Media Release: Tuesday, June 2, 2020, 4:30 p.m. Regional Municipality of Waterloo

Addendum Council Agenda

Wednesday, June 3, 2020 7:00 p.m.

Meeting to be held electronically

1. Moment of Silence

2. Roll Call

3. Declarations of Pecuniary Interest under the “Municipal Conflict Of Interest Act”

4. Presentations 5. Petitions 6. Delegations

a) Chuck Howitt, Ink Stained Wretches, re: Supporting Local Journalism proposed resolution https://www.ink-stainedwretches.org/

*Page 6

7. Minutes of Previous Meetings a) Closed Special Council – May 6, 2020 b) Closed Special Council – May 8, 2020 c) Closed Council – May 13, 2020 d) Council – May 13, 2020 e) Closed Committee of the Whole – May 26, 2020

Should you require an alternative format please contact the Regional Clerk at Tel.: 519-575-4400, TTY: 519-575-4605, or [email protected] 3307369 Council Agenda - 2 - 20/06/03

f) *Committee of the Whole – May 26, 2020 g) *Special Council Meeting – June 1, 2020

8. Communications

a) Council Information Package – Friday, May 29, 2020 (Distributed Electronically)

b) *Letter to Council from Kyle McLeod re: Transit Electric

Page 8

c) *Letter to council from BYD re: Electric Strategy and Pilot Project

Page 28

9. Motion To Go Into Committee Of The Whole To Consider Reports

10. Reports

Finance Reports

a) COR-ADM-20-02, Request for Loan Guarantee from Southwestern Integrated Fibre Technology Incorporated (SWIFT) Page 9 Recommendation: That the Regional Municipality of Waterloo provide to Southwestern Integrated Fibre Technology Incorporated’s (SWIFT) lender the Region’s guarantee for the Region’s proportionate share of a short term credit facility in the approximate amount of $2,179,000 to provide bridge financing to be used by SWIFT to finance Phase 3 projects identified in the SWIFT Pilot Project Contribution Agreement with the Federal/Provincial Governments, and

That the Commissioner of Corporate Services/Chief Financial Officer and the Regional Solicitor be authorized to sign any and all documentation necessary for this guarantee to become effective, as set out in report COR-ADM-20-02 dated June 3, 2020.

b) COR-TRY-20-56, P2020-08 Driver Protection System

Page 16 Recommendation: That the Regional Municipality of Waterloo accept the proposal of The Aftermarket Parts Company LLC for P2020-08 Driver Protection System for a three (3) year term commencing June 4, 2020 at an estimated cost of $2,095,190 (2020 estimated cost of

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$844,930) plus all applicable taxes as set out in report COR-TRY-20-56 dated June 3, 2020;

And that the Regional Municipality of Waterloo amend the 2020-2029 Capital Program as set out in Table 1.

c) COR-TRY-20-57, Federation of Canadian Municipalities Debenture Issue – Membrane Aerated Biofilm Upgrades at the Hespeler Wastewater Treatment Plant (Information)

Page 19 d) *COR-TRY-20-58, 2020-2029 Housing Services Capital Program Amendment Page 21 Recommendation: That the Regional Municipality of Waterloo amend the 2020-2029 Housing Services Capital Program to reflect the revised schedule of funding advances to MennoHomes as described in report COR-TRY-20-58 dated June 3, 2020. Committee Reports a) Committee of the Whole - attached & marked CS-200526

Page 23

Regional Chair

*That the nomination of Chair Karen Redman to the 2020 - 2022 AMO Board of Directors as President be supported and endorsed by Region of Waterloo Council.

11. Other Matters Under Committee Of The Whole

12. Motion For Committee Of The Whole To Rise And Council Resume

13. Motion To Adopt Proceedings Of Committee Of The Whole

14. Motions

15. Notice of Motion

a) *Revised - Take notice that I, Councillor Sean Strickland, intend to introduce the following motion at the Council meeting to be held on June 3, 2020:

Whereas the COVID-19 pandemic is a public health and economic crisis; and

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Whereas the loss of life due to the pandemic has been heart wrenching and of great public concern; and

Whereas we are thankfully seeing an increased slowdown in the spread of COVID19 and the government is gradually opening up our economy; and

Whereas it is vitally important as we move into the next phase of pandemic control and economic recovery that the Region of Waterloo position ourselves to aid in the economic recovery of our community; and

Whereas the Waterloo Region Economic Development Committee (WREDC) is an economic development entity who in cooperation with all local area municipalities has been directly involved with coordinating an economic development response throughout the pandemic; and

Whereas it is vital that elected officials have a role to play in planning and approving funding and other stimulus and relief measures and recovery activities for the betterment of our community; and

Therefore, be it resolved that the Region of Waterloo form an ad hoc "Post Covid19 Economic Recovery Committee" coordinated by the Region’s Economic Development staff and supported by WREDC, comprised of directly elected Regional Councillors, with one from each city, and one representative for the four townships, the current chair of the Economic Development Committee and the Regional Chair, reporting directly to Regional Council; and

Further, that the focus of the committee includes but be not limited to, reviewing the Region’s Post Covid19 economic strategy in partnership with cities’ and townships’ economic development leads, as well as broader aspects within regional government authority to support our community through economic recovery such as tax policy, reducing red tape, development charges, capital spending and stimulus activities in general; and

Further, that the ad hoc committee is advisory in nature and any and all recommendations will have to be approved by Regional Council

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b) Take notice that I, Councillor Helen Jowett, intend to introduce the following motion to be dealt with at the Council meeting to be held on June 3, 2020:

Whereas the region of Waterloo in conjunction and in cooperation with the seven area municipalities is managing the communities’ response to the pandemic based on a plan from 2008 and,

Whereas this plan does not include a role for directly elected Regional Councillors, therefore,

Let it be resolved that following closure of this pandemic that the governance model for the emergency response plan be reviewed and amended to include representation from all directly elected officials.

