1 municipal infrastructure roles and responsibilities…

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MunicipalInfrastructure

Roles and Responsibilities…

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Overview

Introduction

Application & Approval

Design Phase

Construction Phase

Project Termination

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Introduction

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Introduction…So what’s CAPITAL WORKS?

Encompasses a wide range of municipal infrastructure Is necessary for sustainability and to build on the long-

term economic growth of communities, allowing them to deliver strong municipal services and meet infrastructure needs

Typical projects? Water & sewer Roads Recreational facilities Municipal buildings

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Capital Works Funding Programs…

Capital Works

Municipal Capital Works

(MCW)

Multi-Year Capital Works

(MYCW)

Federal/Provincial/Municipal

Programs

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Municipal Capital Works (MCW)

Represents the Government of Newfoundland and Labrador’s commitment to investing in municipal infrastructure throughout our province

Fosters the development of cost-shared projects in a wide range of municipal infrastructure

Funding is provincial and municipal cost shared only

Eligible projects may include: Water and sewer treatment Roads Recreational Facilities Municipal buildings

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Municipal Capital Works (MCW)

At this time, eligible funding is allocated based on the following ratios: 90/10 for populations less than 3,000 80/20 for populations between 3,000 and 7,000 70/30 for populations greater than 7,000 Local Service Districts would also qualify for funding

support on approved projects

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Multi-Year Capital Works (MYCW)

Represents the Government of Newfoundland and Labrador’s commitment to investment in larger scale municipal infrastructure projects Allows for better planning Achieves economies of scale

Larger municipalities are invited to avail of three-year blocks of funding

Funding is cost-shared (provincial / municipal) Eligible projects are the same as those considered under

the MCW program Hard copy application

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Municipal / Provincial / Federal Programs

This refers to partnerships between various combinations of municipal, provincial, and federal governments Building Canada Fund (BCF)

Communities Component: Regular Communities Component: Top-Up Infrastructure Stimulus Fund Base Funds

Canada Strategic Infrastructure Fund (CSIF) Municipal Rural Infrastructure Fund (MRIF)

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Stakeholders

Municipality(Project OWNER)

Contractor

Consultant

Municipal Affairs(Project Assessment,

Support, Sponsor)------------

Other GovernmentDepartments

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Application&

Approval

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The

Application

Process

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The Application Process…

Municipal Capital Works is application driven An online application must be submitted to the

Department of Municipal Affairs by municipalities or Local Service Districts for any given project

Letters inviting MCW applications are sent to municipalities in early fall If you do not receive a letter, please contact MA

Deadline for submission of applications is in the fall

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The Application Process…

Don’t wait until June or July to start thinking about your municipality’s infrastructure needs.

The long-term sustainability, growth, and development of your municipality is an ongoing process.

Therefore, infrastructure should be considered as part of the ongoing process of managing your municipal operations.

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The Application Process

Your application for project funding will consist of: Online application Supporting documents

Further details on the application process are available: In letter of application On Municipal Affairs website

http://www.ma.gov.nl.ca/ma/capital_works/proposed.html

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The Application Process…Online Component

Applications for project funding MUST be submitted via SIMSI Shared Information Management System for

Infrastructure (SIMSI) This is the Federal Government’s online

application format; developed for such programs as Building Canada Fund – Communities Component (BCF-CC)

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

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The Application Process…Online Component

To access SIMSI, you will need to use the USER ID and PASSWORD issued previously for the Building Canada Fund – Communities Component.

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Helpful Hints for completing the online application…

As the applicant, you (the municipality) are responsible for ensuring that full and accurate information is submitted.

Incomplete applications will not be considered until all the necessary information has been submitted.

A more complete application will speed up the assessment process.

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You should provide a clear understanding of the “Who, What, Where, Why, When, and How” of the project.

Answer all questions to the best of your ability.

Be specific!

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Pay close attention to: Project Description Project Rationale Total Project Costs

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Project Description/Abstract Detailed description, outlining the nature of

the physical infrastructure to be constructed, renewed or enhanced.

