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HomeMy WebLinkAboutFIN-09-092 - Stimulus Project Update - August 2009K .R Firrur~aQl~ervice~ REPORT REPORT TO: Councillor Berry Vrbanovic, Chair, and Members of the Finance and Corporate Services Committee DATE OF MEETING: August 10, 2009 SUBMITTED BY: Dan Chapman, General Manager of Financial Services PREPARED BY: Saleh Saleh, Senior Financial Analyst Jaya Chatterjee, Junior Financial Analyst WARD(S) INVOLVED: All DATE OF REPORT: August 6, 2009 REPORT NO.: FIN-09-092 SUBJECT: STIMULUS PROJECT UPDATE -AUGUST 2009 RECOMMENDATION: THAT the City of Kitchener's 1/3 share of funding for eligible project costs for approved Recreational Infrastructure Canada projects be identified through the 2010 budget process and funded within the 10 year Capital Forecast; AND FURTHER THAT the following additional measure be approved to accelerate the implementation of Stimulus Funding projects: • Storm Water Infrastructure Rehabilitation projects, involving drainage upgrades only, will be delivered by general contractors under existing construction contracts through a standard change order process as per purchasing guidelines BACKGROUND: This report represents the first of a series of bi-monthly updates to Finance and Corporate Services Committee on the status of the City's Stimulus Funding Projects. Each report will contain the following information: Section 1 -Project Status Update Section 2 -Expedited Purchasing Measures Section 3 -Federal/ Provincial Program Updates Section 4 -Other Information REPORT: Section 1 -Project Status Update The City's approved stimulus funding projects have progressed well since funding was first announced. Appendix "A" provides a summary of project status and Appendix "B" depicts the progress towards completion of each project compared to the planned timeline. On June 30, MP Harold Albrecht and MPP Leanna Pendergast announced that the City was successful in applications for Recreational Infrastructure Canada (RInC) funding for the Sportsworld Arena Upgrade project and a portion of the Aquatic Facility Upgrade project. On July 8, a letter was received from the Federal Minister of Industry and Provincial Minister of Energy and Infrastructure indicating that the Sportsworld Arena Upgrade project and Bridgeport Community Centre Upgrade project were approved. The two announcements were inconsistent. Since the time this issue came to light, City staff has pursed the matter with staff in the offices of Harold Albrecht and Tony Clement (Minister of Industry) in an attempt to resolve it. On August 6, 2009 staff received verbal confirmation that the Sportsworld Arena Upgrade project and the Bridgeport Community Centre Upgrade project are approved and can commence. Staff have also been advised that additional information is required in order for the Aquatic Facility Upgrade project to be confirmed approved. Staff will be compiling and submitting this information the week of August 10 and expect that a final determination will be made shortly thereafter. Given the fact that the City's total funding obligation is not yet finalized and the 2010 budget process is now underway, it is recommended that the City share of funding for RInC projects be identified in the 10-year capital forecast. Options for funding these costs out of the capital pool include sources such as reserve funds and capacity created through the adoption of a new Development Charges By-Law and growth-related capital forecast. Development charges funding may also be available to fund the Bridgeport Community Centre Upgrade project. Section 2 -Expedited Purchasing Measures On June 29, Council approved a number of purchasing measures to expedite projects receiving funds under the Infrastructure Stimulus Fund and the Recreational Infrastructure Canada Fund while still maintaining a fair, open and transparent procurement process. The measures, along with comments on their utilization, are outlined below: Expedited Purchasing Measure Utilization The Mayor and Clerk are authorized to sign No agreements have been received to date Provincial and Federal agreements as they but are expected in the near future. relate to the Infrastructure Stimulus Fund and the Recreational Infrastructure Canada Fund, subject to the satisfaction of the City Solicitor. The Chief Administrative Officer is designated No purchasing approvals have been granted to award tenders on Infrastructure Stimulus by the CAO for ISF projects to date. Fund projects provided that the costs are within the projected expenses outlined in the applications and they are reported to Council by way of the bi-monthly update report. Consultants involved in the preliminary phases This measure has been effective at expediting be retained and the consultant selection the McLennan Park timeline. process be waived for: • McLennan Park -Walter Fedy Partnership For Consultant projects over $100,000, cost This measure has not been required to date. information is to be included with the original However, It is anticipated that this exception submission, the interview process is to be will save three weeks in the consultant waived, and the selection will be based on the selection process. original submissions. It is also recommended that the Storm Water Infrastructure Rehabilitation projects, involving drainage upgrades only, be expedited by utilizing existing general contractors and current construction contracts through a standard change order process as per purchasing guidelines. These projects are relatively small in scope and as such no amendment to contract documents is anticipated. The existing contract contingency (approximately $350,000) would be utilized and a report to Council would be submitted if the existing contract contingency is exceeded. Change orders would then be used to track costs and submitted for reimbursement to the Federal and Provincial governments. Section 3 -Federal/ Provincial Program Updates The City has been advised that applications for the $1-billion Green Infrastructure Fund (GIF) are to be made by way of a letter summarizing the City's project. There is no formal intake of applications for this program. If there is interest on the part of the Federal Government, proponents will be invited to submit a more detailed proposal that describes the project and its components, cost estimates, expected results and benefits. The only green infrastructure project identified by the City which has not already been funded through the original ISF and RInC application intakes is the Solar Retrofits project for various facilities which has a cost of $1.2 million. On July 8, the City submitted a letter to Infrastructure Canada to advance this project for consideration. Section 4 -Other Information This report represents the first of a series of bi-monthly updates to Finance and Corporate Services Committee on the status of the City's Stimulus Funding Projects. Similar reports will be provided to Committee on October 5, 2009 and December 7, 2009. A schedule of reports for 2010 will be outlined in the December report. A part-time Junior Financial Analyst has been retained on contract to assist in project monitoring, reporting, analysis and claims submission. This individual will be meeting regularly with project managers to ensure that Council and the public remain informed on the progress of infrastructure projects and that the infrastructure funds are spent in an open, transparent and accountable manner. FINANCIAL IMPLICATIONS: The City of Kitchener will be responsible for funding 1/3 of the eligible costs for RInC projects. The City's share of the funding will be identified through the ten-year capital forecast as part of the 2010 budget process. COMMUNICATION: To assist in ensuring these infrastructure funds are spent in an open, transparent and accountable manner, staff will develop a full communications plan which will provide residents an opportunity to track the progress of these projects on a regular basis. 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