The URL can be used to link to this page

Home My WebLink AboutFND-004-09 Cl~iJlgtDn Staff Report It 1 REPORT FINANCE DEPARTMENT Meeting: COUNCIL Date: Monday February 9th, 2009 Report #: FND-004-09 File #: Resolution #: C ./ tJ 1 'f.. D q By-law #: Subject: POTENTIAL SHOVEL-READY PROJECTS FOR FEDERAL FUNDING OPPORTUNITIES Recommendations: It is respectfully recommended to Council the following: 1. THAT Report FND-004-09 be received; Submitted by: NT/hjl Reviewed bYO ~~ Franklin Wu, Chief Administrative Officer. REPORT NO.: FND-004-09 PAGE 2 BACKGROUND AND COMMENT: 1.0 On January 27,2009, the Honourable Jim Flaherty, Minister of Finance, presented the Federal Government's 2009 Budget. 1.1 The Federal Government's 2009 Budget was advanced ahead of its usual schedule by one month in response to the Opposition Parties coalition to bring down the government illustrating their discord with the Fall Economic Statement presented on November 27, 2008. The Opposition Parties coalition was stopped with the prorogation of Parliament. 1.2 The Federal Government budget has an Economic Action Plan comprised of five (5) main components to address the current economic challenges felt by the residents, businesses and communities across Canada by creating a deficit budget through stimulus funding and tax measures. 1.3 Federal and provincial governments may produce deficit budgets but municipalities are not legally permitted to do so. 1.4 The Federal Government forecasts a balanced budget by 2013-2014. 2.0 The Federal Economic Action Plan components are: 2.1 Improving Access to Financing and Strengthening Canada's Financial System. Improve financial access for consumers and to allow businesses to obtain the financing needed to invest, grow and create jobs. 2.2 Action to Help Canadians and Stimulate Spending. Assist workers directly affected by the economic downturn with enhancements to Employment Insurance and funding for skills and training. Proposes personal income tax relief over 2008-09 and the next 5 fiscal years for all Canadian taxpayers. Doubling the tax relief provided by the Working Income Tax Benefit to make work more financially attractive for low-income Canadians. 2.3 Action to Stimulate Housing Construction. Funding to build quality housing, to stimulate construction and enhance energy efficiency by way of a renovation tax credit of up to $1,350 to Canadian families, funding for energy retrofits, investments in social housing to support low-income Canadians, and low-cost loans to municipalities for housing-related infrastructure. REPORT NO.: FND-004-09 PAGE 3 2.4 Immediate Action to Build Infrastructure. Accelerating and expanding the infrastructure funding over 2 years for the construction and repair of roads, bridges, small craft harbours, broadband internet access, electronic health records, laboratories and border crossings. This will support economic growth and employment this year and next. 2.5 Action to Support Businesses and Communities. Addressing short-term economic challenges facing businesses, regions and communities as a result of the global economic crisis and helping them for long- term competitiveness. 3.0 The Immediate Action to Build Infrastructure component of the Economic Action Plan in the 2009 budget is the most relevant for municipalities and focuses on stimulating growth and employment by investing in 4 types of infrastructure projects. 3.1 The Federal Government's investments in the 4 types of infrastructure projects are: 3.1.1 Provincial, Territorial and Municipal Infrastructure Building on pervious infrastructure commitments, Budget 2009 invests in a more modern and greener infrastructure by: Establishing a two-year, $4 billion Infrastructure Stimulus Fund that will provide funding to renew infrastructure. Providing $1 billion over five years for the Green Infrastructure Fund to support projects such as sustainable energy. Providing $500 million over two years to build and renew community recreation facilities across Canada. Accelerating up to $1 billion in payments over two years under the Provincial- Territorial Base Funding Initiative to expedite "ready-to-go" infrastructure projects Providing up to $500 million over the next two years for infrastructure projects is small communities. 