HomeMy WebLinkAboutFIN-09-092 - Stimulus Project Update - August 2009K .R
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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.
ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services & City Treasurer
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