HomeMy WebLinkAboutFIN-19-039 - Additional Federal Gas Tax Funding AllocationREPORT TO:Finance and Corporate Services Committee
DATE OF MEETING:May 13, 2019
SUBMITTED BY:Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353
PREPARED BY:Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353
WARD (S) INVOLVED:All
DATE OF REPORT:April 5, 2019
REPORT NO.:FIN-19-039
SUBJECT:Additional Federal Gas Tax FundingAllocation
___________________________________________________________________________
RECOMMENDATION:
That a total of $6,900,000.00 of the federal gas tax, as outlined inFinancial Services
Department report FIN-19-039, be allocated as follows:
A.$1,100,000 Woodside Park
B.$1,000,000Sportsfields Infrastructure
C.$300,000Vanier Park Splash Pad
D.$650,000Park Bridge Replacements
E.$1,000,000Roofing Replacement: The Aud
F.$1,000,000Roofing Replacement: Recreation & Culture Facilities
G.$975,00091 Moore Sustainable Building Improvements
H.$225,000Building Automation Systems Replacement/ Upgrades
I.$650,000HVAC Replacement: Breithaupt Centre
BACKGROUND:
On March 19, 2019 the Government of Canada tabled its 2019 Federal Budget and announced
that it would be providing an additional $2.2 billion to Canadian municipalities ($820 million for
Ontario) to address short-term priority infrastructure needs through a one-time allocation of
Federal Gas Tax Funding. These details were confirmed in a letter from the Minister of
Infrastructure and Communities dated March 27, 2019.
ded in
the Canada-Ontario Integrated Bilateral Agreement(COIBA). Based on the information from the
letter, The funding available under Federal
Gas Tax and COIBA are summarized in the table below.
4 - 1
Federal Funding Available to Ontario Municipalities
Funding Ontario AnticipatedKitchener
StreamPortionKitchener PortionEligibility
Federal Gas Tax$820 million$7 millionConfirmed
Public Transit$8.3 billion$0Not eligible
Green Infrastructure$2.8 billionTo be determinedLikely
Community, Culture & Recreation$407 millionTo be determinedLikely
Rural & Northern$250 million$0Not eligible
The remainder of this report outlines the eligible areas for Federal Gas Tax investment and
providesoptions for how the additional funding could be allocated.
REPORT:
How Federal Gas Tax Can Be Spent
As noted in a recent report to Committee(FIN-19-031 Additional Federal Gas Tax Funding), the
City is anticipating an additional $7 million of Federal Gas Tax based on the 2019 Federal Budget
announcement. These funds can be used for a number of eligible categories including:
public transitshort-line rail
wastewater infrastructureshort-sea shipping
drinking waterdisaster mitigation
solid waste managementbroadband and connectivity
community energy systemsbrownfield redevelopment
localroads and bridgesculture
capacity buildingtourism
highwayssport
local and regional airportsrecreation
4 - 2
Asummary document prepared by Infrastructure Canadathatprovides more detail about the
types of projects that would fall into the various categories has been attached to the end this
report.
How Federal Gas Tax Is Currently Planned ToBe Spent
The 2019-2028 Capital Budget & Forecast included just over $73 million of Federal Gas Tax
funding for 38 projects. Nearly 70% (or $50 million) of the total funding included in the 10-year
forecast is allocated to roads and bridges, with the other 30% (or $23 million) of the funding
being allocated to culture, tourism, sport, and recreation. The single biggest benefactor of
, which is forecast to receive
approximately $36 million of funding over the next decade.
Options For The Additional $7 Million
A cross-functional team of staff met in mid-April to identify projectsthat could be funded from the
additional $7 million of Federal Gas Tax. These options were then vetted by the Corporate
Leadership Team prior to being included in this report. Some of the criteria considered when
reviewing specific projects included:
Does this help achieve a goal of the Strategic Plan or other masterplan?
Does this work help address
Can the work be mobilized quickly to commence during this construction season?
Does the City have adequate resources to coordinate the additional work?
Are there other potential funding sources (specifically grants) that could fund this work?
