THIS MEETING MAY BE TELECAST ON PUBLIC TELEVISION OR WEBCAST ON THE CITY’S PUBLIC WEBSITE
FINANCE & STRATEGIC PLANNING COMMITTEE MEETING Monday, November 16, 2015 2:00 P.M.
AGENDA Councillor Henry in the Chair
1. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF
2. APPROVAL OF MINUTES
a) October 19, 2015 – Finance & Strategic Planning Page 7 Committee Meeting Minutes
1. That the minutes of the Finance & Strategic Planning Committee Meeting held on Monday, October 19, 2015 be approved as printed.
3. DELEGATIONS None
4. PRESENTATIONS None
Finance & Strategic Planning Page 1 of 162 November 16, 2015 Committee Meeting 5. CONSENT MOTION
That Consent Items (a) through (e) be approved.
a) Title: OMCIP Grant Application Page 16 Report No.: CORP2015-102 Prepared By: Kim Reger
Recommendations: 1. That Council approve CORP2015-102.
2. That Council endorses and approves the submission of the Waterloo Park Central Promenade project as the City of Waterloo’s application to the Ontario Municipal Cycling Infrastructure Program.
b) Title: 2016 Interim Tax Levy Page 25 Report No.: CORP2015-107 Prepared By: Jody Bitton
Recommendations: 1. That CORP2015-107 be approved.
2. That Council approves the 2016 Interim Tax Levy By- law, attached as Schedule “A”.
c) Title: Streetlighting Retrofit and Pole Replacement Page 29 Program Report No.: IPPW2015-099 Prepared By: Helga Bowman
Recommendations: 1. That IPPW2015-099 be approved.
2. That capital funding for the Streetlighting Retrofit and Pole Replacement program in the amount of $337,000, funded from the Capital Infrastructure Reinvestment Reserve Fund be approved as per the 2015 Approved Capital Budget Ref #805.
Finance & Strategic Planning Page 2 of 162 November 16, 2015 Committee Meeting d) Title: ESRI End User Licensing Agreement and Page 31 Maintenance Report No.: CORP2015-100 Prepared By: Teresa Soulliere
Recommendations: 1. That CORP2015-100 be approved.
2. That Council approves entering into a new three year Enterprise Licensing Agreement with ESRI for the term January 1, 2016 to December 31, 2018.
3. That Council, in accordance with Section 15.1 of the Purchasing By-Law, approve the sole source purchase of continued annual licensing and maintenance to the vendor ESRI.
4. That Council authorizes the Mayor and City Clerk to sign any related and future documents subject to the approval of the City Solicitor.
e) Title: Lexington Court Parking Permits Page 35 Report No.: IPPW2015-106 Prepared By: Bill Garibaldi
Information.
6. STAFF REPORTS
a) Title: Interim Wage Adjustment for Waterloo Page 37 Professional Fire Fighters Association Report No.: CORP2015-110 Prepared By: Karen Boa
Recommendations: 1. That Council approve implementation of an interim cost of living wage adjustment for the Waterloo Professional Fire Fighters Association members
2. That adjustment for 2015 would be 1.5%
b) Title: Uptown Parking Exemption Program with Page 40 Section 40 Parking Agreement for 19 Regina Street South Report No.: CAO2015-020 Prepared By: Ryan Mounsey
Finance & Strategic Planning Page 3 of 162 November 16, 2015 Committee Meeting Presentation: Ryan Mounsey, Manager, Expansion & Retention Services
Recommendations: 1. That Council approve report CAO2015-020.
2. That Council initiate the Parking Exemption Program as per the framework outlined in The Uptown Community Improvement Plan (IPPW2015-074).
3. That the Mayor and Clerk be authorized to sign the Section 40 Parking Agreement for 19 Regina Street substantially in the form attached hereto at Appendix C subject to the satisfaction of the Director of Legal Services.
c) Title: Waterloo Regional Tourism Marketing Page 55 Corporation Funding for 2016-2020 Report No.: CAO2015-021 Prepared By: Jillian Fleming
Recommendations: 1. That Council approve CAO 2015-021.
2. That Council approves funding for the Waterloo Regional Tourism Marketing Corporation of $90,000/year for five additional years to continue this region wide shared services approach for Tourism.
d) Title: West Side Employment Lands Funding 2015 Page 66 Release Approval Report No.: CAO2015-022 Prepared By: Justin McFadden and Nancy Gehl
Recommendations: 1. That Council approve CAO2015-022.
2. That Council approves the 2015 capital funding for engineering and planning studies for the West Side Employment Lands in the amount of $204,000 funded from the Industrial Land Account (ILA) (2015 Capital Budget ref#106).
Finance & Strategic Planning Page 4 of 162 November 16, 2015 Committee Meeting e) Title: Region of Waterloo Spurline Trail – 2015 Funds Page 69 Release Report No.: IPPW2015-101 Prepared By: John Griffin
Recommendations: 1. That IPPW2015-101 be approved.
2. That capital funding for the Spurline Trail in the amount of $546,000, funded from the stormwater utility reserve, be approved as per the 2015 Approved Capital Budget ref #891.
f) Title: 2015 Surplus Projection Page 73 Report No.: CORP2015-108 Prepared By: Paul Hettinga
Information.
g) Title: Library Funding Agreement Extension Page 84 Report No.: CORP2015-095 Prepared By: Cassandra Pacey
Recommendations: 1. That Council approve CORP2015-095.
2. That Council authorizes a one year extension of the 2012-2015 Library Funding Agreement ending December 31, 2016.
3. That the 2016-2018 operating budget include funding as outlined within this report and that additional funding as outlined in the October 16, 2015 WPL correspondence be considered during the 2016-2018 budget process.
4. That Council authorizes the Mayor and Clerk to sign all necessary documents deemed appropriate by the Director of Legal Services for the one year extension.
h) Title: Delegation of Signing Authority Page 108 Report No.: CORP2015-109 Prepared By: Steve Ross
Memorandum: Audit Committee Resolution Page 129
Finance & Strategic Planning Page 5 of 162 November 16, 2015 Committee Meeting Recommendations: 1. That CORP2015-109 be approved.
2. That the attached by-law be adopted, being a By-law to Delegate Authority to Execute Documents.
i) Title: Amended Purchasing By-law Page 130 Report No.: CORP2015-087 Prepared By: Tracie Bell
Memorandum: Audit Committee Resolution Page 162
Recommendations: 1. That CORP2015-097 be approved.
2. That By-Law #2011-043 (Last amended by By-Law No. 2012-083, August 13, 2012) be repealed.
3. That Council adopt the attached by-law, being a new by-law to establish policies for the procurement of goods services by the City.
7. CONSIDERATION OF NOTICE OF MOTION GIVEN A PREVIOUS MEETING None
8. NOTICE OF MOTION
9. COMMUNICATIONS AND CORRESPONDENCE None
10. REGIONAL INFORMATION AND CORRESPONDENCE None
11. UNFINISHED BUSINESS
12. NEW BUSINESS i. Delegations ii. Items removed from Consent Motion to be dealt with separately iii. Staff Reports iv. Other Business
13. QUESTIONS
14. ADJOURNMENT
Finance & Strategic Planning Page 6 of 162 November 16, 2015 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 239 October 19, 2015
A meeting of the Finance & Strategic Planning Committee of The Corporation of the City of Waterloo was held on October 19, 2015 at 2:01 p.m. in the Council Chambers, 100 Regina Street, South, Waterloo, Ontario.
FINANCE & STRATEGIC PLANNING COMMITTEE MEETING Monday, October 19, 2015
Minutes - DRAFT
PRESENT: Mayor Jaworsky, Councillor Mavin, Councillor Bourke, Councillor Vieth, Councillor Whaley, Councillor Henry, Councillor Durrell
ABSENT: Councillor Freeman
Councillor Henry in the Chair
1. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF
No disclosure of pecuniary interest was declared by any member of Council at this point in the meeting.
2. NEW BUSINESS
Councillor Jeff Henry introduced Shayne Turner, Director of Municipal Enforcement Services, who began his new role today. Shayne has an extensive background in by- law enforcement and property standards having worked as the director of By-law Enforcement with the City of Kitchener since 2001 and as Manager of By-law Enforcement with the City of Mississauga prior to that. Councillor Henry welcomed Shayne Turner to the City of Waterloo.
Finance & Strategic Planning Page 7 of 162 November 16, 2015 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 240 October 19, 2015
3. APPROVAL OF MINUTES
a) September 21, 2015 – Finance & Strategic Planning Committee Meeting Minutes
Moved by Mayor Jaworsky, seconded by Councillor Vieth:
1. That the minutes of the Finance & Strategic Planning Committee Meeting held on Monday, September 21, 2015 be approved as printed.
Carried Unanimously
4. CONSENT MOTION
That Consent Items (a) through (f) be approved.
Moved by Councillor Bourke, seconded by Councillor Vieth:
a) Title: Purchasing Award Summary – Quarter 3 2015 Report No.: CORP2015-086 Prepared By: Tracie Bell
Information.
b) Title: Commissioner Special Projects Pilot Quarter 3 Update Report No.: CORP2015-094 Prepared By: Dean Vieira
Information.
c) Title: Support for Haldimand County Resolution for Review of Property Tax Vacancy Rebate Legislation Report No.: CORP2015-097 Prepared By: Paul Hettinga
1. That Council approves report CORP2015-097.
2. That Council support the resolutions of the Region of Waterloo and Haldimand County and request the Minister of Finance and Minister of Municipal Affairs to review the vacancy rebate legislation from the public policy perspective to ensure that businesses are not eligible for a reduced property tax burden if the claimed vacancy is a result of a labour disruption.
Finance & Strategic Planning Page 8 of 162 November 16, 2015 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 241 October 19, 2015
3. That this resolution be forwarded to the Minister of Finance, Minister of Municipal Affairs and Housing, the Association of Municipalities of Ontario, the Council of Ontario Universities, the Ontario Hospitals Association and local area Members of Provincial Parliament.
Carried Unanimously
d) Title: Request for Funding Approval – Fiber Network Infrastructure – Large Scale Report No.: IPPW2015-091 Prepared By: Harry Meister
1. That IPPW2015-091 be approved.
2. That capital funding for the Fibre Network Infrastructure Extension project in the amount of $216,000, funded from the Capital Reserve Fund, be approved, as per the 2015 Approved Capital Budget (ref #518).
Carried Unanimously
e) Title: 2016 Parking Rates Report No.: IPPW2015-094 Prepared By: Christine Tettman
1. That IPPW2015-094 be approved.
2. That Council approve a zero percent increase in parking rates for 2016.
Carried Unanimously
f) Title: Cross Border Servicing Agreements with the City of Kitchener Report No.: IPPW2015-096 Prepared By: Denise McGoldrick
1. That IPPW2015-096 be approved.
2. That the Mayor and Clerk be authorized to execute the “Cross Border Servicing Agreement – Miscellaneous Properties, Cities of Kitchener and Waterloo” and the CAO be delegated authority to make amendments and sign any ancillary documents related to this Cross Border Servicing Agreement.
Finance & Strategic Planning Page 9 of 162 November 16, 2015 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 242 October 19, 2015
3. That the Mayor and Clerk be authorized to execute the “Cross Border Servicing Agreement – Bridgeport Sanitary Pumping Station” and the CAO be delegated authority to make amendments and sign any ancillary documents related to this Cross Border Servicing Agreement.
Carried Unanimously
5. STAFF REPORTS
a) Title: Reserve and Reserve Funds Annual Update Report No.: CORP2015-080 Prepared By: Julie Koppeser
Moved by Mayor Jaworsky, seconded by Councillor Vieth:
1. That Council approve report CORP2015-080.
2. That Council approve that the Capital Infrastructure Reinvestment Reserve Fund revenue policy be amended to remove the reference to operational savings realized from the implementation of new energy management.
3. That Council approve that a program number be established within the Facilities Maintenance Reserve for energy management, and that the Revenues policy be updated to include that operational savings realized from the implementation of new energy management will be split 25% to the Facility Maintenance Reserve energy management program number and 75% to assist in offsetting utilities costs (e.g. electricity). Additionally, savings from energy management grants will also be allocated to the energy management program number.
4. That Council approve that the Facilities Maintenance Reserve Policy and Expenditures policy be amended to include that the dollars in the Energy Management program number in the Facilities Maintenance Reserve can be used as a funding source for capital projects that are projected to result in future energy savings.
5. That Council approve that the Computer Equipment & Photocopier Replacement Reserve Council approved target level policy be amended to include that any dollars above the established reserve cap will be transferred to the Capital Reserve Fund at year end.
Finance & Strategic Planning Page 10 of 162 November 16, 2015 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 243 October 19, 2015
6. That Council approve that $687,000 be transferred from the Tax Rate Stabilization Reserve to the Environmental Clean Up Reserve to ensure an appropriate level of funding will be available in the event of an unanticipated significant environmental issue.
7. That Council approve that $273,000 be transferred from the Tax Rate Stabilization Reserve to the Facilities Maintenance Reserve to ensure an appropriate level of funding will be available for emergency facility maintenance.
8. That Council approve the revised Heritage Reserve Policy attached as Appendix A, and that a Built Heritage program number be established within the Reserve.
9. That Council approve the new Public Art Reserve Policy attached as Appendix B.
10. That Council approve that the Winter Control Reserve receive a $400,000 contribution from year end surplus, if any, to assist in rebuilding the Reserve towards the Council Approved minimum balance.
11. That Council approve that the historical Waterloo North Hydro Investment Surplus recorded as equity from the years 2003 to 2007 in the total amount of $2,277,656 be transferred to reserves, allocated 50% to the Capital Reserve Fund, 25% to the Economic Development Reserve, and 25% to the Uptown Development Reserve Fund.
12. That Council approve that the following housekeeping adjustments be updated in the Reserves and Reserve Fund policies:
a) That Council approve that the Employee Development and Capacity Building Reserve Revenue policy be updated to include that for terminations at least 16 weeks of vacancy is required to be contributed to the Reserve as outlined in the Termination Funding Policy
b) That Council approve that the Employee Development and Capacity Building Reserve Revenue policy be updated to include that a position may be exempted from the application of the policy with approval from the Commissioner of the department and the CAO, and that in addition, maternity leave positions, CUPE seasonal positions, contract positions, and temporary (casual) part time positions are exempt.
Finance & Strategic Planning Page 11 of 162 November 16, 2015 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 244 October 19, 2015
c) That Council approve that the reference to the Municipal Price Index in the Tax Rate Stabilization Reserve Council approved target level policy be amended to Core Consumer Price Index.
13. That Council approve the updated FC-006 Reserves and Reserve Funds Policy attached as Appendix C, as a result of the changes recommended in 2 through 11, inclusive.
Carried Unanimously
b) Title: RIM Park Lions Arena Repairs Report No.: CORP2015-081 Prepared By: Jean Starchuk
Moved by Councillor Vieth, seconded by Councillor Bourke:
1. That Council approve CORP2015-081.
2. That Council approve the release of funding in the amount of $265,000 from the Facility Maintenance Reserve for the RIM Park Lions Arena Repairs.
Carried Unanimously
c) Title: Bill 8 – Public Sector and MPP Accountability and Transparency Act – Appointment of a Municipal Ombudsman Report No.: CORP2015-098 Prepared By: Olga Smith
Moved by Councillor Whaley, seconded by Mayor Jaworsky:
1. That report CORP2015-098 be approved.
2. a) That staff be directed to work with the area municipalities and the City of Guelph in the issuance of a joint RFP for the purpose of retaining a joint Municipal Ombudsman pursuant to the accountability and transparency provisions of the Municipal Act; and,
b) That a by-law be brought forward to Council for the appointment of same; and,
Finance & Strategic Planning Page 12 of 162 November 16, 2015 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 245 October 19, 2015
c) That the costs for Municipal Ombudsman’s services be referred to Council for consideration once the procurement process is complete.
3. That staff report back to Council on the details of an internal complaint resolution procedure.
Carried Unanimously
d) Title: Integrity Commissioner Report No.: CORP2015-099 Prepared By: Olga Smith
Moved by Mayor Jaworsky, seconded by Councillor Bourke:
1. That CORP2015-099 be approved.
2. That Council approve a six month extension of the contract with Mr. Gregory Levine as Integrity Commissioner from December 1, 2015 to June 1, 2016.
3. That staff report back to Council before June 2016 with recommendations regarding the hiring of a new Integrity Commissioner through Expressions of Interest (EOI) or to pursue Request for Proposals (RFP) for a joint Integrity Commissioner position with area municipalities.
Carried Unanimously
e) Title: Budget Public Engagement Strategy Report No.: CAO2015-019 Prepared By: Sheldon Pereira
Information.
f) Title: Green Municipal Fund Candidate – Centre for Sustainability Excellence Report No.: CORP2015-096 Prepared By: Cassandra Pacey & Justin McFadden
Moved by Councillor Whaley, seconded by Councillor Durrell:
1. That Council approve CORP2015-096.
Finance & Strategic Planning Page 13 of 162 November 16, 2015 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 246 October 19, 2015
2. That Council authorizes the submission of a Green Municipal Fund Feasibility Study application for a Centre for Sustainability Excellence.
3. That Council authorizes the Mayor and Clerk to sign the feasibility study application for the Green Municipal Fund Feasibility Study and any related documents.
Carried Unanimously
g) Title: Review of Per Capita/Arts Sustainability Funding Report No.: COM2015-024 Prepared By: Jim Bowman and Astero Kalogeropoulos
Astero Kalogeropoulos, Manager, Arts and Culture reviewed the report and responded to questions from Council.
William Poole, Executive Director, Canadian Clay and Glass Gallery spoke in favour of this report and provided council with a summary of comparative public funding levels.
Andrew Bennett, Executive Director, Kitchener-Waterloo Symphony spoke in favour of this proposal as one application per year will make a significant difference for the Kitchener-Waterloo Symphony.
David Marskell, CEO, THEMUSEUM provided Council with an overview of THEMUSEUM’S successes in their previous fiscal year. Mr. Marskell advised THEMUSEUM is underfunded and is not eligible for operational funding from the Federal or Provincial Governments. Mr. Marskell looks forward to working with the municipalities to find a sustainable model that allows THEMUSEUM to flourish for this community.
Bryce Kraeker, President, Kitchener-Waterloo Art Gallery spoke in favour of this report and provided Council with an overview of the Kitchener-Waterloo Art Gallery and their funding.
Moved by Mayor Jaworsky, seconded by Councillor Vieth:
1. That Council approve COM2015-024.
2. That the Council receive for information the report titled “Review of Per Capita/Arts Sustainability Funding and Municipal Funding Models for Key Cultural Institutions” jointly undertaken by the City of Waterloo, City of Kitchener and the Region of Waterloo attached.
Finance & Strategic Planning Page 14 of 162 November 16, 2015 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 247 October 19, 2015
3. That Council direct staff to establish in conjunction with Kitchener and Waterloo (and other municipalities if interested) a collaborative funding and assessment process for larger cultural organizations.
4. That Council in the absence of significant new funding by the City of Waterloo for community arts and cultural organization, limit the organizations funded by the City of Waterloo to those listed above, in order to support their financial stability.
5. That Council direct staff to address the funding to the Creative Enterprise at such time as the refreshed mandate for Creative enterprise is considered.
6. That Council provide continued funding to the core arts and culture organizations identified by City of Waterloo Council, namely the Kitchener Waterloo Symphony, THEMUSEUM, the Canadian Clay and Glass Gallery and KW Art gallery for the period of 2016 to 2019, at a minimum base level as in 2015, subject to annual budget approval.
Carried Unanimously
6. ADJOURNMENT
Moved by Councillor Durrell, seconded by Councillor Vieth:
That the meeting adjourn. (Time: 3:19 p.m.)
Carried Unanimously
READ AND APPROVED, November 16, 2015
Chair, Finance and Strategic Planning Committee
City Clerk
Finance & Strategic Planning Page 15 of 162 November 16, 2015 Committee Meeting 1 Corporate Services
STAFF REPORT Financial Planning & Purchasing
Title: Cycling Infrastructure Grant Application Report Number: CORP2015-102 Author: Kim Reger Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: November 16, 2015 File: [File] Attachments: Appendix A – Partnership MOU with the Region of Waterloo Ward No.: Click here to enter text.
Recommendation:
1. That Council approve CORP2015-102 and
2. That Council endorses and approves the submission of the Waterloo Park Central Promenade project as the City of Waterloo’s application to the Ontario Municipal Cycling Infrastructure Program.
A. Executive Summary
As part of #CycleON Action Plan 1.0, the Ministry of Transportation (MTO) has established the $10 million Ontario Municipal Cycling Infrastructure Program (OMCIP), to help municipalities build new and improve existing cycling infrastructure.
The program includes a two-stage application process that involves the submission of an expression of interest (EOI) and, for municipalities shortlisted on the basis of their EOI, an application form. The City of Waterloo was short-listed and invited back to apply for the grant; the award of funding will be determined through a competitive process.
Under this new program, the City of Waterloo was eligible to apply for funding for up to 50% of the total eligible costs of a cycling infrastructure project to a maximum amount of $325,000; the City is applying for the maximum amount. Total eligible project costs are $853,700 and the total cost of the project is $1,499,000. If the grant application is not
Finance & Strategic Planning Page 16 of 162 November 16, 2015 Committee Meeting 2 Corporate Services
successful the full cost of the project will be $1,174,000 and will not include the cycling infrastructure component.
B. Financial Implications
In the 2015 Approved Capital Budget, funds were set aside for the Trans Canada Trail through Waterloo Park, (Budget Ref #817). The funds set aside for Project #817 did not include the enhancements for cycling upgrades such as a dedicated bike lane; therefore, the $325,000 grant funding for the project will be to supplement the planned expenditure to upgrade the cycling infrastructure on the Central Promenade.
Under OMCIP the City of Waterloo was eligible to apply for funding for up to 50% of the total eligible costs of a cycling infrastructure project to a maximum amount of $325,000; the City is applying for the maximum amount. Total eligible project costs are $853,700 and the total cost of the project is $1,499,000. If the grant application is not successful the full cost of the project will be $1,174,000 and will not include the cycling infrastructure component.
C. Technology Implications
Not applicable.
D. Legal Considerations
Legal issues have been addressed to the satisfaction of Legal Counsel
E. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)
Multi-modal Transportation and Environmental Leadership
F. Previous Reports on this Topic
• CORP2015-070 OMCIP EOI
Finance & Strategic Planning Page 17 of 162 November 16, 2015 Committee Meeting 3 Corporate Services
G. Approvals
Name Signature Date
Author: Kim Reger Director: Filipa Reynolds Commissioner: Keshwer Patel Finance: Keshwer Patel
CAO
Finance & Strategic Planning Page 18 of 162 November 16, 2015 Committee Meeting 4 Corporate Services
Cycling Infrastructure Grant Application CORP2015-102
Background:
As part of #CycleON Action Plan 1.0, the Ministry of Transportation (MTO) has established the $10 million Ontario Municipal Cycling Infrastructure Program (OMCIP), to help municipalities build new and improve existing cycling infrastructure.
The program includes a two-stage application process that involves the submission of an expression of interest (EOI) and, for municipalities shortlisted on the basis of their EOI, an application form. One EOI is permitted per municipality and MTO expects to hold a single intake. Both EOIs and applications will be evaluated in a competitive process.
Key Dates
Activity Date Status
Invitation to submit EOI July 3rd, 2015 Complete
EOI Deadline August 6th, 2015 Complete
Invitation to submit Applications October 2015 Complete
Application Deadline November 2015
Anticipated announcement of Recipients February 2016
A Council resolution is required before the execution of the grant agreement on/or before March 2016. Deadline for the submission of electronic copies is due November 27th, 2015 by 5pm.
Finance & Strategic Planning Page 19 of 162 November 16, 2015 Committee Meeting 5 Corporate Services
Eligibility Requirements:
All Ontario municipalities are eligible for OMCIP funds. Projects must focus on infrastructure for cycling. Projects that primarily support walking or other modes of transportation will not be considered.
The trails have to be a one continuous segment. If the land isn’t owned by the City it is required to submit a legal binding agreement that demonstrates that the applicant can use the land. Partnerships are encouraged but not mandatory. Projects cannot provide parking. Synergies with other larger projects are valued.
Eligible costs include: design/engineering costs, project management costs, materials, construction and automatic bicycle counters.
Projects that already have full funding commitment are not eligible for OMCIP. OMCIP funds are intended to supplement, not replace, regular municipal funding for cycling.
Reporting Requirements:
Reporting requirements will be specified in the Agreement. Generally, there are two components:
• a financial report of the expenditures, to be submitted following the completion of the OMCIP Project (the “Final Report”); and • collection of performance data illustrating the OMCIP Project’s impact, which is to be forwarded to the Ministry two years after the OMCIP Project’s completion.
More detail on reporting requirements can be found:
http://www.forms.ssb.gov.on.ca/mbs/ssb/forms/ssbforms.nsf/GetFileAttach/023- 5073E~2/$File/5073E_Guide.pdf
Finance & Strategic Planning Page 20 of 162 November 16, 2015 Committee Meeting 6 Corporate Services
Disbursements:
Any amount of OMCIP Funds provided to a Recipient will be subjected to adjustment as set out in an Agreement. Funding will be disbursed at specific project milestones. Although this may be modified at the discretion of the Ministry, the Ministry’s intent is for OMCIP Funding to be provided as follows:
Milestone Percentage of Total Eligible Project Costs
Award of contract design 25%
Award of construction contract 25%
Submission of Certificate of Substantial Completion 35%
Submission of Final Report 15%
Factors to be considered during evaluation are as follows:
Connectivity, safety and security, municipal priority, cost effectiveness, feasibility, innovation, tourism and economic development, project readiness and ridership.
Recommended Project:
The Project (Trans Canada Trail through Waterloo Park) meets application criteria as it is a linear off-road project which will improve an existing piece of cycling infrastructure. The project includes an upgrade to a busy trail that connects Uptown Waterloo to two university campuses. Counts indicate 503,000 combined pedestrian and cyclists have used the trail between September 2014 and October 2015 at a ratio 2:1. The monthly average is about 36,000 combined users. The project will support the quantity of trail users by providing a comfortable and safe experience when using the trail to commute or for leisure. • The funds set aside for Project #817 did not include the enhancements for cycling upgrades such as a dedicated bike lane; therefore, the $325,000 funding for the project will be to supplement the planned expenditure to upgrade cycling infrastructure on the Promenade.
Finance & Strategic Planning Page 21 of 162 November 16, 2015 Committee Meeting 7 Corporate Services
Lands under Regional Ownership
The Region of Waterloo owns a portion of the lands that this project will include along the light rail transit corridor. In instances where the municipality does not own all of the land in the project area, the grant application requirement is to provide a Letter of Intent or a Memorandum of Understanding between the applicant municipality and the property Owner. Should this grant application be successful and should the project continue to encroach into Regional lands, a legally binding partnership agreement will be required prior to the execution of the Transfer Payment Agreement (anticipated in March 2016). City staff has obtained correspondence from the Region of Waterloo, indicating support for the grant application and reconfirming commitment to the anticipated land transfer. Please refer to Appendix-A.
Project Budget
The City has applied for the maximum amount of $325,000. Total eligible project costs total $853,700 and the total cost of the project is $1,499,000 (includes the $325,000). If the City is unsuccessful in obtaining the grant total project costs will be $1,174,000.
Total Project Total Project Total Eligible Ineligible Costs if Grant Costs if Grant Description Project Costs Costs Unsuccessful Successful % of Budget MTO Funding $ 325,000 - - 325,000 Total Grant Funding $ 325,000 - - 325,000 22% Gas Tax Rebate Reserve Fund $ 156,000 156,000 156,000 10% Parkland Dedication Reserve Fund $ 372,700 645,300 1,018,000 1,018,000 68% Total 2016 & 2017 Municipal Capital Funding $ 528,700 645,300 1,174,000 1,174,000 78% Total Project Budget $ 853,700 645,300 1,174,000 1,499,000 100% Ineligible project costs of $645,300 may include but are not limited to property acquisition, leasing land, landscaping, educational or promotional signage, lighting between intersections, new curb and gutters, new sidewalks, interlocking pavers, shelters and benches for resting, labour and administrative costs associated with data collection, costs associated with environmental assessments, maintenance work, and legal fees and financing charges.
Finance & Strategic Planning Page 22 of 162 November 16, 2015 Committee Meeting 8 Corporate Services
Appendix A - Partnership MOU with the Region of Waterloo
MEMORANDUM OF UNDERSTANDING
Between
Regional Municipality of Waterloo Kitchener, Ontario and The Corporation of the City of Waterloo Waterloo, Ontario
1. GENERAL DESCRIPTION OF THE PROJECT AREA The Central Promenade (Trans Canada Trail) in Waterloo Park routes between the intersection of Erb Street West and Caroline Street north to Seagram Drive adjacent to the Region-owned light rail transit corridor. The project area may extend up to 12.5m offset on either side of the light rail transit corridor through the Park, and will include reconfiguration of the access between Central Street and the light rail transit corridor. Refer also to the attached map for identification of Region-owned lands.
