The Corporation of the City of St. Catharines GENERAL COMMITTEE AGENDA Regular, Monday, February 1, 2021 Electronic Participation
As part of the City's commitment to safety during the COVID-19 pandemic, this meeting of the General Committee will be held electronically.
This Meeting may be viewed online at www.stcatharines.ca/youtube
Public Comments: The public may submit comments regarding agenda matters to the Office of the City Clerk by contacting [email protected] by Monday, February 1, 2021 before Noon. Comments submitted will be considered as public information and entered into public record.
Electronic Delegations: Those wishing to speak to an item on the agenda must complete the City’s Electronic Delegation Form by Sunday, January 31, 2021 before 11:59 p.m. and attend a test session with City staff on Monday, February 1, 2021 at 10 a.m.
His Worship Mayor Walter Sendzik takes the Chair and opens the meeting following Items Number 5 and 8 on the Council Agenda. Page
1. Motion to Move Reports on Consent
2. Consent Reports Following Consent Reports, Council will proceed to Council Agenda Item 6 (Public Meetings Pursuant to Planning Act)
3 - 15 2.1 Fire Services, Fire Chief Next Generation 911 (NG-911 And Consolidated Dispatch)
16 - 42 2.2 Financial Management Services, Director 2021 Water and Wastewater Budget and Associated Rates [Addenda]
Page 1 of 302 General Agenda February 1, 2021 Page
43 - 70 2.3 Legal and Clerks Services, Office of the City Clerk Council Correspondence
3. Discussion Reports
71 - 75 3.1 Office of the Chief Administrative Officer COVID-19 Update - February 1, 2021 [Addenda]
76 - 298 3.2 Office of the Chief Administrative Officer Response to Niagara Transit Governance Study
299 - 302 3.3 Legal and Clerks Services, Office of the City Clerk Waiving 2021 Business Licence Fees to Support COVID-19 Recovery [Addenda]
4. In-Camera Session (General Committee) Council will meet In-Camera for the following purposes:
5. Adjournment Following Adjournment, Council will proceed to Council Agenda Item 9 (Motions Arising from In-Camera Session).
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Corporate Report
City Council
Report from: Fire Services, Fire Chief
Report Date: January 22, 2021 . Meeting Date: February 1, 2021
Report Number: FS-010-2021 . File: 68.13.99
Subject: Next Generation 911 (NG-911 And Consolidated Dispatch) Strategic Pillar:
Recommendation That Council receive Report FS-010-2021 regarding Next Generation 911 (NG-911 and Consolidated Dispatch) for information purposes. FORTHWITH Summary The purpose of this report is to advise Council of the ongoing efforts of St. Catharines Fire Services pertaining to the implementation of Next Generation 911 and further to update Council of fire services involvement in a process to develop a consolidated emergency dispatch service providing services to all Niagara Regional emergency services providers. Relationship to Strategic Plan This initiative supports the City’s strategic plan’s guiding principles in that it promotes operational and service excellence and demonstrates accountability and transparency. Background St. Catharines Fire Services operates an emergency 911 dispatch centre, known as a Secondary Public Safety Answering Point that dispatches St. Catharines Fire Services, nine other regional fire services and two other non-regional fire services. Additionally, there are four other dispatch centres that provide dispatch services for police, fire and EMS in Niagara. The provision of 911 services in Niagara is the responsibility of Niagara Region, who in turn contract the provision of service to Niagara Regional Police Services.
As mandated by the Canadian Radio-television and Telecommunications Commission (CRTC) new technology known as Next Generation 911 (NG-911) is being implemented nationally. All provinces, municipalities and their Public Safety Answering Points are required to meet the NG-911 standards by March 31, 2024 at which time the existing 911 systems will be disconnected. There are interim deadlines that also must be meet.
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Members of St. Catharines Fire Services have been working in cooperation with members of the Niagara Falls Fire Department, Niagara Regional Police Services and Niagara Emergency Medical Services to ensure a successful coordination between our agencies results in the most effective and efficient implementation of NG-911 in Niagara. Report In the next few weeks Niagara Regional staff, with input from members of St. Catharines Fire Services (SCFS), Niagara Falls Fire Department (NFFD), Niagara Emergency Management Services (NEMS) and Niagara Regional Police Services (NRPS) will be engaging a consultant through an RFP process to conduct a technical study to identify the requirements to develop an action plan to ensure all regional dispatch centres meet the requirements of NG-911. The preliminary estimated cost for the overall transition to NG-911, including consulting, capital equipment and maintenance fees is $2M.
As a part of this study the consultant will review the provision of services using the existing five dispatch centres model and will also review a consolidated dispatch model.
At its meeting of January 13, 2021, Niagara Regional Corporate Services Committee approved a report submitted by NEMS Chief Kevin Smith updating on the implementation of NG-911. Included with the report was a recommendation for staff (Niagara Region) to develop a model of a consolidated emergency dispatch centre for Niagara. The report was approved by Regional Council on January 21, 2021 (with an amendment requiring an update report on March 25, 2021 and a final report no later than June 24, 2021) and is attached as Appendix 1.
Members of St. Catharines Fire Services will participate with representatives of NFFD, NRPS and NREMS to develop an action plan to move to a consolidated emergency dispatch model for Niagara Region that will eventually go to Niagara Regional Council, this Council and to the other respective local area municipalities for consideration and approval.
One of the most difficult aspects of the transition to NG-911 relates to the current dispatch model in use in Niagara. As previously highlighted, there are currently five dispatch centres that provide services in Niagara, four separate dispatch centres operate in the region and another service is provided by non-regional entity. Each of these dispatch centres are also required to have a fully operational back-up centre to relocate to should the primary site be compromised. Given the considerable costs associated with the implementation of NG-911 we must determine if now is the appropriate time to transition the current dispatch facility model into a consolidated model.
A consolidated model was previously recommended in 2011, after a consultant was engaged by Niagara Region who undertook a comprehensive review of the region’s emergency dispatch services. While the leaders of the local emergency services have continued to keep that recommendation in mind for a variety of reasons consolidated dispatch did not move forward. St. Catharines Fire Service leadership is of the opinion that given the necessary changes required with the implementation of NG-911 the time to actively pursue a consolidated dispatch model is now.
Report Page 2 of 3
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Financial Implications At this time there are no financial implications. Conclusion This report provided an update on SCFS involvement with efforts to implement NG-911 with other regional dispatch service providers and further indicates our goal of moving to a consolidated dispatch model. SFCS will continue to update Council at appropriate intervals and will seek Council direction once formal recommendations are in place. Notifications N/A
Prepared by Fire Chief Jeff McCormick, Director Fire Services
Submitted by Fire Chief Jeff McCormick, Director Fire Services
Approved by Fire Chief Jeff McCormick, Director Fire Services Appendices Appendix 1 – Next Generation 911 Update Report, Niagara Region Corporate Services Committee
Report Page 3 of 3
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Subject: Next Generation 911 (NG911) Update Report to: Corporate Services Committee Report date: Wednesday, January 13, 2021
Recommendations
1. That the following report pertaining to the implementation of Next Generation 911 (NG911) in Niagara BE RECEIVED for information. 2. That staff BE DIRECTED to continue the planning for the implementation of NG911 in coordination with partner agencies, Boards and Councils. 3. That staff BE DIRECTED to develop a recommended model of a consolidated emergency dispatch service for Niagara.
Key Facts
The Niagara Region is responsible for the provision of 911 services for all local area municipalities (LAM) This service is provided under a Service Performance Agreement with the Niagara Regional Police Services to act as the Primary Public Safety Answering Point (PPSAP) 911 technology is governed federally by the Canadian Radio-television and Telecommunications Commission (CRTC) 911 infrastructure in Ontario is provided by Bell Canada New technology known as Next Generation 911 (NG911) is being implemented nationally through the CRTC All provinces, municipalities and their PSAP providers are required to meet the NG911 standards no later than March 31, 2024 at which time the legacy systems will be disconnected Emergency services dispatch (police, fire, EMS) for Niagara involves five different agencies Successful coordination between the five agencies and LAM’s will result in the most efficient implementation of NG911 in Niagara Staff will bring forward an additional report once decisions on governance and coordination of efforts are made, which will outline the recommendations, implementation plan and financial implications for all stakeholders.
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Financial Considerations
The initial stage of the project will include engaging a Technological Infrastructure consultant to assist in developing and recommending the appropriate equipment required to meet NG911 standards for both the active and backup systems. The cost of the consulting engagement is estimated at $100,000 and is anticipated to be funded from the NRPS – Communications Back Up Centre capital project (20001462) which was included in the NRPS 2021 capital budget.
The preliminary estimated cost for the overall transition to NG911, including; consulting, capital equipment and maintenance fees is $2M.
After the recommendations from the consultant are considered and a decision is made on governance, staff will be in a better place to understand total financial implications and will bring forward a report to Council in consultation with the Police Services Board, at that time. The report will include financial implications for the Region, NRPS and LAM’s in relation to procurement of the required capital equipment, further consultant fees, project management and other resources as identified and required for successful NG911 implementation within 2023.
The Niagara Region will be responsible for the administration of the new system in collaboration with the Niagara Regional Police Services as the contracted service provider.
Analysis
911 services originated in Canada in 1974 as a means for the public to access emergency services, traditionally through the responding agencies of police, ambulance and fire. Municipalities are required to ensure that access to 911 services are available to their communities and as such the Niagara Region is responsible for the provision of 911 services for all local area municipalities in Niagara. While the service may be provided through various models of direct, private or contracted services, 911 in Niagara is provided under a Service Performance Agreement with the NRPS to act as the Primary Public Safety Answering Point (PPSAP). As the PPSAP, the NRPS are the first point of contact for people calling 911. The first question that is asked to people calling 911 is if their emergency is for police, fire or ambulance. Based on the initial information provided, the caller is then transferred to a Secondary PSAP (SPSAP) as the most appropriate agency required for the response (Fig.1).
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Figure 1 illustrates the flow of a 911 call from the Primary PSAP to Secondary PSAP's.
In Canada, 911 technology is governed by the Canadian Radio-television and Telecommunications Commission (CRTC) and in Ontario the 911 infrastructure is provided provincially by Bell Canada. Current 911 technology is voice analogue-based with minimal data and limits the amount and type of information shared across the 911 infrastructure. New technology known as Next Generation 911 (NG911) is being implemented nationally through the CRTC. The introduction of NG911 technology will greatly improve 911 services in a growingly wireless mobile society as it is based on an Emergency Services IP Network (ESInet) operating on an Internet Protocol (IP) platform to serve as a national IP-enabled emergency network. This platform enhances emergency number services to create a faster, more resilient system that allows voice, photos, videos and text messages to flow seamlessly from the public to, and across, the 911 network.
The CRTC has mandated that all provinces, municipalities and their PPSAP providers are required to meet the NG911 standards no later than March 31, 2024 at which time the legacy systems will be disconnected. In Niagara, this will require significant technological changes to local emergency dispatch services.
Currently in Niagara, five separate emergency service dispatch centres exist. These include:
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Niagara Regional Police Services While the NRPS provides contracted services as the PPSAP for Niagara, its’ primary responsibility is for the deployment and dispatch of 911 responses of police related matters in all of Niagara, including providing notifications to the Niagara Parks Police and Ontario Provincial Police.
St. Catharines Fire Services SCFS is responsible for the deployment and dispatch of 911 responses of fire related matters for the City of St. Catharines as well as nine other Niagara municipalities under contracted services for fire dispatch. The two LAM fire services that are not dispatched by SCFS are Fort Erie and Niagara Falls.
Tillsonburg Fire Service While not an emergency service dispatch that is located in Niagara, Tillsonburg Fire Services is responsible for the deployment and dispatch of 911 responses of fire related matters solely for the Town of Fort Erie.
Niagara Falls Fire Service NFFS is responsible for the deployment and dispatching of 911 responses of fire matters solely for the City of Niagara Falls.
Niagara Emergency Medical Services NEMS is responsible for the deployment and dispatching of 911 responses of EMS matters in all of Niagara. This service is provided within a Performance Agreement between the Niagara Region and the Province of Ontario and is administered through budgets and infrastructure provided by the Province.
NG911 Planning The transition from the current 911 analogue system to the new ESInet NG911 system requires significant effort with mandatory deadlines. An NG911 Steering Committee made up of agency representatives and stakeholders has been meeting for the past 18 months to best understand and prepare to advance this work. Planning for this project include two primary areas of focus; technological infrastructure and dispatch consolidation.
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Technological Infrastructure The roadmap to implement NG911 across Niagara is complex. Considerations must be made for the platform (NG911 interface) that is to be used, information security, interoperability, GIS compliance and operating procedures. To inform the Steering Committee in decision making and the formation of recommendations for necessary approvals, an industry consultant is being procured to assist the working group. A Request For Proposal (2020-RFP-207) has been issued by the Region’s Procurement team to select the appropriate company to provide this service. The cost associated with the work of the consultant is anticipated to be funded from the Communications Back Up Centre Capital project (20001462) upon approval of the 2021 Capital Budget.
Dispatch Consolidation One of the more multifaceted and time sensitive aspects of the transition to NG911 relates to the current fragmented model for dispatch services in Niagara. As previously highlighted, four separate dispatch centres operate in the region and one additional dispatch service is provided from an agency outside the Niagara region. Each of the four local dispatch centres require a back-up centre to relocate to should the primary site be compromised. Consideration must now be given if this is the appropriate time to transition the current dispatch facility model into a consolidated model.
In 2011, the Niagara Region undertook a comprehensive review of the region’s emergency dispatch services for consideration of a consolidated model. The consultant firm IBI was contracted to perform this study and CSD 7-2014 provided a summary of their report. Specifically, IBI recommended that: An operationally integrated “Public Safety Communications” model is the one that IBI Group favours.(p81) It may take a number of years to transition to this model.(p82)
Following the submission of the IBI report, investigation continued to gauge interest in the local area municipalities and emergency services to actively work towards consolidation. In the interim, the leadership of NRPS, NEMS, SCFS and NFFS agreed to continue working collaboratively on a cooperative model of seeking opportunities to advance dispatch services in efficiencies and effectiveness.
With the current requirement to implement a new 911 infrastructure in Niagara, the leaders of the emergency services noted above are unanimous that this is the right time to move to a consolidated model of regional emergency dispatch. For clarity, the definition of the term “consolidation” may include:
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Integration of Technology - all agencies (9-1-1 PSAP, police, fire and ideally EMS operate with shared (common) CAD and radio systems and a common IT resource. They may also share telephone (911 Call Logger) and AVL/GPS systems but would have separate Resource Management Systems.
Currently the NRPS hosts a P25 radio system that integrates with several municipal fire services including St. Catharines, Niagara Falls, West Lincoln, Pelham and most recently Grimsby. One additional municipal fire service is to be on-boarded to the P25 system early 2021.
Physical Co-Location - some or all agencies are housed in the same building and may even be co-located in the same communications center within the building. Back-up centres can also be shared and provide multi-use functionality such as training and emergency operations centres (EOC).
Currently NRPS Communications Centre serves as the back up for St. Catharines Fire and Niagara Falls Fire Communications Centres. NEMS back-up centre is located in Hamilton as provided by the Province. With the future closure of the current NRPS District 1 facility located at 68 Church St, the current site of the NRPS/PPSAP back-up centre, the future location for a permanent NRPS dispatch backup is a matter of current discussion between the Region and the NRPS with decisions forthcoming.
Dispatch consolidation may not include:
Integration of Operations – while each agency may be physically co-located, each continues to operate under its own (autonomous) governance structure and mandate, with their respective staff, support resources, programs and procedures.
Meetings with the emergency service leaders involving the Region and LAM CAO’s were held in 2020 to have preliminary discussions on opportunities for dispatch consolidation and the sharing of a common NG911 system rather than each service procuring its own. While the continuation of these discussions became somewhat delayed as a result of COVID-19, consensus was reached amongst all LAM CAO’s to prioritize the opportunity for dispatch consolidation. Further to this, general agreement
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exists with both SCFS and NFFS that fire dispatch services should be combined to a single regional service.
Despite the IBI report being completed in 2012, the general assessments and recommendations hold value today. The emergency service leaders are currently reviewing this document to determine if the recommendations that were made by IBI provide the necessary information to design a consolidated dispatch model for Councils and Boards to consider. It is anticipated that an update to this review will be provided before the end of Q1 2021. One key outstanding issue however is the confirmed location of the NRPS back-up communications centre.
NRPS Back-up Communications The original approved location of the NRPS/PPSAP back-up communications centre was to be located with the new NRPS District 1 facility currently nearing completion. Report CSD 04-2017 identified a preferred direction to develop a multi-user communication centre that would house primary or backup communications capacity for a variety of emergency-based users. The decision was made to not locate the back-up centre with the new District 1 facility but rather enter into discussions with appropriate parties to determine the best option for this type of communications centre.
One such opportunity was identified with the proposed construction of the Niagara EMS Hub. This new facility, proposed to house the EMS headquarters including the Niagara EMS dispatch centre, was identified as a feasible location to host the NRPS/PPSAP back-up centre. The co-location of dispatch services was to provide efficiencies in cost and operations and would be the start of dispatch consolidation. Unfortunately, the EMS Hub project has been deferred over several years, which now places pressures specific to timelines to implement NG911.
With the deadline of March 31, 2024, the NRPS back-up communications centre must be fully operational and NG-911 compliant no later than March 31, 2023. This requirement is to facilitate the necessary upgrades to the primary NRPS communications centre and for the training of dispatch staff to the new NG911 system.
Next Steps
1. The issuance of a contract for the Technological Infrastructure consultant will inform the NG911 Steering Committee of the recommended courses of action. A
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requisite of this work will be a determination of the degree of consolidation of the current dispatch services as well as the facilities plan for locating infrastructure.
2. The NG911 Steering Committee has created a working group to review the recommendations of the IBI report and bring forth to the Steering Committee a consolidation model for consideration, including preferred host locations.
3. No later than end of Q3 2021 recommendations specific to advancing a consolidated dispatch model including facilities, operations and governance will be provided to the Councils and Boards for consideration.
Alternatives Reviewed
With respect to the requirement to transition to NG911 as per the federal and provincial mandate, there are no alternatives to avoid this. Alternatives to the concepts introduced in this report do exist as to how this system may be implemented.
Status Quo
The option exists to leave the existing model of separate dispatch centres and separate technologies for each agency to procure and implement their own NG-911 solution. This is not recommended due to the costs associated with each service purchasing their own systems and the lack of integration and coordination of systems and services.
Contracted Service
As noted, the NRPS are the providers of 911 PPSAP services under contract with the Niagara Region. NG911 PPSAP services can be procured from other municipal agencies as well as private, for-profit companies. This is not recommended, as there is considerable community risk to contract this service to third party providers and would not offer economical advantages. This solution is not popular within Ontario.
Relationship to Council Strategic Priorities
The NG911 project and dispatch consolidation supports Council Strategic Priorities of fostering Healthy and Vibrant Communities through the delivery of quality, affordable and accessible emergency services. In addition, this model contributes to a Sustainable and Engaging Government with a high quality, efficient, fiscally sustainable and
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coordinated core delivery of emergency dispatch services that is possible only through enhanced communication, partnerships and collaborations across agencies and governments.
Other Pertinent Reports
CSD 07-2014 Public Safety Dispatch Review PHD 02-2015 Emergency Services Dispatch Update Memorandum C8253 Supplementary to PHD 02-2015 PHD-08 2015 Consolidated Emergency Services Dispatch CSD-04 2017 NRPS 1 District Project Update
______Prepared by: Kevin Smith Chief, Niagara Emergency Medical Services & Director, Emergency Services Public Health & Emergency Services
______Recommended by: Todd Harrison, CPA, CMA Commissioner/Treasurer Corporate Services
______Submitted by: Ron Tripp, P.Eng. Chief Administrative Officer (Acting)
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This report was prepared in consultation with the Chiefs of Niagara Regional Police Services, St.Catharines Fire Services and Niagara Falls Fire Services
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Corporate Report
City Council
Report from: Financial Management Services, Director
Report Date: January 26, 2021 Meeting Date: February 1, 2021
Report Number: FMS-009-2021 File: 18.45.259
Subject: 2021 Water and Wastewater Budget and Associated Rates
Strategic Pillar:
Recommendation for General Committee That Report FMS-009-2021, regarding the 2021 Water and Wastewater Budget and Associated Rates, be referred to City Council for consideration after the public meeting on February 22, 2021, for which notice will be duly given. FORTHWITH Recommendation for Council That Council approve the 2021 Water and Wastewater Budget and Associated Rates, as outlined in Appendix 1;
That 2021 water and wastewater rates are effective for billing periods ending on or after March 1, 2021; and
That the City Solicitor be directed to prepare the necessary by-laws. Background At its meeting of January 25, 2021, the Budget Standing Committee received Report FMS-B001-2021 (Appendix A), and approved the following motion:
That the Budget Standing Committee refer the 2021 Water and Wastewater Budget and Associated Rates, as outlined in Appendix 1, to Council for consideration after the public meeting scheduled for February 22, 2021, for which notice will be duly given; and
That 2021 water and wastewater rates are effective for billing periods ending on or after March 1, 2021.
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Appendices: • Appendix A – Report FMS-B001-2021 • Appendix 1 – 2021 Water and Wastewater Budget • Appendix 2 – 2021 Water and Wastewater Annual Bill Change • Appendix 3 – Automated Meter Reading (AMR) Prepared by: Lucia Chen, Manager, Budgets and Procurement Submitted and Approved by: Kristine Douglas, Director of Financial Management Services and City Treasurer
Report Page 2 of 2
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A
Report from: Financial Management Services, Director
Date of Report: January 11, 2021 Date of Meeting: January 25, 2021
Report Number: FMS-B001-2021 File: 18.45.259
Subject: 2021 Water and Wastewater Budget and Associated Rates
Recommendation That the Budget Standing Committee refer the 2021 Water and Wastewater Budget and Associated Rates, as outlined in Appendix 1, to Council for consideration after the public meeting scheduled for February 22, 2021, for which notice will be duly given; and
That 2021 water and wastewater rates are effective for billing periods ending on or after March 1, 2021. Summary This report seeks approval for the 2021 Water and Wastewater Budget and associated rates. The report is organized with the following sections:
1. Proposed Rates 2. Fixed Costs 3. Sustainable Funding of Infrastructure a. Watermain replacement b. Sanitary sewer replacement 4. Regional costs: (a) Regional water (b) Regional Wastewater 5. Change in Billing Cycle 6. Forecasting Water Volumes 7. Financial Stability of the Wastewater system 8. Operational Challenges and Required Change Background The Water and Wastewater budget is fully funded by user rates with no reliance on property taxes. The water and wastewater rates fund both operating and capital expenditures.
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Report
1. 2021 Water and Wastewater Proposed Rates
General Rate Structure The City’s current water and wastewater structure is a combination of fixed and volumetric charges. Each customer account is charged a fixed rate for water and wastewater. In addition, the customer is billed volumetric rates for water and wastewater based on the amount of water used.
Recommended Water and Wastewater Rates For 2021, staff are proposing an increase to both the water and wastewater volumetric rates as well as wastewater fixed rate. The water fixed rate is proposed to remain at the 2020 level.
Staff recommend that effective March 1, 2021, the rate structure for recovering water and wastewater costs be the following:
2021 2020 Water Fixed (annual) $177 $177 Volumetric (per cm) $1.372 $1.352
Wastewater
$135 $126 Fixed (annual) Volumetric (per cm) $2.027 $2.005
The proposed rates will result in an annual increase to the average ratepayer (at annual consumption levels of 170 cubic metres) of $16.14 – a 1.85% increase. See Appendix 2 for further details on the calculations.
Description Amount Water Rates $3.40 Wastewater Rates $12.74 Total Increase - $ $16.14 Total Increase - % 1.85%
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2. The Fixed Charge – Water and Wastewater In the City’s current water and wastewater rate structure, the fixed charge is defined to be the cost of the City’s annual replacement programs and fixed regional charges. For each of the systems these costs are calculated to be:
Water Budget Wastewater Budget 2021 2020 2021 2020 Improvement program $4,524,250 $6,024,250 $2,418,000 $3,243,000 Debt Charges 395,165 427,545 767,390 779,408 Total City Fixed Charges $4,919,415 $6,451,795 $3,185,390 $4,022,408 Regional Fixed Charges 3,097,272 3,042,931 22,996,058 21,916,001 Total Fixed Costs $8,016,687 $9,494,726 $26,181,448 $25,938,409 Change From 2020 ($1,478,039) $243,039 Calculation of Recovery Rates: Based on 42,450 customers $189 $224 $617 $611 2021 Proposed/2020 Actual $177 $177 $135 $126
As the chart indicates, the calculated fixed component of the City’s rate structure should be $189 for Water and $617 for Wastewater. While staff does not propose that the 2021 rates be increased in one year to fully recover these costs, increases over time need to be considered. The increase in the fixed water and wastewater rates in 2021 will result in the recovery of a larger portion of the fixed costs to operate the water and wastewater systems. With the increasing cost of construction; especially related to underground services, there will be the need to increase fixed costs just to complete the same level of infrastructure work.
The Region has deferred the 2021 budget request for a 5.15% increase that supports the Regional Council approved Safe Drinking Water Act (SDWA). Instead the Region has implemented one-time mitigations (deferrals of half the 2021 CSO program, student positions, Water wagon/festival, and conferences) that will create additional pressure in 2022, however these are anticipated to be accommodated within the 5.15% SDWA Financial Plan previously approved by Regional Council.
3. Sustainable Funding of Infrastructure As part of the 2021 Capital budget approval by Council on December 14, 2020, the 2021 Water and Wastewater funding for watermain and sanitary sewer infrastructure replacement were included. Therefore the capital project portion of the 2021 water and wastewater rates has received Council approval. This report and budget is to obtain Council approval of the rates to fund both the capital projects and operational functions for 2021.
a. Watermain Replacement Program
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Approved with the 2021 Capital budget was $4,199,2501 for the replacement of watermains and $325,0002 for water capital investment (capital out of revenue). This infrastructure cost is funded by the water rates. Details of the watermain replacements in summary can be found in the 2021 Capital Budget under Tab W.
b. Sanitary Sewer Replacement Program Approved with the 2021 Capital budget was $2,025,0003 for sanitary sewer infrastructure replacements and $393,0004 for sanitary sewer capital investment (capital out of revenue). This infrastructure is funded by the wastewater rates. Details of the sewer replacements in summary can be found in the 2021 Capital Budget under Tab W.
The table below summarizes the total contribution to capital projects including water and wastewater infrastructure replacements and capital investments.
2021 2020 $ Change % Change Water $4,524,250 $6,024,250 -$1,500,000 -25.90% Wastewater 2,418,000 3,243,000 -825,000 -25.44% Total $6,942,250 $9,267,250 -$2,325,000 -25.09%
In 2019, Council approved a 10-Year Financial Plan for Water and Wastewater (The Water/Wastewater Plan). The Plan includes year over year increases for investment in capital infrastructure, which will reduce the funding gap for these asset classes. As a result of the financial and operational challenges facing the City caused by COVID-19 pandemic, the 2021 budget and 2022-2025 forecast reflects a reallocation of the investment in Water Distribution System, Sanitary Sewer Collection Systems and Pollution Control. Increases in spending in the years of 2024 through 2026 result in the same net investment in infrastructure, over the next 6 years. However, in the short term the spending deferrals will continue to contribute to the widening infrastructure gap.
1 Details can be found in 2021 Capital Budget under Tabs G, K and P 2 Details can be found in 2021 Capital Budget under Tab G 3 Details can be found in 2021 Capital Budget under Tabs E, K and P 4 Details can be found in 2021 Capital Budget under Tab E
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4. Regional Costs
Figure 1 – Region vs. City Water Expenditure
City Region 51% 49%
The City and Region are responsible for various aspects of water distribution. The Region is responsible for supply and treatment including all reservoirs and water towers. In general, watermains sixteen inches (400 mm) in diameter or larger are a Regional responsibility and the City is responsible for the smaller distribution watermains. There is also a shared responsibility for collection and treatment of wastewater between the City and the Region. The Region is responsible for treatment facilities, pumping stations, sludge disposal and sewers with flows of six cubic feet per second or greater or sewers spanning a municipal boundary. The City is responsible for the remaining wastewater pipelines.
In effect, the Region is the service provider to the City, supplying potable water and treatment of wastewater. The cost to provide the service to lower-tier municipalities is part of the Region’s budget and each municipality is charged for its respective portion. Based on the Regions Safe Drinking Water Act (SDWA) Financial Plan, the Region has committed to increasing its water and wastewater rates annually for the next several years to ensure program sustainability; however the Region has deferred the 5.15% increase from 2021 to 2022 in order to mitigate budget pressures created by the global pandemic and to comply with Regional budget planning strategy. The 5.15% increase is anticipated to resume in 2022 and will result in annual increases to City water and wastewater rates in 2022 and beyond.
Determination of St Catharines’ share of the Regional Costs The calculation of each lower municipality’s share is dependent upon the municipality’s usage of each system (i.e. cubic metres of water purchased or cubic metres of wastewater treated). This means St Catharines’ share of the total budget will change over time with our water and wastewater flows.
a. Regional Water Rates
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The Region charges the lower tier municipalities for the supply of potable water using both a fixed monthly charge and a variable rate per cubic metre. The rates for 2021 (with comparable 2020 rates) are as follows:
% increase Water 2021 2020 (decrease) Variable rate per cm $0.6112 $0.6020 1.53% Fixed Monthly $258,106 $253,578 1.79% Charge
The above rates result in the City’s 2021 draft Water budget including Regional costs of $12,265,272, an increase of $192,341 (1.59%) from 2020. As $9,168,000 of these costs are related to the variable rate, this provides some protection to the City should the water consumption decline in 2021. The fixed annual charge of $3,097,272 will be payable to the Region regardless of City water consumption.
b. Regional Wastewater Rates The Regional wastewater charges contain no variable rates. The rates for 2021 (with comparable 2020 rates) are as follows:
Wastewater 2021 2020 %increase
Fixed Monthly Charge $1,916,338 $1,826,333 4.93%
Figure 2 – Region vs. City Wastewater Costs
City 25%
Region 75%
The Region has increased the overall wastewater bill to the lower-tier municipalities by 2.24% for 2021 (4.93% increase for City of St. Catharines). When the Region resumes its 5.15% increases to be in alignment with its SDWA Financial Plan anticipated in 2022, it will result in annual increases to City water and wastewater rates in 2022 and beyond. Especially since regional costs represent 63% of the City’s water and wastewater costs.
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2021 Water and Wastewater Summary of Expenditures
Expenditure Water Wastewater
City Operating Costs $7,829,808 31.30% $4,558,657 14.83%
Water/Sewer 4,199,250 16.79% 2,025,000 6.59% Improvement Program City Debentures 395,165 1.58% 767,390 2.50%
Capital Out of Revenue 325,000 1.30% 393,000 1.28%
Region 12,265,272 49.03% 22,996,058 74.81%
Total $25,014,495 100% $30,740,105 100%
Region Controlled $12,265,272 49.03% $22,996,058 74.81% Costs City Controlled Costs 12,749,223 50.97% 7,744,047 25.19%
Total $25,014,495 100% $30,740,105 100%
The 2021 water and wastewater budget recommends an increase of 1.85% to the average ratepayer to both meet the Region’s annual prescribed increase and to address the City’s infrastructure deficit.
Figure 3 – Total Region vs. Total City Water and Wastewater Costs
City 37% Region 63%
The details of the water and wastewater expenditures are available in Appendix 1.
5. Change in Billing Cycle
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City staff is working to provide customers with a more frequent billing. We anticipate that we will be able to transition to bi-monthly billing in Q2 of 2021. Currently, water is billed following a four-month billing cycle, which means residents will receive a water bill three times a year. Now that the Automated Meter Reading (AMR) project is almost at completion, staff have been reviewing the options to increase the frequency of billing water accounts.
A bi-monthly billing will provide customers with more frequent and timely information about their water usage. This benefits customers in a number of ways: • Allows customers to adjust their water usage habits if they feel they are using too much water. • Allows customers to detect any leaks in their household plumbing sooner. • Provides consistency to assist monthly home budgets for our customers and residents will see less fluctuation in billing amounts especially after heavy usage periods.
An adjustment in billing frequency could result in a possible change in the collection process and collection rates. Costs associated with manual meter reading could be eventually eliminated with automation which may include vehicle costs, cellular phone expenses, labour, maintenance and some general overhead expenses. Technology may need to be upgraded in order to provide additional efficiencies in billing processes.
Staff will update BSC and Council prior to the implementation of the change to billing frequency.
6. Forecasting Water Volumes
An analysis of water purchases has shown conservation efforts by St Catharines water customers have resulted in significant reduction in cubic metres of water purchased from the Region. Since 2000 annual water purchases have decreased 36% from 22,795,000 cubic metres annually to 14,547,750 cubic metres in 2020. Each year staff review the history of water purchase volume and utilize that information to forecast what future volumes will be.
Over the past years there has been concern as to the determination of how much further the volumes can decline. In effect, are we nearing the end of volume decreases, or is there a significant decline still to come? In the process of this estimation, staff analyzed the water purchase based on three separate “seasons” of the year: summer – June to September; winter – November to February; shoulder months – March to May and October.
Figure 4 – Water Purchases by Season
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The chart clearly depicts the average monthly summer consumption (the blue or top line) as the most volatile line. It fluctuates significantly each year. While the volume rebounded in 2016, in 2017 it declined and in 2018 rebounded again. The 2019 year saw another year of decline due to the extremely wet spring. The 2020 year saw a rebound in volume during the summer months due to a dry summer season, this was a similar level that we saw in 2018. The summer monthly consumption is still higher than either of the other “seasons” which are less volatile.
Reviewing 2020 water purchases, it appears that water consumption may be levelling off. The 2020 purchases from the Region totaled 14.55 million cubic metres of water. In 2019, the City purchased 14.53 million cubic metres of water, in 2018 the City purchased 15.5 million cubic metres, in 2017 purchased 15.25 million cubic meters and in 2016 purchased 15.18 million cubic meters. Staff estimate water purchases for 2021 to be more in line with the three- and five-year average and slightly higher than the 2020 level of 14.55 million. Staff estimate the 2021 purchases of 15.0 million cubic metres of water from the Region. With the changes to our climate, adaptation planning will be needed to manage the risks.
Climate related impacts continue to be experienced by the City of St. Catharines. These events include; extreme winds/fallen trees (2011), severe rainstorms/basement flooding (2014, 2017, 2018 and 2019), extreme cold/frozen water services (2015 and 2019) and extreme dry periods/fire ban (2016). Additionally, record high water levels in Lake Ontario in the spring and summer of 2017 and again in 2019 resulted in the closure of Lakeside Park. In 2020, a low-pressure system crossed through central Ontario late August 1 through August 2. The warm front associated with the system brought significant tropical-sourced moisture between 50 and 70 mm from Windsor to the Greater Toronto Area and Niagara, and along the north shore of Lake Ontario.
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2020’s Event Highlights: • January’s weekend storms – three in a row • Texas storm turns on lake-effect snow engine • Heavy rains and wind-driven flooding around Victoria Day • Summer’s first heat wave fuels severe thunderstorms • Dry land farming • Record number of waterspouts on the Great Lakes • Three-day rain event across Ontario • Another year of high Great Lakes water levels
The severity and unpredictability of these events will be a challenge in the future. The impact on the City’s water consumption and potential changes required to annual forecasts will be closely monitored by staff, as there will be financial impacts on the water and wastewater rates. By continuing to focus on the water and wastewater infrastructure replacements as identified in the 10-Year Financial Plan for Water/Wastewater (2019-2029) approved by Council in 2019 assists in ensuring the City’s infrastructure can handle these severe and unpredictable events.
Figure 5 – Water Consumption by Customer Type
As shown in the graph above, since 2007 the City has seen a relatively steady decline in consumption (in cubic metres) of both the Residential and Industrial, Commercial and Institutional (ICI) customers. In 2011, ICI sector consumption began to move closer to the Residential sector until 2015 and 2016 where the ICI transitioned to below the Residential sector. The 2018 year saw Residential and ICI sectors equal. In 2019 are
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declines in both Residential and ICI consumptions from 2018 due to heavy rainfalls in spring/summer 2019, with Residential sector above the ICI sector similar to 2015 and 2016. The 2020 year saw a significant increase in residential consumptions over ICI, this can be attributed to a significant portion of the population working from home as guided by the provincial government in late March 2020.
7. Financial Stability of the Wastewater System A significant portion of the costs of the wastewater system are fixed. While the wastewater rates include a fixed portion, the majority of the revenue is collected through a variable rate based on water purchased by the customer.
When the majority of a rate structure consists of a variable rate, periods of declining consumption result in the reduction of the overall revenue. Consequently, the revenue generated does not cover the cost of the system. Details are shown in Table 2 below. Wastewater Annual Recovery/(Loss)
In millions of 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 $ (est.)** Revenue $29.02 $26.69 $26.45 $26.64 $27.38 $25.71 $25.80 $24.86 $25.32 $23.46 Expenditures $29.90 $27.58 $25.58 $25.66 $26.02 $25.18 $25.53 $25.07 $25.25 $24.00
Recovery/ ($0.88) ($0.90) $0.87 $0.98 $1.36 $0.53 $0.27 ($0.21) $0.07 ($0.54) (Loss) Accumulated ($0.44) $0.44 $1.34 $0.47 ($0.51) ($1.87) ($2.40) ($2.67) $(2.46) ($2.53) Surplus/(Defi cit)
The positive results in the last number of years have assisted in eliminating the accumulated deficit of $1.87 million at the end of 2015.
** At the end of 2020 it is estimated that wastewater system will have a deficit of $0.88 million with the Safe Restart Phase I Funding allocation of $0.32 million. The Safe Restart Phase II funding allocation to the wastewater system is to be determined when the consolidated 2020 financial result for the City is finalized.
In effect, the water rates had been subsidizing the operations of the wastewater system. While many of the City’s customers have both water and wastewater charges on their bills, there are customers who do not. As per guidelines from the Province, rates should be structured so that both systems maintain their own financial stability through separate rates. 8. Operational Challenges and Required Change
Currently our existing water and wastewater infrastructure systems are experiencing two very distinct challenges, that all systems experience to some degree.
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With regards to the wastewater collection system, it is subject to “infiltration” or entry of water that does not require treatment. This needs to be kept out of the system to reduce sewer backups, treatment costs and limit the size of capital infrastructure replacements and associated costs. “Infiltration” is the result of a number of things including past practices (i.e. connection of foundation drains, etc.) and leakage of groundwater into the system (i.e. at joints, cracks, etc.) as well as, rainwater entering through the leveling rings just below the metal surface lids.
With regards to the water distribution system, all system experienced unaccounted for water, or water that is produced/treated and cannot be billed. This is a result of meter accuracy limits (which have been improved with the implementation of the AMR project and the upgraded residential meters installed), bypassing of meters, unbilled water from hydrants (i.e. construction, pool filling, etc.) and illegal connections. In addition, “water loss” occurs from leakage in older watermains (joints, small hole in main pipes); leaking service connections and valves.
Understanding the specific sources and extent of infiltration and water loss, as they apply to your systems, and shifting maintenance activities to focus on reducing these, has a number of environmental benefits, and can significantly reduce the costs associated with treatment charges that the City pays to the Region. It also reduces the cost of future capital improvements and can extend the useful life of specific water and wastewater infrastructure.
To date, the city has undertaken some concerted projects/programs to reduce both infiltration and water loss, however an ongoing proactive maintenance program is required. Presently, water and wastewater operations have remained largely reactive; with primary focus on responding to emergencies (i.e. break repairs, blocked basement drains, etc.) and installation of services for new buildings. While these are all needed services, it does not allow resources to be dedicated to any proactive maintenance approach.
As the first step in moving from a reactive to proactive operation model, in 2021 Municipal Works will be undertaking a Service Level Review to properly document our current state. This information will be brought to Council. From this, Municipal Works will be developing recommendations on how current service delivery should be modified. With a rationalized service delivery model, our goal is to reallocate existing resources to a proactive maintenance program while providing a reliable and consistent approach to emergencies. Financial Implications The proposed 2021 water and wastewater rates result in an increase for both water and wastewater rates. For the average ratepayer (at annual consumption levels of 170 cubic metres) they will pay $889.83. This is an increase of $16.14 or 1.85% over the amount they paid in 2020 of $873.69. This increase is approximately $0.31 per week.
