January 13, 2020 Council Meeting Agenda Packet

THIS MEETING WILL BE WEBCAST ON THE CITY’S PUBLIC YOUTUBE SITE (CITYWATERLOO) AND MAY BE TELECAST ON PUBLIC TELEVISION

COUNCIL MEETING Monday, January 13, 2020 3:00 PM

AGENDA

Councillor Hanmer in the Chair

1. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF

2. CLOSED MEETING

Recommendation:

That Council hold a closed meeting for the purposes of considering the following subject matter:

a) a proposed or pending acquisition or disposition of land by the municipality or local board (Potential Acquisition of Lands; Potential Lease of City-Owned Lands); COUNCIL MEETING WILL RECESS AND RECONVENE AT 3:45 PM

3. TERRITORIAL ACKNOWLEDGEMENT

Council Meeting Page 1 of 120 January 13, 2020 4. MOMENT OF REFLECTION

5. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF

6. APPROVAL OF MINUTES

That the previous meeting minutes be approved.

a) December 2, 2019 – Committee of the Whole Meeting Page 12

Recommendation:

That the minutes of the Committee of the Whole meeting held on December 2, 2019 be approved as printed.

b) December 9, 2019 – Finance and Strategic Planning Page 17 Committee Meeting

Recommendation:

That the minutes of the Finance and Strategic Planning Committee meeting held on December 9, 2019 be approved as printed.

c) December 16, 2019 – Council Meeting Page 24

Recommendation:

That the minutes of the Council meeting held on December 16, 2019 be approved as printed.

d) December 19, 2019 – Special Council Meeting Page 32

Recommendation:

That the minutes of the special Council meeting held on December 19, 2019 be approved as printed.

Council Meeting Page 2 of 120 January 13, 2020 7. DELEGATIONS

Staff Presentations

a) Award of Excellence – Centre for the Advancement of Trenchless Technology Caroline Amyot, Senior Project Engineer Dan Ditaranto; Manager, Design and Construction b) Integrated Planning & Public Works Business Plans Cameron Rapp; Commissioner, Integrated Planning & Public Works Francis Reyes; Interim Director, Engineering Services Ron Ormson; Interim Director, Building Standards Joel Cotter; Director, Planning; and City Planner Christine Koehler; Director, Transportation Services Roy Garbotz; Interim Director, City Utilities

COUNCIL MEETING WILL RECESS AND RECONVENE AT 6:30 PM

8. TERRITORIAL ACKNOWLEDGEMENT

9. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF

10. CONSENT MOTION

None

11. ITEMS REMOVED FROM THE CONSENT MOTION

Council Meeting Page 3 of 120 January 13, 2020 12. STAFF REPORTS

a) Title: Grand River Accessibility Advisory Page 34 Committee Appointments (2020) Report No.: COM2020-001 Prepared By: Lolita Paroski

Recommendations:

1. That Council approve report COM2020-001.

2. That Council approve the following applicants be appointed to the Grand River Accessibility Advisory Committee for a 4- year term ending December 31, 2023, pending ratification by the partnering municipalities of the City of Kitchener, Region of Waterloo, Township of North Dumfries, Township of Wellesley, Township of Woolwich and Township of Wilmot.

Name Location New or Reappointment Bernardes Wesselink City of Kitchener New Heather Clark Harris City of Kitchener New Tamara Bell Township of Wellesley New Mamie Sealey-Baker City of Kitchener New Paula Saunders City of Kitchener New Carrie Speers City of Kitchener New

b) Title: City Utilities – 2020 Rates Page 37 Report No.: IPPW2020-001 Prepared By: Todd Chapman Michael Pugliese

Recommendations:

1. That IPPW2020-001 be approved.

2. That Council approves the 2020 water rate as $1.97/m3, comprised of the City portion of the rate at $0.8747/m3 and the Regional portion of the rate at $1.0953/m3 as set out in Table 1 of report IPPW2020-001, and that the Fees & Charges By-Law be updated to reflect the water rate effective February 1, 2020.

Council Meeting Page 4 of 120 January 13, 2020 3. That Council approves the 2020 sanitary sewer rate as $2.53/m3, comprised of the City portion of the rate at $1.2249/m3 and the Regional portion of the rate at $1.3051/m3 as set out in Table 1 of report IPPW2020-001, and that the Fees & Charges By-Law be updated to reflect the sanitary sewer rate effective February 1, 2020.

4. That Council approves the 2020 stormwater rates as outlined below and that the Fees & Charges By-Law be updated to reflect the stormwater rates effective February 1, 2020:

• Residential; small $8.50/month, medium $12.75/month, and large $18.61/month

• Multi-Residential; small $24.41/month, medium $103.29/month, and large $550.37/month

• Institutional; small $39.57/month, medium $106.93/month, and large $218.95/month • Commercial/Industrial; small $32.74/month, medium $152.89/month, large $492.69/month, and largest $1,247.95/month

5. That Council approves the 2021-2029 water, sanitary sewer, and stormwater rate forecast in principle as set out in Table 1 of report IPPW2020-001.

6. That Council approve that the Fees & Charges By-Law be updated for the rates and effective dates as shown on Appendix B of report IPPW2020-001.

7. That Council approves a citywide implementation of the Advanced Metering Infrastructure program to include all water customers, based on a four year phased in implementation plan as described in Section 9 of report IPPW2020-001.

8. That Council endorses a non-competitive procurement of Sensus (KTI Ltd) transmitters in order to utilize Waterloo North Hydro’s infrastructure and Sensus’ transmitters (Appendix C, D & E).

Council Meeting Page 5 of 120 January 13, 2020 9. That Council provides authorization to the Mayor and Clerk to enter into a formal contract with Waterloo North Hydro to utilize their AMI communication platform, should recommendation 7 be approved, subject to the approval of the City Solicitor.

c) Title: Beechwood West #1 Homes Association Page 71 Inc. Special Service/Area Levy Vote Results Report No.: CORP2020-002 Prepared By: Julie Scott

Presentation: Julie Scott, Deputy City Clerk

Delegations:

1. Heidi Johnston, Secretary of Beechwood Page 97 West 1 and Chair of Beechwood West 1 Covenant Expiry Committee

Recommendations:

3. That Council authorize the Mayor and City Clerk to sign a Licence and Operating Agreement and Lease Agreement with the Beechwood West #1 Homes Association Inc. and any other related agreements subject to the approval of the City Solicitor.

d) Title: Recommendation to amend Designation Page 100 By-law 82-62, for 25 Regina Street South (Button Factory) under the Ontario Heritage Act Report No.: IPPW2020-011 Prepared By: Fredrick VanRooyen

Recommendations:

1. That staff report IPPW2019-070 be approved.

Council Meeting Page 6 of 120 January 13, 2020 2. That Council amend designation by-law 82-62 for 25 Regina Street South (Button Factory) under Part IV, Section 29 of the Ontario Heritage Act, by expanding the list of heritage attributes as described in Appendix A to report IPPW2019- 070.

3. That Council direct the City Clerk to issue a notice of intention to amend the designation by-law 82-62 for 25 Regina Street South (Button Factory), as described in Appendix A to report IPPW2019-070 and pursuant to the requirements set out in the Ontario Heritage Act.

e) Title: Proposed Demolition of Residential Page 109 Dwellings: 28 Dorset Street and 7 Princess Street West Report No.: IPPW2020-005 Prepared By: Dominik Simpson

Recommendations:

1. That Council approve report IPPW2020-005.

2. That Council grant relief from the requirement of subsection 7.b. of the Demolition Control Area By-law to allow for the demolition of the existing dwellings at 28 Dorset Street and 7 Princess Street West prior to obtaining Site Plan Approval.

f) Title: Request to Amend Section 37 Planning Page 115 Act Agreement, 145 Columbia Street West Report No.: IPPW2020-006 Prepared By: Laura Dewar

Recommendations:

1. That Council consent to amending Section 37 Planning Act Agreement (WR1123888), between 145 Columbia (Waterloo) Corp. and the Corporation of the City of Waterloo, for the purpose of permitting 21 additional bedrooms within the proposed mixed-use development at 145 Columbia Street West;

2. That the form and content of the agreement to amend the Section 37 Planning Act Agreement (WR1123888) shall be to the satisfaction of the City’s Director of Legal Services;

Council Meeting Page 7 of 120 January 13, 2020 3. That the Mayor and Clerk be authorized to execute the amending Section 37 Planning Act Agreement (WR1123888).

13. PUBLIC MEETINGS

Informal Planning Meetings

a) Title: Zone Change Application Z-19-07 and Page 119 Official Plan Amendment No. 26, Masri O Architects, 693 Beechwood Dr. Prepared By: Laura Dewar Ward No. Ward 1 - Southwest

Presentation: Laura Dewar, Senior Development Planner

Delegations:

1. Reema Masri, Principal Architect and President, Masri O Architects Jennifer Voss, Senior Project Manager and Planning Consultant, JV Planning & Development Consulting

14. CONSIDERATION OF NOTICE OF MOTION GIVEN AT PREVIOUS MEETING

None

15. NOTICE OF MOTION

The following motions will be considered at the Council meeting on January 20th, 2020:

a) Councillor Hanmer – Review of Special Service Area Levy Policy

WHEREAS the City of Waterloo enacted the Neighbourhood/Home Association Special Service/Area Levy Implementation and Administration Policy (“Policy A-031”) July 24, 2017 thereby adopting the concept of utilizing a special service/area levy to provide a stable funding source for recreational services provided by Neighbourhood/Homes Associations in designated areas;

AND WHEREAS for the purposes of Policy A-031 Neighbourhood/Homes Associations refers to those groups that have recreational facilities and mandatory membership tied to property covenants;

Council Meeting Page 8 of 120 January 13, 2020 AND WHEREAS to date 5 Homes Associations within the City of Waterloo have applied for a Special Service/Area Levy (“SSAL”);

AND WHEREAS 3 Homes Associations currently are utilizing the SSAL;

AND WHEREAS it is anticipated that any of the Homes Associations may consider applying through Policy A-031 for a SSAL;

AND WHEREAS the City of Waterloo acknowledges the benefit the recreational facilities operated by the Homes Associations provide to the residents in the geographic area defined by the covenants and that should these facilities not exist, the City may need to start providing additional recreational programming in some form for these residents;

AND WHEREAS since Policy A-031 was approved, the City of Waterloo has introduced a Neighbourhood Strategy, which includes programs and opportunities to help city-wide neighbourhood groups;

BE IT RESOLVED THAT:

1) the Council of The Corporation of the City of Waterloo calls a temporary moratorium (12 months) on further applications through Policy A-031;

2) the Council of The Corporation of the City of Waterloo direct staff to review Policy A-031 and determine the potential impact the Neighbourhood Strategy and or other opportunities identified through the review may have on Homes Associations considering applying for a SSAL; and

3) provide recommendations to Council by 2020 calendar year end with recommendations and or modifications to Policy A- 031 that would provide further options for Neighbourhood/Homes Associations with recreational property covenants to consider as their respective covenant terms expire. Recommended options must be in alignment with Council’s Strategic Plan.

Council Meeting Page 9 of 120 January 13, 2020 b) Councillor Hanmer – Corporate Policy Manual Review

WHEREAS the Council of the Corporation of the City of Waterloo approved the 2019- 2022 Strategic Plan Moving Forward Together (the “Strategic Plan”);

AND WHEREAS the Strategic Plan focuses on 6 strategic pillars: Equity, inclusion and a sense of belonging; Sustainability and the environment; safe, sustainable transportation; healthy community and resilient neighbourhoods; infrastructure renewal; and economic growth and development;

AND WHEREAS the Strategic Plan articulates 7 principles to guide decision making to achieve the goals and objectives of the Strategic Plan: equity and inclusion; sustainability; fiscal responsibility; healthy & safe workplace; effective engagement; personal leadership; and service excellence;

AND WHEREAS the Council of the Corporation of the City of Waterloo has adopted these guiding principles as a common lens through which decisions of Council will be based;

AND WHEREAS the City of Waterloo has many corporate policies that have been enacted over the years that may or may not reflect the guiding principles nor align with the achievement of the strategic pillars;

AND WHEREAS the City of Waterloo strives to provide programs and services within departments and to the broader to community that reflect current best practices;

BE IT RESOLVED THAT:

1) the Council of The Corporation of the City of Waterloo direct staff to develop a work plan which includes the approach, timelines, resource requirements, review criteria and alignment with the Strategic Plan (strategic pillars and guiding principles) (the “Work Plan”) to review The Corporate Policy Manual (November 2011); and

2) the Work Plan be provided to Council within a six month time frame.

16. COMMUNICATIONS AND CORRESPONDENCE

None

Council Meeting Page 10 of 120 January 13, 2020 17. UNFINISHED BUSINESS

None

18. QUESTIONS

19. NEW BUSINESS

20. ENACTMENT OF BY-LAWS

Recommendation:

That the By-laws listed below be read a first, second and third time and finally passed, numbered sequentially commencing with By-law Number 2020-001 and that the Mayor and Clerk be authorized to sign them accordingly.

a) By-law for stopping up and closing part of a forced road (known as Old Albert Street), a public highway in the City of Waterloo. (IPPW2019-067, December 16, 2019)

b) By-law to confirm all actions and proceedings of Council, January 13, 2020 – Regular

21. ADJOURNMENT

Council Meeting Page 11 of 120 January 13, 2020 A meeting of the Committee of the Whole of The Corporation of the City of Waterloo was held on December 2, 2019 at 2:03 p.m. in the Council Chambers, 100 Regina Street, South, Waterloo, Ontario.

COMMITTEE OF THE WHOLE MEETING Monday, December 2, 2019

Minutes - DRAFT

PRESENT: Mayor Dave Jaworsky, Councillor Sandra Hanmer, Councillor Royce Bodaly, Councillor Angela Vieth, Councillor Diane Freeman, Councillor Jen Vasic, Councillor Jeff Henry, Councillor Tenille Bonoguore

Councillor Bonoguore in the Chair

Councillor Bonoguore opened the meeting with the following Territorial Acknowledgement:

We would like to begin by acknowledging that the land on which we gather today is the land traditionally used by the Haudenosaunee, Anishnaabe and Neutral People. We also acknowledge the enduring presence and deep traditional knowledge and philosophies of the Indigenous People with whom we share this land today.

1. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF

No disclosure of pecuniary interest was declared by any member of Council at this point in the meeting.

Council Meeting Page 12 of 120 January 13, 2020 2. APPROVAL OF MINUTES

a) November 4, 2019 – Committee of the Whole Meeting

Moved by Councillor Hanmer, seconded by Councillor Freeman:

That the minutes of the Committee of the Whole meeting held on November 4, 2019 be approved as printed.

Carried Unanimously

3. DELEGATIONS

a) 2020 Special Olympics Spring Games

Inspector Mark Crowell, Executive Officer with the Waterloo Regional Police Service, informed Council that the Region of Waterloo will be hosting the 2020 Special Olympics Spring Games. Inspector Crowell identified several facilities in Waterloo that will host sporting events, including rhythmic gymnastics, basketball, and aquatics.

Cooper Moore, an athlete with the Special Olympics, provided Council with his personal experience with his future participation in the Special Olympics. Mr. Moore thanked Council for their assistance and expressed hope that members of Council would be able to attend the 2020 Spring Games.

b) Student Housing Information

Sylvia Skoruch, a resident of Waterloo, informed Council that Waterloo is currently in a housing crisis. She advised that rental rates for housing leave some students with insufficient funds to budget for food and transportation. Ms. Skoruch also notified Council that illegal requests for damage deposits under the guise of key deposits by landlords are widespread in Waterloo and that units which are unavailable for occupancy are being advertised as rentals.

David Moscoe, a resident of Waterloo, advised Council that data regarding homelessness is not readily available for the Region of Waterloo, but data available in other municipalities suggests that this is a prominent issue in the City of Waterloo as well, given rising housing prices.

Mr. Moscoe recommended to Council that the City of Waterloo consider policies in line with practices in Finland, where homeless individuals are provided with housing and where these efforts have resulted in the near eradication of homelessness.

Council Meeting Page 13 of 120 January 13, 2020 c) Student Homelessness

Kiran Maldonado, a resident of Waterloo, shared personal experiences with Council about the hardship that students are facing due to high rental rates. Kiran Maldonado recommended the following actions for Council’s consideration:

 amend the City of Waterloo’s rental licensing by-law to require apartment buildings to secure rental licenses,

 establish pro-active enforcement of the property standards by-law,

 direct Municipal Enforcement Services to investigate the potential requirement of illegal key deposits by landlords,

 authorize the establishment of tent cities in the City of Waterloo and ensure that the residents are protected.

4. STAFF REPORTS

a) Title: Technical Amendment to the Boundary Map in the MacGregor-Albert Heritage Conservation District Plan Report No.: IPPW2019-056 Prepared By: Fredrick VanRooyen

Moved by Councillor Vasic, seconded by Councilor Henry:

1. That Staff Report IPPW2019-056 be approved.

2. That the boundary map on page 4 in the MacGregor-Albert Heritage Conservation District Plan be corrected to align with Schedule “A” in the Heritage Conservation District By-law, as outlined in Appendix C of IPPW2019-056.

Carried Unanimously

b) Title: Revised Municipal Alcohol Policy 2019 Report No.: COM2019-038 Prepared By: Nadia Nassar

Moved by Mayor Jaworsky, seconded by Councillor Henry:

1. That Council approve COM2019-038.

2. That Council approve A-013 Municipal Alcohol Policy.

Carried Unanimously

Council Meeting Page 14 of 120 January 13, 2020 c) Title: Strategic Plan Implementation Update Report No.: CAO2019-040 Prepared By: Anna Marie Cipriani

Anna Marie Cipriani, Executive Officer to the CAO, reviewed the report and responded to questions from Council.

Moved by Councillor Bodaly, seconded by Councillor Henry:

1. That Council receive this report as information.

Carried Unanimously

d) Title: City of Waterloo Economic Development Strategy 2019-2024 Report No.: CAO2019-034 Prepared By: Justin McFadden

Justin McFadden; Executive Director, Economic Development, introduced Trudy Parsons, Executive Vice-President at MDB Insight, the consulting firm which completed the draft City of Waterloo Economic Development Strategy for 2019-2024.

Ms. Parsons reviewed the draft Economic Development Strategy and responded to questions from Council.

Moved by Mayor Jaworsky, seconded by Councillor Freeman:

1. That Council approve the City of Waterloo Economic Development Strategy 2019-2024 including the following amendments:

 Include active transportation as an attractor for global talent  Include housing accessibility as a focus on Priority 1 for start-ups and new ventures as well  Include the arts industry in the list of partners for Objective 1: Enhance start-up and emerging arts and cultural industry support  Replace more parking as a measurement of success for Action Area 7 with redistributed parking  Review language for Objective 7 and shift focus to identifying systemic barriers and opportunities for improvement

Carried Unanimously

Council Meeting Page 15 of 120 January 13, 2020 5. ADJOURNMENT

Moved by Councillor Vieth, seconded by Councillor Freeman:

That the meeting adjourn. (Time: 3:41 p.m.)

Carried Unanimously

READ AND APPROVED, January 13th, 2020

Chair

City Clerk

Council Meeting Page 16 of 120 January 13, 2020 A meeting of the Finance and Strategic Planning Committee of The Corporation of the City of Waterloo was held on December 9, 2019 at 3:02 p.m. in the Council Chambers, 100 Regina Street, South, Waterloo, Ontario

FINANCE & STRATEGIC PLANNING COMMITTEE MEETING Monday, December 9, 2019

Minutes - DRAFT

Councillor Henry in the Chair

Councillor Henry opened the meeting with the following Territorial Acknowledgement:

Councillor Freeman left the meeting. (Time: 3:04 pm)

Councillor Freeman returned to the meeting. (Time: 3:06 pm)

1. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF

No disclosure of pecuniary interest was declared by any member of Council at this point in the meeting.

Council Meeting Page 17 of 120 January 13, 2020 2. APPROVAL OF MINUTES

a) November 18, 2019 – Finance and Strategic Planning Committee Meeting

Moved by Councillor Bodaly, seconded by Councillor Hanmer:

That the minutes of the Finance and Strategic Planning Committee Meeting held on November 18, 2019 be approved as printed.

Carried Unanimously

3. CONSENT MOTION

Moved by Councillor Vieth, seconded by Hanmer:

That consent motion items (a), (b), and (c) be approved.

Carried Unanimously

a) Title: 2020 Annual Debt and Financial Obligation Limit Calculation Report No.: CORP2019-085 Prepared By: Julie Koppeser

1. That Council receives the report CORP2019-085 for information.

Carried Unanimously

b) Title: Interim Spending Authority Report No.: CORP2019-084 Prepared By: Paul Hettinga

1. That Council approves Staff Report CORP2019-084.

2. That Council approves 2020 interim spending authority for City of Waterloo operating expenditures in an amount not to exceed $48,022,750 which represents 25% of the operating expenditure budget for each department.

Carried Unanimously

Council Meeting Page 18 of 120 January 13, 2020 c) Title: Park Strategy Implementation – Release of Capital Funding Report No.: COM2019-040 Prepared By: Andrea Bazler

1. That Council approve report COM2019-040.

2. That 2019 capital funding for the Park Strategy Implementation in the amount of $29,000 be released; $7,000 from the Capital Reserve Fund (CRF) and $22,000 from Development Charges (DC), as per the approved 2019 Capital Budget (Ref #226).

Carried Unanimously

Councillor Freeman left the meeting. (Time: 3:49 pm)

Councillor Freeman returned to the meeting. (Time: 4:14 pm)

4. PRESENTATIONS

a) 2020-2022 Operating and Capital Budget Overview

Keshwer Patel, Commissioner of Corporate Services, Chief Financial Officer, and Treasurer for the City of Waterloo, provided highlights of 2020-2022 operating budget, 2023-2029 capital forecast, as well as an overview of reserves, reserve funds and debt. Ms. Patel spoke of the household impact of the proposed budget and concluded by identifying further steps in 2020-2022 budget adoption process.

5. STAFF REPORTS

a) Title: 2020-2022 Budget Summary Report Report No.: CORP2019-088 Prepared By: Filipa Reynolds & Brad Witzel

Filipa Reynolds, Director of Financial Planning and Deputy Chief Financial Officer, reviewed the report and responded to questions from Council.

Moved by Mayor Jaworsky, seconded by Councillor Vieth:

1. That staff report CORP2019-088 be received as information.

Carried Unanimously

Council Meeting Page 19 of 120 January 13, 2020 b) Title: Long-Term Financial Plan - Update Report No.: CORP2019-075 Prepared By: Brad Witzel

Moved by Councillor Hanmer, seconded by Councillor Bonoguore:

1. That Council receives CORP2019-075 for information.

Carried Unanimously

c) Title: City Utilities – 2020 Rates – Proposed Report No.: IPPW2019-069 Prepared By: Todd Chapman and Michael Pugliese

Todd Chapman; Manager of Water Services Program, and Michael Pugliese, Financial Analyst, reviewed the report and responded to questions from Council.

Moved by Councillor Vasic, seconded by Councillor Vieth:

1. That Council receives IPPW2019-069 as information.

2. That Council direct staff to bring IPPW2020-001, attached as Appendix A, back for Council consideration at the January 13, 2020 council meeting.

Carried Unanimously

d) Title: Building Standards 2020 Fees and Charges Report No.: IPPW2019-037 Prepared By: Ron Ormson

Moved by Councillor Vieth, seconded by Councillor Bodaly:

1. That Council approve IPPW2019-037.

2. That Council approve the rates as outlined in Appendix A – Building Standards Fees and Charges; and, that rates remain unchanged at current levels pending the completion of a formal fee review study in 2020.

