Finance & Strategic Planning

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

FINANCE & STRATEGIC PLANNING COMMITTEE MEETING Monday, April 15, 2019 3:00 P.M.

AGENDA

Councillor Henry in the Chair

1. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF

2. APPROVAL OF MINUTES

a) March 18, 2019 – Finance & Strategic Planning Page 11 Committee Meeting Minutes

1. That the minutes of the Finance & Strategic Planning Committee Meeting held on Monday, March 18, 2019 be approved as printed.

3. PRESENTATION

a) Municipal Property Assessment Corporation Annual Update Jon Hebden, Account Manager – Zone 1, Municipal & Stakeholder Relations, Municipal Property Assessment Corporation (MPAC)

Finance & Strategic Planning Page 1 of 153 April 15, 2019 Committee Meeting b) Earth Day Presentation Peggy Stevens, Environmental Stewardship Coordinator

4. DELEGATION

a) UpTown Waterloo Business Improvement Area 2019 Page 22 Budget Approval

Presentation: Tracy VanKalsbeek, Executive Director, Uptown Business Improvement Area

Recommendation: 1. That Council approve the 2019 proposed budget for the UpTown Waterloo Business Improvement area, as presented.

5. CONSENT MOTION

That Consent Motion items (a) through (f) be approved.

a) Title: Release of Funding for 2019 Non- Page 25 Routine Facility Design & Management Report No.: COM2019-016 Prepared By: Alan McGregor & Mary Cathryn Lorentz

Recommendations: 1. That Council approve report COM2019-016.

2. That Council approve the release of funding of $191,000 for Space Planning Implementation for Material Storage, from the Capital Reserve Fund and Development Charges Reserve Funds, as per the approved 2019 Capital Budget ref. #282.

3. That Council approve the release of funding of $31,000 for Accessibility and Safety Upgrades from the Employee Development and Capacity Building Reserve (EMPDV), as per the approved 2019 Capital Budget ref.# 283.

4. That Council approve funding of $95,000 for enterprise wide security upgrades from the Employee Development and Capacity Building Reserve (EMPDV) as per the approved Capital Budget ref. # 286, project # 120023.

Finance & Strategic Planning Page 2 of 153 April 15, 2019 Committee Meeting b) Title: Station Area Implementation Funding Release Page 30 Report No.: IPPW2019-029 Prepared By: Chris Dedman

Recommendations: 1. That IPPW2019-029 be approved.

2. That capital funding for the Station Area Implementation in the amount of $567,000, funded $281,000 from the Capital Reserve Fund, and $286,000 from the Capital Infrastructure Renewal and Replacement Fund, be approved, as per the 2019 approved Capital Budget (ref. #641).

c) Title: 2019 Glasgow II Homes Association Page 34 (GIIHA) Special Service Levy Report No.: CORP2019-023 Prepared By: Paul Hettinga

Recommendations: 1. That Council approve Staff Report CORP2019-23.

2. That Council approve the Glasgow II Homes Association (“GIIHA”) 2019 municipal budgeted levy of $28,500 to fund the operating and capital costs of the GIIHA recreation facility and programs; and,

3. That Council adopt the By-law attached as Appendix A to this report for the imposition of a Special Services Levy on the rateable properties prescribed therein.

d) Title: By-law to Authorize the Borrowing Page 43 for Temporary Loans Report No.: CORP2019-024 Prepared By: Paul Hettinga

Recommendations: 1. That Council approve CORP2019-024.

2. That Council approves the borrowing for temporary loans, if required, not to exceed an aggregate of $83,217,000 to meet the current expenditures for 2019.

Finance & Strategic Planning Page 3 of 153 April 15, 2019 Committee Meeting 3. That Council adopt the By-law attached as Appendix A to this report for the establishment of borrowing limits.

4. That Council directs staff to report back on amount and terms should temporary borrowing be required.

e) Title: 2019 Beechwood II Homes Association (BIIHA) Page 47 Special Service Levy Report No.: CORP2019-021 Prepared By: Paul Hettinga

Recommendations: 1. That Council approve CORP2019-021.

2. That Council approve the Beechwood II Homes Association (“BIIHA”) 2019 municipal budgeted levy of $81,236 to fund the operating and capital costs of the BIIHA recreation facility and programs; and,

3. That Council adopt the By-law attached as Appendix A to this report for the imposition of a Special Services Levy on the rateable properties prescribed therein.

f) Title: 2019 Beechwood South Homes Page 58 Association (BHSA) Special Service Levy Report No.: CORP2019-022 Prepared By: Paul Hettinga

Recommendations: 1. That Council approve CORP2019-022.

2. That Council approve the Beechwood South Homes Association (“BSHA”) 2019 municipal budgeted levy of $78,375 to fund the operating and capital costs of the BSHA recreation facility and programs; and,

3. That Council adopt the By-law attached as Appendix A to this report for the imposition of a Special Services Levy on the rateable properties prescribed therein.

Finance & Strategic Planning Page 4 of 153 April 15, 2019 Committee Meeting 6. STAFF REPORTS

a) Title: Ontario Regulation 435/17 Transient Page 72 Accommodation Tax Report No.: CAO2019-014 Prepared By: Brad Witzel, Adam Lauder

Correspondence: 1. Waterloo Economic Development Page 90 Advisory Committee 2. Minto Schneider, Explore Waterloo Page 91 Region

Presentation: Tim Anderson, Chief Administrative Officer

Delegation: Nancy J. Keizer, General Manager, Radisson Hotel Kitchener Waterloo & Board Chair, Waterloo Region Tourism Marketing Corporation

Recommendations: 1. That Council approve report CAO2019-014.

2. That Waterloo City Council approves the establishment of a bylaw for implementation of a mandatory 4% Municipal Accommodation Tax for hotels in the City of Waterloo effective July 1st, 2019; subject to equivalent approvals by the other lower tier municipalities in Waterloo Region.

3. That Council approve the 50%(WRTMC) / 40%(City) / 10% (Region) revenue sharing model as outlined within this report.

4. That staff be directed to create a Reserve Fund Policy to segregate the City’s portion of the Municipal Accommodation Tax revenue for uses outlined in Appendix B of this report.

5. That the Mayor and Clerk be delegated authority to enter into an agreement with the Waterloo Regional Tourism Marketing Corporation to collect the revenues on behalf of the Waterloo Region area municipalities and for the use of 50% of the Municipal Accommodation Tax funds by WRTMC. (Note: Administration costs to be deducted prior to distribution of funds).

Finance & Strategic Planning Page 5 of 153 April 15, 2019 Committee Meeting 6. That the Mayor and Clerk be delegated authority to enter into other agreements as may be required to administer and govern work to be funded from the MAT.

7. That staff/WRTMC report back in 2020 to Council on the progress of the new Municipal Accommodation Tax.

8. And further, that a joint study be undertaken by WRTMC and the municipal partners in 2022 with respect to the effectiveness of the program to inform potential program refinements at that time.

b) Title: Parkview Chapel and Crematorium - Page 92 Future Considerations Report No.: COM2019-011 Prepared By: Jeff Silcox-Childs & Susan Boldt

Presentation: Jeff Silcox-Childs, Director, Environment and Parks Services

Recommendations: 1. That Council approve report COM2019-011.

2. That Council direct staff to proceed with a public engagement process regarding the future options for the Parkview Chapel and Crematorium and report back on the outcomes.

c) Title: Asset Management Legislation Update Page 101 Report No.: CAO2019-017 Prepared By: Cassandra Pacey

Recommendations: 1. That Council approve CAO2019-017 as information.

d) Title: Waterloo Memorial Recreation Complex - Page 107 Alignment of Planned Retrofit Work with Facility Expansion Report No.: COM2019-014 Prepared By: Kevin Van Ooteghem & Kim Reger

Recommendations: 1. That Council approve report COM2019-014.

Finance & Strategic Planning Page 6 of 153 April 15, 2019 Committee Meeting 2. That Council approve the advancement of routine funding from the 2019 Approved Capital Budget ref. #290 and transfer to WMRC project #180011, budgeted as:

a) a.$594,000 in 2020 be advanced to 2019 b) b.$486,000 in 2021 be advanced to 2019

3. That Council approve the following project balances be moved to WMRC project#180011:

a) a.$597,539 from project #180108, RIM Park & AMCC Roof b) b.$100,000 from project#110014, Energy Management Upgrades c) c.$430,000 from project#160163, WPL Mechanical Upgrades d) d.$232,257 from project#160182, WMRC Feasibility Study

e) Title: 2019 Business Improvement Area Levy Page 120 Report No.: CORP2019-019 Prepared By: Paul Hettinga

Recommendations: 1. That Council approve Staff Report CORP2019-019.

2. That Council adopt the By-Law attached as Appendix A to this report for imposition of a Special Levy on the rateable properties prescribed within the UpTown Waterloo BIA Area Map Schedule B,

3. That Council approve the UpTown Waterloo BIA 2019 estimate of $657,759 to fund the operating and capital costs of the Board of Management for UpTown Waterloo Business Improvement Area.

f) Title: 2019 General Tax Levy Page 125 Report No.: CORP2019-020 Prepared By: Paul Hettinga

Recommendations: 1. That Council approve CORP2019-020

Finance & Strategic Planning Page 7 of 153 April 15, 2019 Committee Meeting 2. That Council adopt the 2019 General Levy By-law attached as Appendix A to this report based on a municipal levy of $74,950,822.

g) Title: Uptown Community Improvement Plan (CIP) Page 136 Continuation of the Façade Improvement Grant Bump-Up Report No.: CAO2019-015 Prepared By: Rachel Martin

Recommendations: 1. That Council approve CAO2019-015.

2. That Council approve the continuation of the Façade Improvement Grant Bump-Up for properties within the BIA boundary for 2019 as requested by the BIA Board.

3. That Council approve the 2019 maximum Façade Improvement Grant available to non-residential buildings within the BIA boundary to be $20,000 per street-facing façade and $30,000 per corner lots.

h) Title: RFT19-02 2 Year Asphalt Paving, Page 142 Concrete Repairs and 2019 RIM Park Pavilion Site Servicing Report No.: IPPW2019-025 Prepared By: Kevin Zach

Recommendations: 1. That IPPW2019-025 be approved.

2. That Council approves the award of tender RFT19-02 to Ekum Sekum Incorporated, also known as Brantco Construction, at the lowest submitted price of $5,599,142.89 plus non-recoverable HST in the amount of $98,544.91, for a total award value of $5,697,687.80.

3. That the Mayor and Clerk be authorized to sign the Agreement between The Corporation of the City of Waterloo and Ekum Sekum Incorporated, and any other documents related to this project, subject to the satisfaction of the City Solicitor.

Finance & Strategic Planning Page 8 of 153 April 15, 2019 Committee Meeting i) Title: Award of RFT19-04 – Emergency Black Pipe Page 146 Sewer Lateral Replacement Report No.: IPPW2019-031 Prepared By: Roy Garbotz

Recommendations: 1. That IPPW2019-031 be approved.

2. That Council approve the award of RFT19-04 – Emergency Black Pipe Sewer Lateral Replacement to McGillivray Trenchless (2017) Limited for the submitted price of $1,173,740 plus unrecoverable HST in the amount of $20,658 for a total award value of $1,194,398.

3. That the Mayor and Clerk be authorized to sign the Agreement between The Corporation of the City of Waterloo and McGillivray Trenchless (2017) Limited, and any other documents related to this project, subject to the satisfaction of the City’s Director of Legal Services.

j) Title: Award of RFT19-03 – 2019 Sidewalk and Trail Page 150 Construction Report No.: IPPW2019-030 Prepared By: Chris Dedman

Recommendations: 1. That IPPW2019-030 be approved.

2. That Council approve the award of RFT 19-03 – 2019 Sidewalk and Trail Construction to 410754 Ontario Limited o/a Sousa Concrete for the submitted price of $628,097.00 plus unrecoverable HST in the amount of $11,054.50 for a total award value of $639,151.50

3. That the Mayor and Clerk be authorized to sign the Agreement between The Corporation of the City of Waterloo and 410754 Ontario Limited o/a Sousa Concrete, and any other documents related to this project, subject to the satisfaction of the City’s Director of Legal Services.

7. CONSIDERATION OF NOTICE OF MOTION GIVEN A PREVIOUS MEETING None

Finance & Strategic Planning Page 9 of 153 April 15, 2019 Committee Meeting 8. NOTICE OF MOTION None

9. COMMUNICATIONS AND CORRESPONDENCE None

10. REGIONAL INFORMATION AND CORRESPONDENCE None.

11. UNFINISHED BUSINESS

12. NEW BUSINESS i. Delegations ii. Items removed from Consent Motion to be dealt with separately iii. Staff Reports iv. Other Business

13. QUESTIONS

14. ADJOURNMENT

Finance & Strategic Planning Page 10 of 153 April 15, 2019 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 57 March 18, 2019

A meeting of the Finance & Strategic Planning Committee of The Corporation of the City of Waterloo was held on March 18, 2019 at 2:01 p.m. in the Council Chambers, 100 Regina Street South, Waterloo, Ontario

FINANCE & STRATEGIC PLANNING COMMITTEE MEETING Monday, March 18, 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 Henry 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. MOMENT OF REFLECTION

Mayor Jaworsky opened with a statement regarding the tragic events in Christchurch, New Zealand, on Friday, March 14.

Finance & Strategic Planning Page 11 of 153 April 15, 2019 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 58 March 18, 2019 3. APPROVAL OF MINUTES

a) February 11, 2019 – Finance & Strategic Planning Committee 2019 Budget Meeting Minutes

Moved by Mayor Jaworsky, seconded by Councillor Vasic:

1. That the minutes of the Finance & Strategic Planning Committee 2019 Budget Meeting held on Monday, February 11, 2019 be approved as printed.

Carried Unanimously

4. CONSENT MOTION

Moved by Councillor Vieth, seconded by Councillor Bonoguore:

That Consent Motion items (a) through (c) be approved.

Carried Unanimously

a) Title: Emerald Ash Borer Management Plan Implementation Report No.: COM2019-004 Prepared By: Tim Wolfe

1. That Council approve report COM2019-004.

2. That Council approves capital funding in 2019 of $319,000 from the Capital Infrastructure Reinvestment Reserve Fund (CIRRF) for the Emerald Ash Borer Management Plan Implementation project 120060 (ref 254).

Carried Unanimously

b) Title: Funding Release – Alexandra Park Expansion Report No.: COM2019-007 Prepared By: Andrea Bazler

1. That Council approve report COM2019-007.

2. That the 2019 capital budget funding for the Alexandra Park Expansion project 150009 (Ref #222), in the amount of $206,000 funded from the Parkland Dedication Reserve Fund, be released as per the approved 2019 Capital Budget. Carried Unanimously

Finance & Strategic Planning Page 12 of 153 April 15, 2019 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 59 March 18, 2019 c) Title: Demolition Control Application 2018 Summary Report No.: IPPW2019-022 Prepared By: Beth Maxwell

1. That IPPW2019-022 be received as information.

Carried Unanimously

5. STAFF REPORTS

a) Title: Mary Allen Park Public Art Project Report No.: CAO2019-011 Prepared By: Sonya Poweska

Sonya Poweska, Culture Program Specialist reviewed the report and responded to questions from Council

Moved by Councillor Bonoguore, seconded by Councillor Vieth:

1. That CAO2019-011 be approved.

2. That Council approve the release of $10,000 from the Public Art Reserve #870012 in accordance with the Public Art Policy (A-018) 1% for art allocation in Mary Allen Park.

Carried Unanimously

b) Title: Asset Management Policy Update Report No.: CAO2019-006 Prepared By: Cassandra Pacey

Cassandra Pacey, Manager, Asset Management reviewed the report and responded to questions from Council.

Moved by Councillor Hanmer, seconded by Mayor Jaworsky:

1. That Council approve CAO2019-006.

2. That Council amend the A-030 policy name to Strategic Asset Management Policy.

3. That Council approve the revised Corporate Policy A-030 Strategic Asset Management Policy attached as Appendix A.

Finance & Strategic Planning Page 13 of 153 April 15, 2019 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 60 March 18, 2019 4. That Council appoint the Chair of Finance & Strategic Planning to the Asset Management Steering Committee.

Carried Unanimously

c) Title: Asset Management Journey Report No.: CAO2019-010 Prepared By: Cassandra Pacey & Brad Witzel

Cassandra Pacey, Manager, Asset Management and Brad Witzel, Budget Analyst reviewed the report and responded to questions from Council.

Moved by Mayor Jaworsky, seconded by Councillor Bonoguore:

1. That CAO2019-010 be received as information.

Carried Unanimously

d) Title: Waterloo Park Master Plan Implementation 2019 Project Priorities Report No.: COM2019-008 Prepared By: Anna lee Sangster

Anna lee Sangster, Landscape Architect introduced Amanda Stellings, Chair of Waterloo Park Advisory Committee.

Amanda Stellings, Chair, Waterloo Park Advisory Committee provided an overview of the recent Waterloo Park initiatives, and Gordon Greavette, Member of Waterloo Park Advisory Committee introduced Council to the 2019 project priorities.

Moved by Councillor Bonoguore, seconded by Councillor Hanmer:

1. That Council approve report COM2019-008.

2. That the 2019 capital funding for Waterloo Park Master Plan Implementation #150011 (Ref #249) in the amount of $530,000 with $212,000 from the Development Charges Reserve Fund (DC) and $318,000 funded from the Capital Reserve Fund (CRF) be released, as per the approved 2019 capital budget.

3. That Council direct staff to advance the detailed design, public consultation process, and first phase of implementation of park- wide wayfinding signage.

Finance & Strategic Planning Page 14 of 153 April 15, 2019 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 61 March 18, 2019 4. That Council direct staff to advance functional design, and public consultation of the two entries to Waterloo Park – the entry east of Laurier-Waterloo Park LRT Station along Seagram Drive and the entry area from Erb Street and Caroline Street intersection near the Visitor and Heritage Information Centre.

Carried Unanimously

e) Title: Award of Tender RFT18-25 Neilson Avenue Reconstruction Report No.: IPPW2019-019 Prepared By: Caroline Amyot

Moved by Councillor Vasic, seconded by Councillor Vieth:

1. That IPPW2019-019 be approved.

2. That Council approve the award of RFT 18-25 – Nielson Ave Reconstruction to Terracon Underground Ltd. for the lowest submitted price of $1,323,575.29 plus unrecoverable HST in the amount of $23,294.93, for a total award value of $1,346,870.22.

3. That the Mayor and Clerk be authorized to sign the Agreement between The Corporation of the City of Waterloo and Terracon Underground Ltd., and any other documents related to this project, subject to the satisfaction of the City’s Director of Legal Services.

Carried Unanimously

f) Title: Annual Statement of Remuneration and Expenses for Elected Officials Report No.: CORP2019-013 Prepared By: Rhonda Bell

Moved by Mayor Jaworsky, seconded by Councillor Freeman:

1. That CORP2019-013 be received as information.

Carried Unanimously

g) Title: 2019 Budget Process Debrief Report No.: CORP2019-018 Prepared By: Filipa Reynolds and Tony Iavarone

Finance & Strategic Planning Page 15 of 153 April 15, 2019 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 62 March 18, 2019 Filipa Reynolds, Deputy CFO & Director, Financial Planning & Tony Iavarone, Director, Corporate Communications provided a summary of the 2019 budget process and public engagement.

Ms. Reynolds led Council through questions relating to the budget process and public engagement in order to receive feedback and provided an overview of next steps.

Question #1: The Budget in Brief was a new publication, was it valuable? Responses (4 of 8 voted yes) Mayor Jaworsky - YES Councillor Hanmer - SOMEWHAT Councillor Bodaly - SOMEWHAT Councillor Vieth - SOMEWHAT Councillor Freeman - NO Councillor Vasic - YES Councillor Henry - YES Councillor Bonoguore – YES

Verbal Feedback from Council with respect to Question #1: Councillor Freeman: stop doing Councillor Hanmer: found useful however needs tweaks to include why we are doing things Councillor Bonoguore: found useful as an overview of the budget however found it did not answer specific questions relating to the budget. Provides good information on how the budget works.

Councillor Freeman left the meeting: (Time: 3.17 p.m.)

Councillor Bodaly: elements in document are valuable and could be used in other documentation (e.g. business plans). Suggest incorporating department priorities within the budget.

Councillor Freeman returned to the meeting: (Time: 3.21 p.m.)

Councillor Vasic: found useful and wants to keep the Budget in Brief in some sort of capacity. Councillor Henry: good synopsis. Excellent tool for communicating the budget especially via social media and for media questions.

Question #2: Was the Operating Book effective? Responses (8 of 8 voted yes) Mayor Jaworsky - YES Councillor Hanmer - YES Councillor Bodaly - YES Councillor Vieth - YES Councillor Freeman - YES

Finance & Strategic Planning Page 16 of 153 April 15, 2019 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 63 March 18, 2019 Councillor Vasic - YES Councillor Henry - YES Councillor Bonoguore - YES

Verbal Feedback from Council with respect to Question #2: Councillor Bonoguore: found Operating Book confusing and navigating tables difficult. Suggest on Budget Day Council have ability to choose menu items for discussion and list items that all agree on then vote based on Council’s priority. Councillor Freeman: referred to Operating Book many times. Alignment between menu items and corporate business plans was very helpful for discussion purposes with staff. Councillor Vieth: found Operating Book helpful especially tax comparisons. Questioned the meaning of the word “menu” and its relevance to the budget. Councillor Henry: found Operating Book helpful for navigating on Budget Day. Suggest Strategic Plan links and alignment be shown at the top of each page within the Operating Book.

Question #3: Were operating documents easy to find online? Responses (7 of 8 voted yes) Mayor Jaworsky - YES Councillor Hanmer - YES Councillor Bodaly - YES Councillor Vieth - YES Councillor Freeman - YES Councillor Vasic - YES Councillor Henry - SOMEWHAT Councillor Bonoguore - YES

Verbal Feedback from Council with respect to Question #3: Councillor Vieth: easy to find online Councillor Hanmer: easy to follow and helpful Councillor Freeman: liked it online. Liked hard copies that were distributed which made it easier to refer to when asked questions by ward constituents Councillor Bonoguore: used online materials all the time. Good information for the public. More detail on the budget request sheets about risk and impacts would be helpful if matter is deferred Councillor Vasic: would be helpful if online documents were linked to the menu # when referring to the budget item Councillor Henry: suggest including link to Operating Book within information paragraph on the website so it is easier to find. Individual budget requests should include column that show existing budget figures

Finance & Strategic Planning Page 17 of 153 April 15, 2019 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 64 March 18, 2019 Question #4: Was the Capital Book effective? Responses (8 of 8 voted yes) Mayor Jaworsky - YES Councillor Hanmer - YES Councillor Bodaly - YES Councillor Vieth - YES Councillor Freeman - YES Councillor Vasic - YES Councillor Henry - YES Councillor Bonoguore - YES

Verbal Feedback from Council with respect to Question #4: Mayor Jaworsky: all data and level of detail within Capital Book was helpful. Having information online very useful. Councillor Bonoguore: found the itemized funding sources very helpful Councillor Bodaly: did not use online material preferred hard copy of Capital Book which was used extensively and included reference notes Councillor Freeman: hard copy of Capital Book utilized extensively and included reference notes Councillor Henry: itemized items in Capital Book were very helpful. Suggest rolling up expenses for an item (e.g. parkland dedication - include all projects within the budget that impact parkland dedication)

Question #5: Were capital documents easy to find online? Responses (8 of 8 voted yes) Mayor Jaworsky - YES Councillor Hanmer - YES Councillor Bodaly - YES Councillor Vieth - YES Councillor Freeman - YES Councillor Vasic - YES Councillor Henry - YES Councillor Bonoguore - YES

Verbal Feedback from Council with respect to Question #5: Councillor Vasic: suggest referencing supplementary documents in online documents

Finance & Strategic Planning Page 18 of 153 April 15, 2019 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 65 March 18, 2019 Question #6: Was the Business Plan document useful? Responses (4 of 8 voted yes) Mayor Jaworsky - YES Councillor Hanmer - YES Councillor Bodaly - SOMEWHAT Councillor Vieth - YES Councillor Freeman - YES Councillor Vasic - SOMEWHAT Councillor Henry - NO Councillor Bonoguore - SOMEWHAT

Verbal Feedback from Council with respect to Question #6: Councillor Freeman: Business Plan (BP) ties into the Strategic Plan (SP) and allocates financial resources to carry out strategic initiatives. Menu items included in the BP were very useful. Suggest putting a footnote on project sheets as it relates to the BP per year (e.g. 2019/2020, 2020/2021, 2021/2022) Councillor Bodaly: agrees with comments made by Councillor Freeman. Suggest clearly outlining how the BP ties directly to the operating and capital line items Mayor Jaworsky: really likes the BP and uses it extensively when interacting with constituents Councillor Bonoguore: did not use the BP very much or find it helpful. Noticed some department-listed projects did not go forward however, more context was needed. Councillor Vasic: liked the key priorities outlined in the BP. Found the forecasting/budget overview did not overlap or make sense. Councillor Henry: Some references in BP were not in either the budget or link well with budget process. BP need to link to the SP or it is a useless document.

Question #7: Council feedback regarding the various budget meeting dates.

