HomeMy WebLinkAboutFIN-08-014 - Municipal Infrastructure Investment InitiativeReport To: Councillor B. Vrbanovic, Chair, and Members of the Finance
and Corporate Services Committee
Date of Meeting: January 28, 2008
Submitted By: Pauline Houston, General Manager of Financial Services
Prepared By: Ruth-Anne Goetz, Senior Financial Analyst
Dan Chapman, Director of Financial Planning & Reporting
Ward(s) Involved: ALL
Date of Report: January 21, 2008
Report No.: FIN-08-014
Subject: Municipal Infrastructure Investment Initiative
THAT staff be directed to submit an application under the Municipal Infrastructure Investment
Initiative for the King Street Streetscape project in the amount of $3.2 million;
AND FURTHER THAT staff be directed to bring forward a by-law in support of this application
on February 4, 2008 for Council approval
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This report is provided to inform Council about the Municipal Infrastructure Investment Initiative
and recommend a project to be submitted for consideration by the Province.
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On December 13, 2007, the Ontario Minister of Finance announced the creation of a $300
million one-time application -based program, the Municipal Infrastructure Investment Initiative,
which is intended to address community infrastructure priorities across Ontario. This program
is available to all lower-, upper- and single-tier municipalities in Ontario, except for the City of
Toronto.
The application deadline for this initiative is February 15, 2008. Funding announcements and
grant receipt will occur no later than March 31, 2008.
Eligible Projects:
Funding is available for all construction- ready, municipally owned infrastructure projects. The
term "construction-ready" means that the municipality has completed, or will soon complete, all
required stud ies/approvals such that the project is at the tendering and construction stage.
Ineligible Projects:
The following is a list of the projects which are considered ineligible to be funded from this
program:
• Public transit;
• Any infrastructure project where construction has started prior to the approval of
the funding application;
• Project related studies and operating costs; and
• Vehicles and equipment
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There is a large focus on the benefits of the project, not only to the community, but to the region
and the province, as well. The application must address the economic and social benefits,
environmental and sustainability benefits, health and safety benefits and social or community
benefits of the project. In addition, the project must be in-line with provincial policy objectives,
as well as help to implement a Council adopted plan or strategy.
It is important to note that the City can apply for only one project, and if successful, will receive
exactly the amount that was requested. No partial grants will be given.
The following matrix compares a list of potential projects to the eligibility criteria, to assess the
likelihood of a successful application per project:
FINANCIAL IMPLICATIONS:
Based on the size of the City of Kitchener in comparison to the Province as a whole, and taking
into account a split between the City and the Region, it is estimated that the City of Kitchener
may be able to obtain a grant in the amount of approximately $3.2 million if the distribution is
made based on population. Staff recommends applying for a grant in this amount.
Eligibility Criteria
Alignment
with
provincial
Council
Construction
policy
Economic
Environmental
Health
Social
adopted
Project
Readiness
objectives
Benefits
Benefits
Benefits
Benefits
plan
Hanson Ave.
Sports Complex
No
High
Low
High
High
High
High
Consolidated
Maintenance
Facility
?
Low
Low
High
Low
Low
High
King St.
Streetscape
Yes
High
High
High
High
High
High
Engineering
Infrastructure
Projects
Yes
High
Low
High
Low
Low
High
FINANCIAL IMPLICATIONS:
Based on the size of the City of Kitchener in comparison to the Province as a whole, and taking
into account a split between the City and the Region, it is estimated that the City of Kitchener
may be able to obtain a grant in the amount of approximately $3.2 million if the distribution is
made based on population. Staff recommends applying for a grant in this amount.
Should the City be successful in it's application, this will allow $3.2 million of funds that were
previously allocated to the Streetscape work to be reallocated to support other capital works.
The Corporate Management Team will then proceed to reprioritize capital projects and a
subsequent report will come forth to Council for approval.
N/A
ASINO-IROKUSM
Based on the above information, the King St. Streetscape project seems to be the best fit with
the criteria set out by the Municipal Infrastructure Investment Initiative. On this basis, staff
recommends that an application be submitted for this project in the amount of $3.2 million.
Attached is a draft of the bylaw that is required to be passed by Council in order for the
application to be accepted.
Ruth-Anne Goetz, CA
Senior Financial Analyst
Lkan Chapman, CA, MPA
Vrector of Financial Planning and Reporting
Pauline Houston, CA
General Manager of Financial Services
THE CORPORATION OF THE CITY OF KITCHENER
BY-LAW NUMBER 2008-
A BY-LAW TO AUTHORIZE THE SUBMISSION OF AN
APPLICATION TO THE ONTARIO INFRASTRUCTURE PROJECTS
CORPORATION (4401PC") FOR FUNDING FROM THE MUNICIPAL
INFRASTRUCTURE INVESTMENT INITIATIVE FOR A NEW
ELIGIBLE CAPITAL PROJECT OF THE CORPORATION OF THE
CITY OF KITCHENER (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 of the 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 of the
estimated expenditure set out in column (3) of Schedule "A";
AND WHEREAS OIPC 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 OIPC for such funding by completing and submitting an application through the form
provided by OIPC (the "Application");
AND WHEREAS the Municipality has submitted an Application to OIPC to request
funding in respect of the Project;
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY 01
KITCHNER ENACTS AS FOLLOWS:
1. The Council of the Municipality hereby confirms, ratifies and approves the completion by
the 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 $3,200,000 (the "Funding").
2. (a) Construction of the Project in the amount of the respective Estimated Expenditure set
out in column (3) of Schedule "A" is hereby approved and authorized;
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(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 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 Municipal
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 of the Project;
(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
(f) The Engineer, or such other official of the Municipality charged with the
management of the Project shall report semi-annually to the Council of the
Municipality on the status of the Project.
3. The Council of the Municipality 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.
ENACTED AND PASSED this 4th day of February, 2008.
Carl Zehr, MAYOR
Randy Gosse, CLERK
Schedule "A"
to By-Law Number 2008-
(1) (2) (3) (4)
Project Name Description of Eligible Capital Estimated
Work Expenditure
King St. To make King St., the core of $5,680,000
Streetscape downtown Kitchener, more
lively, liveable,
environmentally sustainable,
and beautiful.
Grant Amount