3.1.2 First Nations Infrastructure Supporting 2 year projects aimed at constructing and renewal of schools, water and critical community services. 3.1.3 Knowledge Infrastructure Repairing, retrofitting and expanding facilities at post-secondary institutions, building a new world-class research facility at Waterloo, Ontario, maintaining and upgrading key research facilities in Canada, expanding the health information systems such as the greater use of electronic health records and improving the broadband services in rural communities in Canada. REPORT NO.: FND-004-09 PAGE 4 3.1.4 Federallnfrastructure Repairing and improving federal infrastructure such as passenger rail services, bridges and highways, refurbishing small craft harbours, restoring and improving accessibility to federally owned buildings and improving efficiency of border crossings. COMMENTS: 4.0 The 2009 Federal budget has the intention of releasing billions of dollars for all levels of government - provincial, regional, counties, territorial and municipal for infrastructure purposes as well as tax measures for the Canadian residents and other measures for the construction and business entities across Canada. However, concerns are being raised pertaining to procedures and process where information is unclear. 4.1 The Federal budget has put restrictions on the number and type of municipal projects that will be submitted. As the infrastructure funding is available for a 2 year period, some municipal infrastructure projects expand longer than 2 years such as construction of bridges and roads. It is unclear when projects must be completed. 4.2 In the short term period (2 years infrastructure projects), there will be a high competition among all the levels of government competing for similar services such as consultants, engineering services and contractors which may cause increases in costs when tenders are awarded for all the levels of government. This has occurred in the past when major infrastructure funding was available. The Municipality would most likely be responsible for the increase in costs. 4.3 It's difficult for municipalities to plan its list of "ready-to-go" or "shovel-ready" projects when the details are not available as to what is meant by "ready-to-go" projects. As well, many municipalities have passed or are in the process of passing their 2009 budgets. Clarington would need to use Reserve Funds to finance its anticipated one third contribution. 4.4 Municipalities are anxiously waiting for the Federal Government to provide the infrastructure project criteria, application guidelines, application due dates, funding formula, and financial reporting so they may take advantage of these new funding opportunities. 4.5 While Clarington is anxious to take advantage of all funding opportunities, a competitive application based process has the potential to cause lengthy delays and cost the Municipality funds in preparing fully supported applications with no guarantee of a successful outcome. REPORT NO.: FND-004-09 PAGE 5 4.6 A hidden cost of these programs that is worthy of note, along with application costs, are significant internal staff costs. There are significant reporting requirements throughout the process that cause a strain on burdened resources already reporting on a regular basis for annual Federal Gas tax funding, the Municipal Infrastructure Investment Initiative and the Investing in Ontario Act Funding. 4.7 It is hoped that the Federal Government will not be too restrictive in its infrastructure guidelines especially in the following areas: eligibility of project criteria, the application process (from previous experience, municipalities had to have environmental assessment studies, engineer's reports, and other reports completed or were part of the process which is costly if outsourcing is required), funding access paid in advance (in the past, municipalities incurred the costs first then applied at various stages through completion of several reports for the federal and/or provincial share of the project which may cause municipal cash flow issues) SUMMARY: 5.0 Staff have reviewed their budget and forecasts to put together a list of "shovel- ready" projects for Council's information purposes. Please refer to Attachment "A" for the list of projects. Any queries with respect to specific project should be directed to the