2019-12-04_Agenda Packet--Dossier de l'ordre du jourCity of Saint John
Common Council Special Meeting
AGENDA
Wednesday, December 4, 2019
4:30 p.m.
8th Floor Common Council Chamber (Ludlow Room), City Hall
1. Call to Order
1.1 Budget 2020
1.2 2020 Utility Fund Operating Budget (1st and 2nd Reading)
1.3 Sustainability Initiatives
1.3.1 Winter Street Maintenance — Sustainability Item
1.3.2 Reduction in Economic Development Investment — Sustainability Item
1.3.3 Freeze Goods and Services Budget Envelope — Sustainability Item
1.3.4 Recreation Subsidization Policies - Sustainability Initiative
1.3.5 Arena Closure — Sustainability Item
1.4 Federal Funding for Climate Change
1.4.1 Low Carbon Economy Fund (LCEF) Agreement - Municipal Buildings
Deep Energy Retrofit (MBDER)
1.4.2 Low Carbon Economy Fund (LCEF) Agreement - District Energy
System (DES) Project
Pages
1-33
34-59
60-66
67-69
70-73
74-106
107-117
118-153
154-187
COMMON COUNCIL REPORT
M&C No.
2019-342
Report Date
December 03, 2019
Meeting Date
December 04, 2019
Service Area
Finance and
Administrative Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: 2020 General Fund Operating Budget
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner
City Manager
Recommended by
Craig Lavigne
Kevin Fudge
John Collin
Finance Committee
Councillor Merrithew
Finance Chair
RECOMMENDATION
It is recommended that members of Common Council;
• Reflect upon the attached draft of the 2020 General Fund Operating
Budget and make any and all inquiries and recommendations to staff;
and receive and file this report.
EXECUTIVE SUMMARY
The draft 2020 General Fund Operating Budget was presented to the Finance
Committee on September 3rd and December 3rd and was recommended by the
Finance Committee that Common Council receive and file the operating budget
at its meeting on December 41h
On November 201h, the Province released the property assessment and
unconditional grant information and staff presented that information to the
Finance Committee on the same date.
The General Fund Operating budget has a slight increase in the estimated tax
assessment of 1.83% versus 1.50% as first presented. This slight increase in
revenue will offset the funding required from the Province.
The 2020 budget will be the last year of the three year funding commitment
from the Province which has been used to deal with the City's structural deficit.
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Council and the Province have endorsed the "Sustaining Saint John, A Three Part
Plan,". This report has lays out 20 action items for both the Province and the City
to complete in the short, medium and long term.
While that plan lays out the road map for long term sustainability for the City, it
does not address the structural deficit the City is facing in 2021. Therefore the
City is taking action immediately to deal with what it considers barriers to
achieve sustainability. Escalating wages and benefits, high debt and large
infrastructure deficit, along with approximately 60 initiates brought forward by
the City Manager will start being actioned and implemented in 2020. The 2020
budget being proposed must be considered as a transitional budget as these
sustainability initiatives and barriers are dealt with in 2020.
PREVIOUS RESOLUTION
December 3, 2019 Finance Committee Meeting — "It is recommended that
Finance Committee endorse the 2020 General Fund Operating Budget and
submit to Common Council with a recommendation to receive and file."
STRATEGIC ALIGNMENT
The proposed 2020 General Fund Budget aligns with Councils priority of being
fiscally responsible. Council and the City need to deal with a structural budget
deficit in 2021. The 2020 transitional budget will allow Council and staff the time
and funding needed to deal with barriers, sustainability initiatives, along with
working with the Province on the "Three Part Plan"
REPORT
The 2020 budget will be the last year of the three year funding commitment
from the Province that has been used to deal with the City's structural budget
deficit. Council and the Province have endorsed the "Sustaining Saint John, A
Three Part Plan". This report has lays out 20 action items for both the Province
and the City to complete in the short, medium and long term.
While that plan lays out the road map for long term sustainability for the City, it
does not address the structural deficit the City is facing in 2021. Therefore the
City is taking action immediately to deal with what is considers barriers to
achieve sustainability. Escalating wages and benefits, high debt and large
infrastructure deficit, along with approximately 60 initiates brought forward by
the City Manager will start being actioned and implemented in 2020. The 2020
budget being proposed must be considered as a transitional budget as these
sustainability items and barriers are dealt with in 2020.
Transitional Budget
The 2020 budget is considered a transitional budget. The main focus for Council
and City staff will be to close the structural deficit gap for the 2021 budget which
2
is estimated at $9 million. The City must have a balanced budget in 2021. In
order to deal with this deficit, the 2020 budget must allow the flexibility to get
barriers removed and implement a number of sustainability issues.
However, the timing, cost and resources needed to do all these action items
makes it very difficult to predict with any degree of accuracy the timing and
amount of these adjustments. Any cost adjustments that takes place in 2020 will
not affect the tax rate set by Council. Adjustments made in 2020 will impact the
Provincial funding envelope.
One of the major barriers being addressed in 2020 will be the escalation of
wages and benefits. Council has already adopted a wage escalation policy
setting wage escalation at no more than 1.36% in 2020. Workforce adjustments
will also take place in 2020 that will close the gap on the deficit. Collective
bargaining is currently underway that will address flexibility in the workforce.
Other barriers such as high debt and large infrastructure deficit are also being
addressed with more funding for Capital reserves and pay as you go. This will
lower borrowing and fund more capital to address the deficit.
"Sustaining Saint John, A Three Part Plan", is also underway that may yield
results for the 2020 operating year. Saint John Transit Service Review, Review of
Agencies, Boards and Commissions, One Economic Development Model in 2020,
Organizational Redesign, and Valuation of Saint John Energy Growth are all items
planned for 2020 as well as a Provincial Operational Audit of the City.
There are several Provincial reforms that are pending which will also impact the
2020 budget. Reforms such as binding arbitration, regional facilities cost sharing,
and transit property tax reform have been introduced or will be introduced in
the legislature.
Ramonimc
Tax base growth has exceeded the assumptions the City has been making of
1.5%. Assessment base grew by 1.83% and was split between residential growth
of 1.36% and non-residential growth of 2.56%. Overall the City still is not seeing
the growth in assessment base as other NB municipalities with Fredericton and
Moncton both having growth in excess of 4%.
The City's total revenue for 2020 will be $166,446,370 and includes the estimate
LNG property tax and overall revenue is 3.18% more than 2019. The three main
factors for the increase are due to;
1. Assessment growth - $2.3M
2. Accommodation levy - $1.4M (Sustaining Saint John, Three Part Plan)
3. Short term financial assistance - $0.86M
,C]
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The City is budgeting $7,980,906 out of the $10,400,000 available in Financial
Assistance from the Province. The City has been fiscally managing the additional
funds the Province committed to the City over three years.
2018* $3,500,000 $3,316,473
2019** $8,900,000 $4,800,000
2020 $10,400,000 $7,980,906
Total $22,800,000 $16,097,379
*2018 City Funding is actual funding required
**2019 City Funding based on latest estimates
Expenditures
$183,527
$4,100,000
$2,419,094
$6,702,621
The City total overall expenditure for 2020 is $166,446,370 which is 3.18% more
than 2019. The main factors in the increase in expenses are;
1. Tourism — $900K (offset by Accommodation Levy)
2. Pay as you go - $1.3M
3. Increase in Roads - $1.OM
4. Transfer to Reserves - $2.59M
Wages and Benefits (including special pension payments is 0.52% more than the
2019 budget amount. This amount is within the Wage Escalation Policy which
sets wages increase at a maximum of 1.36% based on average growth for the
City over the last three years.
Other financial targets that the 2020 budget achieves is increasing pay as you go
by $1.3M, increasing contribution to capital reserves to $550K and the reduction
in debt by 2.5% in 2020.
The 2020 transitional budget expenditures are maintaining consistent services
levels as previous years. As the sustainability initiatives take place in 2020 there
may be unexpected expenses that occur, as well as savings due to timing of
initiative being implemented.
Major Corporate Initiatives
While the 2020 Operating budget is a transitional budget for the City that will
involve transformational changes in the way the City provide services, deals with
barriers and continues to work with the Province on the Three Part Plan, there
will still be several corporate initiatives undertaken in 2020.
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These planned initiatives are as follows:
• Sustainability Plan/Continuous Improvement Initiatives
• Implementation of Economic Development Realignment
• Action the Road Map and Population Frameworks: Succeed & Stay,
Local Immigration Partnership
• Adoption and Implementation of Central Peninsula Neighbourhood
Plan/Heritage Bylaw
• Continued of enhanced Dangerous building and Community
Standards programs
• Changes to Fire By-law to increase fees
• Labour Relations, Including Collective Bargaining
• Cybersecurity
• Implementation of City's first Long Term Financial Plan
• Asset Management System Development
• ERP System Readiness Assessment
• New City Hall and City Market Tower(Physical and Virtual — Including
City's New Website)
• Business continuity initiative
• Maintain funding Urban Development Incentives for Central
Peninsula, Heritage & Arts Grant Programs
Conclusion
The 2020 General Fund Operating Budget will be year of major transformational
change for the Citizens of Saint John is the way service will be delivered.
Common Council has taken a number of steps to ensure the City will be financial
sustainable in the future. Council has passed and adopted a number of financial
policies, such as wage escalation, operating budget, debt management policies
to steer the City toward being sustainable, flexible and being less vulnerable.
Council has endorsed the "Three Part Plan" that involves 20 action items that will
guide the City towards sustainability. Action items have already been built into
the 2020 budget such as the accommodation levy and the adjustment to
property taxes on Saint John Transit building. Actions have been introduced in
the NB legislature and the City staff has brought forward a large number on
financial sustainability initiative to be implemented.
The 2020 General Fund Operating Budget is a transitional budget the will allow
the City the time to be able to have a balanced 2021 budget and will be the start
of long term financially sustainable City of Saint John.
SERVICE AND FINANCIAL OUTCOMES
See enclosed 2020 General Fund Operating Budget
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-6 -
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input has been received from all Service Areas, the ABCs, Senior Leadership
Team and members of the Finance Committee.
ATTACHMENTS
Appendix "A" — 2020 General Fund Operating Budget
C.
The City of Saint John
2020 GENERAL OPERATING BUDGET
City of Saint John
2020 Budget
2019 2020 2020
Approved Draft 2020 Proposed
Budget Budget Adjustments Budget
REVENUES
Property taxes
123,577,054
127,966,924
- 127,966,924
P I LT Adjustment
3,826
1,185
- 1,185
Equalization & Unconditional Grant
17,353,344
16,131,081
- 16,131,081
Financial Assistance
7,117,402
8,362,780
(381,874) 7,980,906
Surplus 2nd previous year
86,557
-
- -
Growth & Community Development Services
2,507,734
2,866,652
1,400,000 4,266,652
Public Safety Services
1,695,896
1,975,300
- 1,975,300
Transportation & Environment Services
4,060,970
4,112,054
- 4,112,054
Finance & Administrative Services
3,743,000
3,999,768
- 3,999,768
Corporate Services
112,000
12,500
- 12,500
TOTAL REVENUES 160,257,783 165,428,244 1,018,126 166,446,370
EXPENDITURES
Growth & Community Development Services
Growth & Community Planning Services
Growth & Community Planning Services
1,788,905
2,024,522 -
2,024,522
One Stop Development Shop Services
475,000
475,000
- 475,000
Heritage Conservation
190,936
194,358 -
194,358
Permitting & Inpection Service & By -Law
1,033,495
528,806
1,400,000 1,928,806
Compliance
2,149,294
2,343,447 -
2,343,447
Infrastructure Development
541,256
617,350 -
617,350
4,670,391 5,179,677 - 5,179,677
Economic Development Service
Economic development agencies
Growth Reserve Fund
350,000
350,000
- 350,000
Regional Economic Development (Enterprise)
475,000
475,000
- 475,000
Develop Saint John
821,002
838,727
- 838,727
Tourism
1,033,495
528,806
1,400,000 1,928,806
2,679,497 2,192,533 1,400,000 3,592,533
Saint John Trade and Convention Centre 625,570 586,193 - 586,193
Harbour Station 588,525 602,519 - 602,519
Urban Development Service
Market Square - Common Area
Arts & Culture
Cultural Affairs
3,893,592 3,381,245 1,400,000 4,781,245
2,182,993 2,488,248 - 2,488,248
7
108,347 124,110 - 124,110
1
The City of Saint John
2020 GENERAL OPERATING BUDGET
City of Saint John
2019
2020
2020
Fire Rescue and Suppression Service
Approved
Draft 2020
Proposed
2020 Budget
Budget
Budget Adjustments
Budget
Imperial Theatre
360,205
367,285 -
367,285
Saint John Arts Centre
84,125
139,471 -
139,471
Arts & Culture Board
70,000
70,000 -
70,000
Public Art - Mainenance and Repair
10,000
16,000 -
16,000
Acadian Games
19,750
17,750 -
17,750
Remembrance Day Ceremonies
1,500
1,500 -
1,500
New Year/Canada Day Celebrations
15,000
15,000 -
15,000
668,927 751,116 - 751,116
Total Growth & Community Development Services 11,415,903 11,800,286 1,400,000 13,200,286
Public Safety Services
1,893,286
2,292,511
2,240,057
Fire Rescue and Suppression Service
24,601,149
24,854,419 -
24,854,419
Water Supply and Hydrants
2,600,000
2,500,000 -
2,500,000
Emergency Management Service
333,939
345,029 -
345,029
Police Services
26,058,539
26,058,700 -
26,058,700
Public Safety Communications
2,497,099
2,579,791 -
2,579,791
Street Lighting
971,000
999,159 -
999,159
Total Public Safety Service 57,061,726 57,337,098 - 57,337,098
Transportation & Environment Service
1,893,286
2,292,511
2,240,057
Roadway Maintenance Service
3,642,010
3,722,606
3,779,398
Snow Control Streets
5,781,383
5,698,383 -
5,698,383
Street Cleaning
1,670,601
1,555,683 -
1,555,683
Utility Cuts
739,079
727,403 -
727,403
Street Services - Surface Maintenance
6,122,629
7,120,178 -
7,120,178
14,313,692 15,101,647 - 15,101,647
Sidewalk Maintenance Service
Snow Control Sidewalk 1,102,170 1,100,809 - 1,100,809
Sidewalk Maintenance 705,582 792,477 - 792,477
Pedestrian & Traffic Management Service
Stormwater Management
Solid Waste Management
Engineering
Parks S City Landscape
Parks Maintenance
Lifeguards
1,807,752
1,893,286
2,292,511
2,240,057
3,570,934
3,642,010
3,722,606
3,779,398
553,918
568,564
2,769,754 2,880,126
173,400 181,000
�:3
1,893,286
2,240,057
3,642,010
3,779,398
568.564
2,880.126
181,000
2
The City of Saint John
2020 GENERAL OPERATING BUDGET
City of Saint John
2020 Budget
2019 2020 2020
Approved Draft 2020 Proposed
Budget Budget Adjustments Budget
Urban Forestry
309,178
313,065 -
313,065
Mispec
5,000
5,000 -
5,000
Saint John Horticultural Association
40,000
40,000 -
40,000
3,297,332 3,419,191 - 3,419,191
Sports & Recreation Facilities Service
Arena Operation and Maintenance
1,661,801
1,566,956 -
1,566,956
Sportsfield Operation and Maintenance
1,429,986
1,412,622 -
1,412,622
Other Facility Operation and Maintenance
437,476
448,672 -
448,672
Minor Hockey Subsidy
173,000
- -
-
Lord Beaverbrook Rink
159,382
159,470 -
159,470
Aquatic Centre
541,837
625,821 -
625,821
4,403,482 4,213,541 - 4,213,541
Neighbourhood Improvement
Community Development
453,028
449,000 -
449,000
Neighbourhood Development
152,000
152,000 -
152,000
Loch Lomond Community Centre
45,000
45,000 -
45,000
PRO Kids
122,371
124,049 -
124,049
772,399 770,049 - 770,049
Community Development Service Grants
Community Grant Program 179,721 179,721 - 179,721
Library 497,000 497,892 - 497,892
676,721 677,613 - 677,613
Recreation, Parks and Cultural Programming
Recreation Programming
653,331
663,266 -
663,266
Contracted Service - Boys and Girls Club
135,844
137,882 -
137,882
Contracted Service - YMCA-FGCCIMCC
133,623
135,627 -
135,627
Contracted Service - North End Community Centre
164,614
167,083 -
167,083
P1aySJ Recreation Programming Grant
15,000
15,000 -
15,000
1,102,412 1,118,858 - 1,118,858
Parking Service (Administration Support) 617,565 616,756 - 616,756
Transit Service 7,977,405 8,243,687 311,874 7,931,813
Total Trans ortation & Environment Service 45,108,729 46,284,657 (311,874) 45,972,783
Finance and Administrative Services
Financial Management Service
9
3
The City of Saint John
2020 GENERAL OPERATING BUDGET
City of Saint John
2020 Budget
2019 2020 2020
Approved Draft 2020 Proposed
Budget Budget Adjustments Budget
Finance 1,748,875 1,701,110 (70,000) 1,631,110
Assessment 1,343,078 1,391,163 - 1,391,163
3,091,953 3,092,273 (70,000) 3,022,273
Asset Management
744,508
767,197 -
767,197
Purchasing & Materials Management
1,113,424
1,206,014 -
1,206,014
Insurance Service
203,081
171,500 -
171,500
Liability Insurance
304,000
360,000 -
360,000
Facilities Management
1,436,427
1,472,735 -
1,472,735
City Market
986,126
1,012,480 -
1,012,480
Carpenter Shop
357,107
324,236 -
324,236
City Hall Building
1,225,384
1,225,211 -
1,225,211
Real Estate
268,384
273,690 -
273,690
5,893 933 6,045,866 - 6,045,866
Total Finance and Administrative Services 8,985,886 9,138,139 70,000 9,068 139
Corporate Services
744,508
767,197 -
767,197
City Manager
680,822
796,962 -
796,962
Legal Department
804,192
788,311 -
788,311
Common Clerk
583,705
596,876 -
596,876
Human Resources
1,520,515
1,555,425 -
1,555,425
Strategy, Continuous Improvement & Performance
-
119,915 -
119,915
Reporting
607,996
499,822 -
499,822
Corporate Communications
445,602
568,988 -
568,988
Information Technology
2,512,414
2,963,753 -
2,963,753
Geographic Information Systems
380,821
414,164 -
414,164
Regional Services Commission
37,474
20,000 -
20,000
Mayor & Council
Mayor's Office
210,318
218,130 -
218,130
Council
534,190
549,067 -
549,067
10
744,508
767,197 -
767,197
Total Corporate Services
8,318,049
8,971,498 -
8,971,498
Other Charges
Fiscal Charges
16,917,647
16,650,078 -
16,650,078
Long Term Disability
845,692
661,573 -
661,573
Deficit 2nd previous year
-
119,915 -
119,915
Pension
9,574,000
9,575,000 -
9,575,000
Capital from Operating
730,151
2,000,000 -
2,000,000
10
The City of Saint John
2020 GENERAL OPERATING BUDGET
City of Saint John
2020 Budget
2019 2020 2020
Approved Draft 2020 Proposed
Budget Budget Adjustments Budget
Capital Reserve 500,000 550,000 - 550,000
Restructuring Reserve 300,000 2,040,000 - 2,040,000
Landfill Closure 300,000 300,000 - 300,000
Others 200,000 - - -
Total Other Charges 29,367,490 31,896,566 - 31,896,566
TOTAL EXPENDITURES 160257,783 165,428,244 1,018,126 166,446,370
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�-i N M MAIN=H
COMMON COUNCIL REPORT
M&C No.
2019-318
Report Date
November 27, 2019
Meeting Date
December 02, 2019
Service Area
Saint John Water
His Worship Mayor Don Darling and Members of Common Council
SUBJECT. Council Report 2020 Utility Fund Operating Budget 201911 27.docx
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept.
City Manager
Recommended by
Head
Craig Lavigne
Brent McGovern
John Collin
Finance Committee
Councillor Merrithew
Finance Chair
RECOMMENDATION
The Finance Committee recommends that Common Council approve the 2020
Utility Fund Operating Budget and proceed with first and second reading of the
amendment to the Water and Sewerage By -Law, By -Law No. M-16.
The following resolutions are in order provided Council is supportive of the
recommended attached budget.
It is recommended that Common Council:
1. RESOLVE that the estimated revenue for the Water and Sewerage Utility
for the year 2020 in the amount of $48,702,000 be adopted (Appendix
"All);
2. RESOLVE that the estimate of expenses for the Water and Sewerage
Utility for the year 2020 in the amount of $48,702,000 be approved
(Appendix "A"); and
3. Give first and second reading to the two Amendments to the Water &
Sewerage By -Law attached to M&C No. 2019-318 (Appendix "B" and "C).
34
-2 -
EXECUTIVE SUMMARY
The 2020 Utility Fund Operating Budget is based upon the new rate structures
for both potable and industrial users. A complete rate review of the Utility (as
presented to Council November 18, 2019) was undertaken by the consulting firm,
Hemson, and was based on how the Utility now provides different services to
potable and industrial users due to the separation of potable and raw water
between the different classes of users.
There have been considerable pressures on the ratepayers and the Utility over the
last 10-15 years due to transformational projects (Harbour Clean-up and Safe
Clean Drinking Water). Flat rates have consistently risen by $72 per year over a
number of years and last year the rate increase was reduced to $60 as a result of
numerous expenditure reductions that were implemented and revenue increases
that were realized due to by-law changes.
The Utility is proposing to keep the flat rate for water and sewer customers at
$1,428 per year for customers in 2020, which represents no increase from 2019
rates. Increases for customers will vary depending on whether they are water only
or sewer only customers. Rates for water only have gone up significantly due to
the investments in the Safe, Clean Drinking Water Project, while sewer costs have
gone down significantly as a percentage of water cost. Sewerage costs will now be
80.35% of the water cost, compared to 122% of water cost in the past.
Industrial rates have been set based on the use of raw water, cost of providing the
service and the management and replacement of industrial water assets.
PREVIOUS RESOLUTION
At the November 20, 2019 meeting of Finance Committee it is was recommended
that the Finance Committee approve the 2020 Utility Fund Operating Budget and
submit to Common Council for the December 2nd meeting for approval along with
first and second reading to the amendment to the Water and Sewerage By -Law,
By -Law No. M-16.
At November 18, 2019 meeting of Council it was RESOLVED:
That referring to the submitted report M&C 2019-290: Water & Sewer
Rate Study, Common Council:
1. Endorse the attached Water & Sewer Rate Study for 2020;
2. Support removing the third consumption tier from the rate
structure given no water consumption has been billed to Tier 3
since 2008; and
3. Direct staff to communicate the results of the of the rate changes
to water only and sewer only customers given they will see a
change in their 2020 billing.
35
-3 -
And that referring to the submitted report M&C 2019-289: East and West
Industrial Raw Water Rate Reports, Common Council:
1. Endorse the East Saint John Industrial Raw Water Rate Report
and the West Saint John Industrial Raw Water Rate Report; and
2. Support the approach of setting all industrial raw water users
rates via by-law.
STRATEGIC ALIGNMENT
The proposed 2020 Utility Fund Operating Budget is aligned with Council's
priorities in taking a strategic approach to financial management of the Utility by
continuing to contribute capital funding from operating, finding other revenue
sources, improving the allocation of costs among ratepayers and continuing to
find efficiencies and savings through continuous improvement initiatives.
REPORT
The proposed 2020 Utility Fund Operating Budget has been prepared using the
new potable and industrial rates established by the City's external consultants,
Hemson Consulting Ltd. as a foundation. The potable water numbers have
changed slightly since the presentation on November 18, 2019 as the budget is
now finalized and the industrial numbers have also changed slightly given the
approach to the collection of the rate stabilization fund reserve monies has
changed from a volumetric based collection to a fixed rate collection. The bottom
line revenue collection however remains the same as presented on November 18,
2019 and the revenue from the industrial and potable water customers remains
the same. The appropriate costs per user group are established so that the
corresponding revenue can be collected.
Revenue
Overall revenue for 2020 has been budgeted at $48,702,000 (2019- $48,286,000).
The flat rate being proposed remains at $1,428 per year therefore no increase for
ratepayers. The allocation of sewer charges as a percentage has changed
significantly as a result of the rate study. Sewer charges will now be 80.35% of a
water charge versus 122% in the past. Flat rate customers (166) that are water
only will see and significant increase, where flat rate sewer only customers (146)
will see a significant decrease. The main reason for the shift is related to the
additional cost of providing safe, clean drinking water.
Customers on a meter will see a negligible adjustment in their bill if consumption
is the same amount in 2020 versus 2019. Meter water only customers (106) will
see a large increase in there water bills as the cost of water has risen, where sewer
only customers will see a significant reduction (3).
Industrial revenue is budgeted at $5,548,000 which will cover the cost of providing
raw water, contributions to asset replacement, rate stabilization reserve and
36
-4 -
previous debt associated with the system prior to the switch over to a raw water
only system.
The balance of revenue includes the fire protection levy, storm sewer levy,
interest revenue, other revenue and prior year surplus which is much less than
previous years.
Expenditures
Overall expenditures for 2020 have been budgeted at $48,702,000 (2019-
$48,286,000). Based on the recent rate study and to ensure proper allocation of
expenses, all debt, internal charges, capital from operating, post -employment
benefits and other charges will be allocated across the three cost centres which
are; Potable Water, Industrial Water and Wastewater Treatment in accordance
with the cost of service.
Saint John Water has continued to reduce staffing levels through 2019 (decreased
by 6 FTEs) as the Safe, Clean Drinking Water Project has ramped down and is
approaching final completion. Saint John Water has several budget initiatives that
are planned to be undertaken in 2020. Improvements to safety and security are
planned by making workplace improvements at various underground vaults and
chambers and improving fencing, security and access at various water and
wastewater facilities.
There is key replacement of electronic equipment at 30 water and 32 wastewater
facilities as well as replacement of eight key communications links to and from
various water and wastewater facilities. As well, the replacement of 133
communication radios will be completed. All of this work is necessary for the
Utility to monitor activity at its water and wastewater facilities while also ensuring
service reliability and efficient use of equipment.
Cleaning, inspection and maintenance on two water storage reservoirs, along with
repainting 800 out of the 2,100 fire hydrants in inventory will be achieved in 2020.
Other initiatives include; key watermain transmission interconnection for further
drinking water system reliability, inspection of dams and protecting the
environment through the addition of containment at a facility.
Under wastewater there is planned dredging of cell one and two at the Lancaster
Lagoon for improved operational efficiencies, concrete maintenance and
upgrades at the Easter Wastewater Treatment Facility and the continuation of the
newly established video inspection and flushing program.
These are just some of the expenditures the Utility is planning to undertake in
2020 to increase water and wastewater system reliability, efficiency, and
effectiveness and to ensure the ratepayer's needs are being met.
Conclusion
The rate freeze for 2020 is a positive note for ratepayers after several years of
increases. The rate studies for potable and industrial rate payers have now been
37
-5 -
presented and this will lay the foundation for long-term planning of the Utility that
will undertaken in 2020.
The Utility will continue to focus on continuous improvement, finding efficiencies,
and process to improvements in 2020, as well as debt management, leveraging of
funds from other levels of Government and pay as you go for all capital
expenditures. This focus will continue to guide some of the financial decisions as
the Utility deals with a very large infrastructure deficit and ongoing pressures of
rate increases and expenditure increases over the next several years.
SERVICE AND FINANCIAL OUTCOMES
See enclosed 2020 Utility Fund Operating Budget
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input has been received from the various Service Areas, Senior Leadership Team
and members of the Finance Committee.
ATTACHMENTS
Appendix A - 2020 Utility Fund Capital Budget
Appendix B — Amendment to Water and Sewerage By -Law related to Schedules
"A", "B" and "C" to the By -Law
Appendix C — Amendment to Water and Sewerage By-law related to industrial
rates
Presentation
38
39
BY-LAW NUMBER M-16
A BY-LAW TO AMEND A BY-LAW
RESPECTING WATER AND SEWERAGE
ARRETE No M-16
ARRETE MODIFIANT L'ARRETf
CONCERNANT LE RESEAU D'EAU ET
D' f GOUTS
Be it enacted by the Common Council of Le conseil communal de The City of
the City of Saint John as follows: Saint John decrate cc qui suit :
A by-law of the City of Saint John entitled Par les presentes, Parr&& de The City of
"A By-law Respecting Water and Sewerage" Saint John intitule « Air&6 conceinant les reseaux
enacted on the 7' day of June, A.D. 2004, is hereby d'eau et d'egouts», edicte le 7 juin 2004, est modifie
amended as follows: comme suit::
1 Schedules "A" and "B" are repealed and the
following are substituted:
SCHEDULE"A"
Effective January 1st, 2020
Flat rate customers
Flat rate customers Yearly $791.80
Water charge
SCHEDULE`B"
Effective January 1st, 2020
METERED CUSTOMERS -WATER
SERVICE CHARGE
Meter Size
Yearly ($)
Monthly ($)
Bi -Monthly($)
15mm
267.54
22.30
44.59
20mm
327.48
27.29
54.58
25mm
447.22
37.27
74.54
40mm
588.04
49.00
98.01
50mm
1,173.10
97.76
195.52
75mm
2,437.74
203.15
406.29
100mm
4,239.36
353.28
706.56
150mm
6,662.56
555.21
1,110.43
200mm
9,573.48
797.79
1,595.58
250mm &
up
12,965.90
1080.49
2,160.98
METERED CUSTOMERS - CONSUMPTION CHARGE
Monthly (by m3) Bi -Monthly (by m3)
Consumption
(in')
Rate Consumption
($/m,) (in')
Rate
($/m,)
For the first 50
1.9944 For the first 100
1.9944
For all in excess
of 125.000
1.2700 For all in excess
of 250.000
1.2700
SCHEDULE"C"
Effective January 1st, 2020
Sanitary sewer surcharge
The charge for sanitary sewer charges is calculated
as 80.35% of the customer's bill for water services
(including both consumption and service charges)
IN WITNESS WHEREOF The City of Saint John
has caused the Common Seal of the said City to be
affixed to this by-law the day of, A.D. 2019 and
signed by:
it
1 Les annexes «A» et «B» sont abrogees et
sont remplacees par celles qui figurent aux
presentes.
ANNEXE«A»
En vigueur le I" janvier 2020
Tarif forfaitaire pour les clients
Tarif forfaitaire pour
Tarif
791.80$
les clients
annuel
15mm
Redevancesur l'eau
22.30
44.59
ANNEXE«B»
En vigueur le I" janvier 2020
CLIENTS AVEC COMPTEUR-TARIF
DES SERVICES D'EAU
Dimension du
com teur
Tarif
annuel $
Tarif
mensuel $
Tari
bimensuel $
15mm
267.54
22.30
44.59
20mm
327.48
27.29
54.58
25mm
447.22
37.27
74.54
40mm
588.04
49.00
98.01
50mm
1,173.10
97.76
195.52
75mm
2,437.74
203.15
406.29
100mm
4,239.36
353.28
706.56
150mm 1
6,662.56
555.21
1,110.43
200mm
9,573.48
797.79
1,595.58
250mm et
plus
12,965.90
1,080.49
2,160.98
CLIENTS AVEC COMPTEUR - FRAIS DE CONSOMMATION
Mensuels (par m3) Bimestriels (par m3)
Consommation
Frais Consommation
Frais
(M)
($/m3) (M)
($/M3)
Pour les 50
1,9944 Pour les 100
1,9944
premiers
prenuers
Pour toute
12700 Pour toute
12700
consommation
consommation
au -dela de
au -dela de
125 000
250 000
ANNEXE«C»
En vigueur le I" janvier 2020
Surtaxe d'egouts sanitaires
Les droits afferents aux egouts sanitaires
s'etablissent a 80.35% de la taxe d'eau de 1'abonne
(frais de service et redevance de consommation
compris).
