Corporation of the City of Cambridge Special Council Meeting No. 26-20 Tuesday, September 22, 2020 Virtual Meeting 4:00 p.m. AGENDA

Due to COVID-19 and recommendations by Waterloo Region Public Health to exercise social distancing, members of the public are invited to submit written comments or requests to delegate via telephone related to items on the agenda.

The public wishing to speak at Council may complete an online Delegation Request form no later than 12:00 p.m. on the day of the meeting for Special Council Meetings occurring at 4:00 p.m. and no later than 12:00 p.m. the day before the meeting for Special Council – Public Meetings occurring at 10:00 a.m.

All written delegation submissions will be provided to the Mayor and Council prior to the meeting, and will form part of the public record.

Meeting Called to Order

Disclosure of Pecuniary Interest

Presentations

1. Elaine Brunn Shaw, Chief Planner, re: item 6 - SmartCentres’ Request for a Minister’s Zoning Order for 18-60 Pinebush Road, Cambridge

Delegations

1. Christine Cote, re: item 6 - SmartCentres’ Request for a Minister’s Zoning Order for 18- 60 Pinebush Road, Cambridge

Consideration of Matters in Closed Session

Recommendation In accordance with Section s.239 (2) (f) of the Municipal Act, 2001, Council to convene in Closed Session to consider the following subject matters:

1. Advice that is subject to solicitor-client privilege, including communications necessary for that purpose (Regional Official Plan Amendment #2); and,

2. Advice that is subject to solicitor-client privilege, including communications necessary for that purpose (Litigation Matter)

Council to Rise from Closed Session

Recommendation

THAT Council rise from closed session and reconvene in open session.

Consent Procedure

THAT all items listed under the heading of Consent Procedure for Tuesday, September 22, 2020, Council Agenda be adopted as recommended.

Items #

1. Special Council Minutes – September 8, 2020

Note: Council Members, if you wish an item to be pulled from the Consent Procedure, please notify the City Clerk so the item can be listed on the Other Business Memo for tonight’s meeting to be dealt with separately by Council. You will also have the opportunity to pull an item at the Meeting.

Minutes of Previous Meetings

1. Special Council Minutes – September 8, 2020 PP. 1-9

Recommendation

THAT the minutes from the Special Council meeting held on September 8, 2020 be approved. Consideration of Reports

Corporate Enterprise

2. Design Study Application to Support Residential Retrofit Loan Program PP. 10-14

Recommendation

THAT Council receive this report as information regarding the City of Cambridge’s participation in a Regional collaborative application to the Community Efficiency Financing program delivered through the Federation of Canadian Municipalities (FCM);

AND THAT City staff will report back to Council with the results of the study and recommendations of implementing the proposed program.

Community Development

3. City of Cambridge and Region of Waterloo Master Sidewalk Patio Agreement PP. 15-19

Recommendation

THAT Report 20-206 (CD), City of Cambridge and Region of Waterloo Master Sidewalk Patio Agreement, be received;

AND THAT the Mayor and the Clerk be authorized to execute a Master Sidewalk Patio Agreement to the satisfaction of the City Solicitor.

4. River Road Neighbourhood – Interim Control By-law Extension PP.20-37

Recommendation

THAT Council receives report 20-187(CD) for information;

AND THAT as previously directed by Council to apply an Interim Control By-law in order to complete a study of the River Rd. area, By-law 19-100 for the River Road area be amended to allow for the extension of the by-law until June 18, 2021 and for the inclusion of 240 McMeeken Drive in the study area. AND FURTHER THAT By-law 20-XXX be passed.

5. Temporary Use By-law – Restaurant Patios PP. 38-54

Recommendation

THAT report 20-186(CD) be received;

AND THAT Cambridge Council approves the City initiated temporary use by-law to permit restaurant patios as attached to report 20-186(CD) for a period of three years ending on September 22, 2023;

AND FURTHER THAT the Temporary Use By-law attached to report 20-186(CD) be passed.

6. SmartCentres’ Request for a Minister’s Zoning Order for 18-60 Pinebush PP. 55-76

Road, Cambridge

Recommendation

THAT Report 20-204(CD) SmartCentres’ Request for a Minister’s Zoning Order for 18

-60 Pinebush Road, Cambridge be received;

AND THAT Council supports the application of a Minister's Zoning Order as requested by

SmartCentres for a high density, mixed use, transit-oriented development on the lands

located at the southeast corner of Hespeler Road and Highway 401;

AND THAT Council direct City staff to work with SmartCentres and the Minister’s office in

the preparation of the Minister’s Zoning Order to implement this resolution, generally in

accordance with the draft Minister’s Zoning Order as attached to Report 20-204(CD);

AND FURTHER THAT Council direct City staff to work with SmartCentres to implement

the Minister’s Zoning Order through future Planning Act applications, including but not

limited to: Site Plan Approval; Draft Plan of Subdivision; and, Draft Plan of

Condominium application. 7. Heritage Properties Register Changes PP. 77-83

Recommendation

THAT Report 20-210 (CD) – Heritage Properties Register Changes – be received;

AND THAT Council approves properties to be removed from, and added to, the Heritage Properties Register, in accordance with Part IV of the Heritage Act.

Corporate Services

8. Development Charge & Community Benefit Charge Legislation Update PP. 84-99

Recommendation

THAT Council approve the charging of interest pursuant to section 26.1 of the Development Charges Act, 1997 at an annual rate of Prime +2% for Development Charges that are deferred for rental housing that is not non-profit housing or institutional development, and at 0% for Development Charges that are deferred for non-profit housing developments;

AND THAT Council approve the charging of interest pursuant to Section 26.2 of the Development Charges Act, 1997 at an annual rate of Prime + 2% for Development Charges that are frozen prior to Building Permit issuance;

AND THAT Council authorize the City’s Chief Financial Officer to execute any agreements related to Development Charge Payment Agreements and Section 27 agreements for payment of development charges before or after payments would otherwise be made, in a legal form satisfactory to the City Solicitor and upon business terms satisfactory to the Chief Financial Officer;

AND FURTHER THAT Council approve the Development Charges Interest Policy attached in Appendix ‘A’. 9. P20-56 Aerial Fire Truck PP. 100-107

Recommendation

THAT Report 20-217(CRS) Aerial Fire Truck be received;

AND THAT Council approve a capital project budget of $1,430,000 to be funded from the Equipment Reserve Fund – Fire;

AND THAT Council approve the transfers to/from Reserve Funds as outlined in the Financial Impact section of this report;

AND FURTHER THAT Council approve the award of Proposal P20-56 Aerial Fire Truck to Commercial Truck Equipment Company of Delta, BC for the total cost of $1,090,415.14 in U.S. Funds, this being the only submission received.

Infrastructure Services

10. One-year Extension of Regional Maintenance Agreement PP. 108-162

Recommendation

THAT Council staff report 20-220(IFS) – One-year Extension of Regional Maintenance Agreement be received;

AND THAT the Mayor and Clerk be authorized to execute an additional one-year extension to the “Area Maintenance Agreement”, subject to the satisfaction of the City Solicitor, with the Regional Municipality of Waterloo, for the City of Cambridge to continue to provide summer and winter maintenance services on selected Regional Roads within the City of Cambridge for the period from January 1, 2021 to December 31, 2021, as outlined in this report.

City Manager

11. 1000 Black Bridge Road Property Acquisition PP. 163-168

Recommendation THAT Council authorize the purchase of the property municipally known as 1000 Black Bridge Road and legally described as PT LT 13 CON 4 BEASLEY’S LOWER BLK TWP OF WATERLOO; PT LT 1 BEASLEY’S MIDDLE BLOCK TWP OF WATERLOO (AKA BRICKER LT) PT 1 67R2686 EXCEPT PT 1 67R3015; CAMBRIDGE (the “Property”) in accordance with the terms and conditions set out in the Agreement of Purchase and Sale (the “Agreement”) at a total cost not to exceed $2,475,000 inclusive of all applicable taxes and ancillary costs;

AND THAT the Mayor and Clerk be authorized to execute all documentation required to implement and give effect to the adopted recommendations as set out in this report, subject to the satisfaction of the City Solicitor.

Unfinished Business

Notice of Motion

Motion

1. Councillor Reid – Respecting Diversity and Inclusion as provided in the September 8, 2020 Council Agenda

WHEREAS the City of Cambridge, as a provider of services and an employer, aspires to achieve an environment free of prohibited discrimination and harassment and to ensure respect for diversity and inclusion;

AND WHEREAS the City of Cambridge has adopted the Stronger Together: Diversity, Accessibility, and Inclusion Action Plan as of July 10, 2018, committing to respecting diversity and inclusion of all people,

BE IT RESOLVED THAT the City of Cambridge reaffirms its support of the Ontario Human Rights Code regarding the prohibition of discrimination and harassment based on social and economic status, disability (including mental health and addiction), and receipt of public assistance (in housing). Introduction and Consideration of By-laws

20-084 Being a by-law of the Corporation of the City of Cambridge to amend Schedule A of By-law 186-06, as amended, being a By-law to prohibit the parking or leaving of motor vehicles on private property without the consent of the owner or occupant of the property and on property owned or occupied by the Corporation of the City of Cambridge, or any local Board. (PRIVATE PROPERTY BY-LAW) – SCHEDULE “A” AMENDMENTS

20-085 Being a by-law of the City of Cambridge to amend Schedule A of By-law No. 185-06 designating private roadways as fire routes and to prohibit the parking of vehicles thereon. (FIRE ROUTE BY-LAW) – SCHEDULE “A” AMENDMENTS

20-086 Being a by-law of the Corporation of the City of Cambridge to amend Schedule B of By-law 184-06 to establish a system of disabled parking. (DISABLED PARKING BY-LAW) –SCHEDULE “B” AMENDMENTS

Confirmatory By-law

20-087 Being a by-law of the City of Cambridge to confirm the proceedings of the Council of the Corporation of the City of Cambridge at its meeting held on the 22th day of September, 2020.

PASSED AND ENACTED this 22th day of September, 2020.

Close of Meeting Item #1 MINUTES Corporation of the City of Cambridge Special Council Meeting No. 25-20

Tuesday, September 8, 2020 Virtual Meeting

Council Members in Attendance: Councillors Adshade (Ward 6); Devine (Ward 2); Ermeta (Ward 8); Mann (Ward 3); Reid (Ward 1); and Wolf (Ward 5) with Mayor McGarry in the Chair.

Regrets: Councillor Liggett (Ward 4)

Staff Members in Attendance: David Calder, City Manager; Dave Bush, Deputy City Manager – Corporate Services; Cheryl Zahnleiter, Deputy City Manager – Corporate Enterprise; Hardy Bromberg, Deputy City Manager – Community Development; Lisa Shields, City Solicitor; Susanne Hiller, Director of Communications; James Goodram, Director of Economic Development; Sheryl Ayres, Chief Financial Officer; Yogesh Shah, Director of Asset Management and PMO; Brooke Lambert, Director of Corporate Strategy; Shannon Noonan, Manager of Transportation Engineering; Trevor McWilliams, Manager of Business Development; Danielle Manton, City Clerk; Alexandra Rodic, Council Committee Services Coordinator; Briar Allison, Council Committee Services Coordinator.

Others in Attendance: Members of the general public are participating via Live Stream.

Meeting Called to Order

The meeting of the Council of the Corporation of the City of Cambridge is held virtually via Microsoft Zoom and live streamed to the City of Cambridge website. Mayor McGarry welcomes everyone present and calls the meeting to order at 4:04 p.m. and the meeting adjourns at 5:36 p.m.

Indigenous Territory Acknowledgement

Disclosure of Pecuniary Interest

There are no disclosures of pecuniary interest.

1 Consideration of Matters in Closed Session

Motion: 20-201 Moved By: Councillor Devine Seconded By: Councillor Adshade

In accordance with Section s.239 (2) (b) of the Municipal Act, 2001, Council to convene in Closed Session to consider the following subject matters:

1. Personal matters about an identifiable individual, including municipal employees (Confidential HR Matter)

CARRIED, on a recorded vote 7-0

In Favour: Councillor’s Adshade, Devine, Ermeta, Mann, Reid, Wolf and Mayor McGarry

Opposed: None

Council to Rise from Closed Session

Motion: 20-202 Moved By: Councillor Reid Seconded By: Councillor Wolf

THAT Council rise from closed session and reconvene in open session.

CARRIED, on a recorded vote 7-0

In Favour: Councillor’s Adshade, Devine, Ermeta, Mann, Reid, Wolf and Mayor McGarry

Opposed: None

Delegations

1. Christian Aagaard, Ink-stainedwretches.org, re: item 10 - Resolution of the Council of the City of Cambridge Supporting Local Journalism

Christian Aagaard participated electronically to speak to the Resolution of the Council of the City of Cambridge Supporting Local Journalism report.

2 See item #10 – Resolution 20-207

Consent Procedure

Motion: 20-203 Moved By: Councillor Mann Seconded By: Councillor Devine

THAT all items listed under the heading of Consent Procedure for Tuesday, September 8, 2020, Council Agenda be adopted as recommended.

Items #

1. Special Council Minutes – August 25, 2020

THAT the minutes from the Special Council meeting held on August 25, 2020 be approved.

2. Committee of Adjustment Minutes – July 22, 2020

THAT the minutes from the Committee of Adjustment meeting held on July 22, 2020 be approved.

3. Council Information Package (CIP) – August 7, 2020

THAT the Council Information Package (CIP) – August 7, 2020 be received for information.

7. Riverside Dam - Resuming Detailed Design

THAT Report 20-200(CD), Riverside Dam – Resuming Detailed Design, be received;

AND THAT Capital Project A/00024-20 Riverside Dam Detailed Design be approved to resume.

8. 2020 Implementation Plan for the Regional Transit Supportive Strategy – Cambridge

3 THAT Report 20-170 (CD), 2020 Implementation Plan for the Regional Transit Supportive Strategy - Cambridge, be received for information.

9. Approval of the Amended Grand River Source Protection Plan

THAT Report No. 20-194(CD) re: Approval of the Amended Grand River Source Protection Plan be received as information.

11. Council Information Package (CIP) – September 4, 2020 THAT the Council Information Package (CIP) – September 4, 2020 be received for information.

CARRIED, on a recorded vote 7-0

In Favour: Councillor’s Adshade, Devine, Ermeta, Mann, Reid, Wolf and Mayor McGarry

Opposed: None

Corporate Enterprise

4. Strategic Plan 2020-2023 Phase 2 Council Workshop

Motion: 20-204 Moved By: Councillor Ermeta Seconded By: Councillor Mann

THAT Report 20-211(CRE) re: Strategic Plan 2020-2023 Phase 2 Council Workshop be received; and

AND THAT Council direct the City Clerk to schedule a Council Workshop for Phase 2, to be held virtually, between the dates of September 28th and October 2nd, 2020.

CARRIED, on a recorded vote 7-0

In Favour: Councillor’s Adshade, Devine, Ermeta, Mann, Reid, Wolf and Mayor McGarry

Opposed: None

4

5. Core Areas Transformation Fund (CATF) Community Improvement Plan

Motion: 20-205 Moved By: Councillor Devine Seconded By: Councillor Reid

THAT Report 20-083 (CRE), Core Areas Transformation Fund (CATF) Community Improvement Plan regarding the process for implementing a Community Improvement Plan for Financial Incentives be received;

AND THAT Council pass the attached By-law designating the identified Core Areas as community improvement project areas;

AND THAT City staff prepare a draft community improvement plan for public consultation and input;

AND THAT the current Core Area incentives continue until the implementation of the new Core Area incentives arising out of this community improvement plan process;

AND FURTHER THAT City staff prepare a future report to Council about the recommended community improvement plan and public input received.

CARRIED, on a recorded vote 7-0

In Favour: Councillor’s Adshade, Devine, Ermeta, Mann, Reid, Wolf and Mayor McGarry

Opposed: None

6. Request to Amend Development Covenants and Restrictions for the Time for Development – Boxwood Business Campus

Motion: 20-206 Moved By: Councillor Wolf Seconded By: Councillor Ermeta

5 THAT report 20-192(CRE), re: Request to Amend Development Covenants and Restrictions for the Time for Development - Boxwood Business Campus be received;

AND THAT Council authorize the Mayor and Clerk to execute documentation to amend the Development Covenants and Restrictions to allow for a one (1) year extension to the construction start date AND a one (1) year extension to the substantial completion date, without penalties, to be granted to businesses/developers noted in Attachment 1 to this report, subject to the satisfaction of the City Solicitor.

CARRIED, on a recorded vote 7-0 In Favour: Councillor’s Adshade, Devine, Ermeta, Mann, Reid, Wolf and Mayor McGarry

Opposed: None

Corporate Services

10. Resolution of the Council of the City of Cambridge Supporting Local Journalism

Motion: 20-207 Moved By: Councillor Mann Seconded By: Councillor Devine

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 roughly 2,000 media workers in 100 communities across due to layoffs in only six weeks from the time the COVID-19 pandemic began — 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;

6

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 thirds of Canadians agree or somewhat agree that because of the Coronavirus/Covid-19 outbreak the federal government should treat widespread media bankruptcies and lay-offs as an emergency, 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 Cambridge Council

1. recognizes that a healthy, professional news media is essential to the proper functioning of democracy in our city;

2. urges nearby municipal councils and across Canada to recognize that a robust news media is essential to the proper functioning of democracy in their jurisdictions;

3. endorses legislation and regulations to support and rejuvenate news outlets across Canada;

4. urges the federal government to move quickly to pass legislation to ensure an ecosystem for a healthy news media to serve all Canadians; and,

5. that the resolution be forwarded to the area municipalities, local M.P.s and M.P.P.s and the Federation of Canadian Municipalities and Association of Municipalities of Ontario.

7 CARRIED, on a recorded vote 7-0

In Favour: Councillor’s Adshade, Devine, Ermeta, Mann, Reid, Wolf and Mayor McGarry

Opposed: None

Unfinished Business

Correspondence

Notice of Motion

1. Councillor Reid – Respecting Diversity and Inclusion

[Motion to be considered at the September 22, 2020 Council Meeting]

Whereas the City of Cambridge, as a provider of services and an employer, aspires to achieve an environment free of prohibited discrimination and harassment and to ensure respect for diversity and inclusion;

And Whereas the City of Cambridge has adopted the Stronger Together: Diversity, Accessibility, and Inclusion Action Plan as of July 10, 2018, committing to respecting diversity and inclusion of all people,

Be it resolved that the City of Cambridge reaffirms its support of the Ontario Human Rights Code regarding the prohibition of discrimination and harassment based on social and economic status, disability (including mental health and addiction), and receipt of public assistance (in housing).

Introduction and Consideration of By-laws

Motion: 20-208 Moved By: Councillor Ermeta Seconded By: Councillor Wolf

20-082 Being a by-law of the City of Cambridge to dedicate certain lands as public highway [Allendale Road].

8 CARRIED, on a recorded vote 7-0

In Favour: Councillor’s Adshade, Devine, Ermeta, Mann, Reid, Wolf and Mayor McGarry

Opposed: None

Confirmatory By-law

Motion: 20-209 Moved By: Councillor Reid Seconded By: Councillor Ermeta

20-083 Being a by-law of the City of Cambridge to confirm the proceedings of the Council of the Corporation of the City of Cambridge at its meeting held on the 8th day of September, 2020.

PASSED AND ENACTED this 8th day of September, 2020.

CARRIED, on a recorded vote 7-0

In Favour: Councillor’s Adshade, Devine, Ermeta, Mann, Reid, Wolf and Mayor McGarry

Opposed: None

Close of Meeting

Motion: 20-210 Moved By: Councillor Mann Seconded By: Councillor Wolf

THAT the Special Council meeting does now adjourn at 5:36 p.m.

CARRIED, on a recorded vote 7-0

In Favour: Councillor’s Adshade, Devine, Ermeta, Mann, Reid, Wolf and Mayor McGarry

Opposed: None

9 Item #2

To: COUNCIL

Meeting Date: 09/22/2020

Subject: Design Study Application to Support Residential Retrofit Loan Program

Submitted By: Cheryl Zahnleiter, Deputy City Manager

Prepared By: Lisa Keys, Manager of Facilities

Report No.: 20-205(CRE)

File No.: N/A

Recommendation(s)

THAT Council receive this report as information regarding the City of Cambridge’s participation in a Regional collaborative application to the Community Efficiency Financing program delivered through the Federation of Canadian Municipalities (FCM).

AND THAT City staff will report back to Council with the results of the study and recommendations of implementing the proposed program.

Executive Summary

Purpose

The Federation of Canadian Municipalities (FCM) announced a funding opportunity through the Community Efficiency Program that would provide innovative financing opportunities for residential energy projects.

The City of Cambridge, as a partner in the Community Energy Investment Strategy, will enter into a collaborative application for funding to complete a design study that will conduct market intelligence and research to assess the local feasibility of the program. Successful completion of this study is required to be eligible for future funding opportunities.

Key Findings

This funding opportunity has a number of key benefits, including:

- Reduce Greenhouse Gas (GHG) emissions, ultimately supporting City’s goal of 80% emission reduction by 2050,

10 - Create energy savings and contribute to climate adaptation and water conservation,

- Improve housing affordability, and

- Increase home comfort and quality of life for residents Financial Implications

Under the initial round of funding, a grant will offer up to 80 per cent of the cost of a design study (up to $175,000) and Regional partners are required to contribute the remaining 20 per cent of the cost. The City of Cambridge will be responsible to pay up to $5,000 toward the Regional partners share of roughly $35,000 to match the funding provided by FCM for the study, if funding is secured.

This amount was not anticipated in the 2020 budget however, it will be covered through utilities savings in the Facilities Maintenance operating budget as a result of limited use in City facilities in the past six months.

Background

The City of Cambridge, as a committed partner in the regional effort to enhance sustainability within the community, continuously works with local partners to find innovative solutions to reduce greenhouse gases emissions.

Through the Community Energy Investment Strategy, the FCM has created a $300M grant program for municipalities to administer conventional Local Improvement Charges. There are two rounds of funding available. The first can be used to cover up to 80 per cent of the cost of a design study (up to $175,000). Applications for this round of funding must be completed in September of 2020. Completion of the design study is an eligibility requirement for the second round of funding.

A collaborative working group facilitated through the Community Energy Investment Strategy has been formed to explore the development of a local program, comprised of staff from the three cities, the Region, local natural gas and electric utilities, ClimateActionWR, WR Community Energy, and Reep Green Solutions (Reep).

Analysis

Strategic Alignment

PEOPLE To actively engage, inform and create opportunities for people to participate in community building – making Cambridge a better place to live, work, play and learn for all.

11 Goal #6 - Economic Development and Tourism

Objective 6.3 Identify local economic strengths and leverage opportunities through collaboration with our partners.

The City of Cambridge has committed to achieving an 80% reduction of greenhouse gas emissions by 2050. This project not only represents an opportunity to help meet our reduction targets, it also supports local economic recovery efforts through engaging local company, creating local jobs and developing future funding opportunities that our residents will benefit from.

Comments

FCM Funding Opportunity

The Federation of Canadian Municipalities is currently offering funding through the Green Municipal Fund’s Community Efficiency Financing program; a $300 million initiative to support the creation of Local Improvement Charges (LIC)/Property Assessed Clean Energy (PACE), utility on-bill financing programs, or programs that provide third party financing for residential homeowners to complete energy projects.

There are two rounds of funding available. Current funding can be used to cover up to 80 per cent of the cost of a study to design the program (up to $175,000). An upcoming funding stream that launches in January of 2021 will finance up to 80 per cent of the cost to capitalize an LIC/PACE or on-bill financing program over four years, which will provide up to $10 million in loans and/or grants. There is also funding for up to $2 million in loan loss protection for public or private financing. The program also provides non-financial support for funding recipients.

Design Study

An eligibility requirement for the funding opportunity requires the completion of a design study. The purpose of the study is to measure the viability of this type of program through research of local demographics and the scope includes utility on-bill financing and third party lending.

Local Improvement Charges (LICs) for Clean Energy

A municipality can offer an LIC program to its residents for innovative clean energy solutions. In practice, this means that a property owner could apply to the City for a loan to undertake initiatives such as the installation of solar panels, geothermal systems, or rainwater harvesting. These loans are beneficial and are subsequently paid back either through the local distribution electrical bill, or property taxes, depending upon the framework. The advantage to the property owner is providing financing options for home improvements that will increase housing affordability, home comfort and quality of life.

12 Next Steps

A collaborative working group facilitated through the Community Energy Investment Strategy has been formed to explore the development of a local program, comprised of staff from the three cities, the Region, local natural gas and electric utilities, ClimateActionWR, WR Community Energy, and Reep Green Solutions (Reep).

WR Community Energy and Reep are currently leading project management at this stage of the project. This group is working to prepare a feasibility study, and to apply for FCM funding for a full program design study. To meet FCM’s eligibility requirements to apply for study design funding, the Region of Waterloo will formally support a resolution for the collaborative application. The deadline for the application is September 2020.

City staff would report back to Council once the project design study is complete with recommendations with respect to program implementation.

Existing Policy/By-Law

There is no existing policy/by-law.

Financial Impact

FCM offers grants of up to $175,000 or 80% of the cost of the study and Regional partners are required to contribute the remaining 20% of the cost. The City of Cambridge will be responsible to pay up to $5,000 toward the Regional partners share of roughly $35,000 to match the funding provided by FCM for the study, if funding is secured.

This amount was not anticipated in the 2020 budget however, it will be covered through utilities savings in the Facilities Maintenance operating budget as a result of limited use in City facilities in the past six months.

Public Input

Posted publicly as part of the report process.

Internal/External Consultation

City staff consulted with Legal to confirm the authority of offering LIC’s under the Municipal Act. Finance was informed of the potential opportunities.

Conclusion

The Community Efficiency Financing Program offered through FCM represents opportunities for local homeowners to support sustainability initiatives through innovative financing options.

13 As a design study is required to be eligible for further funding opportunities, the City of Cambridge, in collaboration with Regional partners, will be submitting an application for funding to support the study.

Signature

Division Approval

N/A

Name: Title:

Departmental Approval

Name: Cheryl Zahnleiter Title: Deputy City Manager Corporate Enterprise

City Manager Approval

Name: David Calder Title: City Manager

Attachments

• n/a

14 Item #3

To: COUNCIL

Meeting Date: 09/22/2020

Subject: City of Cambridge and Region of Waterloo Master Sidewalk Patio Agreement

Submitted By: Sarah Austin, Acting City Engineer

Prepared By: Dennis Lopes, Senior Civil Engineering Technologist

Report No.: 20-206(CD)

File No.: C1101

Recommendations

THAT Report 20-206 (CD), City of Cambridge and Region of Waterloo Master Sidewalk Patio Agreement, be received;

AND THAT the Mayor and the Clerk be authorized to execute a Master Sidewalk Patio Agreement to the satisfaction of the City Solicitor.

Executive Summary

Purpose

• In June 2020, as part of Stage 2 of the Province’s Reopening Plan that allowed patio use, the Region of Waterloo requested the City of Cambridge enter into a temporary Master Sidewalk Patio Agreement to allow the City to review and approve temporary patios on Regional Road allowances.

• Subsequently, the Region has requested the City enter into a permanent Master Sidewalk Patio agreement to operate the City’s Sidewalk Patio Permit program on Regional Roads.

• Council approval is required to execute the Master Sidewalk Patio Agreement.

Key Findings

• A Master Sidewalk Patio Agreement between the Region of Waterloo and City of Cambridge defines the roles and responsibilities of the City of Cambridge in coordinating the City’s Sidewalk Patio Permit program for the review and approval of patios on the untraveled portion of a Regional road allowance.

15 • The objective of the Master Sidewalk Patio Agreement is to streamline and facilitate the timely review and approval for the temporary extension of private patios or the creation of new private patios on the untraveled portion of the road allowances on Regional Roads.

• As per the City Sidewalk Terrace Patio By-law, restaurants, bars or other similar establishments are required to obtain a Sidewalk Terrace Patio Permit to establish, maintain and operate a café/patio in conjunction with the operation of the restaurant on a portion of the City boulevard and/or sidewalk.

• Sidewalk Terrace Patios are permitted from March 15th to October 31st of each year.

• The Cities of Cambridge, Kitchener and Waterloo and area Townships have been involved in the development of the Regional Master Sidewalk Patio Agreement.

