Council Meeting Agenda Joint Township Council Meeting October 22, 2020 6:00 P.M

Council Meeting Agenda Joint Township Council Meeting October 22, 2020 6:00 P.M. Electronic Participation

This meeting is open to public viewing and is available through an online platform. Please subscribe to the Township of Wilmot You Tube Channel to watch the live stream or view after the meeting.

1. WELCOME (Mayor Les Armstrong)

2. MOMENT OF SILENCE

3. LAND ACKNOWLEDGEMENT (Councillor B. Fisher)

4. ROLL CALL

5. DISCLOSURE OF PECUNIARY INTEREST UNDER THE MUNICIPAL CONFLICT OF INTEREST ACT

6. PRESENTATIONS 6.1 Regional Library Services Review – Project Progress Update Bruce Peevers, KPMG 6.2 Township Services Review – Project Progress Update Bruce Peevers, KPMG Fire Services Emergency Management Corporate Communications Information Technology 7. ADJOURNMENT The Townships of Waterloo Region Joint Service Review Interim Report – Executive Summary of Library Services

October 22, 2020 For Discussion Purposes Only Waterloo Townships Service Delivery Review Disclaimer

This report is subject to the terms and conditions in our engagement letter November 4th, 2019. This report is intended solely to assist North Dumfries, Wellesley, Wilmot, and Woolwich Townships (“the Townships of Waterloo Region” or “the Townships”) with a joint service review. The comments and observations in our report are not intended, nor should they be interpreted, to be legal advice or legal opinion. This report is based on information and documentation that was made available to KPMG at the date of this report. KPMG has not audited nor otherwise attempted to independently verify the information provided unless otherwise indicated. We had access to information up to October 9, 2020 in order to arrive at our observations but, should additional documentation or other information become available which impacts upon the observations reached in our report, we will reserve the right, if we consider it necessary, to amend our report accordingly. This report and the observations expressed herein are valid only in the context of the whole report. Selected observations should not be examined outside of the context of the report in its entirety. Our observations and full report are confidential and are intended for the use of the Townships of Waterloo Region. Our review was limited to the procedures conducted. The scope of our engagement was, by design, limited and therefore the observations should be considered in the context of the procedures performed. In this capacity, we are not acting as external auditors nor value for money auditors and, accordingly, our work does not constitute an audit, examination, value for money, attestation, or specified procedures engagement in the nature of that conducted by external auditors on financial statements or other information and does not result in the expression of an opinion. Pursuant to the terms of our engagement, it is understood and agreed that all decisions in connection with the implementation of advice and recommendations as provided by KPMG during the course of this engagement shall be the responsibility of, and made by, the Townships of Waterloo Region. KPMG has not and will not perform management functions or make management decisions for the Townships of Waterloo Region. KPMG has no present or contemplated interest in the Townships of Waterloo Region, nor are we an insider or associate of the Townships of Waterloo Region. Accordingly, we believe we are independent of the Townships of Waterloo Region and are acting objectively. This report is not intended for general use, circulation or publication and any use of KPMG's report for any purpose other than circulation within the Townships of Waterloo Region without KPMG's prior written permission in each specific instance is prohibited. KPMG assumes no responsibility or liability for any costs, damages, losses, liability or expenses incurred by anyone as a result of the circulation, reproduction or use of or reliance upon KPMG's reports, contrary to this paragraph.

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 2 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Project Overview

The Townships of Waterloo Region Joint Service Review Interim Report – Executive Summary of Library Services

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 3 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Project Overview Introduction and Objectives

Project Objectives

KPMG has been engaged by the Townships of Waterloo Region (North Dumfries, Wellesley, Wilmot and Woolwich) to undertake a joint service delivery review (the “Project” or “Service Review”) in a phased approach. For Phase 1 of the Service Review, the Townships are focusing on five service areas – Fire, Emergency Management, Corporate Communications, Information Technology, and Library. For Library services, the Townships are responsible for providing the facilities in which the services are delivered; and the Region of Waterloo is responsible for delivery of library services and programs.

Specific project objectives include the following: • Facilitate Review – Conduct a comprehensive review to understand the current service delivery models through documentation review and stakeholder consultation. As part of this, consider the current service delivery approaches, cost and impact the services have on the Townships, including high level benchmarking with comparator municipalities. • Identify Opportunities – Identify and explore opportunities for sustainable approaches to service delivery and establishing and/or amending service levels. • Recommendations – Evaluate and categorize opportunities to develop recommendations for Phase 2 priorities. Provide strategic guidance to leadership on implementation and prioritization of new, innovative and/or leading service delivery models that improve upon organizational efficiency while balancing stakeholder expectations. In addition, advise on the risks associated with each proposed change/option to inform management of the key factors and risks which should be considered during the decision making process.