EN FOI DE QUOI, The City of Saint John a fait
apposer son sceau communal sur le present arr&6 le
2019, avec les signatures suivantes :
Mayor/maire
Common Clerk/Crreffiere communale
First Reading Premiere lecture
Second Reading Deuxiame lecture
Third Reading Troisieme lecture
M
Appendix C
42
BY-LAW NO. M-16
A LAW TO AMEND A BY-LAW
RESPECTING WATER AND SEWERAGE
ARRETE NO M-16
ARRETE MODIFIANT L'ARRETE
CONCERNANT LE RESEAU WEAU ET
D'EGOUTS
Be it enacted by the Common Council of Lors d'une reunion du conseil municipal,
The City of Saint John as follows: The City of Saint John a decrete cc qui suit:
A By-law of The City of Saint John
entitled "A By-law Respecting Water and
Sewerage", enacted on the 7' day of June, A.D.
2004, is hereby amended as follows:
1. Section 43 is amended by adding the
following immediately after subsection 43(2):
"43(2.1) The owners of property listed at
Schedule "E" which receive raw water for
industrial purposes shall pay the charges set out
at Schedule "E" for each such owner."
2. Section 44 is amended by adding the following
subsection 44(1)(c) immediately following
subsection 44(1)(b):
"44(1)(c) Bills shall be rendered to each customer
paying rates as contained at Schedule "E" bi-
monthly."
Par les presentes, 1'arrete de The City of
Saint John intitule « Arrete concernant les reseaux
d'eau et d'egouts », decrete le 7 juin 2004, est
modifie comme suit:
1. L'article 43 est modifie par 1'adjonction du
paragraphe suivant immediatement apres le
paragraphe 43(2):
"43(2.1) Les proprietaires enumeres a 1'annexe "E"
qui recoivent les services d'approvisionnement en
eau brute pour des fins industrielles doivent payer
les tariffs forfetaires enonces a 1'annexe "E" pour
chacun des ces proprietaires. "
2. L'article 44 est modifie par 1'adjonction de
1'alin6a 44(1)(c) suivant immediatement apr&s
1'alinea 44(1)(b):
"44(1)() Les comptes sont envoyes a tous les
abonnes taxes en fonction de 1'annexe « E»
bimensuellement."
3. Schedule "E" attached hereto is added to the by- 3. L'annexe « E » ci-jointe est ajoutee a 1'arrete
law immediately following Schedule "D". immediatement apres 1'annexe "D".
43
IN WITNESS WHEREOF The City of Saint John EN FOI DE QUOI, The City of Saint John a fait
has caused the Corporate Common Seal of the said apposer son sceau municipal sur le present arrete
City to be affixed to this by-law the day le 2019, avec les signatures
of , A.D. 2019 signed by: suivantes :
Mayor /Maire
Common Clerk/greffier communal
First Reading - Premiere lecture
Second Reading - Deuxieme lecture
Third Reading - Troisieme lecture
Schedule « E »
Raw Industrial Water Customers and Rates
Raw Water
Infrastructure
Rate per
Rate
Customer
Cubic
Stabilizing
Metre $
Reserve
Bi -
Monthly($)
1. New
This user draws its industrial raw water
0.2492
1,528.39
Brunswick
through a 1500mm diameter concrete
Power
intake pipe running from Ludgate Lake
across Route 1 to the Coleson Cove Screen
Building located at coordinates N
7355170.56 and E 2522389.97 just off of
Route 1. Once through the screen building
water passes through approximately
5,OOOm of 600mm diameter transmission
main to ultimately make its way to the
Coleson Cove generating station located
at 4077 King William Road.
2. Irving Pulp
This user draws its industrial raw water
0.0672
44,101.34
and Paper
through a 1800mm diameter intake pipe
Limited
and approximately 330m of 1800mm
diameter concrete pressure pipe originating
from Spruce Lake leading to the Spruce
Lake Screen building. The screen building
is located at coordinates N 7357823.16 and
E 2525290.60 and is just to the right of the
eastern shore of Spruce Lake. Once
through the screen building water passes
through the Spruce Lake Transmission
main to ultimately make its way to the
Irving Pulp and Paper Mill located at 408
Mill Road. The Spruce Lake transmission
main consists of approximately 7,500mof
1500mm diameter concrete pressure pipe
owned by City of Saint John and
approximately 1,OOOm of 1370mm
diameter concrete pressure pipe owned by
IPP.
3. Irving Paper
This user draws its industrial raw water
0.0445
1,809.22
Inc.
through a 1200mm diameter intake pipe
originating from Latimer Lake leading to
the Latimer Lake control valve chamber.
Once through the control valve chamber,
water passes through approximately 275m
45
Notes:
a) At between approximately 3 to 5 year intervals, the city will undertake
industrial raw water rate studies for purposes of reassessing rates and rate
structures.
b) Rate Stabilizing Reserve will be reviewed annually as part of the yearly rate
setting exercise with the intent of holding approximately 7 months of
operating costs in the rate stabilizing reserve at any given time.
EN
of 1500mm diameter reinforced concrete
pipe to ultimately discharge into Eldersley
brook. Eldersley Brook recharges the
Silver Falls watershed. Irving Paper has a
private intake, screen and chlorination
building located at Silver falls. From there
the water eventually makes its way to
Irving Paper located at 435 Bayside Drive.
4. Irving Oil
Multiple raw water transmission mains
0.2637
20,100.93
Limited
deliver raw water from Latimer Lake to
other transmission piping near the
Lakewood Heights pump station for use by
potable and industrial users. Irving Oil
Limited draws its industrial raw water from
two separate connections to the above
mentioned transmission mains prior to their
connection to the Loch Lomond Drinking
Water Treatment Facility.
The first raw water connection to the
transmission system near the Lakewood
Heights Pumping Station delivers raw
water to a chamber located at Champlain
Heights through approximately 2,500m of
600mm HDPE relined cast iron raw water
transmission main to ultimately make its
way to the Irving Oil Refinery located at
340 Loch Lomond Road. The second
connection to the above transmission
systems is a 600mm PVC Raw water
transmission main, approximately 3,000m
delivers raw water along Hickey Road to a
chamber located at Champlain Heights.
From there raw water is delivered through
approximately 450m of 500mm raw water
transmission main along Commerce Drive
to ultimately make its way to the Irving Oil
Refinery located at 340 Loch Lomond
Road.
Notes:
a) At between approximately 3 to 5 year intervals, the city will undertake
industrial raw water rate studies for purposes of reassessing rates and rate
structures.
b) Rate Stabilizing Reserve will be reviewed annually as part of the yearly rate
setting exercise with the intent of holding approximately 7 months of
operating costs in the rate stabilizing reserve at any given time.
EN
Annexe « E »
Clients et tarifs de 1' eau industrielle brute
Client Wean
Infrastructure
Taux an
La reserve de
brute
metre cube
stabilisation
$
des tarifs
Tari
bimensuel($)
1. Energie
Cet utilisateur puise son can brute industrielle
0,2492
1,528.39
Nouveau-
dans un tuyau de prise d'eau en beton de
Brunswick
1 500 mm de diametre qui, traversant la route 1,
va du lac Ludgate an batiment de degrillage de
Coleson Cove situ& aux coordonn&es
N 7355170.56 et E 2522389.97, a proximit& de
la route 1. Une fois sortie du batiment de
degrillage, Peau circule dans environ 5 000 in
de conduite principale de 600 mm de diametre
pour finalement se rendre a la centrale de
Coleson Cove, situ&e an 4077, Chemin King
William.
2. Irving
Cet utilisateur puise son can brute industrielle
0,0672
44,101.34
Pulp and
dans un tuyau de prise d'eau de 1 800 mm de
Paper
diametre vers un tuyau sous pression en b&ton
Limited
de 1 800 mm de diametre d'une longueur de
330 in environ provenant du lac Spruce et
menant au batiment de d&grillage du lac Spruce.
Le batiment de d&grillage est situ& aux
coordonn&es N 7357823.16 et E 2525290.60,
juste a droite de la rive est du lac Spruce. Une
fois sortie du batiment de degrillage, Peau passe
par la conduite principale du r&seau de transport
du lac Spruce pour finalement se rendre a
l'usine de pates et papiers Irving situ&e au 408,
Chemin Mill. La conduite principale de
transport du lac Spruce est compos&e d'environ
7 500 in de conduite sous pression en b&ton de
1 500 mm de diametre appartenant a la ville de
Saint John et d'environ 1 000 in de conduite
sous pression en b&ton de 1 370 mm de
diametre appartenant a IPP.
3. Irving
Cet utilisateur puise son can brute industrielle
0,0445
1,809.22
Paper Inc.
dans un tuyau de prise d'eau de 1200 mm de
diametre provenant du lac Latimer et menant a
la chambre de vannes de regulation du lac
Latimer. Une fois sortie de la chambre de
vannes de regulation, Peau circule dans environ
275 in de tuyau en b&ton arm& de 1 500 mm de
47
Notes :
a) Tons les trois a cinq ans environ, la Ville entreprend des etudes sur les tarifs
de 1'eau brute industrielle afin de reevaluer les tarifs et les structures
tarifaires.
b) La reserve de stabilisation des tarifs fait l'objet d'un examen annuel dans le
cadre de 1'exercice annuel d'etablissement des tarifs, l'intention etant de
conserver environ sept mois de frais d'exploitation dans la reserve de
stabilisation des tarifs en tout temps.
ER
diambtre pour finalement s'6couler dans le
ruisseau Eldersley. Le ruisseau Eldersley
recharge le bassin versant de Silver Falls. Irving
Paper poss&de un batiment priv& de prise d'eau,
de d&grillage et de chloration situ& a Silver
Falls. De la, Peau se rend 6ventuellement a
l'usine d'Irving Paper, situ6e au 435 promenade
Bayside.
4. Irving Oil
De multiples conduites principales de transport
0,2637
20,100.93
Limited
d'eau brute acheminent 1'eau brute du lac
Latimer a d'autres conduites de transport
situ&es pr&s de la station de pompage de
Lakewood Heights pour etre utilis&es par des
utilisateurs d'eau potable et industrielle. Irving
Oil Limited tire son eau brute industrielle de
deux raccordements distincts aux conduites de
transport susmentionn&es avant leur
raccordement a l'usine de traitement de 1'eau
potable de Loch Lomond.
Le premier raccordement d'eau brute au r6seau
de transport pres de la station de pompage de
Lakewood Heights achemine 1'eau brute a une
chambre situ&e a Champlain Heights par
l'interm6diaire d'environ 2 500 in de conduite
de 600 mm en fonte revetue de PEHD pour
finalement se rendre a la raffinerie Irving Oil
situ&e au 340 Chemin Loch Lomond. Le
deuxi&me raccordement aux syst&mes de
transport ci-dessus est une conduite d'eau brute
en PVC de 600 mm, d'une longueur d'environ
3 000 in, qui achemine 1'eau brute le long du
Chemin Hickey vers une Chambre situ&e a
Champlain Heights. De la, Peau brute est
achemin&e par une conduite principale de
transport d'environ 450 in d'un diam6tre de
500 mm le long de la promenade Commerce
jusqu'a la raffinerie Irving Oil situ6e au 340,
Chemin Loch Lomond.
Notes :
a) Tons les trois a cinq ans environ, la Ville entreprend des etudes sur les tarifs
de 1'eau brute industrielle afin de reevaluer les tarifs et les structures
tarifaires.
b) La reserve de stabilisation des tarifs fait l'objet d'un examen annuel dans le
cadre de 1'exercice annuel d'etablissement des tarifs, l'intention etant de
conserver environ sept mois de frais d'exploitation dans la reserve de
stabilisation des tarifs en tout temps.
ER
Is
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a
4-j
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0
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0
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APPENDIX "A"
2020 SAINT JOHN WATER OPERATING BUDGET
2020 Expenditures
Drinking Water
Watershed Management
Water Treatment
Water Pumping & Storage
Transmission & Distribution
Customer Metering
Internal Charges
Other Charges
Debt servicing
Capital from Operating
Industrial Water
Watershed Management
Water Pumping & Transmission
Customer Metering
Debt servicing
Transfer to Capital Reserve
Transfer to Operating Reserve
Capital from Operating
Wastewater
Wastewater Pumping
Wastewater Collection
WasteWater Treatment
Internal Charges
Other Charges
Debt servicing
Capital from Operating
Infrastructure Management
Municipal Engineering
Other Internal Charges
2019
Budget
202,000
260,000
10,035,000
8,404,000
1,222,000
1,312,000
4,976,000
4,919,000
714,000
763,000
455,000
700,000
4,397,000
3,724,000
615,000 608,000
1,835,000 1,710,000
133,000 124,000
1,654,000
818,000
405,000
229,000
3,086,000 3,027,000
3,158,000 3,209,000
4,810,000 4,947,000
455,000
700,000
3,513,000
1,547,000
820,000 822,000
905,000
Additional Post Employment Benefits 1,322,000
33,833,000 48,702,000
58
Fiscal Charges
Debt servicing
Capital from Operating
Total Fiscal Charges
Total Expenditures
9,753,000
4,700,000
14,453,000
48,286,000 48,702,000
2019
2020 Revenues Budget
Potable Water Revenue
22,673,000
Sewerage Treatement Revenue
15,744,000
Industrial Revenue
4,600,000
Fire Protection Levy
2,600,000
Storm Sewer Levy
940,000
Other revenues
748,000
Previous Year's Surplus
981,000
Total Revenues 48,286,000
Flat Rate - Water & Sewerage $1,428
4.39%
Meter Rates: /Cu.m.
Block 1 - First 100 $1.6123
Block 2 - Excess of 100 $1.0267
Block 3 - Eliminated for 2020 $0.3623
Consumption based on Bi -monthly billing
NOTE: Sewer Surcharge 80.35% of Water Charge
Industrial Raw Water Rates: /Cu.m.
East Industrial
Irving Oil $0.2637
Irving Paper $0.0445
West Industrial
Irving Pulp and Paper $0.0672
NB Power (Coleson Cove) $0.2492
59
22,100,000
16,150,000
5,548,000
2,500,000
950,000
968,000
486,000
48,702,000
$1,428
0.00%
$1.9944
$1.2700
COUNCIL REPORT
M&C No.
2019-337
Report Date
December 02, 2019
Meeting Date
December 04, 2019
Service Area
Transportation and
Environment Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Winter Street Maintenance — Sustainability Item
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Authors
Commissioner/Dept. HeadCity
Manager
Tom McGrath
Mike Hugenholtz/Jeff
Hussey
John Collin
RECOMMENDATION
The City Manager recommends that Common Council endorse the proposed Winter Street
Maintenance — Sustainability Item as an option to be considered in addressing the entirety of
the deficit in 2021 and 2022.
EXECUTIVE SUMMARY
The City of Saint John has a Winter Management Plan that outlines the service level standards
and associated resources for Winter Street Maintenance. Currently the operation relies on
various pieces of equipment including one tons, heavy trucks and other equipment. Most of
this equipment is owned, but some is leased seasonally when that is the cheaper option. This
equipment is also used during the summer season for construction -related activities.
Given the City's financial challenges, this report proposes a reduction in the amount of
equipment used for winter street maintenance. The total estimated annual savings is
approximately $347,000. By re -balancing operator shift schedules (more on night shift), the
overall impact on service delivery is minor over the typical winter storm response timeframe.
Because this equipment is used year-round, there will also be a modest reduction in
construction season service, particularly in the asphalt maintenance and stormwater service
areas.
W
-2 -
PREVIOUS RESOLUTIONS
On October 7, 2019, it was resolved by Council to receive and file M&C 2019-249:
'Sustainability: Addressing the Deficit 2021-2022'.
REPORT
The City of Saint John currently operates 51 pieces of equipment to meet our Winter Street
Maintenance plowing obligations. This mix of equipment includes:
• 1 -Ton Trucks • Tandem Axle Trucks
• %-Ton Trucks • Loaders
• Y2 -Ton Trucks • Graders
• 6 -Yard Single Axle Trucks
This equipment has capabilities ranging from only being able to plow, to a complete
combination vehicle that can plow, wing, and salt/sand. The City's winter serviced roadways
are split into 41 routes (13 East, 16 West, and 12 South/Central/North). In an attempt to
reduce our inventory of vehicles required to provide plowing services, a high-level analysis of
resource assignments was carried out. Some factors taken into consideration were equipment
utilization, plowing assignments, service objectives, equipment costs, and contractor costs. As
a result, we have identified a number of vehicles that can possibly be removed from the City's
Fleet inventory, thus creating savings which will aid in our Sustainability objectives.
Equipment:
Based on an analysis of current plowing assignments, it has been determined that the Service
could reduce its fleet by up to 12 pieces of equipment. The City's winter fleet consists of a
number of vehicles that are only capable of plowing; they are not equipped to spread salt/sand.
Because of this, other equipment with dual capabilities (plow and salt/sand) is required to
complete the salting/sanding task of those plow runs (i.e., two pieces of equipment on one
route). The analysis showed that dual -capability vehicles were often under utilized as plow
equipment and could assume the plowing assignments of the proposed liquidated equipment.
Shift Assignments:
Currently, there are 86 employees assigned to provide Winter Street Maintenance (not
including foremen or employees assigned to solid waste and sidewalk duties). Currently, day
61
-3 -
shift requires 62 employees and an additional 24 report for night shift. Existing task
assignments, based on this distribution, have resulted in a reduced nighttime capacity to
provide a citywide comprehensive snow plowing service. It also results in inefficiencies in our
daytime operations, as it relates to tasks assigned to equipment. Identifying these
inefficiencies, combined with the reduction in equipment, has provided the City with an
opportunity to balance the Winter Street Maintenance service over our day and night shift.
The new model for Winter Street Maintenance would see the day shift complement reduced to
allow for better utilization of equipment. There would also be a corresponding increase in night
shift assignments to increase night service levels across the City to priority 2 and 3 streets.
Night shift will see an increase of 11 plow operators and 1 foreman.
Priority 1, 2, and 3 streets would see a balanced service over a span of 16 hours (11pm to 4pm
next day). This model will also promote a reduction in early morning overtime expenditures.
On average, the city experiences 6 major snow storms per year that require an early 3am call-in
of staff to augment night shift plowing operations. Due to the proposed balanced model and
the increased night shift numbers, this requirement will essentially be eliminated.
STRATEGIC ALIGNMENT
The savings realized by the Winter Street Maintenance — Sustainability Item supports Council's
Priority to be Fiscally Responsible by contributing to the overall Sustainability effort.
SERVICE AND FINANCIAL OUTCOMES
All sustainability initiatives have been evaluated against criteria based on Council's Priorities
and ability to implement to address the deficit of 2021 and 2022. In addition to Feasibility,
criteria include Growth & Prosperity; Vibrant, Safe City; Valued Service Delivery; and Fiscally
Responsible (see Initiative Criteria Evaluation Appendix 1).
Service Impacts:
The proposed model of Winter Street Maintenance, resulting from a reduction of equipment,
will have a number of effects on services to our citizens. Daytime winter plowing service to
priority 1, 2, and 3 streets may experience a decrease in service during peak demand (i.e.,
periods of heavy snowfall and/or heavy traffic). However, the reduction of operators and
equipment during the day will better align services with stated objectives in the Winter
Management Plan. It will help to reduce over -servicing, as demonstrated earlier in the example
of requiring two pieces of equipment to complete winter maintenance to many streets within
our City. In addition, when evaluating future equipment purchases, staff will explore multi-
purpose vehicle options to allow for higher year-round utilization.
The new model will increase nighttime service to priority 2, 3, and 4 streets. This will allow
citizens better access to main arterials throughout the city, especially during early morning
62
-4 -
commutes. It is also noted that due to increased nighttime equipment utilization and a smaller
inventory of fleet, extended equipment breakdowns may have an effect on service levels.
There may not be backup equipment available to cover routes in the event of a breakdown.
With the reduction of equipment comes potential service impacts on summer services delivery;
specifically, the potential to affect storm water and asphalt related services. Depending on how
remaining equipment is distributed during the summer season, there could be an estimated
reduction in our summer asphalt overlay program of approximately two lane kilometers (1,000
tons of asphalt). Storm water could realize less hauling capacities which could see a reduction
of ditching (600m), amount of shouldering (7km), completed culvert repairs (2), and completed
manhole/catch basin repairs (8). These impacts are not significant and would only marginally
increase the response time to citizen work requests.
Financial Impacts:
The potential savings reflect an analysis of the average costs of running the various types of
equipment required to perform Winter Street Maintenance. These costs include maintenance
expenditures, fuel costs, and monthly amortization payments.
The elimination of the identified 12 pieces of equipment would result in approximately
$303,000 of equipment related savings to the Winter Street Maintenance operating budget.
In addition, potential service delivery changes during summer operation may be result in
approximately $100,000 in material savings (asphalt). This amount has not been validated and
is not included in the overall savings for the Winter Street Maintenance — Sustainability Item.
The elimination of two contracted plow runs would also net a cost avoidance of approximately
$16,000 annually. This number may fluctuate depending on the number of storm events
experienced in any given winter season.
Due to the proposed increase in night shift operators, early morning call -ins would not be
required. Based on an average of six (6) storm events per season requiring extra nighttime
resources, it is estimated that approximately $28,000 in overtime costs could also be avoided.
In total, the Winter Street Maintenance — Sustainability Item would result in annual savings to
the General fund operating budget of roughly $347,000 (see Appendix 2). Note also, savings
related to two loaders may not be realized until post 2021, as those pieces of equipment are
currently under a lease agreement.
Not included in the noted savings is the potential one time revenue from the sale of the
identified equipment. It is estimated that about $150,000 could be realized. In addition, the
eliminated equipment from Fleet inventory would see the related Fleet reserve funds used to
service the existing Fleet reserve fund deficit.
63
-5 -
Feasibility:
This item is 100% feasible, as it is based solely on a decision of Mayor and Council and can be
implemented to address the deficit within the timeframe; however, it would need to be
implemented in the fall of 2020.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input was received from the Finance & Administrative Services team.
ATTACHMENTS
Appendix 1 - Initiative Criteria Evaluation Appendix
Appendix 2 — Estimated Project Cost Reduction
-6 -
Appendix 1: Initiative Criteria Evaluation
Relative Evaluation of Sustainability Initiatives based on Impact and Financial Target
100
80
60
•'40
20
0
If iinanciiall "Y'airget
Evaluation Notes on Winter Sidewalk Maintenance:
• Growth & Prosperity — No impact
• Vibrant, Safe City — No impact
• Valued Service Delivery — No impact
Note: Evaluated initiatives that fall within the yellow and green areas should be considered as options to address
the 2021 and 2022 deficit. Initiatives that fall close to the red should only be considered if there are no other
options to address the deficit.
Sustainability Initiatives Evaluated as of December 4, 2019 (Not including Continuous Improvement Items)
1. Passport to Parks
2. Lifeguards (Not added to hopper)
3. Rightsizing Recreation Facilities - Rainbow Park
Ice Surface
4. Rightsizing Recreation Facilities - Seaside Park
Lawn Bowling
5. Playground Program
6. Fire Service Fee Recovery
7. Permit and Development Approval Fees
Increases
8. Grants & Incentives
9. Growth Reserve Fund
65
10. Non -Resident Differential Parking Fees
11. Monthly Parking Increase
12. Parking Ticket Increases
13. On -Street Parking Increase
14. Recreation Subsidies
15. Reduction to LBR Subsidy
16. Winter Street Maintenance
17. Economic Development Agency Funding
18. Arena Closure
19. Freeze CPI Adjustments for Inflation
20. Adelaide Street Facility
Appendix 2: Estimated Project Cost Reductions
Type
Number
Average
Cost
Reductions/
Unit
Total Cost
Reductions/
Type
Note
Loader
6
27,000
162,000
Routes Covered by Existing Equipment
6- Yard
3
33,000
99,000
Routes Covered by Existing Equipment
1/2 Ton (Foreman)
1
10,000
10,000
Equipment Sharing
1/2 Ton (Foreman)
1
10,000
10,000
Vehicle down for major repairs - Not replaced
Trackless
1
22,000
22,000
Spare Machine
Total
12
303,0001 Accumulated Estimated Savings from Equipment
Additional Savings
Item Cost Note
Contracted Loader Routes 16,000 Cost eliminated- service brought in-house( 5 year average)
Estimated Reduction in Overtime 28,000 Based on average of 6x 3am call ins/season (6x 29 men x 40T x $27/hr)
44,0001 Accumulated Estimated Cost Reductions from Other Items
347,0001 Total Estimated Sustainability Project Cost Reductions
••
COUNCIL REPORT
M&C No.
2019-339
Report Date
November 29, 2019
Meeting Date
December 04, 2019
Service Area
Growth and Community
Development Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Reduction in Economic Development Investment — Sustainability Item
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Authors
Commissioner/Dept. HeadCity
Manager
Phil Ouellette
Jacqueline Hamilton
I John Collin
RECOMMENDATION
The City Manager recommends that Common Council:
Endorse the proposed Reduction in Economic Development Investment — Sustainability Item as
an option to be considered in addressing the entirety of the deficit in 2021 and 2022.
REPORT
In 2019, the City of Saint John invested a total of $2,329,497 into the City's three economic
development agencies: $821,002 for Develop Saint John; $475,000 for Economic Development
Greater Saint John; and, $1,033,495 for Discover Saint John.
This sustainability idea contemplates a 10% reduction in the City's overall investment into the
three economic development agencies, or a reduction of $232,950, for the fiscal years of 2021
and 2022. At this time, staff have not completed an assessment of how this 10% reduction
should be applied across the economic development agencies; however, staff have assembled
some considerations for Council.
The City's 2019 Budget Simulator Exercise did contemplate reductions in the City's investment
into economic development, which could shed some light on possible implications of a 10%
reduction. As outlined in the Simulator, impacts of a 10% reduction to economic development
could diminish the City's ability to achieve tax base, employment, and tourism growth for Saint
John. It should be noted that any reduction in municipal funding to Economic Development
Greater Saint John may result in corresponding funding reductions from their other partner
organizations.
67
PREVIOUS RESOLUTIONS
On October 7, 2019, it was resolved by Council to receive and file M&C 2019-249:
'Sustainability: Addressing the Deficit 2021-2022'.
STRATEGIC ALIGNMENT
The savings realized by reducing the City's economic development investment supports
Council's Priority to be Fiscally Responsible by contributing to the overall Sustainability effort.
SERVICE AND FINANCIAL OUTCOMES
All sustainability initiatives have been evaluated against criteria based on Council's Priorities
and ability to implement to address the deficit of 2021 and 2022. In addition to Feasibility,
criteria include Growth & Prosperity; Vibrant, Safe City; Valued Service Delivery; and Fiscally
Responsible (see Initiative Criteria Evaluation Appendix).
With respect to Growth and Prosperity, potential minor impacts could occur due to reduced
support for economic development programming and opportunities.
A reduction of 10% in the City's existing economic development investment would result in
annual savings to the general operating budget of $232,950.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
N/A
ATTACHMENTS
N/A
Appendix: Initiative Criteria Evaluation
100
90
80
70
60
0
•'40
30
20
10
0
Relative Evaluation of Sustainability Initiatives based on Impact and Financial Target
If iinanciiall "Y'airget
Evaluation Notes on Economic Development Agency Funding:
• With respect to Growth and Prosperity, potential minor impacts could occur due to reduced
support for economic development programming and opportunities.
the 2021 and 2022 deficit. Initiatives that fall close to the red should only be considered if there are no other
options to address the deficit.
Sustainability Initiatives Evaluated as of December 4, 2019 (Not including Continuous Improvement Items)
1. Passport to Parks
2. Lifeguards (Not added to hopper)
3. Rightsizing Recreation Facilities - Rainbow Park Ice Surface
4. Rightsizing Recreation Facilities - Seaside Park Lawn Bowling
5. Playground Program
6. Fire Service Fee Recovery
7. Permit and Development Approval Fees Increases
8. Grants & Incentives
9. Growth Reserve Fund
10. Non -Resident Differential Parking Fees
11. Monthly Parking Increase
12. Parking Ticket Increases
13. On -Street Parking Increase
14. Recreation Subsidies
15. Winter Street Maintenance
16. Economic Development Agency Funding
17. Arena Closure
18. Freeze CPI Adjustments for Inflation
19. Adelaide Street Facility
••
COUNCIL REPORT
M&C No.
2019-341
Report Date
December 02, 2019
Meeting Date
December 04, 2019
Service Area
Finance and
Administrative Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Freeze Goods and Services Budget Envelope — Sustainability Item
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Authors
Commissioner/Dept. HeadCity
Manager
Josh Hennessy/
Cathy Graham
Kevin Fudge
John Collin
RECOMMENDATION
The City Manager recommends that Common Council:
Endorse the proposed Freeze Goods and Services Budget Envelope —
Sustainability Item as an option to be considered in addressing the entirety of
the deficit in 2021 and 2022.
EXECUTIVE SUMMARY
The City of Saint John Finance team facilitates the annual operating budget
process for assembly and approval.
Given the City's sustainability challenges, this report proposes that the City
continue to freeze goods and services budget envelopes for 2021 and 2022. That
is to say, there would be no change to service goods and services budget
envelopes as a result of CPI adjustments. For those items that have to increase
for service area operations, reductions must be found to other budget lines
within that service area.
PREVIOUS RESOLUTIONS
On October 7, 2019, it was resolved by Council to receive and file M&C 2019-
249: 'Sustainability: Addressing the Deficit 2021-2022'.
70
REPORT
For fiscal year 2019, the City of Saint John general operating budget had a goods
and services budget of $20,618,172. Historically, CPI adjustments have been
made to some of the general operating goods and services budgets to reflect
inflation of approximately 1.5% annually.
By maintaining current levels of funding to goods and services and not increasing
those amounts for inflation, service areas will experience less purchasing power.
Given the current economic outlook for the City, it is recommended that no
increase should be applied to the general operating goods and services budget
envelope in 2021 and 2022.
Implementation of this sustainability idea would result in the current goods and
services budgets by service area remaining static for 2021 and 2022, with no
change from the 2020 general operating budget. This would be a directive to
service areas during budget preparations.
STRATEGIC ALIGNMENT
The savings realized by implementing the 'Freeze Goods and Services Budget
Envelope — Sustainability Item' supports Council's priority to be Fiscally
Responsible by contributing to the overall Sustainability effort.
SERVICE AND FINANCIAL OUTCOMES
All sustainability initiatives have been evaluated against criteria based on
Council's Priorities and ability to implement to address the deficit of 2021 and
2022. In addition to Feasibility, criteria include Growth & Prosperity; Vibrant,
Safe City; Valued Service Delivery; and Fiscally Responsible (see Initiative Criteria
Evaluation Appendix).
This item is feasible to implement within the timeframe, only requiring a
decision of Council. Service areas would be required to decrease costs that
could possibly impact service levels. The impact financially, based on projected
CPI, is estimated to be $300,000 in savings each year (against the forecasted
deficit model). Service impacts would be minor as the $300,000 freeze is spread
across all service areas. There is also an opportunity for service areas to find
efficiencies. Considerable analysis is required to determine specific impacts to
service delivery; however, the impact on each service area is manageable.
71
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input for this report was provided by the staff of the Finance and Sustainability
Initiatives teams.
ATTACHMENTS
Appendix: Initiative Criteria Evaluation
72
Appendix: Initiative Criteria Evaluation
100
90
80
70
60
0
•'40
30
20
10
0
Relative Evaluation of Sustainability Initiatives based on Impact and Financial Target
If iinanciiall "Y'airget
Evaluation Notes on Freeze CPI Adjustments for Inflation:
• Valued Service Delivery — minor impact to service levels for departments. Will be responsible for
same service level with less purchasing power.
Note: Evaluated initiatives that fall within the yellow and green areas should be considered as options to address
the 2021 and 2022 deficit. Initiatives that fall close to the red should only be considered if there are no other
options to address the deficit.
Sustainability Initiatives Evaluated as of December 4, 2019 (Not including Continuous Improvement Items)
1. Passport to Parks
2. Lifeguards (Not added to hopper)
3. Rightsizing Recreation Facilities - Rainbow Park Ice Surface
4. Rightsizing Recreation Facilities - Seaside Park Lawn Bowling
5. Playground Program
6. Fire Service Fee Recovery
7. Permit and Development Approval Fees Increases
8. Grants & Incentives
9. Growth Reserve Fund
10. Non -Resident Differential Parking Fees
11. Monthly Parking Increase
12. Parking Ticket Increases
13. On -Street Parking Increase
14. Recreation Subsidies
15. Winter Street Maintenance
16. Economic Development Agency Funding
17. Arena Closure
18. Freeze Goods and Services Budget Envelope
19. Adelaide Street Facility
73
�111� 11�, [ "I [' 11 F
COUNCIL REPORT
M&C No.
