Report to/Rapport au:

 

Council /

Conseil

 

21 September 2010 / le 21 septembre 2010

 

Submitted by/Soumis par : Nancy Schepers, Deputy City Manager/

Directrice municipale adjointe, Infrastructure Services and Community Sustainability/Services d’infrastructure et Viabilité des collectivités

 

Contact Person/Personne ressource : Wayne Newell, General Manager / Directeur général

Infrastructure Services / Services d'infrastructure

(613) 580-2424 x16002, Wayne.Newell@ottawa.ca

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2010-ICS-INF-0022

 

 

SUBJECT:

Infrastructure STIMULUS FUND PROGRAM – Additional Projects Funded by Recycling of surplus funds – Councillor requested projects

 

 

OBJET :

programme du fonds de stimulation infrastructure – Projets supplémentaires financés par le réinvestissement de fonds excédentaires - IDENTIFIÉS PAR LES CONSEILLERS

 

 

REPORT RECOMMENDATIONS

 

That Council, at its meeting of 22 September 2010:

 

1)      Approve the list of additional Infrastructure Stimulus Fund (ISF) projects as detailed in Document 1, which can be completed by 31 March 2011 and will be funded by recycling of surplus funds from delivery of the ISF projects that were approved by the Federal and Provincial Governments on 5 June 2009;

 

2)      Direct staff to finalize the official funding request for the additional projects as detailed on Document 1, and to initiate the projects as soon as approval of the funding requests has been received;

 

3)      Direct the City Treasurer to increase the City’s debt authority by $447,000 as an interim financing measure and to report back with the identification of the sources of funding for the City’s share of the projects for Council approval; and

 

4)      Receive the list of additional Infrastructure Stimulus Fund (ISF) projects as detailed in Document 2, and direct staff to report back to Corporate Services Committee and Council, should an extension of the ISF completion deadline to 31 December 2011 be approved by the Federal and Provincial governments.

 

RECOMMANDATIONS DU RAPPORT

 

Que le Conseil, lors de sa réunion du 22 septembre 2010 :

 

1)      Approuve la liste des projects supplémentaires du fonds de stimulation de l’infrastructure (FSI) tels qu’ils sont précisés dans le Document 1 et pouvant être terminés d’ici le 31 mars 2011.  Ces projets seront financés en réinvestissant les surplus du fonds provenant de la mise en œuvre des projets du FSI approuvés par les gouvernements fédéral et provincial le 5 juin 2009;

 

2)      donne au personnel des instructions pour qu’il termine la demande officielle de financement pour les projets supplémentaires décrits dans le Document 1, et pour qu’il commence la réalisation des projets dès que leur financement sera approuvé;

 

3)      donne à la trésorière municipale des instructions pour qu’elle augmente la dette de la Ville de 447 000 $ comme mesure de financement provisoire, et qu’elle prépare un rapport, qui sera soumis à l’approbation du Conseil, sur les sources de financement qui permettront à la Ville de payer sa part des coûts des projets.

 

4)      Prenne connaissance de la liste des projets supplémentaires du fonds de stimulation de l’infrastructure (FSI) tels qu’ils sont précisés dans le Document 2 et demande au personnel de présenter un rapport au Comité des services organisationnels et du développement économique et Conseil si la prolongation jusqu’au 31 décembre 2011 de l’échéancier pour la mise en œuvre des projets du FSI devait être approuvée par les gouvernements fédéral et provincial;

 

 

BACKGROUND

 

Council, at its meeting of 25 August 2010 received a status update on the City of Ottawa Economic Stimulus Fund (ESF) program.  It was reported the ESF program had a projected cost at completion of $370 million, $31 million below the $401 million ESF budget.  The Infrastructure Stimulus Fund (ISF) component of the ESF program had a projected cost at completion of $345 million, $30 million below the $375 million ISF budget.

 

Staff were advised by ISF program administrators at the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) on 16 August 2010 that the City could submit applications for additional projects to be completed by 31 March 2011, using the projected savings from the City's ISF program.