Financial Implications

• There are no financial implications and administration of the City’s Sidewalk Patio Permit program on Regional roads will be administered using existing staff resources.

Background

The world-wide pandemic caused by COVID-19 has necessitated the Province of Ontario to issue emergency orders to close many businesses and enact operating restrictions for essential services. These unprecedented measures are necessary to protect the health, well-being and safety of Ontarians.

While the City’s and the Region’s local economy is diverse and strong, it is not immune to significant impacts caused by prolonged closures and operating restrictions. City of Cambridge’ businesses are committed to doing their part to fight COVID-19.

In June 2020, Waterloo Region entered Stage 2 of the Province's Reopening Plan, allowing certain businesses and services to reopen with proper health and safety measures in place, including outdoor dine-in services at restaurants, bars and other establishments, including patios, curbside, parking lots and adjacent properties.

The Province also amended Ontario Regulation 719 under the Liquor Licence Act to enable licensed establishments to temporarily increase the size of their patios or add a new patio without AGCO approval for the temporary extension of premises or payment of any fee until January 1, 2021, provided that the municipality supports the patio/patio expansion and all other applicable requirements are met.

16 Through the City’s Sidewalk Terrace Patio program, the City was able to quickly review and approve applications for temporary patios on City road allowances; however, approval for temporary patios on Regional road allowances required application to the Region of Waterloo.

In June 2020, the Region of Waterloo Economic Development and Transportation Departments requested the City of Cambridge enter into a Master Sidewalk Patio Agreement to administer the City’s Sidewalk Terrace Patio program on Regional Road allowances.

Analysis

Strategic Alignment

PROSPERITY: To support and encourage the growth of a highly competitive local economy where there is opportunity for everyone to contribute and succeed.

Goal #6 - Economic Development and Tourism

Objective 6.2 Promote vibrant and inviting downtown cores by encouraging partnerships and creating a wide range of unique, exciting destinations and activities.

This report aligns with Objective 6.2 as staff has been working collaboratively with the Region of Waterloo to create a sidewalk patio program to encourage local restaurants and bars to implement outdoor sidewalk patios to create a vibrant and inviting downtown core.

Comments

The objective of the Master Sidewalk Patio Agreement is to streamline and facilitate the timely review and approval for the temporary extension of patios or the creation of new patios on the untraveled portion of the road allowances on Regional Roads.

To achieve this objective, the Master Sidewalk Patio Agreement incorporates the following principles:

• Delegating authority to City of Cambridge Manager of Transportation to approve permits to enable an efficient approval process;

• Maintaining municipal objectives related to emergency response, tree protection, site landscaping and engineering, safety and land use compatibility;

• Incorporate the Region of Waterloo Temporary On-Street Patio/Pop-Up Guidelines on Regionally owned land (roads), which will form the basis for patio approvals to be administered by the City of Cambridge.

17 The initial request from the Region of Waterloo was to create a temporary Master Sidewalk Patio Agreement to expedite the temporary measures allowed as part of Stage 2 of the Province's Reopening Plan to help restaurants, bars and other establishments affected by COVID-19. However, through discussions with the Region, Cities of Cambridge, Kitchener, Waterloo and area Townships it was decided to create a permanent Master Sidewalk Patio Agreement for lower tier municipalities to facilitate the timely review and approval for sidewalk terrace patios on Regional roads.

City staff are supportive of the execution of this agreement, as it provides a consistent process for all patios within the City, regardless of whether they are located on a City or Region road.

Existing Policy/By-Law

As per Sidewalk Terrace Patio By-law 110-09, restaurants, bars or other similar establishments are required to obtain a Sidewalk Terrace Patio Permit to establish, maintain and operate a café/patio in conjunction with the operation of the restaurant on a portion of the boulevard and/or sidewalk from March 15th to October 31st of each year.

Financial Impact

There is no financial impact and administration of the City’s Sidewalk Patio Permit program on Regional roads will be administered using existing staff resources.

Public Input

Posted publicly as part of the report process.

Internal/External Consultation

The Master Sidewalk Patio Agreement has been developed by the Region and City Transportation staff in consultation with Legal Services staff from both municipalities.

The Cities of Cambridge, Kitchener, Waterloo and area Townships have been involved in the development of the Regional Master Sidewalk Patio Agreement.

Conclusion

A Master Sidewalk Patio Agreement between the Region of Waterloo and City of Cambridge would allow the City to administer the City’s Sidewalk Patio Permit program to review and approve temporary or new patios on the untraveled portion of Regional road allowances.

Council approval is required for execution of the agreement.

18 The execution of a Master Sidewalk Patio Agreement will help local restaurants, bars or other similar establishments in the core areas create a vibrant and inviting downtown core for patrons and contribute to the local economy.

Signature

Division Approval

Name: Sarah Austin Title: Acting City Engineer

Departmental Approval

Name: Hardy Bromberg Title: Deputy City Manager, Community Development

City Manager Approval

Name: David Calder Title: City Manager

Attachments

• N/A

19 Item #4

To: COUNCIL

Meeting Date: 09/22/2020

Subject: River Road Neighbourhood – Interim Control By-law Extension

Submitted By: Elaine Brunn Shaw, Chief Planner, MCIP, RPP

Prepared By: Bryan Cooper, Senior Planner, MCIP, RPP

Report No.: 20-187(CD)

File No.: D.14.02.04

Recommendations

THAT Council receives report 20-187(CD) for information.

AND THAT as previously directed by Council to apply an Interim Control By-law in order to complete a study of the River Rd. area, By-law 19-100 for the River Road area be amended to allow for the extension of the by-law until June 18, 2021 and for the inclusion of 240 McMeeken Drive in the study area.

AND FURTHER THAT By-law 20-XXX be passed.

Executive Summary

Purpose

• The purpose of this report is to extend interim control by-law 19-100 until June 18, 2021 and to include 240 McMeeken Drive as part of the study area in by-law 19-100.

• This property was inadvertently excluded during the initial enactment of by- law 19-100 but is within the study area for the River Rd. Secondary Plan.

Key Findings

• The River Road Neighbourhood interim control by-law is set to expire September 23, 2020.

20 • The Planning Act enables Council to extend an interim control by-law for a period of one year. Due to the COVID 19 state of emergency, the interim control by-law expiry date has been extended until September 23 2020 due to Ontario Reg 149/20 and Ontario Reg 278/20 under the Planning Act. This means that the by-law may be extended until September 23, 2021; however, staff is recommending that the by-law only be extended until June 18, 2021 since it is believed that the River Rd. Secondary Plan will be completed by that date.

• The interim control by-law was passed in order for the completion of a land use and servicing study for the River Rd. neighbourhood (Secondary Plan).

• The City is making progress on completing the study for the River Rd. Secondary Plan. Due to the COVID-19 pandemic, public consultation has been limited. The City and consultant have continued to work on refining different land use options to be presented at a public information centre in October 2020.

• One additional property (240 McMeeken Dr.) was not included in the initial interim control by-law.

Financial Implications

• A total of $100,000 was allocated for the completion of the Secondary Plan. The City has retained Fotenn Planning & Design to lead the preparation of the Secondary Plan. The project is currently on budget and is anticipated to be completed within the budget allocation.

Background

In recent years the River Rd. neighbourhood has seen growth pressure through infill redevelopment of existing large residential lots. The City’s Official Plan identifies the area for urban development; however, the area is predominantly rural with limited municipal infrastructure to support the development intended by the Official Plan. Through the consultation process on site specific development applications the City has heard concerns that new infill development needs to be considerate of the surrounding rural and lower density land uses and that the infrastructure (sanitary services, transportation etc.) needs to be properly planned to accommodate new growth.

In response to these concerns, City Council enacted interim control by-law 19-100 on June 19, 2019. The purpose of the interim control by-law is to temporarily “freeze” development permissions within the study area while the City completes a

21 land use and servicing study (hereinafter referred to the as the River Rd Secondary Plan). Staff at that time recommended that a study be completed for the area, but that an interim control by-law was not warranted. Council’s direction in 2019 was for the enactment of an interim control by-law for the period of time it took for the completion of the land use and servicing study. The study is not complete and on this basis this report recommends that the interim control by-law be extended until June 18, 2021. Staff’s objective is to complete the Secondary Plan as soon as possible and it is expected that the Secondary Plan will be complete in advance of June 18, 2021 at which point the interim control by-law would be recommended to be repealed.

Analysis

Strategic Alignment

PEOPLE To actively engage, inform and create opportunities for people to participate in community building – making Cambridge a better place to live, work, play and learn for all.

Goal #1 - Community Wellbeing

Objective 1.4 Promote, facilitate and participate in the development of affordable, welcoming and vibrant neighbourhoods.

The interim control by-law will result in the preparation of a Secondary Plan for the River Road neighbourhood and will assist in planning for the orderly development of this area of the City.

Comments

In the fall of 2019 the City retained Fotenn Planning & Design and a team of sub- consultants to prepare the River Rd. Secondary Plan. On February 19, 2019 the first public open house was held for the study. Approximately 50 people were in attendance and a number of comments were received. Comments received included:

• Keeping the rural nature of River Rd.

• Concerns about adding new vehicular connections to River Rd. and increased traffic.

• Preserving the existing low density character of the area including single detached building forms.

22 On March 17, 2020 the Province of Ontario declared a state of emergency due the COVID-19 pandemic. This resulted in limitations on public consultation. Although public consultation has been restricted City staff and the consulting team have continued to work on emerging land use options for the River Rd. Secondary Plan. A second online format public open house is scheduled for October 2020. The purpose of this open house will be to present potential development scenarios for the River Rd. secondary plan to landowners, members of the public and development industry. Staff and the consultant will take the information received at the second open house in order to prepare the formal amendment to the City’s Official Plan, which will be presented to the Special Council or Planning and Development Committee at a statutory public meeting later in 2020.

Attachment No.3 is a work plan for next steps. This work plan shows what is believed to be the maximum time it will take to complete the study and secondary plan. Planning staff’s objective is to complete the secondary plan in early 2021.

Through the review of the Secondary Plan boundaries it was determined that a property (240 McMeeken Dr.) that should be included in the study was inadvertently excluded during the preparation of the initial interim control by-law in 2019. Therefore, in addition to the By-law to extend the period of time interim control by-law 19-100 is in effect, staff is also recommending that the by-law be amended to include this property.

Based on the Planning Act, an interim control by-law can be in effect for a period of one year from the date of passage of the by-law. The Planning Act allows the extension of an interim control by-law provided that the total period of time the by- law is in effect does not exceed two years from the date of passage. The River Rd. interim control by-law was passed on June 19, 2020 and under normal circumstances the maximum period of time that it could be in effect (with an extension) would be June 19, 2021. Due to the COVID-19 pandemic, legislation was passed which allowed for the extension of the period that an interim control by-law can be in effect. The result of this legislation change is that the expiration date of the River Rd. interim control by-law is September 23, 2020. Therefore the interim control by-law can be extended a full one year from this date (until September 23, 2021). The period of time of the emergency does not count towards the one year (and total two year) time frames that an Interim Control By-law can be in effect. Although the interim control by-law can be extended until September 23, 2021, staff is recommending that it only be extended until June 18, 2021. At this time, it is expected that the Secondary Plan will be completed in advance of this date, at which point the interim control by-law would be recommended to be repealed.

23 An extension of an interim control by-law may be appealed to the Local Planning Appeal Tribunal (LPAT).

Once an interim control by-law has expired, Council cannot pass another interim control by-law for the same area for three years.

Existing Policy/By-Law

Official Plan:

The River Road neighbourhood is designated as “Low/Medium Density Residential” in the City of Cambridge Official Plan. This land use designation permits single detached, townhouses and/or walk up apartments up to a maximum density of 40 units per hectare.

Zoning By-law 150-85:

The area is primarily zoned (H)R4” - Holding – Residential 4 and R2 – Residential 2. The Holding provision restricts development until servicing is provided. R2 permits large lot single detached residential.

Financial Impact

A total of $100,000 was allocated for the completion of the Secondary Plan. The City has retained Fotenn Planning & Design to lead the preparation of the Secondary Plan. The project is on budget and is anticipated to be completed within the allocated budget.

Internal/External Consultation

The Secondary Plan is being led by Development Engineering staff in consultation with City Planning and Transportation staff. The City has circulated material for the study to the Region of Waterloo and Grand River Conservation Authority (GRCA) for comment.

Development Engineering and Legal Services have been consulted in the preparation of this report.

Conclusion

This report recommends that interim control by-law 19-100 be extended until June 18, 2021 and amended to include 240 McMeeken Dr.

24 This recommendation also aligns with the City’s Strategic Plan by resulting in the preparation of a Secondary Plan for the River Road neighbourhood and will assist in planning for the orderly development of this area of the City.

Signature

Division Approval

Name: Elaine Brunn Shaw Title: Chief Planner

Departmental Approval

Name: Hardy Bromberg Title: Deputy City Manager, Community Development

City Manager Approval

Name: David Calder Title: City Manager

Attachments

Attachment No. 1 - By-law 20-XXX, amending By-law 19-100

Attachment No. 2 – Work Plan for the Interim Control By-law Extension

Attachment No. 3 - Terms of Reference for study

25 Attachment No. 1 THE CORPORATION OF THE CITY OF CAMBRIDGE

BY-LAW NUMBER 20-XXX

Being a by-law to amend Interim Control By-law 19-100

WHEREAS the Council for the Corporation of the City of Cambridge has passed a resolution directing that a study be undertaken in respect of the land use planning policies and regulations affecting the lands zoned residential on the north and south side of River Rd between the Hespeler Woodlot and Townline Dr, more particularly identified on Schedule ‘A’ to this By-law;

AND WHEREAS Section 38 of the Planning Act, RSO, 1990, c.P.13, as amended, grants a municipality the authority to pass an interim control by-law;

AND WHEREAS the Council for the Corporation of the City of Cambridge has deemed it necessary and expedient to pass such a by-law;

NOW THEREFORE BE IT ENACTED BY THE COUNCIL FOR THE CORPORATION OF THE CITY OF CAMBRIDGE AS FOLLOWS:

1. Section 7 of By-law 19-100 is deleted and replaced with the following:

7. This By-law shall come into force and take effect immediately upon the final passing thereof by Council and shall be in effect until 11:59 p.m. local time on June 18th 2021, unless otherwise extended in accordance with the provisions of the Planning Act, RSO, 1990, c.P.13, as amended.

2. That Schedule “A” of bylaw 19-100 is deleted and replaced with the attached Schedule “A” which includes the 240 McMeeken Drive property as part of the study area.

READ A FIRST, SECOND AND THIRD TIME and finally passed this 22nd day of September, 2020.

______

Mayor

______

Clerk

26

27 Attachment No. 2 – Work Plan for the Interim Control By-law Extension

Step Sept Oct Nov Dec Jan Feb Mar April May June

1. Extension of Interim Control By-law and interim control by-law for 240 McMeeken 2. Public Information Centre No. 2

3. Development of preferred land use option; completion of transportation, servicing and water assessments; preparation of draft secondary plan and zoning by-law amendment

4. Statutory Public Meeting for final secondary plan, official plan amendment and zoning by-law amendment and presentation to Planning and Development Committee/Council

5. Recommendation report for secondary plan, official plan amendment and zoning by-law amendment

28 Attachment No. 3 – Terms of Reference for study (Received as Information by Cambridge Council on July 16, 2019) River Road Neighbourhood – Planning Study Terms of Reference

Purpose

The River Road area is a rural neighbourhood within the Hespeler community. The main road that serves this area is River Rd, which has a rural cross section without sidewalks and municipal services. Land uses are single detached residential and most homes are on large lots. Although the area is currently described as rural, it is designated for urban development within the 2012 City of Cambridge Official Plan under the “Low/Medium Density Residential” land use designation. This designation permits single detached, townhouses and walk up apartment buildings to a maximum density of 40 units per hectare which is a much higher density form of development than what currently exists in this part of the City.

In 2018, the City received a development application for 340, 352 and 360 River Rd for a proposed 54 unit townhouse development (File R10/18). This application is currently in process with significant public consultation already occurring to date. Through the public process and feedback received on this application, City staff have heard that there is a general concern that new development within this area of the City needs to be considerate of the surrounding low density land uses and that the infrastructure for the area needs to be properly planned to accommodate new development. The purpose of this planning study is to evaluate the applicable land use planning policies and zoning regulations which are appropriate for this area.

This planning study will be undertaken in house by City staff, in conjunction with a consultant-led Master Environmental Servicing Plan (MESP) to assess servicing options for this neighbourhood. The Municipal Class Environmental Assessment (MCEA) process will be used to determine a preferred servicing strategy and would include an assessment of transportation, sanitary and water servicing, stormwater management, transportation (including active transportation such as trail connections), the natural and built environment and other considerations. A separate term of reference has been prepared for the MESP.

The City has passed an interim control by-law # 19-100 in accordance with Section 38 of the Planning Act to freeze the use of land within parts of the River

29 River Road Neighbourhood

Master Environmental Servicing Plan Terms of Reference

1.0 Introduction

The City of Cambridge is seeking consulting services to undertake the River Road Neighbourhood Master Environmental Servicing Plan (MESP). The objective of the project is to provide the necessary environmental, stormwater management, transportation, water and sanitary servicing planning to facilitate the development of the Study Area.

The River Road MESP is to be carried out in conformity with the Municipal Class Environmental Assessment (EA) process, specifically the Master Planning approach. The EA process is to be used to determine a preferred servicing strategy and is to assess sanitary and water servicing, stormwater management, transportation (including active transportation such as trail connections), the natural and built environment and other considerations.

2.0 Background

The River Road area is a rural neighbourhood within the Hespeler community. The main road that serves this area is River Road, which has a rural cross section without sidewalks and municipal services. Although the area is currently described as rural, it is designated for urban development within the 2012 City of Cambridge Official Plan under the “Low/Medium Density Residential” land use designation. This designation permits single detached, townhouses and walk up apartment buildings to a maximum density of 40 units per hectare which is a much higher density form of development than what currently exists in this part of the City.

In 2018, the City received a development application for 340, 352 and 360 River Rd for a proposed 54 unit townhouse development (File R10/18). This application is currently in process with significant public consultation already occurring to date. Through the public process and feedback received on this application, City Staff have heard that there is a general concern that new development within this area of the City and that the infrastructure for the area needs to be properly planned to accommodate new development.

A Planning Study will be undertaken in house by City Staff, in conjunction with the MESP to evaluate the applicable land use planning policies and zoning regulations which are appropriate for this area.

30 The City has passed an interim control by-law # 19-100 in accordance with Section 38 of the Planning Act to freeze the use of land within parts of the River Road Neighbourhood for a period of one year while the MESP and Planning Study is underway.

3.0 Study Area * with the addition of 240 McMeeken Dr.

Figure 1 – River Road Area

31 Objectives

The MESP is to develop and evaluate potential servicing alternatives for the River Road Neighbourhood and recommend a preferred servicing strategy to facilitate the development of Study Area. At a minimum, the MESP will meet the following objectives:

Servicing

Sanitary

Provide a sanitary servicing strategy for the Study Area which is to include:

Assessment of the current capacity of the River Road Sanitary Pumping Station and identification of available capacity for the study area

A feasibility analysis for extending gravity sewers to the limits of study area

Completion of preliminary design for the trunk sanitary sewers

Calculation of estimated flows from Development Lands

Identify of Sanitary Pumping Station upgrades if additional capacity is required to service the Study Area or identification of locations for additional pumping stations if the whole study area cannot be conveyed to the existing station

Water

Provide a water servicing strategy for the Study Area which is to include:

A primary water distribution concept plan, including water modeling

Completion of preliminary design for the extension of the existing 300mm diameter watermain on River Road to the northern limits of the Study Area

Stormwater Management

Development of a comprehensive stormwater strategy for the Study Area which is to include:

Development of stormwater management criteria (quality, quantity and erosion controls) for the Development Lands

A capacity analysis of the existing storm outlets to the River and identification of additional capacity for the study area.

32 Identification of preferred locations for stormwater management facilities, including recommendations regarding if the facilities should be municipal facilities or private on-site facilities

Identification of preferred outlets for new storm infrastructure

Identification of low impact development stormwater practices that can be implemented to maintain or enhance the quality, quantity and distribution of stormwater

Provide preliminary sizing of stormwater management ponds and trunk sewers within the Development Lands

Transportation

Plan and design the internal collector and local road system and identify connections to River Road and where municipal road connections should be made versus private condo roads within the existing subdivisions

Determine the transportation impact of the development lands according to the City’s Transportation Impact Study Guidelines

Identify any required upgrades to River Road including pedestrian and cycling facilities

Environment

Identify, describe and map all natural heritage features within the study area, including Natural Hazards and floodplain mapping

Identify protection, enhancement and restoration requirements, including buffers and setbacks, to protect natural heritage features and the ecological functions that sustain the biophysical integrity of the Study Area

Identify and protect existing and future vulnerable areas where municipal drinking water sources may be at risk

Financial Impacts

Provide preliminary servicing cost estimates for all municipal infrastructure identified in the preferred servicing strategy.

5.0 Consultation

Consultation will follow the EA process requirements including at a minimum, the issuance of a Notice of Commencement, a Public Information Centre and issuance

33 of the Notice of Study Completion. The MESP consultation is to be coordinated with River Road Neighbourhood Planning Study being undertaken by City Staff.

6.0 Project Team

The Consulting Team will be directed by a Project Manager from the City’s Development Engineering section, in consultation with Staff from Transportation Engineering, Public Works, Planning, Region of Waterloo and the Grand River Conservation Authority.

Road neighbourhood for a period of one year while this planning study is underway.

Objectives of the Review

The City’s existing Official Plan policies and Zoning By-law which that are applicable to the study area would be reviewed concurrent to the servicing review to determine the most appropriate policies and regulations for development in this area of the City.

Applicable draft zoning regulations currently proposed in the city-wide zoning by- law for the River Road neighbourhood will be further reviewed to determine if any additional or revised specific standards (for example, minimum lot area, setbacks, building heights, etc. that reflect the character of this neighbourhood) should be recommended .

Public consultation would be a key component to the study, and any proposed changes to the existing Official Plan and Zoning By-law would be subject to Council approval.

Study Process

The River Road Neighbourhood Planning Study will consist of the following steps:

Review of the current policies in the City of Cambridge 2012 Official Plan

Review current Provincial Policies, including the recently amended Provincial Growth Plan (2019)

Review of draft regulations in the proposed city-wide Zoning By-law for residential uses in this neighbourhood

Assessment of development options based upon the Master Environmental Servicing Plan and consider land use compatibility between existing land uses and future potential development in this neighbourhood

34 Public and agency consultation about potential options for addressing potential land use compatibility

Preliminary recommendations to Cambridge Council about options for addressing land use compatibility matters

Council consideration of recommendations from Planning Study and public meeting under Planning Act, if required

Key Participants

The Planning Study will be undertaken in house by City Planning staff in consultation with: Engineering; Building; Parks, Recreation and Culture; Region of Waterloo and Fire Department staff.

Public Participation

At the start of the Planning Study, notice of the passing of the interim control by- law and terms of reference for the Planning Study will be provided in the City page of the Cambridge Times. A public meeting will also be arranged to advise interested parties about the interim control by-law, planning study terms of reference and next steps.

As the study gets underway, public and agency consultation will be undertaken after development options are developed. Public consultation for the Planning Study will occur in coordination with consultation steps for the Master Environmental Servicing Plan.

Study Area

35 4

36 General Work Plan

2019 2020

Step June Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May

1. Notice of Passing the Interim Control By-law

2. Review of current policies in the City’s Official Plan and draft regulations in the city-wide Zoning By-law; review of current Provincial policies

3. Assessment of development options in conjunction with preparation of the Master Environmental Servicing Plan

4. Public and agency consultation

5. Preliminary recommendations to Cambridge Council about planning study findings

6. Cambridge Council consideration of recommendations from Planning Study and public meeting under Planning Act if required

37 Item #5

To: COUNCIL

Meeting Date: 09/22/2020

Subject: Temporary Use By-law – Restaurant Patios

Submitted By: Elaine Brunn Shaw, Chief Planner, MCIP RPP

Prepared By: Bryan Cooper, Senior Planner, MCIP RPP

Report No.: 20-186(CD)

File No.: R13/20

Recommendations

THAT report 20-186(CD) be received;

AND THAT Cambridge Council approves the City initiated temporary use by-law to permit restaurant patios as attached to report 20-186(CD) for a period of three years ending on September 22, 2023.

AND FURTHER THAT the Temporary Use By-law attached to report 20-186(CD) be passed.

Executive Summary

Purpose

• The City of Cambridge is proposing a temporary use by-law to facilitate patios on private property in zones that permit restaurants during the COVID-19 pandemic. This by-law would apply to all zones throughout the City that permit restaurants (e.g. commercial and industrial zones within the core areas, Hespeler Rd. corridor, commercial plazas and industrial malls). Attachment No. 3 is a list of applicable zones.

• This temporary use by-law applies to private property only and is not applicable to restaurant patios within the City’s road allowance (e.g. sidewalk areas).

• This report recommends approval of the temporary use by-law for a period of three years ending September 22, 2023.

38 Key Findings

• Restaurant patios are normally subject to zoning restrictions such as setbacks and parking requirements. This can be an impediment to local businesses particularly during the COVID pandemic when social distancing measures requires additional space due to increased separation requirements between customers.

• The proposed temporary use by-law would exempt restaurants from meeting zoning restrictions relating to setbacks and parking for outdoor patios for a temporary period of three years. This change would reduce the regulatory burden on restaurants if they wish to expand their restaurant capacity to include an outdoor patio.

• On July 2nd, the Province issued Ontario Regulation 345/20 giving municipalities authority to pass by-laws under Section 39 of the Planning Act to permit restaurant patios without undertaking the zoning process outlined in the Planning Act. This means that no public meeting is required to consider a temporary use by-law for patios and that there is no appeal period. On this basis staff is bringing forward this recommendation report for the proposed temporary use by-law without holding a public meeting in advance as normally done for zoning by-law amendments.

• The City has developed a permitting process for temporary patios to ensure minimum site requirements and safety measures. Financial Implications

• There are no financial implications. There is no permit fee for temporary patios. The City has issued 28 permits for private patios since June 2020. It is estimated that the City may receive 1-2 more patio application(s) by October 30, 2020 when the temporary patio permit program ceases. Although permitted in the zoning by- law through this temporary use by-law, a restaurant owner would need to re-apply for the temporary permit program in 2021 if the program is reactivated since the current program expires in October 30, 2020.

Background

On March 17, 2020 the Province of Ontario declared a state of emergency due the COVID-19 pandemic. This resulted in a province-wide lockdown. The restaurant industry in particular was impacted by this closure as no restaurants were able to seat customers within the premises.

Since the closure the Province has permitted the gradual re-opening of the local economy. On June 12, 2020 Waterloo Region entered stage 2 which allowed restaurants to re-open to serve customers on outdoor patios. As of writing this report Waterloo Region has

39 entered stage 3 which allows for limited indoor dining in addition to outdoor dining, subject to social distancing measures.

The City’s Zoning By-law contains a number of regulations that restrict the location of restaurant patios. This includes location requirements such as setbacks from roads and adjoining properties and parking standards. These restrictions can be a barrier for a restaurant to quickly open an outdoor patio, since seeking relief from these standards can entail a lengthy Planning application process (e.g. minor variance application or Zoning By-law Amendment).

In order to assist the local restaurant industry the City is proposing a temporary use by- law that would exempt restaurant patios from complying with specific standards of the by- law for a period of three years. This is the maximum period that a temporary use by-law may be enacted (without an extension). Although the temporary patio permit program is ending October 30, 2020, the temporary use by-law will remain in effect in order to facilitate temporary patios if the City reactivates the patio program in 2021-2023. The temporary use by-law is applicable to all zones that permit restaurants (e.g. commercial and industrial zones within the core areas, Hespeler Rd. corridor, commercial plazas and industrial malls). Attachment No. 3 includes a list of the zones that can permit restaurants that this by-law would be applicable to.

On July 2nd, the Province issued Ontario Regulation 345/20 giving municipalities authority to pass by-laws under Section 39 of the Planning Act to permit restaurant patios without undertaking the zoning process outlined in the Planning Act. This means that no public meeting and appeal period is required for the temporary use by-law amendment.

Analysis

Strategic Alignment

PROSPERITY: To support and encourage the growth of a highly competitive local economy where there is opportunity for everyone to contribute and succeed.

