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HomeMy WebLinkAboutFND-004-08 Cl!1LiIlgron REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Report #: FND-004-08 File#: Resolution #:~ By-law #:doof(-(),d;) 7 Date: Monday February 4, 2008 Subject: Municipal Infrastructure Investment Initiative Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-004-08 be received; 2. THAT Council direct the Director of Finance/Treasurer to submit an application for funding under the Municipal Infrastructure Investment Initiative as follows: OPTION A: Road Rehabilitation on Concession Road 7 from west of Solina Road to Regional Road # 57 at a project cost of $1,217,000 with requested grant funding totaling $1,217,000; OR OPTION B: Clarington Branch Library Construction in Newcastle at a project cost of $3,450,047 with requested grant funding totaling $2,365,780; and 3. THAT the appropriate By-Law be forwarded to Council (template shown in Attachment "A") and that the Mayor and Clerk be authorized to execute any necessary agreements to facilitate the grant application. Reviewed bO~f^ ~ Franklin Wu, Chief Administrative Officer. NT/hjl REPORT NO.: FND-004-08 PAGE 2 Background and Comment: 1.0 On December 21,2007, the Municipality was advised that a new infrastructure initiative had been launched by the Province of Ontario through Infrastructure Ontario. The program is entitled the Municipal Infrastructure Investment Initiative. The total program is for $300 million. 1.1 The program is a one-time program, where Municipalities are able to apply for up to 100 per cent of their project's costs and do not have to match the funding. Grants will be awarded on the basis of competitive applications. The projects must be construction-ready. All types of municipally owned infrastructure is eligible except for public transit. 1.2 Program guidelines were released on January 11, 2008. All funds will be advanced to successful municipalities no later than March 31, 2008. 1.3 In order to be eligible, Council must pass a by-law supporting the application and each municipality may only apply to the program for one project. The application deadline is February 15, 2008. 1.4 The program is structured to give municipalities the discretion to identify their own priority project for application within their area of responsibility and may include water, wastewater, roads, bridges, solid waste, long-term care, social housing, culture (including libraries), tourism, recreation and community energy. Vehicles and equipment are not eligible. 1.5 "Construction ready" projects are those where the municipality has completed or will soon complete, all required studies and approval processes to allow the project to proceed to tendering and construction. 1.6 Due to the extremely short time frame and the construction ready requirement, staff have submitted the most promising projects for Council's consideration. As mentioned, only one project will be considered by the program. No individual funding allocations have been provided so it is difficult to determine the scale of project to submit, particularly since you cannot submit several projects at various sizes and no partial grants will be awarded. It is all or nothing. 1.7 Applicants must explain the benefits that the project will have for the community, the region and the province. Applicants are also asked to explain how their project will help to implement a council-adopted municipal plan (e.g. Official Plan, Asset Management Plan, etc.). 1.8 Funding announcements will be made no later than March 31,2008 and successful applicants will receive their grants as a one-time, lump sum payment no later than March 31, 2008. REPORT NO.: FND-004-08 PAGE 3 Project Alternatives: Visual Arts Centre 2.0 When the program was first announced, the Visual Arts Centre expressed interest pertaining to the Visual Arts Centre Addition and Elevator Construction at an estimated project cost of $1.1 million. Once the details on the program were announced, discussions took place with the Director of Operations. Their project was determined not to be eligible as it could not be construction-ready during the required time frame. Clarington Libraries- Newcastle Branch 3.0 As Council is aware, the Newcastle Library has been approved for a 9,000 square foot stand-alone public library to replace 4,000 square feet currently leased in a commercial plaza. The budget for the facility is $3,450,047 and has faced costing challenges as reported to Council in 2007. 3.1 The goal to replace the library in Newcastle was noted in the Municipality's Business Plan, 2004-2006 and also in the CPl Library Board study entitled "Newcastle Village Community Library Needs Assessment Study, September 2005," prepared by Monteith Brown Planning Consultants, Libraries in Transition, Maclennan Jaunklans Miller Architects and subsequently adopted by Council. It represents a vital part of the preservation of the Village as a focal point to draw residents to the Village and promote economic prosperity. It also will foster the unique heritage of Newcastle Village. This would provide support for the evaluation of the grant request under the economic or commercial benefits for the community as well as social and community benefits created by the project. 