present Greenfield Ave & — Traynor T=0.71 mg/L Traynor Ave Temp Temp main C=0.68mg/L Main 10 Total Coliform Sept 1/22 159822 Temp 3-3 - 66 66 F=0.01 mg/L present Franklin St. South Franklin St S — T=0.96mg/L Franklin Temp C=0.95mg/L main 11 Low Chlorine Sept 7/22 159875 Hydrant 13479 213 Forestwalk F=0.04mg/L St T=0.10mg/L C=0.06mg/L New development 12 Total coliform Sept 22/22 160106 1105 King St E Ottawa/King F=0.04mg/L present Temp main T=1.19mg/L C=1.15mg/L 13 Low Chlorine Nov 7/22 160583 Hydrant 14046 115 Forestwalk F=0.02mg/L St T=0.01 mg/L C=-0.01 mg/L New development 14 Low Chlorine Dec 6/22 160902 4553 King St E 4553 King St E F=0.00mg/L T=0.03mg/L C=0.03mg/L 15 Drinking Water Dec 15/22 160986 22 and 23 Nipigon 22 and 23 Non -Potable Grease Advisory Place Nipigon Place on Fitting Page 76 of 119 A summary of the quantities of the water supplied by the Regional Municipality of Waterloo during the period covered by the report is noted in Table 2. Overall water volumes were up slightly from 2021 volumes; however, there are some monthly differences, largely due to weather. Table 2 - Kitchener Distribution System Volume of Water Conveyed from the Region of Waterloo Supply System 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. Water Quality information is posted on the Kitchener Utilities website. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter, however the summary reports are provided on an annual basis with the last report being INS -2022-039 APPROVED BY: Denise McGoldrick, General Manager, Infrastructure Services Page 77 of 119 2022 Monthly Total (m) Average Day (m3) 2021 Monthly Total (m) Variance from Previous Year January 1,828,218 58,975 1,757,181 4% February 1,682,407 60,086 1,608,412 5% March 1,843,857 59,479 1,797,763 3% April 1,790,389 59,680 1,741,837 3% May 2,005,562 64,696 2,050,462 -2% June 2,116,758 70,559 2,058,790 3% July 2,202,117 71,036 1,978,721 11% August 2,068,490 66,725 2,043,450 1% September 1,936,868 64,562 1,819,106 6% October 1,920,074 61,938 1,809,145 6% November 1,790,295 59,677 1,723,132 4% December 1,847,662 59,602 1,790,483 3% Purchases from Waterloo 160,633 157,983 2% Total 23,193,330 22,336,466 4% 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. Water Quality information is posted on the Kitchener Utilities website. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter, however the summary reports are provided on an annual basis with the last report being INS -2022-039 APPROVED BY: Denise McGoldrick, General Manager, Infrastructure Services Page 77 of 119 Staff Report r NJ :R Development Services Department www.kitchener.ca REPORT TO: Community and Infrastructure Services Committee DATE OF MEETING: March 6, 2023 SUBMITTED BY: Garett Stevenson, Interim Director, Planning Division, 519-741-2200 ext. 7070 PREPARED BY: Tim Donegani, Senior Planner, 519-741-2200 ext. 7062 WARD(S) INVOLVED: Wards 3, 9, 10 DATE OF REPORT: February 22, 2023 REPORT NO.: DSD -2023-071 SUBJECT: Inclusionary Zoning for Affordable Housing: Status Update RECOMMENDATION: For information. REPORT HIGHLIGHTS: • The purpose of this report is to update council on intermunicipal work on inclusionary zoning, share the results of community engagement, and outline next steps. • There are no financial implications arising from this report • Community engagement included in person and digital meetings with potential occupants of inclusionary zoning units, the for-profit and non-profit housing development industry, and the community at large. Asynchronous engagement was undertaken on engageWR • This report supports A Caring Community. BACKGROUND: The City's strategic plan, and Housing for All recognize the importance of using a broad range of tools to advance critical housing affordability objectives. Inclusionary Zoning (IZ) is a tool that allows municipalities to require market residential developments to include some affordable housing units. IZ works by leveraging increases in value achieved through increased density, development approvals, investment in the ION light rail transit system and, increasing demand for centrally located housing to provide affordable housing. In this way IZ programs can be designed to work without government subsidies. IZ is one tool that can be used along side investments from all levels of government, non -profits and the private sector to help deliver new affordable units required to address the city's critical affordable housing needs. Because IZ results in lower rental or sale price revenue than without an IZ policy, IZ requirements need to be carefully crafted so as not to stifle market housing development in Major Transit Station Areas (MTSAs). *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 78 of 119 Inclusionary Zoning has been used extensively in the United States and some Canadian cities. Several other Ontario municipalities are working to advance inclusionary zoning. Mississauga's IZ regulations came into effect on January 1, 2023. Toronto's implementation of IZ is awaiting Provincial approval of Protected MTSAs. In September 2020 staff provided an update to council regarding a financial impact analysis of IZ through report DSD -20-150. The analysis by N. Barry Lyon Consultants (NBLC) tested several IZ policy options at MTSAs across the region. Potential IZ polices were developed using the principles of: • partnership with the development industry; • capturing value in new density and directing it toward affordable housing; • long term policy sustainability without financial subsidies; • targeting moderately affordable units; and • minimizing land market disruption. Key findings of that report were: • a modest but meaningful number of affordable units can be secured through IZ in the short term with a possibility for future growth; • different market characteristics across the MTSAs result in differing abilities to deliver affordable units; • incentives could be used to deliver more affordable units than under the base policy; • IZ policies should be introduced slowly to minimize land market disruption; • IZ implementation should be aligned with updating planning frameworks in MTSAs; • regional coordination, frequent monitoring and policy adjustments are recommended. Work on inclusionary zoning is being undertaken in collaboration with the cities of Cambridge and Waterloo, and the Region of Waterloo (the partners). Consulting services have been cost shared though a joint services agreement. In December 2022, through its consideration of report DSD -2022-501 regarding Bill 23, council expressed an interest in accelerating work on inclusionary zoning and asked staff to report back in Q1 2023. The purpose of this report is to explain work to date, provide community engagement highlights and outline next steps. REPORT: Regulatory Framework and Bill 23 IZ can only apply to multi -residential developments with 10 or more units within Major Transit Station Areas. Prior to approving an inclusionary zoning by-law, municipalities must: Requirement Status Prepare a housing assessment report to understand local Complete demographics and housing supply and demand Obtain an independent review of the impacts of IZ on the housing Complete. market and the viability of development; and Updates underway Establish Official Plan policies and zoning for Protected Major Transit In progress Station Areas that include, boundaries, density targets measured in persons and jobs per hectare, permitted uses, and minimum site -level density permissions Page 79 of 119 On November 28, 2022, Bill 23 received royal assent. Bill 23, and related regulations, among other things, propose changes to inclusionary zoning requirements which are not yet in effect. A summary of the changes and the City's response are included in report DSD -2022- 501. Specifically, the proposed regulatory changes for inclusionary zoning would: set an upper limit of 5% of the total proportion of units/floor area in a development that can be required to be affordable; set a maximum affordability period of 25 years, and; prescribe the lowest price/rent that can be required for inclusionary zoning units at 80% of the average market rent for rental units and 80% of average resale price for ownership units. What we've done 1. 2020 HOUSING ASSESSMENT - Council received a Housing Needs Assessment as background to Kitchener's Housing for All strategy (DSD -20-006). 2. 2020 FINANCIAL MODEL - NBLC tested various policy parameters that affect both achievement of affordable housing objectives, and development feasibility including: • "set aside" rate (proportion of units or floor area in a building required to be affordable); • duration of affordability (how long affordability must be maintained); • depth of affordability (the discount in price or rent as compared to the market); • the tenure of affordable units (rental vs. ownership). The implications on land market dynamics and financial viability were explored considering prototypical developments in MTSAs in all three cities. Details are included as appendices B and E to report DSD -20-150. 3. 2022 FINANCIAL MODEL UPDATE - NBLC updated the model to reflect significant changes to the housing market since 2020 and to enable further updates to reflect contemporary market conditions and test other policy options. This work will be shared with council in late Q2 2023. These three pieces of work together satisfy the assessment report and financial impact assessment prerequisites for IZ outlined in the Planning Act. 4. POLICY AND PROGRAM RESEARCH AND DEVELOPMENT Over the past few years the partners have been researching best practices, meeting with key stakeholders and analysing policy and program options. This work has informed the following initial draft policy directions that were presented as part of community engagement. The draft policy directions were presented for discussion purposes and to obtain thoughts from stakeholders and the community. Input obtained will be used to inform recommended policy directions anticipated to be tabled for further discussion with the community and Council in late Q2 2023. Page 80 of 119 Policy Set aside rate — what percentage share of units or floor area in a building should be secured as affordable housing? Depth of affordability - how much lower the rents or prices are than the market? Duration of affordability - how long affordability is secured for? Tenure of affordable units - are the affordable units rented or owned? Unit type/mix/design — should there be unit type, size or design requirements set on affordable units? Offsite units - should the policy allow affordable units to be located in another building nearby? Incentives — should the city provide financial or non- financial incentives for the development of IZ units)? Administration — who, owns and operates units, and who monitors and ensures ongoing affordability? Initial Direction • Start low, transition slowly to higher rate that is supported by the market conditions • Appropriate set aside in each MTSA determined by the financial model • A maximum set aside 5% is proposed to be mandated by the province • Set