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HomeMy WebLinkAboutFND-010-098nergicing Ontario Meeting: COUNCIL Staff Report #1 REPORT FINANCE DEPARTMENT Date: Monday April 27th, 2009 Resolution #: ~ '~~_D Report #: FND-010-09 File #: By-law #; ~ ~~' ~~7 Subject: BUILD CANADA FUND -INTAKE 2, INFRASTRUCTURE STIMULUS FUND AND RECREATIONAL INFRASTRUCTURE CANADA PROGRAM .Recommendations: It is respectfully recommended to Council the following: 1. THAT Report FND-010-09 be received by Council; 2. THAT the Municipality submit one (1) application for funding to the Build Canada Fund - Communities Intake 2, three (3) applications to the Infrastructure Stimulus Fund and submit three (3) requests under the Recreational Infrastructure program; 3. THAT the following works be endorsed as the Municipality of Clarington's highest priority projects for the Building Canada Fund -Intake 2: Garnet B. Rickard Recreation Complex -Energy Retrofit - $1,275,000 4. THAT the following works be endorsed as the Municipality of Clarington's highest priority projects for the Infrastructure Stimulus Fund: i) Replacement and Extension of Bridge on Hancock Road South of Nash Road - $890,000 ii) Concession Road 6 from Old Scugog Road to Acres Road - $2,480,000 iii) Concession Road 6, Acres Road to Highway 35/115 - $2,620,000 THAT the following works be endorsed as the Municipality of Clarington's highest priority projects for the Recreational Infrastructure Canada: i) Darlington Sports Complex -Floor Replacement - $400,000 ii) Newcastle Memorial Arena -Roof Replacement and Refrigeration Plant Improvements - $425,000 iii) Garnet B. Rickard Recreation Complex - Pad A East Seating and Dressing Room Renovation - $500,000 6. THAT this report be forwarded to the Build Canada Fund and Infrastructure Stimulus Fund as part of the application process; REPORT NO.: FND-010-09 PAGE 2 7. THAT the applicable departments proceed with the preparation and submission of the Build Canada Fund -Communities Component Intake 2 and Infrastructure Stimulus Fund applications, including all supporting documentation; 8. THAT, if the application is approved, the one-third municipal share of the BCF -Intake 2 project of $425,000 be financed $150,000 from the Community Services Department Building Refurbishment Reserve Fund, $100,000 from the Community Services Capital Reserve Fund and $175,000 from the General Municipal Reserve Fund; 9. THAT, if the applications are approved, the one-third municipal share of the Infrastructure Stimulus Fund projects of $1,996,667 be financed from the General Municipal Reserve Fund; 10. THAT, if the applications are approved, the one-third municipal share of the Recreational Infrastructure Canada projects of $441,667 be financed $100,000 from the Facilities/Parks Maintenance Reserve Fund and $341,667 from General Municipal Reserve Fund; and 11. THAT the attached by-law authorizing the Mayor and CAO and/or Clerk, as required by Build Canada, to execute the BCF Contribution Agreement and Infrastructure Stimulus Fund Agreement and any other documents required to take advantage of this funding opportunity be approved. Submitted by: 'r/" ~ Reviewed ancy T lor, B .A., Director of Fina ce/Treasurer by~ L' Franklin Wu, Chief Administrative Officer. NT/hj I REPORT NO.: FND-010-09 PAGE 3 BACKGROUND AND COMMENT: 1.0 On April 14, 2009, the governments of Canada and Ontario launched the Canada-Ontario Infrastructure Funding second intake under the communities component. 1.1 For communities with populations under 100,000 the communities component of Build Canada Fund (BCF) is applicable. Eligible applicants must apply online prior to 5:00 pm on May 151, 2009. 1.2 The Government of Canada also announced the creation of a new $4 billion Infrastructure Stimulus Fund (ISF), aimed at getting shovels in the ground for infrastructure projects across Canada over the next two (2) years. Ontario has agreed to match federal funding. 1.3 The new Recreational Infrastructure Canada (RING) program was also announced in the 2009 Federal Budget. Application forms are imminent for this category and therefore recommendations are included in this report. BUILD CANADA- INTAKE 2 2.0 There are eighteen (18) project categories under Intake Two of the BCF Communities component including: Brownfield redevelopment, collaborative projects, connectivity and broadband, core national highway system, culture, disaster mitigation, drinking water, green energy, local and regional airports, local roads, public transit, recreation, shortline railways, short sea shipping, solid waste management, sport, tourism and wastewater infrastructure. 