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In addition, based on the 2019-2029 Water and Wastewater Financial Plan, the 2021 estimated rates were an annual bill of $928.88 or an increase of $54.21 or 6.2%. The 2021 rates proposed are significantly less than this forecasted amount. This decrease is largely due to the decrease in capital spending in response to the global pandemic.
Relationship to Strategic Plan Economic Prosperity will be enhanced through: • Optimizing capital infrastructure through effective asset management and sustainable investment. Environmental Stewardship will be enhanced through: • Review and update all municipal operations to minimize the impacts and ensure preparation for climate change. All sanitary sewer and storm sewer designs are undertaken using updated design criteria; • Planned service level review in 2021 in Municipal Works Department to review water infiltration and water loss. Conclusion Staff recommends that Council approve the 2021 water and wastewater rate increase, which for the average customer annual consumption of 170 cubic metres is 1.85% or $16.14.
Prepared by: Sebastian Zukowski, Budget Specialist
Submitted by: Lucia Chen, Manager, Budgets and Procurement Lisa Read, Manager of Revenues
Approved by: Anthony Martuccio, Director of Engineering, Facilities and Environmental Services Darrell Smith, Director of Municipal Works Kristine Douglas, Director of Financial Management Services and City Treasurer
Attachments: Appendix 1 – 2021 Water and Wastewater Budget Appendix 2 – 2021 Water and Wastewater Annual Bill Change Appendix 3 – Automated Meter Reading (AMR) Project
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2021 Water/Wastewater Budget City of St Catharines 1 Water/Wastewater Budget Summary
Estimate Actuals 2021 2020 2019 2018 2017
Reserve at Beginning of Year 5,079,682 5,606,300 5,790,622 3,824,317 3,844,722
Revenues 55,234,088 54,942,018 50,030,623 49,419,990 49,275,913 Less: Region expenditures 35,261,330 33,988,932 32,088,689 30,893,197 30,660,277
Safe Restart Funding 2020 (Phase 1)
Net Revenue 19,972,758 20,953,086 17,941,934 18,526,793 18,615,637
City Expenditures Water Operating costs 7,829,808 7,103,122 6,431,728 6,049,676 6,500,390 Water Debenture debt 395,165 427,545 526,248 587,027 878,619 Water Infrastructure costs 4,524,250 6,024,250 4,326,590 3,673,591 5,038,678 Sewer Operating costs 4,558,657 3,902,378 3,682,153 3,537,749 3,518,601 Sewer Debenture debt 767,390 779,408 638,818 640,958 870,027 Sewer Infrastructure costs 2,418,000 3,243,000 2,520,719 2,071,487 1,829,727
20,493,270 21,479,703 18,126,256 16,560,488 18,636,042
Annual Surplus/(Deficit) -520,512 -526,617 -184,322 1,966,305 -20,406
Reserve at End of Year 4,559,171 5,079,682 5,606,300 5,790,622 3,824,317
City total 20,493,270 21,479,703 18,126,256 16,560,488 18,636,042 Region total 35,261,330 33,988,932 32,088,689 30,893,197 30,660,277
55,754,600 55,468,635 50,214,945 47,453,685 49,296,319
cm - purchased 15,000,000 15,000,000 14,529,849 15,507,748 15,258,218
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WATER SYSTEM (515.XXX)
2021 Water Budget Summary
Estimate Actual Dept. Acct. 2021 2020 2019 2018 2017
Operating Expenditures: General Administration FMS 105 1,354,717 1,282,153 1,044,540 1,044,900 1,156,934 Engineering Overhead EFES 110 2,120,018 1,882,604 1,754,004 1,578,150 1,948,351 Mains, Valves, Hydrants EFES 115 2,282,364 2,289,062 1,844,896 1,899,744 2,014,559 Water service lines EFES 120 582,732 580,087 520,206 549,495 489,406 Meters EFES 125 845,627 909,146 786,722 801,808 785,795 New Mains, Valves, Hydrants EFES 135 152,350 160,070 85,411 138,264 113,235 Services Rendered EFES 145 0 0 -17,051 37,315 -7,890 Cost Allocations 492,000 - 413,000 Total Operating Expenditures: 7,829,808 7,103,122 6,431,728 6,049,676 6,500,390
Capital Expenditures: Water Capital out of Revenue * FMS 190 325,000 425,250 86,000 0 124,000 Debenture Debt FMS 195 395,165 427,545 526,248 587,027 878,619 Water Improvement Program * EFES 520 4,199,250 5,599,000 4,240,590 3,673,591 4,914,678
Total Capital Expenditures: 4,919,415 6,451,795 4,852,838 4,260,618 5,917,297
Total Water Expenditures 12,749,223 13,554,917 11,284,566 10,310,294 12,417,687
Note: FMS - Financial Management Services EFES - Engineering, Facilities and Environmental Services
* - Details of the water improvement program for 2021 are provided in the 2021 Capital budget which was approved by Council on December 14, 2020. For details see under tab G, K, and P in the 2021 Capital budget
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EXPENDITURE ACCOUNT 2021 BUDGET
310.112 WATER/WASTEWATER EQUIPMENT RESERVE:
OPENING BALANCE $1,583,939
ANNUAL RESERVE PROVISION 330,000
EXPENDITURES, 2021 -700,000 EXPENDITURES, PRIOR YEAR COMMITMENTS -825,000
CLOSING BALANCE $388,939
EXPENDITURE DETAILS ONE (1) SEWER FLUSHER/VAC COMBINATION UNIT 700,000
$700,000
PRIOR YEAR COMMITMENTS THREE (3) CUBE VANS EQUIPPPED FOR UTILITY OPERATIONS 240,000 (REPLACE UNIT#55,63,64) ONE (1) TRIAXLE DUMP TRUCK (REPLACE UNIT#84) 300,000 ONE (1) TANDEM DUMP TRUCK SPECIFIC FOR UTILITIES OPERATIONS (NEW) 285,000
825,000
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WASTEWATER SYSTEM
2021 Wastewater Budget Summary
Estimated Actual Dept. Acct. 2021 2020 2019 2018 2017
Operating Expenditures: Sewers - General EFES 730.100 702,881 699,057 532,462 619,953 636,856 Sewers - Insurance FMS 730.105 75,000 0 36,329 28,485 54,743 FLAP Program EFES 732.115 321,964 315,389 506,518 258,087 267,211 Lateral Replacement EFES 732.100 712,629 706,647 633,901 665,806 588,634 New Laterals EFES 732.105 0 0 26,913 32,917 25,636 Drain Clearing EFES 732.110 328,224 321,099 175,209 179,175 140,281 Overhead EFES 732.190 943,700 764,414 621,129 635,658 810,478 Pollution Control EFES 735.300 828,416 844,743 611,719 526,951 676,317 Overhead EFES 735.305 265,843 251,029 208,973 327,035 318,446 Cost Allocations EFES 731.920/925 380,000 0 329,000 263,682 Total Operating Expenditures: 4,558,657 3,902,378 3,682,153 3,537,749 3,518,601
Debenture Debt EFES 731.195 767,390 779,408 638,818 640,958 870,027 Sewer Improvement Program * EFES 731.100 2,025,000 2,700,000 2,400,719 1,921,487 1,769,727 Capital Out of Revenue * FMS 735.304 393,000 543,000 120,000 150,000 60,000
Total Capital Expenditures: 3,185,390 4,022,408 3,159,537 2,712,445 2,699,754
Total City Wastewater Expenditures 7,744,047 7,924,786 6,841,690 6,250,194 6,218,355
Note: FMS - Financial Management Services EFES - Engineering, Facilities and Environmental Services
* - Details of the sewer improvement program for 2021 are provided in the 2021 Capital budget which was approved by Council on December 14, 2020. For details see under tab E, K, and P in the 2021 Capital budget
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WATER, WASTEWATER AND RELATED SERVICE RATES
1. The following rates shall be paid to The Corporation of the City of St. Catharines for the use of water supplied by The Corporation of the City of St. Catharines:
(a) Consumption - Cubic Metres (For each four month billing period) Current Proposed
Customer Charge $59.00 $59.00 Consumption Charge - per cubic metre 1.352 1.372 *Note: Large Industrial Users are billed monthly
Water meter size of 1" or greater will be subject to a water meter equivalency charge when calculating the Customer Charge. Exemption: Single Family Residential classificiation. See (b) below.
(b) Meter Equivalency
Water meter size of 1" or greater will be subject to a water meter equivalency charge when calculating the Customer Charge. Exemption: Single Family Residential classificiation.
1" meter = 1.4 meter equivalency units 1 1/2" meter = 1.8 meter equivalency units 2" meter = 2.9 meter equivalency units 3" meter = 11 meter equivalency units 4" meter = 14 meter equivalency units * 6" meter = 21 meter equivalency units * >6" meter = 21 meter equivalency units
* Note: Where a single 6" meter or greater is installed for the purpose of additional fire protection, the multiplier equivalency shall be discounted to 50%.
(c) Flat Rates (For each four month billing period)
Per Dwelling unit $175.00
Note: Where more than 20 units are being constructed, the maximum number of units charged is 20.
(d) Estimated Billing
Where consumption and/or Flat Rate does not apply, estimates are based on previous actual readings. In the absence of previous actual readings, amount to be determined at the discretion of the Treasurer.
(e) Rates for Services Outside City (For each four month billing period)
Multiple of Regular Rate 2X Customer Charge $118.00 $118.00 Consumption Charge - per cubic metre 2.704 2.744
(f) Bulk Water (Key Pad Operated)
Multiple of Regular Rate 2X Per cubic metre $2.704 $2.744
(g) Water Under Construction First four month period Per sq. ft. Water Increase 2017 1.22 %, 2018 1.64%, 2019 $0.030 $0.031 4.50%, 2020 7.51% increase, 2021 1.85% First four month period Per sq. m. 0.326 0.332
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Current Proposed Next Flat Rate per dwelling unit for each four month period until meter is installed $175.00
If there are extenuating circumstances or if large Industrial/Commercial building, “Next Flat Rate” to be determined at the discretion of the Treasurer.
2. The following rates shall be paid to The Corporation of the City of St. Catharines for the use of water related services supplied by The Corporation of the City of St. Catharines:
(a) METER RENTALS (Annually)
Meter Size
*16mm (5/8") Displacement $19.00
*16mm (5/8")SR II Displacement with ECR $35.00
*16mm (5/8") Accustream/Transmitter $40.00
*16mm (5/8") IPERL/Transmitter $45.00
19mm (3/4") Displacement $25.00
19mm (3/4")SR II Displacement with ECR $41.00
19mm (3/4") Accustream/Transmitter $46.00
19mm (3/4") IPERL/Transmitter $50.00
25mm (1") Displacement $29.00
25mm (1") SR II Displacement with ECR $46.00
25mm (1") Accustream Transmitter $51.00
25mm (1") IPERL/Transmitter $55.00
38mm (1-1/2") Displacement $82.00
38mm (1-1/2") Displacement with ECR $115.00
38mm (1-1/2") Displacement /ECR/ Transmitter $120.00
38mm(1-1/2") Turbine $111.00
38mm(1-1/2") Turbine/Transmitter $116.00
38mm (1 1/2") OMNI C2 Compound $122.00
38mm (1 1/2") OMNI R2 Residential $75.00
38mm (1-1/2") OMNI T2 Turbine $96.00
50mm(2") Displacement $92.00
50mm(2") Displacement with ECR $128.00
50mm(2") Displacement-ECR/Transmitter $133.00
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Current Proposed
50mm (2") Compound $96.00
50mm (2") Compound/Transmitter $101.00
50mm (2") Turbine $114.00
50mm (2") Turbine/Transmitter $119.00
50mm (2") OMNI C2 Compound $150.00
50mm (2") OMNI R2 Residential $80.00
50mm (2") OMNI T2 Turbine $115.00
75mm (3") Compound $418.00
75mm (3") Compound/Transmitter $423.00
75mm (3") Turbine $375.00
75mm (3") Turbine/Transmitter $380.00
75mm (3") OMNI C2 Compound $402.00
75mm (3") OMNI T2 Turbine $375.00
100mm (4") Compound $498.00
100mm (4") Compound/Transmitter $503.00
100mm (4") Turbine $475.00
100mm (4") Turbine/Transmitter $480.00
100mm (4") OMNI C2 Compound $488.00
100mm (4") OMNI F2 Fire Assembly $798.00
100mm (4") OMNI T2 Turbine $475.00
150mm (6") Compound $671.00
150mm (6") Compound/Transmitter $676.00
150mm (6") Turbine $587.00
150mm (6") Turbine/Transmitter $592.00
150mm (6") Fire Assembly $900.00
150mm (6") Fire Assembly /Transmitter $905.00
150mm (6") OMNI C2 Compound $671.00
150mm (6") OMNI F2 Fire Assembly $980.00
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Current Proposed
150mm (6") OMNI T2 Turbine $587.00
200mm (8") Fire Assembly $1,340.00
200mm (8") Fire Assembly /Transmitter $1,345.00
200mm (8") Turbine $665.00
200mm (8") Turbine/Transmitter $670.00
200mm (8") OMNI C2 Compound $930.00
200mm (8") OMNI F2 Fire Assembly $1,350.00
200mm (8") OMNI T2 Turbine $830.00
250mm (10") Fire Assembly $1,510.00
250mm (10") Fire Assembly/Transmitter $1,515.00
250mm (10")Turbine $900.00
250mm (10")Turbine/Transmitter $905.00
250mm (10") OMNI C2 Compound $1,125.00
250mm (10")OMNI F2 Fire Assembly $1,810.00
250mm (10") T2 OMNI Turbine $1,000.00
* NOTE: No charge for 16mm (5/8") meter unless installed outside the City.
Where meter type consists of two meters combined, one rental rate is applicable, based on the predominant use of the meter.
(a)(i) METER PITS (CHAMBER) RENTALS (Annually)
Meter Size
16mm (5/8") $72.00 $74.00
19mm (3/4") $74.00 $76.00
25mm (1") $81.00 $84.00
38mm (1-1/2") $208.00 $217.00
50mm (2") $223.00 $232.00
75mm (3") Actual Cost
100mm (4") Actual Cost
150mm (6") Actual Cost
200mm (8") Actual Cost
250mm (10") Actual Cost
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Current Proposed 3. The following rates shall be paid to the Corporation of the City of St. Catharines for the wastewater system and services as outlined herein:
(a) Wastewater Fees (for each four month period)
Sewer Replacement Program $42.00 $45.00 Wastewater charges – per cubic metre 2.005 2.027
Water meter size of 1" or greater will be subject to a water meter equivalency charge when calculating the Customer Charge. Exemption: Single Family Residential classificiation. See (b) below.
(b) Meter Equivalency
Water meter size of 1" or greater will be subject to a water meter equivalency charge when calculating the Customer Charge. Exemption: Single Family Residential classificiation.
1" meter = 1.4 meter equivalency units 1 1/2" meter = 1.8 meter equivalency units 2" meter = 2.9 meter equivalency units 3" meter = 11 meter equivalency units 4" meter = 14 meter equivalency units 6" meter = 21 meter equivalency units >6" meter = 21 meter equivalency units
Note: Where a single 6" meter or greater is installed for the purpose of additional fire protection, the multiplier equivalency shall be discounted to 50%.
(c) Flat Rates (For each four month billing period)
Per Dwelling unit $225.00
(d) Wastewater Under Construction
First four month period 0.00 Next Flat Rate per dwelling unit for each four month period until meter is installed $225.00
Note: Where more than 20 units are under construction, the maximum number of units charged is 20.
If there are extenuating circumstances or if large Industrial/Commercial building, “Next Flat Rate” to be determined at the discretion of the Treasurer.
4. Unauthorized Use of Water
(a) Rate when bypass valve is opened without Authorization or any other unauthorized use of water or determination that water provided has not passed through the meter:
Two (2) times the average of last three representative bills. 2X If not applicable, estimate to be determined at the discretion of the Treasurer. (For each four month billing period)
(b) Where property has operated a grow-op, amount is three (3) times the $1,200.00 total Flat Rate per dwelling unit as outlined in Sections 1 and 3 (For each four month billing period)
Financial Management Services, Director 2021 Water and Wastewater Budget... Page 39 of 302 AGENDA ITEM 2.2 2021 Water/Wastewater Budget
Current Proposed 5. Miscellaneous
(a) Meter Relocation to a more appropriate position to facilitate reading and/or maintenance:
When requested by homeowner, equivalent to applicable Water Service Call as defined in Rates and Fees.
When determined by City Engineer, amount charged at the discretion of the Treasurer
(b) Installation of Automated Meter Reading (AMR) apparatus when performed not in accordance with scheduled deployment :
When requested by homeowner $375.00 $450.00
When determined by City Engineer, amount charged at the discretion of the Treasurer
Customer non compliance with AMR installation $500.00
(c) Late Payment Penalty
A penalty for late payment of 1.5% per month is added the day following the due date and the first day of each month thereafter.
(d) The rates set out above shall be deemed to have become effective on all accounts with Billing periods ending on or after March 1, 2021.
* NOTE: METRIC CONVERSION: 1 cubic metre (CM) equals 220 gallons or 1,000 litres
* Bolded script = proposed changes for 2021
** In 2021 the City will be investigating the movement of account billing from every four months to every two months. This change does not affect the rates charged, only the frequency of billings.
Financial Management Services, Director 2021 Water and Wastewater Budget... Page 40 of 302 AGENDA ITEM 2.2
2021 Wate/Wastewater Budget City St. Catharines 2 Water/Wastewater Budget Annual Bill Change Comparison 2021 2020 New Old Change Rates Rates $ %
Consumption Normal Consumption 170 170 170 170 0 0.00%
Water - Retail Rate Rate per billing period (4 months) $59.00 $59.00 Fixed Fee $177.00 $177.00 0.00 0.00%
Consumption Rate per CM $1.372 $1.352 Consumption Fee $233.24 $229.84 3.40 1.48%
Total Water $410.24 $406.84 $3.40 0.84%
Wastewater - Retail Rate Rate per billing period (4 months) $45.00 $42.00 Fixed Fee $135.00 $126.00 9.00 7.14%
Consumption Rate per CM $2.027 $2.005 Consumption Fee $344.59 $340.85 3.74 1.10%
Total Wastewater $479.59 $466.85 $12.74 2.73%
Total Water and Wastewater Bill $889.83 $873.69 $16.14 1.85%
Fixed Component $312.00 $303.00 Variable Component $577.83 $570.69
$889.83 $873.69
Fixed Percentage 35.06% 34.68% Variable Percentage 64.94% 65.32%
100.00% 100.00%
History of "Analysis of Average Increase" - per annual budget presentations
City City Remove Total Stated % Tax Sup Increase
July 1, 2009 (10.70) (10.70) 21.40 107.00 16% April 1, 2010 4.00 4.00 54.45 7% April 1, 2011 2.71 2.71 37.80 5.32% April 1, 2012 4.44 4.44 40.20 5.38% April 1, 2013 20.40 2.59% April 1,2014 20.00 2.47% April 1,2015 12.22 1.63% April 1,2016 0.00 0.00% April 1,2017 15.09 1.98% April 1,2018 15.18 1.98% April 1,2019 41.29 5.28% Financial ManagementApril Services, 1,2020 Director 2021 Water and Wastewater Budget... 51.02 6.20%Page 41 of 302 April 1,2021 16.14 1.85% AGENDA ITEM 2.2
Appendix 3: Automated Meter Reading (AMR) Project 3
The City has been installing new automated water meters in residential properties since August 2014. The City’s AMR program uses wireless technology to automatically collect water consumptions, diagnostic and status date from the City’s water meters and automatically transfers that data to a database for billing, troubleshooting and analyzing.
The battery-operated AMR transmitter is wired directly to the water meter inside the home and wirelessly communicates with mobile reading equipment installed in City owned meter reading vehicles. The AMR transmitter sends wireless signals to the mobile reading equipment three times per year currently and operates on Industry Canada licensed 900 MHz spectrum. These transmissions last for less than 1/8th of a second at power levels less than 2 watts.
The benefits associated with automated meter reading technology is the ability to monitor consumption levels on a property-by-property basis, and to use this consumption data to potentially assist property owners with leak detection.
AMR data has the ability to focus on inactive accounts to ensure there is no unauthorized usage. AMR has the ability to store 35 days of data which provides hourly data and assists staff in determining when the consumption occurred. AMR can reduce estimated reads and costs associated with re-billing accounts. Since AMR systems have very high accuracy and read percentages, the system reduces re-bill costs. An automated system will prove to be a more efficient method for obtaining these reads.
To date, 39,219 residential water meters have been upgraded to the AMR technology. We have approximately 234 meters left to exchange. The project upgrade was initially anticipated to be completed by Q2 of 2020. With COVID-19, the project was paused as of March 2020 due to the Provincial Emergency Order and the inability to enter the premises for meter exchanges. With the new Provincial Emergency Order activated in January 2021 the project has been further delayed and will resume as soon it is safe to do so.
Financial Management Services, Director 2021 Water and Wastewater Budget... Page 42 of 302 AGENDA ITEM 2.3
Corporate Report Report from Legal and Clerks Services, Office of the City Clerk
Date of Report: January 21, 2021 Date of Meeting: February 1, 2021
Report Number: LCS-011-2021 File: 10.12.1
Subject: Council Correspondence
Recommendation That Council endorse the correspondence from Niagara Peninsula Aspiring Global Geopark regarding receiving UNESCO Global Geopark status; and
That Council appoint the individuals, as outlined in the confidential memorandum from the Deputy City Clerk, to the Arts and Culture, and the Accessibility Advisory Committees; and
That Council receive and file additional correspondence distributed for the meeting held February 1, 2021, which is available upon request. FORTHWITH Report The Office of the City Clerk is submitting, for the approval of Council, correspondence received during the period of January 8, 2021 to January 21, 2021.
At the meeting of December 14, 2020, City Council endorsed a motion from Niagara Falls regarding “Request to Niagara Region to Declare State of Emergency on Mental Health, Homelessness and Addiction.” For Council’s reference, similar resolutions from municipalities respecting the matter are included as Sub-Item 3.
Resolutions 1. Township of South West Oxford; Re. Photo Radar 2. United Counties of Stormont, Dundas, Glegarr; Re. Allow for Small Businesses to Reopen 3. Town of Pelham; Re. Request to Declare State of Emergency on Mental Health, Homelessness and Addiction
Reponses to Motions from St. Catharines City Council 4. Town of Fort Erie; Re. Support of Hospice Niagara’s Request to Fully Fund All Hospice Health Care Workers 5. Township of Zorra; Re. Support for St. Catharines Motion-Bill 197 Schedule 6
Report Page 1 of 2 Legal and Clerks Services, Office of the City Clerk Council Corresponden... Page 43 of 302 AGENDA ITEM 2.3
Correspondence from the Niagara Region 6. T. Roy Adams Humanitarian of the Year Award 2021
Correspondence 7. Niagara Peninsula Aspiring Global Geopark; Re. Request to Endorse Geopark 8. AMO Watchfile - January 14, 2021 9. AMO Watchfile - January 21, 2021 10. City of Sarnia; Re. Line 5 Pipeline
Reports Requested by Council 11. Outstanding Reports List – updated January 21, 2021
Prepared by: Submitted and Approved by: Rebecca Alfieri Bonnie Nistico-Dunk Council & Committee Coordinators City Clerk
Legal and ClerksReport Services, Page Office2 of 2 of the City Clerk Council Corresponden... Page 44 of 302
AGENDA ITEM 2.3
Sub-Item 1 312915 Dereham Line R. R. # 1, Mount Elgin, ON N0J 1N0 Phone: (519) 877-2702; (519) 485-0477; Fax: (519) 485-2932 www.swox.org
January 11, 2021 Premier Doug Ford Legislative Building, Queens Park Toronto, ON M7A 1A1
Dear Premier Ford:
Speeding on provincial, county and municipal roadways continues to put the lives of Ontarians at risk. While we have access to several tools to help mitigate speeding traffic, the one tool that is currently not fully available to us is Automatic Speed Enforcement (ASE) (aka Photo Radar). Over the past decade, in South West Oxford the vast majority of charges laid are for drivers travelling well in excess of the posted speed limit. The cost of providing police time for something that could be done through the use of technology is disturbing to our council. The Council feels that it would be far more effective to have police concentrate on other problems such as Break and Enters, illegal drugs and domestic problems.
We need a way to address the poor behaviours and habits that are putting our citizens at risk and tying up much needed first responder resources that could be better utilized to improve the well-being of our communities. Speeding, particularly through our small villages, creates community concerns for the safety and wellbeing of our children and other vulnerable members. We need your help.
In keeping with this The Council of the Township of South-West Oxford duly moved and carried the following resolution at the regular meeting held on January 5, 2021: …RESOLVED that the Council of the Township of South-West Oxford provide direction to the Clerk to send a letter to the Premier, MPP Ernie Hardeman, AMO and all Ontario municipalities in support of the use of Automatic Speed Enforcement (photo radar) by municipalities.
Please help municipalities in the Province by passing the necessary regulations for municipalities to use ASE (if they choose) that will bring about the driving behavioural changes we need.
We look forward to your help with this issue.
Yours truly,
Mary Ellen Greb, CAO c.c. AMO, Honourable Ernie Hardeman, Ontario Municipalities
A leader in the development and delivery of municipal services for the growth and well-being of our community Legal and Clerks Services, Office of the City Clerk Council Corresponden... Page 45 of 302 AGENDA ITEM 2.3
Sub-Item 2
Legal and Clerks Services, Office of the City Clerk Council Corresponden... Page 46 of 302 AGENDA ITEM 2.3 Sub-Item 3 Office of the Clerk Nancy J. Bozzato, Dipl.M.M [email protected] 905-892-2607 x315
January 14, 2021
Ann-Marie Norio, Regional Clerk Niagara Region 1815 Sir Isaac Brock Way Thorold ON L2V 4T7 [email protected]
Attention: Ms. Norio,
Re: Request to Declare State of Emergency on Mental Health, Homelessness and Addiction
At their regular meeting of January 11, 2021, the following resolution was adopted with respect to the above noted matter:
WHEREAS According to the Province of Ontario Emergency Response Plan (2008), Canadian municipalities are free to declare states of emergencies in response to "any situation or impending situation caused by the forces of nature, an accident, an intentional act or other Wise that constitutes a danger of major proportions to life or property."
WHEREAS Approximately 625 residents - including 144 children in Niagara, were counted as homeless (March 2018), with shelter occupancy operating at 109.4 percent capacity
WHEREAS Niagara EMS reported 335 suspected opiate overdoses (Jan-June 2019).
WHEREAS Some Niagara-area municipalities have had services such as mental health removed from their Hospitals, and whereas Niagara is severely lacking in mental health and addiction services
THEREFORE BE IT RESOLVED that the Town of Pelham request the Niagara Region to declare a state of emergency on mental health, homelessness, and addiction.
FURTHERMORE, the Niagara Regional Council, Niagara Region Public Health and Social Services, Premier of Ontario, the provincial Minister of Health, Minister of the Attorney General, Minister of Children, Community, and Social Services, the Minister
20 Pelham Town Square | PO Box 400 |Fonthill, ON | L0S 1E0| www.pelham.ca Legal and Clerks Services, Office of the City Clerk Council Corresponden... Page 47 of 302 AGENDA ITEM 2.3 Office of the Clerk Nancy J. Bozzato, Dipl.M.M [email protected] 905-892-2607 x315
of Municipal Affairs and Housing, and the Leader of the Official Opposition, as well as the Prime Minister of Canada, all regional municipalities and all local area municipalities within the Niagara Region be copied on this resolution."
If you have any questions or concerns regarding the above, do not hesitate to contact the undersigned.
Yours very truly,
(Mrs.) Nancy J. Bozzato, Dipl.M.M., AMCT Town Clerk
cc. Justin Trudeau, Prime Minister of Canada, [email protected] Niagara Region Public Health and Social Services Doug Ford, Premier of Ontario, [email protected] Christine Elliot, Provincial Minister of Health, [email protected] Doug Downey, Minister of Attorney General, [email protected] Todd Smith, Minister of Children, Community and Social Services, [email protected] Steve Cark, Minister of Municipal Affairs and Housing, [email protected] Andrea Horwath, Leader of the Official Opposition, [email protected] Local Niagara Municipalities Sam Oosterhoff, Niagara West MPP, [email protected] Dean Allison, Niagara West MPP, [email protected]
/sl
20 Pelham Town Square | PO Box 400 |Fonthill, ON | L0S 1E0| www.pelham.ca Legal and Clerks Services, Office of the City Clerk Council Corresponden... Page 48 of 302 AGENDA ITEM 2.3
Sub-Item 4
Community Services
Legislative Services
January 19, 2021 File #120203 Sent via email: [email protected]
The Honourable Christine Elliott, Minister of Health 5th floor, 777 Bay Street Toronto, ON
Honourable and Dear Madam:
Re: City of St. Catharines – Support of Hospice Niagara’s Request to Fully Fund All Hospice Health Care Workers
Please be advised the Municipal Council of the Town of Fort Erie at its meeting of January 18, 2021 received and supported correspondence from the City of St. Catharines dated December 9, 2020 recommending the Ontario’s Health Minister accept Hospice Niagara’s request to fully fund all hospice health care workers.
Attached please find a copy of the City of St. Catharines correspondence dated December 9, 2020.
Thank you for your attention to this matter
Yours very truly,
Carol Schofield, Dipl.M.A. Manager, Legislative Services/Clerk [email protected] Attach c.c. Dean Allison, MP. Niagara West [email protected] Chris Bittle, MP, St. Catharines [email protected] Tony Baldinelli, MP, Niagara Falls [email protected] Vance Badawey, MP, Niagara Centre [email protected] Niagara Region Local Area Municipalities
Mailing Address: The Corporation of the Town of Fort Erie 1 Municipal Centre Drive, Fort Erie ON L2A 2S6 Office Hours 8:30 a.m. to 5:00 p.m. Phone: (905) 871-1600 FAX: (905) 871-4022 Web-site: www.forterie.ca
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December 9,2020
Honourable Christine Elliott Minister of Health Sth Floor -777 Bay St. Toronto, ON M7A 2J3
Sent via email: [email protected]
Re: Hospice Workers Our File 10.57.99
Honourable Minister,
At its meeting held on November 30, 2020, St. Catharines City Council approved the following motion
'WHEREAS Hospice Niagara, and hospices across this province, provide a number of critical services needed by Ontario and Niagara residents including: end of life Hospice Residence care; in-Home Palliative Care; Day Hospice; Bereavement Support; and Education and Consultation; and
WHEREAS these services provide a central role in decreasing hospital emergency department volume, incidents of hallway medicine and costly hospital admissions for palliative and end-of- life care; and
WHEREAS Hospice care is the only health service whose health care workers are not fully funded by the Province and hospices and provincial organizations have requested that this funding be provided as delegations before the Standing Committee regarding Bill 3, the Compassionate Care Act;
THEREFORE BE lT RESOLVED that the City of St. Catharines recommends that Ontario's Health Ministry accept Hospice Niagara's request and start fully funding all hospice health care workers fully, and right away; and
BE lT FURTHER RESOLVED that this motion be forwarded directly to the Minister of Health Christine Elliot, all Niagara MPPs, the Region of Niagara and all Niagara municipalities."
lf you have any questions, please contact the Office of the City Clerk at extension 1524.
Bonnie Nistico-Dunk, City Clerk Legal and Clerks Services, Office of the City Clerk :em Rm{cEmrEH"}
JAN t I 2CI2$ Po Box 301 2, 50 Church St., Si. Cqthorines, oN L2R 7C2 Tel: 905.688.5600 | TTY: 905.688.4889 | www.stcothorines.co ffiY {JEq,;;U: i
Legal and Clerks Services, Office of the City Clerk Council Corresponden... Page 50 of 302 AGENDA ITEM 2.3 trst.cothorines
Cc Chris Bittle, MP - St. Catharines, [email protected] Vance Badawey, MP - Niagara Centre, [email protected] Dean Allison, MP - Niagara West, [email protected] Tony Baldinelli, MP - Niagara Falls, [email protected] Niagara Region Niagara Area Municipalities
PO Box 3412,50 Church St., St. Cothqrines, ON L2R7C2 Tel: 905.688.5600 | TTY: 905.688.4889 | www.stcothorines.co
Legal and Clerks Services, Office of the City Clerk Council Corresponden... Page 51 of 302 AGENDA ITEM 2.3 TOWNSHIP OF ZORRA Sub-Item 5 274620 27th Line, PO Box 306 Ingersoll, ON, N5C 3K5 Ph. 519-485-2490 • 1-888-699-3868 • Fax 519-485-2520 Website www.zorra.ca • Email [email protected]
January 21, 2021
Hon. Jeff Yurek, Minister of the Environment, Conservation and Parks Via email: [email protected]
Dear Minister Yurek:
At a Council meeting on January 20, 2021, the following resolution was passed:
Resolution No. 34-01-2021 Moved by: Paul Mitchell Seconded by: Steve MacDonald “THAT the Township of Zorra agrees with the Town of Amherstburg and supports the resolution passed by the City of St. Catharines on October 5th, 2020 regarding Schedule 6 of Bill 197, COVID 19 Economic Recovery Act 2020;
AND THAT staff send correspondence, including the St. Catharines resolution, confirming our support for giving final approval for landfills within their jurisdiction to the “host municipality” to: • Premier Doug Ford, • Steve Clark, Minister of Municipal Affairs and Housing, • Jeff Yurek, Minister of Environment, Conservation and Parks, • Ernie Hardeman, MPP for the riding of Oxford, • Town of Amherstburg, • City of St. Catharines, and • All municipalities within the County of Oxford.” Disposition: Carried
Yours truly,
Donna Wilson Director of Corporate Services
Encl.
CC: Honourable Doug Ford, Premier of Ontario [email protected] Hon. Steve Clark, Minister of Municipal Affairs and Housing [email protected] Hon. Ernie Hardeman, MPP for the Riding of Oxford [email protected] Town of Amherstburg [email protected] City of St. Catharines [email protected] All Municipalities within the County of Oxford
21-010
Legal and Clerks Services, Office of the City Clerk Council Corresponden... Page 52 of 302 AGENDA ITEM 2.3
October 7, 2020
Honourable Jeff Yurek Minister of Environment, Conservation and Parks College Park 5th Flr, 777 Bay St, Toronto, ON M7A 2J3
Sent via email: [email protected]
Re: Development Approval Requirements for Landfills - (Bill 197) Our File 35.2.2
Honourable and Dear Sir,
At its meeting held on October 5, 2020, St. Catharines City Council approved the following motion:
WHEREAS Schedule 6 of Bill 197, COVID-19 Economic Recovery Act, 2020 considers amendments to the Environmental Assessment Act relating to municipal autonomy and the principle that municipalities can veto a development outside their municipal boundary in an adjacent municipality; and
WHEREAS Bill 197 empowers multiple municipalities to ‘veto’ development of a landfilling site within a 3.5 km zone inside the boundary of an adjacent municipality; and
WHEREAS Bill 197 establishes a dangerous precedent that could be expanded to other types of development; and
WHEREAS Bill 197 compromises municipal autonomy and the authority of municipal councils to make informed decisions in the best interest of their communities and municipal taxpayers; and
WHEREAS amendments in Schedule 6 could cause conflict in the effective management of landfill sites, put significant pressure on existing landfill capacity, and threaten the economic activity associated with these sites;
THEREFORE BE IT RESOLVED That the City of St. Catharines calls upon the Government of Ontario (Ministry of the Environment, Conservation and Parks (MOECP) to amend Bill 197, COVID-19 Economic Recovery Act, 2020, to eliminate the development approval requirement provisions from adjacent municipalities and that the ‘host’ municipality be empowered to render final approval for landfills within their jurisdiction; and
Legal and Clerks Services, Office of the City Clerk Council Corresponden... Page 53 of 302 AGENDA ITEM 2.3
BE IT FURTHER RESOLVED that a copy of this motion be forwarded to Premier Doug Ford, Jeff Yurek the Minister of Environment, Conservation and Parks, Steve Clark the Minister of Municipal Affairs and Housing, local MPP's., the Association of Ontario Municipalities (AMO) and Ontario’s Big City Mayors (formerly Large Urban Mayors Caucus of Ontario-LUMCO)
BE IT FURTHER RESOLVED, that a copy of this resolution be forwarded to all Ontario municipalities with a request for supporting motions to be passed by respective Councils and copies of the supporting motion be forwarded to Premier Doug Ford, Jeff Yurek the Minister of Environment, Conservation and Parks, Steve Clark the Minister of Municipal Affairs and Housing, the local MPP’s, the Association of Ontario Municipalities (AMO).
If you have any questions, please contact the Office of the City Clerk at extension 1506.
Bonnie Nistico-Dunk, City Clerk Legal and Clerks Services, Office of the City Clerk :ra
Cc. Hon. Premier Doug Ford [email protected] Hon. Steve Clark, Minister of Municipal Affairs, Housing [email protected] Jennifer Stevens, MPP - St. Catharines, [email protected] Jeff Burch, MPP - Niagara Centre, [email protected] Wayne Gates, MPP - Niagara Falls, [email protected] Sam Oosterhoff, MPP - Niagara West-Glanbrook, [email protected] Association of Municipalities of Ontario [email protected] Chair of Ontario's Big City Mayors, Cam Guthrie [email protected] All Ontario Municipalities (via email)
Legal and Clerks Services, Office of the City Clerk Council Corresponden... Page 54 of 302 AGENDA ITEM 2.3
Administration Sub-Item 6 Office of the Regional Clerk 1815 Sir Isaac Brock Way, PO Box 1042, Thorold, ON L2V 4T7 Telephone: 905-685-4225 Toll-free: 1-800-263-7215 Fax: 905-687-4977 www.niagararegion.ca
January 7, 2021
DISTRIBUTION LIST
SENT ELECTRONICALLY
T. Roy Adams Humanitarian of the Year Award 2021
We are pleased to announce the nineteenth year of the T. Roy Adams Humanitarian of the Year Award. The award honours the memory of the late T. Roy Adams and is presented annually to a current resident of Niagara who best exemplifies his values and dedication to community service; a person who sees volunteerism as an integral part of their life.
Attached is a Nomination Package that includes the eligibility criteria and nomination procedures. Please circulate this to your Municipal Councillors and encourage them to share this information with their colleagues and constituents. The Nomination Package was distributed to Regional Councillors on December 18, and has been posted on Niagara Region’s website. We request that you place the enclosed award information sheet on your municipal website with a link to www.niagararegion.ca. The deadline for nominations is March 31, 2021, with the presentation of the award to take place at Regional Council in July 2021.
The Nomination Package will also be circulated to volunteer groups via a broadcast e-mail from INCommunties. Any questions or comments should be directed to Charlotte Powell at 905-980-6000, ext. 3221.
Thank you for your assistance.
Sincerely,
Ann-Marie Norio Regional Clerk :cjp Enc. CLK-C 2021-003
Legal and Clerks Services, Office of the City Clerk Council Corresponden... Page 55 of 302 AGENDA ITEM 2.3 T. Roy Adams Humanitarian of the Year Award 2021 January 7, 2021 Page 2
Distribution List
Ms. Carol Schofield, Town Clerk, Town of Fort Erie Ms. Sarah Kim, Town Clerk, Town of Grimsby Ms. Julie Kirkelos, Town Clerk, Town of Lincoln Mr. Bill Matson, City Clerk, City of Niagara Falls Mr. Peter Todd, Town Clerk, Town of Niagara-on-the-Lake Ms. Nancy Bozzato, Town Clerk, Town of Pelham Ms. Amber LaPointe, City Clerk, City of Port Colborne Ms. Bonnie Nistico-Dunk, City Clerk, City of St. Catharines Ms. Donna Delvecchio, City Clerk, City of Thorold Mr. William Kolasa, Township Clerk and CAO, Township of Wainfleet Ms. Tara Stephens, City Clerk, City of Welland Ms. Joanne Scime, Township Clerk, Township of West Lincoln
Legal and Clerks Services, Office of the City Clerk Council Corresponden... Page 56 of 302 AGENDA ITEM 2.3
T. ROY ADAMS HUMANITARIAN OF THE YEAR AWARD
T. Roy Adams was an eminent Niagaran, well known throughout the Region, Canada, and abroad for his service to God, his country and his fellow citizens.