aside to increase with building height/density • Exempt smaller buildings to encourage missing middle and midrise built forms (e.g., exempt < 50-60 units) • Moderate affordability 80%-100% of Average Market Rent • In 2022 Average Market Rent was $1,454/month for a two bedroom • A maximum 25 -year term is proposed to be mandated by the province • Rental a priority in both condominium and purpose- built rental projects • Encourage range of unit size/types/designs comparable to market units • Require functional equivalency of market and IZ units • Enable developers to use flexible approaches to meet affordability and financial feasibility objectives subject to strong guarantees • Provide the mandatory exemptions from Development Charges, Community Benefits Charges and Parkland dedication • No additional financial incentives • No parking required for IZ units • Exploring opportunities to shift ongoing IZ administration away from condominium developers and boards • Regional or not-for-profit implementation 5. COMMUNITY ENGAGEMENT In 2022 the partners retained LURA Consulting to facilitate community engagement on inclusionary zoning as described in the Community Engagement section of this report and in Attachment A. Next steps Page 81 of 119 The partners are continuing to work together to develop a consistent policy framework across the three cities. Each City expects to implement IZ requirements through adoption of official plan policies and zoning regulations in coordination with updated MTSA panning in their respective jurisdiction. The following is anticipated timing of next steps for Kitchener's IZ process: Q1 -Q2 2023 Additional policy analysis and key stakeholder meetings Q2 2023 Discussion paper, recommended policy directions and draft implementation guidelines considered by council Q4 2023 Official Plan and zoning by-law amendment considered for approval alongside updated planning framework for all MTSAs except for Block Line, Fairway and Sportsworld Early 2024 New development applications to which IZ policy applies must include affordable units 2024+ IZ requirements for Block Line, Fairway and Sportsworld to be considered together with updated MTSA planning frameworks The timing of the steps outlined above is contingent on a decision by the Province on the IZ regulation tabled in October 2022. At this time, it is unknown when IZ regulation revisions will be in effect. STRATEGIC PLAN ALIGNMENT: This report supports A Caring Community. FINANCIAL IMPLICATIONS: Capital Budget — The IZ work is anticipated to be completed with existing resources and approved budgets. Consultant costs were cost shared among the partners as a Joint Services Initiative, and were supported by provincial Streamline Development Approvals Funding. Operating Budget — The recommendation has no impact on the Operating Budget. COMMUNITY ENGAGEMENT: INFORM — This report along with project materials have been posted to the City's website with the agenda in advance of the committee meeting and on engageWR . CONSULT — The partners have engaged with stakeholders and the community at large both online and in person since 2020. In 2022, the partners retained LURA Consulting to assist with developing plain language communication and videos to explain the inclusionary zoning concept. LURA also helped plan, deliver, and facilitate digital and in-person community engagement. Details on engagement and what was heard are included in Attachment A. Since 2020, the Inclusionary Zoning engageWR project page was visited 3,300 times with over 1,000 engaged visitors. Four synchronous engagements, both online and in person, were attended by over 100 people. Page 82 of 119 It is recognized that community engagement to date does not reflect the full depth of diversity and the demographics of Waterloo Region. Households earning less than $60,000 per year, people younger than 30, and those without post -secondary qualifications were underrepresented in meeting attendance and through the engageWR platform. Renters and moderate -income households, both groups expected to benefit from IZ, were well represented. Some engagement tactics targeted key stakeholders such as industry and housing providers and as such were not expected to be reflective of the Region's demographics. Furthermore, the consultations were technical in nature, and policy options fall within tight regulatory bounds. Staff identified the likelihood of retraumatizing people with lived experience of homelessness or poverty, as well as reputational and trust risks of engaging intensely with these populations in such technical work, and so did not proactively or intensely engage with them. A concerted and generally successful effort was made to engage with moderate income people who are anticipated to benefit directly from inclusionary zoning. Nevertheless, there is significant room for improvement in pursuit of equity in community engagement through future affordable housing work. The community engagement results should be interpreted with this in mind. In general, we heard broad support for an inclusionary zoning policy. Support was expressed for flexibility within the policy without `watering down' the delivery of affordability objectives or unit quality. There was no consensus on how to manage the trade-offs between set-aside rate, depth of affordability and duration of affordability. A general preference for the provision of two bedroom or larger units was identified. While no consensus emerged on the appropriate price or rents for affordable units, participants expressed a desire to see an IZ program that delivers moderately affordable units complemented by other policies and programs beyond IZ that target the creation of many more deeply affordable units. Participants encouraged the partners to consider additional zoning measures such as eliminating parking minimums and allowing more low and mid -rise development within residential neighbourhoods to help increase housing supply more broadly through variety of built forms. Participants expressed the desire for continued advocacy to the Province for the expansion of where inclusionary zoning can be used, and continued municipal discretion on maximum set aside rates and duration of affordability. The development community indicated the need for all of society to work to provide more affordable housing units. Many support the development industry playing a part in the creation of affordable housing in the Region. They emphasized the need to maintain project viability and not putting undue price pressure on market rate units. Most condominium developers' business model does not align with administering units in the long term; partnerships are needed to fill this gap. PREVIOUS REPORTS/AUTHORITIES: • DSD -20-006 Affordable Housing Strategy Phase 2: Housing Needs Assessment • DSD -20-150 Inclusionary Zoning for Affordable Housing: Background and Fiscal Impact Analysis • DSD -2022-501 Bill 23 More Homes Built Faster Act — Kitchener Comments Page 83 of 119 • Planning Act REVIEWED BY: Natalie Goss, Manager, Policy Planning and Research Michelle Lee, Senior Policy Planner, City of Waterloo Matthew Blevins, Senior Planner - Reurbanization, City of Cambridge Judy Maan Miedema, Principal Planner, Region of Waterloo APPROVED BY: Justin Readman, General Manager of Development Services ATTACHMENTS: Attachment A — Region of Waterloo and Tri -cities Inclusionary Zoning Study: Engagement Report Page 84 of 119 Am Region of Waterloo and Tri -cities Inclusionary Zoning Study: Engagement Report .4 ry � F � 1 { e 5� w i,.r� x Phi { Y r LURA L[SIEN' UNDERSTAND' RELATE' A➢MANCE Table of Contents Project Background 3 Engagement Summary 4 Engagement Methods and Participation 5 Engagement and Reach 6 Who Participated 7 What We Heard 10 Engage Digital Consultation Summary 11 Inclusionary Zoning Beneficiaries Workshop Summary 13 Online Survey Summary 16 Development Industry Meeting Summary 21 Public Meeting Summary 26 Conclusion and Next Steps 35 Page 86 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 2 Project Background In 2019 the cities of Kitchener, Waterloo and Cambridge and the Region of Waterloo started to investigate the development of an inclusionary zoning policy in each of the tri -cities within the framework of the Official Plan for Waterloo Region. Inclusionary zoning allows cities to require private developers to include a certain percentage of affordable units within new, multi -unit housing developments of ten units or more. The tool can be applied to areas around ION stations - called Protected Major Transit Station Areas (MTSAs.) Figure One: Map of ION route where intensification is planned. In partnership, the tri -cities and the Region contracted N. Barry Lyon Consultants Ltd. (NBLC), a land economics firm, to carry out an assessment of the economic feasibility and financial impact of a potential inclusionary zoning framework for selected MTSAs throughout the region. The results of the NBLC financial impact assessment, a peer review of the NBLC report, and a summary of stakeholder feedback was then presented to respective city councils between Fall 2020 -Spring 2021. In Fall 2022 the project shifted to begin consideration of Official Plan and Zoning by-law amendments to implement inclusionary zoning. The tri -cities retained LURA Consulting to develop and implement a public engagement strategy. The goal of the engagement was to seek specific feedback on policy direction questions from a variety of perspectives. Participants included those who could potentially benefit from an inclusionary housing policy, not-for-profit and for-profit housing providers, and the community at large. This report presents a brief overview of earlier engagement activities and a detailed review and synthesis of the feedback gathered since Fall 2022. Page 87 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 3 Engagement Summary The engagement process identified a general, broad level of support for further developing and implementing an Inclusionary Zoning Policy. It identified a strong desire to create a flexible policy to achieve the goal of providing more affordable units as soon as possible. Engagement participants suggested limits to the height and density trade-offs that might be allowed to secure affordable units through the tool, while at the same time indicating a willingness to be flexible in support of the goal of new affordable homes. Early Awareness and Beneficiary Preferences One engagement challenge was to ensure that participants understood that the level of affordability offered by an IZ program without additional incentives was not the deep level of affordability required for those receiving social assistance. This challenge was met by providing additional context, guidance and explanation in on-line postings as well as at in-person meetings. Builder Comments The development community was concerned about the effect of the policy regulations on the financial impact to future projects. In particular, impacts on project viability, impacts on the price of market rate units, financing horizons, aligning