Goal #6 - Economic Development and Tourism

Objective 6.1 Support the creation and retention of high quality and diverse employment opportunities by becoming the destination of choice for business and entrepreneurship, including helping existing firms thrive and grow.

Approval of the temporary use by-law will assist the local economic recovery due to the COVID-19 pandemic.

40 Comments

The recommended temporary use by-law is for a period of three years from September 22, 2020 until September 22, 2023. This is the maximum period under the Planning Act (without an extension). Should the Province fully re-open and remove social distancing restrictions during this period the City has the option of repealing the temporary use by- law in advance of the three year expiry date.

The City has developed a permitting process for temporary patios to ensure that minimum site requirements such as fire route and daylight triangles are not impacted by the location of a proposed patio. The requirements of the permit are included in the temporary use by- law (e.g. setbacks, fire route etc.). This program is ending on October 31, 2020. This temporary use by-law is being brought forward now to ensure that should the City initiate the patio program again at a later date (for example, spring/summer 2021) that the zoning by-law will not prevent the issuance of patio permits.

Existing Policy/By-Law

Zoning By-law 150-85

The City’s comprehensive zoning by-law 150-85 regulates the location of all buildings and structures, including restaurant patios. The proposed temporary use by-law will exempt restaurant patios from the following zoning restrictions in commercial and industrial zones that permit restaurants and are located in the core areas, Hespeler Rd. corridor, commercial plazas and industrial malls (Attachment No.3 contains a list of zones that this by-law will apply to)

• Minimum setbacks from specified roads

• Required parking for shopping centres and food services establishments (restaurants)

• Loading facilities

• Planting strips and fencing

• Front, rear, side, exterior side yard setback and coverage requirements for C-Class CS-Class Zones and M1-M7 industrial zones that permit an food services establishment

The rationale for exempting all of the above standards is in part because the use is temporary, the permit program is ending in October 30, 2020 and to afford the restaurant industry flexibility in their operations due to the financial impact of social distancing measures (e.g. social distancing requirements limit the number of patrons that may be

41 seated in a restaurant; a patio would therefore expand the restaurant’s capacity in a safe way).

The temporary use by-law will also allow decks/patios to be located closer to lot lines than normally would be the case. Decks/patios will still be required to meet corner sightline requirements of the zoning by-law to ensure that views are not obstructed from intersections. A minimum of 7.5 m (24.06 ft) setback to residential zones is also required to be maintained to minimize impacts on sensitive land uses. Parking areas may be used for patios provided that the total parking area is not impacted by more than 25%.

The temporary use by-law also requires that no fire route be obstructed.

Finally, the temporary use by-law permissions may be revoked on a site specific basis if it is determined that a patio is negatively impacting adjoining properties.

Each site specific provision that the temporary use by-law exempts is explained in Attachment No.1 – Detailed Planning Analysis.

Financial Impact

There are no financial implications. There is no permit fee for temporary patios.

Public Input

Ontario Regulation 345/20 exempts the requirements of a public meeting for temporary use by-laws for restaurant patios and therefore no public notice was provided for this amendment.

Posted publicly as part of the report process.

Internal/External Consultation

The City’s proposal for a temporary use by-law to facilitate restaurant patios has been circulated to the following staff and agencies:

• Development Engineering

• Economic Development

• Fire Department

• Transportation Division

• Building Division

• Region of Waterloo

42 Conclusion

This report recommends approval of a City initiated temporary use by-law to facilitate restaurant patios during the COVID-19 period. The requested temporary use by-law amendment is consistent with the Provincial Policy Statement, 2020 and conforms to the Growth Plan (2019) and conforms to the Regional Official Plan, City of Cambridge Official Plan and represents good planning. The temporary use by-law aligns well with the Strategic Plan goal of Economic Development and Tourism by supporting a strong and innovative local economy.

Signature

Division Approval

Name: Elaine Brunn Shaw Title: Chief Planner

Departmental Approval

Name: Hardy Bromberg Title: Deputy City Manager, Community Development

City Manager Approval

Name: David Calder Title: City Manager

43 Attachments

Attachment No. 1 – Detailed Planning Analysis

Attachment No. 2 – By-law No. 20-XXXX

Attachment No. 3 – List of Zones that By-law 20-XXXX is applicable to

44 Attachment No.1 - Detailed Planning Analysis

Summary of Proposed Temporary Use By-law Amendment: Staff is proposing a temporary use by-law to permit temporary patios for restaurants. The proposed by-law is to facilitate patios during the COVID-19 pandemic. The City is already issuing permits for temporary patios. The proposed By-law will ensure that patios issued under this temporary program are not in conflict with Zoning By-law 150-85. The temporary use by-law proposes to exempt temporary patios from the following regulations in the C1, C2, C4, C6, CS1, CS2, CS3, CS4, CS5, M1, M2, M3, M4, M5, M6 and M7 zones that permit a food services establishment (restaurant):

• Minimum setbacks from specified roads

• Required parking for shopping centres, industrial malls and food services establishments (restaurants)

• Loading facilities

• Planting strips and fencing

• Front, rear, side, exterior side yard setback and coverage requirements for C-Class and CS-Class Zones and M1-M7 zones

The City has a patio permitting process that ensures that minimum site requirements are met for the establishment of a temporary patio permit. This includes the following guidelines (among others):

• Minimum setbacks of 7.5 m (24.6 ft) from a residential zone.

• No more than 25% of required parking can be impacted by a temporary patio.

• Fire routes must not be obscured by a temporary patio. Fire hydrants, Siamese connections and fire exits must not be obstructed.

The proposed temporary use by-law includes the above patio guidelines as requirements. The By-law is proposed to be in effect for the maximum period of time which is September 22, 2023. The By-law may be revoked on a site specific basis if a deck/patio is negatively impacting an adjoining property owner. Provincial Policy Statement 2020 and Provincial Growth Plan (2019) Planning applications are required to be consistent with the PPS, 2020 and conform to the Provincial Growth Plan (2019). Both the PPS, 2020 and Growth Plan emphasize the importance of a strong and resilient local economy. Regarding long term economic prosperity, policy 1.7.1 a) of the PPS states that economic prosperity should be supported by promoting opportunities for

45 economic development and community investment-readiness. Policy 1.7d) states that maintaining and, where possible, enhancing the vitality and viability of downtowns and main streets is important. The temporary use by-law for patios is consistent with these broad policy objectives. The proposal is considered to be consistent with the Provincial Policy Statement and conforms with the Places to Grow, Growth Plan, 2019. Regional Official Plan (ROP): The Region has been circulated the proposed temporary use by-law amendment and have no comments. The proposal is considered to conform to the Regional Official Plan. City of Cambridge Official Plan: Policy 10.5 contains the City’s Official Plan policy regarding Temporary Use By-laws. Policy 10.5.1 d) states that “the City may…authorize the temporary use of land, buildings or structures to: d) permit any…use which Council deems appropriate on a temporary basis. Policy 10.5.2 outlines criteria to consider when enacting a temporary use by-law. The following is an assessment of the applicable criteria: a) The use is in general conformity with the intent and policies of this Plan.

• Policy 8.5.1 of the Official Plan states that: The following objectives provide a foundation for the employment policies of this Plan to: a) work toward a resilient, diverse and stronger employment assessment base in the interests of all members of the community through the continuing operation of existing businesses…

• Policy 8.5.2.4 states that businesses are encouraged, where appropriate, to re-use vacant buildings, to expand operations on under-used sites, and to locate in the built-up area of the city.

o The proposed temporary use by-law conforms with the intent and policies of the Official Plan regarding employment and economic development.

b) The use is compatible with neighbouring land uses or alternative measures are taken to mitigate any adverse impacts. • No adverse impacts are expected as a result of the proposed temporary use by-law amendment. The City’s temporary patio permit has site guidelines which includes a minimum 7.5 (24.6 ft) setback for a temporary patio to a residential zone.

c) The construction of a permanent building or structure is not required. • The proposed amendment will permit temporary patios/decks only.

46 d) The use does not interfere with the development of adjacent areas that are developing in accordance with the Plan. • Not applicable.

e) The use is temporary in nature, appropriate for a limited time span and can be terminated when the authorizing by-law expires. • The permit for temporary patios stipulates the length of time that a temporary patio may be on site (October 31, 2020). If the patio permit is reactivated a similar time limitation will be imposed.

f) Sufficient water, wastewater and roads are available. • No services are required to accommodate a temporary patio.

g) Adequate on-site parking and loading facilities can be provided. • The temporary by-law requires that no more than 25% of required parking is impacted by a temporary patio. This proposal is considered to conform to the City’s Official Plan. Zoning By-law 150-85: The proposed temporary use by-law will exempt restaurant patios from a number of provisions of the zoning by-law on the basis that the use is temporary and is subject to a permit that expires on October 30, 2020. The by-law does introduce standards such as minimum setbacks from residential zones, restricting the total amount of parking that may be impacted by a patio and prohibiting a fire route from being impacted by a patio. This is consistent with the standards in the patio permit program. The temporary use by-law will permit patios to be located at the street edge because it will eliminate setback requirements from property lines and landscaping strips. In these circumstances a patio will still be required to be located to maintain corner lot sightline requirements of the zoning by-law. The temporary use by-law permissions may be revoked on a site specific basis if it is determined that a patio is negatively impacting adjoining properties. The following table identifies the applicable provision, proposed standard and provides a comment/rationale for why the standard is being exempted/reduced.

47 By-law reference Provision Proposed Comment/Rationale standard

2.1.19 and Minimum Exempt • Restaurants have limited 2.1.19.2 setback from indoor seating ability due specified roads to social distancing and setback to requirements and therefore original may need to expand centreline of outdoors to maintain a road viable business.

• The patio use is temporary.

• The patio permit expires October 30, 2020

• Temporary patios will still need to maintain corner lot sightline requirements as per section 2.1.14 of the Zoning By-law which prevents landscaping and structures from obstructing views within 15 m of an intersection.

2.2.1.2(a)(i); Required 25% • Parking spaces may be 2.2.1.2(b)(ii)(2); number of reduction in used for a patio provided 2.2.1.4(a) parking spaces required that no more than 25% of for shopping parking the required parking area centres and is impacted. The rationale food services for permitting this standard establishment is in part because of fewer and industrial customers during the malls with food COVID-19 pandemic. services establishments • Restaurants have limited indoor seating ability due to social distancing requirements and therefore may need to expand outdoors to maintain a

48 By-law reference Provision Proposed Comment/Rationale standard

viable business.

• The patio use is temporary.

• The patio permit expires October 30, 2020

2.3.1 Off-street Exempt • Restaurants have limited loading facilities indoor seating ability due to social distancing requirements and therefore may need to expand outdoors to maintain a viable business.

• The patio use is temporary.

• The patio permit expires October 30, 2020

2.4 Planting Strips Exempt Restaurants have limited and Fencing indoor seating ability due to social distancing requirements and therefore may need to expand outdoors to maintain a viable business.

The patio use is temporary.

The patio permit expires October 30, 2020

3.3.3.2 Setbacks for C Exempt, • Restaurants have limited (c)(d)(e)(f)(h) and class zones, CS provided indoor seating ability due 3.3.3.3(f)(g)(h)(i)(j) Class zones that a to social distancing and 3.4.3.2 and M class minimum of requirements and

49 By-law reference Provision Proposed Comment/Rationale standard

(c)(d)(e)(g)(i) zones 7.5 m (24.6 therefore may need to ft) to a expand outdoors to residential maintain a viable zone is business. required to • be The patio use is maintained. temporary. • The patio permit expires October 30, 2020

• A minimum 7.5 m (24.6 ft) to a residential zone is required to be maintained.

• Temporary patios will still need to maintain corner lot sightline requirements as per section 2.1.14 of the Zoning By-law which prevents landscaping and structures from obstructing views within 15 m of an intersection.

Conclusion: The requested temporary use by-law amendment is consistent with the Provincial Policy Statement, 2020, and conforms to the Growth Plan (2019) and conforms to the Regional Official Plan, City of Cambridge Official Plan and represents good planning.

50 Attachment No. 2 – By-law No. 20-XXXX

Purpose and Effect of By-law No. 20-XXXX The Purpose of this By-law is to amend Zoning By-law 150-85 to permit temporary restaurant patios in the zoning by-law until September 22, 2023.

This temporary use by-law will exempt restaurant patios from the following zoning restrictions:

• Minimum setbacks from specified roads

• Required parking for shopping centres and food services establishments (restaurants) and industrial malls within food services establishments

• Loading facilities

• Planting strips and fencing

• Front, rear, side, exterior side yard setback and coverage requirements for C- Class, CS-Class and M-Class zones

The Effect of the By-law will be to permit temporary restaurant patios in commercially and industrially zoned properties that permit restaurants throughout the City (core areas, Hespeler Rd corridor, commercial plazas and industrial malls with food services establishments) for a period of three years from the enactment of the By-law.

51

By-law No. 20-XXX of the City of Cambridge Being a By-law of the Corporation of the City of Cambridge to amend Zoning By-law No. 150-85, as amended WHEREAS Council of the City of Cambridge has the authority pursuant to Sections 34 and 39 of the Planning Act, R.S.O. 1990, c. P. 13, as amended to pass this By-law;

AND WHEREAS this By-law conforms to the City of Cambridge Official Plan, as amended;

AND WHEREAS Ontario Regulation 345/20 exempts the requirements of a public meeting for temporary use by-laws for restaurant patios

NOW THEREFORE BE IT RESOLVED THAT the Corporation of the City of Cambridge enacts as follows:

1. THAT this by-law shall apply to all lands zoned C1, C2, C4, C6, CS1, CS2, CS3, CS4, CS5, M1, M2, M3, M4, M5, M6 and M7in the City of Cambridge Zoning By- law 150-85

2. AND THAT the City of Cambridge Zoning By-Law No. 150-85, is hereby further amended by adding the following subsection under section 4.3 thereof:

“4.3.13 City initiated temporary use by-law 1. Notwithstanding the provisions of sections 2.1.19; 2.1.19.2; 2.2.1.2(a)(i); 2.2.1.2(b)(ii)(2); 2.2.1.4(a), 2.3.1, 2.4; 3.3.3.2 (c)(d)(e)(f)(h) and 3.3.3.3(f)(g)(h)(i)(j), 3.4.3.2 (c)(d)(e)(g)(i) a deck or patio accessory to a food services establishment shall be permitted 2. A deck or patio shall not obstruct a fire route. 3. A minimum setback of 7.5 m to a residential zone shall be maintained 4. That this by-law shall be in effect for a period of three years from the date of its passing. 5. Notwithstanding subsection 3 above, the temporary use zoning herein

52 may be revoked prior to September 22, 2023 by by-law of The Corporation of the City of Cambridge in relation to one or more properties and or/uses. 6. THAT this By-law shall come into force and effect on the date it is enacted and passed by Council of the Corporation of the City of Cambridge, subject to notice hereof being circulated in accordance with the provisions of the Planning Act and Ontario Regulation 545/06

Read a First, Second and Third Time

PASSED AND ENACTED this 22nd day of September 2020

MAYOR

CLERK

53 Attachment No. 3 – List of Zones that By-law 20-XXXX is applicable to

Commercial Zones:

• C1

• C2

• C4

• C6,

• CS1

• CS2

• CS3

• CS4

• CS5

Industrial Zones:

• M1

• M2

• M3

• M4

• M5

• M6

• M7

54 Item #6

To: COUNCIL

Meeting Date: 09/22/20

Subject: SmartCentres’ Request for a Minister’s Zoning Order for 18-60 Pinebush Road, Cambridge

Submitted By: Hardy Bromberg, Deputy City Manager Community Development

Prepared By: Hardy Bromberg, Deputy City Manager Community Development

Report No.: 20-204(CD)

File No.: A16.04.17

Recommendations

THAT Report 20-204(CD) SmartCentres’ Request for a Minister’s Zoning Order for 18 - 60 Pinebush Road, Cambridge be received;

AND THAT Council supports the application of a Minister's Zoning Order as requested by SmartCentres for a high density, mixed use, transit-oriented development on the lands located at the southeast corner of Hespeler Road and Highway 401;

AND THAT Council direct City staff to work with SmartCentres and the Minister’s office in the preparation of the Minister’s Zoning Order to implement this resolution, generally in accordance with the draft Minister’s Zoning Order as attached to Report 20-204(CD);

AND FURTHER THAT Council direct City staff to work with SmartCentres to implement the Minister’s Zoning Order through future Planning Act applications, including but not limited to: Site Plan Approval; Draft Plan of Subdivision; and, Draft Plan of Condominium applications, as generally depicted in the concept plans and renderings attached Report 20-204(CD).

Executive Summary

Purpose

• SmartCentres is interested in proceeding to develop their property located at the southeast corner of Hespeler Road and Highway 401 for a higher density mixed use residential and commercial community.

55 • Specific details about the number of proposed units, height of specific buildings, and amount of retail are still to be determined. From the concept plan submitted, SmartCentres has noted that there will be housing options to choose from two- storey townhomes, mid-rise apartments (up to 15 storeys) and high-rise towers (up to 35 storeys) overlooking Highway 401. SmartCentres has also provided information that over the long-term (20+ years) redevelopment of the property, it is anticipated that the development of 5,000 - 10,000 residential units (condo, rental, towns & seniors units) across the 29.764 ha (73 ac) property may occur which would equate to a maximum of 334 units per gross hectare.

• In a letter dated August 13, 2020 SmartCentres has requested the City’s support for a future Minister’s Zoning Order to set out the permissions for redevelopment of this site without having to proceed through a normal planning application and public consultation process, and not have the resulting zoning regulations subject to potential appeals to the Local Planning Appeal Tribunal.

• The Minister of Municipal Affairs and Housing has enacted Zoning Orders in other parts of the Province to stimulate the economy.

• The Zoning Order would enable redevelopment of the land in an expedited manner.

Key Findings

• The Minister of Municipal Affairs and Housing is not required by legislation to give notice or consult with a municipality prior to enacting a Minister’s Zoning Orders (MZO). In this case SmartCentres has contacted the City to support its application for a MZO. City staff has also been advised by SmartCentres that the Minister is requesting Council’s endorsement of their application for a MZO for this property.

• SmartCentres is interested in having an MZO enacted on their property so that they can aim to proceed with Phase 1 of their development in 2021 and subsequent phases afterwards. The proposed timing for Phase 1 would not be possible without an MZO.

• The redevelopment of this site for a higher density, mixed-use development aligns with the objectives and policy framework in the City’s Official Plan, City’s Strategic Plan and the planning which is underway for the Pinebush Major Transit Station Area on the future Light Rail Transit route.

Financial Implications

Since a formal planning application would not be required if Council supports proceeding with this initiative, City revenue in the amount of $28,860 would not be

56 received. If a Minister’s Zoning Order is eventually enacted for this property site plan and building permit applications will be required. Site plan applications for this type of proposal currently cost $13,200. Further details about the proposal would be needed in future to estimate the building permit application fees as well as the amount of development charges to be collected.

Background

In a letter dated August 13, 2020 (Attachment 1) SmartCentres has requested the City’s support for a future Minister’s Zoning Order to set out the permissions for redevelopment of this site without having to proceed through a normal planning application and public consultation process, and not have the resulting zoning regulations subject to potential appeals to the Local Planning Appeal Tribunal.

SmartCentres is interested in proceeding to develop their property located at the northeast corner of Hespeler Road and Pinebush Road for a higher density mixed use residential and commercial community. Details about the number of proposed units, height of specific buildings, and amount of retail are still to be determined. From the concept plan submitted, SmartCentres has noted that there will be housing options to choose from two-storey townhomes, mid-rise apartments (up to 15 storeys) and high- rise towers (up to 35 storeys) overlooking Highway 401. A copy of their concept plan is included as Attachment 2. SmartCentres has also provided information that over the long-term (20+ years) redevelopment of the property, it is anticipated that the development of 5,000 - 10,000 residential units (condo, rental, towns & seniors units) across the 29.764 ha (73 ac) property may occur which would equate to a maximum of 334 units per gross hectare.

SmartCentres has also advised that their goal is to include a variety of housing types and sizes to assist with achieving affordable and attainable housing targets. Exact specifics of the details would be established through future implementation processes with the City.

57

Aerial Photo of 18-60 Pinebush Road

The purpose of this report is to seek Council support for SmartCentres desire for a MZO.

The Minister of Municipal Affairs and Housing is not required by legislation to give notice or consult with a municipality prior to enacting a Minister’s Zoning Order (MZO). In this case SmartCentres has contacted the City to collaborate on the content of the MZO provided that work does not take an extended period of time. City staff has also been advised by SmartCentres that the Minister is requesting Council’s support of their application for an MZO for this property.

SmartCentres is requesting City Council endorsement of the draft MZO regulations attached to this report at this time because it is not clear how much longer the Minister of Municipal Affairs and Housing will continue to issue MZOs on strategic development sites as a means of restarting the economy.

Analysis

Strategic Alignment

PEOPLE To actively engage, inform and create opportunities for people to participate in community building – making Cambridge a better place to live, work, play and learn for all.

Goal #6 - Economic Development and Tourism

58 Objective 6.2 Promote vibrant and inviting downtown cores by encouraging partnerships and creating a wide range of unique, exciting destinations and activities.

Objective 1.4 Promote, facilitate and participate in the development of affordable, welcoming and vibrant neighbourhoods.

The redevelopment of this site for a higher density, mixed-use development aligns with the objectives and policy framework in the City’s Official Plan and Strategic Plan.

The concept plan supports the creation of a variety of housing types at various entry points into the housing market, with a density supportive of a rapid transit node.

Comments

This property is located in the Regional Scale Node identified in the City’s Official Plan and is also within the 800 m (2624 ft) from the future planned major transit station area known as the Pinebush station which will be located proximate to the spur rail line south of the Hespeler Road/Pinebush/Eagle Street intersection. These planning frameworks generally encourage higher density, mixed use development. The preliminary concept aligns with this framework.

As part of the Region’s Regional Official Plan Review, the Region and City are collaborating on policies for higher density, mixed use development for this Pinebush Station Area. Public consultation about those proposed policies will occur in future. SmartCentres request for a Minister’s Zoning Order can provide a framework which can be incorporated into the planning for this Station Area as well. A Minister’s Zoning Order is not required to conform to the Regional Official Plan or City’s Official Plan.

Related studies

The following City studies are underway which also relate to the SmartCentres site:

• Growth and Intensification Study

• City-wide zoning by-law

SmartCentres Minister’s Zoning Order if issued by the Province would need to be factored into these studies as well.

SmartCentres has provided a sample list of other Minister’s Zoning Orders issued in 2020 as examples of the Province stimulating the economy. That list is included as Attachment 3.

The request by a property owner to collaborate on regulations for a Minister’s Zoning Order (MZO) is new for Cambridge. Without a Minister’s Zoning Order, this property would require submission of an Official Plan and Zoning amendments in addition to

59 various supporting studies as listed below. Those applications would also require public consultation.

• Planning Justification Report – including justification that the proposal is transit supportive

• Site Concept Plan

• Market Impact Assessment to assess potential impacts of smaller retail units at this location on retail establishments and viability of the Core areas of the City

• A peer review of the market impact study will be required by the City and the cost of that peer review will be the responsibility of the applicant

• Notice of Source Protection Plan Compliance (Section 59 Notice) from the Region including a Risk Management Plan for stormwater and/or salt application and storage

• A Record of Site Condition as a condition of approval of a zoning amendment

• Region, School Boards and Grand River Conservation Authority comments

• Scale and massing concept plans to assist in preparing zoning regulations

• Functional Servicing Report to demonstrate that the site can be adequately serviced with water, sanitary sewer and stormwater

• Planning Justification Report to assess development relative to the Ministry of Environment Conservation and Parks D-Series Guidelines regarding proximity to existing industrial uses

• Transportation Impact Study

Processing the official plan and zoning amendment applications with the additional required public consultation could take 2-3 years.

If an MZO is in place, any relevant supporting studies could be submitted at the time of site plan, or future land severances and plans of condominium expediting the process that could allow building permits issued in 2021.

City Building

This mixed-use development proposal whether it is approved via the traditional process or through a Minister’s Zoning Order assists the City in moving forward with a number of our City building goals, namely:

60 • Higher density to support higher order transit such as LRT and GO Train expansion

• More efficient use of land within the City’s built up area and City/Regional infrastructure that already surrounds the site

• The potential to be a signature development and establish a gateway at this location for people entering Cambridge via the 401

• A mix of land use (office, retail, service, institutional, residential) creating a complete community concept with less reliance on the private automobile

• A range of housing type that is more attainable to the middle class than single detached homes

COVID-19 has accelerated the change from bricks and mortar retail to online sales. Amazon’s September announcement to occupy over 2 million square feet of warehouse space in South-Western Ontario is evidence of this trend. SmartCentres, a long established commercial real-estate developer’s intention to pivot and create more mixed-use development at their big box development locations is another tell-tale sign of the change in retail that we are experiencing in North America.

It is unknown at this time for how long the Province will continue to issue MZOs and therefore there is some urgency to this report.

Existing Policy/By-Law

Planning Act

Section 47(1) of the Planning Act permits the Minister to exercise any of the powers granted to Councils by sections 34 (zoning), 38 (interim control) or 39 (temporary use) without the requirement to carry out public consultation and the zoning order subject is not subject to appeal to the Local Planning Appeal Tribunal.

The Minister of Municipal Affairs and Housing is not required by legislation to give notice or consult with a municipality prior to enacting a Minister’s Zoning Orders (MZO). In this case SmartCentres has contacted the City to collaborate on the content of the MZO provided that work does not take an extended period of time. City staff has also been advised that the Minister is requesting Council endorsement of the having a MZO as part of SmartCentres application for a MZO for this property.

61 The following is a summary of Minister’s Zoning Orders (MZO) based upon information in a frequently asked questions document prepared by the Ministry of Municipal Affairs and Housing:

• A Minister’s zoning order controls the use of land and sets specific requirements for new development, such as minimum lot sizes, frontage, access and servicing requirements. A zoning order may also restrict certain types of development. Zoning orders are common in areas without municipal organization and within areas covered by the Parkway Belt West Plan. An MZO could potentially be used to control land use in any area of the province.

Bill 197 COVID-19 Economic Recovery Act, 2020

This Bill received Royal Assent on July 21, 2020 and includes the following:

Amendments related to Minister’s zoning orders

Currently, under section 47 of the Planning Act, the Minister may make orders exercising zoning powers. The Schedule amends section 47 of the Act to give the Minister enhanced order-making powers relating to specified land. “Specified land” is defined as land other than land in the Greenbelt Area within the meaning of the Greenbelt Act, 2005 (bolded for emphasis) (which includes areas covered by the Oak Ridges Moraine Conservation Plan, areas covered by the Niagara Escarpment Plan and areas described in the regulations made under the Greenbelt Act, 2005).

The enhanced order-making powers include powers in relation to site plan control and inclusionary zoning. Among other things, this provides the Minister with the ability to require the inclusion of affordable housing units in the development or redevelopment of specified lands, buildings or structures.

Also, among other things, a Minister’s order relating to specified land may require that the owner of the specified land enter into an agreement with the relevant municipality respecting specified matters related to development on the land and conditions required for the approval of plans and drawings in a site plan control area. The amendments provide that the Minister may give direction to the parties concerning the agreement. An agreement is of no effect to the extent that it does not comply with the Minister’s direction, whether the Minister’s direction is given before or after the agreement has been entered into.

The City of Cambridge is located outside the Greenbelt and therefore the Minister could apply a Zoning Order and other enhanced powers in this municipality. Legislation also permits these enhanced powers to apply to Ministerial approval of site plans to implement Minister’s Zoning Orders. SmartCentres is not requesting the Minister to approve related site plans for their proposed phased redevelopment of this site.

62 City of Cambridge Official Plan

Section 8.7.1 of the City’s Official Plan includes the following policies related to this Regional-scale node:

1. The Regional Scale Node is located at the intersection of Hespeler Road and Eagle Street/Pinebush Road. This node benefits from its location along the Highway 401 corridor and is a service centre for the travelling public offering a range of retail and service uses that serves the broader region. The node is intended to evolve over the horizon of this Plan to include high density residential and additional employment uses in support of a rapid transit station.

2. The following land uses are permitted within the Regional Scale Node: a) major office; b) office; c) commercial; d) major retail; e) retail and service commercial; f) Regional Commercial in accordance with Section 8.6.1.1; g) high density residential; h) hotel, convention centres and banquet facilities; i) recreational and cultural activities; and j) open space.