This interim report will provide the foundation for possible opportunities to improve the overall effectiveness and efficiency of the Townships’ current service delivery model.

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 4 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Project Overview Scope of Work Work Plan and Progress Report

The interim report constitutes completion of Phase 3 of our work plan. This interim report provides a current state analysis of the data and information collected from the Region of Waterloo Library, Waterloo Townships and comparator municipalities. This analysis will service as a foundation for developing recommendations to be included in the final report for consideration by leadership.

3. Current Service 2. Environmental 4. Opportunity 5. Final Report & 1. Project Initiation Delivery Model Scan Identification Presentation Review

 Align on project  Collect relevant  Assess current • Identify potential • Prepare Final Report objectives and work information on current service delivery opportunities for and presentation to plan methods of service model of the five innovative service Steering Committee delivery service areas delivery and Council Objectives

 Kickoff meeting  Data and document  Complete service • Identify opportunities • Draft and revise Final review profiles for all in- Report and  Develop project for improved service scope areas. presentation charter  Stakeholder delivery consultations  Develop and validate

Activities • Prepare draft common  Comparator analysis recommendations and understanding of the of municipalities presentation to current state. Steering Committee.  Prepare Interim Report

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 5 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Summary of Findings from Consultations

The Townships of Waterloo Region Joint Service Review Interim Report – Executive Summary of Library Services

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 6 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Summary of Findings from Consultations The Engagement Process

As part of the Waterloo Townships service delivery review, a group interview with the Mayors was conducted in December 2019. The Library Steering Committee consists of the four Township CAOs and the Commissioner of Planning, Development and Legislative Services, Region of Waterloo. For the Library, a focus group was also conducted at the Township level, where front-line staff involved in library facility maintenance were invited to participate. Interviews with Library leadership were held at the Region to gain an understanding of the delivery model for library programs and services.

Interviews Mayors

Library Steering Committee

Region North Dumfries Wellesley Wilmot Woolwich

• Region Cultural • N/A – no services • Facilities representatives • Facilities representatives • Recreation and Services and Library related to library building Community Services Services representatives maintenance representatives

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 7 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Summary of Findings from Consultations Emerging Themes

Findings from the engagement process and document review are organized based on the following domains:

Domains / Design Layers Description of what it means

The manner in which strategic direction is provided to the five in scope service areas and how partnerships between the Waterloo Townships, Council, and key external stakeholders are established and maintained. Strategy

The service standards which dictate how services are delivered by the five services areas; this includes regulatory requirements, Council or management direction and industry best practices. Service Standard

The core operations and supporting service processes for Waterloo Townships including delivery model decisions (e.g. in-house versus outsourced services) Processes & Delivery Model

The information technology required to manage information / data and support delivery. The equipment and infrastructure that enable operations and processes. Data, Technology & Infrastructure The structure, reporting and accountability hierarchy, composition, capabilities, and skills of municipal employees and contractors to meet service standards. People

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 8 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Summary of Findings from Consultations General Themes

Both the Townships and the Region recognize the importance of library services and noted that increased collaboration and fluid communication is required between the two levels of municipal government. — Strategy: Per the Municipal Act, Region Council is deemed the library board, not the Library Committee. This governance structure creates confusion of oversight authority, and there is interest in establishing a Township library board. — Service Standards: Branch operations and service standards are customized based on community needs and expectations. Both the Region and Townships agree that the Facility Maintenance Service Level Agreements (SLAs) should be updated and agreed upon. Library — Process & Delivery Model: Branches rely on Township collaboration to maximize efficiency and effectiveness of services. Respondents noted the need to breakdown silos where Library services may overlap with Township services, i.e. recreation services, and build a coherent approach to service delivery while recognizing unique community needs. — Data, Technology & Infrastructure: Several Branch facilities are aging, small and no longer meet community needs. Technological advances may reduce facility space requirements. A joint assessment process is needed to plan and re-examine Library facility needs. In addition, RWL is utilizing patron data to improve service delivery. — People: Both Region and Township staff agree the need for increase collaboration to better serve community needs and expectations.