with the Canada Mortgage and Housing Corporation (CMHC)'s Rental Construction Finance Initiative, and CMHC average market rent definitions were highlighted as areas to review. The development community indicated a strong preference for flexibility to deliver requirements off-site and encouraged the tri -cities to have a unified approach to the policy for the administration of IZ units. Priorities and Flexibility Through the on-line survey and the in-person feedback, some policy preferences were clear with more nuance and lukewarm support in other policy areas. The following priorities were clearly indicated in engagement with the general public: • A general preference that the policy focus on the provision of two bedroom or larger units • Support for IZ units to be incorporated into the new buildings along the corridor • A high degree of support for financial incentives to off -set development costs where the incentives helped meet the goals of additional affordable units or increased duration and affordability of the units • Support for targeting rental units within the policy Participants were not united in their support for additional height and density allowances. Some identified little concern for allowing additional heights to meet the end goal of additional affordable units, while others were more hesitant to make too many trade-offs in built form. As well, no clear consensus emerged with regards to recommendations on the appropriate price/rental point for the IZ units. A slight preference for prioritizing the greatest level of affordability in new units was identified over duration of affordability and set aside rates. Feedback from all sources outlined concerns about the limitations of Inclusionary Zoning as a policy to address affordability. This new policy tool was identified as a further option alongside more established tools and supports such as social housing. An additional common thread was the idea that partnerships and flexibility are needed to ensure a successful program. Developers, affordable housing providers, regulators and the community at large will need to seek out new partnership opportunities in order to meet the goal of providing additional affordable housing in the region. Page 88 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 4 LURA Engagement Methods and Participation In order to reach a broad spectrum of the public in Waterloo Region, a variety of methods were used throughout the project lifecycle. The use of multiple engagement tactics lowers barriers to participation and recognizes different preferences and opportunities for citizen engagement. The following are the methods of engaged used during the project. Engagement -specific summaries can be found in subsequent sections. Digital Engagement: EngageWR (https://www.engagewr.ca/inclusionary-zoning). The project page was housed within the Engage Kitchener Hub on the regional EngageWR site, but was also available directly through a link on each of the area municipalities' Engage hubs. Interest Group Sessions: The project team held listening -based facilitated meetings, both -in person and virtual, focused on generating dialogue from not-for-profit housing providers, the development industry community and future beneficiaries of an IZ policy. Online Survey: An online survey was posted on the Engage project page. Public Meeting: A broad community meeting was hosted at a location accessible to residents from any of the three municipalities. Email/Phone: Contact information for the project team was posted on the Inclusionary Zoning Engage page. Names and photos of project team members were included. Jan. 23 public meeting on inclusionary zoning Ob Jan 2023 91 W ® u Rgm The Waterloo Region partners want your input on an inclusionary zoning policy. Learn more, ask • questions and shape the recommended policy. Day: January 23, 2023 J` Time: 6:30 - 8:00 p.m. !! New Location!! :101 Father David Bauer Drive, Waterloo. Rooms 200 and 201 Please register at: Eventbrite The Cities of Kitchener, Waterloo and Cambridge and the Region of Waterloo are exploring a new tool to increase the supply of affordable housing. Inclusionary zoning would allow the Cities to require private developers to include a certain percentage of affordable units within new, multi -unit housing developments along the ION transit corridor. The Waterloo Region partners are hosting an engagement and feedback meeting for members of the community who have an interest in this housing affordability tool. The tri -cities are seeking input on an inclusionary zoning policy that could successfully secure new affordable housing while meeting other growth and density goals. The meeting will offer an opportunity to learn about how inclusionary zoning works, ask questions of municipal staff, and shape the recommended policy. Figure Two: Screen shot from Eventbrite Public Notice Educational Videos Given the complexity of the subject matter and technical language involved in the work, the tri -cities also commissioned the development of two educational videos for posting online. The theme of the first video was affordable housing and it included an introduction to Inclusionary Zoning as a tool within the spectrum of policies to create affordable housing. Page 89 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 5 The second video focused on the specific meaning and facets of the Inclusionary Zoning policy is forthcoming. ■. ■ au ■ I OWN■ ;; .0 .0 • C. GC ■ ■ .� ei IN iii �l Figure Three: Still from Video #1 Engagement and Reach The following tables summarize the reach, or participation rates, of the various methods of engagement used. EngageWR Inclusionary Zoning Page The EngageWR portal served as an active driver of participation in the project with over 3,300 visits to the site. In addition to serving as a source of information about the project, the site generated active engagement from over two hundred participants who left comments or filled out a survey on the site as of January 31, 2023. EngageWR IZ Project Pages March 24,2020 -January 31, 2023 Website visitors who viewed at least one page 3,330 Ideas Page Visits 267 Ideas Page Commenters 109 Online Survey Page Visits 175 Online Survey Responses 89 Guest Book Page Visits 341 Guest Book Commenters 22 Document Downloads from the site 924 Page 90 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 6 The primary sources of traffic to the EngageWR page are indicated below. Search engine inquiries and links to the page generated through the EngageWR electronic newsletter drove most traffic to the site. Social media also generated considerable traffic to the site with a lower number of traffic coming from the municipal web page and traditional news media website. Inclusionary Zoning Engage Page: Top Sources of Traffic Downloads Google 972 Engage Newsletter 579 Twitter 187 Facebook 148 Kitchener Citynews.ca 69 Kitchener. ca/MyKitchener. ca 49 Members of the public demonstrated confidence in the capacity of the EngageWR page to serve as a source of official documents and a repository of project information. Over 900 documents were downloaded from the site as outlined in the table below. Document Name Downloads Kitchener staff report to council -September 2020 303 Inclusionary Zoning stakeholder engagement session presentation -March 2020 226 Evaluation of potential impacts of an affordable housing inclusionary zoning policy 203 Frequently asked questions 105 Waterloo staff report to council Dec 7, 2020 103 Total 940 Who Participated As outlined in the Engagement Methods and Participation section above, the tri -cities Inclusionary Zoning engagement strategy used several techniques to reach different audiences. To lower barriers to participation- such as time constraint challenges, or the need to secure childminding- both digital and in-person engagement were part of the program. Other intentional actions taken to seek out and encourage feedback from different audiences included: Specific meetings with interest groups, including individuals with moderate incomes who might benefit from an inclusionary zoning program Invitations worded to provide context for the outreach and with an invitation to ask questions about the event from the organizers • Direct invitations to participate to agencies and associations serving: • Students • Participants with accessibility needs • Age friendly city proponents • Indigenous community members • Newcomers and refugees • Multicultural groups • Renters The project team also made sure to host meetings within an MTSA to reduce reliance on car travel and reduce the need to have home access to the internet. Page 91 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 7 These efforts were made to support the goals of broad awareness and participation from a population reflective of the residents of the tri -cities. They were also taken out of an awareness that in general, organized civic associations and participants in public meetings tend to over -represent citizens with higher levels of education, more leisure time, higher incomes and with better access to technology. Participation is always voluntary and, as reflected in the gap between the number of respondents who indicated that they would participate (took actions to register or RSVP) and the lower number of attendees, municipal engagements compete for attention with the other activities, obligations and realities of citizen participation. Intentional outreach and deliberate care can yield benefits over the longer term as a message from the municipalities that all are welcome and different points of view are wanted. The Inclusionary Zoning team also collected demographic information from respondents to the online survey as well as attendees at the December 2022 and January 2023 Meetings. Completion was not a requirement of participation. However, it did provide some data to measure against the goal of an inclusive engagement process. The collection of demographic information supports the goal of identifying which individuals and groups were represented through the engagement process thereby allowing an evaluation of methods and lessons learned for future engagement efforts by the municipalities in Waterloo Region. The charts below indicate self -declared responses from three data sets: participants at the public meetings in December 2022 and January, 2023, online survey respondents and 2021 Canada census data for the Region of Waterloo. Unfortunately, not all variables in the City of Kitchener's standard demographic questionnaire used for this project are comparable to variables used in the census. Additional information collected in the participant surveys included: language, race/ethnicity, religion, gender, sexual orientation and disability but are not reported here. The age of participants in the engagement process indicates a lower participation rate in the online survey for people in the lowest age category and 40-49 year old category. An overrepresentation of responses from participants over aged 60 is indicated. Age distribution for the public meeting was underrepresented for 30-39 year olds and 60-64 year olds. As a whole, there was a general distribution of ages in participants. 