3. Industrial uses are not permitted in the Regional Scale Node.

4. Development and redevelopment within the Regional Scale Node will: a) provide and improve pedestrian linkages both within and between properties; b) achieve a density and mix of uses that supports a rapid transit station; and c) adhere to urban design guidelines as prepared by or approved by the City and to the urban design policies of Chapter 5 of this Plan.

5. Notwithstanding Table 2 in Section 2.8.3, the following height requirements apply to the Regional Scale Node: a) Minimum building height of two storeys; and b) Maximum building height of 15 storeys.

6. The Regional Commercial centre, as shown on Figure 5 is not permitted to expand in terms of site area or gross retail commercial floor area.

7. Detailed land use policies and finalization of the Regional Scale Node boundaries will be established through a Secondary Plan and implemented through a further amendment to this Plan. Various background studies, such as the Comprehensive Citywide Commercial Policy Review, Central Transit Corridor Community Building Strategy and Groff Mill Creek Flood Plain Study will be used as input to the Secondary Plan.

A Minister’s Zoning Order is not required to conform to the Regional Official Plan or City’s Official Plan.

Financial Impact

63 This requested approach is new for Cambridge and the City does not have an approved fee for the City’s involvement in the next steps for this request. Since a formal planning application would not be required if Council supports proceeding with this initiative, City revenue in the amount of $28,860 would not be received. If a Minister’s Zoning Order is eventually issued for this property site plan and building permit applications will be required. Site plan applications for this type of proposal currently cost $13,200. Further details about the proposal would be needed in future to estimate the building permit application fees as well as the amount of development charges to be collected.

Public Input

Posted publicly as part of the report process.

Internal/External Consultation

There has been internal discussion with senior staff and the City’s Legal Services staff about this request. The draft MZO attached to this report has been shared with Legal Services, Development Engineering, Transportation, Economic Development, Public Works, Planning Services, and Parks, Recreation and Culture business units. External agencies will be informed about the regulations in the draft MZO attached to this report as part of the next steps if Council is in agreement with proceeding with a Minister’s Zoning Order for this property.

Conclusion

If directed by Council, City staff will work with the SmartCentres’ team and the Minister’s office in the preparation of the Minister’s Zoning Order, generally in accordance with the draft Minister’s Zoning Order as attached to this report. This approach would result in a better framework for the future development of this site than a MZO prepared without consultation.

The redevelopment of this site for a higher density, mixed-use development aligns with the objectives and policy framework in the City’s Official Plan, City’s Strategic Plan and the planning which is underway for the Pinebush Major Transit Station Area on the future Light Rail Transit route. It will provide a range of housing type that is more attainable to the middle class than single detached homes, better utilize existing serviced land while creating a complete community concept with less reliance on personal automobiles.

Without a Minister’s Zoning Order, SmartCentres would be required to submit official plan and zoning amendments for their proposal along with a number of supporting studies. Processing those applications with the required public consultation could take 2 to 3 years before SmartCentres is able to apply for building permits.

Signature

64 Division Approval

Name: Hardy Bromberg Title: Deputy City Manager – Community Development

Departmental Approval

Name: Hardy Bromberg Title: Deputy City Manager, Community Development

City Manager Approval

Name: David Calder Title: City Manager

Attachments

1. Letter from SmartCentres dated August 13, 2020

2. Site Concept

3. Sample list of Minister’s Zoning Orders

4. Draft Minister’s Zoning Order

65 Attachment 1

66 67 Attachment 2 – Site Concept

68

69 Attachment 3 – Sample List of Minister’s Zoning Orders

Zoning Municipality Zoning Order Permitted Use Order No.

O. Reg. 355/20 City of Kawartha Lakes Low/Medium Density Residential and Institutional Uses

O. Reg. 172/20 Town of Whitchurch- Whitchurch-Stouffville Stouffville and City of • Markham, Regional Townhouses, Apartments, Mixed- Use Commercial/Residential Municipality of York Markham

• Townhouses, Apartments and Retirement Homes O. Reg. 362/20 Town of Caledon, Townhouses, Stormwater Management Regional Municipality of facility, Apartments, Mixed-Use Peel Commercial/Residential

O. Reg. 446/20 Town of Oakville, One or more long-term care homes and Regional Municipality of accessory uses Halton

O. Reg. 449/20 Town of Aurora, Regional Permit detached dwelling uses in R5 zone Municipality of York with accessory uses and buildings

O. Reg. 171/20 City of Brampton, Permit an office, Research and Regional Municipality of Development facility, Hotel or Conference Peel Centre

O. Reg. 354/20 City of Apartments

O. Reg. 450/20 City of Toronto One or more long-term care homes and accessory uses, Low/Medium Density Residential, Apartments

O. Reg. 448/20 City of Mississauga, A long-term care home and accessory Regional Municipality of uses, Low/Medium Density Residential,

70 Zoning Municipality Zoning Order Permitted Use Order No.

Peel Apartments

O. Reg. 447/20 City of Hamilton Low/Medium Density Residential

O. Reg. 445/20 City of Vaughan, Regional One or more long-term care homes and Municipality of York accessory uses

O. Reg. 438/20 Town of Ajax, Regional A long-term care home and accessory Municipality of Durham uses and a retirement home and accessory uses

O. Reg. 358/20 City of Toronto Outdoor Patios

O. Reg. 343/20 City of Toronto Apartments

O. Reg. 336/19 Municipality of Clarington, A long-term care home and accessory Regional Municipality of uses Durham

71 Attachment 4 – Draft Minister’s Zoning Order

ONTARIO REGULATION XX/20

made under the

PLANNING ACT

Made: XXXX, 2020 Filed: XXXX, 2020 Published on e-Laws: XXXX, 2020 Printed in The Ontario Gazette: XXXX, 2020

ZONING AREA – CITY OF CAMBRIDGE, REGIONAL MUNICIPALITY OF WATERLOO

Interpretation

1. In this Order,

“floor space index” means the total gross residential floor area and total gross leasable retail commercial floor area measured over the area of the lands as shown on Map No. XX.

“zoning by-law” means Zoning By-Law 150-85 of the City of Cambridge

Application

2. (1) This Order applies to lands in the City of Cambridge in the Regional Municipality of Waterloo, in the Province of Ontario, being PINS 03766-0712 and 03766-0286, as legally described in Schedule A and shown on Map No. XX.

Mixed Use Zone

3. (1) For the purpose of this section, all lands on the map described in section 2 shall be treated as one lot.

(2) Every use of land and every erection, location or use of any building or structure is prohibited on the lands described in subsection (1), except for,

(a) all uses permitted in the “Regional Power Centre (C6) Zone” in the zoning by-law;

(b) all uses permitted in the “Residential Multiple (RM3) Zone” in the zoning by-law;

(c) all uses permitted in the “Institutional (N2) Zone” in the zoning by-law;

(d) all uses permitted by Section 2.1.1 in the zoning by-law; and

72 (e) self-storage facility.

4. (1) The zoning requirements for the lands described in subsection 1 shall be as follows,

(a) For uses permitted in the “Regional Power Centre (C6) Zone” in the zoning by-law and self-storage facility, per Sections 3.3.3.4(a), (b), (d) to (f), (g) and 4.1.72 except for maximum density and maximum height.

(b) For uses permitted in the “Residential Multiple (RM3) Zone” in the zoning by-law, per Sections 3.1.1.1, 3.1.2.4, 3.1.2.5 and 3.1.2.6 except for maximum lot coverage, maximum density and maximum height.

(c) For uses permitted in the “Institutional (N2) Zone” in the zoning by-law, per Section 3.2.1.2 except for maximum lot coverage, maximum density and maximum height.

(d) The maximum height of buildings and structures is 125 metres excluding rooftop mechanical which is an additional 6 metres and permitted height exceptions in the zoning by-law.

(e) Notwithstanding 4(1)(a) above, Section 3.3.3.4(b) shall not apply when retail commercial establishments are located within a mixed use building.

(f) There is no maximum dwelling units per hectare density restriction.

(g) The maximum density shall be 4.2 floor space index.

(h) The maximum lot coverage shall be 40%.

(i) The number of loading spaces required by the zoning by-law shall be provided.

(j) The number of parking spaces required by the zoning by-law shall be provided.

(k) The number of accessible parking spaces required by the zoning by-law shall be provided.

Terms of use

5. (1) Every use of land and every erection, location or use of any building or structure shall be in accordance with this Order.

(2) Nothing in this Order prevents the use of any land, building or structure for any use prohibited by this Order if the land, building or structure is lawfully used on the day this Order comes into force.

(3) Nothing in this Order prevents the reconstruction of any building or structure that is damaged or destroyed by causes beyond the control of the owner if the dimensions of the original building or structure are not increased or its original use altered.

73 (4) Nothing in this Order prevents the strengthening or restoration to a safe condition of any building or structure.

Deemed by-law

6. This Order is deemed for all purposes, except the purposes of section 24 of the Planning Act, to be and to always have been a by-law passed by the council of the City of Cambridge.

Commencement

7. This Regulation comes into force on the day it is filed.

Made by:

STEVE CLARK

Minister of Municipal Affairs and Housing

Date made: XXXX, 2020

74 Schedule A – Legal Description

PIN 03766-0712:

Pt Lt 4 Rcp 1365, Pts 1-50,52, 67r3638 S&e Pts 1,2 & 3, 58r15510; Cambridge. S/t 741455 Partially Released By 1421729. S/t 1183757. S/t 1397626. T/w 1397626. S/t 1390207, 1390208, 1421730, 1437902, Ws735914, Ws749691. City Of Cambridge

PIN 03766-0286:

Pt Lt 4 Rcp 1365 Cambridge As In Ws741717; A/t Interest In Ws741717; S/t Ws722903 Partially Released By 1421679; S/t 1115128, 1420258, Ws741455; Cambridge Subject To An Easement In Gross Over Pt. 1 On 58r-17673 As In Wr755655 Subject To An Easement In Gross Over Pt 1 On 58r-18040 As In Wr809183

75

76 Item #7

To: COUNCIL

Meeting Date: 09/22/2020

Subject: Heritage Properties Register Changes

Submitted By: Elaine Brunn Shaw, Chief Planner

Prepared By: John R. Calhoun, Senior Planner-Heritage

Report No.: 20-210(CD)

Recommendations

THAT Report 20-210 (CD) – Heritage Properties Register Changes – be received;

AND THAT Council approves properties to be removed from, and added to, the Heritage Properties Register, in accordance with Part IV of the Ontario Heritage Act.

Executive Summary

Purpose

• The Heritage Properties Register lists several properties which no longer have a heritage resource.

• On August 20, 2020, the Municipal Heritage Advisory Committee (MHAC) recommended that Council approve a list of changes to the Register properties.

Key Findings

With Council approval, 26 properties would be removed from the Heritage Properties Register and 2 added. Eleven of those to be removed no longer have the heritage resource on them; four more are from address errors. Others involve severances of property or other boundary changes. One property recommended for addition to the Register appears to have been omitted when records were transferred to computerized mapping; the owner of this property has been notified of the proposed change. One addition is the other is half of a duplex; to correspond with the other half of the duplex which has been listed on the Register for decades.

Financial Implications

• Existing City staff resources are used to maintain the Heritage Properties Register.

77 Background

The Ontario Heritage Act was created in 1975 to allow municipal councils to protect heritage properties within their boundaries. Designations protected against some inappropriate changes to the properties. The City of Cambridge voted in its first individual designation in 1977, for the Preston Public School at 601 Duke Street. Since then there have been about 138 individual designations including 4 repeals. In 1985 Council approved the City’s first heritage conservation district (HCD) for the south side of Main Street between Water Street and Ainslie Street; Council has since approved two more districts.

The Register also includes non-designated, or “listed” properties. An “Inventory” was started in the late 1980s. Official Plan policies were in place by the late 1990s for Council to approve properties on the list. The Ontario Heritage Act was amended in 2005 to allow councils to prohibit demolition of designated properties, and also to review demolition of non-designated properties listed on a heritage register. By 2010 Cambridge’s list of heritage properties was called the “Register”, using the term from the Ontario Heritage Act. Council approved the most recent changes to the Register on May 21, 2019.

MHAC endorsed a change to the format of the Heritage Properties Register on August 20, 2020, and recommended to Council that properties be added and removed.

Analysis

Strategic Alignment

PLACE: To take care of, celebrate and share the great features in Cambridge that we love and mean the most to us.

Goal #3 - Arts, Culture, Heritage and Architecture

Objective 3.2 Conserve and make positive contributions to our heritage districts and buildings throughout the community.

The Heritage Properties Register is the Council-approved list of properties recognized by the City. Its credibility as a tool for recognition is enhanced when properties that no longer have a heritage resource are removed.

Proposal

Council is requested to remove 26 properties from the Heritage Properties Register and add two, following the recommendation of MHAC. Eleven of those to be removed no longer have the heritage resource on them; four more are from address errors. Others involve severances of property or other boundary changes; staff is recommending to Council that the former parts of properties that no longer include the heritage resource

78 be removed from the Register. One property recommended for addition to the Register appears to have been omitted when records were transferred to computerized mapping; the owner of this property has been notified of the proposed change. One addition is the other is half of a duplex; to correspond with the other half of the duplex which has been listed on the Register for decades.

The Heritage Properties Register is on the City’s website: https://www.cambridge.ca/en/learn-about/Heritage.aspx. The middle column, third line has the link to the Register. The updated Register will be posted on the City’s website after Council makes a decision about this report.

The following property changes are recommended, by category:

Removal because of no heritage resource on property: 71 Dundas Street South Listed as “relocated to Rockton Taylor Scrimger House. White frame house.” – building moved out of City 3 Gilholm Avenue Listed as “Dilse Report, p. 92” – replaced 1992 with semis at 10 and 12 Ramore Street 157 Glenmorris Street Listed as “cobblestone residence” – actually it’s a c.1960 ranch house, but the house next door at 159 Glenmorris Street is of cobblestone, and is listed on the Register 27 Grand Avenue South Listed as “Dilse Report, p. 76” – demolished c.1996-1997 after “Committee [L.A.C.A.C.] took no action” according to notes in file 84 Guelph Avenue Listed as “Hespeler Railway Station, wooden construction” – demolished c.1998 105 Ripplewood Drive Listed as “white sided farmhouse” – demolished 2007 95 Spring Street Listed as “cottage, stone” – in Little Riverside Park, demolished c.1985; it was on page 43 of the Dilse report 16 Spruce Street Listed as “Dilse report, p. 100” – house removed by 2000, replaced by apartment tower 7 Thorne Street Listed as “Dilse report, p. 95” – the Dilse report shows a one- storey stone house at 13 Thorne Street; in 2003 a Landmarks article looked at a 2-storey dwelling at 11-13 Thorne Street; in 2004 that building was demolished when it was part of the same parcel as 7 Thorne Street, where a different building stands. 35 Wellington Street Listed as “First United Church, 1863 house. Original clapboard church on site built by Absalom Shade in 1828.” – Commercial building north of the church demolished c. 2007 to expand City parking lot; the clapboard house was probably replaced by the current church built in 1863. 12 Winston Boulevard Listed as “yellow brick” – now red brick c.1996 town houses

79

Removal because of address error: 154 Fountain Street Listed as “Landmark Series” – the South address doesn’t South exist; 154 Fountain Street North is listed 455 Fountain Street Listed as “Landmark Series” – address doesn’t exist (South South or North); both 445 Fountain Street South and 457 Fountain Street South are listed and are next door to each other 49 Queen Street West Listed as “commercial/retail building, stone” – the West address doesn’t exist, neighbouring addresses include stone but are all residential. This listing may have been for 49 Queen Street East, demolished, severed property for new apartment tower 135 Shadywood Lane Listed as “Landmark Series” – no such address or similar; may have been a previous address of 16 Shadywood Lane, which is listed

Removal because of severances and other property boundary changes – most not shown on printed Register – the Committee of Adjustment may approve severances but only Council can approve removals from the Heritage Register: 1705 Beaverdale Road Listed as “Currently the Wanner Mennonite [sic] Church …” – change listing to 1725 Beaverdale Road for the church; remove listing of 1705 for the picnic shelter and fields – the separate addresses were established in 2007 20 Byng Avenue Severed from 16 Byng Avenue for new residential lot 107 Concession Street, The heritage house has been relocated to what is now Unit 1 all Units other than Unit which will be designated soon; the remaining units need not 1 and all common areas be subject to heritage regulation 449 Dover Street North Severed from the side yard of the listed house at 445 Dover Street North 149, 151 and 155 Severed from the back yard of the listed house at 204 Marmel Court Kitchener Road 49 Queen Street East Severed from 19 Guelph Avenue for new apartment tower 1368 Thorman Place Severed from 1366 Thorman Place for new house in 2010 (1366 was removed from listing in 2015 after demolition) 155 Water Street South Severed from the south side of the listed industrial building at 25 Concession Street

Changes for the Gaslight development: 64 Grand Avenue South – Listed as “Babcock and Wilcox foundry, stone, Landmark Series” – In June 2017 Council issued a Notice of Intention to Designate part of this property, with the expectation that the designation by-law will be passed when rehabilitation of the heritage buildings was complete, potentially by 2021 or later. Since

80 then most of the demolition has been completed; renovations are under way, and new construction of a 20-storey residential building on the north part of the property has begun. The property has recently been severed into three parcels, and the proposal for the Register is: 58, 64 and 74 Grand Keep these two properties listed on the Register, noting that Avenue South, and 39 they are subject to a “designation in process” that Council Glebe Street approved 50 Grand Avenue South Remove the heritage listing and 15 Glebe Street

Additions to the Register: 33 Park Hill Road East This is the middle section of a three-unit residential building with separate ownerships; 31 and 35 are listed – the 1998 heritage inventory listed this as 31-35 Park Hill Road East as did the Dilse report, p. 96. 52 Park Avenue This is the south half of a two-unit residential building, now with common ownership but with a recent application for severance. The other half at 45 James Street is listed as “1900 Georgian Revival, yellow brick residence, Dilse report, p.88, Landmark Series

Comments

Cambridge’s Heritage Properties Register needs updating to remove properties that no longer have their identified heritage resource. The credibility of the Register is diminished when it includes buildings that no longer exist.

Existing Policy/By-Law

Ontario Heritage Act

Part IV, Section 27 (1) “The clerk of a municipality shall keep a register of property situated in the municipality that is of cultural heritage value or interest.”

(1.1) “The register kept by the clerk shall list all property situated in the municipality that has been designated by the municipality or by the Minister under this Part …”

(1.2) “In addition to the property listed in the register under subsection (1.1), the register may include property that has not been designated under this Part but that the council of the municipality believes to be of cultural heritage value or interest and shall contain, with respect to such property, a description of the property that is sufficient to readily ascertain the property.”

81 (1.3) “Where the council of a municipality has appointed a municipal heritage committee, the council shall, before including a property that has not been designated under this Part in the register under subsection (1.2) or removing the reference to such a property from the register, consult with its municipal heritage committee.”

Cambridge Official Plan

Section 4.1 of the Official Plan includes Objective a) to “support the conservation, restoration and prominence of the City’s built heritage as a key identifying feature of the community”.

“Section 4.3 Registry of Cultural Heritage Resources

“1. The City will encourage the conservation of cultural heritage resources. The City will prepare, publish and periodically update a Registry of the City’s cultural heritage resources. This Registry will list those properties which have been designated pursuant to the Ontario Heritage Act and those which have not. Those properties identified on the Registry will include buildings, structures, landscapes and Districts.”

“3. For the purposes of Policy 4.3.1, any cultural heritage resource shall be deemed to have been included in the Registry when the required documentation describing, illustrating and evaluating each such resource has been presented to Council or when any such resource has been designated under the Ontario Heritage Act. Council may provide for such documentation to be reviewed from time-to-time to ensure the continued accuracy of the information provided or otherwise to amend such information as may be required.”

“4. The Cambridge Municipal Heritage Advisory Committee as described in Policy 4.5 will identify properties which may warrant designation under either Part IV or V of the Ontario Heritage Act because of cultural heritage value or interest. These non- designated properties will be included on the Council-adopted Registry of Cultural Heritage Resources in accordance with Policy 4.3.3”

The Heritage Properties Register for the City of Cambridge conforms to the Ontario Heritage Act and to the City’s Official Plan.

Financial Impact

Existing City staff resources are used to maintain the Heritage Properties Register.

Public Input

MHAC meetings are open to the public. The Council meeting is posted publicly as part of the report process.

82 Internal/External Consultation

Existing heritage files maintained by the Planning Services Division, both electronic and on paper, were reviewed in researching past Register actions and property information. The Archivist has been consulted for some details. The City’s OnPoint electronic mapping has been used extensively.

Conclusion

The City of Cambridge’s Municipal Heritage Register is a useful information tool for City residents, heritage activists, developers and Councillors to note properties already compiled into a historical record. The proposed changes help keep it up-to-date.

To align with the City’s Strategic Plan, the Heritage Properties Register is the Council- approved list of properties recognized by the City. Its credibility as a tool for recognition is enhanced when properties that no longer have a heritage resource are removed.

Signature

Division Approval

Name: Elaine Brunn Shaw Title: Chief Planner

Departmental Approval

Name: Hardy Bromberg Title: Deputy City Manager, Community Development

City Manager Approval

Name: David Calder Title: City Manager

83 Item #8

To: COUNCIL

Meeting Date: 09/22/20

Subject: Development Charge & Community Benefit Charge Legislation Update

Submitted By: Sheryl Ayres, Chief Financial Officer

Prepared By: Sheryl Ayres, Chief Financial Officer

Report No.: 20-224(CRS)

File No.: C1101

Recommendation(s)

THAT Council approve the charging of interest pursuant to section 26.1 of the Development Charges Act, 1997 at an annual rate of Prime +2% for Development Charges that are deferred for rental housing that is not non-profit housing or institutional development, and at 0% for Development Charges that are deferred for non-profit housing developments,

AND THAT Council approve the charging of interest pursuant to Section 26.2 of the Development Charges Act, 1997 at an annual rate of Prime + 2% for Development Charges that are frozen prior to Building Permit issuance,

AND THAT Council authorize the City’s Chief Financial Officer to execute any agreements related to Development Charge Payment Agreements and Section 27 agreements for payment of development charges before or after payments would otherwise be made, in a legal form satisfactory to the City Solicitor and upon business terms satisfactory to the Chief Financial Officer,

AND FURTHER THAT Council approve the Development Charges Interest Policy attached in Appendix ‘A’.

Executive Summary

Purpose

• This report will provide Council with an overview of changes to the Development Charges Act and introduce the proposed policy related to development charge interest.

84 Key Findings

• As part of the More Homes More Choices Act (Bill 108), the Plan to Build Ontario Together Act (Bill 138), and the COVID-19 Economic Recovery Act (Bill 197), the Provincial government enacted changes to existing development legislation including the Development Charges Act, and introduced new development legislation by creating a Community Benefits Charge. • Amongst other changes, the new legislation included two new provisions allowing developers to modify their typical development charges. The new provisions allow qualifying developments to: o Freeze development charge rates through the development process (section 26.2) o Defer development charge payments over multiple years (section 26.1) • The new legislation also allows municipalities to charge interest when either of these provisions is employed. Interest rates may not exceed a maximum rate as prescribed by the province. The province has not prescribed a maximum interest rate at this point in time, with the amount of interest that is charged being fully at the discretion of each individual municipality. Financial Implications

• The DC Interest Policy aims to ensure that the City is able to continue funding capital investments required to maintain the delivery of services to a growing population and businesses community.

Background

On May 2, 2019 Bill 108, More Homes, More Choice Act, 2019 was introduced as part of the Provincial government’s Housing Supply Action Plan. The proposed legislation received first reading on May 2, 2019 and received Royal Assent on June 6, 2019.

Bill 108 has made some changes to the Development Charges Act (DCA) and Planning Act (PA), with the provincial government publishing a formal proclamation date of January 1, 2020 for some sections of schedule 3 of the Bill to take effect.

Bill 138, Plan to Build Ontario Together Act, 2019 is a bill to amend various portions of Bill 108, with schedule 10 containing the notable provisions relating to how Bill 108 amends the DCA. Bill 138 received Royal Assent on December 10, 2019 with schedule 10 also having a proclamation date of January 1, 2020.

The relevant component in schedule 10 of Bill 138 that amends Bill 108 is that the deferral of Development Charge (DC) collections will only be for the following development types (industrial and commercial development have been removed):

85 (a) Rental housing development that is not non-profit housing development; (b) Institutional development; (c) Non-profit housing development. Bill 197, COVID-19 Economic Recovery Act, 2020 has also since been introduced, receiving Royal Assent on July 21, 2020. Similar to the above, Bill 197 does not directly impact the proclaimed changes to the DCA via Bill 108, but rather expands the list of services eligible for development charge funding and strengthens municipalities’ ability to fund growth-related infrastructure. The amendments appear to provide greater financial flexibility for municipalities by more closely integrating DC’s, a Community Benefits Charge (CBC), and revenue from parkland contributions. The extended transition date also gives municipalities sufficient time to analyze the financial implications of the changes and to implement the relevant by-laws necessary to comply with the new legislation. It extends the timeframe from one year to two years after the changes come into force and effect; anticipated to be the day the legislation is proclaimed, which has not yet occurred as of the time of this report writing.

Analysis

Strategic Alignment

PEOPLE To actively engage, inform and create opportunities for people to participate in community building – making Cambridge a better place to live, work, play and learn for all.

Goal #2 - Governance and Leadership

Objective 2.5 Focus on the responsible management of financial resources, ensuring transparency and accountability.

With recent legislative changes to the Development Charges Act and the Planning Act, the attached DC Interest Policy aims to ensure that the City is able to continue funding capital investments required to maintain the delivery of services to a growing population and businesses community.

Comments

Overview of Development Charges Act Changes

The changes that have been included in each of the consecutive pieces of development legislation appear to be generally positive for municipalities. Changes proposed in earlier Bills would have been very costly to municipalities and stifled growth, but the results of Bill 197 should allow municipalities to continue growing and providing services to new residents. Some highlights of Bill 197 are provided below.

86 Two-Year Transition

The changes outlined in this report have a two-year transition window from the point of proclamation (Bill 197 has not yet been proclaimed). This is longer than the original one-year window included in a previous Bill, which is good news for municipalities since the number of consultants that do this work is limited and many administrative processes and systems need to be changed to conform with the new requirements.

Removal of the 10% Discount for “Soft” Services Under previous legislation, “soft” services like recreation and parks had a mandatory 10% reduction, meaning at least 10% of the capital infrastructure costs had to be funded by the municipality instead of development charges. Bill 197 removes this mandatory reduction which allows for 100% of the growth-related costs to be funded by DCs. The City of Cambridge DC Background Study, approved in 2019, included almost $6M related to the 10% statutory deduction that may be able to be funded from DCs which frees up City funding for other projects.

List of DC Eligible Services

The list of DC eligible services has changed multiple times through the different Provincial Bills. A key proposed amendment of Bill 197 that relates to the DCA is to bring many “soft” services back into the DCA funding framework that were originally dropped via Bill 108. The downside impact of the changes for the City of Cambridge is that the expanded list of services does not include municipal parking which was eligible under the previous legislation. There may be an ability to recover growth related costs of parking under a new CBC framework, however, the extent of the recovery would depend on final regulations and a prioritization within the overall CBC strategy.

Community Benefits Charge (CBC)

Bill 197 also makes substantial revisions to the CBC framework introduced last year (via Bill 108) which amended section 37 of the Planning Act. The purpose of CBC’s remains the same – being a land value based charge to be used to pay for growth related capital costs that are not recoverable via Parkland Dedication or Development Charges. However, under the new legislation, the scope of CBC’s will be narrower, but importantly, can integrate with the development charge funding framework. CBC’s would now be:

• Charged only by local municipalities (i.e. single or lower-tiers); • Imposed only with respect to higher density residential development (ie. buildings with at least 10 units and at least five storeys). In this way, the revised CBC becomes more akin to “density bonusing” payments for higher density housing as in previous Section 37 legislation; and • Available for use to pay for the full range of DC-eligible services as well as for parkland and other public recreation purposes, provided that capital costs to be

87 funded from CBC’s are not also funded from DC’s or cash in lieu of parkland (ie.no “double dipping”). This may arise if a municipality does not impose DC’s but may wish to recover some growth related costs through a CBC. Or if certain types of growth related costs are specific to higher density development, it could be used to attribute those growth related costs to specific developments vs all development types.

