HomeMy WebLinkAboutCouncil Agenda - 2024-05-27 SSpecial Council Meeting
Agenda
Monday, May 27, 2024, 3:00 p.m.
Council Chambers - Hybrid
City of Kitchener
200 King Street W, Kitchener, ON N2G 4G7
People interested in participating in this meeting can register online using the delegation registration
form at www.kitchener.ca/delegation or via email at delegation 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.*
Pages
1. Commencement
The meeting will begin with a Land Acknowledgement given by the Mayor.
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. 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 1:00 p.m. on May 27, 2024, in order to participate electronically.
4. Strategic Session Reports
4.1 Phase 2 update - Kitchener Utilities Transition, 45 m 3
INS -2024-224
(Staff will be doing a 5 -minute presentation on this matter.)
5. Mayoral Business and Updates - Mayor B. Vrbanovic
6. In -camera Meeting Authorization
Note: Any member of Council may question the appropriateness of a listed in -
camera item. This may be done during the special Council meeting or at the
beginning of the in -camera session.
Council is asked to enact the following resolution to authorize an in -camera
meeting:
"That an in -camera meeting of City Council be held immediately following
the special council meeting this date to consider a security of property and
information that belongs to the municipality and has monetary value matter
and a land acquistion matter - Section 239 (2) (a) (c) and (j)) as authorized
by Sections 239 (a) and (j) of the Municipal Act, 2001, respectively."
6.1 Natural Gas Distribution System Management 15 m
Review - 2023, (Security of Property
and Information that belongs to the
municipality and has monetary value - Section
239 (2) (a) and 0))
Staff will provide information on this matter, no direction is required.
6.2 Potential Land Acquisition (Land Acquisition - 20 m
Section 239 (c))
Staff will provide information and seek direction on this matter.
7. Adjournment
Page 2 of 9
Staff Report
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Infrastructure Services Department www.kitchener.ca
REPORT TO: Special Council
DATE OF MEETING: May 27, 2024
SUBMITTED BY: Greg St. Louis, Director, Utilities Gas & Water, 519-741-2200 ext. 4538
PREPARED BY: Kate Daley, Senior Strategist, Carbon and Energy Planning, 519-741-
2200 ext. 4246
WARD(S) INVOLVED: All
DATE OF REPORT: May 27, 2024
REPORT NO.: INS -2024-224
SUBJECT: Phase 2 Update — Kitchener Utilities Clean Energy Transition Strategy
RECOMMENDATION:
For discussion
REPORT HIGHLIGHTS:
The purpose of this report is to provide a progress update on Phase 2 of the Kitchener
Utilities Clean Energy Transition Strategy.
The key finding of this report is that staff have identified several types of potential energy
business activities under four main themes. More information is needed about each type of
business activity in order to determine whether and how it might play a role in the integrated
approach that will be recommended in the strategy. Investigation considerations will be
informed by the project's guiding principles and objectives, and these considerations are the
focus of the scheduled strategic session of Council.
There are no financial implications of the report at this time.
Community engagement in Phase 1 of the project included customers, community
members, stakeholders, Kitchener committees, staff, and councillors. Phase 2 engagement
to date has included stakeholder and staff engagement, and the breadth of contributions
from both phases has guided the development of the list of potential business activities.
This report supports Cultivating a Green City Together: Focuses on a sustainable path
to a greener, healthier city; enhancing & protecting parks & natural environment while
transitioning to a low -carbon future; supporting businesses & residents to make
climate -positive choices.
Executive Summary:
Phase 2 of the Kitchener Utilities Clean Energy Transition Strategy project consists of
collaboratively assessing options for the City's community -facing energy businesses in light of
the clean energy transition, and recommending an integrated business approach based on the
information gathered.
Staff have identified several types of potential energy business activities under four main
themes, which have been built from the results of engagement submissions from both phases
*** 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 9
of the project to date. More information is needed about each type of business activity in order
to determine whether and how it might play a role in the integrated approach that will be
recommended in the strategy.
Investigation will be guided by the project's guiding principles and objectives. The focus of the
Council strategic session will be to discuss information gathering considerations to support
Council's decision making on the investigation outcomes of the business opportunities.
For this strategic session discussion with City Council, staff have identified the following
questions:
1. What are your reflections on the business activity themes and what theme are you most
curious about?