30% 25% 20% 15% 10% 5% 0% What is your age? 18-29 years old 30-39 years old 40-49 years old 50-59 years old 60-64 years old 65 years and above ■ In person meetings ■ Online survey ■ Region of Waterloo (2021 Census) Prefer not to answer Page 92 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 8 Despite deliberate efforts to facilitate participation from a reflection of the population of the tri -cities area, there was an over representation of residents with higher levels of education. Further attempts to rectify this could include a campaign to promote the videos to ensure broad awareness and help underrepresented communities better understand the relevance of IZ to their issues and concerns. What is the highest level of education you have completed? 40% 35% 30% 25% 20% 15% 10% . 0% Apprenticeship or High Sch000l Diploma College Certificate or University University Post - other Trades or equivalent Diploma Undergraduate Graduate Degree Qualification Certificate, Diploma or (Masters or PhD) Degree ■ In person meetings ■ Online survey ■ Region of Waterloo (2021 Census) The feedback indicates an underrepresentation in online participation from those with household incomes of $60-$89,000. However, this cohort was well -represented at the public meetings. Specific effort was made during the outreach period ahead of the in-person events to identify interested civic groups who serve potential future beneficiaries of the IZ policy and encourage them to promote participation. In general, the income distribution of participants indicates fair participation in different categories. Moderate income households, who are likely beneficiaries of IZ, were well represented. This is a positive finding for the engagement. Incomes under $60,000 were underrepresented across online and in person engagement. 25% 20% oN What was your total family income before taxes last year? $0 to $29,000 $30,000 to $60,000 to $90,000 to $120,000 to $150,000 to $200,000 or Prefer not to $59,000 $89,000 $119,000 $149,000 $199,000 more answer ■ In person meetings ■ Online survey ■ Region of Waterloo (2021 Census) Page 93 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 9 As outlined above, an effort was made to create awareness of the policy and program development in newcomer communities in the region; despite these efforts, participation in both the online survey and the in-person meeting indicates low participation among first generation immigrants. Additional connections with agencies serving newcomer communities can be pursued to address this gap as the process moves forward, building on the outreach done during the engagement phase. 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes Were you born in Canada? NMI Prefer not to answer No N In person meetings ■ Online survey 119 Region of Waterloo (2021 Census) Affordable housing is needed in both ownership and rental tenures; however, renters were slightly under -represented in the engagement. Additional efforts to increase awareness for renters should continue to be made. The previously identified public advertising could be part of this effort. Is your current home rented or owned? 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% _ Owned Rented Other ■ In person meetings ■ Online survey ■ Region of Waterloo (2021 Census) What We Heard The following section provides detailed summaries of the feedback received during each phase of engagement for the project. Feedback is summarized based on themes pulled from responses. The summaries are not intended as verbatim accounts but rather a synopsis of the major takeaways from the engagements. Page 94 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 10 �n 0 L RS,U,, L R ADVJ� LfSIF� NDE AND ATE EngageWR Digital Consultation Summary Summary: The project team collected public feedback through a virtual engagement platform. The platform was hosted through the Kitchener Engage website and linked from the engage pages of the other municipal partners. It collected feedback around the question, "What do you think about Inclusionary Zoning?" The platform collected public feedback from March 24, 2020 to January 31, 2023 with the highest traffic to the site occurring in September 2020, coinciding with the Kitchener staff report to Council. Objectives: • Introduce the Inclusionary Zoning project and policy concepts • Invite members of the public to connect with project team members • Encourage participants to share their ideas around the development of the policy and comment on the ideas and comments of others Participants: Between March 2020 -January 2023 period, 608 visitors reviewed the "Ideas" and "Guest Book" pages of the site. Here, a total of 131 contributors left comments, responses and guest book entries. Key Themes: The following is a summary of the main themes that emerged through an analysis of the ideas, comments and guest book entries received through the virtual engagement platform. The majority of ideas and responses received (over 90%) date from the early part of the project in 2020 and 2021. The comments reflect a reaction to the initiation of the project and a desire to understand the specifics of the project better. 1. The development community has a role in affordable housing. Many commenters expressed their desire to have more strict requirements for developers (such as increasing the percentage of units that must be affordable and a call for those units to remain affordable permanently.) An opinion was conveyed that the public paid for the development of the ION through taxes, and developers who benefit from the increased land value should be obligated to provide a public good. Some participants expressed that putting excess pressure on developers regarding affordable housing could lead to development companies not investing in the region and cautioned not to lose sight of the goal to create the greatest number of units possible. 2. Taking steps to drive down cost pressures by encouraging development Participants indicated that parking minimum requirements were a financial burden for developers and supported their elimination in order to support opportunities to build affordable housing. Some participants expressed support for the concept that increasing the permitted density of developments can be a tool to accommodate more affordable units. A number of commenters wished to refocus the conversation toward other planning priorities. Many noted the elimination of Exclusionary Zoning as a goal; these commenters called for the removal of single residential zoning and outlined that such a policy would positively impact regional housing supply and affordability. Page 95 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 11 LU R A So me'pariici'parifs commented that development in the region is booming, and intensification efforts within existing residential neighbourhoods should be prioritized, rather than a focus on units in higher built forms along the ION route. 3. IZ should advance city -building goals beyond affordability Many participants expressed that an Inclusionary Zoning policy should include regulations around the size of affordable units. Affordable family sized units or units for individuals sharing larger units would provide opportunities for rent sharing making further affordability more likely. Several participants called for new developments to be mixed-use to support walkability in the community. Non-profit agency tenancies, grocery stores and other community needs as well as ground floor retail were identified as preferences. Some concern was expressed by participants about the focus of Inclusionary Zoning on providing housing affordability for moderate income households rather than low-income households with deep affordability needs. Concern was expressed by some participants about whether the potential number of units that could be delivered by the program would be too small to have a meaningful impact on the shortage of affordable units. 4. Clarifying the meaning and intention of Inclusionary Zoning Likely owing to the majority of the comments and feedback received through the virtual engagement platform being received during an early stage of the engagement, several participants expressed confusion about the level of affordability that could be offered through an Inclusionary Zoning program and the type of housing it offered within the wider affordable housing spectrum. Many comments indicated an assumption that the affordable housing units provided through IZ would be deeply affordable subsidized housing units. Continued explanation of the concept in plain language as a tool for the provision of moderate level affordability is encouraged. The video resources developed as part of the engagement can be used to further support clarification and education in this regard. Page 96 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 12 �tiL U ! Ll SIEN UNDERSTAND RELATE ADVANCE nclusionary Zoning Beneficiary Group Workshop Engagement Summary December 13, 2022 6:30-8:00 p.m. City of Kitchener Downtown Community Centre, 35B Weber St W Summary: Members of the project team hosted an in-person focus -group style discussion with individuals associated with groups that could benefit from an IZ policy. The session was held at a centrally located venue in Downtown Kitchener. Fifty-one invitations were issued by email on December 2, 2022 with 27 RSVPs received through a designated EventBrite page issued to invitees. Invitations were issued to a list of groups drawn from the Affordable Housing master contact list with a focus on groups whose clients/users could ultimately benefit from the policy. Care was taken to draw awareness to groups serving middle-income clients since any IZ program is anticipated to be of direct benefit to moderate income households. Groups who received the invitation were encouraged to share the invitation with their networks. The meeting began with a presentation by Tim Donegani, Senior Planner- City of Kitchener who introduced the project and gave an overview of the Inclusionary Zoning project process to date. A video was shown that explained how housing has become less affordable in recent years and how IZ is one option to increase the amount of affordable housing. Following this, LURA facilitated two break-out group discussions with participants and members of the tri -cities project team that invited meeting participants to provide feedback and ask questions. Project Team: Tim Donegani Senior Planner- City of Kitchener J. Matthew Blevins Senior Planner Reurbanization-City of Cambridge Judy Maan Miedema Principal Planner -Region of Waterloo Michelle Lee Senior Policy Planner -City of Waterloo LURA Liz McHardy, Partner Franca Di Giovanni, Senior Engagement Specialist Page 97 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 13 ��LURA LIST=N-UNrFESTANp RELATEADVANCE Objectives: The objectives of the meeting were to: • Introduce the Inclusionary Zoning policy concept • Reach community members through the process who will