Is there a financial payback for completing this work?
listing of potential projects, which includes all of the projects recommended in this report, as well
as a few othersthat could be considered instead. Alternatively, Council could choose to hold
back some portion of the funding and allocate it at a future date, either through a staff report or
the budget process.
The projects recommended by staff focus on addressing aging City facilitiesand Leisure
Facilities Masterplan (LFMP) priorities
related to energy efficiency. City facilitieswere identified through the Long Term Financial Plan
work that is underwayas an area requiring additional investment based on newinformation from
program. Moreinformation about City facilitieswill be coming to
Council later this spring, but staff believe allocating a portion of the additional Federal Gas Tax
funding to facilitiesis a prudent step to safeguarding these City assets. The LFMP also identified
maintaining existing facilities as a high priority, whether it be recreational buildings or sportsfield
mendation (as noted below) reflects this.More details about each
of the projects are included as an appendix to the report.
4 - 3
Table 1 -Summary List of Projects for Additional Federal Gas Tax Funding
#ProjectName$ AmountProject Summary
RECOMMENDEDPROJECTS
Replace existing artificial turf fields and improve
AWoodside Park$1,100,000
the existing parking lot.
Replace lighting, backstops, and bleachers at a
BSportsfieldsInfrastructure$1,000,000
number of existing sportsfields.
CVanier Park Splash Pad $300,000Replace existing splash pad with new features.
DPark Bridge Replacements$650,000Replace three park pedestrian bridges.
Roofing Replacement:Replace a portion of the roof at the Kitchener
E$1,000,000
The AudMemorial Auditorium Complex
Roofing Replacement:Replace the roofs at Victoria Hills Community
FRecreation & Culture$1,000,000Centre, THEMUSEUM, Homer Watson Gallery,
Facilitiesand both golf courses.
91 MooreSustainable Replace building exterior components to improve
G$975,000
Building Improvementsenergy use.
Building Automation
Update control systems to improve energy
HSystems Replacement/ $225,000
efficiency.
Upgrades
HVACReplacement: Replace existing conventional boiler system with
I$650,000
Breithaupt Centremore energy efficient system.
TOTAL$6,900,000
OTHERPOTENTIAL PROJECTS
Update and enhance the Kitchener Operations
KOF Yard Reduce, Reuse
J$500,000Facility (KOF) for reuse and recycling of materials
& Recycle Excess Material
gathered from roadway maintenance and repair.
KOF Green Energy Repair geothermal loop, install charging stations
K$1,250,000
Optimization & Expansionfor electric vehicles, and update lighting to LEDs.
Replace spandrel glass panels and repair/replace
LCity Hall Building Envelope$2,200,000
other exterior granite/terra cotta panels.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The
the delivery of core service.
FINANCIAL IMPLICATIONS:
The additional $7 millionof Federal Gas Tax funding will be allocated to capital projects based
on further discussion with Council.
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
4 - 4
PREVIOUS CONSIDERATION OF THIS MATTER:
An overview report about the additional Federal Gas Tax allocation was provided to Committee
earlier this year in report:
FIN-19-031, Additional Federal Gas Tax Funding(April 15, 2019)
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
4 - 5
Project Name A) Woodside Park
Funding Request $1,100,000
Description
Woodside park is a major sports and recreation venue in the heart of Kitchener. Consisting of an
outdoor artificial turf field it provides unique early season and late season access to outdoor sports
facilities. This project would focus on two key elements:
The replacement of the existing artificial turf surface: the existing surface is nearing the end
of its operational life and ensuring uninterrupted access to this facility is key as the City
undertakes implementation of the LFMP ($1,000,000)
The addition of an exit from the park lot: the existing parking lot was designed with a one
way in, one way out design in mind, however the exit was never implemented. At peak
times this causes some significant challenges. ($100,000)
Timing This work could occur in 2020; with spring already started, the field is open for
use so this would need to be aligned to happen off season.
Resourcing It is likely that this could be accommodated within existing workloads.
Project Name B) Sportsfields Infrastructure
Funding Request $1,000,000
Description
This work will target a number of infrastructure enhancements and improvements at existing sports
facilities across the City and will be will be aligned with needs demonstrated through the LFMP.