Council advised the timing was good regarding Council Meetings during the 2019 budget approval process.

Question #8: Was there an effective variety of promotional channels used to reach the public in a timely way?

Finance & Strategic Planning Page 19 of 153 April 15, 2019 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 66 March 18, 2019 Responses (1 of 8 voted yes) Mayor Jaworsky - SOMEWHAT Councillor Hanmer - SOMEWHAT Councillor Bodaly - NO Councillor Vieth - SOMEWHAT Councillor Freeman - YES Councillor Vasic - NO Councillor Henry - SOMEWHAT Councillor Bonoguore - NO

Verbal Feedback from Council with respect to Question #8: Councillor Bonoguore: constituents are interested on the impact to household budget and how the budget ties into matters of interest to them (e.g. active transportation). Realize it is difficult to get information out to the public. Councillor Freeman: difficult to get public interested in the budget. Advertising does not work. We know the public want us to come to them. Staff have tried different methods (e.g. Mayor’s Levy, facilitated sessions with the public, online, etc.) but there is little interest. Councillor Vasic: suggest looking through a particular lens by going to the universities, retirement homes, schools, specific groups, etc. to get the word out to the public. Councillor Bodaly: communication on the budget needs to come from Council especially from a ward perspective – getting the word out. Mayor Jaworsky: need to have the public engaged in the budget process. Agrees Council needs to promote budget. Councillor Hanmer: What is the message we are trying to get out to the public. Building budget to obtain input from public before release of budget. Councillor Vieth: if the public is interested in the budget they will find the means to be informed. Social media is important aspect of getting the word out to the public. Councillor Henry: affirmation from the public that they know what we are doing/not doing. Key summary as to what we heard from the public with respect to what is a priority. Menu options that include keeping tax increase at a certain level or include items in Strategic Plan. Suggest referring to last three (3) year budget (2015-2018) process for reference.

Finance & Strategic Planning Page 20 of 153 April 15, 2019 Committee Meeting Finance & Strategic Planning Committee Meeting Minutes Page 67 March 18, 2019 Question #9: Any other Council feedback regarding the budget? Councillor Bodaly: how close were we to previous approved budgets and how does the current 2019 align with previous budgets.

Moved by Councillor Freeman, seconded by Councillor Bodaly:

1. That CORP2019-018 be approved.

2. That Council receive this summary of the budget communications survey as information; and

3. That Council members provide individual feedback on the 2019 budget process as described within CORP2019-018 and in Appendix A to influence the next three year (2020-2022) budget process.

Carried Unanimously

6. ADJOURNMENT

Moved by Councillor Vasic, seconded by Councillor Bodaly:

That the meeting adjourn. (Time: 4:48 p.m.)

Carried Unanimously

READ AND APPROVED, April 15, 2019

Mayor

City Clerk

Finance & Strategic Planning Page 21 of 153 April 15, 2019 Committee Meeting Budget 2018 REVENUE Membership Levy 617,729 Levy Adjustments Investment Income 22,000 City of Waterloo rent reimbursement 8,604 UpTown Trails (3 at 50 each X $27 ea.) Other Income 6,000 Total Revenue 654,333

EXPENSES Payroll Budget 2018 Salaries 243,000 EI/CPP/WSIB Benefits 13,500 Total Payroll 256,500

Administration Accounting/Banking Fees/ Penalties Consulting Fees Computers/software Courier HST Recoverable Internet/Email Meetings - Board, Committees Memberships, Dues & Fees Miscellaneous New Business Welcome Flowers Office Insurance/Directors Liability Office Supplies Phone/Cell Rent (includes hydro, parking CAM Fees) Staff/Board Development & Conferences Stationary Strategic Planning Total Administration 46,604

Marketing Institutional Advertising 2,100 COW Activity Guide 1,200 Chamber of Commerce Directory 400 Waterloo Region Marketing Corp 500

Social Media Advertising (incl. tracking tools & Mail Chimp) 10,000

Co-op Advertising 20,000

Events 85,430 Event Presence 2,230 Business Excellence Awards Comedy Festival 1,000 Intl Woman's Day Mayor's State of the City Address Waterloo Busker Carnival 5,000 Inspiring Women Event Jazz Festival 15,000 Zonta Film Festival Annual General Meeting 1,500 Winterloo 4,000 Open Streets 4,000 Solstice Sampling 2,500 Lumen 4,000 Amplify Conference 600 True North Waterloo 2,500 Farmer's Market -

Finance & Strategic Planning Page 22 of 153 April 15, 2019 Committee Meeting 2019 ION Crawl with DTK

Oktoberfest 4,100 Advertising 100 A Blooming Affair 200 Barrel Race 800 SausageFest - Octoberlicious 1,500 Ride, Dine 'N' Stein Thanksgiving Parade 1,500

Christmas 39,000 Christmas Advertising/Direct Mail 3,000 UpTown Dollars 500 Printing/Signage - Entertainment 15,000 Wonders of Winter 500 Co-op Advertising 20,000

BIA Programs 33,500 Hand in Hand 25,000 Music UpTown 8,000 UpTown Dollar Reprints/Donation 500 Retail Seminars - Banners - print ($30K in 2020 - after rebrand)

Construction and Recovery Programs 101,500 Advertising Campaigns - Welcome Back 80,000 Spotlight UpTown Waterloo 20,000 General Meetings and Signage 1,500 CTV Made Right Here Swag & Branded Promotional Materials

Other Marketing Items $ 22,500.00 Business Directory 3,000 Direct Mail 13,600 Event Photography 1,200 Sp. Promo/Events/Graphic Design 2,700 UpTown Dollar Donations 500 Highway Signage (increase in 2019) 500 Rebrand (2019 only) UpTown Trails (3 at 50 ppl @ $3 ea.) Uptown Waterloo Retail Strategy Website 1,000 Total Marketing 275,030

Beautification Banner Installation & Repair 3,000 Banners-refurbish/store/insure 3,000 Bike Racks - Christmas - refurbish/store/insure 3,000 Christmas - installed & removal 10,000 Floral program 42,000 Electrical/Tree Lights - Graffiti - proactive removal - pilot w COW 8,000 Maintenance 24,800 Total Beautification 93,800

Parking - Bauer Lot 1,000

Community Outreach/Engagement 10,000

Advocacy 5,000

Operational Reserves

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Amortization 18,000

Other Total Expenses 705,934

Net Revenue (Expenditure) - 51,601

Accumulated Net Revenue

Capital Expenses

Streetscape Upgrades 302,500

Parking North of Erb 143,990

Total Capital Projects 446,490

Reserves at Close of 2017 1,542,332 Budgeted Reduction of Reserves 2018 498,091 Reduction of Capital Reserves 400,000

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STAFF REPORT Facility Design & Management Services

Title: Release of Funding for 2019 Non-Routine Capital Projects – Facility Design & Management Report Number: COM2019-016 Author: Alan McGregor, Construction Project Manager Mary Cathryn Lorentz, Project Coordinator Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: N/A Attachments: None Ward No.: City Wide

Recommendation:

1. That Council approve report COM2019-016.

A. Executive Summary

The purpose of this report is to seek Council approval to release funding for three non-routine 2019 capital projects.

Capital funding is requested via this report to initiate three projects: • Space Planning Implementation for Material Storage o To address significant storage shortfalls in two (2) main areas at the Manulife Sportsplex and Healthy Living Centre, RIM Park.

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• Accessibility and Safety Upgrades o Accessible parking serving The Clay and Glass Gallery is located at the rear of the building. There is no sidewalk adjacent to the accessible parking spots and users must travel a significant distance to get to the front entrance. The existing bus lay-by which is very rarely used will be converted to several accessible parking spaces.

• Enterprise Wide Security Upgrades o Staff began the process of implementing the work required from the security assessment beginning with the high risk items. Funding from 2019 will allow the implementation to continue.

B. Financial Implications

The approved 2019 Capital Budget includes funding: • $191,000 in funding for the Space Planning Implementation for Material Storage, budget ref. #282 • $31,000 in funding accessibility and safety upgrades, budget ref. #283 • $95,000 in funding for enterprise wide security upgrades, budget ref. #286, project #120023

C. Technology Implications None

D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)

Infrastructure Renewal: These projects will improve our ability to properly serve the needs of our customers, greatly improve our efficiency and address safety concerns.

E. Previous Reports on this Topic None

F. Approvals

Name Signature Date

Author: Al McGregor March 29, 2019

Director: Sunda Siva March 29, 2019 Commissioner: Mark Dykstra Finance: Kim Reger CAO

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Release of Funding for 2019 Non-Routine Capital Projects – Facility Design & Management COM2019-016

Background:

Storage shortfalls have been identified by staff at the Manulife Sportsplex and Healthy Living Centre in order to improve operational efficiencies and to address major storage concerns identified by several of the main user groups. In consultation with these user groups and staff, areas have been identified and agreed upon where the best new storage locations should be located that will meet the needs of both the City and the user groups.

The Canadian Clay and Glass Gallery has identified major concerns pertaining to the lack of accessible parking close to the Main Entrance to the building for a number of years. After consultation with City staff, a location has been identified where accessible parking can be provided at an appropriate location close to the Main Entrance that will provide those requiring accessible parking a much safer and more convenient location and where there will be no impact on the current parking situation or to the operations and access to either the Canadian Clay and Glass Gallery or to the Perimeter Institute.

The security work that will be competed in 2019 is a continuation of the security plan that was originally implemented in 2014, with work for each year being identified on a prioritized basis. The City is now in the sixth year of the original 10-year security plan for City facilities and is on target to complete the required work by year-10.

1. Space Planning Implementation for Material Storage:

Staff have identified a great need to address significant storage shortfalls in two (2) main areas at the Manulife Sportsplex and Healthy Living Centre, RIM Park.

The first area of concern relates to the storage of user-group equipment that is currently located in Rink 3 in a separate lock-up room. This room is filled to capacity and has resulted in the protective mats for speed skating being stored along the back wall of that rink.

The recommended solution for this problem is to construct a new addition along the North wall of Rink 3 that would allow the new space to be inter-connected to the existing User Group Storage Room. This will provide heated and secure storage space that would be located in the most desirable location to serve its function.

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The second area of concern relates to the storage of the plywood and protective floor covering that serves the Fieldhouse. At present, this floor covering is stored in two (2) trailers that are located adjacent to the Loading Dock at the N-W corner of the building. The trailers are in extremely poor condition to the point that they are unsafe and are not water-tight and should be replaced.

To address this problem on a more permanent basis, staff are recommending that the trailers be removed and disposed of, with a permanent addition being constructed along the North wall of the Fieldhouse. This would provide storage of these materials in a location much closer and far more convenient to the Fieldhouse, where they are being utilized.

With the removal of the temporary trailers, space will be cleared for the addition of the new Storage Room area for the User-Group equipment.

2. Accessibility and Safety Upgrades:

At present, the Accessible parking serving the Canadian Clay and Glass Gallery is located at the rear of the building. There is no sidewalk adjacent to the accessible parking spots and users must travel a significant distance from their parking spot and travel around the building to get to the front entrance of the building, which is the only means of wheelchair access to the building.

Staff are recommending that the existing bus lay-by (located on the East side of the building) which is very rarely used, be converted to several accessible parking spaces. This will provide safe parking spots with an adjacent sidewalk that is as close to the front entrance to the building.

3. Enterprise Wide Security Upgrades:

In 2012, staff was directed to conduct an assessment of City of Waterloo facilities relating to the safety and security of the facility, the staff that work in them and the visitors, guests and customers that use them. A complete inspection of all facilities was performed during peak and non-peak business hours, interviews conducted with all City staff and detailed findings were completed with budgetary estimates of the items that needed to be addressed.

The assessment was completed in 2014, at which time staff began to classify the report results based on a High, Medium and Low Health and Safety Risk. After being assigned a risk level, an implementation schedule was put together to have all items addressed over a 10 year period in order to reduce the financial impact, while keeping staff and visitors to our facilities as safe as possible. High risk items were to be completed in the first three (3) years, Medium in years four (4) to six (6), and Low in years seven (7) to ten (10).

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On 2014 staff began the process of implementing the work required from the security assessment beginning with the High risk items. Staff is requiring that the 2019 funds be released in order that the implementation can continue across various City facilities in different aspects of our security hardware and software and staff training programs.

Financial Implications:

The release of the approved 2019 capital budget funding is being requested for the following projects:

1. Space Planning Implementation and Material Storage – budget ref. #282 $191,000 2. Accessibility and Safety Upgrades – budget ref. #283 $31,000 3. Enterprise Wide Security Upgrades – budget ref. #286 $95,000

Description Report Approval Date Expenditures Number *(incl. HST) Funding: 2019 - Funding Ref. 282 COM2019-016 April 15th, 2019 $(191,000) 2019 - Funding Ref. 283 COM2019-016 April 15th, 2019 $(31,000) 2019 - Funding Ref. 286 COM2019-016 April 15th, 2019 $(95,000) Total Funding $(317,000) Expenditures: Expenditures incurred $0 Projected Expenditures: RFP Total Project Expenses $317,000

Finance & Strategic Planning Page 29 of 153 April 15, 2019 Committee Meeting 1 Integrated Planning & Public Works

STAFF REPORT Transportation Services

Title: Station Area Implementation Funding Release Report Number: IPPW2019-029 Author: Chris Dedman Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: [File] Attachments: [Attachments] Ward No.: 4,6 and 7

Recommendation:

1. That IPPW2019-029 be approved.

A. Executive Summary

The purpose of this report is to seek Council’s approval of funding to initiate the detailed design of various streets surrounding the newly constructed ION Stations. The purpose of the designs is to enhance the streetscape and provide continuous active transportation routes that connect to the ION Stations.

B. Financial Implications

The total project funding is expected to be $747,000 from the Capital Reserve Fund (CRF) and Capital Infrastructure Renewal and Replacement Fund (CIRFF). The funding of $567,000 was approved in the 2019 Capital Budget. The remainder of the funding in the amount of $180,000 will be included for Council’s consideration in the 2020-2022 Capital Budget.

The balance for the 2019 budget of capital funds of 762,000 in Parkland Dedication funds will be requested at a future date. An increase in operating costs have been budget to start in 2026.

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C. Technology Implications

There are no technology implications with this report.

D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)

Multi-modal Transportation • Improve public transit access • Create ION Station area hubs • Add more complete streets

Infrastructure Renewal • Leverage ION development to improve infrastructure

E. Previous Reports on this Topic

IPPW2017-034 Station Area Planning – Official Plan Amendment No. 14

F. Approvals

Name Signature Date Author: Chris Dedman Director: Christine Koehler Commissioner: Cameron Rapp Finance: Susan Boldt CAO

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Station Area Implementation Funding Release IPPW2019-029

Background

In June of 2017 City Council approved the Station Area Plan report. The staff report references the funding that was allocated in the 2016-2019 Capital Budget and the 2020-2022 Capital Budget. The Station Area Plan highlighted five Station Area Plans that included: Laurier-Waterloo Park Station, University of Waterloo Station, Research and Technology Station, Northfield Station and Conestoga Station.

The Station Area Plan called out specific roads that would act as links to the ION Stations, through streetscape improvements, widening sidewalks or adding sidewalks, constructing multi-use trails and adding cycling infrastructure. The detailed design for the first stage of the Station Area Implementation will focus on these key streets and blocks:

• Seagram Drive (University Avenue to Albert Street) • Conestogo Road (Northfield Drive to King Street) • Hazel Street (Columbia Street to Albert Street) • Phillip Street (University Avenue to Albert Street) • Frank Tompa Drive (Hagey Boulevard to the Laurel Trail)

The Station Area Plan document highlights these roads and sections in various areas throughout the report. The following Key Directions relate specifically to the roads listed above:

• Seagram Drive is to “undertake public realm improvements along Seagram Drive to better support travel for pedestrians, cyclists and transit riders” • Conestogo Road is to “Develop Conestogo Road as a cycling street” and, “Install sidewalks along both sides of Conestogo Road, with a minimum of 1.8m” • Hazel Street is to “Extend the Bearinger Road bike lanes east of Albert Street along Hazel Street to connect with Sugarbush Park and the Columbia neighbourhood” and, “Re-balance Hazel Street over time, consistent with the typical multi-modal street sections to increase space for pedestrians, cyclists and street planting” • Phillip Street is to “Establish a maximum lane width of 3.5m and reallocate the extra space to create minimum bike lanes of 1.8m, a minimum boulevard width of 1.8m and minimum sidewalk width of 1.8m”

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• Frank Tompa Drive is to “Establish an enhanced east-west greenway linking the west side of the R & T Park to the Laurel Trail”

The above road sections will link residential and employment areas directly to the ION Stations. The addition of sidewalks, multi-use trails, cycling infrastructure and streetscape enhancements will provide citizens the connectivity, safety and choice to travel to and from the ION Stations.

Project Schedule

The design phase will include public consultation, social media outreach and stakeholder engagement expected to start in spring of 2019. It is anticipated that the initial phase of designs would be completed by the end of summer 2019. Further public consultations and design are expected to be completed by February 2020, with tendering and construction to follow, pending Council approval of project funding as part of the 2020-2022 Capital Budget.

Financial Implications

In February 2019, Council approved the 2019 Capital Budget. The released 2019 capital funds in the amount of $567,000 will be used to commence the design and public consultation process for the five road sections around the Station Areas. The remaining budget will be used to start construction of some of these road sections.

Table 1: Funding Approvals to Date and Estimated Costs: Report Approval Description $ Amount* Number Date Funding: 2019 Funding IPPW2019-029 Apr 15/19 ($567,000) Total Funding ($567,00) Expenditures: Projected Costs (includes but not limited to): design & public consultation, construction, $567,000 contract admin, overhead, contingency Total Projected Expenditures $567,000 TOTAL $0 *Note: non-recoverable portion of HST included

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STAFF REPORT Finance

Title: 2019 GIIHA Special Service Levy Report Number: CORP2019-023 Author: Paul Hettinga Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: N/A Attachments: Appendix “A” 2019 GIIHA Special Service Levy Ward No.: Ward 6

Recommendation:

1. THAT Council approve Staff Report CORP2019-23.

2. THAT Council approve the Glasgow II Homes Association (“GIIHA”) 2019 municipal budgeted levy of $28,500 to fund the operating and capital costs of the GIIHA recreation facility and programs; and,

3. THAT Council adopt the By-law attached as Appendix A to this report for the imposition of a Special Services Levy on the rateable properties prescribed therein.

A. Executive Summary

The Special Service Levy is intended to raise funds needed for the Association to carry out its obligations under the terms and condition of its License and Operating agreement that enable the GIIHA the use and quiet enjoyment of its facility.

On January 22, 2019, at the GIIHA’s Annual General Meeting (AGM), the membership and executive approved a municipal budget levy of $28,500 that was needed for its program delivery plans for 2019. Finance staff has received the AGM minutes, insurance coverage certificate and approved budget for 2019.

B. Financial Implications

The Special Service Levy is calculated and based on the first $100,000 of assessment of real property. A flat rate of $475 (2017 – N/A) will be added to the tax bill of each member of the association and collected in a like manner as taxes.

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The City will charge an administrative fee of approximately $285 which has been factored into the GIIHA’s budgeted levy.

C. Technology Implications

None

D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)

E. Previous Reports on this Topic

CORP2018-008 – Glasgow II Homes Association Inc. Special Service Area Levy Vote Results – January 29, 2018

F. Approvals

Name Signature Date Author: Paul Hettinga Director: Paul Hettinga Commissioner: Keshwer Patel Finance: Keshwer Patel CAO

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2019 GIIHA Special Service Levy CORP2019-023

Appendix A

THE CORPORATION OF THE CITY OF WATERLOO BY-LAW NO. 2019 – XX

BY-LAW TO LEVY A SPECIAL LOCAL MUNICIPALITY LEVY ON THE RATEABLE PROPERTY IN THE GLASGOW II HOMES ASSOCIATION AREA FOR THE TAXATION YEAR 2019

WHEREAS Section 326 of the Municipal Act, 2001, S.O. 2001, c. 25, as amended (the “Municipal Act”), provides that a municipality may by by-law: (a) identify a special service, (b) determine which of the costs of the municipality are related to that special service, (c) designate the area of the municipality in which the residents and property owners receive or will receive an additional benefit from the service, (d) determine the portion and set out the method of determining the portion of the costs, and (e) determine whether all or a specified portion of the additional costs shall be raised by a special local municipality levy on rateable property within the designated area;

AND WHEREAS the Glasgow II Homes Association Inc. (the “Association”) has requested that the Corporation of the City of Waterloo (the “City”) enact such a by-law to provide special services such as swimming, tennis and other recreational opportunities to members of the Association within the Association’s geographic area (the “Area”), the full cost of which is to be recovered by the City through a special local municipality levy on all rateable property within the Area;

AND WHEREAS City Council, at its meeting of January 29, 2018, agreed to enact such a by-law and approved entering into a lease and operating agreements (the “Agreements”) with the Association for the use and operation of certain lands in the Area for such special services;

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AND WHEREAS the City and the Association have executed those agreements;

AND WHEREAS the special local municipality levy will be calculated in accordance with the annual operating budget for the special services as submitted by the Association Inc. and approved by City Council;

NOW THEREFORE the Council of the Corporation of the City of Waterloo hereby ENACTS AS FOLLOWS:

1. Definitions: In this By-law,

a) “Association” means the Glasgow II Homes Association Inc. and includes any successor corporation or organization;

b) “City” means the Corporation of the City of Waterloo;

c) “City Treasurer” means the Treasurer of the City;

d) “Designated Area” means that area shown on Schedule “A”, attached to and forming a part of this By-law, and designated under section 2 of this By-law to receive Special Services;

e) “Special Services” means swimming, tennis and any other recreational services provided by the Association within the Designated Area, the costs of which are to be provided by the City to the Association through the Special Services Levy;

f) “Special Services Levy” means the special local municipality levy imposed under this By-law against all rateable properties set out in Schedule “B”, attached to and forming a part of this By-law, in the Designated Area to cover the costs of providing and administering the Special Services;

g) “Tax” or “taxes” means any sum payable for the purposes of the special services levy.

2. The Designated Area is hereby designated as an area to receive Special Services.

3. The City shall pay to the Association the costs of providing the Special Services.

4. The City hereby establishes a Special Services Levy to recover the costs of providing the Special Services to the Designated Area.

5. The City Treasurer shall calculate all amounts payable for the Special Services Levy based on the annual budget submitted by the Association as approved by City Council. The Special Services Levy shall take the form of a levy imposed on

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the first $100,000.00 for real property of a residential tax class assessment within the Designated Area.

6. For the year 2019, the approved annual budget for the Association totals $28,500 in special service levy. ($475/member)

7. The City Treasurer shall determine the dates on which the installment payments are due for the Special Services Levy for the rateable properties within the Designated Area.

8. A penalty of 1.25% shall be added on all taxes of the Special Services Levy which are in default on the first day of default, and thereafter a penalty of 1.25% per month will be added on the first day of each and every month the default continues, until December 31st, 2019.

9. On all taxes in default on January 1st, 2020, interest shall be added at the rate of 1.25% per month for each month or fraction thereof in which the default continues.

10. Penalties and interest added in default shall become due and payable and shall be collected as if the same had originally been imposed and formed part of such unpaid tax levy.

11. If a Court of competent jurisdiction should declare any section or part of the section of this by-law to be invalid, such section or part of a section shall not be construed as having persuaded or influenced Council to pass the remainder of this by-law and it is hereby declared that the remainder of this by-law shall be valid and shall remain in full force and effect.

12. The City Treasurer may mail, or cause the same to be mailed to the residence or of such person indicated on the last revised assessment roll, a written or printed notice specifying the amount of taxes payable.

13. All such taxes are payable at the City of Waterloo Municipal Office, 100 Regina Street South, Waterloo, Ontario.

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This by-law shall come into force and effect on the date of its final passing.

Enacted this day of ______, 2019.