16. Unfinished Business

17. Other Business

a) Covid-19 Update

b) Special Committee and Council Meeting – July 15, 2020 (start time and agenda items to be discussed)

18. Questions

19. Enactment Of By-laws – First, Second & Third Readings

a) A By-law to authorize the borrowing upon amortizing debentures in the principal amount of $1,263,000 for a capital work of The Regional Municipality of Waterloo.

b) A By-law to Limit Tax Decreases For Properties in the Commercial, Industrial and Multi-Residential Classes in the 2020 Taxation Year.

c) A By-law to Confirm the Actions of Council – June 3, 2020

20. Adjourn

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Backgrounder for ROW council – DRAFT

• The name of our group is ink-stainedwretches.org (Yes, our name is the same as our URL.) • Our project promotes support for local journalism in ALL FORMS (print, broadcast, digital) not only newspapers. • Whereas our campaign is a local grassroots effort, we hope that it will spread across because residents across the country are experiencing a dwindling supply of reliable local journalism. We have support from every province and territory in Canada: Our online petition has been endorsed by more than 600 people from all provinces and territories save Nunavut. (However, an Ottawa-based editor working for a Nunavut news outlet has signed the petition.) • We have not sought the blessing of media executives because this is a grassroots effort by media workers past and present. Of course, we welcome endorsements from news media executives. But they have their own associations and avenues for advocacy. • Three possible action items for council:

o We would be happy if council would write letters encouraging other local municipal councils to adopt a similar resolution. o We would be delighted if council would send letters to the Association of Municipalities Ontario (AMO) and the Federation of Canadian Municipalities (FCM) asking them to encourage their members to adopt similar resolutions. o And we would appreciate it if council would write and send similar letters of support — to ensure an ecosystem for robust local journalism — to elected federal leaders including local MPs; Steven Guilbeault, minister of Canadian heritage; Bill Morneau, federal minister of finance; and Prime Minister Justin Trudeau.

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Backgrounder for a proposed resolution supporting local journalism Resolution to be discussed by Region of Waterloo council on June 3, 2020 Sponsored by Chuck Howitt on behalf of ink-stainedwretches.org May 27, 2020 7 7

Whereas a healthy, professional news media is essential for the proper functioning of civil society and democracy at the local, regional, federal and international levels;

Whereas the Public Policy Forum declares — on its website for the 2017 report The Shattered Mirror: News, Democracy and Trust in the Digital Age (commissioned by the federal government) — that “real news is in crisis” in this country;

Whereas the U.S. Federal Communications Commission (FCC) cited eight “critical information needs” the media help to provide including emergencies; other public risks to health; education; the environment; economic opportunities; civic and political knowledge of policy initiatives; and the conduct of public officials, and candidates for office (The Shattered Mirror p.4);

Whereas Canadians have lost the essential services provided by nearly 500 journalists due to layoffs in the Canadian media just from the time the COVID-19 pandemic began to mid-April — a time it became clearer to the public how important it is for Canadians to receive accurate information — and advertising revenues have plunged, prompting an emergency $30-million advertising-buy by the federal government;

Whereas residents of 190 Canadian communities — including residents of Kitchener, Elmira and — lost 250 established news outlets due to closings or mergers between 2008 and 2018;

Whereas nearly two out of every three Canadians support or somewhat support sending financial aid to struggling news providers, according to a Nanos Research poll of April 2020;

Whereas the federal government allocated nearly $600 million in aid for Canadian media over five years in its 2019 budget, including a 25-per-cent tax credit for newsroom salaries; a 15-per- cent tax credit for digital media subscribers; and charitable tax status for non-profit news outlets;

Whereas Canada’s federal government acknowledged in its 2019 budget (p. 173) that “A strong and independent news media is crucial to a well-functioning democracy.”;

Whereas the news media in Waterloo Region have been instrumental during the COVID-19 pandemic, ensuring local citizens have accurate local information

Therefore Be It Resolved that Waterloo Regional Council recognizes that a healthy, professional news media is essential to the proper functioning of democracy in the region; urges other municipal councils within the region and across Canada to recognize that a robust news media is essential to the proper functioning of democracy in their jurisdictions; endorses legislation and regulations to support and rejuvenate news outlets across Canada; and urges the federal government to move quickly to pass legislation to ensure an ecosystem for a healthy news media to serve all Canadians. 8 8

Hello

My name is Kyle McLeod and I am a Transit Operator at Grand River Transit and have lived in the region for 20 years. I am also an electric vehicle owner and member of the Waterloo Region Electric Vehicle Association.

I’ve recently read that the Region of Waterloo and GRT are considering purchasing 11 battery electric buses and 59 Hybrid buses. I have been advocating GRT for years to make the switch to full battery electric vehicles and am happy to see this announcement.

As you are probably aware, diesel buses are 10 times worse for the environment and cost significantly more over their lifetime to fuel and maintain. So the transition to battery electric not only makes a social difference, but a fiscal one too! They are also MUCH quieter and a MUCH smoother ride for our passengers.

With that said, I wanted to recommend to council that it NOT purchase the 59 hybrid- diesel buses and instead invest in ONLY purchasing battery electric buses from companies like , and (though NOVA-BUS’s electric buses are not that good as they are not as flexible as other companies due to their smaller batteries. They require a charging infrastructure along a route which means they are FIXED to that specific route).

Guelph Transit recently announced it will switch its entire fleet of approximately 75 buses to battery electric. At the very least the Region of Waterloo and GRT can do the same. I understand there is a difference in cost from a hybrid-diesel to a fully electric bus, but considering GRT keeps its buses for a MINIMUM of 12 years (currently we still operate busses from 2004), that means we will still have diesel buses into at least 2035.