Main components of infrastructure Dimensions (height, length, footprint) Construction materials & techniques Brief site description Purpose of the infrastructure

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Project Description/Abstract Identify any environmentally sensitive areas

near the project Indicate if there is a water body within 30m of

the project

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Project Description Statement of need Suggestions to address need Suggest anticipated cost Ball park costs Ball park schedule

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“2009 MCW Water and Sewer Upgrade”

Example of a weak Project Description:

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In order to address the significant leaks in the water main along Farrell’s Road, Dawe’s Road, and Sheppard’s Road, the proposed project includes removing and disposing of approximately 310m of old sections of pipe to replace it with new pipe of the same make.

The approximately 270m of adjacent sewer main will also be replaced at this time.

The result will be more efficient water disinfection and distribution and protection of human health in the event of a sewage line break.

Cont’d…

Example of a strong Project Description:

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Asphalt will be reinstated to the same condition as it was before work began.

This project will also remove, dispose, and replace approximately 14m of 500mm culvert and remove and reinstall approximately 16m of 500mm culvert in order to improve drainage for the area.

The estimated cost is $200,000 and is anticipated to be completed by September 2009.

Example of a strong Project Description:

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Project Description vs. Project Title Sometimes, the ‘project description’ is

incorrectly used as the ‘project title’. What to include in a Project Title?

Location Type of Work Project Year

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Project Title The ‘project title’ for the project we just

described could be: “Farrell’s Road, Dawe’s Road, and Sheppard’s Road

water main replacement and drainage improvements, 2011”

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Project Rationale This will be the basis for the assessment of

your application So, please make sure that you provide as

much detail as possible

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Project Rationale What are the specific problems or objectives

that this project will address? How would your project address these

specific problems or objectives? What alternatives to the proposed solution

have been considered? FYI: there are always alternatives; please do not

enter ‘none’ or ‘n/a’

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“Because lines are old and leaking significantly”

Example of a poorly written Project Rationale:

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There have been a number of instances in the recent past where there has been cross-contamination between water and sewer lines because of aged infrastructure in this area of town.

It is known that the water main is leaking significantly for the roads mentioned above and it is highly probable that the useful life of the sewer main has expired, when we consider nearby roads of the same age that have already experienced cross-contamination.

Cont’d…

Example of a well-written Project Rationale:

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An investigation was carried out to determine if there were factors unique to these roads that may cause the water main to leak so much, but it has been determined that it is simply too old and replacement is warranted.

The proposed drainage maintenance was identified as a problem a number of years ago but was determined to be a lower priority. It is increasingly feasible to accomplish this work while addressing the water/sewer infrastructure noted above. The problem identified is related to flooding of a school bus turnaround and adjacent private properties.

Example of a well-written Project Rationale:

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Project Rationale… Please note:

It is important to remember that as a municipality, you are responsible for providing adequate details so that the Department of Municipal Affairs can determine whether or not the rationale for the work fits the mandate of the MCW program.

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Project Costs Applicants must define total (gross) project

costs. Before GST rebate or cost sharing is taken

into account… engineering, construction, HST, and any other

costs associated with the project need to be identified.

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“Eligible Costs”

- Do NOT include HST.

-This info would usually be available from the detailed estimates provided by Consultant.

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“Other” Eligible Costs

-May include regulatory permits or specialized testing

-Usually included in Consultant’s estimates

-Most projects have no entries here


Total Eligible Cost is the sum of ‘Eligible Cost’ plus “Other”.This is the actual amount of funding being applied for.

Record GST rebate here.

Taxes.

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In the majority of cases, there are no ineligible costs.

Exception: Land Acquisition – ineligible under federal funding, but may be considered on a case-specific basis if the funding doesn’t include a federal contribution.


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The Application ProcessA note on the GST rebate…

Municipality is required to apply for the appropriate rebates

GST rebate is to be used as part of project funding

Municipality is responsible for interim financing of GST rebate

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Helpful Hints, cont’d…A final note on Gross vs. Net Costs…

So what happens if we mistakenly enter NET costs where a GROSS cost is supposed

to be used?

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If you use net cost where a gross cost is supposed to be

entered, then MA may end up funding the project at net,

rather than gross cost.

So, you may not have enough money to cover

costs when the time comes to write the cheques!