 

Council, at its meeting of 8 September 2010 considered additional projects recommended for implementation by 31 March 2011.  The list was prepared based upon consideration of needs, priorities, readiness, constraints such as capacity to deliver (both internally and externally) and ability to complete by 31 March 2011.  Council approved the list, which represented $18.37 million of the City's projected $30 million savings, and carried the following resolutions:

 

 

 

 

MOTION

 

Moved by Councillor R. Jellett

Seconded by Councillor R. Bloess

 

WHEREAS there is now an opportunity to apply for new projects using identified savings from under spending on existing ISF projects;

 

AND WHEREAS the original ISF program had a completion date of March 31, 2011;

 

AND WHEREAS it is now September and time is quickly running out to initiate new projects and meet the above timeline;

 

THEREFORE BE IT RESOLVED that the City of Ottawa, ask both the Federal and Provincial governments for an extension on the March 31 2011 deadline to December 31, 2011, on the new projects relating to the savings on existing ISF work, so as to allow us to meet the next construction season.

 

                                                                                                CARRIED

 

 

MOTION

 

Moved by Councillor B. Monette

Seconded by Councillor R. Jellett

 

WHEREAS the City has asked for an extension on the March 31, 2011 deadline on the new projects relating to the savings on existing ISF work;

  

THEREFORE BE IT RESOLVED that staff, in consultation with each Ward Councillor, provide a list of additional ISF projects that could be completed within the extended time period, and within the current conditions, to be presented at the September 22, 2010 City Council meeting and to include a comment from the City Treasurer regarding any additional debt authority that may be needed.

                                                                                                            CARRIED

 

 

Direction to Staff

 

That subject to the ability to use surplus stimulus funds for housing that potential projects from OCH that can meet the timeframe be considered for inclusion.

 

 


DISCUSSION

 

Staff have completed the application process for the additional list of projects approved by Council at its meeting on 08 September 2010.  This detailed application process includes submission of project description, project benefits, location map, identification of specific current ISF projects where the savings would be taken for each proposed new project, Engineer Affidavit certifying that the project can be completed by 31 March 2011, listing of approvals and permits required and other factors.  Approvals have not been received yet but are actively being pursued by staff. 

 

The Mayor and Councillors were sent a memo on 9 September 2010 asking for their requested proposed projects to be submitted to the Department by 4pm on 13 September 2010.

 

A total of 118 projects, with an estimated total cost of approximately $126 million, were submitted by Councillors for consideration.

 

Staff have been assessing the requested additional projects on a “fast-tracked basis”.  Various City Departments have been involved in the determination of the project scope and details, feasibility of implementation by the 31 March 2011 and 31 December 2011 deadlines and preparation of preliminary cost estimates.

 

Projects were distributed into three separate categories as follows:

 

1.      Projects that could be completed by 31 March 2011 (Document 1);

 

2.      Projects that could be completed by 31 December 2011 (Document 2); and

 

3.      Projects that could not be completed by 31 December 2011 (Document 3).

 

The following assumptions were made in carrying out the assessments:

 

a)             Council approval of the recommendations of this report at the 22 September 2010 meeting;

 

b)             Approval of the projects on Document 1 by Federal and Provincial governments by 15 October 2010;

 

c)             Approval of the deadline extension request by Federal and Provincial governments by 1 November 2010;

 

d)            Council approval of the projects to be submitted for implementation by the extended deadline from Document 2 by the end of November 2010; and

 

e)             Approval by Federal and Provincial governments of projects to be completed by the extended deadline by the end of December 2011.

 

The following factors were considered in carrying out the assessments of the ability to complete the projects by the deadlines:

 

 

To maximize the likelihood of success of implementing the additional projects identified in Document 1 by the 31 March 2011 deadline, staff initiated the application process to OMAFRA indicating the projects are subject to Council approval.