I believe the Region of Waterloo strives to be a leader in green technology (as proven by replacing all street lights to LED, and investing in the electric LRT), and by ceasing the purchase of any fossil fuel buses as soon as possible, it will show the Region’s commitment to a sustainable future.

So in closing, I implore Regional Council to approve the purchase of the 11 battery electric buses, but instead of approving the purchase of the 59 hybrid-diesel vehicles, that it instead approves the purchase of MORE fully electric buses for our community.

Thank you for your time and consideration,

Kyle McLeod

3313203 9 9

Report: COR-ADM-20-02 Region of Waterloo Corporate Services Office of the Commissioner

To: Chair Karen Redman and Members of Regional Council

Date: June 3, 2020 File Code: A02-40

Subject: Request for Loan Guarantee from Southwestern Integrated Fibre Technology Incorporated (SWIFT)

Recommendation:

That the Regional Municipality of Waterloo provide to Southwestern Integrated Fibre Technology Incorporated’s (SWIFT) lender the Region’s guarantee for the Region’s proportionate share of a short term credit facility in the approximate amount of $2,179,000 to provide bridge financing to be used by SWIFT to finance Phase 3 projects identified in the SWIFT Pilot Project Contribution Agreement with the Federal/Provincial Governments, and

That the Commissioner of Corporate Services/Chief Financial Officer and the Regional Solicitor be authorized to sign any and all documentation necessary for this guarantee to become effective,

as set out in report COR-ADM-20-02 dated June 3, 2020.

Summary

The Region of Waterloo is a funding partner in the Southwestern Integrated Fibre Technology (SWIFT) Network project. The Region of Waterloo’s financial contribution to the SWIFT project is $2,231,874 and is funded from the Region’s general property tax levy and regional reserves over a four year period from 2018 to 2021 inclusive. SWIFT has identified that completion of the next phase of projects may require the need for short-term bridge financing in the approximate amount of $27.5 million. SWIFT is seeking the formal agreement from the 14 municipalities in this phase (including the

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Region of Waterloo) to act as guarantors of the credit facility SWIFT is seeking.

As SWIFT is a corporation without any capital assets, a lender has nothing which it can take as collateral in security of the requested loan(s). This is why SWIFT is requesting that the municipalities benefiting from these projects provide guarantees to the lender which will provide this required financing. As a participating member of the SWIFT Board, it is reasonable for SWIFT to seek a proportionate guarantee from the Region.

Report:

The Region of Waterloo is a funding partner in the Southwestern Integrated Fibre Technology (SWIFT) Network project. SWIFT is a non-profit municipally-led broadband expansion project created to improve internet connectivity in underserved communities and rural areas across Southwestern Ontario. SWIFT subsidizes the construction of open-access high-speed networks to encourage service providers to expand broadband infrastructure in underserved rural areas.

The Region of Waterloo’s financial contribution to the SWIFT project is $2,231,874 and is funded from the Region’s general property tax levy and regional reserves over a four year period from 2018 to 2021 inclusive. The contribution agreement between Waterloo Region and SWIFT requires the provision of infrastructure within the region valued at a minimum of four times the Region’s financial contribution (i.e. a minimum of $8.9 million). The most recent estimates from SWIFT suggest an investment in the range of $11-$12 million (to be finalized upon execution of a Contribution Agreement with the Province).

Despite the exceptional circumstances brought on by the global COVID-19 pandemic, SWIFT is still currently on track to close its Request for Proposals (RFP) for 14 municipalities including the Region of Waterloo before the end of the year, which would enable service providers to submit network designs to address broadband service gaps in eligible funding areas. An overview of the project status and timeline will be provided to Committee once formal Phase 3 project approval is received from the Province.

Short-term Loan Guarantee Request from SWIFT

SWIFT has identified that completion of Phase 3 projects may require the need for short-term bridge financing in the approximate amount of $27.5 million. While the Contribution Agreement (CA) with the province and the financial contributions from participating municipalities will ultimately provide SWIFT with the funding necessary to cover the full project costs, temporary cash flow shortfalls may result from the following timing issues:

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1. The principal funders (the Governments of Canada and Ontario) will only accept claims for reimbursement from SWIFT once SWIFT has fully paid invoices to the internet service providers (ISP) performing the actual work. It is estimated that once a claim is submitted, it will take approximately 16 weeks to receive reimbursement from the funders.

2. As with most CAs, the funders have a holdback requirement for the project, and the holdback is only reimbursable once a project has been completed meaning “acceptance paperwork” has been provided to and approved/accepted by the Funders.

SWIFT’s Phase 2 projects in Lambton, Norfolk and Wellington required a similar bridge funding requirement of approximately $6 million, and loan guarantees were provided by those three municipalities. The successful Phase 2 lender, TD Bank, will be utilized to provide the bridge financing for Phase 3 as well.

Although it is unlikely that SWIFT will need to have access to short-term bridge financing before 2021-2022, SWIFT staff and its Board believe it prudent to have the necessary arrangements in place well in advance. As such, SWIFT is seeking the formal agreement from the Councils of Brant County, Bruce County, Town of Caledon, Dufferin County, Elgin County, Essex County, Grey County, Huron County, Middlesex County, Niagara Region, Oxford County, Perth County, Simcoe County and Region of Waterloo to act as guarantors of the $27.5 million credit facility SWIFT is seeking. To this end, SWIFT is asking that each participating Council commit to providing a guarantee to a lender in the following amounts:

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12 12 June 3, 2020 Report: COR-ADM-20-02

Note that the guarantee amounts are in proportion to the estimated value of infrastructure being provided to each municipality.

