HomeMy WebLinkAboutFIN-09-077 - Implementation of Infrastructure Stimulus Fund Projects
REPORT
REPORT TO:
Councillor Berry Vrbanovic, Chair, and Members of the
Finance and Corporate Services Committee
DATE OF MEETING:
June 22, 2009
SUBMITTED BY:
Dan Chapman, General Manager of Financial Services and
City Treasurer
PREPARED BY:
Karen Eskens, Director, Financial Planning & Supply Services
Saleh Saleh, Senior Financial Analyst, Financial Planning
Larry Gordon, Chief Purchasing Officer
WARD(S) INVOLVED: ALL
DATE OF REPORT: June 11, 2009
REPORT NO.:
FIN-09-077
SUBJECT:
IMPLEMENTATION OF INFRASTRUCTURE STIMULUS
FUND PROJECTS
RECOMMENDATION:
THAT the funding sources identified in Table #1 of report FIN-09-077 be approved as the
source of the City of Kitchener’s 1/3 share of funding for the Infrastructure Stimulus Fund
eligible project costs totalling $10,121,665
THAT the following measures be adopted to accelerate the implementation of Infrastructure
Stimulus Fund projects and Recreational Infrastructure Canada Fund projects (as may be
approved at a future date);
1.
The Mayor and Clerk be authorized to sign Provincial and Federal agreements as they
relate to the Infrastructure Stimulus Fund and the Recreational Infrastructure Canada
Fund, subject to the satisfaction of the City Solicitor.
2.
The Chief Administrative Officer be designated to award tenders on Infrastructure
Stimulus Fund and Recreation Infrastructure Canada Fund projects provided that the
costs are within the projected expenses outlined in the applications and that a report
regarding these awards be brought to Council at a future meeting.
3.
The extension of consulting services provided by The Walter Fedy Partnership,
Kitchener in the amount of $69,688.50 including disbursements and GST related to the
McLennan Park Development Phase 4 be approved.
4.
For Consultant projects over $100,000, that cost information be included with the original
submission, the interview process be waived where appropriate, and the selection be
based on the original submissions;
5.
A contract Purchasing Assistant be retained for up to 24 hours per week over an eight-
month period to expedite the tendering, selection and contract processing aspects of the
City’s approved projects;
é ó ï
THAT the General Manager of Financial Services be directed to report back to Finance and
Corporate Services Committee on August 10 with a status update on Infrastructure
Stimulus Fund and Recreation Infrastructure Canada Fund projects including a schedule for
future project updates for Committee; and further
THAT a contract Accounting Technician be retained for up to 24 hours per week over a twenty-
two month period to assemble cost documentation, facilitate quarterly reporting and claim
submission, support overall program coordination including regular reporting to the Finance and
Corporate Services Committee.
BACKGROUND:
On June 5, 2009 it was announced that the City of Kitchener received $20.25 million in funding
for Infrastructure projects with a total value in excess of $30 million. To be eligible for the
funding, it is important that the City meet the following two requirements identified in the
Infrastructure Stimulus Fund (ISF) program:
A. Projects must be completed by March 31, 2011
B. The City must contribute 1/3 funding for the total eligible project costs.
The purpose of this report is to outline for Council’s consideration, funding options for the City’s
1/3 share of the eligible project costs and to get approval from Council on a preferred approach
to be able to quickly implement the projects approved for ISF funding.
The City is awaiting an announcement on $9.2 million worth of Recreation Infrastructure
Canada Funding project applications.
REPORT:
City of Kitchener projects have been approved to date to receive $20.25 million in Federal and
Provincial funding. The projects identified for funding include:
1. Storm-water infrastructure Rehabilitation
2. Sewer and Water main Rehabilitation
3. Centre in the Square Improvements
4. McLennan Park Development
5. Consolidated Maintenance Facility Improvements
6. Solar Roof on the Consolidated Maintenance Facility
7. Accessibility Improvements
8. City Hall Lighting
9. Energy Management Systems
A team of City of Kitchener staff has been put together to ensure that the projects that have
qualified for funding are implemented as quickly as possible – while at the same time ensuring
those funds are spent efficiently and transparently. The staff team has identified two key areas
that need Council’s direction. These include the source of funding for the City’s required 1/3
share of the eligible project costs and how the City might structure an expedited procurement
process to meet the deadlines outlined in the infrastructure program.
é ó î
PROJECT FUNDING
As per the Infrastructure Stimulus Fund program criteria, the City is responsible to fund 1/3 of
the eligible project costs. For each project approved, Staff have identified a funding source that
is being recommended be applied as the City’s share of the funding contribution.