M&C 2019-332
Report Date
December 02, 2019
Meeting Date
December 04, 2019
Service Area
Transportation and
Environment Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Sustainability Initiative: Recreation Subsidization Policies
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. HeadCity
Manager
Tim O'Reilly
Michael Hugenholtz
I John Collin
RECOMMENDATION
The City Manager recommends that Common Council:
Endorse the Recreation Subsidization Policies as described in M&C 2019-332.
EXECUTIVE SUMMARY
To address the City's deficit in 2021 and 2022 requires Common Council to consider various
revenue generating and cost/service cutting Sustainability Initiatives. Several of these
Sustainability Initiatives will impact the City's Parks & Recreation Services, including those
already presented at Council's November 18, 2019 meeting. It was clear from Council's
deliberations that a more holistic discussion about taxpayer subsidization of Parks & Recreation
services would assist Council in discussing which further related Initiatives should be considered
as options to address the deficit. This report will provide background on the Parks & Recreation
Service Area, investment models for the Service, and outline a recommended Policy for
providing Recreation Subsidization.
PREVIOUS RESOLUTION
On October 7, 2019, resolved by Council to receive and file M&C 2019-249: 'Sustainability:
Addressing the Deficit 2021-2022'.
74
-2 -
REPORT
Who We Serve
The City's Parks & Recreation team serves a wide range of people with a wide range of needs.
We support services for youth, adults, and seniors, participants of various sports and recreation
interests at different skill levels from within the City and region, visitors to the City, all the City's
priority neighbourhoods, families with financial barriers, and individuals with disabilities. We
support the City taxpayers by striving for efficient and effective service delivery and
contributing to growth.
Serving a wide range of people with different needs is something to be proud of but also
creates challenges. Spreading limited resources over many customer types reduces services to
any one customer. Impacts on this service delivery model are only amplified in challenging
fiscal times that the City is facing.
How We Serve
The City's Parks & Recreation team provides some services to the public directly. Operations
and maintenance of many parks, greenspaces, landscaping, various sports facilities, and some
recreation programming is completed with City staff. Some facilities, such as the Aquatic
Centre, facilities in Rockwood Park, the Lord Beaverbrook Rink (LBR), and Community Centres
are operated by partners.
Our service delivery model is continuing to shift from direct delivery of services to supporting
partners in doing so. For example, the Carleton Community Centre became the last City -
operated centre to move to a partnership, or Community Management Model. Some of the
Parks & Recreation team's skills have shifted to those that assist other partners in delivering
services.
Our shift from direct service delivery to the Community Management model, as recommended
in PlaySJ, is continuing for several reasons including:
• Maintaining services to the public with reduced City taxpayer investment, and
• Supporting leadership development in our community.
Services We Provide and for Whom
It is important Common Council has a general overview of the Parks & Recreation Services
provided, and for whom, when considering holistic changes in subsidization levels.
The Parks & Landscape Service provides, for the general public and visitors, maintenance of 30
acres of community parks and 134 acres of turf, 6 tourist sites, 5 beaches, and planting of
100,000 flowers and 18,000 bulbs annually. The gem of the City's Parks system, Rockwood Park,
is also maintained providing 56 kms of general use trails, wilderness activities, and naturalist
programming for approximately 5,000 school aged children annually.
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-3 -
The Urban Forestry Service provides tree hazard elimination and storm response City wide 24
hours per day, 365 days per year. This service responds to approximately 300 work requests
annually.
The Arenas Service provides operation and maintenance of 4 rinks for ice sports and dry floor
sport participants. Operating the arena mechanical system, maintaining the ice surface,
cleaning, facilitating repairs to the building and ice plant, and customer bookings, are activities
completed.
The Fields Service provides maintenance of 15 ball diamonds, 12 grass multipurpose fields, and
1 artificial turf field for summer sports participants. Mowing, line marking, garbage pick up, turf
repairs and management, ball diamond infield and mound maintenance, structure maintenance
(e.g., buildings, fencing, bleachers, field lighting, PA systems), and customer bookings, are some
activities completed.
Recreation Facilities provides 28 playgrounds, 3 splash pads, 2 skate parks, 1 horse shoe pit
area, and other facilities for neighbourhoods and youth. Safety inspections, repairs, and
garbage removal are some activities completed. Tennis courts at Shamrock and Memorial
Parks are also maintained through this budget.
PRO Kids is a non-profit organization that assisted 1,482 youth in the Greater Saint John Region
with gaining access to recreation opportunities in 2018. The organization generated a total of
$259,027 through fundraising initiatives, grant proposals, in-kind services, and parental
contributions.
Community Development Coordinators (who double as Recreation Programmers) support,
influence, and guide dozens of citizen led groups and organizations. These groups are the
primary facilitators for community engagement projects, food security, poverty reduction,
education programs, revitalization projects, and the development of safe and vibrant
neighbourhoods. Without the support from City staff, many of these groups would cease to
exist.
Recreation Programming coordinated 24 independent Green Machine Community Clean-up
initiatives that reached all four city quadrants. They organize Warm Up To Winterfest activities
and events, senior's wellness fairs, The Mayor's Cup skateboard event, and facilitate 4 Passport
to Parks events that engaged hundreds of City residents (participant counts are not available).
The 2019 Playground Program catered to 428 registered youth of which 85% were from low-
income families and 38% were newcomers. We also have dedicated Coordinators focused on
working with the seniors population and contributing to organization of the Friendship Games,
Wellness expos and working closely with the Senior's Resource Centre, and the Greater Saint
John and Fundy Seniors Inclusive taskforce.
Community Centres provide accessible, age -friendly programming to meet the needs of their
surrounding neighbourhoods. These centres are pillars of their communities and serve
residents of all ages in providing a safe and accessible space for engagement.
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-4 -
In 2019, thirty approved Community Grant applications received funding to use towards either
Operational Funding, a Community Project, or a Special Event.
Neighbourhood Development Grants supported service organizations (Crescent Valley
Resource Centre, The ONE Change Inc, P.U.L.S.E., The Waterloo Village Association, Around the
Block Community Newspaper, and The Teen Resource Centre). With the assistance of the City's
Community Development team, these groups undertake hundreds of initiatives including
beautification projects, access to learning, settlement services, youth development, financial
literacy, and community engagement to name but a few. The impact of these services are felt
by thousands of residents residing in the city's priority areas.
Why Might Taxpayers Invest in Parks & Recreation Services?
The City is not mandated to provide Parks & Recreation services based on the Local Governance
Act. Why then may taxpayers from Saint John or other jurisdictions invest in these services at
all, particularly in tough financial times? Why shouldn't only those individuals who would use a
park, sports facility, etc. pay for those services and if the demand is not there to pay, eliminate
the service altogether? The short answer is because Parks & Recreation Services provide
community -wide benefits and demonstrates that we care for our fellow citizens.
The City's Parks & Recreation Services:
• contribute to the health of citizens, resulting in decreased health care costs;
• assist youth (our future leaders) develop teamwork and other social skills;
• assist in growth, through increasing property values and supporting a community of
choice for new residents and businesses;
• assist in tourism such as providing amenities for cruise ship passengers and
tournaments at City sports facilities;
• reduce financial barriers to recreation to many families at or close to the poverty line;
• provide services for seniors, allowing a community to give back to those who have
helped build our community for decades and provide social interactions to a segment of
our community who may benefit from this opportunity; and
• supporting accessible services ensures all citizens, regardless of abilities, achieves
quality of life.
Cost Recovery Percentage — The measure of Taxpayer versus Individual Investment
Deciding how much taxpayer funding should be invested in Parks & Recreation Services in
tough financial times is challenging. City staff is providing information, through this report, to
assist Council in making the necessary decisions.
77
A common, best practice way of
assessing taxpayer investment levels is
through the Cost Recovery Pyramid
Methodology (see figure to right).
Services that offer greater Community
Benefit are subsidized more by
taxpayers. Services that offer greater
Individual benefit are subsidized less by
taxpayers, where funding to maintain
the service is more dependent on user
fees. Cost Recovery from users,
measured in percentage, defines the
appropriate split of Community versus
Individual benefit; the greater the percentage, the greater the Individual benefit. The figure
below describes some of the factors that could be used to determine the appropriate Cost
Recovery Percentage. The City's Operating Budget Policy references use of Cost Recovery
-5-
Percentage in the context of Community Benefit.
Community Benefit
• Recreation based sport
• Youth or Seniors based
• Benefits many participants
• Benefits residents
• Economic benefits
Individual Benefit
• Elite sport
• Adult -based
• Benefits few participants
• Benefits non-residents
Current State of Community versus Individual Parks & Recreation Investment in Saint John
The 2019 General Fund Operating budget included that City of Saint John taxpayers would
spend $6.9 Million on operating costs and a further $2.8 Million on subsidies for Parks &
Recreation -related services. Individuals, through user fees, would contribute $876,000 to
offset a portion of the operating costs. This estimated operating cost recovery percentage from
user fees is 11%.
Appendix B details each service and subsidy related to Parks & Recreation Services, including
the cost to deliver the service, offsetting user fees, and resulting Cost Recovery Percentage.
Cost Recovery Percentages are not considered for subsidies because inherently revenues
besides the City's investment offset true costs to deliver a service in many cases.
Cost Recovery Best Practices
City staff researched municipalities to identify available best practices of cost recovery
percentages for Parks & Recreation services. There was not a lot of available information;
78
-6 -
however a detailed and current (2019) report completed for the Halifax Regional Municipality
(HRM) provided some useful information.
HRM hired a financial consulting firm to, among other tasks, identify the 100% cost recovery
hourly rate for various facilities including arenas, ballfields, and courts. They also established
cost recovery targets for various user types.
Facility Type
Corporate* Cost
Recovery %**
Adult Cost
Recovery %**
Youth Cost
Recovery
Arenas
100%
100%
80%
Arenas (Floor)***
100%
100%
80%
Ballfields***
100%
j 100%
j 50%
Courts
100%
1 100%
1 80%
*"Corporate" users are those renting space on behalf of a for-profit business
** Cost Recovery % shown is for Prime Time use only. Lower recovery rates were approved for non -prime times.
***Recovery Cost percentages based on a lower "adjusted cost per utilized hour" to align rental rates more closely with
comparators in jurisdictional scan.
Considering Cost and Practicality of Pursuing Cost Recovery
Practical considerations are required at times when deciding if a service should have a level of
cost recovery. Even if a participant should pay for a service if it is determined there is a level of
benefit to the Individual, it may be not practical or may simply be too expensive to collect
payment. For example, City playgrounds do not have user fees. Even if user fees were justified
for playgrounds, the cost to collect the fees would be significant with resulting low net
revenues.
Supply, Demand and Competitive Pricing Considerations
As was completed in HRM's review, economic considerations are also required when setting
cost recovery targets. Charging user fees significantly greater than what a recreation
participant is willing to pay or what other service providers with similar supply will charge can
cause significant impacts. A reduction in demand could lower revenues to the point where cost
recovery results are actually worse than before the policy change was made. Subsequent
reductions in supply of assets below what is recommended in PlaySJ could impact the very
community benefits the service was intended to support. Divesting of supply would be very
difficult in some cases. At times, more taxpayer subsidization, via calculating and using a
modified full cost recovery value, is needed to keep user fees competitive even if a greater cost
recovery rate is justified from a Community/Individual benefit analysis perspective.
Complicating a supply, demand and pricing analysis are other Sustainability Initiatives that may
impact the City's operating model (in the case of arenas) and reduce the supply (in the case of
arenas and ballfields) of facilities with cost recovery components. How the combination of
these Initiatives, if all implemented, ultimately impacts the City's subsidization of recreation
facilities is a significant challenge that City staff need Council to be aware of.
79
Ballfields — Particular Challenges Affecting Cost Recovery Levels
Multi-purpose fields and ball diamonds, have some characteristics unique from arenas that
affects ability to achieve full cost recovery rates including:
• More unstructured use where recovery of cost for that use is not possible,
• Although not currently considered in the recovery calculations and still being assessed
as part of the City's Asset Management Program, Capital maintenance requirements for
a ballfield is significantly less than for arenas.
Ball diamonds in particular have some characteristics even unique from multi-purpose fields
that affect ability to achieve full cost recovery rates including:
• Greater maintenance demands (field lining, infield raking and drying), and
• A wider range of dimensions for different user classes (youth, softball, hardball)
As was concluded for HRM, City staff is recommending a modified (lower) full operating cost
recovery value for ballfields and floor use of arenas. Appendix D shows the modified full cost
recovery value to be used for both.
Reconciling Non -Resident Share of Full Cost Recovery Contributions
City staff would like to highlight Council's previous position that City taxpayer funding should be
directed to subsidize City taxpayer use of City recreation services and facilities. This position is
reiterated in staff's recommendation in this report that non-residents should pay 100% of their
share of the full or modified operating costs when a user fee is applied to a Parks & Recreation
Service.
City staff also reiterates Council's position that the fairest and most sustainable way of
matching regional contributions to regionally used Parks & Recreation facilities and services is
through a regional approach.
Common Council has already approved a "Recreation Card & Non -Resident User Fee" approach,
striving for 100% cost recovery from non-resident use of City arenas. City staff is not
recommending a change in this approach as part of this report but intend to discuss this policy
with Common Council when the "Recreation Non -Resident User Fee" Sustainability Initiative is
presented.
PIaySJ — Another Tool to Achieving Appropriate Subsidization Levels
PIaySJ, the City's Parks & Recreation Strategic Plan, creates several opportunities to help
achieve appropriate subsidization levels in addition to Cost Recovery Targets, including:
1. Rightsizing—The City had, and still has, an overabundance of some facilities including
arenas, ballfields, and playgrounds for its population. Divesting of some of these assets
would decrease subsidization levels while maintaining base service standards.
:8
Co -locating higher standard services and facilities —The City's inventory of parks and
recreation facilities is spread out throughout our large city. Travel time and other
dispersement of resources leads to inefficiencies. Consolidation of facilities into a fewer
district and regional hubs reduces these inefficiencies and allows greater service
standards to be achieved.
Community Management Model —This PlaySJ outcome is referenced previously in this
report. Essentially, by relying on partners to help deliver and/or fund service, supported
by Parks & Recreation staff trained to facilitate these opportunities, decreases taxpayer
investment while maintaining service.
Community Grants and LPP: Opportunity to Subsidize a Wide Range of Community Initiatives
Both the annual Community Grants Program and Land for Public Purposes (LPP) rolling balance
fund have capped funding available to subsidize recreation services and assets similar to other
services described so far in this report. However, these two programs have more (but not
unlimited) flexibility in the types of services and assets that could be funded and the level of
funding provided to an individual community initiative. These two programs can be described
as a "catch all" for the City to subsidize community recreation initiatives that don't fall into one
of the other service areas.
City staff is recommending a $40,000 increase to the annual Community Grants budget for
2021. This increase is to improve the transparency and set limits on the subsidization (i.e., in-
kind or hard costs) of particular activities:
• Free ice time requests and reduced ballfield rates to support auctions and other non-
profit activities previously absorbed as lost revenues, and
• In-kind or financial support traditionally funded from other City budgets for events, even
in some cases where financial support is already provided for such events.
Generally, if community events need support from the City, it needs to become a consistent
process that such support is assessed through the Community Grants Program. With this
change in policy, it is recognized the Community Grants Committee would need to meet more
than once per year to consider requests to support community events, particularly to consider
requests from this new $40,000 funding envelope.
Available Flexibility to Change Focus of Subsidization
As Common Council considers changes to Parks & Recreation Service subsidization levels, City
staff point out that some areas can respond to changes more easily than others.
Some services, particularly those we deliver directly, are more difficult to change. This is
because many services we delivery directly include assets (e.g., ballfields, parks) where
divesting of such assets can be challenging if there is no market to develop the available land.
However, the City's Recreation Coordinators can be more responsive to changes in priority.
Community Grant funding can be directed to particular priorities. The City could work with our
Community Centre service providers to change focus of programming.
81
-9 -
Other Corporate Initiatives Assisting in Reducing Parks & Recreation Subsidization
City staff reiterate that other corporate initiatives such as Continuous Improvement and the
Asset Management Program will also lead to reductions in City taxpayer subsidization of Parks
& Recreation Services.
Ultimate Questions Council Could Deliberate in Seeking Balanced Recreation Subsidization
Policies
As a summary, Common Council could deliberate the following questions to assist in seeking
the appropriate balance of Parks & Recreation Subsidization levels:
1. What Community Benefits described previously in this report justify greater or lower
subsidization levels?
2. Which customer types described previously in this report justify greater or lower
subsidization levels?
3. Are there Parks & Recreation Services we deliver now that we should no longer deliver
or only deliver with a 100% cost recovery model? Note PlaySJ's rightsizing goals would
assist answering this question.
4. Are there Parks & Recreation Services we don't currently deliver or support that we
should begin subsidizing? Note subsidization of new services requires new funds or
funding eliminated from another service.
5. Are there more services we are delivering now that could be delivered or funded by a
partner as per PlaySJ's "Community Management" Model?
Recommended Policies
With the preceding sections of this report and the subsequently described Financial
Implications as context, City staff recommend the following policies:
WHEREAS over -arching principles in development of policy is important, the following are
recommended for Parks & Recreation service subsidization,
• Subsidize all City taxpayers to a degree because each already pay taxes toward the use
of Parks & Recreation facilities,
• Ensure consistency in cost recovery between the various facilities,
• Employ a commonly used practice of having differential cost recovery targets relative to
adults, youth, and seniors, given relative community benefits received, and
• Consider taxpayer affordability, particularly in relation to contributing to Sustainability
for the years 2021 and 2022.
WHEREAS costs to operate and maintain some Parks & Recreation facilities are significantly
high and where significant negative impact on demand would result with application of the full
cost recovery value;
82
-10-
• A modified cost recovery value maybe calculated and used in the place of the full cost
recovery value;
WHEREAS a modified cost recovery value is justified for ball fields and floor use of arenas;
• The modified cost recovery value for ball fields and floor use of arenas shall be 50% of
full cost recovery,
WHEREAS City taxpayer investment in Parks & Recreation Services as described in Appendix A
of this report represents approximately 10% of the residential taxbase in the City of Saint John;
• Generally, an Adult City of Saint John resident shall be subdisidized by 10% and pay 90%
of the full or modified operating cost when a user fee is applied to a Parks & Recreation
Service,
WHEREAS Seniors have contributed to the quality of life we now enjoy, may benefit from social
interaction opportunities, and may face financial burdens, justifying their greater level of
subsidization;
• Generally, a Senior (65 years or older) City of Saint John resident shall pay 70% of the
full or modified operating cost when a user fee is applied to a Parks & Recreation
Service,
WHEREAS Youth are our future community leaders where access to recreation opportunities
can assist in learning teamwork, confidence, and other important life skills, justifying their
greater level of subsidization;
• Generally, a Youth City of Saint John resident (18 years or younger) shall pay 60% of the
full or modified operating cost when a user fee is applied to a Parks & Recreation
Service,
WHEREAS education improves employment opportunities, develops a skilled workforce
contributing to the economy of the City of Saint John, and educational institutions add to the
cultural fabric of our community;
• Generally, teams of City of Saint John based schools in the Anglophone and
Francophone School Districts, University of New Brunswick, and New Brunswick
Community College, where generally more than 75% of participants of teams of said
schools are Saint John residents, shall pay 60% of the full or modified operating cost
when a user fee is applied to a Parks & Recreation Service,
WHEREAS City of Saint John Parks & Recreation facilities can and do host tournaments that
draw significant numbers of visitors to the City from significant distances who overnight in City
hotels, motels, etc. and/or use City restaurants contributing to our economy;
83
-11-
• Generally, tournaments held at City Parks & Recreation venues where more than 20% of
the participants are from outside the Greater Saint John Region shall pay 60% of the full
or modified operating cost when a user fee is applied to a Parks & Recreation Service,
WHEREAS Non -Residents have the opportunity to receive subsidization from their fellow
taxpayers toward Parks & Recreation Services they choose to enjoy within the Greater Saint
John Region, including within the City of Saint John;
• Generally, a Non -Resident shall pay 100% of the full or modified operating cost when a
user fee is applied to a Parks & Recreation Service,
WHEREAS for-profit businesses that may benefit financially by enjoying subsidized use of City
Parks & Recreation facilities;
• Generally, for-profit businesses renting space at City Parks & Recreation facilities shall
pay 100% of the full or modified operating cost when a user fee is applied to a Parks &
Recreation Service,
WHEREAS it is recognized third parties may and do operate City of Saint John owned Parks &
Recreation facilities where user fees are charged;
• Third party operators of City of Saint John owned Parks & Recreation facilities are
requested to align with policies described in M&C 2019-332,
WHEREAS subsidization of a wider range of Parks & Recreation related activities and
infrastructure important to the community that do not necessarily align within defined scope of
specific City service areas is justified and needs to be transparent and limited within defined
resource levels;
• The City's Community Grants Program and Land for Public Purposes Fund shall be the
primary sources to provide financial and in-kind support for community recreation
initiatives, events, and infrastructure improvements,
WHEREAS to reallocate subsidization of some activities that have in the past been subsidized by
City service areas that more appropriately align within scope of the Community Grants
Program, where there is community benefit in continuing to support these activities;
• A $40,000 increase to the Community Grants Program budget shall be considered for
the 2021 General Fund Operating Budget by Common Council for the purposes
described in M&C 2019-332.
Future Work
This Report could be used by Common Council for context as it considers future Parks &
Recreation Sustainability Initiatives.
RE
-12 -
The policies of this Report, if adopted, will be used by City staff in recommending to Common
Council user fees for various Park & Recreation Facilities in 2020 and beyond.
As the City's Asset Management Program matures and long term capital investments in Parks &
Recreation Facilities become more predictable, City staff intend to update and recommend new
Cost Recovery Percentage targets in the future that incorporate full lifecycle costs (beyond the
present use of only Operating costs).
Anecdotally, City staff are aware that operating and maintenance costs for ball diamonds are
greater than for multi-purpose fields. It would be an even truer reflection of Cost Recovery if
costs for these two types of facilities were identified separately. However, more analysis is
required and will be undertaken in the future.
Once final decisions are made and implementation is underway on Sustainability Initiatives
related to Parks & Recreation, an updated review of supply, demand, and service costs may
lead to further refinement of appropriate Cost Recovery Targets.
STRATEGIC ALIGNMENT
This report is intended to assist Common Council in assessing Sustainability Initiatives related to
Parks & Recreation services.
This report aligns with all four of Council's priorities of Growth, Vibrant Safe City, Valued Service
Delivery, and Fiscal Responsibility. This report also aligns with City policies and strategic plans
such as:
• PlaySJ
• Continuous Improvement
• Asset Management
• Operating Budget Policy
SERVICE AND FINANCIAL OUTCOMES
Each recommended cost recovery value policy has financial implications to both the City and to
user groups that rent City facilities. This section of the report describes these financial
implications.
The described financial implications are estimates only to provide context as Common Council
considers each policy. There are numerous inter -related Sustainability Initiatives potentially
impacting several Parks & Recreation Services the City would be delivering as of the year 2021.
There are several assumptions that had to be made in calculating these estimates. Two of the
more significant assumptions used in this financial analysis:
• Rightsizing of Parks & Recreation assets will occur with some Sustainability Initiatives,
resulting in cost savings,
85
-13-
• Demand for City facilities will not significantly decrease with recommended changes in
cost recovery targets
Appendix C identifies the estimated approximate City Taxpayer Subsidization with each Cost
Recovery Value policy presented previously in this report.
Appendix D identifies the estimated approximate Average Hourly Rental Rates to users with
each Cost Recovery Value policy presented previously in this report.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The City's Sustainability Team and the Finance & Administrative Services Department provided
input for this report.
City staff intend to meet with sports associations (e.g. ice sports, field sports) early in 2020 to
inform and seek collaboration on decisions made related to this Report and other applicable
Sustainability Initiatives.
ATTACHMENTS
APPENDIX A: Initiative Criteria Evaluation
APPENDIX B: 2019 Parks & Recreation Budgeted Taxpayer and User Contributions
APPENDIX C: Taxpayer Subsidization with Each Recommended Cost Recovery Value Policy
APPENDIX D: User Fee Impacts with Each Recommended Cost Recovery Value Policy
Staff Presentation
:•
APPENDIX A: Initiative Criteria Evaluation
Relative Evaluation of Sustainability Initiatives based on Impact and Financial Target
100
90
80
70
60
0
•'40
If iinanciiall "Y'airget
Evaluation Notes on Recreation Subsidies:
• Minor impacts to Vibrant, Safe City and Valued Service Delivery possible due to a reduction in
recreational facility demand.
Note: Evaluated initiatives that fall within the yellow and green areas should be considered as options to address
the 2021 and 2022 deficit. Initiatives that fall close to the red should only be considered if there are no other
options to address the deficit.
Sustainability Initiatives Evaluated as of December 4, 2019 (Not including Continuous Improvement Items)
1. Passport to Parks
2. Lifeguards (Not added to hopper)
3. Rightsizing Recreation Facilities - Rainbow Park Ice Surface
4. Rightsizing Recreation Facilities - Seaside Park Lawn Bowling
5. Playground Program
6. Fire Service Fee Recovery
7. Permit and Development Approval Fees Increases
8. Grants & Incentives
9. Growth Reserve Fund
10. Non -Resident Differential Parking Fees
11. Monthly Parking Increase
12. Parking Ticket Increases
13. On -Street Parking Increase
14. Recreation Subsidies
15. Winter Street Maintenance
16. Economic Development Agency Funding
17. Arena Closure
18. Freeze CPI Adjustments for Inflation
19. Adelaide Street Facility
87
APPENDIX B:
2019 Parks & Recreation Budgeted Taxpayer and User Contributions
se,tv.
1,oe Area
2015,0p,�aratin g
2019 UserCost
ReCIDW'ry
2019, Taxpay,er
SUbsidlizationf,
Curr t,
est
Rec(wery,
Parks & Uty Landscape Serwce"
$
2,169,716.00
$
$2,169,716.00,
0%
Llfeguards
$
173,401,00
$
$ 173w4GI
0%
Rockwood Park
$
590,039.00
$
41,001
$ 549,0,39.00,
7%
UrIl Forestry
$
309,178.00
$
-
$ 309,178.00,
0%
Arenas"
$
1,661,801.00
$
6,81,850.0,13,
$ 979,951.00,
41%
Services
`II,elds
$
1,429,986.0,10
$
152,758.0,13,
$1,277,228.00,
11%
RecreatOGn FacflHtdes
$
437,476.00
$
$ 437,476.00,
01%
PRO Ccis'
$
105,671.00
$
$ 105,671.00,
0%**###
CQITITLjn'RtV Development
$
265,628.00
$
$ 265,628.010,
01%
Recreatl on Pro,grarnrnling
$
653,332.00
$
$ 653,332,0101,
01%
Prlirnary Cornrnunlity Centre 5U13siidlbes
I
$ 666,481.00,
N/A
Corn rmjniity,G rants
I
$ 179,721,0101,
IN/A.
Neiighbourlhoocl Development Grants
I
$ 152,0010.00,
IN/A_
SJ Hortlicullturall AssocliatDon Sull
I
$ 40w0010.00,
IN/A
Subsii&es Aquatiic Centre Suhsllc]V"***
I
$ 541,837.00,
IN/A.
Harll Statm,n Sull'
I
$ 588,525.000
N/A
Lord Bearbr&&k l Sul lidY
I
$ �159,382.0�0,
N/A
Passpork to Parks SuI3siidV*'*'**
I
$ 15,00,0.O0,
N/A
l y Sul lidY
I
$4915,929.�0
N/A
ITOTA'L
875,15011
$,51,759,494M
11%
* Trust fund revenues subtracted from operating budget. Ilndludes $5,000 budget for Mlispec I
"Youth lice Sports Subslidy subtracted from user fees
Regionall contributions subtracted from operating budget.
Does not Incorporate pending changes to RK Ilegiisllattiion
100% of funds coll1lected from donations proviided for youth actliVity
Assumes $300,00 for Resiident Rebates
******* $20,,000 from Recreation Programming Budget
APPENDIX C:
Taxpayer Subsidization with Each Recommended Cost Recovery Value Policy
' Not corrected for Nor-Fcesodent Use
We
884,000.00
1,277,000.00
1(1,000.00
16,000.00
k % for Ba ll llfiellds and arena
floors corrected for
Modiifiied Cost liecouery
Vallue
Note: Results in table assumes no
change in demand. Some
Sustainability Initiatives, and timing
of implementation, will affect
facility supply and operating costs
Subsldlaatlon
lSubsldizatilon SWbsd'zatdn Sub5Wzat6An aevenurcedOrorn SuadWiizatlun 9ubvcUzatan
Wx(Ith Use of
wWvW% Wlth 70% I , WWtah 60%,
00%fti oollf4ed wltM60% - w th 60%
5uture,
5II0%N'rodufired
fWA!dffued cast Modifred,t st Modmedtost cost mewvery Modmed'crrst f lAmuedCos#-.
tiUwefef4
Full Cost,
aecoveryofI RecdveTyof llexotMof
for Non- Redgvegof Hocxuvezyof ��Future iOTAL
d'ast
Fadfflty
RebouenV61ueMatt Use" �' 5enror5 Ude" Youth Uso'
IResWedas Schocl Teahfstournardenas 13uuaiiMaabon 7fet6ely%
Aterga (Icel
$ -
_$ 27,U00 -$ 11,1300 -$ 302,000
$ 112,1300 -$ 48,000 -$ b7,000
$ 343,000
75`A
Ballffel�s
, fifi ,000
-$ 28,1300 $ $ 105,000
$ 44,0130 -$ 29,0130 $ 16,000
$ 795,,000
40%
'7enMs
1 $ -
$ - $ - -$ 3,000
$ 3,000 $ - -$ 3,000
$ 3,000
77%
htt€ma,IfloodI,-$
60,000
-$ 31000 $ - -$ 14,000
$ 5,000 $ - -$ 1,000
$ 73,000
4045
TOTAL
-$ 721,000 -$ 58,000 -$ 11„000 -$ 424,000
$ 162„000 -$ 77,000 -$ 85,000 $ 1,214,000
' Not corrected for Nor-Fcesodent Use
We
884,000.00
1,277,000.00
1(1,000.00
16,000.00
k % for Ba ll llfiellds and arena
floors corrected for
Modiifiied Cost liecouery
Vallue
Note: Results in table assumes no
change in demand. Some
Sustainability Initiatives, and timing
of implementation, will affect
facility supply and operating costs
APPENDIX D:
User Fee Impacts with Each Recommended Cost Recovery Value Policy
Note: Specific staff recommended hounly rental) rates woulld be rellative to average vallues in above tablie and cost
recovery/subsidization targets for the different facilities and classes of user types. IcorexampIles, IPriime Rates in lice
Sports and C11ass A, Emera l in Balillfilelld sports woulld be above the averages v&l1le Non-lPrime and Class B ballllfiiellds,
respectivelly, wound be bellovy the averages.
Note: Results in table assumes no
change in demand. Some
Sustainability Initiatives, and timing
of implementation, may affect
facility supply, operating costs, and
hourly rates.
K81
Average"
Futurt Average,
�utund Aveia&
FutureAveeage,
FutuPeAverifte,
hiburly, va I u�
Hburly'kaft-with
Youth Hourly Rate SOMOM, Hourly,
, Adu It Hborly Rate
,2019 Cost
'far 2DI9rCost'
Modified 100%Cost with, W9t'Ccst
Rate with 70%'Ccst w ith.9,10%fbost
Facility,
itecovery,
6 co44ry,%
Mcov4ry,Value
Value
Kecdvery'vallue
Arena Otel
41%
$ 151.97
$ 310.02
$ 186.01
$ 217.01
$ 279.02
Ball
21%
$ 25.68
$ 111.13
$ 6,6.6s,
$ 77.79
$ 100.02
Tennllis'
G%
$ -
$ 21.99
$ 13.19
$ 15.39
$ 19.79
Arena (rl
33%
$ 37.72
$ 117.88,
$ 70.73
$ 8,2.51
$ 1061.139
Note: Specific staff recommended hounly rental) rates woulld be rellative to average vallues in above tablie and cost
recovery/subsidization targets for the different facilities and classes of user types. IcorexampIles, IPriime Rates in lice
Sports and C11ass A, Emera l in Balillfilelld sports woulld be above the averages v&l1le Non-lPrime and Class B ballllfiiellds,
respectivelly, wound be bellovy the averages.