The CBC payable on any particular development would still be limited to a prescribed percentage of the value of land to be developed. It remains to be seen whether final regulations to the Planning Act will change the prescribed percentages that were released in draft form back in February 2020, that being 10% for lower-tier municipalities and 15% for single-tier municipalities.

Proposed Changes to the Planning Act - Parkland Dedication Provisions Reintroduced

Bill 197 amends section 42 of the Planning Act by re-introducing the municipal authority to impose an alternative parkland rate. Among other things, this amendment frees up CBC funds to be used predominately for specific community benefits identified by the City since parkland dedication and DC’s are reverting back to pre-Bill 108 application, thus leaving a bigger pool of funds to be used on non-DC or parkland related infrastructure.

The section 42 amendments require municipalities that utilize an alternative rate for parkland dedication to pass a new by-law that includes public consultation, notice requirements, and the process for appealing a by-law to the LPAT. The appeal right however is limited only to the alternative rate component.

Overall, these amendments to the DCA and Planning Act are beneficial to the City of Cambridge. The changes reverse many of the less popular provisions introduced by Bill 108 and reflect the considerable efforts by municipal stakeholders to establish an appropriate framework for addressing the critical issue of how municipal growth infrastructure is paid for.

Proposed Policy Related to Development Charge Interest

Through the proclaimed changes to the DCA effective Jan. 1, 2020, and as noted in the above section, municipalities may charge interest on deferred payments and DC’s calculated earlier in the development process at a rate not exceeding the prescribed maximum interest rate. The province has not prescribed a maximum interest rate at this point in time, with the amount of interest that is charged being fully at the discretion of each individual municipality. This new ability will help offset some of the financial impacts related to deferred payments and potential lost DC revenue from a DC rate freeze.

88 The City’s DC interest rate policy should consider both the annual cost of inflation on DC rates, as well as the impact of locking in DC rates earlier in the development process. There is a potential for lower DC revenue compared to existing legislation if situations occur where the DC is calculated (and frozen) from an older by-law where rates are lower. Interest charges may not fully cover the differential from a lower DC rate being charged as a result of the amount being frozen based on a prior by-law.

The interest rate structure recommended for the policy (Prime + 2%) will account for the time value of money and associated financing costs to the city of funding some growth related infrastructure ahead of actual DC collections. The Prime rate is an annual interest rate on which major Canadian financial institutions base their lending rates for variable loans or lines of credit, of which the City could utilize to finance larger capital projects. The additional 2% is added to ensure this financing mechanism for deferrals and rate freezes reduces the financial impact to the City as actual borrowing costs would be higher than the banks Prime rate. At this interest rate, the City would be able to cover its cost of borrowing along with other expenses associated with DC rate freezes earlier in the development process and deferred payments.

The City will not require additional security for deferrals eligible under Section 26.1 of the DCA. The deferral plans will be monitored and will be addressed should non- payment become an issue, with any unpaid DC’s transferred to the tax roll of the property.

Upon Council approval of this report and policy, the interest rates being used shall be made available on the City’s development charges website. The interest rates shall also be published as part of the City’s annual development charges pamphlet publication.

Interest on deferred payment of DC’s

To account for the delayed receipt of DC revenues for certain development types, Staff is proposing an annual interest rate be charged of Prime + 2% for the following development types:

• rental housing that is not non-profit housing • institutional development

Staff is proposing no interest be charged (0%) for the following development types to help advance the creation of more affordable housing projects within the city:

• non-profit housing

These rates would be applied to the calculated DC and interest would start accruing from the date the payment would have otherwise been due if not eligible for a deferral – i.e. at building permit issuance, to the date the instalment is paid. Therefore, the interest rate would be locked in for the term of the deferral based on the rate in effect as of the date of building permit issuance.

89 The DC payments shall be paid in equal annual instalments, plus any accrued interest, beginning on the earlier of:

• the date of the issuance of an occupancy permit under the Building Code Act • the date the building is first occupied Payments would then continue for:

a) the following five (5) anniversaries of that date (6 payments total), for rental housing that is not non-profit housing and institutional development; or b) the following twenty (20) anniversaries of that date (21 payments total), in the case of non-profit housing.

Non-profit housing would benefit from reduced financing costs with a 0% interest rate to help advance affordable housing projects. This incentive is one the City can offer within DC legislation that will not impact or require subsidization from user fees or tax based funding sources.

DC Rate Freeze

Under the City’s current DC bylaw, the amount of DCs payable was calculated at the time DCs were paid, which was most commonly at the time of building permit issuance. So if a developer were getting a building permit in June 2022, they would be charged the DC rate in effect at June 2022.

Under the new legislation, the amount of DCs payable will be calculated based on the rates in effect at the time of various Planning applications. The DC payment will not actually be paid until later in the development process. Any “frozen” DC rate would also be charged an interest rate of Prime +2% per year if the attached policy is approved by Council. So if a developer were getting a building permit in June 2022 but submitted a complete Planning application in June 2020, they would be charged the DC rate in effect at June 2020 plus interest.

BILL 108 / COMMUNITY BENEFITS CHARGE WORKING GROUPS

Staff from Finance have participated in two working groups with other municipalities to collaborate about the impacts of implementation of the proposed legislative changes. The first group was led by the Municipal Finance Officers Association (MFOA) and had representatives from municipalities across the province.

The second working group was within the region and included representation from each of the eight regional municipalities. One of the primary topics discussed by this working group was interest rates for delayed DC payments. The working group agreed that for DC freezes and deferrals, all municipalities would propose the prime interest rate + 2%. The prime interest rate is a publicly available figure on the Bank of Canada’s website and is determined by an independent third party, somewhat similar to CPI inflation. And much like CPI inflation, the prime interest rate will fluctuate over time, based on

90 economic conditions. A premium of 2% on top of the prime interest rate is proposed to cover an element of risk in the development process and to offset interest rate fluctuations over the course of a freeze/deferral.

One of the goals of the new legislation is to provide cost certainty to the developer. In order to help achieve this, the interest rate will be fixed at the appropriate time in the development process. The new legislation allows a developer to opt out of freezing/deferring DCs, so they have full flexibility to choose the option that makes the most sense for their particular development.

Existing Policy/By-Law

As outlined in this report, recent legislative changes have been made to the Development Charges Act and the Planning Act. These changes will result in an update to the City’s Development Charges Background Study, DC Bylaw and Parkland Dedication Bylaw in order to ensure the City is in compliance. As well, a new Community Benefits Charge Bylaw will be implemented to ensure the City is recovering the costs of building growth related infrastructure.

Financial Impact

Overall, the legislative changes from Bill 197 should have a positive effect on City finances, primarily due to the removal of the mandatory 10% reduction to “soft service” areas like parks and recreation facilities. However, other financial implications surrounding changes to the DCA from portions of Bill 108 being proclaimed on January 1, 2020 are as follows:

• Timing of cash flow and related unfavourable impacts from the deferral of DC’s to a future date vs previously collected at building permit issuance. • DC’s for certain developments could be less as a result of the calculation happening earlier in the development process vs previously calculated at building permit issuance. • Increased administration and costs associated with the new tracking, calculation, and billing requirements needed to administer these legislated changes.

These impacts have potential for reduced DC’s and possible deferral/reduction of growth-related infrastructure if DC revenue is reduced.

In addition to the potential lost revenue because of the changes in DC calculation timing and collection, there is also added staff time required for manual tracking of items such as (but not limited to): site plan or zone change application dates and subsequent approvals, interest rates to apply to DC payment plans and rate freezes, any change of use to the development over time, and occupancy dates.

There are currently no system processes in place to allow these new requirements to be easily administered in the City’s financial and permit systems. Significant investment will

91 need to be made in developing and/or adding to existing systems along with defining and documenting new processes. Additional account reconciliations will also be required for annual payment plans to ensure financial obligations are being met. Fee increases to compensate for the increased cost to the development process can be considered in future budget cycles and Fees & Charges by-laws.

The fiscal impact from these changes is difficult to quantify, as it will depend upon the specific timing and type of development activity. A full financial impact of the Policy will not be clear until the City begins collecting development charges under the provisions of the frozen rates and phased payments.

Public Input

Posted publicly as part of the report process.

Internal/External Consultation

Staff in the City’s Planning and Building divisions have been consulted and reviewed the attached policy.

A Regional working group with representation from all eight regional municipalities was established to collaborate on ideas and process change requirements in light of the legislative changes to the DCA via Bill 108. In particular, the group felt it important to have a consistent approach to interest rate charges across the region for the development community.

Conclusion

Charging interest on frozen and deferred development charges can help mitigate the financial impact of the recent proclamation on portions of Bill 108 by improving cost recovery and encouraging developers to proceed with projects in a timely manner.

The interest rate administration process will be defined and coordinated between Building Standards, Planning, and Finance, and applied to eligible developments as encountered.

Signature

Division Approval

Name: Sheryl Ayres Title: Chief Financial Officer

92 Departmental Approval

Name: Dave Bush Title: Deputy City Manager, Corporate Services

City Manager Approval

Name: David Calder Title: City Manager

Attachments

• Appendix A - Development Charges Interest Policy

93 Appendix A

Summary of Changes: • This is a new policy

POLICY TITLE Development Charge Interest Policy

CATEGORY Financial

POLICY NUMBER Leave Blank – Clerk’s team will input once finalized/approved

DEPARTMENT Corporate Services

POLICY AUTHOR Financial Services

POLICY TYPE City Policy

APPROVED BY Council

EFFECTIVE DATE 09/23/2020

REVIEW DATE To be reviewed in conjunction with updates to the City’s Development Charges Bylaw

POLICY STATEMENT

This policy establishes a financial framework governing the charging of interest, as permitted under sections 26.1 and 26.2 of the Development Charges Act. This supports the City’s strategic goal of focusing on the responsible management of financial resources, ensuring transparency and accountability.

PURPOSE

The purpose of this policy is to establish the rules and procedures for the City of Cambridge to enter into an agreement with a developer to charge interest on certain types of developments, as permitted under sections 26.1 and 26.2 of the Development Charges Act. This policy also establishes the process whereby a developer could elect to opt out of incurring interest charges.

DEFINITIONS Agreement: A legally binding arrangement between a developer and the City as to DC payment terms that differ from what is permitted in the DCA, as allowed under Section 27 of the DCA.

94 Complete Applications: Pursuant to Section 26.2 of the DCA, the City considers an application of a Site Plan, under Section 41 of the Planning Act, R.S.O 1990 c.P13 or Zoning Amendment under Section 34 of the Planning Act, R.S.O 1990 c.P13 to be made as of the date that the submitted application is deemed to be complete according to the City’s Planning staff.

DC: Development Charges imposed by Council approved bylaw for charges against land to pay for increased capital costs required due to increased services arising from development of the area to which the bylaw applies.

Development: The construction, erection or placing of one or more buildings or structures on land or the making of an addition or alteration to a building or structure that has the effect of increasing the size or usability thereof according to one or more of the actions referred to in subsection 2(2) of the Development Charges Act, and includes redevelopment.

Development Charges Act (DCA): The Development Charges Act S.O. 1997, c. 27, as amended and all regulations thereto.

Development Charge Deferral: The ability for qualifying developments to spread their DCs over multiple annual installment payments as defined in Section 26.1 of the DCA.

Development Charge Freeze: Locking in DC rates as defined in Section 26.2 of the DCA.

Early Payment Agreement: A municipality may enter into an agreement with a person who is required to pay a DC providing for all or any part of the charge to be paid before it would otherwise by payable (as referred to in Section 27 of the DCA).

Institutional Development – is defined by O. Reg. 454/19, s. 3 (1) and means development of a building or structure intended for use, a) as a long-term care home within the meaning of subsection 2 (1) of the Long-Term Care Homes Act, 2007; b) as a retirement home within the meaning of subsection 2 (1) of the Retirement Homes Act, 2010; c) by any of the following post-secondary institutions for the objects of the institution: i. a university in Ontario that receives direct, regular and ongoing operating funding from the Government of Ontario, ii. a college or university federated or affiliated with a university described in subclause (i), or iii. an Indigenous Institute prescribed for the purposes of section 6 of the Indigenous Institutes Act, 2017; d) as a memorial home, clubhouse or athletic grounds by an Ontario branch of the Royal Canadian Legion; or

95 e) as a hospice to provide end of life care.

Non-Profit Housing Development – is defined by O. Reg. 454/19, s. 3 (1) and means development of a building or structure intended for use as residential premises by, a) a corporation without share capital to which the Corporations Act applies, that is in good standing under that Act and whose primary object is to provide housing; b) a corporation without share capital to which the Canada Not-for-profit Corporations Act applies, that is in good standing under that Act and whose primary object is to provide housing; or c) a non-profit housing co-operative that is in good standing under the Co-operative Corporations Act. Prime: The prime lending rate, being the annual interest rate as indicated on the Bank of Canada Website.

Qualifying Developments: as defined in Section 26.1 (2) of the DCA and include:

• Rental housing development that is not non-profit housing • Institutional development • Non-profit housing development Rental Housing Development: as defined by O. Reg. 454/19, s. 3 (1) and means development of a building or structure with four or more dwelling units all of which are intended for use as rented residential premises.

Security: An agreed upon asset or assurance provided to the City in anticipation of later payment of DC’s, to then be returned to the owner once paid in full.

AUTHORITY This policy operates under the authority of the Development Charges Act S.O. 1997, c. 27, Section 26.

SCOPE

This policy applies to City of Cambridge employees involved with development of all lands in the City and the collection of applicable revenue.

POLICY The City’s Development Charges Interest Policy provides the specifics of the City’s policy without reiterating most aspects of the DCA itself. The City’s policy is meant to be interpreted in accordance and in conjunction with the DCA. To help clarify, example calculations are provided.

96 Development Charge Deferral Section 26.1 of the DCA provides for the deferral of development charges for the following types of development: • Rental housing development that is not non-profit housing development, • Institutional development, and • Non-profit housing development.

The equal annual installment payments for DC’s on those development types shall be paid on the earlier of the date of the issuance of a permit under the Building Code Act authorizing occupation of the building or the date the building is first occupied.

For rental housing development that is not non-profit housing development or institutional development, development charges shall be paid in 6 annual installments. For non-profit housing development types, development charges shall be paid in 21 annual instalments.

Section 26.1(7) of the DCA provides that interest may be charged on each instalment from the building permit issuance date to the date the instalment is paid. An annual interest rate of Prime +2% will be applied to installment balances, as determined at the time of building permit issuance, and locked in for the term of the deferral. Interest will be charged for any DC charges deferred for rental housing development or institutional development. No annual interest rate will be charged for non-profit housing development. The Prime interest rate to be used will be the rate in effect at the time of building permit issuance.

Early payment agreements will be offered if the owner of a development would prefer to pay the full DC owing at building permit issuance versus installments over several years, thus removing interest charges on the DC payable. Agreements for payment of development charges at a date earlier than would be permitted pursuant to Section 26.1, but after building permit issuance, may also be accepted with accrued interest from building permit issuance date to the date DC’s are paid.

A person required to pay a development charge referred to above on a deferred basis shall, unless the occupancy of the building is authorized under the Building Code Act, notify the municipality within five (5) business days of any part of the building first being occupied. Failure to comply with that notice will result in the development charge, including any accrued interest, becoming payable immediately.

Development Charge Freeze Section 26.2 of the DCA provides that the total amount of a development charge for a development that is proceeding through a site plan control approval or a zoning by-law amendment approval is to be determined under the DC by-law in effect on the date when

97 a complete application is made. If two years has elapsed since the approval of the relevant application to when the first building permit is issued, the amount of the development charge is to be determined at the issuance of the building permit (if the development charge has been deferred pursuant to section 26.1 of the DCA) or at the time the development charge becomes payable (if the development charge has not been deferred pursuant to section 26.1 of the DCA).

Pursuant to Section 26.2(4) of the DCA, if a development was subject to both site plan and zoning bylaw amendment applications at the same time, it is the date of the later one that is used to determine the DCs payable. If neither of these applications apply to the development, then the DC is determined on the building permit issuance date.

If a development charge is to be calculated at the time of a site plan application or at the time of a zoning by-law amendment application, the City may charge interest on the DC amount from the date of the complete application referred to in the applicable clause to the date the development charge is payable. An annual interest rate of Prime +2% will be charged for any DC rate frozen during the development process. The Prime interest rate to be used will be the rate in effect when complete applications are submitted.

The annual interest rate applied to DC’s pursuant to Section 26.2 of the DCA is determined when the DC is calculated, and is locked in until such time as the DC becomes payable, with interest accruing to the date the DC would normally be paid in the absence of any deferrals under Section 26.1 of the DCA (i.e. at building permit issuance); and prorated accordingly based on when the interest starts accruing.

Similar to early payment agreement options for deferrals under Section 26.1 of the DCA, the City may enter into an early payment agreement with a person who has locked in a DC rate pursuant to Section 26.2 of the DCA. The agreement can provide for all or any part of the DC to be paid before it would otherwise be due to mitigate interest charges.

If any development charges or interest charges, or any part thereof remains unpaid after it becomes payable (under both Sections 26.1 and 26.2 of the DCA), the amount unpaid shall be added to the tax roll of that property and collected in the same manner as taxes.

OTHER MATTERS: At this time, the City will not require additional security for deferrals eligible under Section 26.1 of the DCA. The deferral plans will be monitored and will be addressed should non- payment become an issue, with any unpaid DC’s transferred to the tax roll of the property.

Section 27 of the DCA allows a municipality to enter into an agreement with a person who is required to pay a development charge providing for all or any part of a development charge to be paid before or after it would otherwise be payable. The Chief Financial

98 Officer is authorized to execute Development Charge payment agreements, Section 27 agreements for payment before or after payments would otherwise be made, and any other agreements he or she deems necessary for the proper implementation or administration of this policy, in a legal form satisfactory to the City’s Solicitor and upon business terms satisfactory to the Chief Financial Officer.

POLICY COMMUNICATION The interest rates being used shall be made available on the City’s development charges website. The interest rates shall also be published as part of the City’s development charges pamphlet publication.

RELATED PROCEDURES There are no related procedures.

RELATED DOCUMENTS/LEGISLATION Development Charges Act S.O. 1997, c. 27, as amended and all regulations thereto.

99 Item #9

To: COUNCIL

Meeting Date: 09/22/2020

Subject: P20-56 Aerial Fire Truck

Submitted By: Sheryl Ayres, Chief Financial Officer

Prepared By: Denise Hellyer, Senior Buyer

Report No.: 20-217(CRS)

File No.: P20-56

Recommendation(s)

THAT Report 20-217(CRS) Aerial Fire Truck be received;

AND THAT Council approve a capital project budget of $1,430,000 to be funded from the Equipment Reserve Fund – Fire;

AND THAT Council approve the transfers to/from Reserve Funds as outlined in the Financial Impact section of this report;

AND FURTHER THAT Council approve the award of Proposal P20-56 Aerial Fire Truck to Commercial Truck Equipment Company of Delta, BC for the total cost of $1,090,415.14 in U.S. Funds, this being the only submission received.

Executive Summary

Purpose

• Council approval is required for approval of a capital project budget and to transfer funding to the capital project to award the project as detailed herein.

Key Findings

• A capital project was included in the 2021 Capital Budget Forecast for the replacement of an aerial fire truck. Due to a lead time of 12-14 months, pre- approval of the budget is required in 2020 and funds will not be expended until 2021, as previously anticipated.

• There was one proposal received through a competitive process.

100 Financial Implications

• The award of this proposal will require approval of funding in the amount of $1,430,000 from the Equipment Reserve Fund - Fire in 2020 to award the purchase of the aerial fire truck.

• The 2021 Capital Budget Forecast included an allocation of $1,348,392 for the purchase of the aerial fire truck. An additional $80,000 is required above the forecast budget.

• The purchase price is in US$ and staff will be identifying options to mitigate any risk in fluctuations of the exchange rate prior to the funds being expended.

Background

The 2021 Capital Budget Forecast included a project for Equipment Replacement which included an allocation for the replacement of an aerial fire truck. The current aerial will be 20 years old in 2021 and therefore unable to be used in service as a fire department vehicle, as per NFPA regulations. Due to a 12-14 month lead time for the truck to be built and delivered, pre-approval of the budget is required in 2020 to ensure the truck is in service before the end of 2021.

The proposal was released to obtain competitive bids for the purchase of an aerial fire truck. One compliant proposal was received in response to the RFP.

Analysis

Strategic Alignment

PEOPLE To actively engage, inform and create opportunities for people to participate in community building – making Cambridge a better place to live, work, play and learn for all.

Goal #2 - Governance and Leadership

Objective 2.5 Focus on the responsible management of financial resources, ensuring transparency and accountability.

The public bidding process ensures the City maintains an open and transparent public process that provides accountability on the utilization of financial resources.

Comments

The 2021 Capital Budget Forecast included $1,348,392 for the purchase of a replacement aerial fire truck. Based on the proposal that was received, additional funding of $80,000 is required for the purchase of the truck, including the anticipated

101 rate of exchange on the US$. Staff will be identifying options to mitigate any risk in fluctuations of the exchange rate prior to the funds being expended in 2021.

Procurement confirms that the rules under Procurement By-law No. 19-187 were adhered to in the issuing and awarding of this solicitation.

The funds will be committed in 2020 with the issuing of a purchase order to the vendor however, the payment of the funds will not occur until delivery and acceptance of the vehicle in 2021.

Existing Policy/By-Law

Under Procurement By-law 19-187, the Manager of Procurement, or their designate who is under the general direction of the Chief Financial Officer, is delegated the authority to approve the award of Tenders and Proposals over $500,000 when all of the following conditions have been satisfied: a) when there is sufficient funding, as approved by Council through the budget process and verified by the Finance Division by the Departmental Recommendation to Award Report. b) when all procedures in accordance with this By-law, have been followed; and c) when the lowest compliant Tender bid or highest scored Proposal is accepted and recommended. This procurement requires approval from Council as additional funding is required.

Financial Impact

The 2021 Capital Budget Forecast included $1,348,392 for the purchase of a replacement aerial fire truck to be funded from the Equipment Reserve Fund - Fire. Based on the proposal received, an additional $80,000 is required above the forecast budget.

The proposal received is in US$ and the estimated budget is based on the Bank of Canada exchange rate of 1.3097 as of August 28, 2020. Staff will continue to monitor the rate of exchange and identify options to mitigate any financial risk due to fluctuations in the rate between the time of awarding the proposal and deliver of the aerial fire truck.

Public Input

Request for Proposal documents for this project were made available to the public for viewing and submission on the City’s Bids and Tenders website.

This proposal had ten plan takers and one proposal submission was received.

102 Internal/External Consultation

Request for Proposal documents were compiled by Procurement, however the detailed specifications contained within the proposal documents were prepared and submitted to Procurement by the Fire Department.

The advertising for this proposal was as follows:

a) Advertised on the City’s Bids and Tenders website: July 6, 2020

b) Proposal Closing Date: August 7, 2020

Final Date for Acceptance of Proposal: October 7, 2020

Conclusion

Council approval of a capital project budget and funding from the Equipment Replacement Reserve Fund - Fire is required to award Proposal P20-56 Aerial Fire Truck.

Signature

Division Approval

Name: Sheryl Ayres Title: Chief Financial Officer

Departmental Approval

Name: Dave Bush Title: Deputy City Manager, Corporate Services

103 City Manager Approval

Name: David Calder Title: City Manager

Attachments

• Departmental Recommendation to Award Proposal

104 Departmental Recommendation to Award Proposal

1. Number and Description: P20-56 Manufacture and Supply of a Single Axle Rear Mount Aerial Apparatus

2. Department: Fire Dept. File: P20-56

3. Date to Council: September 22, 2020

4. Purpose / Description of Proposal: Replacement of a 20-year-old Aerial Apparatus

5. Submissions: Company City Bid Amount a) Commercial Truck Equipment Co. Woodstock $ 1,090,415.14 US

6. Price Comparison: There was (1) proposal received through a competitive RFP process.

7. Recommendation to Award: It is recommended to Council to approve the award to Commercial Truck Co.

8. Justification for Award: The proposed aerial apparatus suits the needs of the Cambridge Fire Department. This vehicle compliments the fleet with diverse capabilities while mirroring existing apparatus operations and strategies.

9. Reasons for Non-bidding: Non-responding dealers were contacted after closing to inquire reasons for not responding. Responses included that high workloads/vacation schedules prohibited bidding as well as being unable to meet requirements.

10. Consultant’s Comments: n/a

11. Exceptional Circumstances: Replacement of the 2001 American Lafrance Aerial Apparatus is needed as it will reach its maximum usable lifespan in 2021. The proposed apparatus will take 11 months to manufacture from the time of Purchase Order Issue. Fire Underwriters Laboratory of Canada (ULC), National Fire Protection Association (NFPA) and Risk Management Services (Fire Underwriters) advise replacement of all Fire Apparatus by the maximum service life of 20 years.

105 12. Expenditures: Account # Amount a) Proposal 20-56 A/00896-10-501050 C$ 1,428,116.71

(Contract in USD – August 28, 2020 Bank of Canada exchange rate used as an estimate @ 1.3097) H.S.T. 182,443.80

Subtotal $ 1,585,857.62

Less HST Rebate (x.8646) 157,740.91

Total Expenditures C$ 1,428,116.71

13. Financing From Capital/Operating/Equipment Budget and/or Reserve Fund: Account # Description 408014 Contribution from RF – Equipment RF Fire $1,348,392.00

Total Financing $ 1,348,392.00

14. Submission Is Over Budget Approval: $79,724.71

15. Submission Is Over Budget. Source of Additional Funding: Submission is likely to be over budget. The CDN dollar has been getting stronger and is expected to improve over the course of the next year. An exact amount will depend on the exchange rate at the time of delivery or USD purchase. The current estimate is based on Bank of Canada posted rate on August 28, 2020.

16. Comments On Recommending Awards Where Less Than Three Submissions Have Been Received: A fair and open RFP process was completed. No questions or comments were received from any of the proponents during the entire month that the RFP was posted. The Request for Proposal included features that we currently have on other Cambridge Fire Department Vehicles. These features have been proven to be very successful and valuable. If a proponent couldn’t offer a specific item or feature they had the opportunity to offer an alternative and explain their offering further.

106 Other Comments: The proposed Aerial Apparatus suits the needs of The City of Cambridge now and will also well into the future. A very similar Aerial Apparatus was acquired in 2018 and has proven itself to be a valuable asset in the Fire Department Fleet with very little trouble and only positive reviews. We’ve successfully purchased from Commercial Truck Equipment Co. in the past and it is recommended that we do so again. Funds are being committed in 2020 with the expenditure to occur in 2021. This Capital Project was approved through the 10-year Capital Investment Program forecast to be funded from the Equipment Reserve Fund in 2021. It is necessary to commit funds in 2020 to move forward with award process.

Prepared by: Matthew Peachey, Captain Mechanic - Firefighter

Manager: Damond Jamieson, Acting Fire Chief

Department Head Approval: Dave Bush, Deputy City Manager – Corporate Services

107 Item #10

3To: COUNCIL

Meeting Date: 09/22/2020

Subject: One-year Extension of Regional Maintenance Agreement

Submitted By: Mike Parsons, Director of Environmental Services

Prepared By: Dave Lukezich, Manager of Roads

Report No.: 20-220 (IFS)

File No.: C1102

Recommendation(s)

THAT Council staff report 20-220(IFS) – One-year Extension of Regional Maintenance Agreement be received.

AND THAT the Mayor and Clerk be authorized to execute an additional one-year extension to the “Area Maintenance Agreement”, subject to the satisfaction of the City Solicitor, with the Regional Municipality of Waterloo, for the City of Cambridge to continue to provide summer and winter maintenance services on selected Regional Roads within the City of Cambridge for the period from January 1, 2021 to December 31, 2021, as outlined in this report.

Executive Summary

Purpose

• To recommend approval of an additional one-year extension of the Area Maintenance Agreement (AMA) 2014 - 2019 with the Region of Waterloo which was extended as per the council report 19-276(CD) until December 31, 2020.

Key Findings

• An additional one-year contract extension will allow the Cities of Cambridge, Kitchener, and Waterloo to establish appropriate unit rates for Regional roads along the ION route and new active transportation infrastructure such as segregated bike lanes prior to negotiating a longer term contract.