Carried Unanimously

Council Meeting Page 20 of 120 January 13, 2020 e) Title: Reserves and Reserve Funds Annual Update Report No.: CORP2019-060 Prepared By: Julie Koppeser

Moved by Mayor Jaworsky, seconded by Councillor Hanmer:

1. That Council approve report CORP2019-060.

2. That Council approve that the Reserve Level policy for the Employee Development and Capacity Building Reserve (EMPDV) be revised to a minimum balance of $500,000.

3. That Council approve that the Reserve Level policy for the Fleet Equipment Reserve (ER) be revised to 30% of the 5 year average spending for fleet.

4. That Council approve that the Reserve Level Policy for the Innovation Reserve (INN) be reduced to $250,000 and the balance be transferred to the Capital Reserve Fund.

5. That Council approve the following housekeeping adjustments be updated in the Reserves and Reserve Fund Policies:

a. That Council approve that the Revenue policy of the Capital Infrastructure Reinvestment Reserve Fund (CIRRF) be updated to include 100% of Capital Overhead Revenue Surplus.

b. That Council approve that the Sick Leave and Vacation Liability (SL&V) Expenditures policy be updated to include costs incurred in relation to presumptive claims, as well as health care costs for retired firefighters in alignment with the current collective agreement.

c. That Council approve that the Economic Development Reserve (ECDEV) Revenues policy be updated to add that, in addition any annual Municipal Accommodation Tax (MAT) surplus is allocated to this reserve, in a separate program.

Council Meeting Page 21 of 120 January 13, 2020 d. That Council approve that the Economic Development Reserve (ECDEV) Expenditures policy be updated to add that, in addition, surplus funds collected and held in the separate Municipal Accommodation Tax program are to be used for purposes recommended by the Director of Economic Development, including but not limited to:

 market research  tourism, sport and cultural infrastructure (permanent and event related)  bid and grant funding for International, National, and Provincial-scale events  Major festival and event expansion/development  One-time Festival and Event acquisition costs  Collaborative tourism marketing efforts  Additional staff resources, if required, to support the efforts above  Any other items that may be prescribed / allowed by provincial legislation

e. That Council approve that the Fleet Equipment Reserve (ER) Expenditures policy be updated to add that expenditures related to the replacement of Fleet Garage assets will be tracked through a separate program number within the reserve.

f. That Council approve that the Reserve Level policy for the Tax Rate Stabilization Reserve (TRS) be amended to include that any transfers in excess of the cap would take place at year end. 6. That Council approve that FC-006 Reserves and Reserve Funds Policy attached as Appendix A, be updated for the changes recommended in 1 through 5, inclusive.

Carried Unanimously

Council Meeting Page 22 of 120 January 13, 2020 6. NEW BUSINESS

i. Other Business

Moved by Councillor Bonoguore, seconded by Councillor Freeman:

That Council approve participation in a joint meeting with the Councils of the Regional Municipality of Waterloo and all Area Municipalities within the Region of Waterloo on Tuesday, December 17, 2019 from 2:00 p.m. to 4:30 p.m. in the Regional Council Chamber at 150 Frederick Street, Kitchener, Ontario, in accordance with Section 236 (2) of the Municipal Act, 2001 for the consideration of matters of common interest.

Carried Unanimously

7. ADJOURNMENT

Moved by Councillor Vieth, seconded by Councillor Freeman:

That the meeting adjourn. (Time: 4:36 p.m.)

Carried Unanimously

READ AND APPROVED, January 13th, 2020

Chair

City Clerk

Council Meeting Page 23 of 120 January 13, 2020 A meeting of the Council of The Corporation of the City of Waterloo was held on December 16, 2019 at 6:30 p.m. in the Council Chambers, 100 Regina Street, South, Waterloo, Ontario

COUNCIL MEETING Monday, December 16, 2019

Minutes - DRAFT

Mayor Jaworsky in the Chair

Mayor Jaworsky opened the meeting with the following Territorial Acknowledgement:

1. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF

No disclosure of pecuniary interest was declared by any member of Council at this point in the meeting.

2. MOMENT OF REFLECTION The Mayor provided Council with a moment of reflection.

Council Meeting Page 24 of 120 January 13, 2020 3. APPROVAL OF MINUTES

Moved by Councillor Vieth, seconded by Councillor Freeman:

That the previous meeting minutes be approved.

Carried Unanimously

a) November 25, 2019 – Council Meeting

That the minutes of the Council meeting held on November 25, 2019 be approved as printed.

Carried Unanimously

b) December 9, 2019 – Special Council Meeting

That the minutes of the special Council meeting held on December 9, 2019 be approved as printed.

Carried Unanimously

4. REPORTS OF COMMITTEES

a) Title: Committee of the Whole Report – December 2, 2019 Report No.: CORP2019-090 Prepared By: Kevin Gerlach

Moved by Councillor Hanmer, seconded by Councillor Henry:

1. That CORP2019-090 be approved.

2. That the recommendations of the Committee of the Whole meeting of Monday, December 2, 2019 be adopted.

Carried Unanimously

Council Meeting Page 25 of 120 January 13, 2020 b) Title: Finance and Strategic Planning Committee Report - December 9, 2019 Report No.: CORP2019-091 Prepared By: Kevin Gerlach

Moved by Councillor Hanmer, seconded by Councillor Henry:

1. That CORP2019-091 be approved

2. That the recommendations of the Finance and Strategic Planning Committee meeting of Monday, December 9, 2019 be adopted.

Carried Unanimously

5. PRESENTATIONS

a) Reconstruction of Larch Street – Living Street

Mike Lupsa, Senior Project Engineer, introduced the project team.

Karen Anderson, Landscape Architect, advised Council that the City of Waterloo had selected Larch Street between Hickory Street West and Balsam Street as a candidate for a ‘living street’ or Woonerf street.

Ms. Anderson defined living streets as roads that are designed with special features to reduce the amount of traffic or make it go slower, with the aim of providing a pedestrian- friendly public space. The Larch Street reconstruction will feature curb-less pavement, a curved street alignment, and soil cells for the planting of trees.

Ms. Anderson informed Council the project is currently in the process of community consultation and the project team is also consulting with other experts in the City of Waterloo and the Netherlands. The tender for the project will be issued in January of 2020 with construction expected to last from May to August in 2020.

6. DELEGATIONS

a) Accessibility of Sidewalks During Winter

Cait Glasson, a resident of Waterloo, provided Council with personal testimony about the inaccessibility of sidewalks in the City during the winter and how snow and ice limit the ability of some residents to travel to grocery stores and pharmacies.

Cait Glasson identified several municipalities for Council’s consideration that provide the service of clearing snow and ice for residents and noted that there are residents in Waterloo unable to clear their sidewalks due to physical disabilities and that cannot afford a commercial service.

Council Meeting Page 26 of 120 January 13, 2020 7. STAFF REPORTS

a) Title: City of Waterloo Stormwater Management Master Plan EA Report No.: IPPW2019-061 Prepared By: Jessica Kellerman

Jessica Kellerman; Senior Project Manager, Storm Water, introduced Chris Denich, Professional Engineer from Aquafor Beech, the consulting team contracted to update the Stormwater Management Master Plan.

Chris Denich reviewed the City of Waterloo Stormwater Management Master Plan Environmental Assessment and responded to questions from Council.

Moved by Councillor Hanmer, seconded by Councillor Vasic:

1. That IPPW2019-061 be approved.

2. That Council endorse the City of Waterloo Stormwater Management Master Plan Environmental Assessment and direct staff to file the Notice of Completion and commence the mandatory 30-day public review period, as required by the Municipal Class Environmental Assessment process.

Carried Unanimously

Councillor Vasic left the meeting: (Time: 7:44 p.m.) Councillor Vasic returned to the meeting: (Time: 7:46 p.m.)

b) Title: Proposed Demolition of Residential Dwellings: 199, 203, 205 Albert Street Report No.: IPPW2019-072 Prepared By: Dominik Simpson

Moved by Councillor Bonoguore, seconded by Councillor Bodaly:

1. That Council approve report IPPW2019-072.

2. That Council grant relief from the requirement of subsection 7.b. of the Demolition Control Area By-law to allow for the demolition of the existing dwellings at 199, 203, 205 Albert Street prior to obtaining Site Plan Approval.

Carried Unanimously

Council Meeting Page 27 of 120 January 13, 2020 c) Title: Joint Services 2019 Update Report No.: CAO2019-041 Prepared By: Adam Lauder

Moved by Councillor Freeman, seconded by Councillor Bodaly:

1. That CAO2019-041 be received as information.

Carried Unanimously

Councillor Bonoguore left the meeting: (Time: 7:53 p.m.) Councillor Bonoguore returned to the meeting: (Time: 7:55 p.m.)

d) Title: Development Charge By-law Approval Report No.: CORP2019-089 Prepared By: Michael Pugliese

Alicia Monteith, Urban Planner, Prica Global Enterprises Inc., advised Council that the differential rates between studio/one bedroom and two or more bedrooms will impact projects that are currently undergoing approval through the City of Waterloo. Ms. Monteith stated the Region of Waterloo also approved an increase in development charges in 2019 and that these combined increases may put development projects in jeopardy.

Ms. Monteith requested Council consider allowing projects for which applications for building permits had been submitted, but not yet granted, to be assessed development charges under the existing by-law.

Moved by Councillor Freeman, seconded by Councillor Henry:

1. That CORP2019-089 be approved.

2. That Council confirm that no further public meetings are required prior to the adoption of the proposed Development Charge By-law.

3. That Council approve the proposed Development Charge By-law as set out in Appendix A.

Carried Unanimously

Council Meeting Page 28 of 120 January 13, 2020 e) Title: East Side Branch Library – Release of Funds and Project Update Report No.: COM2019-039 Prepared By: Kevin Van Ooteghem

Kevin Van Ooteghem, Senior Project Engineer, reviewed the report and the East Side Branch Library project and responded to questions from Council.

Laura Dick; Manager, Branches, Waterloo Public Library provided an overview to Council of the history of the East Side Branch Library project and commented on the significant extent of public consultation.

Councillor Bonoguore left the meeting: (Time: 8:19 p.m.) Councillor Bonoguore returned to the meeting: (Time: 8:21 p.m.)

John MacDonald, Principal of John MacDonald Architect, and Tina Ranieri-D’Ovidio, Principal of ward99 Architects, presented the site plans for the East Side Branch Library and responded to questions from Council.

Moved by Councillor Freeman, seconded by Councillor Henry:

1. That Council approve report COM2019-039.

2. That capital funding for the East Side Branch Library project (ref# 801), in the amount of $3,748,000, funded $2,327,000 from the Development Charges Reserve Fund, and $1,421,000 from the Library Expansion Reserve Fund, be released as per the 2019 Approved Capital Budget.

3. That 2020 capital funding for the East Side Branch Library project (ref# 801) in the amount of $3,858,000, funded $2,396,000 from the Development Charges Reserve Fund, and $1,462,000 from the Library Expansion Reserve Fund, be carried forward and approved from 2020 to 2019 and subsequently released, as per the 2019 Approved Capital Budget.

4. That $1,325,000, a portion of the one-time 2019 Federal Gas Tax top-up, from the Gas Tax Reserve Fund be released.

5. That Council approve the transfer of $120,000 from Project #190020 - Roofing Replacement Program funded from the Gas Tax Reserve and $75,000 from Project #160163 – Waterloo Public Library Mechanical Upgrades funded from Capital Infrastructure Renewal and Replacement Fund.

Council Meeting Page 29 of 120 January 13, 2020 6. That Council approve the release of $330,000 from the proposed 2020-2022 Capital Budget (ref#271) Green Building Policy. Early capital approval was granted on the November 18th report CORP2019-080 – Early Approval of Capital Projects.

7. That Council approve the required Public Art Contribution as per Policy A-018, in the amount of $87,050, and that it be directed to fund the Public Art component of the East Side Branch Library project. Carried Unanimously

8. FORMAL/INFORMAL PUBLIC MEETINGS

a) Title: Minor Highway Closing – Old Albert Street adjacent Quiet Place and Waterloo LRT Corridor Report No.: IPPW2019-067 Prepared By: Chris Hodgson

Moved by Councillor Freeman, seconded by Councillor Vieth:

1. That IPPW2019-067 be approved.

2. That a portion of Old Albert Street, legally described as Parts 1 and 3 on Plan 58R-20566, be closed.

3. That the City retain ownership of the former right of way for pedestrian, utility or other municipal purposes.

Carried Unanimously

9. ENACTMENT OF BY-LAWS

Moved by Councillor Vieth, seconded by Councillor Freeman:

That By-law Numbers 2019-064, 2019-065, and 2019-066 be read a first, second and third time and finally passed, and that the Mayor and Clerk be authorized to sign them accordingly.

a) By-law no. 2019-064 By-law respecting Development Charges in the City of Waterloo. (CORP2019-089, December 16, 2019)

Council Meeting Page 30 of 120 January 13, 2020 b) By-law no. 2019-065 By-law for stopping up and closing a laneway running North from John Street, parallel to and West of King Street, being Alley Plan 385, City of Waterloo abutting Lots 93, 94, 132 & 133; a public highway in the City of Waterloo and for conveying the soil and freehold of such stopped up and closed highway. (CAO2019- 037, November 18, 2019)

c) By-law no. 2019-066 By-law to confirm all actions and proceedings of Council, December 16, 2019 – Regular

Carried Unanimously

10. ADJOURNMENT

Moved by Councillor Bodaly, seconded by Councillor Henry:

That the meeting adjourn. (Time: 9:00 p.m.)

Carried Unanimously

READ AND APPROVED, January 13th, 2020

Chair

City Clerk

Council Meeting Page 31 of 120 January 13, 2020 A special meeting of the Council of the Corporation of the City of Waterloo was held on December 19th, 2019 at 10:00 a.m. in the Council Chambers, 100 Regina Street South, Waterloo, Ontario.

SPECIAL COUNCIL MEETING Thursday, December 19, 2019

AGENDA

PRESENT: Mayor Dave Jaworsky, Councillor Sandra Hanmer, Councillor Royce Bodaly, Councillor Angela Vieth, Councillor Diane Freeman, Councillor Jeff Henry, Councillor Tenille Bonoguore

ABSENT: Councillor Jen Vasic

Mayor Jaworsky in the Chair

1. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF

No disclosure of pecuniary interest was declared by any member of Council at this point in the meeting.

2. CLOSED MEETING

Moved by Councillor Henry, seconded by Councillor Hanmer:

That Council hold a closed meeting for the purposes of considering the following subject matter:

a) labour relations or employee negotiations (CUPE Employees).

Carried Unanimously

Council Meeting Page 32 of 120 January 13, 2020 3. ADJOURNMENT

Moved by Councillor Henry, seconded by Councillor Hanmer:

That the meeting adjourn. (Time: 10:01 a.m.)

Carried Unanimously

READ AND APPROVED, January 13th, 2020

Chair

City Clerk

Council Meeting Page 33 of 120 January 13, 2020 STAFF REPORT Community Programming & Outreach Services

Title: Grand River Accessibility Advisory Committee Appointments (2020) Report Number: COM2020-001 Author: Lolita Paroski Meeting Type: Council Meeting Council/Committee Date: January 13, 2020 File: N/A Attachments: N/A Ward No.: All

Recommendation:

1. That Council approve report COM2020-001.

2. That Council approve the following applicants be appointed to the Grand River Accessibility Advisory Committee for a 4-year term ending December 31, 2023, pending ratification by the partnering municipalities of the City of Kitchener, Region of Waterloo, Township of North Dumfries, Township of Wellesley, Township of Woolwich and Township of Wilmot.

Council Meeting Page 34 of 120 January 13, 2020 A. Executive Summary

The Grand River Accessibility Advisory Committee (GRAAC) is a requirement of the Accessibility for Ontarians with Disabilities Act, 2005 and is appointed the task of advising the participating municipalities on accessibility issues. The majority of GRAAC membership must be persons with a disability. Pending ratification by each of the participating municipalities, staff is recommending that the six persons noted above be appointed by the City of Waterloo as members. This will bring the Committee to its full membership of 15 allowing the recruitment process to close.

B. Financial Implications

NONE

C. Technology Implications

NONE

D. Link to Strategic Plan (Strategic Objectives: Equity, Inclusion and a Sense of Belonging; Sustainability and the Environment; Safe, Sustainable Transportation; Healthy Community & Resilient Neighbourhoods; Infrastructure Renewal; Economic Growth & Development)

(Guiding Principles: Equity and Inclusion; Sustainability; Fiscal Responsibility; Healthy and Safe Workplace; Effective Engagement; Personal Leadership; Service Excellence)

Equity, Inclusion and a Sense of Belonging Enhances the creation of an inclusive community by involving a committee comprised of a majority of persons with disabilities and providing advice to Council on the prevention, identification and removal of barriers for persons with disabilities.

E. Previous Reports on this Topic COM2018-001 – Grand River Accessibility Advisory Committee Appointments (2018)

F. Approvals

Name Signature Date

Author: Lolita Paroski December 16, 2019 Director: Jim Bowman Commissioner: Mark Dykstra Finance: N/A CAO

Council Meeting Page 35 of 120 January 13, 2020 Grand River Accessibility Advisory Committee Appointments (2020) COM2020-001

Under the requirements of the Accessibility for Ontarians with Disabilities Act, 2005 (AODA), all municipalities with a population of 10,000 or greater are required to establish an Accessibility Advisory Committee to advise Council on the prevention, identification and removal of barriers for persons with disabilities. The Grand River Accessibility Advisory Committee (GRAAC) is a joint committee of the Cities of Kitchener and Waterloo, Region of Waterloo and the Townships of North Dumfries, Wellesley, Woolwich and Wilmot.

The Terms of Reference of the GRAAC adopted by Council in 2003 specify that the Committee will consist of 11 to 15 members of which a majority must be persons with a disability. In April 2015, revisions were made to the Terms of Reference to permit representation from the Township of Wilmot and to change the length of terms from 3 years to 4 years.

Recruitment for GRAAC is conducted in the fall of each year with members beginning 4- year terms in January. Notices requesting applications were posted on the participating Municipalities’ websites and posted on all participating Municipalities’ social media feeds. A selection committee of staff representing the participating municipalities reviewed the applications. Recommendations for membership are based on the duties and functions identified in the Terms of Reference as well as strive for fair representation from the participating municipalities and various disability groups.

Pending ratification by each of the participating municipalities, staff is recommending that the persons noted above be appointed by the City of Waterloo as members. This will bring the Committee membership to 15 members allowing the recruitment process to close. The 2021 recruitment process will open in the fall of 2020 for new members and reappointments.

Council Meeting Page 36 of 120 January 13, 2020 STAFF REPORT City Utilities

Title: City Utilities – 2020 Rates Report Number: IPPW2020-001 Author: Todd Chapman, Michael Pugliese Meeting Type: Council Meeting Council/Committee Date: January 13, 2020 File: N/A Attachments: Appendix A: Revenue & Expenditures Appendix B: City Utilities Fees & Charges Appendix C: Letter of support for non-competitive procurement Appendix D: Proprietary technology confirmation letter from Sensus (KTI LTD) Appendix E: Letter of support from Waterloo North Hydro Appendix F: Map of billing sections Ward No.: City Wide

Recommendations: 1. That IPPW2020-001 be approved.

3. That Council approves the 2020 sanitary sewer rate as $2.53/m3, comprised of the City portion of the rate at $1.2249/m3 and the Regional portion of the rate at $1.3051/m3 as set out in Table 1 of report IPPW2020-001, and that the Fees & Charges By-Law be updated to reflect the sanitary sewer rate effective February 1, 2020.

4. That Council approves the 2020 stormwater rates as outlined below and that the Fees & Charges By-Law be updated to reflect the stormwater rates effective February 1, 2020: • Residential; small $8.50/month, medium $12.75/month, and large $18.61/month • Multi-Residential; small $24.41/month, medium $103.29/month, and large $550.37/month

Council Meeting Page 37 of 120 January 13, 2020 • Institutional; small $39.57/month, medium $106.93/month, and large $218.95/month • Commercial/Industrial; small $32.74/month, medium $152.89/month, large $492.69/month, and largest $1,247.95/month

5. That Council approves the 2021-2029 water, sanitary sewer, and stormwater rate forecast in principle as set out in Table 1 of report IPPW2020-001.

6. That Council approve that the Fees & Charges By-Law be updated for the rates and effective dates as shown on Appendix B of report IPPW2020-001.

8. That Council endorses a non-competitive procurement of Sensus (KTI Ltd) transmitters in order to utilize Waterloo North Hydro’s infrastructure and Sensus’ transmitters (Appendix C, D & E).

9. That Council provides authorization to the Mayor and Clerk to enter into a formal contract with Waterloo North Hydro to utilize their AMI communication platform, should recommendation 7 be approved, subject to the approval of the City Solicitor.

A. Executive Summary

City Utilities rates pay for the costs associated with providing drinking water, collecting and treating sanitary wastewater, and responsibly managing stormwater (including water quality control and flood control). Through these services, all residents and businesses within Waterloo can rely on receiving a reliable supply of drinking water, sanitary sewer collection, protection of our source water, and a reduced risk from weather-related incidents like flooding.

The recommended City Utilities rates for 2020 are $1.97/m3 for water (comprised of the City portion of the rate at $0.8747/m3 and the Regional portion of the rate at $1.0953/m3) and $2.53/m3 for sanitary sewer (comprised of the City portion of the rate at $1.2249/m3 and the Regional portion of the rate at $1.3051/m3). Stormwater rates are considered a tiered flat rate with the majority (60%) of customers in the City of Waterloo categorized in the residential medium rate tier, with a recommended 2020 rate of $12.75/month.

An important addition to the 2020 rate report is the recommendation for a citywide advanced metering infrastructure (AMI) implementation. Section 9 provides details on the project funding and proposed implementation.

Council Meeting Page 38 of 120 January 13, 2020 B. Financial Implications

Staff have developed the 2020 water, sanitary sewer, and stormwater rates along with the 2021-2029 rate forecast recommended in this report that aligns with the City of Waterloo recommended 2020 Operating and Capital budgets. As such, it is recommended that the 2020 City Utilities rates be approved as outlined in Table 1 of this report.

The annual financial impact of the recommended overall City Utilities increase for 2020 is 3.9% (or $41.87) for the average household; of which the City’s share is 2.5% (or $27.00) and the Region’s share is 1.4% (or $14.87).

C. Technology Implications

An AMI system would have an impact on the City’s billing system, and would introduce new software for both administrative and customer related needs.

(Guiding Principles: Equity and Inclusion; Sustainability; Fiscal Responsibility; Healthy and Safe Workplace; Effective Engagement; Personal Leadership; Service Excellence) The water, sanitary sewer, and stormwater rates and associated operating and capital budget are linked to the Strategic Plan: • Infrastructure renewal – Ensuring investment in infrastructure through responsible operations and maintenance activities and capital renewal/replacement strategies • Sustainability and the Environment – Implementing watershed improvement and infrastructure projects and providing incentives to encourage green infrastructure. • Service Excellence – Implementing an AMI system would provide enhanced customer service for the City’s water customers, while promoting awareness regarding potable water conservation, and aligns with the City of Waterloo’s goal of efficient and automated processes for both staff and customers

E. Previous Reports on this Topic BY-LAW NO. 2013 -115 – Supply of Water By-Law IPPW2016-032 – Water & Sanitary Sewer Financial Plans and Rate Design Study Recommendations PPW2017-037 – Advanced Metering System Pilot Review (July 24, 2017) IPPW2017-071 – Water Services Utility – 2018 Rates (December 11, 2017) IPPW2019-001 – City Utility Rates 2019 (January 21, 2019) IPPW2019-003 – High Water Bill Adjustment Policy (May 27, 2019)

Council Meeting Page 39 of 120 January 13, 2020 F. Approvals

Name Signature Date Author: Todd Chapman Author: Michael Pugliese Director: Roy Garbotz Commissioner: Cameron Rapp Finance: Keshwer Patel CAO

Council Meeting Page 40 of 120 January 13, 2020

City Utilities – 2020 Rates IPPW2020-001

Section 1 – Overview of City Utilities

The City Utilities division within the Integrated Planning and Public Works department is responsible for the distribution of potable drinking water, the collection of sanitary wastewater, and the management of stormwater (water quality control and flood control). Through these services, all residents and businesses within the City of Waterloo can rely on receiving a reliable supply of drinking water, sanitary sewer collection, protection of our source water and a reduced risk from weather-related incidents like flooding. Through cross-border servicing agreements in place, City Utilities provides sanitary wastewater collection to customers from the Bridgeport area and the Sunbridge subdivision in the City of Kitchener. City Utilities also provides both water and sanitary services to the Outlet Mall and Farmers Market in the Township of Woolwich and the Falconridge subdivision in the City of Kitchener.