2. PURPOSE The purpose of this Memorandum of Understanding is to acknowledge the Region’s ownership over a portion of the lands within the project area and for the Region to offer support for the City’s application to the Ontario Municipal Cycling Infrastructure Program for proposed improvements to cycling infrastructure. Further, this Agreement allows the City to proceed with plans to undertake improvements on the lands within the project area that are currently under Regional ownership.
3. TERM This Memorandum of Understanding will be in effect from the date of its signature by both parties and shall remain in force until either a Partnership Agreement is entered into between the parties, or ownership of the Region’s lands are transferred to the City.
4. OBLIGATIONS This Agreement recognizes that the full project costs for improvement to the Central Promenade will be the responsibility of the City. This Agreement reflects the intention and desire of the parties to cooperate towards a common goal of trail improvement through Waterloo Park, and as such, the City will obtain permission from the Region for all planned improvements in advance of undertaking works on lands owned by the Region within the project area.
SIGNATURES:
REGIONAL MUNICIPALITY THE CORPORATION OF OF WATERLOO THE CITY OF WATERLOO
______[authorized signature] [authorized signature] [title] [title]
______Date Date
Finance & Strategic Planning Page 23 of 162 November 16, 2015 Committee Meeting 9 Corporate Services
Finance & Strategic Planning Page 24 of 162 November 16, 2015 Committee Meeting 1 Corporate Services
STAFF REPORT Revenue & Accounting
Title: 2016 Interim Tax Levy Report Number: CORP2015-107 Author: Jody Bitton Meeting Type: Finance & Strategic Committee Meeting Council/Committee Date: November 16, 2015 File: [File] Attachments: Schedule “A” 2016 Interim Tax Levy By-law Ward No.: City-Wide
Recommendation:
1. That CORP2015-107 be approved. 2. That Council approve the 2016 Interim Tax Levy By-law, attached as Schedule "A".
A. Executive Summary The purpose of this report is for Council to approve the Interim tax billing for 2016.
Section 317 of the Municipal Act, 2001, provides that a local municipality, before the adoption of the budget estimates for the taxation year, may pass a by-law levying interim funds for local municipal purposes. All amounts so levied may not exceed 50 per cent of the total taxes raised for municipal and school purposes of the prior year. Under legislation the interim levy may be based on assessments according to a municipal tax roll as most recently revised, provided that the authorizing by-law is passed before a new assessment roll is returned for the upcoming taxation year. The assessment roll is returned each December on the second Tuesday in the month. It is necessary to have an interim billing as the budgets for all three levels of government are not approved before year end. Properties that generate Payment in Lieu (PIL) are not included in this Interim levy and are billed in Final later in the year. Subject to the approval of Council, the tentative instalment dates for the interim tax bills are March 2, 2016 and May 2, 2016.
Finance & Strategic Planning Page 25 of 162 November 16, 2015 Committee Meeting 2 Corporate Services
B. Financial Implications By using the municipal assessment roll for 2015 to bill the 2016 interim taxes, the City of Waterloo can ensure that the total taxes levied on all rateable properties will not exceed 50 per cent of the total taxes raised in the prior year for municipal and school purposes. An interim levy would allow the municipality to meet its financial obligations including payment of Region of Waterloo and school board requirements.
C. Technology Implications None
D. Legal Considerations Legal Counsel has reviewed this report and did not identify any significant issues.
E. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development) Corporate Excellence.
F. Previous Reports on this Topic CORP2014-077 – 2015 Interim Tax Levy – November 17, 2014
G. Approvals
Name Signature Date
Author: Jody Bitton Director: Paul Hettinga Commissioner: Keshwer Patel Finance: Keshwer Patel
CAO
Finance & Strategic Planning Page 26 of 162 November 16, 2015 Committee Meeting 3 Corporate Services
CORP2015-107 Appendix A
THE CORPORATION OF THE CITY OF WATERLOO
BY-LAW NO. 2015 –
Being a BY-LAW TO PROVIDE FOR THE 2016 INTERIM TAX LEVY AND FOR THE PAYMENT OF 2016 INTERIM PROPERTY TAXES
WHEREAS s. 317, of the Municipal Act, 2001, S.O. 2001, c.25, as amended, provides that the Council of a local municipality may, before the adoption of the estimates for the current year, pass a by-law for an interim tax levy.
AND WHEREAS this by-law will be passed before the assessment roll is returned; therefore, the amounts levied shall be on the assessment according to the tax roll for taxation in the previous year, as most recently revised.
NOW THEREFORE the Council of The Corporation of the City of Waterloo hereby enacts as follows: 1. That an Interim Tax Levy is hereby imposed and levied for 2016, which shall be 50% of the total amount of taxes for municipal and school purposes levied on the property for the previous year, according to the tax roll of The Corporation of the City of Waterloo for taxation in the previous year, as most recently revised (the “Interim Levy”).
2. That the Interim Levy shall be payable in two (2) installments with the first installment (the “First Installment”) being due and payable on the 2nd day of March, 2016 (the “First Due Date”), and with the second installment (the “Second Installment”) being due and payable on the 2nd day of May, 2016 (the “Second Due Date”).
3. A charge of 1.25% of the amount of the First Installment due and unpaid by the end of the First Due Date shall be imposed as a penalty for the non-payment of the First Installment.
4. A charge of 1.25% of the amount of the Second Installment due and unpaid by the end of the Second Due Date shall be imposed as a penalty for the non- payment of the Second Installment.
5. An interest charge of 1.25% of the amount of the First Installment due and unpaid by the end of the First Due Date shall be imposed for each month, or
Finance & Strategic Planning Page 27 of 162 November 16, 2015 Committee Meeting 4 Corporate Services
fraction thereof, in which the default continues.
6. An interest charge of 1.25% of the amount of the Second Installment due and unpaid by the end of the Second Due Date shall be imposed for each month, or fraction thereof, in which the default continues.
7. All penalty and interest charges provided for in this by-law shall be deemed to be part of the Interim Levy on which the penalty and interest charges have been imposed.
8. If a Court of competent jurisdiction should declare any section or part of the section of this by-law to be invalid, such section or part of a section shall not be construed as having persuaded or influenced Council to pass the remainder of this by-law and it is hereby declared that the remainder of this by-law shall be valid and shall remain in full force and effect.
9. This by-law shall come into force and effect on January 1, 2016.
Enacted this ______day of ______, 2015
Approval Date Print Name Initials Blank Signature
Corp D. Jaworsky, Mayor
Legal
Finance O. Smith, City Clerk
Finance & Strategic Planning Page 28 of 162 November 16, 2015 Committee Meeting 1 Integrated Planning & Public Works
STAFF REPORT Transportation Services
Title: Streetlighting Retrofit and Pole Replacement Program Report Number: IPPW2015-099 Author: Helga Bowman Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: November 16, 2015 File: 120082 Attachments: [Attachments] Ward No.: City Wide
Recommendation:
1. That IPPW2015-099 be approved.
2. That capital funding for the Streetlighting Retrofit and Pole Replacement program in the amount of $337,000, funded from the Capital Infrastructure Reinvestment Reserve Fund be approved as per the 2015 Approved Capital Budget Ref #805.
A. Executive Summary This report requests funding approval for the 2015 Streetlighting Retrofit and Pole Replacement Program. Streetlighting is an essential part of navigating the City’s road network at night while providing safety for all users including pedestrians.
In an effort to keep pace with the maintenance of streetlights as well as to keep current with the changing Ontario Electrical Regulations, the City of Waterloo continues to work with Waterloo North Hydro to keep the streetlights working and in good repair. As part of the streetlight maintenance program the City of Waterloo understands the importance of replacing aging and unsafe streetlight poles.
B. Financial Implications IPPW2015-099 is requesting the 2015 approved capital funding of $337,000 as per Ref #805 to complete the required maintenance and replacements as necessary. The 2015 funding will be used for the maintenance and replacement of existing streetlights and/or poles on Wissler Road, Union Street East, Dupont Street West, Roslin Avenue South, Hemlock Street, William Street West, Hillcrest Avenue, and Father David Bauer Drive.
Finance & Strategic Planning Page 29 of 162 November 16, 2015 Committee Meeting 2 Integrated Planning & Public Works
C. Technology Implications There are no technology implications with this report.
D. Legal Considerations Staff did not seek legal advice.
E. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development) Infrastructure Renewal
F. Previous Reports on this Topic IPPW2014-013 – Funding release report IPPW2013-018 – 2013-2014 Mid-Year Road and Infrastructure Program Update IPPW2012-018 – Funding release report
G. Approvals
Name Signature Date
Author: Helga Bowman
Director: Roslyn Lusk
Commissioner: Cameron Rapp
Finance: Michael Pugliese
CAO
Finance & Strategic Planning Page 30 of 162 November 16, 2015 Committee Meeting 1 Corporate Services
STAFF REPORT Information Management & Technology Services
Title: ESRI End User Licensing Agreement & Maintenance Report Number: CORP2015-100 Author: Teresa Soulliere Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: November 16, 2015 File: [File] Attachments: [Attachments] Ward No.: Click here to enter text.
Recommendation:
1. That Council approves Staff Report CORP2015-100. 2. That Council approves entering into a new three year Enterprise Licensing Agreement with ESRI for the term January 1, 2016 to December 31, 2018. 3. That Council, in accordance with Section 15.1 of the Purchasing By-Law, approve the sole source purchase of continued annual licensing and maintenance to the vendor ESRI. 4. That Council authorizes the Mayor and City Clerk to sign any related and future documents subject to the approval of the City Solicitor.
A. Executive Summary
ESRI software is used by the city for mapping. The purpose of this report is to renew the licensing agreement for a new three year term.
ESRI, as the owner and developer of the software, licenses their products to the City of Waterloo through a Small Enterprise License Agreement for Local Government (ELA). The three year agreement provides for unlimited use and access to products including maintenance and support.
The new three year Small Enterprise License Agreement for Local Government (ELA) is a continuation of the agreement first entered into in 2009 and renewed in 2012. The current agreement will expire on December 31, 2015.
Finance & Strategic Planning Page 31 of 162 November 16, 2015 Committee Meeting 2 Corporate Services
B. Financial Implications
The annual cost for the software maintenance agreement is budgeted for in Information Management and Technology Services.
Payment terms for the three year agreement are as follows: Year 1 $63,000 Year 2 $ 63,000 Year 3 $ 63,000 Total $189,000
ESRI calculates licensing and maintenance costs on population figures gathered and released by Statistics Canada every five years. The last collection was 2011, the next will be 2016.
When the population of the city increases to more than 100,000 (but less than 150,000) the cost of the maintenance for the following agreement will increase to the next tier pricing, approximately 35% higher. This increase will be included by IMTS in the 2019 budgetary process.
C. Technology Implications
GIS has reviewed this agreement and there are no additional technology resources required.
D. Legal Considerations
Legal Council has reviewed the agreement and did not identify any significant issues.
E. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)
F. Previous Reports on this Topic
Staff Report CS-IS 09-060
Finance & Strategic Planning Page 32 of 162 November 16, 2015 Committee Meeting 3 Corporate Services
G. Approvals
Name Signature Date
Author: Teresa Soulliere
Director: Max Min
Commissioner: Keshwer Patel
Finance: Keshwer Patel
CAO
Finance & Strategic Planning Page 33 of 162 November 16, 2015 Committee Meeting 4 Corporate Services
ESRI End User Licensing Agreement & Maintenance CORP2015-100
ESRI software products have supported Geographical Information Services (GIS) since their inception at the City in 1999. GIS has continued to evolve and today supports essential city services including fire suppression, building and development services, legal and zoning services, electoral sectioning, and other map based products. The GIS system also manages and houses geographical information related to corporate assets above and below ground.
Some specific examples of ESRI software use includes:
• managing the infrastructure assets alongside Maximo, • supporting Fire Rescue with information needed for emergency response, • publishing traffic closures information to the public, • maintaining zoning and Official Plan information and maps, • prepared maps and demographic reports for Economic Development, • presenting the public City Map website, • publishing Open Data
ESRI is the largest GIS vendor in the world, with approximately 90% of the Ontario municipal market, including the Region of Waterloo and the cities of Kitchener and Cambridge.
Finance & Strategic Planning Page 34 of 162 November 16, 2015 Committee Meeting 1 Integrated Planning & Public Works
STAFF REPORT Service Centre Administration
Title: Lexington Court Parking Permits Report Number: IPPW2015-106 Author: Bill Garibaldi Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: November 16, 2015 File: N/A Attachments: N/A Ward No.: Ward 5
Recommendation:
For information.
A. Executive Summary
Construction has begun on the Service Centre Expansion project. An expansion to the large employee parking lot is also part of the project. The parking lot was expanded during the first week of October using gravel and the final surface will be put on next year. In order to do the work in October, the contractor removed 25 parking spaces for a few days. 25 on street parking permits were issued for Lexington Court to accommodate this. When the parking lot is being completed next year, we will again need to provide on street parking.
On street parking permits are made available to residents and businesses for situations like these. The daily permit fee is $5 per day. The Commissioner of Integrated Planning and Public Works waived the permit fees for this City of Waterloo work. The total estimated value of the permits for both this year and next year is not expected to exceed $2,000. Under Section 3.1.6 of the fees and charges by-law, a Commissioner has the authority to waive a fee under certain conditions. In this case we have used section 3.1.6.5 as the condition “where imposing a fee or charge would be, in the opinion of the Commissioner, unreasonable given the circumstances”. We have done this knowing that we would have simply been shifting money from one account to another if we were to charge ourselves this fee.
The fees and charges by-law notes that if a fee is waived it must be reported to Council. The purpose of this report is to advise Council that these fees were waived in 2015 and will again be waived in 2016.
Finance & Strategic Planning Page 35 of 162 November 16, 2015 Committee Meeting 2 Integrated Planning & Public Works
B. Financial Implications
It is anticipated that the minimal revenue loss resulting from the waiving of this fee can be absorbed. For 2015 the road occupancy permit revenue target has already been achieved.
C. Technology Implications
There are no technology implications associated with this report.
D. Legal Considerations
Staff did not seek legal advice.
E. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)
Corporate Excellence – Providing this report to Council ensures that we are following financial control procedures.
F. Previous Reports on this Topic None
G. Approvals
Name Signature Date
Author: Bill Garibaldi
Commissioner: Cameron Rapp
Finance: Michael Pugliese
CAO
Finance & Strategic Planning Page 36 of 162 November 16, 2015 Committee Meeting 1 Corporate Services
STAFF REPORT Human Resources
Title: Interim Wage Adjustment for Waterloo Professional Fire Fighters Association Report Number: CORP2015-110 Author: Karen Boa Meeting Type: Council Meeting Council/Committee Date: November 16, 2015 File: n/a Attachments: None Ward No.: n/a
Recommendation:
1. That Council approve implementation of an interim cost of living wage adjustment for the Waterloo Professional Fire Fighters Association members
2. That adjustment for 2015 would be 1.5%
A. Executive Summary
Staff is negotiating presently with Waterloo Professional Fire Fighters Association for an amended Collective Agreement. The Collective Agreement handed down as the result of the partial arbitration in July 2014 expired on December 31, 2014.
The partial arbitration award involved implementation of a wage settlement from 2012 until 2014. Staff has requested interim wage increase approval from Council on two previous occasions in July 2014 and July 2013 when collective agreement negotiations or arbitration proceedings were underway.
At this time, staff is requesting Council to consider an interim wage increase of 1.5 % for 2015 based on the wage increase implemented for Staff Association for 2015. The City’s proposal on wages stresses fair and equitable treatment of all employee groups. Based on the economic outlook, Ministry of Labour wage settlement date and Ontario municipal data, it is the City’s position that an increase of 1.5% is reasonable.
The latest Collective Bargaining Highlights published by the Ministry of Labour indicates an overall average base wage increase for all settlements of 1.6 % for the period of January until August 2015. In this regard, private sector average base wage increases
Finance & Strategic Planning Page 37 of 162 November 16, 2015 Committee Meeting 2 Corporate Services
were 1.5% and for public sector the average was 1.6%. Collective Bargaining Highlights published for January until December 2014 indicate an overall average base wage increase for all settlements of 1.5%. (Private sector average increases were 1.8% and public sector increases were 1.4%). A review of municipal settlements achieved in 2014 indicates an average COLA increase of 1.7% for the year 2015. This average includes; inside and outside workers, transit, fire fighters, nurses, public health and library. The consumer price index in Ontario averaged 1.2% from January until August 2015.
In providing the same wage increase percentage as received by staff association and in view of the published settlement information, staff feel that a wage increase of 1.5% in 2015 is reasonable and fair as an interim wage adjustment. The final wage settlement will be determined at the conclusion of the negotiation process.
B. Financial Implications The incremental cost of the 1.5% increase for 2015 which is retroactive to January 2015 is $215,000. This includes wages and the costs associated with employer paid payroll expenses.
C. Technology Implications n/a
D. Legal Considerations n/a
E. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)
Fair and reasonable settlement with the City’s bargaining groups fosters a positive working environment and demonstrates fiscal responsibility
F. Previous Reports on this Topic CORP2013-013 CORP2014-060
Finance & Strategic Planning Page 38 of 162 November 16, 2015 Committee Meeting 3 Corporate Services
G. Approvals
Name Signature Date
Author:
Director:
Commissioner:
Finance:
CAO
Finance & Strategic Planning Page 39 of 162 November 16, 2015 Committee Meeting 1 Chief Administrative Officer
STAFF REPORT Economic Development
Title: Uptown Parking Exemption Program with Section 40 Parking Agreement for 19 Regina Street South Report Number: CAO2015-020 Author: Ryan Mounsey Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: November 16, 2015 Attachments: A: Parking Exemption Program CIP Excerpts B: Parking Exemption Request for 19 Regina Street C: Section 40 Parking Agreement
Recommendation: 1. That Council approve report CAO2015-020; 2. That Council initiate the Parking Exemption Program as per the framework outlined in The Uptown Community Improvement Plan (IPPW2015-074); and, 3. That the Mayor and Clerk be authorized to sign the Section 40 Parking Agreement for 19 Regina Street substantially in the form attached hereto at Appendix C subject to the satisfaction of the Director of Legal Services.
A. Executive Summary On August 10, 2015, City of Waterloo Council approved The Uptown Community Improvement (“The Uptown CIP” through Report IPPW2015-074). The purpose of The Uptown CIP is to support and incent sustainable reurbanization, revitalization and heritage conservation within the Uptown area. The Uptown CIP includes programs that relate to: façade improvement grant program; study grant program; fee grant program; commercial building improvement loan; minor activity grant/loan program; major activity grant; and, a parking exemption program. At this point, The Uptown CIP provides a legal framework for Council to initiate any or all of the programs and initiatives included in the CIP. On Council’s direction, and subject to decisions around funding, any or all of the programs in this CIP can be initiated or discontinued. Successful implementation of the CIP will require resources to implement and administer the financial incentive programs and to monitor and report on outcomes.
This Report relates exclusively to the Parking Exemption Program. The purpose of this program is to facilitate small expansions or changes in use where the developer is unable to provide the on-site parking as required by the Zoning By-law. The program provides for parking exemptions subject to the preparation of a parking analysis and a Section 40 parking agreement.
Finance & Strategic Planning Page 40 of 162 November 16, 2015 Committee Meeting 2 Chief Administrative Officer
In October 2015, The City received a request by 2425995 Ontario Inc. (“The Applicant”) to initiate The Parking Exemption Program to permit a 76.02 square metre gross building addition (818.27 square feet) to 19 Regina Street (“The Former Legion Building”). To enable this program, Council must first make a decision to initiate the Parking Exemption Program.
The purpose of this Report is to receive Council approval to initiate The Parking Exemption Program (in Uptown), as well as, to help facilitate the conversion of The Former Legion Building into creative office space through a Section 40 Parking Agreement. The Applicant has submitted a Parking Analysis letter by a qualified professional. As there are no direct funding implications involved with the Parking Exemption Program, Economic Development staff are requesting Council to initiate The Parking Exemption Program, and following this, to approve the Section 40 Parking Agreement for 19 Regina Street attached in Appendix C of this Report subject to the satisfaction of the Director of Legal Services. Economic Development is working to facilitate the other Community Improvement Plan Programs through an upcoming Report anticipated in the near future.
B. Financial Implications Staff is not aware of any direct funding implications related to this report. The primary purpose of this report is to reduce parking requirements to facilitate minor building additions and conversions for non-residential uses in The Uptown with the goal to support business retention and expansion in The Uptown and to enhance to enhance the tax base over time. The parking reduction is intended to be minor, and the proposed parking reduction will be evaluated on a case-by-case basis and will be monitored during the Parking Exemption Program that will be in effect for approximately five years (2020). This information may be used in support of a longer term parking strategy.
C. Technology Implications None
D. Legal Considerations City legal staff has been involved in the preparation of this report. To be in effect, Council must approve the Parking Exemption Program that will be in effect up to five years. A Section 40 Parking Agreement is involved to legally reduce the parking requirements as per the criteria in The Parking Exemption Program. The Section 40 Parking Agreement will involve Council approval with a supporting parking analysis.
E. Link to Strategic Plan/Economic Vitality Strategic Pillars: Multi-modal Transportation, Strong Community, Corporate Excellence, Infrastructure Renewal, Environmental Leadership, Economic Development. Economic Vitality: promote a thriving uptown.
F. Previous Reports on this Topic 1. Recommended Uptown Community Improvement Plan – IPPW2015-074.
Finance & Strategic Planning Page 41 of 162 November 16, 2015 Committee Meeting 3 Chief Administrative Officer
G. Approvals Name Signature Date Author: Ryan Mounsey Director: Justin McFadden Commissioner: Finance: Keshwer Patel
CAO
Finance & Strategic Planning Page 42 of 162 November 16, 2015 Committee Meeting 4 Chief Administrative Officer
Uptown Parking Exemption Program with Section 40 Parking Agreement for 19 Regina Street South CAO2015-020
Report Contents
1.0 IINTRODUCTION 1.1 BACKGROUND 1.2 PARKING EXEMPTION PROGRAM
2.0 19 REGINA STREET PARKING EXEMPTION REQUEST 2.1 THE APPLICATION 2.2 SECTION 40 PARKING AGREEMENT
3.0 FINANCIAL IMPLICATIONS
4.0 CONCLUSION
APPENDICES:
Appendix A: Parking Exemption Program CIP Excerpts Appendix B: Parking Exemption Request for 19 Regina Street Appendix C: Section 40 Parking Agreement
Finance & Strategic Planning Page 43 of 162 November 16, 2015 Committee Meeting 5 Chief Administrative Officer
1.0 INTRODUCTION
1.1 Background
On August 10, 2015, City of Waterloo Council approved The Uptown CIP (through Report IPPW2015-074). The purpose of The Uptown CIP is to support and incent sustainable reurbanization, revitalization and heritage conservation within the Uptown area. The Uptown CIP includes programs that relate to: façade improvement grant program; study grant program; fee grant program; commercial building improvement loan; minor activity grant/loan program; major activity grant; and, a parking exemption program. At this point, The Uptown CIP provides a legal framework for Council to initiate any or all of the programs and initiatives included in the CIP. On Council’s direction, and subject to decisions around funding, any or all of the programs in this CIP can be initiated or discontinued. Successful implementation of the CIP will require resources to implement and administer the financial incentive programs and to monitor and report on outcomes.
This Report relates exclusively to the Parking Exemption Program. The purpose of this program is to facilitate small expansions or changes in use where the developer is unable to provide the on-site parking as required by the Zoning By-law for a period of up to five years. The program provides for parking exemptions, subject to the preparation of a parking analysis and a Section 40 parking agreement as prescribed under the Ontario Planning Act.
In October 2015, The City received a request by The Applicant to initiate The Parking Exemption Program to permit a small building expansion (76.02 square metre addition / 818.27 square feet) to 19 Regina Street South. To support a minor parking reduction, Council must first make a decision to initiate the Parking Exemption Program. The purpose of this Report is to receive Council approval to initiate The Parking Exemption Program (in Uptown), as well as, to help facilitate the conversion of The Former Legion Building into creative office space by approving a Section 40 parking agreement. The Applicant has submitted a Parking Analysis letter by a qualified professional which has been reviewed and supported by IPPW and Economic Development staff.
1.2 Parking Exemption Program
The Parking Exemption Program was approved as part of an incentive program to facilitate non- residential (office) jobs in The Uptown for a period of up to five years. This program provides a planning approach to support business expansion and retention opportunities in The Uptown rather than a direct financial incentive and includes a provision that the program could be discontinued. To move forward, Council must initiate this program and applications will be subject to a Section 40 Parking Agreement that will evaluate parking reductions on a case-by- case basis. The City will initiate a monitoring program that will evaluate the program’s effectiveness and be presented to Council on a periodic basis. This program will be in effect for five years (2020) and reviewed at this time providing several options to evaluate parking supply in The Uptown. Council also has the opportunity to discontinue the program.
Finance & Strategic Planning Page 44 of 162 November 16, 2015 Committee Meeting 6 Chief Administrative Officer
2.0 19 REGINA STREET PARKING EXEMPTION REQUEST
2.1 The Application
On October 20, 2015, The City of Waterloo received a formal request by 2425955 Ontario Inc. (“The Applicant”) to initiate The Parking Exemption Program to facilitate a small building addition 76.02 square metres / 818.27 square feet) to 19 Regina Street South, the former Legion Building (difference between existing building floor area and proposed building floor area).
The Applicant retained MHBC to prepare a parking analysis letter in support of a Section 40 Parking Agreement which identifies the following rationale in support of the parking exemption:
• The proposed addition is small (less than 4% of building floor area) and intended for structural and amenity space that will not generate new employees. • The zoning by-law requires 42 parking spaces for the building conversion with the addition. The proposed office space in the existing building generally complies with the city’s parking requirement. • The site has been redesigned to provide 36 parking spaces, six short of the minimum required parking spaces. • The site is being redesigned to accommodate bike parking spaces and is located near transit and future LRT station. These services will help minimize the need for parking.
A more complete summary of the parking request, with supporting parking justification, is provided in Appendix B for reference. This parking analysis has been reviewed and supported by staff from Economic Development and IPPW.
2.2 Section 40 Parking Agreement
A Section 40 Parking Agreement (“The Parking Agreement”) has been prepared by IPPW in consultation with the City of Waterloo Director of Legal Services. This Agreement is required to reduce the minimum parking requirements for a new development or a change of use application.
If approved, this Agreement will be registered on title with the owner of the property (identified as Lexington Park Real Estate Capital Inc.) to permit a 76.02 square metre building addition (“The Expansion”) limited to a maximum expansion of 185 square metres. The Parking Agreement also involves several other conditions including site plan approval for The Expansion prior to the issuance of a building permit and that The Expansion is limited to four parking spaces. A copy of the proposed Section 40 Parking Agreement is attached in Appendix C.
Finance & Strategic Planning Page 45 of 162 November 16, 2015 Committee Meeting 7 Chief Administrative Officer
FINANCIAL IMPLICATIONS
Staff is not aware of any direct funding implications related to this report. The primary purpose of this report is to reduce parking requirements to facilitate minor building additions and conversions for non-residential uses in The Uptown with the goal to support business retention and expansion in The Uptown and to enhance to enhance the tax base over time. The parking reduction is intended to be minor, and the proposed parking reduction will be evaluated on a case-by-case basis and will be monitored during the Parking Exemption Program that will be in effect for approximately five years (2020). This information may be used in support of a longer term parking strategy.
4.0 CONCLUSION
In August 2015, The City of Waterloo has approved a Community Improvement Plan for The Uptown. The Uptown CIP can only come into effect subject to Council providing direction to initiate specific programs. This Report has been prepared to initiate the Parking Exemption Program to facilitate small additions and building conversions for office and non-residential uses in The Uptown for approximately five years (2020).
In October of this year, the City received request to initiate the Parking Exemption Program to facilitate the building conversion and addition to 19 Regina Street South with supporting parking analysis information. City staff has reviewed this material, and supports the proposed parking reduction (6 parking spaces). A Section 40 Parking Agreement has been prepared in support of this reduction and included as part of the recommendations of this report.
The 19 Regina Street redevelopment satisfies the criteria outlined in the CIP Report, and further, supports continued investment in The Uptown. Over time, staff will develop a monitoring program to evaluate the effectiveness of The Parking Exemption Program and provide updates to Council recognizing that applications will be reviewed on a case-by-case basis.
A separate report is currently being worked on to initiate the balance of the CIP programs. This will be presented to Council in the near future.