Approval Date Print Name Initials Blank Signature

Corp D. Jaworsky, Mayor Legal Finance O. Smith, City Clerk

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SCHEDULE “A”

The Designated Area

Hereto attached a map of the Designated Area, designated to receive Special Services

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ROLL Number CIVIC ADDRESS LEGAL DESC 301603048000700 103 CRAIGSTON PL PLAN 1460 LOT 33 301603048000200 104 CRAIGSTON PL PLAN 1460 LOT 24 301603048000800 105 CRAIGSTON PL PLAN 1460 LOT 32 301603048000300 106 CRAIGSTON PL PLAN 1460 LOT 25 301603048000900 107 CRAIGSTON PL PLAN 1460 LOT 31 301603048000400 108 CRAIGSTON PL PLAN 1460 LOT 26 301603048001000 109 CRAIGSTON PL PLAN 1460 LOT 30 301603048000500 110 CRAIGSTON PL PLAN 1460 LOT 27 301603048001100 111 CRAIGSTON PL PLAN 1460 LOT 29 301603048000600 112 CRAIGSTON PL PLAN 1460 LOT 28 301603191500600 171 SILVERCREST DR PLAN 1460 LOT 44 301603191500700 173 SILVERCREST DR PLAN 1460 LOT 45 301603191500800 175 SILVERCREST DR PLAN 1460 LOT 46 301603191500900 177 SILVERCREST DR PLAN 1460 LOT 47 301603191501000 179 SILVERCREST DR PLAN 1460 LOT 48 301603191501100 181 SILVERCREST DR PLAN 1460 LOT 49 301603191501200 183 SILVERCREST DR PLAN 1460 LOT 50 301603191501300 185 SILVERCREST DR PLAN 1460 LOT 51 301603191501400 187 SILVERCREST DR PLAN 1460 LOT 52 301603191500200 188 SILVERCREST DR PLAN 1460 LOT 60 301603191501500 189 SILVERCREST DR PLAN 1460 LOT 53 301603191500300 190 SILVERCREST DR PLAN 1460 LOT 59 301603191501600 191 SILVERCREST DR PLAN 1460 LOT 54 301603191500400 192 SILVERCREST DR PLAN 1460 LOT 58 301603191501700 193 SILVERCREST DR PLAN 1460 LOT 55 301603191500500 194 SILVERCREST DR PLAN 1460 LOT 57 301603191501800 195 SILVERCREST DR PLAN 1460 LOT 56 301603197500400 104 STONEHAVEN DR PLAN 1460 LOT 1 301603197500500 106 STONEHAVEN DR PLAN 1460 LOT 2 301603197500600 108 STONEHAVEN DR PLAN 1460 LOT 3 301603197500700 110 STONEHAVEN DR PLAN 1460 LOT 4 301603197500800 112 STONEHAVEN DR PLAN 1460 LOT 5 301603197500900 114 STONEHAVEN DR PLAN 1460 LOT 6 301603197501000 116 STONEHAVEN DR PLAN 1460 LOT 7 301603197501100 118 STONEHAVEN DR PLAN 1460 LOT 8 301603197501200 120 STONEHAVEN DR PLAN 1460 LOT 9 301603197501300 122 STONEHAVEN DR PLAN 1460 LOT 10 301603197501400 124 STONEHAVEN DR PLAN 1460 LOT 11 301603197501500 126 STONEHAVEN DR PLAN 1460 LOT 12 301603197501600 128 STONEHAVEN DR PLAN 1460 LOT 13 301603197501700 130 STONEHAVEN DR PLAN 1460 LOT 14 301603197501800 132 STONEHAVEN DR PLAN 1460 LOT 15 301603197501900 134 STONEHAVEN DR PLAN 1460 LOT 16 301603197502000 136 STONEHAVEN DR PLAN 1460 LOT 17 301603197502100 138 STONEHAVEN DR PLAN 1460 LOT 18

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ROLL Number CIVIC ADDRESS LEGAL DESC 301603197502200 140 STONEHAVEN DR PLAN 1460 LOT 19 301603197502300 142 STONEHAVEN DR PLAN 1460 LOT 20 301603197502400 144 STONEHAVEN DR PLAN 1460 LOT 21 301603197502500 146 STONEHAVEN DR PLAN 1460 LOT 22 301603197502600 148 STONEHAVEN DR PLAN 1460 LOT 23 301603197502700 150 STONEHAVEN DR PLAN 1460 LOT 34 301603197502800 154 STONEHAVEN DR PLAN 1460 LOT 35 301603197502900 156 STONEHAVEN DR PLAN 1460 LOT 36 301603197503000 158 STONEHAVEN DR PLAN 1460 LOT 37 301603197503100 160 STONEHAVEN DR PLAN 1460 LOT 38 301603197503200 162 STONEHAVEN DR PLAN 1460 LOT 39 301603197503300 164 STONEHAVEN DR PLAN 1460 LOT 40 301603197503400 166 STONEHAVEN DR PLAN 1460 LOT 41 301603197503500 168 STONEHAVEN DR PLAN 1460 LOT 42 301603197503600 170 STONEHAVEN DR PLAN 1460 LOT 43

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STAFF REPORT Finance

Title: Bylaw to Authorize the Borrowing for Temporary Loans Report Number: CORP2019-024 Author: Paul Hettinga Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: N/A Attachments: Appendix A By-law to authorize the borrowing for temporary loans Ward No.: City-wide

Recommendation: 1. That Council approve CORP2019-024. 2. That Council approves the borrowing for temporary loans, if required, not to exceed an aggregate of $83,217,000 to meet the current expenditures for 2019. 3. That Council adopt the By-law attached as Appendix A to this report for the establishment of borrowing limits. 4. That Council directs staff to report back on amount and terms should temporary borrowing be required.

A. Executive Summary

Section 407 of the Municipal Act allows a municipality to authorize temporary borrowing, until the taxes are collected and other revenues are received, in the amount Council considers necessary to meet the current expenditures. This section also sets out the limits that temporary borrowing must not exceed. The attached by-law sets out the limits and terms of this temporary borrowing for the City of Waterloo for 2019.

B. Financial Implications

The borrowing by-law is required as part of the documentation under our banking agreement. While the borrowing bylaw allows for short term borrowing, in reality, the cash position of the City is managed to avoid any borrowings and incurring interest expense on short term loans.

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C. Technology Implications

D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)

E. Previous Reports on this Topic

CORP2016-102 Bylaw to Authorize the Borrowing for Temporary Loans

F. Approvals

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

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Bylaw to Authorize the Borrowing for Temporary Loans CORP2019-024

Appendix A

THE CORPORATION OF THE CITY OF WATERLOO

BY-LAW NO. 2019 –

BY-LAW TO AUTHORIZE THE BORROWING FOR TEMPORARY LOANS.

WHEREAS it may be deemed necessary by the Council of the Corporation of the City of Waterloo to borrow funds to meet, until the taxes for the year 2019 are collected and other revenues received, the current expenditures of the corporation for the year, including the amounts required for sinking fund, principal and interest falling due within the year upon any debt of the Corporation, school purposes, special rates purposes and for any board, commission or body and other purposes for which the Corporation is required by law to provide, as authorized by section 407 of The Municipal Act, 2001 S.O. 2001, c.25, as amended;

AND WHEREAS the total amount of the estimated revenues of the Corporation, as set forth in the budget for the year 2019, not including revenues derivable or derived from any borrowing, including through any issue of debentures; a surplus, including arrears of taxes, fees or charges; or a transfer from the capital fund, reserve funds or reserves; is $166,434,000;

AND WHEREAS the total amount that may be borrowed at any one time plus any outstanding amounts of principal borrowed and accrued interest under the provisions of subsection 2, of section 407 of The Municipal Act, 2001 is from January 1 to September 30 in the year, 50 per cent of the total estimated revenues of the municipality as set out in the budget adopted for the year, and from October 1 to December 31 in the year, 25 per cent of the total estimated revenues of the municipality as set out in the budget adopted for the year.

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THEREFORE THE MUNICIPAL COUNCIL OF THE CORPORATION OF THE CITY OF WATERLOO ENACTS AS FOLLOWS:

1. That the Mayor and the Treasurer are hereby authorized on behalf of the Corporation to borrow, from time to time, a sum not exceeding $83,217,000 from January 1, 2019 to September 30, 2019 and $41,608,500 from October 1, 2019 to December 31, 2019 to meet, until the taxes are collected, the current expenditures of the Corporation for the year. That the promissory notes shall be sealed with the seal of the Corporation and shall be signed by the Mayor and Treasurer. That the monies so borrowed may bear interest at the interest rate specified in the Corporation’s banking agreement.

2. Repeal By-Law(s) where appropriate.

3. This by-law shall come into force and effect on the date of its final passing.

Enacted this day of , 2019.

Approval Date Print Name Initials Blank Signature

Corp D. Jaworsky, Mayor

Legal

Finance O. Smith, City Clerk

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STAFF REPORT Finance

Title: 2019 BIIHA Special Service Levy Report Number: CORP2019-021 Author: Paul Hettinga Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: N/A Attachments: Appendix “A” 2019 BIIHA Special Service Levy Ward No.: Ward 6

Recommendation:

1. THAT Council approve CORP2019-021.

2. THAT Council approve the Beechwood II Homes Association (“BIIHA”) 2019 municipal budgeted levy of $81,236 to fund the operating and capital costs of the BIIHA recreation facility and programs; and,

3. THAT Council adopt the By-law attached as Appendix A to this report for the imposition of a Special Services Levy on the rateable properties prescribed therein.

A. Executive Summary

On November 20, 2018, at the BIIHA’s Annual General Meeting (AGM), the membership and executive approved a municipal budget levy of $81,236 that was needed for its program delivery plans for 2019. Finance staff has received the AGM minutes, insurance coverage certificate and approved budget for 2019.

B. Financial Implications

The Special Service Levy is calculated and based on the first $100,000 of assessment of real property. A flat rate of $446.35 (2017 - $446) will be added to the tax bill of each member of the association and collected in a like manner as taxes.

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The City will charge an administrative fee of approximately $812 which has been factored into the BIIHA’s budgeted levy.

C. Technology Implications

None

D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)

E. Previous Reports on this Topic

CORP2018-022 – 2018 BIIHA Special Service levy – April 16, 2018

F. Approvals

Name Signature Date Author: Paul Hettinga Director: Paul Hettinga Commissioner: Keshwer Patel Finance: Keshwer Patel CAO

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2019 BIIHA Special Service Levy CORP2019-021

Appendix A

THE CORPORATION OF THE CITY OF WATERLOO BY-LAW NO. 2019 – XX

BY-LAW TO LEVY A SPECIAL LOCAL MUNICIPALITY LEVY ON THE RATEABLE PROPERTY IN THE BEECHWOOD II HOMES ASSOCIATION AREA FOR THE TAXATION YEAR 2019

AND WHEREAS the Beechwood II Homes Association Inc. (the “Association”) has requested that the Corporation of the City of Waterloo (the “City”) enact such a by-law to provide special services such as swimming, tennis and other recreational opportunities to members of the Association within the Association’s geographic area (the “Area”), the full cost of which is to be recovered by the City through a special local municipality levy on all rateable property within the Area;

AND WHEREAS City Council, at its meeting of November 7, 2007, agreed to enact such a by-law and approved entering into a lease and operating agreements (the “Agreements”) with the Association for the use and operation of certain lands in the Area for such special services;

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AND WHEREAS the City and the Association have executed those agreements;

NOW THEREFORE the Council of the Corporation of the City of Waterloo hereby ENACTS AS FOLLOWS:

1. Definitions: In this By-law,

a) “Association” means the Beechwood II Homes Association Inc. and includes any successor corporation or organization;

b) “City” means the Corporation of the City of Waterloo;

c) “City Treasurer” means the Treasurer of the City;

d) “Designated Area” means that area shown on Schedule “A”, attached to and forming a part of this By-law, and designated under section 2 of this By-law to receive Special Services;

g) “Tax” or “taxes” means any sum payable for the purposes of the special services levy.

2. The Designated Area is hereby designated as an area to receive Special Services.

3. The City shall pay to the Association the costs of providing the Special Services.

4. The City hereby establishes a Special Services Levy to recover the costs of providing the Special Services to the Designated Area.

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the first $100,000.00 for real property of a residential tax class assessment within the Designated Area.

6. For the year 2019, the approved annual budget for the Association totals $81,236 in special service levy. ($446.35/member)

7. The City Treasurer shall determine the dates on which the installment payments are due for the Special Services Levy for the rateable properties within the Designated Area.

9. On all taxes in default on January 1st, 2020, interest shall be added at the rate of 1.25% per month for each month or fraction thereof in which the default continues.

10. Penalties and interest added in default shall become due and payable and shall be collected as if the same had originally been imposed and formed part of such unpaid tax levy.

13. All such taxes are payable at the City of Waterloo Municipal Office, 100 Regina Street South, Waterloo, Ontario.

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This by-law shall come into force and effect on the date of its final passing.

Enacted this day of ______, 2019.

Approval Date Print Name Initials Blank Signature

Corp D. Jaworsky, Mayor Legal Finance O. Smith, City Clerk

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SCHEDULE “A”

The Designated Area

Hereto attached a map of the Designated Area, designated to receive Special Services

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SCHEDULE “B” RATEABLE PROPERTIES

Roll_NUMBERS STREET_NO STREET_NAME 040040028000000 21 ACADEMY CRES 040040031000000 43 ACADEMY CRES 041280029000000 21 COMBERMERE CRES 041280010000000 28 COMBERMERE CRES 041370035000000 304 CRAIGLEITH DR 041370038000000 314 CRAIGLEITH DR 041370040000000 320 CRAIGLEITH DR 041370121000000 321 CRAIGLEITH DR 041370043000000 326 CRAIGLEITH DR 041370128000000 333 CRAIGLEITH DR 041370047000000 334 CRAIGLEITH DR 043321063000000 271 OLD POST RD 043570002000000 14 POST HORN PL 040040022000000 50 ACADEMY CRES 041280039000000 55 COMBERMERE CRES 041370034000000 302 CRAIGLEITH DR 041370141000000 359 CRAIGLEITH DR 040040003000000 12 ACADEMY CRES 040040004000000 14 ACADEMY CRES 040040025000000 15 ACADEMY CRES 040040005000000 16 ACADEMY CRES 040040026000000 17 ACADEMY CRES 040040006000000 18 ACADEMY CRES 040040027000000 19 ACADEMY CRES 040040007000000 20 ACADEMY CRES 040040008000000 22 ACADEMY CRES 040040029000000 23 ACADEMY CRES 040040009000000 24 ACADEMY CRES 040040010000000 26 ACADEMY CRES 040040011000000 28 ACADEMY CRES 040040012000000 30 ACADEMY CRES 040040030000000 31 ACADEMY CRES 040040013000000 32 ACADEMY CRES 040040014000000 34 ACADEMY CRES 040040015000000 36 ACADEMY CRES 040040016000000 38 ACADEMY CRES 040040017000000 40 ACADEMY CRES 040040018000000 42 ACADEMY CRES 040040019000000 44 ACADEMY CRES 040040020000000 46 ACADEMY CRES 040040032000000 47 ACADEMY CRES 040040021000000 48 ACADEMY CRES 040040033000000 49 ACADEMY CRES 040040034000000 51 ACADEMY CRES 040040023000000 52 ACADEMY CRES 040040035000000 53 ACADEMY CRES 040040024000000 54 ACADEMY CRES 040040036000000 55 ACADEMY CRES 040690004000000 15 BRAEBURN PL 040690011000000 16 BRAEBURN PL

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Roll_NUMBERS STREET_NO STREET_NAME 040690006000000 17 BRAEBURN PL 040690012000000 18 BRAEBURN PL 040690007000000 19 BRAEBURN PL 040690013000000 20 BRAEBURN PL 041280024000000 11 COMBERMERE CRES 041280025000000 13 COMBERMERE CRES 041280003000000 14 COMBERMERE CRES 041280026000000 15 COMBERMERE CRES 041280004000000 16 COMBERMERE CRES 041280027000000 17 COMBERMERE CRES 041280005000000 18 COMBERMERE CRES 041280028000000 19 COMBERMERE CRES 041280006000000 20 COMBERMERE CRES 041280007000000 22 COMBERMERE CRES 041280008000000 24 COMBERMERE CRES 041280030000000 25 COMBERMERE CRES 041280009000000 26 COMBERMERE CRES 041280011000000 30 COMBERMERE CRES 041280012000000 32 COMBERMERE CRES 041280031000000 33 COMBERMERE CRES 041280013000000 34 COMBERMERE CRES 041280032000000 35 COMBERMERE CRES 041280014000000 36 COMBERMERE CRES 041280033000000 37 COMBERMERE CRES 041280015000000 38 COMBERMERE CRES 041280016000000 40 COMBERMERE CRES 041280017000000 42 COMBERMERE CRES 041280034000000 43 COMBERMERE CRES 041280018000000 44 COMBERMERE CRES 041280019000000 46 COMBERMERE CRES 041280035000000 47 COMBERMERE CRES 041280020000000 48 COMBERMERE CRES 041280036000000 49 COMBERMERE CRES 041280021000000 50 COMBERMERE CRES 041280037000000 51 COMBERMERE CRES 041280038000000 53 COMBERMERE CRES 041280022000000 54 COMBERMERE CRES 041370031000000 296 CRAIGLEITH DR 041370111000000 297 CRAIGLEITH DR 041370032000000 298 CRAIGLEITH DR 041370112000000 299 CRAIGLEITH DR 041370033000000 300 CRAIGLEITH DR 041370113000000 301 CRAIGLEITH DR 041370114000000 303 CRAIGLEITH DR 041370036000000 308 CRAIGLEITH DR 041370037000000 312 CRAIGLEITH DR 041370116000000 313 CRAIGLEITH DR 041370117000000 315 CRAIGLEITH DR 041370118000000 317 CRAIGLEITH DR 041370039000000 318 CRAIGLEITH DR 041370119000000 319 CRAIGLEITH DR 041370041000000 322 CRAIGLEITH DR 041370122000000 323 CRAIGLEITH DR 041370042000000 324 CRAIGLEITH DR

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Roll_NUMBERS STREET_NO STREET_NAME 041370123000000 325 CRAIGLEITH DR 041370044000000 328 CRAIGLEITH DR 041370126000000 329 CRAIGLEITH DR 041370127000000 331 CRAIGLEITH DR 041370129000000 335 CRAIGLEITH DR 041370048000000 336 CRAIGLEITH DR 041370130000000 337 CRAIGLEITH DR 041370131000000 339 CRAIGLEITH DR 041370132000000 341 CRAIGLEITH DR 041370052000000 342 CRAIGLEITH DR 041370133000000 343 CRAIGLEITH DR 041370053000000 344 CRAIGLEITH DR 041370134000000 345 CRAIGLEITH DR 041370054000000 346 CRAIGLEITH DR 041370135000000 347 CRAIGLEITH DR 041370055000000 348 CRAIGLEITH DR 041370136000000 349 CRAIGLEITH DR 041370056000000 350 CRAIGLEITH DR 041370137000000 351 CRAIGLEITH DR 041370057000000 352 CRAIGLEITH DR 041370138000000 353 CRAIGLEITH DR 041370058000000 354 CRAIGLEITH DR 041370139000000 355 CRAIGLEITH DR 041370059000000 356 CRAIGLEITH DR 041370140000000 357 CRAIGLEITH DR 041370060000000 358 CRAIGLEITH DR 041370142000000 361 CRAIGLEITH DR 043320005000000 333 OLD POST CROSSING 043321002000000 270 OLD POST RD 043321003000000 272 OLD POST RD 043321064000000 273 OLD POST RD 043321004000000 274 OLD POST RD 043321065000000 275 OLD POST RD 043321005000000 276 OLD POST RD 043321066000000 277 OLD POST RD 043321006000000 278 OLD POST RD 043321067000000 279 OLD POST RD 043321068000000 281 OLD POST RD 043321069000000 283 OLD POST RD 043321010000000 284 OLD POST RD 043321070000000 285 OLD POST RD 043321011000000 286 OLD POST RD 043321071000000 287 OLD POST RD 043321014000000 290 OLD POST RD 043321074000000 295 OLD POST RD 043321015000000 296 OLD POST RD 043321075000000 297 OLD POST RD 043321016000000 298 OLD POST RD 043321076000000 299 OLD POST RD 043321017000000 302 OLD POST RD 043321018000000 304 OLD POST RD 043321078000000 305 OLD POST RD 043321019000000 306 OLD POST RD 043321079000000 307 OLD POST RD

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Roll_NUMBERS STREET_NO STREET_NAME 043321019010000 308 OLD POST RD 043321080000000 309 OLD POST RD 043321019020000 310 OLD POST RD 043321081000000 311 OLD POST RD 043321019030000 312 OLD POST RD 043321082000000 313 OLD POST RD 043321019040000 314 OLD POST RD 043321083000000 315 OLD POST RD 043321019050000 316 OLD POST RD 043321086000000 317 OLD POST RD 043321087000000 319 OLD POST RD 043321088000000 321 OLD POST RD 043570007000000 11 POST HORN PL 043570001000000 12 POST HORN PL 043570007010000 13 POST HORN PL 043570008000000 15 POST HORN PL 043570003000000 16 POST HORN PL 043570009000000 17 POST HORN PL 043570004000000 18 POST HORN PL 043570010000000 19 POST HORN PL 043570005000000 20 POST HORN PL 043570011000000 21 POST HORN PL 043570006000000 22 POST HORN PL 043570012000000 23 POST HORN PL

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STAFF REPORT Finance

Title: 2019 BSHA Special Service Levy Report Number: CORP2019-022 Author: Paul Hettinga Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: N/A Attachments: Appendix “A” 2019 BSHA Special Service Levy Ward No.: Ward 6

Recommendation:

1. THAT Council approve CORP2019-022.

2. THAT Council approve the Beechwood South Homes Association (“BSHA”) 2019 municipal budgeted levy of $78,375 to fund the operating and capital costs of the BSHA recreation facility and programs; and,

3. THAT Council adopt the By-law attached as Appendix A to this report for the imposition of a Special Services Levy on the rateable properties prescribed therein.

A. Executive Summary

On November 7, 2018, at the BSHA’s Annual General Meeting (AGM), the membership and executive approved a budget of $78,375 that was needed for its program delivery plans for 2019. Finance staff has received the AGM minutes, insurance coverage certificate and approved budget for 2019.

B. Financial Implications

The Special Service Levy is calculated and based on the first $100,000 of assessment of real property. A flat rate of $375 (2018 - $375) will be added to the tax bill of each member of the association and collected in a like manner as taxes.

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The City will charge an administrative fee of approximately $784 which has been factored into the BSHA’s budgeted levy.

C. Technology Implications

D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development) Strong Community – Homes Association recreation facilities support community wellbeing through active living. Corporate Excellence – reviewing Homes Association’s documents to mitigate risk as much as possible.

E. Previous Reports on this Topic

CORP2018-023 – 2018 BSHA Special Service levy – April 16, 2018

F. Approvals

Name Signature Date Author: Paul Hettinga Director: Paul Hettinga Commissioner: Keshwer Patel Finance: Keshwer Patel CAO

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2019 BSHA Special Service Levy CORP2019-022

Appendix A

THE CORPORATION OF THE CITY OF WATERLOO BY-LAW NO. 2019 –

BY-LAW TO LEVY A SPECIAL LOCAL MUNICIPAL LEVY ON THE RATEABLE PROPERTY IN THE BEECHWOOD SOUTH HOMES ASSOCIATION AREA FOR THE TAXATION YEAR 2019

AND WHEREAS the Beechwood South Home Association Inc. (the “Association”) has requested that The Corporation of the City of Waterloo (the “City”) enact such a by-law to provide special services such as swimming, tennis and other recreational opportunities to members of the Association within the Association’s geographic area (the “Area”) the full cost of which is to be recovered by the City through special local municipality levy on all rateable property within the Area;

AND WHEREAS the Council of the City, at its meeting on March 4, 2013, has agreed to enact such a by-law and approved entering into a lease and licence and operating agreement (the “Agreements”) with the Association for the use and operation of certain lands in the Area for such special services;

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AND WHEREAS the City and the Association have executed those Agreements;

AND WHEREAS the special local municipality levy will be calculated in accordance with the annual operating budget for the special services as submitted by the Association and approved by Council;

THEREFORE THE MUNICIPAL COUNCIL OF THE CORPORATION OF THE CITY OF WATERLOO ENACTS AS FOLLOWS:

1. Definitions: In this By-law,

a. “Association” means Beechwood South Homes Association Inc. and includes any successor corporation or organization;

b. “City” means Corporation of the City of Waterloo;

c. “City Treasurer” means the Treasurer of the City;

d. “Designated Area” means the area shown on Schedule “A”, attached to and forming part of this By-law, and designated under section 2 of this By-law to receive Special Services;

e. “Special Services” means swimming, tennis and any other recreational services provided by the Association within the Designated Area, the costs of which are to be provided by the City to the Association through the Special Service Levy;

f. “Special Services Levy” means the special local municipality levy imposed under this By-law against all rateable properties set out in Schedule “B”, attached to and forming a part of this By-law, in the Designated Area to cover the costs of providing and administering the Special Services;

g. “Tax” or “Taxes” means any sum payable for the purposes of the Special Services Levy.

2. The Designated Area is hereby designated as an area to receive Special Services.

3. The City shall pay to the Association the costs of providing the Special Services.

4. The City hereby establishes a Special Services Levy to recover the costs of providing the Special Services to the Designated Area.

5. The City Treasurer shall calculate all amounts payable for the Special Services Levy based on the annual budget submitted by the Association as approved by

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City Council. The Special Services Levy shall take the form of a levy imposed on the first $100,000.00 for real property of a residential tax class assessment within the Designated Area.

6. For the year 2019, the approved annual budget for the Association totals $78,375 in Special Service Levy. ($375/member)

7. The City Treasurer shall determine the dates on which the installment payments are due for the Special Services Levy for the rateable properties within the Designated Area.

9. On all Taxes in default on January 1st, 2020, interest shall be added at the rate of 1.25% per month for each month or fraction thereof in which the default continues.

10. Penalties and interest added in default shall become due and payable and shall be collected as if the same had originally been imposed and formed part of such unpaid Tax levy.

13. All such Taxes are payable at the City of Waterloo Municipal Office, 100 Regina Street South, Waterloo, Ontario.

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This by-law shall come into force and effect on the date of its final passing.

Enacted this ______day of ______, 2019.

Approval Date Print Name Initials Blank Signature

Corp D. Jaworsky, Mayor

Legal

Finance O. Smith, City Clerk

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Schedule “A”

The Designated Area

Hereto attached a map of the Designated Area, designated to receive Special Services.