In order for the loan application to be approved, SWIFT needs to secure guarantees for the full $27.5 million. The loan application will only be approved for the amount that is guaranteed. If a single municipality is unable to provide their guarantee, the loan will need to be reduced by the amount of that municipality’s guarantee and other options will need to be discussed with the municipality to address the cash flow shortages that may result when executing their projects. Note that if no financing is available, SWIFT will not have the ability to execute the projects in the given municipality.

SWIFT is requesting that the Region of Waterloo approve a non-binding Letter of Intent (LOI) which provides SWIFT with the municipality’s intent to guarantee the loan in the amount indicated therein (see Appendix A). Once LOIs have been received from all 14 participating Phase 3 municipalities, SWIFT will initiate the process with TD Bank. In order to formalize the guarantees, TD Bank will be requesting that each municipality provide the following;

1. A council resolution approving the guarantee

2. A signed letter of guarantee (form to be provided by TD Bank)

3. A letter from the municipalities legal counsel indicating that the person who has signed 1 and 2 above has the legal authority to do so.

Note that these items will be addressed at a later date and, for the time being, SWIFT is only seeking an authorized signature on the attached LOI.

The difficulties SWIFT is facing in regards to gaining access to short-term bridge financing come from the fact that it is a corporation without any tangible capital assets (TCAs) and which will continue to not own any TCAs once the projects it is seeking to finance are complete. Therefore, a lender has nothing which it can take as collateral in security of the requested loan(s). This is why SWIFT is requesting that the municipalities benefiting from these projects provide guarantees to the lender which will provide this required financing.

As a participating member of the SWIFT Board, it is reasonable for SWIFT to seek a proportionate guarantee from the Region. This guarantee shall expire once all contracts signed by SWIFT in regards to projects in the Region of Waterloo have been fulfilled and SWIFT has been reimbursed by the Federal/Provincial Governments in accordance with the Southwestern Ontario Integrated Fibre Technology Pilot Project Contribution Agreement.

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13 13 June 3, 2020 Report: COR-ADM-20-02

Corporate Strategic Plan:

Participation in the SWIFT project supports the 2019-2023 Corporate Strategic Plan Focus Area 1: to support a Thriving Economy.

Financial Implications:

This is not a request for additional funding. No municipalities are being asked to provide any direct financial assistance or contributions towards the financing of these projects. SWIFT will remain responsible for all payments to the lender of the loan interest (during the construction period(s)) and the repayment of any amounts borrowed at the maturity of the loans. All that is being asked of the municipalities is that they provide the lender with a loan guarantee, which in the Region of Waterloo’s case would be in the amount of $2,179,000. From a financial reporting perspective, all contingent guarantees are documented in the financial statement notes. The full amount of the guarantee will be treated as a financial commitment of the municipality until such time as the guarantee is released by the lender.

Staff are of the view that the risk of default, which would trigger the need for a direct financial contribution, is negligible. This is because the SWIFT projects are funded directly by the federal and provincial governments and will only be undertaken once federal and provincial funding has been secured, and because clauses in contracts with Internet Service Providers (ISPs) exist to ensure that any ineligible expenses not covered by the provincial or federal governments are the responsibility of the ISPs themselves. The financial risks to the municipality from providing this requested guarantee are minimal and are far exceeded by the benefits that will be derived from the expansion of hi-speed internet access in Waterloo Region once projects are completed.

Other Department Consultations/Concurrence:

Planning, Development and Legislative Services staff were consulted in the preparation of this report.

Attachments

Appendix A - Short-term Loan Guarantee Request Letter from SWIFT

Prepared By: Craig Dyer, Commissioner, Corporate Services/Chief Financial Officer

Approved By: Mike Murray, Chief Administrative Officer

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Appendix A – Short-term Loan Guarantee Request Letter from SWIFT

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Report: COR-TRY-20-56 Region of Waterloo Corporate Services Treasury Services (Procurement)

To: Regional Chair Karen Redman and Members of Regional Council

Date: June 3, 2020 File Code: F18-40

Subject: P2020-08 Driver Protection System

Recommendation:

That the Regional Municipality of Waterloo accept the proposal of The Aftermarket Parts Company LLC for P2020-08 Driver Protection System for a three (3) year term commencing June 4, 2020 at an estimated cost of $2,095,190 (2020 estimated cost of $844,930) plus all applicable taxes as set out in report COR-TRY-20-56 dated June 3, 2020;

And that the Regional Municipality of Waterloo amend the 2020-2029 Grand River Transit Capital Program as set out in Table 1.

Summary: Nil

Report:

Proposals were called for P2020-08 Driver Protection System and were advertised in the Record, on the Ontario Public Buyers Association website and on Region’s website. Two (2) proposals were received. The proposals were received and opened through the Region’s e-bidding system and reviewed by Procurement and program area staff. The proposals were evaluated using pre-determined technical criteria which included company profile, approach and methodology, plan of work, schedule and lead-times, team structure, qualifications, experience, references, past performance and compliance to specification. Following the qualitative evaluation, one (1) submission was short listed and their price envelope opened.

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The following proposal was shortlisted:

The Aftermarket Parts Company LLC Winnipeg, MB

*One bid was disqualified

There are only two (2) known aftermarket suppliers of Bus Barriers and one of them elected not to respond this tender. This may be because there is currently a great demand for these barriers due to the COVID-19 pandemic and that some of the plan takers are only able to provide installation services rather than supply and installation.

The work under this contract is to outfit the entire fleet of Grand River Transit (GRT) conventional buses with a Driver Protection System (DPS). The purchase and installation quantities of the DPSs to be delivered over the contract term will vary from year to year. In 2020 it is projected that the 125 purchased DPSs will be installed by GRT staff. The remaining two (2) year purchase of 83 units in 2021 and 68 units in 2022 will include the cost of installation.

The final date of acceptance for this proposal is August 28, 2020.

