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Home My WebLink AboutFIN-09-047 - Federal Infrastructure Stimulus Fund Application REPORT TO: DATE OF MEETING: SUBMITTED BY: PREPARED BY: WARD(S) INVOLVED: DATE OF REPORT: REPORT NO.: SUBJECT: Mayor Carl Zehr and Members of Council April 27, 2009 Dan Chapman, General Manager of Financial Services and City Treasurer Saleh Saleh, Senior Financial Analyst, Financial Planning Roger LeBrun, Manager of Financial Planning ALL April 16, 2009 FIN-09-47 FEDERAL INFRASTRUCTURE STIMULUS FUND APPLICA TION RECOMMENDATION: THAT staff be directed to submit the following six projects, for consideration for funding through the Federal Infrastructure Stimulus Fund application: 1. Infrastructure Remediation ($26.6 million) 2. Centre in the Square Improvements ($1.2 million) 3. Consolidated Maintenance Facility Improvements ($14.0 million) 4. Strasburg Road Industrial Project ($5.5 million) 5. Accessibility Improvements ($1.0 million) 6. Kitchener Public Library Construction ($5.6 million); and, THAT for projects approved under the Federal Infrastructure Stimulus Fund, the City of Kitchener fund one-third of the total eligible project costs; and, THAT the General Manager of Financial Services be authorized to sign the application for Infrastructure Stimulus Funding, and further; THAT the General Manager of Financial Services be directed to issue correspondence to all area Members of Federal and Provincial Parliament identifying the projects submitted in the application for Federal Infrastructure Stimulus funding. BACKGROUND: On January 27, 2009, as part of an Economic Stimulus plan, the Federal Government designated $6.4 billion over two years for provincial, territorial and municipal infrastructure projects. The main purpose of this funding allocation is to stimulate the economy and at the same time create a more modern and greener infrastructure that is the foundation of sustainable long-term growth. There are three categories under which applicants could apply for funding, 8.8 - 1 namely, The Infrastructure Stimulus Fund ($4.0 billion), Green Infrastructure Fund ($1.0 billion) and the Recreational Infrastructure Canada Fund ($0.5 billion). On April 15, 2009, the Federal and Provincial Ministers responsible for Infrastructure sent out a joint letter (Appendix #1) addressed to the Mayor announcing the launch of the application process for the Infrastructure Stimulus Fund (ISF). The application process for the Green Infrastructure Fund and Recreational Infrastructure Canada Fund is yet to be determined. The intent of this report is to identify projects that will be submitted in the application for Infrastructure Stimulus funding and to get Council's commitment for the City's share of 1/3 funding for projects that are approved for funding under the ISF component. The key components for funding projects under the ISF program are as follows: 1. Projects must be completed by March 31, 2011 2. Projects would have not been built over the next two construction seasons (2009/10) without the Federal and Provincial funding. 3. New construction is eligible; however, the primary focus will be on rehabilitation of existing assets. 4. Applications for funding must be submitted to the Province by May 1, 2009 REPORT: On March 23, 2009, Council approved report FIN-09-039 which recommended which projects should be submitted for consideration under the Infrastructure Stimulus Fund, Green Infrastructure Fund and Recreational Infrastructure Canada Fund. The resolution adopted by Council identified six projects for consideration under the ISF in the following order of priority: 1. Infrastructure Remediation ($26.6 million) 2. Centre in the Square Improvements ($1.2 million) 3. Consolidated Maintenance Facility Improvements ($14.0 million) 4. Strasburg Road Industrial Project ($5.5 million) 5. Accessibility Improvements ($1.0 million) 6. Kitchener Public Library Construction ($5.6 million) Staff are recommending that the six projects identified above, totalling $53.9 million be submitted for funding under the ISF program. A detailed description of each of these projects is outlined in Appendix #2. The City of Kitchener will be required to fund one-third of the approved eligible project costs with matching contributions by the Federal and Provincial Governments under the ISF program. Staff are looking at possible funding sources which include uncommitted infrastructure funds, reserve funds, low interest loans, local boards, internal financing and debenture financing. Once projects have been approved for funding and the amount of funding required has been identified, staff will bring forward a report to Council with funding options. FINANCIAL IMPLICATIONS: If all six projects are approved, the City of Kitchener will be responsible for 1/3 share of the eligible project costs totalling $18.0 million. Staff will then bring forward funding options for Council's consideration. 