2.1 The recreation category is the new addition to this program. The application process has been streamlined for this program. One application can be submitted to this program intake. PROJECTS MUST BE COMPLETED BY MARCH 31, 2011. 2.2 Municipalities will be required to attest that the projects would not have been built over the next two (2) construction seasons without the federal and provincial funding. Each party and the municipality must contribute one-third funding. INFRASTRUCTURE STIMULUS FUND 3.0 The following are eligible project categories under the Infrastructure Stimulus Fund: water and wastewater, public transit, local roads, disaster mitigation, solid waste management, brownsfield redevelopment, culture, airport, port and cruiseship, municipal building and parks and trails. 3.1 There is a very short application form for ISF. Successful proponents will be notified quickly so that construction may begin. Again, THE PROJECT MUST BE COMPLETED BY MARCH 31, 2011. Existing asset rehabilitation is the primary focus of the ISF program. Again, the municipality will be required to attest that the projects would not have been built over the next two (2) construction seasons without the federal and provincial funding. 3.2 Each Municipality can complete three (3) project applications under this program. The Municipality's share is one-third of the costs. REPORT NO.: FND-010-09 RECREATIONAL INFRASTRUCTURE CANADA (RING) PAGE 4 4.0 This program can include construction of new community recreational facilities and upgrades to existing recreational facilities. 4.1 The federal contribution is capped at $1 million for each project and cost sharing of funds at a one-third share. In the 2009 Ontario Provincial budget, a matching community infrastructure fund of $500 million was also announced. It is expected that applications will therefore be based on a one-third cost share. This should be officially confirmed within the next week. If this does not occur as expected and Clarington needs to finance two-thirds then only the first two (2) priorities would be submitted in order to manage the costs. 4.2 Fewer details are available at this time but they will likely be consistent with the rules for the Intake 2 and the ISF programs. Announcements are expected within days and the turnaround time will be very short. STAFF COMMENTS 5.0 Staff has been anticipating program announcements for the last couple of months. Council received Report FND-004-09 at it's meeting of February 9`h, 2009 entitled "Potential Shovel- Ready Projects for Federal Funding Opportunities" (Attachment "A"). 5.1 Due to the strict project completion deadline of March 31, 2011, some projects on the initial list are simply not feasible. Additional refinement has also been underway for many of the other projects. 5.2 Also based on the funding rules, the project cannot currently be incorporated in the 2009 Capital Budgets, as the projects can not have otherwise been built over the next two (2) construction season. RECOMMENDATIONS 6.0 Staff has spent a considerable time attempting to get clarity on the differing rules and process with respect to each of the three (3) funding opportunities in order to maximize the amount of funding that the Municipality may receive and leverage those funds to the best extent possible. 6.1 The Build Canada Fund -Intake 2 has the most detailed requirements and must be one single project. As part of the municipality's energy committee, a detailed energy audit was recently completed for the Garnet B. Rickard Recreation Complex. The total comprehensive cost is $1,275,000. The benefit here is that there will be long term benefits in energy conservation and efficiency. This would assist in the rating of the application as that is one of the objectives of the Federal and Provincial governments. It is therefore recommended as the priority project for application under Build Canada -Communities Component -Intake 2. 