Corporate Strategic Plan:

This contract extension meets the 2019-2023 Corporate Strategic Plan objective to enhance the transit system to increase ridership and ensure it is accessible and appealing to the public under Strategic Focus Area 2 Sustainable Transportation.

Financial Implications:

P2020-08 (2020 Cost) $845,000 Plus: Applicable Net HST of 1.76% 14,900

Total $859,900 Note: All figures are rounded to the nearest $100

The 2020-2029 Transit Services capital program includes the installation and/or inclusion of safety barriers as part of all future bus purchases and replacements. Staff are recommending the 2020-2029 Transit Services capital program be amended to accelerate the timing of the installation of safety barriers on all Transit buses. The intent is to install these safety barriers by December 31, 2022. To achieve this timeline, $610,000 in additional expenditures are required in 2020, $295,000 in additional expenditures in 2021, and $371,000 in additional expenditures in 2022. Virtually all of these costs are simply accelerated from future years. As set out in Table 1 below, staff are recommending that capital project 66025 Vehicle Replacements Conventional be amended as follows:

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Table 1 Vehicle Replacements Conventional – Provision for Driver Protection System

($ thousands)

2020- 2025- 2020- 2020 2021 2022 2023 2024 2024 2029 2029 Subtotal Subtotal Total

Approved 2020-2029 230 300 210 130 90 960 1,030 1,990 Capital Program Revised 2020- 2029 Capital 840 643 632 0 0 2,115 0 2,115 Program

Change 610 343 422 (130) (90) 1,155 (1,030) 125

The total capital costs associated with this project are funded through the Investing in Canada Infrastructure Program (73%, $1,543,800) and from the GRT Bus Reserve (27%, $571,000). Any costs not covered by the Investing in Canada Infrastructure Program due to project approval and expenditure timing issues will be funded from the GRT Bus Reserve.

Other Department Consultations/Concurrence:

Grand River Transit staff was consulted in the preparation of this report.

Attachments: Nil

Prepared By: Lisa Evans, Manager, Procurement/Chief Purchasing Officer

Approved By: Craig Dyer, Commissioner, Corporate Services/Chief Financial Officer

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Report: COR-TRY-20-57 Region of Waterloo Corporate Services Treasury Services

To: Regional Chair Karen Redman and Members of Regional Council

Date: June 3, 2020 File Code: F08-20

Subject: Federation of Canadian Municipalities Debenture Issue – Membrane Aerated Biofilm Upgrades at the Hespeler Wastewater Treatment Plant

Recommendation:

For Information

Summary:

This report provides the rate for the Combined Loan and Grant Agreement with the Federation of Canadian Municipalities (FCM) for the Membrane Aerated Biofilm Upgrades at the Hespeler Wastewater Treatment Plant. The total amount loaned will be $1,684,000 plus a grant of $251,100. The rate for the 10 year loan will be 3.10%.

Report:

TES-WAS-19-20 dated December 3, 2019 provided authority for the Chief Financial Officer to enter into a Combined Loan and Grant Agreement with the Federation of Canadian Municipalities (FCM) for the Membrane Aerated Biofilm Upgrades at the Hespeler Wastewater Treatment Plant. FCM provides the loan as Trustee of the Green Municipal Fund and the loan is secured through a debenture issued by the Region to FCM. The agreement was executed on April 21, 2020, to provide a loan in the amount of $1,684,000 and a grant of $251,100.

The low cost loan is offered at a rate that is equal to the greater of:

i) The Government of Canada ten (10) year benchmark bond yield in effect five (5) Business Days immediately preceding the date on which the Borrowing By-law is passed plus 1.26% per annum; and

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ii) 3.10%

The project report and all required financial information has been submitted to the satisfaction of FCM and the Region has requested that the Advanced First Loan Disbursement Payment of $1,263,000 be disbursed. The rate for the 10 year debenture is 3.10%. Despite the higher cost of borrowing as compared to the Region’s recent debenture issue, the savings overall to the Region is in the area of $150,000 due to the $251,100 grant.

The debenture was issued under the authority of By-law 95-020 which authorizes the Chief Financial Officer to proceed with a debenture issue that best meets the requirements of the Region and then report the results of the issue to Council at its next scheduled meeting. The terms and conditions of the agreement between the Region and FCM relative to the issuance of debentures are in accordance with the Municipal Act and are consistent with the terms and conditions and requirements of a capital market issue.

The required by-law, including the repayment schedule, is listed in this Council agenda for first, second and third reading.

Corporate Strategic Plan:

The Region’s capital financing program, excellent credit rating, prudent use of debenture financing and monitoring of its debt capacity aligns with the Corporate Strategic Plan objective to ensure the Region provides value for money and long term financial sustainability under Focus Area 5 - Responsive and Engaging Public Service.

Financial Implications:

Debt servicing costs arising from the initial FCM debenture issue of $1,263,000 will be $147,683 per year for 10 years have been planned for and will be paid from the Wastewater Development Charge Reserve Fund.

Other Department Consultations/Concurrence:

The Regional Clerk and the Regional Chair along with the Chief Financial Officer will be required to execute the necessary documents.

Attachments: Nil

Prepared By: Lori McDonald, Financial Analyst

Approved By: Craig Dyer, Commissioner, Corporate Services/Chief Financial Officer

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Report: COR-TRY-20-58 Region of Waterloo Corporate Services Treasury Services To: Regional Chair Karen Redman and Members of Regional Council

Date: June 3, 2020 File Code: D26-20

Subject: 2020-2029 Housing Services Capital Program Amendment

Recommendation:

That the Regional Municipality of Waterloo amend the 2020-2029 Housing Services Capital Program to reflect the revised schedule of funding advances to MennoHomes as described in report COR-TRY-20-58 dated June 3, 2020.