Finance & Strategic Planning Page 46 of 162 November 16, 2015 Committee Meeting 8 Chief Administrative Officer
Appendix A: Parking Exemption Program CIP Excerpts
Select excerpts from IPPW2015-074 for reference: Section 2.1 Proposed Incentive Programs: • Parking Exemption Program – To facilitate small expansions or changes in use where the developer is unable to provide the on-site parking as required by the Zoning By-law. The program provides for parking exemptions, subject to the preparation of a parking analysis and Agreement
Excerpts from Uptown Community Improvement Plan: 4.1.1. Once initiated, the duration of the programs will vary…All other programs in this CIP will have a duration of approximately 5 years (unless otherwise noted in the individual program), with the option for Council to extend the duration of any or all of these other programs by up to approximately 5 years. 4.8.1 Description - Uptown Waterloo is intensely developed, with many properties built at or close to their property line. This may limit the ability of property owners to satisfy the requirements of the Zoning By-law to provide additional parking in conjunction with floor area conversions and/or small expansions to existing buildings. This program is intended to provide parking exemptions to facilitate small scale building conversions and expansions that result in additional non-residential floor space in the Uptown Project Area. 4.8.2 Description- This program offers an exemption from the parking requirements of the Zoning By-law for small scale conversions (changes in use) and building expansions that result in additional non-residential floor space. 4.8.3 Program Requirements - Applicants are eligible to apply for this program, subject to meeting the general program requirements and the specific requirements set out below: a) Projects requiring a Building Permit in association with: i. the conversion (change in use) of up to 185 square metres (2,000 sq. ft.) to create new non-residential building floor area within an existing building; or ii. the expansion of an existing building (addition) by up to 185 square metres (2,000 sq. ft.) for non-residential floor area purposes; are considered eligible to apply under this program. b) The applicant will be required to submit a detailed parking analysis confirming that sufficient parking is available to address parking demand for the revised development, to the satisfaction of the City. Such analysis may give consideration to off-site parking opportunities, transportation demand management, visitor and delivery parking demands and parking management by owner, among other things. c) Pursuant to Section 40 of the Planning Act, the applicant will be required to enter into an Agreement in a form and with content satisfactory to the City to provide for an exemption from the provision of parking as required by the Zoning By-law, provided further that a nominal payment shall be required by the City of Waterloo as consideration for the granting of the exemption.
Finance & Strategic Planning Page 47 of 162 November 16, 2015 Committee Meeting 9 Chief Administrative Officer
Appendix B: Parking Exemption Request for 19 Regina Street
Date: October 20, 2015 Property Address: 19 Regina Street South Applicant: 2425955 Ontario Inc. Consultant: Carol Wiebe, MHBC Planning
Property Information (existing): • Gross building floor area: 1,875.16 square metres (20,184.05 square feet) • Existing parking spaces: 32 • Bike parking spaces: 0 • Heritage Status: Listed on Municipal Heritage Register as non-designated property
Proposed Addition / Conversion • Proposed building addition: 329.35 square metres (3,544.99 square feet) • Demolished Area: 253.32 square meters (2,726.71 square feet) • Total gross building floor area: 1,951.18.25 (21,002.32 square feet) • Proposed bike parking spaces: 36 • Proposed bike parking spaces: 5
Parking Analysis to Support Proposed Parking Exemption: • Proposed addition: used for stairwell and amenity space to support the conversion of Legion building into offices. The proposed addition is necessary for structural enhancements to the building and as additional amenity space required by future tenants. The proposed addition will not generate new employees however, the conversion of existing space will. The proposed addition represents 9% of the total building area. • CIP Program Criteria: The proposed addition is intended for an office building, and is less than the 185 square metre (2,000 square feet) criteria. • Parking Compliance: The proposed development, in total, would require 42 spaces. At present, the property has 32 parking spaces. Through site plan refinements, an additional 4 parking spaces can be introduced on the property increasing the parking supply to 36 spaces, four short of the parking requirement. The proposed reduction is considered minor. • Traffic Impact. The proposed building conversion generally complies with the City’s parking requirement for new office space (set at 2.15 space per 100 square metres). The propose addition is intended for a new stairwell and amenity space, and will not contribute to any new traffic demand. • Transportation Demand Considerations: New bike parking spaces are being proposed with the building conversion. The number may increase depending on the tenant requirements. The property is also located one block away from King Street, a major transit route and a short distance from a ION LRT Station located in Waterloo Town Square. The proposed conversion will be supported by the highest-order transit service in the City and Region. Future tenants are encouraged to enter into a Transportation Demand Management Plan with the Region of Waterloo. This will be explored in future.
Finance & Strategic Planning Page 48 of 162 November 16, 2015 Committee Meeting 10 Chief Administrative Officer
• Loading: The proposed conversion does not require a large loading facility. A small load area is proposed and integrated into the site plan as part of the conversion process. The site is able to meet day-to-day office needs. • Target Market: The building is proposed to be converted into a modern office building targeted to technology companies. This type of user, combined with their demographic, value urban office locations and demonstrated less demand for car ownership. The proposed office location is well positioned to attract this type of company and talent with access to many housing options nearby where people can live and work.
Conceptual Rendering of Building Renovation and Minor Expansion at 19 Regina Street South
Source: Rendering prepared by Robertson Simmons architects Inc. for Lexington Park Real Estate Capital Inc.
Finance & Strategic Planning Page 49 of 162 November 16, 2015 Committee Meeting 11 Chief Administrative Officer
Appendix C: Section 40 Parking Agreement
AGREEMENT EXEMPTING 19 REGINA STREET NORTH FROM PARKING REQUIREMENTS
THIS AGREEMENT made in triplicate this ______day of ______, 2015.
BETWEEN:
LEXINGTON PARK REAL ESTATE CAPITAL INC. (hereinafter the “Owner”)
- and -
THE CORPORATION OF THE CITY OF WATERLOO (hereinafter the “City”)
WHEREAS the Owner is the owner of the lands and premises in the City of Waterloo described in Schedule “A” attached hereto (the “Lands”);
AND WHEREAS the Lands are known municipally as 19 Regina Street North, and zoned Commercial Eight-25 in Zoning By-law 1108 (hereinafter “C8-25”);
AND WHEREAS the C8-25 zone requires the Owner to provide and maintain motor vehicle parking facilities in the manner and to the extent set out in Zoning By-law 1108, and requires the provision and maintenance of such parking facilities on the Lands to the extent of two-point-one-five (2.15) parking spaces for every one hundred square metres (100 sq.m.) of new building floor area exceeding the amount in existence on November 4, 1991;
AND WHEREAS the Owner is proposing an increase in gross building floor area on the Lands exceeding the amount in existence on November 4, 1991 by approximately 76.02 square metres (the “Expansion”) as part of the adaptive reuse and enlargement of the existing building for office purposes (the “Development”);
AND WHEREAS the Expansion requires six (6) motor vehicle parking spaces pursuant to the C8-25 zone;
Finance & Strategic Planning Page 50 of 162 November 16, 2015 Committee Meeting 12 Chief Administrative Officer
AND WHEREAS the Owner is unable to provide the six (6) motor vehicle parking spaces on the Lands, and requires relief from the parking requirements of the Zoning By-law to advance the Development;
AND WHEREAS the council of the City approved a Community Improvement Plan (the “CIP”) on August 10, 2015 to facilitate the reurbanization and revitalization of Uptown Waterloo;
AND WHEREAS the CIP includes a parking exemption program (the “Program”) to facilitate small scale building conversions (changes in use) and or expansions up to 185 square metres of non-residential floor space;
AND WHEREAS the Program applies where the developer is unable to provide the required parking for the small scale building conversion and or expansion on their lot pursuant to the Zoning By-law, and requires the preparation of: a.) a detailed parking analysis confirming that sufficient parking is available to meet the parking demands of the development, to the satisfaction of the City; and, b.) a parking exemption agreement pursuant to Section 40 of the Planning Act, R.S.O. 1990, c.P.13, as amended (the “Act”);
AND WHEREAS the Section 40 of the Act provides that the council of a municipality may enter into an agreement with the owner of a building to provide relief from the parking requirements of the zoning by-law to the extent set out in the agreement and subject to the terms and conditions set forth in the agreement including a requirement that the owner shall pay to the municipality a sum of money;
AND WHEREAS the Program indicates that a nominal payment is required as consideration for the City granting a parking exemption;
AND WHEREAS this is the parking exemption agreement required by the Program for the Expansion on the Lands (19 Regina Street North), and is authorized by Section 40 of the Planning Act, R.S.O. 1990, c.P.13, as amended;
AND WHEREAS the council of the City at its meeting held on November 16, 2015, by the adoption of the recommendations of Report CAO2015-020, has agreed to enter into this parking exemption agreement under the Program with the Owner on the terms, conditions and stipulations set forth herein;
NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements herein contained and the sum of Two Dollars ($2.00) of lawful money of Canada and other good and valuable consideration paid by each of the parties hereto to each of the other parties hereto (the receipt and sufficiency of which are hereby acknowledged), it is agreed between the parties hereto as follows:
Finance & Strategic Planning Page 51 of 162 November 16, 2015 Committee Meeting 13 Chief Administrative Officer
1. The City hereby exempts the Expansion as herein defined from the parking requirements of the Commercial Eight-25 (C8-25) zone of Zoning By-law 1108, provided further that:
a.) the Expansion does not exceed 185 square metres of building floor area;
b.) the Owner obtains municipal site plan approval for the Expansion prior to the issuance of a building permit; and,
c.) the Expansion is constructed and maintained in accordance with the approved site plan.
2. The parties acknowledge and agree that the exemption granted in Section 1 of this Agreement is for six (6) parking spaces.
3. The Owner agrees to manage parking on the Lands to meet owner, occupant and visitor demands, without reliance on municipal on-street parking.
4. The Owner agrees to pay Two Dollars and Fifty Cents ($2.50) for each of the four (4) parking spaces in Section 2 of this Agreement, to satisfy the nominal payment required of the Program. The Owner shall therefore pay Ten Canadian Dollars ($10.00) to the City.
5. The Owner agrees to pay all monies in Section 4 of this Agreement prior to the issuance of a building permit for the Expansion.
6. The Owner agrees that the parking exemption provided through this Agreement does not exempt or release the Owner from its obligation to comply with all other requirements of the Zoning By-law and all other applicable law.
7. The Owner agrees that this Agreement shall be registered by the City at the Owner’s expense against the title to the Lands.
8. All costs incurred by the City related to the preparation, processing and registration of this Agreement shall be borne by the Owner.
9. The Owner hereby indemnifies and saves harmless the City, its elected officials, officers, employees, solicitors, agents, and contractors from any and all costs, claims, demands, damages, fines, penalties, expenses, suits, actions, and judgments made, brought or recovered against the City arising out of this Agreement.
Finance & Strategic Planning Page 52 of 162 November 16, 2015 Committee Meeting 14 Chief Administrative Officer
10. This Agreement and everything contained in this Agreement shall respectively ensure to the benefit of and be binding upon the parties to this Agreement, their successors and assigns.
IN WITNESS WHEREOF the parties have hereunto affixed their respective corporate seals attested to by the hands of their respective authorized signing officers.
THE CORPORATION OF THE CITY OF WATERLOO
Per: ______D. Jaworsky, Mayor
Per: ______O. Smith, City Clerk
We have the authority to bind the Corporation.
LEXINGTON PARK REAL ESTATE CAPITAL INC.
Per: ______Name: ______Title: ______
I have the authority to bind the Corporation.
Schedule “A”
Legal Description of the Lands
Finance & Strategic Planning Page 53 of 162 November 16, 2015 Committee Meeting 15 Chief Administrative Officer
< to be inserted by Legal Services >, in the City of Waterloo, Regional Municipality of Waterloo
PIN: < to be inserted by Legal Services >
Municipally Known as: 19 Regina Street North
Finance & Strategic Planning Page 54 of 162 November 16, 2015 Committee Meeting 1 Chief Administrative Officer
STAFF REPORT Economic Development
Title: Waterloo Regional Tourism Marketing Corporation Funding for 2016-2020 Report Number: CAO2015-021 Author: Jillian Fleming Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: November 16, 2015 File: [File] Attachments: Evaluation of the Waterloo Regional Tourism Marketing Corporation Ward No.: City wide
Recommendation:
1. That Council approve CAO 2015-021.
2. That Council approves funding for the Waterloo Regional Tourism Marketing Corporation of $90,000/year for five additional years to continue this region wide shared services approach for Tourism.
A. Executive Summary The Waterloo Regional Tourism Marketing Corporation (WRTMC) has been funded by both municipal and private partners since its inception in 2007. WRMTC allows a coordinated approach to marketing Waterloo Region to outside visitors. The mandate of WMRTC is to market tourism opportunities in Waterloo Region to potential visitors from outside the region – encouraging more people to visit the area, to spend more, and to stay longer.
WRTMC successfully delivers products and services including the www.explorewaterlooregion.ca website, the Explore Waterloo Region Travel Guide, as well as initiating and supporting successful bids and events, and representing the region at trade shows and conferences.
It is recommended that council approve the continuation of funding for the Waterloo Regional Tourism Marketing Corporation for $90,000/year for five additional years (2016-2020).
Finance & Strategic Planning Page 55 of 162 November 16, 2015 Committee Meeting 2 Chief Administrative Officer
B. Financial Implications Currently, the City of Waterloo funds WRTMC $90,000/year from Economic development’s operating budget. This would continue for an additional five years for a total of $450,000 to fund the Waterloo Regional Tourism Marketing Corporation. The proposed 2016-2018 operating budget includes provision for this expenditure.
C. Technology Implications None
D. Legal Considerations Staff did not seek legal advice.
E. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)
Economic development – supporting the WRTMC meets the economic development goal in the strategic plan to position the city as a preferred location for sport tourism events, and the goal of promoting Waterloo to the world
Multi-modal transportation – WRTMC is helping to promote active transportation by delivering workshops to businesses on becoming bike-friendly
F. Previous Reports on this Topic CS-ED2011-060 – Waterloo Regional Tourism Marketing Corporation Evaluation
CORP/ED 07-023 – Waterloo Regional Tourism Marketing Corporation
G. Approvals
Name Signature Date
Author: Jillian Fleming
Director:
Commissioner:
Finance:
CAO
Finance & Strategic Planning Page 56 of 162 November 16, 2015 Committee Meeting 3 Chief Administrative Officer
Waterloo Regional Tourism Marketing Corporation Funding for 2016-2020 CAO2015-021
Evaluation of the Waterloo Regional Tourism Marketing Corporation (2011 – 2015)
In Support of Continued Funding of the Waterloo Regional Tourism Marketing Corporation
1.0 BACKGROUND Creation of WRTMC WRTMC was established in 2007 with funding provided by the Region of Waterloo, the Cities of Cambridge, Kitchener and Waterloo, the Townships of Wilmot, Woolwich, Wellesley and North Dumfries and private sector tourism businesses.
The initiative was undertaken when it was recognized that tourism was a significant industry in Waterloo Region and that Waterloo Region was lagging behind comparable municipalities such as London and Hamilton. There had previously been no central body to develop partnerships and participate in provincial initiatives – three cities and two townships were providing individual tourism-related services.
Coming together under one organization – a municipal, industry and community partnership allowed greater focus on marketing the area as a region and coordination of efforts across all tourism sectors.
Mandate and Mission Statement The mandate of WRTMC has been and continues to be to market tourism opportunities in Waterloo Region to potential visitors from outside the region – encouraging more people to visit the area, to spend more and to stay longer.
o Our mission is to increase visitors to the Waterloo Region by focusing resources on promoting the Region and its attractions to high-potential markets.
Focus The focus of WRTMC has been to build image and awareness of Waterloo Region through a variety of marketing activities undertaken in partnership with tourism industry members and RTO4 (Regional Tourism Organization 4).
Finance & Strategic Planning Page 57 of 162 November 16, 2015 Committee Meeting 4 Chief Administrative Officer
WRTMC’s focus has been to remain abreast of the rapidly changing market by conducting research and continuing to adjust our strategies to ensure that WRTMC is relevant and offering value to our members and stakeholders. Our efforts in the market have focused on undertaking co-operative marketing programs with our partners, direct sales at industry trade shows and conferences, creation and distribution of visitor information in print and digital format and working with the media to build image and awareness of the Waterloo Region.
Visitor Services continues to be supported by WRTMC through the provision of the Explore Waterloo Region annual travel guide publication, however the Visitor Centres continue to be operated and funded by local municipalities. They offer a core level of services including literature distribution and over-the-counter counseling. WRTMC is exploring new applications to reach visitors digitally with information (web, mobile etc) while they are in the Region. This is an opportunity to encourage visitors to stay longer and to offer an incentive for them to return for a future visit.
Governance WRTMC was incorporated as a not-for-profit membership based organization governed by a Board of Directors. The Board of Directors has 14 seats – eight tourism industry members (representative of each of 5 tourism industry sectors and geographically from across Waterloo Region) and six ex-officio members representing the Region of Waterloo and area municipalities (CAO or designate of the Region, Cambridge, Kitchener, Waterloo, Wilmot and Woolwich).
The current (2015) Board of Directors are; Vanessa Stevenson, Homewood Suites by Hilton – President David Brenneman, CAO, Township of Woolwich – Vice President Tim Anderson, CAO, City of Waterloo – Treasurer Lucille Bish, Director of Community Services, Region of Waterloo Bob Harris, Chicopee Tube Park Shuker Ismail, General Manager, Homewood Suites St. Jacobs Steven Karcher, Executive Director, Drayton Entertainment Kent McVittie, Commissioner of Community Services, City of Cambridge Salim Mukadam, General Manager, Holiday Inn Kitchener Jenny Shantz, St. Jacobs Country Paul Sutton, Operations Manager, Palm Holdings Grant Whittington, CAO, Township of Wilmot Jeff Willmer, CAO, City of Kitchener
2.0 IMPORTANCE OF TOURISM TO THE ECONOMY Ontario Economic Contribution ∗ In 2012, tourism totaled an estimated $28 billion in receipts – more than the agriculture, forestry and mining industries combined.
Finance & Strategic Planning Page 58 of 162 November 16, 2015 Committee Meeting 5 Chief Administrative Officer
∗ Tourism currently represents over 149,000 businesses, employs more than 359,000 people and is responsible for 4% of Ontario’s GDP. ∗ There were 142 million visits to Ontario in 2012 – expected to grow to 156 million by 2017. ∗ The Ontario Ministry of Tourism, Culture and Sport reports visitation in 2012 as 11.5 million, with almost 3 million staying overnight, 8.5 million are making day visits. ∗ 2.8 million visit for leisure ∗ 1.3 million visit for business ∗ Total visitor spend is $1.1 billion, $800k of that spent by visitors from Ontario. ∗ The economic impact of events on Waterloo Region is substantial; ∗ TD Kitchener Blues Fest - $3.8 million (2013 number) ∗ Oktoberfest - $21 million (2013 number) ∗ Big Music Fest - $7 million (2014 number) ∗ ON Volleyball Championships - $4.2 million (2011 number) ∗ LPGA - $20 million (per year est.)
3.0 ACCOMPLISHMENTS OF WRTMC (IN THE LAST 4 YEARS) Success to Date Since 2013, WRTMC has increased the number of unique visitors to our website by over 40%. This is primarily thanks to an upgrade to the site itself, increase in social media promotion and a call to action on all promotional materials to our website. We continue to see growth from both inside and outside the region and our partners are enjoying referral visitation to their sites at a higher degree.
WRTMC began tracking the number of leads and room night business generated for hotel partners from meetings and sport business in 2014. Since that time, we have booked 19 sporting events and 20 corporate meetings representing almost 30,000 room nights.
Waterloo has been the location for the OVA Provincial Championships since 2008 and every two or three years we have to bid for future years. Working in partnership with the City of Waterloo, we have supported the bids for the 2015 – 2016 and 2017 – 2018 events. We have successfully isecured the business for 2015 – 2018. This tournament has grown exponentially – increasing the economic impact from $4.2 million in 2011 to $6.7 in 2015.
We have learned that it is important to pursue new business, but it is even more critical to maintain the business that we have. As a result, we are working with our partners to ensure the return of Canadian Cheer (The Aud, Kitchener), Watchtower (The Aud, Kitchener), Home Hardware (St. Jacobs) on an annual or semi-annual basis. Sadly we were unable to convince Skills ON to stay, but this was a result of tremendous growth which no longer could be accommodated in Waterloo Region.
We continue our work in attracting media attention as we have since the inception of WRTMC. Since 2011, we have leveraged over 39 million media impressions at an estimated value of $4.5
Finance & Strategic Planning Page 59 of 162 November 16, 2015 Committee Meeting 6 Chief Administrative Officer
million. This activity has been achieved through efforts with travel media – meeting them at conferences and inviting them to Waterloo Region to visit and write about their experiences. In October 2014 we welcomed CTV’s Canada AM to the St. Jacobs Farmers’ Market for a 3 hour live broadcast that was seen across Canada. Partners in this venture were the Ontario Tourism Marketing Partnership and RTO4. This coverage was valued at $293,000.
4.0 FINANCIAL ANALYSIS
Revenues – Industry participation Year Public Private Total Revenue % Public Sector Sector Sector support funding funding 2011 $595,500 $258,772 $854,272 70% 2012 $572,400 $287,987 $860,387 66% 2013 $597,250 $197,266 $794,111 75% 2014 $605,150 $257,809 $862,959 70% 2015 $605,150 $269,000 $874,150 69% (Budget)
WRTMC spending on outbound activities accounts for approximately 60% of our budget. WRTMC receives 30% of revenues (based on 2014) from private sector partners. In order to grow this contribution by any significant amount, we will need to implement a destination marketing program (DMP or DMF – destination marketing fee) in Waterloo Region. The implementation of a DMP has been considered by local hotel and attraction partners for the past several years, but has yet to gain significant support. The Waterloo Region Hotel Association members are continuing discussions amongst hotel owner and managers but there is not yet a plan in place to move forward.
Implementation of such a program would add approximately $700,000 to our bottom line and allow us to compete on a more even playing field with neighbouring DMOs with a DMP in place (London is very close to implementing and Stratford has had a DMP in place for over 3 years). This would improve the portion of private sector support of total revenue.
Local political support for the implementation of a DMP would help to move the process ahead. A meeting between political leaders and hotel and attraction ownership representatives to discuss the benefits of a DMP and how incremental funds could be invested to increase business with the continued support from public sector partners is an option that is recommended.
5.0 GOING FORWARD Destination Marketing Organizations shift focus
Finance & Strategic Planning Page 60 of 162 November 16, 2015 Committee Meeting 7 Chief Administrative Officer
As the world around us is changing, so must our DMO model. The new recognized edition is a DMMO (Destination Marketing and Management Organization). For DMOs, this transition means becoming a destination management organization instead of just a destination marketing organization. In this regard, DMOs are becoming more prominent as "destination developers" by acting as catalysts and facilitators for the realization of tourism developments. The role of WRTMC is not simply as a destination marketing organization. In order to develop and support a brand for Waterloo Region, we need to ensure that we can help our partners deliver an outstanding visitor experience. Examples include, but are not limited to; • Work with RTO4, RTO3 and RTO1 to identify, develop and improve facilities on the Grand River and further develop this natural asset as a tourism destination; • Work with Grand Experiences and St. Jacobs to develop an Ontario Signature Experience cycling product in Mennonite Country; • Collaborate with the Region of Waterloo, the Cities of Cambridge, Kitchener and Waterloo and the Townships of Woolwich and Wilmot to build a cycling strategy for the region tying together events (Tour de Waterloo, Grand, Steaming Nostril etc.), attractions (Grand River Trail, Hydrocut and Guelph to Goderich Trail) and recreational cycling.
In order to fund our efforts, sustainable renewable resources need to be in place. Continued partnership with RTO4 will help, but we will need to engage our municipalities and communities too.
The cycling project is an excellent example. - Municipal support for signage, road repairs or closures for events are already part of the Transportation Master Plans in several jurisdictions. - A cycling map of the Region is being created and printed through the cooperation of the municipal partners - WRTMC has partnered with Transportation Options/Ontario by Bike to deliver workshops in the Region on becoming a ‘bike friendly’ business and to date 13 businesses have been certified. More to come. - A working group of recreational cycling enthusiasts, municipal and regional staff, Active Transportation Advisory Group members and WRTMC has been formed to collaborate on cycling initiatives for both visitors and residents of Waterloo Region. - A cohesive plan for this market should be implemented across all partner municipalities.
Strategic Plan Updates WRTMC objectives set the foundation for the updated Strategic Plan and some of these remain unchanged since our last iteration of the plan. Action priorities and performance measures have been updated based on strategic planning sessions held with the WRTMC Board of Directors and two stakeholder meetings held in 2014.
During our sessions, we identified the strengths, weaknesses, opportunities and threats to WRTMC in a traditional workshop session. Once identified, we were able to determine our
Finance & Strategic Planning Page 61 of 162 November 16, 2015 Committee Meeting 8 Chief Administrative Officer objectives based on the activities that WRTMC is capable of influencing or have contingencies for and plan our strategy.
The objectives are: • Create a business model for the Corporation that can be sustained over time and grow private sector contribution to match municipal support; • Establish WRTMC as the authoritative source in Waterloo Region for tourism marketing; • Focus on establishing and enhancing the brand for Waterloo Region in partnership with WREDC, the Region of Waterloo and municipal partners; • Capitalize on social media and smart technology to engage and access residents, industry and markets.
Specific Action Priorities are derived from each of the above objectives and provide a ‘menu’ of actionable work from which an annual operational and marketing plan is built.
Marketing Plan The WRTMC Marketing Plan is developed in partnership with key partners (RTO4 and OTMPC) and members while at the same time aligning efforts with market research available to us through a number of sources.
We have determined that our key target markets include sport, meetings and conferences, travel trade and leisure. Our focus on sport and partnership with RTO4 and the City of Guelph in the market are relatively new although the Cities of Kitchener and Waterloo have long recognized our opportunities in this area. Our target is primarily Ontario minor sport, although we have seen some success in attracting larger events (Volleyball Canada) through our relationships with Ontario sport groups. We plan to intensify our efforts in this segment in the upcoming years because we can measure our success and we have the infrastructure that can support and attract this market.
Corporate meetings and conferences are again a target for WRTMC. We have several hotels and unique venues that make Waterloo Region a suitable choice for hosting Ontario based group events. We are targeting Ontario based associations and Waterloo Region based corporations in an effort to secure more of this business. Again, this is measurable and we intend to increase our joint efforts with our partners in this area.
Waterloo Region has long been a ‘stop’ for tour bus traffic enroute to Stratford or Niagara Falls. We are working with our partners to extend the stay of these tour operators by showing them the wealth of attractions on offer. We are beginning to see the fruits of our labour and will continue to pursue tour operators based in Ontario, Quebec and beyond.
In the leisure market, we have shifted our focus to using our strength to attract visitors to extend their stay in our region. We are known for festivals and events and we are using this awareness to attract visitors. We continue to pursue the family and couples segments
Finance & Strategic Planning Page 62 of 162 November 16, 2015 Committee Meeting 9 Chief Administrative Officer
throughout the year, but are more targeted in our approach. Social media (Facebook, Instagram, Twitter and blogs) makes it much less expensive to target potential visitors and we continue to grow our efforts to reach these groups.
ExploreWR.ca Website The astronomic growth of connectivity by our target markets and the world in general has necessitated continuous upgrading and tweaking to our website. In the next four months, we will initiate another major overhaul to the site making it mobile friendly and responsive as well as adding more video and content. We recognize that ExploreWR.ca is one of our most important tools in marketing Waterloo Region and our team is focusing on keeping it current and relevant.
Explore Waterloo Region Travel Guide Although the demand for printed material has diminished significantly (WRTMC produced 120,000 travel guides in 2013 and plan to reduce production to 30,000 for 2016), the annual travel guide remains an important tool that is requested by individual visitors, conference and sporting groups throughout the year. We plan to continue to print and distribute the guide for the foreseeable future while keeping an eye on demand to ensure our investment in production is well spent.
Each city and township within Waterloo Region is profiled in the travel guide annually. The cover is dedicated to a significant anniversary or event (2014 was the 20th anniversary of the Grand River’s designation as a Heritage River, 2015 was the 15th anniversary of the TD Kitchener Blues Festival). In addition to that, WRTMC tries to ensure that each community is equally represented on the cover.
6.0 ADVANTAGES OF A REGION-WIDE DMO One of the compelling reasons for creating a Regional DMO in 2007 was that our partners recognized that there were "no borders" when it comes to tourism. Out-of- towners don't know and don't care if they have crossed from Cambridge into Kitchener, but what they do care about is, "is there enough to do in this localized vicinity to keep me here overnight?" From the tourist's perspective, as well as from a marketing perspective, promoting the Region as a whole rather than each municipality on its own is ultimately about marketing. It is a more convincing story. Period.
