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HomeMy WebLinkAboutFND-005-07 qlJIilJ.glon REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE March 5, 2007 Resolution #: sPA- ;23Cf-07. Date: Report #: FND-005-07 File #: By-law #: Subject: COMRIF ASSISTANCE FOR MUNICIPAL ASSET MANAGEMENT Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-005-07 be received; 2. That Council authorize staff to enter, complete and submit the necessary paperwork for the Asset Management Program (AMP) as administered by the COMRIF Joint Secretariat; and 3. That Council authorize staff to enter into a Contribution Agreement with the Province of Ontario when required by the COMRIF Joint Secretariat, with the appropriate By-Law being executed by the Mayor and Clerk; and 4. That Council commits to provide its one-third funding contribution to the Asset Management Program consistent with the requirements of the overall COMRIF program at an estimated value of $13,675. --? Submitted by: Nancy T lor, .A., C.A., Director of Finance. Reviewed bD~ ~ Franklin Wu, Chief Administrative Officer. NT/LG/nma REPORT NO.: FND-005-07 PAGE 2 ______________________________________________________________________ BACKGROUND: The governments of Canada and Ontario and the Association of Municipalities of Ontario (AMO) have developed an Asset Management Program (AMP) component of the Canada-Ontario Municipal Rural Infrastructure Fund (COMRIF). The Local Services Boards and all municipalities in Ontario with a population of less than 250,000 are eligible for the Asset Management Program funding. The eligible municipalities may use the AMP funding to enhance knowledge of their existing infrastructure assets, evaluate life-cycle costs associated with the infrastructure they own and operate, assess the capacity of current infrastructure and identify future needs, plan and make infrastructure financing decisions, and train municipal staff in long term infrastructure management. The Asset Management Program is designed to address five principal stages and help Local Services Boards and eligible municipalities move further along the asset management continuum. The five principal stages are diagnostic, inspection, valuation, sustainability/planning, and financial model. The Asset Management Program is a claim-based program requiring the eligible municipalities to first incur eligible costs and then submit a claim statement and final report to the COMRIF Joint Secretariat for reimbursement before a deadline date of March 31, 2009. Eligible municipalities are required to provide one-third of the funding to match the senior government investment which is consistent the funding allocation of the overall COMRIF program. The AMP funding is calculated according to a formula that combines a minimum base amount plus per capita allocations, each representing 50 per cent of total available funding. Adjustments to the formula have been made to address the funding realities of single versus lower and upper tier municipalities. Notional AMP funding has been set aside for each COMRIF-eligible municipality to access. In order for eligible municipalities to access their notional AMP funding or to participate in the AMP program, an Expression of Interest (EOI) is required to be completed by the municipality and submitted by March 31, 2007. Clarington’s notional funding is $27,343 (maximum grant amount). The participating municipalities must relate their answers to the questions in the Expression of Interest to the five principal stages of asset management. Once the completed EOI are submitted to the COMRIF Joint Secretariat, eligible municipalities REPORT NO.: FND-005-07 PAGE 3 ______________________________________________________________________ enter into a Contribution Agreement with the Province of Ontario consistent with the requirements of the overall COMRIF program. The approval process for the AMP is complete once the Contribution Agreement has been duly executed and signed by the Minister of Agriculture, Food and Rural Affairs and the authorized municipal staff. SUMMARY: That Council authorizes staff to enter, complete and submit the necessary paperwork for the Asset Management Program as administered by the COMRIF Joint Secretariat including the entering into a Contribution Agreement with the Province of Ontario with the appropriate authorized municipal signing officers. Council commits to provide its one-third funding contribution to the Asset Management Program consistent with the requirements of the overall COMRIF program. ______________________________________________________________________ Attachments: CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-4169