Report:

On July 11, 2019, staff released request for proposal P2019-18 for new affordable rental housing. The Region considered proposals for funding allocations totalling $5,472,513. This total includes IAH-E Year 6 funding ($1,799,410) and OPHI Year 1 funding ($3,673,103). In October 2019 Regional Council approved the following projects for funding pursuant to staff report CSD-HOU-19-17/COR-TRY-19-104:

Number of Funded Priority Projects Amount Funding Source Units

MennoHomes IAH-E ($144,929) $3,818,032 Inc. 30 & OPHI ($3,673,103)

Maxwell Building 13 $1,654,481 IAH-E Consultants Ltd.

Total 43 $5,472,513

At the time of budget development last fall, the 2020-2029 Housing Capital Program was drafted to reflect relatively small cash advances to MennoHomes beginning in each year from 2020 through to 2024 related to the OPHI portion of their funding. Since that 22 June 3, 2020 Report: COR-TRY-20-58 22

time, the agreement with MennoHomes has been completed and all milestones for the first funding allocation have been met. It is anticipated that all remaining milestones will be reached in 2021. Staff are recommending that the 2020-2029 Housing capital program be amended to reallocate funding from 2021-2024 forward into 2020 ($1.84 million) and 2021($1.84 million) to better align with the actual payments made to MennoHomes. This funding is 100% provincial and will not impact the Regional tax levy.

Corporate Strategic Plan:

This report addresses 2019-2023 Corporate Strategic Plan objective to increase the supply and range of affordable and supportive options under Strategic Focus Area 4: Healthy, Safe and Inclusive Communities.

Financial Implications:

Amending the 2020-2029 Housing Capital Program to reflect planned expenditure of $1.84 million in each of 2020 and 2021 will not impact Regional cash flow or property tax levy as this funding is 100% provided through senior levels of government. Staff are recommending the adjustment to better align budget with actuals.

2020 2021 2022 2023 2024 Total Approved Budget Allocation $459 $459 $708 $1,054 $1,136 $3,816 Proposed Budget Allocation 1,980 1,837 - - - 3,816 Change $1,521 $1,378 $(708) $(1,054) $(1,136) $ -

Other Department Consultations/Concurrence:

Staff from Treasury Services and Housing Services have consulted on this report.

Attachments:

Nil

Prepared By: Shauna Calder, Manager, Finance

Approved By: Craig Dyer, Commissioner, Corporate Services/Chief Financial Officer

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The Regional Municipality of Waterloo

Committee of the Whole

Summary of Recommendations to Council

The Committee of the Whole recommends as follows:

1. That the Regional Municipality of Waterloo approve the electric bus strategy as set out in TES-TRS-20-12 dated May 26, 2020 and direct staff to take the following actions: i. No longer purchase buses powered exclusively by diesel engines beginning with the 2021 bus procurement. ii. Purchase six electric buses in 2022 and five electric buses in 2023; iii. Draft the 2021-2030 capital program to reflect incremental bus replacement costs and equipment costs associated with the electric bus strategy; iv. Reduce the current order of 12m conventional diesel buses by four (4) and proceed with a tender to purchase four (4) 9 metre mid-size lower emission conventional transit buses; v. Review the results of the pilot electric buses in 2024 and update the zero emission vehicle strategy at that time.

2. That the Regional Municipality of Waterloo amend the Consulting Services Agreement with MTE Consultants Inc. for the Ottawa Street improvements from Fischer-Hallman Road to Alpine Road, in the City of Kitchener to add additional fees in the amount of $196,000 plus applicable taxes for a revised total upset fee of $771,664 for design services as described in report TES-DCS-20-11, dated May 26, 2020.

3. That the Regional Municipality of Waterloo enter into a Consulting Services Agreement with Associated Engineering (Ont.) Ltd. to provide engineering consulting services for a Schedule C Class Environmental Assessment (EA), design, and contract administration and construction inspection services for Trussler Road (Regional Road 70) from Bleams Road (Regional Road 56) to Yellow Birch Drive at an upset fee limit of $1,175,100 plus applicable taxes for both the EA and preliminary design and detailed design and tendering phases, with contract

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administration and construction inspection services to be paid on a time basis, as described in report TES-DCS-20-12, dated May 26, 2020.

4. That The Regional Municipality of Waterloo direct and authorize the Regional Solicitor to take the following actions with respect to the expropriation of lands for improvements on Dundas Street from Hespeler Road to Franklin Boulevard, in the City of Cambridge, in the Regional Municipality of Waterloo as detailed in report PDL-LEG-20-20 dated May 26, 2020:

a) Complete application(s) to the Council of The Regional Municipality of Waterloo, as may be required from time to time, for approval to expropriate land, which is required for improvements on Dundas Street from Hespeler Road to Franklin Boulevard, in the City of Cambridge and described as follows:

Fee Simple Partial Taking:

i. Part of Lots 1 and 2, Registered Plan 612, being Part 1 on 58R- 20725 (Part of PIN 03814-0414 (LT)) (7 Grantham Avenue, City of Cambridge);

ii. Part of Lot 41, Registered Plan D-8, being Part 2 on 58R-20725 (Part of PIN 03814-0459 (LT)) (Part of Vacant Land, Corner of Dundas Street and Beverly Street, City of Cambridge);

iii. Part of Lot 31, Registered Plan D-8, being Part 3 on 58R-20725 (Part of PIN 03821-0388 (LT)) (175 Beverly Street, City of Cambridge);

iv. Part of Lot 29, Registered Plan D-8, being Part 7 on 58R-20725 (Part of PIN 03818-0044 (LT)) (308 Dundas Street North, City of Cambridge);

v. Part of Lot 16, Registered Plan D-8, being Part 1 on 58R-20840 (Part of PIN 03818-0475 (LT)) (252 Dundas Street North, City of Cambridge).

b) Serve notices of the above applications(s) required by the Expropriations Act (the “Act”);

c) Forward to the Chief Inquiry Officer any requests for a hearing that may be received within the time prescribed by the Act;

d) Attend, with appropriate Regional staff, at any hearing that may be scheduled;

e) Discontinue expropriation proceedings or any part thereof, in respect of the above described lands, or any part thereof, upon the registration on title of the

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required documentation to complete a transaction whereby the required interests in the lands are conveyed or if otherwise deemed appropriate in the opinion of the Commissioner of Transportation and Environmental Services and the Regional Solicitor; and

f) Do all things necessary and proper to be done and report thereon to Regional Council in due course.