- Annual Travel Guide Prior to the creation of WRTMC, each municipality and several townships created their own visitor guide. The Explore Waterloo Region Travel Guide, which is produced on an annual basis has taken the place of the smaller publications and saved both staff time and money for partners. - Trade Shows & Conference Representation WRTMC collaborates with our partners to represent Waterloo Region at tourism related events targeting meetings, conference travel trade, media and sport business. Taking
Finance & Strategic Planning Page 63 of 162 November 16, 2015 Committee Meeting 10 Chief Administrative Officer
the lead and ensuring continued presence under one banner helps to eliminate brand confusion in the marketplace and save time and money for our partners. - Sport Tourism The partnership with RTO4 and the City of Guelph has allowed WRTMC to represent the region as a single destination for the first time. In a market that in the past had been pursued by the Cities of Kitchener and Waterloo and hotel partners independently, a cohesive representation not only saves staff time and resources, but also reduces confusion in the market for our destination. This partnership has been in the discussion stages since the Cities of Waterloo and Kitchener jointly funded a study on the best ways to approach the sport market in 2008. Finally, we have a partnership to reach this critical market that allows us to compete more effectively with neighbouring communities in Ontario. Although we have only recently created this partnership, we have already seen a number of events confirmed for Waterloo Region including Mudderella (the first in Canada and returning in 2016), Cdn Fencing University Cup Championships, ON Pickleball Championships and the Eastern National Pickleball Championships. Working together with our neighbouring communities makes it possible for us to bid for larger sport events – even as large as Canada Summer Games. - Special Events Bidding on and hosting large events would be very difficult or even impossible without a regional organization. There are a number of special events that Waterloo Region is capable of hosting – all we need is buy in from partners, some sponsorship and a region-wide coordinating body to pull together the bid. Think of Memorial Cup, the Juno Awards, Canadian Country Music Awards. Events of this magnitude bring business to the Region and raise our profile across Canada. - Site and Fam visits As a single organisation representing all of Waterloo Region, the staff is able to cross borders seamlessly between municipalities when potential clients or media visit.
2011 – 2015 Initiatives & Partnerships We have worked hard to develop and grow relationships with organizations both in and out of Waterloo Region in order to grow visitation. WRTMC has a limited budget and small team, so leveraging our efforts allows us to do more with less.
Current and future partnerships include; -Communitech We want to grow ‘tech tourism’ in our Region building on the recognized success of Waterloo Region with Blackberry, Open Text, Sandvine, Google and more. We are working with Communitech to further develop ideas for opening the doors to visitors for this industry. - CTT and WREDC Working synergistically, we can grow the brand of Waterloo Region, further develop the region as an attractive destination to visit, live, learn and do business. Although our
Finance & Strategic Planning Page 64 of 162 November 16, 2015 Committee Meeting 11 Chief Administrative Officer
goals are different, they do align and we need to ensure that we are working together to deliver the same brand message to our target markets. -Creative Enterprise Initiative (CEI) The development of arts and culture product not only attracts visitors to the region but also raises the quality of life for residents. Further collaboration and integration with CEI will enhance our ability to attract visitors. Visitor spending helps support a broader and higher quality set of local amenities than an area could otherwise sustain. The cultural, entertainment, culinary, and retail attractions that visitors support make a place more attractive to investors.1
Working with CEI, we can take these products (including festivals) to market. This partnership must be nurtured and grown – if we are able to help budding artists to be operationally and financially stable, we will have a community that can attract not only visitors, but also residents and businesses. There is tremendous potential is this partnership that is as of yet untapped.
-RTO4 RTOs were created by the Ontario government in 2009 to be a conduit for DMOs to work with the OTMPC (ON Tourism Marketing Partnership Corp). And OTMPC prefers working with DMOs that represent more than one entity. WRTMC has worked to develop a partnership with RTO4 and we intend to continue to work with them in areas that serve to grow our DMO and business to Waterloo Region. The RSTO (Regional Sport Tourism Office) is a great example of cooperation across the region and will continue.
- Municipal BIAs We have worked with these groups in the past, but we want to further develop and nourish the relationships to engage smaller businesses to recognize and benefit from tourism traffic.
- Universities and Conestoga College The sport initiative has opened doors with our university partners and we continue to explore ways to capitalize on the visiting parents and families as well as the meetings opportunities that exist through the many academic based organizations connects through faculty and staff.
7.0 CONCLUSION High performing organization; meeting needs of municipalities and tourism industry; tourism partners value the organization; revenues are growing
October 9, 2015i
1 Destination Promotion: An Engine of Economic Development (DMAI 2015)
Finance & Strategic Planning Page 65 of 162 November 16, 2015 Committee Meeting 1 Chief Administrative Officer
STAFF REPORT Economic Development
Title: West Side Employment Lands 2015 Funding Approval Report Number: CAO2015-022 Author: Justin McFadden and Nancy Gehl Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: November 16, 2015 File: West Side Employment Lands Attachments: None Ward No.: 1
Recommendation: 1. That Council approve CAO2015-022. 2. That Council approves the 2015 capital funding for engineering and planning studies for the West Side Employment Lands in the amount of $204,000 funded from the Industrial Land Account (ILA) (2015 Capital Budget ref#106).
A. Executive Summary
The City currently owns lands on the west side of Waterloo located in the vicinity of Erb Street West to the south and Wilmot Line to the west. These lands are currently zoned agricultural however are designated in the City of Waterloo Official Plan as future employment. After having concluded the Rice Group Land Exchange Agreement in 2014, the city currently owns approximately 111 acres of contiguous land in this area, including property currently leased by the Waterloo Golf Academy through December 31, 2017.
As the City’s future employment land inventory is limited to roughly 150 acres (small compared to most other municipalities of similar size), with all but 25 acres currently un- serviced, it is strategically important to deliver a stable flow of available employment lands to ensure that opportunities for job growth can be achieved now and into the future. Unlike traditional land purchases, Council approved funding to purchase the City’s employment land inventory from the anticipated revenue to be received on the future sale of the land. Bringing these lands to a usable state and selling them to enable employment uses will fulfill the goals of this original investment.
Finance & Strategic Planning Page 66 of 162 November 16, 2015 Committee Meeting 2 Chief Administrative Officer
The City-owned Employment Land Strategy recommends the completion of a Master Plan, geotechnical, environmental and other technical studies, in addition to a Draft Plan of Subdivision and possible servicing in order to bring these lands to market. The purpose of this report is to request Council’s approval of $204,000 in funding contained within 2015 Capital Budget ILA to begin these works.
B. Financial Implications
The 2015 Capital Budget, 2016-2024 Capital Forecast includes $17,635,800 for the project to bring the West Side Employment Lands to market (reference line #106). The 2015 Capital Budget includes $204,000 (reference line #106) to facilitate the creation of a Master Plan, geotechnical, environmental and other technical studies, in addition to a Draft Plan of Subdivision and possible servicing in order to bring these lands to market.
The purpose of this report is to request Council’s approval of the 2015 Capital Budget funding of $204,000. The remaining funding as identified in the 2016-2024 Capital Forecast will be utilized for continued implementation of the project. Requests for the release of additional funding to proceed beyond the proposed scope of the work will be submitted through the 2016-2018 budget process.
C. Technology Implications
There are no technological implications with respect to this report.
D. Legal Considerations
Staff did not seek legal advice.
E. Link to Strategic Plan/Economic Vitality (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)
Economic Development (develop west side and east side employment lands)
F. Previous Reports on this Topic
CS-ED2010-17 City-Owned Employment Land Strategies CS-ED2010-035 West Side Lands Hergott Cider Mill & Products CORP2013-033 Demolition of City-Owned Buildings Located at 928 Erb Street West (former Hergott Apple Farm)
Finance & Strategic Planning Page 67 of 162 November 16, 2015 Committee Meeting 3 Chief Administrative Officer
G. Approvals
Name Signature Date
Author: Justin McFadden
Author: Nancy Gehl
Director:
Commissioner:
Finance: Cassandra Pacey
CAO
Finance & Strategic Planning Page 68 of 162 November 16, 2015 Committee Meeting 1 Integrated Planning & Public Works
STAFF REPORT Engineering Services
Title: Region of Waterloo Spurline Trail – 2015 Funds release Report Number: IPPW2015-101 Author: John Griffin Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: November 16, 2015 File: Spurline Trail Attachments: Attachment ‘A’ - Reference Map Ward No.: Uptown Ward 7
Recommendation:
1. That IPPW2015-101 be approved;
2. That capital funding for the Spurline Trail in the amount of $546,000, funded from the stormwater utility reserve, be approved as per the 2015 Approved Capital Budget ref #891.
A. Report In collaboration with the Region of Waterloo and Metrolinx, the City of Waterloo is contributing funds in the amount of $1.55 million dollars to improve our storm sewer infrastructure within the Region of Waterloo spurline rail corridor between Union Street and Roger Street. The Region of Waterloo is finishing construction on the trail which commenced earlier this year. The limits of construction are depicted on the reference map in Attachment ‘A’.
On September 8th 2014 Council approved IPPW2014-109 which committed the City of Waterloo to pay $1.55 million for stormwater infrastructure (to be paid over 2015, 2016, and 2017). The purpose of this report is to release the 2015 portion of funding identified in staff report IPPW2014-109.
Finance & Strategic Planning Page 69 of 162 November 16, 2015 Committee Meeting 2 Integrated Planning & Public Works
B. Financial Implications Funds in the amount of $546,000 from the stormwater utility reserve are approved in the current 2015 capital budget as per ref #891. Staff are seeking Council approval to release these funds to pay for the City’s share of construction that has occurred on the project this year.
C. Technology Implications N/A D. Legal Considerations N/A E. Link to Strategic Plan Multi-modal Transportation The Region of Waterloo spurline trail project makes a key off-road trail linkage between the City of Waterloo Uptown and the Kitchener GO Station, expanding our active transportation network, and enhancing active connectivity to LRT stations and other high priority active transportation routes. Infrastructure renewal Upgrading the storm sewer infrastructure in the spurline corridor between Union and Roger St. ensures flood mitigation through the corridor and fixed an aging piece of infrastructure in Waterloo. Strong Community The Spurline Trail project is an example of supportive community wellbeing through active living
F. Previous Reports on this Topic
IPPW2014-109 Spurline Trail Agreement PWS2012-034 2012-2014 Active Transportation Program
Finance & Strategic Planning Page 70 of 162 November 16, 2015 Committee Meeting 3 Integrated Planning & Public Works
G. Approvals Name Signature Date
Author: John Griffin
Director: Ron Ormson
Commissioner: Cameron Rapp
Finance: Michael Pugliese
CAO
Finance & Strategic Planning Page 71 of 162 November 16, 2015 Committee Meeting 4 Integrated Planning & Public Works
Attachment ‘A’ - Project Area Map
Finance & Strategic Planning Page 72 of 162 November 16, 2015 Committee Meeting 1 Corporate Services 2015
STAFF REPORT Accounting
Title: 2015 Surplus Projection Report Number: CORP2015-108 Author: Paul Hettinga Meeting Type: Council Meeting Council/Committee Date: November 16, 2015 File: N/A Attachments: N/A Ward No.: All
Recommendation:
1. That Council receives CORP2015-108 as information
A. Executive Summary
This is the year-end projection for 2015 and was delivered to Audit Committee on November 5, 2015
Appendix A shows a preliminary projection for the 2015 Operating Budget by Department.
The projection of year-end results is an ongoing process within the management framework of the City. As with any projection, this forecast is subject to some degree of accuracy. These projections are based on results to August with updates for significant events during the month of September. Staff are monitoring activities and takes appropriate action in their Divisions on a monthly basis and will continue to perform this management task.
The City is anticipating a surplus in the tax based operating budget of approximately $614,000 or less than 1% of the city’s approved budgeted tax funded expenditures. The Operational departments are forecasting a deficit of $192,000. Corporate Transactions are projected to have a surplus of $806,000 due to a large number of corporate items both revenue and expense related. However, the surplus could fluctuate in either direction by $500,000 due to unforeseen events in the final months of the year.
Finance & Strategic Planning Page 73 of 162 November 16, 2015 Committee Meeting 2 Corporate Services 2015
The most notable of the surplus generating items are penalties and interest income and supplementary taxes. Material offsetting deficit items are engineering revenue, facility rental discounts, software maintenance contracts and tax adjustments and refunds.
The enterprise and other items are anticipated to increase contributions to reserves or decrease draws from reserves in excess of budget to the net amount of $4,244,657 from operations. These items are not included in the tax based surplus total of $614,000.
Sustainable surplus/deficit items have been incorporated in the proposed 2016 budget.
At this time, municipalities still prepare their annual budgets to determine the tax levy on a traditional fund accounting approach. This approach expenses contributions to Reserves and Reserve funds, but does not include amortization expenses. If amortization expenses exceed annual reserve contributions, an operating surplus according to traditional fund accounting can get transformed into an operating deficit.
Future Reporting Implications:
Please note that this is an interim surplus projection; once a final number is calculated in early 2016, a report will tabled before Council to discuss allocation and uses of the surplus as governed by Council’s Surplus Allocation Policy approved in April 2012, FS2012-24
1) that the required amount of the final reported surplus be allocated to the reserves and reserve funds as requested in the annual Reserve and Reserve Fund Report. 2) that an annual amount of $200,000 be allocated to the RIMPK Investment Reserve. 3) that 50% of the remaining reported surplus will be allocated to the Tax Rate Stabilization Reserve for future one time expenditures; 4) that 25% of the remaining reported surplus will be allocated to the Capital Infrastructure Reinvestment Reserve. 5) that 25% of the remaining reported surplus will be allocated to the Economic Development Reserve. 6) no use or allocation of the surplus shall occur until the final surplus is reported to Council by staff.
B. Financial Implications Further strengthening of Reserve levels
C. Technology Implications n/a
Finance & Strategic Planning Page 74 of 162 November 16, 2015 Committee Meeting 3 Corporate Services 2015
D. Legal Considerations Staff did not seek legal advice
E. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)
Corporate Excellence
F. Previous Reports on this Topic
FS2012-24 Allocation of Surplus Policy, FS2014-044 2013 Surplus Allocation, CORP2015-029 Surplus Allocation, CORP2015-063 Update of Significant Budget Variances
G. Approvals
Name Signature Date
Author:
Director: Paul Hettinga
Commissioner: Keshwer Patel
Finance: Keshwer Patel
CAO
Finance & Strategic Planning Page 75 of 162 November 16, 2015 Committee Meeting 4 Corporate Services 2015
2015 Surplus Projection CORP2015-029 Table 1
CITY OF WATERLOO - TAX ONLY
ACTUALS VS. BUDGET REPORT
For the Period Ending September 30,2015
a b c = a+b d e=c+d f g h=f+g i j=h+i DEPARTMENTAL ESTIMATE
REVENUE EXPENSE NET EXPENSES TRANSFERS IN TRANSFERS TRANSFERS TO VARIANCE VARIANCE VARIANCE EXCESS OF TO (FROM) NET EXPENSES (FROM) NET BUDGET BEFORE BEFORE BEFORE BUDGET RESERVES/ AFTER RESERVES/ AFTER RESERVES/ RESERVES / RESERVE TO/(FROM) NET SURPLUS/ REVENUE EXPENSES NET EXPENSES SURPLUS TRANSFERS REVENUE EXPENSES NET EXPENSES SURPLUS TRANSFERS SURPLUS SURPLUS TRANSFERS RESERVES (DEFICIT) Projected for Projected for Projected for Projected for Actuals YTD Actuals YTD Actuals YTD Actuals YTD Actuals YTD Full Year Budget Full Year Budget Full Year Budget Full Year Budget Full Year Budget Year Year Year Year Projected for Year
2015-09-30 2015-09-30 2015-09-30 2015-09-30 2015-09-30 2015 2015 2015-09-30 2015 2015
COW Departments Summary TRAN-Corp Transaction Summary (15,719,136) 14,718,980 (1,000,156) 9,372,092 8,371,936 (19,807,556) 15,731,265 (4,076,291) 9,416,017 5,339,726 2,568,926 (532,362) 2,036,564 1,230,587 805,977 COMM-Community Dept Summary (9,857,587) 31,444,699 21,587,112 (917,407) 20,669,705 (12,706,173) 42,685,278 29,979,105 (1,051,947) 28,927,158 (117,833) 90,690 (27,143) (27,143) CAO-Department Summary (148,574) 1,548,026 1,399,452 (145,238) 1,254,214 (79,370) 2,314,175 2,234,805 (231,884) 2,002,921 0 0 0 0 0 IPPW-Department Summary (3,819,283) 9,800,933 5,981,650 142,600 6,124,250 (4,629,039) 13,417,017 8,787,978 (53,850) 8,734,128 (165,294) 32,797 (132,497) (87,000) (45,497) CORP-Corporate Dept Summary (3,554,723) 16,365,718 12,810,995 117,924 12,928,919 (4,589,912) 22,834,297 18,244,385 (315,908) 17,928,477 107,072 (226,166) (119,094) (119,094) COW Departments Summary (33,099,303) 73,878,356 40,779,052 8,569,972 49,349,024 (41,812,050) 96,982,031 55,169,981 7,762,428 62,932,409 2,392,871 (635,041) 1,757,830 1,143,587 614,243
Favourable variances are positive, unfavourable variances are negative
The above table summarizes the year to date tax based revenues and expenditures, for each department.
Finance & Strategic Planning Page 76 of 162 November 16, 2015 Committee Meeting 5 Corporate Services 2015
Property tax supported
1. Corporate Transactions is anticipating to meet or exceed the 2015 budget targets overall for this area by $805,977.
a. Penalties and Interest revenue are tracking to exceed budget targets by $502,446 based on current and previous year’s activity. This item was increased by $200,000 in the 2015 budget. b. A surplus of $738,802 from supplementary taxes is anticipated due to new properties coming on the assessment roll after the final tax roll for 2015 was set. The timing of assessments by MPAC as well as economic conditions impacts the actual results for supplementary taxes. The 2015 budget for supplementary taxes was adjusted by $250,000 to $1,250,000 for 2015, which was considered sustainable. Current weighted assessment growth has yielded $1,017,171 or 1.62% assessment growth for 2015 as of October 26, 2015, which is in excess of the target of 1.59% assessment growth which has been used for the 2016 Budget. c. A deficit of $454,000 in tax adjustments and refunds is expected due to changes in assessment (resulting from appeals or changes in use). The most significant items relate to one-time adjustment with respect to properties that are now tax exempt due to change in use and ownership transfer. This deficit is not expected to reoccur in 2016. d. A net surplus of $18,729 is anticipated from other expenditure and revenue items such as retroactive benefit savings of $206,000 offset by deficits for various expenditure items.
2. Community Services is projecting a deficit of $27,143 for 2015 due to expenditure variances in Fire Services, Facility Rental Discounts and Fleet Usage.
a. Facility Rental Discount in the Community Programming & Outreach division is currently tracking to exceed budget by greater than $108,951 on a budget of $1.9 million. A budget request referencing potential policy amendments to better manage process will be submitted as part of the 2016-2018 budget process. b. Fire Services is anticipating Staffing related expenditures to exceed budget in 2015 by $139,384. Other cost containment measures were taken which mitigated this deficit and overall the division is anticipating a small surplus of $10,349.
Finance & Strategic Planning Page 77 of 162 November 16, 2015 Committee Meeting 6 Corporate Services 2015
c. Municipal Enforcement is currently tracking to fall short of revenue targets due to staffing vacancies by $120,000. This amount is mitigated by the savings from staffing vacancies of $111,792. d. City Fleet and Equipment Usage, within Environment and Parks, is anticipated to be in a deficit position of $249,973. Other cost containment measures were taken which mitigated this deficit and overall the division is anticipating a small surplus of $46,363. The most significant of these cost containment measures relates to a surplus of $230,814 from full time wages due to redeployment of resources to other areas of the corporation, such as winter control. e. A net surplus of $33,304 is anticipated from various expenditure and revenue items.
3. The CAO department (which includes the Economic Development Division) is not anticipated to vary from budget in a material way.
4. Integrated Planning and Public Works is projecting a deficit of $45,497 for 2015. a. Subdivision Engineering Revenue is anticipating a shortfall of $196,779 due to delays in some expected approvals. b. Other Planning revenue is anticipating a surplus of $118,245 due to increased activity in 2015. c. A net surplus of $33,037 is anticipated from various expenditure and revenue items.
5. Corporate Services is anticipated to experience a negative budget variance of $119,094. a. The 2015 budget for Electricity, gas and water expenses included an increase of $733,000. This expenditure is likely to generate a surplus of $143,849 due to $105,000 in savings in hydro use by replacing dehumidification equipment and ice controls at RIM Park as well as decreases in natural gas rates and usage. These savings will be incorporated into the 2016-2018 Budget efficiencies. b. Security expenses are anticipated to fall below budget by $135,235 due to security contract beginning part way through the year. It is not anticipated that this will be an ongoing surplus item. c. City Hall common area maintenance costs are anticipated to exceed budget by $51,123 due to costs related to vacant space. This amount has been reduced by a draw from the Commercial Property Vacancy Reserve. A budget request will come forward regarding this pressure as part of 2016-2018 budget process. d. The city created the Legal Services division in 2014 and is in the process of phasing in the funding for the division over the 2016-2018 budgets. A $173,000 adjustment has been included in the 2015 budget and the balance of the funding will be included in the upcoming budget deliberations. It is anticipated that legal services will be in a deficit position of $40,787 for 2015.
Finance & Strategic Planning Page 78 of 162 November 16, 2015 Committee Meeting 7 Corporate Services 2015
e. Software Maintenance Contracts costs are anticipated to exceed budget by $123,415 for 2015 due to increasing rates charged by major software vendors. A budget request will come forward regarding this pressure as part of 2016-2018 budget process. f. A net deficit of $182,853 is anticipated from other items in the Corporate Services Department. $69,000 is due to increased staffing costs in the facility and fleet division. These costs were due to unforeseen circumstances and are not anticipated to reoccur in 2016. In addition, this division has experienced a $30,000 deficit across maintenance, mechanical and electrical programs. These overages were also due to unforeseen circumstances but necessary to ensure maximum public safety at City facilities. The remaining deficit is due to various administrative expenditure and revenue items across the entire department. The most significant of these items are postage, advertising revenue and photocopying costs. These deficit items were partially mitigated within each division with reductions and surpluses in other areas. It is not anticipated that these items will produce a deficit in the future due to budget realigning and revised business processes.
Finance & Strategic Planning Page 79 of 162 November 16, 2015 Committee Meeting 8 Corporate Services 2015
Table 2
CITY OF WATERLOO - ENTERPRISES FUNDED ACTUALS VS. BUDGET REPORT For the Period Ending September 30,2015
a b c = a+b d e=c+d f g h = f+g i j=h+i DEPARTMENT ESTIMATE
NET REVENUE REVENUE EXPENSE TRANSFERS IN TRANSFERS OVER TRANSFERS TO VARIANCE VARIANCE EXCESS OF NET REVENUE TO (FROM) EXPENSES NET REVENUE (FROM) NET BUDGET BEFORE BEFORE BUDGET OVER RESERVES/ AFTER OVER RESERVES/ AFTER RESERVES/ RESERVES / TO/(FROM) REVENUE EXPENSES EXPENSES SURPLUS TRANSFERS REVENUE EXPENSES EXPENSES SURPLUS TRANSFERS SURPLUS SURPLUS RESERVES Projected for Projected for Projected for Actuals YTD Actuals YTD Actuals YTD Actuals YTD Actuals YTD Full Year Budget Full Year Budget Actuals YTD Full Year Budget Full Year Budget Year Year Year 2015-09-30 2015-09-30 2015-09-30 2015-09-30 2015-09-30 2015 2015 2015-09-30 2015 2015
COMM-COMPR. BUSINESS LICENSING (95,291) 43,746 (51,545) 0 (51,545) (378,479) 365,156 (13,323) 13,323 0 (269,407) 291,461 22,054
COMM-CEMETERY (1,250,452) 1,081,623 (168,829) 0 (168,829) (1,735,488) 1,526,632 (208,856) 208,856 0 54,337 78,723 133,060
COMM/IPPW/CORP-RENTAL HOUSING (1,146,663) 1,154,778 8,115 0 8,115 (1,211,160) 1,430,986 219,826 (219,825) 1 146,712 17,874 164,586
IPPW-BUILDING STANDARDS (2,192,087) 1,753,060 (439,027) 226,941 (212,086) (1,979,891) 2,735,425 755,534 (755,534) 0 986,257 50,242 1,036,499
IPPW-PARKING (687,399) 453,950 (233,449) 3,057 (230,392) (1,102,267) 848,898 (253,369) 253,369 0 (50,297) (102,665) (152,962)
IPPW - STORM WATER MANAGEMENT (3,177,334) 1,536,068 (1,641,266) 0 (1,641,266) (4,481,558) 2,620,540 (1,861,018) 1,861,017 (1) 79,000 53,000 132,000
IPPW-WATER UTILITIES - OPERATIONS (29,517,592) 24,523,154 (4,994,438) 0 (4,994,438) (42,721,978) 36,779,639 (5,942,339) 5,942,339 0 (1,308,236) 1,741,344 433,108
TOTAL (38,066,817) 30,546,379 (7,520,438) 229,998 (7,290,440) (53,610,821) 46,307,278 (7,303,543) 7,303,545 2 (361,634) 2,129,979 1,768,345
Favourable variances are positive, unfavourable variances are negative
Finance & Strategic Planning Page 80 of 162 November 16, 2015 Committee Meeting 9 Corporate Services 2015
Enterprise Items (Reserve Funded or Funding)
1. Business Licensing is a new program which came into effect in 2015. Timing of implementation was delayed to address issues raised by Council; both expenses and revenue are anticipated to be below budget for 2015. This area is anticipated to generate a positive variance to budget of $22,054. The surplus will be transferred into the Reserve at year end. 2. Cemetery Services is anticipated to generate a positive variance to budget of $133,060 due to increased sales volume and wages and equipment savings. The surplus will be transferred into the Reserve at year end. 3. The Rental Housing area is anticipated to positively vary from budget in 2015 by $164,586 due to increased volume from compliance. The surplus will be transferred into the Reserve at year end. 4. Building Standards division is likely to exceed budget by $1,036,499 due to increased building activity. The surplus will be transferred into the Reserve at year end. 5. The Parking Enterprise is expected to generate a negative variance to budget of $152,962 due to decreased permit activity and increased costs. This deficit will be funded from the reserve at year end. 6. The Water Services division is comprised of Water, Sanitary Sewer and Storm Water Management (SWM). It is expected to generate a surplus of $565,108.
a. Water Services Operations is anticipating a surplus of $433,108 due to reduced sanitary sewer flows from a dry 2015 season.
b. It is anticipated that the Storm Water Credit Program will create a surplus of $132,000, that will be transferred to the reserve at year end.
The net budgeted transfer to the Water Services and SWM Reserves were $7.8 million for the year. As a result of an anticipated surplus, this net transfer will be increased.
The Water and Sanitary Sewer Reserve is intended to provide rate stability and buffer unforeseen operating and capital pressures.
Finance & Strategic Planning Page 81 of 162 November 16, 2015 Committee Meeting 10 Corporate Services 2015
Table 3
CITY OF WATERLOO - OTHER ITEMS RE SURPLUS - INCLUDED IN TAX SUMMARY, FOR INFO ONLY ACTUALS VS. BUDGET REPORT For the Period Ending September 30,2015 c d e=c-a f=e-i or k
TRANSFERS TO VARIANCE TRANSFERS IN (FROM) BEFORE EXCESS OF RESERVES/ RESERVES/ BUDGET TO REVENUE SURPLUS SURPLUS RESERVES Amount Full Year Budget Full Year Budget Remaining 2015 2015
CORPORATE TRANSACTIONS FS INTEREST INCOME (1,280,033) 0 250,000 250,000
CORPORATE TRANSACTIONS WNH INVESTMENT INCOME (3,009,000) 0 980,587 980,587
IPPW WINTER CONTROL 0 (87,000) (87,000)
Total - per Tax Based Summary 1,143,587
VARIOUS DEPARTMENTS CITY WIDE GAPPING AND VACANCY 0 1,332,725
TOTAL 2,476,312
Finance & Strategic Planning Page 82 of 162 November 16, 2015 Committee Meeting 11 Corporate Services 2015
Other Items – tax based, for additional information only
1. Investment/Interest Income experienced a significant budget variance in 2014 and the budget was increased by $250,000 in 2015. It is anticipated to generate a positive variance to budget of $250,000. Any surplus is transferred to the RIM Park Investment Reserve as per Council Policy.
2. Waterloo North Hydro Investment Income experienced a significant budget variance in 2014 and the budget was increased by $660,000. In 2015 it is tracking to a positive budget variance of $980,587. The total surplus amount will be transferred to the Uptown Development Reserve as per Council Policy.
3. Winter maintenance is anticipating a deficit of $87,000 which will be funded from the reserve. The Winter Control Reserve currently has a balance of $285,000. The City has submitted a claim to the province for ice storm related damage. If successful the claim will flow through to the appropriate reserve.
4. Salary step gapping and vacancy gapping is anticipating a surplus of $1,332,725 from these items. (after one time funding for Commissioner initiated special projects, as approved within the 2015 Budget) These surpluses will be transferred to the Employee Development and Capacity Reserve and the Tax Rate Stabilization Reserve as per Council Policy.