In 2003, in memory of the late Councillor T. Roy Adams, Niagara Region initiated a memorial award in his name to honour a resident of Niagara who best exemplifies Roy’s values and dedication to community service; a person who sees volunteerism as an integral part of their life.
Eligibility Guideline: • a current resident of Niagara • evidence that the spirit of volunteerism and community service plays an integral part of the individual’s life • a person whose community service has involved the citizens of Niagara
Nomination Process:
A nominee for the T. Roy Adams Humanitarian Award may be sponsored by: • an organization, or • two individuals – a sponsor and one co-sponsor not related to the nominee
The nomination must include the following information: • the completed Nomination Form • a detailed description, approximately two pages in length, that highlights the nominee’s lifetime of community service and volunteerism (see Evaluation Matrix for criteria) • an explanation as to why the sponsors feel the nominee deserves to be recognized with this award • in addition, letters of support may be included
Nominees are eligible for the year in which they are nominated. Active politicians and active regional staff are not eligible. Candidates will not be considered posthumously.
Selection Process
A Committee comprised of Regional Councillors, Regional Staff and one member of the community will review the nominations and select the recipient. (see Evaluation Matrix)
The award will be presented at the Regional Council meeting in July. The recipient’s name will also be engraved on the commemorative plaque which is displayed in the lobby of the Regional Headquarters Building.
Nomination Form
Nominations can be submitted by e-mail to [email protected], online at www.niagararegion.ca or mailed to: Regional Clerk, Niagara Region, 1815 Sir Isaac Brock Way, Thorold, Ontario L2V 4T7
Deadline for submitting nominations is March 31, 2021.
More Information or a Nomination Package: Contact Charlotte Powell at (905) 980-6000, ext. 3221.
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T. Roy Adams Biography
Thomas ‘Roy’ Adams was born and raised in St. Catharines, the second eldest of 10 children (seven boys and three girls). Born to parents who encouraged their children to serve the Lord, Roy committed his life to service through the Salvation Army. He served as a leader of the youth (Sunday School Teacher, Young People’s Sergeant Major, Young People’s Band Leader, and Chairman of the Group Committee of the Boy Scouts) and through adult ministries (Songster Leader and Deputy Bandmaster). When not in active leadership, his steady participation in the music ministries exemplified the faithfulness of his purpose.
Roy enlisted in the Lincoln and Welland Regiment in June 1940, served overseas and was honourably discharged in 1945. He remained a member of the Regimental Association, and was Director for 3 years, and President until his death. He also was a member of the Royal Canadian Legion, and enjoyed planning, organizing and arranging charter flights to Holland, as well as annual reunions, for many years.
Roy was employed by Foster Wheeler for more than 20 years in various capacities, including personnel supervisor. In 1972 he joined ARC Industries as workshop director and was then appointed Executive Director of the St. Catharines Association for the Mentally Retarded. He was elected Mayor of the City of St. Catharines in 1976 and served in that capacity for 9 years, and served on Regional Council from 1988 until 2002. During Roy’s terms on Regional Council, he was a member of several standing committees, served as Chair of the Community and Health Services Committee for many years, and Chair of the Police Services Board.
Roy was actively involved in many organizations including: the Association of Municipalities of Ontario; the St. Catharines General Hospital Board of Governors; the Niagara District Health Council, Executive Committee; the Niagara Rehabilitation Centre; the St. Catharines Hydro Electric Commission; the St. Catharines South Rotary Club; the Christian Business Men, St. Catharines; President, Canadian Bible Society, St. Catharines; President, Probus Club, St. Catharines and District; Christian Connections; the Lincoln and Welland Regiment Band; the Thorold Reed Band; the Niagara Falls Concert Band; the Port Colborne Band; the Clown Band/Hungry Seven; and the Bandmaster/Director of Holland’s Glorie Band.
Roy believed that “every person matters”, and had a sincere interest in people, particularly those less fortunate, whether because of disability or misfortune. He was a man respected for his service and dedication to the people of St. Catharines, Niagara Region, and the country.
Legal and Clerks Services, Office of the City Clerk Council Corresponden... Page 58 of 302 AGENDA ITEM 2.3
T. ROY ADAMS HUMANITARIAN OF THE YEAR AWARD
2021 NOMINATION FORM
NOMINEE Surname: ______Given Name(s): ______Phone: ______Address: ______
SPONSORS A nominee for the T. Roy Adams Humanitarian of the Year Award may be sponsored by an organization, OR two individuals - a sponsor and a co-sponsor, not related to the nominee. Nominees are eligible for the year in which they are nominated.
ORGANIZATION: ______Corporate Address: ______Contact Person: Surname: ______Given Name:______E-mail: ______Phone: ______
INDIVIDUALS Sponsor (Contact Person): Surname: ______Given Name:______Address: ______E-mail: ______Phone: ______Co-Sponsor: Surname: ______Given Name:______Address: ______E-mail: ______Phone: ______
The nomination must include the following information: • the completed Nomination Form • a detailed description, approximately two pages in length, that highlights the nominee’s lifetime of community service and volunteerism (see Evaluation Matrix for criteria) • an explanation as to why the sponsors feel the nominee deserves to be recognized with this award • in addition, letters of support may be included
All nominations will be kept confidential The deadline for nominations is March 31, 2021
This information is collected in accordance with the Municipal Freedom of Information and Protection of Privacy Act (MFIPPA) for the purpose of administering the T. Roy Adams Humanitarian of the Year Award. Any questions relating to the collection of personal information may be directed to the Privacy Office, at (905) 980-6000, ext. 3779.
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T. ROY ADAMS HUMANITARIAN OF THE YEAR AWARD
EVALUATION MATRIX
Explanation of Criteria Comparative Candidate Evaluation Criteria The humanitarian service(s) should be considered in the following Weight (%) context:
Quality of the ‘humanitarian' service Is it truly humanitarian? 20
Scope of Humanitarian Impact Who does it affect? 16
What is the degree of Personal commitment/ sacrifice sacrifice/commitment 16 (time, cost) (e.g. time commitment)?
Need for the community service What is the community demand? 14
Is it a common/ubiquitous community New, unique initiative/idea 12 service?
Niagara benefit Is it region-wide or strictly local? 10
Extent of volunteer/professional Is it an extension of the nominee's 8 capacity current job (remuneration)? What is the relative quality & content References of submission through additional 4 support information?
Total Weighted Scores: 100
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Sub-Item 7
Niagara Peninsula Aspiring Global Geopark 11 Nello Street St. Catharines, ON L2N 1G5
01-20-21
Dear Mayor & Council,
As challenging as 2020 has been, progress in the pursuit of UNESCO Global Geopark status for the Niagara Peninsula has continued. In September 2020, the Board of Directors of the Niagara Peninsula Aspiring Global Geopark submitted our Letter of Intent to the Canadian Geopark Network that we wish to submit our application to them, thereby ensuring that in Canada we are “next in line” for consideration for UNESCO Global Geopark status.
Globally there are over 180 UNESCO Global Geoparks including five in Canada, each playing a crucial role in sustainable tourism and tourism resiliency.
We thank you for your continued support and wish to formally request the official endorsement of the Niagara Peninsula Aspiring Global Geopark by the City of St. Catharines Mayor and Council.
Respectfully,
Darren Platakis/Ian Lucas Co-chair/Co-chair
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Sub-Item 8
January 14, 2021 In This Issue - AMO signs MOU with Ontario Federation of Indigenous Friendship Centres. - The Rural Economic Development program now open. - Don’t regret missing ROMA 2021. - Second chance for Energy Reporting. - Municipal Group Buying Program balloons to 150 participants! - Careers: Simcoe, Durham, Amherstburg, Nipigon, Algonquin Highlands & Machin.
AMO Matters In late 2020, AMO and the OFIFC signed an MOU that brings both organizations to the table on issues that matter to our communities. The MOU will help strengthen the relationship between Ontario’s Indigenous and non-Indigenous communities.
Provincial Matters The Rural Economic Development program is now open and accepting applications. To be eligible for the program you must be: a municipality; a not-for-profit entity; an Ontario Indigenous community or organization; a Local Services Board. This intake will close on February 1, 2021.
Eye on Events Ministers’ Forums, political analysis, Zone meet ups, concurrent sessions digging into the biggest issues your communities face are all on the ROMA agenda. With a little over a week to register, don’t think twice, register here.
LAS Did you miss the O.Reg. 507/18 annual energy reporting deadline last year? The portal may be closed, but the Ministry of Energy will still accept your 2018 consumption data. Simply email your organization’s report or any questions you might have to [email protected]. Next deadline is July 1, 2021 to report on 2019 consumption data.
The number of participants in the Municipal Group Buying Program exploded from 14 to 150 in 2020! We’re thrilled to see how our municipalities have embraced this program and glad we can help save time and money on the things you buy every day. Contact us for more information.
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Careers Manager, Public Housing - County of Simcoe. Reports to: Director, Social Housing. Employment Status: Permanent Full-Time. Reference Code: 1018. Location Midhurst. Closing Date: January 25, 2021. View the job description and submit your application online at County of Simcoe.
Manager of the Rapid Transit Office (RTO) - Region of Durham. The Region of Durham is the fastest growing area in the Greater Golden Horseshoe. The Region understands Rapid Transit is key to accommodate this growth, and connects people to opportunities in a sustainable way. Job ID 13894. Close Date: January 29, 2021. To apply, please visit Durham Region Job Postings.
Planner (Temporary Full-Time) - Town of Amherstburg. Position Term: Up to 2 years. Reports to: Manager of Planning Services. Visit Employment Opportunities on the Town's website for a detailed job description. Qualified applicants are invited to submit a resume no later than Monday, February 1, 2021 at 4:30 p.m. to [email protected].
Treasurer - Township of Nipigon. Interested applicants are invited to review the Treasurer-Tax Collector job description on the Township of Nipigon's website and forward resumes marked "Confidential" prior to 12 noon on Friday, February 5, 2021 by regular mail, personal delivery or email to: Attention: Kelly Paakkunainen, CAO/Clerk, Township of Nipigon, 52 Front Street, PO Box 160, Nipigon, Ontario P0T 2J0. Email: [email protected].
Operations Manager - Township of Algonquin Highlands. Reports to the Chief Administrative Officer. Please visit the Township's website for the full job description. Please submit your cover letter and resume in confidence mark" to: Dawn Mugford- Guay, Human Resources Coordinator, Township of Algonquin Highlands, 1123 North Shore Road, Algonquin Highlands, ON K0M 1J1. Email: [email protected].
Economic Development Officer - Municipality of Machin. Employment Start Date: February 1, 2021. Position Status: full-time, 3 year contract. Deadline: Posting will remain open until a suitable candidate has been selected. Direct Applications to: The Municipality of Machin, Attn: Tammy Rob, Box 249, Vermilion Bay, ON P0V 2V0 Email: [email protected], Phone: 807.227.2633 ext.22, Fax: 807.227.5443.
About AMO AMO is a non-profit organization representing almost all of Ontario's 444 municipal governments. AMO supports strong and effective municipal government in Ontario
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and promotes the value of municipal government as a vital and essential component of Ontario's and Canada's political system. Follow @AMOPolicy on Twitter!
AMO Contacts AMO Watch File Tel: 416.971.9856 Conferences/Events Policy and Funding Programs LAS Local Authority Services MEPCO Municipal Employer Pension Centre of Ontario ONE Investment Media Inquiries Tel: 416.729.5425 Municipal Wire, Career/Employment and Council Resolution Distributions
*Disclaimer: The Association of Municipalities of Ontario (AMO) is unable to provide any warranty regarding the accuracy or completeness of third-party submissions. Distribution of these items does not imply an endorsement of the views, information or services mentioned.
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Sub-Item 9
January 21, 2021 In This Issue - Professional Engineers Ontario adopts Notarius digital signatures. - ROMA 2021 Conference. - Important information for registered ROMA delegates! - Notice of OSUM 2021 Annual Conference cancellation. - Automotive Parts Supply: Municipal Group Buying webinar. - Overcoming boredom during lockdown - LAS must-see shows. - Kraft Hockeyville nominations open: Deadline to submit your story is February 14. - Careers: Springwater, Sarnia, Brock, Amherstburg and London.
AMO Matters Professional engineers can now use Notarius technology to apply a regulator-issued digital signature to engineering documents. AMO is pleased to learn that our partner’s digital signing solutions is now available to municipal engineers in good standing to securely sign documents remotely while maintaining the integrity of documents.
Eye on Events Now only days away, the ROMA Conference will engage you in key issues on the municipal radar for 2021. Join your colleagues in getting in front of what is shaping up to be another extraordinary year.
On Friday, January 22, you will receive an email with your ROMA Conference registration information, including: a link to access the conference, your unique credentials to log in and a link to a demo video on how to use the conference platform. You will be able to access the platform on Sunday, January 24.
At the recent meeting of the Ontario Small Urban Municipalities (OSUM) Executive Committee, a decision was made to cancel the 2021 Annual General Meeting and Conference scheduled to be held in Brant County in spring of this year due to the ongoing impact and uncertainty of COVID-19. OSUM plans to connect with small urban municipal leaders through webinars and communications over 2021.
LAS Webinar February 10 at 10 am: We’re excited to add Automotive Parts Supply to our Municipal Group Buying Program. Register here to learn more about this new category and its supplier, NAPA Auto Parts. Save time and money while keeping your fleet on the move.
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Staying entertained during a pandemic can be a bit of a challenge. Check out this week's blog to see which shows LAS staff are watching to keep boredom at bay.
Municipal Wire* The Township of Lucan, Ontario won the Kraft Hockeyville competition in 2018. The grand prize winner will have an opportunity to host an NHL preseason game and receive $250,000 for arena upgrades. Three-runner up communities will get $10,000 to purchase new hockey equipment for their minor hockey programs. To submit a nomination visit the Kraft Hockeyville website.
Careers General Manager, Infrastructure & Operational Services - Township of Springwater. Reports to the Chief Administrative Officer. Apply online by visiting Springwater Careers and click on Apply Now to submit your cover letter and resume for Competition Number 2021-01. Closing Date: January 29, 2021. Note: Applications that are not submitted online will not be considered.
Elections Manager - City of Sarnia. Reporting directly to the City Clerk, the successful incumbent will provide leadership in the preparation, coordination and management of all related activities for the 2022 Municipal Election. This is a contract position for a period of up to two (2) years. Candidates are invited to submit a resume in confidence to [email protected] indicating “2021-04 – Elections Manager” by February 3, 2021.
Director, Community & Protective Services - Town of Amherstburg. This position is responsible for the oversight of the Town’s Parks and Naturalized Areas, Recreation Services, Tourism and Culture, Municipal Facilities, and Fire Services divisions. For a detailed job description, visit Careers on the Town's website. Please submit a resume with a cover letter to Michelle Rose, Manager of Human Resources at [email protected] on or before 4:30 p.m., February 9, 2021.
Director of Finance & Treasurer - Township of Brock. This job posting, and the job description (to be updated), are available at Township of Brock Careers. Interested applicants are invited to submit a cover letter and resume, which clearly describe how the candidate meets the qualifications, marked confidential, by no later than 4:00 p.m. on Monday, February 8, 2021 to: Dean Hustwick, Chief Administrative Officer, [email protected].
Director, Planning & Development Services - Town of Amherstburg. This position is responsible for the oversight of the Town’s Planning, Building Services, Licensing and Enforcement divisions, and for the administration of the Town’s police services portfolio. For a detailed job description, visit Careers on the Town's website. Please submit a resume with a cover letter to Michelle Rose, Manager of Human Resources at [email protected] on or before 4:30 p.m., February 9, 2021.
Director, Anti-Racism & Anti-Oppression Unit - City of London. To view the full Position Brief, please visit KCI Talent. For more information about this exciting
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leadership opportunity, please contact Ellie Rusonik, Associate Vice President, Search + Talent or Samantha David, Senior Search Consultant at KCI (Ketchum Canada Inc.) via email at [email protected]. Please send a resume and letter of interest to the email address in previous sentence by February 15, 2021. All inquiries and applications will be held in strict confidence.
About AMO AMO is a non-profit organization representing almost all of Ontario's 444 municipal governments. AMO supports strong and effective municipal government in Ontario and promotes the value of municipal government as a vital and essential component of Ontario's and Canada's political system. Follow @AMOPolicy on Twitter!
AMO Contacts AMO Watch File Tel: 416.971.9856 Conferences/Events Policy and Funding Programs LAS Local Authority Services MEPCO Municipal Employer Pension Centre of Ontario ONE Investment Media Inquiries Tel: 416.729.5425
Municipal Wire, Career/Employment and Council Resolution Distributions
*Disclaimer: The Association of Municipalities of Ontario (AMO) is unable to provide any warranty regarding the accuracy or completeness of third-party submissions. Distribution of these items does not imply an endorsement of the views, information or services mentioned.
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Sub-Item 10
MIKE BRADLEY MAYOR CTTY OF SARNIA 255 N. Christina Street P.O. Box 3018 Sarnia, ON Canada N7T 7N2 519 - 332-0330 Ext. 3312 519 - 332-3995 (fax) 519 - 332-2664 (TfY) www,sarnia.ca [email protected] January t9,202L
Your Worship
Dear Sir/Madam:
RE: LINE 5 PIPELINE
I am forwarding to you a letter written to the Prime Minister of Canada with respect to the Line 5 Pipeline.
I am bringing the matter of the Line 5 Pipeline to your attention as this is not just an issue for one community or one Province but will impact on many Canadians including those in your community.
If this pipeline is closed it will:
a dramatically increase the price of fuel in Canada as it relates to gasoline and propane.
a bring about the transportation of those fuels through other means which have greater safety concerns including rail, truck and ship, possibly through your community.
a as an arbitrary action, have significant impact on the relationship between Ontario's largest trading paftner-Michigan--and will result in other ramifications. Over $85 billion in trade per year crosses the two borders and the pipeline closing will impact negatively on other trade issues, from auto to agriculture, in the years ahead.
Thank you in advance for your consideration in reviewing this correspondence. If you wish to add your voice to the Prime Minister it would be deeply appreciated.
Yours sincere ly,
Mike Bradley Mayor of Sarnia 0,,#Ø That Matter
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MIKE BRADLEY MAYOR CITY OF SARNIA 255 N. Christina Street P,O. Box 3018 Sarnia, ON Canada N7T 7N2 519 - 332-0330 Ext. 3312 519 - 332-3995 (fax) 519 - 332-2664 (TfY) www.sarnia.ca [email protected]
January 4, 202L
The Right Honourable lustin Trudeau, P.C., M.P. Offíce of the Prime Minister B0 Wellington Street Ottawa, ON KlA 042
Dear Prime Minister Trudeau:
RE: LINE 5 PIPELINE
On behalf of the citizens of Sarnia I would like to express our grat¡tude for the work your government has done to protect Canadians through the Covid-19 pandemic.
We know protecting the ongoing economic and energy security of Canadians is paramount for your government, particularly as we move into economic recovery. This is why I am raising today my deep concern and that of the community of Sarnia Lambton that the Governor of Michigan, Gretchen Whitmer's efforts to shut down the Line 5 easement could have extremely damaging impacts on the energy needs of Canadian and U.S. consumers, as well as the businesses and livelihoods that depend on the Line 5 pipeline.
As Mayor of the City of Sarnia, the Sarnia community and region of Southwestern Ontario relies on Line 5 for thousands of jobs and economic output that strengthens both Ontario and Canada.
I am urging you to reach out to U.S. President-Elect, Joe Biden and ask that this matter be handled by upholding the 1.977 Transít Pipeline Treaty, which the President-Elect voted ín favour of.
A disruption of Line 5 would result in a daily shortage of over 14 million gallons of gasoline and other transportation fuels, impacting people in Ontario, Quebec, Wisconsin, Indiana, Ohio and Pennsylvania. Ten regional refineries would be significantly and adversely impacted, leading to a significant loss of jclbs. Disrupting the line would also create regional -ùItre^_ propane shortages, higher energ!, prices and hardship for familíes, especiaf,yå*n"tW That Matter
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those on fixed incomes or of modest means. That's unacceptable - even more so during this COVID-19 pandemic.
The Canada-U.5. L977 Transit Pipelines Treaty (negotiated by Prime Minister Pierre Trudeau and President Jimmy Carter - and voted for by then-first- term Senator Joe Biden) precludes this kind of interruption of existing hydrocarbon pipelines. The Transit Treaty ensures that the United States, including its individual states, cannot impede pipeline operations that Canada depends on for exports or imports.
To address Michigan's clear violation of the Transit Treaty, the document provides a mechanism for Canada to negotiate with the United States, state to state. Given the national importance of Line 5, we need you to engage assertively with the incoming Biden Administration, communicating firmly that Governor Whitmer's unlawful and baseless effort to terminate the Line 5 easement is unacceptable and in clear violation of the 1977 Transit Pipelines Treaty. This is an action only you and your government can take and we are urging you to move quickly.
The Governor's attempt to revoke and terminate the Line 5 easement is improper, unlawful and will negatively impact people, energy and economic security on both sides of the border. Enbridge is currently seeking permit approval for the tunnel project and replacement pipeline whích, upon completion, will make a safe Straits crossing even safer. We and many others need you to take action to ensure a peaceful resolution to this issue. Thank you for your attention to this matter.
Yours síncerely,
ike Bradley Mayor of Sarnia
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The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance The Honourable Seamus O'Regan, Minister of Natural Resources The Honourable François-Philippe Champagne, Mínister of Foreign Affairs The Honourable Doug Ford, Premier of Ontario The Honourable Greg Rickford, Minister of Energy, Northern Development and Mines The Honourable Bill Walker, Associate Minister of Energy
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Corporate Report
City Council
Report from: Office of the Chief Administrative Officer
Report Date: January 28, 2021 . Meeting Date: February 1, 2021
Report Number: CAO-014-2021 . File: 10.4.19
Subject: COVID-19 Update – February 1, 2021 Strategic Pillar:
Recommendation That Council approve the amendment of By-law 2014-67 as amended (“AMPS By-law”), a by-law which established a System Administrative Monetary Penalties, to allow for electronic hearings to take place as in compliance with section 5.2(1) of the Statutory Powers Procedures Act which allows for electronic hearings in a proceeding. FORTHWITH Summary The purpose of this report is to provide Council with ongoing updates on the City’s Municipal Emergency Control Group’s (MECG) planning activities to address the rapidly evolving global COVID-19 pandemic from a strategic and proactive approach.
For the latest information on resurgence and recovery, visit http://www.EngageSTC.ca and the City’s social media platforms. For more information on City services and facilities, or to report a concern relating to COVID-19, visit www.stcatharines.ca/COVID19. Relationship to Strategic Plan City staff is responding to the COVID-19 pandemic as it has affected the economic, social, environmental and cultural sustainability of the city. City staff have prioritized their objectives to heavily focus on recovery efforts of COVID-19 to mitigate the impact on the community and support the sustainably pillars through new and innovative ways. Background On March 12, 2020, the City of St. Catharines partially activated its Emergency Operations Centre (EOC), to support the work of the Municipal Emergency Control Group (MECG) in their response to COVID-19 pandemic and the provision of essential services.
Details regarding the MECG’s preparedness, response, recovery and future planning can be found in this report.
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Report The COVID-19 pandemic continues to pose a serious threat to the community as well as the City’s ability to provide all levels of service in the same manner as they were previously delivered.
The MECG continues to respond to the pandemic proactively and has been diligently planning for potential future developments. The MECG continues to be dedicated to the safety of staff and the community, while ensuring essential services continue to be delivered without interruption and focusing on recovery and resurgence.
MECG’s planning and decisions are guided by their four key objectives: To focus on recovery while continuing to provide essential services; To ensure the health, safety and security of the public and staff during the pandemic and through the recovery process; To continue to be able to support Niagara Health, Public Health, Niagara Region and our other partners; and To ensure the organization remains in a financially stable condition during this pandemic. Province-Wide Shutdown and State of Emergency Update The Declaration of Provincial Emergency that was declared on January 12, 2021 has been extended until February 9, 2021, unless extended further. This Emergency Declaration and Emergency Orders were issued in response to a surge in COVID-19 cases that threatened to overwhelm the province's healthcare system.
All orders under the Emergency Management and Civil Protection Act (EMCPA), including O. Reg 11/21 (Stay-at-Home Order), O. Reg 8/21 (Enforcement of COVID-19 Measures) and O. Reg 13/21 (Residential Evictions) were also extended. Orders under the Reopening Ontario Act (ROA) also continue to be in force.
The Stay-at-Home Order has been extended until at least February 9, 2021. This order required every individual shall remain in their place of residence at all times unless leaving their place of residence is necessary for essential purposes. Some of these purposes include but are not limited to: work, school, childcare, obtaining goods / services, and assisting others.
The Ontario government has extended most emergency orders under the Reopening Ontario (A Flexible Response to COVID-19) Act, 2020 (ROA) until February 19, 2021. A list of the active orders can be found on the province’s website.
The provincial shutdown, which was issued on December 26, 2020, remains in effect until at least February 11, 2021.
Report Page 2 of 5
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Vaccine Update Federal The Federal government is responsible for the procurement and distribution of vaccine to the provinces. Phizer - BioNTech and Moderna are the two vaccines that the federal government has approved in Canada. Pfizer advised Canada earlier this month that upgrades to its plant in Belgium would temporarily slow production and reduce doses delivered to every country except the United States, which has its own production facility. The factory is expected to return to full production on February 15, 2021. Due to this shortage, Canada’s vaccine deliveries will be cut in half with up to 400,000 doses delayed over the coming weeks. This shortage has impacted all provincial planned rollouts of the vaccine. Provincial As a result of the shortage of available vaccine, Ontario has put a temporary pause of COVID-19 vaccinations of long-term care staff and essential caregivers so that the focus can be shifted to administer the shots to all nursing home residents and vulnerable residents. When appropriate volumes of the vaccine are made available, the province will continue with the rollout of the vaccine to health care staff and other priority population listed in Phase 1 of the Province’s vaccination plan. The province is ready to administer the COVID-19 vaccine and expand the number of vaccination sites as soon as doses are received. Ontario has capacity to vaccinate nearly 40,000 people per day and is building capacity to triple or quadruple that capacity pending federal government supply. Niagara Region Niagara Health has temporarily put a pause on the vaccination of health care staff and priority staff so that the available vaccines could be reallocated to the vulnerable populations. Niagara Region Public Health (NRPH) is leading the rollout of the vaccines to those populations and is currently progressing well through the first dosage. Long Term Care and Assisted Living residents have received their first of two dosages and NRPH continue to rollout the first dosage to retirement homes residents. NRPH is expecting to complete the first dosage of retirement home residents by February 1, 2021. Remaining supplies will be used to continue with the rollout of second dosages for those residents. Vaccination Sites Staff continue to work alongside Niagara Health and Niagara Region Public Health to provide support where needed. The City has identified multiple facilities that could be used as possible vaccination sites and is working alongside our partners to find a facility or facilities that meets their needs. Warming Centres Another key role of the MECG is to be attentive to other emergency situations that might arise, such as inclement weather. With the arrival of winter, temperatures are expected to drop substantially making warming centres a priority for those living rough. City staff will be opening a warming centre at Market Square for those seeking shelter during periods of extreme cold. Report Page 3 of 5
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City staff worked with Public Health to draft a safety plan to operate the warming Centre safely during the pandemic. This will allow for 30 individuals safely distanced while wearing masks and properly sanitizing before entry. The warming centre will be staffed by a contracted security company, wearing proper PPE and behind barriers, to actively screen individuals seeking warmth. Access to hand sanitizer, masks and washrooms either porta-potties or outdoor City Hall washrooms will be available.
In consultation with staff at the Niagara Region, it was advised that if individuals fail screening, security staff should contact Niagara Assertive Street Outreach (NASO) at 211, at which time an outreach worker will be dispatched to follow the proper protocols to get the individuals tested and to an undisclosed isolation centre. City staff will have fail-kits available for individuals that fail screening, which includes a small takeaway hand sanitizer and a medical grade mask.
The warming centre will not be available while the Farmer’s Market is in operation during the daytime hours of Saturdays, however, City staff have consulted with Silver Spire Church, which does provide a warming centre, hot meals, washrooms and showers to individuals that are homeless from 10am-5pm on Saturday and Sundays.
City staff have consulted with NASO and NRPS to ensure that check-ins are provided at the warming centre for the health and safety of staff and individuals seeking shelter. Virtual Hearings for AMPS The Administrative Monetary Penalty System (AMPS) is an efficient and flexible process for payment, appeal and collection of parking penalties in respect to parking, standing or stopping of vehicles in the City of St. Catharines.
The City’s AMPS By-law No. 2014-67 as amended was passed by Council on April 14, 2014. The AMPS program allows individuals to submit payment of their parking violation, directly to the City within 15 days of issue to avoid any late penalties. The AMPS process is managed by the City of St. Catharines. Under a signed agreement, the City has agreed to appoint City of Thorold to be responsible for providing a Hearings Officer who will adjudicate any appeals from the Screening Officer subject to the applicable provisions of the By-law.
Under the AMPS process, disputed parking tickets would initially be reviewed by a City Screening Officer who would review the reported offence and make a decision to reject, reduce or confirm the penalty. Should the defendant disagree with the Screening Officer’s decision, the matter is referred to a Hearing Officer as outlined in the agreement with City of Thorold. The defendant must request a Hearing with 15 days of the Screening decision. The Hearing Officers decision is final and binding
Pursuant to the AMPS By-law, all Hearings conducted by a Hearing Officer shall be in accordance with the Statutory Powers and Procedures Act, R.S.O. 1990, c. S.22, as amended (“SPPA”).
Report Page 4 of 5
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Pursuant to subsection 5.2(1) of the SPPA, the Hearing Officer may hold an electronic hearing in a proceeding if it is provided for under the AMPS by-law.
Due to the COVID-19 pandemic, the City is recommending, through this report, an amendment of the City’s AMPS by-law to allow for these hearings to take place virtually and in accordance with the City of Thorold’s AMPS agreement. This method is safer for both customers and staff during the pandemic. Financial Implications Not unlike 2020 and with the current Lockdown of Niagara along with the rest of Southwestern Ontario, financial challenges are a reality in 2021 as well. The closure of community, aquatics and older adult centres, arenas and various services reduced, the City’s ability to generate revenues which typically support city operations is impeded.
City staff are exploring cost containment and mitigation measures to reduce the overall financial impact of COVID-19 on the city’s 2021 finances. To date action has already been taken with temporary workforce and service reductions and reassignment of some staff. With some upper levels of government support being received to date for 2021 financial impacts, it is evident that the $726,000 will not be adequate to fully offset the 2021 COVID-19 pandemic financial pressures. Staff will be updating council as appropriate regarding the financial status of the City.
Conclusion The COVID-19 pandemic continues to evolve and is still a threat to the community. The MECG will continue to implement proactive responses and plan for potential developments with the safety and well-being of the community and staff at the forefront.
The MECG will continue to focus on resurgence and recovery for the City of St. Catharines while remaining committed to MECG’s four objectives.
For the latest information on resurgence and recovery, visit http://www.EngageSTC.ca and the City’s social media platforms. For more information on City services and facilities, or to report a concern relating to COVID-19, visit www.stcatharines.ca/COVID19.
Prepared and Submitted by The City of St. Catharines Municipal Emergency Control Group (MECG)
Approved by Shelley Chemnitz, Chief Administrative Officer
David Oakes, Deputy Chief Administrative Officer
Report Page 5 of 5
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Corporate Report
City Council
Report from: Office of the Chief Administrative Officer
Report Date: January 22, 2021 . Meeting Date: February 1, 2021
Report Number: CAO-007-2021 . File: 35.23.11, 10.4.99
Subject: Response to Niagara Transit Governance Study Strategic Pillar:
Recommendation That Council supports in principle the Full Commission Model as the recommended governance model for the consolidations of Niagara’s public transit system; and
That Council direct staff to forward this report, including comments detailed by the St. Catharines Transit Commission in Appendix 3, to the Region and requests the additional information identified in this report be received prior to the approval of a new Intermunicipal Transit System and operating model. FORTHWITH Summary The Linking Niagara Transit Committee (LNTC) forwarded correspondence recommending a model of governance for a new Intermunicipal Transit System (IMT) and has requested local area municipalities review and provide feedback for a Resolution for Endorsement in Principle.
After review, staff are supportive of endorsing the recommended Full Commission Operating model for the IMT, but have comments regarding the governance model and are requesting additional information on a number of items prior to their endorsement. Relationship to Strategic Plan Regionalized Transit impacts all aspects of Councils Strategic Plan. Specifically, moving to a Regionalized Transit system could have implications for the Transportation Master Plan which will need to be considered. Background The transit consolidation process was first initiated in 2015 with a partnership in the form of an inter-municipal transit group between the City of St. Catharines, Niagara
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Falls, Welland and the Region of Niagara to improve inter-municipal transit (IMT) service delivery.
The Niagara Transit Service Delivery and Governance Strategy Report (The Dillon Report, 2017) identified several recommendations for service improvements, including the implementation of an IMT service strategy.
The Linking Niagara Transit Committee (LNTC) - composed of representatives from local and regional councils and senior staff - is chaired by Councillor Siscoe. Also included on the committee are Mayor Sendzik, Councillor Miller and CAO Chemnitz. The committee was established to guide the overall IMT consolidation strategy. The mandate of the LNTC was to lead the harmonization and integration of operational and policy regimes to the existing transit properties, as well as advance a consolidated governance model. The Inter-municipal Transit Working Group (IMTWG) was established to support the direction of the LNTC.
In 2019, the LNTC directed accelerated timelines for developing a consolidated transit governance model and directed the created of a team of CAOs (the CAO Working Group) to oversee the recommendation for a preferred model.
In November 2020, the LNTC circulated the Linking Niagara Transit Committee correspondence to Council, which includes recommendations on a preferred governance model and operating model for a new IMT.
Report The LNTC, through the Region of Niagara, has provided recommendations for the governance of a new IMT to be considered by individual municipalities and their Councils via Report LNTC-C 4-2020 (Appendix 1).
Specifically, a Resolution for Endorsement in Principle (Appendix 2) has been presented and it is being requested that the City of St. Catharines considers the resolution and provides feedback by February 28, 2021.
While staff, in collaboration with the St. Catharines Transit Commission, are supportive of the Commission Model as the preferred model, they are: - Providing commentary regarding several items identified in the report and; - Requesting additional information and have provided commentary for a number of items within the report and the Resolution for Endorsement in Principle
Overview The report recommends existing municipal transit systems be transferred to a newly created Commission, thereby consolidating the regions individual transit systems to one comprehensive system that serves the entire region.
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The Commission would be governed through the Full Commission model (the model currently used in St. Catharines). The Commission would be comprised of nine members, including five regional councillors and four citizen appointees.
Transition to the Commission would start in 2021 with a two year transition period where levy funding will help establish the Commission (2021-2023), and would continue for an estimated five-year transfer implementation period (2023-2027) where service delivery, finances, and assets are all transferred to the new Commission.
Prior to the transition period, the approval process must be completed. Currently Preliminary Endorsement from Local Area Municipalities are underway, which will be followed by another staff report and the creation of Municipal Transfer Agreements:
The above charts outline steps in the approval process as described in LNTC-C 4-2020, which are required to be completed prior to initiating the transition period.
The Region is guaranteeing existing service levels in all municipalities for at least five years, during the transfer implementation period. Thereafter, service levels may be enhanced or adjusted based on operational needs and analysis.
Transfer of assets will occur using the Cummings Model which has been successfully used in the past for transit amalgamation projects. The Cummings Model allows for the transfer of assets without additional compensation.
The Region is proposing a single tax levy to assist with transition costs and any associated amalgamation costs. This levy would assist with up to $5 million in transition costs and $27 million in existing service costs. The Region is projecting that any increase to the taxpayer at the regional level will be negated by a reduction in service costs at the municipal level.
The Region is seeking additional feedback from municipalities on the presented strategy by February 28, 2021.
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Impacts of an Intermunicipal Transit System Economic Transportation and transit are intrinsically linked to sustained economic prosperity. Globally, the most successful regions support a competitive business environment by ensuring the necessary transportation systems are in place to move people and goods seamlessly. The geographic location of St. Catharines in the heart of the Niagara region reinforces its vital importance in the Region’s life and economy.
In neighbouring jurisdictions, intermunicipal transit connectivity has been a central mechanism for facilitating both increased density and employment. The City’s role as Niagara’s business and urban hub demands an IMT system that welcomes both visitors and employees from across the region.
Expanding Niagara’s transit corridors to service existing and new employment centres will not only promote ridership but will contribute to the community’s economic security and competitive ability to attract new business. From a local policy perspective, connectivity is enshrined in the City’s Official Plan (OP), which promotes and encourages connectivity to provide opportunities for future growth, and at the same time, to promote and enhance our sense of place. The OP also notes that a transit system can play a key role in shaping the form, character, development, and redevelopment of the area, influencing both the land uses and quality of life.
Environmental While there are no immediate impacts to climate change as a result of a new IMT, there are potential longer-term effects with respect to the reduction of greenhouse gases and minimizing carbon footprint.
Specifically, an amalgamated IMT offers the opportunity for better, more integrated service which could drive ridership and therefore reduce the need for individual vehicles and trips throughout the region. Environmental benefits would be directly related to the increase of ridership and widespread use of the new IMT.
Ultimately more information will need to be provided regarding projected ridership figures and service routes to fully understand the long-term impacts an IMT will have on the environment.
Governance Model The LNTC is recommending proceeding with a full commission model for the a new IMT citing the following reasons for the recommendation: - Distinct entity independent from Regional Council - Governed by a board of appointed members, equitably selected by Regional Council - Responsible for all transit planning and delivery - Budget allotment approved by Regional Council
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- Makes limited use of Regional services except where service sharing does not impede agility or independence
The LNTC enlisted consultants from Optimus SBR and Left Turn, Right Turn (LRTR) to help prepare an analysis of three identified potential models for governance, including: • Limited Commission, which drives operational decision making and makes recommendations to Council on strategic matters, but may be viewed as less regionally accountable where recommendations are more locally focused resulting in lost support for transit growth;
• Full Commission, where a separate body operates independently of Regional Council apart from regular reporting and budgetary approvals, and are accountable for their own decisions to maintain public and political support for ongoing transit investment;
• Regional Division, which would rely on Regional Council for decision making and is expected to make more regionally-focused recommendations, although their accountability and support will be based on the broader perceptions of other Regional services delivery.
The analysis examined each model through the lens of four groups of criteria, including: - Governance and Operations - Ease of Implementation - Stakeholder Input and Equity - Financial Impact
The result of the analysis (LNTC -C 4-2020 Appendix 2, Sections 3-4) determined that the Full Commission model was the preferred model in three of the four groups of criteria, with the exception being Stakeholder Input and Equity, where the Limited Commission model was preferred.
The City of St. Catharines has experience with the Full Commission model, which has been successful in running the City’s transit operations through the appointment of skill- based commission members. City Staff and the St. Catharines Transit Commission are in agreement that it is the preferred model for a new IMT.
Commentary regarding the details of the Governance Model Representation on the Commission The LNTC report indicates that the Full Commission would be comprised of nine members, including five Regional Councillors (One each from St. Catharines, Niagara Falls and Welland, and two additional Councillors from the remaining municipalities) and four citizen appointees.
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proposed. Underrepresentation could have future impacts on maintaining and increasing service levels within the City.
Asset/Facility Transfer The report indicates that assets currently owned by municipal transit would be transferred in full to the Niagara Region Transit Commission based on the Cummings Model. The Cumming’s Model is used to transfer assets and outstanding liabilities between municipalities without any additional compensation, assuming that additional compensation would result in the taxpayer paying twice for the same public asset.
One concern regarding this transfer is the 2012 First Street Louth facility, which is currently used as the administrative operational headquarters for St. Catharines Transit and has an asset value of approximately $10 million. The facility is operated under a lease with the City of St. Catharines as the owner. Staff are recommending in the event of a governance change, the facility should revert to the City should it no longer be used for transit operations.
Request for Additional Information Cost Structure The funding model identified in the report involves creating a single regional tax levy to account for $3.85 million - $4.96 million in transition costs, and $27 million in existing service costs.