5. That the Regional Municipality of Waterloo:

(i) Declare a 25 year leasehold interest in the lands comprising approximately 32,000 square feet at the Regional Municipality of Waterloo Airport as depicted in Appendix “A” to Report PDL-LEG-20-21 dated May 26, 2020 (the “Leased Lands”) surplus to the needs of the Region pursuant to the Region’s Property Disposition By-law 95-034; and

(ii) Approve an increase of the term of the current Lease of the Leased Lands with Hangar Lot 8 Inc. from twenty (20) years to twenty-five (25) years, as described in PDL-LEG-20-21/PDL-AIR-20-03 dated May 26, 2020.

6. That the Regional Municipality of Waterloo enter into an amending agreement with the Corporation of the City of Waterloo to further extend an existing option to purchase a share of a parking structure owned by the City of Waterloo and used by the Region of Waterloo, as outlined in report COR-FFM-20-04 dated May 26, 2020.

7. That the Regional Municipality of Waterloo take the following action with respect to the King-Victoria Transit Hub project as described in Report COR-FFM-20-05 dated May 26, 2020:

(i) Endorse the preferred design (as shown in Appendix A) to be progressed further into Design Development;

(ii) Enter into an Agreement with WZMH Architects to complete Design Development services for the project at an upset limit fee of $1.1 million plus applicable taxes;

And that staff be directed to:

(iii) Pursue an increase to the original funding agreement with the Province of Ontario, additional funding from other federal and/or provincial programs and any other funding source as appropriate for incremental costs associated with the project; and

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(iv) Incorporate incremental costs of this project into the draft 2021-2030 capital program in accordance with the funding strategy approach outlined in this report.

8. That the Regional Municipality of Waterloo approve a $50,000 grant to the Waterloo Region Personal Protective Equipment (PPE) Co-operative as set out in report COR-TRY-20-54 dated May 26, 2020.

9. That the Regional Municipality of Waterloo amend By-law 20-12, being a By-law to Establish and Levy Rates of Taxation for Regional Purposes for the Year 2020, as set out in Appendix ‘A’ attached to Report COR-TRY-20-55 dated May 26, 2020 to allow the Regional Treasurer to provide an interest-fee extension of the required 2020 tax levy remittances owed by the area municipalities to the Region provided that:

• The area municipality implements a property tax deferral program in 2020 and/or waives interest/penalties on property taxes outstanding as a result of the COVID-19 pandemic; • Any remittance extension is proportionate, or approximately proportionate, to the amount and timing of the property tax deferral and/or waiver of interest and penalties granted; • Any remittance extension takes into consideration Provincial funding supports and programs provided to the area municipalities; and • The extension does not exceed December 1, 2020; and

That a certified copy of the approved by-law be forwarded to the area municipalities. 10. That the Regional Municipality of Waterloo declare surplus and approve the following disposition of the fee simple interest in certain lands, being “1 foot reserves” provided in connection with Planning Act approvals, subject to completion of the surplus declaration process pursuant to the Property Disposition By-law 95-034 to the satisfaction of the Regional Solicitor as outlined in report PDL-LEG-20-24 dated May 26, 2020:

(i) Transfer to Meyers Group Inc. the lands described as Part of Lot 7, Concession 9, being a Part on a draft Reference Plan as depicted in Schedule “A” to Report PDL-LEG-20-24 to be registered on title, in the City of Cambridge, being part of PIN 03844-1228 (LT), and

(ii) Transfer to 2546912 Ontario Inc. the lands described as Part of Lot 7, Concession 9, being a Part on a draft Reference Plan as depicted in Schedule “A” to Report PDL-LEG-20-24 to be registered on title, in the City of Cambridge, being part of PIN 03844-1228 (LT).

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11. That the Regional Municipality of Waterloo approve an addendum to Report No. PDL-CPL-20-06 dated March 24, 2020, as detailed in Report No. PDL-CPL-20- 14 dated May 26, 2020, and that this report be forwarded on to the Ministry of Natural Resources and Forestry as part of the Region’s response to the Province’s proposed regulatory changes under the Aggregate Resources Act, Environmental Registry of Ontario Posting No. 019-130.

12. That the provincially mandated Community Safety and Wellbeing Planning process be utilized as the framework to develop a recovery plan for the community supports needed following the impact of COVID-19. And that the membership of the Community Safety and Wellbeing Advisory Committee be expanded to include additional Regional Councillors and others as needed, as outlined in report CAO-SPL-20-02 dated May 26, 2020.

13. That Regional Council endorse the proposed Pandemic Recover Planning Framework save and except for the portion with respect to Economic Recovery and Best Waterloo Region reporting to the Economic Development Committee, as described in report HRC-ADM-20-05, dated May 26, 2020.

And that in light of the actual experience during the pandemic, the return to regular waste collection occur 4 weeks after going into Phase 3 of the recovery plan being fully implemented by the Province of Ontario.