Over $1 billion of infrastructure is maintained by the City Utilities division including: • 435 km of watermains • 419 km of sanitary sewers • 6 sanitary pumping stations • 343 km of storm sewers • 59 stormwater management ponds

The total replacement cost of this critical infrastructure is as follows based on latest estimates from the City’s Asset Management system (2019 asset values): • water distribution – $357 million • sanitary sewer collection (including pumping stations) - $368 million • stormwater management & ponds - $342 million

City Utilities generates all funds for operations, maintenance, and capital projects from water, sanitary sewer, and stormwater rates and service charges (no revenue is generated from property taxes). City Utilities works closely with Finance (Revenue & Accounting Services and Financial Planning) on utility billing and the preparation of budgets and 10 year rate forecasts.

Council Meeting Page 41 of 120 January 13, 2020 Section 2 – Stormwater Management Background

Stormwater management (SWM) is the planning and controlling of stormwater runoff from rain and melted snow for the purposes of minimizing risk of erosion, flooding and water quality degradation. Stormwater management serves to reduce the impact created when our urban landscape changes from undeveloped, natural areas to cities with buildings, roadways, parking lots and ever-increasing impervious areas. Good stormwater management practices and infrastructure provides: • a level of flood risk protection to properties; • protection of our drinking water sources; and, • helps mitigate the impact of pollution and erosion to the natural environment.

Stormwater management systems consist of infrastructure such as pipes, culverts, ditches, catch basins, manholes, stormwater management ponds, infiltration facilities and engineered landscape features, as well as, natural features such as creeks, rivers and lakes. The operation, maintenance, rehabilitation, renewal and replacement of this infrastructure is subject to such legislation as the Ontario Water Resources Act, Canadian Environmental Protection Act, the Fisheries Act, Clean Water Act, Water Opportunities Act and several guidelines published through the Ministry of Environment, Conservation and Parks, and Ministry of Natural Resources. The Grand River Conservation Authority (GRCA) also provides a significant role in the permitting and approvals process.

Previous rate reports have described the funding gap that the Stormwater program has been operating under. As part of the 2015 budget process, Council approved the first step towards a more sustainable Stormwater funding level by approving the 2015-2018 Stormwater rate increases. An Asset Management Plan (AMP) report (CORP2016-099) was previously presented to Council for their approval. The report identified a funding gap of $3 million, above what Staff had been recommending as a funding level. This gap will be discussed in future City Utilities Rate reports under guidance from the AMP as the data is further refined.

Senior management is recommending investing in the Stormwater program with the addition of a Manager of Stormwater & Construction and a Supervisor of Stormwater & Construction in 2020, along with adding an additional front line crew member in 2021. This investment will help maintain current service levels while addressing a backlog of critical infrastructure maintenance work. Stormwater is becoming a growing concern because of climate changes the City is experiencing. Annual budgets are not being fully utilized as a result of not having a manager and supervisor to oversee the vast operational demands. The Manager and Supervisor of Sanitary Sewer Operations currently oversee both Sanitary Sewer & Stormwater operations in addition to the construction crew by coordinating servicing projects internally and externally. By adding a dedicated manager and supervisor to the Stormwater section, it will increase overall capacity in Sanitary Sewer, Stormwater, and construction operations, along with addressing numerous drainage complaints received from residents.

Council Meeting Page 42 of 120 January 13, 2020 With the additional resources invested in the Stormwater program as noted above, along with an increasing capital program, staff are proposing to issue debt financing in 2021 and again in 2024 to help fund the increased capital portion of the budget, thereby smoothing rate increases through the forecast period. Debt financing will help spread capital costs over time until annual revenues are more in line with annual expenses. The 2020 proposed rates are the same as forecasted last year and the long-term rate forecast has also remained the same as prior models in light of the additional investment in the Stormwater business unit. By 2026, the SWM financial model is forecasting a more sustainable revenue vs expense level with annual rate increases from 2026 onwards forecasted at 2%.

The recommended ten year stormwater rate forecast is provided in Table 1.

Section 3 – Recommended Operating and Capital Budget

The recommended citywide 2020-2022 Operating and Capital Budget and 2023-2029 Capital Budget Forecast was released on December 9, 2019 for public review with the target date of February 10, 2020 for Council’s consideration of the budget. The recommended operating and capital budget is aligned with the 2020 City Utilities rates and the 2021-2029 rate forecast.

Details on the City Utilities 2020 budget are provided in the above referenced budget documents.

Section 4 – Recommended Rates

The recommended City Utilities retail rates for 2020 are:

• Water - $1.97/m3 • Sanitary Sewer - $2.53/m3 • Stormwater - o Residential; small $8.50/month, medium $12.75/month, and large $18.61/month o Multi-Residential; small $24.41/month, medium $103.29/month, and large $550.37/month o Institutional; small $39.57/month, medium $106.93/month, and large $218.95/month o Commercial/Industrial; small $32.74/month, medium $152.89/month, large $492.69/month, and largest $1,247.95/month

The effective date for the 2020 rates is February 1, 2020 and the 2021-2029 forecast rates have an effective date of January 1 for modelling purposes. If the proposed 2020 rates were to be delayed beyond February 1, 2020, a revenue loss of approximately $130,000 per month would be incurred by the Water/Sanitary Sewer business units, and

Council Meeting Page 43 of 120 January 13, 2020 a loss of approximately $41,000 per month would be incurred by the Stormwater business unit. The ten year forecast of City Utilities rates is provided for planning purposes and is reviewed on an annual basis. The recommended rate forecasts are intended to accomplish a number of objectives: • provide reasonable water, sanitary sewer, and stormwater operating and capital programs over the 10 year forecast, with sufficient user rates to support these programs; • provide for stable rate increases over time, instead of volatile increases; • maintain appropriate reserve balances over the 10 year forecast; • enable operations and maintenance programs to responsibly manage the water distribution, sanitary sewer collection, and stormwater management infrastructure; • meet legislative requirements related to drinking water, sanitary sewers and stormwater management; • meet the challenges of both an aging and growing infrastructure system so as to renew/replace existing infrastructure and build capacity appropriately to ensure reliable infrastructure for a growing community; • allow flexibility to respond to unforeseen operating and capital pressures; • incorporate the Region of Waterloo wholesale rate forecasts.

Table 1 below provides a summary of the 2020 recommended rates and 2021-2029 rate forecast.

Table 1 – Recommended City Utilities Rates:

Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Water ($/m3) 1.90 1.97 2.04 2.12 2.21 2.30 2.40 2.48 2.55 2.62 2.69 Sanitary ($/m3) 2.45 2.53 2.61 2.70 2.79 2.89 3.00 3.13 3.26 3.40 3.55 Service Charge - 15mm ($/month) 3.20 3.26 3.33 3.40 3.47 3.62 3.79 4.00 4.23 4.48 4.57 Residential Small ($/month) 7.94 8.50 9.10 9.56 10.04 10.54 10.96 11.18 11.40 11.63 11.86 Residential Medium ($/month) 11.92 12.75 13.64 14.32 15.04 15.79 16.42 16.75 17.09 17.43 17.78 Residential Large ($/month) 18.61 18.61 18.61 19.54 20.52 21.55 22.41 22.86 23.32 23.79 24.27 Multi- Residential Small ($/month) 22.81 24.41 26.12 27.43 28.80 30.24 31.45 32.08 32.72 33.37 34.04 Multi-Residential Medium ($/month) 96.53 103.29 110.52 116.05 121.85 127.94 133.06 135.72 138.43 141.20 144.02 Multi-Residential Large ($/month) 514.36 550.37 588.90 618.35 649.27 681.73 709.00 723.18 737.64 752.39 767.44 Institutional Small ($/month) 36.98 39.57 42.34 44.46 46.68 49.01 50.97 51.99 53.03 54.09 55.17 Institutional Medium ($/month) 99.93 106.93 114.42 120.14 126.15 132.46 137.76 140.52 143.33 146.20 149.12 Institutional Large ($/month) 204.63 218.95 234.28 245.99 258.29 271.20 282.05 287.69 293.44 299.31 305.30 Stormwater Tiers Commercial/Industrial Small ($/month) 30.60 32.74 35.03 36.78 38.62 40.55 42.17 43.01 43.87 44.75 45.65 Commercial/Industrial Medium ($/month) 142.89 152.89 163.59 171.77 180.36 189.38 196.96 200.90 204.92 209.02 213.20 Commercial/Industrial Large ($/month) 460.46 492.69 527.18 553.54 581.22 610.28 634.69 647.38 660.33 673.54 687.01 Commercial/Industrial Largest ($/month) 1,166.31 1,247.95 1,335.31 1,402.08 1,472.18 1,545.79 1,607.62 1,639.77 1,672.57 1,706.02 1,740.14

Section 5 – Breakdown of Rates

The rate increases proposed by the City of Waterloo include various factors. The single largest factor impacting the water and sanitary sewer rates are the proposed rate

Council Meeting Page 44 of 120 January 13, 2020 increases from the Region of Waterloo, the City’s sole supplier of drinking water and treatment provider for wastewater. For these services, the Region charges wholesale rates to the City.

Similar to the City, the Region budgets a ten year forecast of wholesale water and wastewater rates. The Regional wholesale rate forecast is utilized by City staff for planning, forecasting, and rate-setting purposes.

The recommended water and sanitary sewer retail rate increases for 2020 are broken down into a City portion and a Region portion as provided in Table 2. The Region’s wholesale rate approval date is proposed for December 11, 2019 with a January 1, 2020 effective date. Provided there are no significant changes to the Region’s 2020 approved wholesale rates, the City will maintain the staff recommended rates in this report.

Table 2 - Breakdown of Rate Increase:

2019 2020 Increase Actual Proposed Increase (%) Rates ($) ($) ($) City Portion of Rate - Water 0.8251 0.8747 0.0496 6.0% City Portion of Rate - Sanitary Sewer 1.1939 1.2249 0.0310 2.6% Sub-total - City Portion / m3 2.0190 2.0996 0.0806 4.0% Region Portion of Rate - Water 1.0749 1.0953 0.0204 1.9% Region Portion of Rate - Sanitary Sewer 1.2561 1.3051 0.0490 3.9% Sub-total - Region Portion / m3 2.3310 2.4004 0.0694 3.0% TOTAL VOLUMETRIC RATE /m3 4.3500 4.5000 0.1500 3.4%

2019 2020 Increase Actual Proposed Increase (%) Rates ($) ($) ($) City Stormwater - Res Medium / month 11.92 12.75 0.83 7.0% City Service Fee - 15mm Meter / month 3.20 3.26 0.06 1.9% TOTAL FIXED FEES / MONTH 15.12 16.01 0.89 5.9%

Note: The above City/Region breakdown of the City of Waterloo’s retail rate is a basic calculation to deduct the wholesale Region rate from the total rate charged to residents. It does not take into account specific factors including: City consumption patterns, effective dates of rate increases and City cost impacts from non-revenue water use & sanitary sewer flows. These impacts are not material on the total % figures noted in the table and have therefore been omitted for simplicity.

The City’s portion of the 2020 Water rate increase is rising mainly from the addition of two water operators, along with a slightly higher capital program throughout the forecast period. The additional staff are needed to continue providing critical water distribution maintenance and related projects for customers. By adding additional front line water

Council Meeting Page 45 of 120 January 13, 2020 operators to the crew, it will increase capacity to complete more work internally in addition to assisting with Winter Control operations.

The City’s portion of the 2020 Sanitary Sewer increase is rising in line with annual inflation. Sanitary Sewer has seen surpluses over the past few years due to favourable summer weather conditions that has helped offset the increasing capital program over the forecast period, keeping the City’s portion of the rate increase nominal for 2020. The Sanitary Sewer section is also proposing to add an additional operator to the crew in 2021 to keep up with the ongoing demand for critical sewer maintenance and rehabilitation.

Staff aim to balance rate increase fluctuations along with maintaining reserves at the Council approved target level (discussed further below in Section 7). Often times this balancing will result in rate increases in some years in order to build reserves for future years that might have a larger capital program. This helps reduce the volatility of rate increases for users over the entire 10-year forecast period.

With regards to the City Utilities invoice, there is a ‘blended rate’ period that occurs each year. A blended rate occurs when the water/wastewater charge is a combination of the previous and current year’s rates. Staff will be coordinating the blended rate period, along with the City’s revenue billing team, to ensure the blended rate is updated and accurate. Residents will see an explanation on their bill that is similar to the following:

- Blended rates on this bill are calculated based on the water and sewer consumption days used in 2019 (## days) and 2020 (## days). These are the average days for your billing area. The 2020 monthly service charges will be applied on your next bill -

Section 6 – Annual Household Impact

The average annual City Utilities bill for a single detached home in Waterloo with an average consumption rate of 17 cubic metres per month will be $1,107 in 2020 for water, sanitary sewer, and stormwater services. This represents an increase of $42 annually, or 3.9% when compared to the average cost of $1,065 in 2019.

Household impact is a calculation that takes into account not only the volumetric rate increase but also the effective date of the new rates, consumption estimates for the average household, and the fixed monthly stormwater and service fees. All this information is translated into a $ figure increase that the average household would pay in 2020 vs 2019. This is why the % change for the actual rates as noted in Table 2 above differ from the % change for the household impact, with the later being the more relevant and informative figure for rate payers. Table 3 below summarizes the 2020 average household impact along with the forecast over 2021-2029.

Council Meeting Page 46 of 120 January 13, 2020 Table 3: 2020-2029 Estimated Average Annual City Utilities Household Impact:

Year 2019* 2020* 2021 2022 2023 2024 2025 2026 2027 2028 2029 **Average Household - Annual Impact ($) 1,065 1,107 1,152 1,196 1,242 1,292 1,344 1,393 1,441 1,491 1,541

Average Household - Annual Increase ($) 44.33 41.87 45.56 43.68 46.20 49.56 52.44 49.32 47.64 49.92 50.16

Average Household - Annual Increase (%) 4.3% 3.9% 4.1% 3.8% 3.9% 4.0% 4.1% 3.7% 3.4% 3.5% 3.4%

Notes: * 2019 - 2020 Effective rate change date of Feb 1; 2021 - 2029 Effective rate change date of Jan 1 for modelling purposes ** Average Household - Annual Impact: Based on a household consuming 17 m3 of water per month, in the Residential Medium stormwater tier, including the 15mm monthly service charge

Table 4 outlines the 2020 average annual City Utilities household cost impact split between City and Region portions.

Table 4: Breakdown of 2020 Average Annual City Utilities Household Impact:

Increase 2019 *** 2020 *** Increase over total Average Household Annual Impact ($) ($) ($) cost (%) City Utilities Rate - City Stormwater * 142.31 152.17 9.86 0.9% City Utilities Rate - City Water Service Fee ** 38.33 39.06 0.73 0.1% City Utilities Rate - City Portion **** 410.54 426.95 16.41 1.5% (Water/Sanitary) City Utilities Rate - Region Portion **** 473.63 488.50 14.87 1.4% (Water/Sanitary) TOTAL COST 1,064.81 1,106.68 41.87 3.9% * Residential Medium Tier ** 15mm Water Service Charge *** Effective date of Feb. 1 for 2019-2020 rates **** Using average consumption - 17m3/month Charts 1a and 1b provide insight into the average household water and sanitary sewer cost impacts for local area municipalities. The proposed City of Waterloo 2020 impact is provided along with other area municipalities that have publically released their proposed rates at the time of this report writing. Stormwater costs have not been included as only Kitchener and Waterloo have a stormwater utility, although a broader comparison of stormwater utilities is provided in Chart 2.

Charts 1a and 1b illustrate the following: • That there is an increasing trend in annual household water and wastewater costs for all area municipalities • City of Waterloo compares favourably against area municipalities with a proposed average annual household cost for water and sanitary sewer of $955 in 2020.

Council Meeting Page 47 of 120 January 13, 2020 Chart 1a - Average Annual Household Cost: Water & Sanitary Sewer

Chart 1b – Average Annual Household Cost: Side by Side Comparator

Council Meeting Page 48 of 120 January 13, 2020 A review of stormwater rates across Southern Ontario, outlined in Chart 2, allows for a relative comparison of annual household impact for municipalities that have dedicated stormwater rates. It should be noted that direct comparison is difficult because stormwater utilities are less defined than water and wastewater utilities and vary widely across jurisdictions depending on local characteristics and regulatory requirements. There is an increasing trend amongst municipalities to shift from tax based funding to a dedicated stormwater utility. As this trend continues it is anticipated that better local comparator data will become available.

Chart 2 - Average Annual Household Cost: Stormwater

Section 7 – Reserve Levels – Updated model

The water, sanitary sewer, and stormwater reserves fund the entire City Utilities division including the day-to-day operations, current and future capital needs (including rehabilitation & life cycle needs), and provides a stabilization measure to address revenue shortfalls while providing flexibility for Council to respond to unforeseen pressures or opportunities as they arise.

In April 2016, a rate design study was completed as referenced in IPPW2016-032 for the Water and Sanitary Sewer business units. One of the components of that review

Council Meeting Page 49 of 120 January 13, 2020 was to evaluate reserve policies and target reserve levels. The following recommendations were approved by Council on April 18, 2016:

• Distinct reserves should be established for both rate stabilization and capital works; • Rate stabilization reserves should have a minimum balance of 5% of annual operating expenditures and a target balance of 10% of annual operating expenditures; • Capital reserves should have a minimum balance of 1% of asset replacement value and a target balance of 2% of asset replacement value.

Those approved reserve levels have been incorporated into the 10 year financial model, and as per IPPW2016-032, the transition to this new reserve structure began in 2019.

The Stormwater business unit continues to operate under Council’s previously approved reserve policy, whereby the minimum approved target level for the Stormwater Reserve is $1,000,000.

A review of the rate stabilization reserves (see chart 3 below), indicate that both the Water and Sanitary Sewer rate stabilization reserves are in and around the minimum required level throughout the forecast period. Surpluses in operations over the past few years has allowed these new rate stabilization reserves to be built up to minimum levels all in 2019, versus building up over time as surpluses are encountered.

There is no dedicated rate stabilization reserve within Stormwater operations as this was not part of the Water & Sanitary Sewer Financial Plan and Rate Design Study recommendations completed back in 2016. Staff will continue to monitor best practices in the stormwater industry to manage operational risks; however stormwater revenue is very stable and less prone to external influence than Water and Sanitary Sewer revenues, thus minimizing the need for a rate stabilization reserve. Staff also recognize that the Stormwater Utility could be impacted by climate change and will include this within monitoring parameters.

Chart 3 - Rate Stabilization Reserves for Water, Sanitary Sewer

Council Meeting Page 50 of 120 January 13, 2020 A review of the capital reserves, as shown in chart 4a below, indicate that both Water and Sanitary Sewer fluctuate around the minimum level over the long term forecast period. The projected 2019 reserve levels, and short term level for sanitary sewer, are elevated as a result of some significant capital projects being deferred and re-budgeted to 2020 or onwards. The financial model and resultant rate forecasts take this into account as reserves are anticipated to drop down within target levels over the next few years.

Minimum and target capital reserve levels are based on a percentage of the total replacement cost of City Utilities overall infrastructure as follows, based on latest estimates from the City’s Asset Management system (2019 asset values):

• water distribution (including water meters) – $357 million • sanitary sewer collection (including pumping stations) - $368 million • stormwater management & ponds - $342 million

Chart 4a - Capital Reserves for Water, Sanitary Sewer

The stormwater reserve as shown in chart 4b, while quite volatile (due to a fluctuating capital program) to help absorb large rate changes, maintains a balance above the council approved minimum level over the long term forecast period. As noted earlier in section 2, debt financing is proposed in 2021 and again in 2024 to help smooth and balance rate increases through the forecast period while keeping the reserve above the minimum level. Although the shift towards a sustainable stormwater funding program has been created through significant rate increases over the past few years, staff will continue to balance the reserve level via rate increases over time, with lower annual increases forecasted by the mid-2020’s.

Council Meeting Page 51 of 120 January 13, 2020 Chart 4b - Stormwater Reserve

Chart 5 illustrates a summary of the combined reserve levels (Water, Sanitary Sewer, Stormwater) over the next ten years in dollar values compared to the Council approved policy for minimum levels and target reserve levels, as noted earlier in this section.

For illustrative purposes, over the course of the forecast period (2020-2029), the projected combined reserve levels will meet or exceed the minimum balance requirements as outlined in the Council approved reserve policies. As noted previously above, the projected 2019 reserve balance is showing an elevated level as a result of some significant capital projects being deferred and re-budgeted to 2020 or onwards. Considerable operational surpluses in the water and sanitary sewer business unit over the past few years have also contributed to higher than forecasted reserve level balances. These factors have been considered and absorbed within the 10 year rate forecast referenced in Table 1.

Chart 5 – City Utilities Combined Reserves Compared to Minimum & Target Levels:

Council Meeting Page 52 of 120 January 13, 2020 Section 8 – Fees & Charges By-Law

Appendix B outlines the 2020 City Utilities fees and charges to be incorporated into the Fees and Charges By-Law. Aside from the specific water, sanitary sewer, and stormwater rates discussed above, other City Utilities fees are increasing by approximately 2%.

The proposed 2020 fees have been taken into account and incorporated within the proposed 2020 City Utilities overall budget.

Section 9 – Advanced Metering Infrastructure (AMI) Update

9.a Background

In July of 2015, City Utilities launched a pilot project to explore the benefits of an Advanced Metering Infrastructure (AMI) system. An AMI system provides real time water reads on an hourly basis. A complete AMI system includes radio transmitters that are attached to the customers’ home or building (wired to the remote reading device), the (radio) network platform, the database hosting (server) environment, and lastly the customer website portal/interface. The transmitters relay water consumption data (water reads) through a wireless communication platform, and are ultimately received by the water utility’s database environment. Once the transfer of data is completed, there is one or more web based interfaces in order to analyze various elements of the AMI. Essentially, an AMI system provides access to real time water consumption data, and can be considered an Internet of Things (IOT) application.

In June 2017 Staff presented report IPPW2017-037 to Council that summarized findings from the pilot project. Specifically, that report provided findings in the following areas:

• the technical performance of the AMI system • the customer impact and potential benefits • the administrative and operational impact on City Utilities and Revenue services • the anticipated financial impact of a citywide implementation

It also presented several administrative and operation benefits of adopting the technology, along with a significant increase in level of service the City can provide to its customers. Some of these are noted as follows:

• automation of the meter reading process • streamlined billing process • near live water meter reads • abnormal water consumption alarms • near elimination of high water bills • customer access to water consumption trends and patterns • two way communication with water meter configurations

Council Meeting Page 53 of 120 January 13, 2020 Since the launch of the pilot project in 2015, several other area municipalities have embarked on implementing an AMI system. The City of Cambridge and Wilmot Township have recently initiated their implementations and are both utilizing the shared Sensus electric AMI network, while the City of Kitchener and Woolwich Township are currently exploring their options. Outside the Region of Waterloo, Halton Hills, St. Catharines, Barrie, and Richmond Hill are all underway with their AMI implementations. Given the clear benefits to customer service and operations, Staff feel that AMI systems are the industry trend and most water utilities already are, or will be investing in such systems within the next 5-10 years.