8.8 - 2 COMMUNICATIONS: Council's resolution and projects to be submitted under the Infrastructure Stimulus Fund will be shared with area MP's and MPP's once adopted. CONCLUSION: The proposed capital projects will stimulate the local economy through the creation of over 500 new jobs while considerably improving the condition of the City's infrastructure resulting in long- term benefits for the community. ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services and City Treasurer 8.8 - 3 C die, . .arl(l. a. 613-948-913~ >> 519 741 2800 . P 1/3 -. ',' f.ll(.J '-\#A PlY'/] fJ APPENDIX 1 0cP1 ! (.: . .,. ,. . -. ,,~ tPOntariO 2009-04-15 00:15 . .........._ 1 -- r ..-...,..- ...~, ... _. ~ ........-...... . J ~ ;;q J;..~ ~t c- ~). i:i';F"-. ~ \. ~ ..' . t, ,,~'t:. .\h':~ . ! :~~,PR t '.i ZflOS . His Worship Cart Zehr . i . 'City of Kitchener t.., .QJfJ::I~;,.g.~....J Box 1 1 18. . 200 King 'St. West. Kitchenert.Ontano . N2G 4G7 "'~, , 'rDD9 Dear May~r. ," " The cu.rrent economic crial~ is of great c;culcern to all CanadIans. ~oth the Govemment of Canada and the .Govemment of Ontario have undertaken and are eommitte~ to making .significant Investments to help CQm~unitie$ weather this ecanomie atonn and get .much needed stimulus-money into the economy. Through the recent federal and provincial budgets'. our governments have recognized ths.t improving Ontario's fnf(sstructure will also 'help to .boost the economy. .create jobs and imp.rove the dany Quality of life In communities across this province. We want to take this opportunity to tell' you about a. new way for you .lo have Kilchener.s short..terin priority infrastructure proJects td8n~jfied for funding conBI~~ratlo~. . . The G'overnment of Canada has announced the creation ot a new S4.bllll~n Infrssiructure Stl~uluS Fund. aimed al getting shovels In the ground for infrastructure projects acro&8 Canada Inst can be completed within the next two )fesre. The Gov~'nment of. Ontario has agreed to match t f~de'al funding and 10 work together.with the Government of Canada to BnSUre thai these fun(JB ar~ delivered 9Jepeditiouely and efflctentty to municip8l1tl~s .in the province.. These funds are fO,cused on the rehabilitation of existing assets. but- new c~nstruC(IOn Is\ eligible. provided II can be fully completed by March 31: 2011~. and it represents, an incremental inveslmAnl on the part of the municip"alitV. . - . . The Infr;lstruclure Stimulus FUfld works. hy having the. fedorsl al,d " provincial governments rnatch municipal contributions to'~ard$ f,\frasfruclure , projects on \~n equal basis. All parties share one-Ihlrd of the lotal origible prnjoct . cost. ThiS funeJif'lg will help create j()bs and provide much.needed stimulus to the' Dconomy. It will also help municipal governme~ts meet the~' varied and growing in{rastruc:ture needs. · .8.8 .. 4 613~948-9138 >>.519 741.2800 . :,,~~~.~ ~ ~ -;.. ~ . + APPENDIX 1 -2- Proponents will be Mquired to attest that the- projects would not have beenbulJt over the next two construction 88890nl without rtle federal and _ provincial funding: A program guide and a very 6hort application form can be. : accessed at: www.bcfontarlo.cs. Your muniCipality can complete applications for up to three projects. Further Information can be obtained by calling the -Canada-Ontario Infrastructure.. Secratarlat at 1 ~866~306. 7827 _.,. ;..' . . AI; applications are due on May 1, 2009. Successful proponents will be notified quickly 80 fha, construction may begin. Financial agreements will be signed betWeen tf:te Province or Ontario and munlclpalltj~8.. Prior to final approval of your'fundlng and the conclusion of an agreement with the prQvlnce. the Mun;dpaJity must provJde prodf of Council support for each approved projecl and the municipal contrfbutlon~ .. . We hopa, that you shere our en,hu~lIasm tor this significant new . funding and our new streamlined appllcetlonproC8Ss. We beiteve that it will , make our declslon.making process mOre offlclent and get thIs much needed' . infrastructure money flowIng faster. -. . ., " . . We'look forward to learning more about tho infr8structure priorities In Kltchener. We value our coltaboratlon with municipal gO,lJGmments in ensuring . . O~tarIO.s fnfrastructure needs are met . Sincerely. .. .'