Storm Water Infrastructure Rehabilitation
This work will focus on the rehabilitation of multiple key storm water drainage and management
infrastructure assets. Work will improve overland flooding control during heavy precipitation
events at 8 locations and upgrades to 12 storm water management facilities.
The total cost of this project is estimated to be $2,070,000. The City’s share of this cost is
$690,000 and is being recommended to be funded from the Storm Water Management
implementation account over the next 3 years.
Sewer Watermain Rehabilitation
This work will focus on the rehabilitation of buried sewer main and water main infrastructure. By
using “trenchless” rehabilitation methods, the intent of this program is to return this infrastructure
to a condition that will extend its lifespan by an additional 25-50 years beyond its current
lifespan, and at a cost that is less than traditional open cut infrastructure
reconstruction/replacement for sewer and water mains.
The total cost of this project is estimated to be $2,500,000. The City’s share of this cost is
$833,333 and is being recommended to be funded from the Uncommitted Infrastructure account
which has a current balance of $6,752,567
Centre in the Square Improvements
This project includes the creation of a new access road within property boundaries for patron
drop-off; pen in garbage disposal; upgrade water/drainage system for art gallery; create retail
space in lobby; replace office lighting with energy efficient models; replace lobby carpets;
upgrade seating in main performance space; create new performance space from rehearsal hall
and create new, small performance space near entrance.
The total cost of this project is estimated to be $1,200,000. The City’s share of this cost is
$400,000. The Centre in the Square board has approved $400,000 to be allocated from the
Centre’s sustainability reserve fund to cover the 1/3 share of the eligible project costs.
McLennan Park Development
This project is currently in Phase 2 of development with Phase 3 & 4 being accelerated as a
result of funding received from the Infrastructure Stimulus Fund. In Phase 1, the tobogganing
hill, community trails, leash free area, Ottawa Street entrance and parking were completed. The
current and accelerated features will include a completed community trail system, skateboard
park, basketball & sand volleyball courts, comfort station, splash pad, bike park, great lawn,
public parking and Blackhorne Drive entrance.
é ó í
The total project cost of Phases 2, 3 & 4 is estimated to be $3,000,000. The City’s share of this
cost is $1,000,000. It is recommended that the funding for the City’s share of the eligible
projects costs be funded as follows; $443,000 in 2009 and 2010 from Development Charges
and $557,000 in 2011 from the McLennan Park skateboard park allocation in the City’s 10 year
capital forecast.
The extension of the Phase 2 consulting services provided by The Walter Fedy Partnership will
accelerate the future site works component (roads, parking & community trails) of the project in
2009. All remaining work (skateboard park, comfort station & splash pad) will be designed and
constructed in 2010.
Consolidated Maintenance Facility Improvements
This project will include rehabilitation of 45 acres of an industrial Brownfield site and reuse of an
existing 300,000 SF industrial building to create a multi-use consolidated maintenance facility
that will integrate municipal operations from five (5) existing locations and house approximately
500 staff and their related vehicles and equipment. The services delivered from the facility
include road maintenance snow clearing, watermain and sewer maintenance, gas line works,
parks and woodland maintenance, fleet repair and a corporate call centre.
The combined Federal and Provincial funding share is expected to be $9,333,334. The City’s
funding share is $4,666,666 and is being recommended to be funded from future land sales of
existing properties.
Consolidated Maintenance Facility Solar Roof
This project involves the Installation of a solar roof at the Consolidated Maintenance Facility.
This is an opportunity for the City to use approximately 262,000 square feet of roof area to
generate electricity from the sun utilizing photo-voltaic solar panels.
The total cost of this project is estimated to be $4,100,000. At the June 1, 2009 Finance and
Corporate Services committee, Council resolved that the City’s 1/3 share of $1,366,666 be
funded through a loan from the Local Environmental Action Fund and is to be paid back through
sale of electricity over a 5 year term with interest.
Accessibility Improvements
This project will include improved access to facilities, customer service, assembly areas, and
washroom facilities and will improve travel between floors. These improvements will also allow
the City to meet anticipated legislated requirements ahead of time and provides better service to
all customers.
The total cost of this project is estimated to be $1,000,000. The City’s share of this cost is
$332,000 and is being recommended that $156,000 be funded from the 2009 uncommitted
accessibility funds and the remaining $176,000 be funded from the 2010/2011 uncommitted
Accessibility fund allocations currently in the 10 year capital forecast.
City Hall Lighting
This project will enhance lighting to the perimeter of City Hall (Young St, King St, College St and
Duke St).