benefit from such a policy but who may not have awareness of efforts and dialogues established to date • Promote awareness of the concept and the potential it has to provide new options for creating affordable housing for residents with moderate incomes • Identify next steps Participants: There were 13 participants in the focus group style session. Questions: The discussion focused around thoroughly explaining the concept of inclusionary zoning and getting feedback on the specific themes and questions noted below. • Seeking Affordable Housing: How many units, for how long and for what cost of housing? • Affordable rental or affordable ownership: Should the cities target securing affordable rental units or ownership units or a mix? • Ensuring a viable program: What are the trade-offs, such as heights and densities that are needed to encourage a viable program? Should the cities use financial and/or non- financial incentives to further advance affordability objectives? • Location trade-offs discussion: Should developers be permitted to provide the affordable units in other buildings within the area? Key Themes: The main themes that emerged from discussions with stakeholders at the session included: A preference for larger units (2 or more bedrooms) Participants expressed a wide variety of opinions around the need for or uses of three-bedroom units. It was acknowledged that the cost of larger units in new multi -unit buildings is high, both for the builders, renters and buyers, compared to one- bedroom units. However, newcomers and post- secondary students with families coming to the tri -cities to study or work were cited as needing larger homes and therefore benefiting from larger affordable units. Other participants from the real estate and supportive housing fields identified inconsistencies in the desirability of three-bedroom units citing that they are either highly coveted or languish on the market. The concept of three-bedroom units as shared space for a larger number of people, but not necessarily from one family or household, was discussed. The question of whether offering larger unit sizes through the program could support the greatest number of people was posed. In general participants agreed that while it was difficult to identify the ideal unit size for the program, more than one bedroom was the preferred unit size. Page 98 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 14 �� LISIEN �NnERSTAND RELATE ADVANCE 2. Ownership or rental There was a general consensus on the need to prioritize rental units as the form of tenure supplied through an Inclusionary Zoning program. 3. Incentives and trade-offs Participants in this group did not express a great amount of concern for the financial impact of IZ requirements on new developments. A general feeling that sufficient profit margins could still be attained was expressed. There was no specific consensus reached on the trade-offs to be provided. Participants expressed a variety of opinions around the concept of forgiving development charges. Flexibility around development charges was supported if the charges stood in the way of getting something built. Some support for eliminating parking minimums and being more flexible in terms of height was expressed, citing the example that "a 24 storey building versus the 27 storey building doesn't make a difference." One participant expressed a strong desire not to waive the fees for inclusionary zoning and instead supported redirecting fees toward other housing programs. Another cited empty units in downtown Kitchener as evidence that "it's not true that every one bedroom unit is needed". While another conveyed that "being flexible might dilute what we get". Although the intention was to seek feedback on what cost of housing should be targeted through the policy, no strong discussion and no clear preference was articulated in this regard. Questions of Clarification Question: Do we have good numbers on how many units are actually required at each price point? Answer: Many low and moderate income households are experiencing housing affordability issues. The need is greatest at the lowest incomes. The information we do have is provided in the Housing Data and Needs assessments completed or being completed by each area municipality. Question: How long will it take to get IZ in place? Answer: The policy is expected to be in place by 2023 with implementation in 2024. Page 99 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 15 aLU R A LISTEN UNDERSTAND -RELATE ADVANCE Inclusionary Zoning Consultation Online Survey Summary Summary: An online survey was added to the IZ Engage page on December 19, 2022. The survey remained online from December 19, 2022 -January 31, 2023. Objective: The survey focused on collecting feedback about preferences in response to questions about: • Overall support for an IZ policy • Preferences for on-site requirements versus flexibility for off-site units • Opinions about the trade-offs around financial incentives • Feedback on additional flexibility in height and density allowances • Priorities in terms of depth of affordability, length of affordability and number of units created Participants: Over the timeline previously indicated, the survey had 175 visitors to the page with 89 contributors completing the survey. Survey Questions and Responses: 1. Do you think the cities of Kitchener, Waterloo and Cambridge should require private developers to include some affordable housing within new, multi -unit housing developments near ION stops? Survey respondents indicated a high level of support for the development and implementation of the policy. Yes No Require Affordable Units? 0 10 20 30 40 50 60 70 21 Page 100 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 16 a U L RS,U - ,L R ADVIA LIS7EN NDE AND ATE 2. How important is it that affordable housing units are located only within a mixed income building rather than in a building that contains all affordable units? Survey respondents expressed a strong preference for the affordable housing units delivered through the program to be located within the new mixed income building(s.) Located within new mixed -income buildings Extremely important Somewhat important Neither important nor unimportant Somewhat unimportant Extremely unimportant 0 5 10 15 20 25 30 35 40 M. 12 11 22 3. Under what circumstances should financial incentives (such as waiving fees or charges) be considered as a way to support an inclusionary zoning program? Survey respondents indicated a high degree of support for the allowance of financial it off -set development costs where affordable units were being provided above and beyc would be required in base inclusionary zoning requirements. Financial Incentives 0 5 10 15 20 25 30 35 40 45 No circumstances warrant municipal financial 3 incentives Incentives should be considered if they can help 26 ensure the delivery of affordable units within... Incentives should be considered if they are used to increase the number of required affordable... Incentives should be considered if they are used to help make affordable units more deeply... Incentives should be considered if they are used to help increase the duration that affordable... Other (please explain) 31 3 centives to nd what Page 101 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 17 aLU R A LIS7EN UNDERSTAND -RELATE ADVANCE 4. Recognizing that enabling developers to build more units on the same site could help them offset the reduced revenue they receive for the affordable units- do you think the cities should allow more height and density if it means more affordable units can be provided? Despite indicating a strong desire for flexibility regarding financial off -sets to support an IZ program, survey respondents were not united in stating their support for additional height and density allowances. Yes No Not sure Height and Density 0 10 20 30 40 50 60 54 5. What is the most important to you when considering the various policy requirements and tradeoffs? Rank the following from most important to least important. (Where 1 is most important, 3 is least important) Survey results indicated a slight preference for providing the greatest level of affordability in new units. However, the margin between depth of affordability, length of affordability and number of affordable units was less than half a percent. Respondents are seeking a balanced approach to these three policy objectives. Page 102 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 18 aLU R A Ll S7EN UNDERSTAND -RELATE ADVANCE Requirements and Trade-offs Greatest number of units that are affordable (i.e., higher percentage of affordable units is required) Longer time frame that units remain affordable before being released to market rate Greatest level of affordability (providing the most affordable level of housing) Affordability Stories: 0 0.5 1 1.5 2 2.5 1. 1.98 2.2 The survey also included an open text component for participants to write four or five sentences outlining their current experience, or that of someone close to them, affected by housing affordability in Waterloo Region. The following is a summary of the key themes emerging from the open text section as well as some direct quotes. 1. High proportion of income being spent on rent Contributors noted the challenges faced by their family members, and reflected on what their own circumstances would be if faced with current housing costs. Some expressed concern for what the near future would bring should there be a change in circumstances: I work a full time job and two part time jobs ... my mother shares our rental to help offset high prices ... we can still barely afford the rent we pay My partner and I recently moved to Kitchener and were unable to find appropriate housing within our financial means without relying on help from our families. Because we don't drive, it was vital for us to live near an ION station and within walking distance of our daily necessities (grocery, pharmacy, etc). Fortunately, we were able to find a place near downtown that met our needs, but the majority of our combined income is going to housing costs now. Page 103 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 19 LURA LI STEN' UNDERSTAND -RELATE ADV&NCL 2. High levels of regional demand A few contributors self -identified as employers or landowners and highlighted the demand for housing and the lack of affordable supply. I am a landlord and even with recent turnovers in my units (wherein the rent was increased) I was overwhelmed with demand. I feel for the many who are seeking affordable housing. I'm struggling to hire professional employees because they can't afford to move to the region. 