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HomeMy WebLinkAboutFND-020-19Clarington Finance Department Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Council Date of Meeting: June 10, 2019 Report Number: FND-020-19 Resolution: C-233-19 File Number: By-law Number: Report Subject: 2019 Federal Gas Tax Funding Top -Up Recommendations: 1. That Report FND-020-19 be received; and 2. That Council approves the use of the additional $2.2 million in Federal Gas Tax funds announced by the Government of Canada in 2019 for the following projects: a. Lakeshore Road from Riley Road to East Townline b. Concession Road 10 from Town Iine Road to Bowmanville Ave. Municipality of Clarington Report FND-020-19 Report Overview Page 2 This report seeks to obtain Council approval on two capital projects which were not included in the 2019 budget, which will be funded from a one-time top up in Federal Gas Tax money announced by the Government of Canada in March 2019. 1. Background 1.1 On March 19, 2019 the Government of Canada presented its 2019 budget "Investing in the Middle Class"_ 1.2 The budget proposed a one-time transfer of $2.2 billion through the Federal Gas Tax Fund to municipalities to "address short-term priorities". All requirements of the Federal Gas Tax Fund agreement apply to this additional funding. Eligible projects must be within one of 17 categories under the Gas Tax Agreement, of which eight are not categories which the Municipality has assets. The projects must be part of the Municipality's Asset Management Plan, therefore growth related projects are not eligible. 1.3 The Municipality of Clarington received notification that our additional funding would be consistent with the 2018 funding level. In 2018, the Municipality received $2.95 million in Federal Gas Tax funding. 1.4 Finance forwarded to departments the notification that the Municipality would be receiving this additional funding. Operations and Engineering reviewed potential projects to determine suitability for this funding. 1.5 As this funding was announced after the adoption of the 2019 budget, the proposed projects were not included as there was no funding availability. This report is in front of Council to get approval to use the top -up funding for two new projects which would not otherwise have been completed in 2019. 1.5 The funding can be used for any project which meets the Federal Gas Tax program guidelines. The guidelines do allow for funding to be utilized up to 5 years from the date of receipt, however it was clearly indicated that the expectation from the Federal Government was that this additional funding be used to address short term infrastructure needs. 1.7 The Director of Operations and the Director of Engineering worked together to determine which road projects may provide the Municipality with the greatest return for these funds. It was felt that these projects met the guidelines of the Federal Gas Tax Municipality of Clarington Report FND-020-19 Page 3 program the best and would not otherwise be completed but for the incremental funding by the Government of Canada. 1.8 There is no required matching component from the Municipality for this funding. 1.9 While the funding is not time sensitive, the proposed projects are being recommended for completion in 2019 as the additional funding would allow for these projects to be completed now in time for use in the summer and fall hike seasons and would alleviate the back log of projects. If the funding were to be deferred to 2020, these two projects would still be the recommended candidates for use of this funding. 2. Proposed Projects Overview 2.1 The following projects are proposed to be funded by the additional Federal Gas Tax funds announced by the Government of Canada in the 2019 Federal Budget. 2.2 Both proposed projects are included in the Municipality of Clarington's 2017 Asset Management Plan and are considered back -logged projects. The utilization of this additional funding for the projects meets the Federal Government's direction that the one-time funding be used to address short-term infrastructure gap issues. Lakeshore Road from Riley Road to East Townline 2.3 This project would include 11.2km of rehabilitation with high float, ditching and safety improvements including guide rails. 2.4 This section of Lakeshore Road forms part of the Waterfront Trail and is used extensively on an annual basis and is host to several well organized rides in support of various causes. 2.5 This section is part of the Provincial cycling network and there have been concerns with the condition of this road. Concession Road 10 from Townline Road to Bowmanville Avenue 2.6 This project would include 7.6km of rehabilitation with high float, ditching and safety improvements including guide rails. Municipality of Clarington Report FND-020-19 Page 4 2.7 This road is a class 4-5 road with a speed limit from 50 to 70 km/h. With increased development there is higher traffic on this road and there has been 22 accidents on this stretch of road from 2016 to 2019. 3. Concurrence This report has been reviewed by the Director of Engineering Services and Director of Operations who concur with the recommendations. 4. Conclusion It is respectfully recommended that Council approve the use of additional one-time funding for the aforementioned capital projects which are included in the asset management plan and would not otherwise be completed in 2019. 5. Strategic Plan Application Not applicable. Submitted by:Reviewed b . Trevor Pinn, B.Com, CPA, CA, Andrew C. Allison, B. Comm, LL.B Director of Finance/Treasurer CAO Staff Contact: Trevor Pinn, B.Com, CPA, CA, Director of Finance / Treasurer, 905-623-3379 ext.2602 or tpinn@clarington.net There are no interested parties to be notified of Council's decision.