3.2 Another of the parameters for evaluation of submissions pertains to the environmental or sustainability benefits. As was discussed in some detail with Council, the Newcastle Library Project is planned to be a green building, the first municipal owned facility of this kind. Over the last few years, the Provincial Government has implemented a series of planning initiatives that together have become a coordinated and comprehensive framework for sustainability. Some of the provincial initiatives are the Greenbelt Plan, Bill 51, the Growth Plan for the Greater Golden Horseshoe and the revised Provincial Policy Statement on land- use planning. These policies establish a clear direction for sustainable development, support of historic downtowns, transit and energy conservation. 3.3 The Municipality of Clarington is implementing this sustainability framework through the development of the Newcastle Library, located in Downtown Newcastle. Council wants to proceed to develop the facility based on the objectives of achieving as much of the leadership in Energy and Environmental Design (lEED) standards as possible. Council is focusing on the use of sustainable design principles to minimize adverse impacts to natural systems, REPORT NO.: FND.004-08 PAGE 4 conserve water and energy, utilize environmentally friendly materials and reduce solid waste and air emissions. 3.4 Although the Municipality of Clarington, like many other municipalities in Ontario, faces a tight fiscal environment over the next few years with competing priorities, the Municipality considers that building green facilities can reduce their total cost of operation over the long run, while at the same time, improving our environment. 3.5 Although it will not be certified, by building the Newcastle Library to LEED principles, our citizens would receive environmental benefits that would include improving air and water quality, reducing solid waste and conserving natural resources. Additional important economic benefits would also include improved employee productivity and satisfaction, reduced operating costs, enhanced asset value, and optimization of the life-cycle economic performance. 3.6 As Council is aware, a portion of the project is eligible for development charges funding as it is partially intended to provide for growth in Newcastle Village. The replacement proportion is not eligible for development charges financing. That is the portion that was initially considered for the grant application. However, as has been noted, the library development charges reserve fund is experiencing less funding than was anticipated. This presents potentially difficult issues surrounding financing of the growth related component. While it is not normally our practice as this would be a development responsibility, it is recommended that a portion of the growth related component be included in the grant application to alleviate potential future shortfalls should this be the project recommended by Council. This may assist to prevent further deferrals of other library projects identified for the future. Concession Road 7, Darlington: 4.0 The Concession Road 7 project would focus on the declining road, bridge and road allowance conditions on a road that sees a large amount of higher speed traffic as an east-west route through Clarington, ultimately tying into the 407. The project which is selected as an option for submission for funding from the Municipal Infrastructure Improvement Initiative is the road rehabilitation of approximately 4.0 km of Concession Road 7 from west of Solina Road to Regional Road 57 (former Darlington Township) including the rehabilitation of Structure # 99037 over Bowmanville Creek between Holt Road and Old Scugog Road. The total estimated cost of the project is $1,217,000. 4.1 As Council is aware, there is a number of declining road and bridge structures in Clarington. The aim is to repair these structures in the most cost effective manner by making repairs before the structures have degraded to the point where complete replacement becomes necessary. The type of work that needs to be done includes overlaying the bridge deck with latex modified concrete, replacing deck expansion joints, repairing concrete parapet walls and miscellaneous components. Work also includes conversion to semi-integral approach slabs and expanding asphalt with 50 mm lift of asphalt. REPORT NO.: FND-004-08 PAGE 5 4.2 This project offers significant safety benefits to our community. Concerns regarding deterioration of bridge structures are obvious as can be seen from recent overpass collapses reported in national news outlets. In Clarington, there is currently the need for $18.4 million in improvements across the Municipality. If a bridge became unserviceable, it could isolate residents, have public safety impacts and potentially delay emergency response times. 4.3 There are future economic benefits inherent in that limited road repair dollars can be utilized on other roads. Further economic benefit would result from the prevention of delays and major detours that might result from a less proactive stance towards road, bridge and culvert rehabilitation. By extending the life cycle of our infrastructure through timely capital investment, the frequency of complete removal and replacement is reduced such that impressive savings are achieved through this alone. Furthermore, improved road and structure conditions will reduce the wear and tear to vehicles, satisfying taxpayers and reducing exposure to liability in the event of a mishap. 4.4 Finally, by maintaining roads and bridges such that total rehabilitation is required less frequently, we also achieve substantial environmental benefits because the complete removal and rehabilitation of roads and structures has a greater environmental impact than maintenance works. This fact is especially important to consider when you look at the fact that bridgework is almost always done around sensitive waterways. 