3. Housing costs limiting mobility Several contributors outlined that, despite a desire for new housing, they felt stuck due to the fear of losing an existing affordable arrangement. For some this meant the prolonged presence of adult children at home or the need to share housing with multiple generations of the family. Our 3 generation family is underhoused in a reasonably priced 2 bedroom ... to move ... will not be possible for us. My daughter is a university graduate with a full time job, unable to afford moving out on her own. My daughter is currently living in off campus housing that was opened up for rent when COVID shut down the Universities. She continues to lease (one room with bathroom) but is not a student. Additional Comments for the Project Team Respondents were also given the opportunity to leave text comments for the project team. Below is a short summary of the main themes of comments. Inclusionary Zoning is part of the solution, but other programs are also needed Several participants noted support for the policy but expressed concern about the number of units that could be delivered through the program. Participants offered their support for other affordable housing solutions in addition to IZ. A general sentiment was expressed that delivering the maximum number of units was the goal. Inclusionary zoning is a very much imperfect solution to this problem... However, it is the best tool we have at the moment within the framework provided by the province, and should be used. 2. IZ holds strong possibilities for partnership opportunities One respondent expressed enthusiasm for the opportunity to develop new partnerships with not -for - profits to deliver the maximum number of units. If two projects like this pooled their off-site resources and provided them to a non-profit, the $5 million in revenue could also be leveraged with funds from CMHC and/or the Region, and could reasonably be expected to bring 40 to 50 new units. Page 104 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 20 Development Industry Meeting Summary Thursday January 19, 2023 10-11:30 Via Zoom Summary: Members of the project team hosted a virtual meeting with individuals in the development industry. The virtual focus group session was held using the Zoom meeting platform and forty-seven invitations were issued by email Friday January 6, 2023. The list was drawn from the tri -cities Affordable Housing Interested Parties Master List that included all known development industry stakeholders operating within the tri -city area. The meeting began with a presentation by Michelle Lee, Senior Policy Planner -City of Waterloo. It consisted of an overview of the Inclusionary Zoning work carried out by the cities to date, including some detail from the NBLC study of 2020 and an acknowledgement that this work is being updated. Following this, LURA facilitated a group discussion that invited meeting participants to provide feedback and ask questions. The presentation was circulated to participants after the meeting. Project Team: Tim Donegani Senior Planner- City of Kitchener J. Matthew Blevins Senior Planner Reurbanization-City of Cambridge Judy Maan Miedema Principal Planner -Region of Waterloo Michelle Lee Senior Policy Planner -City of Waterloo Franca Di Giovanni, Senior Engagement Specialist Sesvin Josarosa, Community Engagement Specialist Objectives: The objectives of the session were to: Re -introduce the Inclusionary Zoning project to the development community Identify the current direction of policy guidelines Solicit feedback from the development community around the following questions: • What is an appropriate initial set aside rate for strong markets? (between 1 and 5%) • What would be an appropriate unit number/building size to exempt from IZ (with a view to removing disincentives for missing middle)? • Do you have any preferences for a mandatory vs voluntary vs hybrid program? • Do you want to share any thoughts on the possibility of offsite units? Page 105 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 21 Participa Participants There were 33 participants in attendance, representing approximately 25 development firms. Key Themes: The discussions with stakeholders identified concerns about impacts on project feasibility as well as impacts on the price of market rate units. These concerns were captured under the following themes. 1. Importance of the average market rent definition Several participants remarked on the discrepancy between the average market rent figures seen by looking at rental listings in the tri -cities and the CMHC definition of average market rent for the area. The fact that the CMHC Average market rent definition was so much lower was cited as a significant discrepancy leading to a much too low definition of affordable from a developer point of view. The project team identified its use of the CMHC-posted average market rent as required by the Ministry of Municipal Affairs and Housing, noting that these numbers take into consideration the global supply. This averaging results in a number that looks lower than typical rents for new rental units. Several participants offered suggestions for how to address the gap or shortfall between these figures. Suggestions included capital investments and funding from senior levels of government, and tax levies specifically geared toward Affordable Housing. Several participants noted a shared responsibility between developers, municipalities, and taxpayers. The project team cited that the 2020 NBLC study used a model of residual land value and also outlined that the Region has invested a significant amount of tax dollars into developing the LRT. This in turn has had the effect of pushing up land values. The idea of the IZ policy is to capture some of that increased land value and redirect it toward affordable units. Local, regional, provincial and federal governments investing capital for affordable housing will be part of the solution but the development industry and existing landowners will also need to be part of the solution. The project team acknowledged that if there is too much burden on developers, the viability of certain projects will be at risk. That is why the tri -cities have done the updated financial impact analysis. Parkland dedication at the municipal level and Development Charge exemptions at the municipal and regional levels are now mandatory. Reductions in parking requirements were identified as a helpful incentive for affordable units and could also be considered a form of subsidy. In response to suggestions that the cost of affordable housing should be borne by the whole of society through a tax levy, it was noted that the Region of Waterloo currently has a 1.4% tax levy specifically earmarked for Affordable Housing. One participant noted that the question of a portable market rent definition is critical because banks are not going to support financing for projects without CMHC involvement. 2. Limitations of IZ as a policy to address affordability Concern was expressed about meeting the targets for affordable housing development within Waterloo Region during a period of uncertainty and high costs for the development industry. With immigration and local population Page 106 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 22 increases expected, a participant issued a caution to not lean too heavily on Inclusionary Zoning for the delivery of affordable units. The project team indicated an awareness that if market economics don't support new builds the delivery of both market and affordable units will certainly be affected. The team acknowledged that it might be necessary at times to adjust the parameters to reflect evolving market conditions and move between different policy tools. 3. Rent to Own and fractional ownership programs A few participants wondered where rent -to -own or other programs that fall in between rental and ownership fit into the equation. It was expressed that CMHC is actively encouraging rent -to -own; however, Inclusionary Zoning appears to recognize only rental tenancies or ownership and nothing in between. Other ownership models such as fractional ownership should be considered. The project team expressed a position that this is something that warrants further conversation in order to better understand how such programs could fit into the IZ policy. 4. Purpose-built rental One purpose-built rental developer expressed a general opposition to Inclusionary Zoning as a concept to address affordability because it increases rents and prices of market units. It was cited that CMHC financing with a 10 year horizon as opposed to the 25 year affordability horizon for IZ units leads to an inconsistency between financing and the horizon of the IZ financial model. Differences in the quality of finishes as well as maintenance and restoration costs for the units were cited as additional financial concerns. Tri -city project staff stated that the financial modeling that had been carried out did identify that purpose-built rental is financially more challenging to achieve than condo development. I n recognition of the different site economics, IZ policy in Toronto has identified different rules for purpose-built rentals and condos. The possibility of lower Inclusionary Zoning requirements for purpose-built rentals is being considered. The alignment with CMHC financing was identified as a situation that would have to be considered. 5. Challenges around the administration of affordable housing units Several participants discussed administration of the units. Citing the usual process of closing a condominium development company down at the close of the build -out, participants identified challenges related to any continued responsibility of condominium developers to monitor, administer, and maintain affordable units within the buildings. It was suggested that the administration and oversight of the affordable units should be the purview of the Region and its not-for-profit partners. Tri -city project staff expressed the importance of working out administration details early on in the IZ policy development process. With regards to providing units off site, developers expressed that while on the one hand integration of affordable units through the community is beneficial, from a practical point of view it would be easier to create specific buildings where the units could be centrally administered. Page 107 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 23 One participant suggested that in developments that happen over a longer period of time, consideration could be given to phasing. At a certain point a critical mass would develop and a purpose-built "missing middle" sized affordable housing building could fulfill the IZ requirement. A preference for flexibility in the policy to allow off-site provision of units was a common theme. Participants saw value in encouraging the Provincial government to allow IZ in areas other than MTSAs. 