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 9 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Benchmarking & Performance Perspectives

The Townships of Waterloo Region Joint Service Review Interim Report – Executive Summary of Library Services

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 10 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Benchmarking & Performance Perspectives Comparative Analysis – Why Compare to Other Communities

The following comparator groups was used for library services analysis. The group represents a snap shot of local and upper tier library services for rural communities with small urban centres.

Resident Population Municipality Upper Tier Library 1 Served 5 4 1. Waterloo Townships Region of Waterloo Region of Waterloo Library 67,572

1 2. Strathroy-Caradoc Middlesex County2 Middlesex County Library 74,579 3 6 2 3. N/A Oxford County Oxford County Library 67,124

4. Centre Wellington Wellington County Wellington County Library 97,610

5. Uxbridge Region of Durham Uxbridge Public Library 21,176

6. Grimsby Region of Niagara Grimsby Public Library 27,314

1 2018 Public Library Statistics, Ministry of Heritage, Sport, Tourism and Culture Industries 2 Middlesex did not respond to comparator interview questions as of the date of the Interim Report.

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 11 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Benchmarking & Performance Perspectives Percentage of Active Cardholders (2018)

Uxbridge Public Library has the highest percentage of active cardholders within its community. The Region of Waterloo Library has the lowest participation of its residents among the comparator group.

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 12 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Benchmarking & Performance Perspectives Library Operating Expense (2018)

The Region of Waterloo Library (RWL) has the highest percentage of staffing expenditures of the comparator group at 72.5%, and the lowest percentage of facilities/ utilities expenditures at 6.9%. Township facility expenses are not included in RWL reported figures. Reported staffing costs do not include Region allocation of overhead staff (i.e. cost associated with HR, IT, Finance or the Commissioner office ).

Total Staff per Paid Branch Staff

RWL 43 4

Middlesex 35 2

Oxford 33 2 Note: Wellington 59 4 1. Region of Waterloo Library reported figures do not include Township facility operating expenses. Additional data will be presented in the final report once Township facility operating expenses are collected. Uxbridge 13 7

Grimsby 11 11 2. Other Expenses include computer & equipment, contract payments, debt charges & transfers, and other miscellaneous expense categories.

3. Wellington County Library owns majority of the library buildings; hence, facility operating expenses are included in Wellington’s reported figures. A significant portion of Oxford’s Other Expenses is debt charges.

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 13 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Benchmarking & Performance Perspectives Library Operating Revenue and Funding (2018)

Local funding represents the highest funding source for all libraries. The Region of Waterloo Library has the lowest percentage of self generated revenue among the comparator group at 0.7% of total revenue and funding. A significant portion of the Region of Waterloo Library’s funding is from debt services and reserve funds (approximately $585K in 2018).

Note: 1. Self generated revenue mostly comes from sponsorships.

2. Other Revenue includes donations, contract revenue, project grant, debt services & reserve fund revenues, transfers, and other miscellaneous operating revenue categories.

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 14 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Benchmarking & Performance Perspectives Operating Expense per Capita (2018)

The Region of Waterloo Library has the lowest operating expense per capita as an upper tier service delivery model. [Note: Region of Waterloo Library reported figures do not include Township facility expenses; hence, not reflected in the operating expense per capita calculation. Operating expense per capita calculation used total resident population served. For RWL, this represents 67,572; an aggregate of the four Townships’ population.]

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 15 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Benchmarking & Performance Perspectives Operating Expense per Branch (2018)

The Region of Waterloo Library has the second lowest operating expense per branch amongst the comparator group. The Region of Waterloo Library has 10 branches. Grimsby has only one branch, which contributes to a significantly higher operating expense per branch amount.

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 16 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Benchmarking & Performance Perspectives Library Activities (2018)

Circulation per capita for the Region of Waterloo Library is lower than the average of 7.6 per capita. The Region of Waterloo Library also has the lowest library visits per capita amongst the comparator group.

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 17 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Next Steps

The Townships of Waterloo Region Joint Service Review Interim Report – Executive Summary of Library Services

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 18 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Waterloo Townships Service Delivery Review Next Steps

The fourth stage of our work plan involves the identification and evaluation of potential service delivery models to achieve more effective, efficient and innovative service delivery model through changes to services, resources, and responsibilities. This analysis includes whether specific services should be expanded, reduced, or delivered in an alternative manner and the financial implications of the identified opportunities. Once these opportunities are identified, KPMG will prepare a final report consolidating all the work of the previous phases for presentation to the Steering Committee and then Township Councils if requested.