4.5 The Concession Road 7 project that is proposed offers the program benefits of improved road safety and reliability, strategic asset management and minimal impact to the environment, consistent with Provincial policy and used to develop the Provincial Transportation Strategy. 4.6 The project falls under the Infrastructure and Asset Management component of the Corporate Strategic Business Plan, 2007-2010. There are two strategies, monitor condition of road network and implement preventative maintenance works and upgrade rural roads under Objective 2- to enhance infrastructure and road network. Conclusion and Recommendations: 5.0 The Municipal Infrastructure Investment Initiative is a one-time only program where Council can only submit one project for consideration. There is no allocation or indicators of dollar magnitude for any individual submission. Council must pass a specific By-law supporting the application by February 15, 2008. 5.1 Department Heads and the Chief Administrative Officer discussed how best to maximize the opportunity under this program and have provided the resulting two options for Council consideration. REPORT NO.: FND-004-08 PAGE 6 5.2 As a result, Council must select either Option A- Concession Road 7 Road Rehabilitation Works or Option B- Clarington Branch Library Construction in Newcastle. Attachment: Attachment "A" - By-Law template CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169 Attachment "A" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NUMBER 2008- A BY-LAW TO AUTHORIZE THE SUBMISSION OF AN APPLICATION TO THE ONTARIO INFRASTRUCTURE PROJECTS CORPORATION ("OIPC") FOR FUNDING FROM THE MUNICIPAL INFRASTRUCTURE INVESTMENT INITIATIVE FOR A NEW ELIGIBLE CAPITAL PROJECT OF THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON (THE "MUNICIPALITY"), AND TO APPROVE THE EXPENDITURE OF FUNDS ON SAID ELIGIBLE CAPITAL PROJECT; WHEREAS the Municipal Act, 2001 (Ontario), as amended, (the "Act") provides that a municipal power shall be exercised by by-law unless the municipality is specifically authorized to do otherwise; AND WHEREAS the Province of Ontario has recently announced an investment of $300 million dollars for municipal infrastructure as a one-time grant for eligible municipal infrastructure initiatives to Ontario municipalities and Local Services Boards; AND WHEREAS on behalf of the Province of Ontario, OIPC will be administering the Municipal Infrastructure Investment Initiative available to Ontario municipalities and Local Services Boards for the purposes of new eligible municipal infrastructure initiative projects; AND WHEREAS it is now deemed to be expedient to authorize for the municipal purposes ofthe Municipality the new capital project described in column (2) of Schedule "A" (the "Project") attached hereto and forming part of this By-law ("Schedule "A") in the amount ofthe estimated expenditure set out in column (3) of Schedule "A"; AND WHEREAS OlPC has invited eligible Ontario municipalities and Local Services Boards desirous of obtaining funding pursuant to the Municipal Infrastructure Investment Initiative in order to meet capital expenditures in connection with a new eligible capital project to apply to OlPC for such funding by completing and submitting an application through the form provided by OIPC (the "Application"); AND WHEREAS the Municipality has snbmitted an Application to OIPC to request funding in respect of the Project; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON ENACTS AS FOLLOWS: I. The Council of the Municipality of Clarington hereby confirms, ratifies and approves the completion by the Director of Finance/Treasurer of an Application and the submission by such authorized official of an Application, duly executed by such authorized official, to OIPC for the funding of the Project in connection with the Municipal Infrastructure Investment Initiative in the maximum aggregate principal amount of $[.] (the "Funding"). -2 - 2. (a) Construction of the Project in the amount ofthe respective Estimated Expenditure set out in column (3) of Schedule "A" is hereby approved and authorized; (b) The Mayor and Clerk are hereby authorized to conclude contracts on behalf of the Municipality for the construction of the Project in accordance with the Municipality's usual protocol; (c) the Director of Finance/Treasurer is hereby authorized to submit to OIPC or the Minister of Public Infrastructure Renewal on behalf of the Municipality such reports or other documents regarding the Project as may be requested in connection with the Mwricipal Infrastructure Investment Initiative; (d) where applicable, the Engineer of the Municipality will forthwith make such plans, profiles and specifications and furnish such information as in the opinion of the Engineer is necessary for the construction ofthe Project; and (e) where applicable, the construction of the Project shall be carried on and executed under the superintendence and according to the direction and orders of such Engineer; and 3. The Council of the Municipality of Clarington hereby confirms that the Funding will be applied and shall be used exclusively for financing the Project eligible under the Municipal Infrastructure Investment Initiative as set out in Schedule "A" to this By-Law and for no other purposes. 4. This By-law takes effect on the day of passing. By-law read a first time and second time this 11 th day of February 2008. By-law read a third and final time this II th day of February 2008. Jim Abernethy, Mayor Patti L. Barrie, Municipal Clerk (I) Proiect Name Schedule "A" to By-Law 2008- . (2) (3) Description of Elil!ible Capital Estimated Work Expenditure (4) Grant Amount