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The Application Process…Supporting Documentation

We’ve talked about the online application…

But we also need to discuss what other documents are required to be submitted…

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The following items must be submitted in addition to the online application by the deadline date Completed Financial Evaluation Form (2 copies) Bank Letter (2 copies) Resolution of Local Government (2 copies) Project Cost Estimates (7 copies) Drawing indicating location and scope of the

proposed project (7 copies)

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Financial Evaluation Form Provides an overview of Council’s current

financial position, and Details how Council intends to finance its

portion of the project from capital and operating perspective (where applicable)

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Bank LetterThe municipality must submit a letter

from a financial institution confirming that lending will be considered.

Cont’d…

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Bank Letter should outline:That this is a non-government

guaranteed loanTerm, in either years or monthsPrincipal amountAnnual payment amount

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Resolution from Local Government Your application must include a resolution from

Council, authorizing the application for Capital Works funding.

Cont’d…

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Resolution of Local Government Resolution should indicate:

Project costProject descriptionResults of voting

Resolution that is sent to Municipal Affairs should be ‘certified as a true copy of…’

Signed by Town Clerk/Manager

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Project Cost Estimates Consultant provides a unit-price schedule of the

costs for construction. This provides important supplementary information

(i.e. size of pipe, amount of pipe, number of services, unit-price estimates, etc.) which is considered when assessing the project’s eligibility for funding.

Depending on the level of complexity of the project, a consultant’s involvement may be required.

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Scope / Location Drawings Indicates where the project is

proposed to take place. Shows prudent planning, on behalf

of municipality. Drawings should identify street

names, be set at an appropriate scale, and be legible.

A picture is worth a thousand words!

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Application Review will only begin after the deadline date, provided all supporting documents have been received by Municipal Affairs.

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The Application Process…A few comments…

With the exception of those few communities that have an engineering staff, you will require the services of an engineer to help deliver the project, once it has been approved.

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The Application Process…A few comments…

Most communities get the engineer involved now, and ensure proper estimates, details, etc of the project are included with the application.

That being said, engineering services may not be required for: Completion of online application

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The Application Process…A final note…

The online application allows you to upload electronic documents.

This is optional.

Please note:

You must still submit hard copies of supporting documents by the deadline date.

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The Application Process…Questions?

What if you have questions regarding the application process? Technical questions?

Contact Regional Engineer Financial questions?

Contact Regional Manager

Contact info can be found on Municipal Affairs website.

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So….

You’ve submitted your application on SIMSI, AND

Provided hard copies of all required supporting documentation before the deadline date…

What happens next?

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Review

&

Assessment

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Review & Assessment…

The Department of Municipal Affairs will acknowledge receipt of each application, and will provide the municipality with a list of missing or non-compliant information, if applicable.

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A financial review is conducted only after all supporting documentation has been received. Financial documents are referred to the

Regional Manager for assessment Confirms municipality’s ability to pay its share

of project cost, as well as operational cost, where applicable

The municipality will be notified if additional information is required

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Engineering Review Regional Engineer will review drawings, estimates,

and technical aspects of online application Will involve other Government Departments /

Agencies where required i.e. Department of Environment and Conservation

If engineering data is insufficient, additional information will be requested from the municipality

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Applications are assessed according to a criteria-based process.

The assessment determines the merits of the application as input for recommending it to the appropriate decision-making parties.

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Factors and considerations for project eligibility: How does your project respond to an identified

infrastructure need within your community? How realistic are the objectives and are the

expected results achievable? How does your proposed project fit with local and

regional priorities? How realistic is the budget and breakdown of

costs?

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Ranking Process Regional Engineering staff will determine ‘density’

ranking in accordance with Project Ranking Criteria.

With input from representatives of other departments (Health and Community Services, Environment and Conservation, & Government Services), a ‘need’ ranking is conducted. Criteria include health, safety, and environmental

Review criteria are assigned a numerical value and are tabulated.

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Compilation of Database

Once reviewed and ranked, project information is compiled into a provincial master list.

Depending on available funding from MA budget, projects are selected for “approval”.

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Project Approval

If approval is granted, a letter will be sent to the town, indicating that the EDI has been approved for funding, and requesting a response within 45 days.