é ó ì
The total cost of this project is estimated to be $1,000,000. The City’s share of this cost is
$333,000 and is being recommended that $44,000 be funded from the 2009 uncommitted City
Hall Maintenance/Garage accounts and the remaining $289,000 be funded from the 2010/2011
uncommitted City Hall Maintenance/Garage allocations currently in the 10 year capital forecast.
Energy Management Systems
This project will include standardizing and upgrading the archaic Energy Management (EM)
control systems throughout the facilities (and installing them where they are currently absent)
permitting the building environments to be controlled remotely for quicker response and
providing access to data to trouble shoot problems.
The total cost of this project is estimated to be $1,500,000. The City’s share of this cost is
$500,000 and is being recommended to be funded from the uncommitted Energy Management
Fund over the next three years. The Energy Management Fund is expected to be in a modest
deficit until 2012 as a result of the contribution to this project. The anticipated payback will
occur over a ten-year period.
Table #1 below summarizes the funding recommendations outlined in the sections above.
Table #1 – Recommended Funding Sources
The City has also applied for Recreational Infrastructure Canada Fund (RInC) funding for
projects totally $9.2M. If this funding were approved, the City would be responsible for 1/3 of
the eligible project costs or $3.1M. Once the funding announcement is made, Staff will then
bring forward another report outlining funding options to consider for the City’s share of the 1/3
funding for RInC projects. That said, Council’s previous commitment to the projects would
enable them to commence in advance of that funding report should the announcement be made
immediately after Council recesses for the summer period.
EXPEDITED PURCHASING PROCESS
To meet the March 31, 2011 deadline, projects need to be initiated as quickly as possible. The
rapid implementation of projects will be constrained by the current purchasing By-law in several
areas (e.g., consultant selection process). That said, staff recognizes the importance of moving
projects forward as quickly as possible while at the same time maintaining a fair, open and
transparent procurement process. The following measures, for projects receiving funding
é ó ë
under the Infrastructure Stimulus Fund and the Recreational Infrastructure Canada Fund, strike
a balance between purchasing expediency and accountability.
The Mayor and Clerk should be authorized to execute agreements for approved
projects, subject to the satisfaction of the City Solicitor.
The Chief Administrative Officer should be authorized to approve tenders during the
summer recess or when there is an unacceptable delay before the next Council meeting
provided the costs are within the amount outlined in the application for funding and that
any such awards are reported at a future meeting of Council.
Consultants involved in the preliminary phases should be retained, subject to Council
approval, and the consultant selection process should be waived for:
McLennan Park – Walter Fedy Partnership
o
For Consultant projects over $100,000 cost information should be included with the
original submission, the interview process should be waived unless otherwise decided
by the selection committee, and the selection should be based on the original
submissions. It is anticipated that this exception will save up to three weeks in the
consultant selection process.
A contract Purchasing Assistant should be retained for up to 24 hours per week over an
eight-month period to expedite the tendering, selection and contract processing aspects
of the City’s approved projects.
At the August 10 Finance and Corporate Services committee meeting, Staff will report back on
the effectiveness of the recommendations outlined in this report and if any further purchasing
by-law requirements need to be expedited. Staff will also provide an update on project
timelines.
In light of the number of projects approved and the accountability obligations to the program and
City Council, it is recommended that a contract Accounting Technician be retained for up to 24
hours per week over a twenty-two month period to assemble all cost documentation, facilitate
quarterly reporting and claim submission, and support overall program coordination which would
include regular reporting to the Finance and Corporate Services Committee.
FINANCIAL IMPLICATIONS:
The City of Kitchener will be required to fund $10,121,665 which represents a 1/3 share of the
eligible projects costs approved under the Infrastructure Stimulus Fund. Since the anticipated
costs of a part-time contract Purchasing Assistant and Accounting Technician are not eligible for
funding under the stimulus program, it would be appropriate to fund them out of the City’s
capital contingency, which has a current balance of approximately $360,000. These staffing
costs are anticipated to be in the range of $150,000 and represent approximately 0.5% of total
project values.
COMMUNICATIONS:
None.
é ó ê
CONCLUSION:
The proposed capital projects under this program will contribute to national efforts now
underway to stimulate the Canadian economy. They will also have longer-term positive impacts
on several key municipal priorities, including: becoming more environmentally sustainable,
strengthening our local arts and culture community and making some limited progress on our
local infrastructure deficit.
Staff believes the proposed recommendations to expedite the purchasing process strikes the
right balance between moving quickly on these projects and ensuring the City remains
transparent and accountable for tax dollars spent.
ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services and City
Treasurer
é ó é