Staff are requesting additional information regarding the funding model, including:
- Updated financial projections that include service expansion and accounts for inflation - Inclusion of further expenditures that have not been discussed, including the potential need for a new transit facility large enough to support a new IMT.
The report indicates a final funding strategy will be recommended in Q2 2021 that incorporates feedback from municipalities. That funding model will be presented to Council once it is available.
Rider Fare Structure The LNTC report mentions the use of a single fare for travel anywhere in Niagara, but does not provide revenue estimates or a plan regarding the integration of a single fair structure.
Specifically, the LNTC report identifies an integrated single fare as critical to driving ridership growth and that initially, a harmonized fare structure will be required until a single fare system can be implemented throughout the transition.
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It is the opinion of staff and the St. Catharines Transit Commission that single fare is critical to the success of an IMT and that additional information regarding projected revenue, impact, and implementation is needed.
Service Plan Detail (Including Service Improvement Guarantee) The LNTC report indicates that integration of transit will drive ridership growth through investment and harmonization of fares and services, and sets the expectation of ridership growth over a 10-year horizon. The report does not include a detailed service plan, and as such staff are requesting additional detail regarding the existing scope of service, future service, service growth, and how that will translate to increased ridership.
Impacts to the Transportation Master Plan St. Catharines is in the process of finalizing its transportation master plan (TMP). The TMP is scheduled to be presented to St. Catharines City Council in early 2021 for approval.
The draft TMP contains several recommendations for transit in St. Catharines and these should be incorporated into the future state service plan. The TMP indicates there is latent demand for transit and ridership and modal share growth could be achieved with increased service frequency, extending half hour service further into the evening, providing weekday connection to the GO Train Station and connecting certain routes to the bus terminal.
The draft recommendations are sectioned in to short, medium and long term:
Short-Term i. 337/437 Crosstown add downtown connection ii. 314/414 Scott add downtown connection iii. 302, 312, 303, 301, 308, 309 – Add buses PM Peak iv. Shuttle/Circulator Route connecting GO/Via station to downtown v. Requires 4 additional buses and adds about $900,000 in net operating cost
Medium-Term i. Extend evening service on 300 series routes by 2 hours ii. Requires no additional buses and $950,000 in operating cost
Long-Term i. Operate 15-minute service on most 300 series routes during afternoon peak ii. This will require a phase-in approach as a substantial increase in fleet will be required. For example; expanding to 15-minute peak period service on routes 302 & 312 would require 4 buses and $210,000 in operating cost.
Financial Implications There are no financial implications associated with this report. An updated financial model regarding the implementation of a new IMT and the projected transitional and operational costs is expected to be forthcoming in a future Regional report.
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Environmental Sustainability Implications There are no environmental sustainability implications directly associated with the approval of this report. There will likely be long-term impacts as a result of moving to a new IMT, but those impacts cannot be determined without additional information regarding projected ridership and service. Conclusion Report LNTC-C 4-2020 presents a roadmap for a new IMT in the Niagara Region. While staff are supportive of the Full Commission model, they have provided commentary and requested additional information addressing other items within the report.
Prepared and Submitted by Jacob Ledda – Project Manager
Approved by Shelley Chemnitz – CAO Appendices Appendix 1 – Niagara Region Report LNTC-C 4-2020 Appendix 2 – Resolution for Endorsement in Principle Appendix 3 – St. Catharines Transit Commission Feedback
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Office of the Chief Administrative Officer Response to Niagara Transit G... Page 83 of 302 AGENDA ITEM 3.2 Administration Office of the Regional Clerk Sub-Item 1815 Sir Isaac Brock Way, PO Box 1042, Thorold, ON L2V 4T7 1 Telephone: 905-685-4225 Toll-free: 1-800-263-7215 Fax: 905-687-4977 www.niagararegion.ca
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Page 89 of 302 AGENDA ITEM 3.2 /17&& 2FWREHU 3DJH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB Figure 1 - Regional Transit Consolidation Upload Strategy 2021 - 2032 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Regional Separate 0.00% 0.70% 1.40% 1.40% 2.00% 2.00% 2.00% 0.40% 0.40% 0.40% 0.40% 0.40% Transit Levy 7KHLPSOHPHQWDWLRQWLPHSHULRGIRUWKHRIIVHWZLOOYDU\E\PXQLFLSDOLW\7KH UHFRPPHQGHGIXQGLQJVWUDWHJ\UHVXOWVLQVPDOOHUPXQLFLSDOLWLHVWUDQVIHUULQJWKHLUWUDQVLW EXGJHWVRYHUWRWKHQHZHQWLW\ZLWKLQWKHILUVWWZR \HDUVGHSHQGLQJRQWKHLUFXUUHQW WUDQVLWVSHQGZKLOHODUJHUPXQLFLSDOLWLHVWUDQVLWLRQRYHUWKHIXOOILYH \HDUWUDQVIHU LPSOHPHQWDWLRQSHULRG7KHIL[HGDQQXDOPXQLFLSDOWUDQVLWH[SHQGLWXUHDQGUHGXFWLRQV DUHRXWOLQHGLQ7DEOHDQG7DEOHEHORZ Office of the Chief Administrative Officer Response to Niagara Transit G... Page 90 of 302 AGENDA ITEM 3.2 /17&& 2FWREHU 3DJH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB Table 1 - Municipal Transit Expenditure Transition 2023 - 2027 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 St. Catharines 12,275,402 12,275,402 11,675,402 10,675,402 7,116,935 3,558,467 - - - - Niagara Falls 8,645,833 8,645,833 8,045,833 7,045,833 4,697,222 2,348,611 - - - - Welland 2,050,898 2,050,898 1,450,898 450,898 300,599 150,299 - - - - NOTL 497,223 497,223 ------Port Colborne 127,092 127,092 ------Pelham 261,156 261,156 ------Thorold 2,152,143 2,152,143 1,552,143 552,143 368,095 184,048 - - - - Fort Erie 826,323 826,323 226,323 ------Grimsby 250,000 250,000 ------Lincoln 265,829 265,829 ------West Lincoln ------Wainfleet ------ Table 2 - Municipal Annual Budget Reductions 2023 - 2030 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 St. Catharines - (600,000) (1,000,000) (3,558,467) (3,558,467) (3,558,467) - - - Niagara Falls - (600,000) (1,000,000) (2,348,611) (2,348,611) (2,348,611) - - - Welland - (600,000) (1,000,000) (150,299) (150,299) (150,299) - - - NOTL - (497,223) ------Port Colborne - (127,092) ------Pelham - (261,156) ------Thorold - (600,000) (1,000,000) (184,048) (184,048) (184,048) - - - Fort Erie - (600,000) (226,323) ------Grimsby - (250,000) ------Lincoln - (265,829) ------West Lincoln ------Wainfleet ------ Note EDVH\HDUWUDQVLWH[SHQGLWXUHVKDYHQRWEHHQILQDOL]HGIRUFRQYHQWLRQDODQGVSHFLDOL]HGWUDQVLWVHUYLFHV WKHUHIRUHHVWLPDWHVPD\IOXFWXDWHIURPHVWLPDWHVDERYH 7KHWUDQVLWLRQSDWKSURSRVHGE\WKHIXQGLQJVWUDWHJ\SURYLGHVDQRSSRUWXQLW\WRLQFUHDVH VHUYLFHOHYHOVRULQWURGXFHWUDQVLWVHUYLFHVLQPXQLFLSDOLWLHVZKHUHORFDOUHVLGHQWVDUH RWKHUZLVHUHDOL]LQJDQHWLQFUHDVHIURPWKHWUDQVLWLRQWRDUHJLRQDOOHY\7KLVRSSRUWXQLW\ ZLOOEHSURYLGHGDVWKHOHY\IXQGVLQLWLDOO\DVVLJQHGWRWUDQVLWLRQFRVWVDUHUHSXUSRVHGWR IXQGVHUYLFHH[SDQVLRQLQDQGEH\RQG 7KLVSURSRVHGVHUYLFHH[SDQVLRQLVLQWHQGHGWRHQVXUHWKDWFRPPHQVXUDWHVHUYLFH OHYHOVH[LVWDFURVVPXQLFLSDOLWLHVSULRUWRDIXOOXSORDGRIH[LVWLQJWUDQVLWH[SHQGLWXUHV RQWRWKH5HJLRQDOOHY\6SHFLILFVHUYLFHLQFUHDVHVZLOOEHGHWHUPLQHGE\WKHLQLWLDO VWUDWHJLFVHUYLFHSODQVGHYHORSHGE\WKH&RPPLVVLRQDQGIROORZLQJWKHRQH WRWZR \HDU6HUYLFH/DXQFKSKDVHRIWKHWUDQVLWLRQSODQ Office of the Chief Administrative Officer Response to Niagara Transit G... Page 91 of 302 AGENDA ITEM 3.2 /17&& 2FWREHU 3DJH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 7KHQHWWUDQVLWLRQRIWUDQVLWH[SHQGLWXUHVIURPORFDO0XQLFLSDOEXGJHWVWRD5HJLRQDO EXGJHWUHVXOWVLQDUHGLVWULEXWLRQDFURVVUHVLGHQWLDOWD[SD\HUVDVUHIOHFWHGLQ)LJXUH DQG7DEOHEHORZ Figure 2 - Taxpayer Redistribution from Municipal Levy to Regional Levy Table 3 - Municipal Residential Impact from Transfer to One Regional Levy 2021 2022 2023 2024 2025 2026 2027 2028 2029 St. Catharines 12,275,402 12,275,402 12,791,572 12,863,367 10,887,725 8,912,083 6,936,442 6,936,442 6,936,442 Niagara Falls 8,645,833 8,645,833 8,904,086 8,728,219 7,596,686 6,465,153 5,333,620 5,333,620 5,333,620 Welland 2,050,898 2,050,898 1,805,203 1,145,422 1,497,557 1,849,693 2,201,828 2,201,828 2,201,828 NOTL 497,223 497,223 397,437 779,074 1,342,675 1,906,276 2,469,877 2,469,877 2,469,877 Port Colborne 127,092 127,092 141,282 276,947 477,296 677,646 877,996 877,996 877,996 Pelham 261,156 261,156 202,460 396,871 683,976 971,082 1,258,187 1,258,187 1,258,187 Thorold 2,152,143 2,152,143 1,726,875 894,660 958,397 1,022,133 1,085,870 1,085,870 1,085,870 Fort Erie 826,323 826,323 510,207 556,482 959,054 1,361,626 1,764,198 1,764,198 1,764,198 Grimsby 250,000 250,000 342,421 671,229 1,156,812 1,642,395 2,127,978 2,127,978 2,127,978 Lincoln 265,829 265,829 284,764 558,207 962,027 1,365,848 1,769,668 1,769,668 1,769,668 West Lincoln - - 164,168 321,810 554,616 787,421 1,020,226 1,020,226 1,020,226 Wainfleet - - 81,424 159,611 275,077 390,544 506,010 506,010 506,010 Total 27,351,899 27,351,899 27,351,899 27,351,899 27,351,899 27,351,899 27,351,899 27,351,899 27,351,899 Office of the Chief Administrative Officer Response to Niagara Transit G... 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Page 110 of 302 AGENDA ITEM 3.2 /17&& 2FWREHU 3DJH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 3UHSDUHGE\ 5HFRPPHQGHGE\ %UXFH=YDQLJD 0DWW5RELQVRQ $FWLQJ&RPPLVVLRQHU 'LUHFWRU*2,PSOHPHQWDWLRQ2IILFH 3XEOLF:RUNV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 6XEPLWWHGE\ 5RQ7ULSS3(QJ $FWLQJ&KLHI$GPLQLVWUDWLYH2IILFHU This report was prepared in consultation with Scott Fraser, Transportation Lead - GO Implementation Office; Heather Talbot, Financial & Special Projects Consultant – Financial Management and Planning; and the NTGS CAO Working Group comprised of the CAOs from St. Catharines, Welland, Niagara Falls, Lincoln, and Niagara Region; and reviewed by Sterling Wood, Legal Counsel; Helen Chamberlain, Director, Financial Management & Planning/Deputy Treasurer; Todd Harrison, Commissioner of Corporate Services/Treasurer. $SSHQGLFHV $SSHQGL[ 5HVROXWLRQIRU(QGRUVHPHQWLQ3ULQFLSOH $SSHQGL[ 1LDJDUD7UDQVLW*RYHUQDQFH5HYLHZ±)LQDO5HSRUW $SSHQGL[ /HJDO5HYLHZRI1LDJDUD5HJLRQ¶V5ROHLQ3XEOLF7UDQVLW Office of the Chief Administrative Officer Response to Niagara Transit G... Page 111 of 302 LNTC-CAGENDA 4-2020 ITEM 3.2 Appendix 1 $SSHQGL[±5HVROXWLRQIRU(QGRUVHPHQWLQ3ULQFLSOH :+(5($6D)XOO&RPPLVVLRQPRGHODVGHVFULEHGLQ$SSHQGL[WR5HSRUW/17& &DQGWREHHVWDEOLVKHGDVD0XQLFLSDO6HUYLFHV%RDUGRIWKH5HJLRQLQ DFFRUGDQFHZLWKMunicipal Act 2001KDVEHHQUHFRPPHQGHGDVWKHSUHIHUUHG JRYHUQDQFHPRGHOIRUWKHFRQVROLGDWLRQRI1LDJDUD¶VSXEOLFWUDQVLWV\VWHP $1':+(5($6WKH&XPPLQJV3ULQFLSOHHQDFWHGWKURXJKDVVHULHVRI0XQLFLSDO 7UDQVIHU$JUHHPHQWVZLOOEHXVHGWRJXLGHWKHWUDQVIHUXVHRIDQGDFFHVVWR DVVHWVDQGIDFLOLWLHVIURPH[LVWLQJORFDODUHDPXQLFLSDOLWLHVWRWKH&RPPLVVLRQ $1':+(5($6DOOH[LVWLQJHPSOR\HHVYHQGRUVFRQWUDFWVDQGFROOHFWLYH EDUJDLQLQJDJUHHPHQWVZLOOEHWUDQVIHUUHGWRRUDVVXPHGE\WKH&RPPLVVLRQLQ DFFRUGDQFHZLWKWKHMunicipal Act, 2001RULabour Relations Act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¶6DIH5HVWDUW$JUHHPHQW $1':+(5($6DQLQWHJUDWHGVLQJOHUHJLRQDOIDUHZLOOEHHVWDEOLVKHGE\WKH &RPPLVVLRQZLWKLQILYH \HDUVRIWKHDVVXPSWLRQRIGHOLYHU\RIVHUYLFHE\WKH &RPPLVVLRQ Office of the Chief Administrative Officer Response to Niagara Transit G... Page 112 of 302 LNTC-CAGENDA 4-2020 ITEM 3.2 Appendix 1 %(,75(62/9('7+$7&RXQFLOHQGRUVHLQSULQFLSOHWKH)XOO&RPPLVVLRQDVWKH UHFRPPHQGHGJRYHUQDQFHPRGHOIRUKHFRQVROLGDWLRQRI1LDJDUD¶VSXEOLFWUDQVLW V\VWHP Office of the Chief Administrative Officer Response to Niagara Transit G... Page 113 of 302 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Niagara Transit Governance Study Final Report October 2, 2020 AGENDA ITEM3.2 Page 114 of 302 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Contents 1. Executive Summary Niagara Transit 2. Full Report Governance Study 1. Introduction 2. Current State & Leading Practices Final Report 3. Future State Transit Service Plan 4. Model Options, Analysis, and Recommendation 5. Transition Planning AGENDA ITEM3.2 Page 115 of 302 6. In Summary Office oftheChief Administrative Officer Response toNiagara Transit G... Introduction LNTC-C 4-2020 Purpose of this Document Appendix 2 o In 2019, the consulting firms of Optimus SBR and Left Turn, Right Turn (LRTR), were retained by the Region of Niagara, in partnership with the region’s local area municipalities, to undertake a study of different integrated transit governance models and recommend the best path forward to ensure that the present and future transit needs of the region can be met. o This document is the Final Report of the study undertaken (the Niagara Transit Governance Study) – setting the stage for transit integration across Niagara Region. It provides a comprehensive summary of all work undertaken during the course of this study. o In this Final Report, readers will find: 1. A summary of the current state of transit in Niagara Region; 2. Lessons learned from other jurisdictions that have integrated transit services; 3. A future state service plan that identifies the potential growth of transit in the region; and outlines the opportunity that integration can bring; 4. An overview and analysis of different models for transit integration; 5. The recommended model option for the region; and, 6. A transition plan to guide the implementation of an integrated system. AGENDA ITEM3.2 Page 116 of 302 2 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Report Snapshot Appendix 2 Key Research into the benefits and feasibility of an integrated transit system in Niagara Region has been considered for several years, and has culminated in Highlights this Niagara Transit Governance Study. A review of the current state of transit in Niagara and a forecast of demand for transit services over the coming 10 years has shown that there is a significant opportunity to increase transit usage in Niagara (over 80% by 2031). To determine how Niagara could best accommodate this future growth, three potential transit governance model options were developed,eachone reflecting a different approach to integrating transit in the region. Each potential model was assessed against key evaluation criteria, and ultimately, an independent Full Commission Model was recommended as it provides the greatest opportunity for success by bringing the right degree of autonomy and flexibility to innovate, drive growth, and meet the diverse and changing needs of Niagara. In order to create this new Commission, a five-phased Transition Plan has been AGENDA ITEM3.2 Page 117 of 302 developed to guide implementation activities. It is expected that this Commission will be operational by the end of 2022, and there is opportunity to take advantage of government funding to support the cost of transition to the Commission model. 3 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Niagara Transit Governance Study Executive Summary AGENDA ITEM3.2 Page 118 of 302 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Context for this Study Appendix 2 Research into the benefits and feasibility of an integrated transit system in Niagara Region has been considered for several years, and has culminated in this project, the Niagara Transit Governance Study. Transit in Niagara 2017 Service Delivery & Governance Models Region Governance Review Niagara Region constitutes 12 Following agreement on Guiding To support the development of municipalities that have varying Principles for integration in 2015, an integrated approach to transit, levels of transit services the Region completed the Region formed the Linking available. the Niagara Transit Service Niagara Transit Committee Delivery and Governance (LNTC), and a working group Strategy Report in 2017. The was formed to evaluate transit report identified several governance models, consisting of recommendations for service the CAOs of St. Catharines, improvements and the following Niagara Falls, Welland, and steps with respect to transit Lincoln, and the Director of the governance: Go Implementation Office. o Approve consolidated The consulting firms of Optimus transit model SBR and Left Turn Right Turn o Obtain triple majority for (LTRT) were engaged by the The three largest providers are recommended model working group to evaluate AGENDA ITEM3.2 Page 119 of 302 St. Catharines Transit, Niagara o Develop consolidated various transit service delivery Falls Transit, and Welland Transit, transit model models and to identify which who also support the existing implementation plan option best accommodates Regional service. o Implement inter-municipal Niagara’s future transit transit service strategy operational and planning needs. 5 Office oftheChief Administrative Officer Response toNiagara Transit G... Executive Summary LNTC-C 4-2020 A Systematic Approach was FollowedAppendix 2 To determine a preferred governance model for Niagara’s integrated transit system, Optimus SBR and LTRT followed a systematic approach that followed five main steps. This report contains a summary of the key information and insights from each of these steps. Current State and Future State Transit Model Options Model Analysis Transition Planning Leading Practices Service Plan Development Understanding the Modelling the Future Developing Options Recommending a Planning for Change Current Situation Model Forecasted different Outlined three different Detailed phasing for Developed a mutual growth scenarios for Governance models that The evaluation criteria how Niagara should understanding of the transit ridership in could potentially be was used to complete a move from the current current state of Niagara and outlined created to oversee detailed assessment of state of transit services operations of the the costs/revenues integrated transit each model, and to a successful various transit entities in associated with those services in Niagara, and ultimately led to a integrated system Niagara, and to forecasts key evaluation criteria recommendation understand how other that would be used to jurisdictions approached choose a preferred AGENDA ITEM3.2 Page 120 of302 the integration of their model systems This report represents the culmination of research, analysis, and input from key stakeholders across Niagara Region to establish a way forward for transit integration 6 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Guiding Principles for Transit Appendix 2 Guiding principles for transit in Niagara were developed in 2015 and helped inform the development and recommendation of the recommended transit governance model. These principles will continue to be important throughout the transition to an integrated system and in the life of the new transit entity. Customer Unconventional Integrated Driven Solutions Economically Fair Responsible AGENDA ITEM3.2 Page 121 of302 Adherence to guiding principles will be a fundamental factor in ensuring the success of the integration and the future of transit in Niagara for the benefit of all 7 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 There is a Significant Opportunity to Appendix 2 Increase Transit Usage in Niagara Region By way of investments and harmonization of services and fares, transit under an amalgamated system is anticipated to become a more frequently used means of transportation in the region, with ridership outpacing the status quo. Transit ridership forecasts indicate a latent demand for inter-municipal transit travel, which can be How? capitalized on through improved inter-municipal and connections to GO Transit rail services. By investing in targeted projects and services to grow the transit mode share throughout the region, transit ridership region-wide could grow by over 80% by 2031 under an amalgamated transit service. It is anticipated that Niagara Region, like its peer jurisdictions will experience a transit mode share growth of 30% to 130% within ten years of amalgamation. By 2031, operating costs in the high growth scenario will increase by approximately 55% over the status quo. Capital investment of between $70M and $155M between 2021 and 2031 may be required to address service and demand growth. Provincial Gas Tax revenue could result in up to $50M - $80M in revenue over the same ten years. Over $ 70M-worth of near- and mid-term projects have committed funds from the federal and provincial governments through ICIP. An integrated single fare is critical to driving ridership growth and could be achieved in a way that is revenue-neutral if implemented progressively as ridership grows. While an integrated payment AGENDA ITEM3.2 Page 122 of302 system and harmonized fare structure will be required at the start of service, a single fare region- wide can be implemented over time. The COVID-19 pandemic presents an opportunity to look beyond the status quo, bring the transit systems in Niagara together, and build a new and improved service that takes capitalizes on current funding programs to see this forecasted ridership growth become a reality. 8 Office oftheChief Administrative Officer Response toNiagara Transit G... Executive Summary LNTC-C 4-2020 Recommendation: Full Commission ModelAppendix 2 Following the completion of the current state review, a jurisdictional scan, and the development of a future state service plan, three potential governance models were developed, and the Full Commission Model was ultimately recommended: Limited Full Regional Commission Commission Division o Transit Service is governed by o Distinct entity independent o Division within Niagara a regional commission with from Regional Council Region’s Public Works representation from local o Governed by a board of department elected officials. appointed members, o Regional Council remains the o Commission reports to equitably selected by governing body of the transit Regional Council Regional Council division o Strategic decision making for o Responsible for all transit o Strategic decision making for Transit Service is directed by planning and delivery Transit Service is directed by Regional Council o Budget allotment approved Regional Council o Relies on corporate services by Regional Council o Integrated into the Regional but retains transit-related o Makes limited use of Regional administration similar to services in-house services except where service other service delivery sharing does not impede departments AGENDA ITEM3.2 Page 123 of302 agility or independence The Full Commission model brings the right balance of autonomy and flexibility to innovate, drive growth, and meet the diverse and changing needs of the region. 9 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Benefits of the Full Commission Appendix 2 Ultimately, the analysis led to the conclusion that the Full Commission is the most suitable model for Niagara. While many factors went into this recommendation, two of the chief benefits that made the Full Commission more attractive than other models were: The Autonomy of the Full Commission The Financial Benefits o The independence of the Full Commission grants it o The Full Commission will likely have the most cost- several advantages that make it the most suitable option efficient service, in part due to a more streamlined for the growth potential of transit in Niagara. decision-making process and being restricted to provide the most effective service within the means previously o With this independence, the Full Commission can remain more focused solely on transit and is more capable of defined in the annual budget. formulating its own responses to trends and pressures, o From a dollars and cents perspective, a Full Commission making and owning decisions, and driving necessary is the more costly of the models in terms of change at a strategic and operational level. administrative costs, but less costly on a per trip basis than other models due to a higher utilization of services. o This governance model is able to move from idea to action quickly and reprioritize its resources to meet o This is particularly important when looking to the future emerging demands and accommodate growth. and considering what ridership growth may be, and how services may expand to serve regional needs. o The autonomy of the Full Commission provides it advantages with respect to negotiating important o The Full Commission has the greatest flexibility to make elements such as collective bargaining agreements and strategic decisions which drive financial outcomes for the transfer of assets. transit services and is best positioned to make regionally- AGENDA ITEM3.2 Page 124 of302 focused investments in service growth. The Full Commission is best suited to grow transit in the region while delivering the high quality, innovative, and seamless transit services that the citizens of Niagara deserve. 10 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Proposed Composition of the CommissionAppendix 2 Outlined below is the proposed composition of the Commission, which would be appointed by a Nominating Committee of the Regional Council. Members of Regional Council (1) Welland (1) St. Catharines (1) Niagara Falls (2) Niagara Municipalities [Selected amongst representatives of: West Lincoln, Lincoln, Grimsby, Pelham, Thorold, Niagara on the Lake, Wainfleet, Fort Erie, and Port Colborne] Skill-based or Public Members (4) Skills-based or Public members (appointed/nominated) Ex-Officio (1) General Manager (non-voting member) AGENDA ITEM3.2 Page 125 of302 9 voting members A Hybrid governance structure was recommended as it allows a combination of elected officials and skills-based members to provide guidance and oversight. 11 Office oftheChief Administrative Officer Response toNiagara Transit G... Executive Summary LNTC-C 4-2020 Transition to the Commission Appendix 2 A five-phased transition plan has been developed to guide implementation activities over the coming years to ensure the successful creation of the transit Commission. Integration Commission Service Enhancement Approval 1 23Setup 4Launch 5Growth Process Includes activities This phase includes work This phase of work leading up to, and associated with getting encompasses activities This begins with the including, a phased the Commission ready to related to the legal Commission officially This phase includes political approval take on responsibility for establishment of the taking on responsibility longer-term activities process that concludes transit services in the Commission as a for transit services in the that the Commission with the submission of region, including municipal service board region and key activities will undertake to recommendations to establishing policies and and concludes with the for the first 2 years of continue developing its LAM and Regional processes, filling key appointment of operation to ensure a organization and Councils to seek triple- roles, and negotiating members to the smooth transition planning for the future majority approval to and executing transfer Commission create the Commission agreements Years 1-2 of Year 3+ of Approx. 9 Months Approx. 2 months Approx. 1 Year AGENDA ITEM3.2 Page 126 of302 Operation Operation The creation of a Regional Transit Commission will be transformative for Niagara, and its success is dependent on maintaining public and political support while transitioning services from the LAMs to create an effective regional network. 12 Office oftheChief Administrative Officer Response toNiagara Transit G... Executive Summary LNTC-C 4-2020 Funding the Transition Appendix 2 Regional staff are currently developing an initial funding model for the start-up budget of the Commission, that will strive for a fair and equitable funding baseline commensurate with the existing baseline services within each municipality. This funding model will be provided to all decision makers upon its completion. The preliminary cost estimates of transition to the Full Commission model is between $3,845,000 and $4,955,000. Given the complexity and ongoing impact of the global pandemic, fluctuations in these costs should be considered. Category Items Included Cost Transit System Branding Facility and Office Improvements Capital Costs $1,670,000 to $2,225,000 Transit Service Design Technology and Equipment Transit Integration Team Legal Fees Operating Costs $2,175,000 - $2,730,000 Public Consultation Human Resources Fees $3,845,000 - $4,955,000 AGENDA ITEM3.2 Page 127 of302 Suitable investments into the start-up of the Commission will be critical in its early development and long-term success. 13 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Niagara Transit Governance Study Full Report AGENDA ITEM3.2 Page 128 of302 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Niagara Transit Governance Study Introduction AGENDA ITEM3.2 Page 129 of302 15 Office oftheChief Administrative Officer Response toNiagara Transit G... Introduction LNTC-C 4-2020 Context for this Study Appendix 2 Transit in Niagara 2017 Service Delivery & Governance Models Region Governance Review Niagara Region constitutes 12 Following agreement on Guiding To support the development of municipalities that have varying Principles for integration in 2015, the an integrated approach to transit, the levels of transit services available. Region completed the Niagara region formed the Linking Niagara Transit Service Delivery and Transit Committee (LNTC), and a Governance Strategy Report in 2017. working group was formed to The report identified several evaluate transit governance models, recommendations for service consisting of the CAOs of St. improvements and the following Catharines, Niagara Falls, Welland, steps with respect to transit and Lincoln, and the Director of the governance: Go Implementation Office. o Approve consolidated transit The consulting firms of Optimus SBR model and Left Turn Right Turn (LTRT) were o Obtain triple majority for engaged by the working group to The three largest providers are St. recommended model evaluate various transit service Catharines Transit, Niagara Falls o Develop consolidated transit delivery models and to identify which Transit, and Welland Transit, who also model implementation plan option best accommodates Niagara’s support the existing Regional service. o Implement inter-municipal future transit operational and transit service strategy planning needs. AGENDA ITEM3.2 Page 130 of302 The concept of integrating transit systems in Niagara has been around for many years. Now, in 2020, a myriad of transit and non-transit related factors and pressures present an opportunity for the region’s systems to reflect on its strengths and challenges, and consider new avenues for innovation and growth. 16 Office oftheChief Administrative Officer Response toNiagara Transit G... Introduction LNTC-C 4-2020 The Case for Integration Appendix 2 A multitude of global and local trends make the need to rethink transit more apparent than ever before. Globally, emerging technology and philosophies around transit, including concept of mobility as a service, has engendered the need to see different transportation methods jointly rather than as individual elements. Economic and cultural trends are also resulting in a trend towards lower personal vehicle ownership due to a reduction in buying power, and evolving perspectives on the environment and the importance of public transit in curbing climate change. Locally, there is a strong desire improve mobility not only within the region, but with neighboring regions as well, along with a growing need to address the disparity of transit service across the region. Moreover, the current system does not provide the integrated and seamless experience that users are growing to expect, and as new commercial and residential developments emerge, the importance of quick and reliable transit will as well. Finally, there is a need to look at transit and its benefits not at the local level, but more broadly. Transit can be a cornerstone of a strong and vibrant community and region, and is a key enabler to attracting new residents, tourists, and businesses. An integrated transit system that can more easily respond to the needs of the region can also help strengthen economic development, support environmental sustainability, and enhance quality of life for residents and visitors alike. Unfortunately, the innovation and growth required to capitalize on these opportunities and accommodate these shifting needs won’t be achieved by maintaining the status quo; an evolution of the current system is needed. AGENDA ITEM3.2 Page 131 of302 Integration isn’t about creating a larger version of what already exists today, nor is it about bringing the status quo under a single roof. Rather, integration is about bringing a scale and flexibility to transit that will allow for greater innovation, more beneficial partnerships, and the ability to better accommodate the variety of transit needs in the region that won’t be able to be served within the constraints of the current system. 17 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Integration and COVID-19 Appendix 2 The 2020 COVID-19 pandemic has undoubtedly affected transit ridership in Niagara, Ontario, and Canada as a whole. With ridership down 75% nationally,1 operating revenues for transit agencies have also seen a significant decline. However, despite the devastating impacts that COVID-19 has had on the health of Canadians, the use of public transit, and the overall economy, now is an apt time to redesign transit in Niagara. The ongoing pandemic has demonstrated the need for, and benefits of, enhanced levels of coordination and organization between transit providers across the region. In the early days of the pandemic, significant effort was undertaken to align and coordinate across delivery agencies the rapidly evolving changes to service levels, fare policy, cleaning protocols, and other operational and strategic changes necessary to effectively respond to the pandemic on behalf of Niagara residents. In addition, there is an opportunity to align efforts with current funding programs associated with the province’s economic recovery. In July 2020, the province announced that it had secured one-time urgent funding to support its municipalities’ critical public services, including transit services. This Safe Restart Agreement funding may include up to $2 billion for transit in the province and is already beginning to flow to municipalities and transit agencies, with eligible projects including service improvements and governance restructuring. This unique funding opportunity only strengthens the case for integration and the need for collaboration and alignment of effort across the region. As transit providers continue to monitor the changing environment and implement recovery plans over the coming years, now is the ideal time to move integration forward and align efforts, especially given the significant work that will be needed to grow ridership in a safe and effective way, and the funding opportunities made available to municipalities. AGENDA ITEM3.2 Page 132 of302 Municipalities in the region need to look beyond the current situation and how to return to the status quo. Now is the time to reflect on what has worked and not worked in the past, take advantage of funding and growth opportunities, and collaborate on building a new system that provides a high-quality and user-friendly service for the region. 1 Statistics Canada. Urban Public Transit, June 2020. https://www150.statcan.gc.ca/n1/daily-quotidien/200831/dq200831d-eng.htm 18 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Guiding Principles for Integrated TransitAppendix 2 Guiding principles were first established in 2015 and subsequently endorsed by the Linking Niagara Transit Committee (LNTC). They have informed the development of the transit governance model for Niagara. To achieve success the new transit entity will need to make regionally-focused decisions aligned to guiding principles. This will ensure that potential growth in ridership, efficiency of operations, and improved service delivery are realized. 1 Customer Driven Continuously improve the rider experience, including improvements throughout the pilot phase; Understand customers, particularly those who rely on transit the most; Provide seamless connections and routes based on demand; Take people to work, school, healthcare, shopping and recreation as efficiently as possible; Respect established local service levels and routes; and, Maintain and improve transit to Niagara College and Brock University users. 2 Unconventional Solutions Investigate leading-edge technologies and delivery systems that establish Niagara as an innovator in the transit field; and, Explore partnerships with other providers (e.g. GO Transit) where service delivery gaps exist. AGENDA ITEM3.2 Page 133 of302 19 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Guiding Principles for Integrated TransitAppendix 2 Guiding principles were first established in 2015 and subsequently endorsed by the Linking Niagara Transit Committee (LNTC). They have informed the development of the transit governance model for Niagara. 3 Integrated Be seamless with other modes of transportation and evolve according to overall transportation plans across Niagara (e.g. Transportation Master Plan and local Master Transit plans); Integrated with and support daily GO train service; Connect municipalities at hubs that are most appropriate for customers and the community; Evolve according to long-term transportation planning, growth planning, and economic development opportunities; and, Promote interconnectivity with systems that connect Niagara with the GTHA (e.g. GO Transit, Hamilton Street Railway). 4 Economically Responsible Recognize inter-municipal transit is a public service funded through property taxes, grants, and partial cost recovery through user-fees; Balance financial costs with potential ridership and benefits; Build on past transit investments by enhancing, not duplicating, existing services; and, Explore alternative modes of delivery, particularly in small communities and rural areas. AGENDA ITEM3.2 Page 134 of302 5 Fair Respect existing investments made by communities with public transit and existing service levels; Provide a basic level of services that can be accessed by as many Niagara residents as possible; Balance respect for taxpayers with the ability of transit riders to pay fares; and, Respect existing transit collective agreements. 20 Office oftheChief Administrative Officer Response toNiagara Transit G... Introduction LNTC-C 4-2020 Reaching a Preferred Governance ModelAppendix 2 To determine a preferred governance model for Niagara’s integrated transit system, Optimus SBR and LTRT followed a systematic approach that followed five main steps. This report contains a summary of the key information and insights from each of these steps. Understanding the Planning for Change Current Situation Modelling the Future Developing Options Recommending a Model Detailed phasing for Developed a mutual Forecasted different Outlined three different how Niagara should understanding of the growth scenarios for Governance models that The evaluation criteria move from the current current state of transit ridership in could potentially be was used to complete a state of transit services operations of the Niagara and outlined created to oversee detailed assessment of to a successful various transit entities in the costs/revenues integrated transit each model, and integrated system Niagara, and to associated with those services in Niagara, and ultimately led to a understand how other forecasts key evaluation criteria recommendation jurisdictions approached that would be used to the integration of their choose a preferred AGENDA ITEM3.2 Page 135 of302 systems model This report represents the culmination of research, analysis, and input from key stakeholders across Niagara Region to establish a way forward for transit integration. 21 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Niagara Transit Governance Study Current State & Leading Practices AGENDA ITEM3.2 Page 136 of302 22 Office oftheChief Administrative Officer Response toNiagara Transit G... Current State & Leading Practices LNTC-C 4-2020 Introduction Appendix 2 The first phase of this project involved a thorough review of the current state of transit in Niagara to identify what was working well and what challenges exist, hear different stakeholder perspectives, and better understand the benefits that an integrated system could bring to the region. Understanding the Current Situation Before work on evaluating and selecting different models for an integrated transit system could begin, it was critical to undertake a thorough review of what transit looks like in the Niagara Region today. A clear picture of the current state allowed us to understand what was feasible and not feasible with respect to transit integration in Niagara. Through this understanding, it was possible to devise different options for moving forward, assess which option had the most potential, and develop a realistic transition plan for getting there. This was accomplished through a review of key data, engaging with representatives from transit system and external organization (e.g. Amalgamated Transit Union, Brock University), and also included a review of other jurisdictions that have undergone similar transit system integrations in the past. The findings from this phase of the project not only provided a sense of the transit-specific strengths/gaps in the current system and the potential size of an integrated one, but also enabled us to understand what was particularly important to different stakeholder groups with respect to transit in Niagara and what their initial impressions of an integrated system were. The data collected during this phase was also aAGENDA ITEM3.2 Page 137 of302 key first step in forecasting future transit demand, and the information gained from researching how other jurisdictions structured and implemented their integration provided important insights and lessons learned that were applied to all subsequent phases of work. In the following slides, please find a summary of the Current State and Leading Practices Report, which includes an overview and key statistics about transit in the region, a financial summary, a snapshot of themes identified during engagement with key stakeholders, and a summary of insights gained from the review of other jurisdictions. 23 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Current State & Leading Practices System Assessment AGENDA ITEM3.2 Page 138 of302 24 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Niagara Transit System Overview Appendix 2 Niagara Region is home to twelve lower-tier municipalities and eight transit service providers. Cities, towns and hamlets are dispersed with large swaths of farmland and natural expanse between them. AGENDA ITEM3.2 Page 139 of302 25 Office oftheChief Administrative Officer Response toNiagara Transit G... System Assessment LNTC-C 4-2020 Niagara Transit System Overview Appendix 2 The region experiences diverse levels of transit services. Higher-quality transit services are generally correlated with higher levels of urbanization. Niagara Falls, St. Catharines and Welland are the largest local transit services and provide Overview contracted service throughout the region. ± Niagara Region contracts service on all intermunicipal routes to Niagara Falls, St. Catharines and Welland ± Thorold contracts service from St. Catharines Transit ± Port Colborne contracts service from Welland Transit Niagara Region, in partnership with several municipalities in western Niagara, launched NRT OnDemand, an alternative transit service on August 17, 2020. ± The service was initially designed as a regional transit alternative connecting the communities of Grimsby, Wainfleet, Lincoln and West Lincoln with the larger urban centres in Niagara Region ± Grimsby opted to introduce a new local transit service as part of NRT OnDemand to provide transit access within the community and connectivity to the planned GO Station. ± Additionally, Lincoln and Pelham have completely replaced their local fixed-route transit services with NRT OnDemand. Fort Erie and Niagara-on-the-Lake operate their own local fixed-route transit services through third-party private contractors ± The contractors are responsible for all service as well as supply and maintenance of vehicles, AGENDA ITEM3.2 Page 140 of302 equipment and other assets ± Only Niagara-on-the-Lake reports into the Canadian Urban Transit Association Wainfleet and West Lincoln Townships have no existing local transit service, but expansion of NRT OnDemand remains a future consideration. 26 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Niagara Transit System Overview Appendix 2 The following is a summary of 2019 key characteristics for transit in the region for the different systems: Operating Operating Specialized Municipality Ridership Service Hours Routes Revenue Vehicles Expenses Revenue Ridership Niagara Region Transit 1,065,933 85,070 18 21 $ 12,228,435 $ 4,878,503 29,995 Niagara Falls Transit 2,009,784 95,538 31 45 $ 12,521,213 $ 3,842,111 24,722 St. Catharines Transit 73 4,731,453 152,181 24 $ 21,643,836 $ 8,704,665 28,166 Commission 14 Specialized Thorold (Provided by St. 286,037 11,779 3 N/A $ 1,347,798 $ 460,034 3,722 Catharines Transit) 18 Welland Transit 738,998 42,509 9 $ 3,128,392 $ 1,359,467 12,802 4 Specialized Port Colborne (Provided by Welland 12,700* 2,600 2 N/A $ 278,684 $ 18,838 N/A Transit) Fort Erie 40,467 13,313 4 3 $ 972,740 $ 35,076 9,880 (Provided by 3rd Party) Lincoln rd 2,000 2,064 3 1 $ 317,680 $ 51,851 N/A (Provided by 3 Party) AGENDA ITEM3.2 Page 141 of302 Niagara-on-the-Lake 29,510* 6,545* 2 2 $ 667,416 $ 22,357 N/A* (Provided by 3rd Party) Pelham 7,895 5,458 2 2 $ 445,090 $ 32,600 910 (Provided by 3rd Party) *Note that at the time of collection some data remains approximate since reporting may not yet have been complete 27 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Access to Services Appendix 2 Conventional transit services are accessible to over 390,000 people or approximately 85% of the region’s residents. Ridership and Service Hours by Agency (2019) 35 1.20 1.08 30 1.00 1.00 25 0.89 0.80 20 0.63 Utilization (Riders / 0.57 0.60 Service Hour) 15 Service Hours / capita 0.40 10 0.43 0.24 0.28 Riders per ServiceRiders Hour 0.14 0.20 5 0.10 Service per Capita Hours 0 0.00 NRT NFT SCT WT TH PC FE LNC NOTL PLHM o There is a stark discrepancy in the amount of service and the utilization of that service in large urban areas versus the smaller municipalities; AGENDA ITEM3.2 Page 142 of302 o While this could be largely related to the density and urban form, it does call attention to the fact that utilization is driven by availability and utility of the service; and, o Note that service in Thorold is provided by St. Catharines Transit Commission and is considerably better performing than other smaller municipalities on the basis of riders per service hour. 28 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Current State & Leading Practices Financial Analysis AGENDA ITEM3.2 Page 143 of302 29 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Financial Performance Appendix 2 A financial performance summary was compiled based on CUTA statistics and information from each of the transit operators in Niagara for the year 2018. AGENDA ITEM3.2 Page 144 of302 30 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Operating Expenses and Revenues Appendix 2 This chart reflects the considerably large disparity in the investment in service and the service area that these agencies are responsible for. Operating Expenses and Revenues by Agency (2019) $132.91 $52.25 25000 30 22500 25 20000 $23.17 $21.86 17500 $20.46 20 15000 OpExp 12500 15 OpRev 10000 10 7500 Net OpExp Thousands in Dollars ($) per Rider $6.90 5000 5 $4.32 2500 $2.73 $2.39 $3.10 0 0 Dollars of Net Operating Expense per Rider Expense per ($) Operating Net ofDollars NRT NFT SCT WT TH PC FE LNC NOTL PLHM AGENDA ITEM3.2 Page 145 of302 o St. Catharines, Niagara Falls and the Region have a considerably larger operating budget than any of the other agencies; o Fixed route services require discrete capital investments to provide base services and are often under utilized in smaller rural communities resulting in higher net operating costs per rider; and, o Note that for these purposes, operating revenue does not include grants and funding from external sources, such as gas tax funding applied to operating costs. 