November December 2020 2020 Current Project Environmental Service Opportunity Final Report & Initiation Scan Delivery Identification Presentation Model Review

1. Meet with the Steering 2. Collect relevant 3. Develop a common 4. The identification of 5. Delivery of a high level Committee to clarify information on current understanding of the current potential opportunities for summary of prioritized expectations, refine lines of methods of service delivery state. Assist the Steering innovative service using the recommendations for inquiry, and develop a and conduct stakeholder Committee with the KPMG’s Service discussion with the Steering subsequent work program consultations and survey 5 identification and mapping of Assessment Filter to identify Committee. for the engagement. comparator municipalities to the current service delivery options for change. Once validated, KPMG will benchmark in-scope model. Begin to identify present the findings to the services. opportunities for improved Townships’ Councils service delivery. individually.

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 19 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. kpmg.ca

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The Townships of Waterloo Region Joint Service Review Interim Report – Executive Summary

October 22, 2020 For Discussion Purposes Only Waterloo Townships Service Delivery Review Disclaimer

The Townships of Waterloo Region Joint Service Review Interim Report Project Overview Introduction and Objectives

Project Objectives

This interim report will provide the foundation for possible opportunities to improve the overall effectiveness and efficiency of the Townships’ current service delivery model.

The interim report constitutes completion of Phase 3 of our work plan. This interim report provides a current state analysis of the data and information collected from the Waterloo Townships and comparator municipalities. This analysis will service as a foundation for developing recommendations to be included in the final report for consideration by leadership.

3. Current Service 2. Environmental 4. Opportunity 5. Final Report & 1. Project Initiation Delivery Model Scan Identification Presentation Review

Activities • Prepare draft common  Comparator analysis recommendations and understanding of the of municipalities presentation to current state. Steering Committee.  Prepare Interim Report

The Townships of Waterloo Region Joint Service Review Interim Report Summary of Findings from Consultations The Engagement Process

As part of the Waterloo Townships service delivery review, senior leadership of the Townships were interviewed to obtain an understanding of the services provided by the Township, to identify challenges, to identify opportunities for financial and operational efficiencies, as well as sharing of services, without compromising the citizen’s service experience. A group interview with the Mayors was conducted in December 2019. For each Township, interviews were conducted with Department Heads for each of the following four areas: Fire Services, Emergency Management, Corporate Communication and Information Technology. Additionally, one focus group was conducted for the fire services of each Township where front-line volunteers were invited to participate.

Interviews Mayors

North Dumfries Wellesley Wilmot Woolwich

• Fire Services (includes • Fire Services (includes • Fire Services (includes • Fire Services (includes Emergency Emergency Management) Emergency Management) Emergency Management) Management)  Fire  Fire  Fire  Fire • Corporate Communications • Corporate Communications • Corporate Communications • Corporate Communications  Office of the CAO  Clerks  Information and Legislative  Corporate Services • Information Technology • Information Technology Services • Information Technology  Corporate Services  Clerks • Information Technology  Corporate Services  Corporate Services

Findings from the engagement process and document review are organized based on the following domains:

Domains / Design Layers Description of what it means

The core operations and supporting service processes for Waterloo Townships including delivery model decisions (e.g. in-house versus outsourced services) Processes & Delivery Model

— All four Townships are facing similar challenges related to the volunteer / part-time firefighter staffing model, including recruitment and retention; sufficient headcount for response, and meeting training standards. Most Fire Service Townships agree it is beneficial to explore shared efforts in procurement and training given that mutual aid agreements exist between Townships.

— For the Townships of North Dumfries, Wellesley and Wilmot, Emergency Management responsibilities are performed by Fire Services staff in their existing roles (e.g. Fire Chief and/or Training Officer). Woolwich has a Emergency dedicated resource for emergency management. This resource also provides administration and IT support to the Management Fire Software system. Most Townships expressed interest in exploring a framework for joint emergency management practices.

— For the Townships of North Dumfries, Wellesley and Woolwich, communication responsibilities are shared between staff in their existing roles, which limits proactive engagement with the community. In contrast, the Corporate dedicated Communications Specialist at Wilmot has enabled the Township to expand their communications Communications portfolio and increase their service level. Respondents noted it may be beneficial to share best practices and explore opportunities for joint communications initiatives.

— IT services are minimally staffed across the Townships with North Dumfries outsourcing IT to a third-party. It was Information commonly noted that more focus is needed on IT project management, cybersecurity, and timely hardware and Technology software upgrades.