~~ l (t~(), J1{ f~4 '4~1Jl~~ G 00rgo 5 nlllh 0 rm an I tv, p. p '. Ontario.s Deputy Premier and Minister of Energy and In ( raslruc ture John B"ird,. P Co. M4P. . Canada1a ~inlster of Transport. Infrastructure Find CtJm""uni~fes ," P 3/3 8.8 - 5 APPENDIX 2 The following six projects are aligned with the goals of the Infrastructure Stimulus Fund (ISF). and it is recommended that they be .put forward as part of the application for funding under .the ISF program. _Project #1: Infrastructure Remediation (Cost estimate: $26.6 million; Jobs created:' 300) The City of Kitchener has a $107 million backlog of infrastructure. work associated 'with replacing roads, sewers, water, sidewalks and bridges. Looking ahead for the next 25 years, this backlog is expected to increase to $971 milliqn in light of funding constraints~ Key ,funding opportunities for additional infrastructure programming exist in storm water management, drainage, roads and sidewalks to reduce the" existing ~ backlog. The projects summarized in Table #1 below are (Cshovel' ready" and' can be complete by 2010. This work is expecte~ to cost $26.6 million and generate 300 new jobs. Table #1 - Summa of Infrastructure Remediation 0 ortunities for 2009/2010 Infrastructure Remediation Cate 0 Pro.eet Merit Stormwater Management (SWM) and Address SWM and stormwater issues that Drainage are currently being underfundedl and allocate $7.0M toward the anticipated Victoria Lake Remediation works Bismark Avenue reconstruction WastewaterNVater Accelerated Infrastructure Renewal Pro ram AIRP Road Resurfacing and Road Renewal' Trenchless Sew~r and Water Rehabilitation Sidewalk Replacement Replace asphalt and address 28km shortfall in road resurfacing from last 5 : ears Expand the scope of the reconstruction of downtown King Street surface features including streetscape renewal, street furniture, enhanced lighting, and pedestrian amenities Extend life of sewers and water mains by 20 - 80 ears; deferrin reconstruction Addr~s~ 121600 outstanding .sidewalk defects _ King Street Master Plan 1 8.8 - '6 APPENDIX 2. Project #2: Centre in the Square (Cost estimate: $1.2 million; Jobs created: unknown) Centre in the Square (CITS) staff have put forward a list of projects for consideration totalling $1.2 million~ The project descriptions and cost estimates are shown in Table #2 . below. Table #2-- List of elTS proiects IMPROVEMENT DESCRIPTION. Kitchener Waterloo Art Gallery Site Upg.rades Kitchener Waterloo Art Gallery Ellen 8t Upgrades CITS Amphitheatre Coat Check' Upgrade Kitchener Waterloo Art Gallery Environment Upgrades Theatre Lobby Upgrades Theatre Seating Upgrades Office Lighting Retrofits Studio Retrofits Total Estimated Cost AMOUNT $ 75.525. $ 23.100 $ 521250 $ 47t 175 $ 28,500 $ 277,000 $ 290.000 $ 74,000 $ 364,000 $ 1,231,550 Project #3: Consolidated Maintenance Facility (Cost estimate: $14.0 million; Jobs created: 200) The Consolid_ated .Maintenance Facility will. move departments and equipment engaged in providing water, sewer and road maintenance operations into one facility. Funding . restrictions have limited the scope of beneficial work that can be undertaken. With additional funding, this work can be undertaken and is listed' in Table #3 below. It is anticipated that the project will create 200 new jobs. Table. #3 -Consolidated Maintenance Facilit 1m rovements for 2009/2010 1m rovement 1m roved salt stara e structure Buildin more interior roads LEED Work Benefit Lon er asset life and lower 0 eratin cost Dust 'control and less wear/tear on vehicles Improve quality of mechanical, electrical, windows 'and air s stems to increa'se ener efficienc Increased storage capacity and ensuring a longer facilit lifes an . - Use vertical units to reduce foot rint inside Reduce ener usa e to remove vehicle run~off Snow storage facility Project #4: Strasburg Road Industrial Land Project (Cost estimate: $5.5 million; Jobs created: unknown) - The project involves the extension of McBrine Drive to Strasburg Road allowing for the creation of approximately 29 acres of employment land which will be lotted for industrial uses. These lots. when fully. developed are estimated to create roughly 586 jobs based on a standard employment density estimation of 50 jobs per . hectare. In addition, the construction of the subdivision will create jobs for approximately one year until such time as the land is serviced. 2 8.8 - 7 APPENDIX 2 Project #5: Accessibility Improvements to City of Kitchener Facilities (Cost estimate: $1.0 million; J~bs created: unknown) The City of Kitchener has conducted an accessibility audit on all facilities. In preparation for anticipated legislated requirements for built structures expected in the latter part of 2010, this project would improve access to facilities, customer service, assembly areas, and washroom facilities and will impro_ve travel between floors. The project funding would _allow the City to meet anticipated legislated requirements ahead of time and provides better service to all customers. Project #6: Kitchener Public Library Construction (Cost ~stimate: $5.6 million; Jobs created: unknown) Renovation and ex'pansion of the Kitchener Public Main Library will commence in 20101 with completion of Phase 1 (parking) by December 2011 and Phase 2 (library building) by February 2013. Applying infrastructure stimulus funding to this project will represent an incremental investment to this project. on behalf of the City. However, there is a risk this project may not qualify for funding as the existing criteria for projects to be eJigiblet require that projects should be' completed by March 31,2011. 3 8.8 - 8