31 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Capital Asset Summary by Agency Appendix 2 This slide provides an overview of the purchase and book value of different agency’s capital assets Capital Assets – Purchase Value Capital Assets – Net Book Value 70 70 60 60 $ Millions $ Millions 50 50 40 40 30 30 20 20 10 10 0 0 Niagara Niagara St Welland Niagara Niagara St Welland Region Falls Catharines Region Falls Catharines Transit Transit Vehicles Land Facilities Vehicles Land Facilities Equipment Technology Equipment Technology o Niagara Region Transit owns 21 vehicles that are designed to the standards by the local agency that operates the vehicle on AGENDA ITEM3.2 Page 146 of302 behalf of the Region. Otherwise, the Region has no other major capital assets; o Niagara Falls, St. Catharines and Welland have the largest capital asset inventory of the municipalities; o The smaller agencies and municipalities contract out service, and do not own the assets for service; and, o The exception is Fort Erie, which owns the smart card fare system technology onboard their vehicles. Note that all agencies use a different amortization period for their vehicles. For the purposes of this comparison, a 12-year amortization period (useful life) was used for conventional transit vehicles, cutaway minibuses were given a 7-year useful life and paratransit vans a 5-year useful life. 32 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Total Forecast Capital Expenses Appendix 2 Local transit agencies are planning for large investments over the coming years. Total Forecast Capital Expenses 2020-2028 35 30 $ Millions 25 20 15 10 5 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 Niagara Falls Transit St. Catharines Transit Commission Welland Transit In addition to fleet renewal and minor infrastructure improvements, the three properties have plans for major facility improvements. Many of these initiatives already have committed funding as part of ICIP, including matching municipal funds: While core operating technologies (such as the CAD/AVL system and related Niagara Falls Transit had earmarked $ 7M for transit terminal and components) are shared and integrated across all three local transit agencies, storage facility expansion in 2020 ancillary technologies such as fareboxes, paratransit scheduling and AVL, and AGENDA ITEM3.2 Page 147 of302 Welland Transit had earmarked $ 13M for a new operations facility in asset management systems are not presently integrated. 2021 St. Catharines Transit had earmarked funds annually for major garage improvements totalling $15M *Note that vehicles procured for Niagara Region Transit are configured based on the specifications of the local agency that will be providing the service and maintenance on the vehicle 33 *Note that Niagara Region Transit intermunicipal service fleet requirements are included in the capital projections Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Funding and Financing Service and Appendix 2 Investment Operating Subsidies and Tax Levies o Most municipalities contribute to funding transit agencies within their cities and towns through either through their annual budgeting process, or by dedicated tax levies that are specifically allocated to transit; o In Niagara Region, most transit agencies operate as a division of the local municipality they reside in, and are funded directly through the annual municipal budget process; and, o St. Catharines Transit Commission, which operates on a commission model, has secured a dedicated transit property tax levy approximately 0.07% or roughly $210 per year on a $300,000 home. Provincial Funding o Niagara Region Transit, as well as the local municipalities receive Gas Tax disbursements that are allocated to operating and capital transit investment. The 2018/19 allocations are listed below: Total NRT NFT SCT TH WEL PC FE LNC NOTL PEL Operating $1,649,400 $267,309 $ 532,000 - $250,993 - $112,754 $287,173 - $147,837 $ 51,334 Capital $4,806,134$493,722$ 914,000$2,633,000-$765,129----- Total $6,455,534 $761,031 $1,446,374 $2,633,000 $250,993 $765,129 $112,754 $287,173 - $ 47,837 $ 51,334 AGENDA ITEM3.2 Page 148 of302 o Lincoln will begin collecting Gas Tax disbursements in 2019/20. o Funding from the Safe Restart Agreement is beginning to flow to municipalities and transit agencies as part of the COVID-19 response, with eligible projects including service improvements and governance restructuring 34 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Funding and Financing Service and Appendix 2 Investment cont. Federal Funding o Niagara Region Transit as well as Niagara Falls, St. Catharines and Welland applied for Public Transit Infrastructure Fund (PTIF) funding with the federal government for capital improvements and funding has been made available; o PTIF funding, which was made available to transit agencies across Canada, is a limited pool of $3.4 Billion that is allocated to transit agencies based on reported CUTA ridership figures; o Active applications for PTIF funding will be ongoing until the funds expire; and, o Investing in Canada Infrastructure Program (ICIP) funding has been approved, and provincial and federal funds have been committed for over $ 74M worth of capital investments through the first round of funding AGENDA ITEM3.2 Page 149 of302 35 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Current State & Leading Practices Stakeholder Perspectives AGENDA ITEM3.2 Page 150 of302 36 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Stakeholder Engagement Findings Appendix 2 A number of stakeholders were engaged to gather insights and perspectives about the current state of transit services and key considerations for an integrated system. Some key considerations raised by stakeholders with regards to service and system planning included: Connecting to Hubs: Integrated system should focus on connecting residents to Findings important community hubs and landmarks in an efficient manner (e.g. hospitals, malls, schools, etc.). No trip to the hospital should take 2-3 hours. Seamless Rider Experience: Prioritize aligning service schedules and stops so that riders can move from point A to point B – with integrated fares. Collaboration with Regional and Municipal Staff: A coordinated effort will need to be undertaken to look at routes and determine the need that current construction projects will have for future transit service. Connecting with other Transit Entities: Integrating and/or connecting with other transit systems in the area, including GO, HSR, or coach bus. Building for Niagara’s Current and Future Needs: Ensuring that appropriate services are built to accommodate future residential and business developments and creating inter-municipal corridors will be important. Accessibility: Consider an automated booking service that allows users to book in AGENDA ITEM3.2 Page 151 of302 advance given consistent medical needs. Community Engagement: Importance of ongoing and regular public communication and engagement in transit planning to ensure the voice of the rider is understood. 37 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Current State & Leading Practices Leading Practices AGENDA ITEM3.2 Page 152 of302 38 Office oftheChief Administrative Officer Response toNiagara Transit G... Leading Practices LNTC-C 4-2020 Leading Practice Overview Appendix 2 The following is a summary of the findings from the jurisdictional scan of four municipalities, including the regions of Durham, Waterloo and York, and the Edmonton Metropolitan Region. Transit & Operations Lessons Learned Transfer of human resources to a new organizational structure is a significant undertaking Both Commission model and Service Enhancements requires Centralized Delivery in use prioritization and considerable, Need to consider the investment magnitude of cultural change and legacy systems involved in transition Financial Transition planning A phased-in single tax levy has been successful elsewhere AGENDA ITEM3.2 Page 153 of302 Cumming Principle used for asset Significant communications efforts Ongoing communication is transfers and there is a varied required to engage staff, unions an important factor in approach to levies and the public bringing key stakeholders onboard 39 Office oftheChief Administrative Officer Response toNiagara Transit G... Leading Practices LNTC-C 4-2020 Summary of Findings: Leading PracticesAppendix 2 The following is a summary of the findings from the jurisdictional scan of four municipalities, including the regions of Durham, Waterloo and York, and the Edmonton Metropolitan Region. A governance body was set up for both the study for amalgamation, and the transition period. Membership often continued into the transition planning period. With the exception of Waterloo Region, which was a staff-only led Committee (and reported directly to Regional Council), the remaining amalgamations had an operationally focused oversight body that Governance reported to a politically appointed oversight body. York and Waterloo Regions both selected a governance model where transit resided as a department within the Regional Corporation, and reports to Regional Council through the Chief Administrative Officer. Edmonton and Durham selected a Commission model. Due to the difference in transit services across the amalgamated municipalities, often considerable service enhancements were identified. These were prioritized and completed in a phased approach over 5 to 7 years. Transit Service Significant planning and resourcing is required for the transfer of human resources related matters, Planning & including contract negotiation, and placing staff within a revised organizational structure. Operations Fares were integrated across the amalgamated regions. Collection of service metrics continued to be a challenge well after the transition period as amalgamated bodies reconciled legacy systems across local transit providers. There was a varied approach to the fee levy: Durham and York Regions instituted a unified levy, AGENDA ITEM3.2 Page 154 of302 Waterloo implemented a differentiated fee levy (with the goal of a unified levy), and Edmonton will Financial receive funding from municipalities based on budgeted operating revenues and expenses. Considerations Municipalities typically started with applying area rated tax levies to apportion the cost of the transit services being provided to each community, then moved to introduce single urban tax levy and maintain area rates for rural areas. 40 Office oftheChief Administrative Officer Response toNiagara Transit G... Leading Practices LNTC-C 4-2020 Summary of Findings: Leading PracticesAppendix 2 The following is a summary of the findings from the jurisdictional scan of four municipalities, including the regions of Durham, Waterloo and York, and the Edmonton Metropolitan Region. Financial The Cumming Principle was utilized in most cases for transfer of assets. Considerations Transit related development charges were transferred to the regions of Durham and Waterloo. All municipalities documented the transition plan in a joint agreement between transit providers and established a transition period between 1 to 2 years. Transition Most Plans focused that transition period on bringing the transit systems together, not on significant Planning changes to services and service levels. Significant communication resources required to inform and engage both impacted staff and unions, and members of the public. Consideration needs to be taken on how and why resources are transferred to the amalgamated organizational structure. A single tax levy being implemented from the beginning, through a phased approach had been made Lessons successful through a concurring commitment to provide service in areas that had no transit services. Learned Do not underestimate the magnitude of cultural change and legacy systems involved in transition planning. Ongoing communication to the public, province, and municipal governments is an important factor in bringing key stakeholders onboard. AGENDA ITEM3.2 Page 155 of302 41 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Current State & Leading Practices Summary AGENDA ITEM3.2 Page 156 of302 42 Office oftheChief Administrative Officer Response toNiagara Transit G... Current State & Leading Practices LNTC-C 4-2020 Summary Appendix 2 The current state has broad implications for the future of transit in Niagara, and the long- term design and development of an integrated transit agency. Key findings that a future integrated system will need to consider include: Implications with respect to availability and frequency of service, and ensuring basic levels of equity for accessing services. for Integration Manage the differences in transit service expectations from residents of different municipalities. The relative lack of population density in a large part of the region and the pockets of density located in the major municipalities – including the fact that 85% of the region’s population still lives within a 15- minute walk of transit services, and over half of the population within a 5-minute walk. The large swathes of rural and undeveloped land within the region and how these will be served. The differences in financial contribution of the three largest municipalities in terms of operating dollars per capita compared to the smaller transit agencies. That the larger municipalities have substantial planned investments that will need to be maintained toward fleet and facility renewal. That agencies have already begun to integrate technologies across the region. The financial and legal impact of transferring existing contracts municipalities to the future integrated system. AGENDA ITEM3.2 Page 157 of302 How the three CBAs with the ATU are to be consolidated into a single agreement. The means and degree to which the new integrated agency will take on the current staff complements of the different transit agencies, and the method by which leadership positions will be filled. 43 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Niagara Transit Governance Study Future State Transit Service Plan AGENDA ITEM3.2 Page 158 of302 44 Office oftheChief Administrative Officer Response toNiagara Transit G... Future State Transit Service Plan LNTC-C 4-2020 Introduction Appendix 2 The second phase of work in this project, the Future State Transit Service Plan, was a critical milestone as it provided insight into the potential growth of transit in Niagara Region and its implications for an integrated transit system. Current State and Future State Transit Model Options Model Analysis Transition Planning Leading Practices Service Plan Development Modelling the Future Understanding the future demand on the Region's transit network is an important consideration in planning for it. By forecasting ridership growth, and capital and operating costs, one can gain a clearer picture of the benefits that an integrated transit system could bring to Niagara, and also better understand the environment that this integrated system will be operating in. While not a direct input into the governance structure recommendations, the results of the Future State Transit Service Plan provide critical context of how residents and workers in Niagara Region will utilize the services provided by this new entity. As part of this study, an in-depth analysis of the Transportation Tomorrow Survey and the Ontario Growth Plan was undertaken, as well as observed transit data to identify a set of changing trends and important considerations for the 2031 horizon. In addition to this, a forecast of future demand estimates for the preferred network was undertaken, which was achieved by adjusting information related to routes, headways, fare policy, and more. The following slides contain a summary of this Future State Plan that outlines the potential growth in transit ridership in Niagara. The AGENDA ITEM3.2 assessmentPage 159 of302 has identified a latent demand for transit that the current status quo system is unable to accommodate because of its inability to effectively support inter-municipal trips with first- and last-mile connections. Through integration, however, Niagara has the opportunity to spur this latent demand and accommodate ridership growth throughout the Region. This new entity will have the capacity, scale, and flexibility to build a system that reacts to not only the demand within a particular municipality, but that drives transit ridership growth across the Region. 45 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Within 10-years of amalgamation, transit mode shareAppendix 2 could increase between 0.9% – 1.8% This is consistent with peer jurisdictions, who experienced between 30% and 130% mode share increases post amalgamation, independent of population growth. Durham Region Transit begins 5.00% Grand River Transit operations (2006) begins operations (2000) 4.00% 3.00% 2.00% Regional Trips 1.00% York Region Transit begins Transit’s Mode Share of All Mode Share Transit’s operations (2001) 0.00% 1996 2001 2006 2011 2016 Durham York Waterloo Niagara AGENDA ITEM3.2 Page 160 of302 After amalgamation of local transit services, Durham, Waterloo and York Regions all experienced a substantial increase in transit utilization. In contrast, the local transit mode share in Niagara Region has remained largely constant over the past twenty years. Note: this chart excludes all “GO Transit Only” trips, and focuses entirely on transit trips that utilize some form of local transit 46 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Transit Demand in the 2031 Horizon Appendix 2 In all tested scenarios with fully integrated transit services, the total number of transit trips greatly outpaces the status quo The consultants worked in collaboration with IBI Group to produce a set of comparable 2031 AM Peak Period transit forecasts using the Region's Transportation Model. The future network in the model was updated to the preferred network, including the express service options, and a preliminary fare-policy was recommended. The high growth scenario considers the results of the advanced modelling analysis and includes recent trends in growth and demand and identifies an apparent latent demand for improved regional transit integration. This scenario employs the increasing trends in modal share observed at peer transit agencies after amalgamation of local transit services. While this represents a considerably greater demand for transit in the 2031 horizon, the approach employed to consolidate these results ensures that the most current transit ridership trends are adequately captured. Total Trips Originating from and/or Destined within Niagara Region Status Quo Low Growth High Growth AM Peak Period ϰ͕ϳϳϬല ϲ͕ϵϵϬല ϭϱ͕ϭϴϬല dƌĂŶƐŝƚĞŵĂŶĚല AGENDA ITEM3.2 Page 161 of302 Note that this assessment does not represent a rigorous modelling exercise and should only be leveraged for the purposes of providing broader context to the overall transit governance strategy. The Status Quo scenario assumes 2% annual growth. 47 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 After service integration, transit ridership is expected to growAppendix 2 by up to 80% region-wide by 2031 in the High-Growth Scenario Service integration will allow for more seamless travel region-wide. With appropriate service enhancements, every local municipality will have substantial growth in transit ridership AGENDA ITEM3.2 Page 162 of302 Note that growth rates for Grimsby, Wainfleet and West Lincoln are excluded since there was no transit service in 2019 48 Office oftheChief Administrative Officer Response toNiagara Transit G... Future State Transit Service Plan LNTC-C 4-2020 Demand for specialized transit serviceAppendix 2 is expected to grow between 20% and 40% 2018 Observed 2021 Forecast 2031 Forecast Total Clients 4,390 4,580 – 4,780 5,300 – 6,360 Total Trips 124,087 129,460 – 135,025 149,865 – 179,840 Ambulatory / Non- 32,015 – 33,390 / 37,058 – 44,470 / 30,684 / 93,403 ambulatory Patient Trips 97,445 – 101,635 112,810 – 135,370 Trips with / without a 23,710 – 24,730 / 27,445 – 32,935 22,725 / 101,362 support person 105,750 – 110,295 122,420 – 146,905 Growth in Specialized Transit Trips 200 175 150 Thousands 125 100 75 Low Growth AGENDA ITEM3.2 Page 163 of302 50 25 High Growth 0 49 Data and growth rates extracted from the January 2020 Niagara Specialized Transit report (IBI Group, 2020) Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Expected Service Growth Appendix 2 Transit service must increase dramatically over the first ten years to meet ridership demand after amalgamation. Region-wide, capacity must increase by over 300,000 service-hours (approximately 95% increase over 2019) in the high-growth scenario. Ridership Anticipated Annual Trips Service Hours Estimated Service Hours Municipality (2019) (2031) (2019) Required (2031) Intermunicipal Services 1,065,933 2,080,000 – 3,420,000 85,070 105,000 – 198,000 Niagara Falls 2,009,784 2,085,000 – 3,430,000 95,538 99,000 – 165,000 St. Catharines 4,731,453 4,600,000 – 7,100,000 152,181 148,000 – 230,000 Welland 738,998 870,000 – 1,440,000 42,509 50,000 – 83,000 Port Colborne 12,700 20,000 – 40,000* 2,600 8,500+ Thorold 286,037 255,000 – 450,000 11,779 12,000 – 19,000* Fort Erie 40,467 49,000 – 81,000* 13,313 16,000 – 27,000 Niagara-On-The-Lake 29,510 22,000 – 37,000* 6,545 8,500+ Grimsby (On-Demand)~ N/A 5,000 – 9,000* N/A 3,500+ Lincoln (On-Demand)~ 2,000 6,000 – 10,000* 2,064 3,500+ Pelham (On-Demand)~ 7,895 15,000 – 26,000* 5,458 5,500+ West Niagara N/A 290,000 – 475,000* N/A 42,000 – 56,000 (On-Demand)~ AGENDA ITEM3.2 Page 164 of302 Summary 8,924,777 10,030,000 – 16,200,000 417,057 502,000 – 803,000 *Note: the demand models employed are less effective at predicting ridership precisely in smaller municipalities and areas with now existing transit service; these values should be considered carefully in this context. +Note: service hour growth for Port Colborne and Niagara-on-the-Lake is required for ensuring customers have equal access to transit throughout the region by providing equivalent service levels and span-of-service to other local municipalities 50 ~Note: West Niagara Intermunicipal On-Demand is separate from local on-demand service in Grimsby, Lincoln or Pelham Office oftheChief Administrative Officer Response toNiagara Transit G... Future State Transit Service Plan LNTC-C 4-2020 Service Improvement Increments Appendix 2 Initialization Phase Growth Phase Future Outlook 2021 – 2022 2023 - 2026 2026 - 2031 Initialization of the new Considerable investment in Incrementalntal trtransitionansition toto anan integrated service service hours across the region integrateddf fare for f region-wide i id Harmonize costs and hourly rates Expansion of fleet and facilities to travel to drive ridership growth for operators and staff accommodate growth and ensure seamless and fair Initial phases of harmonized fares Potential demand for incremental access to opportunities by are implemented investment in transit priority transit Implement an integrated fare measures such as queue jump New services and infrastructure system and associated lanes, transit signal priority and investment into higher-order technology to support region- dedicated right-of-way AGENDA ITEM3.2 Page 165 of302 transit such as Bus Rapid Transit wide travel Implementation of fixed-route Improve services in Port services into West-Niagara to Colborne, Fort Erie and Niagara- satisfy growing transit demand on-the-Lake to ensure consistency across the region 51 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Operating Cost Comparison Across ScenariosAppendix 2 Assuming a “Go-Live” date in the fiscal year of 2022, the new entity will need to make considerable investments in order to satisfy the demand for transit services in the region. Service investment in order to achieve high growth is approximately 55% greater than the Status Quo scenario. Savings in the low-growth scenario are driven by lower more strategic investment in services and a reduced administrative burden over the status quo. Notice that the average cost-per-trip is lower in both the low growth and high growth scenarios. $120 ns e illio M ns $100 pe Ex $80 ng i t $60 a r pe $40 O l Integrated transit $20 service begins nnua A Avg $- Annual Avg Cost 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Change per Trip Status Quo $ 53.8 $ 55.4 $ 55.4 $ 56.1 $ 56.9 $ 57.6 $ 58.4 $ 59.2 $ 60.0 $ 60.8 $ 61.7 $ 62.5 $ 63.4 1.44% $ 9.16 Low Growth $ 53.8 $ 55.4 $ 54.6 $ 55.4 $ 57.3 $ 58.3 $ 59.2 $ 60.2 $ 61.1 $ 61.5 $ 62.5 $ 63.4 $ 64.4 1.79% $ 8.78 AGENDA ITEM3.2 Page 166 of302 High Growth $ 53.8 $ 55.4 $ 54.6 $ 55.4 $ 60.7 $ 69.3 $ 73.5 $ 77.1 $ 81.3 $ 84.9 $ 89.1 $ 93.2 $ 96.8 7.74% $ 8.39 Note that costs and revenues represent real dollars ($2019) and are not adjusted for inflation Operating Costs in Millions 52 Office oftheChief Administrative Officer Response toNiagara Transit G... Future State Transit Service Plan LNTC-C 4-2020 Implementing an integrated fare structureAppendix is 2 critical to achieving ridership growth targets Additional consideration should be made for the impact on changing fare policy on the post-secondary student pass programs at Brock University and Niagara College. Note that for this analysis it is assumed that the Post-Secondary UPass Program is tied to enrollment, not student ridership, and thus remains constant under all future scenarios. 2022 2031 Start-of-Service Status-Quo Integrated Transit Fares Regional Cash Fare $ 6.00 $ 6.00 $ 3.00 - $ 3.50 Local Cash Fare $ 3.00 $ 3.00 $ 3.00 - $ 3.50 Total Customer Journeys 6.2M – 6.5M 6.8M 7.3M – 10.8M Student Customers 3.6M 3.7M 4.0M – 5.4M Non-student 2.7M – 2.9M 3.0M 3.3M – 5.4M Customers Total Revenue $ 18.2M - $ 18.5M $ 20.1M $ 20.3 – $ 29.2M Post-Secondary Pass AGENDA ITEM3.2 Page 167 of302 $ 10.5M $ 11.6M $ 11.6M Program Revenue General Fare Revenue $ 7.7M - $ 8.0M $ 8.5M $ 8.7M – $ 17.6M Average Revenue per Trip $ 2.84 – $ 2.91 $ 2.91 $ 2.53 – $ 2.77 Note that costs and revenues represent real dollars ($2019) and are not adjusted for inflation 53 Office oftheChief Administrative Officer Response toNiagara Transit G... Future State Transit Service Plan LNTC-C 4-2020 Specialized Transit Operating Cost ComparisonAppendix 2 $10.0 s n $9.0 Integrated transit e illio service begins 20% M ns $8.0 pe $7.0 Ex $6.0 ng i t $5.0 a r $4.0 pe O $3.0 l $2.0 nnua $1.0 A $0.0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 AGENDA ITEM3.2 Page 168 of302 Low Growth $ 5.6 $ 6.0 $ 6.4 $ 6.5 $ 6.6 $ 6.7 $ 6.8 $ 6.8 $ 6.9 $ 7.1 $ 7.2 $ 7.3 $ 7.4 High Growth $ 5.7 $ 6.2 $ 6.6 $ 6.8 $ 7.0 $ 7.3 $ 7.5 $ 7.7 $ 7.9 $ 8.1 $ 8.4 $ 8.6 $ 8.8 Operating Costs in Millions Note that costs and revenues represent real dollars ($2019) and are not adjusted for inflation 54 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Major Capital Investments Appendix 2 While several key investments in technology and infrastructure will be required to address service growth throughout the region, over $ 74M-worth of projects have committed funding from the federal and provincial governments through ICIP and are anticipated to advance within the next few years. Up to 82, 40’ transit vehicles and 38, 60’ articulated transit vehicles by 2031 (in the High Growth scenario) $ 95,000,000 between 2021 and Further consideration for facilities may be required as alternative 2031 ($ 9.5M/year on average) propulsion methods (e.g. hydrogen, battery-electric, etc.) are considered Niagara Falls Transit indicated that they intend to commit capital funding to improve existing terminal facilities within the City. $ 4,500,000 in 2020/2021 A new facility will replace the existing Welland Transit Garage, and is particularly useful for the high growth scenario The site is ideally situated in close proximity to most endpoints of inter- $ 13,000,000 to $ 16,000,000 municipal services, making it preferable for servicing and overnight in 2022 to 2025 storage of those vehicles, in addition to vehicles assigned to Welland, Port Colborne and Fort Erie St. Catharines Transit has indicated that garage facility upgrades will be required within the next ten years $ 15,000,000 to $ 20,000,000 Services in St. Catharines will also experience the largest growth in 2025 to 2027 requirements for fleet, which will further strain existing garage facilities Integrated electronic fare collection system is required at launch Up to $ 7,500,000 for fare system AGENDA ITEM3.2 Page 169 of302 It is anticipated that the existing ITS systems will require replacement depending on technology towards the end of the ten-year horizon. With a larger fleet and an expectation of changing technologies, this $ 20,000,000 to $ 30,000,000 in investment will be substantial 2028 to 2030 Note that these are intended for consideration and high-level estimation of capital cost requirements and not intended to replace a more fulsome business case or investment study. 55 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Future State Transit Service Plan Summary AGENDA ITEM3.2 Page 170 of302 56 Office oftheChief Administrative Officer Response toNiagara Transit G... Future State Transit Service Plan LNTC-C 4-2020 Integration Will Drive Ridership GrowthAppendix 2 By way of investments and harmonization of services and fares, transit under an amalgamated system is anticipated to become a more frequently used means of transportation in the region, with ridership outpacing the status quo. Key Transit ridership forecasts indicate a latent demand for inter-municipal transit travel that the existing disconnected Highlights transit providers are unable to accommodate. As a result, transit ridership growth across the region is driven by improved inter-municipal transit trips and improved connections to GO Transit rail services. By investing in targeted projects and services to grow the transit mode share throughout the region, transit ridership region-wide could grow by over 80% by 2031 under an amalgamated transit service. It is anticipated that Niagara Region, like its peer jurisdictions will experience a transit mode share growth of 30% to 130% within ten years of amalgamation. Capital investment of between $70M and $155M between 2021 and 2031 may be required to address service and demand growth. Provincial Gas Tax revenue could result in up to $50M - $80M in revenue over the same ten years. Over $ 70M-worth of near- and mid-term projects have committed funds from the federal and provincial governments through ICIP. An integrated single fare is critical to driving ridership growth and could be achieved in a way that is revenue-neutral if implemented progressively as ridership grows. While an integrated payment system and harmonized fare structure will be required at the start of service, a single fare region-wide can be implemented over time. Key Operating costs could be impacted by governance decisions around harmonization of salaries and hourly rates for Considerations staff and operators Subsidy and alternative revenue generation will have to be considered, particularly the allocation of gas tax funds to capital and operating expenses. AGENDA ITEM3.2 Page 171 of302 The new entity will be responsible for delivering and investing in service to drive aspirational ridership growth, no matter what governance structure is implemented. The new organization will be responsible for establishing transit service standards region-wide, which must balance cost effectiveness of various transit modes with the necessary levels of service to increase ridership and improve the public perception of transit’s effectiveness in Niagara Region. 57 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Niagara Transit Governance Study Model Options, Analysis, and Recommendation AGENDA ITEM3.2 Page 172 of302 58 Office oftheChief Administrative Officer Response toNiagara Transit G... Model Options, Analysis, and Recommendation LNTC-C 4-2020 Introduction Appendix 2 The third and fourth phases of work involved developing potential model options, evaluating their potential, and ultimately recommending a preferred model for Niagara’s integrated transit system. Current State and Future State Transit Model Options Model Analysis Transition Planning Leading Practices Service Plan Development Developing and Evaluating Potential Options Once a thorough understanding of the current state of transit and the potential future growth in Niagara was complete, the information gained was used to develop three potential governance models that would be capable of delivering transit services in the region and meeting service expectations now, and in the future. All three of these options were considered to be capable of meeting Niagara’s transit needs, but in order to determine which model would be best suited for the region, a thorough analysis was undertaken during which each option was evaluated against a series of criteria that spanned the domains of operations, finance, stakeholder equity and input, and ease of implementation. Once that analysis was completed, the preferred model was identified. This section contains an overview of each of the proposed transit system models, a description of the evaluation criteria used to evaluate them against each other, and a summary of the results of this analysis. Moreover, the closing slides of this section contain a summary of the rationale for the recommended model, a brief overview of some key risks and considerations that will need to be addressed as the AGENDA ITEM3.2 integrationPage 173 of302 moves forward, and additional information around organizational and governance structure that has been recommended. 59 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Model Options, Analysis, and Recommendation Model Options Overview AGENDA ITEM3.2 Page 174 of302 60 Office oftheChief Administrative Officer Response toNiagara Transit G... Model Options Overview LNTC-C 4-2020 Model Options Overview Appendix 2 Following the completion of the current state review, the jurisdictional scan, and the development of the future state plan, three potential governance models were developed: Limited Full Regional Commission Commission Division o Transit Service is governed by o Distinct entity independent o Division within Niagara a regional commission with from Regional Council Region’s Public Works representation from local o Governed by a board of department elected officials. appointed members, o Regional Council remains the o Commission reports to equitably selected by governing body of the transit Regional Council Regional Council division o Strategic decision making for o Responsible for all transit o Strategic decision making for Transit Service is directed by planning and delivery Transit Service is directed by Regional Council o Budget allotment approved Regional Council o Relies on corporate services by Regional Council o Integrated into the Regional but retains transit-related o Makes limited use of Regional administration similar to services in-house services except where service other service delivery sharing does not impede departments agility or independence AGENDA ITEM3.2 Page 175 of302 Transit System Examples Durham Region Edmonton York Region TTC Waterloo Region St. Catharines 61 Office oftheChief Administrative Officer Response toNiagara Transit G... Model Options Overview LNTC-C 4-2020 Model: Limited Commission Appendix 2 The governance models highlighted in the previous slide have many similarities and differences. The following slides contain a comparison of them by reviewing a few key characteristics: Commission membership is a combination of Local and Regionally elected representatives and would have representation from all local area municipalities in the Region, selected by their respective Council and appointed by Regional Council. Governance There is also opportunity for non-elected members of the public to be members of Structure & Commission. Decision Making Commission acts as an Advisory group to Council where strategic decisions for service standards, service levels, budgets, and fares are made by Regional Council. Commission decision making is focused on operating policies to implement and deliver transit services and collect fares. Will take advantage of Regional corporate services and therefore can expect a reduction in FTE. Shared corporate support services can be purchased from Niagara Organizational Region for areas such as Finance, HR, Legal, Service Planning, etc. Structure and Shared Services To ensure adaptability, the Commission will retain such transit-related services as procurement, fleet maintenance, and communications to ensure transit-specific autonomy is provided but also allows leveraging of corporate supports. AGENDA ITEM3.2 Page 176 of302 Regional Council will make the funding decisions based on recommendations from Funding Sources the Commission regarding annual service levels and fare strategy. Funding sources include transit fares, Provincial and Federal funds, with the Municipality subsidizing net operating costs and funding the capital program. 62 Office oftheChief Administrative Officer Response toNiagara Transit G... Model Options Overview LNTC-C 4-2020 Model: Full Commission Appendix 2 Commission would be a distinct entity incorporated through the Municipal Act and independent from Regional Council. The Commission would be an agency of the Region of Niagara through the Municipal Act. Governance Governed by a Commission of appointed members, who are composed of a Structure & combination of elected and non-elected individuals, nominated and appointed by Decision Making Regional Council. Commission is single point of responsibility for transit service planning and delivery and is empowered to make strategic and operational decisions regarding transit service planning and delivery based on the funding approval from Regional Council. Commission is a ‘purpose-built’ transit planning and delivery agency. Organizational Financial reporting for Transit Commission is independent of Regional Council and Structure and has agency specific methods and systems in place. Shared Services Transit agency-specific methods and systems in place for IT, HR, legal, service planning. Commission will set fare policy and deliver service within the budget allotment AGENDA ITEM3.2 Page 177 of302 Funding Sources approved by Regional Council. Funding sources include transit fares, Provincial and Federal funds, with the member municipalities subsidizing net operating costs and funding the capital program. 63 Office oftheChief Administrative Officer Response toNiagara Transit G... Model Options Overview LNTC-C 4-2020 Model: Regional Division Appendix 2 The Regional Council remains the governing body of the transit division (much like Niagara Region Transit currently). A Transit Committee of Council should be created to provide oversight during Governance transition and early years of operation. Regional Council makes decisions for service Structure & standards, service levels, budgets and fares. Decision Making Staff administers the Transit program as approved by Regional Council to deliver transit services and collect fares. Decision making for Transit Service is directed by Regional Council which has locally elected representation. Transit Services are integrated into the Regional administration similar to other Organizational service delivery departments. Structure and Shared Services Corporate support services will be provided and charged to transit services as determined by internal Regional policy. Regional Council will make the funding decisions based on recommendations from Staff regarding annual service levels and fare strategy. AGENDA ITEM3.2 Page 178 of302 Funding sources include transit fares, Provincial and Federal funds, from the Funding Sources Municipality subsidizing net operating costs and funding the capital program. Regional Council will determine tax levy and capital program needs and financing through debentures, capital reserves and development charges. 64 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Model Options, Analysis, and Recommendation Evaluating the Different Model Options AGENDA ITEM3.2 Page 179 of302 65 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Overview of Criteria Appendix 2 Four separate evaluation categories were used to evaluate and compare the different model options. Within each category are more detailed criteria upon which models were evaluated. The results of this evaluation will then enable the selection of a recommended model. The governance and operational characteristics that allow the transit Governance and entity to achieve transit objectives Operations and accommodate future growth The complexity associated with transitioning from current state to the integrated transit entity Ease of Recommended Financial Impact Implementation Model The financial implications of implementing and operating the integrated transit entity AGENDA ITEM3.2 Page 180 of302 Stakeholder Input and Equity is the degree to which the integrated transit entity makes decisions Stakeholder in the best interest of the region, balances regional Input and Equity transit priorities with regional equity, and allows for local municipal autonomy and input 66 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Overview of Analysis Appendix 2 The following points provide additional context for the development of evaluation criteria and how evaluation was conducted: Perspective Taken for Analysis o The objective of the model analysis is to determine which governance model would best deliver on the ambitions outlined in the Future State Transit Service Plan. o The Future State Transit Service Plan was not a direct input into the governance structure recommendation, however it provided critical context of how residents and workers in Niagara region will utilize the services. Evaluation criteria may be perceived differently by different stakeholders. With regards to the evaluation, models were assessed by looking at which best serves the interest of the region and its aspirations to make transit a more viable alternative for commuters, students, residents, and tourists alike. Structure of this Section o The Summary of Analysis section in the following slides provides the scores within the four evaluation categories with a high-level rationale. The Harvey Ball Method was used, which depicts a visual representation of the model comparison. This method was chosen at they are useful in demonstrating the results of relative analysis, particularly for more qualitative measures. In the full ‘Model Analysis Report’, greater detail is provided on the rationale for the ratings of each criteria. AGENDA ITEM3.2 Page 181 of302 Evaluation Category and Criteria Weighting o To further analyze the results of the model options analysis, several different weighting scenarios were applied to understand the impact that placing different levels of importance of particular categories or criteria would have on the final recommendation. It was found that there was no impact and therefore no weighting was applied. 67 Office oftheChief Administrative Officer Response toNiagara Transit G... Evaluating the Different Model Options LNTC-C 4-2020 Assumptions Appendix 2 To compare these different model options, some key assumptions were made to ensure a thorough and fair evaluation: 1. Initial transit services will be based on transfer of existing services Meaning that service levels and commitments will remain largely the same for all municipalities at launch of the integrated transit entity for a defined period of time (likely 2-3 years, in agreement with Local Area Municipalities), with some expansion of service over the few years to ensure consistency across the region. 2. Cummings Principle will be used to transfer assets The premise of the Cumming Principle is to transfer assets (and related outstanding liabilities), from one municipality to another with no additional compensation since transferring assets for additional compensation results in the taxpayer paying twice for the same public asset. This Principle has been applied for over four decades in the municipal setting throughout Ontario, and in the vast majority of transit consolidations reviewed as leading practices. The use of the Cummings Principle is also well aligned to the guiding principle of fairness, which respects the existing investments made by communities on behalf of taxpayers. 3. Investments in service will meet the transit demands across the network This includes ensuring that the span of service across the Region is consistent and that all parts of the region have access to some form of transit service on a prioritized basis over time, and that as demand grows, AGENDA ITEM3.2 Page 182 of302 service levels will increase to meet the demand. 68 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Model Options, Analysis, and Recommendation Summary of Analysis: Governance and Operations AGENDA ITEM3.2 Page 183 of302 69 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Summary Appendix 2 The governance and operational characteristics that allow the transit entity to achieve transit objectives and accommodate future growth. Criteria Description Limited Commission Full Commission Regional Division Authority and Speaks to the accountability and Accountability in decision making power held by the Driving Change transit entity. Ability for the entity to move from decision to action, and to react Agility and quickly to environmental changes, Flexibility new legislation, advancing technology, and changing user demands. Ability of the future transit entity to Accommodates respond to projected ridership and Future Growth service growth forecasted in the Future State Transit Service Plan. Public perception refers to the Public brand and image of the transit Perception entity in the eyes of the citizens it is AGENDA ITEM3.2 Page 184 of302 designed to serve. No alignment Little alignment Somewhat aligned Well aligned Strongly aligned 70 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Governance and Operations LNTC-C 4-2020 Appendix 2 Authority and Accountability in Driving Change A transit entity with greater authority to drive change is one that can make decisions to build the desired transit network in Niagara while demonstrating accountability to the public in order to maintain ongoing support for continued transit investment and growth. Model Assessment Rationale The Limited Commission drives operational decision making and makes recommendations to Council on strategic matters, but may Limited Commission be viewed as less regionally accountable where recommendations are more locally focused resulting in lost support for transit growth. The Full Commission is a separate body that operates independently of Regional Council apart from regular reporting and budgetary Full Commission approvals, and are accountable for their own decisions, to maintain public and political support for ongoing transit investment. The Regional Division model would rely on Regional Council for decision making and is expected to make more regionally-focused Regional Division recommendations, although their accountability and support will be based on the broader perception of other Regional services delivery. AGENDA ITEM3.2 Page 185 of302 While Regional Council maintains control over annual funding approvals, the Full Commission is still more empowered to drive change and influence transit in Niagara Region than the other two models and will be directly accountable for their decisions to maintain public and political support for ongoing transit investment. 71 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Governance and Operations LNTC-C 4-2020 Agility and Flexibility Appendix 2 The agility and flexibility of the transit entity refers to its ability to move from decision to action, and to react quickly to environmental changes, new legislation, advancing technology, and changing user demands. Model Assessment Rationale The challenges associated with the Limited Commission being an Limited Commission external organization but still relying on Council for key decisions and approvals will reduce its agility significantly. The Full Commission’s ability to make decisions and quickly Full Commission reprioritize as needed makes it more agile and flexible than the other models. The Regional Division benefits from its location within the Regional structure to make best use of shared services and understand Regional Division competing priorities, but must still seek Council approval and coordinate with other Departments before taking action on strategic matters. Full Commissions is more capable of reacting to environmental change, moving from idea AGENDA ITEM3.2 Page 186 of302 to action, and mobilizing their workforce to pivot and respond to external pressure and needs. 72 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Governance and Operations LNTC-C 4-2020 Accommodates Future Growth Appendix 2 Accommodation of future growth speaks to the ability of the future transit entity to respond to projected ridership and service growth forecasted in the Future State Transit Service Plan. Model Assessment Rationale Though exclusively focused on transit and able to leverage Limited Commission economies of scale, the Limited Commission may be less apt to making growth decisions with a regional lens. The Full Commission’s ability tomakeregionally-focused Full Commission decisions and be flexible to growing and changing needs make it more able to accommodate it. A Division's ability to secure ongoing funding, make regionally-focused decisions, and better coordinate with Regional Division other regional services position it well to accommodate future growth. AGENDA ITEM3.2 Page 187 of302 The ability to accommodate future growth will be largely based on funding and ability to make regionally-focused decisions, thus making the Full Commission and Regional Division the strongest options. 73 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Governance and Operations LNTC-C 4-2020 Public Perception Appendix 2 Public perception refers to the brand and image of the transit entity in the eyes of the citizens it is designed to serve. Model Assessment Rationale At launch, a regionally-focused transit entity delivering Limited Commission integrated and equitable service to Niagara residents can be expected to receive favorable feedback from the public. However, neither a Commission or Regional Division Full Commission governance model will hold an advantage in the long-term, as these systems have each received a share of scrutiny and critical attention from the public and media in the past. Ultimately, the new entity’s perception will be built around Regional Division its service consistency and quality, communication, branding initiatives, and accountability. AGENDA ITEM3.2 Page 188 of302 Either Commission or Regional Division model options are equally susceptible to scrutiny given historical controversies, and risk mitigation strategies and proper accountability measures will need to be incorporated into any chosen model. 