The pilot project report’s recommendations also instructed staff to further investigate the financial impact of a citywide implementation, along with an anticipated implementation schedule.

9.b Financial Considerations

Initial Capital Investment for Conversion:

The implementation of an AMI system to all customers would require initial capital funding to: purchase transmitters, install the transmitters, configure the City’s billing system for integration, and pay for network and web-hosting during implementation. Ongoing AMI network costs, website hosting, and future replacement cost of the transmitters would be built into the annual operating budget once implementation is completed (see further below in ‘Ongoing Operational Costs’). Table 5 provides a summary of estimated costs associated with migrating to a citywide AMI platform.

Table 5 – Summary of AMI annual costs over 4-year implementation period

INITIAL CITYWIDE CONVERSION PERIOD Implementation Year 2020 2021 2022 2023

Amount of converted Meters (%) 25% 50% 75% 100%

Total Additional City Meters on AMI * 7,800 15,600 23,400 31,200

Capital Investment & Conversion Costs WNH Access Fees $ 30,294 $ 61,800 $ 94,554 $ 128,593 Customer Website (3rd Party) plus Hosting $ 64,260 $ 65,545 $ 66,856 $ 68,193 Services Billing System Integration Fees $ 120,000 Smart Point Transmitter $ 897,000 $ 897,000 $ 897,000 $ 897,000 Installation Cost Per Smart Point unit - $ 90,000 $ 90,000 $ 90,000 $ 90,000 Completed by City Staff Additional City Utilities Resource for Project $ 80,000 $ 80,000 $ - $ - Management TOTAL ANNUAL COSTS: $1,281,554 $ 1,194,345 $ 1,148,410 $ 1,183,786

CUMMULATIVE COST $1,281,554 $ 2,475,899 $ 3,624,309 $ 4,808,095 * approximately 400 meters currently on AMI (from pilot & inaccessible locations)

Council Meeting Page 54 of 120 January 13, 2020 The single largest cost of implementing an AMI system is the purchase of AMI transmitters (at an approximate unit cost of $115). Spreading out the purchase of the transmitters over 4 years results in an annual cost of approximately $897,000. Integrating the AMI reads with the City’s billing system is a crucial step in the implementation process and will require consulting services at the onset of the project estimated at $120,000. The installation costs for the transmitters at $90,000 per year are related to additional staffing resources required in the City Utilities division over the four year implementation period (two additional seasonal employees working with an existing City Utilities operator). Along with the Waterloo North Hydro (WNH) access fees, website hosing services, and project management resourcing, this brings the total overall project budget to $4.81M (in 2019 $’s).

As part of last year’s budget process, staff submitted a capital project sheet placeholder to invest reserve funding for a citywide AMI Implementation project. The City Utilities financial model also incorporated full implementation costs into the 10-year rate forecast. Staff have updated the project sheet for the 2020 budget cycle to $4.59M of funding (as costing has been refined) to proceed with a citywide AMI implementation starting in 2020. Existing project balances for meter change outs and the AMI pilot project will also be utilized for the citywide implementation (approximately $300,000 will be utilized for AMI), bringing the total funding available to $4.89M.

Staff recommend utilizing existing reserve balances to fund a citywide AMI implementation. Significant surpluses over the past few years due to favorable seasonal conditions and other administrative updates/true ups has provided additional funding opportunities not anticipated in previous rate forecasts. Funding would be split 50/50 with the Water and Sanitary Sewer capital reserves as the AMI system would benefit the billing of both these services.

Funding from the Sanitary Sewer capital reserve ($2.3M) would fully utilize prior year surpluses, while funding from the Water capital reserve ($2.3M) would utilize prior year surpluses of $1.4M, with the remaining $0.9M of funding coming from future revenue collections. By reinvesting these recent surpluses into a citywide AMI implementation, it would help fund the initial capital outlay required to convert all city meters to the AMI platform with minimal impact on previously forecasted user rates.

Ongoing Operational Costs & Future Replacement:

A preliminary fee has been determined for access to WNH’s services. Such a fee would be charged on a per meter per month basis to the City. The fee includes services for: radio network access, database hosting services, and meter data management software. As meters are added to the AMI system, the estimated WNH access costs would increase accordingly. At the end of the four year implementation period, the WNH access fees are estimated to be approximately $129,000 per year in addition to customer website hosting services estimated to be $68,000 per year.

The primary and most direct cost savings from moving to an AMI system would be the

Council Meeting Page 55 of 120 January 13, 2020 elimination of third party meter reading costs. Currently, City Utilities utilizes a contractor to collect water reads on a bi-monthly basis, which currently averages over $140,000 per year.

Implementing an AMI system citywide would result in a nominal net increase in ongoing operational costs as noted in Table 6 below.

Table 6 – Operational Cost Estimates (current dollars)

ONGOING OPERATIONAL COST ESTIMATES No AMI With AMI Difference WNH Access Fees $0 $128,593 $128,593 Customer Website (3rd Party) plus Hosting $0 $68,193 $68,193 Services Third Party Meter Reading Costs $142,800 $0 -$142,800 $142,800 $196,786 $53,986

Once the citywide implementation is complete and all meters are on the AMI system, the ongoing financial resources needed to run and maintain the AMI system would be incorporated into the existing monthly fixed service fee. Beginning in 2024, an ongoing fee estimated to be approximately 70 cents per month ($8.40 annually) would be phased in over time to the existing service charge. A phased in approach will help smooth out the rate increase over time, with the full AMI operational and maintenance fee being incorporated by 2029. This additional fee would cover the following: - Ongoing monthly costs for access to the WNH network and customer website portal hosting fees, less cost savings realized from the elimination of manual 3rd party meter reads (as per table 6 above); approximately 14 cents per month. - Future replacement cost for AMI transmitters using an estimated useful life of 20 years, similar to that of existing water meters; approximately 56 cents per month.

As mentioned, the previous 10-year water & sanitary sewer rate forecast (as shown in last years 2019 City Utilities Rate Report) had the initial AMI implementation costs incorporated. Minor refinements to the implementation costs as well as the ongoing operating impact noted above were added into the 2020 City Utilities financial model, and associated 10-year rate forecast in this report, for Council’s consideration.

9.c Non-competitive procurement

Throughout the pilot period, the City has utilized WNH’s wireless network system. During this period, staff has investigated several AMI solutions other than WNH’s. Given the City’s inventory of Sensus meters and remote reading devices, it has become apparent that utilizing the WNH AMI system would realize significant operational efficiencies, both in the installation phase, and ongoing maintenance of the system. It is important to note that if the City is to utilize WNH’s AMI infrastructure, the City is required to continue to purchase Sensus transmitters. It is also important to understand

Council Meeting Page 56 of 120 January 13, 2020 how water meter readings are obtained and how a property is equipped with an AMI transmitter.

Referring to Figure 1, in a typical residential installation, a water meter is hardwired to a remote reading device, which is mounted on the outside of the home. The remote reading device can be accessed by City staff, or a contractor, to obtain a water read, by a handheld device. The current standard for wiring a water meter to a remote reading device is to use 3 wires, however it is important to note that only 2 wires were used for a period of time in Waterloo. It is estimated that there are approximately 10,000 properties that are currently only wired with 2 wires. This can have a significant impact on how AMI transmitters communicate with the water meter.

Currently, the City’s inventory of remote reading devices are exclusively Sensus products. This has a tremendous impact on the method of installation of the transmitters. To install an AMI transmitter, the remote reading device (depending on the make) can be installed by 1 of 2 methods:

1. Sensus AMI transmitters are designed to snap on to the Sensus remote without the removal of the remote reading device. Sensus transmitters will operate in either a 2 or 3 wire configuration. This method of installation can be completed in 2-5 minutes.

2. All other competing AMI transmitters would require the remote reading device to be removed, and the AMI transmitters would need to be hardwired, using the existing wires connected to the water meter. In situations where there are only 2 wires connecting the meter to the remote, a third wire would be required to be installed which would involve booking an appointment to access the residence / building to install a 3rd wire. This method of installation can range from 30 minutes to several hours.

Figure 1 – Residential water meter and remote device

AMI transmitter

Council Meeting Page 57 of 120 January 13, 2020 As described, the City’s current inventory of remote reading devices is exclusively Sensus based. Should council support the recommended non-competitive procurement, the installation process would consist primarily of fastening the AMI transmitter to the remote reading device. All other competing AMI transmitters would require a re-wiring installation, and possibly a re-wiring of the water meter to the outside of the home which involves booking a home appointment. Give the estimated number of 2 wire configurations (10,000), it would create a significant administrative and operational burden should another product other than the WNH / Sensus AMI system be selected.

Further to the operational advantages of the WNH / Sensus solution, there are clear benefits to utilizing the WNH network. Leveraging an existing network and infrastructure, that has the capacity to handle the entire meter inventory of the City, avoids the duplication (and costs) of owning and operating such infrastructure.

Based on the combination of operational efficiency, and the benefits of utilizing an existing network with a stable long term partnership with WNH, staff recommend the non-competitive procurement of the AMI system as used by WNH, network and database hosting services, and the corresponding purchase of AMI transmitters from Sensus. A summary of the various AMI components and the type of procurement recommended are listed in Table 7.

Table 7 – Procurement items

Procurement Item Description Procurement Type Devices that connect to the water meter and Non-competitive Radio Transmitters transmit water reads to the AMI wireless network (Sensus) Transmitter In house – City Utilities Physical installation of radio transmitters Installation operations staff Network Platform The wireless network that facilitates the transfer of Non-competitive Services data to the database environment (WNH)

Database Hosting The database environment to store, retrieve and Non-competitive Services backup water meter interval data (WNH)

Meter Data The information system that manages the Non-competitive Management System transmitter, meter, address, & notification events (WNH)

Customer Website / The website that customers access to view their Competitive tender Portal* water consumption and abnormal notifications

AMI / Billing System The consulting services required to integrate water Non-competitive Integration Services read interval data with the City's billing system

*Finance is leading the customer portal project and the RFP will be drafted according to Council’s decision on AMI implementation; funded from existing finance capital & operating dollars.

Council Meeting Page 58 of 120 January 13, 2020 Both the procurement team and the City solicitor have reviewed and confirmed the information relating to a non-competitive procurement for compliance with the Council approved Purchasing By-law (Section 14 of By-law 2019-026, Appendix C).

The customer website portal is the only competitive tender item in Table 7. The portal initiative is primarily for Waterloo citizens to view tax and water account related data, and will be initiated outside of the AMI project. However, staff are cognizant that if a citywide AMI system is approved, it would be ideal to have one portal that can display AMI data additionally, as opposed to having a separate portal.

9.d Implementation plan and key deliverables

Given the significant shift in how data is captured and utilized through an AMI system, several contractual and data integration steps need to be completed prior to the installation of AMI transmitters. Staff recommend a four-year phase in approach for the citywide implementation, starting in 2020, with a target end date of 2023. The implementation plan has many key deliverables, of which several are in advance of the physical installation of transmitters. Should council support the recommended non- competitive procurement recommendation, securing a contract with WNH and Sensus Inc. would be the first two deliverables.

Table 8 – Project Timeline

Key Project Deliverables Target Date WNH contract creation & execution December 2019 Sensus Inc contract (KTI Ltd) creation & execution December 2019 Capital project budget approval by Council February 2020 Initiate communications plan February 2020 Billing System Integration Completed April 2020 Begin AMI transmitter installations April 2020 Complete AMI transmitter installations October 2023

City staff would initiate a communications plan to notify water customers about the project and expectations around the installation process. Establishing data integration between the AMI system and the City’s billing system is required before installations begin.

The physical installation of AMI transmitters requires a coordinated and targeted approach. Staff intend to install transmitters across a single billing section at a time. Table 9 displays the number of customers (i.e. meters) for each billing section in the City (note that this includes the meters already equipped with AMI transmitters). The AMI proposed capital project has allocated money for two seasonal employees to work alongside an experienced City Utilities operator to assist with the installations. Staff feel

Council Meeting Page 59 of 120 January 13, 2020 that completing the installations with City Utility operators, in particular if home appointments are not required, is the most efficient and cost effective approach.

Table 9 – Number of customers per billing section

Billing Section Number Number of Customers Installation Year 102 7889 2020 103 4976 2021 104 2231 2021 105 437 2022 106 3588 2022 108 4365 2022 107 8105 2023 NOTE: Section 105 is not bound geographically and is a citywide section

Installing transmitters by billing section will allow the operators to install ‘door to door’ as the billing sections are geographically grouped. Appendix F provides a map of the City’s billing sections for reference. Additionally, as water meters are changed out through the normal meter replacement program, AMI transmitters can be installed at the same time to avoid a second visit.

9.e AMI Summary

The City Utilities division has investigated AMI systems for several years. Drawing upon the pilot summary council report (IPPW2017-037), the key benefits of the AMI system include: • automation of the meter reading process • streamlined billing process • near live water meter reads • abnormal water consumption alarms • near elimination of high water bills • customer access to water consumption trends and patterns • two way communication with water meter configurations

The AMI system used in the pilot proved to be a reliable and secure technology, one that has been providing WNH a stable platform to collect interval electricity consumption for several years. After reviewing the various AMI system performance statistics, staff has a high degree of confidence that the system would provide water reads in a timely and consistent manner. WNH has verified that their AMI network is capable to include all City of Waterloo water meters.

The single biggest motivator for adopting a citywide AMI system is the significant enhancement to the level of customer service City Utilities can offer. An AMI system would provide a mechanism to capture and prevent high water bill situations, eliminate final read operational support, automate the water billing process, and significantly increase water customers’ access to their individual consumption habits in real time fashion. Overall, the AMI system provides City staff, residential, landlords, and industrial

Council Meeting Page 60 of 120 January 13, 2020 / commercial customers to immediate water consumption data that can be utilized for their individual purposes.

As described in sub-section C, staff are recommending a non-competitive procurement in order to utilize the WNH / Sensus infrastructure. WNH is supportive of the partnership, and it would allow the City to avoid costly and time consuming disruptions in implementing an AMI system. Staff are proposing a 4-year phased in approach for the initial installations, and will be handling the AMI transmitter installations in house. A key project deliverable, in advance of installing transmitters, is to have the AMI database synchronized with the City of Waterloo’s billing system.

Staff are recommending that council approve a citywide AMI program to include all City Utility customers.

Section 10 – High Water Bill Adjustment Policy

In June 2019, the City adopted a high water bill adjustment policy. The primary objective of the policy was to create a transparent and equitable process to provide moderate relief for extreme high water bill situations. The council report (IPPW2019- 003) approved an annual budget of $50,000 to fund the rebates.

From June 1 2019 to November 13 2019, City Utilities received 23 applications that qualified under the policy. This resulted in a total of $9,905 in rebates, over the 6-month period. Assuming that figure would approximately double over a 12 month period, staff are confident that the policy will not require an increase in funding at this time.

Section 11 – Communication

The Municipal Act 2001 requires municipalities maintain a notice policy and the City of Waterloo Notice Policy requires public notice of fees and charges changes. Notice of the proposed rate changes was provided in the Waterloo Chronicle on November 28 & December 5, 2019 as well as January 9, 2020. Additional communications were displayed on the City’s web page and through social media.

The communication of the 2020 City Utilities Rate recommendations is consistent with municipal practice regarding user fee changes. The City of Waterloo’s normal practice of releasing rate information is to provide advertisement approximately 7 to 14 days prior to the rates being considered by Council for approval.

Information on www.waterloo.ca/water provides details of the rate increases along with information about the role the city plays in ensuring our residents receive a reliable supply of drinking water, sanitary sewer collection and protection from flooding and other forms of water-related property damage.

Council Meeting Page 61 of 120 January 13, 2020 APPENDIX A

2020 PROJECTED REVENUE AND EXPENDITURES

Council Meeting Page 62 of 120 January 13, 2020 APPENDIX B

CITY UTILITIES FEES & CHARGES

IPPW – City Utilities Schedule "A" to Fees and Charges By-law:

WATER AND SANITARY SEWER Effe ctive Effe ctive Effe ctive Effe ctive Water Rate Fee Date of Fee % Inc. Fee Date of Fee % Inc. Fee Date of Fee % Inc. Fee Date of Fee % Inc. (per cubic metre) $ 1.90 1-Feb-2019 6.1% $ 1.97 1-Feb-2020 3.7% $ 2.04 1-Jan-2021 3.6% $ 2.12 1-Jan-2022 3.9% Sanitary Sewer Rate (per cubic metre) $ 2.45 1-Feb-2019 3.4% $ 2.53 1-Feb-2020 3.3% $ 2.61 1-Jan-2021 3.2% $ 2.70 1-Jan-2022 3.4%

Service Charges Fire Protection Charge (large commercial accounts) $ 22.65 1-Feb-2019 2.2% $ 23.10 1-Feb-2020 2.0% $ 23.60 1-Jan-2021 2.2% $ 24.10 1-Jan-2022 2.1% 15mm Meter - Service Charge (single family residential accounts) $ 3.20 1-Feb-2019 2.2% $ 3.26 1-Feb-2020 1.9% $ 3.33 1-Jan-2021 2.1% $ 3.40 1-Jan-2022 2.1% 25mm Meter - Service Charge (small apartments, i.e. Triplex accounts) $ 6.45 1-Feb-2019 2.1% $ 6.60 1-Feb-2020 2.3% $ 6.70 1-Jan-2021 1.5% $ 6.83 1-Jan-2022 1.9% 40mm Meter - Service Charge (small commercial, industrial accounts) $ 11.80 1-Feb-2019 2.1% $ 12.00 1-Feb-2020 1.7% $ 12.24 1-Jan-2021 2.0% $ 12.50 1-Jan-2022 2.1% 50mm Meter - Service Charge (large commercial, industrial accounts) $ 14.80 1-Feb-2019 2.2% $ 15.10 1-Feb-2020 2.0% $ 15.40 1-Jan-2021 2.0% $ 15.70 1-Jan-2022 1.9% 75mm Meter - Service Charge (large commercial, industrial accounts) $ 30.90 1-Feb-2019 2.1% $ 31.50 1-Feb-2020 1.9% $ 32.10 1-Jan-2021 1.9% $ 32.70 1-Jan-2022 1.9% 100mm Meter - Service Charge (large commercial, industrial accounts) $ 45.25 1-Feb-2019 2.2% $ 46.20 1-Feb-2020 2.1% $ 47.10 1-Jan-2021 1.9% $ 48.00 1-Jan-2022 1.9% 150mm Meter - Service Charge (large commercial, industrial accounts) $ 77.00 1-Feb-2019 2.3% $ 78.50 1-Feb-2020 1.9% $ 80.10 1-Jan-2021 2.0% $ 81.70 1-Jan-2022 2.0% 200mm Meter - Service Charge (large commercial, industrial accounts) $ 116.00 1-Feb-2019 2.1% $ 118.30 1-Feb-2020 2.0% $ 120.70 1-Jan-2021 2.0% $ 123.10 1-Jan-2022 2.0% 250mm Meter - Service Charge (large commercial, industrial accounts) $ 154.50 1-Feb-2019 2.2% $ 157.60 1-Feb-2020 2.0% $ 160.80 1-Jan-2021 2.0% $ 164.00 1-Jan-2022 2.0% Meter Pit Charge $ 39.50 1-Feb-2019 2.3% $ 40.30 1-Feb-2020 2.0% $ 41.10 1-Jan-2021 2.0% $ 41.90 1-Jan-2022 1.9% Water Meters Water Meter Accuracy Deposit $ 163.00 1-Feb-2019 1.9% $ 166.50 1-Feb-2020 2.1% $ 170.00 1-Jan-2021 2.1% $ 173.25 1-Jan-2022 1.9% Water Meter Replacement Fee-(Damaged, Frozen or Missing) + Meter Cost $ 79.25 1-Feb-2019 2.2% $ 80.75 1-Feb-2020 1.9% $ 82.50 1-Jan-2021 2.2% $ 84.25 1-Jan-2022 2.1% Remote/Mounting Bracket Assembly $ 42.00 1-Feb-2019 2.2% $ 42.75 1-Feb-2020 1.8% $ 43.50 1-Jan-2021 1.8% $ 44.50 1-Jan-2022 2.3% Tail Piece Replacement $ 21.00 1-Feb-2019 2.3% $ 21.50 1-Feb-2020 2.4% $ 22.00 1-Jan-2021 2.3% $ 22.50 1-Jan-2022 2.3% Remote Re-wiring $ 168.00 1-Feb-2019 2.1% $ 171.50 1-Feb-2020 2.1% $ 175.00 1-Jan-2021 2.0% $ 178.50 1-Jan-2022 2.0% 15mm Meter Kit (complete) $ 178.00 1-Feb-2019 2.3% $ 181.50 1-Feb-2020 2.0% $ 185.00 1-Jan-2021 1.9% $ 188.75 1-Jan-2022 2.0% Verification Administration $ 42.00 1-Feb-2019 2.2% $ 42.75 1-Feb-2020 1.8% $ 43.50 1-Jan-2021 1.8% $ 44.50 1-Jan-2022 2.3% Miscellaneous Minor Repairs (per hour) $ 84.00 1-Feb-2019 2.1% $ 85.75 1-Feb-2020 2.1% $ 87.50 1-Jan-2021 2.0% $ 89.25 1-Jan-2022 2.0% Security Tag Replacement $ 69.75 1-Feb-2019 2.3% $ 71.25 1-Feb-2020 2.2% $ 72.75 1-Jan-2021 2.1% $ 74.25 1-Jan-2022 2.1% Water Meters - New 15 mm $ 116.00 1-Feb-2019 2.3% $ 118.00 1-Feb-2020 1.7% $ 120.50 1-Jan-2021 2.1% $ 123.00 1-Jan-2022 2.1% 25 mm $ 216.00 1-Feb-2019 2.1% $ 220.00 1-Feb-2020 1.9% $ 224.00 1-Jan-2021 1.8% $ 228.50 1-Jan-2022 2.0% 40 mm $ 645.00 1-Feb-2019 2.2% $ 658.00 1-Feb-2020 2.0% $ 671.00 1-Jan-2021 2.0% $ 684.00 1-Jan-2022 1.9% 50 mm $ 775.00 1-Feb-2019 2.2% $ 791.00 1-Feb-2020 2.1% $ 807.00 1-Jan-2021 2.0% $ 823.00 1-Jan-2022 2.0% 75 mm $ 2,383.00 1-Feb-2019 2.2% $ 2,431.00 1-Feb-2020 2.0% $ 2,480.00 1-Jan-2021 2.0% $ 2,530.00 1-Jan-2022 2.0% 100 mm compound $ 4,038.00 1-Feb-2019 2.2% $ 4,119.00 1-Feb-2020 2.0% $ 4,201.00 1-Jan-2021 2.0% $ 4,285.00 1-Jan-2022 2.0% 100 mm fire rated $ 8,987.00 1-Feb-2019 2.2% $ 9,167.00 1-Feb-2020 2.0% $ 9,350.00 1-Jan-2021 2.0% $ 9,537.00 1-Jan-2022 2.0% 150 mm compound $ 6,870.00 1-Feb-2019 2.2% $ 7,007.00 1-Feb-2020 2.0% $ 7,147.00 1-Jan-2021 2.0% $ 7,290.00 1-Jan-2022 2.0% 150 mm fire rated $ 11,982.00 1-Feb-2019 2.2% $ 12,222.00 1-Feb-2020 2.0% $ 12,466.00 1-Jan-2021 2.0% $ 12,715.00 1-Jan-2022 2.0% 200 mm compound $ 11,071.00 1-Feb-2019 2.2% $ 11,292.00 1-Feb-2020 2.0% $ 11,518.00 1-Jan-2021 2.0% $ 11,748.00 1-Jan-2022 2.0% 200 mm fire rated $ 18,234.00 1-Feb-2019 2.2% $ 18,599.00 1-Feb-2020 2.0% $ 18,971.00 1-Jan-2021 2.0% $ 19,350.00 1-Jan-2022 2.0% 250 mm compound $ 14,327.00 1-Feb-2019 2.2% $ 14,614.00 1-Feb-2020 2.0% $ 14,906.00 1-Jan-2021 2.0% $ 15,204.00 1-Jan-2022 2.0% 250 mm fire rated $ 25,606.00 1-Feb-2019 2.2% $ 26,118.00 1-Feb-2020 2.0% $ 26,640.00 1-Jan-2021 2.0% $ 27,173.00 1-Jan-2022 2.0%