108 • Approving the additional one-year contract extension will enable Cambridge to continue to recover costs from the Region of Waterloo for maintaining Regional roadways. Financial Implications

• The City of Cambridge is reimbursed by the Region of Waterloo through a full cost-recovery agreement. Actuals paid to the City for summer and winter maintenance during 2019 totalled $1.40 million.

Background

The current agreement between the City of Cambridge and Region of Waterloo for road maintenance performed by Cambridge staff on Regional roads is expiring on December 31, 2020.

Since the formation of the Region of Waterloo in 1973, general road maintenance of Regional roads within the urban boundaries of Kitchener, Waterloo, and Cambridge has been provided by the local municipalities and funded by the Region. An agreement was established in 2006 that included specifications/performance standards for the maintenance activities and saw residents benefit from more seamless and efficient service delivery throughout the Region. Maintenance tasks included in the existing agreement are:

• Road patrol • Summer maintenance including; o surface asphalt maintenance, o shoulder maintenance, o street sweeping, o spring cleanup (litter pick up), and o right of way drainage including catch basin and maintenance hole maintenance • Leaf pickup and disposal • Winter snow and ice control (on roads) • Emergency response (e.g. accident clean up, washouts, spills, trees, debris, etc.) • Preventative maintenance agreed to by the Region.

The Region has experienced significant growth throughout the duration of the existing 5-year AMA. One notable growth item is the construction of the light rail transit system, known as the ION.

Construction of the ION begun just as the current long term agreement took effect; and ridership commenced in June 2019. The roads for which the ION travels are Regionally

109 owned and form part of the agreement. Kitchener and Waterloo have yet to determine operational costs associated with the ION.

In addition, there has been a strategic focus placed on providing more active transportation options within the Region and many types of active transportation routes (on-road cycling infrastructure, separated cycling infrastructure, additional sidewalks, multi-use trails, etc.) have been installed since 2014. In 2018, the Province of Ontario passed new legislation (O.Reg 239 – Minimum Maintenance Standards for Municipal Highways) requiring municipalities to provide year-round maintenance of these types of facilities; to raise the level of maintenance to that historically reserved for roads. In many cases, city staff has not yet established the impacts of year-round maintenance on these new active transportation networks.

All parties agreed that a one-year extension of the existing AMA dated, January 1, 2014 to December 31, 2019, was the most reasonable approach forward to allow for additional analysis of ION and active transportation impacts to the AMA. The current AMA between the Region and three cities runs from January 1, 2020 until December 31, 2020, as approved by Council per staff report 19-276 (CD) dated November 5, 2019 (see Appendix A).

Staff from the Region and three cities met starting in 2019 to discuss the development of a new agreement and continued until March 2020 when all in-person meetings were cancelled due to the COVID-19 pandemic. Due to the COVID-19 emergency management and recovery response, staff did not have the capacity to consider the maintenance agreement. While each municipality enters into a separate agreement with the Region, the terms of each agreement remain virtually identical since the same AMA template is used for all three Cities. Unit rates for identified tasks on the Regional roads are established based on the specific Regional infrastructure within their respective boundaries. Negotiations will resume to establish the appropriate work tasks, unit rates, and infrastructure maintenance requirements to be included in the future AMA. The new long-term AMA would then be implemented January 1, 2022.

Analysis

Strategic Alignment

PEOPLE To actively engage, inform and create opportunities for people to participate in community building – making Cambridge a better place to live, work, play and learn for all.

Goal #7 - Transportation and Infrastructure

Objective 7.2 Work with the Region and other partners to better coordinate the planning, communication and delivery of infrastructure (including roads and other transportation assets) in Cambridge.

110 The additional one-year AMA extension will allow time for each of the area municipalities to monitor the costs to maintain the new Regional infrastructure. As new active transportation and Light Rail transit infrastructure is built on Regional roads within the City of Cambridge limits, realistic unit rates for roadway maintenance will be recovered from the Region.

Comments

After several discussions with Kitchener, Waterloo, and the Region, it was agreed by staff at all three Cities that an additional extension of the AMA by one year would be beneficial to allow each city to evaluate new infrastructure maintenance costs (ION, active transportation). A single contract template exists for all three Cities so a consensus is needed to reach an agreement.

It is expected that the summer and winter maintenance costs of future Regional Road transit and active lifestyle infrastructure within the City of Cambridge will increase significantly over the next 5 years.

Specialized and/or additional equipment, and for extra 2022 labourers, is expected to be required to properly maintain the anticipated new Regional infrastructure.

This increased cost will have to be negotiated in for the long-term contract starting in January, 2022.

Because the AMA is negotiated in partnership with Kitchener and Waterloo, who have agreed to extend the terms for another year, a City of Cambridge Council decision not to approve an extension of the current agreement would eliminate Cambridge as the official maintenance provider of Regional roads in the City, and would see the loss of the associated Regional funding which provides for approximately 8 FTE’s and for various pieces of equipment. Existing Policy/By-Law

There are no existing policies and/or by-laws associated with this report

Financial Impact

In 2019, the City was reimbursed $1,396,193 by the Region for work done on Regional roads under the current 1-year extension period. This amount increases annually by an adjustment factor, which includes inflation, labour, and equipment costs, and by any additional lane km in accordance with the terms and conditions in the agreement. The City receives a lump sum for summer work based on a price per lane kilometre maintained and at least 65% of the established fee per lane kilometre for winter maintenance.

111 The extension of the agreement will enable Cambridge to continue to recover costs from the Region of Waterloo for maintaining Regional roadways.

Unfortunately, the rates in the AMA do not factor in the increased maintenance costs of specialized infrastructure. Because the inventory of specialized infrastructure in Cambridge is currently of minor significance, continuing with the same contract terms are not expected to financially impact to the City.

Table 1 shows the four previous year’s costs recovered from the Region.

Table 1: Summer and Winter Maintenance Recovered Costs

Year Total Recovered

2019 $1,396,193

2018 $1,367,648

2017 $1,234,424

2016 $1,272, 218

Financial Risk Sharing The AMA recognizes that the variability of winter maintenance can be difficult to budget for, however, incorporates payment for certain unavoidable fixed costs associated to providing winter maintenance services. For this, the Region agrees to pay the City no less than 65% of the monthly baseline average (BA). This BA has been calculated using 5-year historical actual winter maintenance costs for each City.

As a function of the AMA’s shared risk model, in a severe winter, the cities agree to cover expenses of 100% to 105% of the BA rate.

Costs in excess of 105% of the BA continue to be reimbursed by the Region.

This shared risk approach provides the cities with additional protection during winter seasons that result in costs that exceed 105% of the BA

Public Input

Posted publicly as part of the report process

Internal/External Consultation

112 Several correspondences were conducted with staff at the City of Kitchener, City of Waterloo, and the Region of Waterloo to discuss extending the existing AMA contract. It was agreed to recommend to each municipal’s respective Council an extension of the existing AMA contract an additional year.

Conclusion

The current one-year extension to the Area Maintenance Agreement between the City of Cambridge and Region of Waterloo for road maintenance performed by Cambridge staff on Regional roads is expiring on December 31, 2020.

Many new and different types of active transportation routes (on-road cycling infrastructure, separated cycling infrastructure, additional sidewalks, multi-use trails, etc.) have been installed within the Region over the past five years with distinctive maintenance needs.

Updated Minimum Maintenance Standards recommend municipalities provide year- round maintenance of these types of active transportation facilities; to protect them from litigation and claims. These levels are similar to those previously reserved for roads.

The additional one-year extension will allow time for each of the three area cities to monitor the costs to maintain the new Regional roadway infrastructure, allowing to better inform all parties of the unit rates to be established in a future multi-year agreement with the Region.

Signature

Division Approval

Name: Mike Parsons Title: Director of Environmental Services

Departmental Approval

Name: Yogesh Shah Title: Deputy City Manager, Infrastructure Services

113 City Manager Approval

Name: David Calder Title: City Manager

Attachments

• Appendix A - Report 19-276(CD) Extension of Regional Maintenance Agreement

114 Appendix A

To: GENERAL COMMITTEE

Meeting Date: November 5, 2019

Subject: Extension of Regional Maintenance Agreement

Submitted By: Mike Parsons, Director of Public Works

Prepared By: Dave Lukezich, Manager of Roads

Report No.: 19-276(CD)

File No.: C1102

Recommendation(s)

THAT the Mayor and Clerk be authorized to execute a one-year extension to the “Area Maintenance Agreement”, subject to the satisfaction of the City Solicitor, with the Regional Municipality of Waterloo, for the City of Cambridge to continue to provide general, routine summer and winter maintenance services on Regional Roads within the City of Cambridge for the period from January 1, 2020 to December 31, 2020, as outlined in this report;

AND THAT, Council continue to endorse building a reserve fund dedicated to contingency needs for the maintenance of Region roads services in the City of Cambridge.

Executive Summary

Purpose

• To recommend approval of a one-year extension of the Area Maintenance Agreement with the Region of Waterloo as the current 2014-2019 agreement expires December 31, 2019

Key Findings

• A one-year contract extension will allow the Cities of Cambridge, Kitchener, and Waterloo to establish appropriate unit rates for Regional roads along the ION route and new active transportation infrastructure such as segregated bike lanes prior to negotiating a longer term contract.

115 • Approving the one-year contract extension will enable Cambridge to continue to recover costs from the Region of Waterloo for maintaining Regional roadways. Financial Implications

• The City of Cambridge is reimbursed by the Region of Waterloo through a full cost-recovery agreement. Actuals paid to the City for summer and winter maintenance during 2018 totalled $1.37 million.

Background

The current agreement between the City of Cambridge and Region of Waterloo for road maintenance performed by Cambridge staff on Regional roads is expiring on December 31, 2019.

Since the formation of the Region of Waterloo in 1973, general road maintenance of Regional roads within the urban boundaries of Kitchener, Waterloo, and Cambridge has been provided by the local municipalities and funded by the Region. An agreement was established in 2006 that included specifications/performance standards for the maintenance activities and saw residents benefit from more seamless and efficient service delivery throughout the Region. The current Area Maintenance Agreement (AMA) between the Region and three cities runs from January 1, 2014 until December 31, 2019 (see Appendix A). Staff has been working partners with the Region and area municipalities over the past year to establish a new agreement to be effective January 1, 2020. Staff from the Region and three cities met on a number of occasions in 2019 to discuss the development of a new agreement. While each municipality enters into a separate agreement with the Region, the terms of each agreement remain virtually identical since the same AMA template is used for all three Cities. Unit rates for identified the tasks on the Regional roads are established based on the specific Regional infrastructure within their respective boundaries.

Maintenance tasks included in the existing agreement are:

• Road patrol • Summer maintenance including; o surface asphalt maintenance, o shoulder maintenance, o street sweeping, o spring cleanup (litter pick up), and o right of way drainage including catch basin and maintenance hole maintenance • Leaf pickup and disposal • Winter snow and ice control (on roads)

116 • Emergency response (e.g. accident clean up, washouts, spills, trees, debris, etc.) • Preventative maintenance agreed to by the Region.

The Region has experienced significant growth throughout the duration of the existing 5-year AMA. One notable growth item is the construction of the light rail transit system, known as the ION.

Construction of the ION begun just as the current agreement took effect; and ridership commenced in June 2019. The roads for which the ION travels are Regionally owned and form part of the agreement. Kitchener and Waterloo have yet to experience a full year’s maintenance cycle along the ION route.

In addition, there has been a strategic focus placed on providing more active transportation options within the Region and many types of active transportation routes (on-road cycling infrastructure, separated cycling infrastructure, additional sidewalks, multi-use trails, etc.) have been installed since 2014. In 2018, the Province of Ontario passed new legislation (O.Reg 239 – Minimum Maintenance Standards for Municipal Highways) requiring municipalities to provide year-round maintenance of these types of facilities; to raise the level of maintenance to that historically reserved for roads. In many cases, city staff have not yet established the impacts of year-round maintenance on these new active transportation networks.

All parties agree that a 1-year extension of the existing AMA dated, January 1, 2014 to December 31, 2019, is the most reasonable approach forward to allow for additional analysis of ION and active transportation impacts to the AMA.

Negotiations will be ongoing to establish the appropriate work tasks, unit rates, and infrastructure maintenance requirements to be included in the future AMA, anticipated to be completed late fall of 2020 for Council’s review. The new AMA would then be implemented January 1, 2021.

Analysis

Strategic Alignment

PEOPLE To actively engage, inform and create opportunities for people to participate in community building – making Cambridge a better place to live, work, play and learn for all.

Goal #7 - Transportation and Infrastructure

Objective 7.2 Work with the Region and other partners to better coordinate the planning, communication and delivery of infrastructure (including roads and other transportation assets) in Cambridge.

117 The one-year AMA extension will allow time for each of the area municipalities to monitor the costs to maintain the new Regional infrastructure. As new active transportation and Light Rail transit infrastructure is built on Regional roads within the City of Cambridge limits, realistic unit rates for roadway maintenance will be recovered from the Region.

Comments

After several discussions with Kitchener, Waterloo, and the Region, it was agreed by staff at all three Cities that an extension of the AMA by one year would be beneficial to allow each city to evaluate new infrastructure maintenance costs (ION, active transportation). A single contract template exists for all three Cities so a consensus is needed to reach an agreement.

It is expected that the summer and winter maintenance costs of future Regional Road transit and active lifestyle infrastructure within the City of Cambridge will increase significantly over the next 5 years.

Specialized and/or additional equipment, and for extra 2020 labourers are expected to be required to properly maintain the anticipated new Regional infrastructure.

This increased cost will have to be negotiated in for the contract starting in January, 2021.

Because the AMA is negotiated in partnership with Kitchener and Waterloo, who have agreed to extend the terms for another year, a City of Cambridge Council decision not to approve an extension of the current agreement would eliminate Cambridge as the official maintenance provider of Regional roads in the City, and would see the loss of the associated Regional funding which provides for approximately 8 FTE’s and for various pieces of equipment. Existing Policy/By-Law

There are no existing policies and/or by-laws associated with this report

Financial Impact

In 2018, the City was reimbursed $1,367,648 by the Region for work done on Regional roads. This amount increases annually by an adjustment factor, which includes inflation, labour, and equipment costs, and by any additional lane km in accordance with the terms and conditions in the agreement. The City receives a lump sum for summer work based on a price per lane kilometre maintained and at least 65% of the established fee per lane kilometre for winter maintenance.

118 Unfortunately, the rates in the AMA do not factor in the increased maintenance costs of specialized infrastructure. Because the inventory of specialized infrastructure in Cambridge is currently of minor significance continuing with the same contract terms are not expected to financially impact to the City.

Table 1 shows the three previous year’s costs recovered from the Region.

Table 1: Summer and Winter Maintenance Recovered Costs

Year Total Recovered

2018 $1,367,648

2017 $1,234,424

2016 $1,272, 218

Financial Risk Sharing The AMA recognizes that the variability of winter maintenance can be difficult to budget for however incorporates payment for certain unavoidable fixed costs associated to providing winter maintenance services. For this, the Region agrees to pay the City no less than 65% of the monthly baseline average (BA). This BA has been calculated using 5-year historical actual winter maintenance costs for each City.

As a function of the AMA’s shared risk model, in a severe winter, the cities agree to cover expenses of 100% to 105% of the BA rate.

Costs in excess of 105% of the BA continue to be reimbursed by the Region.

This shared risk approach provides the cities with additional protection during winter seasons that result in costs that exceed 105% of the BA; however, it also requires the City to establish a winter reserve fund equal to 5% of the BA rate ($52,000).

Public Input

There was no public input solicited or required for this contract extension.

Internal/External Consultation

Several meetings were conducted with staff at the City of Kitchener, City of Waterloo, and the Region of Waterloo to discuss extending the existing AMA contract. It was agreed to recommend to each municipal’s respective Council an extension of the existing AMA contract by one year.

119 Conclusion

The current Area Maintenance Agreement between the City of Cambridge and Region of Waterloo for road maintenance performed by Cambridge staff on Regional roads is expiring on December 31, 2019.

Many new and different types of active transportation routes (on-road cycling infrastructure, separated cycling infrastructure, additional sidewalks, multi-use trails, etc.) have been installed within the Region over the past five years with distinctive maintenance needs.

Updated Minimum Maintenance Standards recommend municipalities provide year- round maintenance of these types of active transportation facilities; to protect them from litigation and claims. These levels are similar to those previously reserved for roads.

The one-year extension will allow time for each of the three area cities to monitor the costs to maintain the new Regional roadway infrastructure, allowing to better inform all parties of the unit rates to be established in a future multi-year agreement with the Region.

Signature

Division Approval

Name: Mike Parsons Title: Director of Public Works

Departmental Approval

Name: Hardy Bromberg Title: Deputy City Manager, Community Development

City Manager Approval

120 Name: David Calder Title: City Manager

Attachments

• Current Area Maintenance Agreement

121

REGION OF WATERLOO TRANSPORTATION DIVISON MAINTENANCE AGREEMENT WITH LOCAL MUNCIPALITIES

This Agreement made this ______day of ______, 2015

BETWEEN:

The Regional Municipality of Waterloo (the “Region”)

- and – The City of Cambridge (the “Local Municipality”)

WHEREAS the Region has jurisdiction over Regional roadways that are located within the boundaries of the Local Municipality:

AND WHEREAS the parties have agreed, subject to the terms and conditions herein, that the Local Municipality shall provide certain road maintenance services on selected sections of the said roadways;

NOW THEREFORE IN CONSIDERATION OF the covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto covenant and agree to carry out the terms and conditions of this Agreement as follows:

TERMS AND CONDITIONS

1.0 Scope of the Maintenance Agreement

This maintenance agreement incorporates provision by the Local Municipality of routine summer and winter maintenance services on selected Regional Roads within the Regional Municipality of Waterloo. These services, with some exceptions, as shown in the documents, are to be provided for based on the terms of this agreement. Work not included in the main terms of the Agreement will generally be paid for on a Work Order basis, after negotiation between the parties upon approval of the Contract Administrator. The scope of this Maintenance Agreement may be modified by the Region, subject to agreement by both parties to payment adjustments. The scope of this Maintenance Agreement may also be modified by mutual agreement of both parties. a) This Maintenance Agreement is for the work identified in Schedule “A” and includes items such as:

♦ Road patrolling. ♦ Summer maintenance including surface maintenance, shoulder maintenance, street sweeping, spring cleanup, and right of way drainage including catchbasin and manhole maintenance ♦ Leaf Pickup and disposal ♦ Winter snow and ice control ♦ Emergency response (e.g. accidents, washouts, spills, trees, debris, etc.)

122 ♦ Preventative maintenance as agreed to by the Region. b) This Maintenance Agreement does not include the following work:

♦ Sign installation and maintenance. ♦ Traffic control signal maintenance. ♦ Centre and edge line painting. ♦ Special markings and crosswalks (zone painting). ♦ Bridge maintenance (except sweeping and initial emergency response to accidents) ♦ Crack Sealing ♦ Tree maintenance and planting (except in response to emergency situations) ♦ Street lighting. ♦ Utility cut repair for which the Local Municipality charges back to the utility ♦ Shrub bed maintenance ♦ Vegetation management (grass cutting, island trimming, etc)

c) Electronic Control System for Salt/Sand Spreader for Winter Maintenance

♦ To ensure the efficient use of salt and sand used on the Regional Road System and to aid in the overall reduction of salt use as per the Region’s Winter Maintenance Policy all vehicles used to perform winter snow and ice control work under this agreement shall be equipped with automatic spreader controls capable of reporting tonnes of material used and spread rates. Controllers must have downloadable on board memory that stores winter trip events and must also be compatible with the Region’s Automatic Vehicle Location (AVL) or approved equivalent system for the purpose of vehicle and data tracking. d) Ontario Traffic Manual (OTM) Book 7

♦ To ensure uniformity and safety, the Local Municipality will be in compliance with the traffic protection requirements as outlined in the Ontario Traffic Manual Book 7 when performing work on Regional Roads under this Agreement.

e) Roadside Safety Manual (RSM)

♦ The Roadside Safety Manual (RSM) identifies the basic requirements for construction and maintenance of roadside safety features, such as guide posts, cable, rails, and end treatments.

2.0 Term of Agreement

The term of this Agreement shall be effective commencing on the 1st day of January, 2015 and shall remain in effect until the 31st day of December, 2019 with an option to renew for a second five year term. This Agreement shall automatically renew annually each year thereafter upon the same terms and conditions herein contained unless terminated by either party in writing by the 30th day of September.

3.0 Notice

Notice by either party shall be served by registered mail, facsimile transmission (“fax”) or courier, postage or delivery charges prepaid, addressed, in the case of a Local Municipality, to

123 The City of Cambridge 50 Dickson Street Cambridge ON N1R 8S1 Attention: Commissioner of Transportation and Public Works

The City of Kitchener P.O. Box 1118 200 King Street West Kitchener ON N2G 4G7 Attention: Director of Operations

The City of Waterloo 265 Lexington Court Waterloo ON N2J 4A8 Attention: General Manager of Public Works

And in the case of the Region, to

The Regional Municipality of Waterloo 150 Frederick Street Kitchener, ON N2G 4J3 Attention: Commissioner of Transportation and Environmental Services Fax: (519) 575-4453 And all such notices by mail shall be deemed to have been received by the addressee on the third business day following mailing or if by fax or courier, on the day of delivery or transmission unless delivered or transmitted on a weekend or holiday, in which case it shall be deemed to have been received on the next business day.

4.0 Description of the Work Area

The work area is described in Schedule “B”, Description of the Work Area, Distances and Classes of Roadway. Each roadway, its centerline distance, lane mileage and road class is shown on a list entitled Limits of Responsibility.

A maintenance lane calculation represents a length of a roadway section that is to be maintained. A Maintenance Lane Length is calculated by the following formula:

A lane of any width is determined to be a maintenance lane if it meets the following criteria for the entire length of a section of road (block to block)

-A continuous marked traveled lane -Back to back marked left/right turn lane -Marked left or right turn lane -Marked gore areas equivalent to at least a standard lane width

A bike lane calculation represents a length of bike facility (bike lane or paved shoulder) that is to be maintained. A bike lane length is calculated by the following formula

124 d. The Local Municipality shall contact the Agreement Administrator for maintenance repairs

125 required outside this contract.

e. The Local Municipality shall carry out its duties under this Agreement, in accordance with all applicable technical standards and specifications (e.g. OPSS, CSA etc), all Governmental Laws and Regulations including but not limited to the Occupational Health and Safety Act (“OHSA”) and all environmental laws.

f. The Local Municipality shall have complete control of the work required under this Agreement and shall effectively direct and supervise the work so as to ensure conformity with the Agreement. The Local Municipality shall be responsible for maintenance and construction means, methods, techniques, sequences, and procedures and for coordinating the various parts of the work.

g. The Local Municipality shall obtain the necessary permits from the Region as required based on the Region’s Work Permit Bylaw #07-029 and complete all work in accordance with the Bylaw and permits.

h. By agreeing to perform work under this agreement the Local Municipality acknowledges that they will be responsible for meeting all of the “employer” obligations under the OHSA and shall ensure that all work is carried out in accordance with the OHSA and its regulations. This includes, but is not limited to, the duties to provide a safe workplace; prepare and provide Traffic Protection Plans for each activity performed by their employees; provide information and educate workers on workplace hazards; appoint a competent supervisor; prepare and provide a health and safety policy, implement a comprehensive health and safety program to support the policy and take every reasonable precaution to protect the health and safety of workers.

5.3 Dispute Resolution

From time to time a dispute may arise between the Local Municipality and the Region, the intent of which is to resolve such in a fair and timely manner at the lowest appropriate level. It is also intended that the majority of issues shall be resolved without the use of an arbitrator.

For a dispute, the Local Municipality shall give oral notice to the Agreement Administrator followed by written notice of any situation which may lead to a request for additional payment immediately upon becoming aware of the situation. Such written notice shall be directed to the Agreement Administrator and shall include an outline of the work affected, reasoning for additional payment and an estimate of the costs involved. Following notice, the Region shall use their best efforts to resolve the dispute on the following three levels of authority:

i) the Agreement Administrator (“Site Negotiations”) ii) the Region’s Manager of Transportation Operations (“Operations Negotiations”) iii) the Region’s Director of Transportation (“Regional Negotiations”) iv) the Region’s Commissioner, Transportation and Environmental Services and Local Municipality equivalent, (“Commissioner Negotiations”).

Site negotiations shall be completed as soon as possible with the intent that the dispute may be resolved at this stage. Failing that, Operations Negotiation shall take place as soon as possible thereafter and so on up to the Director’s level and Commissioner’s level. If any issue is not within the relevant negotiator’s level of authority to decide it shall be elevated to the next level of authority. The Local Municipality shall indicate to the Agreement Administrator if a disputed issue will be pursued to the next level in the negotiation process.

126 If a disputed issue is not resolved satisfactorily through the negotiation level and the Local Municipality wishes to pursue the issue further, the issue may be resolved through binding arbitration pursuant to the Arbitration Act, 1991 (“the Arbitration Process”). Each party shall be responsible for its own cost related to the use of the Arbitration Process. The costs of the arbitrator, meeting facilities and so on will be shared equally by the Local Municipality and the Region.

It is agreed that the Local Municipality shall in every case where there is a dispute, continue to perform the works until resolution, with all due diligence and expedition whether or not notice, oral or written, of the dispute has been served or received.

6.0 Payment

All payments shall be on the basis of invoices submitted by the Local Municipality. The Local Municipality shall invoice the Region by the last business day of each month for all of the work done in the previous month, as per the provisions of the Maintenance Agreement, broken down in the manner agreed upon in the costing template.

Periodic audits on individual activities will be performed by the Region in cooperation with the Local Municipality.

Payments shall be based on the lump sum cost as outlined below. No additional payments shall be made for excessive material, equipment or staffing costs.

6.1 Payment for Winter Maintenance

All materials, labour, equipment, etc for winter maintenance activities will be undertaken by the Local Municipality. Payment for winter maintenance shall be based on the following agreed upon amount:

Kitchener - $2,016,036.00 (annual base)/ $403,207.20 (monthly base)/$4,743.17 (per lane km) Waterloo - $996,082.00 (annual base)/$199,216.40 (monthly base)/$4,194.74 (per lane km) Cambridge - $1,043,066.00 (annual base)/$208,613.20 (monthly base)/$4,080.06 (per lane km)

The Region acknowledges that the variability of winter can have an impact on winter costs and that there are certain fixed costs attached to providing winter maintenance services, and as such:

1. The Region agrees to pay 65% of the Monthly Base Amount incurred by Local Municipalities on a monthly basis, regardless if the actual monthly cost is below 65% of the Monthly Base Amount.

2. The Local Municipality will invoice the actual monthly cost to the Region, and the Region agrees to pay the full amount of the invoice if the invoice is greater than 65% of the Monthly Base Amount.

Each calendar year, winter maintenance costs will be reviewed by both parties and the following adjustments will be made:

3. If the actual costs of the Local Municipality exceed the Annual Base Amount, the Local Municipality agrees to absorb costs exceeding the Annual Base Amount up to 105% of the Annual Base Amount. These costs incurred by the Local Municipality shall be tracked and recorded.

127 4. Subject to paragraph 3, if the actual costs of the Local Municipality exceed 105% of the Annual Base Amount, the Region agrees to pay the Local Municipality the actual costs submitted over and above 105% of the Annual Base Amount. Upon request, the Local Municipality will provide documentation to support and explain the actual costs over and above 105% of the Annual Base Amount. Disputes regarding the actual costs submitted over and above 105% of the Annual Base Amount shall be resolved in accordance with the dispute resolution procedures provided for in this Agreement.

5. Any actual costs of the Local Municipality that are less than the Annual Base Amount shall be tracked and recorded, being a cost saving to the Region.

Periodically, and no later than at the end of the first term of this Agreement, winter maintenance costs for preceding years will be reviewed to determine if the Region can reimburse the Local Municipality for expenses outlined in paragraph 3 based on cost savings to the Region outlined in paragraph 5. This means that if the Region saved money in any given year related to actual costs of the Local Municipality that are less than the Annual Base Amount during the term of the Agreement, as tracked and recorded in paragraph 5, these these savings shall be paid to the Local Municipality to offset the costs incurred by the Local Municipality in paragraph 3.