Parks such as Rosenberg, Bridgeport and Crosby all have deficiencies that this investment would
help address. The focus of this work will be on:
Lighting improvements where we have existing sportsfields lights, upgrading these to
modern standards. This improves efficiency, they are more sustainable and enhance
usability of fields. Through remote operation, they are more efficient on staff resources.
Backstop improvements a number of backstops have been identified as in need of
enhancements and infrastructure replacements. This work will extend the lifespan of these
assets and enhance user satisfaction
Bleacher Upgrade and Replacement many bleachers at sportsfields are older and will
soon need replaced. A program of replacements will leverage potential cost savings,
enhance usability of sites and provide modern facilities for both players and spectators.
Timing Work would be performed by outside contractors and would require minimal
design elements. It is likely that most work could be completed in 2019, with
some element potentially in 2020 if its not possible to complete through the
sports season.
Resourcing As this is enhancements to existing assets, and largely outsourced, it is not
consider that any additional resources would be required.
4 - 6
Project Name C) Vanier Park Splash Pad
Funding Request $300,000
Description
Rehabilitation of the Vanier Park Splash Pad at a cost of $300,000 for demolition, new features and
concrete replacement.
Timing Design and tendering in 2019. Construction in early spring 2020.
Resourcing Project design and construction will be contracted.
Project Name D) Park Bridge Replacements
Funding Request $650,000
Description
A 2016 OSIM bridge inspection report noted a number of pedestrian bridges that were in need of
immediate repair or replacement. As part of the 2019 budget, the replacement of the Trestle Bridge
on the Iron Horse Trail was funded and will be replaced. Work, up to an including full replacement,
on additional bridges was deferred to future budget processes. This project would address the most
immediate and pressing needs identified in the 2016 report, namely the following bridges:
Removal of existing and replacement of bridge at Park Street, Victoria Park. The bridge
would be replaced with bridges similar to those implemented at other sites in the park that
have newer bridges. Estimated cost: $310,000
Removal of two bridges at Lynnvalley Park, and installation of one new bridge. The new
bridge would functionally replace the two bridges being removed. Estimated cost: $185,000
Removal and replacement of a bridge at Montgomery Court. There are two bridges in need
of replacement here, sufficient funding is available for replacing one of the two. Estimated
Cost: $155,000
Timing Some initial work has been done through the OSIM report and
recommendations. Initial design concepts have been discussed through the
budget 2019 preparation. Most of the solutions would be designed and project
It is anticipated that work would start in 2019 and be completed in 2020.
Resourcing As this is enhancements/replacements to existing assets, and largely
outsourced, it is not consider that any additional resources would be required.
Project Name E) Roofing Replacement: The Aud
Funding Request $1,000,000
Description
This project would replace the Dom Cardillo arena main bowl roof and small Annex roof section
based on a condition assessment completed in 2016.
Timing Specification and tendering in 2019. Construction in Spring/Summer of 2020.
Resourcing Project design, specifications and construction will be contracted.
4 - 7
Project Name F) Roofing Replacement: Recreation & Culture Facilities
Funding Request $1,000,000
Description
A number of recreation facilities have roofs systems that are nearing the end of their useful lives.
This project would replace roof assemblies based on the condition assessment completed in 2016.
Community Centres: Victoria Hills Community Centre $150,000
Arts & Culture: THEMUSEUM $400,000; Homer Watson Gallery $100,000
Sport: Doon Valley Golf $250,000; Rockway Golf $100,000
Timing Specification and tendering in 2019. Construction in Spring/Summer of 2020.
Resourcing Project design, specifications and construction will be contracted.
Project Name G) 91 Moore Ave (future mausoleum)
Sustainable Building Envelope Improvements
Funding Request $975,000
Description
In advance of the purchase of 91 Moore Avenue, a Building Condition Assessment (BCA) was
completed to understand the asset conditions and long-term maintenance needs. As a result of the
BCA, recommendations for improvement were provided in a detailed report. The significant body
of work required to improve the energy performance of the building envelope include a number of
cladding system repairs (siding, insulation, brick repointing $725,000), replacement of original
windows ($100,000) and two sloped roof sections (built-up and steel $150,000).