2. Referring to Appendix A, are there any considerations for investigation that you feel:
a. Should be prioritized or de -prioritized
b. Should be added
BACKGROUND:
This three-phase project will develop a strategy to guide us as we evolve our energy business
to continue to be financially successful and provide valued services throughout the energy
transition. The project's scope includes the City of Kitchener's community -facing energy
businesses, which are housed in the Gas and Water Division in Infrastructure Services.
Table 1: Project Phases
Project
Timing
Focus on...
Achieved through...
Phase
"We will work to responsibly
1.1: Follow sound business practices
accountable, and
Phase 1
Complete
building relationships and
relational engagement with Council, staff,
maximize opportunity
(2023)
understanding around values,
stakeholders, community members, and
goals, and scope of the strategy
customers
Phase 2
2024
determining the way forward
detailed, collaborative option assessment and
together
recommendation of an approach
Phase 3
2025
building consensus on the
developing a phased long-term implementation
implementation plan to 2030
strategy to 2050 and a detailed first phase
implementation plan to 2030
In December of 2023, Council endorsed guiding principles for the project that were based on
diverse engagement with the public, stakeholders, City committees, staff, and councillors:
Table 2: Guiding Principles and Objectives
As we evolve our energy business to continue to be financially successful and provide
valued services throughout the energy transition, we will...
Guiding Principles
Our intention
Objectives
1: Make responsible,
"We will work to responsibly
1.1: Follow sound business practices
accountable, and
position our community-
1.2: Take action quickly to manage risk and
financially rewarding
owned business for success
maximize opportunity
business decisions
as things change around us."
1.3: Assess value holistically to find our
best contribution
Page 4 of 9
2: Serve customers
"We will work to empower
2.1: Pursue affordable, reliable, and
as an affordable and
customers and community
predictable energy services
reliable partner in the
members as their trusted
2.2: Empower customers with choice and
energy transition
partner in the energy
with trustworthy, accessible information
future -proofing our
transition."
2.3: Bring people along as things change
3: Contribute to a
"We will work to make our
3.1: Collaborate with partners
thriving community
community even stronger."
3.2: Do our part to address climate change
forecasts, scenarios
to track and contain
3.3: Use clear metrics and align them with
and models to help us
gas in our system.
community -scale goals
4. Plan for multiple
"We will work to prioritize
4.1: Rely on safe bet technologies and
energy futures with
solutions that can adapt to
prepare for long shot technologies
flexibility and focus
and provide value in all
4.2: Prepare for a broad range of net -zero
energy futures."
carbon futures
4.3: Iterate, experiment, and learn
REPORT:
Engagement to date
At the beginning of Phase 2 in January 2024, dedicated engagement workshops were held
with external stakeholders and internal Kitchener Utilities staff members to identify and explore
potential business activities that could be investigated. From these, 237 submissions were
received.
Suggestions were added from the extensive comments that were received last year during
engagement with community members, stakeholders, City committees, staff, and councillors,
which resulted in 371 suggestions in total. After removing duplicates, 135 ideas were reviewed
by staff.
Business activities
Matching the breadth of ideas that were received, staff have identified a broad range of
potential energy business activities, which fit under four main themes:
We could...
(themes)
This might
look like...
(types of
potential
business
activities)
• providing energy
equipment services.
• providing energy
transition support
services.
• running a district or
neighbourhood
utility.
• helping commercial
and industrial
customers meet their
energy needs.
• developing policies
• making, buying, or
• generating and
and programs for our
delivering biofuels
selling renewable
assets.
(e.g. renewable
energy at a large
• evaluating and
natural gas).
scale.
future -proofing our
• making, buying, or
gas rates.
delivering hydrogen.
• developing
• advancing our work
forecasts, scenarios
to track and contain
and models to help us
gas in our system.
plan.
Page 5 of 9
Investigation to build a strategy
It is expected that an integrated business approach will be recommended in the proposed
strategy at the end of Phase 2, and that this approach could include a combination of different
business activities. Staff have identified that each of the potential business activities that have
been identified requires some amount of additional investigation to determine whether it could
form a part of this integrated business approach. Conducting this investigation for the strategy
is a significant body of work.
Considerations for Investigation
As part of this investigation, many different considerations need to be examined. These
considerations will be strongly informed by the guiding principles for the project, which were
endorsed by Council last year.
Each guiding principle has three identified objectives. As detailed in the 2023 Discussion
Paper, each of these objectives includes a range of considerations that were raised in the
extensive Phase 1 engagement for the project, and identified in the Phase 1 Discussion Paper.