Schedule “A”

The Designated Area

Hereto attached a map of the Designated Area, designated to receive Special Services

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Schedule “B” Rateable Properties

ROLL_NO STREET_NO STREET_NAME 040692026000000 127 BRIARCLIFFE CRES 040692027000000 129 BRIARCLIFFE CRES 040692004000000 130 BRIARCLIFFE CRES 040692028000000 131 BRIARCLIFFE CRES 040692005000000 132 BRIARCLIFFE CRES 040692006000000 134 BRIARCLIFFE CRES 040692029000000 135 BRIARCLIFFE CRES 040692007000000 136 BRIARCLIFFE CRES 040692008000000 138 BRIARCLIFFE CRES 040692030000000 139 BRIARCLIFFE CRES 040692009000000 140 BRIARCLIFFE CRES 040692010000000 142 BRIARCLIFFE CRES 040692031000000 143 BRIARCLIFFE CRES 040692011000000 144 BRIARCLIFFE CRES 040692012000000 146 BRIARCLIFFE CRES 040692013000000 148 BRIARCLIFFE CRES 040692014000000 150 BRIARCLIFFE CRES 040692032000000 151 BRIARCLIFFE CRES 040692015000000 152 BRIARCLIFFE CRES 040692016000000 154 BRIARCLIFFE CRES 040692033000000 155 BRIARCLIFFE CRES 040692017000000 156 BRIARCLIFFE CRES 040692018000000 158 BRIARCLIFFE CRES 040692019000000 160 BRIARCLIFFE CRES 040692020000000 162 BRIARCLIFFE CRES 040692021000000 164 BRIARCLIFFE CRES 040692036000000 165 BRIARCLIFFE CRES 040692022000000 166 BRIARCLIFFE CRES 040692037000000 167 BRIARCLIFFE CRES 040692023000000 168 BRIARCLIFFE CRES 040692038000000 169 BRIARCLIFFE CRES 040692039000000 173 BRIARCLIFFE CRES 040693005010000 373 BRIARCLIFFE PL

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ROLL_NO STREET_NO STREET_NAME 040693002000000 374 BRIARCLIFFE PL 040693006000000 375 BRIARCLIFFE PL 040693003000000 376 BRIARCLIFFE PL 040693007000000 377 BRIARCLIFFE PL 040693004000000 378 BRIARCLIFFE PL 040693008000000 379 BRIARCLIFFE PL 040693005000000 380 BRIARCLIFFE PL 040858041000000 115 CANDLEWOOD CRES 040858001000000 116 CANDLEWOOD CRES 040858042000000 117 CANDLEWOOD CRES 040858002000000 118 CANDLEWOOD CRES 040858043000000 119 CANDLEWOOD CRES 040858003000000 120 CANDLEWOOD CRES 040858044000000 121 CANDLEWOOD CRES 040858045010000 123 CANDLEWOOD CRES 040858046000000 125 CANDLEWOOD CRES 040858047000000 127 CANDLEWOOD CRES 040858005000000 128 CANDLEWOOD CRES 040858048000000 129 CANDLEWOOD CRES 040858049000000 131 CANDLEWOOD CRES 040858006000000 132 CANDLEWOOD CRES 040858050000000 133 CANDLEWOOD CRES 040858007000000 136 CANDLEWOOD CRES 040858008000000 138 CANDLEWOOD CRES 040858051000000 139 CANDLEWOOD CRES 040858009000000 140 CANDLEWOOD CRES 040858052000000 141 CANDLEWOOD CRES 040858010000000 142 CANDLEWOOD CRES 040858053000000 143 CANDLEWOOD CRES 040858011000000 144 CANDLEWOOD CRES 040858054000000 145 CANDLEWOOD CRES 040858012000000 146 CANDLEWOOD CRES 040858055000000 147 CANDLEWOOD CRES

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ROLL_NO STREET_NO STREET_NAME 040858013000000 148 CANDLEWOOD CRES 040858056000000 149 CANDLEWOOD CRES 040858014000000 150 CANDLEWOOD CRES 040858057000000 151 CANDLEWOOD CRES 040858015000000 152 CANDLEWOOD CRES 040858058000000 153 CANDLEWOOD CRES 040858016000000 154 CANDLEWOOD CRES 040858059000000 155 CANDLEWOOD CRES 040858017000000 156 CANDLEWOOD CRES 040858060000000 157 CANDLEWOOD CRES 040858061000000 163 CANDLEWOOD CRES 040858061010000 169 CANDLEWOOD CRES 040858063000000 181 CANDLEWOOD CRES 040858023000000 182 CANDLEWOOD CRES 040858024000000 184 CANDLEWOOD CRES 040858064000000 185 CANDLEWOOD CRES 040858065000000 187 CANDLEWOOD CRES 040858066000000 189 CANDLEWOOD CRES 040858025000000 190 CANDLEWOOD CRES 040858067000000 191 CANDLEWOOD CRES 040858068000000 193 CANDLEWOOD CRES 040858069000000 195 CANDLEWOOD CRES 040858070000000 197 CANDLEWOOD CRES 040858071000000 199 CANDLEWOOD CRES 040858027000000 200 CANDLEWOOD CRES 040858072000000 201 CANDLEWOOD CRES 040858073000000 203 CANDLEWOOD CRES 040858074000000 205 CANDLEWOOD CRES 040858075000000 207 CANDLEWOOD CRES 040858076000000 211 CANDLEWOOD CRES 040920002000000 150 CASTLEGATE CRES 040920013000000 153 CASTLEGATE CRES 040920003000000 154 CASTLEGATE CRES

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ROLL_NO STREET_NO STREET_NAME 040920014000000 155 CASTLEGATE CRES 040920015000000 157 CASTLEGATE CRES 040920016000000 159 CASTLEGATE CRES 040920004000000 160 CASTLEGATE CRES 040920017000000 161 CASTLEGATE CRES 040920018000000 163 CASTLEGATE CRES 040920005000000 164 CASTLEGATE CRES 040920019000000 165 CASTLEGATE CRES 040920006000000 166 CASTLEGATE CRES 040920020000000 167 CASTLEGATE CRES 040920007000000 168 CASTLEGATE CRES 040920021000000 169 CASTLEGATE CRES 040920022000000 171 CASTLEGATE CRES 040920023000000 173 CASTLEGATE CRES 040920024000000 175 CASTLEGATE CRES 040920025000000 177 CASTLEGATE CRES 040920026000000 179 CASTLEGATE CRES 040920008000000 180 CASTLEGATE CRES 040920027000000 181 CASTLEGATE CRES 040920028000000 183 CASTLEGATE CRES 040920009000000 184 CASTLEGATE CRES 040920029000000 185 CASTLEGATE CRES 040920030000000 187 CASTLEGATE CRES 040920031000000 189 CASTLEGATE CRES 040920032000000 191 CASTLEGATE CRES 040920010000000 194 CASTLEGATE CRES 040920033000000 195 CASTLEGATE CRES 040920011000000 196 CASTLEGATE CRES 040920012000000 198 CASTLEGATE CRES 041370061000000 360 CRAIGLEITH DR 041370062000000 362 CRAIGLEITH DR 041370143000000 363 CRAIGLEITH DR 041370144000000 365 CRAIGLEITH DR

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ROLL_NO STREET_NO STREET_NAME 041370063000000 366 CRAIGLEITH DR 041370145000000 367 CRAIGLEITH DR 041370064000000 368 CRAIGLEITH DR 041370146000000 369 CRAIGLEITH DR 041370065000000 370 CRAIGLEITH DR 041370066000000 372 CRAIGLEITH DR 041370067000000 374 CRAIGLEITH DR 041370068000000 376 CRAIGLEITH DR 041370147000000 387 CRAIGLEITH DR 041370148000000 389 CRAIGLEITH DR 041370149000000 391 CRAIGLEITH DR 041370150000000 393 CRAIGLEITH DR 041370071000000 394 CRAIGLEITH DR 041370151000000 395 CRAIGLEITH DR 041370072000000 396 CRAIGLEITH DR 041370152000000 397 CRAIGLEITH DR 041370073000000 398 CRAIGLEITH DR 041370153000000 399 CRAIGLEITH DR 041370074000000 400 CRAIGLEITH DR 041370154000000 401 CRAIGLEITH DR 042980001000000 46 MCCARRON CRES 042980030000000 47 MCCARRON CRES 042980031000000 49 MCCARRON CRES 042980002000000 50 MCCARRON CRES 042980032000000 51 MCCARRON CRES 042980033000000 53 MCCARRON CRES 042980034000000 55 MCCARRON CRES 042980003000000 58 MCCARRON CRES 042980004000000 60 MCCARRON CRES 042980005000000 62 MCCARRON CRES 042980035000000 63 MCCARRON CRES 042980006000000 64 MCCARRON CRES 042980007000000 66 MCCARRON CRES

Finance & Strategic Planning Page 69 of 153 April 15, 2019 Committee Meeting 13 Corporate Services

ROLL_NO STREET_NO STREET_NAME 042980008000000 68 MCCARRON CRES 042980009000000 70 MCCARRON CRES 042980036000000 71 MCCARRON CRES 042980010000000 72 MCCARRON CRES 042980011000000 74 MCCARRON CRES 042980012000000 76 MCCARRON CRES 042980037000000 77 MCCARRON CRES 042980013000000 78 MCCARRON CRES 042980038000000 79 MCCARRON CRES 042980014000000 80 MCCARRON CRES 042980039000000 81 MCCARRON CRES 042980016000000 82 MCCARRON CRES 042980040000000 85 MCCARRON CRES 042980017000000 86 MCCARRON CRES 042980018000000 88 MCCARRON CRES 042980019000000 90 MCCARRON CRES 042980041000000 91 MCCARRON CRES 042980020000000 92 MCCARRON CRES 042980042000000 93 MCCARRON CRES 042980021000000 94 MCCARRON CRES 042980043000000 95 MCCARRON CRES 042980022000000 96 MCCARRON CRES 042980044000000 97 MCCARRON CRES 042980023000000 98 MCCARRON CRES 042980045000000 99 MCCARRON CRES 042980024000000 100 MCCARRON CRES 042980046000000 101 MCCARRON CRES 042980025000000 102 MCCARRON CRES 042980047000000 103 MCCARRON CRES 042980026000000 104 MCCARRON CRES 042980027000000 106 MCCARRON CRES 042980028000000 108 MCCARRON CRES 042982008000000 337 MCCARRON PL

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ROLL_NO STREET_NO STREET_NAME 042982009000000 339 MCCARRON PL 042982002000000 340 MCCARRON PL 042982010000000 341 MCCARRON PL 042982003000000 342 MCCARRON PL 042982011000000 343 MCCARRON PL 042982004000000 344 MCCARRON PL 042982012000000 345 MCCARRON PL 042982005000000 346 MCCARRON PL 042982013000000 347 MCCARRON PL 042982006000000 348 MCCARRON PL 042982007000000 350 MCCARRON PL

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STAFF REPORT Chief Administrative Officer

Title: ONTARIO REGULATION 435/17 TRANSIENT ACCOMMODATION TAX Report Number: CAO2019-014 Author: Brad Witzel, Adam Lauder Meeting Type: Council Meeting Council/Committee Date: April 15, 2019 File: WRTMC Attachments: Appendix A – Business Case for a Municipal Accommodation Tax Appendix B – Potential Uses for Municipal Share of MAT Revenue Ward No.: All

Recommendation:

1. That Council approve report CAO2019-014. 2. That Waterloo City Council approves the establishment of a bylaw for implementation of a mandatory 4% Municipal Accommodation Tax for hotels in the City of Waterloo effective July 1st, 2019; subject to equivalent approvals by the other lower tier municipalities in Waterloo Region. 3. That Council approve the 50%(WRTMC) / 40%(City) / 10% (Region) revenue sharing model as outlined within this report. 4. That staff be directed to create a Reserve Fund Policy to segregate the City’s portion of the Municipal Accommodation Tax revenue for uses outlined in Appendix B of this report. 5. That the Mayor and Clerk be delegated authority to enter into an agreement with the Waterloo Regional Tourism Marketing Corporation to collect the revenues on behalf of the Waterloo Region area municipalities and for the use of 50% of the Municipal Accommodation Tax funds by WRTMC. (Note: Administration costs to be deducted prior to distribution of funds). 6. That the Mayor and Clerk be delegated authority to enter into other agreements as may be required to administer and govern work to be funded from the MAT. 7. That staff/WRTMC report back in 2020 to Council on the progress of the new Municipal Accommodation Tax. 8. And further, that a joint study be undertaken by WRTMC and the municipal partners in 2022 with respect to the effectiveness of the program to inform potential program refinements at that time.

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A. Executive Summary

On November 23, 2017, the Province of Ontario issued the Transient Accommodation Regulation 435/17, which came into force December 1, 2017 and provides the necessary provisions for lower tier and single tier municipalities across Ontario to implement a Municipal Accommodation Tax. These voluntary fees have been used to raise funds for destination marketing across Ontario and North America for many years but have not been implemented in Waterloo Region.

As a popular destination for culture, events (sports and otherwise), sightseeing, business and government travel, the Region of Waterloo welcomes more than 4.8 million visitors a year. Accommodation supply in Waterloo Region totals approximately 3,000 rooms, with 538 being in the City of Waterloo. Visitors to Waterloo Region have a significant economic impact locally injecting approximately $357 million into our local economy on an annual basis.

The purpose of this common report is to recommend the implementation of a 4% Municipal Accommodation Tax for all Waterloo Region lower tier municipalities effective July 1st, 2019. It is estimated that this will generate $3.27M annually ($640,000 in the City of Waterloo) which would be split between the Waterloo Region Tourism Marketing Corporation (50%), the participating lower tier municipalities (40%), and the Region of Waterloo (10%).

B. Financial Implications

It is estimated that a 4% Municipal Accommodation Tax will generate $640,000 annually in the City of Waterloo based upon the affected hotel properties. It is proposed that the City will retain 40% ($256,000), 10% will be remitted to the Region ($64,000), and 50% ($320,000) will be provided to WRTMC for tourism promotion, including the newly proposed sport hosting office.

The City will retain the first year revenues in a standalone account within the Economic Development Reserve given the uncertainty of the estimates and potential for annual changes in the amount allocated. Beginning in 2020, funds are proposed to be used to support and enhance tourism, sport, and cultural offerings, as well as major event attraction efforts in a variety of ways. Appendix B outlines more information on the specifically proposed uses.

C. Technology Implications There are no technology implications associated with this report.

Enhanced tourism promotion and the associated recommendations of this report directly link to the Economic Development and Strong Community pillars of the Strategic Plan.

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E. Previous Reports on this Topic All Council Meeting – WRTMC Summary Report – December 2017

F. Approvals

Name Signature Date Author: Brad Witzel Author: Adam Lauder Commissioner: N/A Finance: CAO

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ONTARIO REGULATION 435/17 TRANSIENT ACCOMMODATION TAX CAO2019-014

Section #1 – Background

In the spring of 2017 the Provincial Government announced budget plans to give municipalities the power to levy a hotel tax. On November 23, 2017, the Province of Ontario issued the Transient Accommodation Regulation 435/17, which came into force December 1, 2017 and provides the necessary provisions for lower tier and single tier municipalities across Ontario to implement a Municipal Accommodation Tax (MAT). Voluntary fees (known as destination marketing fees) have been collected in a number of municipalities across Ontario (Ottawa, Toronto, Sault Ste. Marie, Niagara Falls) for many years but have not been implemented in Waterloo Region.

Waterloo Region Tourism Marketing Corporation and RT04 have both been advocates of the need for more revenue tools to enhance the competitiveness of Tourism in our broader community. RT04 commissioned a report by CBRE in the summer of 2017 that documented the potential implications of a hotel tax on its key partners. The CBRE report provided the following revenue estimates for Waterloo region:

Hotel Accommodations* within Waterloo Region and Estimated Revenue from a 4% Municipal Accommodation Tax Municipality Hotel Properties Rooms Estimated 4% MAT Revenue Cambridge 10 1,026 $1,200,000 Kitchener 10 1090 $938,000 Waterloo 4 538 $640,000 Woolwich 3 313 $475,000 Wilmot 1 6 $10,000 Wellesley 1 16 $8,000 North Dumfries 0 0 0 TOTAL 28 2973 $3,271,000

*Note – The CBRE study did not include properties in Wellesley, North Dumfries or short term rentals (ie: Airbnb, Homeaway, VRBO, home-to-go). Municipalities with a

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significant clustering of short term rentals would also generate revenue from this framework. This additional revenue has not been factored into the numbers above.

Section #2 – Sharing of the revenue with WRTMC

With regards to revenue sharing with WRTMC, the Provincial regulations require that:

• Where no formal Destination Marketing Fee (DMF) exists, at least 50 per cent of the revenues from the tax less the municipality’s reasonable costs of collecting and administering the tax must be shared with an eligible tourism organization. • The rules set out a minimum amount of tax revenue sharing that must occur, but in no case do the regulations require municipalities to share more tax revenue than they collect.

Waterloo Region and the Area Municipalities formed the Waterloo Region Tourism Marketing Corporation (WRTMC) in 2007. This organization has a $1.05 M annual budget with approximately 60% of the funding coming from the Region and Area Municipalities, as outlined below:

Municipality 2019 Contribution Region of Waterloo $300,000 City of Cambridge $90,000 City of Kitchener $90,000 City of Waterloo $90,000 Township of Wilmot $10,000 Township of Woolwich $10,000 Township of North Dumfries $5,000 Township of Wellesley $5,000

The WRTMC Board has long considered a Destination Marketing Fee (DMF) for our community but did not find consensus from the accommodators and as such no DMF has been implemented. Therefore by regulation the area municipalities would be required to provide at least 50% of revenues collected through this proposed tax to WRTMC.

Municipal staff has considered the foregoing regulations and recommend that 50% of the revenues from the MAT be provided to WRTMC for the advancement of their tourism strategic plan with a goal of increasing overnight accommodation metrics within our community. Based on the calculations in section 1 of this report the 50% allocation to WRTMC is expected to be approximately $1.6M annually. The recently proposed sports hosting office would be funded through the WRTMC portion as well.

Municipal funding (40%) would be used to support and enhance tourism, sport, and cultural offerings, as well as major event attraction efforts in a variety of ways. Appendix B outlines more information on the specifically proposed uses.

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The Region of Waterloo would be remitted (10%) of the anticipated annual revenues ($327,100) for enhancement and promotion of their cultural funding allocations. It is anticipated this will strengthen the position of key cultural institutions within the Region thereby also enhancing the tourism component of our economy.

Ontario regulation 435/17, Section 6, requires that tourism organizations that receive funding from a MAT enter into agreements with local municipalities respecting reasonable financial accountability matters in order to ensure that amounts paid to the entity are used for the exclusive purpose of promoting tourism, and the agreement may provide for other matters. WRTMC is committed to entering into an agreement with its municipal funding partners for the collection, disbursement and use of the MAT funding based on the outcomes of this council report and the council reports of the other applicable local tier municipalities (City of Cambridge, City of Kitchener, Township of Woolwich, Township of Wellesley, Township of North Dumfries and Township of Wilmot).

Section #3 - What types of Accommodations are required to pay this tax?

As an eligible hotel transient accommodator doing business and/or facilitating business transactions within the boundaries of the Region of Waterloo, the accommodator will be obliged by law to collect and remit a four percent (4%) Municipal Accommodation Tax (MAT) on all rooms sold for overnight accommodation. Revenues generated from other hotel services, including but not limited to such things as meeting room rentals, food & beverage, and room service, will be excluded from the MAT.

It is also expected that short term rentals (STRs - such as "Airbnb”) will be required to pay the MAT. It is understood that Airbnb has agreements in more than 300 jurisdictions globally to collect and remit hotel taxes on behalf of their hosts and guests, and as such implementation in Waterloo Region is not expected to be difficult.

Currently the proposed 4% MAT would be applicable to all eligible hotel transient accommodators including STRs in the City of Cambridge, City of Kitchener, City of Waterloo, Township of Woolwich, Township of Wellesley, Township of North Dumfries and Township of Wilmot. This framework is proposed to exclude campsites, given that no other municipality in Ontario is implementing a MAT for this form of rental.

Section #4 - What types of Accommodations would be exempted from this tax?

• Accommodations that are rented for 30+ consecutive nights (including seasonal trailer parks) • Lodgings provided to students by a university, college or post-secondary while the student is registered at and attending the institution • Every hospital referred to in the list of hospitals and their grades and classifications maintained by the minister of Health and Long-Term Care under the Public Hospitals Act and every private hospital operated under the authority of a license issued under the Private Hospitals Act

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• Every long-term care home as defined in subsection 2(1) of the Long-Term Care Homes Act, 2007, retirement home and hospices • Treatment centres that receive provincial aid under the Ministry of Community and Social Services Act • Every house of refuge, or lodging for the reformation of offenders • Every charitable, non-profit philanthropic corporation organized as shelters for the relief of the poor or for emergency • Every tent or trailer sites supplied by a campground, tourist camp or trailer park • Every accommodation supplied by employers to their employees in premises operated by the employer • Every hospitality room in an establishment that does not contain a bed and is used for displaying merchandise, holding meetings, or entertaining • A traditional Bed & Breakfast operator may apply to the local municipality for an exemption from the charging and remittance of the Municipal Accommodation Tax, provided that the application sufficiently meets the City’s eligibility criteria: o namely the Bed & Breakfast establishment meets the definition of the local Zoning By-laws; o the Bed & Breakfast establishment is occupied and operated by the property owner, and is classified in the residential property tax class; o the accommodation purchases are invoiced by the Bed & Breakfast establishment and not a third party home-sharing listing entity.

Bed & Breakfast operators requesting an exemption to the Municipal Accommodation Tax should contact WRTMC ([email protected]) to receive an exemption application. Completed applications will be reviewed by the City and WRTMC for approval, and a formal notification will be provided to Accommodators. Until an exemption has been granted to you, you are not considered to be exempt from the Municipal Accommodation Tax and are required to collect and remit the applicable funds.

Section #5 - What happens with the funds generated through the Municipal Accommodation Tax?

Funds generated through the Municipal Accommodation Tax will be invested in sales, marketing, bid acquisitions, office operations support and tourism development activities through the Waterloo Region Tourism Marketing Corporation. WRTMC promotes Waterloo Region for leisure visitors, meetings and conventions, sporting events, tour operators, and travel trade. WRTMC also invests in long term destination attraction/retention/development initiatives aimed at enhancing the visitor experience. The current budget of WRTMC is approximately $1.05M and the additional anticipated MAT revenue is expected to be $1,615,000.

In 2017, WRTMC engaged in a broad discussion with stakeholders, Board members and staff to develop a 3 year strategic plan. In late 2017 and throughout 2018, WRTMC and RTO4 engaged in an assessment of Waterloo Region (DestinationNext) followed by consultations with community leaders, stakeholders, tourism industry partners and

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elected officials to develop a Strategic Plan for Waterloo Region. This plan is a 10 year destination road map that includes a vision, goals and strategic initiatives. It reflects on the importance of paying as much attention to the management of the destination, as it does to the marketing. And the foundation of the plan is the unique selling propositions of the region. Actions recommended from the second plan are not solely the responsibility of WRTMC, but rather include municipal partners, community groups and volunteer organizations.

The following table shows the responsibilities and actions to be undertaken by WRTMC and the estimated costs involved for a one year term. WRTMC will develop further policy that guides allocation of the increased budget, with a goal of avoiding duplication and enhancing transparency.

Strategic Tactics Key Performance Spend Objectives Indicators Develop a strategy to # of festivals, growth Current spend enhance and grow of festivals, event (Budget $1,047,600) festivals, build impact year over Focus on event collaboration within year, # of festivals & Marketing generation as a key WR festivals, events receiving $400,000 - 38% enabler of tourism collaborate with Celebrate grants, development within municipal staff, amount of Celebrate Communications/Content/Public Waterloo region Festivals & Events $$ received in WR, & Media Relations ON and MTCS for ROI on digital ads, $64,325 - 6.1% Celebrate funding, ExploreWR website & Supporting Pillars #2 build marketing social media analytics Sales and #3 – Sport content, digital $83,940 - 8% Hosting and advertising Festivals, Events & Continue to build # of RFPs received, # Research Attractions. hosting resume and of site visits, # of $16,500 - 1.6% target larger profile events booked, ROI events as the analysis of sport Staff national and events, # of bids $417,407 – 39.8% international level submitted for local for Sport, build sport orgs, growth of General & Admin relationship with local volunteer base $65,428 - 6.2% sport orgs and PSOs, grow volunteer base Website # of RFPs received, # Forecasted spend improvements & of site visits, # of (Budget $2,500,000) updates, collateral mtgs booked Raise the profile & development, image ROI analysis of mtgs Marketing brand association of & video development, in the region $858,600 – 34% the technology content creation, knowledge sector social media, attend Communications/Content/Public with Waterloo Region trade shows, host fam & Media Relations through development visits, build bid $140,000 – 5.6% of meetings & events. support fund Digital advertising, ROI on ads, web & Sales Supporting Pillar #1 – social media, public & social media analysis, $300,000 – 12% Knowledge & media relations, earned media Tecnology familiarization visits, coverage, leads Research travel trade show generated from show $64,000 – 2.5%

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Strategic Tactics Key Performance Spend Objectives Indicators attendance & attendance & site sponsorship visits Product Development Analysis of current # of outdoor $100,000 – 4% offerings and gaps, experience offers, # align with of bookings by mtg Bid Support Target product municipalities, RTO4 and tour operators, $250,000 – 10% development & and Destination ON to earned media enhancement of enhance marketing of coverage, web & Staff outdoor experience G2G Trail, Grand social media analytics $634,400 - 26% River, support and Supporting Pillar #4 – analysis of local General & Admin Urban Outdoors operators and $153,000 – 6.1% offerings, media & travel trade fam visits, Newsletters, web & social media content Visitor statistics, Benchmarking info Research benchmarking, data evaluation, Event Supporting all Pillars impact calculator

Establish WRTMC as Media development & # of speaking the Region’s Tourism communication, engagements by Authority, while regular newsletters, CEO/staff, earned adopting a singular fam visits, media media,, User focus on high return support for visits, generated content, target markets and build website content Intagram posts events & community engagement, Supporting all Pillars participate in local events, est. presence on industry Board of Directors & volunteer committees

In addition Municipal Accommodation Tax participants will have opportunities to become directly involved in various committees that guide the planning and budgeting of the organization.