The Townships of Waterloo Region Joint Service Review Interim Report Benchmarking & Performance Perspectives Comparative Analysis – Why Compare to Other Communities

For the purposes of the project, five comparator communities were selected as municipal comparators based on population growth, urban/ rural characteristics and geography:

Area Municipality Upper Tier Population1 Household1 Square Fire Hall Locations 2 9 KM 5 1 1. North Dumfries Waterloo Region 10,215 3,530 187 Ayr to 4 2. Wellesley Waterloo Region 11,260 3,368 278 Linwood, St. Clements, Wellesley 8 7 Baden, New Dundee, New 3. Wilmot Waterloo Region 17,516 7,848 264 Hamburg Breslau, Conestogo, Elmira, 4. Woolwich Waterloo Region 25,006 9,076 326 6 Floradale, Maryhill, St. Jacobs 5. Centre Wellington Wellington County 28,191 12,918 408 Elora, Fergus Belle River, Comber, Emeryville, 6. Lakeshore Essex County 31,359 14,533 530 Maidstone, Ruscom Beamsville, Campdon, Jordan, 7. Lincoln3 Niagara Region 23,787 9,305 163 Vineland Strathroy, Mount Brydges, 8. Strathroy-Caradoc Middlesex County 17,761 9,031 271 Melbourne 9. Uxbridge Durham Region 21,176 8,068 421 Uxbridge

1 2018 FIR, Schedule 2 2 Statistics Canada census profile, 2016 census data 3 Lincoln did not respond to comparator interview questions as of the date of the Interim Report.

The Townships of Waterloo Region Joint Service Review Interim Report

The size of the workforce for fire services is directly related to the organizational structure and number of fire stations within each municipality. The population size and North Centre Strathroy- Wellesley Wilmot Woolwich Lakeshore Uxbridge community density impacts Dumfries Wellington Caradoc the number of fire stations needed in each Full-time municipality to meet 1 1.5 2 2 6 6 2 2 positions regulatory requirements. Part-time Woolwich has the largest 10 - 2 6 - - - 2 volunteer workforce due to positions the number of fire stations On-call 24 65 80 160 66 96 75 40 within the Township. positions Both Centre Wellington and Total Lakeshore have dedicated 35 66.5 84 168 72 102 77 44 Fire Prevention Officers; Positions hence, more full-time Number of 1 3 3 6 2 5 3 1 positions. Stations

Note: Positions for North Dumfries, Wellesley, Wilmot and Woolwich are based on our discussions from Stakeholder Consultations and review of organization charts. Positions for Centre Wellington, Lakeshore, Strathroy-Caradoc and Uxbridge are based on comparator interview responses.

The 2018 FIR fire expense per household averages $171 per household with North Dumfries at the highest of $255 and Lakeshore at the lowest $121 per household. The diagram coincides with the number of households within each municipality. Expenses are spread across a smaller number of households resulting in a higher cost per household for North Dumfries and Wellesley.

The Townships of Waterloo Region Joint Service Review Interim Report

Woolwich and Centre Wellington have CEMC positions. Woolwich’s emergency management position provides additional administration and IT support to the Fire Software system. For all the other municipalities, the CEMC responsibilities are primarily performed by the Fire Chief. An estimated 10% of the Fire Chief’s time is dedicated to CEMC activities for those municipalities where the Fire Chief acts as CEMC.

North Dumfries, Wellesley, and Wilmot emergency measures expenses are below the comparator group average of $9 per household. Woolwich is slightly above average. Lincoln has the highest emergency measures expense per household at $30 per household. [Note: Centre Wellington, Strathroy-Caradoc and Uxbridge did not report emergency measures expense in the 2018 FIR; as such, were not included in this diagram. Reporting of this expense type is subject to whether the municipality’s accounting records separately trace and record such costs, specifically administrative costs associated with emergency measures.]