If funding is not approved, Municipality will receive a letter to this effect

and, Will be invited to submit an application next

year, should the project remain a priority at that time.

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Project Approval

What is EDI? Engineering Design Initiative Municipalities are funded to have

engineering design work completed prior to final project approval.

Cont’d…

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Project Approval

More on EDI Provides Department of Municipal Affairs and

the municipality with an opportunity to: Evaluate any unanticipated design issues, Obtain all necessary regulatory approvals, and Determine more accurate cost estimates before

final project approval is considered.

Cont’d…

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Project Approval

More on EDI Please note: The EDI is a continuation of the

application process and does not indicate final funding approval.

Municipalities must accept or decline EDI funding within 45 days.

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Project Approval

Municipality accepts funding? Submits a letter (within the 45 day period) accepting

EDI funding, and Requests approval of Consultant

If Ministerial approval Granted?

A letter of appointment of Consultant is forwarded to the municipality

Not Granted? Municipality will be notified Asked to propose another Consultant

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Project Approval

Suggestion: Identify a point of contact

(somebody other than the consultant) for matters pertaining to issues with project management and administration.

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Project Approval

If municipality does not return EDI acceptance within the 45-day period, project is cancelled. Municipality will receive a letter from the

Minister of Municipal Affairs notifying of project cancellation.

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Let’s assume that: The municipality has

accepted funding, AND MA has approved the

Consultant. Now what?

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Design Phase

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Design Phase

Upon acceptance of funding, municipality: Engages Consultant to perform design work Discloses all financial information (pertaining to

this project) to Consultant There must be a separate chequing account

to be used only for this project

Cont’d…

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Design PhaseEngineer/Client Agreement…

Requests an Engineer/Client agreement for submission to Municipal Affairs for review and approval

Outline of services to be provided Rates to be charged Completion schedules

Municipal Affairs then issues a letter to the municipality and consultant indicating whether or not Agreement has been approved

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Engineer/Client agreement is returned to municipality for signing Signed by municipality and

Consultant

After signing, Consultant must forward copies of signed Agreement to the municipality and Regional Engineer

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Municipalities are not to pay any engineering fees unless a signed Engineer/Client Agreement is in place.

No funds will be advanced until a copy of this agreement has been received by Municipal Affairs.

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Engineering fees that exceed the amount approved in the Engineering/Client Agreement will NOT be eligible for funding UNLESS

Agreed to & requested by municipality AND

Approved by Regional Director

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Design Phase

Once agreement is approved and signed: Costs related to preliminary engineering and design can be

claimed Begin submitting status reports

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Design PhaseTendering/Award…

Before construction can commence or tenders can be called, consultant must submit: Plans, specifications, & detailed cost estimates to

Regional Engineer Must be done within 90 days of Consultant being

appointed A copy of plans and specs to municipality and relevant

agencies for permits/approval

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Tenders cannot be called or contracts be awarded without approval from the Minister of Municipal Affairs

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Regional Office reviews: Project budget requirements Design

Compliance with project objectives and scope

Compliance with regulatory requirements Consultants will be notified of any issues that

arise from this review

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If all is okay, Regional Engineer will send a recommendation to Headquarters for full project funding

Municipal Affairs sends letter to Consultant, approving Call for Tenders

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Consultant prepares tender packages and advertises publicly

Makes arrangements with Tendering and Contracts (Department of Transportation & Works) to distribute documents and receive bids Tender Documents include:

Instructions to Bidders Tender Form Agreement Drawings Specifications Any amendments to the Contract Documents issued during

the tender period

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After Tender closes, Consultant: Receives bids from Tendering and Contracts Prepares a bid analysis report & recommends

whether or not to award contract Submits report to Municipal Affairs

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If project budget is insufficient for price bid, municipality considers options of:

Reducing scope of work, Requesting additional funding, or Cancellation

This is done in consultation with Municipal Affairs and the Consultant

Once this is complete and all is in order, Municipal Affairs will issue an approval to ‘Award’ the project

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Financial Evaluation

Once project cost has been determined through tendering/award process, municipality requests an ‘Approval to Borrow’ Council resolution Bank letter detailing the terms of borrowing Updated Financial Evaluation form