The City of Waterloo is expected to receive approximately $256,000 annually (40% of the $640,000 Waterloo generated revenue). The intention of this funding is to support and enhance tourism, sport, and cultural offerings, as well as major event attraction efforts in a variety of ways. Appendix B outlines more information on the specifically proposed uses. The current net operating budget for Arts and Culture is $900,000, of which $446,000 is related to festivals/events and external affiliate program support. An additional $200,000 per year would be a significant increase to Waterloo’s current efforts.

It is important that the municipal share of funds raised through the Municipal Accommodation Tax be segregated and only used for approved municipal purposes to

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Section #6 – Stakeholder Consultation

WRTMC has consulted with the hotel industry on the MAT issue over the past six years and more extensively since the provincial legislation was introduced. The majority of hotel partners agree that a municipal accommodation tax will level the playing field (as all accommodators will be affected) and is a good way to stabilize marketing funds for Waterloo Region.

There are members of the hotel industry that prefer 100% of all funds to be directed to WRTMC to ensure that tourism promotion receives maximum benefit. In response, staff throughout the region are proposing to place revenue into a dedicated account for the purpose of tourism-related activities and to report on expenditures. This will ensure all monies are directed to tourism-related activities.

It is proposed that staff report back to Council in 2020 on the implementation of the Municipal Accommodation Tax. Further, it is proposed that a formal joint study be undertaken by the WRTMC and municipal partners in 2022 to assess the impact of investments made with this revenue and to inform refinements to the model as appropriate.

Section #7 – Implementation

A decision by the local Waterloo region area municipalities for implementation of a MAT on July 1st, 2019 is the recommendation contained within this report. This timeframe will provide a reasonable notice period for the stakeholder accommodators within our community and in turn their respective customers. In addition it is expected that little time is required for the various accommodator billing systems to be updated to accommodate the MAT and for WRTMC to implement the administrative system for collections and distribution.

Should Council approve this report, City staff will also draft a bylaw that would enable the MAT including the following requirements • Subject of the tax to be imposed; • Tax rate or the amount of tax payable; • Manner in which the tax is to be collected, including the designation of any persons or entities who are authorized to collect the tax as agents for the municipality and any collection obligations of persons or entities who are required to collect the tax. • The by-law may also provide for: exemptions from the tax e.g. university and college residences occupied by students; bed & breakfast; rebates of tax; penalties for failing to comply with the by-law; interest on outstanding tax;

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penalties or interest; audit and inspection powers; dispute resolution mechanisms; and enforcement measures.

It is anticipated like other Cities in Ontario that a simplified remittance form can be used by the local accommodators similar to that used by business to remit HST/GST to the Canada Revenue Agency. Accommodators would complete the simplified Municipal Accommodation Tax form on a monthly basis and remit the associated MAT to the WRTMC (via the Ontario Restaurant Hotel & Motel Association, who will be contracted to collect the MAT fees).

Section #8 – Conclusion

Various communities across Ontario are moving toward the implementation of the Municipal Accommodation Tax in order to promote and advance the tourism potential of their Cities. Recent decisions and considerations by other Ontario jurisdictions include:

Community Proposed MAT Implementation Date City of Ottawa 4% January 1st, 2018 City of Sault Ste. Marie 4% January 1, 2019 Niagara Falls $2/room night In place Waterloo Region 4% July 1st, 2019 Municipalities City of London 4% October 1, 2018 City of Toronto 4% April 1, 2018 City of Kingston 4% August 1, 2018 City of Windsor 4% October 1, 2018 City of Hamilton 3% Voluntary DMF in place City of Barrie 4% January 1, 2018 City of Stratford 3% Voluntary DMF in place City of Brockville 4% May 1, 2018 City of Cornwall 4% July 1, 2018 City of Huntsville 4% April 1, 2019 City of Markham 4% January 1, 2018 City of Mississauga 4% July 1, 2018 City of North Bay 4% February 1, 2018 City of Oakville 4% January 1, 2019 City of St. Catharines 4% January 1, 2018 City of Sudbury 4% September 1, 2018 City of Thunder Bay 4% September 1, 2018 City of Timmins 4% January 1, 2019 * Proposed rates still subject to council approval

The percentage of MAT revenue that Destination Marketing Organizations (DMOs) receive from the list above varies from 50% (as proposed here) to 100%. A 50% allocation is the most common allocation, based on available information.

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More locally, the Cities of Guelph and Brantford do not have independent destination marketing organizations, and until these are established, they cannot introduce a MAT. The City of Stratford has had a voluntary DMF in place for a number of years, although the largest hotels (Arden Park and The Bruce) do not participate. The Stratford DMF generates $80,000 per year.

A 4% MAT in Waterloo Region will assist in further development of our tourism potential, assist in maintaining and developing our tourism oriented assets and events (including event hosting support) and complement our respective economic development strategies.

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APPENDIX A – Business Case for a Municipal Accommodation Tax

February 25, 2019

Minto Schneider CEO Waterloo Regional Tourism Marketing Corporation Waterloo, Ontario

Dear Minto, GainingEdge is pleased to submit this letter outlining our rationale for WRTMC to increase its revenues through the introduction of the MAT. Having advised more than 120 DMOs in 37 countries over the past ten years, we have developed a clear understanding that marketing a destination in a dynamic environment requires significant financial resources. It is our view that the MAT will enable Waterloo Region to realize its potential from the tourism and business events sector by implementing a funding source that is substantive, dedicated and dependable. Background The visitor economy is a significant contributor to the quality of life and job opportunities in the region. According to the Ontario Ministry of Tourism, Culture and Sport, the region attracted 4.8 million visitors in 2016, including 1.2 million overnight visitors, deliver $357 million in spending to local restaurants, retail, accommodation, transporation, and experiences such as arts and culture, recreation and entertainment.

The region is growing and changing, driven by renewal and development initiatives. It is imperative that visitor markets are properly served to maximize the benefits of this transformation. The region can improve its position with visitors, operators and event planners who are willing to stay longer and spend more by better leveraging its brand and improving amenities, infrastructure and partnerships.

In October 2018, GainingEdge submitted the Destination Plan for the Waterloo Region to WRTMC on behalf of its stakeholders. The plan was the cumulation of an extensive effort that included input from more than 250 private- and public-sector participants from the region. This collaborative effort will

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assist industry, government and other related sectors to support and implement a long-term destination vision and key strategic initiatives. A key conclusion of the Destination Plan states:

Increased funding for Explore Waterloo Region [WRTMC] is necessary to take a lead role in coordinating the next phase of the Destination Plan. Because this is a road map with ideas that transcend the tourism industry, the plan’s implementation will be shared among the tourism industry, economic development organizations, and the various municipalities in Waterloo Region. The effective engagement and alignment of all stakeholders is the key element to a successful destination plan that will benefit residents, businesses and visitors for years to come. Carrying out the destination plan will take considerable effort from the industry and stakeholders. While the destination has strengths and assets to forge a new direction, structural and funding issues need to be addressed to move forward with success.

Funding of Destination Marketing Organizations (DMOs) The ability to attract tourism and business events require a well-funded effort through DMOs that bring their destinations together in a consolidated manner, providing the marketplace with a unified solution to assist their needs. This hyper-competitive DMO environment is intermixed with a significantly new world for DMOs. They are having to adapt to disruptive marketplaces driven by rapidly changing visitor and event planner expectations and extensive technology impacts. Destinations around the world are investing significant resources to generate the social and economic benefits from this industry sector. In North America, the main source of funding for DMOs are hotel taxes, comprising 70% of the budgets of these organizations.

Chart: Funding Source as Proportion of Budget (from Destinations International, 2017)

In a recent survey conducted by Destinations International, it was determined that a total of 41 out of 196 DMOs have budgets of US$10 million or more, with 35 in the US$5-$10 million range, 49 within US$2-$5 million, 35 within US$1-$2 million, and the remaining 36 below US$1 million. Up until this year, WRMTC fell within the last category.

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Chart: Budget of 196 DMOs (from Destinations International, 2017)

WRTMC Budget Comparison The average budget of the 196 DMOs surveyed is more than US$6.5 million. Closer to home, the following cities, which often compete with Waterloo Region, are all better funded: • City of Hamilton, Tourism & Culture CDN $8.9 million • Tourism London CDN $4.0 million • Tourism Windsor Essex County CDN $2.1 million (expected to be higher with MAT) • Tourism Kingston CDN $1.2 million

And although the $250,000 increase to WRTMC for sport hosting development is welcome, the $1.05 million (CDN) budget for 2019 means that the region still lags the others. WRTMC can be a leader, if not the leader, amongst them. Waterloo Region product is attractive, the stakeholder collaboration is strong, and the expertise is in place. The missing piece, though, is resources. Without addressing the budget shortcomings, the bureau will not be able to set the pace.

Despite the small budget, WRTMC delivers strong returns relative to its investment. The efforts of the organization: • Help businesses grow and prosper • Attract visitors, conventions and events to the region • Generate jobs and tax revenue • Enhance Waterloo Region’s image • Connect with the community on the benefits of tourism With incremental funding, WRTMC and its partners will be even more proficient in identifying, pursuing and securing new commitments from convention, travel trade, sports and niche segment groups, while helping to manage a sustainable industry on behalf of the community.

Benefits of Municipal Accommodation Tax (MAT) for WRTMC A key advantage of accommodation taxes to fund DMOs is that they are directly tied to the visitor industry and generate significant amounts of revenue. Room taxes and levies are common in North America as the chart above illustrates. They shift the financial burden of funding DMOs from local taxpayers to visitors. The MAT is highly desirable for WRTMC for the following reasons.

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Substantive: generates the necessary funds for WRTMC and the municipalities of the Region of Waterloo to compete • Total estimated revenue from a 4% MAT is more than $3 million Dedicated: funds collected are to be used to support destination marketing and management • Enables delivery of the strategic initiatives agreed by stakeholders in the Destination Plan for the Waterloo Region Dependable: funding mechanism in place for the long-term due to government legislation • WRMTC makes commitments on behalf of the community for meetings and sport events that are often years away from coming to the region

Another advantage of the MAT is that it effectively ties WRTMC to the ebbs and flows of industry. Revenues will increase or decrease based on how the industry is performing. Therefore, WRTMC must act as a business and be commercially focused. With its entrepreneurial industry board, we are confident WRTMC will innovate and respond to opportunities as they arise.

The incremental 4% MAT will improve WRTMC’s ability to deliver the targets agreed to in the Destination Plan for the Waterloo Region. The intent is to attract higher spending segments such as key meeting and corporate clients, sports groups, and targeted leisure segments.

2016 2028 Variance # of Visitors 4.8 million 6.5 million +1.7 million (+35%)

Visitor Spending $357 million $585 million +$228 million (+65%)

Table: 2028 Targets for Visitors and Visitor Spending

Budget Implications of the MAT

The implementation of the MAT would enable WRTMC to be more competitive through enhanced marketing and communications programs, increased sales activities and stronger organizational capacity. The MAT will enable WRTMC to offer bid support to event organizers, a key business development tool that has been lacking to date. It will also help facilitate investment in product development, which is a critical part of the recommendations in the Destination Plan for the Waterloo Region.

Current Budget Enhanced Budget Revenue $ 1,047,600 $ 2,512,600 Municipal - Core Funding 600,000 600,000 Municipal - Sport Support 150,000 - Provincial (RTO4) 100,000 100,000 MAT - 1,615,000 Private Sources 197,600 197,600 Expenditure $ 1,047,600 $ 2,512,600

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Current Budget Enhanced Budget Marketing, Communications & Research 480,825 1,014,000 Sales & Bid Support 83,940 550,000 Product Development - 125,000 Personnel 417,407 659,400 Administration 65,428 164,200 Net Income $ - $ - Table: Forecasted Budget with MAT

Final Comments

Simply put, WRTMC is inadequately funded and has been since its inception in 2007. The organization is under-resourced to compete in the regional, national and international marketplace.

If the Region of Waterloo is sincerely committed to enhancing its position as a tourism and business events destination, they must set their aspirations to be much higher than the existing situation. As witnessed in hundreds of destinations across North America, the introduction of an accommodation tax, such as the MAT, to fund WRTMC will have a significantly positive impact. With substantive, dedicated and dependable funds, WRTMC can leverage incremental resources to make strategic investments that will benefit the Region of Waterloo well into the future. Please do not hesitate to ask if we can be of further assistance.

Yours sincerely,

Paul Vallee Executive Consultant, GainingEdge

Cc: Gary Grimmer, CEO, GainingEdge

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APPENDIX B –Potential Uses for Municipal Share of MAT Revenue

The following list of potential uses is outlined for discussion. Staff is proposing to further refine this list and create a reserve fund policy for Council approval. This policy will enable MAT revenue to be segregated, and used for purposes that are in accordance with the Council-approved reserve fund policy.

Potential Uses

1. Market Research; 2. Tourism, Sport and Cultural Infrastructure (permanent and event related); 3. Bid and Grant funding for International, National and Provincial-Scale Events; 4. Major Festival and Event Expansion/Development; 5. One-time Festival and Event Acquisition Costs; 6. Collaborative Tourism Marketing Efforts; and, 7. Additional staff resources, if required, to support efforts above.

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STAFF REPORT Environment & Parks Services

Title: Parkview Chapel and Crematorium – Future Considerations Report Number: COM2019-011 Author: Jeff Silcox-Childs, Director, Environment and Parks Services Susan Boldt, Senior Financial Analyst Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: N/A Attachments: N/A Ward No.: 5

Recommendation:

1. That Council approve report COM2019-011.

2. That Council direct staff to proceed with a public engagement process regarding the future options for the Parkview Chapel and Crematorium and report back on the outcomes.

A. Executive Summary The City’s current crematorium equipment including retorts and cooler is nearing the end of its lifespan and staff estimates a full replacement would be required within 1 year. The chapel building is also in need of renovation and upgrading which includes the provision of additional interior niche space to meet current and future community need and market demand. The City needs to make a decision to invest and remain in the cremation business or to divest itself of the crematorium at Parkview Cemetery and repurpose the upper and lower levels of the chapel for interior niche space. Both options have been detailed within this report.

In 2012, the provincial government made legislation changes which promoted the privatization of crematoriums within the province. Since that time, 26 privately run crematoriums1 have opened and continue to aggressively market their services. Parkview Crematorium has seen the loss of 10 funeral homes due to direct competition from the private sector. Within Ontario, 2 of the 4 municipally owned crematoriums have, or are in the process of divesting2 of their municipally run crematoriums. Cremation demand continues to expand as more people choose this option; however, the

1,2 Courtesy of the Bereavement Authority of Ontario at the AMCTO workshop 21-Mar-19

Finance & Strategic Planning Page 92 of 153 April 15, 2019 Committee Meeting 2 Community Services privatization of crematorium services in 2012 continues to promote a very volatile market within the industry.

The volatile market trend is not expected to change in the near future and in fact, staff predicts more volatility is likely as customers look for simple, cost effective disposition models in a competitive marketplace. This will put the City at further risk of diminishing cremation revenues. Current trends also indicate that more private crematoriums are being developed to meet the needs of cultural specific communities. As the demand for cremation increases so too does the supply to provide those services.

Option 1 – Remain in Crematorium Business and Advance Necessary Capital Investment

For the crematorium to remain competitive in the largely privatized cremation market place will require approximately $3,200,000 capital investment within 1 to 2 years which includes: a building expansion and new viewing area, elevator, 2 new retorts, minor chapel renovations, and a new cooler. The existing cemetery reserve will be able to provide $500,000 of the needed capital while the remaining $2,700,000 lump sum amount will be required from tax-based support in 2020.

Operating costs would also need to increase by approximately $205,000 per year to include the addition of 1 full-time crematorium operator, 1 seasonal and 1 part-time administrative staff to support the crematorium for extended evening and weekend hours in order to meet the demands of our customers.

Option 2 – Wind-down Crematorium Operations and Advance Interior Niche Space Capital Investment

The wind-down scenario would not require capital investment for retort replacement; however, chapel renovations and future interior niche space opportunities would require capital investment of $700,000 spread over the next 10 years. It is estimated that the current cooler and retorts with maintenance will function for 1 more year at the most. Interior niche expansion would be phased in based on market demand starting with renovations to the current chapel. Subsequent phases would commence on the lower level and include the removal of the existing retorts and work spaces, addition of windows and improvements to the lands surrounding the building to accommodate exterior cremation gardens, interment and inurnment options.

Capital investment to renovate the existing chapel building to support interior niche demand would be phased in at this time; starting with renovations on the upper chapel level and phasing in the lower level renovations to meet market demand and as per the capital forecast. Some loss of cremation revenue would be offset by additional sales of interior niches. When the retorts are decommissioned, pre-paid cremation services would need to be paid out, or agreements made with other local cremation operators.

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Financial assessments by City staff include significant assumptions and forecasting due to the uncertain nature of the current cremation business climate and market volatility. It is possible that despite conservative revenue assumptions by staff, the cremation revenues modelled in Option 1 may be lower than anticipated and could result in a higher tax based support. City staff also expect that regardless which option is selected, the cemetery can no longer operate as an enterprise and will require tax-base funding by 2020 for Option 1 and by 2024 for Option 2.

B. Financial Implications An overall decline in cremations has occurred since provincial legislation allowed for the privatization of crematoriums in 2012 (see Graph 1). In the fall of 2014, a consortium of independent funeral homes opened a crematorium in Strathroy, ON and by the end of 2015, the City saw a decrease of 262 cremations, or 16.4%, along with the loss of 10 funeral homes.

There is currently approximately $1,380,000 in prepaid cremations recorded at Parkview which is currently held in trust and available to pay out as needed. Alternatively, the City may also explore opportunities for local crematorium to take on existing prepaid cremations.

Cemetery Reserve

The following table represents the estimated capital and operating impacts of each option and the corresponding impact on the Cemetery Reserve. Both options result in depletion of the reserve and the resulting need for tax-based support by 2020 for Option 1 and by 2024 for Option 2.

Table 1: Projections 2019 – 2028 all estimates in $000’s #1 Full Renovation #2 Wind Down & Scenario & Niche Expansion Niche Expansion Total Capital Expansion $3,200 $700

Tax-Based Support Capital needs for Expansion $2,700 $300 Capital for Other Planned Projects $850 $707 Total Cumulative Operating Deficit to 2028 $1,383 $812 Total Required Tax-Based Funding $4,933 $1,819 Year Reserve Depleted 2020 2024

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Public Consultation

The public consultation process will explore several engagement opportunities to gather feedback, questions and comments from the general public. This will include the use of Public Information Centres (PIC’s), feedback questionnaires and online options such as Engage Waterloo.

C. Technology Implications

None.

D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)

Corporate Excellence: Planning that assists in minimizing the long-term tax-based support needed for the ongoing capital and operating needs of Cemetery Services and the Cemetery Care and Maintenance Fund.

Strong Community – cemetery supports historic preservation practices and contributes to a meaningful sense of place for visitors as they connect to the non-living.

E. Previous Reports on this Topic

COM2016-020 Cemetery Services-Advancement of Land/Lease Crematorium Disposition RFP

F. Approvals

Name Signature Date

Authors: Jeff Silcox-Childs, Susan Boldt April 4, 2019

Director: Jeff Silcox-Childs April 4, 2019 Commissioner: Mark Dykstra Finance: Keshwer Patel CAO

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Parkview Chapel and Crematorium – Future Considerations COM2019-011

Background

The Parkview crematorium opened in 1977 with one cremation retort. A second retort was added in 1989. Both retorts have been rebuilt and refurbished several times and are nearing the end of their useful life expectancy. Staff estimates that the existing cooler is in need of immediate replacement, and retorts will need to be decommissioned within 1 year at which time the City will need to either close the crematorium or reinvest into a building renovation including new retorts and cooler.

The current facility is a 2 level structure with a chapel on the upper level and the cremation retorts, storage and processing areas located on the lower level which is accessible from the back of the building. A spiral staircase connects the 2 levels. The initial building design did not take into consideration cremation viewing requests which have become more popular in recent years among various cultures. To meet the need for a viewing area, an elevator would need to be included in any future building renovations or expansions.

The chapel on the upper level contains 164 interior niche spaces of which nearly all have been sold. As more families consider cremation options, the inurnment of cremated remains inside climate controlled buildings is growing in popularity and demand. The interior niche spaces are designed to hold one or two urns and can also accommodate some small personal items to memorialize a loved one. Urns and personal item are secured behind glass and accessible upon request by the individual families. Seating is also provided within the chapel and the area is accessible by stairs or a ramp.

Legislation Changes and the Private Sector

Provincial legislation changed in 2012 opening up the privatization of crematorium services in Ontario. This change resulted in the development of very aggressive, large private enterprises which now dominate the market. Parkview crematorium has seen the loss of 10 funeral homes to private industry since the legislation change. Parkview crematorium currently completes approximately 1300 cremations per year (see Graph 1) and staff estimates that 40% of these are from the local community.

Prior to 2012, there were 53 licensed crematoriums in Ontario. Since the legislation change in 2012, 26 new crematoriums have opened. Of the total 79 licensed

Finance & Strategic Planning Page 96 of 153 April 15, 2019 Committee Meeting 6 Community Services crematoriums in Ontario, 4 are municipally run2 and of those, 2 are currently (or are in the process of) leasing out their crematorium space and will no longer be operating the crematoriums themselves.

Graph 1: Annual Cremation Totals and Projections – Option 1

2 Crematorium counts courtesy of the Bereavement Authority of Ontario, AMCTO workshop 21-Mar-19

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Parkview crematorium is currently in direct competition with approximately 10 other crematoriums within the catchment area (i.e. Southern ON). To effectively compete within the private sector, the City will be require to invest in: - 2 replacement retorts; - 1 new cooler; - extended hours of operation (minimum 6 days per week including evenings); - a new accessible viewing area; - an elevator to access the lower level viewing area; - an expansion of the existing interior niche spaces; - other minor chapel renovations.

Option 1 – Reinvest and Continue to Provide Cremation Services

To remain in the cremation business, significant capital investment and associated operating costs will be required, including an increase in staff to meet extended hours of operation. The capital costs would include a 294sqm (3,164sf) building addition, replacement cremation retorts, a new cooler, an elevator, a new lower level interior niche space, viewing area and minor chapel renovations. These improvements would meet the operational and AODA requirements of the crematorium and interior chapel niche space as well as a new viewing area. The new retorts would also greatly reduce greenhouse gas emissions, and combined with the recently opened green burial section, support the cemetery’s vision to be a more environmentally friendly, green option within the region. The publically run crematorium will continue to provide an affordable, respectful, non- sales pressured and culturally neutral cremation option within the region.

Option 2 – Wind Down and Repurpose Building to Interior Niche Space

To discontinue crematorium service and repurpose the existing building to interior niche space will require capital investment. This capital funding would meet the operational and AODA requirements for the chapel and upper and lower level interior niche spaces. Demand for interior niche space is increasing and expected to continue to increase as more families consider cremation and alternative inurnment options. Within the local and surrounding cemeteries, interior niche space is currently offered at Williamsburg Cemetery in Kitchener and Woodlawn Cemetery in Guelph. Option 2 provides an opportunity to provide interior niche options to meet current and future community demand. At the same time, the capital improvements to the chapel ensure the building has a continued use and provides a reliable source of revenue through the sales of interior niches.

Financial Considerations

Finance has made reasonable efforts to ensure assumptions are viable, including hiring a third party public accounting/business consulting firm to provide an independent advisory report on initial projections in 2017. There is, however, no way to guarantee the

Finance & Strategic Planning Page 98 of 153 April 15, 2019 Committee Meeting 8 Community Services future revenue potential values used in the projections and any significant change in volume of cremations will affect the projections, which in turn would require additional tax- based support.

The operation of a crematorium brought a consistent revenue source to Parkview cemetery which allowed the cemetery to function as an enterprise; not requiring tax-based support for four decades. Privatization within the cremation market has greatly impacted the cemetery’s ability to remain as an enterprise. Staff predict that tax-based funding will be required by 2020 if the City remains in the cremation business, or by 2024 if the City decides to no longer provide cremation services.