Note: Results in table assumes no
change in demand. Some
Sustainability Initiatives, and timing
of implementation, may affect
facility supply, operating costs, and
hourly rates.
K81
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M
COUNCIL REPORT
M&C No.
2019-335
Report Date
November 18, 2019
Meeting Date
December 04, 2019
Service Area
Transportation and
Environment Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Arena Closure — Sustainability Item
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Authors
Commissioner/Dept. HeadCity
Manager
Tim O'Reilly/
Amy McLennan
Michael Hugenholtz
John Collin
RECOMMENDATION
The City Manager recommends that Common Council:
Endorse the proposed 'Arena Closure — Sustainability Item' through the closure
and divestment of one (1) of the four (4) arenas that are owned and operated by
the City of Saint John as an option to be considered in addressing the entirety of
the deficit in 2021 and 2022.
EXECUTIVE SUMMARY
There are four (4) arenas owned and operated by the City of Saint John:
1. Charles Gorman Arena
2. Hilton Belyea Arena
3. Peter Murray Arena
4. Stewart Hurley Arena
Given the City's sustainability challenges, this report proposes the closure and
divestment of one (1) of the above arenas. This would result in a cost reduction
of approximately $199,000 in the general operating budget and an estimated
decrease of up to $44,000 in annual revenue, netting a savings of approximately
$155,000 annually.
Should Council decide at a future date to proceed with this item, one (1) arena
would be closed prior to the start of the 2020/2021 winter ice season and the
land sold with the condition that it could no longer be operated as an arena. A
107
-2 -
separate Sustainability item will then be presented that will address the
remaining arenas that are owned and operated by the City; that 'Arena
Inventory' Sustainability item will evaluate options for alternate service delivery
with the City's remaining arena inventory.
Through consultation with Growth and Community Development Services and
Develop Saint John, it was determined that the lands upon which the Charles
Gorman Arena and the Hilton Belyea Arena sit could both be considered as
options for sale. Should this item be approved by Council at a future date,
Develop Saint John would be engaged to put forth a recommendation as to
which specific property would offer the best business case for development.
PREVIOUS RESOLUTIONS
On October 7, 2019, it was resolved by Council to receive and file M&C 2019-
249: 'Sustainability: Addressing the Deficit 2021-2022'.
REPORT
There are four (4) arenas that are owned and operated by the City of Saint John;
City taxpayers subsidize the operating deficits and capital costs of these facilities.
The average annual operating cost for each arena is approximately $199,000;
this amount excludes staff wages and benefits.
The City of Saint John's Municipal Development Plan (PlanSJ) has identified that
the City is currently oversupplied with recreational facilities. Directing
investment to improve existing facilities in designated Intensification Areas,
while repurposing some facilities that no longer serve the community, is a
direction the City must take in order to build successful, complete communities.
The City of Saint John's 2013 Parks and Recreation Strategic Plan (PIaySJ)
supported a more sustainable approach to delivering recreational services,
recommending there only be 3.5 arenas to serve the City, based on an industry
standard of one (1) arena for every 20,000 people.
However, Saint John's arenas also serve the population of the Greater Saint John
Region; approximately 1/3 of the users of Saint John's arenas are from outside
the city. Thus, it remains important to consider the larger regional population in
identifying the appropriate quantity of Saint John arenas, as long as there
remains opportunity for these assets to continue to serve our Region. PIaySJ
recognizes this.
There are currently six (6) arenas in the city, including the Lord Beaverbrook
Rink, TD Station (not fully available for recreational use), and the following four
(4) arenas operated by the City of Saint John:
1. Charles Gorman Arena — Millidgeville
108
-3-
2. Hilton Belyea Arena — West
3. Peter Murray Arena —West
4. Stewart Hurley Arena —East
Given the City's sustainability challenges, this report proposes the closure and
divestment of one (1) City -operated arena, which would be well within the
rightsizing parameters of PIaySJ.
It is anticipated a significant amount of the demand for the arena that would be
closed could be still accommodated in the other three (3) arenas. For the 2018-
2019 season, 13% of the available Prime Time ice was unbooked. For the current
season, 24% of the available Prime Time ice remains unbooked. Increased use of
the remaining three (3) arenas would also decrease the amount of taxpayer
subsidization of these assets.
Through consultation with Growth and Community Development Services and
Develop Saint John, it was determined that the lands upon which the Charles
Gorman Arena and the Hilton Belyea Arena sit could both be considered as
options for closure and divestment. Should this Sustainability Item be approved
by Council at a future date, Develop Saint John would be engaged to determine
the highest and best use of each property, as well as overall marketability, in
order to put forth a recommendation as to which specific arena would offer the
best business case for development.
The Stewart Hurley Arena is not being considered, as the building is situated on
land that is owned by the Province of New Brunswick. Repurposing of that land
and the potential for future property tax revenue would be out of the City's
control.
The Peter Murray Arena is also not being considered. It is part of the larger
Memorial Park complex that is recommended to be developed and maintained
as a District Field Hub in PIaySJ, which supports the City's objective of sustaining
optimal efficiency in terms of maintenance and operations. In addition, parking
is already often over capacity during large events at the complex and sale of the
arena without including the adjacent parking area could significantly impact the
marketability of the property.
Upon review of information currently available as part of the City's Asset
Management Program, there was not a significant variance in terms of
projections of long-term investment requirements for each of the facilities, so
that did not factor into the decision of which locations to consider as options for
closure.
Should the closure of an arena be approved by Council at a future date, the Parks
and Recreation Service would advise external stakeholders of the decision,
including user groups and canteen operators. The City of Saint John
109
-4 -
Communications Service would also be engaged to assist in informing the public
of the closure.
STRATEGIC ALIGNMENT
The savings realized by the closure and divestment of one (1) of the four (4)
arenas that are owned and operated by the City of Saint John supports Council's
Priority to be Fiscally Responsible by contributing to the overall Sustainability
effort.
SERVICE AND FINANCIAL OUTCOMES
All sustainability initiatives have been evaluated against criteria based on
Council's Priorities and ability to implement to address the deficit of 2021 and
2022. In addition to Feasibility, criteria include Growth & Prosperity; Vibrant,
Safe City; Valued Service Delivery; and Fiscally Responsible (see Initiative Criteria
Evaluation Appendix).
The availability of recreational facilities such as arenas supports Council's
Priorities of a Vibrant, Safe City and Valued Service Delivery. Although some user
groups would be rebooked at the remaining arenas, there will be a decrease in
the overall number of hours and options available for those who make use of the
arenas. Also, of the seven (7) annual tournaments usually booked at City of Saint
John operated arenas, approximately half may be impacted by a reduced
number of arenas due to the volume of ice they historically book.
Although it may be perceived that an arena is used primarily by individuals from
the neighbourhood in which the facility is located, it should be noted that the
majority of user groups are regional in nature and make use of multiple arenas.
Rightsizing through the closure of one (1) arena will better align capacity with
the overall use of the facilities.
This item is 100% feasible, as it based solely on a decision of Mayor and Council;
however, the sale of the property, development, and potential for future
property tax revenue is dependent upon the market.
With regard to the cost for all City -operated arenas, the goods and services
totaled $795,247 in the 2019 operating budget. The closure of one (1) arena
would result in a cost reduction of $198,812.
In terms of revenue from ice bookings, it is anticipated there could be a loss of
revenue of up to $44,000 associated with the closure of one (1) arena. There is a
portion of Prime Time ice still available at arenas during this current season and
there is an assumption that demand for less desirable ice times will increase with
a decrease in overall supply, thus allowing a portion of revenues to be
maintained.
110
-5 -
With regard to arena floor bookings, the assumption is that the closure of one
(1) arena should not result in a loss of revenue, as the bookings should be able to
be accommodated with the remaining arenas. However, should a user group
wish to expand and increase their bookings, or should there be a full -cost
recovery rental of off-season ice, there may not be sufficient capacity to
accommodate demand.
Lowell Field is located on a portion of the Hilton Belyea Arena property. Should
that arena be chosen for closure, that field would no longer be available as an
option for user groups. The total revenue for 2019 for Lowell Field was
approximately $1,600.
There would be hard costs associated with the dismantling and demolition of the
chosen facility. There could also be costs incurred to ensure the highest and best
use of the property in order to optimize future property tax revenue. It should
be noted that these costs for implementation have not been budgeted for in
2020; therefore, any cost savings in the 2020 budget that would result from
closing an arena prior to October 2020 (the start of the 2020/2021 winter ice
season) would be offset by these implementation costs for that year.
There was not a significant variance in terms of the projections of long-term
investment requirements required for each of the arenas; therefore, that did not
factor in to the recommendations for this report. It should be noted, however,
that closure of an arena would result in significant savings through deferred
capital investments. There would also be one-time proceeds from the eventual
sale of the property, as well as future property tax revenue; however, those
revenues would likely not materialize within the 2021-2022 window.
The closure and divestment of one (1) of the arenas would result in a cost
reduction of approximately $199,000 in the general operating budget and an
estimated $44,000 decrease in annual revenue (HST not included), netting a
savings of approximately $155,000 annually.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
Input for this report was received from the following:
• City of Saint John Growth and Community Development Services
• City of Saint John Facility Management Department
• City of Saint John Parks and Recreation Department
• Develop Saint John
• City of Saint John Finance and Administrative Services
111
ATTACHMENTS
Site Maps / Property Details:
• Charles Gorman Arena
• Hilton Belyea Arena
• Peter Murray Arena
• Stewart Hurley Arena
-6 -
112
Appendix: Initiative Criteria Evaluation
I
0 :➢. 2 3 4 5
If iinanciiall "Y'arget
Evaluation Notes on Arena Closure:
• Minor impacts to Vibrant, Safe City and Valued Service Delivery possible due to a reduction in
recreational facilities.
Note: Evaluated initiatives that fall within the yellow and green areas should be considered as options to address
the 2021 and 2022 deficit. Initiatives that fall close to the red should only be considered if there are no other
options to address the deficit.
Sustainability Initiatives Evaluated as of December 4, 2019 (Not including Continuous Improvement Items)
1. Passport to Parks
9.
Growth Reserve Fund
2. Lifeguards (Not added to hopper)
10.
Non -Resident Differential Parking Fees
3. Rightsizing Recreation Facilities - Rainbow Park
11.
Monthly Parking Increase
Ice Surface
12.
Parking Ticket Increases
4. Rightsizing Recreation Facilities - Seaside Park
13.
On -Street Parking Increase
Lawn Bowling
14.
Recreation Subsidies
5. Playground Program
15.
Winter Street Maintenance
6. Fire Service Fee Recovery
16.
Economic Development Agency Funding
7. Permit and Development Approval Fees
17.
Arena Closure
Increases
18.
Freeze CPI Adjustments for Inflation
8. Grants & Incentives
19.
Adelaide Street Facility
113
Site Map / Property Details — Charles Gorman Arena:
114
Site Map / Property Details — Hilton Belyea Arena:
115
Site Map / Property Details — Peter Murray Arena:
116
Site Map / Property Details — Stewart Hurley Arena:
117
COUNCIL REPORT
M&C No.
2019-312
Report Date
November 22, 2019
Meeting Date
December 02, 2019
Service Area
Finance and
Administrative Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Low Carbon Economy Fund (LCEF) Agreement- Municipal Buildings
Deep Energy Retrofit (MBDER)
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. HeadCity
Manager
Samir Yammine
Kevin Fudge, Ian Fagan
and Neil Jacobsen
John Collin
RECOMMENDATION
It is recommended that the City enter into the Grant Agreement with Her
Majesty the Queen in Right of Canada, as represented by the Minister of the
Environment who is responsible for the Environment and Climate Change
Canada under the Low Carbon Economy Fund for the Municipal Buildings Deep
Energy Retrofit in the form and upon the terms and conditions as attached; and
that the Mayor and Common Clerk be authorized to execute the said Agreement
EXECUTIVE SUMMARY
The purpose of this report is to seek Common Council's approval to enter into
Grant Agreement with Her Majesty the Queen in Right of Canada, as
represented by the Minister of the Environment who is responsible for the
Environment and Climate Change Canada for the Municipal Buildings Deep
Energy Retrofit.
PREVIOUS RESOLUTION
NA
REPORT
In September 2018, City staff submitted a funding application to Environment
and Climate Change Canada under the Low Carbon Economy Fund (LCEF)
Challenge for the Municipal Buildings Deep Energy Retrofit Project.
118
-2 -
In June 2019, The City received a notification from Environment and Climate
Change Canada that the application was successful and the City of Saint John has
been approved for a grant in the amount of up to $ $2,146,880 or 40% of the
eligible cost toward the City Municipal Buildings Deep Energy Retrofit Project.
As per the agreement, the MBDER project must be completed by March 31,
2022.
The LCEF will be used toward the implementation of Energy Conservation
Measures on selected Municipal and Water Facilities. These measures consist of
the following, but not limited to, Window Replacement, HVAC and Control
Systems Upgrade, light -emitting diode (LED) retrofits and control, heat recovery,
high efficiency heating system, high efficiency motors and pumps, renewable
energy sources, energy monitoring systems, Measurement & Verification Plan,
staff training, etc. Asset and Energy Management division will work with each
facility managers and consultant to develop an action plan as well as list of
measures to be implemented in 2020-2022. These measures will be selected
using the following criteria:
➢ Alignment with asset management policy and capital investment
policy;
➢ High risk assets using adopted risk rating framework to identify
these assets;
➢ Level of impact on service to public and environmental effects.-
Net
ffects;Net present value of asset renewal; and
➢ Greenhouse gas emissions impact.
Description of the Major Phases of Work
This project includes the following main milestones:
1. Energy consultant team engaged through a public request for proposal
process to perform the following assessments and evaluations
o Full inventory of energy consuming systems across targeted
buildings
o Allocation of existing energy usage as compared to utility
baselines
o Identification of energy waste
o Development of energy conservation measures including costing
and approximate construction timelines
2. Develop an Energy Implementation Plan by City staff (project team) in
cooperation with the energy consultant team
119
-3-
3. Implementation of the Energy Conservation Measures on the Selected
buildings in cooperation between the City Staff, Energy Consultant Team,
and Contractor to be selected through public tender process
4. Measurement and Verification (M&V) and GHG emissions verification
work will be performed in cooperation with the City staff and energy
consultant team (ongoing).
o An M&V Plan will be developed and executed in accordance to
the International Performance Measurement and Verification
Protocol (IPMVP) and International Organization for
Standardization (ISO) 14034.
o An energy management and tracking system will be put in place
to manage the building's energy performance.
o Educate and train staff on the new system.
o Monthly presentations and reports on the performance of the
buildings including any deficiencies and recommended
improvements.
Results
The proposed MBDER Project will result in the following benefits to the City:
• Reduce the City energy and operating cost by approximately $450,000
annually
• Reduce the City Infrastructure deficit by over $4 Million through
investment in asset renewal
• Reduce City Capital Expenditure
• Improve the indoor air quality of the building through the installation
state of art technologies for HVAC, lighting, heat recovery system.
• Improve customer service and reliability of asset performance thus
minimizing risks associated with assets failure.
• Reduce GHG emissions by 1500 CO2 Tons or 6.5 % of the City Corporate
Operation from the 2015 baseline
• Showcase the City of Saint John as an example of environmental and
economic sustainability
STRATEGIC ALIGNMENT
The MBDER Project is clearly aligned with the following City plans, policies,
Council Priorities, programs and practices:
1- City of Saint John Corporate GHG and Energy Action plan to reduce GHG
emissions by 30% by 2025 and achieve carbon neutral by 2040.
120
-4-
2- City of Saint John Asset Management Policy objectives to apply risk-based
decision and life -cycle costing principles to prioritize capital investment, identify
alternative measures, facilitate the leveraging of infrastructure funding from
external sources, and improve the reliability of customer service.
3. City of Saint John Capital Investment Policy
SERVICE AND FINANCIAL OUTCOMES
The City of Saint John will receive a total grant up to $2,146,880 or 40% of the
eligible cost toward the City Municipal Buildings Deep Energy Retrofit Project.
The total cost for the project is approximately $5 Million. City contribution is
approximately $3 Million. Funding is approved under the Capital Budget 2020
and 2021 with the remaining fund to be approved under 2022 Capital Budget.
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The City of Saint John Finance and Administrative Services and Legal
Departments have reviewed the attached Agreement and are satisfied with the
recommendation as they pertain to their respective areas of services.
ATTACHMENTS
1 - Low Carbon Economy Fund Grant Agreement - Municipal Buildings Deep
Energy Retrofit Project.
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EXECUTION COPY
CHALLENGE FUNDING AGREEMENT REGARDING MUNICIPAL RETROFIT PROJECT
This Challenge Funding Agreement (the "Agreement") is made in duplicate as of the date
oflast signature (the "Effective 0ehm'').
BEnWEEN� HER MAJESTY THE QUEEN |NRIGHT OFCANADA, aorepresented by
the Minister ofthe Environment who iaresponsible for Environment and
Climate Change Canada (~Canudo^urthe ''M|n|oter')
AND THE CITY OFSAINT JOHN, incorporated byRoyal Charter aoconfirmed
and amended from time \otime bythe Acts ofthe Legislative Assembly uf
New Brunswick ("Recipient"),
1The Government ofCanada announced inBudget 2016 and 2017 the Low Carbon
Economy Fund of $2 billion over five years to support provincial and territorial mitigation
action under the Pan -Canadian Framework on Clean Growth and Climate Change and work
towards transitioning Canada toward more sustainable economic growth and meeting or
exceeding the Government o[Canada's target under the Paris Agreement;
2. The Minister has established and isresponsible for the Low Carbon Economy Challenge
("Program"), one of two funds under the Low Carbon Economy Fund;
3. This Agreement supports the objectives ofthe Government ofCanada nfreducing
greenhouse gas emissions, transitioning toalow carbon economy and achieving clean
growth outcomes;
4� The Government of Canada's contribution will enable the Recipient to invest in projects that
will materially reduce carbon enmissionaunder the Pan-CamudianFramework onClean
Growth, and Climate Change that contribute to Canada's first Nationally Determined
Contribution under the Paris Agmement, and support the advancement of new technologies
and Canada's long-term transition towards cleaner growth through the decarbonization of
the economy;
5. The Recipient has submitted VuCanada aproposal for the funding ofits Project as outlined
in Schedule B of this Agreement, which qualifies for support under the Program;
0� Canada wishes to provide a financial contribution to the Recipient towards the Eligible
Expenditures of the Recipient's Project in the manner and on the terms and conditions set
out inthis Agreement;
NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein,
the Parties agree as follows:
The purpose of this Agreement is to establish the terms and conditions pursuant to which
Canada will provide funding tothe Recipient towards the Eligible Expenditures ofthe
Project that iadescribed inSchedule B.
INTERPRETATION AND DEFINITIONS
2.1 INTERPRETATION
For the purposes ofinterpretation:
u> words in the singular include the plural and viceverse
b) words inone gender include all genders;
c} the headings donot form part ofthe Agreement; they are for reference only and shall
not affect the interpretation ofthe Agreement;
d) any reference tmdo|laraorourrencyahaUbek`Canadianmo||amamdcun*noy:ond
e) "include", "includes" and "including" shall not denote an exhaustive list.
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2.2 DEFINITIONS
|naddition Uzthe terms defined in the recitals and elsewhere inthis Agreement, a
capitalized term has the meaning given wohinthis Subsection.
"Agreement" means this funding agreement and all its schedules, and any amending
agreement entered into bythe Parties inaccordance with this Agreement.
"Agreement End Dab*^' means September 30, 2022,
"Agreement Management Committee" means the committee established imaccordance
with Subsection 8.2.
"Asset" means any real orpersonal property orimmovable ormovable property acquired,
purchaood, monstruoted, rehabilitated or improved, inwhole orin part, with funds
contributed byCanada under the terms and conditions ofthis Agreement.
"Asset Disposal Period" means the period commencing from the Effective Date and
ending five (5)years after the Project Completion Date.
"Communications Activities" include, but are not limited to, public or media events or
ceremonies including key milestone events, news releases, reports, web and social media
products or postings, blogs, news conferences, public notices, physical and digital signs,
publications, success stories and vignettes, photos, videos, multi -media content,
advertising campaigns, awareness campaigns, editorials, multi -media products, Joint
Communications and all related communication materials under this Agreement.
'^Contnact" means an agreement between the Recipient and a Third Party whereby the
Third Party agrees to supply a product or service related to the Project in return for
financial consideration.
"Costs"mean, for the purposes ofSubparagraph 4.2b>infthe Agreement and
Schedule A.2nfthe Agreement, any and all costs incurred bythe Recipient In the
implementation of the Project associated with a withdrawn or cancelled Project, in whole
or in part, including Eligible Expenditures incurred by the Recipient uptothe date o/
withdrawal or cancellation, ineligible expenditures as outlined in said Schedule A.2 of the
Agreement, and any other costs incurred bythe Recipient associated with the withdrawal
or cancellation including |ego|, auditing mrother professional expenses.
"Declaration of Completion" means a declaration in the form substantially prescribed in
Schedule F.
"Effective Date" means the date onwhich the last Party tosign this Agreement signed it
"Eligible Expenditures" means those costs incurred and paid bythe Recipient between
the Effective Date and Final Claim Date that are directly related to the Project and which
are considered eligible byCanada, osset out inSchedule A.1 ofthe Agreement.
"Final Claim Date" means June 3o.2022.
"Fiscal Year" means the period beginning April 1 of a year and ending March 31 of the
following year,
"Incrementality" means that 1) federal funding received under the Program does not
displace the Recipient's spending on Project funded by the Program, and 2) greenhouse
gas (GHG) emissions reductions wou:ld be achieved relative to existing, planned or
announced programming where GHGsare already counted.
"In -Kind Contribution" means non -monetary contributions of goods, services or other
support provided by the Recipient or to the Recipient for the Project, for which fair market
value inassigned but for which nopayment occurs.
"Joint Communications" are events, news releases, and signage that relate to the
promotion of the Program and/or Project and are collaboratively developed and approved
byCanada and the Recipient, and are not operational innature.
"Pam-CanudionFramework Programs" means the Low Carbon Economy Leadership
Fund, the Green Infrastructure funding stream under the Investing inCanada
Infrastructure Program, the Disaster Mitigation and Adaptation Fund, and the Clean
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Technology funding through the Innovation and Skills Plan
"Parties" means Canada and the Recipient collectively and "'Party" means anyone of
them.
"Program"means the federal Low Carbon Economy Challenge, one oftwo funds under
the Low Carbon Economy Fund.
"Program Information Management System" or"System^ means asecure, self-
contained, collaborative Web application, developed and owned by Canada for the
e|f-oontainmd.00i|ahoradvoVVobopm|ioatimmdewe|opodmndmwnedbyCmnmdmforthe
management and monitoring of federal funding agreements, or any successor application.
"Project" means the project outlined in Schedule B tuthis Agreement and approved for
funding by Canada prior to the signing of this Agreement, and includes any subsequent
changes to the Recipient's Project which may form pad of this Agreement in eonordenoo
with Subsection 4.5ofthis Agreement.
"P�oject Completion Date" means the date upon which all funded activities of the Project
under this Agreement have been completed and performed!, which date shall be no later
than March 31.2O22.
"Project Component" means any of the components of the Project that are described in
Schedule B.
"Third Party" means any person or other legal entity, other than a Party, who participates
inthe implementation ofthe Project bymeans nfaContract.
"Total Financial Assistance" means funding from all sources, including funding from the
Recipient and federal, provincial, territorial, and municipal governments aawell amfunding
from all other sources, including In -Kind Contributions.
2.3 SCHEDULES
The following schedules are attached to, and form part of this Agreement:
Schedule A—Eligible and Ineligible Expenditures
GoheduleB—ThePnojoot
Schedule C—Reporting Requirements
Snhedu|eD—Certificate(s) of Compliance for Payment Requests
Sohedu|aE—CommunioationaPmt000|
Schedule F—Dev|anaUon of Completion
1 TERM OF THE AGREEMENT
This Agreement shall come into effect onthe Effective Date and shall expire onthe
Agreement End Date, unless itisterminated earlier inaccordance with the terms oithis
Agreement.
4` OBLIGATIONS OF THE PARTIES
4.1 CONTRIBUTION BY CANADA
a> Canada agrees to pay a contribution to the Recipient of not more than forty percent
(40%) of the total Eligible Expenditures for the Project but only up to a maximum of
two million, one hundred and forty six thousand, eight hundred and eighty dollars
($2.146,880).
b) Canada shall pay the contribution in accordance with the terms and conditions of this
Agreement and the Fiscal Year breakdown inSchedule B.2oJSchedule B.
u} |fCanada's total contribution towards the Project exceeds forty percent (4O96)ofthe
Project's total Eligible Expenditures orif the Total Financial Assistance received or
due in respect of the total Project costs exceeds one hundred percent (100%) thereof,
Canada may recover the excess from the Recipient orreduce its contribution hyan
amount equal w»the excess.
d> The Parties, acknowledge that Canada's role in the Project is limited to making a
financial contribution to the Recipient for the Project towards Eligible Expenditures
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and participating inthe Agreement Management Committee, if established in
accordance with Subsection 62,Canada shall have noinvolvement inthe
implementation orthe Project orits operation. Canada ioneither odecision-maker nor
an administrator in relation to the Project.
4.2 OBLIGATIONS OFTHE RECIPIENT
a) The Recipient is entirely responsible for the complete, diligent, and timely performance
of its obligations under this Agreement and implementation of the Project and ohe||
carry out the Project within the costs and deadlines specified in this Agreement, in
accordance with the terms and conditions ofthis Agreement.
b) The Recipient shall comply with all applicable federal and pruvino|a|lterr|toria| laws and
regulations, municipal by-laws, orders and rules and all requirements of regulatory
bodies having jurisdiction over the subject matter ofthe Project.
c} The Recipient shall beentirely responsible for:
i any Costs,
ii. any cost overruns related buthe Project,
iii. any costs associated with e change 1othe Project that is not approved by
Oanado'and
iv. any costs related tothe Project that dnnot meet the |nrnamenta|ity,
d> The Recipient acknowledges that Canada's Program funding is not intended to replace
ordisplace existing sources offunding for the PnojmuL
The Recipient acknowledges that Canada's Program funding is and remains the sole
amuncm of funding from the Pan -Canadian Framework Programs for the Project.
f) The Recipient shall inform Canada promptly of the Total Financial Assistance received
ordue for the Project.
g> The Recipient shall repay to Canada any amount received from Canada under this
Agreement that ia not paid towards Eligible Expenditunea, such as ineligible
expenditures as set out in Schedule A to this Agreement, unexpended funding, and
overpayments made under this Agreement. The Recipient shall also repay to Canada
any amount received from Canada for Costs.
h) The Recipient shall ensure the ongoing operabon, nmminhenanm*, and repair ofany
Asset in relation to the Project as per appropriate standards, during the Asset 0impuuai
Period.
i> Canada may request that the Recipient declare to Canada any amounts owing to the
federal Crown, under legislation or contribution agreements that constitute an overdue
debt. The Recipient recognizes that any such amount owing is a debt due to the
federal Crown and maybe subject to compensation orset-off by Canada in
accordance with Section 2O
j) If at any time during the term of this Agreement, the Recipient becomes aware of a
fact nrevent that may compromise ordelay wholly, orinpart, the Project, the
Recipient shall notify Canada and inform the Agreement Management Comnni1teo, if
established, within no more than ten (10) business days of beconming aware of that fact
or event,
K) Upon Canada's request during the term of the Agreement, the Recipient shall promptly
provide Canada with updates xzthe Project status and the Project expenditures and
forecasts set out inSchedule B.
|> The Recipient shall participate inthe Agreement Management Committee, if
established inaccordance with Subsection 0.2ofthis Agreement.
m) The Recipient shall provide access to Canada to the Project site(s) to conduct site
visits upon Canada giving the Recipient reasonable noticeof the visit, which notice
shall not bwless than thirty (3U)days.
n) The Recipient agrees to forego any ownership rights to greenhouse gas ("GHG")
emissions reductions, avnidamoesorremovals (^mduohona'')arising directly from the
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Project, as a result of Canada's funding under this Agreement. Furthermore, the
Recipient shall not seek eligibility for these GI-lG reductions under existing or future
offset credit programs. Notwithstanding, the Recipient shall maintain a record of the
GHG reductions arising directly from the Project and report them to Canada in
accordance with this Agreement. For clarity purposes, nothing in this paragraph affects
the Recipient's ability to claim credits or allowances that the Recipient may generate or
benefit from as a result of reduced compliance obligations under existing or planned
carbon pricing or cap -and -trade systems for GFIG emissions.
4.3 PAYMENTS SUBJECT TO AN APPROPRIATION
Pursuant to section 4.0 of the Financial Administration Act (R.S.C. 1985, c. F-11), the
payment of monies under this Agreement is subject to there being an appropriation for the
Fiscal Year in which the payment is to be made.
Notwithstanding any other provision of this Agreement, Canada may reduce or cancel its
financial contribution in the event of reductions in appropriations or departmental funding
levels are changed by Parliament during the term of this Agreement. In the event that
Canada reduces or cancels its financial contribution the maximum amount payable
pursuant to Paragraph 4.1 a) of this Agreement shall be reduced accordingly. Canada
shall promptly advise the Recipient of any reduction or termination of funding once it
becomes aware of any such situation. Canada shall not be liable for any direct, indirect,
consequential, exemplary or punitive damages, regardless of the form of action, whether
in contract, tort or extracontractual liability, or otherwise, arising from any such reduction
or termination of funding,
4.4 FISCAL YEAR BUDGETING
a) If the actual amount payable by Canada in respect of any Fiscal Year of the Project is
less than the estimated amount per Fiscal Year set out in Schedule 13,2 of Schedule B,
the Recipient may request that Canada re -allocate the difference between the two
amounts to a subsequent Fiscal Year. Subject to Subsection 4.3, Canada agrees to
make reasonable efforts to accommodate the Recipient's request, The Recipient
acknowledges that requests for re -allocation of Project funding shall require
appropriation adjustments or federal Crown approvals.
b) In the event that any requested re -allocation of Project funding is not approved, the
amount of Canada's contribution payable pursuant to Paragraph 41 a) may be
reduced by the amount of the requested re -allocation. If the contribution payable by
Canada pursuant to Paragraph 4.1 a) is so reduced, the Parties agree to review the
effects of such reduction on the overall implementation of the Project and to adjust the
terms and conditions of this Agreement as appropriate,
a) The Recipient agrees that any change to the Project shall require Canada's approval.
b) In order to seek Canada's approval, the Recipient shall notify Canada by submitting to
Canada a written request for the proposed change to the Project. The Recipient shall
also provide to Canada information in support of the requested change within twenty
(20) days of the date of the Recipient's submitted request.
c) The Recipient shall provide, at Canada's request and to Canada's satisfaction, any
additional information related to the proposed change to the Project within the timeline
requested by Canada, which timeline shall be reasonable,
d) If Canada has approved a change to the Project and has determined that the change
is significant, the Parties' signatories to this Agreement shall sign a corresponding
amending agreement to this Agreement in order to give the change effect. If Canada
has approved a change and has determined that the change is minor in nature, the
representatives of the Parties identified in Section, 33 of the Agreement shall execute
a corresponding amending agreement to the Agreement to give the change effect.
4.6 INABILITY TO COMPLETE PROJECT WITHIN ANTICIPATED PROJECT COSTS AND
FUNDING
If, at any time during the term of this Agreement, one of the Parties determines that it will
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not bepossible hncomplete the Project unless the Recipient expends amounts inexcess
ofthe funding available \oit, the Party having determined this is the case shall
immediately notify the other Party of that determination and Canada may suspend its
funding obligation. The Recipient shall, within thirty (30) days of a request from Canada,
provide a summary of the measures that the Recipient proposes to undertake to remedy
the shortfall. IfCanada ianot satisfied that the measures proposed shall beadequate m
remedy the shortfall, then Canada may, without limiting any other rights or remedies it may
have etlaw, exercise any one ofthe remedies listed inSection 16.