Council Meeting Page 63 of 120 January 13, 2020 Effe ctive Effe ctive Effe ctive Effe ctive Service Line (water) Fee % Inc. Fee % Inc. Fee % Inc. Fee % Inc. Date of Fee Date of Fee Date of Fee Date of Fee Building Water Fee $ 74.75 1-Feb-2019 2.2% $ 76.25 1-Feb-2020 2.0% $ 77.75 1-Jan-2021 2.0% $ 79.25 1-Jan-2022 1.9% Alteration to the Drinking Water System Review Fee (Form#1) $ 561.00 1-Feb-2019 2.2% $ 572.00 1-Feb-2020 2.0% $ 583.00 1-Jan-2021 1.9% $ 595.00 1-Jan-2022 2.1% Frozen Line - on customer side of curb stop (1st time free) Time, n/a Time, n/a Time, n/a Time, n/a Material, Material, Material, Material, Frozen Line - on customer side of meter 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Equipment & Equipment & Equipment & Equipment & Water Box Adjustments by hand (less than 1 metre) Administration n/a Administration n/a Administration n/a Administration n/a Water Frontage Charge (per linear metre) $ 54.00 1-Feb-2019 1.9% $ 55.00 1-Feb-2020 1.9% $ 56.00 1-Jan-2021 1.8% $ 57.00 1-Jan-2022 1.8% Service Line (sanitary sewer) Blocked Lateral Time, n/a Time, n/a Time, n/a Time, n/a Material, Material, Material, Material, Flushing 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Equipment & Equipment & Equipment & Equipment & Camera Inspection Administration n/a Administration n/a Administration n/a Administration n/a Sanitary Sewer Frontage Charge (per linear metre) $ 64.00 1-Feb-2019 1.6% $ 65.25 1-Feb-2020 2.0% $ 66.50 1-Jan-2021 1.9% $ 67.75 1-Jan-2022 1.9% Main Line (water) New Subdivision Service call Time, n/a Time, n/a Time, n/a Time, n/a Material, Material, Material, Material, Valve Box Adjustments (less than 300 mm) 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Equipment & Equipment & Equipment & Equipment & Hydrant Adjustment (less than or equal to 150 mm) Administration n/a Administration n/a Administration n/a Administration n/a Hydrant Inspection (no parts) $ 113.00 1-Feb-2019 1.8% $ 115.25 1-Feb-2020 2.0% $ 117.75 1-Jan-2021 2.2% $ 120.00 1-Jan-2022 1.9% Main Line (sanitary sewer) Time, Time, Time, Time, Flushing n/a n/a n/a n/a Material, Material, Material, Material, 1-Feb-2019 1-Feb-2020 1-Jan-2021 1-Jan-2022 Equipment & Equipment & Equipment & Equipment & Camera Inspection n/a n/a n/a n/a Administration Administration Administration Administration Miscellaneous - Others Water Meter Access Fee (per Meter) $ 30.75 1-Feb-2019 2.5% $ 31.25 1-Feb-2020 1.6% $ 31.75 1-Jan-2021 1.6% $ 32.50 1-Jan-2022 2.4% Regional Regional Regional Regional Non-Potable Water Wholesale 1-Feb-2019 n/a Wholesale 1-Feb-2020 n/a Wholesale 1-Jan-2021 n/a Wholesale 1-Jan-2022 n/a Rate Rate Rate Rate Hydrant - Use Permit $ 83.00 1-Feb-2019 2.5% $ 84.75 1-Feb-2020 2.1% $ 86.50 1-Jan-2021 2.1% $ 88.25 1-Jan-2022 2.0% Time and Material Work Order Time, n/a Time, n/a Time, n/a Time, n/a Material, Material, Material, Material, Vacuum Excavation 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Equipment & Equipment & Equipment & Equipment & Vacuum Excavation with Canister Shoring System Administration n/a Administration n/a Administration n/a Administration n/a Minimum Service Call Charge $ 83.00 1-Feb-2019 2.5% $ 84.75 1-Feb-2020 2.1% $ 86.50 1-Jan-2021 2.1% $ 88.25 1-Jan-2022 2.0%

Effe ctive Effe ctive Effe ctive Effe ctive Backflow Prevention Fees Fee Date of Fee % Inc. Fee Date of Fee % Inc. Fee Date of Fee % Inc. Fee Date of Fee % Inc. Backflow Prevention Device Permit Fee with Survey (Fee includes a review of the survey and inspecting up to three (3) backflow prevention devices; excludes $ 261.00 1-Feb-2019 2.4% $ 266.00 1-Feb-2020 1.9% $ 271.00 1-Jan-2021 1.9% $ 276.00 1-Jan-2022 1.8% Test Report Fee and Test Tag) Test Report Fee (Fee to review Test Report submitted by the Due Date) per $ 25.00 1-Feb-2019 0.0% $ 25.50 1-Feb-2020 2.0% $ 26.00 1-Jan-2021 2.0% $ 26.50 1-Jan-2022 1.9% backflow prevention device Late Test Report Fee (Fee to review Test Report submitted after the Due Date) $ 50.00 1-Feb-2019 n/a $ 51.00 1-Feb-2020 2.0% $ 52.00 1-Jan-2021 2.0% $ 53.00 1-Jan-2022 1.9% per backflow prevention device Additional Backflow Prevention Device Permit Fee (Fee in addition to 'Backflow Prevention Device Permit Fee with Survey' if there are more than three (3) $ 76.00 1-Feb-2019 1.3% $ 77.75 1-Feb-2020 2.3% $ 79.25 1-Jan-2021 1.9% $ 80.75 1-Jan-2022 1.9% backflow prevention devices; amount includes Test Report Fee and Test Tag) per backflow prevention device Backflow Prevention Device Permit Fee without Survey (amount includes Test $ 76.00 1-Feb-2019 1.3% $ 77.75 1-Feb-2020 2.3% $ 79.25 1-Jan-2021 1.9% $ 80.75 1-Jan-2022 1.9% Report Fee and Test Tag) per backflow prevention device Installation of Backflow Device Prior to Issuance of a Permit $ 110.00 1-Feb-2019 2.8% $ 112.00 1-Feb-2020 1.8% $ 114.00 1-Jan-2021 1.8% $ 116.00 1-Jan-2022 1.8% Test Tags (amount per tag) $ 2.00 1-Feb-2019 0.0% $ 2.25 1-Feb-2020 12.5% $ 2.25 1-Jan-2021 0.0% $ 2.25 1-Jan-2022 0.0%

Council Meeting Page 64 of 120 January 13, 2020 CITY UTILITIES - Stormwater Rates

2019 2020 2021 2022 Prope rty Effe ctive Effe ctive Effe ctive Effe ctive Rate Tier Prope rty Size Range Monthly % Inc. Monthly % Inc. Monthly % Inc. Monthly % Inc. Type Date of Fee Date of Fee Date of Fee Date of Fee Rate Rate Rate Rate

Total property area less than or equal to 405 m2 (0.1 Residential Small $ 7.94 1-Feb-2019 6.4%$ 8.50 1-Feb-2020 7.1%$ 9.10 1-Jan-2021 7.1%$ 9.55 1-Jan-2022 4.9% acre s) Total property area greater than 405 m2 (0.1 acres) Residential Residential Medium $ 11.92 1-Feb-2019 6.5%$ 12.75 1-Feb-2020 7.0%$ 13.64 1-Jan-2021 7.0%$ 14.32 1-Jan-2022 5.0% and less than or equal to 1012 m2 (0.25 acres)

Residential Large Total property area greater than 1012 m2 (0.25 acres) $ 18.61 1-Feb-2019 0.0%$ 18.61 1-Feb-2020 0.0%$ 18.61 1-Jan-2021 0.0%$ 19.54 1-Jan-2022 5.0%

Total property area less than or equal to 1012 m2 Multi-Residential Small $ 22.81 1-Feb-2019 6.5%$ 24.41 1-Feb-2020 7.0%$ 26.12 1-Jan-2021 7.0%$ 27.43 1-Jan-2022 5.0% (0.25 acres) Multi- Total property area greater than 1012 m2 (0.25 Multi-Residential Medium $ 96.53 1-Feb-2019 6.5%$ 103.29 1-Feb-2020 7.0%$ 110.52 1-Jan-2021 7.0%$ 116.05 1-Jan-2022 5.0% Residential acres) and less than or equal to 4046 m2 (1 acre )

Multi-Residential Large Total property area greater than 4046 m2 (1 acre ) $ 514.36 1-Feb-2019 6.5%$ 550.37 1-Feb-2020 7.0%$ 588.90 1-Jan-2021 7.0%$ 618.35 1-Jan-2022 5.0%

Total property area less than or equal to 8094 m2 (2 Institutional Small $ 36.98 1-Feb-2019 6.5%$ 39.57 1-Feb-2020 7.0%$ 42.34 1-Jan-2021 7.0%$ 44.46 1-Jan-2022 5.0% acre s) Total property area greater than 8094 m2 (2 acres) Institutional Institutional Medium $ 99.93 1-Feb-2019 6.5%$ 106.93 1-Feb-2020 7.0%$ 114.42 1-Jan-2021 7.0%$ 120.14 1-Jan-2022 5.0% and less than or equal to 40469 m2 (10 acres)

Institutional Large Total property area greater than 40469 m2 (10 acres) $ 204.63 1-Feb-2019 6.5%$ 218.95 1-Feb-2020 7.0%$ 234.28 1-Jan-2021 7.0%$ 245.99 1-Jan-2022 5.0%

Total property area less than or equal to 2023 m2 (0.5 Commercial/Industrial Small $ 30.60 1-Feb-2019 6.5%$ 32.74 1-Feb-2020 7.0%$ 35.03 1-Jan-2021 7.0%$ 36.78 1-Jan-2022 5.0% acre s) Total property area greater than 2023 m2 (0.5 acres) Commercial/Industrial Medium $ 142.89 1-Feb-2019 6.5%$ 152.89 1-Feb-2020 7.0%$ 163.59 1-Jan-2021 7.0%$ 171.77 1-Jan-2022 5.0% Commercial/ and less than or equal to 10117 m2 (2.5 acres) Industrial Total property area greater than 10117 m2 (2.5 acres) Commercial/Industrial Large $ 460.46 1-Feb-2019 6.5%$ 492.69 1-Feb-2020 7.0%$ 527.18 1-Jan-2021 7.0%$ 553.54 1-Jan-2022 5.0% and less than or equal to 40469 m2 (10 acres)

Commercial/Industrial Largest Total property area greater than 40469 m2 (10 acres) $ 1,166.31 1-Feb-2019 6.5%$ 1,247.95 1-Feb-2020 7.0%$ 1,335.31 1-Jan-2021 7.0%$ 1,402.08 1-Jan-2022 5.0%

Effe ctive Effe ctive Effe ctive Effe ctive Fee % Inc. Fee % Inc. Fee % Inc. Fee % Inc. Date of Fee Date of Fee Date of Fee Date of Fee Stormwater Management Credit Program - Fees Application Fee - Non-residential / Multi-residential n/a 1-Feb-2019 n/a n/a 1-Feb-2020 n/a n/a 1-Jan-2021 n/a n/a 1-Jan-2022 n/a Administrative Fee - Residential $ 77.00 1-Feb-2019 1.3% $ 78.50 1-Feb-2020 1.9% $ 80.00 1-Jan-2021 1.9% $ 81.75 1-Jan-2022 2.2% Administrative Fee - Non-Residential / Multi-residential $ 154.00 1-Feb-2019 1.3% $ 157.00 1-Feb-2020 1.9% $ 160.00 1-Jan-2021 1.9% $ 163.50 1-Jan-2022 2.2% Note: Please see Stormwater Bylaw for Credit Program.

Council Meeting Page 65 of 120 January 13, 2020 CITY UTILITIES - Stormwater Management & Construction Effe ctive Effe ctive Effe ctive Effe ctive Cleaning Fee Date of Fee % Inc. Fee Date of Fee % Inc. Fee Date of Fee % Inc. Fee Date of Fee % Inc. Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Machine Sweeping & Administration & Administration & Administration & Administration Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Loader Scraping & Administration & Administration & Administration & Administration Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Flushing Storm Lines & Administration & Administration & Administration & Administration Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Catchbasin Cleaning with Eductor & Administration & Administration & Administration & Administration

Other Services Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Stormwater Management Pond Cleaning & Administration & Administration & Administration & Administration Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Silt Fence Repair or Installation & Administration & Administration & Administration & Administration Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Debris Pick-up, Hand Sweeping or Cleaning & Administration & Administration & Administration & Administration Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Graffiti Removal & Administration & Administration & Administration & Administration Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Fence Repair & Administration & Administration & Administration & Administration Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment Time, Material, Equipment 1-Feb-2019 n/a 1-Feb-2020 n/a 1-Jan-2021 n/a 1-Jan-2022 n/a Spill Clean-up & Administration & Administration & Administration & Administration

Council Meeting Page 66 of 120 January 13, 2020 APPENDIX C

Approval of Request for Non-Competitive Procurement

Council Meeting Page 67 of 120 January 13, 2020 APPENDIX D

Sensus Proprietary Letter

Council Meeting Page 68 of 120 January 13, 2020 APPENDIX E

Waterloo North Hydro Letter of Support

Council Meeting Page 69 of 120 January 13, 2020 APPENDIX F

Map of Billing Sections

Council Meeting Page 70 of 120 January 13, 2020 STAFF REPORT Legislative Services

Title: Beechwood West #1 Homes Association Inc. Special Service/Area Levy Vote Results Report Number: CORP2020-002 Author: Julie Scott Meeting Type: Council Meeting Council/Committee Date: January 13, 2020 File: N/A Attachments: A: Draft Lease and Licence Agreement including property list Ward No.: Ward 1

Recommendation:

1. That CORP2020-002 be approved. 2. That Council approve the implementation of a Special Service/Area Levy for the properties listed in Schedule A as being in the geographic area of the Beechwood West #1 Homes Association Inc. for the levy year beginning in 2020. 3. That Council authorize the Mayor and City Clerk to sign a Licence and Operating Agreement and Lease Agreement with the Beechwood West #1 Homes Association Inc. and any other related agreements subject to the approval of the City Solicitor.

A. Executive Summary

On June 20, 2019, the City received a complete application from the Beechwood West #1 Homes Association Inc. to initiate a special service/area levy (SSAL) vote process.

Voting began on November 4, 2019 and was scheduled to conclude on December 2, 2019, however this was extended to January 6, 2020 due to a postal error.

The mail in ballot process received a 87% voter turnout with 89% of ballots cast in support of the implementation of a special service/area levy.

This report provides Council with the official vote results and recommends Council enter into the necessary agreements to implement a SSAL for the provision of recreation services in the geographic area known as Beechwood West #1 Homes Association Inc. beginning in 2020.

Council Meeting Page 71 of 120 January 13, 2020 B. Financial Implications

The Beechwood West #1 Homes Association Inc. is responsible for all out of pocket costs and expenditures for implementing the SSAL and on and ongoing basis, will pay an amount equal to 1% of the balance of its budget as an administrative fee to reimburse the City of Waterloo for its annual internal and external costs of implementing the special service/area levy.

A SSAL By-Law would provide a tax levy that is calculated and based on the first $100,000 of assessment for real property. All households within the geographic boundary of the Beechwood West #1 Homes Association Inc. would pay the same amount of tax for recreational facilities.

By imposing a tax levy, the City is collecting Beechwood West #1 Homes Association Inc.’s budget for operating and maintenance of the facility and their required HST remittance to the Government of Canada.

C. Technology Implications There are no technology implications.

E. Link to Strategic Plan (Strategic Objectives: Equity, Inclusion and a Sense of Belonging; Sustainability and the Environment; Safe, Sustainable Transportation; Healthy Community & Resilient Neighbourhoods; Infrastructure Renewal; Economic Growth & Development)

(Guiding Principles: Equity and Inclusion; Sustainability; Fiscal Responsibility; Healthy and Safe Workplace; Effective Engagement; Personal Leadership; Service Excellence)

The creation of this policy provides a clear and transparent framework for processing relevant special service levies and helps to meet the goal of a strong community.

F. Previous Reports on this Topic CORP2019-083 – Beechwood West #1 Homes Association Inc. Vote (November 18, 2019)

G. Approvals

Name Signature Date Author: Julie Scott Director: Olga Smith Commissioner: Finance: CAO

Council Meeting Page 72 of 120 January 13, 2020

Beechwood West #1 Homes Association Inc. Special Service/Area Levy Vote Results CORP2020-002

On June 20, 2019, staff received a complete application package from the Beechwood West #1 Homes Association Inc. requesting the City initiate the Special Service/Area Levy (SSAL) vote process with the supporting petition of approximately 86% of property owners.

On September 6, 2019, registered property owners of the geographic boundary of the Association were mailed a package that included the following:

• Timeline for key actions regarding the SSAL vote • Draft Lease and Licence Agreement • Voting Rules & Procedures • Proxy Form • Special Service/Area Levy Implementation Policy • Property Information Sheet showing current information on record regarding property ownership

Council received Report CORP2019-083 at the public meeting held on November 18, 2019, which provided an overview of the vote process and an opportunity for members of the public to speak for or against the implementation of a SSAL.

Voting was scheduled to begin on November 4, 2019 and conclude on December 2, 2019. However, on November 29th Canada Post advised us that the incorrect postage was applied to the return envelope for voting. Some ballot envelopes were arriving despite insufficient postage, however staff were advised that some were delayed and delivery was not guaranteed.

Therefore voting was extended until 4:30 p.m., January 6, 2020 and all properties that had not returned a ballot kit were issued a replacement ballot hand delivered by staff on December 6, 2019. One ballot was received during the initial vote window without the declaration form, which would have been considered a spoiled ballot and could not be counted however, that address received a replacement ballot kit and therefore had another opportunity to vote.

Ballots were opened at 10:00 a.m. on January 7, 2020.

The following are the results of the vote by mail process:

Council Meeting Page 73 of 120 January 13, 2020

Total Vote by Mail packages returned: 213 of 245 or 87%

Total Ballots in Support of the SSAL: 190 or 89.2% of the ballots cast. 77.5% of eligible properties

Total Ballots against the SSAL: 21 or 9.8% of the ballots cast, 8.5% of eligible properties

Total Spoiled Ballots: 2 or 0.9% of the ballots cast, 0.8% of eligible properties

Corporate Policy A-031 requires positive support from at least 66% of ballots cast to bring forward the staff report and required agreements to enter into a SSAL. This vote exceeded that threshold and staff recommends entering into the agreements to begin the SSAL for the Beechwood West #1 Homes Association Inc. beginning with the 2020 levy year.

Council Meeting Page 74 of 120 January 13, 2020 THIS LEASE made as of the ______day of ______, 2020.

B E T W E E N:

THE CORPORATION OF THE CITY OF WATERLOO

(hereinafter called “Waterloo”) OF THE FIRST PART

- and -

BEECHWOOD WEST #1 HOMES ASSOCIATION INC.

(hereinafter called the “Association”) OF THE SECOND PART.

WHEREAS the Association owns those lands with a municipal address of 139 Sandford Fleming Drive, in the City of Waterloo, Ontario, more adequately described in Schedule “A”, having an area of 0.9 acres (the “Premises”);

AND WHEREAS the Association was incorporated on October 7, 1980 for the purposes of, among other matters, promoting the interests and construct facilities advantageous to persons, firms or corporations owning property in the Beechwood West #1 Homes Association Inc, and to acquire, by purchase, lease or otherwise any real or personal property which may be used for the advancement of any plans for the advantage of said residents;

AND WHEREAS the Association, by way of a licence and operating agreement executed as of the same date as this Lease Agreement and attached as Schedule “B” hereto (the “Licence and Operating Agreement”), has agreed to use, care for, maintain and operate the Premises and the recreational programs provided at the Premises on the terms and conditions set out therein.

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual covenants herein contained and for Two Dollars ($2.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Lease of Premises

1. The Association hereby leases the Premises to the City on the terms and conditions set out herein. The rights and obligations of the parties as set out in this Agreement shall be read and interpreted in conjunction the rights of the parties as set out in the Licence and Operating Agreement.

Term

2. The term of this Lease Agreement shall be five (5) years, commencing on the __ day of ______, 2020 and expiring on the ___ day of ______, 2025. Renewal

Council Meeting Page 75 of 120 January 13, 2020 3. The Lease shall renew for three (3) renewal periods to extend the term of this license for periods of five (5) years each (the “First Renewal Period”, the “Second Renewal Period” and the “Third Renewal Period”, collectively referred to as the “Renewal Periods”) under the same terms and conditions, including any personal rights and excluding further rights of extension. The parties agrees to provide a minimum of twelve (12) months prior written notice to the other parties in each case if it intends to not exercise its option to extend or its intention to negotiate the terms of this lease. The First Renewal Period shall commence immediately upon the expiration of the Term and the Second Renewal Period shall commence immediately upon expiration of the First Renewal Period and the Third Renewal Period shall commence immediately upon the expiration of the Second Renewal Period.

Rent

4. Waterloo shall pay unto the Association One Dollar ($1.00) per annum for each of the years of the term and the Renewal Periods stated herein. The Association hereby acknowledges the receipt and sufficiency of Waterloo’s advance payment of rent for the entire term. Waterloo shall not be responsible for any other costs related to the Premises of any nature or kind whatsoever, including without limitation capital repair costs, utility costs, maintenance costs or taxes.

Taxes

5. The Association shall be fully responsible for paying all municipal taxes and other amounts assessed or levied against the Premises, subject to any usual rights of appeal or redress, and shall pay all such amounts when due.

Licence and Operating Agreement

6. Waterloo and the Association acknowledge and agree that they have concurrent with the execution of this Lease Agreement, entered into the Licence and Operating Agreement. The terms of the Licence and Operating Agreement are hereby incorporated in this Agreement by reference and a default by either party under the Licence and Operating Agreement shall constitute an event of default under this Lease Agreement.

Rights of Termination

7. This Agreement may be terminated by either party without cause upon giving twelve (12) months’ written notice to the other party. This Agreement shall also be deemed to be terminated if the Licence and Operating Agreement is terminated. The termination of this Agreement by the City or the Association shall not release either party from any of its obligations hereunder during the period up to the effective date of termination.

Insurance Requirements

8. The Association shall throughout the term of this Agreement provide and keep in force general liability insurance in an amount, not less than five million ($5,000,000.00) dollars in a form and content that is satisfactory to the Waterloo and shall provide the Waterloo

Council Meeting Page 76 of 120 January 13, 2020 with proof thereof. The policy of insurance shall name Waterloo as an additional insured.