74 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Model Options, Analysis, and Recommendation Summary of Analysis: Financial Impact AGENDA ITEM3.2 Page 189 of302 75 Office oftheChief Administrative Officer Response toNiagara Transit G... Financial Impact LNTC-C 4-2020 Summary Appendix 2 The financial implications of implementing and operating the integrated transit entity. Criteria Description Limited Commission Full Commission Regional Division The costs of implementing each Lower Cost of model are associated with the Implementation* complexity and the size of the organizations proposed. Operating costs and efficiencies relate to how much a transit Operating Cost agency will spend, but more Efficiency* importantly how effectively those dollars are allocated to services throughout the region. Financial decision making refers to decisions leading to transit operating and capital costs, and Financial decisions regarding how to Decision Making generate the necessary funding, and ability to secure budget approvals. The potential for ongoing financial support to fund the necessary Potential for investment to build and maintain a Ongoing transit network which offers Financial Support seamless travel within Niagara, AGENDA ITEM3.2 Page 190 of302 while also supporting connections with GO Transit services. No alignment Little alignment Somewhat aligned Well aligned Strongly aligned *With regards to Costs of Implementation and Operating Cost Efficiency, a full circle represents lower relative costs 76 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Financial Impact LNTC-C 4-2020 Lower Cost of Implementation* Appendix 2 The costs of implementing each model are associated with the complexity and the size of the organizations proposed. Model Assessment Rationale Both the Limited and Full Commission models will require Limited Commission 2 an investment in start-up costs. These costs would include the legal costs associated with establishing the Commission in the Municipal Act and associated local bylaws as well as Full Commission 2 selecting and moving staff and physical resources to a consolidated office location. Implementing a Regional Division in municipal bylaw will likely require less effort. However the costs are not Regional Division 2 anticipated to be substantially lower than the Commission models. The governance model options are anticipated to have similar order of magnitude' AGENDA ITEM3.2 Page 191 of302 implementation costs No alignment Little alignment Somewhat aligned Well aligned Strongly aligned 77 Office oftheChief Administrative Officer Response toNiagara Transit G... Financial Impact LNTC-C 4-2020 Operating Cost Efficiency* Appendix 2 Operating cost efficiency relates to how effectively those operating expenses are at providing highly efficient transit services. Model Assessment Rationale The Limited Commission will have budgetary restrictions and be required to provide the desired service levels within their approved annual budget. Limited Commission However, a Limited Commission may receive greater local area municipality input on day-to-day service-related decisions which may result in changes to service that require sacrifices to service efficiency to address other priorities. The Full Commission will likely have the greatest budgetary restrictions and will have to ensure that all operations and unanticipated changes to the service are Full Commission accommodated within their approved annual budget. As such, they will likely be required to provide the most effective service within their financial means. Regional Division will have greater budgetary flexibility, being able to capitalize on budget savings in other regional departments to make unanticipated changes to service. Additionally, a Regional Division may receive greater local Regional Division area municipality input in day-to-day service-related decisions which may then be supported by budgetary amendments at council rather than identifying internal efficiencies. A Full Commission could provide the greatest value for operating expenses invested in service by ensuring that services are allocated as efficiently as possible within budgetary AGENDA ITEM3.2 Page 192 of302 constraints. This trend seems to be supported by peer agency review. No alignment Little alignment Somewhat aligned Well aligned Strongly aligned *With regards to Costs of Implementation and Operating Cost Efficiency, a full circle represents lower relative costs 78 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Financial Impact LNTC-C 4-2020 Financial Decision Making Appendix 2 Financial decision making refers to decisions leading to transit operating and capital costs, along with decisions regarding how to generate the necessary funding, and the ability to secure budget approvals. Model Assessment Rationale The Limited Commission defers to Council for all strategic Limited Commission decisions, which are informed by recommendations from the Commission. Apart from annual operating and capital budget approvals, Full Commission all financial decisions are made by the Commission. The Regional Division must take a broader look at regional Regional Division priorities when recommending action to Council. Regional Council holds the ultimate financial decision-making responsibility through the approval of the annual budget for all models, but the Full Commission Model has the most AGENDA ITEM3.2 Page 193 of302 independence to make strategic decisions which drive financial outcomes for transit services. Little alignment Somewhat aligned Well aligned Strongly aligned 79 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Financial Impact LNTC-C 4-2020 Potential for Ongoing Financial SupportAppendix 2 The potential for ongoing financial support to fund the necessary investment over several years, to build and maintain a transit network which offers seamless travel within Niagara, while also supporting connections with GO Transit services Model Assessment Rationale Financial recommendations to Council may not be supported if they are deemed to be too locally focused or Limited Commission not viewed as forwarding regional priorities. The budget request would be separate from the Region’s internal budgetary process. While exclusively focused on transit, the Full Commission may be less aligned with other regional priorities and Full Commission achieve less Council support. The budget request would be separate from the Region’s internal budgetary process. This model offers the closest integration with other regional Regional Division priorities and thus increases the potential for ongoing financial support. AGENDA ITEM3.2 Page 194 of302 Regional Council holds the ultimate financial decision-making responsibility, and the Regional Division offers an advantage by being integrated and aligned with other internal Regional priorities and can leverage thistoobtainongoingfinancial support. Little alignment Somewhat aligned Well aligned Strongly aligned 80 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Model Options, Analysis, and Recommendation Summary of Analysis: Stakeholder Input and Equity AGENDA ITEM3.2 Page 195 of302 81 Office oftheChief Administrative Officer Response toNiagara Transit G... Stakeholder Input and Equity LNTC-C 4-2020 Summary Appendix 2 Stakeholder Input and Equity is the degree to which the integrated transit entity makes decisions in the best interest of the region, balances regional transit priorities with regional equity, and allows for local municipal autonomy and input. Criteria Description Limited Commission Full Commission Regional Division Ability to balance the needs and Equity perspectives of larger and smaller municipalities. The degree to which the integrated transit agency can make decisions that contribute to Serves the the broader public good and the Public Interest region’s aspirations overall, and informed by public engagement and input. The degree to which local area municipalities will be able to provide input into service Municipal Input planning and delivery decisions, while also maintaining local autonomy. AGENDA ITEM3.2 Page 196 of302 No alignment Little alignment Somewhat aligned Well aligned Strongly aligned 82 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Stakeholder Input and Equity LNTC-C 4-2020 Equity Appendix 2 A transit entity with greater consideration of equity will be able to balance the various needs and interests across Niagara Region, and can implement decisions that may not always be the most popular, cost-effective, or well received by a particular community. Model Assessment Rationale Due to the Limited Commissions more diverse and LAM- representative composition it is better suited to take on Limited Commission broader municipal input into the design of standards and strive to make them more equitable. The Full Commission’s independence allows it more Full Commission flexibility to effectively apply the standards, however it is less effective at incorporating a regional focus. This model can more effectively design standards through a Regional Division broader approach to equity, but is less suited to apply the standards without influence. The Limited Commission holds a slight advantage in terms of ability to promote equitable transit service delivery through more diverse and transit-focused decision making, and less AGENDA ITEM3.2 Page 197 of302 impacted by external influence and political considerations. Little alignment Somewhat aligned Well aligned Strongly aligned 83 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Stakeholder Input and Equity LNTC-C 4-2020 Serves the Public Interest Appendix 2 The degree to which the integrated transit agency can make decisions that contribute to the broader public good and the region’s aspirations overall, and informed by public engagement and input. Model Assessment Rationale A Commission model, whether Limited or Full, is similarly able to Limited Commission gather public input on transit services, in a more focused manner through an emphasis on transit users to inform decision making and long-term plans. It is recommended that an advisory committee be Full Commission considered to ensure that stakeholder input is heard and reflected within the Commission model. Long term planning for transit should not only consider community, Regional Division and the built environment but can influence future decisions made for the region to align transit and broader community needs. A Regional Division holds an advantage, as the Region already provides a multitude of services that are connected to transit planning. Leading practices demonstrate that transit cannot be viewed as an isolated service, rather it is integrated with other disciplines. AGENDA ITEM3.2 Page 198 of302 Little alignment Somewhat aligned Well aligned Strongly aligned 84 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Stakeholder Input and Equity LNTC-C 4-2020 Municipal Input Appendix 2 The degree to which local area municipalities will be able to provide input into service planning and delivery decisions, while also maintaining local autonomy to influence tax policy related to municipal transit to enhance or increase local service. Model Assessment Rationale This model provides LAMs with the greatest degree of input Limited Commission and influence over transit decision making through Regional Council and the representative Commission. The Full Commission model is more independent and provides flexibility for LAMs to exert local autonomy and Full Commission increase local services, but decreases their direct influence on overall decision making. A Regional Division leverages existing decision-making Regional Division structure and representation within Regional Council to make decisions regarding transit operations. Overall, both Commission models allow for comparable degrees of municipal input into AGENDA ITEM3.2 Page 199 of302 transit-related decisions and autonomy to influence local service, though the Limited Commission allows for more direct LAM input. Little alignment Somewhat aligned Well aligned Strongly aligned 85 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Model Options, Analysis, and Recommendation Summary of Analysis: Ease of Implementation AGENDA ITEM3.2 Page 200 of302 86 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Summary Appendix 2 The complexity associated with transitioning from current state to the integrated transit entity. Criteria Description Limited Commission Full Commission Regional Division Staffing Degree of suitability of the model with regards to transferring human Resources resources to new entity, including Impacts the impact on FTE count. Degree of suitability of the model Labour with regards to conducting Relations negotiations and harmonizing collective agreements. Degree of suitability of the model Legal with regards to the legal formation Implications of the new transit entity. Degree of suitability of the model with regards to implementing the Asset Transfer Cummings Principle to the Implications required transfer of assets from the local municipalities to the new entity. AGENDA ITEM3.2 Page 201 of302 No alignment Little alignment Somewhat aligned Well aligned Strongly aligned 87 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Ease of Implementation LNTC-C 4-2020 Staffing Resources Impacts Appendix 2 Degree of suitability of the model with regards to transferring human resources to new entity, including the impact on FTE count. Model Assessment Rationale A Limited Commission may require the same or greater investment in staff resources than a Full Commission in order to handle the Limited Commission 1 more frequent interactions with Regional Council despite the natural opportunities for increased utilization of shared services over a Full Commission. A Full Commission will require greater investment in in-house staff Full Commission 1 resources since it will likely duplicate the majority of services that could otherwise be shared in a Regional Division. A regional division will benefit from shared services in lowering their dedicated headcount. However, it is unclear what the FTE impact Regional Division 3 would be on the divisions responsible for providing the shared services. AGENDA ITEM3.2 Page 202 of302 The Regional Division will benefit from shared services opportunities to lower the headcount over either commission models. However, consideration must be made for the staffing required in partner divisions that will provide those shared services. Little alignment Somewhat aligned Well aligned Strongly aligned 88 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Ease of Implementation LNTC-C 4-2020 Labour Relations Appendix 2 Degree of suitability of the model with regards to conducting negotiations and harmonizing collective agreements. Model Assessment Rationale While a Limited Commission would be a separate entity and engage Limited Commission 3 in its own bargaining practices, it is likely that decisions will be guided by CBA’s already negotiated at other Regional entities. A Full Commission would have full autonomy over its bargaining agreements with the transit unions across the region, and the Full Commission 4 shared understanding of transit operations will benefit negotiations to a greater degree than other models. A Regional Division will be beholden to negotiations and other agreements already in place in other Regional entities. Additionally Regional Division 2 it is possible that with other bargaining priorities the Region may not be able to negotiate. Since a full commission will have the greatest autonomy over its own labour relations, it is AGENDA ITEM3.2 Page 203 of302 likely that it will be easiest to transition these resources and agreements of the three proposed models. Little alignment Somewhat aligned Well aligned Strongly aligned 89 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Ease of Implementation LNTC-C 4-2020 Legal Implications Appendix 2 Degree of suitability of the model with regards to the legal formation of the new transit entity. Model Assessment Rationale Both commission models will require an extensive municipal engagement process in order to change the Municipal Act to form Limited Commission 2 the Transit Commission. This will likely involve obtaining the Triple- Majority from local city councils prior to passage at Regional Council. Only then will the amendment be submitted to the Province for approval. Establishing an appropriate mechanism for Full Commission 2 local municipalities to exercise their autonomy would be critical in the establishing amendments and how their representation on the commission is structured. A regional division can be established directly by Regional Council through a bylaw amendment that allows the Region to assume responsibility of transit services. Negotiating the transfer of transit Regional Division 3 assets, liabilities and operating agreements may be met with some resistance from the local municipalities and establishing appropriate mechanisms to maintain local autonomy could be challenging. While the Regional Division will be the most straightforward governance model to implement, owing to the fact that it should not require amendments to the Municipal Act, AGENDA ITEM3.2 Page 204 of302 its acceptance by the local municipalities may be contingent on an appropriate mechanism to ensure their local autonomy over decision-making, particularly as it relates to their continued inclusion within this entity and the negotiation of asset transfer. Little alignment Somewhat aligned Well aligned Strongly aligned 90 Office oftheChief Administrative Officer Response toNiagara Transit G... Category: Ease of Implementation LNTC-C 4-2020 Asset Transfer Implications Appendix 2 Degree of suitability of the model with regards to implementing the Cummings Principle to the required transfer of assets from the local municipalities to the new entity. Model Assessment Rationale With the Limited Commission reporting directly to Regional Council on an ongoing basis for decision-making, there may be some Limited Commission 2 concerns with respect to turning over local control of assets to a commission with less independence. A Full Commission will likely be best positioned to negotiate the transfer of assets, particularly if sufficient independence is Full Commission 3 established from Regional Council, and appropriate local municipal representation is provided. Since a Regional Division will be managed directly by Regional Council without ongoing decision-making input from local Regional Division 1 municipalities, it is possible that there could be concerns regarding asset transfer from the local municipalities. AGENDA ITEM3.2 Page 205 of302 The Full Commission is best suited to accomplish the asset transfer through the implementation of the Cummings Principle so long as it is established as sufficiently independent from Regional Council. Little alignment Somewhat aligned Well aligned Strongly aligned 91 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Model Options, Analysis, and Recommendation Recommended Model AGENDA ITEM3.2 Page 206 of302 92 Office oftheChief Administrative Officer Response toNiagara Transit G... Recommended Model LNTC-C 4-2020 Summary of Analysis Appendix 2 A side-by-side comparison showing where each model performed best within each evaluation criteria. Based on the in-depth analysis conducted, the Full Commission ranked higher in most categories. Limited Regional Neutral across Full Commission Criteria Commission Division all models Preferred Preferred Preferred Authority and Accountability ط in Driving Change ط Agility and Flexibility ط Accommodates Future Growth Operations ط Public Perception ط Lower Cost of Implementation Operating Costs and ط Efficiencies ط Financial Decision Making Financia Potential for Ongoing Financial ط Support ط Equity ط Serves the Public Interest keholder Equity Input and and Input Municipal l Impact Input ط Sta AGENDA ITEM3.2 ط Page 207 of302 Staffing Resources Impacts ط Labour Relations ط entation Legal Implications Ease of Governance& ط Implem Asset Transfer Implications 93 Office oftheChief Administrative Officer Response toNiagara Transit G... Recommended Model LNTC-C 4-2020 Recommendation: Full Commission Appendix 2 As the analysis demonstrates, the preferred model and recommendation is the Full Commission. Limited Full Regional Commission Commission Division o Transit Service is governed o Distinct entity independent o Division within Niagara by a regional commission from Regional Council Region’s Public Works with representation from o Governed by a board of department local elected officials. appointed members, o Regional Council remains o Commission reports to equitably selected by the governing body of the Regional Council Regional Council transit division o Strategic decision making for o Responsible for all transit o Strategic decision making for Transit Service is directed by planning and delivery Transit Service is directed by Regional Council o Budget allotment approved Regional Council o Relies on corporate services by Regional Council o Integrated into the Regional but retains transit-related o Makes limited use of administration similar to services in-house Regional services except other service delivery where service sharing does departments not impede agility or AGENDA ITEM3.2 Page 208 of302 independence The Full Commission model brings the right degree of autonomy and flexibility to innovate, drive growth, and meet the diverse and changing needs of the region. 94 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Benefits of the Full Commission Appendix 2 Ultimately, the analysis led to the conclusion that the Full Commission is the most suitable model for Niagara. While many factors went into this recommendation, two of the chief benefits that made the Full Commission more attractive than other models were: The Autonomy of the Full Commission The Financial Benefits o The independence of the Full Commission grants it o The Full Commission will likely have the most cost- several advantages that make it the most suitable option efficient service, in part due to a more streamlined for the growth potential of transit in Niagara. decision-making process and being restricted to provide the most effective service within the means previously o With this independence, the Full Commission can remain more focused solely on transit and is more capable of defined in the annual budget. formulating its own responses to trends and pressures, o From a dollars and cents perspective, a Full Commission making and owning decisions, and driving necessary is the more costly of the models in terms of change at a strategic and operational level. administrative costs, but less costly on a per trip basis than other models due to a higher utilization of services. o This governance model is able to move from idea to action quickly and reprioritize its resources to meet o This is particularly important when looking to the future emerging demands and accommodate growth. and considering what ridership growth may be, and how services may expand to serve regional needs. o The autonomy of the Full Commission provides it advantages with respect to negotiating important o The Full Commission has the greatest flexibility to make elements such as collective bargaining agreements and strategic decisions which drive financial outcomes for the transfer of assets. transit services and is best positioned to make regionally- AGENDA ITEM3.2 Page 209 of302 focused investments in service growth. The Full Commission is best suited to grow transit in the region while delivering the high quality, innovative, and seamless transit services that the citizens of Niagara deserve 95 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Risks and Considerations Appendix 2 Identifying risks and developing mitigation strategies will be an important consideration for the implementation of the Commission model. While a more detailed exploration of risks is contained in the Transition Plan, some important elements to consider include: While the launch of an independent entity designed to make regional transit easy and affordable for residents is likely to be viewed positively in the eyes of the public, the independence of a Full Commission could be a drawback as well, given that Regional Commissions in Niagara have previously faced accusations related to Public transparency and accountability. Perception It will be particularly important moving forward that the Full Commission build and maintain open communication and engagement with the public, LAMs, and Regional Council, and continually instill confidence with these stakeholders through strong service and accountable governance and operations. With its separation from the Regional structure, there is a risk that a Full Commission will not be aligned with other Regional priorities and services. This could include initiatives related to poverty reduction, economic Misalignment development, environment, accessibility, and more. with Regional Developing strong communication channels and a culture of inter-municipal collaboration, providing regular Priorities updates to Regional and Municipal Councils, and viewing transit as a service to be integrated with other priorities, rather than isolated, will be critical to ensuring the integrated entity contributes to overall development of the region. Creating a new entity is a complex and challenging undertaking that will require the coordination and support of many different stakeholders. The implementation of this entity, from preliminary engagement of LAMs, to passage at a Council level, to the official launch will require significant and dedicated financial and human AGENDA ITEM3.2 Page 210 of302 Complexity of Integration resources. Failure to commit what is needed for implementation could result in delays and overruns. Having the proper resources in place to launch this entity will be critical for navigating the complex early stages of transition. 96 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Model Options, Analysis, and Recommendation Organizational and Governance Structure Recommendations AGENDA ITEM3.2 Page 211 of 302 97 Office oftheChief Administrative Officer Response toNiagara Transit G... Organizational and Governance Structure Recommendations LNTC-C 4-2020 Overview Appendix 2 An organizational and governance structure for the new Commission model must be determined. Listed in this section are recommendations regarding key functional areas to include in the organizational structure, as well as considerations and a recommended composition for the Commission governance structure. o As it relates to the organizational structure, a series of functional areas have been recommended for the consideration of the Commission. These can be amalgamated or divided as the Commission sees fit, however it is important to note that the span of control (the number of pillars across the organization) should complement the size of the organization and preferred leadership structure and encourage cross- functional collaboration. o The organizational structure and positions within it (titles and positions shall be determined by the Commission) should be continually reassessed to ensure that it fits the strategic objectives of the Commission. o The proposed compositionoftheCommissiontookintoconsiderationdifferentmodels,andbest practices for good governance, and should be reviewed after 2 to 3 years of operation, by an independent third party to ensure that the board’s size, composition and skills ensure it is an effective governing body and achieving the strategic objectives of the Commission. o Both the organizational and governance structures of the Commission are preliminary and would be confirmed through the transition and implementation activities, by the Commission. AGENDA ITEM3.2 Page 212 of302 98 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Proposed Organizational Structure Appendix 2 Outlined below is the proposed organizational structure for the Commission: Office of the General Board of Manager Directors Customer Service Corporate Strategy & & Operations Services Innovation Fleet & Facilities Communications Conventional Customer Transformation Finance Transit Service Fleet Management Experience Group Office Delivery Information Facilities Technology Specialized Transit Strategy & Service Customer Service Service Delivery Planning Management Human Resources & Partnerships & Labour Relations Alternative & On- Transit Data & Analytics Stakeholder Demand Service Technology Delivery Relations AGENDA ITEM3.2 Page 213 of302 Legal Safety, Security & Communications Fare Management Procurement Indicates Potential Shared Services 99 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Proposed Governance Structure Appendix 2 Outlined below is the overall reporting structure for the proposed governance structure of the Commission. The CEO or General Manager would report to the board whereas the Advisory Committee provides non-binding advice to the Commission. Board of Advisory Directors Committee CEO/General Manager AGENDA ITEM3.2 Page 214 of302 Customer Service Corporate Strategy & & Operations Services Innovation Fleet & Facilities Communications 100 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Commission Membership Options Appendix 2 Membership structure of the Commission may fall on a continuum similar to the one below, each with its own advantages and challenges. Whereas elected officials are accountable to the public and represent local municipal interests, skills-based members bring a diverse set of skills and are less restrained by municipal interests. Non-elected representatives, with Elected members of skills in public transportation, Regional Council appointed finance, strategy, business Definition to the Commission. operations, legal, etc. ElectedHybrid Skills Examples Durham Transit Toronto Transit Commission Metrolinx Edmonton (pending London Transit Commission approval) St. Catharines Transit Commission Niagara Parks Commission AGENDA ITEM3.2 Page 215 of302 A hybrid governance structure is recommended for Niagara, as it allows a combination of elected officials and skills-based members to provide guidance and oversight 101 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Membership Recommendations Appendix 2 The recommended structure is a hybrid, including elected officials and skill-based members for effective and balanced governance of the Commission. o Ahybridboardgovernance structure is recommended for Niagara, as it provides a combination of elected officials and skills-based members. This allows member municipalities to represent local interests and for elected officials to have stewardship over the resources allocated to the Commission. In addition, skilled members can fill any gaps in skills or experience particular to the Commission through those who have experience in the industry or more broadly. o The proposed governance structure should be reviewed after 2 to 3 years of operation, by an independent third party to ensure that the board’s size, composition and skills ensure it is an effective governing body and achieving the strategic objectives of the Commission. o In recommending the proposed governance body, the size of the body as well as the breakdown of elected and skilled members was considered. In line with leading practices, a board between 7 and 12 members is recommended for effective and efficient decision making. The proposed composition also took into consideration the dynamics between elected and skilled members and ensured that there was an almost even split between the two constituencies of the board for balanced oversight. o It is recommended that a Nominating Committee of the Regional Council should select the Chair from among elected officials and the Vice-Chair be selected from among the skilled members for balanced leadership. AGENDA ITEM3.2 Page 216 of302 o Alternatively, a larger number of elected representatives of the local area municipalities was considered, however due to the reporting relationship to Regional Council, it was determined that the voice of elected members would be well represented. Note: Any previous relationships and governance bodies for transit reporting would cease to exist once the Commission has been established (i.e. the Linking Niagara Transit Committee, NGTS CAO Working Group and the Inter-Municipal Working Group (IMTWG)) 102 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Proposed Composition of the CommissionAppendix 2 Outlined below is the proposed composition of the Commission, which would be appointed by a Nominating Committee of the Regional Council. Members of Regional Council (1) Welland (1) St. Catharines (1) Niagara Falls (2) Niagara Municipalities [Selected amongst representatives of: West Lincoln, Lincoln, Grimsby, Pelham, Thorold, Niagara on the Lake, Wainfleet, Fort Erie, and Port Colborne] Skill-based or Public Members (4) Skills-based or Public members (appointed/nominated) Ex-Officio AGENDA ITEM3.2 Page 217 of302 (1) General Manager (non-voting member) 9 voting members 103 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Membership Criteria Appendix 2 Skills based or Elected Public members of the board would be appointed based on their qualifications, and their ability to contribute to strategic decision making. Skills based or Elected Public members of the board shall have executive-level and governance experience with a range of skills, knowledge, and experience with one or more large organizations. These members may provide knowledge on several different perspectives including finance, human resources, legal, public transit, etc. Some criteria that is considered for public members includes, but is not limited to: o strategic business management; o financial management, accounting, law, and engineering; o customer service or marketing management; o management or planning with a rail or public transit organization, or understanding and/or experience with transit operations; o transformative change management; o formulation and/or management of public-private partnerships; o capital project/construction management or capital procurement/supply chain management; o operations and information technology; o labour relations/industrial safety management; or, AGENDA ITEM3.2 Page 218 of302 o professional knowledge and working experience of urban sustainability, intersectionality, and inclusive governance. 104 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Proposed Advisory Committee Appendix 2 In order to incorporate the local and public interests within the region into the decision- making structure of the Commission, an Advisory Committee is recommended. Advisory Committee (12) Niagara region residents (2) Members of the Accessibility Advisory Committee (2) Member of a student association from Niagara College and Brock University (1) Member of Niagara Chamber of Commerce (1) General Manager, or designate o The composition of the Advisory Committee should balance the membership structure of the Commission and can have input into the policies, procedures and operational concerns o The Advisory Committee would be supported by Commission, and it is recommended they meet 1 to 2 times annually, as needed. o By establishing an advisory body, the Commission will gain insights into current and upcoming AGENDA ITEM3.2 Page 219 of302 challenges or opportunities and explore these in a thorough way o It is recommended that a blended approach of broad public consultation and soliciting input of the advisory committee be employed 105 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Model Options, Analysis, and Recommendation Summary AGENDA ITEM3.2 Page 220 of302 106 Office oftheChief Administrative Officer Response toNiagara Transit G... Model Options, Analysis, and Recommendation LNTC-C 4-2020 Summary Appendix 2 The development and analysis of model options, along with the recommendation of the Full Commission, represent one of the most significant undertakings of this study. Key Following the completion of the current state review, the jurisdictional Takeaways scan, and the development of the future state plan, three potential governance models were developed. An analysis of each model option was performed against a range of evaluation criteria to determine which model was the preferred option for Niagara. While all models have the potential to successfully integrate and lead transit services in Niagara, the Full Commission Model was recommended as it brings the right balance of autonomy and flexibility to innovate, drive growth, and meet the diverse and changing needs of the region. A nine member hybrid governance structure has been recommended as it allows a combination of elected officials and skills-based members to AGENDA ITEM3.2 Page 221 of302 provide guidance and oversight of the Commission. 107 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Niagara Transit Governance Study Transition Planning AGENDA ITEM3.2 Page 222 of302 108 Office oftheChief Administrative Officer Response toNiagara Transit G... Transition Planning LNTC-C 4-2020 Introduction Appendix 2 The fifth and final phase of this study involved plotting out the key steps and timelines required to amalgamate all of the transit systems in the region into the recommended Full Commission Model. Current State and Future State Transit Model Options Model Analysis Transition Planning Leading Practices Service Plan Development Planning for Change Once an integrated transit governance model was identified and recommended for Niagara, the final phase of this project involved outlining implementation activities* needed to move existing transit services and their supporting resources into this integrated model. In order to ensure a thorough and feasible transition from the current to future state, a five-phase transition plan was developed that identified the key milestones and the expected timelines for their completion. The transition to this integrated system, from preliminary approval all the way through to the new organization taking charge of transit services in Niagara, is expected to take approximately two years, with additional time then required before new services can be launched. In fact, a principle in the development of the Transition Plan was to limit service enhancement and growth activities in the first years of operation. A key learning from the jurisdictional scan was to avoid taking on too many new initiatives early in the life of the Commission and focus rather on integrating existing services and stabilizing operations over a few years before beginning major projects. In the following slides, please find a high-level summary of the Transition Plan, which provides an overview of key steps and timelines for AGENDA ITEM3.2 eachPage 223 of302 phase of implementation. This section also ends with a summary of forecasted costs of the transition to the integrated transit system. *It should be noted that while this Transition Plan recommends activities that need to be carried out, along with their sequencing, the group tasked with leading the transition will need to validate and refine this, and build-out further levels of detail to guide day-to-day activities. 109 Office oftheChief Administrative Officer Response toNiagara Transit G... Transition Planning LNTC-C 4-2020 Implementation Phases Appendix 2 Transition activities are divided across five distinct phases of work: Integration Commission Service Enhancement Approval 1 23Setup 4Launch 5Growth Process Includes activities This phase includes work This phase of work leading up to, and associated with getting encompasses activities This begins with the including, a phased the Commission ready to related to the legal Commission officially This phase includes political approval take on responsibility for establishment of the taking on responsibility longer-term activities process that concludes transit services in the Commission as a for transit services in the that the Commission with the submission of region, including municipal service board region and key activities will undertake to recommendations to establishing policies and and concludes with the for the first 2 years of continue developing its LAM and Regional processes, filling key appointment of operation to ensure a organization and Councils to seek triple- roles, and negotiating members to the smooth transition planning for the future majority approval to and executing transfer Commission create the Commission agreements Years 1-2 of Year 3+ of AGENDA ITEM3.2 Page 224 of302 Approx. 9 Months Approx. 2 months Approx. 1 Year Operation Operation Ongoing Project and Change Management Activities 110 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Considerations for Transition PlanningAppendix 2 Considerations for future-state planning encompassed six primary categories of activities within the phases of work: Operations Governance Key factors to consider for operations Key factors for the initial planning include the include policy development, service development of a governance structure to dispatch and control, review of manage transition, appointing Commission technology solutions and the members, and providing oversight for major maintenance program. integration activities. Legal Service Delivery Key factors for legal planning include determining Key factors for service delivery the appropriate legislative planning include determining transfer requirements for the new routes, fare structures, and standards integrated agency, development. development charges, asset transfers and contract management. AGENDA ITEM3.2 Page 225 of302 Human Resources Financial Key factors for human resources planning Key factors for financial planning include the include the development of an HR plan, development of a tax levy plan, insurance, organizational structure design, and union development charges and budgetary 111 negotiations. planning. Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Transition Plan Implementation Activities AGENDA ITEM3.2 Page 226 of302 112 Office oftheChief Administrative Officer Response toNiagara Transit G... Phase 1: Integration Approval Process LNTC-C 4-2020 Integration Approval Process OverviewAppendix 2 Seek In-Principle Endorsement 1 Recommendations will be presented to the LNTC and PW Committees, (Approx. 9 months) and to the LAMs to seek feedback and a preliminary in-principle endorsement on the creation of the transit Commission Staff Report and Public Engagement This phase of work includes Conduct public consultations and incorporate feedback received on the all activities leading up to, 2 transit governance recommendations and financial model into a staff and including, a two-phased report to be submitted to support the decision-making process to political approval process establish the Commission that includes receiving an in- principle endorsement on Municipal Transfer ŐƌĞĞŵĞŶƚƐ recommendations, followed Draft agreements with LAMs who currently operate transit to outline by the refinement of 3 the steps for transferring assets to the Commission from existing recommendations and their systems, and puts parameters around what transit-related decisions submission to LAM and can be made by the LAMs so as not to impact transit integration or Regional Councils to seek unfairly impact the residents triple-majority approval to AGENDA ITEM3.2 Page 227 of302 create the Commission Vote to Move Forward with Commission Model 4 The first step in the legal process involves receiving a triple-majority vote to create a by-law that grants power for transit services to the Region so that the Region may then establish the Commission 113 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Integration Approval Process TimelinesAppendix 2 This phase of work begins with the initial LNTC presentation and ends with the triple-majority vote to move forward with the Commission. Approximately 9 Months Seek In-Principle Endorsement LNTC Presentation Staff Report and Public Engagement Municipal Transfer Agreements Triple-Majority Reached Vote on Commission Model AGENDA ITEM3.2 Page 228 of302 Oct Nov Dec Jan Feb MarApr May Jun 2020 2021 114 Office oftheChief Administrative Officer Response toNiagara Transit G... Phase 2: Commission Establishment LNTC-C 4-2020 Commission Establishment OverviewAppendix 2 (Approx. 2 months) Legal Establishment of Commission 1 Pass a Regional by-law to create a Municipal Service Board (the Commission) and delegate control and management of transit services to this board This phase of work encompasses activities related to the legal establishment of the Setup Governance Infrastructure Commission as a 2 Establish policies, procedures, committees, and reporting mechanisms municipal service board for the Commission and formalize their oversight responsibilities during and concludes with the the transition period appointment of members to the Commission Appointment of Commission Members AGENDA ITEM3.2 Page 229 of302 3 Appoint individuals who will compose the members of the Commission based on agreed-upon Commission governance structure 115 Office oftheChief Administrative Officer Response toNiagara Transit G... Phase 2: Commission Establishment LNTC-C 4-2020 Commission Establishment Timelines Appendix 2 This phase of work begins with the creation of a municipal service board (the Commission) and ends with the appointment of Commission members. Approximately 2 months Legal Establishment of Commission Commission Established Setup Governance Infrastructure Commissioners Take on Oversight of Integration Appointment of Commission Members AGENDA ITEM3.2 Page 230 of302 Month July Aug 2021 116 Office oftheChief Administrative Officer Response toNiagara Transit G... Phase 3: Commission Setup LNTC-C 4-2020 Commission Setup Overview Appendix 2 Appoint Leadership Team 1 Identify the Commission’s GM and SLT and confirm the structure of the organization to begin (Approx. 1 Year) filling roles Develop Human Resources Plan and Negotiate with Bargaining Units 2 Develop a Human Resources and Change Management plan to guide all staff-related activities to setup Commission and begin negotiations with bargaining units Fill Functional Roles This phase includes work 3 associated with getting the Develop job descriptions/postings for functional positions and fill roles Commission ready to take on Establish Organizational Infrastructure and Policies responsibility for transit 4 Develop key business infrastructure, policies, processes, and more required for day-one of services in the region, service operations including establishing policies Inaugural Strategic and Branding Plans and processes, filling key 5 Undertake strategic and branding plan exercises to guide the work of all staff and leadership roles, negotiating and and begin building a unified image for transit in the region executing transfer Formalize Working Relationships with Partners agreements 6 Begin development of formal working relationships with key partner organizations, including LAMs and Regional departments Development of Transfer Agreements Formalize agreements between the Commission and existing transit entities detailing howAGENDA ITEM3.2 Page 231 of302 7 assets, liabilities, and contracts will be transferred over to the Commission Transfer Assets, Contracts, and Personnel to Commission 8 Transfer of transit related assets and liabilities, and personnel, to the Commission from LAMs and Region to officially take over responsibility for transit in Niagara 117 Office oftheChief Administrative Officer Response toNiagara Transit G... Phase 3: Commission Setup LNTC-C 4-2020 Commission Setup Timelines Appendix 2 This work begins with the appointment of a senior leadership team, involves all work associated with getting the Commission setup to take on responsibility for transit services in the region, and ends with the transferring of assets and resources to the Commission. Approximately 1 Year Appoint Leadership Team Develop Human Resources Plan and Negotiate with Bargaining Units Fill Functional Roles Establish Organizational Infrastructure and Policies Inaugural Strategic and Branding Plans Formalize Working Relationships with Partners Development of Transfer Agreements Commission Takes on Transit Responsibility AGENDA ITEM3.2 Page 232 of302 Transfer Assets, Contracts, and Personnel to Commission Month Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2021 118 Office oftheChief Administrative Officer Response toNiagara Transit G... Phase 4: Service Launch LNTC-C 4-2020 Service Launch Overview Appendix 2 Launch of Transit Services (Years 1 and 2 of 1 The responsibility for transit services across Niagara is transferred to Operation) the new Commission, with service levels being maintained while the existing systems cease operations This begins with the Commission officially Performance Monitoring and Improvement taking on responsibility As the Commission takes on responsibility for transit services, for transit services in the 2 performance monitoring is undertaken to ensure no interruption to region and key activities service occurs. As the Commission stabilizes and the status quo starts for the first years of to form, public engagement activities along with minor process and operation to ensure a service enhancements are identified and implemented smooth transition AGENDA ITEM3.2 Page 233 of302 Complete Asset Rebranding 3 Remaining assets will be modified to align with the Commission’s brand 119 Office oftheChief Administrative Officer Response toNiagara Transit G... Phase 4: Service Launch LNTC-C 4-2020 Service Launch Timelines Appendix 2 This begins with the Commission officially taking on responsibility for transit services in the region and key activities for the first 2 years of operation to ensure a smooth transition. Years 1 and 2 of Operation Launch of Transit Services Performance Monitoring and Improvement Complete Asset Rebranding AGENDA ITEM3.2 Page 234 of302 Q3 2022 Q4 2022Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 2022 2023 2024 120 Office oftheChief Administrative Officer Response toNiagara Transit G... Phase 5: Enhancement and Growth LNTC-C 4-2020 Enhancement and Growth OverviewAppendix 2 Ongoing Monitoring, Reporting, and Enhancement (Year 3+ of 1 The Commission will continue to monitor and report on its successes Operations) and challenges, while continually building ties with the Region and LAMs to ensure alignment of priorities This phase includes longer-term activities that the Commission will Transit Service Planning undertake to continue 2 A long-term Transit Service Plan will be developed to guide the developing its improvement and expansion of transit services in the Niagara Region organization and planning for the future Long-Term Financial Planning To support the expansion of services, the Commission will developAGENDA ITEM3.2 a Page 235 of302 3 long-term financial plan to maintain and increase funding to support priorities 121 Office oftheChief Administrative Officer Response toNiagara Transit G... Phase 5: Enhancement and Growth LNTC-C 4-2020 Enhancement and Growth TimelinesAppendix 2 This phase includes longer-term activities that the Commission will undertake to continue developing its organization and planning for the future. Year 3+ of Operations Ongoing Monitoring, Reporting, and Enhancement Transit Service Planning Long-Term Financial Planning AGENDA ITEM3.2 Page 236 of302 Q2 2024 Q3 2024 2025 and Onwards 2024 122 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Transition Plan Transition Costs AGENDA ITEM3.2 Page 237 of302 123 Office oftheChief Administrative Officer Response toNiagara Transit G... Transition Planning LNTC-C 4-2020 Funding the Transition Appendix 2 Critical to the successful transition to the integrated transit model, and of particular relevance given the potentially long-term financial implications of COVID-19, is a clear understanding of the one-time costs of implementation and clarity on the sources of this funding. Although not developed as part of this study, Regional staff are currently developing an initial funding model for the start-up budget of the Commission, that will strive for a fair and equitable funding baseline commensurate with the existing baseline services within each municipality. Following the initial start-up funding, subsequent transit investments are assumed to be funded through a single regional tax levy. Upon its completion, this funding model will be provided alongside the recommendations contained in this report and all subsequent staff reports, so that decision makers have a comprehensive view of all considerations and implications of integrating transit in Niagara. The following slides provide an overview of forecasted operating and capital transition costs. Note: The provincial government recognizes that municipalities have sustained significant financial pressures as a result of the global pandemic, and in July 2020, announced it has secured one-time emergency assistance for Ontario’s municipalities, the Safe Restart Agreement. Niagara Region has been able to secure funding through Phase 1, which is targeted AGENDA ITEM3.2 Page 238 of302 at relieving immediate transit pressures, with potential for securing ongoing funding support in a second phase. 