Option 1 will require annual tax-based support to cover operating and capital costs, estimated to be between $225,000 to $450,000 (0.3% to 0.6%) per year starting in 2021 in perpetuity. An additional one-time tax-based amount of approximately $2,700,000 is required in 2020 to finance the capital requirements of the renovation, once the Cemetery Reserve is exhausted. This could be funded through debentures but would add to the tax support funding requirements. To avoid debenture, the amount would need to be funded through a one-time levy of 3.6% or combination of: - funding allocation from CRF and CIRRF - a reprioritization of the city-wide capital budget, with the coordination of other departments, and/or - a draw down of the Tax Rate Stabilization Reserve, the reserve of last resort

Total tax-based support for operational expenses and capital costs over the 10-year forecast is estimated to be $4,933,000. In addition, the City will also be competing with other private sector providers while providing a tax subsidy to its own crematorium operations to offset operating and capital costs.

Option 2 will also result in initial tax-based support starting in 2024 of about $540,000 (0.7%) due to the shut-down of the crematorium and loss of cremation revenue. However, with niche expansion, the cemetery anticipates a gradual increase in revenues from expanded niche sales with a break-even in operations (excluding ongoing capital requirements) by 2028. Total tax-based support for operational expenses and capital costs over the 10-year forecast is estimated to be $1,819,000. As other area municipalities fund the cemetery operations through tax-based funding, this change will align cemetery treatment with other area municipalities.

Community Considerations

Parkview Crematorium has provided professional cremation services to the greater community for over 35 years. As a long standing member of cemetery and crematorium professionals, Parkview Cemetery and Crematorium has built strong business and personal relationships and is a historically significant/valued asset within our community. Our clientele trust us with their loved ones at very difficult and emotionally challenging times. It is this level of trust, fostered through our reliability and professionalism that encourages families to continue to rely on the services that we provide.

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Within a highly competitive market place, where numerous cremation options are available, the City must weigh the benefit of providing this community benefit or allowing the private sector to provide for the local community. Although the City currently performs +/-1300 cremations annually, approximately 40% of those are from the local community. For the City to continue to operate a crematorium will represent a considerably subsidized service which is currently being provided in the private sector with the City service being subsidized through taxes.

The repurposing of the existing building to interior niche space represents an opportunity to meet the community demand for this growingly popular inurnment option for the foreseeable future. More families are choosing to place their loved ones cremated remains in interior niches or mausoleums, which are more easily accessed throughout the year and can be personalized by adding momentums within the allotted niche space.

Public Consultation

The general public may not be aware that the City operates a crematorium, nor would they necessarily be aware of changes within the cremation market. A public consultation process will provide an opportunity for the general public to provide input into the future options being considered for the Parkview Chapel and Crematorium.

The purpose of the Public Consultation is to inform the general public of the choices being considered for the Parkview Crematorium and Chapel and allow opportunity for public feedback and questions. The process will also provide opportunity for staff to gather information on community needs and wants pertaining to cremation, and inurnment and interment options. Lastly, public engagement will allow staff to gauge how supportive the general public is of each option taking into account the financial implications. This information will help guide the staff recommendation which will be presented to Council.

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STAFF REPORT Chief Administrative Officer

Title: Asset Management Legislation Update Report Number: CORP2019-017 Author: Cassandra Pacey Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: N/A Attachments: NA Ward No.: All

Recommendation:

1. That Council approve CAO2019-017 as information.

A. Executive Summary

The City of Waterloo has invested significant effort and monies into building infrastructure to support community growth over the past few decades. The same dedication used in the past will be necessary going forward to sustain existing and planned infrastructure. Asset management (AM) has been occurring as part of day to day operations for many years and was acknowledged through Council’s approval of the City’s first comprehensive asset management plan (AMP) in 2016 through IPPW2016-099.

The Province of Ontario has recognized the importance of asset management planning when O. Reg 588/17: Asset Management Planning for Municipal Infrastructure was passed on December 2017. The intent of the regulation is to introduce new requirements in order to provide greater standardization and consistency for municipal asset management planning. The purpose of this report is to provide Council with a summary of O.Reg 588/17 phases and related timelines.

B. Financial Implications

There are no immediate financial implications directly associated with this report.

C. Technology Implications

There are no technological implications directly associated with this report

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D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)

Infrastructure Renewal Environmental Leadership Corporate Excellence

E. Previous Reports on this Topic

CAO2019-006 Asset Management Policy Update – March 18, 2019 CAO2017-020 Proposed Municipal Asset Management Planning Regulation – July 24, 2017

F. Approvals

Name Signature Date Author: Cassandra Pacey Commissioner: Cameron Rapp Finance: NA CAO

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Asset Management Legislation Update CORP2019-017

To support community growth, significant effort and monies have been invested by the City of Waterloo into building infrastructure. It will be necessary to use the same level of dedication used over the past few decades going forward in order to sustain existing and planned infrastructure. Council’s approval of the City’s first comprehensive AMP in 2016 through IPPW2016-090 acknowledged that AM is an integral part of daily operations.

The infrastructure and services offered by the City include, but are not limited to, transportation networks, parks, facilities, water distribution and fire services. That infrastructure and services are reflect in the 2016 AMP which identified that the City has an annual average infrastructure funding gap of $20-23M for all assets of which $14- $17M is for tax base assets. The 2016 AMP also identified that if all of the City’s assets were to be replaced today, it would cost an estimated $1.6 billion, or $37,580 per household (in 2016 dollars). It is important to note that the identified funding gap has developed over many, many years and can similarly be reduced over time. Improvements made over time will help mitigate construction disruption for residents and provide capacity for the City staff, and the consulting / construction industry to accommodate the increased rehabilitation or replacement activities.

The importance of AM planning was first recognized in 2012 when the Province of Ontario launched the Building Together: Guide for Municipal Asset Management Plans was launched. The Province continued to recognize the importance of AM planning when O. Reg 588/17: Asset Management Planning for Municipal Infrastructure was passed on December 2017 under the Infrastructure for Jobs and Prosperity Act, 2015.

The new regulation outlines significant guidelines and expectations of the application of asset management principles to help ensure municipalities make informed infrastructure decisions while providing greater standardization and consistency for municipal asset management planning. Most municipal assets are intended to last for decades or beyond and as such it is imperative that the lifecycle costing, performance, risks and impacts of asset ownership are considered. Lifecycle phases consist of demand requirements, design, construction/acquisition, operating, maintaining and disposals. Consideration of these factors will benefit both current and future generations utilizing the city’s assets. Continuous improvement is part of the City’s culture and will be applied to potential opportunities in asset management planning going forward.

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O.Reg 588/17 identifies numerous items that municipalities must consider and include in future AMPs although the requirements are phased in over a 6-year timeframe. This following provides a summary of the phases within O.Reg 588/17 and related timelines.

Strategic Asset Management Policy

Municipalities are required to prepare a Council-endorsed Strategic Asset Management policy by July 1, 2019. A review of the policy is required at least once every five years and updated, if necessary. Council approved the City’s Strategic Asset Management Policy through CAO2019-006 on March 18, 2019.

Phase 1 Requirements: Core Assets

Phase 1 is specific to assets identified as ‘core assets’, comprised of roads, bridges, stormwater, water and sanitary. This phase is to be completed by July 1, 2021 and includes the inventory of core assets, current levels of service and the cost to maintain levels of services. Due to the work completed for the creation of the 2016 AMP, the City has a good inventory of core assets. As a result, the focus over this coming year is to develop processes to collect the identified level of service (LOS) metrics and to confirm the cost to maintain the current level of services. In addition, the consideration of climate adaptation impacts and potential mitigation efforts will be considered throughout the City’s asset management planning activities.

Phase 2 Requirements: Non-Core Assets

Phase 2 requirements include the development of an inventory, the development and reporting level of service metrics and the cost to maintain the current levels of service of all of the non-core assets included in the Municipal Financial Information Return (FIR). Examples of these assets include Facilities, Fire, Parks, and Library. This phase is required to be approved by Council on or before July 1, 2023. Similar to core assets, the work completed for the 2016 AMP has resulted in the collection of an initial inventory of non-assets however additional data collection activities are required to complete the inventory. As a result, the AM Section will be working with subject matter experts (SME) over the next few years to improve the inventory data, and to identify climate adaption and mitigation efforts.

In addition to the inventory data, AM and SME’s will be collaborating to develop community and technical levels of service metrics. As the metrics are developed, they will be tabled before Council for consideration and approval. Once the metrics are approved, the costs to maintain levels of service will be identified for reporting with an AMP on or before July 1, 2023.

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Phase 3 Requirements

The intent of Phase III is to increase the amount of information within municipal AMPs to include the following 3 areas of focus with approval by Council on or before July 1, 2024;

1. Proposed Level of Service In addition to providing information on current LOS, municipalities are required to indicate proposed LOS. This information would need to be outlined each year, for a ten year period. The AMP also needs to outline why the proposed LOS are appropriate for the municipality including the consideration of LOS options, the related risk, how the proposed and current LOS are different from each other as well as the ability of the city to achieve and afford the proposed LOS.

2. Lifecycle Management and Financial Strategy Municipalities are required to document a lifecycle management and financial strategy for assets for a ten year period. This includes outlining the lifecycle activities that would be undertaken to maintain the proposed levels of service and manage risk. This analysis would also be required to take into consideration the full lifecycle costs of the assets, including operating costs such as energy use. This phase is also required to include options for the lifecycle activities that can be considered to achieve the proposed LOS.

With respect to lifecycle activities, it is required that the financial strategy estimate the annual costs to undertake the lifecycle activities, separated by operating versus capital expenditures. To complement that information, municipalities will be required to identify funding dedicated to lifecycle activities, funding options considered and the identification of any funding shortfall. If a funding shortfall is identified, municipalities are required to identify which lifecycle activities that the municipality will undertake and the risks associated with not undertaking the remaining lifecycle activities.

Municipalities with populations greater than 25,000 (such as the City of Waterloo) are required to identify: the estimated costs, both capital and operating; and revenue forecasts by source required to achieve the proposed LOS in order to accommodate growth in population and employment.

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Updates, Approvals and Public Availability Municipalities are required to update their AMP at least once every 5 years once the AMP is aligned with Phase 3 requirements. The AMP is required to be endorsed by the Executive Lead for AM and passed by resolution by Council. The Strategic Asset Management Policy approved by Council on March 18, 2019 through CAO2019-006 identifies that the Executive Lead and Council will receive an AMP for endorsement once every 4 years to align with the three-year budget.

It is important to note that due to the timing of phase 2, Council will be receiving an AMP in 2023 for approval after the approval of the next one-year budget. While this is outside of the intended process of aligning with the three-year budget approval, phase 3 requires Council approval on or before July 1, 2024. The approval of the phase 3 requirements will realign the AMP with the next three-year budget in 2024-2026.

In the year following Council’s approval of an AMP aligned with Phase 3 requirements, an annual review of the City’s AM progress will be undertaken and include:

• Any factors affecting the ability of the municipality to meet its commitments set out in the asset management plan and strategic asset management policy; • A strategy to address these factors; and • Progress on efforts to implement the asset management plan.

To assist the development of the upcoming annual reviews, staff is developing report cards as a snapshot in time to keep both Council and the public apprised on the City’s asset management progress.

Municipalities are required to post their strategic asset management policy and AMP on the municipality’s website, and make copies available to the public, if requested.

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STAFF REPORT Facility Design & Management Services

Title: Waterloo Memorial Recreation Complex – Alignment of Planned Retrofit Work with Facility Expansion Report Number: COM2019-014 Author: Kevin Van Ooteghem, Senior Project Engineer Kim Reger, Senior Financial Analyst Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: None Attachments: Appendix A - Schedule of WMRC Retrofit Items Ward No.: 7

Recommendation:

1. That Council approve report COM2019-014.

2. That Council approve the advancement of routine funding from the 2019 Approved Capital Budget ref. #290 and transfer to WMRC project #180011, budgeted as:

a. $594,000 in 2020 be advanced to 2019 b. $486,000 in 2021 be advanced to 2019

3. That Council approve the following project balances be moved to WMRC project #180011:

a. $597,539 from project #180108, RIM Park & AMCC Roof b. $100,000 from project#110014, Energy Management Upgrades c. $430,000 from project#160163, WPL Mechanical Upgrades d. $232,257 from project#160182, WMRC Feasibility Study

A. Executive Summary

Since August, 2018, the City has been working with Parkin Architects Ltd. (Parkin) on the design of the Waterloo Memorial Recreation Complex (WMRC) expansion, including the new Community Pavilion addition. This work is proceeding as planned and the team is targeting 100% complete Construction Documents by August, 2019. This would allow

Finance & Strategic Planning Page 107 of 153 April 15, 2019 Committee Meeting 2 Community Services construction to begin on the new Community Pavilion and Civic Front additions as soon as October, 2019, pending approvals to proceed.

Although the WMRC expansion is of primary interest, there are also other significant construction projects currently planned for this facility over the next few years. The existing WMRC facility is 25 years old and many of the original building components are reaching the end of their useful life and require replacement or major rehabilitation.

Over the last several months, City staff and Parkin have been collaborating on ways to align both the design and construction phases of the retrofit work with the larger WMRC expansion work. There are significant synergies that can be realized by completing all of this work at once, including: cost savings, reduced operational impacts, seamless integration of building systems, and more.

Additionally, an opportunity exists to enhance the functionality of the existing WMRC Aquatic Change Rooms, as well as upgrade the existing Main Lobby space.

The purpose of this Report is to seek approval from Council to align the 2019 – 2022 funding for planned retrofit work at the existing WMRC, with the $26.7M WMRC expansion and Community Pavilion addition.

The funding required for the planned retrofit work at the WMRC is distributed over the next four years and is not fully available in 2019. In order to align the design and construction activities for the retrofit and new expansion work, 100% of the retrofit funding is required in 2019 (with the exception of the existing moveable pool floor hydraulic rehabilitation, which will be completed in 2021 under a separate contract). This would allow the retrofit work to be awarded to a single contractor, as part of the construction tender for the WMRC expansion and Community Pavilion addition project.

Given the significant benefits of aligning the retrofit work with the major construction activities planned for the WMRC facility in the coming years, staff have prepared a funding strategy for Council’s consideration.

B. Financial Implications

In total, $3,807,156 of potential retrofit work has been identified for the existing WMRC facility. The retrofit items are categorized into the following six design “Packages”:

. Package #1 – Existing Pool Rehabilitation . Package #2 – Partial Main Lobby Refresh . Package #3 – Existing Roofing Replacement . Package #4 – Existing Mechanical & Electrical Upgrades . Package #5 – Site Improvements . Package #6 – Security Upgrades for Food Concessions

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In total, $3,813,189 of potential funding has been identified to support the retrofit work at the existing WMRC facility, coming from the following sources:

1. WMRC retrofit work that is already in the 2019 Approved Capital Budget and the 2020-2028 Capital Forecast = $2,080,000.

2. Additional funding to support the WMRC retrofit work that would be reallocated/prioritized from other Facility capital budgets = $1,733,189.

A summary of the available vs. required funding for the WMRC retrofit work is provided in Table 1. These costs include all taxes, contingencies, escalation, etc.

Table 1: Summary of WMRC Retrofit Funding – Available vs. Required Proposed Funding Available Amount Formula Project Transfers Table 2 $ 1,733,189 Budget 2019 - ref.#293 (routine) Table 3 $ 1,000,000 Budgets 2020-21-ref.#290 (routine) Table 3 $ 1,080,000 Total Funding $ 3,813,189 A Expense Required Items Appendix A $ 3,807,156 B Potential Funds Remaining $ 6,034 A-B

C. Technology Implications

Several of the proposed retrofit items include upgrades to current technology at the WMRC facility.

In particular, upgrades to the existing Building Automation System will improve the overall control of Mechanical/Electrical systems in the building. This will enhance the user experience in the building, as well as improve the overall energy efficiency of the building.

In addition, upgraded Audio/Visual technology is being proposed throughout the facility, including the Main Lobby of the existing WMRC facility.

D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development) A key objective of the Infrastructure Renewal priority area is to “plan, build and upgrade infrastructure to support growth and urban intensification ensuring core needs are met.” This project will help the City plan to meet the current and future indoor recreation needs of a growing community. This project also supports the Corporate Excellence priority, by exploring opportunities to improve operational efficiencies.

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This project also supports the Strong Community priority, as recreation facilities contribute to a sense of belong and vibrancy.

E. Previous Reports on this Topic

CORP2018-032 – WMRC Expansion – Release of Funds CORP2018-060 – Award of RFP18-07 – Consulting Services for the Waterloo Memorial Recreation Complex Expansion

F. Approvals

Name Signature Date

Author: Kevin Van Ooteghem April 8, 2019 Author: Kim Reger

Director: Sunda Siva April 8, 2019 Commissioner: Mark Dykstra Finance: Keshwer Patel CAO

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Waterloo Memorial Recreation Complex – Alignment of Planned Retrofit Work with Facility Expansion COM2019-014

Background

As part of Parkin’s work for the WMRC expansion project, they completed a comprehensive condition assessment of the existing WMRC facility. The goal of this exercise was to identify any major existing building components that require rehabilitation or replacement in order to maintain the day-to-day functions of this facility. In addition, the intent of this assessment was also to identify any other major retrofit or replacement work that could be aligned with the planned expansion at this facility, in order to achieve cost synergies and to reduce the disruption of construction activities by aligning schedules.

In general, the existing building retrofits that were identified can be categorized into the following two areas:

1. Existing building components/system that are reaching the end of their useful life and require replacement or major rehabilitation in order to maintain the current level of service (ex. mechanical systems).

2. Functional and/or aesthetic improvements to existing spaces that are currently not included in the planned expansion work (ex. Full Aquatic Change Room Upgrades and Main Lobby Refresh).

Over the last several months, City staff and Parkin have been collaborating on ways to align both the design and construction phases of the retrofit work with the larger WMRC

Finance & Strategic Planning Page 111 of 153 April 15, 2019 Committee Meeting 6 Community Services expansion work. There are significant synergies that can be realized by completing all of this work at once, including: cost savings, reduced operational impacts, seamless integration of building systems, and more.

Additionally, an opportunity exists to enhance the functionality of the existing WMRC Aquatic Change Rooms, as well as upgrade the existing Main Lobby space. These enhancements were considered during the WMRC Feasibility Study work in 2017, but only at a conceptual level. Since then, the City and Parkin have explored specific options for the Aquatic Change Rooms and Main Lobby for consideration moving forward.

Currently, the implementation of this additional retrofit work (including funding) is mostly beyond the scope of the $26.7M WMRC expansion and Community Pavilion addition project. The funding for this retrofit work is distributed across other Capital Budgets over the next four years and is not fully available in 2019.

In order to align the design and construction activities for the retrofit and new expansion work, 100% of the retrofit funding is required in 2019. This would allow the retrofit work to be awarded to a single contractor, as part of the construction tender for the WMRC expansion and Community Pavilion project.

1.0 Scope of Proposed WMRC Building Upgrades (i.e. Retrofit Work)

After extensive consultation with Parkin and City staff, it is recommended that construction of the WMRC retrofit items be completed as part of the WMRC expansion and Community Pavilion addition project commencing this fall.

A complete list of the additional retrofit items (including the estimated budget cost for each item), is provided in Appendix A.

The additional retrofit items have been categorized into the following six design “Packages”:

Note: All costs noted below are before contingencies, overhead, HST, and inflation. Refer to Appendix A for detailed costing.

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Package #1 – Existing Pool Rehabilitation ($932,916)

This Package addresses several key upgrades and required maintenance related to the existing Aquatic Centre.

A significant item in this package is the comprehensive renovation of the existing Aquatic Change Rooms (Men’s, Women’s, and Alternative Needs). This item was explored at a conceptual level during the WMRC Feasibility Study work in 2017; however, the full scope of work has now been identified and budgeted. The primary motivation for this work is to address the increasing demand in the community for the Alternative Needs Change Room. The funding allocated for this work during the Feasibility Study would address some minimum functional improvements to the Alternative Needs Change Room; however, additional funding is required in order to address the fundamental shift in community need related to the Aquatic Change Rooms.

It is important to note that the rehabilitation of the existing moveable pool floor hydraulics will be completed in 2021, under a separate contract (i.e. the construction cost for this item is not included as part of this report). This work is critical to maintaining the current level of service for the pool and is included in Budget ref. #290 in the 2019 Approved Capital Budget for the year 2021. The total cost of this item is budgeted at $775,000. The timing of this work will be aligned with the Aquatic Change Room work, to minimize the impact to pool operations; however, the design work for this item will be advanced in 2019. The design work will be completed by a firm with specialized knowledge of this type of rehabilitation work.

Package #2 – Partial Main Lobby Refresh ($235,253)

In order to seamlessly blend the new Civic Front addition into the existing facility, a refresh of the existing WMRC Main Lobby area is recommended. This could consist of new lighting, ceiling finishes, flooring, furniture, and functional improvements to the large concrete stairs that currently exit from the arena. As well, a refresh of the main customer service desk is recommended, as the current configuration has some functional challenges.

If this work does not proceed, the Civic Front addition can still proceed as planned; however, there would be an obvious visual disconnect between the newly renovated space and the existing WMRC Main Lobby that was constructed in 1993.

Package #3 – Existing Roofing Replacement ($657,545)

The existing “Barrel Roof” over the WMRC arena is reaching the end of its useful life. A full replacement of this roof is currently planned and budgeted for in the 2019-2022 Budget (ref. #293 – Roofing Replacement and Rehabilitation Program).

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Given that the construction of the new Civic Front is directly adjacent to this area, there is a synergy to adding this scope of work to the WMRC expansion project. In addition, staff are currently working with an external partner to look at the viability of adding roof-top solar panels to a portion of the existing “Barrel Roof”. If this work proceeds, it would require coordination with the roofing replacement work and could impact the timing of this particular item.

Package #4 – Existing Mechanical & Electrical Upgrades ($489,871)

Several main components of the existing mechanical/electrical infrastructure at the WMRC are reaching the end of their useful life. These include the water distribution systems, existing HVAC equipment, and building control systems.

These are planned upgrades and are identified in the 2019-2022 Budget (ref. #290 – Large Scale Capital Repairs – High Priority).

Given that much of this work requires removing ceiling/wall finishes to access equipment, there is a synergy to completing this work at the same time as the WMRC expansion work. Also, upgrading the existing mechanical/electrical control systems for the building will allow the new systems to integrate appropriately with the existing systems, resulting in a more energy efficient building.

Package #5 – Site Improvements ($65,340)

The community has provided consistent feedback about the importance of public transit and pedestrian access to the WMRC. Given the strong emphasis on safe pedestrian movement through this site, additional site lighting is recommended, in particular along areas where new sidewalks will be provided.

Package #6 – Security Upgrades for Food Concessions ($74,070)

As part of the base expansion project scope, the existing food service model at the WMRC will be re-envisioned. This will involve moving away from a large commercial kitchen model to a more targeted delivery of food services to the community. Two of the four existing WMRC food concessions in the arena bowl will be upgraded to enhance their functionality. In addition, a new “café-style” bistro will be constructed in the Main Lobby of the WMRC.

As part of the concession upgrades, it is recommended that additional security features be included (CCTV and Card Access). These upgrades are currently beyond what the base expansion budget can support and would require additional funding.

The design cost for all of these items has been budgeted at $292,475 and is included in the overall cost breakdown (see Appendix A).

Summary of Additional Costs

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Once all the necessary contingencies, allowances, design fees, HST, inflation, etc. are accounted for, the total additional cost of the retrofit items noted in Packages #1 to #6 is $3,807,156.

This cost is over and above the $26.7M that has been allocated for the WMRC expansion and Community Pavilion addition; however, much of this additional work has already been planned and budgeted for in the 2019-2022 budget.

The issue, however, is that much of the funding for these additional items occur beyond the 2019 fiscal year. Consequently, in order to tender these additional retrofit items as part of the main WMRC expansion work, the funding needs to be advanced to the 2019 budget.

In order to advance the necessary funding for the retrofit work, staff are recommending the following funding strategy for Council’s consideration.

2.0 Funding Strategy

The funding strategy for the WMRC retrofit work is a combination of:

1. City Overhead (OH) forgiveness on the base expansion project and additional retrofit items. These savings have already been absorbed in the base project. 2. Transfer of surplus funding from other Facility capital projects ($1,733,189). 3. Prioritization within other Facility capital budgets ($1,000,000). 4. Advancing a total of $1,080,000 of CIRRF funding to 2019; specifically, $594,000 from 2020 to 2019 and $486,000 from 2021 to 2019 (ref. #290 – Large Scale Capital Repairs – High Priority).

This would provide $3,813,189 of total funding for the additional items, leaving a potential estimated $6,034 of funding.

City Overhead Forgiveness

Staff recommend reducing the City Overhead from $730,629 to $330,629 on the $26.7M WMRC expansion and Community Pavilion addition project (i.e. $400,000 reduction). This funding would be redistributed within the overall $26.7M project budget to support additional design and construction work.

In addition, staff are recommending that no City Overhead is carried for the additional retrofit work. This would amount to an Overhead forgiveness of $106,544 on the retrofit work.