May 26, 2020

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June 2, 2020

Regional Chair Karen Redman & Members of Regional Council Region of Waterloo 150 Frederick Street Kitchener, ON, N2G 4J3 c/o The Clerk’s Office

Re. Committee of the Whole Recommendation on Electric Buses

Dear Madam Chair and Members of Regional Council,

I am writing to you on behalf of BYD, the worlds largest electric bus manufacturer. Founded in 1995, BYD has grown from establishing itself as an innovative company in the battery and electronics industry to the leading high-tech global company it is today. Over the years, BYD has established 30 industrial parks worldwide and has played a significant role in industries related to electronics, automobiles, bus transit, new energy and rail transit. At present there are more than 70,000 BYD zero emissions electric buses in service around the world.

In 2019 we established an assembly facility in Newmarket, Ontario to do final assembly of our transit buses. We have delivered buses to Montreal (STM), Longueuil (RTL) and (TTC) in that facility and are proud to meet our 25% Canadian content requirements.

We are writing today to address a few items pertaining to the motion before you on your electric buses strategy and the presentation that supported the item at the Committee of the Whole last week. Our intention is to ensure that you have all the information about this opportunity to transition to an electric fleet in advance of making your decisions on pilots and strategy checkpoints. We wish to congratulate you on the work you have done to start this transformation and offer this to help your decision-making process.

Electric bus planning and preparation

The presentation last week was very well done and, in our opinion, showed the opportunity for the Region of Waterloo, from an environmental and cost perspective, is significant. While it was evident that further planning needs to be done and facilities prepared, we urge you to move forward to a trial as soon as possible. Costs associated with trials are far less expenses and can help guide the Region to the best technology. We have seen too many examples where planning is the enemy of progress. During the presentation from your consultants, they mentioned that several routes have been identified as ideal for electric buses. A trial is going to be part of your process as it has been in many other jurisdictions for good reason. There appears to be an opportunity for you to trial while you plan, and doing so would allow the Region of Waterloo to be in a stronger position to implement the full strategy faster through open competitive processes if that is the will of Council. 29 29

How you stack up comparably?

A question was asked last week about how you stack up comparably to other jurisdictions. The answer was about middle of the pack. We would like to offer that it is difficult to compare yourselves to others as it isn’t always the best thing to measure against. The Region of Waterloo prides itself on being a world class innovation hub. You know better than anyone that just because a technology is not widely adopted yet, this doesn’t mean it shouldn’t be. The ROW is also a community deeply concerned with the environment, as was demonstrated through your declaration of a climate emergency just a few months ago. Zero emissions buses are one of the fastest and easiest ways to reduce Greenhouse Gases. For every diesel bus you take off the road you save 70 to 100 tonnes of Carbon per year. Replacing the entire fleet of 245 buses would result in the mitigation of up to 24,500 tonnes per year and this is why your Region and cities in Canada and the rest of the world are working to transition to zero emissions now.

For comparison purposes however – here is some information on what your neighbouring municipalities are doing:

Guelph – Committed to buy 65 electric buses with procurements starting this year and a huge project to electrify their transit hub. The project is $177 Million, and they are getting over $70M from the federal and provincial governments in support.

London – The city is burning $7.3 million per year in diesel fuel and sees this as a huge waste. They are committed to fully electrifying their 210 bus fleet.

Toronto – Currently running a 60-bus electric trial that initially was not scheduled until 2021, with plans to replace 1200 in less than 10 years. Our buses along with two other manufacturers are participating.

York Region – undergoing an e-bus trial.

Utilities and Charging Infrastructure Costs

While there will be additional costs for power with e-bus conversions we felt it was important to note that utilities owned by municipalities stand to benefit from the transition of fossil fuel powered buses to electric. Today your taxpayer’s money is spent on diesel fuel, lubricants and other petroleum-based products that are not used in an electric bus.

Dr. Petrunic’s presentation cited a $45,000 per bus cost savings for electric over diesel per year. Based on the GRT fleet of 245 buses, we wish to highlight that this would be an annual savings of $11M per year. Additional revenue from electricity purchased by GRT from the utility would exceed $2M per year.

Charging infrastructure is seen as a barrier to transitioning to electric but with the standardization of charging platforms, federal incentives and third-party Engineering, Procurement, Construction (EPC) companies, these barriers can easily be overcome. 30 30

Energy Storage and Battery Longevity

Referenced in the presentation was the expected life of batteries being less than that of the bus’s life cycle. As the world’s largest manufacture of batteries for electric vehicles, we use the safest, most durable and longest life battery in our heavy-duty buses. These batteries will outlast the life of a bus and can be repurposed in energy storage systems for many more years. We wished to make sure it was clear that there are a wide variety of battery technologies available for buses and power storage uses.

Federal funding:

While we appreciated the questions about potential Federal funding, we did not feel that this point received enough attention. As you are all aware, the federal government is committed to zero emissions vehicles and, in particular zero emissions transit, with a commitment to only support zero emissions buses beyond 2023. The Federal government is also looking right now at investing in infrastructure to stimulate the economy. If the Government supports zero emission electric buses, then the price would be less than a diesel/CNG equivalent with minimal operating costs. The Total Cost of Ownership of an Electric vs Diesel/CNG is already significantly better and removing the Fossil Fuel incentive would make it an impractical decision to buy a conventional bus or diesel hybrid.

Recommendations:

When the environmental benefits and the economic benefits are reviewed in conjunction with your commitments to take action on the climate crisis, it simply makes sense in our opinion to move faster on your transition to electric buses. On behalf of BYD we respectfully ask you to consider the following modifications to your current motion:

1. That shift the timing on your 11-vehicle e-bus trial to as soon as possible 2. That you formalize your commitment to revisit your entire e-bus strategy if/when federal funding for e-buses becomes available.

We understand that some of these commitments were made informally during the Committee meeting and do recognize this commitment from your staff. Advancing the timing and formalizing the commitments would serve to reinforce your commitment to zero emissions solutions. We would be happy to discuss any questions you might have by email [email protected] or by phone +1 (250) 580-8754.

Sincerely,

Ted Dowling Vice President Canada