6. The need for effective and innovative partnerships One nonprofit developer participant expressed an openness to new opportunities for partnership with the for-profit development community in order to meet IZ requirements. Developers expressed the desire for flexibility around the development of affordable units outside of the MTSAs and flexible partnerships to maximize affordable housing . Partnering between different developers in a specific area was also cited as an easier way to administer and build the units. If a purpose-built affordable rental building was constructed in partnership with a not-for-profit provider, the affordability factor could be retained forever. Questions of Clarification The following are questions of clarification that the project partners provided responses to during the meeting. Q1: Will the Inclusionary Zoning policy be implemented at the regional or municipal level? A: Inclusionary Zoning will be a municipal by-law. Q2: According to Bill 23, the Regional Official Plan has to get downloaded to the various municipalities- including the defined MTSA areas. Wouldn't that happen first before this process would be implemented? A: Yes, we are planning any inclusionary zoning policy framework at the same time as updates to various Official Plans that incorporate the new MTSA requirements. Q3: What is the proposed parking ratio for the units? A: Staff are contemplating a variety of options to offset the impact of inclusionary zoning, and one of these options could be a reduced parking ratio or the elimination of a parking requirement for IZ units. Our hope is to bring forward a parking ratio of 0 although that must be vetted and approved through the various municipalities. This recognizes the high cost of creating parking structures. Q4: Can we get a copy of the NBLC modeling and the presentation from today? A: The presentation from today will be shared. The updated NBLC model will be shared once it has been completed. Q5: Everyone is waiting for the specific regulations on Affordable Housing within the new Bill 23 which will have an impact on this program. Can the cities arrange an updated meeting of this sort when all of the regulations have been identified? A: Further points of contact can be arranged. Q6: With regards to landholdings held by the municipality and the region, will they be rezoning their own land for the purpose of inclusionary zoning? A: The Region has an existing program for using Regionally -owned lands for affordable housing. The City of Waterloo has done some initial work looking at its land holdings to meet various Page 108 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 24 community objectives including how best to use surplus lands for affordable housing. The Region and the tri -cities are likely to want to maximize their land offerings for more deeply affordable units. Surplus public lands that are redeveloped will need to meet certain requirements. Policy Questions A question was also posed by the facilitator and project team within the chat box of the meeting and elaborated on by the senior planner from the City of Waterloo. One participant provided a specific response. Q: Do you have any preferences for a mandatory/voluntary/hybrid program? Voluntary means if you are asking for additional height and density, IZ requirements would set in. The hybrid approach would be a sliding scale, the higher the height and density, the higher the set aside rate. A: There is an understanding that there is a gap between what zoning currently allows and what the industry thinks should be allowed in terms of density. The request for increased density is practically a given on any site that will be redeveloped. Figuring out these numbers is likely to be complicated. Other than increased expenses, the development industry does not like uncertainty and calculating the requirements is likely to be very difficult. A mandatory system could be preferred to voluntary or sliding scale type of approach from a complexity and certainty perspective. Page 109 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 25 ALU R A115T11LA1E-A➢YANC[ Inclusionary Zoning Public Meeting Engagement Summary Monday January 23, 6:30-8pm Waterloo Memorial Recreation Complex, 101 Father David Bauer Drive Summary: Members of the project team hosted an in-person public meeting at a community centre in Waterloo, accessible to residents from the region and in a different municipality than the December, 2022 meeting in Kitchener. Invitations were issued by email to both subscribers of the Inclusionary Zoning Engage page, and a contact list assembled over time by the project team. The event was promoted on the Engage project page and also listed as a public event on EventBrite. The meeting began with a presentation by Michelle Lee, Senior Policy Planner -City of Waterloo who gave an overview of Inclusionary Zoning and the work done by the project team to date. A short question and answer session with attendees was arranged followed by small group question answer sessions directly with project team members. Participants could also leave comments and feedback on posterboards affixed to the walls. Stickie dots and notes were distributed. The presentation from the meeting was subsequently posted on the Engage page. Project Team: Tim Donegani Senior Planner- City of Kitchener J. Matthew Blevins Senior Planner Reurbanization-City of Cambridge Judy Maan Miedema Principal Planner -Region of Waterloo Michelle Lee Senior Policy Planner -City of Waterloo LURA Franca Di Giovanni, Senior Engagement Specialist Sayan Sivanesan, Community Engagement Specialist Page 110 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 26 tk LISTEN UNDERSTAND RELATE ADVANCE Objectives: The objectives of the Public Meeting were to: • Share the latest information on the status of the Inclusionary Zoning policy development project • Present an overview of the benefits of the project • Create opportunity for reaction and discussion • Seek feedback on priorities for depth of affordability, duration of affordability and set-aside rates • Explain the concept of trade-offs in new builds Participants: Approximately fifty (50) residents attended the session with forty-two (42) signing in and leaving demographic information. Dotmocracy responses The following is a summary of the responses collected on the posterboards displayed in the two adjacent rooms. Project team and engagement team members circulated through the rooms to ensure that participants understood the questions and had the supplies necessary to participate. 1. Do you think the Cities of Kitchener, Waterloo and Cambridge should require private developers to include some affordable housing within new, multi -unit housing developments near ION stations? Respondents at the public meeting indicated strong support for the policy concept. Yes No/Unsure 12 1 Do you think the cities of Kitchener, Waterloo and Cambridge should require private developers to include some affordable housing within new, multi -unit housing developments near ION stops? Please place a dot in either the "YES" or "NO" box Page 111 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 27 tk LISTEN UNDERSTAND RELATE ADVANCE Notable Comments: One participant encouraged the definition of major transit station areas to include bus routes. 2. How important is it that affordable housing units are located only within a mixed income building rather than in a building that contains all affordable units? In response to this question, the single option with the highest number of responses was the preference for IZ units to be incorporated into the new build. Extremely unimportant 2 Unimportant 0 Neither important nor unimportant 5 Somewhat important 2 Extremely important 9 MOW important is it that affordable housing units are located within each building rather than some units being provided it another building offsite? Piace a dot in the appropriate section, with 1 being Yeast important and 5 being most fmporrant 3. Do you think the cities should allow more height and density on a site if it means more affordable units can be provided? A strong consensus response to this question indicated comfort with flexibility in height and density allowances in order to increase the number of units provided. Yes 18 Other 1 No 0 Page 112 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 28 � I I IIII SII � • I 5• � -- �� 1 -Least Important II 1l 'I • 3. Do you think the cities should allow more height and density on a site if it means more affordable units can be provided? A strong consensus response to this question indicated comfort with flexibility in height and density allowances in order to increase the number of units provided. Yes 18 Other 1 No 0 Page 112 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 28 Enabling developers to build more market rate units could help them offset the costs of providing affordable units. )o you think the cities should allow more height and density on a site if it means more affordable units can be provided? Please pVace a dot in either the "YES' or "NO" box and use a sticky note if you wish to explain YES 40 4040 Notable Comments: 4040 4040 • • NO Two respondents identified that the elimination of parking requirements would support cost off- sets. One respondent identified limited support for off-site flexibility, depending on the off-site location. 4. Under what circumstances should financial incentives (such as forgiveness of development charges) be considered as a way to support an Inclusionary Zoning program? A slight preference from respondents supported the prioritization of incentives to support units with deeper levels of affordability (compared to market rent). Support for incentives to increase the duration of affordability ranked second and some support for incentives to support a higher number of affordable units was also indicated. If they are used to help make 9+3 that are shared with duration of affordable units more deeply affordability affordable If they are used to help increase the 6+3 that are shared with affordability duration that affordable units remain level affordable If they are used to increase the 7 number of affordable units No circumstances 2 If they can help ensure the delivery 0 of units in weak markets Page 113 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 29 In I Under what circumstances should financial incentives (such as waiving fees or charges for new developments) be considered as a way to support an inclusionary zoning program.? Place dots in the spaces you agree with rcumstances Notable Comments: If they can help ensure If they are used to the delivery affordable ncrease the number units in weak markets of affordable units • i • If they are used to If they are used to help make affordable help increase the units more deeply duration that affordable uni affordable remain affordabl i • ii•i• • One respondent expressed that new provincial regulations provide enough financial incentives through waived fees and that additional incentives are not required. One participant identified parkland fees as requiring safeguarding against incentive trade-offs. 5. Which typical two bedroom rents should the program target for affordable units? A lower number of respondents supplied a response to this question, with a mild preference for supporting units in the $1001-$1200/month rental range and incomes in the $44-$48,000 range. The lower number of responses indicates a lack of consensus on an appropriate rent rate at which to focus the program. $90041000 2 $100141200 4 $1201-$1400 1 $2000-$2100 1 Page 114 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 30 LURA LISTENUNDERSTAND':. Notable Comments: A participant identified that the rents and incomes indicated on the chart did not appear to match up to existing market and income ranges. 