4.7 INABILITY TO COMPLETE PROJECT
If, atany time during the term ofthis Agreement, one ofthe Parties determines that it will
not be possible to complete the Project for any reason, the Party having determined this is
the case shall immediately notify the other Party of that determination and Canada may
suspend its funding obligation. The Recipient shall, within thirty (30) business days of a
requenihnmCenada'ProvideasummaryofihemeoeuresdhattheRecipientpropomeaio
undertake to remedy the situation. If Canada is not satisfied that the measures proposed
will be adequate to remedy the situation, then Canada may, without limiting any other
rights or remedies it may have at law, d*depa a default pursuant to Section 15,
a> Condition(s)
The Recipient agrees that Canada has moobligation iomake payments under this
Agreement unless and until:
h. the Recipient demonstrates, within 45business days ofthe Effective Date of
this Agreement, that hhas secured the funds necessary hocomplete the
Project.
b) Remedy
|nthe event that the Recipient isunable |omeet the conditions set out in
Paragraph 4.8a). Canada may terminate this Agreement mtany time. Canada shall not
be liable for any direct, indirect, consequential, exemplary or punitive damages,
regardless of the form of action, whether in contract, tort or extracontractual liability, or
otherwise, arising from the termination nfthis Agreement.
5. RECIPIENT REPRESENTATIONS AND WARRANTIES
The Recipient represents and warrants toCanada that:
u) the Recipient has the capacity and authority to sign this Agreement as duly authorized
b9resolution ofthe Recipient's Common Council dated November 18.2O19;
b> the Recipient has the capacity and authority hocarry out the Project;
u> the Recipient has the requisite power toown the Assets;
d) this Agreement constitutes a legally binding obligation of the Recipient, enforceable
against itinaccordance with its terms and conditions;
o) all information submitted boCanada asset out inthis Agreement Is true, accurate, and
was prepared |ngood faith tothe best ofIts ability, skill, and judgment;
q any individual, corporation or organization that the Recipient has hired, for payment,
who undertakes huspeak hmorcorrespond with any employee nrother person
representing Canada onthe Recipient's behalf, concerning any matter relating 0othe
contribution under this Agreement orany benefit hereunder and who Is required to be
registered pursuant to the federal Lobbying Act, is registered pursuant to that Act;
g> the Recipient has not and will not make a payment or other compensation that is
contingent upon or is calculated upon the contribution hereunder or the negotiation of
the whole or any part of the terms and conditions of this Agreement to any individual,
or corporation or organization with which that individual is engaged in doing business
with, who imregistered pursuant tothe federal Lobbying Ac/;
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h) there are noactions, suits, investigations nrother proceedings pending or, hnthe
knowledge of the Recipient, threatened and there ionoorder, judgment mdecree of
any court o'governmental agency which could materially and adversely affect the
Recipient's ability to carry out the activities contemplated by this Agreement. The
Recipient shall inform Canada immediately if any such action orproceedings are
threatened or brought during the term of this Agreement; and
|) the Recipient |aingood standing under the laws ofthe jurisdiction inwhich it is
required to be registered.
AGREEMENT MANAGEMENT
6.1 AGREEMENT MANAGEMENT REPRESENTATIVES
a) The Parties have an obligation to appoint a representative from their respective
organization for the ongoing administration of the Agreement.
b) Each Party shall notify the other ofthe appointment within thirty (3O)days ofthe
Effective Date ofthe Agreement. Any change mthe appointment shall be
communicated to the other Party in writing within thirty (30) days of the change,
n> The Recipient's representative, ortheir designated alternate, shall have decision-
making authority related to the Project and be available within no more than ten (10)
business days to provide Canada with information pertaining to the progress of the
Project, including Project activities, expenditures, communication events, and any
other relevant information aarequired under this Agreement.
11-11F�Tlej :44:11 LTJ 1:4 old ifi Ell 0 Eli] W1 M47 IR9671 H MUM
Canada may, at its discretion, establish emAgreement Management Committee to monitor
this Agreement. The Parties shall use the terms ofreference for the Agreement
Management Committee developed byCanada and each Party shall appoint m
representative from their respective organization to participate on the Agreement
Management Committee. Canada shall determine the mandate cNthe Agreement
Management Committee.
PROCUREMENT OF GOODS AND SERVICES
7.1 AWARDING OF CONTRACTS
o) The Recipient shall ensure that Contracts are awarded |muway that is transparent,
competitive, consistent with value -for -money principles, or in a manner otherwise
acceptable to Canada, and if applicable, in accordance with the Canadian Free Trade
Agreement and international trade agreements.
b} VCanada determines that the Recipient has awarded oContract ioamanner that is
not in compliance with the foregoing, upon notification to the Recipient, Canada may
consider the expenditures associated with the Contract ioboineligible.
The Recipient shall ensure that all Contracts are consistent with, and incorporate, the
relevant provisions ofthis Agreement. More specifically but without limiting the generality
of the foregoing, the Recipient agrees to include terms and conditions in all Contracts to
ensure that:
a) the Third Party shall keep proper and accurate financial accounts and mcn/de,
including but not limited to its contracts, invoices, statements, receipts, and vouchers,
in respect of the Project for at least six (6) years after the Agreement End Date and
that the Recipient has the contractual right toaudit them;
b) all applicable labour, envimmmentu|, and human rights legislation are respected; and
o) Cunada, the Auditor General of Canada, and their designated representatives, to the
extent permitted by law, shall at all times be permitted to inspect the terms and
conditions of the Contract and any records and accounts respecting the Project and
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shall have free access to the Project sites and to any Project -related documentation
relevant for the purpose ofaudit.
8. IMPACT ASSESSMENT
8.1 The Recipient represents and warrants that the Project isnot a"designated project" as
defined in section 2 of the Impact Assessment Act (IAA) and is not a "project" as defined: in
section 81 of the IAA.
8.2 Canada's funding under this Agreement is conditional upon Canada being satisfied that
Canada's obligations, if any, under the IAA and applicable agreements between Canada
and Indigenous groups are met.
g. INDIGENOUS CONSULTATION
Canada's funding under this Agreement isconditional upon Canada meeting any legal
duty to consult, and if applicable any obligation to accommodate Indigenous groups,
Canada may itself have inrelation tothe Project.
10. CLAIMS AND PAYMENTS
10.1 PAYMENT CONDITIONS
m) Canada shall not pay interest for failing tomake opayment under this Agreement.
b) Canada shall not pay any claims submitted after the Final Claim Date, unless
otherwise accepted byCanada.
o) Canada shall not pay any claims until the requ,irements under Subsection 4.8, and
Sections and 9, if applicable, are, in Canada's opinion, satisfied tothe extent
possible atthe date the claim iosubmitted \oCanada.
d) Canada shall not pay any claims until the reporting reqluirements under Schedule C
are met and Canada has accepted the information, and any audit requirements in
Section 12 and any communications requirements outlined in Schedule E are met at
the time the claim iasubmitted <nCanada.
10.2 PROGRESS CLAIMS
a} |meach Fiscal Year, the Recipient shall submit 6oCanada, ataminimum, unless
otherwise agreed to by Canada, requests for payment on a quarterly basis covering
the Recipient's Eligible Expenditures in a format provided by and acceptable to
Canada. Each request for payment must include the following:
I. an appropriate Certificate of Compliance for Payment Requests in accordance
with Schedule D. regarding the claimed Eligible Expenditures, Each request
for payment and Certificate ofCompliance for Payment Requests shall b
signed bythe chief financial officer ordelegated financial officer, designated in
writing by the Recipient, confirming that the claimed Eligible Expenditures
were incurred and paid;
abreakdown ofEligible Expenditures claimed inthe form provided byCanada,
and any supporting documentation, including detailed invoices and/or any
other documentation required for Eligible Expenditures claimed that ia
satisfactory 0zCanada�and
iii, any reporting due in accordance with Schedule C.
b) Canada shall make apayment upon review and acceptance ofa request for payment,
subject to the terms and conditions of this Agreement.
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10.3 FINAL CLAIM
The Recipient shall submit a final claim to Canada by the Final Claim Date covering the
Recipient's Eligible Expenditures in a form acceptable to Canada. The final claim must
include:
a) all information required under Subsection 10.2;
b) acompleted Declaration ofCompletion inaccordance wi0hSchedWeF;mnd
c) upon request by Canada, any of the documents referenced in Schedule F.
10.4 FINAL ADJUSTMENTS
Upon receipt of the final claim, but before issuiing the final payment, the Parties will jointly
carry out afinal reconciliation ufall claims and payments inrespect ofthe Project and!
make any adjustments required inthe circumstances.
10.5 WITHHOLDING, OF CONTRIBUTION
Canada may withheld upNtwenty five percent (25%)nfits contribution towards Eligible
Expenditures claimed under this Agreement. Any amount withheld by Canada shall be
released when the final adjustments have been completed under Subsection 10.4 and the
Recipient fulfills all its obligations under this Agreement.
a) Prior tosigning the Declaration o[Completion, the Recipient shall request Canada's
written confirmation of the list of relevant documents that the Recipient shall provide
with its Declaration ofCompletion.
b) The Declaration o/Completion must bwsigned byanauthorized official oythe
Recipient that isdeemed acceptable byCanada, and itmust list all relevant
documents that Canada deemed Vobenecessary inits written confirmation mthe
10.7 PROGRAM INFORMATION MANAGEMENT SYSTEM
a)The Recipient shall use the System, orany another process designated by Canada to
fulfill the obligations of the Recipient under this Agreement, including but not limited to
Sections 10, 11 and 12.
b) The System will be available to the Recipient in both official languages and the
Recipient can report inthe official language cdits choice. Modifications and
improvements to the System shall be made by Canada at its own expense. Canada
hereby grants Vothe Recipient the right iuuse the System for the purposes herein
described. All intellectual property rights |nthe System vest inCanada.
u) Subject to Canada's approval, the Recipient may fulfill the requirements outlined in
this Subsection byusing analternate approach that may include apaper-based
documentation system.
11. REPORTING
a) The Recipient shall comply with and complete the Project and performance reporting
requirements outlined in Schedule C.
b> The Recipient shall submit aprogress report tnCanada onosemi-annual basis, at
minimum. Unless otherwise agreed 1obyCanada, the Recipient shall submit the first
report no later than October 30 covering the period from April 1 to September 30, and
a second report no later than June 30 covering the period from October 1 to March 31
in a format provided by and acceptable to Canada and in accordance with Schedule
C.I.Canada reserves the right to request more frequent progress reporting, such as
quarterly reports, nrany information relevant tothe Project.
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c) The Recipient shall submit 0oCanada afinal report ineformat provided byand
acceptable to Canada, with the final claim in accordance with Schedule C.2.
12.1 RECIPIENT AUDIT
a) Canada may conduct periodic audits of the Recipient's compliance with the terms and
conditions of this Agreement, including without restriction, compliance with the
financial provisions, during the term ofthe Agreement and upmtwo (2)years after
the Agreement End Date. Canada may direct that anaudit becarried out byen
independent accredited auditor or other representative appointed by Canada. The
Recipient shall cooperate with Canada's epmaoniativoa, emp|oyeas, or contractors
relative to any such audit, providing at no cost reasonable and timely access to the
Project sites, the Recipient's facilities, and any Project -related documentation for the
purposes of audit, evaluation, inspection and monitoring compliance with this
Agreement. Canada shall bear the costs ufaudits undertaken pursuant tothis clause.
b) The Recipient agrees to inform Canada of any audit that has been conducted on the
use of contribution funding, under this Agreement at the Project or Program level, and
\oprovide Canada with all relevant audit reports.
12.2 AUDITOR GENERAL OF CANADA
The Recipient acknowledges that the Auditor General ofCanada may, tothe extent
permitted by law and after notification to the Recipient, conduct an inquiry under the
authority nfsubsection 7,1(1)ofthe federal Auditor General Act respecting the Recipient's
compliance with the terms and conditions of this Agreement or an inquiry into the
Recipient's procedures to measure and report on performance with respect to this
Agreement. The Recipient shall cooperate with the Auditor General and his or her
repnssentoUpno, emp|oy*as, or contractors relative to any such inquiry and grant them
access to the Recipient's documents, records, and premises for purposes of any such
inquiry. The Auditor General may discuss any concerns raised in such an inquiry with the
Recipient and with Canada. The results may be reported to Parliament in a report of the
Auditor General.
Without prejudice huCanada's right boexercise any remedy available bylaw orpursuant kz
this Agreement amaresult oyadefault onthe part nfthe Recipient, where anaudit ofthe
Recipient reveals an element of nan-compliance with the terms and conditions of this
Agreement, or if the Recipient denies access to documents, records, or premises, or fails
to provide the necessary cooperation or assistance to conduct an audit, the Recipient may
be required to develop and provide Canada with a plan of corrective action within thirty
(30) days of receiving notice of the non-compliance. Such s plan must outline the
procedures to enact corrective measures that are acceptable to Canada, and must be
accompanied byawritten undertaking onthe part ofthe Recipient tuimplement the plan.
12.4 RECORD KEEPING
The Recipient shall keep proper and accurate financial accounts and records, including
but not limited iuits Contracts, invoices, ntatemonts, receipts, and vouchers, imrespect of
the Project, for at least six (6) years after the Agreement End Date.
12.5 EVALUATION
Canada may engage inanevaluation of the Program for the purposes ofassessing its
continued relevance and impact. The Recipient shall cooperate with the work carried out
by Canada, its representative, employees, or contractors relative to any such evaluation
and agrees to provide Project -related information to Canada, at no cost to Canada, over
the term ofthis Agreement and uptoone year after the Agreement End Date. Canada
shall pay the costs of evaluations undertaken pursuant to this Subsection. All evaluation
results may bemade available tothe public.
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13. INTELLECTUAL PROPERTY
u) All intellectual property rights inany materials orworks (^Mmtehabs")that arise out of
orunder this Agreement shall beowned bythe Recipient orbyuthird party, asset out
in an agreement between the Recipient and such third party.
J) The Recipient will obtain the necessary authorizations, unneeded, for the
implementation of the Project, from third parties who may own the intellectual property
rights or other rights in respect of the Project. Canada shall assume no liability in
respect of claims from any third party in relation to such rights and to the Agreement.
o} The Recipient hereby grants to Canada a non-exclusive, unconditional, fully -paid and
mya|ty-frae, perpetual, worldwide, and irrevocable licence house and exercise all
intellectual property rights in the Materials that vest in the Recipient under Paragraph
13 a) of this Agreement, for any public purpose except commercial exploitation in
competition with the Recipient. Canada's licence includes the right to use, produce,
publish, translate, reproduce, adapt, modify, disclose, share, distribute and broadcast
the intellectual property.
14. ASSETS
e> Notwithstanding any other provision ofthis Agreement, the Recipient shall preserve,
maintain, and use any Assets for the purposes ofthe Project, and shallnot dispose of
any Asset during the Asset Disposal Period, unless the Recipient notifies Canada in
writing and Canada consents tothe Asset's disposal.
b) Unless otherwise agreed to by Canada, upon alternate use, lease or disposal of any
Asset, including selling, encumbering or charging of an Asset, whether directly or
indirectly, during the Asset Disposal Period, the Recipient shall reimburse Canada, as
determined by Canada, in whole or in part, an amount of funds contributed by Canada
iothe Asset under this Agreement.
15, DEFAULT
Canada may declare ado/ ult under this Agreement ifany o[the following events occur:
a) The Recipient has not complied with one nrmore ofthe terms orconditions ofthis
Agreement;
b) The Recipient has not completed the Project inaccordance with the terms and
conditions ofthis Agreement;
n) the Recipient has submitted false or misleading information to Canada or has made a
false or misleading representation in respect of the Project or any matter related to this
Agreement, except for an error in good faith, demonstration of which is incumbent on
the Recipient, ioCanada's satisfaction;
d) the Recipient has neglected or failed to pay Canada any amount due in accordance
with this Agreement;
e) the Recipient becomes insolvent, commits an act of bankruptcy, has a bankruptcy
order made against it, makes an assignment to the benefit of creditors, takes the
benefit of a statute relating to bankrupt and insolvent debtors, goes into receivership or
bankruptcy, ceases tnactively carry onabusiness, oriewound upordissolved.
10.1 |fCanada declares anevent ofdefault has occurred, then Canada may, in, addition toany
other remedy provided bylaw orpursuant tothis Agreement, exercise one nrmore ufthe
following remedies:
e) Where Canada determines that the Recipient's default iscapable ofcure and that e
delay for these purposes is appropriate, the Minister reserves the right to send a
written notice of default to the Recipient specifying a cure period of no fewer than
twenty (20) days from the date of the Recipient's deemed receipt of the notice and
requiring that the Recipient provide to Canada with proof of the cure within that delay;
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If the Recipient fails to cure the default and provide Canada with proof of cure within
the specified period, Canada may give the Recipient written notice nfiem:inahonof
this Agreement, and require the Recipient hnreimburse all orpart ofCanada's
contribution disbursed, with interest, calculated in accordance with the Interestand
Administration Charges Regulations, from the date ofdemand for reimbursement, and
also to exercise any other remedy provided by law that Canada deems appropriate;
b> Suspend the payment of any amount in respect of Canada's contribution, regardless
ofwhether the amommis owing prior tourafter the date ofsuch suspension; or
q Immediately terminate this Agreement bymeans ufa written notice ofdefault and
termination given to the Recipient, and also to exercise any other remedy provided by
law that Canada deems appropriate, including requiring the Recipient to reimburse all
or part of the Canada's contribution disbursed, with interest, calculated in accordance
with the Interest and Administration Charges Regulations, from the date of demand
for reimbursement.
16.2 Notwithstanding this Section of the Agreement, the occurrence ofanevent of default listed
inParagraph 15d}shall automatically trigger adefault under this Agreement, without any
further notice mthe Recipient,
At any time before the completion of the Project, Canada may, by giving notice in writing
to the Recipient, terminate this Agreement. The notice of termination shall give the
Recipient thirty (30) days' prior notice of the termination. Subject to the maximum amount
of Canada's contribution and the terms, conditions, and limitations of this Agreement,
Canada shall reimburse the Recipient for reasonable Eligible Expenditures incurred bythe
Recipient for the purpose of the Project up until the end of the said notice period, including
any reasonable costs incurred related to the termination of the Agreement. The Recipient
ahe|| cause any Contracts related to the Pnojooi, including employment Contracts when
feasible, to be on terms that will minimize its own cancellation costs and Canada's costs.
1& LIMITATION OFLIABILITY AND INDEMNIFICATION
|nthis section, ^Pmrson includes, without limitation, aperson, the Recipient, aThird Party,
a corporation, or any other legal entity, and their officers, servants, employees, agents or
mandataries.
18.2 LIMITATION OF LIABILITY
|nnoevent shall Canada, its servants, employees oragentsbaheld liable for any
damages in contract, tort (including, negligence), extracontractual liability or otherwise, for
a) any injury to any Person, including, but not limited to, death, economic loss or
infringement ofrights,
b> any damage toorloss ordestruction ofproperty ofany Person, ur
c> any obligation of any Person, including, but not limited to, any obligation arising from a
loan, lease o,other long term obligation,
in relation to this Agreement or the Project.
18.3 INDEMNIFICATION
The Recipient shalli at all times indemnify and save harmless Canada, and its servants,
employees, and agents, from and against all actions, claims, demands, losses, costs,
damages, suits or other proceedings, whether in contract, tort (including negligence),
extracontractual liability orotherwise, by whomsoever brought orpmsoouted!, in any
manner based upon oroccasioned by:
o) any injury toany Person, including, but not limited to, death, economic loss orany
infringement of rights,
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h) any damage toorloss ordestruction ofproperty ofany Person, o,
o) any obligation of any Person, including, but not limited to, any obligation arising from a
loan, lease or other long term obligation,
in relation to this Agreement, or the Project, except to the extent to which such actions,
claims, demands, losses, costs, damages, suits or other proceedings are caused by the
negligence orbreach of the Agreement byeservant, anemployee oragent ofCanada in
the performance ofhis orher duties,
19. DISPUTE RESOLUTION
o> The Parties shall keep each other informed of any issue that could be contentious by
providing written notice as well as information relevant to the issue to the other Party.
The Parties shall, ingood faith and reasonably, make best efforts 10resolve the issue
andsha||havabwmnty(2O)buuinemedaye[o||wwin0paoeipiofamotionduhngwhiohto
examine and discuss the issue with a view to resolving it. Following the twenty (20)
business day period, the Parties shall have no more than fifteen (15) business days
during which 0ocome tuadecision with respect Nthe issue.
b> Any payments related mthe issue indispute shall besuspended, together with the
obligations related |osuch issue, pending resolution.
c) The Parties agree that nothing in this section shall affect, alter mmodify the rights of
Canada to terminate this Agreement.
Without limiting the scope ofthe set-off orcompensation rights available 0othe federal
Crown atcommon law orinthe Civil Code ofOv6beo 'c6R.under the
Financial Administration Act (R.S.C..1985'c.F-11)orotherwise, Canada may:
a) set-off orseek compensation against any portion ofthe contribution that ispayable {o
the Recipient pursuant iothis Agreement, any amount that the Recipient owes mthe
federal Cmwn under legislation orany other agreement ofany Wnd�and
W set-off orseek compensation against any amounts that are owed h/Canada bythe
Recipient, any amount that ispayable bythe federal Crown under legis liaUonorany
other agreements m(any kind tothe Recipient.
Any amount owed to Canada under this Agreement by the Recipient shall constitute a
debt due tnthe federal Crown, which the Recipient shall reimburse b»Canada forthwith on
demand.
Debts due mthe federal Crown bythe Recipient shall accrue interest inaccordance with
the federal Interest and Administrative Charges Regulations (SOR/8 -188).
23. DECLARATION OPNOPFQNCIPAL-AGENT'EMPLOYER-EMPLOYEE CLAUSE
Nothing contained in this Agreement creates or is to be construed as creating the
relationship of principal and agent, employer and employee, partnership or joint venture
between the Parties. The Recipient shall not represent itself (including inany agreement
with a third party), as an agent, employee, or partner of the Minister or in a manner that
could lead a member of the public to believe that the Recipient is an agent, employee, or
partner ofthe Minister.
24. CONFLICT OFINTEREST
The Recipient declares that individuals of the Conflict of
Interest Act (&C, 2006, c. 9, s. 2), the Conflict of Interest Code for Members of the House
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ofCommons, the Conflict ofInterest Code for Senators, the Conflict ofInterest and Post -
Employment CodofnrPub|ioOfficeHolder .theEnvipommendandC1knatoChange
Canada Values and Ethics Code, the Values and Ethics Code for the Public Sector, or any
other values and ethics codes applicable within provincial or territorial governments or
specific organizations, cannot derive any direct benefit resulting from this Agreement
unless the provision or receipt of such benefit is in compliance with such legislation and
codes.
25. NO AUTHORITY TO REPRESENT
Nothing in this Agreement bto be construed asauthorizing any person, including aThird
Party, to contract for or to i:ncur any obligation on behalf of Canada or to act as an agent
for Canada. The Recipient shall take the necessary action to ensure that any Contract
between the Recipient and any Third Party contains a provision to that effect.
26. ACCESS TOINFORMATION ACT AND PRIVACY ACT
Subject ipthe Access /mInformation Act (R.B.C,1885.o.A,1)and the Privacy Act
(R.S.C, 1985, c. P-21), all information pertaining to the contribution provided under this
Agreement is public information and may bodisclosed to third parties upon request under
the relevant Act,
27. OFFICIAL LANGUAGES
All public information documents related to the Project prepared byorpaid in whole orin
part byCanada must bemade available in, both official languages, when Canada
determines that this inrequired under the Official Languages Act (R.8.C..1905.o.31 [411
Supp]). Tout document d'information publique pr6par6 ou pay6 en tout ou en partie par le
Canada aymm(trait oupn8eidoit6LpeoUertdans les deux |anguesoffioioUea.|oreque|e
Canada |ejugwpertinent, conhorm6montA|aLoi sur &*alangueoofficiaVeo(LR.C..18O5.
28. LANGUAGE OFCONTRIBUTION AGREEMENT
This Agreement lmdrafted inEnglish o8the request n[the Parties. Les Parties ontoonvamu
que le present accord soit r6dig6 en anglais,
29. LOBBYISTS
The Recipient shall ensure that operson lobbying, asdescribed in the federal Lobbying
Act (R.8.C..1885.c44[4thGupp.j\nnthe Recipient's behalf iscompliant with that Act
and has not received, and will not receive, any payment,di from the
Recipient that io inwhole orin part contingent omthe Recipient obtaining this Agreement.
30. WAIVER
Canada may waive any condition toCanada"sbenefit upon g�iviogwritten notice hothe
Recipient. Failure by either Party to exercise any of its rights, powers, or remedies under
the Agreement shall not constitute a waiver of such right, power, or remedy. Any exercise
of a right, power, or remedy shall not prevent the Minister in any way from later exercising
the same orany other right, power, nrremedy under this Agreement,
31. GOVERNING LAW
This Agreement shall begoverned by, and istobeinterpreted inaccordance with, the
applicable federal laws and the laws in force in the Province of New Brunswick.
31 SUCCESSORS AND ASSIGNS
This Agreement is binding upon the Parties and their respective successors and assigns,
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33. NOTICES
o) Any notice, information or required documentation provided for under this Agreement
shall be sent in writing or by any method of telecommunication, and unless notice to
the contrary is given, shall be addressed to the Party concerned at the following
address:
To Canada:
Director General
Programs Directorate
Pan -Canadian Framework Implementation Office
Environment and Climate Change Canada
2OOBoulevard 3aor6-Cosur
Fontaine Building
Gatineau, QC
K1A0H3
Tothe Recipient:
Common Clerk
City Hall
15 Market Square
P.O.Box 1971
Saint John, NB
E2L1B5
urb,such other address or addressed $osuch other person aoone ofthe Parties
designates inwriting 10the other Party.
b) Notices, requests, and documents are deemed tohave been received ifsent hy
registered mail when the postal receipt inacknowledged bythe other Party, by
electronic mail when transmitted and receipt is confirmed, and by messenger or
specialized courier agency when delivered.
34, SEVERABILITY
If any provision of this Agreement is determined to be invalid or unenforceable, in whole or
in part, by a court of competent jurisdiction, such invalidity or unenforceability shall not
affect the remaining terms orprovisions ofthis Agreement.
35. ENTIRETY OFCONTRIBUTION AGREEMENT
This Agreement comprises the entire agreement between the Parties. No prior document,
negotiation, provision, undertaking, or agreement in relation to the subject of the
Agreement has legal effect, unless incorporated byreference into this Agreement. No
representation or warranty expressed, implied, or otherwise, is made by Canada to the
Recipient except aaexpressly set out inthis Agreement.
36. SURVIVAL
The Parties' rights and obligations which, by their nature, extend beyond the expiry or early
termination of this Agreement shall survive the expiry or early termination until such a time
esthey have been satisfied o/they have, bytheir nature, expired.
37. ASSIGNMENT DFTHE CONTRIBUTION AGREEMENT
This Agreement or any payment, ri�hts or obligations thereunder, shall not be assigned, in
whole or in port. without the prior written consent ofthe Minister. Any assignment made
without such prior written consent is void and of no effect.
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38. COMMUNICATIONS
381 The Parties shall comply with the Communications Protocol in Schedule E to this
Agreement,
38.2 The Recipient shall acknowledge Canada's contribution in all signage and public
communication produced as part of the Project or Agreement, in a manner acceptable to
Canada, unless Canada communicates in writing to the Recipient that this
acknowledgement is not required,
383 The Recipient acknowledges and agrees that the following may be made publicly available
by or on behalf of Canada:
a) its name, the amount provided by Canada, and the general nature of the Project-, and
b) any evaluation or audit report and other reviews related to this Agreement.
39, AMENDMENTS
This Agreement, including its schedules may be amended from time to time on written
agreement of the Parties by their respective authorized representatives or as otherwise
provided for herein,
40. SIGNATURE IN COUNTERPARTS
This Agreement may be signed in counterparts, each of which, so signed shall be deemed
to be an original, and such counterparts taken together shall constitute one Agreement.
IN WITNESS WHEREOF the Parties'duly authorized representatives have executed this
Agreement:
HER MAJESTY THE QUEEN IN RIGHT THE CITY OF SAINT JOHN
OF CANADA
Per:e'6 Bijimine Per: Don Darling
Director General Mayor
Programs Directorate
WR
Per: Jonathan Taylor
Common Clerk
ME
Common Council Resolution Date
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SCHEDULE A1�ELIGIBLE EXPENDITURES
Eligible Expenditures must:
1) bereasonable and directly related tothe Project, aodetermined byCanada;
hi> beincurred and paid between the Effective Date and the Final Claim Date; and
iii} consist ofthe following categories ofexpenditures:
a) costs of acquiring, constructing, rehabilitation and improvement of Assets;
b) costs ofmaterial and supplies;
n) professional fees for contracted services, such as accounting, communications, official
languages translation, oudb. SHGemisnion reductions and energy savings estimate
vehfioo0on, and results monitoring, measuring and reporting;
d) costs of planning and assessment, such as surveying, engineering, architectural
supervision, 1eeting, and management consulting a*mioou. Canada will only contribute up
to a maximum of 5% of its total contribution to the Project towards these costs;
o) all capital ooutn, including site preparation and construction uouta. only once Canada is
satisfied that Canada's ob|igaUunu, if any, m|ansd to applicable federal environmental
assessment or impact assessment legislation and agreements between Canada and
Indigenous Qroupa, and the legal duty to consult with, and accommodate, Indigenous
groups have been met;
(> costs ofperforming activities related mthe Project bycontractors;
g} costs associated with licenses and permits;
h) costs ofrenting erleasing o[equipment related +othe construction of the Project;
i} training costs related tonew technologies, oquipmont, software and eyohams�
�)
costs of engineering and environmental reviews, including costs related to an
environmental or impact assessment, and the costs of mitigation maomures, fn||om/up, and
remedial activities identified in any environmental or impact assessment;
k) costs related tothe consultation ofIndigenous groups, specifically Project -related
consultation activities arising as a result of the Government of Canada's legal duty to
consult, where applicable;
|) the incremental costs of the Recipient's employees may be included as Eligible
Expenditures. Canada will only contribute up to a maximum of 2% of its total contribution
tothe Project towards these costs provided that:
I . the Recipient ioable todemonstrate that itionot economically feasible hotender a
Contract and clearly demonstrate that there is value for money in using internal
employees;
2. the employee isengaged directly inrespect of the work that would have been the
subject ofthe Contract and
3. the arrangement isapproved inadvance and |nwriting byCanada.
m)costs directly associated with joint federal communication activities (eg.press releases,
press conferences, translation) and with Project signage related tofunding recognition;
n) travel expenditures (including the costof accommodations, vehicle rental and kilometric
rates, bus, train, airplane or taxi fares, allowances for meals and incidentals). Canada will
only contribute up to a maximum of 5% of its total contribution to the Project towards these
costs. Cfnote, travel and per them expenses cannot bemore than the rates and
allowances determined imthe �
.
o) provincial/territorial sales, tax, goods and services tax, or harmonized sales tax for which
the Recipient or a Third Party is not eligible for a rebate, and any other costs that are
ineligible for rebate; and
p) other costs that, in the opinion of Canada, are considered to be direct and necessary for
the successful implementation of a Project and have been approved by Canada in writing
prior mbeing incurred.