124 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Cost Overview Appendix 2 The setup of the Commission includes one-time transition costs, such as branding, communications, stakeholder engagement, and program management. The types of costs associated with the transition and operation of the Commission are summarized by phase. Integration Commission Commission Enhancement Approval Service Launch Establishment Setup Growth Process Transition Team & ط ط ط Planning One time start up ط ط ط costs Operational costs ط ط before delivery Steady State of ط ط Operations* The cost estimates provided are preliminary estimates provided for planning consideration. Given the complexity and unknown impact of the global pandemic, there could be fluctuations in these costs. The estimated total cost of transition is between $3,845,000 - $4,955,000. This includes: Capital costs are between $1,670,000 to $2,225,000; AGENDA ITEM3.2 Page 239 of302 o Capital costs specific to the fare collection system are between $5,000,000 and $7,500,000, but will be borne regardless of integration Operational costs are between $2,175,000 - $2,730,000. *Note: Steady state operational costs have not been outlined within the transition plan as they will be determined by the Commission 125 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Estimated Cost Summary: Capital Appendix 2 Transition costs include those one-time capital costs incurred to establish the Commission and its regular operations. A summary is provided below: Integration Commission Estimated Item Commission Service Enhancement Approval Establish- Total Item Category Setup Launch & Growth Process ment Category Cost Transit System $400,000 to $600,000 to n/a n/a $200,000 n/a Branding $800,000 $1,000,000 Facility and $50,000 to $50,000 to Office n/a n/a n/a n/a $100,000 $100,000 Improvements Transit Service n/a n/a $700,000 n/a n/a $700,000 Design Technology & $275,000 to $45,000 to $320,000 to n/a n/a n/a Equipment $325,000 $100,000 $425,000 Estimated $275,000 to $1,195,000 to $1,670,000 to Total Phase $0 $200,000 $0 $325,000 $1,700,000 $2,225,000 Cost AGENDA ITEM3.2 Page 240 of302 126 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Fare Collection System Appendix 2 The Inter-Municipal Transit Working Group (IMTWG) has requested funding for the fare collection system through ICIP, the procurement of this system is proceeding in parallel and required for the success of the new governance structure. Integration Commission Estimated Item Commission Service Enhancement Approval Establish- Total Item Category Setup Launch & Growth Process ment Category Cost Fare Collection $5,000,000 to $5,000,000 to n/a n/a n/a n/a System $7,500,000 $7,500,000 Estimated $5,000,000 to $5,000,000 to Total Phase $0 $0 $0 $0 $7,500,000 $7,500,000 Cost AGENDA ITEM3.2 Page 241 of302 127 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Estimated Cost Summary: OperatingAppendix 2 Operational costs related to the transition have been summarized in the relevant categories below: Integration Commission Estimated Item Commission Service Enhancement Approval Establish- Total Item Category Setup Launch & Growth Process ment Category Cost Transit $250,000 - $40,000 - $650,000 - $940,000 - Integration n/a n/a $370,000 $105,000 $900,000 $1,375,000 Team $80,000 - $60,000 - $140,000 - Legal Fees n/a n/a n/a $120,000 $100,000 $220,000 Public $10,000 $10,000 $15,000 $150,000 n/a $185,000 Consultation Human $510,000 - $910,000 - n/a n/a $200,000 $200,000 Resources $550,000 $950,000 Estimated $340,000 - $110,000 - $1,175,000 to $2,175,000 - Total Phase $350,000 $200,000 Cost $500,000 $215,000 $1,465,000 $2,730,000 AGENDA ITEM3.2 Page 242 of302 128 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Transition Costs: Year over Year Appendix 2 The transition costs for both capital and operating budgets have been provided for the period 2021 - 2024: Integration Commission Enhance- Estimated Commission Service Estimated Year Cost Approval Establish- ment & Total Setup Launch Total Cost Process ment Growth Annual Cost $340,000 - $110,000 - $195,000 - $645,000 - Operating n/a n/a $500,000 $215,000 $245,000 $960,000 $1,185,000 - 2021 $1,585,000 $275,000 - $265,000 - $540,000 - Capital n/a n/a n/a $325,000 $300,000 $625,000 $980,000 - $1,070,000 - Operating n/a n/a $90,000 n/a $1,220,000 $1,310,000 $2,150,000 - 2022 $2,860,000 $930,000 - $1,080,000 - Capital n/a n/a $150,000 n/a $1,400,000 $1,550,000 Operating n/a n/a n/a $260,000 $200,000 $460,000 2023/ $510,000 24 Capital n/a n/a n/a $50,000 n/a $50,000 AGENDA ITEM3.2 Page 243 of302 Estimated Total $340,000 - $385,000 - $2,370,000 - $3,845,000 - $550,000 $200,000 Phase Cost $500,000 $540,000 $3,165,000 $4,955,000 129 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 Niagara Transit Governance Study In Summary AGENDA ITEM3.2 Page 244 of302 130 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Report Wrap-Up Appendix 2 Key Research into the benefits and feasibility of an integrated transit system in Niagara Region has been considered for several years, and has culminated in Highlights this Niagara Transit Governance Study. A review of the current state of transit in Niagara and a forecast of demand for transit services over the coming 10 years has shown that there is a significant opportunity to increase transit usage in Niagara. To determine how Niagara could best accommodate this future growth, three potential transit governance model options were developed,eachone reflecting a different approach to integrating transit in the region. Each potential model was assessed against key evaluation criteria, and ultimately, an independent Full Commission Model was recommended as it provides the greatest opportunity for success by bringing the right degree of autonomy and flexibility to innovate, drive growth, and meet the diverse and changing needs of Niagara. In order to create this new Commission, a five-phased Transition Plan has been AGENDA ITEM3.2 Page 245 of302 developed to guide implementation activities. It is expected that this Commission will be operational by the end of 2022, and there is opportunity to take advantage of government funding to support the cost of transition to the Commission model. 131 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 There is a Significant Opportunity to Appendix 2 Increase Transit Usage in Niagara Region By way of investments and harmonization of services and fares, transit under an amalgamated system is anticipated to become a more frequently used means of transportation in the region, with ridership outpacing the status quo. Transit ridership forecasts indicate a latent demand for inter-municipal transit travel, which can be How? capitalized on through improved inter-municipal and connections to GO Transit rail services. By investing in targeted projects and services to grow the transit mode share throughout the region, transit ridership region-wide could grow by over 80% by 2031 under an amalgamated transit service. It is anticipated that Niagara Region, like its peer jurisdictions will experience a transit mode share growth of 30% to 130% within ten years of amalgamation. By 2031, operating costs in the high growth scenario will increase by approximately 55% over the status quo. Capital investment of between $70M and $155M between 2021 and 2031 may be required to address service and demand growth. Provincial Gas Tax revenue could result in up to $50M - $80M in revenue over the same ten years. Over $ 70M-worth of near- and mid-term projects have committed funds from the federal and provincial governments through ICIP. An integrated single fare is critical to driving ridership growth and could be achieved in a way that is revenue-neutral if implemented progressively as ridership grows. While an integrated payment AGENDA ITEM3.2 Page 246 of302 system and harmonized fare structure will be required at the start of service, a single fare region- wide can be implemented over time. The COVID-19 pandemic presents an opportunity to look beyond the status quo, bring the transit systems in Niagara together, and build a new and improved service that takes capitalizes on current funding programs to see this forecasted ridership growth become a reality. 132 Office oftheChief Administrative Officer Response toNiagara Transit G... In Summary LNTC-C 4-2020 A Full Commission Model is RecommendedAppendix 2 Analysis shows that a Full Commission model would be most effective: A. B. C. Limited Full Regional Commission Commission Division o Transit Service is governed by o Distinct entity independent o Division within Niagara a regional commission with from Regional Council Region’s Public Works representation from local o Governed by a board of department elected officials. appointed members, o Regional Council remains o Commission reports to equitably selected by the governing body of the Regional Council Regional Council transit division o Strategic decision making for o Responsible for all transit o Strategic decision making for Transit Service is directed by planning and delivery Transit Service is directed by Regional Council o Budget allotment approved Regional Council o Relies on corporate services by Regional Council o Integrated into the Regional but retains transit-related o Makes limited use of administration similar to services in-house Regional services except other service delivery where service sharing does departments not impede agility or AGENDA ITEM3.2 Page 247 of302 independence The Full Commission model brings the right degree of autonomy and flexibility to innovate, drive growth, and meet the diverse and changing needs of the region 133 Office oftheChief Administrative Officer Response toNiagara Transit G... In Summary LNTC-C 4-2020 Follow a Sequenced Transition Plan Appendix 2 Creating a new entity is a complex and challenging undertaking that will require the coordination and support of many different stakeholders and will suffer should it lack the required resources. Integration Commission Service Enhancement Approval 1 23Setup 4Launch 5Growth Process This phase includes work Includes activities This phase of work associated with getting leading up to, and encompasses activities with getting the This begins with the including, a phased related to the legal Commission ready to Commission officially This phase includes political approval establishment of the take on responsibility for taking on responsibility longer-term activities process that concludes Commission as a transit services in the for transit services in the that the Commission with the submission of municipal service board region, including region and key activities will undertake to recommendations to and concludes with the establishing policies and for the first 2 years of continue developing its LAM and Regional appointment of processes, filling key operation to ensure a organization and Councils to seek triple- members to the roles, and negotiating smooth transition planning for the future majority approval to Commission and initiation of transfer create the Commission agreements Years 1-2 of Year 3+ of Approx. 9 Months Approx. 2 months Approx. 1 Year AGENDA ITEM3.2 Page 248 of302 Operation Operation The creation of a Regional Transit Commission will be transformative for Niagara, and its success is dependent on maintaining public and political support while transitioning services from the LAMs to create an effective regional network. 134 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Guiding Principles for Transit Appendix 2 To achieve success, the new entity will need to make regionally focused decisions, aligned to the guiding principles, in order to ensure that growth in ridership, efficiency of operations, and improved service delivery are realised. Customer Unconventional Integrated Driven Solutions Economically Fair Responsible AGENDA ITEM3.2 Page 249 of302 Adherence to guiding principles will be a fundamental factor in ensuring the success of the integration and the future of transit in Niagara for the benefit of all. 135 Office oftheChief Administrative Officer Response toNiagara Transit G... LNTC-C 4-2020 Appendix 2 AGENDA ITEM3.2 Page 250 of302 LNTC-CAGENDA 4-2020 ITEM 3.2 Appendix 3 Office of the Chief Administrative Officer Response to Niagara Transit G... Page 251 of 302 LNTC-CAGENDA 4-2020 ITEM 3.2 Appendix 3 Office of the Chief Administrative Officer Response to Niagara Transit G... Page 252 of 302 LNTC-CAGENDA 4-2020 ITEM 3.2 Appendix 3 Office of the Chief Administrative Officer Response to Niagara Transit G... Page 253 of 302 LNTC-CAGENDA 4-2020 ITEM 3.2 Appendix 3 Office of the Chief Administrative Officer Response to Niagara Transit G... Page 254 of 302 LNTC-CAGENDA 4-2020 ITEM 3.2 Appendix 3 Office of the Chief Administrative Officer Response to Niagara Transit G... Page 255 of 302 LNTC-CAGENDA 4-2020 ITEM 3.2 Appendix 3 Office of the Chief Administrative Officer Response to Niagara Transit G... 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Page 260 of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ffice of the Chief Administrative Officer Response to Niagara Transit G... Page 261 of 302 AGENDA ITEM 3.2 Administration Office of the Regional Clerk 1815 Sir Isaac Brock Way, PO Box 1042, Thorold, ON L2V 4T7 Telephone: 905-685-4225 Toll-free: 1-800-263-7215 Fax: 905-687-4977 www.niagararegion.ca December 21, 2020 CL 23-2020, December 17, 2020 PWC 11-2020, December 8, 2020 PWC-C 50-2020, December 8, 2020 Local Area Municipalities SENT ELECTRONICALLY RE: Recommendations for Consideration from the Linking Niagara Transit Committee held November 25, 2020 Regional Council, at its meeting of December 17, 2020, approved the following recommendation of its Public Works Committee: That Correspondence Item PWC-C 50-2020, being a memorandum from A.-M. Norio, Regional Clerk, dated December 8, 2020, respecting Recommendations for Consideration from the Linking Niagara Transit Committee meeting held November 25, 2020, BE RECEIVED and the following recommendations BE APPROVED: 1. That Correspondence Item LNTC-C 6-2020, being a memorandum from S. Fraser, Transportation Lead, GO Implementation Office, dated November 25, 2020, respecting Councillor Information Request: Niagara Transit Governance Study – Local Area Municipality Engagement, BE RECEIVED and BE CIRCULATED to the Local Area Municipalities; and 2. That staff BE DIRECTED to reach out to the local area municipalities to arrange to present to their Council when the Niagara Transit Governance Study is being considered. 3. That the Linking Niagara Transit Committee BE DIRECTED to review alternative funding options. A copy of Correspondence Item PWC-C 50-2020 and Report LNTC-C 6-2020 is attached for your reference. Yours truly, Ann-Marie Norio Regional Clerk :me CLK-C 2020-221 Office of the Chief Administrative Officer Response to Niagara Transit G... Page 262 of 302 AGENDA ITEM 3.2 Administration 1815 Sir Isaac Brock Way, Thorold, ON L2V 4T7 905-980-6000 Toll-free: 1-800-263-7215 MEMORANDUM PWC-C 50-2020 Subject: Recommendation for Consideration from the Linking Niagara Transit Committee meeting held November 25, 2020 Date: December 8, 2020 To: Public Works Committee From: Ann-Marie Norio, Regional Clerk At its meeting held on November 25, 2020, the Linking Niagara Transit Committee passed the following motion for consideration by the Public Works Committee: Minute Item 6.1 LNTC-C 6-2020 Councillor Information Request: Niagara Transit Governance Study – Local Area Municipality Engagement That Correspondence Item LNTC-C 6-2020, being a memorandum from S. Fraser, Transportation Lead, GO Implementation Office, dated November 25, 2020, respecting Councillor Information Request: Niagara Transit Governance Study – Local Area Municipality Engagement, BE RECEIVED and BE CIRCULATED to the Local Area Municipalities; and That staff BE DIRECTED to reach out to the local area municipalities to arrange to present to their Council when the Niagara Transit Governance Study is being considered. Respectfully submitted and signed by ______Ann-Marie Norio Regional Clerk Office of the Chief Administrative Officer Response to Niagara Transit G... Page 263 of 302 PWC-C 50-2020 -AGENDA Appendix 1 ITEM 3.2 GO Implementation Office 1815 Sir Isaac Brock Way, Thorold, ON L2V 4T7 905-980-6000 Toll-free: 1-800-263-7215 MEMORANDUM LNTC-C 6-2020 Subject: Councillor Information Request: Niagara Transit Governance Study – Local Area Municipality Engagement Date: November 25, 2020 To: Linking Niagara Transit Committee From: Scott Fraser, P. Eng., Transportation Lead - GO Implementation Office Introduction On October 21, 2020, the Linking Niagara Transit Committee (LNTC) considered LNTC- C 4-2020 - Niagara Transit Governance Study which presented the preferred governance and financial models for the consolidation of transit in Niagara. LNTC adopted amended recommendations providing support for a Full Commission governance model and recommending further engagement with each of the twelve (12) local area municipalities to seek their feedback on and support for the proposed models. The deadline for receiving this feedback was advanced to February 28, 2021. In the course of this consideration, Committee provided comment and feedback on the governance and financial models, including a focus on the impacts of the proposed single regional tax levy, the Board of Directors and appointment process, and on social equity as a key driver for transit. The purpose of this memorandum is to outline how this feedback has been reflected and addressed, in advance of engagement with the local area municipalities. The engagement process to be undertaken with each local area municipality will be tailored to suit preferred timeframes, areas of focus, and level of Regional staff participation. LNTC-C 8-2020 acts as a companion to this report, and provides the draft presentation planned for the Project Team’s use at LAM Councils, where or if requested by the local area municipality. Office of the Chief Administrative Officer Response to Niagara Transit G... Page 264 of 302 PWC-C 50-2020 -AGENDA Appendix 1 ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 2 ______ Financial Strategy The financial strategy proposed to implement the Full Commission model has been developed based on the following key principles: • Consensus – to arrive at a consensus model which balances benefits and obligations for each party • Equity – enabling future transit to grow equitably in each municipality • Phased implementation – enable budgets to accommodate increases or decreases in a manageable way over multiple years • Asset transfer – ensuring existing investments in capital assets are respected, but not paid for twice by the same taxpayer (see Cummings Principle below) • Service Enhancements – reinvesting to ensure adequate resourcing is available long term to enable the transit system to grow Based on these principles, the financial strategy outlined in LNTC-C 4-2020 recommends the transfer of all existing and incremental transit spending to the new Commission, funded through a single regional tax levy. This strategy includes: • a two (2) year transition period (2021, 2022) during which funding derived from the levy is applied to the one-time costs associated with establishing the Commission; • a transfer implementation period of up to five (5) years (2023-2027), varying by municipality, where existing municipal transit costs are transferred to the Regional levy and offset by equivalent budgetary restrictions at the local level; and • the expansion of transit services, running concurrent with the transfer of existing service, however finishing in 2032. This recommendation was developed in consultation with local area Treasurers and CAOs after consideration of a variety of strategies ranging between municipal transit grants and a full regional upload to a single transit levy. There was no option to fully consolidate transit into one system without a redistribution impact to municipalities. Taxpayer Redistribution from Municipal Levy to Regional Levy The adoption of a single regional tax levy would transition current transit funding from municipalities to the Region, based on the regional property value assessment. As noted during discussions at LNTC, the net impact of this transition is that a proportion of Office of the Chief Administrative Officer Response to Niagara Transit G... Page 265 of 302 PWC-C 50-2020 -AGENDA Appendix 1 ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 3 ______ total regional transit expenditures would be redistributed to residents in municipalities with currently less robust transit systems and historically lower transit investment levels. This realignment is consistent with the consolidation of transit in Niagara, as the move to an integrated transit system is anticipated to bring a series of proportional benefits to residents in these municipalities, including enhanced and expanded transit service, the ability to leverage capital investments that have been made in and by other municipalities, and a reduction in future financing costs. • Service Enhancement - The proposed financial strategy provides for the allocation of $2.7M in 2023 for the expansion of transit services, through the reallocation of levy funding originally allocated to the one-time transition costs in 2021-2022. This investment will be focused in areas who currently have less robust transit services, to enhance the connectivity of these areas to the other existing transit systems as quickly as possible, enhancing the transit equity in those municipalities. These service enhancements will include the expansion of NRT On-Demand, the provision of new conventional NRT connections, and increased frequency on existing routes. These enhancements will facilitate greater connectivity to employment, medical, social and consumer services across Niagara, and link residents to the GTHA through GO train / bus services. Where the larger systems are robust enough to remain status quo in service changes for a short period of time during the transition phase, smaller municipalities with smaller systems will see the first of the service improvements with a deliberate aim to bring all 12 municipalities to a more equitable transit service as quickly as possible. This approach of front-loading smaller system service enhancements as the levy upload occurs was used very effectively in both Waterloo Region and Durham Region where smaller municipalities received improved service faster, through the early days of the consolidation, while the larger municipalities saw their levy impact decrease. Additional funding for further service enhancements will be requested by the Commission and subject to the Regional council budget process, as discussed further below and established once the new commission approves its inaugural multi-year service plan. • Leveraging of Prior Capital Investments – municipalities with less robust transit services will benefit from consolidation through the ability to access and Office of the Chief Administrative Officer Response to Niagara Transit G... Page 266 of 302 PWC-C 50-2020 -AGENDA Appendix 1 ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 4 ______ leverage the capital investments that have been previously made by municipalities with more robust services. A total of $127.5M in capital assets ($64.3M net of depreciation) are anticipated to be transferred to the Commission, as summarized in Figure 1 below. These assets represent a combination of buses, service trucks, land, facilities, and other equipment and technology. Figure 1 - Transit Capital Assets across Niagara Region Leveraging previous capital investments will allow the Commission to deliver increased service into new areas of the region; which would have been costly for smaller municipalities to undertake within their municipal budgets. For example, existing garages can be utilized for vehicles purchased to provide increased or new conventional services, avoiding the need for the municipality to invest in new facilities independently. • Net Operating Costs – The current net operating cost for all transit across Niagara is $43.4M which includes $32.5M in service delivery, $8.6M in Facility and Administration costs and $2.3M in debt financing. The move to a single Regional levy redistributes the existing $8.6M in facility and administrative costs to all new owners of the previous capital investments incurred by St. Catharines, Niagara Falls, and Welland, while the existing local transit net operating cost in St. Catharines and Niagara Falls reflect a reduction to the residents within those Office of the Chief Administrative Officer Response to Niagara Transit G... Page 267 of 302 PWC-C 50-2020 -AGENDA Appendix 1 ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 5 ______ municipalities through the upload to the Commission. It should be noted, that of the existing $14M in Niagara Region inter-municipal services connecting all municipalities to these urban centres delivered under the current Regional levy funding scenario (i.e. 2020 budget), the municipalities of St. Catharines and Niagara Falls currently contribute 45% of the Regional levy contributions. • Intergovernmental Funding – The Provincial Gas Tax (PGT) is currently utilized in some municipalities for operations (approx. $1.5M annually). Under a consolidated Full Commission, these funds can be utilized for capital as intended by the program and therefore reduce future financing costs. Based on the current combined fleet size, purchase price, 10-year replacement cycle and the full annual PGT allocation for all municipalities together, it is estimated that 65% of total bus replacements can be funded through Niagara’s combined PGT allocation. The $1.5M which is currently utilized for operations reduces this funding to 50%; thereby increasing debt financing. However, a consolidated PGT fund would maximize PGT investments, lower debt financing and increase fleet replacement and required capital levy investments. Moving forward with consolidation now will also present the opportunity to seek provincial Safe Restart Program funding to offset anticipated transition costs. These costs may otherwise require funding through the Regional levy should consolidation be pursued at a later time. While not directly included as part of the proposed Financial Strategy, there remains a number of future opportunities to further mitigate the impacts of transition to the single regional transit levy. These contributing factors include both future population and assessment growth in the region, the introduction of transit into the Region’s development charges, enhanced business development, and future intergovernmental transit funding programs. Each of these opportunities will continued to be explored in the future for the potential to further offset levy impacts and should be kept in mind in relation to the future projections laid out in the Financial Strategy. Office of the Chief Administrative Officer Response to Niagara Transit G... Page 268 of 302 PWC-C 50-2020 -AGENDA Appendix 1 ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 6 ______ Figure 2 - Future Mitigation Strategies Future Investment and Growth Opportunities The NTGS outlines an aspirational growth target of +80% in transit ridership in Niagara by 2031. This growth would be achieved primarily through unlocking latent demand for inter-municipal trips, and is consistent with growth seen in the usage of transit in peer jurisdictions in their post-consolidation period. Relating the potential growth of transit ridership to the financial strategy, there are two considerations: • Future Investment Levels – to achieve the aspirational target outlined in the NTGS, additional investment beyond that envisioned by the financial strategy will be required. The NTGS identifies that achieving the high-growth target with an 88% increase in ridership will require an additional $27M in net operating expenditures. The estimated costs of consolidation contained within this report reflect inflationary growth only. Based on the 2020 Regional Levy, an Office of the Chief Administrative Officer Response to Niagara Transit G... Page 269 of 302 PWC-C 50-2020 -AGENDA Appendix 1 ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 7 ______ aspirational growth strategy would require an incremental separate transit levy of 7.0%. In addition, an incremental capital investment of $70M-$155M may be required to achieve this growth, of which approximately $40M is currently funded through PTIF and ICIP programs. These investments are in addition to regular lifecycle replacements of existing assets. The financial strategy includes an additional $2.7M in service expansion funding previous discussed, which is outside the aspirational growth strategy and is intended for enhancements in those municipalities with less robust current service to improve connectivity to urban centres and amenities. Longer-term service enhancements will be determined by the Commission’s transit service strategic plans, and subject to the allocation of funding through the Regional budget process. • COVID-19 – the aspirational +80% target was developed based on ridership levels and modelling prior to the onset of the COVID-19 pandemic, which has had a direct impact on transit ridership and revenues. While these impacts have been significant in the short-term, the long-term impacts to transit remain unclear. Trends towards greater work and study from home environments may result in lower transit utilization in the long-term, or may have limited impact post- pandemic. A Full Commission governance model will be best able to balance core transit needs while simultaneously being flexible to respond to emerging trends and service levels as circumstances require. The Cummings Principle and Asset Transfer The proposed application of the Cummings Principle to the transfer of assets to the Commission remains a key principle of the financial strategy. The premise of the Cummings Principle is to transfer assets (and related outstanding liabilities), from one municipality to another with no additional compensation, since transferring assets for additional compensation results in the taxpayer paying twice for the same public asset. Board of Directors and Appointment Process The NTGS presents a recommended Board of Directors comprised of five (5) members of Regional Council, (4) skills-based members of the public, and the Commission’s General Manager acting in an ex-Officio capacity. This structure was recommended to Office of the Chief Administrative Officer Response to Niagara Transit G... Page 270 of 302 PWC-C 50-2020 -AGENDA Appendix 1 ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 8 ______ achieve both stewardship over resources and accountability to the residents of Niagara via elected officials, supplemented with additional skills or proficiencies necessary through those with experience in industry or more broadly. Discussion at LNTC raised the question of the appointment of elected officials other than those already members of Regional Council (i.e. other local councillors). The process for appointment of members to the Board of Directors will be determined as part of the by-law that establishes the Commission as a legal entity, anticipated to be brought forward in parallel with the future triple-majority approval report. Through that process, Regional Council will have the opportunity to establish the criteria by which members can be selected. It is presumed that a nominating committee of Regional Council would then select members on the basis of the established criteria. The forthcoming engagement with local area municipalities presents an opportunity to solicit further feedback regarding the proposed member selection process and Board Composition. Social Equity The guiding principles established for the NTGS determined fairness as a key objective of the consolidation of transit, including providing a basic level of services that can be accessed by as many Niagara residents as possible. There is currently a significant disparity in the availability and frequency of transit service across the region between smaller and larger municipalities. Across the region, there are numerous residents who rely on transit as their primary mode of transportation. As such, transit represents social equity access to employment opportunities, medical services, educational institutions, or social activities. The consolidation of transit is anticipated to foster a greater level of access to transit services for those residents currently under- or unserved by transit. Under the proposed financial strategy, this greater access in smaller municipalities will be achieved through the expansion of services proportional with increased investment levels and the greater integration with the services currently in place in the larger municipalities. Social equity is achieved through transit equity and access. The aforementioned financial strategy was designed to enable smaller municipalities to enhance their transit service levels and connectivity as quickly as possible as the levy redistribution occurs over time. This means front-loading the benefits of enhanced service and faster upload of the local levy Office of the Chief Administrative Officer Response to Niagara Transit G... Page 271 of 302 PWC-C 50-2020 -AGENDA Appendix 1 ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 9 ______ to regional as soon as possible, so as to increase their levels of social and transit equity for their residents. LAM Engagement Timeframes and Next Steps Subject to the adoption of the minutes of LNTC by Regional Council on November 20, 2020, LNTC-C 4-2020 will be distributed and engagement with the LAMs seeking feedback on and support for the proposed governance and finance models will commence. The specific timing and method of engagement with each LAM will be determined in consultation with their respective CAOs and Heads of Council, acknowledging the request from LNTC that feedback be received no later than February 28, 2021. Where requested, Regional staff (the Project Team) and the NTGS consultants will be available to support local staff as the item is considered at local Councils. LNTC-C 8-2020 provides the draft presentation planned for use, where and if requested by the local area municipality. This presentation has been provided to committee separate from this report, as it is not recommended that this presentation be directly distributed to LAMs in parallel with the distribution of the supplementary information contained in this memo (should committee opt to distribute this information). This is recommended in order to facilitate required tailoring and updating for each municipality, and avoid confusion between what is an indicative presentation and the final presentation intended for each LAM. In parallel to engagement with the LAMs, Regional staff will undertake the evaluation of impacts to Niagara Region Transit, Niagara Specialized Transit, Niagara Region Transit OnDemand, and the Regional tax levy from the proposed resolution in LNTC-C 4-2020. This assessment will be returned to LNTC for consideration in advance February 28, 2021, so that input from LNTC and Niagara Region Public Works Committee (as well as a position on the requested motion) can be received in parallel to that from the LAMs. This collective feedback will be used to further refine the proposed governance and financial models, in advance of the initiation of the triple-majority process in Q2 2021. Office of the Chief Administrative Officer Response to Niagara Transit G... Page 272 of 302 PWC-C 50-2020 -AGENDA Appendix 1 ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 10 ______ Respectfully submitted and signed by, ______Scott Fraser, P. Eng. Transportation Lead | GO Implementation Office Office of the Chief Administrative Officer Response to Niagara Transit G... Page 273 of 302 PWC-C 50-2020 -AGENDA Appendix 2 ITEM 3.2 THE REGIONAL MUNICIPALITY OF NIAGARA LINKING NIAGARA TRANSIT COMMITTEE MINUTES LNTC 4-2020 Wednesday, November 25, 2020 Council Chamber/Video Conference Regional Headquarters, Campbell West 1815 Sir Isaac Brock Way, Thorold, ON Committee Members M. Siscoe (Municipal Councillor - St. Catharines) (Committee Present in the Council Chair), M. Robinson, Director, GO Implementation Office Chamber: Committee Members Campion (Mayor - Welland), Redekop (Mayor - Fort Erie), Present via Video Sendzik (Mayor - St. Catharines), Fertich (Regional Councillor), Conference: Ip (Regional Councillor), G. Miller (Municipal Councillor - St. Catharines), L. Van Vliet (Municipal Councillor - Welland) (Committee Vice-Chair), S. Chemnitz, Chief Administrative Officer (St. Catharines), K. Todd, Chief Administrative Officer (City of Niagara Falls), S. Zorbas, Interim Chief Administrative Officer (City of Welland) Absent/Regrets: C. Dabrowski (Municipal Councillor - Niagara Falls), R. Tripp, Acting Chief Administrative Officer (Niagara Region) Staff Present in the S. Fraser, Transportation Lead, GO Implementation Office, S. Council Chamber: Guglielmi, Technology Support Analyst, A.-M. Norio, Regional Clerk, H. Talbot, Financial & Special Projects Consultant Staff Present via M. Evely, Legislative Coordinator, R. Salewytsch, Transit Video Conference: Service Planning Coordinator, L. Tracey, Project Coordinator, GO Implementation, M. Trennum, Deputy Regional Clerk, B. Zvaniga, Interim Commissioner, Public Works Others Present via M. Gilbert, Amalgamated Transit Union, E. Gillespie, Left Turn Video Conference: Right Turn, Y. Grinspun, Left Turn Right Turn, S. Kosh, Niagara College, M. Lattavo, Left Turn Right Turn, V. Malvaso, Niagara College, B. McIlhone, Optimus SBR, G. Morrison, St. Catharines Transit, T. Price, Niagara College, R. Rehan, Brock University Student Union, D. Stuart, Niagara Falls Transit. ______1. CALL TO ORDER Committee Chair M. Siscoe called the meeting to order at 2:02 p.m. Office of the Chief Administrative Officer Response to Niagara Transit G... Page 274 of 302 PWC-C 50-2020 -AGENDA Appendix 2 ITEM 3.2 Linking Niagara Transit Committee Open Session Minutes LNTC 4-2020 November 25, 2020 Page 2 2. DISCLOSURES OF PECUNIARY INTEREST There were no disclosures of pecuniary interest. 3. PRESENTATIONS There were no presentations. 4. DELEGATIONS There were no delegations. 5. ITEMS FOR CONSIDERATION 5.1 LNTC-C 7-2020 2021 Inter-Municipal Transit Working Group – Linking Niagara Transit Committee Workplan Moved by Councillor Fertich Seconded by Councillor Redekop That Correspondence Item LNTC-C 7-2020, being a memorandum from M. Robinson, Director, GO Implementation Office, dated November 25, 2020, respecting 2021 Inter-Municipal Transit Working Group – Linking Niagara Transit Committee Workplan, BE RECEIVED and the following recommendation BE APPROVED: 1. That the Linking Niagara Transit Committee ENDORSE the Inter- Municipal Transit Working Group’s 2021 workplan as outlined in Report LNTC-C 7-2020. Carried 6. CONSENT ITEMS FOR INFORMATION 6.1 LNTC-C 6-2020 Councillor Information Request: Niagara Transit Governance Study - Local Area Municipality Engagement Moved by G. Miller Seconded by L. Van Vliet That Correspondence Item LNTC-C 6-2020, being a memorandum from S. Fraser, Transportation Lead, GO Implementation Office, dated November 25, 2020, respecting Councillor Information Request: Niagara Transit Governance Study – Local Area Municipality Engagement, BE RECEIVED and BE CIRCULATED to the Local Area Municipalities. Office of the Chief Administrative Officer Response to Niagara Transit G... Page 275 of 302 PWC-C 50-2020 -AGENDA Appendix 2 ITEM 3.2 Linking Niagara Transit Committee Open Session Minutes LNTC 4-2020 November 25, 2020 Page 3 The following friendly amendment was accepted by the Committee Chair, and the mover and seconder of the motion: That Correspondence Item LNTC-C 6-2020, being a memorandum from S. Fraser, Transportation Lead, GO Implementation Office, dated November 25, 2020, respecting Councillor Information Request: Niagara Transit Governance Study – Local Area Municipality Engagement, BE RECEIVED and BE CIRCULATED to the Local Area Municipalities; and That staff BE DIRECTED to reach out to the local area municipalities to arrange to present to their Council when the Niagara Transit Governance Study is being considered. The Committee Chair called the vote on the motion, as amended, and declared it, Carried 6.2 LNTC-C 8-2020 Councillor Information Request: Niagara Transit Governance Study – Local Area Municipality Presentation Moved by Councillor Sendzik Seconded by Councillor Redekop That Correspondence Item LNTC-C 8-2020, being a memorandum from S. Fraser, Transportation Lead, GO Implementation Office, dated November 25, 2020, respecting Councillor Information Request: Niagara Transit Governance Study – Local Area Municipality Presentation, BE RECEIVED for information. Carried 6.3 LNTC 3-2020 Linking Niagara Transit Committee Minutes - October 21, 2020 Moved by Councillor G. Miller Seconded by Councillor Campion That Minutes LNTC 3-2020, being the minutes of the Linking Niagara Transit Committee meeting held on October 21, 2020, BE RECEIVED for information. Carried Office of the Chief Administrative Officer Response to Niagara Transit G... Page 276 of 302 PWC-C 50-2020 -AGENDA Appendix 2 ITEM 3.2 Linking Niagara Transit Committee Open Session Minutes LNTC 4-2020 November 25, 2020 Page 4 7. OTHER BUSINESS There were no items of other business. 