Timing Design, specification, tendering and award in 2019.
Construction start in spring 2020; Project completion in Summer of 2020.
Resourcing Project design through construction will be contracted.
Project Name H) Building Automation Systems (BAS) Replacement/Upgrades
Funding Request $225,000
Description
Older BAS systems in some facilities (e.g. Kiwanis and Kinsmen Ice Pads) are at end of life and
incompatible with newer related systems. This project will redesign and integrate systems to
improve control and energy efficient operations.
Timing Design and specification in 2019.
Installation in off-season of 2020.
Resourcing Project will be designed with internal staff and prequalified vendors.
Installations will be contracted.
4 - 8
Project Name I) HVAC Replacement: Breithaupt Community Centre
Funding Request $650,000
Description
Older HVAC systems are not energy efficient as are current day replacement options. This project
would replace onventional boiler system with more energy efficient
condensing boiler systems (including piping and pumping systems). This project would reduce
3
energy by approximately 15,330 m resulting in annual carbon emissions reduction of 38 tonnes
and financial savings of approximately $28,000.
Timing Specification and tendering in 2019.
Installation in Winter through Fall of 2020. Completion in 2020.
Resourcing Project design, specifications and construction will be contracted.
Project Name J) KOF Yard Reduce, Reuse, Recycle Excess Material
Funding Request $500,000
Description
The City generates over 50,000 tonnes of excess material annually maintaining infrastructure within
the right of way. The project will provide an environmentally responsible facility for reusing and
recycling excess material. Approximately 35 % can be recycled for use on City infrastructure
maintenance work, another 58% can be reused as fill on private developments leaving only 7% of
the excess material generated having to go to a waste treatment facility. This project would
ensure all processes are compliant with Ministry of Environment Conservation and Parks as well as
waste handling legislation.
Timing Design work Fall of 2019, work completed Spring 2020.
Resourcing Project Design and construction will be contracted.
Project Name K) Kitchener Operations Facility Green Energy Optimization & Expansion
Funding Request $1,250,000
Description
This project includes actions in the corporate climate action plan and establishes keystone
infrastructure that is necessary to grow our sustainability program in priority areas. For example,
without fast charging stations the City cannot expand its electric fleet because of the full project
cost it has not been budgeted. In furthering the actions in the corporate climate action plan, this
action. . This project has significant associated carbon emission reduction, totaling 400 tCO2e.
Increased utility costs from optimizing the geothermal loop with be offset with the financial savings
from the LED upgrades. With this project, KOF truly will be a state-of-the-art sustainable
operations facility. Project costs include:
$325,000 for materials (e.g. transformers, charging stations, conductors, concrete)
$325,000 for labour = $325,000
$275,000 for geothermal loop repair
$325,000 for LED Remaining
Timing Spring 2019 start with project scope and final design (geothermal loop already
has been designed), construction fall to winter 2019 to mid-2020
Resourcing Project will be designated with internal staff. Design and installations will be
contracted.
4 - 9
Project Name L) City Hall Building Envelope
Funding Request $ 2,200,000
Description
In fall of 2018, MTE Building Restoration division staff were retained to review the conditions of the
spandrel panels and cladding at City Hall. Approximately 65% of the panels have experienced
debonding of the coating film, but the function of the curtain wall is not affected. Complete
replacement of all panels, weather seals and structural seals is recommeneded.
Cost Estimate = $1,800,000
Further, MTE investigated the condition of the granite and terra cotta wall panels and
recommended several repairs: replace broken panels; repair/replace failed sealants and anchors;
replace sheet metal flashings and transition membranes and clean and seal panels.
Cost Estimate = $400,000
Timing Design, specification in 2019; tendering and award in early 2020.
Construction start in spring 2020; continue in 2021. Must ensure separation of
time and space from Carl Zehr Square & College construction in 2020.
Pedestrian access through Duke St. required. Reverse for 2021.
Resourcing Project design through construction will be contracted.
4 - 10
4 - 11