Municipal Infrastructure

1. MunicipalInfrastructure Roles and Responsibilities…

2. Overview Introduction Application & Approval Design Phase Construction Phase Project Termination

3. Introduction

4. Introduction…So what’s CAPITAL WORKS? • Encompasses a wide range of municipal infrastructure • Is necessary for sustainability and to build on the long-term economic growth of communities, allowing them to deliver strong municipal services and meet infrastructure needs • Typical projects? • Water & sewer • Roads • Recreational facilities • Municipal buildings

5. Capital Works Funding Programs… Capital Works Municipal Capital Works (MCW) Multi-Year Capital Works (MYCW) Federal/ Provincial/Municipal Programs

6. Municipal Capital Works (MCW) • Represents the Government of Newfoundland and Labrador’s commitment to investing in municipal infrastructure throughout our province • Fosters the development of cost-shared projects in a wide range of municipal infrastructure • Funding is provincial and municipal cost shared only • Eligible projects may include: • Water and sewer treatment • Roads • Recreational Facilities • Municipal buildings

7. Municipal Capital Works (MCW) • At this time, eligible funding is allocated based on the following ratios: • 90/10 for populations less than 3,000 • 80/20 for populations between 3,000 and 7,000 • 70/30 for populations greater than 7,000 • Local Service Districts would also qualify for funding support on approved projects

8. Multi-Year Capital Works (MYCW) • Represents the Government of Newfoundland and Labrador’s commitment to investment in larger scale municipal infrastructure projects • Allows for better planning • Achieves economies of scale • Larger municipalities are invited to avail of three-year blocks of funding • Funding is cost-shared (provincial / municipal) • Eligible projects are the same as those considered under the MCW program • Hard copy application

9. Municipal / Provincial / Federal Programs • This refers to partnerships between various combinations of municipal, provincial, and federal governments • Building Canada Fund (BCF) • Communities Component: Regular • Communities Component: Top-Up • Infrastructure Stimulus Fund • Base Funds • Canada Strategic Infrastructure Fund (CSIF) • Municipal Rural Infrastructure Fund (MRIF)

10. Stakeholders Municipality (Project OWNER) Municipal Affairs (Project Assessment, Support, Sponsor) ------------ Other Government Departments Consultant Contractor

11. Application & Approval

12. The Application Process

13. The Application Process… • Municipal Capital Works is application driven • An online application must be submitted to the Department of Municipal Affairs by municipalities or Local Service Districts for any given project • Letters inviting MCW applications are sent to municipalities in early fall • If you do not receive a letter, please contact MA • Deadline for submission of applications is in the fall

14. The Application Process… • Don’t wait until June or July to start thinking about your municipality’s infrastructure needs. • The long-term sustainability, growth, and development of your municipality is an ongoing process. • Therefore, infrastructure should be considered as part of the ongoing process of managing your municipal operations.

15. The Application Process Your application for project funding will consist of: • Online application • Supporting documents Further details on the application process are available: • In letter of application • On Municipal Affairs website • http://www.ma.gov.nl.ca/ma/capital_works/proposed.html

16. Applications for project funding MUST be submitted via SIMSI Shared Information Management System for Infrastructure (SIMSI) This is the Federal Government’s online application format; developed for such programs as Building Canada Fund – Communities Component (BCF-CC) The Application Process…Online Component

17. https://bcfcc-fccvc.infrastructure.gc.ca/

18. The Application Process…Online Component • To access SIMSI, you will need to use the USER ID and PASSWORD issued previously for the Building Canada Fund – Communities Component.

20. Helpful Hints for completing the online application… • As the applicant, you (the municipality) are responsible for ensuring that full and accurate information is submitted. • Incomplete applications will not be considered until all the necessary information has been submitted. • A more complete application will speed up the assessment process.

21. Helpful Hints for completing the online application… • You should provide a clear understanding of the “Who, What, Where, Why, When, and How” of the project. • Answer all questions to the best of your ability. • Be specific!

22. Helpful Hints for completing the online application… • Pay close attention to: • Project Description • Project Rationale • Total Project Costs

23. Helpful Hints for completing the online application… • Project Description/Abstract • Detailed description, outlining the nature of the physical infrastructure to be constructed, renewed or enhanced. • Main components of infrastructure • Dimensions (height, length, footprint) • Construction materials & techniques • Brief site description • Purpose of the infrastructure

24. Helpful Hints for completing the online application… • Project Description/Abstract • Identify any environmentally sensitive areas near the project • Indicate if there is a water body within 30m of the project

26. Helpful Hints for completing the online application… • Project Description • Statement of need • Suggestions to address need • Suggest anticipated cost • Ball park costs • Ball park schedule

27. Helpful Hints for completing the online application… • “2009 MCW Water and Sewer Upgrade” Example of a weak Project Description:

28. Helpful Hints for completing the online application… • In order to address the significant leaks in the water main along Farrell’s Road, Dawe’s Road, and Sheppard’s Road, the proposed project includes removing and disposing of approximately 310m of old sections of pipe to replace it with new pipe of the same make. • The approximately 270m of adjacent sewer main will also be replaced at this time. • The result will be more efficient water disinfection and distribution and protection of human health in the event of a sewage line break. Cont’d… Example of a strong Project Description:

29. Helpful Hints for completing the online application… • Asphalt will be reinstated to the same condition as it was before work began. • This project will also remove, dispose, and replace approximately 14m of 500mm culvert and remove and reinstall approximately 16m of 500mm culvert in order to improve drainage for the area. • The estimated cost is $200,000 and is anticipated to be completed by September 2009. Example of a strong Project Description:

30. Helpful Hints for completing the online application… • Project Description vs. Project Title • Sometimes, the ‘project description’ is incorrectly used as the ‘project title’. • What to include in a Project Title? • Location • Type of Work • Project Year

31. Helpful Hints for completing the online application… • Project Title • The ‘project title’ for the project we just described could be: • “Farrell’s Road, Dawe’s Road, and Sheppard’s Road water main replacement and drainage improvements, 2011”

32. Helpful Hints for completing the online application… • Project Rationale • This will be the basis for the assessment of your application • So, please make sure that you provide as much detail as possible

33. Helpful Hints for completing the online application… • Project Rationale • What are the specific problems or objectives that this project will address? • How would your project address these specific problems or objectives? • What alternatives to the proposed solution have been considered? • FYI: there are always alternatives; please do not enter ‘none’ or ‘n/a’

35. Helpful Hints for completing the online application… • “Because lines are old and leaking significantly” Example of a poorly written Project Rationale:

36. Helpful Hints for completing the online application… • There have been a number of instances in the recent past where there has been cross-contamination between water and sewer lines because of aged infrastructure in this area of town. • It is known that the water main is leaking significantly for the roads mentioned above and it is highly probable that the useful life of the sewer main has expired, when we consider nearby roads of the same age that have already experienced cross-contamination. Cont’d… Example of a well-written Project Rationale:

37. Helpful Hints for completing the online application… • An investigation was carried out to determine if there were factors unique to these roads that may cause the water main to leak so much, but it has been determined that it is simply too old and replacement is warranted. • The proposed drainage maintenance was identified as a problem a number of years ago but was determined to be a lower priority. It is increasingly feasible to accomplish this work while addressing the water/sewer infrastructure noted above. The problem identified is related to flooding of a school bus turnaround and adjacent private properties. Example of a well-written Project Rationale:

38. Helpful Hints for completing the online application… Project Rationale… • Please note: • It is important to remember that as a municipality, you are responsible for providing adequate details so that the Department of Municipal Affairs can determine whether or not the rationale for the work fits the mandate of the MCW program.

39. Helpful Hints for completing the online application… • Project Costs • Applicants must define total (gross) project costs. • Before GST rebate or cost sharing is taken into account… • engineering, construction, HST, and any other costs associated with the project need to be identified.

40. “Eligible Costs” • Do NOT include HST. • This info would usually be available from the detailed estimates provided by Consultant.

41. Total Eligible Cost is the sum of ‘Eligible Cost’ plus “Other”. This is the actual amount of funding being applied for. Helpful Hints for completing the online application… • “Other” Eligible Costs • May include regulatory permits or specialized testing • Usually included in Consultant’s estimates • Most projects have no entries here Record GST rebate here. Taxes.

42. Helpful Hints for completing the online application… In the majority of cases, there are no ineligible costs. Exception: Land Acquisition – ineligible under federal funding, but may be considered on a case-specific basis if the funding doesn’t include a federal contribution.

43. The Application ProcessA note on the GST rebate… • Municipality is required to apply for the appropriate rebates • GST rebate is to be used as part of project funding • Municipality is responsible for interim financing of GST rebate

44. Helpful Hints, cont’d…A final note on Gross vs. Net Costs… So what happens if we mistakenly enter NET costs where a GROSS cost is supposed to be used?

45. Helpful Hints for completing the online application… If you use net cost where a gross cost is supposed to be entered, then MA may end up funding the project at net, rather than gross cost. So, you may not have enough money to cover costs when the time comes to write the cheques!

46. The Application Process…Supporting Documentation • We’ve talked about the online application… • But we also need to discuss what other documents are required to be submitted…

47. The Application Process…Supporting Documentation • The following items mustbe submitted in addition to the online application by the deadline date • Completed Financial Evaluation Form (2 copies) • Bank Letter (2 copies) • Resolution of Local Government (2 copies) • Project Cost Estimates (7 copies) • Drawing indicating location and scope of the proposed project (7 copies)

48. The Application Process…Supporting Documentation • Financial Evaluation Form • Provides an overview of Council’s current financial position, and • Details how Council intends to finance its portion of the project from capital and operating perspective (where applicable)

49. The Application Process…Supporting Documentation • Bank Letter • The municipality must submit a letter from a financial institution confirming that lending will be considered. Cont’d…

50. The Application Process…Supporting Documentation • Bank Letter should outline: • That this is a non-government guaranteed loan • Term, in either years or months • Principal amount • Annual payment amount