In total, the enterprise and other items are anticipated to increase contributions to reserves or decrease draws from reserves in excess of budget.
Finance & Strategic Planning Page 83 of 162 November 16, 2015 Committee Meeting 1 Corporate Services
STAFF REPORT Financial Planning & Purchasing
Title: Library Funding Agreement Extension Report Number: CORP2015-095 Author: Cassandra Pacey Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: November 16, 2015 File: [File] Attachments: Appendix 1 – 2012 to 2015 Library Funding Agreement Appendix 2 – 2007 to 2015 WPL Levy Payments Appendix 3 – October 16, 2015 Library Correspondence
Ward No.: City Wide
Recommendation:
1. That Council approve CORP2015-095; 2. That Council authorizes a one year extension of the 2012-2015 Library Funding Agreement ending December 31, 2016: 3. That the 2016-2018 operating budget include funding as outlined within this report and that additional funding as outlined in the October 16, 2015 WPL correspondence be considered during the 2016-2018 budget process; 4. That Council authorizes the Mayor and Clerk to sign all necessary documents deemed appropriate by the Director of Legal Services for the one year extension.
A. Executive Summary The City of Waterloo and Waterloo Public Library (WPL) have a long history of collaboration and partnership to deliver excellent Library facilities to our community. In a transforming and digital world the Library is evolving as a critical element of welcoming, place making and indeed innovation and support for a community.
The purpose of this report is to request that Council approve an extension of the current Waterloo Public Library (WPL) Funding Agreement by one year, ending December 31, 2016. This extension will provide Council with the ability to review the Library’s requests, indicated in Appendix 3, in context of all other financial matters as part of the three year Budget being tabled for decision making in February 2016.
Finance & Strategic Planning Page 84 of 162 November 16, 2015 Committee Meeting 2 Corporate Services
The existing agreement is based on funding the WPL with base funding at the 50th percentile of per household funding as compared to eight comparator municipalities. The current agreement provides for the base funding to be increased annually for inflation by the City’s inflation index (CPIX) and is also adjusted for population growth.
The financial impact related to extending the existing funding agreement by one year is $299,663 ($191,775 for inflation & 50th percentile adjustments and $107,888 for population growth). Financial impacts for 2017 & 2018 are estimated to be $166,363 and $173,159 respectively based on the existing agreement. These figures would change if there is a fundamental change to the existing funding formula. The WPL is requesting an increase in funding to address the imminent funding challenges in a sustainable manner; this would move the funding from the 50th percentile to the 65th percentile. This incremental increase to the current funding would be an additional $307,600 in 2016, $10,073 in 2017 and $9,038 in 2018. This will be tabled for Council’s consideration as part of the 2016-2018 budget process.
In addition to the existing funding agreement, funding for the construction and operations of the East Side Library Branch will also form part of Council’s budget deliberations. Construction of the building (excluding land) is budgeted at $7.9M. However, an additional $3.2M of capital dollars would be required for furnishings, equipment, books and non-book collections along with $1M of operating dollars to staff and operate the branch.
B. Financial Implications The financial implications related to extending the current agreement by one year are identified in Table 1 below. The financial impacts for 2017 & 2018 are identified as the City of Waterloo is entering into a 3 year budget. The budget for 2017 & 2018 will be updated pending council approval of a new funding agreement.
Table 1: Funding Agreement Extension Financial Impacts Description 2016 Impact 2017 Impact 2018 Impact Total Inflation & 50th Percentile $191,775 $93,010 $96,048 $380,833 Population Growth $107,888 $73,352 $77,111 $258,351 Total Financial Impact $299,663 $166,363 $173,159 $639,185
Potential financial implications related to a new funding agreement will be brought forward during the 2016-2018 budget process and consideration in February 2016. This will assist City of Waterloo and WPL staff to provide information to facilitate council making informed financial decisions in context of other financial decisions as part of the 2016-2018 budget process.
Finance & Strategic Planning Page 85 of 162 November 16, 2015 Committee Meeting 3 Corporate Services
C. Technology Implications NA
D. Legal Considerations The Director of Legal Services has reviewed this report and the Extending Agreement.
E. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development) Strong Community
F. Previous Reports on this Topic FIN07-002, Library Funding Agreement – January 22, 2007 FS2010-047, Library Funding Agreement Extension – September 27, 2010 FS2011-040, 2012 Library Funding Agreement – September 19, 2011
G. Approvals
Name Signature Date
Author: Cassandra Pacey Director: Filipa Reynolds Commissioner: Keshwer Patel Finance: Keshwer Patel
CAO
Finance & Strategic Planning Page 86 of 162 November 16, 2015 Committee Meeting 4 Corporate Services
Library Funding Agreement Extension CORP2015-095
REPORT
The report is divided into 3 main sections with sub-sections beneath each one as follows:
1. General Information 1.1 Background 1.2 Chronology of Events 1.3 Funding Formula
2. Funding Agreement Financial Impacts 2.1 Agreement Extension 2.2 Changing from 50th Percentile to 65th Percentile
3. East Side Library 3.1 Capital Impacts 3.2 Operating Impacts 3.3 Development Charge By-Law & Background Study
1. General Information
1.1 Background In September 2005, Council directed the Chief Financial Officer in conjunction with the Chief Librarian to initiate discussions to develop a more sustainable funding process for the library. This was in response to the inability of libraries to generate revenue as this is governed by the Ontario Public Libraries Act.
A funding agreement was negotiated in 2007 as a pilot project and covered the period from January 1, 2007 ending December 31, 2010. The agreement was extended for one year, through report FS2010-047. In 2011, Council approved the second, 4 year agreement (Appendix 1), for a term ending on December 31, 2015, through report FS2011-040.
Finance & Strategic Planning Page 87 of 162 November 16, 2015 Committee Meeting 5 Corporate Services
The funding agreement is intended to provide the necessary operating funds for WPL to operate the main library as well as existing branches (e.g. McCormick and John M. Harper Branch). The agreement includes a provision to examine the impact on the agreement if there is a significant and unanticipated change in circumstances, however it does not provide for increased operating budget funding resulting from expanding library services funded through the city capital budget.
The agreement was built on the principle of funding the WPL at a level that would place its base funding at the 50th percentile of per household library funding levels when compared with eight comparator municipalities. The eight comparator municipalities are:
1. Town of St. Catherine’s* 2. City of Cambridge 3. City of Brantford* 4. City of Kitchener* 5. City of Kingston* 6. City of Niagara Falls 7. City of Barrie 8. City of Guelph*
Note: * These municipalities have a post-secondary institution within their borders.
Additionally, the base funding would be increased annually for the term of the Agreement by the City of Waterloo’s inflation index. An annual adjustment would also be made for population growth based on household figures.
The current funding agreement term ends on December 31, 2015. Initial discussions between City and WPL staff indicate that an extension of the current agreement by one year would be beneficial as it will provide Council the opportunity to review the financial impacts in the context of the broader City-wide budget set for approval in February 2016. The extension to December 31, 2016 continues funding at the agreed upon levels while discussions and negotiations occur to develop a new and mutually agreeable funding agreement.
Items identified to date that warrant further discussion include the following: o Calculation of Growth o Wording Clarification o Funding at the 50% Percentile o Process to provide funding for a new branch o Evaluation of the funding formula model
Finance & Strategic Planning Page 88 of 162 November 16, 2015 Committee Meeting 6 Corporate Services
1.2 Chronology of Events The first funding agreement was negotiated in 2007, with subsequent agreements in 2011 and with the current agreement ending on December 31, 2015. Appendix 2 outlines the levy payments made to WPL since the inception of the agreement.
During the negotiations for the 2007 Funding Agreement, a catch up payment of $340,836 was determined to be necessary to bring WPL to the 50th percentile. As part of the negotiations, it was agreed that the catch up payment would be paid upon the opening of the West Side Branch (John M. Harper Branch). Construction was delayed and resulted in the John M. Harper Branch opening in October 2011 resulting in a portion of the West Side Catch Up payment being made in 2011. The 2011 portion was determined to be 7 months of the catch up payment for a levy adjustment of $198,920 ($340,836/12 x 7) with the intent that the balance of $141,916 to be added to the 2012 levy.
Prior to the catch up payment being fully funded in 2012, the funding agreement was renegotiated. As part of the negotiations, the 50th percentile was recalculated for comparator municipalities. The additional funding of $309,474 in 2012 ($169,951 for inflation and $139,523 for growth) included the residual catch up payment to bring the Library up to the 50th percentile. The increase of $309,474 re-established WPL at the 50% percentile of comparable municipalities.
As part of the 2012-2015 agreement, funding increases for WPL were based on Clause 5 of the agreement which contains several factors, the establishment of the base funding (to the 50th percentile), population impacts and inflation impacts.
The calculation of the increases provided to WPL has been summarized in Table 2.
Finance & Strategic Planning Page 89 of 162 November 16, 2015 Committee Meeting 7 Corporate Services
Table 2: WPL Funding Calculation Summary Year of the Base Funding Population figures Inflation percentage Agreement (to the 50th Percentile) Using the prior year population published in the Region of Waterloo's Year-End Population and Households Estimates planning information Estimated for the year 1-3 using bulletin. It is then increased council approved inflation targets Survey comparator municipalities based on the forecasted growth and updated annually to reflect and establish the 50th percentile. for years 1 through 3 for inflation adjustments approved This calculation will be completed households provided in the during the tax levy confirmation Year 1 based on prior year information. Region's bulletin. process. Updated annually to reflect inflation adjustments approved during the tax levy confirmation Year 2 No change No change1 process. Updated annually to reflect inflation adjustments approved during the tax levy confirmation Year 3 No change No change1 process. Using the year 3 population information published in the Region of Waterloo's Year-End Population and Households Estimates planning information bulletin and increased based on the forecasted growth in households provided in the Based on council approved Year 4 No change Household Estimates. inflation target.
Note:
1The agreement specifically identified that the population component would not be changed once the 2012-2014 budget was approved and would be re-set for the 2015 budget.
As part of the 2015 budget process, the population figures for 2012-2014 were confirmed to re-establish the base population. That confirmation process revealed that the estimated household population growth used for the 2012-2014 budget cycle was higher than the actual increase. As a result, the 2015 budget reflected a reduction of $50,316 related to adjustments in population. Appendix 2 provides the funding breakdown between inflation and growth.
The library was funded through this period within the city’s tax based budget. Table 3 outlines the city’s tax increase, this year over year library funding increases, the impact of library funding on the tax levy as well as the library increase by inflation and growth for the 2007 to 2015 time period.
Finance & Strategic Planning Page 90 of 162 November 16, 2015 Committee Meeting 8 Corporate Services
Table 3: Tax Increases and Library Funding Increases
Increase in Year over City Budget Year Library Library Increase in Assessment Increase in Library Inflation Increase for City Budget Growth Library Impact on Increase % Population Year (MPI / CPIX %) ~60% Funding Tax Levy (MPI/CPIX) %1
2007 4.45% 1.59% 5.58% 0.41% 0.41%
2008 3.61% 0.82% 5.10% 0.37% 0.37%
2009 3.33% 1.10% 4.72% 0.34% 0.34%
2010 1.57% 1.14% 1.60% 0.11% 0.11%
2011 1.89% 1.73% 1.90% 0.13% 0.13%
2012 2.16% 1.31% 7.46% 0.55% 0.30% 0.25%
2013 1.55% 1.14% 3.55% 0.27% 0.12% 0.16%
2014 1.25% 2.13% 3.42% 0.27% 0.11% 0.16%
2015 1.53% 0.96% 0.38% 0.03% 0.11% -0.08% Average Increase 2.37% 1.32% 3.75% 0.28% 0.22% 0.12% Note: 1 The calculation of the 2007-2011 funding was not split into inflation and growth. 2 Relevant Assessment Growth is: 2007 - 1.98%; 2008 - 1.51%; 2009 - 1.67%; 2010 - 1.91%; 2011 - 2.49%; 2012 - 2.12%; 2013 - 1.73%, 2014 - 2.92%; 2015 - 1.86%
Finance & Strategic Planning Page 91 of 162 November 16, 2015 Committee Meeting 9 Corporate Services
1.3 Funding Formula The funding formula to calculate the base library funding level has remained the same since the inception of the agreement in 2007 in that the City will provide funding to “the 50th percentile of per capita funding of libraries in centres that the City of Waterloo typically uses as comparators”. The City uses the estimated number of household figures for the per capita basis. Household figures are used as there are differences (e.g. excluding students) in how the comparator municipalities account for students in their population figures. Households used by the City are published by the Region of Waterloo through their annual Year-End Population and Households Estimates planning information bulletin. The household information published by the Region includes students living in the community.
Up to and including 2013, municipalities were required by the Province of Ontario to report various measurements such as Library per capita funding through the Municipal Performance Measure Program (MPMP). After the 2013 reporting period, the MPMP program was discontinued however municipalities can draw raw data from the Financial Investment Return (FIR) process to calculate statistics as needed. An important factor in the calculation of the Library per capita statistic is that the City of Waterloo includes students in the population number however based on a survey conducted of the comparator municipalities do not include students in their population numbers. As a result, Library per Capita funding is a statistic for comparability however is not a reliable funding mechanism.
Due to the limitations of the current approach of benchmarking library funding against comparator municipalities, further analysis is recommended with respect to understanding best practices in other cities. A one year extension of the existing agreement will provide staff the time to research the approach comparable municipalities are using to fund their libraries.
Finance & Strategic Planning Page 92 of 162 November 16, 2015 Committee Meeting 10 Corporate Services
2. Funding Agreement Financial Impacts
2.1 Agreement Extension The financial impacts of extending the existing funding agreement with an ending date of December 31, 2016 are identified in Table 4 below. The financial impacts for 2017 & 2018 are identified as the City of Waterloo is entering into a 3 year budget. The budget for 2017 & 2018 will be updated pending council approval of a new funding agreement.
Table 4: Funding Agreement Extension Financial Impacts Description 2016 Impact 2017 Impact 2018 Impact Total Inflation & 50th Percentile $191,775 $93,010 $96,048 $380,833 Population Growth $107,888 $73,352 $77,111 $258,351 Total Financial Impact $299,663 $166,363 $173,159 $639,185
2.2 Changing from 50th Percentile to 65th Percentile As part of the 2016-2018 budget process, WPL has included a request for council’s consideration to increase from funding by at least $300,000 to address the imminent funding challenge as outlined in their memo to Council. This would equate to moving the Library from the 50th percentile to the 65th percentile. The financial impacts of adjusting to the 65th percentile are identified in Table 5 below. These are the costs above and beyond what is already identified in Table 4.
Table 5: Financial Impacts of Changing from the 50th to the 65th Percentile Description 2016 Impact 2017 Impact 2018 Impact Total Changing to the 65th $307,600 $10,073 $9,038 $326,711 Percentile Total Financial Impact $307,600 $10,073 $9,038 $326,711
If Council were to approve funding the WPL at the 65th percentile beginning in 2016, the 2015 Library levy would increase from $4,795,050 to $5,402,313; an increase of $607,263 or 13%.
The potential financial implications related to a new funding agreement, including changing the percentile benchmark will be brought forward during the 2016-2018 budget process. This will facilitate council making informed decisions within the context of all financial information as part of the 2016-2018 budget process.
Finance & Strategic Planning Page 93 of 162 November 16, 2015 Committee Meeting 11 Corporate Services
3. East Side Library
3.1 Capital Impacts A WPL branch on the East Side has been included in the capital budget for many years. As part of the 2008-2010 budget process, Council delayed the branch to allow the opportunity to pay for the branch without the assistance of debt. There is $7.9M set aside for the project. This funding is expected to fund the construction of the building. More recently, as part of the 2016-2018 budget process, the WPL has identified 2 additional capital projects for the East Side Branch; furnishings & equipment and book & non-book collections. These additional projects increase the capital funding requirement by $3.2M. The total capital impacts identified are noted below in Table 6.
Table 6: East Side Branch Capital Requests1 Description Funding 2018 Impact 2019 Impact 2020 Impact Total 2 Source (inflated dollars) East Side DC $311,000 $1,799,000 $1,824,000 $3,934,000 Branch East Side LXP $307,000 $1,814,000 $1,850,000 $3,971,000 Branch Total East $618,000 $3,613,000 $3,674,000 $7,905,000 Side Branch3,4 East Side OT - CRF $433,000 $662,000 $1,095,000 Branch Furnishings & Equipment4 East Side OT - CRF $955,000 $974,000 $221,000 $2,150,000 Branch Book & Non-Book Collection4 Total $1,573,000 $5,020,000 $4,557,000 $11,150,00 Financial Impact Note:
1 Reflects capital contributions in inflated dollars as they will be published in the 2016-2018 Capital Budget, 2019-2025 Capital Forecast
2 The following are the full funding source names; DC = Development Charges LXP = Library Expansion Reserve Fund CRF = Capital Reserve Fund OT-CRF = Over Target Capital Reserve Fund
3 Appendix 3 identifies $7.2M in capital funding for the East Side Branch which is the capital request in today’s dollars.
4 Capital estimates are based on budget submissions by the Library
Finance & Strategic Planning Page 94 of 162 November 16, 2015 Committee Meeting 12 Corporate Services
The construction of the East Side Branch has been split over 3 years, with design starting in 2018 and construction beginning in 2019. This will provide the Library and the city sufficient time to address the funding needs on a sustainable basis and determine the optimal service level and service delivery mode in the east side of the city.
3.2 Operating Impacts In addition to the capital requirements to construct a branch on the East Side, WPL has indicated that additional operating dollars of $1,000,000 will be required. The increase in funding is based on the operating cost for the John M. Harper Branch. The assumption is that the East Side Branch will be of comparable size. Based on the proposed timing for construction, the operating dollars will be a pressure for the 2020-2022 budget cycle.
3.3 Development Charge By-Law & Background Study The City of Waterloo has maximized our Development Charge (DC) dollars based on population growth expected, as outlined in our 2012 DC By-Law. The Library receives DC funds for circulation materials on an annual basis through the capital budget and as a result, there is not further room to allocate towards the East Side Library circulation. The growth figures utilized within the DC By-Law are derived from the Province of Ontario’s population projections.
Finance & Strategic Planning Page 95 of 162 November 16, 2015 Committee Meeting Appendix 1 – 2012 to 2015 Funding Agreement
THIS AGREEMENT made the ______day of September 2011.
BETWEEN:
THE CORPORATION OF THE CITY OF WATERLOO ( the “City” ),
-and-
THE WATERLOO PUBLIC LIBRARY BOARD (the “WPLB”),
WHEREAS the City has, pursuant to Section 8, 9, 10 and 11 of the Municipal Act 2001, S.O. 2001, c. 25, as amended and Part I of the Public Libraries Act, R.S.O. 1990, c. P.44 as amended (the “Public Libraries Act”), the authority to establish and continue a public library board;
AND WHEREAS the WPLB has been established and continues as a public library board pursuant to the above cited authority;
AND WHEREAS ss.29(1) of the Public Libraries Act permits the City and the WPLB to enter into a contract for the purpose of providing library services on terms and conditions as set out in the agreement;
NOW THEREFORE THIS AGREEMENT WITNESSETH that, in consideration of the mutual covenants and agreements herein contained and subject to the terms, conditions and trusts hereinafter set out, the parties hereto agree as follows:
1 Purpose
a) The purpose of this Agreement is to establish a long-term, sustainable, stable and predictable funding and service agreement between the City and the WPLB.
2 Term a) The term of this Agreement shall be from January 1, 2012 to December 31, 2015.
3 Term Extension a) The term of this Agreement may be extended for a further four year period commencing January 1, 2016 to December 31, 2019 on the same terms and conditions as this Agreement save and except:
Finance & Strategic Planning Page 96 of 162 November 16, 2015 Committee Meeting b) revisions that are mutually agreed upon by the Library and the City; and c) Appendix “A” shall be amended to reflect the most recent available values for the comparator municipalities as determined in the year of extension, that is, 2016.
4 Termination a) Either party may terminate this Agreement at the end of the term or the end of the extended term on one hundred eighty (180) days written notice of such termination to the other party.
5 Funding formula a) Base Funding i) The parties agree that the base funding formula is as follows:
library funding per household at the 50th percentile level of comparator municipalities multiplied by the number of households in the City of Waterloo.
ii) The comparator municipalities are: Kitchener, Cambridge, Guelph, Kingston, St. Catharines, Niagara Falls, Brantford and Barrie.
iii) The 50th percentile level of the comparator municipalities is set out in Appendix “A” to this Agreement. The parties agree that the information contained in Appendix “A” is the most recent actual expenditure for the comparator municipalities. The parties further agree that the 50th percentile level of the comparator municipalities in 2011, the calculation year, is $104.54 per household.
iv) The parties agree that the number of households in the City of Waterloo in 2011 is 40,910 based on the December 31, 2010 Year-End Population and Household Estimates prepared and published by the Region of Waterloo (the “Household Estimates”).
v) The parties agree that the base funding for 2011, the calculation year, shall be $104.54 per household multiplied by 40,910 households equaling $4,276,731 in total funding.
b) Funding Adjustment Based On Population
i) The City follows a three year budget cycle wherein budgets are set at the budget launch date (the “Budget Launch Date”) for a three year period and confirmed annually (all of which is the “Budget Cycle”). That is, the 2012 budget includes the budgets for the years 2012, 2013 and 2014 and the following 2015 budget is a one year budget.
Finance & Strategic Planning Page 97 of 162 November 16, 2015 Committee Meeting ii) The growth component of the funding levels for the agreement will be calculated for the current Budget Cycle 2012 to 2014 using 2011 as the calculation year, from the most recent available actual year end household figures as reported in the Household Estimates. To this will be added the estimated growth for the current year based on the forecasted household figures provided in the Household Estimates as at the Budget Launch Date. For example the 2012 funding level will be based on the December 31, 2010 household figure plus the estimated growth for 2011 based on the forecasted growth in households provided in the Household Estimates . The forecast for 2013 and 2014 will not be changed once set as part of the 2012-2014 budget. This process will then reoccur in 2014 for the 2015 Budget Cycle.
c) Funding Adjustment Based On The City’s Municipal Price Index (the “MPI”)
i) The base funding as setout above, subsequent to the adjustment based on population as detailed in 5b) above, shall be adjusted annually by multiplying the initial year funding per household by the City’s annual Municipal Price Index (“MPI”).
ii) The City, in its absolute discretion, may discontinue the use of the MPI, in such case, this Agreement shall continue by re-calculating the base funding on a year to year basis utilizing a mutually agreed upon inflationary factor.
d) Funding Adjustment At Extension Of Term
i) The base funding in the initial year of the extended term shall be based upon an updated survey of the comparator municipalities as described in 3c) above unless other comparators have been mutually agreed upon at that time.
e) Adjustments Based On External Factors
i) In the event of a significant or exceptional variance in the general tax rate, the City and the WPLB agree to mutually examine the impact of the variance on this agreement.
f) The parties agree that the funding for 2012 shall be$106.80 per household multiplied by the 41,730 household equaling $4,456,683 based upon the inflationary increase set out in 5 c) above and estimated growth as set out in 5 b) above.
Finance & Strategic Planning Page 98 of 162 November 16, 2015 Committee Meeting 6 Capital Expenditures and Expansion of Library Services
a) Capital, as that term is defined by the City in its sole discretion, expenditures and expansion of library services through the City’s capital budget do not form part of this Agreement.
b) The parties agree to review the above described funding formula where capital expenditures result in a long-term and sustained impact on the WPLB operating budget.
7 Reporting
a) The WPLB shall submit to the City for approval an annual operating budget,, a capital budget and a capital forecast all in a format approved by the City.
b) The WPLB shall submit to the City for approval a business plan in accordance with the City’s budget process.
c) The WPLB shall report and make presentations to the City on a periodic basis as requested or required by either party.
8 Hours Of Service
a) The WPLB agrees to provide the minimum number of hours of library service as follows:
i) Main Library: 2,969 hours per year, including a minimum of 78 hours of Sunday service per year; and
ii) McCormick Branch and John M. Harper Branch: 96 hours per week of pooled service.
9 Book Plan
a) The WPLB agrees to maintain a book plan by acquiring and maintaining the number of books within WLPB’s collection of a recognized standard of 2.5 books per capita for library collections (the “Book Plan”). The per capita household figures used in the base year calculation will be most recent actual household figures as reported in the Household Estimates.
b) The operating impact of these calculations will continue to be managed by the WPLB under this funding Agreement.
c) The City shall contribute additional funding for an increase in the total number of books in the WPLB’s collection due to population increases. Such additional funding shall primarily be provided out of that portion of the development charges collected and allocated for library services under the City’s development charges by-law and the Development Charges Act, 1997, S.O. 1997, c.27. The WPLB shall submit the growth
Finance & Strategic Planning Page 99 of 162 November 16, 2015 Committee Meeting portion of its Book Plan and request for additional funding as part of the City’s capital budget process and in accordance with this section.
d) Additional funding due to growth as outlined in 9c) above shall be adjusted in conjunction with the Budget Cycle and follow the same process as outlined in 5b) above.
10 Non-waiver
a) The failure of either party to exercise any right, power or option hereunder, or to insist upon the strict compliance with the terms and conditions hereof by either party shall not constitute a waiver of the terms and conditions of this Agreement with respect to any other or subsequent breach thereof or default hereunder, nor a waiver by either party of its rights at any time thereafter to require strict compliance with all terms and conditions hereof.
11 Notice a) All notices and payments given or made pursuant to this Agreement are to be set forth in writing and delivered personally or by registered mail to:
the City at: The Corporation of the City of Waterloo Finance Department Attention: CHIEF FINANCIAL OFFICER Waterloo City Centre 100 Regina Street South Waterloo, ON, N2J 4A8
the Waterloo Public Library at: The Waterloo Public Library Attention: CHIEF EXECUTIVE OFFICER 35 Albert Street Waterloo, Ontario. N2L 5E2
Notice sent by registered mail shall be deemed to have been received on the fifth (5th) business day after mailing.
12 Headings
a) The headings in this Agreement are for convenience only and shall not in any way limit or be deemed to constitute or interpret the terms and provisions of this Agreement.
13 Governing Law
Finance & Strategic Planning Page 100 of 162 November 16, 2015 Committee Meeting a) This Agreement shall be construed and enforced in accordance with the by-laws of the City of Waterloo, the laws of the Province of Ontario and any other laws, which might apply.
14 Entire Agreement
a) This Agreement embodies the entire agreement of the parties with regard to the subject matters herein and supersedes all other agreements, understandings, negotiations and discussions with respect to the subject matters herein, whether oral or written. No supplement, modification, amendment, or waiver of this Agreement shall be binding unless executed in writing by both parties.
15 Enurement
a) This Agreement shall enure to the benefit of and be binding on the parties and their respective successors and permitted assigns.
Finance & Strategic Planning Page 101 of 162 November 16, 2015 Committee Meeting Finance & Strategic Planning Page 102 of 162 November 16, 2015 Committee Meeting Appendix A 2011 Operating City of Waterloo 2011 HH# Funding Funding per HH St. Catherines 58,670 $5,082,450 $86.63 Cambridge 46,000 $4,469,100 $97.15 Brantford 38,876 $3,899,155 $100.30 Kitchener 87,003 $8,927,661 $102.61 Kingston 51,627 $5,496,602 $106.47 Niagara Falls 34,561 $3,729,724 $107.92 Barrie 50,292 $5,624,752 $111.84 Guelph 49,200 $6,217,600 $126.37 50th Percentile $104.54
Finance & Strategic Planning Page 103 of 162 November 16, 2015 Committee Meeting 14 Corporate Services
Appendix 2 – 2007 to 2015 WPL Levy Payments 0 0 (3,773) (50,316) (50,316) 0 0 3,773 0 0 (3,773) 0 0 139,523 91,702 95,088 139,523 91,702 95,088 0 4,555 6,398 2,689 104.54 106.80 108.45 109.81 111.49 40,910 41,730 42,590 43,460 43,002 212,562 0 0 82,251 13,853 68,398 13,853 (13,853) 0 0 (82,251) (82,251) 0 0 0 2008 2009 2010 2011 2012 2013 2014 2015 0 94.92 4.45% 3.61% 3.33% 1.57% 1.89% 2.16% 1.55% 1.25% 1.53% 5.58% 5.10% 4.72% 1.60% 1.90% 7.46% 3.55% 3.42% 0.38% 0.41% 0.37% 0.34% 0.11% 0.13% 0.55% 0.27% 0.27% 0.03% 40,020 182,838 176,405 171,568 59,752 73,060 169,951 70,502 58,917 72,246 340,836 340,836 340,836 340,836 340,836 182,838 176,405 171,568 59,752 73,060 169,951 66,729 62,690 68,473 (340,836) (340,836) (340,836) (340,836) (141,916) 3,275,024 3,457,862 3,634,267 3,723,584 3,851,734 4,151,209 4,460,683 4,619,115 4,776,893 3,457,862 3,634,267 3,723,584 3,851,734 4,151,209 4,460,683 4,619,115 4,776,893 4,795,050 2007 2009 2010 2009 2010 2011 2012 per Funding Agreement Inflation CorrectionsInflation per Funding Agreement Budgeted Increase Adjustment due to Harper Branch Opening Delay Inflation IncreasesInflation on Catch Up Description Catch Up Adjustments Westside Total Total Development Charges Repayment Adjustments Inflation 50th Percentile Adjusted for per MPI HH Households Beginning Levy Budget Total Inflation Adjustments Inflation Total Levy Increases Levy Inflation Growth Total GrowthTotal Adjustments West Side Catch Up Development Charge Repayment Levy to Paid WPL % Increase% Prior from Year Levy Tax Increase %
Finance & Strategic Planning Page 104 of 162 November 16, 2015 Committee Meeting Appendix 3 – October 16, 2015 Library Correspondence
October 16th, 2015
City of Waterloo Mayor and Council Tim Anderson, CAO
We are writing this letter, in an effort to share our perspective and concerns regarding the status of the Waterloo Public Library, particularly within the city’s upcoming three-year budget cycle.