Eligible Expenditures donot include cash -equivalent expenditures associated with In -Kind
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EXECUTION CO�P'Y
The ineligible expenditures include, but are not limited to the following:
a) any Costs, as defined in Subsection 2.2 of the Agreement;
b) expenditures related to developing a business case or proposal for funding;
c) any expenditures related to a Contract signed prior to the Effective Date of the Agreement;
d) expenditures related to purchasing land, buildings and associated real estate and other fees,
and vehicles;
e) financing charges and interest payments on loans, including those related to easements and
servitudes (e.g. surveys);
f) legal fees;
g) costs of renting or leasing of equipment, except those specified as Eligible Expenditures;
h) furnishing and non -fixed Assets which are not essential for the operation of the Project;
i) expenditures associated with operating expenses and regularly scheduled maintenance work;
j) any goods and services which are received through donations or in-kind contributions;
k) any overhead costs, including salaries and other employment benefits of any employees of
the Recipient, direct or indirect operating or administrative: costs of the Recipient, and more
specifically the costs related to planning, engineering, architecture, supervision, management
and other activities normally carried out by its staff, except for those costs specified as Eligible
Expenditures in Schedule A,1 iiL d) and 1) above;
1) all capital costs, including site preparation and construction costs, until Canada is satisfied
that Canada's obligations, if any, related to applicable federal environmental assessment or
impact assessment legislation and agreements between Canada and Indigenous groups, and
the legal duty to consult with, and accommodate, Indigenous groups have been met; and
m) provincial/territorial sales tax, goods and services tax, or harmonized sales tax for which the
Recipient or a Third Party is eligible for a rebate, and any other costs eligible for rebates,
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SCHEDULE B —THE PROJECT
SCHEDULE 13.1: PROJECT DESCRIPTION
The Municipal Retrofit Project w||result mreduced greenhouse gas (GHG)emissions by reducing
energy consumption inseveral Cityo(SointJuhn.NowBmnowickmunkipa|huUdinQethrough
controls upQnsdaa. light -emitting diode (LE8)retrofits and control, heat recovery, high efficiency
heat, ventilation and air conditioning (HVAC) systems and several other energy measures and
opportunities, such as building envelop improvement, installation of high efficiency motors and
pumpa, renewable energy sources, energy monitoring nyaiemo, measurement and verification
plan, staff training, etc,
The buildings slated for retrofits and subject to GHG reduction measures include the following
Building Name
Civic Address
Me in G a r age
175 Rothesay Avenue
West Garage
1 95 4 Man awagonish Rd
Eastern Wastewater Treatment Facility
1441 Red Head Road
Millidgeville Wastewater Treatment Facility
700 Woodward Avenue
Lancaster Wastewater Treatment Facility
12 1- 0 Sand Cove Road
Carpenter Place Lift Station
1608 Saint John Throughway
Churchill Boulevard Lift Station (2 Floors)
283 Samuel Davis Drive
Market Place Lift Station (2 Floors)
240 Market Place
Lorneville Lift Station (2 Floors)
801 Lorneville Road
Bayside Drive Lift Station 3
20 Irving Road East
Parks Street Pumping Station
1 Mitchell Street
Spruce Lake Pumping Station
2528 Ocean Westway
Musquash Pumping Station
11107 Route #7
Champlain Heights Pump Station
784 Loch Lomond Road
University Avenue Pump Static n
399 University A v e n ue
Rockwood Park Water Tank
420 Fisher Lake Drive
Millidgeville Water Tank
707 Samuel Davis Drive
PRV 109 (Kennebecasis Drive)
1244 Kennebecasis Drive
Thorne Pumping Station
Thorne Avenue
F ire Station 91
47 Leinster S treet
Fire Station #2
850 Loch Lomond Road
A re Station #4
36 Courtenay Ave nu e
Fire Station #5
35 Adelaide Street
Fire Station #6
286 King Street West
I Fire Station #7
7 Manchester Avenue
Fire Station #8
i
608 Millllidge Avenue
Operation Complex and City Hall
5 R thesa Avenue and 15
Police Headquarters a nd City Market
aza and 47 Charlotte
Transit Building
55 MacDonald Street
i Canada Games Aquatic Centre
50 Un,ion Street
�i Peter G. Murray Arena
701 Dever Road
Hilton Belyea Arena
390 Lowell Street
Charles Gorman Arena
80 University Avenue
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Building Name "S
S - t I e I wa 11 rt 11 Hurley Arena
11500 Hickey Road
Harbour Station
99 Station Street
Lord Beaverbrook Rink
536 Main Street North
Leisure Services Offices - 171 Adelaide Street
171 Adelaide Street
Leisure Services Maintenance Garage - 171 Adelaide Street
171 Adelaide Street
Leisure Services Storage Building - 171 Adelaide Street
171 Adelaide Street
Shamrock Park Clubhouse (Ballfield) - 200 Visart Street
200 Visart S treet
Forest Hills Maintenance Depot/Office - 707 Westmorland Road
707 Westmorland Road
Carleton Community Centre - 120 Market Place
120 Market Place
Nick Nicolle Community Centre - 85 Durham Street
85 Du rha m Street
Carnegie Building
20 Peel Plaza
West Library - 621 Fairville Blvd., Lancaster Mall
621 Fairville Blvd.
Ornamental Street Lights
Various locations
il Var i ous Park s V I ctoria, R ainbow, Rockwood, Dominion, Flemming, etc.)
Various locations
Forest Hills BallfeldlCanteen - 651 Westmorland Road
Market Square Facility
651 Westmorland Road
�"I Miarket Square
This Project includes the following main milestones:
1� Energy consultant team engaged through apublic request for proposal process 0uperform the
following assessments and evaluations (December 2V1g)
= Full inventory ofenergy consuming systems across targeted buildings
• Allocation ofexisting energy usage oacompared ioutility baselines
° Identification nfenergy waste
° Development of energy conservation measures including costing and approximate
construction timelines
2 Energy conservation measures for implementation evaluated and identified by City staff
(project team) in cooperation with the energy consultant team (December 2019).
~ Assembly ofall energy conservation measures identified across all target buildings
• Evaluation nfenergy conservation measures using the following factors
, Alignment with asset management policy and capital investment policy
° High risk assets using adopted risk rating framework toidentify these assets
° Level ofimpact onservice topublic and environmental effects
" Net present value oaasset renewal
° Greenhouse gas emissions impact
3, Implementation to be completed in cooperation between the City staff, energy consultant team,
and contractor, selected through public tender process (February 2O22).
° Production of engineering documents including plans and specifications for all selected
energy conservation measures
• Tendering of engineering plans and specifications to, ensure cost effectiveness of
construction work
° Award ufprojects tncontractors
~ Construction management |oensure proper implementation ofprojects
° Commissioning plan will be developed and executed according to the American Society of
Heating, Refrigerating and Air Conditioning Engineers (ASHRAE)Standard 2O2 -2O13
° Develop and implement preventative maintenance programs to ensure subsystems are
operating aaper the manufacturer m»oommendadomnand \oreduce unplanned
expenditures
4. Measurement and Verification (M&V) and GHG emissions verification work will be performed
incooperation with the City staff and energy consultant team (ongoing).
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~ AmM&VPlan will bodeveloped and executed inaccordance mthe International
Performance Measurement and Verification Protocol (IPMVP) and International
Organization for Standardization (|8O}14034.
° Anenergy management and tracking system will beput inplace bumanage the building's
energy performance.
° Educate and troVnstaff nnthe new system.
° Monthly presentations and reports on the performance of the buildings including any
deficiencies and recommended improvements.
This Project will result inGHGreductions im2030o[1.5Ontonnes ofCOc�
Project Outcomes:
Outcome 1: Total estimated domestic GHG reductions in tonnes of carbon dioxide equivalent
Project oractivity GHG Reductions in 2030 Cumulative GHG reductions
(tonnes CO2 eq.) over the Project lifetime up to
2050 (tonnes CO2 eq.)
Municipal Retrofit Project 1,500 47,690
.Outc?rne'.F�_Total estimated energy savings In gigajoules, if applicable
Project activity Energy savings in 2030 Cumulative energy savings
(gigajoules) over the Project lifetime up to
2050 (gigajoules)
Municipal Retrofit Project
20,940 639,950
Outcome 3� Estimate d fulf-ti m e-equ iv a I en tjo b s created in each fisc at y ear by the i mpi ementation
O!_,!he Project
Indicator 2018-2019 2019-2020 2020-2021 2021-2022 Tolta
cumulative
Number of jobs created 5 25 25 25 80
Outcome -4: Other applicable benefits associated with the Project, as applicable
er benefits Description of how the Project is achieving or expects to
achieve this co -i
I EnvironmentalL improvement to air The Municipal Building Energy Retrofit Project is considered a
quality and/or reduction of air catalyst in reducing corporate GHG emissions. The implementation
pollution of this Project will help improve the air quality and reduce air pollution i
through the displacement of existing fossil fuel usage The city
suffers a poor air quality as a result of large industries emitting air
C1 an G,rowth ' Project has the The City of Saint John was one of the first Canadian municipalities to
poetentia for rye plicable or enables embark on creating an energy efficiency program, The City has
similar projects to be undertaken received many regional and national awards for its energy efficiency
in Canada in the future. program and has helped many municipalities across Atlantic Canada
in the past to undertake such an initiative. The City will continue to
share its lessons learned and information regarding the energy
retrofits and how these projects could be models for other
communities to replicate. The City through the asset and energy
management department will hold presentations, workshops, and
provide Key Performance Indicators, (KP[s) through public monitoring
system s"to, ,e n, gage th e -public and 11 o It -her communit i e s.
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SCHEDULE B.2: PROJECT BUDGET
EXPENDITURES I
FISCAL YEAR BREAKDOWN
FUNDING
REQUEST
TOTAL
2018-2019 2019-2020
2020-2021 2021-2022
Total Project expenditures
Total Eligible
$5,367,200
$0
$603,420
$2,705,226 $2,058,554
reles
Expenditures
Total Ineligible
............. .
$127,730
$, 0
So
so $127,730
Expenditures
,
Total of All
$5,494,9301 1
$603,420
4
Expenditures
Canada's contribution
pertaining to each Fiscal Year
Uncapped Eligible
$2,042,880
S0
$229,368
$1,027,990 $785,522
Expenditures
Eligible planning
1' $104,000
so
$12,0 00
$54,100 $37,900
expenditures
(capped at 5% of
Canada's
contribution)
Eligible
$0
$o
$0
$0 $0
incremental
employee
expenditures
(capped at 2% of
Canada's
contribution)
I
Eligible travel
$0
$o
$0
$0 j $0
expenditures
(capped at 5% of
Canada's
contribution)
--'$l
Total Canada's
$2,146,880
$0
$241,368
�082,090 $823,422
contribution
toward Eligible
Expenditures
pertaining to each
Fiscal Year
22
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EXECUTION COPY
SCHEDULE C—REPORTING REQUIREMENTS
SCHEDULE CA: PROGRESS REPORT
The progress report shall include, at a minimum, the following information for the Project.
Canada reserves the right 0arequest additional information aiany time.
Section C.t1:Updated Schedule B
a) Updates toall sections ofSchedule B.
Section C.1.2:Workplan, Progress, and Risk Mitigation
a) Applicant Name;
b> Title ufthe Project;
4 Fiscal Year ofProject progress report;
d> Description oythe Project progress and major achievements 1odate;
e) Detailed description of the activities undertaken and work completed for the reporting Fiscal
/oar�
q Progress ofectianstwmrktowards completion
(9�)�
Q> Detailed description of the actions/work to be completed in each of the future Fiscal Years;
h) Issues, areas of concern, changes or risk factors that may affect completion, the schedule or
the budget of the Project, if applicable, as per original plans and the proposed mitigation
strategies 0ocorrect the situation;
i) If relevant, updated :status of the implementation of mitigation measures, activities and follow-
upmemwunso(hmtarerequired(obauorfurmedduringthePrNootimp|ementadnneaoeou|t
of consultations with Indigenous peoples, organizations, governments, or communities;
D If the Project required environmental or impact assessments, permits, or authorizations,
provide enupdate nnactivities taken hocomply;
k) Updated status of non -greenhouse gas environmental monitoring and: verification
requirements related to the Project, if relevant, both expected and unexpected, and the
conditions proposed ioaddress these concerns;
|> Confirmation offederal signage installation, ifapplicable;
m) Highlights, ofcommunication activities ofthe Project during the reporting period;
Section C.1.3:Project Outcomes
m) Description ofthe methodology and assumptions included |nthe original pmposa|fon
estimating greenhouse gas (GHG) emissions reductions and, if applicable, energy savings;
b) Table summarizing the calculations included in original proposal for estimating GHG
emissions reductions and, ifapplicable, energy savings;
o) Updated monitoring, reporting, and verification plan, describing key indicators, measurement
approach, and data collection and retention approach;
d) Updated GHG emissions reductions and, if applicable, energy savings, estimates with
updated data on performance indicators, accounting for any revisions in assumptions and
calculations;
o) Issues, areas ofconcern, changes o'risk factors that may affect GHGoutcomes, a
applicable, ooper original plans and the proposed mitigation strategies mcorrect the
situation;
q Updated job creation estimates for the reporting Fiscal Year;
g) Updated description of other benefits with any additional information obtained; and
h) Supplementary supporting data, underlying assumptions, description of methodologies and
detailed information as required to explain changes to estimates made to Schedule B.
25
146
EXECUTION COPY
The final report shall include at a minimum the following information. Canada reserves the right
to request additional information.
a) All information required under Schedule CA above.
b) A Certificate of Compliance for Final Request for Payment completed in accordance with
Section 2 of Schedule D.
c) Lessons learned about how issues were addressed or solutions were found, or how program
parameters could be modified in future programming.
26
147
EXECUT110N COPY
SCHEDULE D—CERTIF11CATE(S) OPCOMPLIANCE FOR PAYMENT REQUESTS
1.Certificate VfCompliance for Progress Payment Requests
CERTIFICATE OF COMPLIANCE
FOR PROGRESS PAYMENT REQUEST ("Certificate")
|nthe matter ofthe Challenge Funding Agreement in the
title ofthe Agreement onthe first page ofthe Agreement) entered into between Canada and
[RecilDient] (the "Recipient") on [insert date] (the "Agreement").
|. (Name), of the City/Town of
Province/Territory of , declare as follows:
1 That |hold the position of Chief Financial Officer, or a delegated Financial Officer, with the
Recipient and as such have knowledge of the matters set forth inthis Certificate and believe
this declaration iobetrue.
2. 1 have read and understood the Agreement and reviewed the attached progress payment
request prepared by the Recipient for submission to Canada, dated [insert date], and have
knowledge of the business and affairs of the Recipient and have made such examinations or
investigations as are necessary to give this Certificate and to ensure that the information
contained herein iotrue and accurate.
3 All the expenditures claimed by the Recipient in the attached progress payment request for
the following Project Components constitute Eligible Expenditures as defined in Subsection
2.2ofthe Agreement:
a) [insert Project Component name];
b} [insert Project Component mame];
4� This Certificate does not preclude Canada from exercising its right to verify, audit or inspect
inaccordance with the Agreement.
5, As of the date of this Certificate, the Recipient has performed all covenants under the
Agreement that are required ioh*performed byaunorprior tothe said dote.
0, Incrementality, as defined in Subsection 2.2 of the Agreement, has been respected.
7. The Recipient hereby represents and warrants that the information provided hoCanada ia
true and accurate inall respects uLthe date ofthis Certificate.
Dated, this _day of 20
Signature
ur
148
EXECu-nON COPY
2.Certificate ofCompliance for Final Payment Requests
CERTIFICATE OF COMPLIANCE
FOR FINAL REQUEST FOR PAYMENT ("Certificate")
|nthe matter of the Challenge Funding Agreement Regarding [insert name ofProject asinthe
title of the Agreernent on the first page of the Agreement] entered into between Canada and
[Recipient] (the "Recipient") on [insert date] (the "Agreement").
i me), of the City/Towoof
Province/Territory of . declare apfollows:
1>That |hold the position of Chief Financial Officer, ma delegated financial officer, with the
Recipient and as such have knowledge of the matters set forth in this Certificate and believe
this declaration mbetrue.
2) | have naod and understood the Agreement and reviewed the attached final request for
payment prepared by the Recipient for submission to Canada, dated [insert date], and have
knowledge of the business and affairs of the Recipient and have made such examinations or
investigations as are necessary to give this Certificate and to ensure that the information
contained herein iatrue and accurate.
3> As of the date of this Certificate, the Recipient has performed all covenants under the
Agreement that are required to be performed by it on or prior to that date.
4) All the expenditures claimed by the Recipient in the attached final request for payment for
the following Project Components constitute Eligible Expenditures medefined inSubsection
2.2ofthe Agreement:
a> [insert Project Component name];
b> [insert Project Component nmme];
5> The representations and warranties of the Recipient contained in Section 5 of the Agreement
are true and accurate in all respects at the date of this Certificate as though such:
representations and warranties had been made a|the date ofthis Certificate.
O) The Project Components outlined above have been completed, bringing to completion the
Recipient's Project.
7) This Certificate of Compliance does not preclude Canada from exercising its right to verify,
audit oriinopecxaaper the terms and conditions ofthe Agreement.
8> Incrementality, as defined in Subsection 2.2 of the Agreement, has been respected.
9) The maximum Project funding set out inParagraph 4u>ofthe Agreement has been
respected.
10) The Total Financial Assistance received for the Project iaasfollows:
[include ail Total Finenma/Assistance oere/veoy
11) The Recipient hereby represents and warrants that the information provided toCanada ia
true and accurate inall respects a1the date nfthis Certificate.
Dated, this _day of 20
Signature
om
149
EXECUTION COPY
1. Purpose
a) This Communications Protocol outlines the roles and responsibilities of each of the
Parties to this Agreement with respect to Communications Activities related to the Project.
b) This Communications Protocol will guide the planning, development and implementation
o[all Communications Activities (uensure clear, consistent and coordinated
communications tothe Canadian public.
o) The provisions of this Communications Protocol apply to all Communications Activities,
related |othis Agreement and the funded Project under this Agreement.
1 Guiding Principles
Communications Activities undertaken in accordance with this Communications Protocol
should ensure that Canadians are informed of investments made to help improve their quality
of life and that they receive consistent information about the funded Project and its benefits,
3. Joint Communications
e) The Parties shall engage in Joint Communications about the funding of the Project.
b) Joint Communications related to the Project funded under this Agreement shall not occur
without the prior knowledge and agreement nfthe Parties.
c) All Joint Communications material approved by the Parties shall recognize the funding of
Canada and the Recipient.
d) Either Party may request Joint Communications hocommunicate boCanadians about the
progress orcompletion ofthe Project. The nequeuturshall provide at least ten (1O)
business days' notice tothe other Party.
e) If the Communications Activity is an event, it shall take place at a mutually agreed upon
date and location, The requestor of the Joint Communications, in this case, shall provide
an equal opportunity for the other Party to participate and choose their own designated
representatives.
f) Canada has anobligation tncommunicate inEnglish and French, Canada's
communications products related to events must be bilingual and include the Canada
wmndmarkand the other partKiea`)'ologos. |nsuch cases, Canada will provide, a(its sole
cost, the translation services.
g) The conduct of all Joint Communications will follow the respective communication policies
of both: Canada and the Recipient
4. Individual Communications
a) Notwithstanding Section 3 of this Communications Protocol, the Parties retain the right to
meet their obligations to communicate information to Canadians about the Agreement
through their own Communications Activities.
b} The Parties may include general Project messaging and examples of Projects funded
through the Agreement in their own Communications Activities. The authoring Party will
not unreasonably restrict the use ofsuch products ormessaging bythe otherpady(iea);
and iyweb orsocial-media based, from linking toit.
c) Given the increasing prominence of digital communications, a Party may issue digital
communications {ocommunicate progress o[the Project.
d) Where nweb site, web page, orsocial media content iocreated topromote ur
communicate progress on a funded Project, it must recognize federal funding through the
use of a digital sign (using Low Carbon Economy Fund branding) or through the use of
the Canada wordmark and the following wording, "This [project/initiative] is funded in part
by the Government of Canada." The Canada wordmark or digital sign (using Low Carbon
Economy Fund branding) must link toEnvironment and Climate Change Canada's
website, otCnnadu.co Canada will provide guidelines for how this recognition ioto
0
150
EXECUTION, COPY
appear. Canada, for its part, will reciprocate inthe same manner acknowledging the
Recipient's funding contributions.
5` Operational Communications
m) The Recipient is solely responsible for operational communications with respect to the
Project, including but not limited to: calls for tender, work and public safety notices. Such
operational communications are not subject to the federal Official Language Act.
b) Canada does not need to be informed of operational communications. However, such
products should include, where appropriate, the following statement, "This
[project/initiative] iafunded inpart bythe Government ofCanada" and the Canada
wmndmark.
6. Media Relations
Canada and the Recipient shall share information promptly with each other should significant
media inquiries be received or emerging media or stakeholder issues arise about a Project or
the overall Program.
7. Signage
a) The Parties and other funding contributors may request a sign recognizing their funding
contribution to the Project. The sign design, content, and installation guidelines will be
provided byCanada.
b,) Unless otherwise agreed by Canada, the Recipient shall produce and install a physical
sign, auappropriate, 10recognize the funding ofeach Party ateach Project.
c) Digital signage (using Low Carbon Economy Fund branding) may also be used in addition
or in place of a physical sign in cases where a physical sign would not be appropriate due
tothe Project type, scope, location orduration.
d) Where the Recipient decides to install a permanent plaque or other suitable marker with
respect to the Project, the plaque or marker must recognize the federal funding and be
approved byCanada.
e) The Recipient agrees to inform Canada of sign installations through the Progress Reports
referenced inSchedule Cnfthis Agreement.
f) Signage should beinstalled oithe Project uite(s)noless than one (1)month prior tothe
start of work, be visible for the duration of the Project, and remain in place until one (I
month after work is completed and the infrastructure is fully operational or opened for
public use.
g) Signage should be installed in a prominent and visible location that takes into
consideration pedestrian and traffic safety and visibility,
V. Advertising Campaigns
Recognizing that advertising can be an effective means of communicating with the public,
Canada and the Recipient may, at their own cost, organize an advertising or public
information campaign related to this Agreement or the Project. Such a campaign shall
respect the provisions of the Agreement, including the requirement to acknowledge the
Parties' funding and wordmarks. The sponsoring Party of:such a campaign shall inform the
otherPmrtyofitsinhendnne\|eao{hwan1y-mne(21)bmninoaodoyopriortotheoampaiOn
launch,.
30
151
EXECUT110N COPY
SCHEDULE F—DECLARATION OFCOMPLETION
In the matter of the Challenge Funding Agreement Regarding [insert naiiie of Projectenimthe
title of' the Agreement onthe first page ofthe Agreement] entered into between Canada and
[RocipienQ(the ^Raoipient")un[insert date] (the 7greomemt"),
TheRecipient, represented by Nome).regarding the [Project
Name] Project (the "Project").
|
Province/Territory of eduly authorized representative orthe Recipient
declare as follows:
I hold the position of with the Recipient and as such have
knowledge of the matters set forth in this declaration and believe this declaration to be
2. Uhave received the following documents for the [Project Narne]Pmjeot
[List name of relevant dOCUment(a),e�. Certificate of Completion, Certificate of
Performance, Occupancy Permit, etc] signed by (Name).a
(Profouoiom^a.g.professional engineer, professional architect
orother applicable professional) for the Project.
[Add same text as in (i) for each document]
Based on these documents and the representations made to me by the professionals
identified in Section 2(i)above, | declare tothe best ofmyknowledge and belief that the
Project has been completed, in that it can be used for its intended use, as described in
Schedule B.1^aadefined inthis Agreement, onthe day ofthe
20___
[Insert #3, ifmppVoableJ
3. | have received the following documents and based nnthese documents and
representations made to me by the professionals identified below, I declare to the best of
myknowledge and belief that the Project conforms with, auapplicable, the [Llist the
applicable environmental / impact assessment legislation / regime]:
[List name ofrelevant document(s)] signed by (Name), an
(Pmfesxion'e.0.environmental consultant orother applicable
professional).
[Add same text as in (i) for each document]
4. Ali terms and conditions of this Agreement that are required to be met as of the date of this
declaration have been met,
Declared (Province/Territory) this
at
Signature
_(City7own), in
day of____
31
152
COUNCIL REPORT
M&C No.
2019-313
Report Date
November 22, 2019
Meeting Date
December 02, 2019
Service Area
Finance and
Administrative Services
His Worship Mayor Don Darling and Members of Common Council
SUBJECT: Low Carbon Economy Fund (LCEF) Agreement- District Energy System
(DES) Project
OPEN OR CLOSED SESSION
This matter is to be discussed in open session of Common Council.
AUTHORIZATION
Primary Author
Commissioner/Dept. HeadCity
Manager
Samir Yammine
Kevin Fudge, Ian Fagan
and Neil Jacobsen
John Collin
RECOMMENDATION
It is recommended that the City enter into the Grant Agreement with Her
Majesty the Queen in Right of Canada, as represented by the Minister of the
Environment who is responsible for the Environment and Climate Change
Canada under the Low Carbon Economy Fund for the District Energy System
(DES) Project in the form and upon the terms and conditions as attached; and
that the Mayor and Common Clerk be authorized to execute the said Agreement
EXECUTIVE SUMMARY
The purpose of this report is to seek Common Council's approval to enter into
Grant Agreement with Her Majesty the Queen in Right of Canada, as
represented by the Minister of the Environment who is responsible for the
Environment and Climate Change Canada for the District Energy System (DES)
Project.
PREVIOUS RESOLUTION
NA
REPORT
In September 2018, City staff submitted a funding application to Environment
and Climate Change Canada under the Low Carbon Economy Fund (LCEF)
Challenge for the District Energy System (DES) Project.
154
-2 -
In June 2019, The City received a notification from Environment and Climate
Change Canada that the application was successful and the City of Saint John has
been approved for a grant in the amount of up to $ $1,867,092 or 40% of the
eligible cost toward the District Energy System (DES) Project.
As per the agreement, the DES project must be completed by March 31, 2022.
The LCEF will be used to develop a District Energy System (DES) at the Market
Square facility to connect and provide sustainable heating and cooling to four
buildings (Market Square, Genesys, Hilton Hotel and Canada Games Aquatic
Centre). The DES will use various energy sources such as heat recovery and
waste energy and be designed to allow the connection of more buildings in the
future such as new development in the coast guard site as well as other energy
sources such industrial waste energy and geothermal thermal (Harbour Water).
The DES will utilize heat pump technology to harness energy recovery for
distribution between the connected sites and will result in GHG reductions in
2030 of 1065 tonnes of carbon dioxide equivalent (eCO2). The Federal
Government has indicated the possibility in the future to extend the agreement
and completion date for additional funding to connect new and existing buildings
to the DES.
Description of the Major Phases of Work
The key activities of this Project consists of the following:
1. Planning, design, and tender
• Hire consultant to plan and design DES
• Finalize actual design
• Consultant prepares public tender package to hire contractor(s)
• Council approves contract(s)
• Project awarded to contractor(s)
2. Upgrade the Central heating/cooling Plant, including the purchase and
installation by contractors and manufactures
• Heat recovery chillers
• Isolation of thermal storage cells from main loop heat exchange and
pumps
• Electrical and controls for the new equipment
• Condenser water pumps and accessories for geo-exchange
• Cold and hot water mains
3. Connection of DES to the four buildings
• The Market Square, located at 1 Market Square, Saint John
155
-3-
• Hilton Hotel, located at 1 Market Square, Saint John
• Genesys, located at 50 Smythe St, Saint John
• Canada Games Aquatic Centre, located at 50 Union St, Saint John
Results
The proposed DES Project will result in the following benefits to the City:
• Reduce the City energy and operating cost by approximately $225,000
annually
• Reduce the City Infrastructure deficit by over $3 Million through
investment in asset renewal
• Reduce City Capital Expenditure by $1.2 Million
• Improve customer service and reliability of asset performance thus
minimizing risks associated with assets failure.
• Reduce GHG emissions by 1065 CO2 Tons
• Showcase the City of Saint John as an example of environmental and
economic sustainability
STRATEGIC ALIGNMENT
The DES Project is clearly aligned with the following City plans, policies, Council
Priorities, programs and practices:
1- City of Saint John Corporate GHG and Energy Action plan to reduce GHG
emissions by 30% by 2025 and achieve carbon neutral by 2040.
2- City of Saint John Asset Management Policy objectives to apply risk-based
decision and life -cycle costing principles to prioritize capital investment, identify
alternative measures, facilitate the leveraging of infrastructure funding from
external sources, and improve the reliability of customer service.
3. City of Saint John Capital Investment Policy
SERVICE AND FINANCIAL OUTCOMES
The City of Saint John will receive a total grant up to $ $1,867,092 or 40% of the
eligible cost toward the District Energy System (DES) Project. The total cost for
the project is approximately $4.7 Million with City contribution is approximately
$2.8 Million. Funding is approved under the Capital Budget 2020 and 2021 with
the remaining fund to be approved under 2022 Capital Budget.
156
-4 -
INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS
The City of Saint John Finance and Administrative Services and Legal
Departments have reviewed the attached Agreement and are satisfied with the
recommendation as they pertain to their respective areas of services.
ATTACHMENTS
1- Low Carbon Economy Fund Grant Agreement- District Energy System
(DES) Project
157
EXECUTlON COPY
CHALLENGE FUNDING AGREEMENT REGARDING DISTRICT ENERGY SYSTEM PROJECT
This Challenge Funding Agreement (the "Agreement")iomade induplicate onofthe date
of last signature (the "Effective Date").
BETWEEN: HER MAJESTY THE QUEEN lNRIGHT OF CANADA, asrepresented by
the Minister of the Environment who isresponsible for Environment and
Climate Change Canada ("Canmda orthe ~Ministe/)
AND THE CITY [)FSAINT JOHN, incorporated byRoyal Charter anconfirmed
and amended from time tutime bythe Acts nfthe Legislative Assembly cf
New Brunswick (^Reopient").
WHEREAS
1 The Government ofCanada announced inBudget 2018and 2D17the Low Carbon
Economy Fund of $2 billion over five years to support provincial and territorial mitigation
action under the Pan -Canadian Framework on Clean Growth and Climate Change and work
towards transitioning Canada toward more sustainable economic growth and meeting or
exceeding the Government ofCanada's target under the Paris Agreement;
2, The Minister has established and |aresponsible for the Low Carbon Economy Challenge
('^Progrom^)^one oftwo funds under the Low Carbon Economy Fund;
3. This Agreement supports the objectives ofthe Government ofCanada nfreducing
greenhouse gas emissions, transitioning to a low carbon economy and achieving clean
growth outcomes;
4� The Government of Canada's contribution will enable the Recipient to invest in projects that
will materially reduce carbon emissions under the Pan -Canadian Framework on Clean
Growth and Climate Change that contribute to Canada's first Nationally Determined
Contribution under the Paris Agreement, and support the advancement of new technologies
and Canada's long-term transition towards cleaner growth through the decarbonization of
the economy;
5. The Recipient has submitted to Canada a proposal for the funding of its Project as outlined
in Schedule B of this Agreement, which qualifies for support under the Program;
0. Canada wishes to provide a financial contribution to the Recipient towards the Eligible
Expenditures ofthe Recipient's Project inthe manner and onthe terms and conditions set
out inthis Agreement;
NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein,
the Parties agree asfollows:
1. PURPOSE OFAGREEMENT
The purpose of this Agreement is to establish the terms and conditions pursuant to which
Canada will provide funding to the Recipient towards the Eligible Expenditures of the
Project that iodescribed inSchedule B
2, INTERPRETATION AND DEFINITIONS
2.1 INTERPRETATION
For the purposes ofinterpretation:
a) mmnda in the ming�u|arinclude the plural and vice -versa;
b) words inone gender include all genders;
o) the headings do, not form part of the Agreement; they are for reference only and shall
not affect the interpretation ofthe Agreement;
d) any reference hodollars orcurrency shall betoCanadian dollars and currency; and
e) "include", "includes" and "including" shall not denote an exhaustive list.
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In addition to the terms defined in the recitals and elsewhere in this Agreement, a
capitalized term has the meaning given toitinthis Subsection.
"Agreement" means this funding agreement and all its schedules, and any amending
agreement entered into by the Parties in accordance with this Agreement.
"Agreement End Date" means September 3O,3022.
"Agreement Management {ommittee'means the committee established in accordance
with Subsection G2
"Asset" means any real orpersonal property orimmovable ormovable property acquired,
pumhaood, cunstmcted, rehabilitated or improved, imwhole orim part, with funds
contributed byCanada under the terms and conditions nfthis Agreement.
"Asset Disposal Period" means the period commencing from the Effective Date and
ending five (5) years after the Project Completion Date.