8. NEXT MEETING The next meeting will be held on Wednesday, February 3, 2021 at 2:00 p.m. 9. ADJOURNMENT There being no further business, the meeting adjourned at 2:57 p.m. Mat Siscoe Mark Evely Committee Chair Legislative Coordinator Ann-Marie Norio Regional Clerk Office of the Chief Administrative Officer Response to Niagara Transit G... Page 277 of 302 AGENDA ITEM 3.2 GO Implementation Office 1815 Sir Isaac Brock Way, Thorold, ON L2V 4T7 905-980-6000 Toll-free: 1-800-263-7215 MEMORANDUM LNTC-C 6-2020 Subject: Councillor Information Request: Niagara Transit Governance Study – Local Area Municipality Engagement Date: November 25, 2020 To: Linking Niagara Transit Committee From: Scott Fraser, P. Eng., Transportation Lead - GO Implementation Office Introduction On October 21, 2020, the Linking Niagara Transit Committee (LNTC) considered LNTC- C 4-2020 - Niagara Transit Governance Study which presented the preferred governance and financial models for the consolidation of transit in Niagara. LNTC adopted amended recommendations providing support for a Full Commission governance model and recommending further engagement with each of the twelve (12) local area municipalities to seek their feedback on and support for the proposed models. The deadline for receiving this feedback was advanced to February 28, 2021. In the course of this consideration, Committee provided comment and feedback on the governance and financial models, including a focus on the impacts of the proposed single regional tax levy, the Board of Directors and appointment process, and on social equity as a key driver for transit. The purpose of this memorandum is to outline how this feedback has been reflected and addressed, in advance of engagement with the local area municipalities. The engagement process to be undertaken with each local area municipality will be tailored to suit preferred timeframes, areas of focus, and level of Regional staff participation. LNTC-C 8-2020 acts as a companion to this report, and provides the draft presentation planned for the Project Team’s use at LAM Councils, where or if requested by the local area municipality. Office of the Chief Administrative Officer Response to Niagara Transit G... Page 278 of 302 AGENDA ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 2 ______ Financial Strategy The financial strategy proposed to implement the Full Commission model has been developed based on the following key principles: • Consensus – to arrive at a consensus model which balances benefits and obligations for each party • Equity – enabling future transit to grow equitably in each municipality • Phased implementation – enable budgets to accommodate increases or decreases in a manageable way over multiple years • Asset transfer – ensuring existing investments in capital assets are respected, but not paid for twice by the same taxpayer (see Cummings Principle below) • Service Enhancements – reinvesting to ensure adequate resourcing is available long term to enable the transit system to grow Based on these principles, the financial strategy outlined in LNTC-C 4-2020 recommends the transfer of all existing and incremental transit spending to the new Commission, funded through a single regional tax levy. This strategy includes: • a two (2) year transition period (2021, 2022) during which funding derived from the levy is applied to the one-time costs associated with establishing the Commission; • a transfer implementation period of up to five (5) years (2023-2027), varying by municipality, where existing municipal transit costs are transferred to the Regional levy and offset by equivalent budgetary restrictions at the local level; and • the expansion of transit services, running concurrent with the transfer of existing service, however finishing in 2032. This recommendation was developed in consultation with local area Treasurers and CAOs after consideration of a variety of strategies ranging between municipal transit grants and a full regional upload to a single transit levy. There was no option to fully consolidate transit into one system without a redistribution impact to municipalities. Taxpayer Redistribution from Municipal Levy to Regional Levy The adoption of a single regional tax levy would transition current transit funding from municipalities to the Region, based on the regional property value assessment. As noted during discussions at LNTC, the net impact of this transition is that a proportion of Office of the Chief Administrative Officer Response to Niagara Transit G... Page 279 of 302 AGENDA ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 3 ______ total regional transit expenditures would be redistributed to residents in municipalities with currently less robust transit systems and historically lower transit investment levels. This realignment is consistent with the consolidation of transit in Niagara, as the move to an integrated transit system is anticipated to bring a series of proportional benefits to residents in these municipalities, including enhanced and expanded transit service, the ability to leverage capital investments that have been made in and by other municipalities, and a reduction in future financing costs. • Service Enhancement - The proposed financial strategy provides for the allocation of $2.7M in 2023 for the expansion of transit services, through the reallocation of levy funding originally allocated to the one-time transition costs in 2021-2022. This investment will be focused in areas who currently have less robust transit services, to enhance the connectivity of these areas to the other existing transit systems as quickly as possible, enhancing the transit equity in those municipalities. These service enhancements will include the expansion of NRT On-Demand, the provision of new conventional NRT connections, and increased frequency on existing routes. These enhancements will facilitate greater connectivity to employment, medical, social and consumer services across Niagara, and link residents to the GTHA through GO train / bus services. Where the larger systems are robust enough to remain status quo in service changes for a short period of time during the transition phase, smaller municipalities with smaller systems will see the first of the service improvements with a deliberate aim to bring all 12 municipalities to a more equitable transit service as quickly as possible. This approach of front-loading smaller system service enhancements as the levy upload occurs was used very effectively in both Waterloo Region and Durham Region where smaller municipalities received improved service faster, through the early days of the consolidation, while the larger municipalities saw their levy impact decrease. Additional funding for further service enhancements will be requested by the Commission and subject to the Regional council budget process, as discussed further below and established once the new commission approves its inaugural multi-year service plan. • Leveraging of Prior Capital Investments – municipalities with less robust transit services will benefit from consolidation through the ability to access and Office of the Chief Administrative Officer Response to Niagara Transit G... Page 280 of 302 AGENDA ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 4 ______ leverage the capital investments that have been previously made by municipalities with more robust services. A total of $127.5M in capital assets ($64.3M net of depreciation) are anticipated to be transferred to the Commission, as summarized in Figure 1 below. These assets represent a combination of buses, service trucks, land, facilities, and other equipment and technology. Figure 1 - Transit Capital Assets across Niagara Region Leveraging previous capital investments will allow the Commission to deliver increased service into new areas of the region; which would have been costly for smaller municipalities to undertake within their municipal budgets. For example, existing garages can be utilized for vehicles purchased to provide increased or new conventional services, avoiding the need for the municipality to invest in new facilities independently. • Net Operating Costs – The current net operating cost for all transit across Niagara is $43.4M which includes $32.5M in service delivery, $8.6M in Facility and Administration costs and $2.3M in debt financing. The move to a single Regional levy redistributes the existing $8.6M in facility and administrative costs to all new owners of the previous capital investments incurred by St. Catharines, Niagara Falls, and Welland, while the existing local transit net operating cost in St. Catharines and Niagara Falls reflect a reduction to the residents within those Office of the Chief Administrative Officer Response to Niagara Transit G... Page 281 of 302 AGENDA ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 5 ______ municipalities through the upload to the Commission. It should be noted, that of the existing $14M in Niagara Region inter-municipal services connecting all municipalities to these urban centres delivered under the current Regional levy funding scenario (i.e. 2020 budget), the municipalities of St. Catharines and Niagara Falls currently contribute 45% of the Regional levy contributions. • Intergovernmental Funding – The Provincial Gas Tax (PGT) is currently utilized in some municipalities for operations (approx. $1.5M annually). Under a consolidated Full Commission, these funds can be utilized for capital as intended by the program and therefore reduce future financing costs. Based on the current combined fleet size, purchase price, 10-year replacement cycle and the full annual PGT allocation for all municipalities together, it is estimated that 65% of total bus replacements can be funded through Niagara’s combined PGT allocation. The $1.5M which is currently utilized for operations reduces this funding to 50%; thereby increasing debt financing. However, a consolidated PGT fund would maximize PGT investments, lower debt financing and increase fleet replacement and required capital levy investments. Moving forward with consolidation now will also present the opportunity to seek provincial Safe Restart Program funding to offset anticipated transition costs. These costs may otherwise require funding through the Regional levy should consolidation be pursued at a later time. While not directly included as part of the proposed Financial Strategy, there remains a number of future opportunities to further mitigate the impacts of transition to the single regional transit levy. These contributing factors include both future population and assessment growth in the region, the introduction of transit into the Region’s development charges, enhanced business development, and future intergovernmental transit funding programs. Each of these opportunities will continued to be explored in the future for the potential to further offset levy impacts and should be kept in mind in relation to the future projections laid out in the Financial Strategy. Office of the Chief Administrative Officer Response to Niagara Transit G... Page 282 of 302 AGENDA ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 6 ______ Figure 2 - Future Mitigation Strategies Future Investment and Growth Opportunities The NTGS outlines an aspirational growth target of +80% in transit ridership in Niagara by 2031. This growth would be achieved primarily through unlocking latent demand for inter-municipal trips, and is consistent with growth seen in the usage of transit in peer jurisdictions in their post-consolidation period. Relating the potential growth of transit ridership to the financial strategy, there are two considerations: • Future Investment Levels – to achieve the aspirational target outlined in the NTGS, additional investment beyond that envisioned by the financial strategy will be required. The NTGS identifies that achieving the high-growth target with an 88% increase in ridership will require an additional $27M in net operating expenditures. The estimated costs of consolidation contained within this report reflect inflationary growth only. Based on the 2020 Regional Levy, an Office of the Chief Administrative Officer Response to Niagara Transit G... Page 283 of 302 AGENDA ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 7 ______ aspirational growth strategy would require an incremental separate transit levy of 7.0%. In addition, an incremental capital investment of $70M-$155M may be required to achieve this growth, of which approximately $40M is currently funded through PTIF and ICIP programs. These investments are in addition to regular lifecycle replacements of existing assets. The financial strategy includes an additional $2.7M in service expansion funding previous discussed, which is outside the aspirational growth strategy and is intended for enhancements in those municipalities with less robust current service to improve connectivity to urban centres and amenities. Longer-term service enhancements will be determined by the Commission’s transit service strategic plans, and subject to the allocation of funding through the Regional budget process. • COVID-19 – the aspirational +80% target was developed based on ridership levels and modelling prior to the onset of the COVID-19 pandemic, which has had a direct impact on transit ridership and revenues. While these impacts have been significant in the short-term, the long-term impacts to transit remain unclear. Trends towards greater work and study from home environments may result in lower transit utilization in the long-term, or may have limited impact post- pandemic. A Full Commission governance model will be best able to balance core transit needs while simultaneously being flexible to respond to emerging trends and service levels as circumstances require. The Cummings Principle and Asset Transfer The proposed application of the Cummings Principle to the transfer of assets to the Commission remains a key principle of the financial strategy. The premise of the Cummings Principle is to transfer assets (and related outstanding liabilities), from one municipality to another with no additional compensation, since transferring assets for additional compensation results in the taxpayer paying twice for the same public asset. Board of Directors and Appointment Process The NTGS presents a recommended Board of Directors comprised of five (5) members of Regional Council, (4) skills-based members of the public, and the Commission’s General Manager acting in an ex-Officio capacity. This structure was recommended to Office of the Chief Administrative Officer Response to Niagara Transit G... Page 284 of 302 AGENDA ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 8 ______ achieve both stewardship over resources and accountability to the residents of Niagara via elected officials, supplemented with additional skills or proficiencies necessary through those with experience in industry or more broadly. Discussion at LNTC raised the question of the appointment of elected officials other than those already members of Regional Council (i.e. other local councillors). The process for appointment of members to the Board of Directors will be determined as part of the by-law that establishes the Commission as a legal entity, anticipated to be brought forward in parallel with the future triple-majority approval report. Through that process, Regional Council will have the opportunity to establish the criteria by which members can be selected. It is presumed that a nominating committee of Regional Council would then select members on the basis of the established criteria. The forthcoming engagement with local area municipalities presents an opportunity to solicit further feedback regarding the proposed member selection process and Board Composition. Social Equity The guiding principles established for the NTGS determined fairness as a key objective of the consolidation of transit, including providing a basic level of services that can be accessed by as many Niagara residents as possible. There is currently a significant disparity in the availability and frequency of transit service across the region between smaller and larger municipalities. Across the region, there are numerous residents who rely on transit as their primary mode of transportation. As such, transit represents social equity access to employment opportunities, medical services, educational institutions, or social activities. The consolidation of transit is anticipated to foster a greater level of access to transit services for those residents currently under- or unserved by transit. Under the proposed financial strategy, this greater access in smaller municipalities will be achieved through the expansion of services proportional with increased investment levels and the greater integration with the services currently in place in the larger municipalities. Social equity is achieved through transit equity and access. The aforementioned financial strategy was designed to enable smaller municipalities to enhance their transit service levels and connectivity as quickly as possible as the levy redistribution occurs over time. This means front-loading the benefits of enhanced service and faster upload of the local levy Office of the Chief Administrative Officer Response to Niagara Transit G... Page 285 of 302 AGENDA ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 9 ______ to regional as soon as possible, so as to increase their levels of social and transit equity for their residents. LAM Engagement Timeframes and Next Steps Subject to the adoption of the minutes of LNTC by Regional Council on November 20, 2020, LNTC-C 4-2020 will be distributed and engagement with the LAMs seeking feedback on and support for the proposed governance and finance models will commence. The specific timing and method of engagement with each LAM will be determined in consultation with their respective CAOs and Heads of Council, acknowledging the request from LNTC that feedback be received no later than February 28, 2021. Where requested, Regional staff (the Project Team) and the NTGS consultants will be available to support local staff as the item is considered at local Councils. LNTC-C 8-2020 provides the draft presentation planned for use, where and if requested by the local area municipality. This presentation has been provided to committee separate from this report, as it is not recommended that this presentation be directly distributed to LAMs in parallel with the distribution of the supplementary information contained in this memo (should committee opt to distribute this information). This is recommended in order to facilitate required tailoring and updating for each municipality, and avoid confusion between what is an indicative presentation and the final presentation intended for each LAM. In parallel to engagement with the LAMs, Regional staff will undertake the evaluation of impacts to Niagara Region Transit, Niagara Specialized Transit, Niagara Region Transit OnDemand, and the Regional tax levy from the proposed resolution in LNTC-C 4-2020. This assessment will be returned to LNTC for consideration in advance February 28, 2021, so that input from LNTC and Niagara Region Public Works Committee (as well as a position on the requested motion) can be received in parallel to that from the LAMs. This collective feedback will be used to further refine the proposed governance and financial models, in advance of the initiation of the triple-majority process in Q2 2021. Office of the Chief Administrative Officer Response to Niagara Transit G... Page 286 of 302 AGENDA ITEM 3.2 LNTC-C 6-2020 November 25, 2020 Page 10 ______ Respectfully submitted and signed by, ______Scott Fraser, P. Eng. Transportation Lead | GO Implementation Office Office of the Chief Administrative Officer Response to Niagara Transit G... Page 287 of 302 LNTC-CAGENDA 4-2020 ITEM 3.2 Appendix 1 Appendix 1 – Resolution for Endorsement in Principle 2 WHEREAS, a Full Commission model as described in Appendix 2 to Report LNTC- C 4-2020, and to be established as a Municipal Services Board of the Region in accordance with Municipal Act, 2001, has been recommended as the preferred governance model for the consolidation of Niagara’s public transit system; AND WHEREAS, the Cummings Principle, enacted through as series of Municipal Transfer Agreements, will be used to guide the transfer, use of, and access to assets and facilities from existing local area municipalities to the Commission; AND WHEREAS, all existing employees, vendors, contracts, and collective bargaining agreements will be transferred to or assumed by the Commission, in accordance with the Municipal Act, 2001 or Labour Relations Act, 1995; AND WHEREAS, a minimum of 2021 transit service hours in local area municipalities will be maintained for a period of five (5) years from the assumption of delivery of service by the Commission, unless otherwise agreed to by the local area municipality; AND WHEREAS, all existing and incremental transit spending will be transferred to the new Commission, funded through a single Regional tax levy to be enacted over a transfer implementation period of five fiscal (5) years as described in Report LNTC-C 4-2020; AND WHEREAS, to achieve a net-neutral impact to the regional taxpayer, local transit costs assumed by the Regional tax levy will be offset by equivalent budgetary reductions by the local area municipality; AND WHEREAS, funding previously committed under inter-governmental programs such as the Investing in Canada Infrastructure Program (ICIP) will be maintained and used within the receiving municipality; AND WHEREAS, support will be sought from senior levels of government for the one-time transition costs associated with consolidation under programs such as the Provincial governments’ Safe Restart Agreement; AND WHEREAS, an integrated single regional fare will be established by the Commission within five (5) years of the assumption of delivery of service by the Commission; Office of the Chief Administrative Officer Response to Niagara Transit G... Page 288 of 302 LNTC-CAGENDA 4-2020 ITEM 3.2 Appendix 1 BE IT RESOLVED THAT Council endorse, in principle, the Full Commission as the recommended governance model for he consolidation of Niagara’s public transit system. Office of the Chief Administrative Officer Response to Niagara Transit G... Page 289 of 302 AGENDA ITEM 3.2 2012 First Street Louth, RR3, ST. CATHARINES, ON L2S 3V9 Phone 905-685-4228 Fax 905-685-4050 3 St. Catharines Transit Commission response to Niagara Transit Governance Study Report Executive Summary The St. Catharines Transit Commission is the governing body for transit in St. Catharines. The Commission is composed of five citizen appointees and two St. Catharines City Councillors. The seven Commission members are representatives of the residents of St. Catharines who provide oversight to senior staff and lend strategic direction in areas such as service level, fare structure, budget and finance, social equity and customer experience. The broad range of public sector experience identified above, coupled with the direct municipal leadership and expertise provided by the two City Councillors, gives the Commission a high level of credibility as the oversight body for transit in St. Catharines. The Commission supports the approval of the investment required to provide integrated public transit throughout Niagara. The Commission also agrees that of the options presented, the Full Commission model is the preferred governance option for an integrated transit system; however, the Commission has concerns outlined in the following document that need to be resolved prior to providing approval in principal. These concerns are regarding the implementation of the service, representation and financial models required to support the transition to an integrated transit system. These comments and concerns are designed to aid transparency and ensure that transit integration is accomplished in a manner which properly allocates transition costs, ensures local service level control, and ensures taxpayer equity. Overall, it is the collective opinion of the St. Catharines Transit Commission that we are requesting the Niagara Transit Governance Study to be updated to reflect all transition and future state costs. This will allow for local area municipalities to decide based on fulsome and current information. Taking the time to conduct this work now will make the transition and future service costs more transparent. Full detail regarding comments and concerns made by the St. Catharines Transit Commission, as well as recommendations for a new integrated transit system, can be found within this document. yourbus.com Office of the Chief Administrative Officer Response to Niagara Transit G... Page 290 of 302 AGENDA ITEM 3.2 2 St. Catharines Transit Commission response to Niagara Transit Governance Study Report The St. Catharines Transit Commission (SCTC) along with its staff remains steadfast in its commitment to improving transit in St. Catharines and advancing transit integration throughout Niagara. The Commission has played a lead role in this regard over the past few years. Some of the St. Catharines-led initiatives include: - The development of a standard region-wide route identification system. This eliminates confusion for intermunicipal passengers and it laid the groundwork for integrated bus technology systems. - SCTC staff led the integration of customer information from all Niagara transit systems into a single app. - SCTC manages the real time infrastructure on behalf of all Niagara transit operators. - SCTC led the development of common customer polices which were adopted by all Niagara transit operators. - Current development is being done for a consolidated customer call center and common fare structure. - SCTC is leading the fare technology integration project. - SCTC was Instrumental in the implementation of the original IMT pilot project in 2011. - SCTC was a key player in the recent rationalization of post secondary routes. The St. Catharines Transit Commission is the governing body for transit in St. Catharines. The Commission is composed of five citizen appointees and two St. Catharines City Councillors. The current Commission reflects a diverse skill set among the citizen appointees as detailed below: i. Chartered Accountant (former St. Catharines Treasurer and CAO), ii. Professor of Geography and Tourism at Brock University (with extensive research background in transit), iii. CUPE National Staff Representative (and former Niagara Paramedic), iv. Professional Engineer (with municipal and transit background), v. School Board Trustee (and former School Board Chair). The seven Commission members are representatives of the residents of St. Catharines who provide oversight to senior staff and lend strategic direction in areas such as service level, fare structure, budget and finance, social equity and customer experience. The broad range of public sector experience identified above, coupled with the direct municipal leadership and expertise provided by the two City Councillors, gives the Commission a high level of credibility as the oversight body for transit in St. Catharines. It should also be noted that the General manager of the SCTC is a member of the Board of Directors for the Ontario Public Transit Association and the Manager, Transportation is a member of the Board of Directors for the Canadian Urban Transit Association. yourbus.com Office of the Chief Administrative Officer Response to Niagara Transit G... Page 291 of 302 AGENDA ITEM 3.2 3 Although SCTC staff have been leading or supporting operational integration initiatives as part of the Inter Municipal Transit Working Group (IMTWG), neither senior staff nor Commission members were directly involved in the development of the governance study. The Niagara Transit Governance Study consultant along with regional staff made two presentations to the Commission regarding the progress and outcome of the governance study (including the recommended model) and senior SCTC staff (and thereby the Commission members) did receive the same updates as the other stakeholder groups. At the October 21, 2020 meeting of the Linking Niagara Transit Committee (LNTC), the consultant’s report on transit governance was presented and endorsed by the LNTC. The path forward includes review by Niagara Region Public Works Committee and the Local Area Municipalities. Comments from Local Area Municipalities are requested by February 28, 2021. SCTC is well positioned to provide feedback to St. Catharines City Council to allow them to make a fully informed decision on this important matter. As previously stated and firmly backed by our actions, the Commission supports the approval of the investment required to provide integrated public transit throughout Niagara. In order to ensure that progress continues in this regard, the Commission would like to bring some issues to Council’s attention. These are designed to aid transparency and ensure that transit integration is accomplished in a manner which properly allocates transition costs, ensures local service level control and ensures taxpayer equity. Please consider the following: 1. Pandemic – The global pandemic has brought great challenges and uncertainty to public transit. Ridership and revenue losses are expected to continue for several years. Currently Safe Restart funding ends on March 31, 2021 (provincial and federal sources). The transit industry is hopeful there will be funding beyond that time to support the revenue losses likely to be experienced for the next few years. This future funding would allow for better certainty on pandemic recovery prior to implementing large scale transit change and would provide for a clearer picture of transit’s future and a more settled experience for employees. At this point in time, Safe Restart funding beyond March 31, 2021 is an unknown. Low ridership and uncertainty regarding municipal budgets are also concerning. 2. Service Plan – The Niagara Transit Governance Study does not include a service plan but creates the expectation that transit will see exponential growth over the next ten years. A service plan should be developed in order to provide municipal decision makers with a basic layout of what service changes will be implemented to meet this demand growth. 3. Operational Funding – The proposed Niagara Region Transit Commission (NRTC) will be funded by Regional Council and the report indicates that the new integrated transit operation will have an annual operations budget to work with. Note that transit operations can be adversely and unexpectedly impacted by market forces such as fuel price, which create major budget variances. While all departments are negatively impacted by sudden spikes in fuel prices, public transit is particularly vulnerable. This needs to be identified to municipal decision makers so that suitable budget planning can be done (such as the need for reserves). yourbus.com Office of the Chief Administrative Officer Response to Niagara Transit G... Page 292 of 302 AGENDA ITEM 3.2 4 4. Ridership Growth and Modal Share – The consultant indicated there will be an increase in modal share of up to 130% and ridership growth of up to 80% by 2031. This is based primarily on the results experienced by other Ontario regions who amalgamated their transit systems. The report does not disclose the additional financial investment required to provide the necessary service levels to handle the ridership growth. (Ridership will grow but the associated expenditure will also grow). These other regional systems serve a higher population density than Niagara, in regions with a significantly growing population. Despite this, these other transit systems have seen a significant drop in their revenue cost ratio following regionalization. Looking at the example of Grand River Transit (GRT), transit was amalgamated in 2000 and by 2015 they experienced a 117.7% ridership increase. St Catharines transit ridership grew by 91% in the same period. GRT’s taxpayer cost per capita was $123.12 in 2015 compared to St. Catharines Transit’s $60.24. 5. Single fare – A Niagara Region Transit Commission will be expected to provide a single fare for travel anywhere in Niagara. A number of years ago, SCTC integrated fares with the City of Thorold and the result was an improved rider experience. Single fare is mentioned in the governance study, but no revenue estimates are provided. A single fare valid anywhere in the Region is required as part of a newly integrated transit system, but the revenue implications need to be fully assessed and presented. 6. Financial Projections – The financial projections in the report only look at current state in static dollars. The cost of service improvements and the supporting capital improvements should be included. This ties back to the service plan which would provide a roadmap for budgeting and resource planning. The consultant could not possibly forecast Covid-19 but the financial picture for transit has changed due to the pandemic, and this should be reflected to the extent possible in an update to the study. An update should also include any items directly related to a merger of existing systems. An example of this is fleet insurance. Different historical practices and claims history may result in a higher risk assessment and higher premiums. Also, depending on revised traffic forecasts, the capital funding forecast should include a new maintenance facility. The existing excess fleet capacity caused by Covid is not permanent. It is important to note that Pre-Covid, there was no excess capacity at the three existing maintenance facilities, so we know that future service expansion will require a new garage. The capital cost estimate is in the range of $50 - $80 million. There is also uncertainty surrounding provincial gas tax funding as gas sales are declining and electric vehicles are being prioritized. 7. Consolidation of Union Agreements – The amalgamation of transit service will bring a great deal of change to the employees of the organizations involved. Balancing the collective agreements will be crucial to ensure positive labour relations in the early years on the new entity. The report discusses renegotiating these agreements as the expire. This needs to be part of the transition and the costs accounted for in that envelope. yourbus.com Office of the Chief Administrative Officer Response to Niagara Transit G... Page 293 of 302 AGENDA ITEM 3.2 5 8. Representation on the Niagara Region Transit Commission – The NTGS calls for a 9-member Commission made up of 5 Regional Councillors and 4 citizen appointees. The Regional Councillors would be comprised of 1 each from St. Catharines, Niagara Falls and Welland plus 2 from any other municipality. The result is that the city with the largest transit system with the most assets, St. Catharines, does not have appropriate representation on the new Regional Commission. This would clearly create a problem for St. Catharines when it comes to lower tier input. The report does call for a five-year guarantee on service levels but this could create a challenge for future service improvements desired within the city of St. Catharines. Note that the composition of the Regional Commission could be altered by a majority vote of Regional Council. 9. Asset Transfer – The report calls for the transfer of assets based on the Cumming’s principal. This means that all of SCTC’s assets ($66.8 million or 52% of the total transit assets in the Region) are transferred to the new entity with no financial compensation to the city of St. Catharines. 10. 2012 First Street Facility – The property at 2012 First Street Louth, used as the administrative and operational headquarters for St. Catharines Transit, is owned by the City of St. Catharines with an asset value of approximately $10 million. The facility is operated under a lease for an indeterminate term at the pleasure of council with the City of St. Catharines as the landlord. It should be noted the facility would not be large enough to support long term operations of the new entity. In the event of governance change it would make sense for the facility to revert to the city when it is no longer utilized for transit operations. 11. Funding Model – The new entity would be funded by a phased in uniform tax levy. Based on 2020 transit spending the funding of transit in Niagara would be redistributed as follows. 2021 2029 Change St. Catharines $ 12,275,402 44.88% $ 6,936,441 25.36% -$ 5,338,961 -43.49% Niagara Falls 8,645,833 31.61% 5,333,620 19.50% - 3,312,213 -38.31% Welland 2,050,898 7.50% 2,201,828 8.05% 150,930 7.36% NOTL 497,223 1.82% 2,469,877 9.03% 1,972,654 396.73% Port Colborne 127,092 0.46% 877,996 3.21% 750,904 590.83% Pelham 261,156 0.95% 1,258,187 4.60% 997,031 381.78% Thorold 2,152,143 7.87% 1,085,870 3.97% - 1,066,273 -49.54% Fort Erie 826,323 3.02% 1,764,198 6.45% 937,875 113.50% Grimsby 250,000 0.91% 2,127,978 7.78% 1,877,978 751.19% Lincoln 265,829 0.97% 1,769,668 6.47% 1,503,839 565.72% West Lincoln - 0.00% 1,020,226 3.73% 1,020,226 Wainfleet - 0.00% 506,010 1.85% 506,010 Total Expenditure $ 27,351,899 100.00% $ 27,351,899 100.00% This represents the current expenditures on transit and does not include service expansion or inflation. The proposed uniform tax levy based on the regional apportionment is not fair. As you can see in the table above, it would shift the financial burden from a municipality that directly benefits from the service to municipalities that have little or no transit service. An alternative method would be a special area rate similar to how St. Catharines funds transit. Conventional yourbus.com Office of the Chief Administrative Officer Response to Niagara Transit G... Page 294 of 302 AGENDA ITEM 3.2 6 transit which is only available in the urban boundary is assessed against only those properties. Paratransit which is available to all properties in St. Catharines is included in the general rate. 12. Regional Tax Levy – The impact of transferring existing transit from the local to the regional levy should be provided in the report, along with the associated increase for service expansion. 13. Five Year Service Guarantee – The proposed Regional Commission guarantees that a minimum of year 2021 service hours in local municipalities will be maintained for five years from the assumption of the delivery of service by the new Commission, unless otherwise agreed to by the local area municipality. As stated earlier, 2021 is not anticipated to be a normal “service hour” year due to the global pandemic so this needs to be changed in the report. In addition, in the current governance proposal, after five years the new Commission could unilaterally change service with no local input. 14. St. Catharines Transportation Master Plan – St. Catharines is in the process of finalizing its transportation master plan (TMP). The TMP is scheduled to be presented to St. Catharines City Council in early 2021 for approval. The TMP contains several recommendations for transit in St. Catharines and these should be incorporated into the future state service plan. The TMP indicates there is latent demand for transit and ridership and modal share growth could be achieved with increased service frequency, extending half hour service further into the evening, providing weekday connection to the GO Train Station and connecting certain routes to the bus terminal. The recommendations are sectioned in to short, medium and long term. Short-Term i. 337/437 Crosstown add downtown connection ii. 314/414 Scott add downtown connection iii. 302, 312, 303, 301, 308, 309 – Add buses PM Peak iv. Shuttle/Circulator Route connecting GO/Via station to downtown v. Requires 4 additional buses and adds about $900,000 in net operating cost Medium-Term i. Extend evening service on 300 series routes by 2 hours ii. Requires no additional buses and $950,000 in operating cost Long-Term i. Operate 15-minute service on most 300 series routes during afternoon peak ii. This will require a phase-in approach as a substantial increase in fleet will be required. For example; expanding to 15 minute peak period service on routes 302 & 312 would require 4 buses and $210,000 in operating cost. These improvements may be difficult to achieve under the proposed governance model as local input is very limited. yourbus.com Office of the Chief Administrative Officer Response to Niagara Transit G... Page 295 of 302 AGENDA ITEM 3.2 7 Transition Provide fulsome information on the cost of transition and the possible external funding sources. The impact of a single fare (in the form of lost revenue) and an estimate on the impact of consolidating union contracts should be an integral part of the transition cost. Excluding these items makes the cost of transition look lower but will burden the new entity with significant costs. These additional cost burdens will put budget pressure on the new entity in the first year or two of operation. The funding source to cover the transition cost should also be more transparent. The report does indicate the funding will or may be available from other levels of government. This funding should be substantiated. The reference to Safe Restart Funding should consider that the end date for this funding is March 31, 2021. It is likely that this funding will be extended but it is already earmarked to provide operational support for PPE and lost revenue. These costs will be transferred to the local taxpayer if Safe Restart Funding is utilized for transition costs. Future State The Niagara Transit Governance Study “future state” shows ridership growth of up to 80% and modal share growth of up to 130%. A determining factor of these growth projections was the experience of other Ontario regions who regionalized their transit systems. It was not noted that these regions have significant population growth, more urban density and invested millions into new transit service. While the Niagara Transit Governance Study shows the growth projections, it does not display the service growth and investment required. These amounts should be included when displaying the cost redistribution for a uniform tax levy. The report speaks to future growth but displays status quo costs. It should also be noted that the status quo costs are from 2019 and do not project the long-term impact of the pandemic. The path to substantive ridership growth is through increased transit network coverage, service frequency and a single fare. Control of service levels within St. Catharines and representation on the new Regional Commission are also concerns with the proposed governance model. Transit service in Niagara will continue to be concentrated in the three larger urban centres and therefore more input and control for these centres should be considered under a governance change. Conclusion It is the collective opinion of the St. Catharines Transit Commission that the Niagara Transit Governance Study should be updated to reflect all transition and future state costs prior to providing approval in-principal to moving forward with the transition to a Full Commission model. This will allow for local area municipalities to decide based on fulsome and current information. Taking the time to conduct this work now will make the transition and future service costs more transparent. A new consolidated transit entity will experience many challenges in its first few years so it is imperative that transition costs do not place any additional burden on the operating budgets of those early years. A clear financial forecast and service plan will provide guidance to the road ahead and help manage the expectations of all stakeholders. yourbus.com Office of the Chief Administrative Officer Response to Niagara Transit G... Page 296 of 302 AGENDA ITEM 3.2 8 The Region staff report states that the NTGS only contemplates governance, and not a service plan. Furthermore, the NTGS recommendation is being sold based on traffic growth; how that growth will be achieved and at what cost needs to be part of the decision-making process. Recommendations 1. Single Fare – Include the revenue impact of a single fare as part of the transition cost. 2. Collective Agreements – Determine the cost of collective agreement consolidation and provide an allocation that would form part of the base budget of the new entity. 3. Service Plan – Develop a service plan that will substantiate growth estimates. 4. Financial Plan – Develop a financial plan to fund the service plan and support growth, including capital requirements. 5. Transition Funding – Provide sources of approved transition funding from other levels of government. 6. Commission Composition – Develop a more equitable Regional Commission structure that better reflects St. Catharines population and transit system size. A single member for the largest city is not representative of the commitment that the City of St. Catharines has and will continue to make, to public transit. Under the current proposal, St. Catharines is relinquishing operational control and transferring assets with a purchase value of $66.8 million and in return would have very limited input on transit decision making. 7. Operational Integration Initiatives – Multiple integration initiatives could continue or be implemented while governance change is considered. These are as follows: a. Common Fare Structure with single fare - The Intermunicipal Transit Working Group is progressing towards integrated fare technology. On-board hardware has been ordered and the integration work should be completed by Q3 2021. This would be the optimal time to level the fares for all systems in the region. This would allow for a single fare, utilizing mobile ticketing to allow for travel throughout the region. The ability to purchase fare media via a smart phone is the ultimate in convenience. The single fare will be a large driver of ridership and modal share growth. b. Common Call Centre - St. Catharines Transit staff have developed a model for a single transit call centre for the region. This will allow passengers have a single point of contact to address all the transit questions, trip planning and other inquires. Capital cost for this option would be $50,000 with an annual operating cost of approximately $100,000. The St Catharines Transit facility is scheduled to be expanded in 2021 which would make room to house a regional call centre. This option could be accelerated by using leased office space. c. Common Website and Rider’s Guide - The transit systems in Niagara are together on one app for schedule and real time information. Development of a common website and rider’s guide coupled with the common call centre will complete the consolidation of all customer information. d. Branding - The development of a common brand for buses, uniforms, fare media and terminals would finalize the public facing operational integration. 8. Unconventional Governance Solution – An appropriate “made in Niagara” solution could be developed that reflects a true partnership between the upper and lower tier. Consideration should be given to: yourbus.com Office of the Chief Administrative Officer Response to Niagara Transit G... Page 297 of 302 AGENDA ITEM 3.2 9 a. Benefiting Area Rating – Rate charged to each municipality based on the service area and the associated service cost. This is like the City of St. Catharines Urban Service rate for conventional transit. b. An appropriate governance structure with direct appointment by the lower tier and upper tier of its representatives. c. The Lower tier would determine the magnitude of transit services provided and fund the associated cost of that service. The existing process for waste management is an example. d. Potential options for legal structure that could be considered are. i. Joint Municipal Service Board ii. Municipal Corporation iii. Special Provincial Legislation like “The City of St. Catharines Act” which established the St. Catharines Transit Commission. The St. Catharines Transit Commission supports the full integration of transit in Niagara and welcomes the opportunity to be part of an equitable solution. Respectfully submitted, The St. Catharines Transit Commission yourbus.com Office of the Chief Administrative Officer Response to Niagara Transit G... Page 298 of 302 AGENDA ITEM 3.3 Corporate Report City Council Report from: Legal and Clerks Services, Office of the City Clerk Report Date: January 21, 2021 . Meeting Date: February 1, 2021 Report Number: LCS-013-2021 . File: 56.15.1 Subject: Waiving 2021 Business Licence Fees to Support COVID-19 Recovery Strategic Pillar: Recommendation That Business Licence fees for 2021 be waived for the following business types: Amusement Arcades, Auctioneers, Hawker / Peddlers (e.g. food trucks), Public Halls, Refreshment Stands, Restaurants, and Theatres. FORTHWITH Summary This report provides information on waiving business licence fees in 2021. Only certain types of businesses are recommended to be included based on the anticipated impact that COVID-19 has on different businesses. The financial implication of approving the staff recommendation is approximately $92,000. Relationship to Strategic Plan This report is related to the Economic Prosperity goal of the Strategic Plan through providing financial support to businesses. Background At its meeting of January 18, 2021, Council requested “that staff report back to the Budget Standing Committee on the possibility of business license fee waivers for 2021, and the financial and other implications of a license fee waiver.” By-law 2005-318, a by-law respecting the issuing of business licenses, identifies the types of business that are licensed by the City and requires the payment of a fee as part of a licence application or renewal. The fees for each business type are approved annually through the Rates and Fees and are intended to offset the cost of administering the business licensing program. Legal and Clerks Services, Office of the City Clerk Waiving 2021 Busines... Page 299 of 302 AGENDA ITEM 3.3 Report Recommendation that waiving fees be scoped to business most impacted by COVID-19 The 2021 Operating Budget included $90,000 in revenue for business licensing. If Council wishes to waive business licensing fees for all businesses licenced by the City, then the financial impact is estimated to be $97,000. This includes the $90,000 in revenue for 2021 plus approximately $7,000 paid by businesses in 2020 for licences that expire(d) in early 2021 (more information provided below). Alternatively, Council may opt to waive the fees for only those types of businesses that have been most significantly impacted by COVID-19 – this is what is captured in the report’s recommendation. Following this approach, staff recommend that the business licence fees be waived for Amusement Arcades, Auctioneers, Hawker / Peddlers (e.g. food trucks), Public Halls, Refreshment Stands, Restaurants, and Theatres. If Council approves waiving business licensing fees for these businesses only, the financial impact is estimated to be approximately $92,000 ($85,000 in revenue for 2021 plus approximately $7,000 paid by businesses in 2020 for licences that expire(d) in early 2021). The fee would continue to be charged for Kennels, Master Plumbers, Plumbing Contractors, Bill Posters, and Second Level Lodging Homes. The Rates and Fee By-law also includes fees related to adult entertainment and body rub parlours. As administration of these businesses has been delegated to the Niagara Region, waiving this fee is not included in the report recommendation, despite that fact that these types of businesses are significantly impacted by COVID-19. Interpretation of waiving fee for 2021 For new businesses, it is recommended that the fee be applied or waived based on the application date (i.e. the fee would not be refunded for applications submitted in 2020 for a 2021 business opening, but the fee would be waived for applications submitted in 2021 for an opening in 2021 or 2022). Business licences are valid for a one-year period, which often does not align with the calendar year, and business owners receive a renewal notice approximately two months before their licence expires. As such, some businesses will pay their renewal fee in the calendar year prior to their licence expiring. In order to fairly and consistently waive fees, the following approach would be followed if Council approves the staff recommendation: Report Page 2 of 4 Legal and Clerks Services, Office of the City Clerk Waiving 2021 Busines... Page 300 of 302 AGENDA ITEM 3.3 Business Licence Renewals Licence Expiration Date Date Fee Paid Impact 2021 (e.g. Jan 31, 2021) 2020 (e.g. Dec 15, 2020) Refund (approximately $7,000 in fees for 40 businesses) 2021 (e.g. Jan 31, 2021) 2021 (e.g. Jan 15, 2021) Waive fee, refund if already paid (approximately $2,400 in fees for 16 businesses as of January 20, 2021) 2022 (e.g. Jan 31, 2022) 2021 (e.g. Dec 15, 2021) Fee required to be paid unless otherwise decided by Council 2022 (e.g. Jan 31, 2022) 2022 (e.g. Jan 15, 2022) Fee required to be paid unless otherwise decided by Council All other licencing requirements to remain in effect If Council opts to waive the fees for business licences, all other provisions of By-law 2005-318 would remain in effect. This includes the requirement to obtain and maintain a valid business licence, the submission of any applications and documentation to support the licencing process, and applicable inspections which may have associated fees that are separate from the business licence fee and would continue to be collected. Businesses would also still be required to pay any fees related to licencing requirements of other levels of government, such as fees for a Master Business Licence which is issued by the Province. Although no fee would be charged, renewal notices would still be sent to existing businesses who would be required to confirm that they continue to operate the business. This will ensure that important changes from the past year are captured, such as new ownership, change in business name or location, and contact information, and will avoid the administrative resources of processing renewals for businesses that are no longer operating. Reporting to Council instead of BSC Although the request was to report to Budget Standing Committee, this report is being provided directly to Council as the next BSC meeting is not scheduled until March 22, 2021. An early decision on this matter will provide greater certainty to the business community and reduce the staff time required to implement Council’s decision as staff anticipate having to refund fees which are currently being collected as applications and renewals continue to be processed. Financial Implications The financial implication of approving the staff recommendation is estimated to be approximately $92,000. This includes $85,000 in revenue included in the 2021 Report Page 3 of 4 Legal and Clerks Services, Office of the City Clerk Waiving 2021 Busines... Page 301 of 302 AGENDA ITEM 3.3 Operating Budget plus approximately $7,000 paid by businesses in 2020 for licences that expire(d) in early 2021. Conclusion This report recommends waiving 2021 business licence fees for Amusement Arcades, Auctioneers, Hawker / Peddlers (e.g. food trucks), Public Halls, Refreshment Stands, Restaurants, and Theatres. Prepared by Kristen Sullivan Deputy City Clerk Submitted by Bonnie Nistico-Dunk City Clerk Approved by Heather Salter Director of Legal and Clerks Services / City Solicitor Report Page 4 of 4 Legal and Clerks Services, Office of the City Clerk Waiving 2021 Busines... Page 302 of 302