We invite members of Council to consider key elements when making decisions about the Waterloo Public Library.
1. As reflected in the Municipal Performance Measure Program reports issued annually by the City of Waterloo, Waterloo consistently ranks 1st among local libraries for usage, while being funded at a lower per capita level than our neighbours. 2. The current operating agreement has the Waterloo Public Library funded at the 50th percentile, when compared to other libraries in a comparator group. In that group, we have the 2nd highest circulation per capita, are 3rd in cardholders as a percentage of population, and 4th for circulations per card holder.
Our staff and board have been actively engaged in budget discussions at both the library and at the city.
These discussions have centred on two key items:
1. The Current Operating Agreement 2. The Proposed East Side Branch
The Current Operating Agreement
In 2013, we launched our Strategic Plan for 2013-2017. This plan, based on the idea of Transforming Understanding was rooted in extensive community consultation and reflects the resounding love and support the citizens of Waterloo have for its public library. Our organization was encouraged to accomplish three things with the Strategic Plan:
1. Ensure the long-term relevance of the WPL in our community. 2. Address the changing demographics of our community. 3. Support the City of Waterloo’s strategic vision.
The Strategic Plan has served our library and your city well. It has allowed our team to reposition the Waterloo Public Library as a foundational piece of the City of Waterloo’s strategic vision to build a resilient, safe, inclusive, and vibrant community.
In our library system, we have 26 full time and 77 part-time employees. Operating costs are reduced through the extensive use of part-time staff. In 2014, 153 volunteers donated over 5330 hours of time to the public library.
According to the original funding agreement, the John M Harper Branch was to be open 48 hours per week. Due to heavy public demand, the branch is now open on Fridays and on 27 Sundays, adding $120K of unfunded costs to our operating budget.
Finance & Strategic Planning Page 105 of 162 November 16, 2015 Committee Meeting Letter to Council October 2015
Over the past few years, the following steps have been taken to reduce our staffing costs:
• The elimination of three manager positions, one IT position, and one Programmer position. • The outsourcing of building maintenance (eliminating a full time custodian). • The McCormick Branch manager position reduced from full-time to 28 hours. • The Administrative assistant position reduced from 35 to 12 hours per week. • The elimination of a number of part-time positions.
We have taken steps to reorganize our library team in a strategic manner:
• The Manager of Children’s Services was expanded to become the Manager of Community Engagement and Children’s Services. • The Manager of Information Services was expanded to become the Manager of Information Services and Local History. • Two Children’s programmer positions became Emergent Technologies Programmers.
We are actively looking for and acting on ways to cut costs in our compensation envelope.
• We have not made any increases to our benefit plan since 2010, while the city has continued to increase and improve their benefit packages. • We are currently discussing significant reductions to our benefit plans, moving further away from the level of benefits that the City of Waterloo provides to its employees. • We are currently discussing a significant reduction of hours and services in all branches for 2016.
We have a number of costs that are unpredictable and out of our control.
• Legislated increases to the minimum wage, along with associated OHIP and EI premiums. • eBooks are in high demand and are extremely expensive. • Book prices are rising due to the low Canadian dollar. • Maintenance and utility costs at the John M Harper Branch are considerably higher than were estimated, at 152K per year. • Changes in the MPI estimations in the 2011-14 three year budget and unfulfilled growth numbers in the City of Waterloo led to a reduction of $352K in the estimated library funding in the 2011-15 funding agreement.
Over the past few years, as these financial variables have compounded, our staff has been working hard to do more with less. We continue to partner with other organizations to maximize efficiencies and trim operational costs. We know that we are not alone in this endeavour – this message was clearly delivered at your August 11th, 2015 budget forecast meeting, in which your finance staff tabled their proposal to implement three successive 6% tax increases.
Over the past four years, we have worked diligently to cut costs in your library system. To be frank, we have run out of room to cut.
We are currently projecting a $300,000 deficit for the 2016 year (after planned reductions to the benefit package), which parallels the projected operating gap – maintenance and utilities along with the extended Friday/Sunday hours - at the John M Harper Branch. As we are unwilling and unable to propose a deficit budget, we will be rolling back our hours of opening at the John M Harper branch, to the original 48 hours per week (i.e., no more Fridays or Sundays).
Finance & Strategic Planning Page 106 of 162 November 16, 2015 Committee Meeting Letter to Council October 2015
The Proposed East Side Branch
Since the public announcement that the City of Waterloo would be opening an Eastside Branch of the Waterloo Public Library by 2018, we have been working diligently with city staff to tackle the parallel issues of timing, budget and feasibility. These conversations have hit an impasse.
As you know, there will be $7.2M in the capital forecast for the Eastside Branch by 2018.
There are no funds for the preparatory work, operating costs (estimated at $1M/year) or a collection (estimated at $1.2M, whether that ‘collection’ is traditional, digital, maker space, or something else) in the current operating or capital forecasts at either the city or the library.
It is our understanding that the updated 2016-18 budget forecast of 2.17%, 1.8%, and 1.8% does not include funding for the Eastside Branch.
As a Board of Trustees, our first priority and responsibility is the sustainable operations of the Waterloo Public Library.
In the current situation – facing enormous pressures on our budgets and lacking a commitment to operating funding - we feel that we must focus our attention on the existing system – the Main Branch, the John M Harper Branch, and the McCormick Branch – before we look to further expansion.
This decision will not sit well with the residents of the Eastside, who have been actively engaged in the library’s feasibility study and are well aware of the city’s public announcement about a new branch. We invite the City of Waterloo to collaborate with the Waterloo Public Library to map out a feasible strategy to deliver library services to the Eastside, prior to 2022.
We appreciate that these are not easy decisions.
We also hope you can appreciate that the Waterloo Public Library is not a 50th percentile library. We are a foundational piece of the City of Waterloo’s strategic vision to build a resilient, safe, inclusive, and vibrant community. Our goal is to find a sustainable path forward, one that effectively leverages the library’s role in the community.
Please consider this an invitation to start a conversation about your library – we would welcome the opportunity to meet with each of you over the next few months.
We submit this letter on behalf of the Board of Trustees of the Waterloo Public Library, as approved by formal resolution on Sept 23rd, 2015.
Karen Scian Jude Doble John Strong WPL Chair WPL Vice-Chair WPL Finance Chair
Finance & Strategic Planning Page 107 of 162 November 16, 2015 Committee Meeting 1 Corporate Services
STAFF REPORT Legal Services
Title: By-law To Delegate Authority to Execute Documents Report Number: CORP2015-109 Author: Steve Ross Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: November 16, 2015 File: [File] Attachments: Appendix 1- By-law to Delegate Authority to Execute Documents Ward No.: City Wide
Recommendation:
1. That CORP2015-109 be approved.
2. That the attached by-law be adopted, being a By-law to Delegate Authority to Execute Documents.
A. Executive Summary
The Municipal Act allows for the delegation of certain approvals to staff. in absence of specific authority to execute documents, the Mayor and Clerk are to sign all contracts the Corporation enters into. The by-law will accomplish, in part, the following four goals:
1. Identify and consolidate all previous delegation of authority by-laws of council into one by-law for quick reference by staff; 2. Fill in any gaps in existing practices and regularize existing practices, where appropriate, if there was no official delegation in the past; 3. Address the fact that there is now internal legal counsel handling real estate transactions, in house; and 4. Recognize the removal of the signing authorities from the new Purchasing By-law.
Schedule H of Appendix 1 was created in conjunction with the Purchasing Division. The tiered authorities contained in Schedule H were previously contained within the Purchasing By-law and has been consolidated into the Delegation By-Law. Please note that it is the intention to bring a housekeeping amendment to this by-law, if necessary,
Finance & Strategic Planning Page 108 of 162 November 16, 2015 Committee Meeting 2 Corporate Services late next year, in the event there are previous delegations missed or there are other circumstances where it makes sense to adjust the authorities, or clarify the schedules.
This By-law was prepared with the support of OLT and CMT, and has also been reviewed by the Audit Committee, with particular attention on Schedule H, being the authorities previously contained in the purchasing by-law.
B. Financial Implications
There are no Financial Implications with respect to this By-law. As with the Schedules applicable to other divisions, the Finance and Revenue Divisions played a key role in the creation and review of the schedules relevant to their respective divisions.
C. Technology Implications There are no technology implications with this report.
D. Legal Considerations This report and by-law has been prepared by the Legal Services Division.
E. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development) Economic Development – supporting developments
F. Previous Reports on this Topic
G. Approvals
Name Signature Date
Author: Steve Ross
Director:
Commissioner:
Finance: CAO initials
Finance & Strategic Planning Page 109 of 162 November 16, 2015 Committee Meeting THE CORPORATION OF THE CITY OF WATERLOO
BY-LAW NO. 2015 –
BY-LAW TO DELEGATE AUTHORITY TO EXECUTE DOCUMENTS
WHEREAS Section 23.1 of the Municipal Act grants Council the general power to delegate authority to City staff;
AND WHEREAS Section 23.1 (2) of the Municipal Act allows for the revocation of such powers at any time without notice by Council;
AND WHEREAS Section 23.3(1) of the Municipal Act sets out powers that cannot be delegated by the Council;
THEREFORE THE MUNICIPAL COUNCIL OF THE CORPORATION OF THE CITY OF WATERLOO ENACTS AS FOLLOWS:
1. The documents described in the Schedules to this By-law are hereby authorized and the authority to approve and to execute such documents is hereby delegated to the municipal staff persons identified in respect of each document in the Schedules without the necessity of obtaining Council approval for the execution of such documents, except as where noted. Any documents executed in accordance with this By-law and its Schedules shall be binding upon the Corporation to the same extent as if the documents had been individually approved by Council and executed on behalf of the Corporation. The municipal staff persons identified constitute the minimum approval levels necessary. Any staff position higher than those designated in the attached Schedules can exercise the same authority.
2. Where any document has been executed in compliance with this By-law, the Clerk may affix the seal of the Corporation to such document.
3. The authority delegated to staff to execute any document pursuant to this By-law is subject to any terms, conditions, pre-requisites, or other requirements expressed in the Schedules which pertain to each such document, and documents shall only be executed by the municipal staff if:
Finance & Strategic Planning Page 110 of 162 November 16, 2015 Committee Meeting 2
a. The staff person executing the document is the staff person identified in the applicable Schedule as the person or a member of the class of persons authorized to execute the documents; and, b. Any terms, conditions, pre-requisitions or other requirements expressed in the Schedules which pertain to the document have been fully and completely satisfied prior to execution.
4. An original copy of any document executed pursuant to this By-law shall be forthwith deposited with the Clerk for safekeeping immediately following its execution.
5. Nothing in this By-law shall be interpreted to invalidate any document executed by any City Official where such execution was performed in accordance with any other By-law, Rule of Law, or applicable statutory authority.
6. Where any document is required or authorized to be executed by the Mayor and Clerk pursuant to this By-law, the arrangements for executing the document shall be managed through the Office of the City Clerk. Persons requesting the execution of documents by the Mayor and Clerk shall provide such evidence, in the format prescribed from time to time by the City Clerk, demonstrating compliance with any terms, conditions, pre-requisites or other requirements expressed in the Schedules.
7. This By-law shall not be consolidated within the City of Waterloo Code of Conduct.
8. This by-law shall come into force and effect on the date of its final passing.
Enacted this day of ______, 2015.
Approval Date Print Name Initials Blank Signature
IPPW Dave Jaworsky, Mayor
Legal
Finance Olga Smith, City Clerk
Finance & Strategic Planning Page 111 of 162 November 16, 2015 Committee Meeting 3
Schedule ‘A’ - Chief Administrative Officer
Type of Document Staff Position authorized to Terms, Conditions, Pre- Execute Document Requisites or Other Conditions Which Must be Satisfied Prior to Execution
All contracts not exceeding Chief Administrative Officer Subject to Budget and Council $75,000.00 pursuant to By-law No. 2014-076 direction (if any).
All documents that a Commissioner, Chief Administrative Officer – Chief Administrative Officer has Director, Manager or other provided that if two people must authority subject to same employee is authorized to execute. sign, CAO can sign for only one of compliance rules required by the them. document.
Finance & Strategic Planning Page 112 of 162 November 16, 2015 Committee Meeting 4
Schedule ‘B’ – Documents – Corporate Services
` Type of Document Staff Position Authorized Terms, Conditions, Pre- To Execute Document Requisites or Other Conditions Which Must Be Satisfied Prior to Execution
Documents required to finalize City Clerk Any cost must be within insurance insurance settlements. deductible levels. Form of documents to be approved by City Solicitor or designate.
Amendment of existing City City Clerk Required in order to accommodate Insurance Agreements other than changes in assets of municipality. insurance contracts with Human Award of new contracts to be in Resources benefit carriers accordance with City Purchasing Policy. Form of amendment agreements to be approved by City Solicitor or designate.
Amendment agreements to existing Director of Human Resources Must be required in order to insurance contracts with benefit implement a change in benefits carriers. covered by an existing contract with a carrier where the change is incidental to a collective agreement or other employment agreement which has been specifically approved by Council. Award of new contracts to be in accordance with the Purchasing Policy. Form of agreements to be approved by City Solicitor or designate.
Electronic signature for Land City Solicitor or Law Clerk. For fee simple transactions, Registry documents (electronic transaction must have been registration) for fee simple land authorized by Council. It will also acquisitions and dispositions. include the execution of other documents required to be registered in the course of a transaction approved by Council which are necessarily incidental thereto. This does not include acquisitions that are for road widenings or that are the result of planning and development approvals under the Planning Act, including decisions of the Committee of Adjustment. Electronic signature for Land City Solicitor or Law Clerk Authorization from the Director of
Finance & Strategic Planning Page 113 of 162 November 16, 2015 Committee Meeting 5
` Type of Document Staff Position Authorized Terms, Conditions, Pre- To Execute Document Requisites or Other Conditions Which Must Be Satisfied Prior to Execution
Registry documents (electronic Planning or Economic Development registration) for fee simple land or a Commissioner satisfactory to acquisitions and dispositions that are the City Solicitor. This includes the result of a planning approval. acquisitions that are for road widenings or that are the result of planning and development approvals under the Planning Act, including decisions of the Committee of Adjustment. Electronic signature for Land City Solicitor or Law Clerk Authorization from the Director of Registry documents (electronic Planning, Engineering or Economic registration) for easement and Development or a Commissioner encroachment acquisitions and satisfactory to the City Solicitor. For disposition pursuant to a Planning registration of orders, covenants, Act approval or to Waterloo North rights, and other agreements or Hydro and its successors or a utility documents in order to protect company or a telecommunications interests of municipality or comply company. with any statutory requirements, determination by City Solicitor that such registration is required. For release of orders, covenants, rights and other agreements in favour of the Municipality written confirmation from responsible Commissioner that same may be released.
Discharges of mortgages (electronic City Solicitor or Law Clerk. Written confirmation from City registration). Treasurer that monies owing have been satisfied.
Agreements of purchase and sale of Mayor and Clerk. Unless authorized by council, prior land. Agreements of this nature must contain a “true condition precedent” requiring Council approval before agreement becomes effective. Agreements of this nature must have be approved by City Solicitor.
Temporary Licences and Temporary City Solicitor or Director of In the case of contracts involving the Leases of City-owned Property. Engineering or Director of Facilities leasing or use of property owned by and Fleet the City, the agreement is for a year or less or on a month to month basis. Form of agreement to be approved by City Solicitor or designate.
Finance & Strategic Planning Page 114 of 162 November 16, 2015 Committee Meeting 6
` Type of Document Staff Position Authorized Terms, Conditions, Pre- To Execute Document Requisites or Other Conditions Which Must Be Satisfied Prior to Execution
Documents required to settle any City Solicitor. Approval of the applicable litigation brought by or against the Commissioner with jurisdiction over City, other than insurable matters or the subject matter of the litigation. the insured portion of any partially Any costs in respect of the proposed uninsured claim. settlement must be within the approved budget of the applicable Commissioner in respect of the project or matter. Any settlement over $100,000.00 must be approved by Council unless prior authority granted in the specific matter.
Documents required to file or City Solicitor. Commencement of litigation will prosecute litigation brought on require the approval of the behalf of the City. applicable Commissioner, Chief Administrative Officer, or Council. Despite the foregoing, litigation in routine collection matters may be commenced upon the request of the applicable Director of the applicable Department or Division to which the account is owed. Prosecutions and law enforcement proceedings shall be in the discretion of the City Solicitor or designate. In urgent or emergency circumstances, the City Solicitor shall have the option to unilaterally commence any proceeding where the protection of the City’s interest requires the commencement of a proceeding and it is impractical under the circumstances to obtain approval from the applicable Commissioner, the Chief Administrative Officer, or Council. Other documents required in the prosecution or continuation of proceedings as required in the discretion of the City Solicitor, according to normal practices and usual authority to solicitors acting in litigious matters. Determination by City Solicitor or Consents to Applications for Title City Solicitor. designate that City’s interest will not Absolute or First Registration be adversely affected.
Finance & Strategic Planning Page 115 of 162 November 16, 2015 Committee Meeting 7
` Type of Document Staff Position Authorized Terms, Conditions, Pre- To Execute Document Requisites or Other Conditions Which Must Be Satisfied Prior to Execution
Undertaking, Statutory Declarations, City Solicitor. Transaction must have been Affidavits and other documents authorized by Council unless it is for required in connection with real acquisition of lands pursuant to estate or other transactions. planning and development approvals under the Planning Act, including decisions of the Committee of Adjustment.
Consent to the transfer, mortgage or Mayor and Clerk. Written confirmation by the sale of part of an industrial parcel. Commissioner of Community Services, the Director of Economic Development and the City Solicitor that the transfer, mortgage, charge, financing agreement or sale are part of a scheme to develop an industrial building on industrial lands on which all construction has been completed in accordance with covenants in favour of the City and that:
The Transfer is for the purpose of effecting a severance and is from the registered owner to the same registered owner. The mortgage, charge or other financing is for the construction of an industrial building on the land, or The sale is of a completed industrial building having a ground floor area of at least 10 percent of the area of the land being conveyed or such other ground floor area determined by Council policy.
Finance & Strategic Planning Page 116 of 162 November 16, 2015 Committee Meeting 8
Schedule ‘C’ – Integrated Planning & Public Works – Planning & Building
Type of Document Staff Position Authorized Terms, Conditions, Pre- To Execute Document Requisites or Other Conditions Which Must Be Satisfied Prior to Execution
Site Plan Agreement Director of Planning Approvals. Subject to By-law No. 2013-124
Agreements related to Condominium Director of Planning Approvals. According to By-law No. 2014-086 Applications
Agreements or documents relating to Director of Planning Approvals or By-law No. 2011-087 Applications or Decisions of the his/her designate. Committee of Adjustment
Heritage Permits for minor or Director of Growth Management. Report IPPW-2011-058 emergency alterations to properties designated under The Ontario Heritage Act.
Demolition Control Permits for Chief Building Official According to By-law No. 2013-014 residential properties.
Conditional Building Permit Chief Building Official In a form satisfactory to the City Agreements, Limiting Distance Solicitor. Agreements
Finance & Strategic Planning Page 117 of 162 November 16, 2015 Committee Meeting 9
Schedule ‘D’ – Integrated Planning & Public Works – Engineering, Utilities & Easements
Type of Document Staff Position Authorized Terms, Conditions, Pre- To Execute Document Requisites or Other Conditions Which Must Be Satisfied Prior to Execution
Encroachment agreements. Mayor and Clerk. Upon the written recommendation of the Director of Engineering or Director of Water Services. Form of licence agreement to be approved by City Solicitor or designate.
Licence agreement for the Mayor and Clerk. Upon the written recommendation of encroachment of sidewalks for the Director of Engineering, or sidewalk cafes or sidewalk sales. Director of Transportation. Form of licence agreement to be approved by City Solicitor or designate.
Teranet Releases of subdivision City Solicitor or Law Clerk Upon the written recommendation of agreements, condominium the Director of Planning Approvals agreements and development including either of the following agreement. statements: (a) That the agreement has not been declared in default and all public services have been accepted for maintenance purposes; or, (b) That the agreement has not been declared in default and the developer has deposited sufficient funds with the City to provide for public services not completed but required by the agreement. Form of document to be approved by City Solicitor or designate.
Sewage service rate rebate Mayor and Clerk. Upon the written recommendation of agreements and sewer surcharge the Commissioner of Integrated agreements. Planning & Public Works, including a statement that the rebate is being determined in accordance with the provisions of the regulating by-law.
Finance & Strategic Planning Page 118 of 162 November 16, 2015 Committee Meeting 10
Type of Document Staff Position Authorized Terms, Conditions, Pre- To Execute Document Requisites or Other Conditions Which Must Be Satisfied Prior to Execution
Acceptance of underground public Director of Engineering. Council notification after the receipt services in subdivisions. of all of the following; Lapsing of the one-year maintenance period. Written notification from a consulting engineer that all deficiencies have been corrected. Receipt of statutory declaration from developer that all accounts for work have been paid and that there are no outstanding claims or unsatisfied liens. Confirmation from Legal Department that there are no outstanding construction liens affecting the City’s interest.
Storm sewer maintenance Director of Engineering or Director Form of Agreement to be approved agreements. of Water Services. by City Solicitor or designate, provided there is compliance with the Purchasing By-law.
Finance & Strategic Planning Page 119 of 162 November 16, 2015 Committee Meeting 11
Schedule ‘E’ – Community Services
Type of Document Staff Position Authorized Terms, Conditions, Pre- To Execute Document Requisites or Other Conditions Which Must Be Satisfied Prior to Execution
Agreements & Documents relating Commissioner of Community Subject to By-law No. 09-087, to Facility Rentals, Cemetery Services or his/her delegate as provided there is compliance with Services and Donor or Fundraising defined in By-law No. 09-087. the Purchasing By-law. Agreements not exceeding financial implications of more than $100,000.00 per fiscal year.
All Sponsorship Agreements - Up to $15,000 Any Manager Any Manager, with consent of that individual’s applicable Manager or Supervisor
- between $15,001 and Mayor and Clerk Manager of Marketing, with consent $25,000 of applicable Manager or Supervisor, in form approved by City Solicitor
- between $25,001 and Mayor and Clerk $50,000 Director of Communications with consent of that individual’s applicable Manager or Supervisor, in form approved by City Solicitor - between $50,001 Mayor and Clerk $100,000.00 per year and Commissioner of Community not including naming rights Services with consent of the Chief to City facilities; Financial Officer in form approved by City Solicitor - above $100,000.00 per year Mayor and Clerk or involving naming rights CAO approval or Council authority to City facilities if required in the opinion of CAO
• All sponsorship must be in accordance with Policy A-016, Sponsorship and Advertising Policy.
Finance & Strategic Planning Page 120 of 162 November 16, 2015 Committee Meeting 12
Schedule ‘F’ - Information Management & Technology Services
Type of Document Staff Position authorized to Terms, Conditions, Pre- Execute Document Requisites or Other Conditions Which Must be Satisfied Prior to Execution
Non-disclosure Agreements for City Director of Information Form of Agreement approved by to obtain information. Management and Technology City Solicitor. Services.
Non-disclosure Agreements where Director of Information Form of Agreement approved by City provides information. Management and Technology City Solicitor. Services. Software licensing Director of Information Must be within Director’s approved Agreements Management and Technology budget and Form of Agreement Services. approved by City Solicitor, provided there is compliance with the Purchasing By-law. Software developing Agreements. Director of Information Must be within Director’s approved Management and Technology budget and Form of Agreement Services. approved by City Solicitor, provided there is compliance with the Purchasing By-law. Data training agreement with Director of Information Form of Agreement approved by another public authority Management and Technology City Solicitor. Services.
Finance & Strategic Planning Page 121 of 162 November 16, 2015 Committee Meeting 13
Schedule ‘G’ - Finance
Type of Document Staff Position authorized to Terms, Conditions, Pre- Execute Document Requisites or Other Conditions Which Must be Satisfied Prior to Execution
Grant Applications & Mayor & Clerk Corporate Management Team Documents (where City Approval and compliance with applies for Grants) Grant Policy FC-004, revised - Financial Commitment Oct. 15/12. required by the City up to $100,000.00 Council Approval & - More than $100,000.00 Mayor & Clerk Compliance with Grant Policy FC-004.
Time Sensitive Grant CAO or its delegate At the request of the Director Applications where of Finance or Commissioner unreasonable to obtain further of the relevant department and authority within time frame in a form to the satisfaction of and where no binding the City Solicitor. financial commitment flowing from application or where application is merely an EOI
Minutes of Settlement and all Director of Finance Form to the satisfaction of other agreements relating to Municipal Property assessment appeals and ARB Assessment Corporation decisions. (MPAC)
Items exempt from Purchasing Director of Finance Form to the satisfaction of the Bylaw as per schedule A shall Commissioner of Corporate follow thresholds set out in Services/CFO Schedule H of this Bylaw except for the following items when they exceed $100,000 • Debenture payments • Insurance payments • Refunds • Tax remittances • Employee benefit premium payments
Finance & Strategic Planning Page 122 of 162 November 16, 2015 Committee Meeting 14
Type of Document Staff Position authorized to Terms, Conditions, Pre- Execute Document Requisites or Other Conditions Which Must be Satisfied Prior to Execution
• Mortgage/loan payments • Payments to local boards • Revenue collected on behalf of a third party Insurance Releases pertaining Form to the satisfaction of the to awards of damages, Commissioner of Corporate satisfaction of claims, Services/CFO lawsuits, recovery of • That the Director insurance proceeds and costs and a to the City Commissioner, or their designates of • Up to $100,000 the appropriate division or department • Mayor & Clerk
• More than $100,000 Agreements for goods and Form to the satisfaction of the services related to payment Commissioner of Corporate processing Services/CFO • Up to $100,000 Director of Finance • More than $100,000 Mayor & Clerk
Letters of Credit Director of Engineering or Terms to the satisfaction of Draws Director of Planning the CFO and Director of Legal Services
Letters of Credit Releases Manager of Development and -Up to $50,000.00 Engineering Clearance of Agreement Conditions to the satisfaction of the Director of Engineering Director of Engineering -Greater than $50,000.00 Clearance of Agreement Conditions to the satisfaction of the Director of Engineering Investments Director of Financial and Form to the satisfaction of the Planning and Purchasing and Commissioner of Corporate CFO Services/CFO
Finance & Strategic Planning Page 123 of 162 November 16, 2015 Committee Meeting 15
Finance & Strategic Planning Page 124 of 162 November 16, 2015 Committee Meeting 16
Schedule ‘H’ – Procurement of Goods & Services
Commitment Staff Positions Staff Positions Terms, Conditions, Authority Limit authorized to Approve Authorized to Pre-Requisites or (Includes the value of all Commitment Execute Other Conditions to cumulative contract changes. Contracts be Satisfied Prior to CAO is the highest approval level required for contract Supporting Execution changes provided amended Commitment contract value is within the limits of council approved budget. If not, Council must approve the contract change) Purchase of goods and Manager of the appropriate CAO Procurement according to services up to $25,000 division (Supervisor may Purchasing By-law and approve only in instances within approved budget. where a division does not have a Manager role) Form of agreement approved by City Solicitor. Purchase of goods and Director of the applicable CAO up to $75,000 Procurement according to services greater than division AND Director of Purchasing By-law and $25,000 up to, and including Financial Planning & Mayor and the City within approved budget. $100,000.00 Purchasing Clerk > $75,000 Subject to legal, financial and departmental approval. For contracts < $100K legal approval from the City Solicitor may be waived by the Director of Finance and Purchasing.
Form of agreement approved by City Solicitor. Purchase of goods and Commissioner of applicable Mayor and the City Procurement according to services greater than department AND Director of Clerk Procurement By-law and $100,000.00 up to and Financial Planning & within approved budget. including $200,000.00. Purchasing Subject to legal, financial and departmental approval.