Notwithstanding paragraph 4, the Local Municipality may submit information for any excess winter costs for Region consideration.

A portion of any savings remaining at the end of the Agreement, as tracked and recorded in paragraph 5, may be considered in negotiations for any new Agreement to be included as an opening balance.

6.2 Payment for Summer Maintenance

All materials, labour, equipment for summer maintenance will be undertaken by the Local Municipality. Payment for summer maintenance shall be based on the following agreed upon amount:

Kitchener - $569,045.00 (annual lump sum amount) $1,487.31 (per lane km) Waterloo - $422,531.00 (annual lump sum amount) $1,779.38 (per lane km) Cambridge - $362,786.00 (annual lump sum amount) $1,655.35 (per lane km)

6.3 Non Routine Winter Services

It is understood that there is variability in winter weather and at times there will be opportunities to complete activities during what may be considered the winter season. Such activities may include things such as street sweeping, debris cleanup, roadway patching, etc. The Region agrees to pay the Local Municipalities for such work and that it be included in the winter agreed upon amounts on condition that it be approved and meaningful activities.

6.4 Payment for Work Orders

Work not included in Schedule “A” will be paid on a work order basis after negotiation between the parties and upon written approval of the Contract Administrator.

The Local Municipality shall include the cost of work performed under an Approved Work Order in the next monthly invoice after the completion of the work. Payment for the work shall be according to the terms of the Work Order. From time to time work performed under a Work Order may not be on the basis of a price negotiated in advance of the work but may be on the basis of Time and Material. Payment then would be full compensation for all labour, equipment and material to do the work on a Time and Material Basis, such costs to be based on the following:

128

a. Current Labour Cost (Salaries and Wages) including First Line Supervision costs.

b. Employee Fringe Benefit Cost – Percentage of labour costs as annually agreed to by the Region and the Local Municipality.

c. Equipment Cost – The cost of equipment based on the Local Municipality’s current hourly rate for vehicles and equipment.

d. Materials Cost – The actual cost of construction and maintenance materials utilized by the Local Municipality in performing the services.

e. Other Equipment or Service Cost – The actual cost to the Local Municipality in employing equipment or services not directly owned by the Local Municipality.

f. Administration and Overhead Cost – A seven percent (7%) fee calculated on the total actual maintenance costs as covered by items 5.3(a) and 5.3(e) for administration and overhead.

g. Such other costs as may be mutually agreed to by the Region and the Local Municipality.

6.5 Annual Adjustment to the Winter and Summer Lump Sum Price per lane Kilometer.

This Maintenance Agreement provides for an adjustment to the Annual winter BA amount and summer Lump Sum Price per lane kilometer based on a blend of inflation in labour, equipment and on material. It will result in an adjustment factor which reflects 40% of labour, 25% equipment and 20% material inflation. 15% of the factor, representing the Local Municipalities general overhead will not be adjusted.

The inflation indicators which will be used are as follows:

Indicator A, for Labour: the indicator for labour is the wage rate set for Equipment and Maintenance Operator (dump truck/snowplow driver).

Indicator B, for Equipment: the indicator for equipment is a Tandem Axle Dump Truck which includes such items as maintenance and fuels costs.

Indicator C, for Material: the indicator for material will be the co-op tender price for salt.

The adjustment factor, which will be applied to the Annual Lump Sum Price, will be calculated as follows; Adjustment Factor = 40% of the change in labour indicator A + 25% of the change in equipment indicator B + 20% of the change in materials indicator C + 15% not adjusted.

6.6 Plant Additions or Deletions

If the number of lane kilometers in the work Area increases (or decreases) during the life of this maintenance agreement, it will require additional (or less) maintenance effort. To compensate the Local Municipality for such changes, the Region will annually review the road mileages in the agreement and will credit (or debit) the Local Municipality on an annual basis.

129 130 Region, its officers, employees, Local Municipalities, agents and permitted successors and assigns in regard to: (a) the design and construction of a road under the authority and jurisdiction of the Region; and (b) maintenance or other works listed in subparagraph 1.0(b) of this Agreement.

7.2 Comprehensive General Liability Insurance

Each party shall purchase and maintain third party liability insurance acceptable to the other throughout the term of this Agreement. Coverage shall consist of a comprehensive policy of public liability and property damage insurance in an amount not less than $10,000,000 per occurrence and such insurance shall name the other as an additional insured thereunder. Such insurance shall be extended to include the following additional endorsements: Products and Completed Operations; Owners and Local Municipalities (Service Providers) Protective Liability; Contingent Employers Liability; Personal Injury; Contractual Liability; Non-Owned Automobile Liability and Cross Liability with a Severability of Interest Clause.

Each party’s insurance shall state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail to the other. Any deductibles or self-insured retention must be declared to and approved by the other and any such deductible or self-insured retention shall be the sole responsibility of the respective party in the event of a claim.

The Local Municipality’s insurance coverage shall be the primary insurance to the insurance carried by the Region in regard to claims relating to subparagraph 7.4.1 of this Agreement. Any insurance or self-insurance maintained by the Region shall be excess of the Local Municipality’s insurance and shall not contribute with it.

The Region’s insurance coverage shall be the primary insurance to the insurance carried by the Local Municipality in regard to claims relating to subparagraph 7.4.2 of this Agreement. Any insurance or self-insurance maintained by the Local Municipality shall be excess of the Region’s insurance and shall not contribute with it.

Each party shall be responsible for their own insurance deductible.

7.3 Automobile Liability Insurance:

Each party shall purchase and maintain automobile liability insurance in a form acceptable to the other, to a limit of $10,000,000 inclusive for bodily injury, death and damage to property. Coverage is required for all automobiles owned, leased, hired, or borrowed by the party, for the direct or indirect use of the party in the performance of its duties under this Agreement.

Each party shall forward to the other a “Certificate of Insurance” from their insurer completed in accordance with these stated provisions.

7.4 Claims

In the event of a claim, notice of claim or the potential of a claim, by a third party for bodily injury or property damage, the following procedures shall apply:

1. For claims relating solely to the maintenance services required by or carried out by the Local Municipality under subparagraph 1.0 (a) of this Agreement, the Local Municipality shall immediately at its expense adjust, defend or settle the claim. If at the resolution of a claim, the Local Municipality has been found not liable by the Courts, the Region shall reimburse the Local Municipality, forthwith, for any reasonable expenses incurred for the investigation and defense of that claim. For any such claim that is discontinued for any reason prior to the

131 determination of liability by the Courts, the reasonable expenses incurred for the investigation and defense of that claim shall be divided equally between the Local Municipality and the Region. The Local Municipality shall provide all documents and other information necessary for the Region to determine the reasonableness of the Local Municipality’s expenses for the investigation and defence of a claim. The Local Municipality shall take all reasonable steps to obtain and collect its costs from any proceeding under this subparagraph and any reimbursement by the Region under this subparagraph shall be for the net amount for the Local Municipality’s investigation and defence.

2. For claims related solely to: (a) the design and construction of a road under the authority and jurisdiction of the Region; and (b) maintenance or other works listed in subparagraph 1.0(b) of this Agreement, the Region shall immediately at its expense adjust, defend or settle the claim.

3. For claims that invoke both paragraphs 7.4.1 and 7.4.2 of this Agreement, the Region and the Local Municipality shall immediately reach an agreement, subject to the approval of their respective liability insurers, on which party will assume responsibility for adjusting, defending, or settling of such claims with the specific intent of avoiding duplicate adjusting and defense costs. The Region and the Local Municipality shall have the same rights of indemnity with respect to the costs incurred in the adjusting, defending, or settlement of such claims as to the portion of liability assessed by the Courts at the completion of the proceeding.

Any dispute over the adjustment, defence or settlement of such a claim shall be resolved in accordance with the administrative practices as established from time to time by the Waterloo Region Municipalities Insurance Pool.

4. Any dispute, when either the Region or the Local Municipality is not a member of the Waterloo Region Municipalities Insurance Pool, over the amount of the claim in which either the Region or the Local Municipality is entitled to as full or partial indemnification from the other as provided in the items above shall be submitted to Arbitration by written notice given by either party to the other. Upon notice being given the parties will immediately agree upon a single arbitrator to decide the dispute and failing agreement of a single arbitrator each party shall at once appoint an arbitrator and those two arbitrators shall jointly appoint a third arbitrator. The decision of any two of the three arbitrators so appointed shall be final and binding upon the parties who agree with each other that their dispute shall be decided by arbitration alone and not by recourse at law. The arbitrator or arbitrators shall have all the powers given by the Arbitration Act, 1991 and any arbitration will be conducted according to the Arbitration Act, 1991.

8.0 References

Any reference to an Act, regulation, by-law, manual or other such document in this Maintenance Agreement shall include any amendments and successor documents thereto.

IN WITNESS WHEREOF the parties hereto have executed this Agreement.

THE REGIONAL MUNICIPALITY OF WATERLOO

Date Signed Thomas Schmidt, Commissioner of Transportation and Environmental Services

I have authority to bind the Corporation

132

THE CORPORATION OF THE CITY OF

Date Signed Name and Title

Date Signed Name and Title

I/We have authority to bind the Corporation

133 Schedule “A”

Quality Standards & Maintenance Activities

On or around May 1st of each year as part of the Annual Inspection, it is expected that the Local Municipality will make proposals in an “Annual Maintenance Needs Report” to the Region, for work of a “Preventive Maintenance” nature. ‘Preventive Maintenance’ is generally described as that which preserves the infrastructure and typically includes such things as minor drainage improvements, shouldering, rout and seal cracks, chip seals, and hot mix patching. The Region may engage the services of the Local Municipality to carry out some or all of this work, on a negotiated basis depending on the expertise required and availability of funding.

A-1 Maintenance Activities Included

The following activities in conjunction with Regional Quality Standards will be done on a routine basis under the Annual per lane kilometer price:

1. Hot mix patching: shall include the minor repair of paved road surfaces using pre-mixed hot asphalt materials, primarily with hand tools and roller but shall also include allowance for surface grinding asphalt and replacement using a machine spreader and removal of grindings if the City wishes to complete the repair in that fashion. Hot mix patching may also be used for surface bleeding control, depressions, and bumps.

The Region agrees to maintain the annual Spot Resurfacing Program upon Regional Council approval. During the annual road inspections, the Contract Administrator shall complete a review of the asphalt conditions and in conjunction with the city representative shall compile a list of hot mix repair locations to be included in the annual Spot Repair Program. That list will be provided to the Region’s Engineering staff who will review the list with the Contract Administrator. It is understood that the Region will make every attempt to complete the requested repairs within budgetary guidelines. The Contract Administrator shall also determine in conjunction with the city representative if there are any roads that are beyond reasonable maintenance condition. If a roadway is determined to be in such condition, the Contract Administrator shall forward these concerns to the Region’s Transportation Operations Manager for review.

2. Cold Mix Patching: shall include the repair of potholes using cold pre-mix materials.

3. Shoulder Maintenance and Repair: shall include the repair of gravel shoulder washouts with granular material and reinstatement of the proper crossfall, periodic grading and windrow removal, asphalt patching (hot or cold mix) of potholes or surface depressions in paved or surface treated shoulders. Shall also include the placement of additional granular material required to maintain the proper crossfall.

4. Street Sanitation: shall include routine mechanical and manual sweeping of roadways including bike lanes, spills cleanup (glass, oil, diesel fuel etc.), litter pickup, and disposal of debris and sweepings.

During the period of April 1st through October 31st, sweeping will be completed once (1) every three (3) weeks. Outside this time period sweeping will be completed as required. There will be no extra payment for sweeping bike lanes. Payment for sweeping outside this time period will be done so upon approval of the Region and will be paid for under the Winter Agreed Upon Amount.

134 All leaf pickup as required shall be included in the lump sum amount and shall be the full responsibility of the Cities. Leaf pickup standard shall be that of the Local Municipality.

5. Debris Pickup: shall include an annual spring litter pickup as well as the manual removal of trash and debris from the traveled portion of the road or boulevard as required other than by mechanical street sweeping and shall include disposal of the debris.

6. Spring Roadside Winter Damage – The Local Municipality shall be responsible for the repair of all roadsides maintained by them where damage was as a result of winter maintenance activities

7. Brush Control: shall include the removal of overhanging brush from sidewalk areas. In emergency situations the Local Municipality will remove hazardous trees/branches/brush off to the side and contact the Region for cleanup.

8. Storm Sewer Maintenance: shall include the inspection, resetting or replacement of manhole and/or catch basin frames and covers due to breakage or settlement and where the underlying precast sections (moduloc) have and need to be replaced/re-set, including reinstatement of asphalt surface and concrete curb and gutter sections as part of the repair. Also includes removal of sediment and debris from ditches and roadway culverts and appurtenances, and repairs to sewer inlets (ditch inlets). Repairs included under this activity are from the top of the frame and cover to the top of the precast section. This item shall also include general debris or snow/ice removal from the surface (inlet) of catchbasins to ensure proper surface drainage.

9. Mechanical Ditch Maintenance: shall include the cleaning or improving cut slopes using boom-type equipment such as a Gradall or backhoe and shall include removal and disposal of sediment and debris.

10. Safety Devices Maintenance: shall include initial response to secure damaged device. Region shall be notified to make repairs. City shall provide Region with any incident information for third party billing.

11. Barricades and Delineators for Emergency Traffic Control, Detours Special Events, Etc.: shall include the supply, placement and/or removal of temporary barricades or delineators, any fabrication, repair, painting etc. of temporary barricades to maintain them in a serviceable condition for all activities normally associated with operational activities of the road system such as traffic control, detours, special events, emergency situations and roadclosures,etc.

(TBD) For the purposes of capital works that are undertaken by the Region on Regional Roads being maintained by the Local Municipality, the Region shall be responsible for all signage, barricades and detours that are associated with that work.

12. Winter Snow and Ice Control: shall include snow plowing and the spreading, supply, and distribution of abrasives and de-icing/anti-icing chemicals, for the purpose of snow and ice control on roadways and auxiliary lanes. Winter road patrol and supervision of winter control personnel, provision of sand boxes, installation and removal of snow fence or other tools which aid in the control of snow and ice, are deemed to be included in “Winter Snow and Ice Control” and shall be included as part of the lump sum.

13. Snow Loading and Disposal: shall include the machine loading of snow from Regional roadways and Regional bridge sidewalks including the haulage to snow disposal sites. On average lifts will take place twice per season when lane width does not meet Minimum

135 136

6. Storm Sewer Construction: shall include the supply and installation of new storm sewer pipes and leads including catch basins and ditch inlets, driveway culvert replacement, and reinstatement of the work area.

7. Storm Sewer Maintenance: shall include the inspection, (excluding CCTV), cleaning and repair of storm sewers and manholes, roadway culverts, including extensions, repairs to sewer inlets (ditch inlets), outfalls and headwalls, and disposal of waste and excavated material from these activities. Repairs to the manholes and/or catchbasins under this section are from the top of the precast section down inside the sewers. Shall also include emergency cleaning of storm sewers as requested by the Contract Administrator.

Note: Region of Waterloo staff shall arrange for and complete a regular storm cleaning program. However, local Municipalities may be contacted to complete additional cleaning as required which shall be paid under the Work Order process.

8. Guide Post/Cable/Steel Beam Construction and Repairs: shall be the full responsibility of the Region. Cities will be responsible for initial response and securing of damaged device due to accidents or emergencies.

9. Bridge Railing Repair: includes the removal and disposal of damaged railings and/or posts and the repair or installation of a new railing/posts to match existing.

10. Damage resulting from extreme weather related causes: e.g. flooding, tornadoes, lightening, wind or ice storms, which results in additional emergency maintenance response by the Local Municipality shall be charged back to the Region on a time and material basis unless such damage is of a nature which is deemed to be that which is normally associated with routine maintenance of roadways.

11. Safety Devices Maintenance: shall include the installation of any temporary barricades, delineators, flashers or other safety devices required until such time as permanent repair can be made. Also includes keeping the shoulder area under and around guide cable/rail sections installations free of vegetation, debris and material build up.

Note: Any major repairs/replacements of guide rail/cable sections required as the result of age or accident damage shall be communicated to the Contract Administrator as soon as reported or found for action by the Region.

137 A-3 Quality Standards:

A-3-1 CLASSIFICATION OF HIGHWAYS

Objective

The major objectives for the CLASSIFICATION OF HIGHWAYS for the Regional Road network are:

 To establish appropriate levels-of service for a wide variety of Regional Roads  To promote consistency throughout the Region  To ensure the appropriate allocation of resources to respond to maintenance activities

Summary

Purpose

1. For the purpose of these standards, every highway under the jurisdiction of the Region of Waterloo has been classified in the Table to this section as a Class 1, Class 2, Class 3, Class 4, Class 5 or Class 6 highway, based on the speed limit applicable to it and the average daily traffic on it. (Note most Regional Roads are Classified as Class 1, 2 or 3 with a few Classified as Class 4. At this time there are no Class 5 or Class 6 roads under Regional jurisdiction).

2. For the purposes of subsection (2) and the Table to this section, the average annual daily traffic on a highway or part of a highway under Regional jurisdiction shall be determined,

a. By counting and averaging the daily two-way traffic on the highway or part of a highway for the previous calendar year; or

b. By estimating the average daily two-way traffic on the highway or part of the highway in accordance with accepted traffic engineering methods.

Application

1. The following Quality Standards set out the standards of repair for various classes of Regional Roads within the various jurisdictions in the Region of Waterloo.

2. The standards of repair as set out in these Quality Standards are applicable only in respect of motor vehicles using the highway.

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TABLE CLASSIFICATION OF HIGHWAYS

Average Annual Posted or Statutory Speed Limit (kilometres per hour) Daily Traffic 1 (number of 9 8 7 6 5 4 0 motor vehicles) 0 0 0 0 0 0 0 15,000 or more 1 1 1 2 2 2 2

12,000 – 14,999 1 1 1 2 2 3 3

10,000 – 11,999 1 1 2 2 3 3 3

8,000 – 9,999 1 1 2 3 3 3 3

6,000 – 7,999 1 2 2 3 3 3 3

5,000 – 5,999 1 2 2 3 3 3 3

4,000 – 4,999 1 2 3 3 3 3 4

3,000 – 3,999 1 2 3 3 3 4 4

2,000 – 2,999 1 2 3 3 4 4 4

1,000 – 1,999 1 3 3 3 4 4 5

500 – 999 1 3 4 4 4 4 5

200 – 499 1 3 4 4 5 5 5

50 – 199 1 3 4 5 5 5 5

0 – 49 1 3 6 6 6 6 6

139 A-3-2 BITUMINOUS AND SURFACE TREATED SURFACES

Note: All work included in this activity shall be included as part of the lump sum payment unless otherwise stated. Method of repair shall be determined by the local municipality with no additional funding for such specific repairs (eg. Grinding, etc) unless approved by the Administrator.

Activity Description:

Hot Mix Patching shall include the minor repair of paved roads surfaces using premixed asphalt materials, primarily with hand tools and roller and shall include allowance for any other surface maintenance activity such as surface bleeding control, surface planning, depressions, bumps, and the disposal of waste and excavated materials from road maintenance activities.

Cold Mix Patching shall include the repair of potholes using cold pre-mix materials.

Objective

The major objectives for maintaining Urban BITUMINOUS AND SURFACE TREATED SURFACES are:

 To provide a smooth safe riding surface.  To eliminate hazards to vehicular traffic.  To protect the investment in the road surface.

Summary

The level-of-service for Urban BITUMINOUS AND SURFACE TREATED SURFACES shall be in accordance with the following:

1. All potholes of a size sufficient to cause damage or hazard to vehicular or pedestrian traffic shall be repaired either by filling with a temporary cold asphalt preparation or by use of a permanent patching material; i.e., asphalt or epoxy concrete. If a pothole exceeds both the surface area and the depth set out in Table 1 below, the minimum standard is to repair the pothole within the time set out in Table 1 after becoming aware of the fact. A pothole shall be deemed to be repaired if its surface area or depth is less than or equal to that set out in Table 1.

TABLE 1 POTHOLES ON PAVED SURFACE OF ROADWAY

Class of Surface Depth Time Highway Area 1 600 cm² 8 cm 4 days 2 800 cm² 8 cm 4 days 3 1000 cm² 8 cm 7 days 4 1000 cm² 8 cm 14 days 5 1000 cm² 8 cm 30 days

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2. If a surface discontinuity, other than a surface discontinuity on a bridge deck, exceeds the height set out in Table 2 in this section, the minimum standard is to repair the surface discontinuity within the time set out in the Table after becoming aware of the fact.

TABLE 2 SURFACE DISCONTINUITIES

Class of Height Time Highway 1 5 cm 2 days 2 5 cm 2 days 3 5 cm 7 days 4 5 cm 21 days 5 5 cm 21 days

3. If a crack on the paved surface of a roadway is greater, for a continuous distance of three metres or more, than both the width and depth set out in Table 3 in this section, the minimum standard is to repair the crack within the time set out in the table after becoming aware of the fact. A crack shall be deemed to be repaired if its width or depth is less than or equal to that set out in the Table.

TABLE 3 CRACKS

Class of Width Depth Time Highway 1 5 cm 5 cm 30 days 2 5 cm 5 cm 30 days 3 5 cm 5 cm 60 days 4 5 cm 5 cm 180 days 5 5 cm 5 cm 180 days

4. Ruts or corrugations, bumps and depressions occurring on the traveled portion of the road in the wheel paths, at bridge approaches, catchbasins, manholes, etc. shall be repaired through the routine road surface maintenance program. Severe bumps or depressions i.e., railway crossings, bridge expansion joints, etc. that can not immediately be repaired shall be signed accordingly with the appropriate warning device.

5. The cause of free standing water on the roadway shall be investigated and eliminated or repaired.

6. Broken pavement edges and raveled areas shall be repaired if the damaged area extends a significant distance onto the traveled portion such that it constitutes a hazard to vehicular traffic.

7. Surface polishing, slippery when wet areas or bleeding surfaces shall be corrected.

8. Loose gravel on the road surface (including paved areas designated for cyclists) shall be removed through regular manual and/or machine sweeping activities.

Where the above conditions have been identified and can not be repaired immediately, appropriate warning devices shall be erected.

141 A-3-3 SHOULDERS – ASPHALT OR SURFACE TREATED

Note: All work included in this activity shall be included as part of the lump sum payment unless otherwise stated

Activity Description

Shoulder maintenance shall include the repair of gravel shoulder washouts with granular material and reinstatement of the proper crossfall, periodic grading and windrow removal, asphalt patching (hot or cold mix) of potholes or surface depressions in paved or surface treated shoulders.

Objective

The major objectives for maintaining ASPHALT OR SURFACE TREATED SHOULDERS are:

 To maintain a smooth safe shoulder that is relatively free from defects.  To safely accommodate emergency stopping of vehicles.  To provide a safe location for buggy traffic and cyclists.  To provide lateral support of base and surface courses.  To control dusty conditions and rutting at the pavement edge.  To improve drainage from the roadway.  To prevent shoulder rutting and erosion.

Summary

The level-of-service for ASPHALT OR SURFACE TREATED SHOULDERS shall be in accordance with the following:

1. A standard crossfall shall be maintained on all shoulders (see standard entitled Table of Correct Shoulder Crossfall).

2. Pavement and shoulder edges shall be maintained flush.

3. The cause of water ponding shall be eliminated or repaired.

4. Washouts and shoulder undermining caused by heavy rainfall shall be scheduled for repair as soon as possible after the storm.

5. At serious washouts constituting a hazard, appropriate warning signs shall be erected if repairs can not be made immediately.

6. Shoulder edge failures, breaks and raveled areas shall be repaired through routine shoulder/surface maintenance activities.

7. If a pothole in a shoulder exceeds both the surface area and depth set out in Table 1 in this section, the minimum standard is to repair the pothole within the time set out in Table 1 after becoming aware of the fact.

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A pothole shall be deemed to be repaired if its surface area or depth is less than or equal to that set out in Table 1 below.

TABLE 1 POTHOLES ON PAVED OR NON-PAVED SURFACE OF SHOULDER

Class of Surface Depth Time Highway Area 1 1500 cm² 8 cm 7 days 2 1500 cm² 8 cm 7 days 3 1500 cm² 8 cm 14 days 4 1500 cm² 10 cm 30 days 5 1500 cm² 12 cm 60 days

143 A-3-4 GRAVEL SHOULDERS

Note: All work included in this activity shall be included as part of the lump sum payment unless otherwise stated

Activity Description

Shoulder Maintenance and Repair: shall include the repair of gravel shoulder washouts with granular material and reinstatement of the proper crossfall, periodic grading and windrow removal, asphalt patching (hot or cold mix) of potholes or surface depressions in paved or surface treated shoulders. Shall also include the placement of additional granular material required to maintain the proper crossfall..

Objective

The major objectives for maintaining GRAVEL SHOULDERS are:

 To maintain a smooth, safe shoulder.  To safely accommodate emergency stopping of vehicles.  To provide lateral support of base and surface courses.

Summary

The level-of-service for GRAVEL SHOULDERS shall be in accordance with the following:

1. Persistently soft or wet areas of shoulder shall be repaired.

2. Correct crossfall shall be maintained on all shoulders.

3. Shoulder drop-off, ruts and washed areas shall be corrected by the continuous activity of shoulder grading throughout the frost free months.

If a shoulder drop-off is deeper, for a continuous distance of 20 metres or more, than the depth set out in Table 1 in this section, the minimum standard is to repair the shoulder drop-off within the time set out in the Table after becoming aware of the fact.

A shoulder drop-off shall be deemed to be repaired if its depth is less than or equal to that set out in the Table.

In this section, “shoulder drop-off” means the vertical differential, where the paved surface of the roadway is higher than the surface of the shoulder, between the paved surface of the roadway and the paved or non-paved surface of the shoulder.

TABLE 1 SHOULDER DROP-OFFS

Class of Depth Time Highway 1 8 cm 4 days 2 8 cm 4 days 3 8 cm 7 days 4 8 cm 14 days

144 5 8 cm 30 days

4. Shoulders shall be graded as required to achieve the above standard as required.

5. Gravel windrow of pavement edge, outside shoulder edge or under guide rail will be eliminated.

6. Excessively dusty conditions shall be corrected by the application of approved liquid or flake dust control products at a rate suitable for the conditions and type of material used. Dust control agents shall be applied where:

a. Dusty conditions cause a nuisance or present a health hazard to property owners. b. Where dusty conditions present a hazard to traffic. c. In front of commercial establishments, i.e., truck stops, implement dealers, etc. d. At entrances to settlement areas.

7. Washouts and shoulder undermining caused by heavy rainfall shall be scheduled for repair as soon as possible after the storm. At serious washouts constituting a hazard, appropriate warning signs shall be erected until such time as repairs can be made.

8. Gravel shall be added to shoulders on a program basis or when grading or windrow reclamation can not bring back enough gravel to maintain the proper crossfall.

TABLES OF CORRECT SHOULDER CROSSFALL

CORRECT CROSSFALL AT DRIVEWAY ENTRANCES

145 A-3-5 DITCHES

Note: All work included in this activity shall be included as part of the lump sum payment unless otherwise stated

Storm Sewer Maintenance shall include the inspection, cleaning and minor repair of ditches along with the removal of sediment and debris from ditches and roadway culvert ends and shall include the disposal of waste and excavated material from these activities.

Mechanical Ditch Maintenance: shall include the cleaning or improving of cut slopes using boom-type equipment such as a Gradall or backhoe and shall include removal and disposal of sediment and debris

Objective

The major objectives for DITCH maintenance are:

 To maintain the drainage system so as to control and remove surface water within the right-of-way limits.  To prevent erosion of shoulders and side slopes.  To mitigate the damage to fish habitats downstream.

Summary

The level-of-service for DITCH maintenance shall be in accordance with the following and be included within the parameters of the Maintenance Agreement:

1. Obstructions in the flow line shall be removed.

2. Ditches shall be regularly inspected by the Area Supervisor or their designate under the regular Road Patrol activity.

3. Ditches shall be cleaned of debris and vegetation as required to ensure free flow of water.

4. Vegetation growing in the ditch line constituting an obstruction to the free flow of water shall be cut or removed as necessary.

The following maintenance items will be done on a Work Order basis upon approval of the Contract Administrator, shall include the cleaning or improving of cut slopes using boom- type equipment such as a Gradall or backhoe and shall include removal and disposal of sediment and debris.