6.2 The infrastructure Stimulus Fund (ISF) can receive up to three (3) applications. Grouping of structures or similar/related works is not acceptable. It is recommended that three (3) applications be submitted as follows: a) Structure 99077 -Bridge on Hancock Road located 230m south of Nash Road in Courtice: This bridge is in poor structural condition and has a substandard deck width of REPORT NO.: FND-010-09 PAGE 5 5.5m. This structure is recommended for replacement and it is also recommended that the structure be extended to accommodate future growth in the area. Estimated replacement cost is $890,000. b) Concession Road 6 -Old Scugog Road to Acres Road (5.8 km): Major rural upgrade of high volume high float road to hot mix asphalt road including structure repair and safety improvements. Estimated cost is $2,480,000. c) Concession Road 6 -Acres Road to Highway 35/115 (6.2 km): Major rural upgrade of high volume high float road to hot mix asphalt road including structure repair and safety improvements. Estimated cost is $2,620,000. 6.3 The Recreational Infrastructure Canada fund as mentioned is intended to have provincial matching funds but it has not been formally announced. Staff is therefore proposing three (3) projects for submission. No details are available at this time. a) The first priority would be the Darlington Sports Complex arena floor concrete pad replacement at a cost of $400,000. This was not included in the existing approved project at DSC due to funding limitations. b) The second priority under "RING" is the roof replacement and refrigeration plant improvements at the Newcastle Memorial Arena at a cost of $425,000. c) The third priority is the Pad A east seating and dressing room renovation at the Garnet B. Rickard Recreation Complex at a cost of $500,000. 6.4 In all, over the three (3) funding programs, Clarington will be applying for seven (7) different projects. The Clarington portion of the total costs, if all applications were approved, is $2,863,333. The breakdown of the proposed funding sources are identified in the recommendations. It is unlikely, however, that we will be successful in all seven (7) project applications so the cost to Clarington ultimately will be somewhat lower than $2,863,333. 6.5 The commitment by Clarington is a substantial one and does result in a significant draw on the General Municipal Reserve Fund ($2,513,334) in particular. However, the opportunity for this level of funding from upper level governments is rare and we are leveraging it to the greatest extent possible. This may reduce Council flexibility for the near future. Council can certainly delete any projects from those recommended if they wish to limit the total impact. 6.6 Subject to Council approval of this report, staff will undertake all necessary steps to submit all required documentation in support of our funding requests. Attachments: Attachment "A FND-004-09 Potential Shovel-Ready Projects for Federal Funding Opportunities Attachment "B" Authorizing By-law CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-4169 Clar~tgton 6'nerglzing Ontario Meeting: COUNCIL Date: Monday February 9th, 2009 Report #: FND-004-09 File #: Attachment "A" REPORT FINANCE DEPARTMENT Resolution #: ' d 7 '" d 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: Reviewed by: ancy ay or, .A., C.A., Franklin Wu, Director of Finance/Treasurer Chief Administrative Officer. NT/hjl REPORT NO.: FND-004-09 PAGE 2 BACKGROUND AND COMMENT: 1.6 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 far 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 byway 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 intemet 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.D 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 modem and greener infrastructure by: - Establishing atwo-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 underthe Provincial- Territorial Base Funding Initiative to expedite "ready-to-go" infrastructure projects - Providing up to $50D 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. COMIMENTS: 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 municipa! projects that wil! be submitted. As the infrastructure funding is available fora 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 govemment 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 signifcant 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 CLARlNGTON List of Potential Shovel Ready Projects Estimated Municipal Estimated Region Pro'ectName/Descri tion Pro'ectCost Pro'ectCost Ener Park $11,324,000 $1,954,530 Technolo Park $7,398,110 $5,670,000 Rickard Recreation Complex -Re lace Sk li hts $150,000 Rickard Recreation Complex -Refri eration Plant U rode $190,000 Rickard Recreation Complex -Mechanical Equi ment Up redes $100,000 Rickard Recreation Complex -Pad "A" Li htin Retrofit $60,000 Rickard Recreation Complex -Roof Re IacemenURe air $160,000 Rickard Recreation Complex -Pad"A" Washroom Revnovations $50,000 Rickard Recreation Complex -Pad "A" East Side Seafin & Dressin Room Renovation $500,000 Claringlon Fitness Centre -Ma'orFacili Renovation $1,1700,000 Darlington Sports Centre -Re lace Concrete Pad $400,000 Rural Broadband Im lamentation & Installation $1,60D,000 Ener Retrofittin Projects $500,000 Newcastle Memorial Arena -Roof Re lacement and Refri eration Plant Im rovements $425,000 Orono Public Library -Parkin Lot Resurfacin $20,000 Darlington Sports Centre -Parkin Lot Resurfacin $300,000 Memorial Park Clubhouse -Parkin Lot Resurfacin $1OD,000 Newcastle Community Hall -Wall and Railin Re alts $50,000 Fire and Court Building -Chiller Re airs $30,000 Page t of 3 ATTACHMENT "A" TO REPORT FND-004-09 MUNICIPALITY OF CLARINGTON List of Potential Shovel Ready Projects Estimated Municipal Pro'ect NamelDescri tion Proeect Cost Estimated Region Pro'ect Cost Municipal Administrative Centre -Boiler Re airs $70,000 Catch Basin Repairs -100 Catch Basins identified in 3 areas to be re laced $160,000 Holt Road -Rural Road Resurfacing from Taunton Road to Nash Road $385,000 Maple Grove Road - Rural Road Resurfacing -from Hi hwa #2 to South of Baseline Rcad turnaround $288,750 Nash Road -Rural Road Resurfacing -from Re tonal Road #57 to Ma le Grove Road 5240,625 Concession Road 4, Clarke -Rural Road Resurfacing -from Hi hwa #115 East to Re tonal Road #18 $726,88D Concession Road 1, Clarke -Rural Road Resurfacing -from Mill Street East(Newcastle) to Newtonvitle Road $708,708 Concession Road 1, Clarke -Rural Road Resurfacing -from Newtonville Road to East Townline Road $299,838 Old Scugog Road, Darlington -Rural Road Resurfacing -from Concession Road 4 to Concession Road 9 -excludin the villa es of Ham ton and Enniskillen $726,880 WaterfrontTrailPavin - $594,000 Bowmanville Memorial Park renovation $250,000 Lord EI in Park renovation $SSS,D00 Courtice Memorial Park renovation $450,000 Samuel Wilmot Nature Area elevated boardwalk $350,000 Grad Dr Structure $1,150,000.00 Waved Road Over ass, Lot 13114 $1,400,OOO.D0 Green Rd Structure $5,000,000.00 Lot 28, Conc VIII, Darlin ton - Sructure $520 00 North Street, Newcastle -Structure $228,00 Lot 35, Conc VIII, Dadin ton -Structure $322,00 Page 2 of 3 ATTACHMENT "A" TO REPORT FND-00409 MUNICIPALITY OF CLARINGTON List of Potential Shovel Ready Projects Estimated Municipal Prc'ect Name/Descri lion Pro'ect Cost Estimated Region Pro'ect Cast Lot 2fil27, Conc II, Darlin ton -Structure $591,000 Lot 2l3, Conc II, Darlin tan -Structure $424,000 Conc Rd 7 Ma'or Overla -Pavement Rehabilitation $4,400,000.00 Conc Rd 6 Ma'or Overla -Pavement Rehabilitation $5,000,000.00 Munici a! Wide Pavement Rehabilitation $2,000,000.00 Duke St -Road Reconstruction $1,340,000.00 Horse St-Road Reconstruction $825,000.00 Carlisle Avenue -Road Reconstruction $570,000.00 Hillto Dr -Road Reconstruction $325,000.00 Mill Lane -Road ReconsUucUOn $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 Munici al and Re ion Estmated Costs $63,572,321 Page 3 of 3 Attachment "B" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2009-Oxx Being a By-law to authorize the execution of an Agreement between the Corporation of the Municipality of Clarington and Her Majesty the Queen in Right of Ontario as represented by the Deputy Premier and Minister of Energy and Infrastructure and the Minister of Agriculture, Food and Rural Affairs for the Building Canada Fund -Communities Component (8CF-CC) Contribution Agreement for Infrastructure Projects -Intake Two THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOLLOWS: 1. THAT the Mayor and Clerk are hereby authorized to execute, on behalf of the Corporation of the Municipality of Clarington and seal with the Corporation Seal, an Agreement between Her Majesty the Queen in Right of Ontario as represented 6y the Deputy Premier and Minister of Energy and Infrastructure and the Minister of Agriculture, Food and Rural Affairs, and said Corporation; and 2. THAT the agreement attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this 27`h day of April, 2009. By-law read a third time and finally passed this 27`" day of April, 2009. Jim Abernethy, Mayor Patti L. Barrie, Municipal Clerk