Provided lowest compliant bidder or highest scoring compliant proponent awarded. If not, Audit Committee must review and Council must approve the award.
Form of agreement approved by City Solicitor.
Finance & Strategic Planning Page 125 of 162 November 16, 2015 Committee Meeting 17
Schedule ‘H’ – Procurement of Goods & Services Con’t.
Commitment Staff Positions Staff Positions Terms, Conditions, Authority Limit authorized to Approve Authorized to Pre-Requisites or (Includes the value of all Commitment Execute Other Conditions to cumulative contract changes. Contracts be Satisfied Prior to CAO is the highest approval level required for contract Supporting Execution changes provided amended Commitment contract value is within the limits of council approved budget. If not, Council must approve the contract change) Purchase of goods and CAO AND Director of Mayor and the City Procurement according to services greater than Financial Planning & Clerk Procurement By-law and $200,000 up to and Purchasing. within approved budget. including $600,000.00. Subject to legal, financial and departmental approval.
Provided lowest compliant bidder or highest scoring compliant proponent awarded. If not, Audit Committee must review and Council must approve the award.
Purchases of goods and Council [During the months Mayor and the City Procurement according to services greater than of July and August, the Clerk Procurement By-law and $600,000 [except the Mayor and CAO, jointly] within approved budget. purchase of Highway Construction Services, as Subject to legal, financial defined in the Purchasing and departmental approval. By-Law]. Highway Construction Services over Audit Committee shall $1,000,000. review all purchases over $600,000 [except the purchase of Highway Construction Services, as defined in the Purchasing By-Law]. The Audit Committee shall review all purchases of Highway Construction Services over $1,000,000. Any comments from the Audit Committee shall be forwarded to Council for its review and consideration.
Provided lowest compliant bidder or highest scoring compliant proponent awarded. If not, Audit
Finance & Strategic Planning Page 126 of 162 November 16, 2015 Committee Meeting 18
Commitment Staff Positions Staff Positions Terms, Conditions, Authority Limit authorized to Approve Authorized to Pre-Requisites or (Includes the value of all Commitment Execute Other Conditions to cumulative contract changes. Contracts be Satisfied Prior to CAO is the highest approval level required for contract Supporting Execution changes provided amended Commitment contract value is within the limits of council approved budget. If not, Council must approve the contract change) Committee must review and Council must approve the award.
Form of agreement shall be approved by City Solicitor.
Finance & Strategic Planning Page 127 of 162 November 16, 2015 Committee Meeting 19
Schedule ‘H’ – Procurement of Goods & Services Con’t.
Terms, Conditions, Pre- Type of Document Staff Positions authorized to Requisites or Other Conditions Execute Document to be Satisfied Prior to Execution
Non-disclosure Agreements Director of Financial Planning & Form of agreement shall be approved by where City provides Purchasing City Solicitor. information as part of a procurement
Finance & Strategic Planning Page 128 of 162 November 16, 2015 Committee Meeting MEMORANDUM
TO: Mayor and Members of Council
CC: Members of the Audit Committee
FROM: Frank Mensink, Chair Audit Committee
DATE: November 5, 2015
RE: Audit Committee Resolution
The following resolution was passed at the November 5, 2015 Audit Committee Meeting:
Council Report: CORP2015-109 Delegation of Authorities By-law
That on November 5, 2015 the City of Waterloo Audit Committee reviewed the By-law to Delegate Authority to Execute Documents, including Schedule H, thereto, which contains tiered authorities previously contained within the Purchasing by-law. It is recommended the Delegation of Authorities By-law be approved.
Finance & Strategic Planning Page 129 of 162 November 16, 2015 Committee Meeting 1 Corporate Services
STAFF REPORT Corporate Services
Title: Amended Purchasing By-Law Report Number: CORP2015-087 Author: Tracie Bell, Manager of Purchasing Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: November 16, 2015 File: [File] Attachments: Amended Purchasing By-Law Ward No.: N/A
Recommendation:
1. That CORP2015-087 be approved. 2. That By-Law #2011-043 (Last amended by By-Law No. 2012-083, August 13, 2012) be repealed. 3. That Council adopt the attached by-law, being a new by-law to establish policies for the procurement of goods services by the City.
A. Executive Summary
The Municipal Act requires that all municipalities adopt and maintain policies with respect to the procurement of goods and services.
A review of the City’s Purchasing By-Law has been undertaken and resulted in amendments to establish clear roles and responsibilities, incorporate administrative changes, and to create greater efficiencies in the purchasing process while, maintaining compliance with legislative requirements.
B. Financial Implications
There is no direct financial impact as impact is administrative and operational.
C. Technology Implications
None
Finance & Strategic Planning Page 130 of 162 November 16, 2015 Committee Meeting 2 Corporate Services
D. Legal Considerations
Director of Legal Services has been consulted and was a member of the review team.
E. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)
There are links to all Strategic Priorities. Creating efficiencies in the purchasing process enables staff to utilize their time to implement priority projects.
F. Previous Reports on this Topic
None
G. Approvals
Name Signature Date Author: Tracie Bell, Manager of
Purchasing Director: Financial Planning and
Purchasing Commissioner: Keshwer Patel Finance: Keshwer Patel
CAO
Finance & Strategic Planning Page 131 of 162 November 16, 2015 Committee Meeting 3 Corporate Services
Amended Purchasing By-Law CORP2015-087
Section 1 – Background
The City is committed to ensuring that its procurement of goods and services is undertaken in the most economical and efficient manner through a process that is fair, open, transparent and in compliance with, at a minimum:
• The Municipal Act; • Statutory and common law rules; • Administrative policies and directives; • The Agreement on Internal Trade (Annex 502.4); • Municipal Freedom of Information and Protection of Privacy Act; • Business Discriminatory Act; and • Trade Cooperation Agreement between Ontario and Quebec.
A review team facilitated by Tracie Bell, Manager of Purchasing was established to review and discuss revisions to the Purchasing By-Law to address operational efficiencies and improvements, improve interpretation and strengthen its commitment. This comprehensive review was undertaking by a review team comprised of the following individuals:
Filipa Reynolds, Director of Financial Planning and Purchasing Ron Ormson, Director, Engineering and Construction Sunda Siva, Director, Facilities and Fleet Eckhard Pastrik, Director, Environment and Parks Services Roslyn Lusk, Director, Transportation Services Richard Hepditch, Fire Chief Fire Rescue Services Steve Ross, Director, Legal Services
These review team members: • represent a cross section of City Departments (IPPW, Community Services; Corporate Services); • have unique purchasing requirements (Vendors of Record, Cooperative Purchasing); • oversee divisions that undertake high value / high volume purchases; and • provide subject matter expertise.
Finance & Strategic Planning Page 132 of 162 November 16, 2015 Committee Meeting 4 Corporate Services
Several meetings were held to review all clauses / sections of the by-law. Below is a summary of the recommendations from the team that have been incorporated into the amended By-Law
Amendments to the Purchasing By-Law were also considered by the City’s Audit Committee on November 5th, 2015 and their recommendation is attached.
Section 2 – Summary of Amendments
Changes technical or administrative in nature in order to:
• establish clear roles and responsibilities (include a role for City Solicitor in the Responsibilities and Authorities section 5); • incorporate administrative changes (changing references from General Manager to Commissioner; ensure consistent references to defined terms exist throughout the document); • enhance efficiencies in the purchasing process (clearly defining procurement methods and adding reference to Vendor of Record arrangements); and • provide clarity of intent (enhanced definition section 3 to include items such as Authority Limit, Change Order, Commitment Approval).
More substantive changes include:
1. Removal of existing Section 7 - Signing Authority which governs the authority for committing and spending of approved funds and the signing of contract documents from the Purchasing By-Law and include in the newly created By-Law to Delegate Authority to Execute Documents (“Delegations By-Law”). Section 7 has been renamed Purchasing Approvals and reference made to the newly established Delegations By-Law.
In addition, the new Delegations By-Law:
• Increases the existing thresholds for Manager Level approval up to $25,000. Managers currently have authority to approve spend up to $10,000 and this increase aligns with the increased threshold for a low cost purchase.
• Incorporates an authority level for the approval of Change Orders. The current Purchasing By-law is silent on authority limits for change orders. The Delegations By-Law provides contract changes be approved based on their cumulative value, up to the defined approval levels, with CAO being the highest approval level, provided expenditure is within the approved project budget. This would mean that if a contract value is within the manager approval level, any increases would be approved at a manager level provided they cumulatively remained within the manager’s approval limit. Should cumulative increases raise the value of a contract
Finance & Strategic Planning Page 133 of 162 November 16, 2015 Committee Meeting 5 Corporate Services
to the next approval level, that increase, and all subsequent increases would need to be approved by the Director, until the Director’s threshold was met etc. up to the CAO level.
• Increases the monetary threshold for purchases that require Council approval from $500,000 ($1,000,000 for Highway Construction Services) to $600,000 (to remain $1,000,000 for Highway Construction Service) to align with the amended Audit Committee levels detailed below. Section 6 of the by-law outlines additional instances where Council approval would be required, namely:
o Any contract prescribed by statute to be made by Council; o Any contract that includes third party financing as part of the acquisition of Goods and Services; o Any contract where this by-law is being waived; o Any contract where Council has expressly directed staff to report prior to an award; o Any contract where the authority to approve has not been expressly delegated; and o Any contract where a submission in response to a call for bid contains an irregularity not resolved by “Schedule “B” of this by-law and which was not able to be otherwise resolved by the Purchasing Department. o Any contract for a single or sole source purchase, except where permitted in Schedule C and Sections 15 and 16 of this by-law.
Staff will continue to provide a quarterly report to Council summarizing contracts approved by the appropriate delegated City staff.
2. Section 8 – Audit Committee has been amended to increase the threshold of projects requiring Audit Committee recommendation from $500,000 ($1,000,000 for Highway Construction Services) to $600,000 (to remain $1,000,000 for Highway Construction Service). The $500,000 approval requirement was implemented in 2003. Since that time, project values have increased (based on CPIX) by 23%. This increase represents a 20% increase.
Section 8 – Audit Committee has also been amended to include a requirement that contract awards that may pose a risk to the City be reviewed by the Audit Committee. Examples of these types of risk are:
. Any contract where the recommended award is not to the lowest compliant bid (in the case of an RFQ, RFT), or highest scoring compliant proponent, (in the case of an RFP);
. Any contract where a legal review has highlighted possible risks with the recommended award;
Finance & Strategic Planning Page 134 of 162 November 16, 2015 Committee Meeting 6 Corporate Services
. Any contract that includes third party financing as part of the acquisition of Goods and Services; and/or
. Any contract where a response to a call for Bid contains an irregularity not resolved by Schedule “B” of the by-law and which was not able to otherwise be resolved by the Purchasing Department.
3. Section 14 – Emergency Purchases has been amended to reduce the implied joint approval requirement and to allow “any of” the CAO, CFO, the Director of Purchasing or a Commissioner to approve an emergency purchase as it was neither practical nor realistic in an emergency situation to obtain joint approvals. A definition for Emergency has been included in the definitions section to clarify when this could occur.
“Emergency” means a sudden, unexpected or impending occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential services.”
4. Sections 15 and 16 - Sole/Single Source Purchases:
a. have been clarified to indicate that a low cost purchases may be acquired without undertaking a competitive procurement up to the allowable threshold for low cost purchase ($25,000);
b. has been enhanced to define instances where sole/single source purchases that exceed the allowable low cost threshold may still be permitted under purchasing legislation, provided appropriate supporting rationale is provided, that in the opinion of the Director of Purchasing, in consultation with the Director of Legal Services or, if a request for an escalation is made, in the opinion of the Corporate Management Team, confirms that the request meets the exceptions as set out in these sections;
c. has clarified that sole/single source purchases as set out in a. and b. above do not require further Council approval. The current by-law is contradictory as it establishes when sole/single source purchases are allowable but also requires that all sole single source purchases obtain Council approval. As currently written, this would include low cost purchases which is not practical nor an efficient use of staff or Council time. This additional flexibility reduces the ambiguity that was contained in the approvals sections, and will allow projects meeting the allowable exceptions to be expedited. Single/Sole source purchases not meeting the exceptions details in a. and b. above would continue to require Council approval.
Finance & Strategic Planning Page 135 of 162 November 16, 2015 Committee Meeting 7 Corporate Services
5. Section 21 Consulting Services has been amended to:
a. increase the threshold as to when a RFP is required from the current $20K to $25K. This is to align with increase to the low cost purchase threshold from $20K to $25K;
b. introduce an ability to include a requirement that minimum technical score be met in order for a proponent to have its fee considered and to move forward in the evaluation process. This amendment would assist the City in ensuring that it hires firms with sufficient technical expertise rather than award to firms with low technical scores who may have misunderstood the services required and/or provided a weak methodology for completion and therefore submitted a low price.
6. Schedule “C” Thresholds of Procurement has been amended to:
a. Increase the threshold for a low cost purchase that can be procured non- competitively from $20K to $25K. This creates efficiencies in the purchasing process as it allows staff to quickly procure items of a low cost value and focus on their day-to-day responsibilities. When undertaking a low cost purchase staff should consider, where possible, the total expenditure of the same item by any Division of the City over a calendar year.
b. Increase the threshold for when advertising is discretional (allowing invitational purchases by obtaining a minimum of 3 quotes) from $50,000 to $100,000. This will expedite the purchasing process as it can limit open market timelines and would reduce the volume of evaluations being undertaken for relatively low cost goods and services thereby reducing staff time and expediting projects. Staff would still be required to work with the Purchasing Department to undertake these purchases.
c. Include reference to Vendor of Record thresholds for invitation. Establishing Vendor of Record arrangements for the delivery of services streamlines the procurement process. Upfront work to qualify vendors for a period of time can allow staff to obtain price only when there is a requirement for services or contract directly with a vendor.
Finance & Strategic Planning Page 136 of 162 November 16, 2015 Committee Meeting
By-Law #2015-
Being a by-law to establish policies for the procurement of Goods and Services by the City
November, 2015
1 Finance & Strategic Planning Page 137 of 162 November 16, 2015 Committee Meeting Table of Contents
Section Page Number 1. PURPOSES, GOALS, AND OBJECTIVES ...... 3 2. APPLICATION OF BY-LAW...... 4 3. DEFINITIONS ...... 5 4. INTERPRETATION ...... 7 5. RESPONSIBILITIES AND AUTHORITY ...... 7 6. PRESCRIBED COUNCIL APPROVAL ...... 9 7. PURCHASING APPROVALS ...... 9 8. AUDIT COMMITTEE ...... 9 9. PROCUREMENT PROCESS ...... 10 10. REQUIREMENT FOR APPROVED FUNDS ...... 10 11. STANDARD PROCUREMENT METHODS ...... 10 12. ALTERNATE PROCUREMENT METHODS ...... 12 13. NEGOTIATION ...... 12 14. EMERGENCY PURCHASES ...... 13 15. SOLE SOURCE PURCHASE ...... 14 16. SINGLE SOURCE PURCHASE ...... 15 17. LOCAL OR GEOGRAPHICAL PREFERENCE ...... 16 18. BID ADMINISTRATION ...... 16 19. CO -OPERATIVE PURCHASING...... 16 20. IN -HOUSE WORK ...... 17 21. CONSULTING SERVICES ...... 17 22. ACCESS TO INFORMATION ...... 18 23. DISPOSAL OF SURPLUS PROPERTY ...... 18 24. TIE BIDS ...... 19 25. SUPPLEMENTARY POLICIES ...... 19 26. NO LOBBYING ...... 19 27. DONATIONS ...... 19 28. SHORT TITLE ...... 19 29. REPEAL ...... 20 30. ENACTMENT...... 20 31. SCHEDULE “A” ...... 21 32. SCHEDULE “B” ...... 23 33. SCHEDULE “C” ...... 25
2 Finance & Strategic Planning Page 138 of 162 November 16, 2015 Committee Meeting
BY-LAW # 2015-
BEING A BY-LAW TO ESTABLISH POLICIES FOR THE PROCUREMENT OF GOODS AND SERVICES BY THE CITY
WHEREAS section 270(1)(3) of the Municipal Act 2001, S.O. 2001, c. 25, as amended (the “Act”), requires all municipalities to adopt and maintain a policy with respect to the procurement of Goods and Services;
AND WHEREAS The Corporation of the City of Waterloo (the “City”) is committed to ensuring its procurement decisions are fair, open and transparent;
AND WHEREAS purchases made by the City should reflect best value for the taxpayer, protect the City’s financial interests and encourage competitive Bidding;
AND WHEREAS the City should be prepared to manage extraordinary circumstances from time to time, and that such circumstances may require immediate procurement decisions that are necessary to prevent or alleviate serious delay, a threat to public health, safety or welfare, the disruption of essential services or damage to public property or to respond to an emergency or as required under the provincial Emergency Management and Civil Protection Act, R.S.O. 1990, c. E.9, as amended;
AND WHEREAS effective planning, monitoring and control of Broader Public Sector procurement is essential for maintaining public trust and confidence;
NOW THEREFORE the Council of The Corporation of the City of Waterloo enacts as follows:
1. PURPOSES, GOALS, AND OBJECTIVES
1.1 The purposes, goals, and objectives of this by-law and of each of the methods of procurement authorized herein are:
1.1.1 To establish standard rules governing the procurement of Goods and Services by City staff;
1.1.2 To obtain the best value for the City when procuring Goods and Services;
1.1.3 To ensure consistency and fairness amongst Bidders during the procurement process;
1.1.4 To the extent possible, ensure openness, accountability and transparency while protecting the financial best interests of the City;
3 Finance & Strategic Planning Page 139 of 162 November 16, 2015 Committee Meeting
1.1.5 To avoid conflicts between the interests of the City and those of the City’s employees and members of Council;
1.1.6 To specify roles and responsibilities of individuals, divisions and departments through the procurement process;
1.1.7 To promote respect for human rights, international and inter-provincial trade treaties or agreements and fair labour practices;
1.1.8 To encourage, whenever possible, the procurement of Goods and Services with due regard to the conservation of a natural environment;
1.1.9 To promote and incorporate the requirements of the Accessibility for Ontarians with Disabilities Act, 2005, S.O. 2005, c. 11, as amended (the “AODA”) in procurement activities of the City as well as any requirements contained in other legislation (either provincial or federal) which may impact the procurement activities of the City;
1.1.10 To support effective business planning such that Goods and Services will only be acquired after consideration of need, alternatives, timing and appropriate life cycle management issues; and,
1.1.11 To comply with the requirements of the Act.
2. APPLICATION OF BY-LAW
2.1 This by-law shall apply to purchases by staff in all departments of the City, including Committees of the City with designated budgets who must coordinate with City staff to facilitate any purchase of Goods or Services.
2.1.1 Notwithstanding section 2.1, this by-law shall not apply:
2.1.1.1 to the purchase of those Goods and Services set out in Schedule “A”; and
2.1.1.2 where the City is engaged in Co-operative Purchasing and where another government agency or member of the Broader Public Sector is purchasing Goods and Services on the City’s behalf.
2.2 All purchases of Goods and Services shall be compliant with this by-law and with the City’s Employee Code of Conduct and Ethics Policy.
2.3 No contract for Goods and Services shall be structured in such a manner so as to circumvent any intent or thresholds of this by-law.
2.4 No purchase shall be processed for personal items of direct benefit to employees of the City or any member of Council except where permitted by this by-law, City policy or under the auspices of a City-sponsored employee program.
2.5 No Goods or Services shall be purchased from an employee of the City, except where permitted under this by-law.
4 Finance & Strategic Planning Page 140 of 162 November 16, 2015 Committee Meeting 3. DEFINITIONS
3.1 In this by-law:
3.1.1 “Audit Committee” means a committee of Council established by resolution on March 17, 2003, and more specifically outlined in its Terms of Reference, to review and comment upon the City’s procurement process, as outlined in this by- law, including any supplementary policies thereto;
3.1.2 “Authority Limit” means the maximum monetary value delegated to specific staff positions or Council.
3.1.3 “Bid” includes a Bid, proposal, quotation and tender;
3.1.4 “Bid Bond” means a written guaranty from a third party guarantor submitted to a principal (client or customer) by a Contractor (Bidder) along with a Bid which insures against non-performance of the Bid document’s requirements on the acceptance of a Bid;
3.1.5 “Bid Irregularity” means a deviation from the requirements of a call for Bid;
3.1.6 “Bidder” means one who submits a response to a call for Bid and includes those submitting a response to a call for proposal, quotation or tender;
3.1.7 “Broader Public Sector” includes municipalities, academic, schools and hospitals;
3.1.8 “Change Order” means a change to an authorized commitment with a corresponding change in value of a contract or Purchase Order, documented through a change order, contract amendment or similar document.
3.1.9 “Chief Administrative Officer” or “CAO” means the Chief Administrative Officer of the City or his or her designate;
3.1.10 “Chief Financial Officer” or “CFO” means the Chief Financial Officer and Treasurer of the City or his or her designate;
3.1.11 “City Solicitor” means the Director of Legal Services, or his or her designate, or outside legal counsel as determined by the Director of Legal Services from time to time;
3.1.12 “City” means The Corporation of the City of Waterloo;
3.1.13 “Commissioner” means a person with administrative responsibilities for a department of the City, or his or her designate;
3.1.14 “Commitment Approval” means the authorization to use approved budgeted funds up to an allowable Authority Limit but does not include the authority to sign any contract, except where permitted by an Execution By-Law other City policy;
3.1.15 “Contractor” means a person or firm having a contract with the City to furnish Goods and Services;
3.1.16 “Construction” means the process of building, altering, repairing, improving or demolishing any structure, building or public improvement, including Information Technology infrastructure;
5 Finance & Strategic Planning Page 141 of 162 November 16, 2015 Committee Meeting 3.1.17 “Consultant” means a person or firm that provides Consulting Services;
3.1.18 “Consulting Services” means the provision of expertise or strategic advice that is presented for consideration and decision-making;
3.1.19 “Co-operative Purchasing” means the process by which two (2) or more government agencies or members of the Broader Public Sector purchase Goods and Services collectively;
3.1.20 “Corporate Management Team” or “CMT” means the group consisting of the CAO and the Commissioners of all departments which, for greater certainty, includes the CFO;
3.1.21 “Council” means the Council of the City;
3.1.22 “Department” means a collection of divisions under the control of a Commissioner of the City;
3.1.23 “Director” means a Director, the City Clerk or a Deputy Fire Chief of the City, or his or her designate, who is responsible for a specific division;
3.1.24 “Director of Purchasing” means the Director of Financial Planning and Purchasing of the City, or his or her designate, who is under the general direction of the Chief Financial Officer;
3.1.25 “Division” means a part of a department of the City;
3.1.26 “Emergency” means a sudden, unexpected or impending occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential services.
3.1.27 “Goods” means personal property (including the costs of installing, operating, maintaining or manufacturing such personal property) and includes raw materials, products, equipment and other physical objects of every kind and description whether in solid, liquid, gaseous or electronic form, unless they are procured as part of a general construction contract;
3.1.28 “Goods and Services” “Goods or Services” means all Goods and/or services including Construction, Highway Construction Services and Consulting Services;
3.1.29 “Highway Construction Services” means those services that the City obtains to adequately and regularly maintain the highways under its jurisdiction and includes the replacement of City services or utilities on or under those highways as well as the City’s bulk purchase of materials such as asphalt or gravel;
3.1.30 “In-House Work” is where the provision of Goods and/or Services will be completed entirely by City staff;
3.1.31 “Purchase Order” means a contractual agreement with a Contractor that specifies payment terms, delivery dates, item identification, quantities, freight terms and all other obligations and conditions;
3.1.32 “Purchase Card” means a card provided by the City to duly authorized City staff to make purchases in compliance with the Purchasing Card Policy;
3.1.33 “Purchasing Division” means the division of the City managed by the Director of Purchasing;
6 Finance & Strategic Planning Page 142 of 162 November 16, 2015 Committee Meeting
3.1.34 “Surplus Property” means items no longer having a use to the City and shall include furniture, vehicles, equipment, supplies, and other Goods or materials, which are deemed surplus or which have become obsolete, worn out, or otherwise incapable of use.
3.1.35 “Vendor of Record (VOR)” means a competitive procurement arrangement that authorizes one or more vendors qualified to provide Goods or Services for a defined time period on specific terms and conditions, including pricing. A VOR arrangement may be either through Co-operative Purchasing or a City VOR.
3.2 To establish the definition of any other purchasing term not herein included, reference shall be made to the latest edition of the National Institute of Governmental Purchasing Inc. (NIGP) Public Procurement Dictionary of Terms.
3.3 All monetary amounts outlined in this by-law shall, unless otherwise stated, exclude all applicable taxes.
3.4 The monetary thresholds outlined in Schedule “C” shall be consistent with the City’s estimated or budgeted amounts for the specific procurement or project, not the amount actually Bid.
4. INTERPRETATION
4.1 Headings contained in this by-law are for reference only.
4.2 Schedule “A” - Purchasing Exemptions is incorporated into and forms a part of this by-law.
4.3 Schedule “B” - Chart of Bid Irregularities or Non-Compliance is incorporated into and forms a part of this by-law.
4.4 Schedule “C” - Thresholds of Procurement Methods is incorporated into and forms a part of this by-law.
5. RESPONSIBILITIES AND AUTHORITY
5.1 Director of Purchasing – The Director of Purchasing is responsible for:
5.1.1 Providing procurement advice and related services including the necessary forms, contracts and Bid document templates that may be required by departments, the CAO and Council for the purposes of fulfilling the procurement needs of the City;
5.1.2 Facilitating all aspects of calls for Bids including opening and ensuring compliance with the terms and conditions of the call for Bid;
5.1.3 Ensuring compliance with this by-law and associated policies and procedures and reporting non-compliance, in writing, to the appropriate Director, Commissioner or CAO, where warranted;
5.1.4 Approve, in consultation with the Director of Legal Services, by-law exception requests made pursuant to sections 15 and 16 herein;
7 Finance & Strategic Planning Page 143 of 162 November 16, 2015 Committee Meeting 5.1.5 The standardization of Goods and Services in conjunction with departments, where appropriate and feasible;
5.1.6 The consolidation of the procurement of all similar Goods and Services where appropriate and possible;
5.1.7 Assisting Divisions with the disposal of Surplus Property;
5.1.8 Acting as the City’s representative in respect of co-operative purchasing initiatives; and,
5.1.9 Complying with the purposes, goals, and objectives of this by-law.
5.2 Commissioners and Directors – Commissioners and Directors are responsible for ensuring that:
5.2.1 all procurement within their respective departments or divisions is in compliance with this by-law and any associated policies and procedures;
5.2.2 no procurement, except for emergency purchases, shall be contrary to Council’s approved budget or any specific direction from the CAO, CFO or Council, unless otherwise authorized by a Council-approved policy;
5.2.3 payments to suppliers are approved for processing within the times set out in the contract, provided the Contractor has met all the conditions of the contract; and,
5.2.4 manage contracts and ensure all Goods and Services contracted for have been received and accepted by the City and maintain appropriate documentation reflecting any approved changes in the terms and conditions of a contract.
5.3 City Solicitor
5.3.1 Create template contracts and updates as required;
5.3.2 Prepare amendments to contracts;
5.3.3 Prepare negotiated contracts for signature;
5.3.4 Review and advise on interpretation of policies and legislation in relation to the Purchasing By-Law;
5.3.5 Provide legal advice and opinions as required in relation to legal issues arising during or as a result of purchasing activities;
5.3.6 Review and provide legal advice and opinion regarding large, complex or unique purchases.
5.4 CAO – The CAO is responsible for ensuring that all City staff complies with this by-law.
8 Finance & Strategic Planning Page 144 of 162 November 16, 2015 Committee Meeting 6. PRESCRIBED COUNCIL APPROVAL
6.1 The following contract awards shall be subject to Council approval:
6.1.1 any contract prescribed by statute to be made by Council;
6.1.2 any contract that includes third party financing as part of the acquisition of Goods and Services;
6.1.3 any contract where this by-law is being waived;
6.1.4 any contract where Council has expressly directed staff to report prior to an award;
6.1.5 any contract where authority to approve has not been expressly delegated;
6.1.6 any contract where a submission in response to a call for Bid contains an irregularity not resolved by Schedule “B” of this by-law and which was not able to be otherwise resolved by the Purchasing Division; or,
6.1.7 any contract for a single or sole source purchase, except where permitted in Schedule C and Sections 15 and 16 of this by-law.
6.2 Council may waive, by resolution, the application of any part of this by-law in respect of any given procurement.
7. PURCHASING APPROVALS
7.1 All Commitment Approvals and subsequent execution of contract documents, including contract changes resulting in increases in contract value must be approved in accordance with the City’s By-Law to Delegate Authority to Execute Documents.