appropriate department head. 5.1 Staff will report back to Council once there are more details on the Federal government's infrastructure project funding investments. At that time, staff will provide recommendations for Council's consideration based on the detailed project criteria. Attachments: Attachment A- List of "Shovel-Ready" Projects ATTACHMENT "A" TO REPORT FND-004-09 MUNICIPALITY OF CLARINGTON List of Potential Shovel Ready Projects ,I Estimated Municipal Estimated Region Proiect Name/Descriotion Proiect Cost Proiect Cost Energv Park $11,324,000 $1,954,530 Technology Park $7,398,110 $5,670,000 Rickard Recreation Complex -Replace Skvliohts $150,000 Rickard Recreation Complex -Refrigeration Plant Upnrade $190,000 Rickard Recreation Complex -Mechanical Equipment Upgrades $100,000 Rickard Recreation Complex -Pad "A" Linhting Retrofit $60,000 Rickard Recreation Complex -Roof ReolacemenVReoair $160,000 Rickard Recreation Complex -Pad "A" Washroom Revnovations $50,000 Rickard Recreation Complex -Pad "A" East Side Seatinn & Dresslno Room Renovation $500,000 Clarington Fitness Centre -Major Facilitv Renovation $1,000,000 Darlington Sports Centre -Renlace Concrete Pad $400,000 Rural Broadband Implementation & Installation $1,600,000 Enerov Retrofitting Projects $500,000 Newcastle Memorial Arena -Roof Renlacement and Refriaeration Plant Imnrovements $425,000 Orono Public Library -Parking Lot Resurfacina $20,000 Darlington Sports Centre -Parkinn Lot Resurfacinn $300,000 Memorial Park Clubhouse -Parking Lot Resurfacinn $100,000 Newcastle Community Hall -Wall and Railina Reoairs $50,000 Fire and Court Building -Chiller Renairs $30,000 Ii,.' :1 ~[i ~ il ,I I,. I 1 ;1 ,I l 4 , ;i! :1 ! 1 I '\ I I Page 1 of 3 i~ .....1'. '; i ) ,I t ~ i ATTACHMENT "A" TO REPORT FND-004-09 MUNICIPALITY OF CLARINGTON List of Potential Shovel Ready Projects i !! :1 Estimated Municipal Estimated Region Proiect Name/Descriotion Proiect Cost Proiect Cost Municipal Administrative Centre RBoiler Repairs $70,000 Catch Basin Repairs -100 Catch Basins identified in 3 areas to be replaced $160,000 Holt Road - Rural Road Resurfacing -from Taunton Road to Nash Road $385,000 Maple Grove Road - Rural Road Resurfacing -from Highway #2 to South of Baseline Road turnaround $288,750 Nash Road - Rural Road Resurfacing -from Regional Road #57 to Maple Grove Road $240,625 Concession Road 4, Clarke - Rural Road Resurfacing -from Highwav #115 East to Reaional Road #18 $726,880 Concession Road 1, Clarke - Rural Road Resurfacing -frorn Mill Street East(Newcastle) to Newlonville Road $708,708 Concession Road 1, Clarke - Rural Road Resurfacing -from Newlonville Road to East Townline Road $299,838 Old Scugog Road, Darlington - Rural Road Resurfacing -from Concession Road 4 to Concession Road 9 -excludina the villaaes of Harnpton and Enniskillen $726,880 Waterfront Trail Pavino $594,000 Bowmanville Memorial Park renovation $250,000 Lord Elain Park renovation $555,000 Courtice Memorial Park renovation $450,000 Samuel Wilrnot Nature Area elevated boardwalk $350,000 Grady Dr Structure $1,150,000.00 . Waverlv Road Overoass, Lot 13/14 $1,400,000.00 Green Rd Structure $5,000,000.00 Lot 28, Cone VIII, Darlinaton - Structure $520,000 North Street, Newcastle - Structure $228,000 Lot 35, Cone VIII, Darlinaton - Structure $322,000 l ~ il 'I '., i ,I I I 'I oj i ~ I , Page 2 of 3 ATTACHMENT "A" TO REPORT FND-004-09 MUNICIPALITY OF CLARINGTON List of Potential Shovel Ready Projects " I 1 \ I ,'I I ::1 Estimated Municipal Estimated Region Proiect Name/Descriotion Proiect Cost Proiect Cost Lot 26/27, Cone II, DarlinQton - Structure $591,000 Lot 2/3, Cone II, Darlington - Structure $424,000 Cone Rd 7 Major Overlav - Pavement Rehabilitation $4,400,000.00 Cone Rd 6 Major Overlay - Pavement Rehabilitation $5,000,000.00 Municipal Wide Pavement Rehabilitation $2,000,000.00 Duke St - Road Reconstruction $1,340,000.00 Horsev St - Road Reconstruction $825,000.00 Carlisle Avenue - Road Reconstruction $570,000.00 Hilltop Dr - Road Reconstruction $325,000.00 Mill Lane - Road Reconstruction $715,000,00 Nelson St - Road Reconstruction $575,000.00 Farewell Creek Erosion $400,000.00 TOTAL $55,947,791 $7,624,530 OVERALL TOTAL includes Municioal and Reoion Estimated Costs $63,572,321 il I I i '!I '1 ,j 'I',' " it 'if I 1 j ! I I :1 i j , Page 3 of 3