2022-06-09 Finance Committee Agenda Packet - Open SessionCity of Saint John
Finance Committee - Open Session
AGENDA
Thursday, June 9, 2022
4:20 pm
Meeting Conducted by Electronic Participation
1. Call to Order
Pages
1. 1. Integrated Bilateral Fund 1 - 9
Jr!D. I
FINANCE COMMITTEE REPORT
Report Date June 08, 2022
Meeting Date June 09, 2022
Chairman Sullivan and Members of Finance Committee
SUBJECT. Integrated Bilateral Fund (W)
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Finance Committee.
AUTHORIZATION
Primary Author
Commissioner/Dept. Head
City Manager
Michael Baker/Brent
McGovern
Brent McGovern/Kevin
Fudge
John Collin
RECOMMENDATION
It is recommended:
1. Finance Committee endorse the updated proposed project list for
application to the Integrated Bilateral Agreement (IBA) funding
opportunity, and
2. Direct Staff to bring back recommendations as part of the 2023 Capital
Budget process.
EXECUTIVE SUMMARY
The allocation to Saint John under the Public Transit Infrastructure stream, based
on ridership was $61.15 million. To date, Saint John has transferred and
committed $24.8 million of these funds (see Exhibit A below). The remaining
balance available to the City of Saint John under the Public Transit Infrastructure
stream is $36.3 million. As per the agreement, the City can utilize these funds for
Public Transit Infrastructure, or the City can request that any portion of the funds
be transferred from the Public Transit Infrastructure stream to the Green
Infrastructure stream to be utilized for projects eligible under this category. The
federal funding opportunity is 40%. The Provincial funding participation is
project -dependent. Obtaining this funding was recently adopted as one of the
City's four advocacy efforts to undertake which is titled "Matching Dollars for
Bilateral Funding". The Province has not provided matching funding to projects
under the Public Transit Infrastructure stream. However, given the City is
choosing to transfer all of these funds to the Green Infrastructure stream, those
projects may be eligible for 33.33% provincial funding. This would reduce the
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City's contribution to 26.67%, potentially making an additional $30,250,238.01
(Provincial share) available in funding from others.
In March 2022 the Finance Committee endorsed the City completing an
application for an IBA funding opportunity. This Finance committee report
updates the projects proposed to be submitted under this funding opportunity
based on additional feedback from the Regional Development Corporation (RDC),
as a result of changes to the Bilateral funding program (2027 to 2033 for
construction) and due to significant market price increases in the past couple of
months.
PREVIOUS RESOLUTION
N/A
STRATEGIC ALIGNMENT
This report aligns with Council's Priorities for GROW, MOVE, GREEN AND
PREFORM by renewing assets at the end of their life, by better preparing the City
to receive the significant growth it is experiencing, by moving a large part of
uptown Saint John's biggest building stock to a non -carbon emitting heating
source, by improving access and safety at a key intersection as well as by
leveraging significant Other Share funding.
REPORT
In 2018, the Province of New Brunswick was allocated $679 million under the
Integrated Bilateral Agreement (IBA) with the Federal Government. Of this, $116
million was provided for under the Public Transit infrastructure stream.
The allocation to Saint John under the Public Transit Infrastructure stream, based
on ridership was $61.15 million. To date, Saint John has transferred and
committed $24.8 million of these funds (see Exhibit A below). The remaining
balance available to the City of Saint John under the Public Transit Infrastructure
stream is $36.3 million. As per the agreement, the City can utilize these funds for
Public Transit Infrastructure, or the City can request that any portion of the funds
be transferred from the Public Transit Infrastructure stream to the Green
Infrastructure stream to be utilized for projects eligible under this category. The
federal funding opportunity is 40%. The Provincial funding participation is
project -dependent. The Province has not provided matching funding to projects
under the Public Transit Infrastructure stream. However, with the City choosing to
transfer all of these funds to the Green Infrastructure stream, those projects may
be eligible for 33.33% provincial funding. This would reduce the City's contribution
to 26.67%, thus potentially making an additional $30,250,238.01 (Provincial
share) available in funding from others.
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Exhibit A
Recently the City became aware an overall extension to the expiry date for the IBA
program which now expires on March 31, 2034 (from the original March 31, 2028);
however, all project construction must be complete by October 2033 and the
deadline for federal approval has also changed to March 31, 2023 (from March 31,
2025) and therefore it is important that the City identify its funding priorities at
this time. It should be noted to date that the City has not received written
confirmation from the Province regarding the above changes to the IBA program
dates but it is expected that this is forthcoming. When the City completes an
application, the Province must first review and approve all submissions prior to
submitting to Infrastructure Canada for their review and approval. This process
can take anywhere between 6-12 months, depending on the complexity of the
project.