5. Ditch grade lines shall have a uniform fall to prevent localized ponding.

6. Side slopes shall be as uniform as possible and corrected where necessary.

7. Eroded slopes shall be corrected and the cause of erosion shall be eliminated wherever possible.

8. Ditches shall be filled where effective drainage has been accomplished by other means.

146 A-3-6 CULVERTS

Note: All work included in this activity shall be included as part of the lump sum payment unless otherwise stated

Activity Description:

Storm Sewer Maintenance shall include the inspection, cleaning and minor repair of storm sewers including the removal and disposal of sediment and debris from roadway culverts and appurtenances, minor culvert installation and/or extensions.

Storm Sewer Construction (which shall be completed on a Work Order basis after consultation with the Contract Administrator) shall include the supply and installation of new culvert and ditch inlets and reinstatement of the work area.

Objectives

The major objectives for CULVERT MAINTENANCE are:

 To keep culverts clean – free from debris – and functioning properly.  To ensure the flow of surface water running in natural streams, collected on the high side of the right-of-way, or running down the ditch line, under roads, streets or driveway entrances.

Summary

The level-of-service for CULVERT MAINTENANCE shall be in accordance with the following and be included within the parameters of the Maintenance Agreement:

1. Obstructions restricting the flow of water through culverts shall be removed.

2. Culverts shall be regularly inspected, through the regular Road Patrol activity, and cleaned of debris if constricting flow.

3. Culverts shall, in addition, be inspected after heavy storms or periods of high run off, and corrective measures taken if necessary.

4. During storms and floods, critical areas shall be patrolled and culvert inlets kept clear.

5. Supervisory personnel performing regular patrols shall notify the proper authorities if they observe unauthorized culvert installation on municipal property.

The following maintenance items will be done on a Work Order basis upon approval of the Contract Administrator:

6. Badly worn, broken or damaged culverts shall be repaired or replaced as soon as possible.

7. Culvert aprons and head walls which are broken shall be repaired.

8. Damaged embankments at culvert inlets or outlets shall be repaired.

9. Culverts that are not required because proper drainage has been achieved by other means shall be removed or buried at the discretion of the Region.

147 A-3-7 ACCESS CHAMBER /STORM SEWERS - CLEANING / REPAIR

Note: Work included in this activity shall be completed through the following procedures: a. All works from the top of the precast down into the storm system shall be completed through the Work Order process after consultation with the Contract Administrator b. Routine cleaning of the storm system will be arranged by Region staff on a program basis. However, Municipalities may be requested to complete cleaning in particular situations such as emergencies which will be paid through the Work Order process c. All new construction shall be completed through the Work Order process after consultation with the Contract Administrator d. All works from the roadway surface to the top of the precast section shall be paid as part of the lump sum payment unless otherwise stated

Activity Description

Storm Sewer Maintenance: shall include the inspection, resetting or replacement of manhole and/or catch basin frames and covers due to breakage or settlement and where the underlying precast sections (moduloc) have and need to be replaced/re-set, including reinstatement of asphalt surface and concrete curb and gutter sections as part of the repair. Also includes removal of sediment and debris from ditches and roadway culverts and appurtenances, and repairs to sewer inlets (ditch inlets). Also includes the inspection, cleaning and repair of culverts, including extensions, repairs to sewer inlets (ditch inlets), outfalls and headwalls, and disposal of waste and excavated material from these activities

Objective

The major objectives for the CLEANING AND REPAIR OF STORM SEWER MAINS are:

 To prevent public health hazards and inconvenience through interruptions in the service for which the sewer system is provided.  To protect the public investment in the sewer system by maintaining maximum capacities and by extending the useful life of the system.  To prevent unnecessary damage to public and private property and pollution of the environment.  To provide safe, convenient access to the sewer systems to facilitate servicing, cleaning, measuring flows and testing effluents.  To maintain the access chambers in a structurally sound condition to permit safe passage of traffic with a minimum of interference.

Summary

The level-of-service for the ACCESS CHAMBER / STORM SEWER CLEANING AND REPAIR shall be in accordance with the following and be completed as per the Activity Description above:

Cleaning

Note: Routine cleaning of the storm system will be arranged by Region staff on a program basis. However, Municipalities may be requested to complete cleaning in particular situations such as emergencies which will be paid through the Work Order process.

1. Excessive accumulations of silt in storm sewers shall be removed.

2. Sewers shall be cleaned on an as required basis, based on local conditions and inspection findings.

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3. Sewers shall be regularly inspected for needed repairs or cleaning on an annual program basis. The extent of the maintenance program in any one year will depend on programmed construction activities and budgetary considerations.

4. Non-programmed cleaning shall be undertaken using an appropriate method, as required, to alleviate local problem conditions.

5. Storm sewer outfalls shall be inspected and cleaned each spring and fall.

Repair

Note: All works from the roadway surface to the top of the precast section shall be paid as part of the lump sum payment unless otherwise stated.

1. All storm sewer access chambers shall be inspected by road patrol and where defects are observed from surface, further inspection will take place as required.

2. Castings protruding 5 cm or more above the traveled portion of the road shall be corrected.

3. Castings depressed to a depth that may constitute a hazard to vehicular traffic shall be repaired.

4. Loose and/or noisy lids shall be corrected.

All repairs required from the top of the precast down into the access chamber shall be done on a work order basis after consultation with the Contract Administrator. The following maintenance items will be done on a Work Order basis upon approval of the Contract Administrator:

5. Maintenance of steps, benching channels, and flow

6. Access chamber steps that are broken, deteriorated or otherwise in an unsafe condition shall be replaced.

7. Access chamber walls, lids, castings, etc. shall be maintained in a structurally sound condition.

8. Excessive infiltration or exfiltration in access chambers shall be corrected as quickly as possible.

9. Benching and channels shall be smooth throughout the access chamber.

10. Pipes severely cracked or collapsed shall be replaced.

11. Pipes cracked to an extent permitting excessive infiltration or exfiltration which may cause voids around the pipe shall be replaced or repaired.

12. Pipes having step joints of more than 25mm shall be assessed to their need for immediate replacement or scheduled for replacement in conjunction with road reconstruction.

149 13. Connections protruding into the sewer main which restrict the capacity of the pipe or prevent effective inspection shall be corrected to form a smooth uninterrupted surface within the main sewer pipe.

All repairs or alterations shall be in accordance with the Road Construction Standards set out in the Manual entitled Regional Municipality of Waterloo’s Supplementary General Conditions, Standard Specifications and Standard Drawings.

Manual will be supplied as updated by the Region of Waterloo Design & Construction group.

150 A-3-8 CATCHBASIN / CATCHBASIN LEAD - CLEANING AND REPAIR

Note: Work included in this activity shall be completed through the following procedures: a. All works from the top of the precast down into the storm system shall be completed through the Work Order process after consultation with the Contract Administrator b. Routine cleaning of the catch basins will be arranged by Region staff on a program basis. However, Municipalities may be requested to complete cleaning in particular situations such as emergencies which will be paid through the Work Order process c. All new construction and full catch basin replacement shall be completed through the Work Order process after consultation with the Contract Administrator d. All works from the roadway surface to the top of the precast section shall be paid as part of the lump sum payment unless otherwise stated e. General debris removal, etc from the catch basin frame and covers to ensure proper drainage shall be completed as part of the lump sum payment.

Activity Description

Storm Sewer Maintenance: shall include the inspection, resetting or replacement of manhole and/or catch basin frames and covers due to breakage or settlement and where the underlying precast sections (moduloc) have and need to be replaced/re-set, including reinstatement of asphalt surface and concrete curb and gutter sections as part of the repair. Also includes removal of sediment and debris from ditches and roadway culverts and appurtenances, and repairs to sewer inlets (ditch inlets). Also includes the inspection, (excluding CCTV), cleaning and repair of storm sewers and manholes, roadway culverts, including extensions, repairs to sewer inlets (ditch inlets), outfalls and headwalls, and disposal of waste and excavated material from these activities

Objective

The major objectives for the maintenance of CATCHBASINS / CATCHBASIN LEADS are:

 To clean out basins before their sump capacity has been exceeded thereby allowing dirt and debris to collect in the storm sewer mains.  To periodically clean catchbasins and inlets so that gratings, openings, traps and outlets are kept free from obstructions which might interfere with the free flow of runoff.  To repair basins as required and adjust basins which are causing problems on the road surface.

Summary

The level-of-service for CATCHBASIN / CATCHBASIN LEAD CLEANING AND REPAIRS shall be in accordance with the following:

Cleaning

1. All catchbasins shall be inspected every two years and cleaned where inspection indicates a need or as required on an ongoing basis.

2. It may be necessary in local areas to clean catchbasins and inlets more often due to:

a. Restricted sump capacities. b. Amount of dirt and debris reaching the road surface. c. Planned frequency of road cleaning.

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3. During or after a heavy rainfall, problem basins shall be checked.

4. Repairs to basins (from top of precast) shall be carried out when necessary as part of the Maintenance Agreement. Any repairs below the precast will be carried out on a Work Order basis with prices to be negotiated beforehand.

5. Catchbasins which have deteriorated to the extent that they restrict the free flow of water and endanger the safe flow of traffic shall be rebuilt to current standards. Repairs below precast will be done on a Work Order basis with prices to be negotiated beforehand.

6. Catchbasins shall be checked before the winter season for interference with snow plowing operations.

7. Catchbasins shall be repaired whenever there are loose bricks, shifted frames or wherever significant structural failure has occurred.

8. Castings that are cracked or broken shall be repaired or replaced.

9. Where a catchbasin is located within a curb and gutter section, the curb and gutter shall be deemed part of the basin repair and shall be included in the cost of completing the entire repair.

A-3-9 CURBS AND GUTTERS

Note: All repairs shall be the responsibility of the Region through their yearly program. Cities will identify locations to the Region for repair. In cases where there are basin/manhole repairs to be made, cost of any curb replacement and asphalt repairs shall be included in the cost of the basin/manhole repair and included in the lump sum contract cost.

Activity Description

Concrete Curb and Gutter Maintenance shall include the repair and maintenance of short sections of curbs and gutters, including the removal and replacement of deteriorated concrete and reinstatement of the surrounding asphalt surface.

Concrete Curb and Gutter Sections shall include the removal and re-pouring of concrete curb and gutter sections including disposal of broken concrete, replacement of control joints, re-setting of catchbasins and reinstatement of the asphalt surround or grassed area.

Objectives

The major objectives for CURB AND GUTTER MAINTENANCE are:

 To facilitate the removal of surface water from the wearing surface.  To prevent water from spilling over and eroding side slopes.

152 Summary

The level-of-service for CURB AND GUTTER shall be in accordance with the following:

General

1. A curb and gutter repair program shall be maintained annually to fix spalled areas and broken heaved or depressed sections which may interfere with drainage, and preserve the investment in the road. Sections less than 1 metre are considered part of the Agreement. Sections longer than 1 metre will be handled on a work order basis.

Concrete Curb and Gutter

1. Shall be maintained in a condition such that it continues to serve its intended purpose.

2. Shall be inspected by windshield inspection yearly. Sections warranting repair will be considered for inclusion in annual maintenance/repair program.

3. Long sections of damaged or deteriorated curb and gutter shall be scheduled for replacement in conjunction with the road reconstruction program.

Asphalt Curb and Gutter

1. Shall not be installed on Regional Roads, except for temporary repairs.

2. All broken or loose sections shall be replaced with new asphalt. Deteriorated or damaged sections that prevent the curb and gutter from serving its intended purpose shall be replaced.

153 A-3-10 STREET CLEANING

Note: All work included in this activity shall be included as part of the lump sum payment unless otherwise stated

Activity Description

Street Sanitation shall include routine mechanical and manual sweeping of roadways including bike lanes, concrete islands and boulevards, spills cleanup (glass, oil, diesel fuel, etc.), litter pickup and disposal of debris and sweepings.

Objective

The major objectives for STREET CLEANING are:

 To prevent annoyance to general public arising from road dirt and dust.  To prevent injuries to pedestrians and damage to property and vehicles caused by loose objects being thrown up by traffic.  To promote safety by removing debris which could cause a hazard for cyclists or vehicular traffic.  To prevent clogging of storm sewers.  To reduce health hazards caused by pollutants and chemical wastes in road dirt.  To enhance the appearance of the community.

Summary

The level-of-service for STREET CLEANING shall be in accordance with the following:

1. During the period of April 1st through October 31st, sweeping will be completed once (1) every three (3) weeks. Outside this time period sweeping will be completed as required. There will be no extra payment for sweeping bike lanes.

2. All leaf pickup as required shall be included in the lump sum amount and shall be the full responsibility of the Cities.

3. Bike Lanes – sweep as required to maintain safe riding surface for cyclists.

Designated Cycling Routes

Sweep all designated routes once in Spring to remove winter sand and debris and sweep as required throughout the remainder of the year to eliminate loose material or debris which could create a potential hazard for cyclists. Frequency to be determined through regular road inspections.

Special Events

As required for special functions, i.e., parades, community festivals, etc.

154 A-3-11 DEBRIS PICKUP

Note: All work included in this activity shall be included as part of the lump sum payment unless otherwise stated and shall include the annual spring litter pickup along with the routine debris pickup as required

Activity Description

Debris Pickup shall include the manual removal of trash and debris from the traveled portion of the road or boulevard other than by mechanical street sweeping and shall include disposal of the debris.

Objective

The major objectives for DEBRIS PICKUP are:

 To keep the roadside and traveled surface in a clean and safe condition by removing unsightly and hazardous objects.  To allow for maximum productivity in grass mowing.  To help ensure proper operation of drainage courses.

Summary

The level-of-service for DEBRIS PICKUP shall be in accordance with the following:

1. Hazardous debris such as vehicle related debris, cans, bottles, paper, animal carcasses, branches and other trash on the roadside or within the median shall be removed as required.

If there is debris on a roadway, the minimum standard is to deploy resources, as soon as practicable after becoming aware of the fact, to remove the debris. “Debris” means any material or object on a roadway that; “is not an integral part of the roadway or has not been intentionally placed on the roadway by a municipality” or “is reasonably likely to cause damage to a motor vehicle or to injure a person in a motor vehicle”.

2. Large stones or boulders in the ditch or on the shoulder shall be removed.

3. Debris shall not be allowed to disrupt mowing operations or obstruct drainage ways.

4. Debris shall not be allowed to accumulate on any road in order to discourage dumping

5. All roadsides shall have hazardous debris picked up at least once each year in the Spring before mowing operations begin.

155 A-3-16 WINTER OPERATIONS

Note: All work included in this activity shall be included as part of the lump sum payment unless otherwise stated and as outlined in Section #5 of this agreement.

Objective

The major objectives for WINTER OPERATIONS are:

 To reduce the hazards of icy/snow covered road conditions to the community.  To comply with legislation applicable with winter maintenance.  To reduce economic losses to the community and industry caused delays to the community during icy/snow covered road conditions.  To facilitate the movement of emergency vehicles during the winter weather conditions.  To reduce the impacts to the environment and the drinking water supply through the proper storage, use and disposal of road salt and associated deicing/anti-icing chemicals.  To maintain safe, passable transit and school bus routes.  To maintain safe, passable routes for buggies and cyclists.  To maintain routes to Winter recreation areas.

Summary

The level-of-service for WINTER OPERATIONS shall be in accordance with the following:

Snow Accumulation

1. The minimum standard for clearing snow accumulation is;

a. While the snow continues to accumulate, to deploy resources to clear the snow as soon as practicable after becoming aware of the fact that the snow accumulation on a roadway is greater than the depth set out in the Table to this section.

b. After the snow accumulation has ended and after becoming aware that the snow accumulation is greater than the depth set out in the Table to this section, to clear the snow accumulation in accordance with subsections (2) and (3) or subsections (2) and (4), as the case may be, within the time set out in the Table.

2. The snow accumulation must be cleared to a depth less than or equal to the depth set out in the Table.

3. The snow accumulation must be cleared from the roadway to within a distance of 0.6 metres inside the outer edges of the roadway.

4. Despite subsection (3), for a Class 4 highway with two lanes or a Class 5 highway with two lanes, the snow accumulation on the roadway must be cleared to a width of at least 5 metres.

5. This section,

a. Does not apply to that portion of the roadway designated for parking; and

b. Only applies to a municipality during the season when the municipality performs winter highway maintenance.

156 6. In this section,

“Snow accumulation” means the natural accumulation of new fallen snow or wind-blown snow that covers more than half a lane width of a roadway. TABLE SNOW ACCUMULATION

Class of Depth Time Highway 1 2.5 cm 4 hours 2 5 cm 6 hours 3 8 cm 12 hours 4 8 cm 16 hours 5 10 cm 24 hours

Icy Roadways

1. The minimum standard for treating icy roadways is,

a. To deploy resources to treat an icy roadway as soon as practicable after becoming aware that the roadway is icy; and

b. To treat the icy roadway within the time set out in the Table to this section after becoming aware that the roadway is icy.

2. This section only applies to a municipality during the season when the municipality performs winter highway maintenance.

TABLE ICY ROADWAYS

Class of Time Highway 1 3 hours 2 4 hours 3 8 hours 4 12 hours 5 16 hours

General

1. A 24 hour emergency answering/dispatch service shall be maintained year round. It shall be staffed with competent personnel experienced in winter operations and able to dispatch necessary maintenance forces as required.

2. All calls shall be logged on a special form provided for this purpose. It shall indicate the time of call, who from and action taken.

3. All calls received from Regional Police shall be investigated and the appropriate action taken.

4. Plowing and sanding/salting routes shall be established and reviewed and/or revised annually to provide for the most efficient use of staff and equipment.

5. As time permits between storms, snow shall be loaded and removed;

157

a. To widen the roadway and provide for the safe movement of vehicular traffic and cyclists when the road width is constricted by snow windrows. b. To clear lanes officially designated as cycling routes throughout the urban and rural roadways. c. To minimize the hazards of high snow banks to traffic in locations such as intersections and driveways. d. To provide room for on-street parking. e. To minimize hazards to pedestrians in such locations as intersections, bus stops, and the downtown core areas. f. To facilitate drainage where snow banks are blocking catchbasins. g. To remove snow that has been plowed onto sidewalks where no boulevard area exists between the roadway and sidewalk for the storage of snow.

6. Snow fence shall be erected only at locations where a yearly snow fence survey indicates that the erection of snow fence will clearly minimize the effect of drifting snow on the roadway. This snow fence survey will consider location, accident/collision history, topography, roadside vegetation, depth of ditches, heights of platform and snow storage capabilities.

Efforts shall be made to contact property owners prior to entering private property to erect snow fence however, the Municipal Act 2001, c.25, s.60 provides that the Region may, at any reasonable time, enter upon any land within the municipality or within the adjoining municipality and lying along any highway under its jurisdiction, for the purpose of erecting and maintaining a snow fence.

Road Classification

Winter maintenance needs are dependent on several factors including traffic volumes, speed, type, winter maintenance experience and the objective for each road.

To ensure the appropriate allocation of resources to promote consistency throughout the Region, the Regional Road network has been classified into six classes based on the posted/regulated speed and the annual average daily traffic. The classifications have also taken into consideration those roads which serve as an emergency access, primary transit route and /or have been designated as a Concern Area to ensure an appropriate winter response.

158 TABLE CLASSIFICATION OF HIGHWAYS

Average Annual Posted or Statutory Speed Limit (kilometres per hour) Daily Traffic 1 8 7 6 (number of motor 0 90 0 0 0 vehicles) 0 15,000 or more 1 1 1 2 2 2 12,000 – 14,999 1 1 1 2 2 10,000 – 11,999 1 1 2 2 3 8,000 – 9,999 1 1 2 3 3 6,000 – 7,999 1 2 2 3 3 5,000 – 5,999 1 2 2 3 3 4,000 – 4,999 1 2 3 3 3 3,000 – 3,999 1 2 3 3 3 4 2,000 – 2,999 1 2 3 3 4 4 1,000 – 1,999 1 3 3 3 4 4 500 – 999 1 3 4 4 4 4 200 – 499 1 3 4 4 5 50 – 199 1 3 4 5 5 0 – 49 1 3 6 6 6

159 A-3-17 ROAD PATROL

Note: All work included in this activity shall be included as part of the lump sum payment unless otherwise stated

Activity Description

Road Patrol shall include the drive-by observation of the Regional Roadway system between sunrise and sunset, to check for hazardous conditions to ensure the roads are in safe condition.

Objective

The major objectives for ROAD PATROL are:

 To ensure that all roads are inspected on a regular basis.  To observe and record defects requiring action.  To ensure that the road is maintained in a safe condition.

Summary

The level-of-service for ROAD PATROL shall be in accordance with the following:

Routine Patrolling

1. The standard for the frequency of routine patrolling of highways is set out in the Table to this section.

2. Routine patrolling shall be carried out by driving on or by electronically monitoring the highway to check for the following conditions:

a. Snow accumulation b. Icy roadways c. Potholes on road surface and paved or unpaved shoulders d. Shoulder drop-offs e. Cracks f. Debris g. Luminaires h. Signs i. Traffic control signal systems and sub systems j. Bridge deck spalls k. Surface discontinuities on roads and bridge decks

3. Routine patrolling is not required between sunset and sunrise.

4. Documentation of the patrol shall be collected and retained either by paper copy or electronically.

TABLE ROUTINE PATROLLING FREQUENCY

Class of Patrolling Frequency Highway 1 3 times every 7 days 2 2 times every 7 days 3 Once every 7 days

160 4 Once every 14 days 5 Once every 30 days

Summer

1. All Regional roads shall be patrolled as per the above table. Patrol Supervisors or designated Patrol personnel shall visually inspect the road and roadside from the vehicle and shall note major problems and problem areas on a special form entitled

Routine Patrol Record.

2. The patroller shall arrange for the repair of noted works that present hazards to cyclists, vehicular or pedestrian traffic or to private or public property.

3. They shall carefully record all major road defects and actions taken to correct same. Special investigations carried out as a result of accident claims shall be documented on a separate report form and forwarded to the Supervisor.

4. Identified problems or concerns that are not of an immediate nature will be brought up for discussion at staff or scheduling meetings or shall be discussed with the Supervisor for advice and action to be taken.

Winter

1. In addition to the above procedures Winter Patrol staff or snow control personnel shall cover all roads in their assigned areas as per frequencies set out in the above table or more often depending on severity of winter conditions. In addition, road condition reports shall be received from winter maintenance crews during the performance of their winter control activities.

2. Winter Patrol staff shall report the Road conditions regularly to Central Dispatch and shall instruct their assigned maintenance forces as to required actions.

161

162 Item #11

To: COUNCIL

Meeting Date: 09/22/2020

Subject: 1000 Black Bridge Road Property Acquisition

Submitted By: Lisa Shields, City Solicitor

Prepared By: Paul Kan, Manager Realty Services

Report No.: 20-222 (OCM)

File No.: C1101

Recommendation(s)

THAT Council authorize the purchase of the property municipally known as 1000 Black Bridge Road and legally described as PT LT 13 CON 4 BEASLEY’S LOWER BLK TWP OF WATERLOO; PT LT 1 BEASLEY’S MIDDLE BLOCK TWP OF WATERLOO (AKA BRICKER LT) PT 1 67R2686 EXCEPT PT 1 67R3015; CAMBRIDGE (the “Property”) in accordance with the terms and conditions set out in the Agreement of Purchase and Sale (the “Agreement”) at a total cost not to exceed $2,475,000 inclusive of all applicable taxes and ancillary costs;

AND THAT the Mayor and Clerk be authorized to execute all documentation required to implement and give effect to the adopted recommendations as set out in this report, subject to the satisfaction of the City Solicitor.

Executive Summary

Purpose

The property at 1000 Black Bridge Road is required for the Black Bridge Road Project (the “Project”). An agreement of purchase and sale has been signed by the owner of the Property (the “Owner”) and is irrevocable by the Owner until October 9th, 2020. The Agreement is conditional upon Council approval, and sign back by the City within the irrevocable date.

163 Key Findings

1000 Black Bridge Road

1. 1000 Black Bridge Road is located at the northwest corner of the intersection of Black Bridge Road and Townline Road and is critical path to the successful delivery of the Project. (see Attachment “A”)

2. The property is approximately 1.64 ha (4.05 acres) and is improved with a 271.37 m2 (2,921 sf) house and an inground swimming pool.

3. The environmental assessment for the Project identifies the Property as a whole property acquisition which will allow for a shorter bridge span thus creating significant cost savings for the Project.

4. Approximately 3 acres of the Property will be used for the new Black Bridge Road alignment, water level management, and maintenance of the existing wetland area.

5. Approximately 1 acre of land plus the house is recommended to be sold at Project completion to help recover acquisition costs. At Project completion, staff will seek Council approval to dispose of the surplus lands. (see Attachment “A”)

Key Business Terms of the Agreement of Purchase and Sale

1. The Agreement is subject to the following conditions:

a. Council approval; and

b. The City being satisfied as to the Owner’s title to the Property.

2. Total compensation to the Owner is $2,312,500 consisting of market value supported by appraisals.

3. The City is responsible for all applicable taxes, legal fees, and ancillary costs estimated to be $162,500.

4. The Agreement is irrevocable by the Owner until October 9th, 2020.

5. The Closing Date is November 16, 2020.

6. The Owner shall have the right to occupy the house until June 30, 2021 under a License Agreement. The License Agreement is an appendix to and forms part of the Agreement. This is necessary to allow the Owner time to find a new home. During the occupancy period, the Owner shall be responsible for utilities, taxes, and security of the house.

164 Financial Implications

Total cost to acquire the Property is within the budget of and will be funded from Project A0666-10.

In August 2020, Council approved funding required to complete property acquisitions for the Black Bridge Road and Townline Road Projects including 1000 Black Bridge Road.

As advised in the report to Council in August 2020, at Project completion, surplus lands including the house will be recommended to be sold to recover approximately $1,550,000 of the acquisition costs.

Background

The City completed the Class Environmental Assessment (the “EA”) study in June 2016 that determined a preferred infrastructure management plan for Black Bridge Road and Townline Road. In the EA study, the property municipally known as 1000 Black Bridge Road was identified as a full property acquisition. The Property is a critical path to the successful delivery of the Project, and is necessary for the new road and bridge alignment. It will allow for a shorter bridge span resulting in significant cost savings for the Project. Preliminary design was completed in 2019 which enabled staff to move forward with securing property requirements for the Project. In August 2020, Council approved the budget and funds necessary to purchase property requirements for the Project including 1000 Black Bridge Road.

Analysis

Strategic Alignment

PROSPERITY: To support and encourage the growth of a highly competitive local economy where there is opportunity for everyone to contribute and succeed.

Goal #7 - Transportation and Infrastructure

Objective 7.3 Provide innovative leadership in the management of city assets to help plan, fund and maintain city assets in a sustainable way.

Proceeding with this acquisition will allow for the improvement of travel corridors within the city thereby contributing to the City’s strategic goal and objectives.

Comments

n/a

165 Existing Policy/By-Law

By-law 74-95 sets out provisions, procedures, and guidelines with respect to authority and due diligence for property acquisitions.

Financial Impact

The total cost to acquire the Property is within the budget of Project A0666-10. The acquisition of the Property will allow for the construction of a shorter bridge span resulting in significant cost savings for the Project.

Public Input

There was no public input received.

Internal/External Consultation

The following internal stakeholders were consulted:

• Engineering and Transportation Services in regards to identification and justification of property interests required.

• Finance in regards to budget increase and funding.

The following external stakeholders were consulted:

• Antec Appraisal Group, Veracity Real Estate Solutions, and Campbell & Company Appraisals Inc. in regards to property valuations.

• BT Engineering in regards to identification and justification of property interests required.

Conclusion

Acquisition of 1000 Black Bridge Road is a critical path to the successful completion of the the Black Bridge Road Project. Negotiations with the Owner have been ongoing and have now resulted in a settlement agreement that is fair and reasonable, and in accordance with the Expropriation Act.

166 Signature

Division Approval

Name: Lisa Shields Title: City Solicitor

Departmental Approval

Name: David Calder Title: City Manager

City Manager Approval

Name: David Calder Title: City Manager

Attachments

• Attachment “A” – 1000 Black Bridge Road

167 Attachment “A”

1000 Black Bridge Road

Area outlined in blue and hatched = 1000 Black Bridge Road Area outlined in yellow and hatched = surplus lands proposed to be sold at Project completion.

168