"Communications Activities" include, but are not limited to, public ormedia events ur
ceremonies including key milestone events, news releases, reports, web and social media
products orpostings, b|ogs, news conferences, public nodces, physical and digital signs,
pub|ioadova, success stories and vignettes, photos, videos, multi-mediaconbant.
advertising campaigns, awareness campaigns, editorials, multi -media products, Joint
Communications and all related communication materials under this Agreement.
"Contract" means an agreement between the Recipient and a Third Party whereby the
Third Party agrees to supply a product or service related to the Project in return for
financial consideration.
"Costs^mean, for the purposes of Subparagraph 4.2c)iofthe Agreement and Schedule
A.2ofthe Agreement, any and all costs incurred bythe Recipient inthe implementation of
the Project associated with a withdrawn or cancelled Project, in whole or in part, iniclud'ing
Eligible Expenditures incurred by the Recipient up to the date of withdrawal or
cnnceUaUmn, ineligible expenditures as outlined in said Schedule A.2 ofthe Agreement,
and any other costs incurred by the Recipient associated with the withdrawal or
cancellation including legal, auditing orother professional expenses.
"Declaration of Completion" means a declaration in the form substantially prescribed in
Schedule F.
"Effective Date" means the date onwhich the last Party nosign this Agreement signed it.
"Eligible Expenditures" means those costs incurred and paid bythe Recipient between
the Effective Date and Fina! Claim Date that are directly related Uothe Project and which
are considered eligible byCanada, asset out inSchedule A.1 ofthe Agreement.
"Final Claim Date" means June 3Q.2O2Z
"Fiscal Year" means the period beginning April 1o(ayear and ending March 31ofthe
following year.
"|nnrementm|ity'means that 1>federal funding received under the Program does not
displace the Recipient's spending onProject funded by the Program, and 2)greenhouse
gas (GHG) em,issions reductions would be achieved relative to existing, planned or
announced pm0nammingwhere GHGnare already counted.
"In -Kind Contribution" means non -monetary contributions of goods, services or other
support provided bythe Recipient ortothe Recipient for the Project, for which fair market
value isassigned but for which nopayment occurs.
"Joint Communications" are events, news re|*aoou, and signage that relate Nrthe
promotion ofthe Program and/or Project and are collaboratively developed and approved
byCanada and the Recipient, and are not operational innature.
"Pan -Canadian Framework Programs" means the Low Carbon Economy Leadership
Fund, the Green Infrastructure funding stream under the Investing in Canada
Infrastructure Program, the Disaster Mitigation and Adaptation Fund, and the Clean
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Technology funding through the Innovation and Skills Plan
~Padies'means Canada and the Recipient collectively and ^Party°means anyone of
them.
^Program"means the federal Low Carbon Economy Challenge, one nftwo funds under
the Low Carbon Economy Fund.
"Program Information Management System" ur'^System°means asecure, self-
contained, collaborative Web application developed and owned by Canada for the
management and monitoring of federal funding agreements, or any successor application.
"Project" means the project outlined in Schedule B to this Agreement and approved for
funding by Canada prior to the signing of this Agreement, and includes any subsequent
changes to the Recipient's Project which may form part of this Agireement in accordance
with Subsection 4.5ofthis Agreement.
"Project Completion Date" means the date upon which all funded activities of the Project
under this Agreement have been completed and performed, which date shall be no later
than March 31.2O2Z
"Project Component" means any ofthe components ofthe Project that are described in
Schedule B.
"'Third Party" means any person or other legal entity, other than a Party, who participates
inthe implementation ofthe Project bymeans ufeContract.
"Total Financial Assistance" means funding from all sources, including funding from the
Recipient and federal, provincia4 territorial, and municipal governments as well as funding
from all other sources, including |n -Kind Contributions.
23 SCHEDULES
The following schedules are attached to, and form part ofthis Agreement:
ScheduleA—Bigible and Ineligible Expenditures
ScheduleB—The Project
Sohodu|eC—RoportingReguimmonts
Sohodiu|eD—Cmrtificatn(a)ofCompliance for Payment Requests
Goh*du|oE—CommunioutionsPmtocol
Schedule F—Declaration n{Completion
TERM OF THE AGREEMENT
This Agreement shall come into effect unthe Effective Date and shall expire onthe
Agreement End Date, unless it is terminated earlier in accordance with the terms of this
4~ OBLIGATIONS (3FTHE PARTIES
4.1 CONTRIBUTION BYCANADA
a) Canada agrees to pay a contribution to the Recipient of not more than forty percent
(40%) of the total Eligible Expenditures for the Project but only up to a maximum of
one million, eight hundred and sixty seven thousand, ninty-bvodollars ($1.067.0g2).
b) Canada shall pay the contribution in accordance with the terms and conditions of this
Agreement and the Fiscal Year breakdown inSchedule @2nfSchedule 8.
o) If Canada's total contribution towards the Project exceeds forty percent (4OY6)ofthe
Project's total Eligible Expenditures or if the Total Financial Assistance received or
due in respect of the total Project costs exceeds one hundred percent (100%) thereof,
Canada may recover the excess from the Recipient orreduce its contribution byen
amount equal Nthe excess.
d> The Parties acknowledge that Canada's role inthe Project imlimited mmaking m
financial contribution tothe Recipient for the Project towards Eligible Expenditures
and participating in the Agreement Management Committee, if established in
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accordance with Subsection O.2.Canada shall have noinvolvement inthe
implementation ofthe Project orits operation. Canada iuneither adecision-maker nor
anadministrator in, relation \othe Project.
4.2 OBLIGATIONS OFTHE RECIPIENT
e) The Recipient imentirely responsible for the complete, diligent, and timely performance
of its obligations under this Agreement and implementation of the Project and shall
carry out the Project within, the costs and deadlines specified in this Agreement, in
accordance with the terms and conditions ofthis Agreement,
b) The Recipient shall comply with all applicable federal and provincial/territorial laws and
regulations, mun,icipal by-laws, orders and rules and all requirements of regulatory
bodies having jurisdiction over the subject matter ofthe Project.
u} The Recipient eheNbeentirely responsible for:
i� any Costs,
ii any cost overruns related: uothe Project,
iii. any costs associated with achange 0uthe Project that imnot approved by
Canado.and
iv. any costs related tothe Project that dnnot meet the|nurementa|i4,.
d) The Recipient acknowledges that Canada's Program funding imnot intended to replace
ordisplace existing sources offunding for the Project.
o) The Recipient acknowledges that Canada's Program funding is and remains the sole
source offunding from the Pan -Canadian Framework Programs for the Project.
O The Recipient shall inform Canada promptly of the Total Financial Assistance received
ordue for the Project.
g) The Recipient shall repay to Canada any amount received from Canada under this
Agreement that ionot paid towards Eligible Expenditures, such asineligible
expenditures as set out in Schedule A to this Agreement, unexpended funding, and
overpayments, made under this Agreement. The Recipient shall also repay to Canada
any amount received from Canada for Costs.
h) The Recipient shalli ensure the ongoing operation, maintenance, and repair of any
Asset in relation to the Project as per appropriate standards, during the Asset Disposal
Period
i) Canada may request that the Recipient declare to Canada any amounts owing to the
federal Crown, under legislation or contribution agreements that constitute an overdue
debt. The Recipient recognizes that any such amount owing inadebt due tothe
federal Crown and may besubject iucompensation orset-off byCanada in
accordance with Section 20,
j) If at any time during the term of this Agreement, the Recipient becomes aware of a
fact or event that may compromise or delay wholly, or in part, the Project, the
Recipient shall notify Canada and inform the Agreement Management Committee, if
established, within no more than ten (110) business days of becoming aware of that fact
or event.
k) Upon Canada's request during the term of the Agreement, the Recipient shall promptly
provide Canada with updates to the Project status and the Project expenditures and
forecasts set out inSchedule B.
0 The Recipient shall participate inthe Agreement Management Committee, if
established inaccordance with Subsection 82ofthis Agreement.
m) The Recipient shall provide access to Canada to the Project site(s) to conduct site
visits upon Canada giving the Recipient reasonable notice of the visit, which notice
shall not b*less than thirty (30)days.
n) The Recipient agrees to forego any ownership rights to greenhouse gas ("GHG")
emissions reductions, avoiclances or removals ("reductions") arising directly from the
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Recipient shall not seek eligibility for these GHG reductions under existing or future
offset credit programs. Notwithstanding, the Recipient shall maintain a record of the
GHG reductions arising directly from the Project and report them to Canada in
accordance with this Agreement. For clarity purposes, nothing in this paragraph affects
the Recipient's ability to claim credits or allowances that the Recipient may generate or
benefit from as result of reduced compliance obligations under existing or planned
carbon pricing or cap -and -trade systems for GHG emissions.
4.3 PAYMENTS SUBJECT TO AN APPROPRIATION
Pursuant to section 40 of the Financial Administration Act (R.S,C. 1985, c. F-11), the
payment of monies under this Agreement is subject to there being an appropriation for the
Fiscal Year in which the payment is to be made.
Notwithstanding any other provision of this Agreement, Canada may reduce or cancel its
financial contribution in the event of reductions in appropriations or departmental funding
levels are changed by Parliament during the term of this Agreement. In the event that
Canada reduces or cancels its financial contribution the maximum amount payable
pursuant to Paragraph 4.1 a) of this Agreement shall be reduced accordingly. Canada
shall promptly advise the Recipient of any reduction or termination of funding once it
becomes aware of any such situation. Canada shall not be liable for any direct, indirect,
consequential, exemplary or punitive damages, regardless of the form of action, whether
in contract, tort or extracontractual liability, or otherwise, arising from any such reduction
or termination of funding,
a) If the actual amount payable by Canada in respect of any Fiscal Year of the Project is
less than the estimated amount per Fiscal Year set out in Schedule 6.2 of Schedule B,
the Recipient may request that Canada re -allocate the difference between the two
amounts to a subsequent Fiscal Year, Subject to Subsection 4.3, Canada agrees to
make reasonable efforts to accommodate the Recipient's request. The Recipient
acknowledges that requests for re -allocation of Project funding shall require
appropriation adjustments or federal Crown approvals.
b) In the event that any requested re -allocation of Project funding is not approved, the
amount of Canada's contribution payable pursuant to Paragraph 4.1 a) may be
reduced by the amount of the requested re -allocation. If the contribution payable by
Canada pursuant to Paragraph 4.1 a) is so reduced, the Parties agree to review the
effects of such reduction on the overall implementation of the Project and to adjust the
terms and conditions of this Agreement as appropriate.
a) The Recipient agrees that any change to the Project shall require Canada's approval,
b) In order to seek Canada's approval, the Recipient shall notify Canada by submitting to
Canada a written request for the proposed change to the Project. The Recipient shall
also provide to Canada information in support of the requested change within twenty
(20) days of the date of the Recipient's submitted request.
c) The Recipient shall provide, at Canada's request and to Canada's satisfaction, any
additional information related to the proposed change to the Project within the timeline
requested by Canada, which timeline shall be reasonable.
d) If Canada has approved a change to the Project and has determined that the change
is significant, the Parties' signatories to this Agreement shall sign a corresponding
amending agreement to this Agreement in order to give the change effect. If Canada
has approved a change and has determined that the change is minor in nature, the
representatives of the Par -hes identified in Section 33 of the Agreement shall execute
a corresponding amending agreement to the Agreement to give the change effect.
4.6 INABILITY TO COMPLETE PROJECT WITHIN ANTICIPATED PROJECT COSTS AND
FUNDING
If, at any time during the term of this Agreement, one of the Parties determines that it will
not be possible to complete the Project unless the Recipient expends amounts in excess
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Wthe funding available 0mit, the Party having determined this is the case shall
immediately notify the other Party cdthat determination and Canada may suspend Its
funding obligation, The Recipient shall, within thirty (3U)days ofa request from Canada,
provide a summary of the measures that the Recipient proposes to undertake to remedy
the shortfall. |fCanada isnot satisfied that the measures proposed shall boadequate to
remedy the shortfall,, then Canada may, without limiting any other rights or remedies it may
have atlaw, exercise any one of the remedies listed imSection 16
4.7 INABILITY TOCOMPLETE PROJECT
If, at any time during the term of this Agreement, one of the Pates determines thatit will
not be possible to complete the Project for any reason, the Party having determined this is
the case shall immediately notify the other Party of that determination and Canada may
suspend its funding obligation. The Recipient shall, within thirty (30) business days of a
request from Canada, provide a summary of the measures that the Recipient proposes to
undertake to remedy the situation. If Canada is not satisfied that the measures proposed
will be adequate to remedy the situation, then Canada may, without limiting any other
rights or remedies it may have at law, declare a default pursuant to Section 15.
e> Condition(s)
The Recipient agrees that Canada has nnobligation 0umake payments under this
Agreement unless and until:
I. the Recipient demonstrates, within forty-five (45)business days nfthe
Effective Date ofthis Agreement, that ithas secured the funds necessary hu
complete the Project.
b} Remedy
|nthe event that the Recipient inunable wmeet the conditions set out hm
Paragraph 4.8 a), Canada may terminate this Agreement at any time. Canada shall not
be liable for any direct, indirect, consequential, exemplary or punitive damages,
regardless of the form of action, whether in contract, tort or extracontractual liability, or
otherwise, arising from the termination mfthis Agreement.
RECIPIENT REPRESENTATIONS ANU WARRANTIES
The Recipient represents and warrants tnCanada that:
u) the Recipient has the capacity and authority to sign this Agreement as duly authorized
hyresolution cfthe Recipient's Common Council dated November 18'2Q18;
b) the Recipient has the capacity and authority 0ocarry out the Pogeot�
x) the Recipient has the requisite power 0oown the Assets;
d) this Agreement constitutes a legally binding obligation of the Recipient, enforceable
against itioaccordance with its terms and conditions;
e} all information submitted to Canada as set out in this Agreement is true, accurate, and
was prepared ingood faith 10the best ofits ability, skill, and judgment;
f) any individual, corporation or organization that the Recipient has hired, for payment,
who undertakes tospeak mnrcorrespond with any employee orother person
representing Canada on the Recipient's behalf, concerning any matter relating to the
contribution under this Agreement or any benefit hereunder and who iurequired tobe
registered pursuant to the federal Lobbying Act, is registered pursuant to that Act, -
g) the Recipient has not and will not make a payment or other compensation that is
contingent upon or is calculated upon the contribution hereunder or the negotiation of
the whole or any part of the terms and conditions of this Agreement to any individual,
or corporation or organization with which that individual is engaged in doing business
with, who is registered pursuant mthe federal Lobbying Act;
h) there are no actions, suits, investigations or other proceedings pending or, to the
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knowledge of the Recipient, threatened and there is no order, judgment or decree of
any court cvgovernmental agency which could materially and adversely affect the
Recipient's ability to carry out the activities contemplated by this Agreement. The
Recipient shall inform Canada immediately if any such action or proceedings are
threatened or brought during the term of this Agreement� and
i) the Recipient is ingood standing under the laws ofthe jurisdiction in which dis
required to be registered.
6. AGREEMENT MANAGEMENT
6i1 AGREEMENT MANAGEMENT REPRESENTATIVES
a) The Parties have an obligation to appoint a representative from their respective
organization for the ongoing administration of the Agreement.
b) Each Party shall notify the other nfthe appointment within thirty (8O) days ofthe
Effective Date ofthe Agreement. Any change tothe appointment shall be
communicated to the other Party in writing within thirty (30) days of the change.
c) The Recipient's representative, or their designated alternate, shall have decision-
making authority related to the Projectand beavailable within nmmore than ten (1U)
business days tmprovide Canada with information pertaining iothe progress ofthe
Project, including Project activities, expenditures, communication evonos, and any
other relevant information asrequired under this Agreement.
6.2 AGREEMENT MANAGEMENT COMMITTEE
Canada may, atits discretion, establish anAgreement Management Committee iomonitor
this Agreement. The Parties shall use the terms ofreference for the Agreement
Management Committee developed byCanada and each Party shall appoint a
representative from their respective organization to participate on the Agreement
Management Committee. Canada shall determine the mandate ofthe Agreement
Management Committee.
7. PROCUREMENT OFGOODS AND SERVICES
7.1 AWARDING OFCONTRACTS
a} The Recipient shall ensure that Contracts are awarded inaway that is transparent,
competitive, consistent with value-for-morley principles, or in a manner otherwise
acceptable LoCanada, and if applicable, in accordance with the Canadian Free Trade
Agreement and international trade agreements.
b) IfCanada determines that the Recipient has awarded aContract |namanner that is
not in compliance with the foregoing, upon notification to the Recipient, Canada may
consider the expenditures associated with the Contract tobeineligible.
7.2 CONTRACT PROVISIONS
The Recipient shall ensure that all Contracts are consistent with, and incorporate, the
relevant provisions of this Agreement. More specifically but without limiting the generality
of the foregoing, the Recipient agrees to include terms and conditions in all Contracts to
ensure that:
a)the Third Party shall keep proper and accurate financial accounts and records,
including but not limited to its contracts, invoices, statements, receipts, and vouchers,
in respect of the Project for at least six (6) years after the Agreement End Date and
that the Recipient has the contractual right tnaudit them;
b> all applicable labour, environmental, and human rights legislation are respected; and
o> Canada, the Auditor General of Canada, and their designated representatives, to the
extent permitted by law, shall at all times be permitted to inspect the terms and
conditions of the Contract and any records and accounts respecting the Project and
shall have free access to the Project sites and to any Project -related documentation
relevant for the purpose ofaudit.
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8. IMPACT ASSESSMENT
8.1 The Recipient represents and warrants that the Project isnot o"designated project" aa
defined insection 2ofthe Impact Assessment Ac (|AA) and isnot a^projoof asdefined in
section 81 ofthe IAA.
8.2 Canada's funding under this Agreement is conditional upon Canada being satisfied that
Canada's obligations, ifany, under the IAA and applicable agreements between Canada
and Indigenous groups are met,
INDIGENOUS CONSULTATION
Canada's funding under this Agreement is conditional upon Canada meeting any legal
duty to consult, and if applicable any obligation to accommodate Indigenous groups,
Canada may itself have inrelation tothe Project.
10. CLAIMS AND PAYMENTS
10.1 PAYMENT CONDITIONS
e) Canada shall not pay interest for failing tumake apayment under this Agreement.
b) Canada shall not pay any claims submitted after the Final Claim Date, unless
otherwise accepted byCanada.
o) Canada shall not pay any claims until the requirements under Subsection 4.8, and
Sections 8 and 9, if applicable, are, in Canada's opinion, satisfied to the extent
possible atthe date the claim iusubmitted hnCanada.
d) Canada shall not pay any claims until the reporting requirements under Schedule C
are met and Canada has accepted the information, and any audit requirements in
Section 12 and any communications requirements outlined in Schedule Eam met at
the time the claim issubmitted toCanada.
10.2 PROGRESS CLAIMS
a) Ineach Fiscal Year, the Recipient shall submit toCanada, atandnimum.unloss
otherwise agreed tobyCanada, requests for payment mnmquarterly basis covering
the Recipient's Eligible Expenditures inaformat provided byand acceptable in
Canada. Each request for payment must include the following:
I. anappropriate Certificate ofCompliance for Payment Requests inaccordance
with Schedule C\ regarding the claimed Eligible Expenditures. Each request
for payment and Certificate ofCompliance for Payment Requests shall b*
signed by the chief financial officer or delegated financial officer, designated in
writing by the Recipient, confirming that the claimed Eligible Expenditures
were incurred and paid;
abreakdown ofEligible Expenditures claimed in the form provided byCanada,
and any supporting documentation, including detailed invoices and/or any
other documentation required for Eligible Expenditures claimed that |s
satisfactory to Canada; and
iii. any reporting due imaccordance with Schedule C.
N Canada shall make apayment upon review and acceptance ofarequest for payment,
subject to the terms and conditions of this Agreement.
10.3 FINAL CLAIM
The Recipient shall submit afinal claim to Canada by the Final Claim Date covering the
Recipient's Eligible Expenditures in a form acceptable to Canada. The final claim must
a) all information required under Subsection 10.2;
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b) o completed Declaration of Completion in accordance with, Schedule F; and
n) upon request byCanada, any ofthe documents referenced inSchedule F
10.4 FINAL ADJUSTMENTS
Upon receipt ofthe final claim, but before Issuing the final payment, the Parties will jointly
carry out a final reconciliation of all claims and payments in respect of the Project and
make any adjustments required inthe circumstances.
10.5 WITHHOLDING OF CONTRIBUTION
Canada may withhold up to twenty five percent (25%) of its contribution towards Eligible
Expenditures claimed under this Agreement. Any amount withheld by Canada shall be
released when the final adjustments have been completed under Subsection 10.4 and the
Recipient fulfills all] its obligations under th�is Agreement.
10.6 DECLARATION OF COMPLETION
a) Prior iosigning the Declaration cfCompletion, the Recipient shall request Canada's
written confirmation ofthe list ofrelevant documents that the Recipient shall provide
with its Declaration ofCompletion.
b) The Declaration ofCompletion must besigned byonauthorized official ofthe
Recipient that iadeemed acceptable byCanada, and hmust list all relevant
documents that Canada deemed to be necessary in its written confirmation to the
10k7 PROGRAM INFORMATION MANAGEMENT SYSTEM
a)The Recipient shall use the System, many another process designated by Canada to
fulfill the obligations ofthe Recipient under this Agreement, including but not limited to
Sections 10, 11 and 12.
b) The System will beavailable tothe Recipient inboth official languages and the
Recipient can report inthe official language ofits choice. Modifications and
improvements mthe System shall bemade byCanada atits own expense. Canada
hereby grants to the Recipient the right to use the System for the purposes herein
described. All intellectual property rights inthe System vest inCanada.
o) Subject 0oCanada's approval, the Recipient may fulfill the requirements outlined im
this Subsection byusing analternate approach that may include apaper-based
documentation system.
11, REPORTING
a) The Recipient shall comply with and complete the Project and performance reporting
requirements outlined in Schedule C.
b) The Recipient shall submit uprogress report toCanada onasemi-annual basis, at
minimum. Unless otherwise agreed tobyCanada, the Recipient shall submit the first
report no later than October 30 covering the period from April 1 to September 30, and
esecond report no later than June 3Ocovering the period from October 1 toMarch 31
in a format provided by and acceptable to Canada and in accordance with Schedule
CA.Canada reserves the right to request more frequent progress reporting, such as
quarterly reports, nrany information relevant hothe Project.
c) The Recipient shall submit toCanada afinal report in a format provided by and
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12.1 RECIPIENT AUDIT
a) Canada may conduct periodic audits of the Recipient's compliance with the terms and
conditions ofthis Agreement, including without restriction, compliance with the
financial provisions, during the term of the Agreement and up to two (2) years after
the Agreement End Date. Canada may direct that an audit be oeniod out by an
independent accredited auditor or other representative appointed by Canada. The
Recipient shall cooperate with Canada's representatives, employees, or contractors
relative to any such audit, providing at no cost reasonable and timely access to the
Project sites, the Recipient's fauiNhes, and any Project -related documentation for the
purposes of audit, evaluation, inspection and monitoring compliance with this
Agreement. Canada shall bear the costs of audits undertaken pursuant to this clause.
h) The Recipient agrees to inform Canada of any audit that hos been conducted on the
use of contribution funding under this Agreement at the Project or Program |evo|, and
toprovide Canada with, all, relevant audit reports.
The Recipient acknowledges that the Auditor General ofCanada may, tothe extent
permitted by law and after notification to the Recipient, conduct an inquiry under the
euthuhb/ofsuba*uVon7.1(1)ofthefedem|Auddm/GonenaAufrespectingtheReoipimn[a
compliance with the terms and conditions of this Agreement or an inquiry into the
Recipient's procedures to measure and report on performance with respect to this
Agreement. The Recipient shall cooperate with the Auditor General and his or her
representatives, employees, or contractors relative to any such inquiry and grant them
access to the Recipient's documents, records, and premises for purposes of any such
inquiry. The Aud!itor General may discuss any concerns raised in such an inquiry with the
Recipient and with Canada. The results may be reported to Parliament in a report of the
Auditor General.
12.3 CORRECTIVE ACTION
Without prejudice toCanada's right {oexercise any remedy available bylaw nrpursuant Vn
this Agreement usaresult ofadefault nnthe part ofthe Recipient, where amaudit ofthe
Recipient reveals an element of non-compliance with the terms and conditions of this
Agreement, orifthe Recipient denies access ko documents, records, orpremises, orfails
to provide the necessary cooperation or assistance to conduct an audit, the Recipient may
be required to develop and provide Canada with a plan of corrective action within thirty
(30) days of receiving notice of the non-compliance. Such a plan must outline the
procedures Vuenact corrective measures that are acceptable toCanada, and must be
accompanied by a written undertaking on the part of the Recipient to implement the plan.
The Recipient shall keep proper and accurate financial accounts and renorda, including
but not limited to its Contracts, invnices, ntatemen»e, eoeipm, and vouohera, in respect of
the Project, for atleast six (0)years after the Agreement End Date.
12.5 EVALUATION
Canada may engage in an evaluation of the Program for the purposes of assessing its,
continued relevance and impact. The Recipient shall cooperate with the work carried out
by Canada, its mpnauemtatiwe, employnee, or contractors relative tnany such evaluation
and agrees to provide Project -related information to Canada, at no cost to Canada, over
the term ofthis Agreement and upbuone year after the Agreement End Date, Canada
shall pay the costs of evaluations undertaken pursuant to this Subsection, All evaluation
results may b*made available tothe public.
13. INTELLECTUAL PROPERTY
a) All intellectual property rights inany materials mworks ("Materials") that arise out of
or under this Agreement shall be owned by the Recipient or by a third party, as set out
in an agreement between the Recipient and such third party.
10
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b) The Recipient will obtain the necessary authorizations, moneeded, for the
implementation of the Project, from third parties who may own the intellectual property
rights or other rights in respect of the Project. Canada shall assume no liability in
respect of claims from any third party in relation to such rights and to the Agreement.
o} The Recipient hereby grants |oCanada enon-exclusive unconditional, fully -paid and
roya|ty'froe, pe9etma|, worldwide, and irrevocable licence 0o use and exercise all
intellectual property rights in the Materials that vest in the Recipient under Paragraph
13 a) of this Agreement, for any public purpose except commercial exploitation in
competition with the Recipient. Canada's licence includes the right to use, produce,
publish, translate, reproduce, adapt, modify, disclose, share, distribute and broadcast
the intellectual property.
o) Notwithstanding any other provision of this Agreement, the Recipient shall preserve,
maintain, and use any Assets for the purposes of the Project, and shall not dispose of
any Asset during the Asset Disposal Period, unless the Recipient notifies Canada in
writing and Canada consents iuthe Asset's disposal.
b) Unless otherwise agreed to by Canada, upon alternate use, lease or disposal of any
Asset, including selling, encumbering orcharging ofenAsset, whether directly or
indirectly, during the Asset Disposal Period, the Recipient shall reimburse Canada, ma
determined by Coneda, in whole or in part, an amount offunds contributed by Canada
tothe Asset under this Agreement.
15. DEFAULT
Canada may declare mdefault under this Agreement ifany of the following events occur
a) The Recipient has not complied with one ormore ofthe terms ornnodbionoofthis
Agreement;
b> The Recipient has not completed the Project in accordance with the terms and
conditions ofthis Agreement;
c> the Recipient has submitted false or misleading information to Canada or has made a
false or misleading representation in respect of the Project or any matter related to this
Agreement, except for an error in good faith, demonstration of which is incumbent on
the Recipient, AoCanada's satisfaction;
d) the Recipient has neglected or failed to pay Canada any amount due in accordance
with this Agreement;
e> the Recipient becomes insolvent, commits an act of bankruptcy, has a bankruptcy
order made against it, makes an assignment to the benefit of creditors, takes the
benefit cfostatute relating iobankrupt and insolvent debtors, goes into receivership or
bankruptcy, ceases to actively carry on a business, or is wound up or d�issolved.
16. REMEDIES ON DEFAULT
16.1 KCanada declares onevent ofdefault hunncounnd,thanCmmadamay^inaddihontoany
other remedy provided bylaw urpursuant AzU`ioAgmementoxer ivaonacvmoreoftho
following remedies:
a) Where Canada determines that the Recipient's default iacapable ufcure and that o
delay for these purposes is appropriate, the Minister reserves the right to send a
written notice of default to the Recipient specifying a cure period of no fewer than
twenty (20) days from the date of the Recipient's deemed receipt of the notice and
requiring that the Recipient provide to Canada with proof of the cure within that delay;
If the Recipient fails tocure the default and provide Canada with, proof ofcure within
the specified period, Canada may give the Recipient written notice o[termination of
this Agreement, and require the Recipient to reimburse all or part of Canada's
contribution disbursed, with interest, calculated in accordance with the Interest and
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Administration Charges Regulations, from the date ofdemand for reimbursement, and
also to exercise any other remedy provided by law that Canada deems appropriate;
b) Suspend the payment of any amount in respect of Canada's contribution, regardless
of whether the amount is owing, prior to or after the date of such suspension; or
o) Immediately terminate this Agreement by means of a written notice of default and
termination given to the ReoipiemL, and also to exercise any other remedy provided by
law that Canada deems appropriate, including requiring the Recipient to reimburse all
or part of the Canada's contribution disbursed, with interest, calculated in accordance
with the Interest and Administration Charges Regulations, from the date ofdemand
for reimbursement.
16.2 Notwithstanding this Section ofthe Agreement, the occurrence ofonevent ofdefault listed
[nParogrsph15d)sha|Uauhmmefioul|y1riggeradefau{tunderth|eAgnaement.withnutany
further notice to the Recipient.
17. TERMINATION FOR CONVENIENCE
At any time before the completion of the Project, Canada may, by giving notice in writing
to the Recipient, terminate this Agreement. The notice of terminationshall give the
Recipient thirty (3O)days' prior notice ofthe termination. SuNect to the maximum amount
of Canada's contribution and the terms, conditions, and limitations of this Agreement,
Canada shall reimburse the Recipient for reasonable Eligible Expenditures incurred by the
Recipient for the purpose of the Project up until the end of the said notice period, including
any reasonable costs incurred related 0othe termination of the Agreement. The Recipient
shall cause any Contracts related mthe Project, including employment Contracts when
feasible, to be on terms that will minimize its own cancellation costs and Canada's costs.
118. LIMITATION OFLIABILITY AND INDEMNIFICATION
18.1 DEFINITION OFPERSON
inthis section, ^Persnn includes, without limitation, aperson, the Recipient, aThird Party,
a corporation, or any other legal entity, and their officers, servants, employees, agents or
mandataries.
18.2 LIMITATION OF LIABILITY
mnoevent shall Canada, its servants, employees oragents beheld liable for any
damages in contract, tort (including negligence), extra co ntractua I liability or otherwise, for:
a> any injury ioany Person, ino|uding, but not limited to, doath, economic loss or
infringement ofrights,
b> any damage ioorloss o/destruction cfproperty ofany Person, or
o) any obligation of any Person, including, but not limited to, any obligation arising from a
loan, lease orother long term obligation,
inrelation |nthis Agreement orthe Project.
18.3 INDEMNIFICATION
The Recipient shall at alltimes indemnify and save harmless Canada, and its servants,
employees, and agents, from and against all actions, claims, demands, losses, costs,
damages, suits or other proceedings, whether in contract, tort (including negligence),
extracontractual liability or otherwise, by whomsoever brought or prosecuted in any
manner based upon oroccasioned by:
a> any injury to any Person, including, but not limited to, death, economic loss or any
infringement nfrights,
b) any damage tuorloss ordestruction ofproperty nfany Person, or
o> any obligation of any Person, including, but not limited to, any obligation arising from a
loan, lease orother long term obligation,
IF,
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in relation tothis Agreement, orthe Project, except b,the extent 0owhich such actions,
claims, demands, losses, costs, damages, suits orother proceedings are caused bythe
negligence or breach of the Agreement by a servant, an employee or agent of Canada in
the performance of his or her duties.
19. DISPUTE RESOLUTION
a) The Parties shall keep each other informed ofany issue that could bocontentious by
providing written notice as well as information relevant iothe issue to the other Party.