Note: The Overhead forgiveness amounts have been taking into account when calculating the funding needs in this report. Funding Transfers from Other Facility Capital Projects

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There is $1,733,189 of surplus funding from other Facility capital projects that could be utilized to fund the WMRC retrofit work (see Table 2).

Table 2: Transfers from Other Facility Capital Projects

Project Transfers Funding Source Amount

Transfer from WMRC Base Project CIRRF (70%) & DC (30%)$ 364,393 Facility & Equipment Project 130151 (WMRC moveable pool floor) Maintenance $ 9,000

Project 180108 (RIM Park & AMCC Roof) CIRRF $ 597,539 Project 110014 (Eng. Mgmt. Upgrade) CRF Funding$ 100,000

Project 160163 (WPL Mech. Upgrade) CIRRF$ 430,000 Project 160182 (WMRC Feasibility Study) CRF/DC 50/50$ 232,257 Total$ 1,733,189

Note: For project 180108, this surplus funding could be used as a contingency on future City-wide roofing work. Alternatively, the funding could be repurposed to address acute needs at the WMRC, including repairs to critical mechanical equipment. Staff recommend using this funding for the WMRC retrofit work.

Funding from 2019-2022 Budget

A total of $ $2,080,000 is required in 2019 to fund the WMRC capital projects listed in Table 3. These are projects that are currently planned for the WMRC over the next four- year budget cycle. Table 3: Planned Facility Projects

Budget Funding Source Amount REF#293 - Replace Barrel Roof (include snow guards, roof tie-off, insulation, flashing) GAS Tax$ 1,000,000 REF#290 - Mechanical and Electrical Upgrades and Replacements CIRRF$ 335,000 REF#290 - Replacement of Hydronic & Domestic Water Distribution Systems CIRRF$ 745,000 Total$ 2,080,000

All the funding listed in Table 3 is already planned for WMRC in the budget and no other facility needs are being permanently forgone to allocate this funding for retrofit work at

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Between routine projects ref. #290 and ref. #293, there is $1,815,000 budgeted in 2019 (see Table 4). Due to other planned projects and funding source restrictions, only $1,000,000 is available in 2019 in Budget ref. #293.

Table 4: WMRC Capital Projects Budget

2019 Approved Budget 2019 2020 2021 Total Budget ref. #290 (routine)$ 695,000 $ 594,000 $ 1,457,000 $ 2,746,000 Budget ref. #293 (routine)$ 1,120,000 $ 1,120,000 Total$ 1,815,000 $ 594,000 $ 1,457,000 $ 3,866,000

Budget Available 2019 2020 2021 Total Budget ref. #290 (routine) $ - $ 594,000 $ 682,000 $ 1,276,000 Budget ref. #293 (routine)$ 1,000,000 $ 1,000,000 Total$ 1,000,000 $ 594,000 $ 682,000 $ 2,276,000

Note: In 2021, the cost of the pool hydraulics of $775,000 has been deducted to show the funding availability for project #290.

Impact to Budget

In order to allocate the necessary funding in 2019 for Budget ref. #290, $594,000 would need to be advanced from 2020 to 2019 and $486,000 advanced from 2021 to 2019.

3.0 Next Steps

Staff recommend advancing the retrofit work for the WMRC as part of the WMRC expansion and Community Pavilion addition. The associated design work would be primarily completed by Parkin, as additional scope to their current contract. The associated construction work would be included as part of the construction tender this fall for the WMRC expansion and Community Pavilion addition. This would allow most of the retrofit construction work to be completed by the same contractor who is awarded the contract for the WMRC expansion and Community Pavilion addition.

Staff are intending to return to Council this summer to request that the funding be released to support the construction work for the WMRC expansion and new

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Community Pavilion addition. At this time, Staff will also present Council with a Class ‘B’ construction cost estimate for this work, along with the latest design concepts.

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Appendix A to COM2019-014 WMRC Alignment of Planned Retrofit Work with Facility Expansion Schedule of WMRC Retrofit Items

ITEM# Package Package #1- Existing Pool Rehabilitation Total Budgeted 1 POOL Pool HVAC Strapping $ 54,450 Y 2 POOL Pool Area Humidity Control $ 90,000 Y 3 POOL Aquatic Change Room Air Handling (Re-Build) $ 202,606 Y 4 POOL Aquatic Change Room Rehab (Basic Improvement Only) $ 285,800 5 POOL Aquatic Change Room Rehab (Premium for Recommend Rehabilitation)$ 300,060 Package #2 - Partial Main Lobby Refresh 6 LOBBY Westvestibule $ 5,490 7 LOBBY New Pedimats $ 11,520 8 LOBBY Perimeter Heating System Upgrades (Lobby Rads, Remote Re-Heats) $ 200,000 9 LOBBY Update Reception Desk $ 18,243 Package #3 - Existing Roofing Replacement Replace Barrel Roof (including snow guards, roof anchors, insulation, and 10 ROOF flashing) $ 657,545 Y Package #4 - Existing M&E Upgrades 11 ME UPGRADE Existing WMRC HVAC (Re-Build) $ 193,976 Y 12 ME UPGRADE Replacement of Hydronic & Domestic Water Distribution Systems $ 164,386 Y 13 ME UPGRADE Control Systems Upgrades (Existing Building) $ 131,509 Y Package #5 - Site Improvements 14 SITE Additional Site Lighting $ 65,340 Package #6 - Security Upgrades for Food Concessions 15 CONCESSIONS CCTV to Food Service Booths and card access $ 74,070 Construction Sub-Total $ 2,454,995

General Requirements - 8% $ 196,400 Fee - 3% $ 79,542 Construction Total - Excluding Contingencies $ 2,730,936

Contingencies Design and Pricing Allowance - 10% $ 273,094 Construction Contingency (cumulative)- 8% $ 240,322 Construction Total - Including Contingencies $ 3,244,352

Soft Costs Design for Item #6 - Pool Hydraulics $ 95,000 Design for Items #1 - 16 (excluding item #6) $ 197,475 Total Soft Costs $ 292,475

Contingency Soft Costs - 5% $ 14,624 Contingency on Soft Costs $ 14,624

Sub-Total - Before OH, HST, Inflation $ 3,551,451

Unrecoverable HST - 2.0% $ 71,029 Overhead - 3% (forgiveness) Inflation - 5.2% $ 184,675 Total Project Cost $ 3,807,156

Note: Budgeted “Y” means the item is budgeted in the 2019 Approved Capital Budget, 2020-2028 Proposed Capital Forecast.

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STAFF REPORT Finance

Title: 2019 Business Improvement Area Levy Report Number: CORP2019-019 Author: Paul Hettinga Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: N/A Attachments: Appendix A 2019 By-Law to Determine How the BIA Collects Levies from Properties within its Boundaries Appendix B 2019 UpTown Waterloo BIA Area Map Ward No.: Ward 7

Recommendation:

1. THAT Council approve Staff Report CORP2019-019.

2. THAT Council adopt the By-Law attached as Appendix A to this report for imposition of a Special Levy on the rateable properties prescribed within the UpTown Waterloo BIA Area Map Schedule B,

3. THAT Council approve the UpTown Waterloo BIA 2019 estimate of $657,759 to fund the operating and capital costs of the Board of Management for UpTown Waterloo Business Improvement Area.

A. Executive Summary At an Annual General Meeting held on March 6, 2019, the Board of Directors and members of the UpTown Waterloo BIA met to consider the 2019 BIA Draft Budget and ratify the Budget and 2019 UpTown BIA Area Map attached as Schedule B to this report.

Section 205 of the Municipal Act, S.O. 2001, as amended, provides that a Council of a local municipality shall approve the estimates of all sums required during the year for the purposes of the Board of Management for Business Improvement Areas. Section 208 of the Municipal Act provides that the Council shall annually raise the amount required for the purposes of the board of management and may establish a special charge to raise the funds required.

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The 2019 UpTown Waterloo BIA Budget Estimates shows total operating expenditures to be $700,620 (2018 - $705,934) and capital expenditures to be $400,000 (2018 - $446,490). A membership levy in the amount of $657,759 (2018 - $617,729) is required to support budgeted capital and operating expenditures.

Council is asked to approve 2019 UpTown Waterloo BIA budget estimate and the required membership levy in support of this estimate. Following this action, under Section 312(4) of the Municipal Act, the municipality shall levy as a separate tax rate on applicable tax classes within the boundary area amounts to satisfy 2019 membership levy of $657,759.

B. Financial Implications None

C. Technology Implications None

D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)

E. Previous Reports on this Topic CORP2018-021 – 2018 Business Improvement Area Levy

F. Approvals

Name Signature Date Author: Paul Hettinga Director: Paul Hettinga Commissioner: Keshwer Patel Finance: CAO

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CORP2019-019 2019 Business Improvement Levy Appendix A

THE CORPORATION OF THE CITY OF WATERLOO

BY-LAW NO. 2019 –

BY-LAW TO DETERMINE HOW THE BIA COLLECTS LEVIES FROM PROPERTIES WITHIN ITS BOUNDARIES

WHEREAS the UpTown Waterloo BIA is an improvement area under Section 204 of the Municipal Act, 2001 that charges annual levies to its members;

AND WHEREAS the Board of Directors and members of the UpTown Waterloo BIA met on March 6, 2019 to consider and ratify the following:

1. That the area shown on Schedule “B” of this By-Law as BIA 1, BIA 2 and BIA 3 is designated as an improvement area, pursuant to Section 204 and 209 of the Municipal Act, 2001, for the purpose of improving, beautifying and maintaining municipally-owned land, buildings, and structures in the designated area, beyond that provided by the municipality by large, and to promote the designated area as a business and shopping area.

2. To collect a sum sufficient to pay the cost of the improvement, beautification and maintenance of the area, as established by estimates adopted for the year for the purpose referred to in Section 1 above, shall be levied as a special charge in each year upon the properties assessed in a prescribed business property class in the area, which shall be borne and paid by them in the proportion that the assessed value of the real property used as the basis for computing the assessment of each of the properties bears to the assessed value of all the real property in the area used as the basis for computing assessment.

3. Notwithstanding, Section 2, the special charge levied against the properties assessed in BIA 2 and BIA 3 shall be at a rate adjusted and determined on an annual basis by the BIA and approved by Council and shall be a proportion of the rate of the levy that is charged to properties based in BIA 1.

4. That the total levies to be collected in a given year be established annually by the Board of Directors of the BIA and ratified by the membership, along with the map

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to be attached to this By-law at an Annual General Meeting to be held no later than March 31st of the year for which the map and levies are to apply.

5. For any adjustment to occur in the special charges to be levied against BIA 1 or BIA 2 or BIA 3 in any given year, the BIA shall notify the Corporation of the City of Waterloo no later than March 31 of the calendar year in which the change shall occur.

6. The charges levied pursuant to BIA 1, BIA 2, and BIA 3 shall be collected by the City of Waterloo in the same manner and with the same remedies as provided for the collection of taxes and then forwarded to the BIA without addition or offset.

NOW THEREFORE the Council of The Corporation of the City of Waterloo enacts as follows:

1. That this by-law shall repeal and replace any former by-law relating to the collection of taxes.

2. That this by-law shall come into force and effect on the date of its final passing.

3. This by-law shall come into force and effect on the date of its passage.

ENACTED this _____ day of ______, 2019.

Approval Date Print Name Initials Blank Signature

Corporate

Services D. Jaworsky, Mayor

Legal

Finance O. Smith, City Clerk

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CORP2019-019 2019 Business Improvement Area Levy Schedule B

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STAFF REPORT Finance

Title: 2019 General Tax Levy Report Number: CORP2019-020 Author: Paul Hettinga Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: N/A Attachments: Appendix A – 2019 General Tax Levy By-Law Ward No.: City-Wide

Recommendation:

1. THAT Council approve CORP2019-020

2. THAT Council adopt the 2019 General Levy By-law attached as Appendix A to this report based on a municipal levy of $74,950,822.

A. Executive Summary Section 312 of the Municipal Act, 2001, provides that a local municipality shall, each year, pass a by-law for the purpose of raising the general local municipal levy. On budget day February 11, 2019, Council confirmed a tax increase of 2.2%. This increase translates to a tax levy of $74,950,822 when assessment growth of $1,074,843 or 1.5% is included.

B. Financial Implications The tax levy is $74,950,822, with an assessment growth of 1.5% or $1,074,843.

Prior Years (2018) Levy $72,287,541 Assessment Growth $ 1,074,843 Approved Levy Increase 2.2% $ 1,588,438

2019 Total Levy $74,950,822

* Assessment Growth relates only to new or changed properties and not phased in assessment of existing properties.

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C. Technology Implications

None

D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)

Corporate Excellence – processing annual by-law as required by legislation.

E. Previous Reports on this Topic CORP2018-024 – 2018 General Tax Levy – April 16, 2018

F. Approvals

Name Signature Date Author: Paul Hettinga Director: Paul Hettinga Commissioner: Keshwer Patel Finance: Keshwer Patel CAO

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2019 General Tax Levy CORP2019-020

Section 312 of the Municipal Act, 2001, provides that a local municipality shall, each year, pass a by-law for the purpose of raising the general local municipal levy. The General Tax Levy By-law (Appendix A) sets out the proposed 2019 tax rates. It directs the Treasurer to add to the City tax rates, the tax rates established by the Regional Municipality of Waterloo for Regional purposes, and the tax rates established by the Ministry of Finance for educational purposes in order to determine the overall rate to be used for the calculation of the 2019 final levy.

On February 11, 2019, Council approved a tax increase of 2.2%. This increase translates to a 2019 tax levy of $74,950,822 when assessment growth of $1,074,843 or 1.5% is included.

The final assessment growth value is provided in MPAC 2018 Market Change Profile – Estimated Growth Report, Roll Edition December, 2018, also known as the Final Roll of Return.

The by-law gives the City Treasurer the discretion to determine the appropriate installment dates, and provides that the default penalty and interest on tax arrears be set at 1.25% each and every month in which default continues. The installment dates for the residential, farm and managed forest property tax classes are Tuesday, July 3, 2019 and Tuesday, September 3, 2019. The bills would be mailed the week of May 27, 2019.

The installment payment dates for the commercial, industrial and multi-residential property classes are yet to be determined. These business property tax classes are subject to the complex capping calculations that determine the maximum tax levy. The timelines for the completion of these calculations is coordinated across the Region. The Region expects to bring forward the capping amounts in early June, 2019. Once complete, the due dates will be determined by the Treasurer.

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Table 1 below outlines the City of Waterloo Tax Rates in a summarized format (see Appendix “A” attached to this report for complete listing):

Table 1: 2019 City of Waterloo Tax Rates

Tax Class Description City

Residential R1 Residential: Farmland Awaiting Development 0.245014% RH Residential: Full, Shared Payment In Lieu 0.326685% RT Residential: Full 0.326685% RDEP Residential Taxable: Education Only 0.000000%

Multi-Residential M1 Multi-Residential Taxable: Farmland Awaiting Development Phase 2 0.245014% MT Multi-Residential Taxable 0.637036% NT New Multi-Residential Taxable 0.326685%

Commercial C1 Commercial Taxable: Farmland Awaiting Development 0.245014% CH Commercial Taxable: Full, Shared Payment in Lieu 0.637036% CT Commercial Taxable: Full 0.637036% CU Commercial Taxable: Excess Land 0.541481% CX Commercial Taxable: Vacant Land 0.541481% DT Office Building Taxable: Full 0.637036% DU Office Building Taxable: Excess Land 0.541481% GT Parking Lot Taxable: Full 0.637036% HT Landfill Taxable: Full 0.519430% ST Shopping Centre: Full 0.637036% SU Shopping Centre: Excess Land 0.541481% XT Commercial (New Construction) Taxable: Full 0.637036% XU Commercial (New Construction) Taxable: Excess L and 0.541481% YT Office Building (New Construction) Taxable: Full 0.637036% ZT Shopping Centre (New Construction): Full 0.637036% ZU Shopping Centre (New Construction): Excess Land 0.541481%

Industrial IH Industrial Taxable: Full, Shared Payment in Lieu 0.637036% IK Industrial Taxable: Excess Land, Shared Payment in Lieu 0.541481% IT Industrial Taxable: Full 0.637036% IU Industrial Taxable: Excess Land 0.541481% IX Industrial Taxable: Vacant Land 0.541481% JT Industrial (New Construction) Taxable: Full 0.637036% LT Large Industrial Taxable: Full 0.637036% LU Large Industrial Taxable: Excess 0.541481%

Other FT Farm Land: Full 0.081671% PT Pipeline Taxable: Full 0.379380% TT Managed Forest 0.081671%

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Analysis:

The following chart depicts the proportion of tax revenue the City of Waterloo derives from five broad property tax classes: Residential / Multi-Residential, Other (Farm / Managed Forest/Pipeline), Commercial, Industrial, and Exempt. The burden of taxation has remained relatively stable with a modest shift from the Residential / Multi- Residential tax class to the Commercial and Industrial tax classes.

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The City of Waterloo experienced an 5.62% overall weighted assessment increase in 2019. Not all property values within a tax class increased at the overall average of 5.62%. In general terms, the result is a tax shift to the property owners in the tax class with the higher percentage of assessment increase away from those classes with increases less than the average. The City of Wateroo Roll of Return for 2018 added $1.22 billion in weighted assessment valuation. The increase is driven by two components:

1. Net growth of approximately 1.5% ($323 million). This translates to an increase in tax levy of $1,074,843. 2. Phase-In on existing assessment 4.1% ($899 million). This has no impact on the tax levy.

Residential and Other property classes have a weighted increase less than the average phase-in of 4.1% and therefore will see a reduced share of the tax levy.

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Residential tax class properties are experiencing a wide variety of change to assessment values. 92% or 33,668 Residential/Multi-Residential properties experienced a phase-in CVA increase of 4.1% or less. These properties will experience a shift in taxation resulting in a tax increase of less than the budgeted 2.2%.

Residents are encourages to examine Schedule 2 on the back of their final tax bill to view the impact of tax changes due to reassessment and the impact of the various levels of government levy changes.

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CORP2019-020 Appendix A THE CORPORATION OF THE CITY OF WATERLOO

BY-LAW NO. 2019 –

Being a BY-LAW TO PROVIDE FOR THE 2019 GENERAL TAX LEVY AND FOR THE PAYMENT OF 2019 PROPERTY TAXES

WHEREAS s. 312 of The Municipal Act, 2001, S.O. 2001, c.25, as amended, provides that the Council of a local municipality shall, after the adoption of estimates for the year, pass a by-law to levy a separate tax rate on the assessment in each property class;

AND WHEREAS the tax ratios set by the Regional Municipality of Waterloo are subject to the approval of the Minister of Finance;

AND WHEREAS all property assessment rolls on which the 2019 taxes are to be levied have been returned and revised pursuant to the provisions of the Assessment Act subject to appeals at present before the District Court and the Ontario Municipal Board;

AND WHEREAS “Residential Assessment”, “New Multi-Residential Assessment”, “Multi-Residential Assessment”, “Commercial Assessment”, “Industrial Assessment”, “Pipeline Assessment”, “Farm Assessment” and “Managed Forest Assessment”, as defined in the Assessment Act as amended by Regulations thereto, have been determined on the basis of the aforementioned property assessment rolls;

AND WHEREAS the tax rates on the aforementioned property classes and property sub-classes have been calculated pursuant to the provisions of the Municipal Act and the manner set out herein;

AND WHEREAS the 2019 levy for all purposes has been set at $74,950,822;

NOW THEREFORE the Council of The Corporation of the City of Waterloo hereby enacts as follows:

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1. For the year 2019, the City of Waterloo shall levy upon the Residential Assessment, upon the New Multi-Residential Assessment, upon the Multi-Residential Assessment, upon the Commercial Assessment, upon the Industrial Assessment, upon the Pipeline Assessment, upon the Farm Assessment and upon the Managed Forest Assessment the rates of taxation per current value assessment for City purposes set out in Schedule “A” attached hereto and which forms part hereof.

2. For the purposes of this by-law

a. Commercial assessment applies to all commercial assessment including but not limited to general commercial assessment, office building assessment, shopping centre assessment, parking lot assessment, commercial new construction assessment, office building new construction assessment, shopping centre new construction assessment and commercial (as defined in this section) shared as a PIL assessment;

b. Industrial assessment applies to all industrial assessment including but not limited to general industrial assessment, large industrial assessment, industrial new construction assessment, large industrial new construction assessment and industrial (as defined in this section) shared as a PIL assessment.

3. For payments in lieu of taxes due to the City of Waterloo under the Municipal Act:

a. The actual amount due will be based on the assessment rolls, rates of taxation for the year 2019 and the sharing formula pursuant to the Municipal Act and regulations that may apply from time to time.

4. THAT subject to any required approvals, the Treasurer is hereby directed to add to the City tax rates, the tax rates established by the Regional Municipality of Waterloo for Regional purposes, and the tax rates established by the Ministry of Finance for education purposes, on these property classes in order to determine the overall rate to be used for the calculation of the 2019 Final Tax Levy.

5. THAT the 2019 Final Tax Levy shall be payable in two (2) installments (the “First Installment” and the “Second Installment”) and that the City Treasurer shall determine the two (2) dates on which the First and Second Installments are due (the “First Due Date” and the “Second Due Date”) for those properties mentioned in sections 1 through 3, both inclusive.

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6. THAT a charge of 1.25% of the amount of the First Installment due and unpaid by the end of the First Due Date shall be imposed as a penalty for the non-payment of the First Installment.

7. THAT a charge of 1.25% of the amount of the Second Installment due and unpaid by the end of the Second Due Date shall be imposed as a penalty for the non-payment of the Second Installment.

8. THAT an interest charge of 1.25% of the amount of the First Installment due and unpaid by the end of the First Due Date shall be imposed for each month or fraction thereof, in which the default continues.

9. THAT an interest charge of 1.25% of the amount of the Second Installment due and unpaid by the end of the Second Due Date shall be imposed for each month or fraction thereof, in which the default continues.

10. THAT all penalty and interest charges provided for in this by-law shall be deemed to be part of the 2019 Final Tax Levy on which the penalty and interest charges have been imposed.

12. The City Treasurer may mail, or cause the same to be mailed, to the residence or place of business of such person indicated on the last revised assessment roll, a written or printed notice specifying the amount of taxes payable.

13. Taxes are payable at the Municipal Office of The Corporation of the City of Waterloo which is located at 100 Regina Street South, Waterloo, Ontario.

This by-law shall come into force and effect on the date of its final passing.

Enacted this ______day of ______, 2019. Approval Date Print Name Initials Blank Signature

Corp D. Jaworsky, Mayor

Legal

Finance O. Smith, City Clerk

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Schedule “A” – 2019 City of Waterloo Tax Rate

Tax Class Weighting Description City C1N 0.75 Commercial Taxable: Farmland Awaiting Development 0.245014% CHN Commercial Taxable: Full, Shared Payment in Lieu 0.637036% CTN Commercial Taxable: Full 0.637036% CUN 0.85 Commercial Taxable: Excess Land 0.541481% CXN 0.85 Commercial Taxable: Vacant Land 0.541481% DTN Office Building Taxable: Full 0.637036% DUN 0.85 Office Building Taxable: Excess Land 0.541481% FTEP Farm Land: Full English Public 0.081671% FTES Farm Land: Full English Separate 0.081671% GTN Parking Lot Taxable: Full 0.637036% HT Landfill Taxable: Full 0.519430% I1N 0.75 Industrial Taxable: Farmland Awaiting Development 0.245014% IHN Industrial Taxable: Full, Shared Payment in Lieu 0.637036% IKN 0.85 Industrial Taxable: Excess Land, Shared Payment in Lieu 0.541481% ITN Industrial Taxable: Full 0.637036% IUN 0.85 Industrial Taxable: Excess Land 0.541481% IXN 0.85 Industrial Taxable: Vacant Land 0.541481% JTN Industrial (New Construction) Taxable: Full 0.637036% LTN Large Industrial Taxable: Full 0.637036% LUN 0.85 Large Industrial Taxable: Excess 0.541481% M1EP 0.75 Multi-Residential Taxable: Farmland Awaiting Development Phase 2 English Public 0.245014% M1ES 0.75 Multi-Residential Taxable: Farmland Awaiting Development Phase 2 English Separate 0.245014% MTEP Multi-Residential Taxable: English Public 0.637036% MTES Multi-Residential Taxable: English Separate 0.637036% MTFP Multi-Residential Taxable: French Public 0.637036% MTFS Mult-Residential Taxable: French Separate 0.637036% MTN Multi-Residential Full No Support 0.637036% NTEP New Multi-Residential Taxable - English Public 0.326685% NTES New Multi-Residential Taxable - English Separate 0.326685% NTFP New Multi-Residential Taxable - French Public 0.326685% NTFS New Multi-Residential Taxable - French Separate 0.326685% NTN New Mult-Residential Taxable - No Support 0.326685% PTN Pipeline Taxable: Full 0.379380% R1EP 0.75 Residential: Farmland Awaiting Development 0.245014% RHEP Residential: Full, Shared Payment In Lieu 0.326685% RTEP Residential: Full English Public 0.326685% RTES Residential: Full English Separate 0.326685% RTFP Residential: Full French Public 0.326685% RTFS Residential: Full French Separate 0.326685% RTN Residential: Full No Support 0.326685% STN Shopping Centre: Full 0.637036% SUN 0.85 Shopping Centre: Excess Land 0.541481% TTEP Managed Forest: English Public 0.081671% TTES Managed Forest: English Separate 0.081671% TTFP Managed Forest: French Public 0.081671% TTFS Managed Forest: French Separate 0.081671% XTN Commercial (New Construction) Taxable: Full 0.637036% XUN 0.85 Commercial (New Construction) Taxable: Excess L and 0.541481% YTN Office Building (New Construction) Taxable: Full 0.637036% ZTN Shopping Centre (New Construction): Full 0.637036% ZUN 0.85 Shopping Centre (New Construction): Excess Land 0.541481%

Finance & Strategic Planning Page 135 of 153 April 15, 2019 Committee Meeting 1 Chief Administrative Officer

STAFF REPORT Economic Development

Title: Uptown Community Improvement Plan (CIP) – Continuation of the Façade Improvement Grant Bump-Up Report Number: CAO2019-015 Author: Rachel Martin Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2018 File: 140165 Attachments: N/A Ward No.: Ward 7 – Uptown

Recommendation:

1. That Council approve CAO2019-015. 2. That Council approve the continuation of the Façade Improvement Grant Bump- Up for properties within the BIA boundary for 2019 as requested by the BIA Board. 3. That Council approve the 2019 maximum Façade Improvement Grant available to non-residential buildings within the BIA boundary to be $20,000 per street- facing façade and $30,000 per corner lots.