Green Infrastructure Stream
With the balance of the funds within the IBA being transferred from the Public
Transit Infrastructure stream to the Green Infrastructure stream to be used for
projects eligible under this category it means the remaining $36,303,916 in the
IBA — Public Transit Infrastructure fund would transition to a potential total
investment opportunity of $90,759,790 when considering the Federal (40%),
Provincial (33.33%) and Municipal (26.67%) contributions.
The Green Infrastructure stream as a program focuses on investments through a
climate lens and hence the projects put forward for consideration need to deliver
green results which aligns very well with Council's new priority of Green that has
a particular focus on Environmental Stewardship.
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In alignment with the Capital Budget Policy, staff have reviewed the Asset
Management Plan needs from a risk and level of service perspective while also
considering areas of the City that are seeing or are prone to see intensification
through the build out of vacant lands and the outstanding infrastructure deficit.
Staff have also assessed the eligibility criteria associated with the Green
Infrastructure stream under this Agreement and any project put forth must meet
at least one of the outcomes in the Green Infrastructure Outcomes listed below.
Green Infrastructure Outcomes
Climate Change Mitigation Outcomes:
• Increased capacity to manage more renewable energy
• Increased access to clean energy transportation
• Increased energy efficiency of buildings
• Increased generation of clean energy
Adaptation, Resilience and Disaster Mitigation Outcomes:
• Increased structural capacity and/or increased natural capacity to adapt to
climate change impacts, natural disasters and/or extreme weather events
Environmental Quality Outcomes:
• Increased capacity to treat and/or manage wastewater and stormwater
• Increased access to potable water
• Increased capacity to reduce and/or remediate soil and/or air pollutants
Considering all the above and feedback from RDC regarding the City's previous list
of projects staff have arrived at a detailed revised list of projects that are in a table
in the Appendix. Staff believe the proposed project list meet the eligibility criteria.
At a higher level, the projects can be categorized into key areas as noted in the
table below and as expanded upon below the table.
Year
Project
Federal
Provincial
Municipal
Funded by
others
Total
(40%)
(33.33%)
(26.67%)
(26.67%)
District Energy - Master
2023
Planning & Feasibility
$280,000
$233,310
$186,690
N/A
$700,000
Study
North End Combined
2023
Sewer Separation
$240,000
$199,980
$160,020
N/A
$600,000
Strategy
2023
Re -alignment of Retail
$2 742,955
$2,285,567
$0
$1,828,865
$6,857,388
Drive
*** Municipal share for the Re -alignment of Retail Drive project to be funded by Provincial/ Federal Funding
(From Others)
2023
Lancaster Lagoon
$940,000
$783,255
$626,745
N/A
$2,350,000
Aeration Piping
2023
Sewer Separation and
$527,200
$439,289
$351,511
N/A
$1,318,000
Street Reconstruction
2023
Renewal of Lift Stations
$128,000
$106,656
$85,344
N/A
$320,000
2024
District Energy - Utility
$400,000
$333,300
$266,700
N/A
$1,000,000
Development
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2024
Sewer Separation and
$2,368,000
$1,973,136
$1,578,864
N/A
$5,920,000
Street Reconstruction
2024
Renewal of Lift Stations
$852,000
$709,929
1 $568,071
N/A
$2,130,000
2025
District Energy -
$560,000
$466,620
$373,380
N/A
$1,400,000
Construction
2025
Sewer Separation and
$1,197,600
$997,900
$798,500
N/A
$2,994,000
Street Reconstruction
2025
Renewal of Lift Stations
$1,720,000
$1,433,190
$1,146,810
N/A
$4,300,000
2026
District Energy -
$2,168,192
$1,806,646
$1,445,642
N/A
$5,420,480
Construction
2026
Sewer Separation and
$1,397,200
$1,164,217
$931,583
N/A
$3,493,000
Street Reconstruction
2026
Renewal of Lift Stations
$1,520,000
$1,266,540
$1,013,460
N/A
$3,800,000
2027
District Energy -
$2,168,192
$1,806,646
$1,445,642
N/A
$5,420,480
Construction
2027
Sewer Separation and
$3,310,000
$2,758,058
$2,206,943
N/A
$8,275,000
Street Reconstruction
2027
Renewal of Lift Stations
$494,000
$411,626
$329,375
N/A
$1,235,000
2028
District Energy -
$2,168,192
$1,806,646
$1,445,642
N/A
$5,420,480
Construction
2028
Sewer Separation and
$1,254,800
$1,045,562
$836,638
N/A
$3,137,000
Street Reconstruction
2028
Renewal of Lift Stations
$2,128,000
$1,773,156
$1,418,844
N/A
$5,320,000
2029
District Energy -
$2,168,192
$1,806,646
$1,445,642
N/A
$5,420,480
Construction
2029
Sewer Separation and
$663,200
$552,611
$442,189
N/A
$1,658,000
Street Reconstruction
2029
Renewal of Lift Stations
$764,000
$636,603
$509,397
N/A
$1,910,000
2030
District Energy -
$2 128,192
$1,773,316
$1,418,972
N/A
$5,320,480
Construction
2030
Sewer Separation and
$1,392,000
$1,159,884
$928,116
N/A
$3,480,000
Street Reconstruction
2030
Renewal of Lift Stations
$624,000
$519,948
$416,052
N/A
$1,560,000
Total
$36,303,916
$30,250,238
$22,376,771
$1,828,865
$90,759,790
Of note, through discussions with RDC the Fleet Transition to Electric —Sedans and
SUV's project within the City's initial proposed IBA project list was determined to
not meet the Green Infrastructure Program parameters therefore was removed
from the updated projects list. At a high level the re -alignment of Retail Drive and
Lancaster Lagoon Aeration Piping projects were added to the revised IBA projects
list and several sewer separation and street reconstruction projects were removed
in order to reallocate the funding.