The Townships of Waterloo Region Joint Service Review Interim Report

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 18 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Benchmarking & Performance Perspectives Corporate Communication Positions per Total Headcount

Traditionally, municipalities have viewed corporate communications as non- essential that could be delivered by existing functional personnel. Citizen engagement through various communication channels (other than print media) has become the new communication standard. Municipalities are increasingly identifying corporate communications as a priority for their operations. Currently, only Wilmot has a dedicated corporate communication specialist. This position was appointed a full-time position in 2020. Communication services for Wellesley and Woolwich are performed by the Clerks department; for North Dumfries communications services are performed by the Clerks (media releases, North Centre Strathroy- Wellesley Wilmot Woolwich Lakeshore Lincoln Uxbridge website, and public Dumfries Wellington Caradoc advisors) and Recreation Responsible Office of the Community Office of the (social media and e-blasts). Clerks Clerks Clerks Clerks Clerks Clerks Department CAO Development CAO There are no dedicated resources within the other Communication three Townships. positions 0 0 1 0 2 0 0 1 1

In addition to the Municipal websites, Twitter has become the leading channel to provide real- time updates of municipal news and activities, including emergency and safety messages. North Dumfries is most active in engaging the community through its municipal Twitter account. Since Twitter is a highly interactive social media channel, it requires resources (time and effort) to monitor and respond to tweets.

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 20 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Information Technology

The Townships of Waterloo Region Joint Service Review Interim Report

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 21 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Benchmarking & Performance Perspectives IT Positions per Total Headcount

Both North Dumfries and Uxbridge outsource its information technology needs to a 3rd party IT professional provider. Wellesley has a dedicated IT coordinator. Planning personnel provide support for the GIS system. The Clerk manages the IT department and covers in the IT coordinator’s absence. Wilmot is looking into adding another IT resource to deliver and meet project needs. The other municipalities within the comparator group deploy dedicated in- house resources where an IT manager leads several IT analysts in different types of disciplines (i.e. North Centre Strathroy- help desk, network & Wellesley Wilmot Woolwich Lakeshore Lincoln Uxbridge system administration, Dumfries Wellington Caradoc etc.). In-house vs. Outsource In-house In-house In-house In-house In-house In-house In-house Outsource Outsource

IT positions 0 1 2 3 4 5 4 4 0

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 22 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Benchmarking & Performance Perspectives IT Budget per Household (2020)

The average IT operating $140 budget per household is $50 per household, and the average IT capital budget per household is $22 per $120 household. For the operating budget, North Dumfries is below $100 the average at $35 per household. Wellesley and Wilmot are at par with the $80 average IT operating Average Capital: $22 budget. Woolwich is slightly above average at $56 per Capital Cost per household. $60 Household Average Operating: $50 Operating Cost Capital budgets fluctuate per Household year over year depending on the specific equipment $40 Average Capital replacement cycles, system and application Average updates, and planned IT $20 Operating projects for a given year. Wilmot has the highest capital budget per household of $60 planned $- in 2020. [Note: Average calculation excludes Lincoln.]

Source: Municipal published 2020 Budget Reports for IT operating and capital expenditures. Note: Lincoln IT operating budget not separately reported in the published budget documents; average calculation excludes Lincoln.

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 23 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Benchmarking & Performance Perspectives General Themes

— Per FIR data, North Dumfries, Wellesley and Wilmot reported lower fire expenses and revenue than comparators. Woolwich reported higher fire expenses and revenue resulting from the operation of 6 fire stations and support of Fire Service nearby municipalities under mutual aid agreements. In terms of workforce size, Woolwich has the largest amongst comparators; North Dumfries has the smallest; Wellesley and Wilmot are in mid-range.

— Majority of comparator municipalities do not have dedicated CEMC resources and emergency management Emergency responsibilities are primarily performed by the Fire Chief. Of the comparator group, Woolwich and Centre Management Wellington have CEMC positions at the municipality. Woolwich’s CEMC efforts have been focused primarily on flood management.

— Of the four Townships, only Wilmot has a dedicated corporate communication specialist. Within the comparator group, we noted a mix in terms of corporate communications staffing – some municipalities have dedicated Corporate communications staff while others do not. North Dumfries ranks one of the highest among the comparator group Communications for Facebook and Twitter citizen engagement. Wilmot and Woolwich are also above the comparator group average for Twitter followers. Wellesley has relatively less social media activity among the four Townships.

— Wellesley, Wilmot and Woolwich have low IT staffing levels. Of the comparator group, North Dumfries and Information Uxbridge utilizes an outsourcing model for IT services. Operating and capital budgets are established based on Technology each municipality’s specific IT infrastructure and service needs.

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 24 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Next Steps

The Townships of Waterloo Region Joint Service Review Interim Report Waterloo Townships Service Delivery Review Next Steps

November December 2020 2020 Current Project Environmental Service Opportunity Final Report & Initiation Scan Delivery Identification Presentation Model Review

© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 26 (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. kpmg.ca