 

As requested by Council, the Department has consulted with Ottawa Community Housing (OCH).  Additional projects have been identified for completion by the 31 March 2011 and 31 December 3011 deadlines.  However, staff inquired as to the eligibility of housing projects and received a response from OMAFRA that municipal housing projects such as social housing are not eligible, as noted in Document 4.  Based on further discussions with OMAFRA, OCH and Community and Social Services Department, community houses for the purposes of providing services to residents of social housing communities staff may be eligible.  Document 2 reflects associated works for community houses.  Confirmation of eligibility would occur through the application process.

 

As requested by Council, a letter was sent to the Federal and Provincial Ministers responsible for administering the ISF program on 9 September 2010 requesting an extension of the deadline to 31 December 2011 for the additional projects.  Copies of the letters are included in this report as Documents 5 and 6.  Responses have not been received to date.

 

Should the request for an extension of the deadline to 31 December 2011 be approved by the Federal and Provincial governments, staff will report back to Corporate Services and Economic Development Committee and Council to seek approval for the further additional projects to be submitted for implementation by the extended deadline.  Should additional program surpluses be realized as the ISF program moves closer to completion, these will be considered in the determination of further additional projects to be submitted for implementation.

 

 

RURAL IMPLICATIONS

 

The approved program includes ditch cleaning on rural roads

 

 

CONSULTATION

 

Consultation with Mayor and Members of Council, various City departments and the construction industry was undertaken to develop the recommended list of projects.

 

 


COMMENTS BY THE WARD COUNCILLOR

 

The ISF Program is a City-wide program.  Consultation with each of the individual Ward Councillors will be carried out by project management staff on a project-by-project basis.

 

 

LEGAL/RISK MANAGEMENT IMPLICATIONS

 

There are no legal/risk management impediments to implementing any of the recommendations in this report.

 

 

CITY STRATEGIC PLAN

 

The Council approved ESF program is in accordance with the objectives of the city’s Official Plan and City’s Strategic Plan.

 

These projects follow the City’s long-term goal to create a community that is economically, socially and environmentally viable for today and for generations to come.  By investing in our infrastructure, increasing accessibility to public and pedestrian transportation and creating an enhanced cultural and social network the City is improving the quality of life for today’s residents without comprising the needs of future generations.

 

 

TECHNICAL IMPLICATIONS

 

There are no technical implications.

 

 

FINANCIAL IMPLICATIONS

 

The City's share of the additional Infrastructure Stimulus Fund projects is $447,000.  As an interim measure, debt authority would be increased by this amount.  An analysis of all ESF projects will be carried out subsequent to the program completion date of March 31, 2011.  At that time, debt authority for the projects with surpluses will be eliminated; it is anticipated that the authority eliminated will offset the additional debt authority.

Associated operating impacts are outlined in Document 1.  These requirements will be brought forward in the 2011 Draft Operating Budget.

 

 


SUPPORTING DOCUMENTATION

 

Document 1 – Infrastructure Stimulus Fund (ISF) – Proposed New Projects to be completed by 31 March 2011

Document 2 – Infrastructure Stimulus Fund (ISF) – Proposed New Projects to be completed by 31 December 2011

Document 3 – Infrastructure Stimulus Fund (ISF) – Proposed New Projects that cannot be completed by 31 December 2011

Document 4 – Letter from OMAFRA concerning Housing projects and eligibility criteria for new projects

Document 5 – Letter to Federal Minister

Document 6 – Letter to Provincial Minister

 

 

DISPOSITION

 

Once approved by Council, staff will proceed to implementation of the projects in Document 1, subject to approval from the Federal and Provincial governments.

 

Staff will report back to Corporate Services and Economic Development Committee and Council concerning the implementation of further additional projects should an extension of the ISF completion deadline to 31 December 2011 be approved by the Federal and Provincial governments.

 

Staff will report back to Council on the status of approved projects as part of the ESF status update reports being provided to Council on a quarterly basis, in addition to providing monthly progress status reports.