Overall project descriptions are detailed below for each project included within
the updated IBA project list.
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1. District Energy System - The City of Saint John has declared a climate
emergency and joined the Race to Zero. This latter initiative includes a
commitment to reduce GHG emissions in line with a maximum 1.5 degrees
Celsius increase in global temperatures. District energy was identified in
the City of Saint John Community GHG & Energy Action Plan as the primary
opportunity for income generation from local renewable energy and a
significant means of impacting GHG emissions locally. To advance this
initiative, a high-level conceptual budget that provides an overview of
possible expenditures from 2023 to 2030 has been prepared. The project
would begin with feasibility studies on both energy supply options and
heat network/in-building. The study would be conducted in parallel with
creation of a Saint John Buildings Database. For the current project, it is
envisioned the database will be populated with Class B detailed
information for 50-60 of the largest buildings in Uptown. These would be
the anchor loads for a Saint John district energy system. This significant
investment would allow for the build of a significant portion of the district
energy system.
2. Street and Infrastructure Renewal —This infrastructure renewal is focused
in the intensification areas of the PDA (primary development area) and
would include the renewal of 3.210 kms of street reconstruction in the
central peninsula and the old North End including new underground
infrastructure, rebuilt streets and sidewalks and street beautification. This
aligns with the Central Peninsula Neighbourhood Plan and will also support
the renewal of the old North End by preparing the infrastructure for
growth and development as much of the underground infrastructure in
this area is approximately 100 years old. The project would improve
environmental performance while making the areas more sustainable and
attractive to new growth and development.
3. Lancaster Lagoon Aeration Renewal — This initiative would involve the
upgrade of the air piping system at one of the City's wastewater treatment
facilities where its air piping components are beyond their useful lives. It
was determined through investigations and preliminary design that in
order to update the facilities aeration system that substantial funding
would need to be obtained to complete the work. This project was listed
within the Utilities 2021 Capital Program however there is insufficient
funding to complete the work therefore the IBA funding would enable the
funding of this important project.
4. Wastewater Pumping Stations —This initiative would involve the renewal
of 10 wastewater lift stations across the City that are beyond the useful life
of the assets. This will improve the ability to handle new development, to
improve service continuity by having reliable infrastructure and it would
improve operational efficiency through the use of new high efficiency
pumps/motors and improve workplace safety for the operational staff. It
is noteworthy that Saint John is very unique in comparison to other cities
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in that it has an inventory of lift stations that far exceeds those in Moncton,
Fredericton, Riverview, Dieppe and some other municipalities combined,
the reason being is Saint John's terrain. To keep up with infrastructure
renewal the City should be renewing 2 to 3 lift stations every year and
those investments have not been made in recent years to mitigate
pressure on rates. This investment would have a significant impact on
addressing the near -term infrastructure deficit within the Utility.
5. Retail Drive Re -alignment — This project would involve re -aligning the
intersection of Ashburn Lake Road and Retail Drive at Rothesay Avenue to
improve a sub -standard transportation design that was originally
constructed as a short-term solution. The re -alignment of this intersection
would remove a set of traffic lights and this project is identified as one of
the recommended actions in Move SJ and the City's Transportation Plan.
The project would also upgrade all the infrastructure under the realigned
roadway and renew one set of traffic lights. It should be noted that the
Municipal Share (26.67%) for this project is to be funded by Others
(Province and/or Federal Government) as the City's intent is to only fund
the ineligible project costs.
SERVICEAND FINANCIAL OUTCOMES
As detailed above.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input has been sought from within Utilities and Infrastructure as well as Strategic
Services and Public Works and Transportation
ATTACHMENTS
Detailed Breakdown of Project List for Bilateral Program Funding
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