Indemnity

9. The Association hereby agrees to indemnify and hold harmless Waterloo against any and all liability, claims, actions, judgments, damages or expenses (including legal expenses) and, without limiting the generality of the foregoing, all claims for personal injury, death and/or property damage caused by any act or omission of the Association, those for whom it is responsible at law or its contractors, subcontractors or invitees (excluding Waterloo and its subcontractors), arising from the use by the Association of the Premises or from the exercise by the Association of any rights granted pursuant to this Agreement.

Notices

10. Any notice to the Association shall be deemed to be adequately given if served personally on any one of the officers of the Association or if sent by courier or mailed by prepaid registered mail addressed to the Association at: Beechwood West #1 Homes Association Inc. 139 Sandford Fleming Drive Waterloo, ON N2T 1E1 Attn: President

or to such other postal address as the Association may advise Waterloo from time to time. The Association shall confirm the currency of this information on an annual basis when it forwards its budget proposal to the City of Waterloo.

Any notice to Waterloo shall be deemed to be adequately given if served personally on the Clerk of the City of Waterloo or if sent by courier or mailed by prepaid registered mail addressed to: Clerk of the City of Waterloo City of Waterloo 100 Regina St S. PO Box 337, Station Waterloo Waterloo ON N2J 4A8

Notice shall deemed to be effective on the day that it is personally served or three (3) business days following the date that is sent by mail or courier.

No waiver of default

11. No condoning or delay by either party in respect of any default, breach or non-observance by the other party of any covenant in this Agreement operates as a waiver of the party's rights under this Agreement.

Entire agreement

12. There are no covenants, representations, warranties, agreements or conditions, express or implied, collateral or otherwise, forming part of or in any way affecting this Agreement.

Council Meeting Page 77 of 120 January 13, 2020 Registration 13. Waterloo may register notice of this Agreement against title to the Premises at the expense of the Association and the Association shall obtain any postponements or other documentation required by Waterloo in order to permit this Agreement to obtain first priority in respect thereof.

Severability

14. If any clause or parts thereof in this Agreement be unenforceable they shall be considered separate and severable from the Agreement and the remaining provisions of the Agreement shall remain in full force and effect.

Successors and Non-Assignment

15. Neither party may transfer, assign, sub-license, encumber or in any way deal with or part with the whole or any part of the Premises to anyone during any part of the term without written consent first being obtained from the other party. This Agreement shall enure to and be binding upon the parties hereto and their respective successors and may not be assigned by either party without the prior written approval of the other party.

IN WITNESS WHEREOF the parties hereto have executed this Agreement under the hands of their duly authorized signing officers.

THE CORPORATION OF THE CITY OF WATERLOO

______Dave Jaworsky, Mayor

______Olga Smith, City Clerk

BEECHWOOD WEST #1 HOMES ASSOCIATION INC.

Per:______Name: Title:

Per:______Name: Title We have authority to bind the Corporation.

Council Meeting Page 78 of 120 January 13, 2020 SCHEDULE “A”

THE LEGAL DESCRIPTION OF THE PREMISES

Legal Description: Block 160, Plan 1479 City of Waterloo S/T 670577; Waterloo

PIN: 226850137

Council Meeting Page 79 of 120 January 13, 2020 SCHEDULE “B”

LICENCE AND OPERATING AGREEMENT

Hereafter attached the Licence and Operating Agreement, referred to in Paragraph 6 of the above Lease Agreement.

Council Meeting Page 80 of 120 January 13, 2020 THIS LICENCE AND OPERATING AGREEMENT made this ___ day of ______, 2020.

B E T W E E N:

THE CORPORATION OF THE CITY OF WATERLOO

(hereinafter called “Waterloo”) OF THE FIRST PART

- and-

BEECHWOOD WEST #1 HOMES ASSOCIATION INC.

(hereinafter called the “Association”) OF THE SECOND PART.

WHEREAS the Association owns those lands legally described as Block 160, Registered Plan No. 1479, City of Waterloo, S/T 670577; Waterloo, municipally known as 139 Sandford Fleming Drive and having an area of .9 acres (the “Premises”);

AND WHEREAS the Association is a corporation established by Letters Patent No. 453436 on October 7, 1980 for the purposes of, among other matters, promoting the interests and construct facilities advantageous to persons, firms or corporations owning property in the Beechwood West #1 Homes Association Inc, and to acquire, by purchase, lease or otherwise any real or personal property which may be used for the advancement of any plans for the advantage of said residents;

AND WHEREAS the owners from time to time of those properties listed in Schedule “A” attached hereto are the members of the Association (the “Members”);

AND WHEREAS the Association, by way of a lease agreement executed as of the same date as this License Agreement, has leased the Premises to Waterloo for a term of twenty (20) years, which term shall run concurrently with the terms of this License Agreement;

AND WHEREAS the Association has requested that Waterloo utilize its authority under Section 326 of the Municipal Act 2001, S.O. 2001, c. 25, as amended, to establish a special local municipality levy to recover against the Members of the Association the costs of maintaining and providing the recreational facilities and programs at the Premises for the Members;

AND WHEREAS Waterloo wishes to grant a license to the Association to use, care for, maintain and operate the Premises on the terms and conditions set out herein.

Council Meeting Page 81 of 120 January 13, 2020 License of Premises

1. Waterloo hereby licenses to the Association for its exclusive use and quiet enjoyment the Premises in accordance with the terms and conditions set out in this License and Operating Agreement. Waterloo shall not grant any other rights or licences for the use of the Premises during the term of this Agreement.

Use of Premises

2. The Premises shall be used by the Association only for the purposes providing swimming, tennis and other recreational opportunities to the Members of the Association and shall not be utilized for any other purpose or purposes without the prior written consent of Waterloo. The Association agrees that Waterloo shall have no direct responsibility for the provision of programs.

Term

3. The term of this license agreement shall be twenty (20) years, commencing on the 1st day of ______, 2020 and expiring on the 31st day of ______, 2040.

Renewal

4. Prior to the expiration of the term set out herein the parties agree to enter into discussions respecting the renewal thereof. There shall be no automatic right of renewal for either party.

Association’s Obligations

5. The Association agrees:

to maintain the Premises in good and substantial repair and condition and to take every reasonable precaution to protect the Premises from danger of fire, vandalism, water damage and the elements;

(a) to continue to offer a similar range of programs and activities as are currently carried on by the Association at the Premises;

(b) to consult with Waterloo and to keep Waterloo informed as to all matters affecting the Premises;

(c) to do such work as is reasonably necessary to clean and operate and maintain the Premises in a safe condition and to forthwith remedy all damage and all conditions which might create a hazard to users of the Premises;

(d) to conform with all applicable laws, by-laws, regulations and orders at any time in force during the term hereof and affecting the condition, equipment, maintenance, use or occupation of the Premises and to do such work as may be necessary to

Council Meeting Page 82 of 120 January 13, 2020 conform with any lawful requirements of Waterloo’s Fire Department, the Public Health Department of the Regional Municipality of Waterloo and any other governmental branch, agency or authority having jurisdiction;

(e) to ensure that the building on the Premises is kept reasonably secured;

(f) to provide and be responsible for all expenses incurred to provide heat, electricity, water and other utilities and services to the Premises;

(g) to pay all taxes, rates, fees and charges of any nature that may be assessed against or imposed upon the Premises or the operations carried out therein, subject to any usual rights of appeal or redress;

(h) to prepare and submit to Waterloo an annual budget for the maintenance and operation of the Premises by the Members of the Association and the creation of a capital reserve fund, such budget to be communicated to Waterloo and to be subject to approval by Waterloo’s Council, whose decision on such matters shall be final. Waterloo agrees that it shall not unreasonably withhold or delay such approval provided that a proposed annual budget for a particular year is not greater than 10% more or less than the approved annual budget for the preceding year and that preceding budget proved to be satisfactory;

(i) to provide to Waterloo on an annual basis a list of the executive and members of the Association and proof that the proposed annual budget and program delivery plan has been approved by the members of the Association; and

(j) to be responsible for all damages caused to or sustained by the Premises during the term of this Agreement except for such damages, if any, caused by Waterloo or its agents. This provision shall not limit the Association’s ability to subsequently pursue legal action against the person or persons responsible for such damages.

Capital Improvements or Alterations to Premises

6. If the Association wishes to make any capital repairs, alterations or renovations to the Premises or part thereof during the term of this Agreement, it may only do so on the following conditions:

(a) all repairs and renovations shall be carried out at the Association’s sole expense, subject to their inclusion in the annual budget or in the capital reserve fund for recovery from the Members of the Association; and

(b) all such alterations or renovations shall conform to all building by-laws and other applicable laws, by-laws or regulations then in force affecting the Premises or the work to be carried out and no such alterations or renovations may in any manner weaken the structure of the building after the alterations or renovations are completed.

Council Meeting Page 83 of 120 January 13, 2020 Waterloo’s Access to Premises

7. Waterloo and its agents may at all reasonable times enter the Premises for the purpose of inspecting the condition thereof. The Association shall provide Waterloo with duplicate keys for the Premises.

Notice of Repairs and Maintenance Required of the Association

8. Where Waterloo’s inspection reveals that repairs or maintenance are required to be performed by the Association to fulfill its obligations hereunder, Waterloo shall give notice in writing and the Association shall, within thirty (30) days thereof, commence making and diligently complete such repairs or maintenance, failing which the Waterloo may enter and perform the repairs or maintenance at the Association’s expense. In this regard, the Waterloo shall take such measures as are reasonable in its opinion to minimize disruption to the Association’s activities and the cost of the repairs or maintenance, but shall not be responsible for loss or harm occasioned thereby.

Special Service/Area Levy

9. The parties agree that it is their mutual intention that all of the direct and indirect costs attributable to the capital improvement, maintenance and operation of the Premises and the activities carried out at the Premises shall be fully recovered from the Members of the Association, who are the beneficiaries thereof. In order to fulfil this intent, the Association acknowledges and agree that Waterloo shall establish and impose a special service levy under Section 326 of the Municipal Act, 2001, S.O. 2001, c. 25, as amended, (the “Special Area Levy”) against the Members of the Association. The funds raised by the Special Area Levy shall be used only for the capital improvement, maintenance and operation of the Premises and for the recreational and other programs or activities carried out in association with the Premises. The process for the establishment and disposition of the Special Area Levy and the funds raised thereby shall be as follows:

(a) On or before November 30th of each year, the Association shall provide to Waterloo its proposed budget and program delivery plan for the following year, as approved by a majority vote of the Members of the Association represented at the Association’s Annual General Meeting, in form and with a level of detail satisfactory to Waterloo;

(b) Waterloo shall review and consider the Association’s proposed budget and program delivery plan and the Association shall provide to Waterloo such further information as Waterloo requires in order to carry out and complete its consideration in an expeditious manner. The annual budget shall include a line item amount equal to 1% of the balance of the budget to reimburse Waterloo for its annual internal and external administrative costs of implementing this Agreement and the Lease Agreement. For greater clarity, the 1% administrative fee for administrative purposes shall not include any additional costs properly incurred by Waterloo pursuant to the terms of this Agreement;

Council Meeting Page 84 of 120 January 13, 2020 (c) Upon the completion of its review, Waterloo shall approve the following year’s budget for the Premises or shall communicate to the Association such amendments as Waterloo deems necessary or advisable and shall communicate such approvals to the Association. The Association shall consider such proposed amendments and shall submit a revised budget to Waterloo for further consideration;

(d) Following such communications and upon approval by Waterloo of the annual budget for the Premises, Waterloo shall calculate the amount of the Special Area Levy required to meet the approved budget and shall establish and impose the Special Area Levy against the Members, add the Special Area Levy to the tax rolls for the Member’s properties and collect the levy in the same manner as municipal taxes;

(e) Waterloo shall provide all of the funds raised by the Special Area Levy to the Association for sole purpose of permitting the Association to carry out its obligations under this Agreement, with the exception of the amount set out in subparagraph 9(b) of this agreement that is included in the budget for reimbursement and coverage of Waterloo’s annual costs of implementing this Agreement and the Lease Agreement. The funds shall be remitted to the Association in equal instalments on May 1st and July 15th of each year;

(f) The Association shall provide Waterloo with financial statements detailing, in a form and content satisfactory to Waterloo, the Association’s use of all funds provided to it by Waterloo by not later than November 30th of each year and at such other dates as required by Waterloo; and

(g) In the event that there is a surplus or deficit in the funds used by the Association to operate and maintain the Premises, such surplus or deficit shall be funded from or credited to the capital reserve fund for the Premises and shall be included within the following year’s annual budget.

Insurance Requirements

10. The Association shall throughout the term of this Agreement provide and keep in force general liability insurance in an amount not less than five million ($5,000,000.00) dollars in a form and content that is satisfactory to Waterloo and shall provide Waterloo with proof thereof. Said policy of insurance shall name Waterloo as an additional insured.

Indemnity

11. The Association hereby agrees to respond to, indemnify, defend on behalf of and hold harmless Waterloo, its councillors, employees and agents against any and all liability, claims, actions, judgments, damages or expenses (including legal expenses) and all claims for personal injury, death and/or property damage caused by any act or omission of the Association, those for whom it is responsible at law or its contractors, subcontractors or invitees (excluding Waterloo and its subcontractors), arising from the

Council Meeting Page 85 of 120 January 13, 2020 use by the Association of the Premises or from the exercise by the Association of any rights granted pursuant to this Agreement. For greater clarity, it is the parties’ intent that the responsibility for responding to and settling claims arising from the use or occupation of the Premises shall lie with the Association.

Remedies of Waterloo

12. Notwithstanding any other provision of this Agreement, if the Association fails to perform or observe any covenants herein, which failure continues for fifteen (15) days after written notice thereof, Waterloo shall have the following remedies, which are cumulative and not in the alternative and which are without prejudice to any other rights or remedies it may have:

(a) Waterloo may enter the Premises and perform the Association’s obligation on behalf of the Association, and any reasonable expenses incurred by the Waterloo thereby shall be paid by the Association forthwith, failing which the amount may be added to the amount to be collected by way of the Special Area Levy; and

(b) Waterloo may upon thirty (30) days’ written notice terminate this Agreement.

13. If Waterloo fails to perform or observe any covenants herein, which failure continues for fifteen (15) days after written notice thereof, or fails to ultimately approve the Association’s annual budget in accordance with the procedure set out in paragraph 9 of this Agreement, the Association may upon ninety (90) days’ written notice terminate this Agreement. In the event of such termination, the Association shall repay to Waterloo any interim funds advanced by Waterloo in advance of budget approval, if any.

Liability for Chattels, etc.

14. All chattels and personal property brought to or stored at the Premises shall be at the sole risk and responsibility of the Association, and the Association agrees to indemnify and hold harmless Waterloo from any claim for loss, theft or damage to or of any such chattels or personal property.

Rights of Termination

15. This Agreement may be terminated by either party without cause upon giving twelve (12) months’ written notice to the other party. The termination of the Agreement by the City or the Association shall not release either party from any of its obligations hereunder during the period up to the effective date of termination.

GENERAL PROVISIONS

Notices

16. Any notice to the Association shall be deemed to be adequately given if served personally on any one of the officers of the Association or if sent by courier or mailed by prepaid

Council Meeting Page 86 of 120 January 13, 2020 registered mail addressed to the Association at 139 Sandford Fleming Drive, Waterloo, ON N2T 1E1 or to such other postal address as the Association may advise Waterloo from time to time. The Association shall confirm the currency of this information on an annual basis when it forwards its budget proposal to the Waterloo.

Any notice to Waterloo shall be deemed to be adequately given if served personally on the Clerk of the City of Waterloo or if sent by courier or mailed by prepaid registered mail addressed to the Clerk of the City of Waterloo (City of Waterloo Civic Centre, 100 Regina St S., PO Box 337, Station Waterloo, Waterloo, Ontario N2J 4A8).

Notice shall deemed to be effective on the day that it is personally served or three (3) business days following the date that is sent by mail or courier.

No waiver of default

17. No condoning or delay by either party in respect of any default, breach or non- observance by the other party of any covenant in this Agreement operates as a waiver of that party’s rights under this Agreement.

Entire agreement

18. There are no covenants, representations, warranties, agreements or conditions, express or implied, collateral or otherwise, forming part of or in any way affecting this Agreement.

Registration

19. Waterloo may register notice of this Agreement against title to the Premises at the expense of the Association and the Association shall obtain any postponements or other documentation required by Waterloo in order to permit this Agreement to obtain first priority in respect thereof.

Severability

20. If any clause or parts thereof in this Agreement be unenforceable they shall be considered separate and severable from the Agreement and the remaining provisions of the Agreement shall remain in full force and effect.

Successors and Non-Assignment

21. Neither party may transfer, assign, sub-license, encumber or in any way deal with or part with the whole or any part of the Premises to anyone during any part of the term without written consent first being obtained from the other party. This Agreement shall enure to and be binding upon the parties hereto and their respective successors and may not be assigned by either party without the prior written approval of the other party.

Council Meeting Page 87 of 120 January 13, 2020

IN WITNESS WHEREOF the parties hereto have executed this Agreement under the hands of their duly authorized signing officers.

THE CORPORATION OF THE CITY OF WATERLOO

______Dave Jaworsky, Mayor

______Olga Smith, City Clerk

BEECHWOOD WEST #1 HOMES ASSOCIATION INC.

Per:______Name: Title:

Per:______Name: Title We have authority to bind the Corporation.

Council Meeting Page 88 of 120 January 13, 2020

SCHEDULE “A” – MEMBER PROPERTIES OF THE ASSOCIATION

ASSESSMENT ROLL STREET NUMBER NUMBER STREET NAME LEGAL DESCRIPTION 042.750.01500.0000 101 ASHBERRY PL PLAN 1477 LOT 30 042.750.00400.0000 102 ASHBERRY PL PLAN 1477 LOT 1 042.750.01600.0000 103 ASHBERRY PL PLAN 1477 LOT 29 042.750.00500.0000 104 ASHBERRY PL PLAN 1477 LOT 2 042.750.01700.0000 105 ASHBERRY PL PLAN 1477 LOT 28 042.750.00600.0000 106 ASHBERRY PL PLAN 1477 LOT 3 042.750.01800.0000 107 ASHBERRY PL PLAN 1477 LOT 27 042.750.00700.0000 108 ASHBERRY PL PLAN 1477 LOT 4 042.750.01900.0000 109 ASHBERRY PL PLAN 1477 LOT 26 042.750.00800.0000 110 ASHBERRY PL PLAN 1477 LOT 5 042.750.02000.0000 111 ASHBERRY PL PLAN 1477 LOT 25 042.750.02100.0000 113 ASHBERRY PL PLAN 1477 LOT 24 042.750.02200.0000 117 ASHBERRY PL PLAN 1477 LOT 23 042.750.02300.0000 119 ASHBERRY PL PLAN 1477 LOT 22 042.750.02400.0000 121 ASHBERRY PL PLAN 1477 LOT 21 042.750.02500.0000 123 ASHBERRY PL PLAN 1477 LOT 20 042.750.02600.0000 125 ASHBERRY PL PLAN 1477 LOT 19 042.750.02700.0000 127 ASHBERRY PL PLAN 1477 LOT 18 042.750.02800.0000 129 ASHBERRY PL PLAN 1477 LOT 17 042.750.02900.0000 131 ASHBERRY PL PLAN 1477 LOT 16 042.750.03000.0000 133 ASHBERRY PL PLAN 1477 LOT 15 042.750.03100.0000 135 ASHBERRY PL PLAN 1477 LOT 14 042.750.03200.0000 137 ASHBERRY PL PLAN 1477 LOT 13 042.750.00900.0000 138 ASHBERRY PL PLAN 1477 LOT 6 042.750.03300.0000 139 ASHBERRY PL PLAN 1477 LOT 12 042.750.01000.0000 140 ASHBERRY PL PLAN 1477 LOT 7 042.750.03400.0000 141 ASHBERRY PL PLAN 1477 LOT 11 042.750.01100.0000 142 ASHBERRY PL PLAN 1477 LOT 8 042.750.03500.0000 143 ASHBERRY PL PLAN 1477 LOT 10 042.750.01200.0000 144 ASHBERRY PL PLAN 1477 LOT 9 041.860.00300.0000 102 FREDERICK BANTING PL PLAN 1479 LOT 83 041.860.00400.0000 104 FREDERICK BANTING PL PLAN 1479 LOT 82 041.860.01500.0000 105 FREDERICK BANTING PL PLAN 1479 LOT 68

Council Meeting Page 89 of 120 January 13, 2020 ASSESSMENT ROLL STREET NUMBER NUMBER STREET NAME LEGAL DESCRIPTION 041.860.00500.0000 106 FREDERICK BANTING PL PLAN 1479 LOT 81 041.860.01600.0000 107 FREDERICK BANTING PL PLAN 1479 LOT 69 041.860.00600.0000 108 FREDERICK BANTING PL PLAN 1479 LOT 80 041.860.01700.0000 109 FREDERICK BANTING PL PLAN 1479 LOT 70 041.860.00700.0000 110 FREDERICK BANTING PL PLAN 1479 LOT 79 041.860.01800.0000 111 FREDERICK BANTING PL PLAN 1479 LOT 71 041.860.00800.0000 112 FREDERICK BANTING PL PLAN 1479 LOT 78 041.860.00900.0000 114 FREDERICK BANTING PL PLAN 1479 LOT 77 041.860.01900.0000 115 FREDERICK BANTING PL PLAN 1479 LOT 72 041.860.01000.0000 116 FREDERICK BANTING PL PLAN 1479 LOT 76 041.860.02000.0000 117 FREDERICK BANTING PL PLAN 1479 LOT 73 041.860.01100.0000 118 FREDERICK BANTING PL PLAN 1479 LOT 75 041.860.02100.0000 119 FREDERICK BANTING PL PLAN 1479 LOT 74 042.990.01500.0000 101 MCCRAE PL PLAN 1479 LOT 19 042.990.01600.0000 103 MCCRAE PL PLAN 1479 LOT 20 042.990.00500.0000 104 MCCRAE PL PLAN 1479 LOT 32 042.990.01700.0000 105 MCCRAE PL PLAN 1479 LOT 21 042.990.00600.0000 106 MCCRAE PL PLAN 1479 LOT 31 042.990.01800.0000 107 MCCRAE PL PLAN 1479 LOT 22 042.990.00700.0000 108 MCCRAE PL PLAN 1479 LOT 30 042.990.01900.0000 109 MCCRAE PL PLAN 1479 LOT 23 042.990.00800.0000 110 MCCRAE PL PLAN 1479 LOT 29 042.990.02000.0000 111 MCCRAE PL PLAN 1479 LOT 24 042.990.00900.0000 112 MCCRAE PL PLAN 1479 LOT 28 042.990.02100.0000 113 MCCRAE PL PLAN 1479 LOT 25 042.990.01000.0000 114 MCCRAE PL PLAN 1479 LOT 27 042.990.02200.0000 115 MCCRAE PL PLAN 1479 LOT 26 043.627.02000.0000 101 RALSTON PL PLAN 1479 LOT 136 043.627.02100.0000 103 RALSTON PL PLAN 1479 LOT 137 043.627.00500.0000 104 RALSTON PL PLAN 1479 LOT 152 043.627.02200.0000 105 RALSTON PL PLAN 1479 LOT 138 043.627.00600.0000 106 RALSTON PL PLAN 1479 LOT 151 043.627.00700.0000 108 RALSTON PL PLAN 1479 LOT 150 043.627.00800.0000 110 RALSTON PL PLAN 1479 LOT 149 043.627.00900.0000 112 RALSTON PL PLAN 1479 LOT 148