Considerations proposed to be included in the investigation of each potential business activity
are outlined in Appendix A.
Next steps
Staff are proceeding with the work, and currently convening individual project sub teams to
advance the investigation of each of these business activities, with support as needed from
consultants. Investigating the range and complexity of the potential business activities is
expected to continue into early 2025, with the integrated strategy to follow.
Discussion with City Council
1. What are your reflections on the business activity themes and what theme are you most
curious about?
2. Referring to Appendix A, are there any considerations for investigation that you feel:
a. Should be prioritized or de -prioritized
b. Should be added
STRATEGIC PLAN ALIGNMENT:
This report supports Cultivating a Green City Together: Focuses on a sustainable path to a
greener, healthier city; enhancing & protecting parks & natural environment while
transitioning to a low -carbon future; supporting businesses & residents to make climate -
positive choices.
FINANCIAL IMPLICATIONS:
The recommendation has no impact on the Capital Budget or Operating Budget at this time.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of the
council / committee meeting.
Page 6 of 9
CONSULT — As noted above, during Phase 1 of the project in 2023, extensive consultation took
place with customers, community members, stakeholders, Kitchener committees, staff, and
councillors. This engagement, combined with stakeholder engagement in January of 2024, has
provided a large list of energy business activities that could be pursued.
PREVIOUS REPORTS/AUTHORITIES:
• INS -2023-199 Kitchener Utilities Clean Energy Transition Update
• INS -2023-508 Phase 1 report and guiding principles for the Kitchener Utilities Clean
Energy Transition Strategy
APPROVED BY: Denise McGoldrick, GM Infrastructure Services
ATTACHMENTS:
None.
Page 7 of 9
Appendix A: Objectives and Considerations for Investigation
Principle 1: Make responsible, accountable, and financially rewarding business decisions
Objectives
Investigation of each business activity will include
considerations such as...
1.1: Follow sound
• business viability
business practices
• safety, regulatory, legal, and risk considerations and
reliable, and predictable
implications fit with other business activities
1.2: Take action quickly
• how time -sensitive it is and how long it takes to
to manage risk and
implement
maximize opportunity
. possible and expected changes to customer base,
compatibility with a reliable energy system and
context, and market over time
1.3: Assess value
. high-level social and financial risks/costs/benefits
holistically to find our best
. alignment with the City's and Kitchener Utilities'
contribution
strengths
•
• business competition profile
with choice and with
• whether other parties are better suited to do the
considerations for customer trust
work
.
• practicality of implementation
Principle 2: Serve customers as an affordable and reliable partner in the energy transition
Objectives
Investigation of each business activity will include
considerations
such as...
2.1: Pursue affordable,
•
cost and value of service to current and potential
reliable, and predictable
customers
energy services
.
affordability implications for diverse groups
•
compatibility with a reliable energy system and
customer experience
0
ability to provide predictable service levels
2.2: Empower customers
•
potential for customization
with choice and with
.
considerations for customer trust
trustworthy, accessible
.
opportunities for sharing information and stories
information
.
compatibility with supporting customers through
their energy transitions
2.3: Bring people along
•
potential to incorporate educational supports
as things change
.
potential customer and community buy -in
•
staff development and training needs and
opportunities
Page 8of9
Principle 3: Contribute to a thriving community
Objectives
Investigation of each business activity will include
considerations such as...
3.1: Collaborate with
• compatibility and alignment with existing,
partners
developing, and potential partnerships
3.2: our part
• GHG and energy use implications
"locking
addreess s climate c change
. potential for in" future emissions
4.2: Prepare for a broad
. scale of contribution to the transition off fossil fuels
3.3: Use clear metrics
' financial, energy, and GHG performance
and align them with
expectations
community -scale goals
' benefits and limitations for affordability, equity,
prosperity, resilience, and environment
Principle 4: Plan for multiple energy futures with flexibility and focus
Objectives
Investigation of each business activity will include
considerations such as...
4.1: Rely on safe bet
• reliance on safe bet technologies
technologies and
• compatibility with long shot technologies and level
prepare for long shot
of preparation required
technologies
4.2: Prepare for a broad
• compatibility with a broad range of modelled net -
range of net -zero carbon
zero pathways
futures
• near-term flexibility
0 alignment with long-term goals
• intergenerational fairness
4.3: Iterate, experiment,
• opportunities to iterate, experiment, and try new
and learn
things
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