6. When considering the balance needed to ensure the project remains viable for the builder, which consideration is most important to you? The vast majority of responses to this question fell on the side of the pyramid listing delivery of the greatest number of units and the longest period of affordability as the most important considerations. The single most important consideration was the number of affordable units. Greatest number of units that are 7 What typical two bedroom rents should the program target for affordable units? OSP Full time 2021 median Community 2021 median Units remain affordable for longest shelter minimum renter HH housing max Il HHS 0 allowance wage 'income income w. 32,000 36,000 40,000 4 000 48,000 52,Q0 56,000 60,00 64,000 68,000 72,000 76,000 80,000 84,000 88, 0 Combination number -depth Annuallncome($)t affordability Equal Importance 1 2021 CKW " braft 2021 PPS 2021 Vacant 2021 CKW median rent ,., Provincial l2 Affordahle unit asking Reni 8 0 i 900 1,000 1,100 1,2 0 1, 00 1,400 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 Notable Comments: A participant identified that the rents and incomes indicated on the chart did not appear to match up to existing market and income ranges. 6. When considering the balance needed to ensure the project remains viable for the builder, which consideration is most important to you? The vast majority of responses to this question fell on the side of the pyramid listing delivery of the greatest number of units and the longest period of affordability as the most important considerations. The single most important consideration was the number of affordable units. Greatest number of units that are 7 - Gi€cvs Combination number -period 11 affordable Units remain affordable for longest 3 period possible Combination period affordable- 0 depth affordable Most affordable versus market rent 32,000 36,000 40,000 4 000 48,000 52,Q0 56,000 60,00 64,000 68,000 72,000 76,000 80,000 84,000 88, 0 Combination number -depth Annuallncome($)t affordability Equal Importance 1 2021 CKW " braft 2021 PPS 2021 Vacant 2021 CKW median rent ,., Provincial l2 Affordahle unit asking average candy (zumpercom) ,. minimum (CMHC AMR) rent (CMHC) rent(CMHC) if households are to CMHC Canada Mortgage and Housing Corporation AMR: average market rent acro -ss all curren[ry tAnnual income required spend 30% of their income on housing Cambridge-Kitchcner-waterloo occupied units II: In, sianery zoning JZ HH: household Notable Comments: A participant identified that the rents and incomes indicated on the chart did not appear to match up to existing market and income ranges. 6. When considering the balance needed to ensure the project remains viable for the builder, which consideration is most important to you? The vast majority of responses to this question fell on the side of the pyramid listing delivery of the greatest number of units and the longest period of affordability as the most important considerations. The single most important consideration was the number of affordable units. Greatest number of units that are 7 affordable Combination number -period 11 affordable Units remain affordable for longest 3 period possible Combination period affordable- 0 depth affordable Most affordable versus market rent 0 Combination number -depth 2 affordability Equal Importance 1 Page 115 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 31 41)ADVANCLISTEN UNDERSIAND-RELAT_jEww", - Inclusionary zoning programs set out a range of requirements, including: the number of units identified as affordable, how long units are required to be affordable and how affordable the units are versus market r Each requirement has a financial impact on the pr When considering the balance needed to ensure project remains viable for the builder, which consideration is most important to you? Greatest number that are affor (Maximum Units remain affordable for the longest period possible (Maximum 25 years) e place a dot showing e you think we should ce the competing ties. Most affordable versus market rent (Minimum 80% market rent) Inclusionary zoning programs set out a range of requirements, including: the number of units identified as affordable, how long units are required to be affordable and how affordable the units are versus market rent. Each requirement has a financial impact on the project. When considering the balance needed to ensure the Project remains viable for the builder, which consideration is most important to you? I'1 Greatest number of uni that are affordable (Maximum 5%) Units remain affordable for the longest period possible (Maximum 25 years) se place a dot showing re you think we should ice the competing Ides. 3 Most affordable versus market rent (Minimum 80% market rent) Page 116 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 32 a mrN9oaary roueg pmg—, set out a range of Units remain affordable fat the remevr,lndodln;. the numherot unitsidentiRed as longest period possible zduidxhle, howlang units arerequlred to be aflordahI (Mas num 25 years) and Haul ei.d le the—hare vecsus market rent. IL m'hen moauetlngNehalance needed to ensure the malecgemalosviable far the bonder, which _inemtion'ts-mostimpoctanttopul Please place a dot showing -h.-, think we should the competing es. Notable Comments: Most affordable versus market rent !Minimum gp% market rent) Multiple respondents encouraged the municipalities to advocate for the 5%+ set-aside rate as a minimum, Questions of Clarification The following is a synopsis of the questions and responses given during the Q and A portion of the meeting . It is not intended as a verbatim record but to capture the main themes and responses given. Q: It's very disappointing that Bill -23 changed the definition for affordability. Would like to see the region push -back more. Would like to see a duration increase in the future — start with 25 years for now but increase it in the future. There is still a significant percentage of people that can't afford 80% of market rate. A: The tri -cities have individually submitted comments to the Province. We do have the opportunity to review in 2 years and see if the Province can give greater flexibility to municipalities. Q: Targeting middle-income earners does not address the needs of low-income residents. What is being done for those with low-income? A: Inclusionary Zoning is only one approach of many that the cities have implemented or are considering with regards to affordable housing. Inclusionary Zoning would help out those with moderate incomes, which would help free up more deeply affordable units to those who need them — the goal is to move people up the spectrum. Page 117 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 33 Ak Q: How does this program work for rent control? A: Affordable units would be governed by a legal agreement that will include additional requirements beyond the Residential Tenancies Act's rent -controls. Q: What protections are in place to protect affordability for the duration of the tenure and ensure that units are designed equitably? A: During the implementation phase the program will develop agreements and parameters for building design standards. Q: How does off-site unit provision work — is it possible for all affordable units of a development to be in one building? A: An Inclusionary Zoning program would set out rules and conditions for the provision of off-site units. This means that the program could enable units to be provided within a single building. Q: How do unhoused people living in encampments fit within the concept of affordable housing? A: The Region receives funding from the Federal Government specifically geared towards addressing the housing needs of the unhoused. Inclusionary Zoning is one tool to provide a level of affordability and it does not replace the need to also provide deeply affordable housing. We are still working to address deeply affordable housing needs. Page 118 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 34 41) Conclusion and Next Steps The engagement identified overall support from engaged citizens within the municipalities of Waterloo Region for the implementation of an Inclusionary Zoning Policy. Participants expressed support for flexibility within the policy as long as the flexibility did not result in a `watering down' of the standards that would affect the quality of the future affordable homes. Moving forward, additional educational opportunities should be considered to continue to help members of the public distinguish between Inclusionary Zoning affordable units operating with no on-going subsidy, as opposed to social housing programs geared toward lower income earners. The desire to see the IZ tool complemented by other policies geared toward the creation of many more deeply affordable units should be kept in mind as the cities continue to advance, or begin to develop, their Affordable Housing Strategies. Participants in the engagement also sought reassurance that additional planning by-laws changes, such as the elimination of parking minimums and continued efforts to implement upzoning, would continue. Therefore, as IZ is implemented in MTSAs, care should be taken to broadly identify and engage on other intensification policies and plans. The engagement feedback expressed a position that affordability concerns in Waterloo Region were best addressed by maximizing the use of all tools available for supporting the supply of additional housing stock in a variety of built forms. A base of support for growth in the Waterloo Region is evident. A summary of engagement participation indicates that the efforts made during the engagement phase to seek out participation and input from the newcomer community, renters, diverse perspectives and a spectrum of ages should continue. Additional feedback from these segments of the population can provide additional insight that could benefit the end users of the policy. The development community indicated support for playing a part in the creation of affordable housing in the Region while emphasizing the primacy of partnerships. Concern was expressed about being able to deliver the units without adversely affecting typical project viability with resulting reduction in new supply. A preference for allowance of off-site purpose-built residences was expressed by this group. Joint advocacy with the province to expand the allowable areas for Inclusionary Zoning can be considered. Future developer focused meetings should be convened when specific details emerging from Bill 23 are available and when the specifics of the IZ policy are determined. Following this phase of the project, the tri -cities intend to draft a Discussion Paper for their respective City Councils expected in Spring. Following this, the policy regulations could be developed for implementation in 2024. Page 119 of 119 Region of Waterloo and tri -cities Inclusionary Zoning Engagement Report 35