Council Meeting Page 90 of 120 January 13, 2020 ASSESSMENT ROLL STREET NUMBER NUMBER STREET NAME LEGAL DESCRIPTION 043.627.01000.0000 114 RALSTON PL PLAN 1479 LOT 147 043.627.02300.0000 115 RALSTON PL PLAN 1479 LOT 139 043.627.01100.0000 116 RALSTON PL PLAN 1479 LOT 146 043.627.02400.0000 117 RALSTON PL PLAN 1479 LOT 140 043.627.01200.0000 118 RALSTON PL PLAN 1479 LOT 145 043.627.02500.0000 119 RALSTON PL PLAN 1479 LOT 141 043.627.01300.0000 120 RALSTON PL PLAN 1479 LOT 144 043.627.02600.0000 121 RALSTON PL PLAN 1479 LOT 142 043.627.01400.0000 122 RALSTON PL PLAN 1479 LOT 143 SANDFORD FLEMING 043.675.04000.0000 101 DR PLAN 1479 LOT 1 SANDFORD FLEMING 043.675.04100.0000 103 DR PLAN 1479 LOT 2 SANDFORD FLEMING 043.675.00200.0000 104 DR PLAN 1479 LOT 153 SANDFORD FLEMING 043.675.04200.0000 105 DR PLAN 1479 LOT 3 SANDFORD FLEMING 043.675.04300.0000 107 DR PLAN 1479 LOT 4 SANDFORD FLEMING 043.675.04400.0000 109 DR PLAN 1479 LOT 5 SANDFORD FLEMING 043.675.04500.0000 111 DR PLAN 1479 LOT 6 SANDFORD FLEMING 043.675.04600.0000 113 DR PLAN 1479 LOT 7 SANDFORD FLEMING 043.675.00400.0000 114 DR PLAN 1479 LOT 135 SANDFORD FLEMING 043.675.04700.0000 115 DR PLAN 1479 LOT 8 SANDFORD FLEMING 043.675.04800.0000 117 DR PLAN 1479 LOT 9 SANDFORD FLEMING 043.675.00500.0000 118 DR PLAN 1479 LOT 134 SANDFORD FLEMING 043.675.04900.0000 119 DR PLAN 1479 LOT 10 SANDFORD FLEMING 043.675.00600.0000 120 DR PLAN 1479 LOT 133 SANDFORD FLEMING 043.675.05000.0000 121 DR PLAN 1479 LOT 11 SANDFORD FLEMING 043.675.00700.0000 122 DR PLAN 1479 LOT 132 SANDFORD FLEMING 043.675.05100.0000 123 DR PLAN 1479 LOT 12 SANDFORD FLEMING 043.675.00800.0000 124 DR PLAN 1479 LOT 131

Council Meeting Page 91 of 120 January 13, 2020 ASSESSMENT ROLL STREET NUMBER NUMBER STREET NAME LEGAL DESCRIPTION SANDFORD FLEMING 043.675.05200.0000 125 DR PLAN 1479 LOT 13 SANDFORD FLEMING 043.675.05300.0000 127 DR PLAN 1479 LOT 14 SANDFORD FLEMING 043.675.00900.0000 128 DR PLAN 1479 LOT 130 SANDFORD FLEMING 043.675.05400.0000 129 DR PLAN 1479 LOT 15 SANDFORD FLEMING 043.675.05500.0000 131 DR PLAN 1479 LOT 16 SANDFORD FLEMING 043.675.01000.0000 132 DR PLAN 1479 LOT 129 SANDFORD FLEMING 043.675.05600.0000 133 DR PLAN 1479 LOT 17 SANDFORD FLEMING 043.675.05700.0000 135 DR PLAN 1479 LOT 18 SANDFORD FLEMING 043.675.01100.0000 136 DR PLAN 1479 LOT 128 SANDFORD FLEMING 043.675.01200.0000 138 DR PLAN 1479 LOT 127 SANDFORD FLEMING 043.675.01300.0000 140 DR PLAN 1479 LOT 126 SANDFORD FLEMING 043.675.01400.0000 142 DR PLAN 1479 LOT 125 SANDFORD FLEMING 043.675.01500.0000 144 DR PLAN 1479 LOT 124 SANDFORD FLEMING 043.675.06200.0000 145 DR PLAN 1479 LOT 33 SANDFORD FLEMING 043.675.01600.0000 146 DR PLAN 1479 LOT 123 SANDFORD FLEMING 043.675.06300.0000 147 DR PLAN 1479 LOT 34 SANDFORD FLEMING 043.675.01700.0000 148 DR PLAN 1479 LOT 122 SANDFORD FLEMING 043.675.06400.0000 149 DR PLAN 1479 LOT 35 SANDFORD FLEMING 043.675.01800.0000 150 DR PLAN 1479 LOT 121 SANDFORD FLEMING 043.675.06500.0000 151 DR PLAN 1479 LOT 36 SANDFORD FLEMING 043.675.01900.0000 152 DR PLAN 1479 LOT 120 SANDFORD FLEMING 043.675.06600.0000 153 DR PLAN 1479 LOT 37 SANDFORD FLEMING 043.675.06700.0000 155 DR PLAN 1479 LOT 38 SANDFORD FLEMING 043.675.06800.0000 157 DR PLAN 1479 LOT 39

Council Meeting Page 92 of 120 January 13, 2020 ASSESSMENT ROLL STREET NUMBER NUMBER STREET NAME LEGAL DESCRIPTION SANDFORD FLEMING 043.675.06900.0000 159 DR PLAN 1479 LOT 40 SANDFORD FLEMING 043.675.02100.0000 160 DR PLAN 1479 LOT 100 SANDFORD FLEMING 043.675.07000.0000 161 DR PLAN 1479 LOT 41 SANDFORD FLEMING 043.675.02200.0000 162 DR PLAN 1479 LOT 99 SANDFORD FLEMING 043.675.07100.0000 163 DR PLAN 1479 LOT 42 SANDFORD FLEMING 043.675.02300.0000 164 DR PLAN 1479 LOT 98 SANDFORD FLEMING 043.675.07200.0000 165 DR PLAN 1479 LOT 43 SANDFORD FLEMING 043.675.02400.0000 166 DR PLAN 1479 LOT 97 SANDFORD FLEMING 043.675.02500.0000 168 DR PLAN 1479 LOT 96 SANDFORD FLEMING 043.675.02600.0000 170 DR PLAN 1479 LOT 95 SANDFORD FLEMING 043.675.02700.0000 172 DR PLAN 1479 LOT 94 SANDFORD FLEMING 043.675.02800.0000 174 DR PLAN 1479 LOT 93 SANDFORD FLEMING 043.675.02900.0000 176 DR PLAN 1479 LOT 92 SANDFORD FLEMING 043.675.03000.0000 178 DR PLAN 1479 LOT 91 SANDFORD FLEMING 043.675.07700.0000 179 DR PLAN 1479 LOT 84 SANDFORD FLEMING 043.675.03100.0000 180 DR PLAN 1479 LOT 90 SANDFORD FLEMING 043.675.07800.0000 181 DR PLAN 1479 LOT 85 SANDFORD FLEMING 043.675.03200.0000 182 DR PLAN 1479 LOT 89 SANDFORD FLEMING 043.675.07900.0000 183 DR PLAN 1479 LOT 86 SANDFORD FLEMING 043.675.03300.0000 184 DR PLAN 1479 LOT 88 SANDFORD FLEMING 043.675.08000.0000 185 DR PLAN 1479 LOT 87 042.958.01600.0000 103 SANDY RIDGE PL PLAN 1479 LOT 119 042.958.00300.0000 104 SANDY RIDGE PL PLAN 1479 LOT 101 042.958.01700.0000 105 SANDY RIDGE PL PLAN 1479 LOT 118 042.958.00400.0000 106 SANDY RIDGE PL PLAN 1479 LOT 102

Council Meeting Page 93 of 120 January 13, 2020 ASSESSMENT ROLL STREET NUMBER NUMBER STREET NAME LEGAL DESCRIPTION 042.958.01800.0000 107 SANDY RIDGE PL PLAN 1479 LOT 117 042.958.00500.0000 108 SANDY RIDGE PL PLAN 1479 LOT 103 042.958.01900.0000 109 SANDY RIDGE PL PLAN 1479 LOT 116 042.958.02000.0000 111 SANDY RIDGE PL PLAN 1479 LOT 115 042.958.02100.0000 113 SANDY RIDGE PL PLAN 1479 LOT 114 042.958.02200.0000 115 SANDY RIDGE PL PLAN 1479 LOT 113 042.958.00600.0000 116 SANDY RIDGE PL PLAN 1479 LOT 104 042.958.02300.0000 117 SANDY RIDGE PL PLAN 1479 LOT 112 042.958.00700.0000 118 SANDY RIDGE PL PLAN 1479 LOT 105 042.958.02400.0000 119 SANDY RIDGE PL PLAN 1479 LOT 111 042.958.00800.0000 120 SANDY RIDGE PL PLAN 1479 LOT 106 042.958.02500.0000 121 SANDY RIDGE PL PLAN 1479 LOT 110 042.958.00900.0000 122 SANDY RIDGE PL PLAN 1479 LOT 107 042.958.02600.0000 123 SANDY RIDGE PL PLAN 1479 LOT 109 042.958.01000.0000 124 SANDY RIDGE PL PLAN 1479 LOT 108 043.850.00400.0000 102 SHAUGHNESSY PL PLAN 1479 LOT 67 043.850.02000.0000 103 SHAUGHNESSY PL PLAN 1479 LOT 44 043.850.00500.0000 104 SHAUGHNESSY PL PLAN 1479 LOT 66 043.850.02100.0000 105 SHAUGHNESSY PL PLAN 1479 LOT 45 043.850.00600.0000 106 SHAUGHNESSY PL PLAN 1479 LOT 65 043.850.02200.0000 107 SHAUGHNESSY PL PLAN 1479 LOT 46 043.850.00700.0000 108 SHAUGHNESSY PL PLAN 1479 LOT 64 043.850.00800.0000 110 SHAUGHNESSY PL PLAN 1479 LOT 63 043.850.00900.0000 112 SHAUGHNESSY PL PLAN 1479 LOT 62 043.850.01000.0000 114 SHAUGHNESSY PL PLAN 1479 LOT 61 043.850.01100.0000 116 SHAUGHNESSY PL PLAN 1479 LOT 60 043.850.02300.0000 117 SHAUGHNESSY PL PLAN 1479 LOT 47 043.850.01200.0000 118 SHAUGHNESSY PL PLAN 1479 LOT 59 043.850.02400.0000 119 SHAUGHNESSY PL PLAN 1479 LOT 48 PT LOT 49 043.850.01300.0000 120 SHAUGHNESSY PL PLAN 1479 LOT 58 043.850.02500.0000 121 SHAUGHNESSY PL PLAN 1479 PT LOT 49 043.850.01400.0000 122 SHAUGHNESSY PL PLAN 1479 LOT 57 043.850.02600.0000 123 SHAUGHNESSY PL PLAN 1479 LOT 50 043.850.01500.0000 124 SHAUGHNESSY PL PLAN 1479 LOT 56 043.850.02700.0000 125 SHAUGHNESSY PL PLAN 1479 LOT 51

Council Meeting Page 94 of 120 January 13, 2020 ASSESSMENT ROLL STREET NUMBER NUMBER STREET NAME LEGAL DESCRIPTION 043.850.01600.0000 126 SHAUGHNESSY PL PLAN 1479 LOT 55 043.850.02800.0000 127 SHAUGHNESSY PL PLAN 1479 LOT 52 043.850.01700.0000 128 SHAUGHNESSY PL PLAN 1479 LOT 54 043.850.02900.0000 129 SHAUGHNESSY PL PLAN 1479 LOT 53 042.512.00400.0000 102 WOODBEND CRES PLAN 1477 LOT 31 042.512.00500.0000 104 WOODBEND CRES PLAN 1477 LOT 32 042.512.00600.0000 106 WOODBEND CRES PLAN 1477 LOT 33 042.512.00700.0000 108 WOODBEND CRES PLAN 1477 LOT 34 042.512.00800.0000 110 WOODBEND CRES PLAN 1477 LOT 35 042.512.04550.0000 111 WOODBEND CRES PLAN 1477 LOT 73 042.512.00900.0000 112 WOODBEND CRES PLAN 1477 LOT 36 042.512.01000.0000 114 WOODBEND CRES PLAN 1477 LOT 37 042.512.01100.0000 116 WOODBEND CRES PLAN 1477 LOT 38 042.512.01200.0000 118 WOODBEND CRES PLAN 1477 LOT 39 042.512.01300.0000 120 WOODBEND CRES PLAN 1477 LOT 40 042.512.01400.0000 122 WOODBEND CRES PLAN 1477 LOT 41 042.512.04600.0000 123 WOODBEND CRES PLAN 1477 LOT 92 042.512.01500.0000 124 WOODBEND CRES PLAN 1477 LOT 42 042.512.04700.0000 125 WOODBEND CRES PLAN 1477 LOT 91 042.512.01600.0000 126 WOODBEND CRES PLAN 1477 LOT 43 042.512.04800.0000 127 WOODBEND CRES PLAN 1477 LOT 90 042.512.01700.0000 128 WOODBEND CRES PLAN 1477 LOT 44 042.512.04900.0000 129 WOODBEND CRES PLAN 1477 LOT 89 042.512.01800.0000 130 WOODBEND CRES PLAN 1477 LOT 45 042.512.05000.0000 131 WOODBEND CRES PLAN 1477 LOT 88 042.512.01900.0000 132 WOODBEND CRES PLAN 1477 LOT 46 042.512.05100.0000 133 WOODBEND CRES PLAN 1477 LOT 87 042.512.02000.0000 134 WOODBEND CRES PLAN 1477 LOT 47 042.512.05200.0000 135 WOODBEND CRES PLAN 1477 LOT 86 042.512.02100.0000 136 WOODBEND CRES PLAN 1477 LOT 48 042.512.05300.0000 137 WOODBEND CRES PLAN 1477 LOT 85 042.512.02200.0000 138 WOODBEND CRES PLAN 1477 LOT 49 042.512.05400.0000 139 WOODBEND CRES PLAN 1477 LOT 84 042.512.02300.0000 140 WOODBEND CRES PLAN 1477 LOT 50 042.512.02400.0000 142 WOODBEND CRES PLAN 1477 LOT 51

Council Meeting Page 95 of 120 January 13, 2020 ASSESSMENT ROLL STREET NUMBER NUMBER STREET NAME LEGAL DESCRIPTION 042.512.02500.0000 144 WOODBEND CRES PLAN 1477 LOT 52 042.512.02600.0000 146 WOODBEND CRES PLAN 1477 LOT 53 042.512.02700.0000 148 WOODBEND CRES PLAN 1477 LOT 54 042.512.02800.0000 150 WOODBEND CRES PLAN 1477 LOT 55 042.512.02900.0000 152 WOODBEND CRES PLAN 1477 LOT 56 042.512.05500.0000 153 WOODBEND CRES PLAN 1477 LOT 83 042.512.03000.0000 154 WOODBEND CRES PLAN 1477 LOT 57 042.512.03100.0000 156 WOODBEND CRES PLAN 1477 LOT 58 042.512.05600.0000 157 WOODBEND CRES PLAN 1477 LOT 82 042.512.03200.0000 158 WOODBEND CRES PLAN 1477 LOT 59 042.512.03300.0000 160 WOODBEND CRES PLAN 1477 LOT 60 042.512.03400.0000 162 WOODBEND CRES PLAN 1477 LOT 61 042.512.03500.0000 164 WOODBEND CRES PLAN 1477 LOT 62 042.512.05700.0000 165 WOODBEND CRES PLAN 1477 LOT 81 042.512.03600.0000 166 WOODBEND CRES PLAN 1477 LOT 63 042.512.05800.0000 167 WOODBEND CRES PLAN 1477 LOT 80 042.512.03700.0000 168 WOODBEND CRES PLAN 1477 LOT 64 042.512.05900.0000 169 WOODBEND CRES PLAN 1477 LOT 79 042.512.03800.0000 170 WOODBEND CRES PLAN 1477 LOT 65 042.512.06000.0000 171 WOODBEND CRES PLAN 1477 LOT 78 042.512.03900.0000 172 WOODBEND CRES PLAN 1477 LOT 66 042.512.06100.0000 173 WOODBEND CRES PLAN 1477 LOT 77 042.512.04000.0000 174 WOODBEND CRES PLAN 1477 LOT 67 042.512.06200.0000 175 WOODBEND CRES PLAN 1477 LOT 76 042.512.04100.0000 176 WOODBEND CRES PLAN 1477 LOT 68 042.512.06300.0000 177 WOODBEND CRES PLAN 1477 LOT 75 042.512.04200.0000 178 WOODBEND CRES PLAN 1477 LOT 69 042.512.06400.0000 179 WOODBEND CRES PLAN 1477 LOT 74 042.512.04300.0000 180 WOODBEND CRES PLAN 1477 LOT 70 042.512.04400.0000 182 WOODBEND CRES PLAN 1477 LOT 71 042.512.04500.0000 184 WOODBEND CRES PLAN 1477 LOT 72

Council Meeting Page 96 of 120 January 13, 2020 Beechwood West #1 Home Association

Dear Council of the City of Waterloo,

Thank you for the opportunity to present at the meeting on November 18, 2019. On the copy of the agenda that was forwarded to us prior to the meeting, there was no mention of the delegates other than myself and Gingerich's speaking. I am aware that I was not allowed at the meeting to respond to any of the claims made by the other presenters, but I do wish council to hear our rebuttals. If you could ensure that this information be passed onto the council member with the other written material prior to the January 13, 2020 meeting, it would be greatly appreciated.

Rebuttals to delegations that represented the Associate families at the City Council Meeting on November 18, 2019.

1. The first speaker, Mr. Mohamed presented a budget. The board of BW1 never got to see this proposed budget, but in listening to his presentation his budget is not realistic. Mr. Mohamed makes an assumption that if BW1 were to go to volunteer/pay as you go model that 67% of the original covenanted properties would continue to pay and that we would need to only increase the associate annual passes to 50-60 families. Mr. Mohamed suggests a small increase in annual dues would allow BW1 to be financially operable. This is erroneous in many ways; 1. From our research, home associations that have gone to volunteer/pay as you go models have only 25-30% of households that continue to pay annual dues. The board of BW1 did a budgetary exercise and even using optimistic number of 40% of households paying their dues, the annual dues would have to increase a great deal for each household. This in turn would make the volunteer payments even more unattractive to some. Currently the dues are $450-500/year, how many families would want to pay if dues where $800-$1000/year? 2. BW1 does not have a parking lot. Selling more associate annual family passes would mean more parked cars on our residential streets which creates a safety concern. McCrae Place, the closest street to the pool, does not have sidewalks and with cars parked on both sides of the street, excited children going to the pool walk and often run on the road. 3. Associate families are very temporary in their use/want of BW1. The average associate family stays for 3-6 years, usually just while their children are young and in swimming lessons. There is no guarantee that an associate family will purchase an annual pass from 1 year to the next. The data presented by the City showed that in the past 4 years there have been 88 different families purchasing annual passes. There

Council Meeting Page 97 of 120 January 13, 2020 would be no way to force families to sign long term agreements to pay for 10-20 years.

4. Mr.Mohamed also stated that he and other associate families would be willing to volunteer to help collect dues. BW1 has numerous social and small activities throughout the season that requires volunteers (the opening BBQ, putting up and taking down of the tennis nets and wind screens and adult social night). All season long, BW1 asks everyone that uses the facilities (members and associates) to volunteers for these events. Over the past few years none of the associate families have volunteered to help with the running of these events, therefore it seems unlikely that they would volunteer for the unpleasant job of going door to door to collect dues.

2. The second speaker, Mr. Bushey, said the neighbourhood demographics had changed since the BW1 started the covenant expiry process in 2014 and he also touched on the Neighbour building initiatives that the City of Waterloo supports. Beechwood’s demographics are constantly changing. New young families move in and have babies, young children grow up and stop using the facilities of the home association and eventually leaving home. The original home owners of 1980 are empty nesters, but some have grandchildren who come to visit and use the facilities. This is not a new phenomenon. It the life cycle of our healthy neighbourhood for the past 40 years, and covenant homeowners have been paying for the facilities that they no longer use. They paid because they agreed to a covenant when they purchased their homes and they know the Home Association gives their 40 year old home a selling advantage when compared to the newer built homes in the Beechwood neighbourhoods. BW1 believes in communities and has a guest policy where members can bring guests with them to enjoy the facilities. The board of directors does not want to exclude anyone from enjoying the summer with their friends. Guests are also invited to our social events.

3. The third speaker, Mr. Reid spoke about the children’s experience of losing the pool . In the catchment area of Mary Johnston Public School, there are 3 home associations with pools and tennis courts and not all the children that attend Mary Johnston P.S. belong to any of these 3 home associations, therefore there are many neighbourhood children who don’t belong to any community pool in the summer. Mr. Reid mentioned that it is the associate families that have the most children that use the facilities and their dues are a significant revenue to the home association. He mentioned he didn’t see how more associates would be a safety issue. It is true that associates provided a source of revenue, but associates are also a significant cost to the home association in the form of wages. Over 57% of our annual budget goes to the wages of the lifeguards. By increasing the number of associate families (2-3 children per family) at the pool, it will in turn increases the number of lifeguards BW1 staffs hourly. BW1 pool is a Class B pool and therefore does not need to be staffed at all times and children could be supervised by their parents while swimming. Some home associations that have gone to the volunteer/pay as you go model have implemented decreased hours of supervised swimming due to the lack of finances. The board of directors of BW1 has the safety of ALL children in mind when we decided to pursue the SSAL with the City of Waterloo.

Council Meeting Page 98 of 120 January 13, 2020

Some members of BW1 Board of Directors and the Chairperson of the Covenant Expiry Committee offered to meet with these associate families before the end of the season to discuss the rationale for BW1 decision to pursue the SSAL. A meeting date, time and place was arranged, but the associate families never attended. The intention of the meeting was to be neighbourly and not have to take up the City Council’s time on this matter.

As I sat in the council meeting on Monday November 18, 2019, I noticed the Waterloo coat of arms displayed in the chambers above the Chair of council meeting. Written across it is the word “Stability”. The SSAL is the only way BW1 can have stability to continue to operate in the future as it as in the past.

Thank you on Behalf of Beechwood West 1 Home Association Board of Directors and members.

Heidi Johnston

Secretary of Beechwood West 1 and Chair of BW1 Covenant Expiry Committee

Council Meeting Page 99 of 120 January 13, 2020 STAFF REPORT Planning

Title: Recommendation to amend Designation By-law 82-62, for 25 Regina Street South (Button Factory) under the Ontario Heritage Act Report Number: IPPW2019-070 Author: Fredrick VanRooyen Meeting Type: Council Meeting Council/Committee Date: January 13, 2020 File: N/A Attachments: Appendix A Ward No.: Ward 7

Recommendations:

1. That staff report IPPW2019-070 be approved.

2. That Council amend designation by-law 82-62 for 25 Regina Street South (Button Factory) under Part IV, Section 29 of the Ontario Heritage Act, by expanding the list of heritage attributes as described in Appendix A to report IPPW2019-070.