A. Executive Summary

When the CIP was approved by Council in 2015, the Uptown BIA also expressed an interest in wanting to assist its members in anticipation of the LRT and streetscape construction. However, the Municipal Act includes provisions restricting Business Improvement Areas from directly funding grant/loan programs. As such it was agreed that the City would be responsible for funding all financial incentives through the CIP for properties within the BIA boundary and the BIA would provide ‘offsetting’ funds to the City in support of other future general improvements in the Uptown such as streetscape improvements, public realm enhancements and/or parking.

In addition, when the CIP was approved in 2015, it included a policy where for a period of two years following the initiation of the program, the value of the Façade Improvement Grants available to non-residential buildings within the BIA boundary would be doubled to a maximum total grant per street-facing façade of $20,000 ($10,000 after first two years) and $30,000 ($15,000 after the first two years) where improvements were occurring on both street-facing frontages on a corner lot. This was made possible in part through the ‘offsetting’ funds provided by the BIA.

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Given the challenges that BIA members have faced during the LRT and streetscape construction and continue to face, the BIA has once again offered additional ‘offsetting’ funds to the City in the amount of up to $124,875 for 50% of BIA members’ grants in 2019 in exchange for the continuation of the Façade Improvement Grant Bump-Up for 2019.

This report is seeking Council’s approval for the City to continue with the Façade Improvement Grants at the bumped-up values for 2019. Staff is supportive of this request and recommending approval of the extension.

B. Financial Implications

The approved 2016-2018 capital budget includes $1,970,000 in funding for the Uptown Community Improvement Plan, funded from the Uptown Development Reserve Fund as per ref #705. This amount is in addition to the already funded 2015 amount of $765,000 (via IPPW2015-074) and 2014 amount of $43,450 (via IPPW2014-086).

Council approved the release of the 2016 capital funding in the amount of $765,000 as part of report CAO2016-001, the release of the 2017 capital funding in the amount of $780,000 as part of report CAO2016-012 and the release of the 2018 capital funding in the amount of $424,000 as part of report CAO2017-030.

Based on funding currently available for future Uptown CIP grant awards, staff believes the continuation of the Façade Improvement Grant bump-up for 2019 can be funded within the existing capital budget. The ‘offsetting’ funds provided to the City by the BIA for 50% of BIA members’ grants in 2019 up to a maximum $124,875 will be collected and used for future Uptown improvements such as streetscape improvements, public realm enhancements and/or parking.

C. Technology Implications

There are no technology implications associated with this report.

D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)

Economic Development – complete uptown community improvement plan and initiate implementation.

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E. Previous Reports on this Topic

• CAO2019-005 - Uptown Community Improvement Plan (CIP) – 2018 Annual Update Report • CAO2018-021 - Uptown Community Improvement Plan (CIP) - CBIL's - Spring 2018 • CAO2018-005 Uptown Community Improvement Plan (CIP) Continuation of the Façade Improvement Grant Bump-Up • CAO2018-002 – Uptown Community Improvement Plan (CIP) – Commercial Building Improvement Loans • CAO2017-030 – Uptown Community Improvement Plan (CIP) – 2017 Annual Update Report • CAO2017-009 – Uptown Parking Exemption Program with Section 40 Planning Act Parking Agreement for 6 Regina Street North and 24, 28 and 34 Erb Street East (April 24, 2017) • CAO2016-012 Uptown Community Improvement Plan (CIP) - 2016 Annual Update Report (December 12, 2016) • CAO2016-006 – Uptown Parking Exemption with Section 40 Parking Agreement for 9 King Street North (June 27, 2016) • CAO2016-001 – Uptown CIP Program Activation (February 22, 2016) • CAO2015-020 – Uptown Parking Exemption Program with Section 40 Parking Agreement for 19 Regina Street South (November 16, 2015) • IPPW2015-074 – Recommended Uptown Community Improvement Plan (August 10, 2015) • IPPW2015-053 and IPPW2015-053.1 – Proposed Uptown Community Improvement Plan (June 15, 2015) • IPPW2015-026 – Discussion Paper: Uptown Community Improvement Plan Study (April 13, 2015) • IPPW2014-086 – Uptown Community Improvement Plan Study: Terms of Reference (August 11, 2014)

G. Approvals

Name Signature Date

Author: Rachel Martin Director: Justin McFadden Commissioner: N/A Finance: Keshwer Patel

CAO

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Uptown Community Improvement Plan (CIP) – Continuation of the Façade Improvement Grant Bump-Up CAO2019-015

Section 1 – Background

When Council approved the CIP in 2015, the Uptown BIA and its members were already experiencing challenges associated with LRT and streetscape construction and it was anticipated those challenges would increase in severity and continue for several years. In an attempt to assist its members during this period of transition, the Uptown BIA collaborated with City staff in the preparation of the CIP by submitting feedback on how the City could best support its members through the introduction of the Parking Exemption Program, an increase to the Commercial Building Improvement Loan and the Façade Improvement Grant.

Although the Uptown BIA wanted to assist its members financially, the provisions of the Municipal Act prevent the BIA from directly assisting in the funding of the grant/loan programs to the benefit of private property owners. One way to address this was to have the City be responsible for the funding of any financial incentives for properties within the BIA boundary through the CIP and the BIA would then provide ‘offsetting’ funds to the City in support of other future improvements in the Uptown such as streetscape improvements, public realm enhancements and/or parking. This would in turn allow the City to apply additional funds to the grant/loan programs available within the CIP project area.

When the CIP was approved in August 2015, the BIA committed $200,000 to the City to support other future improvements in the Uptown so that the City could apply additional funds to the grant/loan programs available within the CIP project area. This $200,000 has been collected over the course of 2016, 2017, and 2018 and was allocated to the King Street Streetscape Project - Thematic LED Lighting & Associated Works via IPPW2018-031. In addition to the funding of the CIP programs in the BIA, it also allowed the value of Façade Improvement Grants available to non-residential buildings within the BIA to be increased from $10,000 to $20,000 per street-facing façade and from $15,000 to $30,000 where improvements were occurring on both street-facing frontages. The funds from the BIA allowed this to continue for two years during 2016 and 2017 when the bump-up was to expire. For 2018 the BIA provided up to an additional $200,000 for the continuation of the Façade Improvement Grant bump-up which was approved via CAO2018-005. In 2018 the BIA’s share of grants awarded equalled $75,125 of the $200,000 allocated.

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Although much of the construction associated with the LRT has been completed, a number of BIA members continue to feel the negative impacts associated with the construction of the LRT. In addition, streetscape improvements are scheduled for 2019 on King Street, North of Bridgeport Road. As such, the BIA would like to continue to assist its members in a similar manner as they did during the first three years of the CIP. The BIA has offered to contribute the remaining $124,875 in 2019 (from the $200,000 that was offered in 2018), as ‘offsetting’ funds to the City in exchange for the continuation of the Façade Improvement Grant bump-up for 2019 which has been very beneficial for its members.

Section 2 – CIP Financial Overview

The approved 2019 capital budget and 2020-2028 capital forecast includes an additional $589,000 in funding for the Uptown Community Improvement Plan, funded from the Economic Development Reserve as per ref #110. This annual funding is being allocated to continue the Façade Improvement Grant program beyond December 2020 when all other CIP programs are set to expire. This annual funding will only be utilized once the existing CIP funds have been fully exhausted. Table 1 provides the CIP funding and cost estimates

Table 1 – Funding Approvals to Date and Estimated Costs:

Report Description Approval Date Funding Source $ Amount* Number FUNDING: Funding - 2014 IPPW2014-086 Aug 11, 2014 UPTDV $(43,450) Funding - 2015 IPPW2015-074 Aug 10, 2015 UPTDV $(765,000) Funding - 2016 CAO2016-001 Feb 22, 2016 UPTDV $(765,000) Funding - 2017 CAO2016-012 Dec 12, 2016 UPTDV $(780,000) Funding - 2018 CAO2017-030 Dec 11, 2017 UPTDV $(424,000) Total Funding $(2,777,450) . Expenditures incurred to $778,665 date: . Projected Expenditures: Award CIP Grants $739,233 Future Uptown CIP Grant Awards & Other Program $1,259,552 Related Cost Total Projected $1,517,898 Expenditures: TOTAL EXPENDITURES $2,777,450

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*Note: unrecoverable portion of HST included

Based on funding currently available for Future Uptown CIP Grant Awards ($1.3M), staff believes the continuation of the Façade Improvement Grant bump-up for 2019 can be funded within the existing capital budget. The ‘offsetting’ funds provided to the City by the BIA for 50% of BIA members’ grants in 2019 up to a max of $124,875, will be collected and used for future Uptown improvements such as streetscape improvements, public realm enhancements and/or parking.

Table 2 – BIA ‘Offsetting’ Funds Collected To Date:

Year BIA ‘Offsetting’ Funds Collected 2016 $56,070 2017 $143,930 2018 $75,125 TOTAL $275,125

i) The $275,125 collected to date has already been allocated to the King Street Streetscape Project - Thematic LED Lighting & Associated Works via IPPW2018-031 ii) Potential for the City to collect up to an additional $124,875 in ‘offsetting’ funds in 2019, if CAO2019-015 is approved iii) These ‘offsetting’ funds have been previously budgeted by the BIA (2018 budget) and as such not included in their 2019 budget

Finance & Strategic Planning Page 141 of 153 April 15, 2019 Committee Meeting 1 Integrated Planning & Public Works

STAFF REPORT Integrated Planning & Public Works

Title: RFT19-02 2 Year Asphalt Paving, Concrete Repairs and 2019 RIM Park Pavilion Site Servicing Report Number: IPPW2019-025 Author: Kevin Zach Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: Various Attachments: None Ward No.: City Wide

Recommendation:

1. That IPPW2019-025 be approved.

A. Executive Summary

In accordance with the City’s Purchasing By-Law 2015-071, tenders were solicited for tender RFT19-02 2 Year Asphalt Paving, Concrete Repairs and 2019 RIM Park Pavilion Site Servicing. A key purpose of this contract is to obtain large-quantity cost savings for construction involving asphalt and concrete works. These works will be completed on various Council-approved projects across the City. Bids were received from six contractors. After reviewing the bids, it is recommended that the lowest bidder, Ekum Sekum Incorporated, also known as Brantco Construction, be awarded the contract.

B. Financial Implications

RFT19-02 provides a quotation of construction costs in unit rates based on quantity estimates generated by City staff. The actual construction work will be part of multiple

Finance & Strategic Planning Page 142 of 153 April 15, 2019 Committee Meeting 2 Integrated Planning & Public Works projects throughout the City, as included in the approved 2019 and anticipated 2020 - 2022 Capital and Operating Budgets. Prior to construction, funding approvals will be obtained for specific projects in accordance with the City’s financial policies.

C. Technology Implications

There are no technological implications with respect to this report.

D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)

Multi-modal Transportation – Maintain and improve transportation networks

Infrastructure Renewal - Plan, build and upgrade infrastructure to support growth and urban intensification

E. Previous Reports on this Topic

• IPPW2016-024 Award of Tender RFT16-03 3-Year Asphalt Paving and Concrete Repairs

F. Approvals

Name Signature Date Author: Kevin Zach Director: Ron Ormson Commissioner: Cameron Rapp Finance: Filipa Reynolds CAO

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RFT19-02 2 Year Asphalt Paving, Concrete Repairs and 2019 RIM Park Pavilion Site Servicing IPPW2019-025

Section 1 – Background

RFT19-02 is a two (2) year contract with an option for renewal for a third and possibly fourth year. The renewal options are at the City’s sole discretion. As an established best practice, a key purpose of this contract is to obtain large-quantity price efficiencies for asphalt and concrete work to be completed on various Council-approved projects Citywide. For example, the works completed through this contract typically include the following:

• Road resurfacing (i.e. removal and replacement, or partial-depth milling and replacement, of asphalt pavement) at various locations throughout the City. • Localized repair and/or replacement of concrete curbs and sidewalks in conjunction with the above road resurfacing. • Repair and/or replacement of concrete curbs and sidewalks at various locations throughout the City. • Installation of surface asphalt on road reconstruction projects previously completed to base-course asphalt.

The contract is administered by the City’s Engineering Services Division, with input from the City’s Transportation Services Division. Each year, work is expected to begin by the end of April and be completed by early December. Residents that will be affected by construction activity will receive advance hand-delivered notice. Road closures and detours will also be posted to the City’s website.

In 2019, in addition to the above-noted works, municipal services and an access laneway for the RIM Park Pavilion site at University Avenue East will be constructed.

Section 2 – Procurement Process

RFT19-02 was advertised on Biddingo on February 4, 2019. Upon closing, six (6) compliant submissions were received, as shown in Table 1 below, and opened in the presence of:

• Dave Scheerer, Purchasing Analyst • Kevin Zach, Construction Inspector, IPPW Engineering Services

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Table 1: Contractor Bid Evaluation Summary RFT19-02

Bidder Bid Price Non-recoverable Total including HST (1.76%) non- recoverable HST Ekum Sekum Incorporated o/a $5,599,142.89 $98,544.91 $5,697,687.80 Brantco Construction 410754 Ontario Limited o/a $5,808,804.50 $102,234.96 $5,911,039.46 Sousa Concrete Steed and Evans Limited $5,950,041.00 $104,720.72 $6,054,761.72 Coco Paving Inc. $6,429,111.00 $113,152.35 $6,542,263.35 Capital Paving Inc. $6,430,296.17 $113,173.21 $6,543,469.38 E & E Seegmiller Ltd. $7,254,086.26 $127,671.92 $7,381,758.18

Section 3 – Financial Implications

RFT19-02 provides a quotation of construction costs in unit rates based on quantity estimates generated by City staff. The actual construction work will be part of multiple projects throughout the City, as included in the approved 2019 and anticipated 2020 - 2022 Capital and Operating Budgets. Prior to construction, funding approvals will be obtained for specific projects in accordance with the City’s financial policies.

Finance & Strategic Planning Page 145 of 153 April 15, 2019 Committee Meeting 1 Integrated Planning & Public Works

STAFF REPORT City Utilities

Title: Award of RFT19-04 – Emergency Black Pipe Sewer Lateral Replacement Report Number: IPPW2019-031 Author: Roy Garbotz Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: 150063 Attachments: n/a Ward No.: All – City Wide

Recommendation:

1. That IPPW2019-031 be approved.

A. Executive Summary

Tenders were solicited via RFT19-04 for Emergency Black Pipe Sewer Lateral Replacement. Bids were received from one (1) qualified contractor. After reviewing the bid, it is recommended that McGillivray Trenchless (2017) Limited be awarded the above contract.

B. Financial Implications

Funding for the 2019-2020 Emergency Black Pipe Lateral Replacement project comes from the following sources:

- Existing capital project balance (project 150063) - $349,250 (APPROVED)

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- 2019 operating budget (program 22102) - $496,817 (APPROVED) - 2020 Capital Forecast (Ref#518) - $767,000 (FORECAST)

As the tender award spans over 2 years, spending in 2019 will be limited to approved funding only, with 2020 spending dependant on council approval of the 2020 budget. A summary of the funding approvals and estimated costs is provided in Table 2 of this report.

C. Technology Implications

There are no technological implications with respect to this report.

E. Previous Reports on this Topic

IPPW2017-036 - Award of Tender RFT17-02 Emergency Black Pipe Repair

F. Approvals

Name Signature Date Author: Roy Garbotz Director: Roy Garbotz Commissioner: Cameron Rapp Finance: Filipa Reynolds CAO

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Award of RFT19-04 – Emergency Black Pipe Sewer Lateral Replacement IPPW2019-031 Section 1 – Background

The City of Waterloo has a program of sanitary sewer lateral replacement for sanitary laterals that are in an imminent state of failure resulting in potential loss of sanitary sewer services for residents. Most sewer laterals in the City of Waterloo that require emergency replacement are made of bituminous fibre, more commonly known as black pipe; however, replacement may be required for laterals of other pipe materials. The City’s level of service for sanitary sewer lateral replacement provides the following:

• Sanitary laterals consisting of black pipe material – the City is responsible for the replacement of the black pipe sanitary lateral from the sanitary sewer main to the lateral “clean-out” internal to the building. • Sanitary laterals consisting of all pipe materials other than black pipe – the City is responsible for the replacement of the sanitary lateral from the sanitary sewer main to the property line.

The most common and cost effective method of sanitary lateral replacement is utilizing a trenchless technology described as “pipe-bursting”. This technology greatly reduces restoration costs associated with the lateral replacement and causes a minimal amount of disruption to property owners. Due to the specialized nature of the pipe-bursting technology, there are limited contractors in the Waterloo area that utilize this technique. Although the City has experimented with other trenchless technologies such as cured- in-place-pipe (CIPP) lining, pipe bursting is the most reliable technique due to the significant lateral deterioration encountered in emergency lateral replacements.

Annually, approximately forty (40) sanitary sewer laterals require emergency replacement at a cost of $8,000-$11,000 per lateral. As the black pipe sanitary sewer laterals continue to age there is an upwards pressure for replacement of black pipe sanitary laterals. In addition to the emergency replacement program, the City also proactively replaces black pipe in conjunction with the capital road improvement projects.

Section 2 – Procurement Process

RFT19-04 was advertised on Biddingo on February 11, 2019. The bid closing date was March 13, 2019 and One (1) compliant submission was received. Bids were opened in the presence of:

• Jeff Poetker, Procurement and Inventory Coordinator

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Table 1 below, summarizes the Bid Results.

Table 1: Contractor Bid Evaluation Summary RFT19-04 Emergency Black Pipe Sewer Lateral Replacement

Bidder Bid Price Non- Total incl non- recoverable recoverable HST (1.76%) HST McGillivray Trenchless (2017) Limited $1,173,740.00 $20,657.82 $1,194,397.82

Section 3 – Financial Implications

Funding for the 2019-2020 Emergency Black Pipe Lateral Replacement project comes from the following sources:

- Existing capital project balance (project 150063) - $349,250 (APPROVED) - 2019 operating budget (program 22102) - $496,817 (APPROVED) - 2020 Capital Forecast (Ref#518) - $767,000 (FORECAST)

The operating program noted above is utilized to repair all sewer laterals, not just black pipe, and is in line with the intended work to be completed under RFT19-04.

As the tender award spans over 2 years, spending in 2019 will be limited to approved funding only, with 2020 spending dependant on council approval of the 2020 budget.

The award of RFT19-04 to McGillivray Trenchless (2017) Limited for $1,194,398 is within the approved 2019 Capital and Operating budgets and 2020 forecasts. A summary of the funding approvals and estimated costs has been provided in Table 2 below.

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STAFF REPORT Transportation Services

Title: Award of Tender RFT19-03 – 2019 Sidewalk and Trail Construction Report Number: IPPW2019-030 Author: Chris Dedman Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: April 15, 2019 File: [File] Attachments: [Attachments] Ward No.: All Wards

Recommendation:

1. That IPPW2019-030 be approved.

A. Executive Summary

In accordance with the City’s Purchasing By-Law 2015-071, tenders were solicited via RFT19-03 for the 2019 Sidewalk and Trail Construction Project. Tender bids were received from four (4) qualified contractors. After reviewing the bids, it is recommended that the low bidder, 410754 Ontario Ltd. o/a Sousa Concrete, be awarded the project. This project demonstrates the City’s commitment to improving and expanding the active transportation network to provide multi-modal transportation options.

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B. Financial Implications

The approved 2019 capital budget included a total of $905,000 from the Capital Reserve Fund (CRF) and Development Charges Reserve Fund (DC) for various Transportation projects, as approved on February 11, 2019. These funds are being used in 2019 to construct the project (as per the RFT).

The award of RFT19-03 Sidewalk and Trail Construction to 410754 Ontario Ltd. o/a Sousa Concrete for $628,097.00 (plus applicable taxes) is within the approved capital budget.

C. Technology Implications

There are no technological implications with respect to this report.

D. Link to Strategic Plan (Strategic Priorities: Multi-modal Transportation, Infrastructure Renewal, Strong Community, Environmental Leadership, Corporate Excellence, Economic Development)

Multi Modal Transportation: • Expanding the City’s active and accessible transportation network to improve the health and well-being of our citizens, and provide economical and sustainable transportation options.

Infrastructure Renewal: • Planning and building infrastructure to connect key destinations and keep people moving in the support of urban intensification

Corporate Excellence: • Ensuring balanced consideration of social, cultural, economic and environmental factors when planning and building pedestrian infrastructure

E. Previous Reports on this Topic

• IPPW2019-004, 2019 Annual Sidewalk Report

F. Approvals

Name Signature Date Author: Chris Dedman Director: Christine Koehler Commissioner: Cameron Rapp Finance: Filipa Reynolds CAO

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Award of Tender RFT19-03 – 2019 Sidewalk and Trail Construction IPPW2019-030 Section 1 – Background

The City of Waterloo has been developing its active transportation network of sidewalks, trails and bikeways for many years. At a strategic level, expanding and connecting the network will improve the health and well-being of its citizens, and provide economical and sustainable transportation options.

The location of new active transportation infrastructure was identified in Staff report IPPW2019-004, the 2019 Annual Sidewalk Report. This report identified priority locations using the prioritization methodology for infilling missing links in the network. The rehabilitation or upgrade of off-road trails was identified through visual inspections.

Upon award of RFT19-03, it is anticipated that construction will commence in early spring and be completed by the fall. This project demonstrates the City’s commitment to improving and expanding the active transportation network to provide multi-modal transportation options.

Section 2 – Procurement Process

RFT19-03 was advertised on Biddingo on March 8, 2019. The bid closing date was March 28, 2019 and four (4) compliant submissions were received. Bids were opened in the presence of:

• Jeff Poetker, Procurement and Inventory Coordinator • Chris Dedman, Project Manager, Transportation Services

Table 1 below summarizes the Bid Results.

Table 1: Contractor Bid Evaluation Summary RFT19-03, the 2019 Construction of Sidewalks and Trails:

Bidder Bid Price Non- Total including recoverable non-recoverable HST (1.76%) HST 410754 Ontario Ltd. $628,097.00 $11,054.51 $639,151.51 o/a Sousa Concrete

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Bidder Bid Price Non- Total including recoverable non-recoverable HST (1.76%) HST Vista Contracting $774,867.75 $13,637.67 $788,505.42 Ltd. Hardscape Concrete $811,808.00 $14,287.82 $826,095.82 + Interlock CSL Group Ltd. $1,499,479.50 $26,390.84 $1,525,870.34

Section 3 – Financial Implications

The approved 2019 capital budget included routine funding for the following projects: • 120080 (Ref #724) Bicycle Parking • 120092 (Ref #733) Trails and Bikeways Master Plan Implementation – City Wide • 150057 (Ref #729) Sidewalk New Construction – City Wide

The funding from these projects will be used to complete the sidewalk construction, bike parking and trail rehabilitation, including (trails on Lexington Crt. and Colby Dr., sidewalks on Bathurst Dr., McMurray Rd. and Dawson St., and Bike Parking around ION stations Co).

The award of RFT19-03 Sidewalk and Trail Construction to 410754 Ontario Ltd. o/a Sousa Concrete for $628,097 (plus applicable taxes) is within the approved capital budget, as approved by Council on February 11, 2019, as shown in Table 2 below.

Table 2: Funding Approvals to Date and Estimated Costs: Report Description Approval Date $ Amount* Number Funding: Funding Ref#724 - 2019 routine Feb 11, 2019 $(31,000) Funding Ref#733 - 2019 routine Feb 11, 2019 $(556,000) Funding Ref#729 - 2019 routine Feb 11, 2019 $(318,000) Total Funding $(905,000) Projected Expenditures: RFT19-03 $639,152 Funding for other identified projects, and other Projected Costs (includes but not $265,848 limited to): contract administration, overhead, contingency Total Projected Expenditures: $905,000 TOTAL $0 *Note: non-recoverable portion of HST included

Finance & Strategic Planning Page 153 of 153 April 15, 2019 Committee Meeting