The Parties ohaU, ingood faith and maaanub;y, make best efforts ho resolve the issue
and shall have twenty ) business days following receipt ofanotice during which 0o
examine and discuss the issue with a view to resolving it. Following the twenty (20)
business day period, the Parties shall have no more than fifteen (15) business days
during which kzcome toadecision with respect Nthe issue.
b> Any payments related to the issue in dispute shall be suspended, together with the
obligations related to such issue, pending resolution.
n) The Parties agree that nothing inthis section shall affect, alter cxmodify the rights of
Canada hoterminate this Agreement.
Without limiting the scope of the set-off orcompensation rights available to the federal
Crown at common law or|nthe Civil Code ofO��(S,Q.'199f'c64).under the
Financial Administration Act (R.S.C., 1985, c. F-1 1) or otherwise, Canada may:
o) set-off orseek compensation against any portion ofthe contribution that inpayable hz
the Recipient pursuant iothis Agreement, any amount that the Recipient owes to the
federal Crown under legislation o/any other agreement o(any kind; and
b) set-off orseek compensation against any amounts that are owed huCanada bythe
Recipient, any amount that inpayable bythe federal Crown under legislation orany
other agreements ofany kind iothe Recipient.
Any amount owed |oCanada under this Agreement by the Recipient shall constitute a
debt due kothe federal Crown, which the Recipient shall reimburse toCanada forthwith on
demand.
22. INTEREST ONDEBTS DUE nOTHE FEDERAL CROWN
Debts due 8zthe federal Crown bythe Recipient shall accrue interest in accordance with
the federal Interest and Administrative Charges Regulations (SOR/96-188).
21 DECLARATION OpN0PR1NCIPAL-AGEN[EMPLOYER-EMPLOYEE CLAUSE
Nothing contained in this Agreement creates or is to be construed as creating the
relationship of principal and agent, employer and employee, partnership or joint venture
between the Parties. The Recipient shall not represent itself (induding in any agreement
with a third party), as an agent, employee, or partner of the Minister or in a manner that
could lead amember ufthe public hobelieve that the Recipient isenagent, employee, or
partner of the Minister.
24. CONFLICT OFINTEREST
The Recipient declares that individuals who are subject k»the provisions ofthe Conflict of
Interest Act (IC.2OOO.c.8.s.2).the Conflict ofInterest Code for Members cathe House
ofCommons, the Conflict ofInterest Code for Senators, the Conflict nfInterest and Post -
Employment CodeforPubHo0ffioeMo|dem.theEnvim^noen\andCiimm/oChango
Canada Values and Ethics Code, the Values and Ethics Code for the Public Sector, or any
other values and ethics codes applicable within provincial or territorial governments or
specific organizations, cannot derive any direct benefit resulting from this Agreement
13
170
EXECUTION COPY
unless the provision orreceipt ufsuch benefit isincompliance with such legislation and
codes.
25. NOAUTHORITY TOREPRESENT
Nothing in this Agreement is to be construed as authorizing any person, including a Third
Party, to contract for or toincur any obligation onbehalf ofCanada ortoact maanagent
for Canada. The Recipient shall take the necessary action to ensure that any Contract
between the Recipient and any Third Party contains aprovision iothat effect.
26. ACCESS nOINFORMATION ACT AND PRIVACY ACT
Subject mthe Access /nInformation Act (F�S.C..1S85 o,A,1)and the Privacy Act
(R.&C, 1985, c. P-2�), all information pertaining to the contribution provided under this
Agreement ispublic information and may bedisclosed to third parties upon request under
the relevant Act,
27. OFFICIAL LANGUAGES
All public information documents related to the Project prepared by or paid in whole orin
part byCanada must be made availablei both official languages, when Canada
determines that this is required under the Official Languages Act (R.S.C., 1985, c� 31 [411
Supp]) Tout document d'infonnoUonpubUiquapr6par6oupay6entout ouenpartiepar Ue
Canada myan1trait auprojo(doi(6+reoffertdans les deux |ongueenffinie||ea,|umquolu
Canada le juge pertinent, conform6ment 6 la Loi sur les langues officielles (L.R.C., 1985,
28. LANGUAGE OFCONTRIBUTION AGREEMENT
This Agreement isdrafted inEnglish olthem4uoo ofthe Parties. Les Parties mntoonwenu
29. LOBBYISTS
The Recipient shall ensure that a person lobbying, as described in the federal Lobbying
Ac (FlS.C..1905 c44[4thSupz]),onthe Recipient's behalf iscompliant with that Act
and has not received, and will not receive, any payment,directly nrindirectly, from the
Recipient that is in whole or in part contingent on the Recipient obtaining this Agreement.
30� WAIVER
Canada may waive any condition toCanada's benefit upon giving written notice to the
Recipient. Failure by either Party to exercise any of its rights, powers, or remedies under
the Agreement shall not constitute a waiver of such right, power, or remedy. Any exercise
ofaright, power, orremedy shall not prevent the Minister imany way from later exercising
the same orany other right, power, orremedy under this Agreement.
31. GOVERNING LAW
This Agreement shall be governed by, and is to be interpreted in accordance with, the
applicable federal laws and the laws in force in the Province of New Brunswick,
This Agreement is binding upon the Parties and their respective successors and assigns.
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171
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33. NOTICES
e> Any notice, information or required documentation provided for under this Agreement
shall be sent in writing or by any method of telecommunication, and unless notice to
the contrary is given, shall be addressed to the Party concerned at the following
To Canada
Director General
Programs Directorate
Pan -Canadian Framework Implementation Office
Environment and Climate Change Canada
2ODBoulevard 8aor6-Coeur
Fontaine Building
Gatineau, QC
K1AOH3
Tnthe Recipient:
Common Clerk
City Hall
15Market Square
P.O.Box 1971
Saint John, NB
E2L1EO
ortosuch other address or addressed tosuch other person eoone ufthe Parties
designates inwriting Vothe other Party.
b) Notices, requests, and documents are deemed 0ahave been received ifsent by
registered mail when the postal receipt is acknowledged by the other Party, by
electronic mail when transmitted and receipt is confirmed, and by messenger or
specialized courier agency when delivered.
34. SEVERABILITY
|fany provision ofthis Agreement isdetermined boboinvalid nrunenforceable, inwhole or
inpart, byacourt o{competent jurisdiction, such invalidity orunenforceability shall not
affect the remaining terms orprovisions ofthis Agreement.
35. ENTIRETY OFCONTRIBUTION AGREEMENT
This Agreement comprises the entire agreement between the Parties. Noprior document,
negotiation, provision, undertaking, cxagreement inrelation mthe subject o[the
Agreement has legal effect, unless incorporated byreference inmthiaAQreome/t. No
representation or warranty expressed, implied, or otherwise, is made by Canada to the
Recipient except usexpressly set out inthis Agreement.
36. SURVIVAL
The Parties' rights and obligations which, hytheir nature, extend beyond the expiry mearly
termination of this Agreement shall survive the expiry or early termination until such a time
as they have been satisfied or they have, by their nature, expired.
37. ASSIGNMENT OFTHE CONTRIBUTION AGREEMENT
This Agreement or any payment, rights mobligations thereunder, shall not be assigned, in
whole orinpart, without the prior written consent ofthe Minister. Any oaoig�nmenimade
without such prior written consent |svoid and ufnoeffect.
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38. COMMUNICATIONS
38A The Parties shall comply with the Communications Protocol in Schedule E to this
Agreement.
38.2 The Recipient shall acknowledge Canada's contribution in all signage and public
communication produced as part of the Project or Agreement, in a manner acceptable to
Canada, unless Canada communicates in writing to the Recipient that this
acknowledgement is not required.
38.3, The Recipient acknowledges and agrees that the following may be made publicly available
by or on behalf of Canada:
a) its name, the amount provided by Canada, and the general nature of the Project; and
b) any evaluation or audit report and other reviews related to this Agreement.
This Agreement, including its schedules may be amended from time to time on written
agreernent of the Parties by their respective authorized representatives or as otherwise
provided for herein.
40. SIGNATURE IN COUNTERPARTS
This Agreement may be signed in counterparts, each of which so signed shall be deemed
to be an original, and such counterparts taken together shall constitute one Agreement.
IN WITNESS WHEREOF the Parties' duly authorized representatives have executed this
Agreement:
HER MAJESTY THE QUEEN IN RIGHT
OFCANADA
Per.Oergeijimine — ------
Director General , Programs Directorate
THE CITY OF SAINT JOHN
Per: Don Darling
Mayor
Date Date
Per: Jonathan Taylor
Common Clerk
79M
Cot o—uncil" —Reso1—utio—nDat—e----
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SCHEDULE A — ELIGIBLE AND INELIGIBLE EXPENDITURES
SCHEDULE A.1: ELIGIBLE EXPENDITURES
Eligible Expenditures must�
i) bereasonable and directly related tothe Project, aodetermined by Canada;
ii) heincurred and paid between the Effective Date and the Final Claim Data; and
iii) consist ofthe following categories ofexpenditures:
a> costs of acquiring, constructing, rehabilitation and improvement of Assets;
b) costs of material and su�pplies;
c) professional fees for contracted oervioes, such asaccounting, communications, official
languages translation, audit, GHG emission reductions and energy savings estimate
verification, and results monitoring, measuring and reporting;
d> costs of planning and assessment, such as surveying, engineering, architectural
supervision, testing, and management consulting services. Canada will only contribute up
to a maximum of 5% of its total contribution to the Project towards these costs;
e) all capital costs, including site preparation and construction costs, only once Canada is
satisfied that Canada's obligations, if any, related to applicable federal environmental
assessment or impact assessment legislation and agreements between Canada and
Indigenous groups, and the legal duty to consult with, and accommodate, Indigenous
groups have been met;
f} costs ofperforming activities related h,the Project bycontractors;
g) costs associated with licenses and pennite�
h> costs of renting or leasing of equipment related to the construction of the Project;
i) training costs related tonew technologies, equipment, software and oyshamm�
j) costs of engineering and environmental reviews, including costs related to an
environmental or impact assessment, and the costs of mitigation measures, follow-up, and
remedial activities identified inany environmental orimpact assessment;
h) costs related to the consultation of Indigenous groups, specifically Project -related
consultation activities arising as a result of the Government of Canada's legal duty to
consult, where applicable;
|) the incremental costs of the Recipient's employees may be included as Eligible
Expenditures, Canada will only contribute up to a maximum of 2% of its total contribution
hothe Project towards these costs provided that:
l� the Recipient is able to demonstrate that it is not economically feasible to tender a
Contract and clearly demonstrate that there iavalue for money in using internal
employees;
Z the employee iaengaged directly inrespect ofthe work that would have been the
subject ofthe Contract; and
3. the arrangement isapproved inadvance and in writing byCanada.
nd costs directly associated with joint federal communication activities (e.g. press naleanea,
press conferences, translation) and with Project signage related mfunding recognition;
m) travel expenditures (including the cost of accommodations, vehicle rental and kilometric
rates, bus, train, airplane or taxi faree, allowances for meals and incidentals). Canada will
only contribute uphoamaximum of 5%ofits total contribution tothe Project towards these
costs, Of note, travel and per them expenses cannot be more than the rates and
allowances determined imthe �
.
u> provinciallterritorial sales tax, goods and services tax, or harmonized sales tax for which
the Recipient or a Third Party is not eligible for a rebate, and any other costs that are
ineligible for rebate; and
p) other costs that, inthe opinion ufCanada, are considered hobedirect and necessary for
the successful implementation of a Project and have been approved by Canada in writing
prior imbeing incurred.
Eligible Expenditures donot include cash -equivalent expenditures associated with In -Kind
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The ineligible expenditures include, but are not limited to the following:
a) any Costs, as defined in Subsection 2.2 of the Agreement;
b) expenditures related to developing a business case or proposal for funding;
c) any expenditures related to a Contract signed prior to the Effective Date of the Agreement;
d) expenditures related to purchasing land, buildings and associated real estate and other fees,
and vehicles;
e) financing charges and interest payments on loans, including those related to easements and
servitudes (e.g. surveys);
f) legal fees;
g) costs of renting or leasing of equipment, except those specified as Eligible Expenditures;
h) furnishing and non -fixed Assets which are not essential for the operation of the Project;
1) expenditures associated with operating expenses and regularly scheduled maintenance work;
j) any goods and services which are received through donations or in-kind contributions;
k) any overhead costs, including salaries and other employment benefits of any employees of
the Recipient, direct or indirect operating or administrative costs of the Recipient, and more
specifically the costs related to planning, engineering, architecture, supervision, management
and other activities normally carried out by its staff, except for those costs specified as Eligible
Expenditures in Schedule A.1 iiL d) and 1) above;
1) all capital costs, including site preparation and construction costs, until Canada is satisfied
that Canada's obligations, if any, related to applicable federal environmental assessment or
impact assessment legislation and agreements between Canada and Indigenous groups, and
the legal duty to consult with, and accommodate, Indigenous groups, have been met; and
m) provincial/territorial sales tax, goods, and services tax, or harmonized sales tax for which the
Recipient or a Third Party is eligible for a rebate, and any other costs eligib,le for rebates.
18
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The City of Saint John will develop a District Energy System (CIES) at the Market Square facility
at 1 Market Square, Saint John, New Brunswick, (NB) to connect and provide renewable heating
and cooling to four buildings (Market: Square, Genesys, Hilton Hotel and Canada Games Aquatic
Centre). The DES will use various energy sources such as heat recovery, waste energy as well
as geothermal and be designed to allow the connection of more buildings in the future. The DES
will utilize heat pump technology to harness energy recovery for distribution between the
connected sites and will result in GHG reductions in 2030 of 1065 tonnes of carbon dioxide
equivalent (eCO2),
The key activities of this Project consists of the following:
1. Planning, design, and tender (Effective date to June 2021).
• Hire consultant to plan and design DES
• Finalize actual design
• Consultant prepares public tender package to hire contractor(s)
• Council approves contract(s)
• Project awarded' to contractor(s)
2. Installation of Central Plant, including the purchase and installation by contractors and
manufactures (December 2019 to October 2021)
* Heat recovery chillers
• Isolation of thermal storage cells from main loop heat exchange and pumps
• Electrical and controls for the new equipment
• Condenser water pumps and accessories for geo-exchange
O Cold and hot water mains
3. Connection of DES to the following buildings (September 2020 to March 2022)
The Market Square, located at 1' Market Square, Saint John
0 Hilton Hotel, located. at 1 Market Square, Saint John
+ Genesys, located at 50 Smythe St, Saint John
« Canada Games Aquatic Centre, located at 50 Union St, Saint John
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Project Outcomes:
Outcome 1: Total estimated domestic GHG reductions in tonnes of carbon dioxide equivalent
Reductions in 2030 Cumulative GHG reductions over
es CO2 eq.) the Project lifetime up to 2050
Project or activity GH
District Energy System 4, 100 210,890
Outcome 2: Total estimated energy savings in gigajoules, if applicable
project-act'il Energy savings in 2030 Cumulative energy savings over
(gigajoules) the Project lifetime up to 2050
District Energy System 93,790: 4,9 2 4, 0 7 0
Outcome 3: Estimated full -time -equivalent jobs created in each fiscal year by the implementation of
the Project
2019-2020 2021 2022 Total
J Indicator 20182019 2020-2021
cumulative
Number of jobs created NA 175 175 175 525
Outcome 4: Other applicable benefits associated with the Project, as applicable
Description of how the Project is achieving or expects to achieve this
co -bene fit
Other benefits
Environmental: improvement This Project is seen as a catalyst in reducing community GHG emissions
to air quality and/or reduction with an, estimated reduction of over 560,000 tonnes of eCO2 over the
of air pollution I lifetime of the Project. The implementation of this Project will help improve
'the air quality and reduce air pollution through the displacement of fossil
fuels. The City suffers from poor air quality as a result of large industries
emitting air pollution, The long-term vision of the DES is to connect it to the
Irving Pulp and Paper plant in Saint John to recover industrial waste energy
and use this thermal energy to heat future buildings that otherwise cannot
i be heated if using geothermal or low temperature loop.
Clean Growth: Project has The City of SaInt John was one of the first Canadian municipalities to
the potential for replicable or embark on creating an energy efficiency program. The Oty has received
enables similar projects to many regional and national awards for its energy efficiency program and
be undertaken in Canada in has helped many municipalities across Atlantic Canada in the past to
the future. undertake such an initiative. The City will continue to share its lessons
learned and information regarding the DES and how this Project could be a
model for other communities to replicate. The City through the asset and
energy management department will hold presentations, workshops, and
provide Key Performance Indicators (KPIs) through public monitoring
systerns to engage the public and other communities.
:,Environmental: Adaptation to The proposed DES will include a backup generator to ensure continuous
climate change heat/cool to customers, especially in case of power outages as a result of
climate change events such as flooding, ice storm or high intensity rain, in
addition,, the energy retrofit measures will take into consideration the impact
of climate change on the municipal building including the waste water
facilities, such as Solar Photovoltaics (PV) for power back up in case of
emergency, roof structure to mitigate extreme weather events, etc. These
facilities could be used as a shelter in case of emergency, The City asset
management policy has indicated that climate change will be considered on
any renewal or new assets.
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SCHEDULE B.2: PROJECT BUDGET
Ero�ect District Energy System'
Total costs of the Project��-�
$4,879,900 100%-
Total Eligible Expenditures of the Project
$4,667,729 95.65%
......... ............ .......
Total Ineligible Expenditures of the Project
$212,171 4.35%
........ .._......... ,..
Recipient's contribution towards Eligible Expenditures
t
$2,800,637 60%
Canada's maximum contribution towards Eligible Expenditures
$1,867,092 40%
EXPENDITURES / FISCAL YEAR BREAKDOWN
FUNDING —
REQUEST TOTAL
2018-2019 2019-2020 2020-2021 2021-2022
Total Project expenditures 1
Total Eligible 1 $4,667,729 WWW W .,-$0 $893,172 $1,991,143 $1,783,414
Expenditures
Total Ineligible 1 $212,171 $0 $110,212 $101,959 $0
Expenditures
Total of All $4,879,900 $0 $1,003,384 $2,093,102 $1;783,414
Expenditures
Canada's contribution pertaining to each Fiscal Year
Uncapped Eligible 0 ..-.- WW -'-9, 406 ..
1,778,400 .... W -..
$ $ $756,634 $682,360
Expenditures
Eligible planning $86,692 $0 $17,863 $39,823 $31,006
expenditures
(capped at 5% of
Canada's
contribution)
Eligible $0 $0 $0 $0 $0
incremental
employee
expenditures
(capped at 2% of
Canada's
contribution)
Eligible travel $0 $0 $0 $0 $0
expenditures
(capped at 5% of
Canada's
contribution)
Total Canada's $1,867,092 $0 $357,269 ` $796,457 $713,3661
contribution
toward Eligible
Expenditures
pertaining to each
Fiscal Year
21
178
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EXECUTION COPY
SCHEDULE C — REPORTING REQUIREMENTS
SCHEDULE CA: PROGRESS REPORT
The progress report shall include, eiominimum, the following information for the Project.
Canada reserves the right to request additional information atany time.
Section C.t1:Updated Schedule B
a) Updates to all sections of Schedule B.
Section C.1.2:Workplan, Progress, and Risk Mitigation
o) Applicant Name;
b) Title of the Project;
o> Fiscal Year c#Project progress report;
d) Description Wthe Project progress and major achievements hudate;
a) Detailed description of the activities undertaken and work completed for the reporting Fiscal
Year;,
f) Progress ofactions/work towards completion
(Y6>�
g> Detailed description ofthe actions/work tobecompleted ineach nrthe future Fiscal Years;
h) Issues, areas of concern, changes or risk factors that may affect completion, the schedule or
the budget of the Project, if applicable, as per original plans and the proposed mitigation
strategies uucorrect the situation;
i> If relevant, updated status of the implementation of mitigation measures, activities and follow-
up measures that are required to be performed during the Project implementation as a result
of consultations with Indigenous peoples, organizations, governments, or communities;
]> |fthe Project required environmental urimpact assessments, permits, nrauthorizations,
provide anupdate onactivities taken 0ocomply;
h) Updated status of non -greenhouse gas environmental monitoring and verification
requirements related to the Project, if relevant, both expected and unexpected, and the
conditions proposed toaddress these oono*ma�
|) Confirmation offederal signage installation, ifapplicable;
m) Highlights of communication activities of the Project during the reporting period;
Section C.1.3: Project Outcomes
a) Description ofthe methodology and assumptions included in the original proposal for
estimating greenhouse gas (GHG) emissions reductions and, if applicable, energy savings;
b) Table summarizing the calculations included in original proposal for estimating GHG
emissions reductions and, ifapplicable, energy savings;
c) Updated monitoring!, reporting, and verification plan, describing key indicators, measurement
approach, and data collection and retention approach;
d> Updated GHG emissions reductions and, if applicable, energy savings, estimates with
updated data omperformance indicators, a000unhnghz,onymvoiooeinoaaumptionsond
oa|ou|eduna;
o) Issues, areas ufconcern, changes orrisk factors that may affect GNGoutcomes, if
applicable, as per original plans and the proposed mitigation strategies to correct the
f) Updated job creation estimates for the reporting Fiscal Year;
g) Updated description of other benefits with any additional information obtained; and
h) Supplementary supporting data, underlying assumptions, description of methodologies and
detailed information as required to explain changes to estimates made to Schedule B.
24
EXECUTION COPY
The final report shall include at a minimum the following information. Canada reserves the right
to request additional information,
a) All information required under Schedule CA above.
b) ACertificate ofCompliance for Final Request for Payment completed inaccordance with
Section 2ofSchedule D.
u) Lessons learned about how issues were addressed or solutions were found, orhow program
parameters could be modified in future programming.
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EXECUTION COPY
SCHEDULE D—CERTIRCATE(S) OF COMPLIANCE FOR PAYMENT REQUESTS
1.Certificate ofCompliance for Progress Payment Requests
CERTIFICATE OF COMPLIANCE
FOR PROGRESS PAYMENT REQUEST ("Certificate")
|nthe matter dthe Challenge Funding Agreement Regarding [insert name ofProject aminthe
title of the Agreementonthe first page nfthe Agreement] entered into between Canada and
[Recipient] (the "Recipient") on l'insert date] (the "Agreement").
i )ufthe City/Town of___
Pmvince/Territoryuf declare msfollows:
1. That I hold the position of Chief Financial Officer, or a delegated Financial Officer, with the
Recipient and aysuch have knowledge of the matters set forth inthis Certificate and believe
this declaration tobetrue.
2. 1 have read and understood the Agreement and reviewed the attached progress payment
request prepared by the Recipient for submission to Canada, dated [insert date], and have
knowledge of the business and affairs of the Recipient and have made such examinations or
investigations aeare necessary iogive this Certificate and vuensure that the information
contained herein iotrue and accurate.
3, All the expenditures claimed by the Recipient in the attached progress payment request for
the following Project Components oanaii|u0n Eligible Expenditures nsdefined in Subsection
2,2 of the Agreement
m) [insert Project Component nmnva.1;
b) (insert Project Component name];
4. This Certificate does not preclude Canada from exercising its right 0nverify, audit orinspect
inaccordance wKhUmAgewmomt
5� As of the date of this Certificate, the Recipient has performed all covenants under the
Agreement that are required Vobnperformed byitono/prior hothe said date.
0. |nnremenkaU\y.audefined in Subsection 2.2nfthe Agreement, has been respected.
7. The Recipient hereby represents and warrants that the information provided to Canada is
true and accurate inall respects ot the date ofthis Certificate,
Dated, this day of8
Signature
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183
EXECUTION COPY
2.Certificate mf Compliance for Final Payment Requests
CERTIFICATE OF COMPLIANCE
FOR FINAL REQUEST FOR PAYMENT ("Certificate")
|nthe matter of the Challenge Funding Agreement Regarding [insert name of Project as in the
title of the Agreement on the first page of the Agreement] entered into between Canada and
[Recipient] (the "Recipient") on [insert date] (the "Agreement").
|, of tmCitw7own of
Pmvinre/Territowpf declare eafollows:
1) That | hold the position ufChief Financial Officer, oradelegated financial officer, with the
Recipient and as such have knowledge of the matters set forth in this Certificate and believe
this declaration tubetrue.
2) 1 have read and understood the Agreement and reviewed the attached final request for
payment prepared by the Recipient for submission to Canada, dated [insert date I, and have
knowledge ofthe business and affairs ofthe Recipient and have made such examinations or
investigations as are necessary to give this Certificate and to ensure that the information
contained herein |atrue and accurate.
8} As of the date of this Certificate, the Recipient has performed all covenants under the
Agreement that are required 1oboperformed byiiomorprior Nthat date.
4} All the expenditures claimed bythe Recipient imthe attached final request for payment for
the following Project Components constitute Eligible Expenditures audefined in 8ubued|mo
22nfthe Agreement:
a) [Insert Project Component name];
b) [insert Project Component name];
5} The representations and warranties of the Recipient contained in Section 5 of the Agreement
are true and accurate in all respects at the date of this Certificate as though such
representations and warranties had been made at the date of this Certificate.
G) The Project Components outlined above have been completed, bringing to completion the
Recipient's Project.
7) This Certificate ofCompliance does not preclude Canada from exercising its right toverify,
audit orinspect oeper the terms and conditions ofthe Agreement.
8) Incrementality, as defined in Subsection 2.2 of the Agreement, has been respected.
9) The maximum Project funding set out in Paragraph 4.1 a) of the Agreement has been
respected.
10)The Total Financial Assistance received for the Project ioaofollows:
flodudoall Total Financial Assistance received]
11) The Recipient hereby represents and warrants that the information provided to Canada is
true and accurate inall respects otthe date ofthis Certificate.
Dated, this day of 20
Signature
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EXECUTION COPY
SCHEDULE E—COMMUNICATIONS PROTOCOL
1. Purpose
o) This Communications Protocol outlines the roles and responsibilities nfeach ofthe
Parties trthis Agreement with respect to Communications Activities related tothe Project.
b> This Communications Protocol will guide the planning, development and implementation
of all Communications Activities to ensure clear, consistent and coordinated
communications 0othe Canadian public.
r) The provisions of this Communications Protocol apply to all Communications Activities,
related tothis Agreement and the funded Project under this Agreement.
2. Guiding Principles
Communications Activities undertaken in accordance with this Communications Protocol
should ensure that Canadians are informed of investments made to help improve their quality
of life and that they receive consistent information about the funded Project and its benefits.
3. Joint Communications
a) The Parties shall engage in Joint Communications about the funding of the Project.
b) Joint Communications related to the Project funded under this Agreement shall not occur
without the prior knowledge and agreement ofthe Partioo�
c> All Joint Communications material approved by the Parties shall recognize the funding of
Canada and the Recipient.
d) Either Party may request Joint Communications to communicate to Canadians about the
progress or completion of the Project. The requestor shall provide at least ten (10)
business days' notice 0othe other Party.
e) If the Communications Activity is an event, it shall take place at a mutually agreed upon
date and location. The requestor of the Joint Communications, in this case, shall provide
an equal opportunity for the other Party to participate and choose their own designated
representatives.
f) Canada has anobligation tncommunicate in English and French. Canada's
communications products related to events must be bilingual and include the Canada
wmndmarhand the other party(ioo')'slogos. Unsuch cases, Canada will provide, a\its sole
cost, the translation services.
g) The conduct of all Joint Communications will follow the respective communication policies
ofboth Canada and the Recipient
4. Individual Communications
m) Notwithstanding Section 3 of this Communications Protocol, the Parties retain the right to
meet their obligations tocommunicate information tnCanadians about the Agreement
through their own Communications Activities.
b) The Parties may include general Project messaging and examples cf Projects funded
through the Agreement intheir own Communications Activities. The authoring Party will
not unreasonably restrict the use ofsuch products ormessaging bythe other perty(ioa};
and |fweb orsocial-media based, from linking toit.
o) Given the increasing prominence of digital communications, a Party may issue digital
communications iocommunicate progress ofthe Project.
d) Where a web site, web page, or social media content is created to promote or
communicate progress on a funded Project, it must recognize federal funding through the
use ofedigital sign (using Low Carbon Economy Fund branding) orthrough the use mf
the Canada wordmark and the following wording, "This [project/initiative] is funded in part
by the Government of Canada." The Canada wordmark or digital sign (using Low Carbon
Economy Fund branding) must link to Environment and Climate Change Canada's
website, at Canada.ca, Canada will provide guidelines for how this recognition is to
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185
EXECLITlON COPY
appeer. Canada, for its part, will reciprocate in the same manner acknowledging the
Recipient's funding contributions.
5. Operational Communications
o) The Recipient is solely responsible for operational communications with respect to the
Project, including but not limited to: calls for tender, work and public safety notices. Such
operational communications are not subject to the federal Official Language Act.
b) Canada does not need to be informed of operational communications. However, such
products should include, where appropriate, the following statement, "This
[project/initiative] is funded in part by the Government of Canada" and the Canada
mmndmark.
8. Media Relations
Canada and the Recipient shall share information promptly with each other should significant
media inquiries be received or emerging media or stakeholder issues arise about a Project or
the overall Program.
7. Signage
a) The Parties and other funding contributors may request a sign recognizing their funding
contribution to the Project, The sign design, content, and installation guidelines will be
provided byCanada.
b) Unless otherwise agreed by Canada, the Recipient shall produce and install a physical
sign, eoappropriate, tnrecognize the funding ofeach Party ateach Project.
o) Digital signage (using Low Carbon Economy Fund branding) may also be used in addition
or in place of a physical sign in cases where a physical sign would not be appropriate due
tnthe Project type, scope, location orduration.
d) Where the Recipient decides to install a permanent plaque or other suitable marker with
respect to the Project, the plaque or marker must recognize the federal funding and be
approved byCanada,
e) The Recipient agrees to inform Canada of sign installations through the Progress Reports
referenced inSchedule Co[this Agreement.
f) Signage should be installed at the Project site(s) no less than one (1) month prior to the
start of work, be visible for the duration of the Project, and remain in place until one (1
month after work is completed and the infrastructure is fully operational or opened for
public use,
g) Signage should be installed in a prominent and visible location that takes into
consideration pedestrian and traffic safety and visibility.
V. Advertising Campaigns
Recognizing that advertising can be an effective means of communicating with the public,
Canada and the Recipient may, at their own cost, organize an advertising or public
information campaign related tothis Agreement nrthe Project, Such ocampaign shall
respect the provisions of the Agreement, including the requirement to acknowledge the
Parties' funding and wordmairks. The sponsoring Party of such a campaign shall inform the
other Party of its intention at least twenty-one (21) business days prior to the campaign
launch.
29
EXECUTION COPY
SCMEDUUEF—DECLARATON OF COMPLETION
In the matter of the Challenge Funding Agreement Regarding [insert name of Project as in the
title of the Agreement on the first page of the Agreement] entered into between Canada and
[Recipient] (the "Recipient") on [insert date] (the "Agreement"),
The Recipient, represented by
Name] Project (the ^P/oject").
(Name), regarding the [Project
| Nam* of theQUfTown of
Pmvinoe/Territorynf aduly authorized representative ofthe Recipient
declare as follows:
1 | hold the position of with the Recipient and m»such have
knowledge of the matters set forth iin this declaration and believe this declaration to be
2. | have received the following documents for the (Project Nom* Project:
[List nameefrelevant documen%a).e.g.Certificate afCompletion, Certificate m[
Performance, Occupancy Pennit.etnJsigned by (mame).a
(Profeoaiom^e.g.professional engineer, professional architect
nrother applicable professional) for the Project.
[Add aomotext omin(i)for each document)
Based onthese documents and the representations made 0omebythe professionals
identified |nSection 2(i)above, Vdeclare tothe best ofmyknowledge and belief that the
Project has been completed, in that it can be used for its intended use, as described in
Schedule B.1.aadefined inthis Agreement, omthe day ufthe
20___
[insert #3,JapplicableJ
3. | have received the following documents and based onthese documents and
representations made iomebythe professionals identified below, | declare tothe best of
my knowledge and belief that the Project conforms with, as applicable, the (List the
applicable environmental / impact assessment Iegislation /, regirne]:
[Listnerne of relevant domment(a)]signed by (Name), an
(Pmfesnion.o.g.environmental consultant orother applicable
professional).
[Add same text as in (i) for each document]
4. All terms and conditions of this Agreement that are required to be met as of the date of this
declaration have been met,
Declared at_____
(Province/Territoq4this
Signature
_(Qty/Town)�,in
day of_____
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