8. AUDIT COMMITTEE
8.1 The following contract awards shall be reviewed by the Audit Committee and any comments it may make shall be forwarded to Council, for its review and consideration:
8.1.1 All purchases over six hundred thousand dollars ($600.000);
8.1.2 any contract that includes third party financing as part of the acquisition of Goods and Services;
8.1.3 Any contract where the recommended award is not to the lowest compliant bid (in the case of an RFQ, RFT), or highest scoring compliant proponent, (in the case of an RFP);
8.1.4 Any contract where a legal review has highlighted possible risks with the recommended award; and/or
9 Finance & Strategic Planning Page 145 of 162 November 16, 2015 Committee Meeting
8.1.5 Any contract where a submission in response to a call for Bid contains an irregularity not resolved by Schedule “B” of this by-law and which was not able to be otherwise resolved by the Purchasing Division.
8.2 Notwithstanding section 8.1 of this by-law, the purchase of Highway Construction Services shall only be reviewed by the Audit Committee if the contract value is in excess of one million dollars ($1,000,000).
9. PROCUREMENT PROCESS
9.1 Procurements shall be undertaken in compliance with the following requirements:
9.1.1 each call for Bid shall be conducted in a fair, open, equitable, consistent and professional manner; and
9.1.2 the call for Bid document shall be publicly advertised, where applicable, in accordance with Schedule “C” to maximize the response potential to the call for Bid.
10. REQUIREMENT FOR APPROVED FUNDS
10.1 The authority to procure Goods and Services or award a contract is subject to the identification and availability of funds in appropriate accounts within Council’s approved budget.
10.2 All purchases which are outside the Council-approved budget shall be subject to the appropriate City budget policy.
11. STANDARD PROCUREMENT METHODS
11.1 Unless otherwise specified in this by-law, Goods and Services shall be purchased or procured in accordance with the methods described in this section and in accordance with Schedule “C” of this by-law.
11.1.1 REQUEST FOR INFORMATION (“RFI”)
11.1.1.1 An RFI may be used to determine the interest of the marketplace to provide Goods or Services which the City is contemplating purchasing.
11.1.1.2 An RFI may be used as a general market research tool to determine what Goods and Services are available and if they meet the City’s business or operational requirements or acquisition strategies.
11.1.1.3 An RFI may request publicly available commodity cost details for the purpose of budget planning or developing a future call for Bid.
11.1.1.4 An RFI does not create a contractual obligation between the City and the interested party.
10 Finance & Strategic Planning Page 146 of 162 November 16, 2015 Committee Meeting
11.1.2 REQUEST FOR PREQUALIFICATION (“RFPQ”)
11.1.2.1 A submission in response to an RFPQ may be made a specific pre- condition of any other procurement procedure utilized by the City.
11.1.2.2 An RFPQ may be conducted for any Goods or Services to determine qualified Bidders for a potential subsequent procurement process.
11.1.2.3 An RFPQ does not create a contractual obligation between the City and the interested party.
11.1.2.4 An RFPQ shall be publicly advertised, as outlined in Schedule “C” of this by-law, in a manner determined by the Director of Purchasing or as outlined in a supplementary policy.
11.1.2.5 Notwithstanding any other provision of this by-law, where there has been an RFPQ, no public advertising shall be required for a subsequent RFQ, RFT or RFP.
11.1.3 LOW COST PURCHASE (“LCP”)
11.1.3.1 A LCP may be conducted for the procurement of Goods and Services having a purchase value up to the limit stated in Schedule “C” of this by-law.
11.1.3.2 A LCP may be made utilizing a purchase order, petty cash, a vendor offered charge account or purchase card or other similar method.
11.1.3.3 A Manager or Director may authorize specific individuals to make LCPs and set monetary limits to that authority, in accordance Schedule “C” of this by-law.
11.1.4 REQUEST FOR QUOTATION (“RFQ”)
11.1.4.1 An RFQ is an invitation for a price, based on the terms and description of Goods and Services described in the RFQ. In the RFQ the scope of work is well defined and award is based on price only after all mandatory requirements have been met as defined in the RFQ.
11.1.4.2 An RFQ may be invitational or publicly advertised, as outlined in Schedule “C” of this by-law, in a manner determined by the Director of Purchasing or as outlined in a supplementary policy.
11.1.5 REQUEST FOR TENDER (“RFT”)
11.1.5.1 An RFT is an invitation for a Bid, based on the terms, and description of Goods and Services described in the RFT. In the RFT the scope of work is well defined and award is based on price only after all mandatory requirements have been met as defined in the RFT. The RFT is used for more complex requirements than those used in the RFQ.
11 Finance & Strategic Planning Page 147 of 162 November 16, 2015 Committee Meeting
11.1.5.2 An RFT shall be invitational or publicly advertised as outlined in Schedule “C” of this by-law, in a manner determined by the Director of Purchasing or as outlined in a supplementary policy.
11.1.6 REQUEST FOR PROPOSAL (“RFP”)
11.1.6.1 A RFP is an invitation to potential Contractors to submit a proposal for the purpose of an award. In the RFP the deliverables may not be well defined but represented by an end result/objective. Bidders are required to submit their approach to a general description of services outlining the objective expected. Pre-determined evaluation criterion is established and Bids are evaluated to determine a highest scoring Contractor based on the best rated score from both technical criteria and price.
11.1.6.2 An RFP shall be invitational or publicly advertised, as outlined in Schedule “C” of this by-law, in a manner set out by the Director of Purchasing or as outlined in a supplementary policy.
11.1.6.3 An RFP may be used in situations where any of the following apply:
11.1.6.3.1 the selection of the successful Bidder depends upon the effectiveness of the proposed solution based on several stated criteria outlined in the proposal;
11.1.6.3.2 where negotiation with one or more Bidders may be required with respect to any aspect of the contract;
11.1.6.3.3 the precise Goods or Services (or the applicable specifications) are unknown or are not definable; or,
11.1.6.3.4 the services required are Consulting Services.
12. ALTERNATE PROCUREMENT METHODS
12.1 UNSOLICITED SUBMISSIONS, PROPOSALS AND OFFERS
12.1.1 All unsolicited submissions, proposals and offers received by the City if being considered shall be directed to the Director of Purchasing for review with the Director or Commissioner of the appropriate division or department for their review.
13. NEGOTIATION
13.1 Negotiation, conducted under the direction of the Director of Purchasing and/or the Purchasing Division, may be used for the procurement of Goods and Services or for any contract when one or more of the following criteria apply:
13.1.1 due to abnormal market conditions, the Goods and Services required are in short supply or market price fluctuations or instability exists;
13.1.2 where only one Bid is received and it exceeds the amount budgeted for the procurement;
12 Finance & Strategic Planning Page 148 of 162 November 16, 2015 Committee Meeting 13.1.3 where extending the existing contract was provided for in the original Bid document;
13.1.4 where a Bid document expressly allow for negotiations to occur;
13.1.5 where extraordinary circumstances exist, as determined by the Director of Purchasing;
13.1.6 where Council has authorized negotiation; or,
13.1.7 where all submitted Bids are non-compliant with the terms of the call for Bid.
14. EMERGENCY PURCHASES
14.1 Notwithstanding any of the provisions of this by-law, Goods and Services may be immediately purchased during an emergency, as determined by any of the CAO, CFO, the Director of Purchasing, or a Commissioner, which includes a circumstance where there is a threat to any of the following:
14.1.1 public health;
14.1.2 the maintenance of essential services or to prevent the disruption of essential services;
14.1.3 the welfare of persons or of public property; or,
14.1.4 the security of the City’s interests.
14.2 Notwithstanding any of the provisions of this by-law, any of the CAO, CFO, the Director of Purchasing, or a Commissioner, shall have the necessary authority to secure any Goods and Services required, in an efficient, expeditious manner for all emergency purchases using a Purchasing Card or Purchase Order. In the case of an after-hours emergency, a Purchase Order will be issued the next regular business day.
14.3 If the value of the emergency purchase exceeds the value of a Low Cost Purchase as outlined in Schedule “C”, as soon as is practicable after an emergency purchase has been made, the appropriate Director or Commissioner shall forward a report to Council outlining:
14.3.1 the nature of the emergency;
14.3.2 why the emergency purchase was necessary;
14.3.3 the method by which the emergency purchase was conducted; and,
14.3.4 the total cost of the emergency purchase, including any budgetary impacts.
13 Finance & Strategic Planning Page 149 of 162 November 16, 2015 Committee Meeting
15. SOLE SOURCE PURCHASE
15.1 A sole source purchase for Goods or Service is a purchase directed to one Contractor because only one Contractor is capable of delivering the Goods or Services.
15.2 Unless allowable pursuant to Schedule “C” of this by-law, a Director may only facilitate and negotiate a sole source purchase if:
15.2.1 The circumstances for the sole source meet one of the allowable exceptions in 15.3 below;
15.2.2 A rationale of how the request represents an allowable exception outlined in 15.3 has been approved by the Director of Purchasing, in consultation with the Director of Legal Services, or if a request for an escalation is made, approved by the Corporate Management Team; and
15.2.3 Proper approvals in accordance with Authority Limits have been obtained.
15.3 A sole source purchase may be conducted for the procurement for Goods or Services of any contract value without the competitive Bid process where only one supplier is able to meet the requirements of a purchase in the following circumstances (allowable exceptions):
15.3.1 To ensure compatibility with existing products, to recognize exclusive rights, such as exclusive licences, copyright and patent rights or to maintain specialized products that must be maintained by the manufacturer or its representatives;
15.3.2 Where there is an absence of competition for technical reasons and the Goods or Services can be supplied only by a particular supplier and no alternative or substitute exists;
15.3.3 For the purchase of Goods or Services the supply of which is controlled by a supplier that is a statutory monopoly;
15.3.4 For the purchase of Goods on a commodity market;
15.3.5 For work to be performed on property by a Contractor according to the provisions of a warranty or guarantee held in respect of the property or the original work;
15.3.6 For a contract to be awarded to the winner of a design contest;
15.3.7 For the purchase of a prototype or a first Good or Service to be developed in the course of and for a particular contract for research, experiment, study or original development, but not for any subsequent purchases;
15.3.8 For the purchase of Goods under exceptionally advantageous circumstances such as bankruptcy or receivership, but not for routine purchases; or
15.3.9 For the purchase or original works of art.
14 Finance & Strategic Planning Page 150 of 162 November 16, 2015 Committee Meeting
16. SINGLE SOURCE PURCHASE
16.1 A single source purchase for Goods or Services is a purchase directed to one source, where other sources may be available.
16.2 Unless allowable pursuant to Schedule “C” of this by-law, a Director may only facilitate and negotiate a single source purchase if:
16.2.1 The circumstances for the single source meet one of the allowable exceptions in 16.3 below;
16.2.2 A rationale of how the request represents an allowable exception as outlined in 16.3 has been approved by the Director of Purchasing in consultation with the Director of Legal Services, or if a request for an escalation is made, approved by the Corporate Management Team; and
16.2.3 Proper approvals in accordance with Authority Limits have been obtained.
16.3 A single source purchase may be conducted for the procurement of Goods or Services of any contract value without the competitive Bid process when any of the following circumstances (allowable exceptions) apply:
16.3.1 there is a need for standardization to maintain functionality or existing service capacity;
16.3.2 for matters involving security or law enforcement;
16.3.3 where a good is purchased for testing or trial use and there is a clearly established deadline for the testing or trial period that does not exceed twelve (12) months;
16.3.4 where the City has a rental contract with a purchase or rental extension option and such purchase or rental extension option may be beneficial to the City, as determined by the Director of Purchasing;
16.3.5 Where an unforeseeable situation of urgency exists and the Goods or Services cannot be obtained in time by means of open procurement procedures. An unforeseen situation of urgency does not occur where the City has failed to allow sufficient time to conduct a competitive process;
16.3.6 Where Goods or Services regarding matters of a confidential or privileged nature are to be purchased and the disclosure of those matters through an open tendering process could reasonably be expected to compromise government confidentiality, cause economic disruption or otherwise be contrary to the public interest;
16.3.7 Where construction materials are to be purchased and it can be demonstrated that transportation costs or technical considerations impose geographic limits on the available supply base, specifically in the case of sand, stone, gravel, asphalt compound and pre-mixed concrete for use in the construction or repair of roads; or
16.3.8 In the absence of a receipt of any bids in response to a Bid made in accordance with the required purchasing methods.
15 Finance & Strategic Planning Page 151 of 162 November 16, 2015 Committee Meeting
17. LOCAL OR GEOGRAPHICAL PREFERENCE
17.1 The City shall comply with the Discriminatory Business Practices Act, R.S.O. 1990, c. D.12, as amended.
18. BID ADMINISTRATION
18.1 BID IRREGULARITIES
18.1.1 Where a Bid is received that includes an irregularity, the City shall follow the protocol as appropriate for the particular irregularity, as outlined in Schedule “B”.
18.2 ONLY ONE BID RECEIVED
18.2.1 In the event only one Bid is received in response to a competitive Bid, the Director of Purchasing may return the unopened Bid to the Bidder. In returning the unopened Bid, the Director of Purchasing shall inform the Bidder that the City may be re-issuing the competitive Bid at a later date.
18.2.2 In the event that only one Bid is received in response to a request for competitive Bid, the Bid may be opened and evaluated.
18.2.2.1 If the Bid does not exceed the amount budgeted, it may be awarded in accordance with this by-law.
18.2.2.2 Where the Bid exceeds the amount budgeted for the procurement, negotiations may be conducted with the only Bidder, in accordance with this by-law.
18.3 EXCLUSION OF BIDDERS IN LITIGATION
18.3.1 The City shall reject all Bids submitted by a Bidder if that Bidder is engaged in a legal action with the City unless waived by the Director of Legal Services.
18.3.2 Council, in its sole and absolute discretion, may waive section 18.3.1.
19. CO-OPERATIVE PURCHASING
19.1 The City may participate with other government agencies or members of the Broader Public Sector in co-operative purchasing initiatives where it is in the best interests of the City to do so.
19.2 The purchasing policies of the originating co-operative (or lead agency) shall form the basis of accepted policy and procedure when participating in, or calling, co-operative Bids and this by-law shall be otherwise waived. The City will review the originating co- operatives’ purchasing policies before entering a co-operative purchasing arrangement.
16 Finance & Strategic Planning Page 152 of 162 November 16, 2015 Committee Meeting 19.3 Notwithstanding any other provision of this by-law, co-operative purchases which are conducted by someone other than the City shall not be subject to review by the Audit Committee, regardless of the purchase values involved.
20. IN-HOUSE WORK
20.1 For any studies, assessments, evaluations, renovations, surveys, construction and any other work involving City-owned lands, infrastructure and facilities the City reserves the right, to conduct such activities using its own staff and resources.
21. CONSULTING SERVICES
21.1 GENERAL
21.1.1 Consulting Services over twenty five-thousand dollars ($25,000) shall be procured by RFP or VOR, unless otherwise directed by the Director of Purchasing.
21.1.2 When evaluating an RFP for consulting services over twenty-five thousand dollars ($25,000), the criteria of “price” shall be scored at least thirty five percent (35%).
21.1.3 Notwithstanding Section 21.1.2, the City may include as part of its evaluation criteria the requirement that a Bidder meet a defined minimum technical score in order to have its Bid considered.
21.1.4 Consultants may be hired in, but not limited to, any the following circumstances:
21.1.4.1 the project requires special knowledge, skills, expertise, experience or available resources which the City does not possess in-house;
21.1.4.2 another organization is partially or wholly funding the project and strict timelines have been placed on the funding; or,
21.1.4.3 the nature of the project is such that it would not be in the public or City’s interest to perform it in-house, as determined by the appropriate Director, in consultation with the CFO and the Director of Purchasing.
21.1.5 Under this section, all consultant proposals procured by RFP shall include, at a minimum:
21.1.5.1 a schedule of fees;
21.1.5.2 a methodology and timetable to complete the project;
21.1.5.3 demonstrated experience and qualifications required to perform the project; and,
21.1.5.4 a list of personnel who will be directly involved in the completion of the project.
17 Finance & Strategic Planning Page 153 of 162 November 16, 2015 Committee Meeting
21.1.6 Proposals for consulting services shall be evaluated by a panel City staff consisting of at least three (3) people, including a minimum of two (2) City staff members familiar with the project or the Goods or Services being acquired.
21.1.7 All of the members of the evaluation panel described in section 21.1.6 of this by- law must participate in the evaluation process and score the proposal.
21.1.8 The liaison Councillor may be invited to join the evaluation panel described in section 21.1.5 of this by-law but, if invited, the liaison Councillor shall comply with section 21.1.6 of this by-law.
22. ACCESS TO INFORMATION
22.1 Disclosure of any information provided to the City via a procurement process shall be made in accordance with the provisions of the Municipal Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c. M.56, as amended.
23. DISPOSAL OF SURPLUS PROPERTY
23.1 Any Surplus Property not required by departments that has a residual value, as determined by the appropriate Director, shall be sold or disposed of in accordance with one of the following methods, as jointly determined by the Director of Purchasing and the appropriate Director:
23.1.1 Call for Bid: If it is determined by the Director of Purchasing and the appropriate Director that the highest return for Surplus Property is by a call for Bid, a Bid shall be issued;
23.1.2 Public auction: If it is determined by the Director of Purchasing and the appropriate Director that the highest return for Surplus Property is by public auction, the Purchasing Division shall arrange for the Surplus Property to be sold at a public auction;
23.1.3 Return to supplier: If it is determined by the Director of Purchasing and the appropriate Director that a higher return net of disposal cost can be achieved by sale or trade-in of the Surplus Property to the original supplier or suppliers in that line of business, the appropriate Director shall sell or trade in such Surplus Property at the highest return;
23.1.4 In accordance with policy: If Council has established a policy in relation to the disposal of certain types of Surplus Property, then the provisions of that policy shall be followed by the Director of Purchasing; or,
23.1.5 The Division may notify community interest, non-profit organizations or other levels of government of the relevant items for disposal and, request they submit to the appropriate Director, a letter of interest.
23.2 Any Surplus Property not required by departments and that has no residual value, as determined by the appropriate Director, shall be disposed of in accordance with one of the following methods, as determined by the Director of Purchasing and appropriate Director:
18 Finance & Strategic Planning Page 154 of 162 November 16, 2015 Committee Meeting
23.2.1 The Division shall notify community interest, non-profit organizations or other levels of government of the relevant items for disposal and, request they submit to the appropriate Director, a letter of interest;
23.2.2 The Divisions may dispose of the items directly through the applicable waste process;
23.2.3 Public auction: the Purchasing Division shall offer the Surplus Property for sale through a public auction.
23.3 No staff member or Councillor of the City shall personally obtain any Surplus Property unless it is obtained through a public process.
23.3.1 Notwithstanding section 23.3, a staff member or Councillor of the City may personally obtain Surplus Property at a price determined jointly by the Director of Purchasing and the Director of Information Management & Technology Services, or his or her designate, without going through a public process if the property being obtained is information technology, such as a computer, laptop, cell phone or Blackberry.
24. TIE BIDS
24.1 In the event that two (2) or more compliant, equal Bids are submitted during a competitive Bid process, the City shall determine the successful Bidder by drawing a Bidder’s name from a receptacle, or by flipping a coin, as determined by the Director of Purchasing.
25. SUPPLEMENTARY POLICIES
25.1 Council may prescribe supplementary policies, not inconsistent with this by-law, relating to the purchasing procedures or policies of the City, as Council deems necessary or expedient.
26. NO LOBBYING
26.1 Unless authorized by the City to do so, no Bidder shall contact any member of Council or any City staff person to attempt to influence the award of a contract. 26.2 If a Bidder contacts any member of Council or any City staff person to attempt to influence the award of a contract, the Bidder shall be disqualified, unless the Bidder’s actions have been authorized by the City.
27. DONATIONS
27.1 The City may accept donations for Goods and Services, at Council’s sole and absolute discretion.
28. SHORT TITLE
28.1 The short title of this by-law shall be the “Purchasing By-Law”.
19 Finance & Strategic Planning Page 155 of 162 November 16, 2015 Committee Meeting
29. REPEAL
29.1 By-Law 211-043 is hereby repealed.
30. ENACTMENT
30.1 This by-law shall come into force and effect upon the day of passing thereof.
PASSED this day of , 2015.
______Dave Jaworsky, Mayor
______Olga Smith, City Clerk
20 Finance & Strategic Planning Page 156 of 162 November 16, 2015 Committee Meeting 31. SCHEDULE “A”
PURCHASING EXEMPTIONS
This by-law does not apply to the following purchases: 1. Training and Education • Conferences, conventions, courses and seminars • External continuing education fees, workshops and seminars • Magazines, books, periodicals and subscriptions • Memberships, association fees or dues 2. Refundable Employees’ Expenses • Advances (Cash) • Meal allowances • Taxi fare charges • Travel, hotel accommodations expenses 3. City’s General Expenses • Bank charges • Charges to and from other government bodies • Collective agreements • Damage claims • Debenture payments • Election expenses • Fees and charges payable to the Federal and Provincial Government • Insurance premiums • Licenses (vehicle, firearms, elevators, communications, etc.) • Postage • Property Rentals • Refunds • Tax remittances • Wages 4. Professional and Special Services • Actuarial services and expenses • Appraisal services • Arbitrator services • Audit services • Brokerage fees and services • Committee fees • Easements, encroachments and licenses • Electronic equipment and ballots for election purposes • Employee benefit premium payments • Honorariums • Insurance claims • Investments • Leases, such as automobile or equipment leases • Legal services • Medical, dental, laboratory and pharmacy fees • Mortgage/loan payments • Payments to local boards • Payroll deduction remittances • Permits certificates acquired through Government agencies
21 Finance & Strategic Planning Page 157 of 162 November 16, 2015 Committee Meeting
• Real estate fees or land transfer taxes • Real estate transactions, including buying, selling or leasing real property • Registry office fees • Research assignments • Revenue collected on behalf of a third party • Witness fees 5. Utilities (monthly charges) • Cable Television • Hydro • Natural Gas • Telephone (excluding cellular) • Water and Sewer 6. Payments to educational institutions 7. Payment to recreation program facilitators or hosts 8. Events or engagements supporting local non-profit organizations 9. Entertainers for theatre or special events 10. Expenses related to an event which it is anticipated will be recovered in full from a third party 11. Any purchases relating, either directly or indirectly, to a site plan agreement, a subdivision agreement or any other agreement or requirement that is specified in the Planning Act, R.S.O. 1990, c. P.13, as amended. 12. Procurement of Goods intended for resale to the public.
For greater certainty, the City Clerk is exempt from this by-law pursuant to the Municipal Elections Act, 1996, S.O. 1996, c. 32, Sched., as amended, in relation to election-related expenses.
22 Finance & Strategic Planning Page 158 of 162 November 16, 2015 Committee Meeting
32. SCHEDULE “B”
CHART OF BID IRREGULARITIES OR NON-COMPLIANCE
Notes: I) The following list of Bid Irregularities should not be considered exhaustive. II) This chart of Bid Irregularities shall apply only where an irregularity exists with respect to a stated requirement of a relevant competitive Bid document (e.g. an RFQ, RFT or RFP) or an RFI issued by the City. III) Where notice of a specified time period to correct an irregularity has been given, and that time period has elapsed without the correction having been made, the Bidder shall be deemed to be in default and, where applicable, the Bid deposit shall be forfeited. The Bid shall be given no further consideration for award.
ITEM IRREGULARITY RESPONSE GENERAL
Bidder, at the time of submission, is not Rejection. 1. registered to carry on business in Ontario Rejection. The submission will not be opened or read publicly. Submission to be returned to Bidder. Should it not be clear as to the 2. Late submissions. Bidder’s name and address then the package will be opened solely to access this information. Rejection unless, in the opinion of the Director of Purchasing, the 3. Unsealed submission package. unsealed submission package did not result in missing information would adversely affect an award decision. Bidder has not been previously qualified under Rejection. 4. a related pre-qualification process, where applicable. Failure to have a representative in attendance Rejection. 5. and registered at a mandatory attendance site/information meeting. Submission not completed in a non-erasable Rejection. 6. medium or signed in ink. Failure to include the Form of Tender, Rejection. 7. Quotation, Proposal or Pre-Qualification, as may be applicable. 8. Omission of a detail indicated to be mandatory. Rejection. Rejection, unless, in the opinion of the Director of Purchasing, the Forms that compose the submission 9. missing information is minor and would not adversely affect an documents are not completed in their entirety. award decision. Conditional Bids (Bids qualified, based on a Rejection, unless, in the opinion of the Director of Purchasing, the 10. Bidder’s condition or restricted by an appended qualification or restriction is minor and would not adversely affect an statement). award decision. Bids containing clerical errors that do not result Two (2) business days to correct and initial. in any ambiguity with respect to the overall 11. submission or award decision, in the opinion of the Director of Purchasing. Two (2) business days to initial changes. The City reserves the right 12. Un-initialed changes to the submission. to waive the initialing requirement and accept the submission as corrected.
23 Finance & Strategic Planning Page 159 of 162 November 16, 2015 Committee Meeting ITEM IRREGULARITY RESPONSE
Signature missing on the Form of Tender, Rejection. 13. Quotation, Proposal or Pre-Qualification, as may be applicable. Failure to include required supplementary Two business days to submit. 14. copies of the original at time of submission. Rejection, unless, in the opinion of the Director of Purchasing, the 15. Failure to acknowledge addenda. failure to acknowledge was an oversight and the contents of the addenda would not adversely affect an award decision. Despite the provisions herein contained, Council may waive any 16. Any irregularity or non-compliance. irregularity or non-compliance. PRICING Failure to include the schedule(s) of items & Rejection. 17. prices, price form or price details, as may be applicable, for inclusion with the submission. Pricing appears to be unbalanced to the extent Rejection. that it may have a significant adverse effect to 18. the City if awarded, in the opinion of the Director of Purchasing. BID DEPOSIT 19. Bid deposit or Bid Bond not submitted with Bid. Rejection. Bid deposit or Bid Bond amount is insufficient Rejection. 20. by more than $1. Surety provider’s or Bidder’s authorized Rejection. 21. signature missing from Bid Bond. Effective period of Bid Bond is less than the Rejection. 22. period set out in the Bid documents. AGREEMENT TO BOND 23. Agreement to bond not submitted with Bid. Rejection. 24. Agreement to bond not in the form specified. Rejection. Agreement to bond amount is insufficient by Rejection. 25. more than $1. Surety provider’s or Bidder’s authorized Rejection. 26. signature missing from agreement to bond. POST AWARD NOTIFICATION Failure to execute required bonding or financial Rejection and Bid deposit forfeiture. 27. security within the prescribed time period. Rejection and Bid deposit forfeiture. Failure to execute a contract within the 28. prescribed period. Rejection and Bid deposit forfeiture. Failure to provide supporting documents, as 29. specified within the Bid document and within the prescribed period.
24 Finance & Strategic Planning Page 160 of 162 November 16, 2015 Committee Meeting 33. SCHEDULE “C”
THRESHOLDS OF PROCUREMENT METHODS
Category Estimated Minimum Procurement Advertising Requirement Purchase Value¹ Methods (excluding tax) Non-Competitive Discretionary - Not Required Low Cost Purchase Up to $25,000 (Purchasing Card, Negotiation or RFQ (Single Source Permitted) – facilitated by Division)
Invitational Competitive Competitive Bids must be solicited from a Over $25,000 Up to $100,000 minimum of 3 Bidders Goods and Services (RFQ, RFT, RFP, RFPQ – facilitated by Purchasing Division) Open Competitive Mandatory Over $100,000
Purchase to be carried out in Not Required Emergency Purchase Any Value accordance with the provisions of this by-law. Any Value Purchase to be carried out in Not Required Single/Sole Source accordance with the provisions of this by-law. Up to $25,000 Non-Competitive Discretionary – Not Required (Single Source Permitted) Vendor of Record (facilitated by Purchasing Division) Over $25,000 As specified in the VOR or if not Competitive Bids must be solicited from a specified, Invitational Competitive minimum of 3 Bidders
¹ Estimated Purchase Value is the factor that determines the appropriate procurement method. In determining the Estimated Purchase Value Divisions should consider the total expenditure of the same item by any Division of the City over a calendar year.
25 Finance & Strategic Planning Page 161 of 162 November 16, 2015 Committee Meeting MEMORANDUM
TO: Mayor and Members of Council
CC: Members of the Audit Committee
FROM: Frank Mensink, Chair Audit Committee
DATE: November 5, 2015
RE: Audit Committee Resolution
The following resolution was passed at the November 5, 2015 Audit Committee Meeting:
Council Report: CORP2015-087 Amended Purchasing By-Law
That on November 5, 2015 the City of Waterloo Audit Committee reviewed the Amended Purchasing By-law. A section by section review of all amendments was undertaken and staff incorporated, based on previous discussions, risk considerations in addition to the monetary thresholds when determining projects requiring Audit Committee review prior to Council approval for award. This aligns with the Committee’s mandate to provide review, oversight and risk assessment on major transactions. It is recommended the Amended Purchasing By-Law be approved.
Finance & Strategic Planning Page 162 of 162 November 16, 2015 Committee Meeting