A. Executive Summary

The City-owned Button Factory at 25 Regina Street South was designated in 1982 as a property of cultural heritage value under Part IV of the Ontario Heritage Act. The original designation by-law (82-62) only included the north and east facades of the building as heritage attributes. Staff and the Municipal Heritage Committee are of the opinion that all exterior facades and a number of interior and structural components have heritage value and therefore recommend that Council amend the designation by-law to incorporate these heritage attributes. Approval of the proposed amendments will ensure that all heritage attributes are clearly identified, which will in turn help guide future maintenance and repairs, including the location and design of a future elevator addition. In addition, the amendments will align with new regulations introduced under the

Council Meeting Page 100 of 120 January 13, 2020 Ontario Heritage Act that require a description of the reasons for designation and the identification of specific heritage attributes.

B. Financial Implications None.

C. Technology Implications None.

(Guiding Principles: Equity and Inclusion; Sustainability; Fiscal Responsibility; Healthy and Safe Workplace; Effective Engagement; Personal Leadership; Service Excellence)

Healthy Community & Resilient Neighbourhoods: The amended designation by-law for the Button Factory supports the Healthy Community and Resilient Neighbourhoods strategic objective by helping to create and maintain vibrant public spaces, conserve heritage resources and help foster a sense of place and identity.

E. Previous Reports on this Topic None.

F. Approvals

Name Signature Date Author: Fredrick VanRooyen Director: Joel Cotter Commissioner: Cameron Rapp Finance: N/A CAO

Council Meeting Page 101 of 120 January 13, 2020

Recommendation to amend Designation By-law 82-62, for 25 Regina Street South (Button Factory) under the Ontario Heritage Act IPPW2019-070

1.0 Background

The Button Factory at 25 Regina Street South was built circa 1886 and is located on the west side of Regina Street South in Uptown Waterloo. The City-owned property contains a three-storey, buff brick building that served as a button making factory for over half a century. The Button Factory was designated in 1982 (By-law No. 82-62) as a property of cultural heritage value under Part IV of the Ontario Heritage Act. The designation by-law identifies the north façade (facing the trail/rail line) and the east façade (facing Regina Street South) as heritage attributes (Figure 1).

An elevator addition to the Button Factory is identified as a capital project for 2020. The The property at 25 Regina Street South known as the elevator will improve access to the arts and Button Factory. culture programming and services offered within the building and will address the City’s AODA objectives.

As part of the planning process for the new elevator, facilities and heritage planning staff, along with representatives from the Municipal Heritage Committee, conducted a site visit of the building to evaluate its interior and exterior features. Planning staff also conducted historical research about the property. Information gathered from the research and site visit was then compared to the existing designation by-law to determine whether the by-law provided sufficient detail and protection of the property’s heritage features.

2.0 Recommendation to Revise the Button Factory Designation By-law

As the owner of the Button Factory property, the City has an opportunity to demonstrate leadership in heritage conservation by ensuring that the building’s heritage features are preserved in accordance with the City’s Built Heritage Strategy, federal standards and guidelines for conserving historic places, and best practices. Staff are of the opinion that

Council Meeting Page 102 of 120 January 13, 2020 the existing designation by-law excludes important facades that contribute to the heritage value of the building and lacks sufficient detail about the building’s heritage attributes to guide future changes to the building. Staff and the Municipal Heritage Committee recommend an amendment to the original designation by-law to include a description of the reasons for designation (referred to as a Statement of Significance) and to broaden the list of heritage attributes to include additional features that were identified through a site visit and historical research. Details of the proposed amendment are provided in Appendix A. The proposed amendment to the by-law clearly identifies all heritage attributes and provides better guidance for future maintenance, renovation and restoration activities, including any design and construction work for an elevator. In addition, changes to the by-law conform to the 2019 Ontario Heritage Act, which requires a description of the reasons for designation and a listing of the property’s specific heritage attributes.

3.0 Implications of Revising the By-law

The proposed changes to the designation by-law are not anticipated to obstruct the City’s plans to construct an elevator, nor are they anticipated to add additional time or cost to the review and construction process. If amended, the designation by-law will help inform the planning and construction process for the elevator and ensure that the final design is sympathetic and compatible with the existing Button Factory.

Significant alterations to designated buildings, such as large exterior additions, require the submission of a Heritage Impact Assessment (HIA) by a qualified heritage consultant. In accordance with best practices and the City’s terms of reference for HIAs, an HIA must: • ensure that the proposed project considers the building’s heritage features and is sound and sympathetic in terms of design and construction • include an evaluation of all heritage features on a property including any previously unidentified features, and recommend any changes to the designation by-law based on that evaluation The attached evaluation and proposed amendments to the designation by-law would normally be required as part of an HIA. Since the work has already been carried out by staff in advance of the project’s design, staff will be able to scope the HIA, which in turn will reduce consultant time and costs.

Finally, amending the designation by-law provides an opportunity to demonstrate leadership in heritage conservation by ensuring that designation by-laws for City-owned buildings are up to date and reflect current research and provincial policy requirements. There is no clear heritage rationale for why the existing by-law excludes two visible facades that are almost identical to the designated facades in terms of age, materials, and architectural details (Figure 2). Adopting the revised designation by-law will help the City recognize and understand the value of this heritage asset and ensure its long term conservation and use.

Council Meeting Page 103 of 120 January 13, 2020 4.0 Process for Amending Designation By-laws under the Ontario Heritage Act

Under the Ontario Heritage Act, municipalities are enabled to amend a designation by- law to reflect new information about a property’s heritage value and/or to make it consistent with the requirements of the Act. Section 29(8) paragraph 2 of the Ontario Heritage Act requires that a designation by-law include a statement explaining the cultural heritage value or interest of the property and a description of the heritage attributes of the property. As the original designation by-law is from 1982, there is no statement of cultural heritage value and the by-law lacks a detailed description of heritage attributes. These issues can be addressed in a single amendment.

5.0 Consultation

The Municipal Heritage Committee reviewed the proposed update to the designation by- law (Appendix A) and passed the following resolution at their meeting on October 17, 2019:

Motion: “That the Municipal Heritage Committee supports the update to the designation by-law for the Button Factory at 25 Regina Street South, as amended”.

Facilities staff are also supportive of the changes to the designation by-law and recognize that the proposed changes will help inform and guide the design of a sympathetic addition that conserves the building’s heritage value and significant heritage attributes. The Manager of Arts and Culture and Executive Director of the Button Factory have also been informed of the proposed revisions to the designation by-law.

6.0 Conclusion

Based historical research and a review of the site, staff are of the opinion that the existing designation by-law (By-law No. 82-62) excludes important facades that contribute to the heritage value of the building and lacks sufficient detail about the building’s heritage attributes to guide future changes to the building. As a result, Staff recommend that Council amend By-law 82-62 to include a description of the reasons for designation (referred to as a Statement of Significance) and to broaden the list of heritage attributes, as set out in Appendix A.

Council Meeting Page 104 of 120 January 13, 2020 7.0 Recommendations

1. That staff report IPPW2019-070 be approved.

Prepared by:

Fredrick VanRooyen, BES Planning Division, IPPW

Council Meeting Page 105 of 120 January 13, 2020

Figure 1. View of the north and east façade of 25 Regina Street South.

Figure 2: View of south and west façade of 25 Regina Street South.

Council Meeting Page 106 of 120 January 13, 2020 APPENDIX A Statement of Significance for 25 Regina Street South

Legal Address: Part of Weaver Street Closed by By-law No. 71, Instrument No. 2312 and By-law No. 584, Instrument No. 12715 and Part of Lot 391, Registered Plan No. 385, designated as Part 2 on Plan 58R-3528. PIN: 224120021

Description of property – 25 Regina Street South, Waterloo 25 Regina Street South, the “Button Factory”, is located on the east side of Regina Street in Uptown Waterloo. The property contains a three-storey, buff brick building that served as a button making factory for over half a century.

Statement of Cultural Heritage Value or Interest Built ca. 1886 the Button Factory contains design value pertaining to its representative late 19th century Victorian Industrial architecture, evident in its front facing gable roof, rubblestone foundation, buff brick, iron anchor plates above the first floor, and distinctive fenestration. The building was designed in a utilitarian fashion, but is softened by a gable roof with a corbelled line of bricks under the eaves and segmentally arched windows and arched doors. The interior of the building also features turned wood columns and cast iron cap plates that are reflective of the style and manufacturing history.

The building has direct association with historic personalities and industrial developments that are significant to the community. The building was constructed by Richard Roschman, a German immigrant and button maker, who with his brother Rudolph established the business, Roschman and Brother. The button factory operated for over half a century, selling their buttons all over Canada and provided regular employment to as many as 100 local citizens. The building also features cast iron skylights, patented in 1870 by Emil Vogelsang, who, like Roschman, was a German immigrant who constructed button factories in Berlin (Kitchener). The Button Factory closed in 1946. The Ontario Glove Manufacturing Co. Ltd. subsequently purchased the site and remained there until 1957. Since 1993, the building has been occupied by the Waterloo Community Arts Centre.

Description of Heritage Attributes Key heritage attributes that embody the property’s design, historical and contextual values include:

Council Meeting Page 107 of 120 January 13, 2020 • The location and orientation of the building along the railway and facing Regina Street South

• All exterior façades of the building, including the following: o rubblestone foundation buff (yellow) brick facades and decorative and functional brick detailing, such as: . corbelled brickwork under the eaves . corner brick pilasters . thick, buttressed wall at the building base o gable roof and skylights o chimney o windows and window openings, including segmentally arched 4 over 4 windows and sills o doors and door openings, including wooden doors and arched glass transoms o iron anchor plates or tie rods above the first floor o sprinkler alarm on south elevation

• Interior and structural components of the building, including: o Turned wood columns and cast iron cap plates

Council Meeting Page 108 of 120 January 13, 2020 STAFF REPORT Planning

Title: Proposed Demolition of Residential Dwellings: 28 Dorset Street and 7 Princess Street West Report Number: IPPW2020-005 Author: Dominik Simpson Meeting Type: Council Meeting Council/Committee Date: January 13, 2020 File: N/A Attachments: Map 1 – Subject Lands Appendix ‘A’ – Building Renderings Ward No.: Ward 7, Uptown

Recommendations: 1. That Council approve report IPPW2020-005. 2. That Council grant relief from the requirement of subsection 7.b. of the Demolition Control Area By-law to allow for the demolition of the existing dwellings at 28 Dorset Street and 7 Princess Street West prior to obtaining Site Plan Approval.

A. Report D & A Limited Partnership (“the Applicant”) is requesting authorization from Council to demolish two (2) vacant residential dwellings at 28 Dorset Street and 7 Princess Street West (the “Lands”). In order to demolish the dwellings, relief is required from the City’s Demolition Control Area By-law No. 2013-014. The Demolition Control By-law is intended to: • prevent the premature loss of housing stock and the creation of vacant parcels of land; • retain existing residential dwellings, until redevelopment has been considered and site plans approved; • prevent the premature loss of assessment; • prevent block busting within residential neighbourhoods; • prohibit the use of demolition as a means to reduce maintenance costs; and • prohibit the use of demolition as a tactic to obtain zoning or other municipal approvals.

The Lands are located at the southeast corner of Dorset Street and Princess Street West. The two single detached dwellings currently located on the Lands have been vacant since 2015. The Demolition Control Area By-law requires that the redevelopment

Council Meeting Page 109 of 120 January 13, 2020 of the Lands be secured in terms of zoning and Site Plan Approval prior to demolition. However, the Applicant is seeking to demolish the two single detached dwellings on the Lands in advance of receiving Site Plan Approval for the purposes of: • facilitating hydro-related construction on-site; and • improving the overall safety and appearance of the site.

The Lands, combined with 26 Dorset Street, were previously subject to Zoning By-law Amendment Z-18-10, approved by Waterloo City Council on November 12, 2018. The application (Z-18-10) was advanced to permit the development of an 11 storey mixed- use building attached to the north facade of the existing 5 storey apartment building at 26 Dorset Street, with site specific provisions. The Applicant has recently submitted a Site Plan application (SP-19-19) to the City on November 6, 2019 to commence the final stages of planning approvals for the proposed development. For Council’s information, the Applicant has revised the design of the building since the Zoning By-law Amendment stage, but is intending to maintain the general massing and concept considered in the November 2018 submission (see Appendix ‘A’ for building renderings). The building currently under review with the City’s Site Plan Review Committee remains at 11 storeys and is proposed to contain 45 residential dwelling units (83 bedrooms) and approximately 185 square metres of ground floor commercial space. Staff advise that the design of the building will continue to be vetted through the Site Plan process to ensure alignment with City policies and guidelines. Staff have not yet taken a position of support regarding the site plan application, nor should Council’s decision on this report (IPPW2020-005) be construed as fettering the approval process for the site plan application.

Notwithstanding the Applicant’s current advancements with their development proposal mentioned above, they are requesting to demolish the existing residential dwellings on the Lands contrary to the provisions in the Demolition Control Area By-law.

As part of the redevelopment of the Lands, upgrades to the hydro infrastructure are required for servicing the new development, as well as providing services to the surrounding properties. In particular, another development in the area has been waiting for the upgraded services for approximately one year. The Applicant indicates that the existing driveway located on the south edge of the property (serving the existing apartment building at 26 Dorset Street) will be under construction to facilitate the hydro work, which is expected to commence prior to Site Plan Approval being obtained. If the existing dwellings on the Lands were to remain, vehicular circulation on the property and access to the existing parking will be challenging. Demolition of the homes at 28 Dorset Street and 7 Princess Street West will provide an alternative access route through the site via Princess Street West and assist in facilitating the hydro work.

Furthermore, the Applicant advises that as the dwellings have been vacant for a lengthy period of time, there is a concern that they will be subject to vandalism, which may negatively impact the surrounding neighbourhood and may create concerns of safety. As such, the Applicant intends to improve the overall safety and appearance of the site by requesting the demolition of the two dwellings.

Council Meeting Page 110 of 120 January 13, 2020

Pursuant to subsection 7.b. of the Demolition Control Area By-law, any property that is the subject of a site plan application must obtain Site Plan Approval from the Director of Planning prior to issuance of a demolition permit. As mentioned, the Applicant recently submitted a Site Plan application to the City. Due to the significant hydro works necessary on-site and timing of such to complete, in addition to the potential for vandalism to the unoccupied property within the Uptown Core, the Applicant is requesting relief from the requirement in the Demolition Control Area By-law to obtain Site Plan Approval prior to demolition, which requires Council’s authorization.

If Council supports the Applicant’s request, it should be made clear that: 1.) Council’s authorization to demolish the existing residential dwellings at 28 Dorset Street and 7 Princess Street West shall not be construed or interpreted as fettering the approval process for Site Plan Application SP-19-19; and 2.) Council’s authorization in this instance shall not be construed or interpreted as a precedent, and Council shall not be obligated to support any similar request in the future.

Subject to the preceding, the Planning Division, in consultation with the City’s Chief Building Official, does not object to the Applicant’s request. Waiving the requirement of obtaining Site Plan Approval (which may or may not be supported in whole or in part) prior to demolition will allow for the necessary hydro works to be completed to the benefit of multiple properties. Should the Applicant fail to substantially complete the replacement development within two years from the date the demolition permit is issued, a financial penalty of $40,000 ($20,000 x 2 residential dwelling units) will be collected pursuant with Section 33(7) of the Planning Act, unless otherwise determined by the Chief Building Official.

B. Financial Implications

Staff is not aware of any municipal financial implications with respect to this request.

C. Technology Implications

None.

(Guiding Principles: Equity and Inclusion; Sustainability; Fiscal Responsibility; Healthy and Safe Workplace; Effective Engagement; Personal Leadership; Service Excellence)

Council Meeting Page 111 of 120 January 13, 2020 General alignment with the “Healthy Community & Resilient Neighbourhoods” and “Economic Growth & Development” Strategic Objectives by improving the City’s physical environments and redeveloping underutilized properties.

E. Previous Reports on this Topic IPPW2018-065 (Zoning By-law Amendment Z-18-10, 26 & 28 Dorset Street and 7 Princess Street West, D&A Limited Partnership GP Inc.)

F. Approvals Name Signature Date Author: Dominik Simpson Director: Joel Cotter Commissioner: Cameron Rapp Finance: N/A CAO

Council Meeting Page 112 of 120 January 13, 2020

Proposed Demolition of Residential Dwellings: 28 Dorset Street and 7 Princess Street West IPPW2020-005

MAP 1 – SUBJECT LANDS

Council Meeting Page 113 of 120 January 13, 2020 APPENDIX ‘A’ Building Renderings

Zone Change Design Rendering – November 2018 (Edge Architects Ltd.)

Site Plan Application Rendering – December 2019 (Edge Architects Ltd.)

Council Meeting Page 114 of 120 January 13, 2020 STAFF REPORT Planning

Title: Request to Amend Section 37 Planning Act Agreement, 145 Columbia Street West Report Number: IPPW2020-006 Author: Laura Dewar Meeting Type: Council Meeting Council/Committee Date: January 13, 2020 File: n/a Attachments: Map 1 – Subject Lands Ward No.: 6 – Central Columbia

Recommendations:

2. That the form and content of the agreement to amend the Section 37 Planning Act Agreement (WR1123888) shall be to the satisfaction of the City’s Director of Legal Services;

3. That the Mayor and Clerk be authorized to execute the amending Section 37 Planning Act Agreement (WR1123888).

A. Report

The owner/developer of the lands at 145 Columbia Street West, 145 Columbia (Waterloo) Corp. (“the developer”), is requesting Council consent to amending the Section 37 Planning Act Agreement (“Section 37 Agreement”) registered on title to the subject property. The purpose of the request is to allow 21 additional bedrooms within the proposed mixed-use building and to advance site plan application SP-16-09.

In 2013, Council approved a zoning by-law amendment for the subject property and the adjacent property at 330 Phillip Street to facilitate a comprehensive redevelopment (refer to MAP 1). Through the application of a holding (H) provision, density bonusing was approved in exchange for community benefits, allowing 285 additional bedrooms to be constructed across the entirety of the lands.

Council Meeting Page 115 of 120 January 13, 2020 In 2014, a Section 37 Agreement was registered on title to 330 Phillip Street to secure those community benefits and the holding (H) symbol was lifted, allowing construction of a 25 storey mixed use building to proceed.

In 2018, a Section 37 Agreement was registered on title to 145 Columbia Street West to secure community benefits and the holding (H) symbol was lifted. This Agreement reflects an earlier iteration of the site plan (submitted in 2018) for a mixed use building containing 424 bedrooms (414 units) within 2 towers extending from a single podium. Including the podium, Tower “D” (closest to Columbia Street) is 15 storeys and Tower “C” is 20 storeys in height. The Site Plan Review Committee has conditionally endorsed Site Plan Application SP-16-09, including the Site Plan and Building Elevations. The Plans complied with the site specific zoning regulations introduced through By-law 2013-028 and an approved minor variance A-98/17 related to building height.

In December 2019, the developer submitted a revised Site Plan with 21 additional bedrooms (21 additional units) for a new total of 445 bedrooms and 435 units. There were no other substantive changes from the 2018 version of the Site Plan. The Site Plan Review Committee has conditionally endorsed this revised Site Plan submission, including the Site Plan and Building Elevations. The Plans comply with the site specific zoning regulations introduced through By-law 2013-028 and approved minor variance A-37/19 related to building height (the previously approved variance A-98/17 related to building height lapsed).

The following table gives a comparison of the density approved through site specific by- law 2013-028 and the density proposed in the 2018 and 2019 Site Plan submissions:

Table 1 Combined Properties 330 Phillip 145 Columbia Street 330 Phillip Street and 145 Street only West only Columbia Street West Total (Net) Area 1.502 ha Max Permitted 940 bedrooms/ha Density ss. 2013-028 Bedrooms 1411 (permitted by zoning) 866 (Built) 545 (permitted by zoning) 1290 (proposed 2018) 424 (proposed 2018) 1311 (proposed 2019) 445 (proposed 2019)

As illustrated in Table 1 above, site specific zoning by-law 2013-028 permits 545 bedrooms on the subject property (provided the density at 330 Philip Street is unchanged) subject to meeting all other zoning regulations, such as parking, building height and amenity space. The most recent 2019 Site Plan submission, proposing 445 bedrooms, contains 100 fewer bedrooms than the maximum permitted by the zoning.

In accordance with Section 7.1 of the Section 37 agreement, an amending agreement is required to allow the 21 additional bedrooms (beyond the 424 bedrooms referenced in the agreement). Therefore, Planning staff recommend Council consent to amending the Section 37 Agreement as follows: • all references to the number of bedrooms permitted from 424 to 445; and

Council Meeting Page 116 of 120 January 13, 2020 • the reference to the combined density of 330 Phillip Street and the subject property from 1290 bedrooms and 859 bedrooms/ha to 1311 and 872 bedrooms/ha respectively. The form and content of the amending agreement will be at the discretion of the City’s Director of Legal Services. The amount of financial securities taken will reflect current values for Section 37 Planning Act matters, to the satisfaction of the Director of Planning.

Staff notes any further requests for increases in building height and/or density (above what is currently permitted through the site specific zoning by-law and Committee of Adjustment approvals) would only be considered through a zoning by-law amendment application.

B. Financial Implications

Staff is not aware of any municipal financial implications with respect to this request.

C. Technology Implications

None.

(Guiding Principles: Equity and Inclusion; Sustainability; Fiscal Responsibility; Healthy and Safe Workplace; Effective Engagement; Personal Leadership; Service Excellence)

General alignment with the “Healthy Community & Resilient Neighbourhoods” and “Economic Growth & Development” Strategic Objectives by improving the City’s physical environments and redeveloping underutilized properties.

E. Previous Reports on this Topic

IPPW2018-024 Zoning By-law Amendment Z-18-06, 145 Columbia (Waterloo) Corp., for 145 Columbia Street West

F. Approvals

Name Signature Date Author: Director: Commissioner: Finance: CAO

Council Meeting Page 117 of 120 January 13, 2020

Request to Amend Section 37 Planning Act Agreement, 145 Columbia Street West

IPPW2020-006

MAP 1 – Subject Lands

145 Columbia St W (Subject Lands)

330 Phillip St

Council Meeting Page 118 of 120 January 13, 2020 NOTICE OF AN INFORMAL PUBLIC MEETING AND COMPLETE APPLICATION

Council Chambers, City Hall, Waterloo City Centre, 100 Regina St S Monday, January 13, 2020 At a time to be determined Official Plan Amendment No. 28 & Zoning By-law Amendment Z-19-07 Beechwood Co-operative Homes 693 Beechwood Drive, Ward 1

The Applicant is proposing to construct a five storey apartment building containing 32 units (32 bedrooms) on the interior of the property. The existing 78 townhouses, amenity building, and children’s playground will remain. To facilitate the development, the Applicant is proposing to amend the City’s Official Plan to permit an increase in building height from 12 metres to 16 metres. The Applicant is also proposing to amend Zoning By-law No. 2018-050 by re-zoning the lands from Residential Eight (R8) to Residential Nine (R9) with site specific provisions relating to building height, visitor parking and loading space requirements, building entrance location, interior lot line requirements, and driveway width.

If you wish to make a presentation to Council, please call 519.747.8549 prior to 10:00am on Monday, January 13, 2020, so that the necessary arrangements can be made to place you on the agenda. For more information about the meeting, please contact Kevin Gerlach at 519.747.8549 or email [email protected]

A written summary of the presentation should be filed with the City Clerk prior to the public meeting.

We encourage the public to provide input into these important Official Plan and Zoning By-law Amendment applications. Individuals may submit written / electronic comments. The public is informed and notified that names, addresses and comments may be made public. Olga Smith, City Clerk, City of Waterloo.

For further information regarding the above matter, please contact the City of Waterloo Integrated Planning and Public Works, 2nd Floor, Waterloo City Centre, Waterloo, Ontario, by calling Laura Dewar at 519.747.6108 or email [email protected]

Council Meeting Page 119 of 120 January 13, 2020 Council Meeting Page 120 of 120 January 13, 2020