Only if financial position of municipality has significantly changed

‘Approval to Borrow’ request is verified against list of MCW approved projects

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Financial Evaluation

Remember: Funding will be provided based on Council’s

assurance to the Department of Municipal Affairs of its ability to meet its share of cost

Municipal Affairs will not contribute any amount in excess of approved project cost

If Council’s financial position has changed and it cannot meet its share of costs,

Notify Minister of Municipal Affairs immediately Project will be cancelled

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Construction Phase

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Construction Phase

Once Council receives authorization to award contract, it has 45 days to do so

Before contract is awarded, Council and Consultant must ensure that all easements and rights-of-way are acquired Section 167, Municipalities Act,

1999

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Construction Phase

Once contract is awarded, A copy of signed contract must be forwarded to

Regional Engineer within one week of signing Consultant must notify Regional Office of the

time and location of preconstruction meeting Consultant administers project

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Construction PhaseRelease of Funding…

Provincial funding is released based on the submission of Status Reports and formal request for payment

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Consultant prepares status reports on a monthly basis Span from date of appointment of Consultant

to date of project termination Sent to municipality and Regional Engineer Submitted monthly, whether or not project

costs were incurred during this period Must be submitted by the 10th of each month Final status report must be marked as such

and must be reconciled against bank records

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Upon receipt of status report, municipality sends request for payment to Regional Engineer

What is included with this request?1) A letter, requesting release of the non-

municipal share of costs incurred for that period Reference to status report # Actual amount of funds being requested Subject line: Project title & MA project

number

Cont’d…

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2) Status Report

3) Job Control Sheet

4) Supporting documentation Engineering invoices Change orders Contractor’s progress payments

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A few things to keep in mind: Do not pay engineering invoices

unless the status report and job control sheet have been received!

Do not pay the final engineering invoice until the as-builts are received (where applicable)

Never claim unauthorized costs

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Status report and supporting documentation received by Municipal Affairs

Regional Office reviews for: Comprehensiveness of completion Calculation accuracy Eligibility of items claimed Other factors

Review may include field verification or spot checks, especially at project start-up and completion

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Regional Engineer prepares Certificate for Payment Signs Certificate, signifying

recommendation for payment Certificate then signed by Regional

Director and forwarded to HQ for final processing by Corporate Financial Services Division (Dept. of Finance)

Applicable portion of funds are released

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The municipality will receive Government’s share in the form of a cheque Cheque should be deposited into project bank

account Municipality required to pay consultant and

contractor their share, and Government’s as to status report

10% holdback to be dealt with at end of project

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10% holdback to be dealt with at end of project Municipal Affairs releases holdback as claims

are processed Municipality to holdback funds until requested by

Consultant to release

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Construction PhaseA few things to keep in mind…

Construction contracts cannot be extended without written approval of Minister of Municipal Affairs

Extensions usually only granted under exceptional circumstances

If project is completed below estimated amount, the savings may not be available to the municipality to be used otherwise.

Council will be responsible for all cost overruns

Cont’d…

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Construction PhaseA few things to keep in mind…

Limit of Servicing All work constructed under the MCW program

must conform to the Limit of Servicing Agreement

Project Number Please use the Department’s project number on

all correspondence, status reports, etc., relating to this project

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Project Termination

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Project Termination

Consultants are required to: Ensure all regulatory/contractual requirements

are met Submit “as built” drawings to the municipality

Reminder: do not pay the final engineering invoice until as-builts have been received

Submit “as built” drawings to Municipal Affairs in the proper format

Produce a system operation and maintenance manual and submit to municipality (where applicable)

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Project Termination“As-built” Drawings…

The municipality must not delete the requirement for as-built drawings

Funds must be allocated for this engineering service

Tenders will not be authorized until the as-builts for the previous phase have been submitted

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Payments for Engineering Services

Payments must be made based on: Engineer/Client Agreement Actual services provided

If all services as per the Engineer/Client agreement were not required, payments are to be adjusted accordingly

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Configuration Management

Two situations where the municipality may request a change in the contract Town requests ‘other work’ Unforeseen work

The municipality is initially responsible for all work outside of what the department originally agreed to fund.

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Municipality requests other work May decide that other work may be completed under

this contract If there is no urgency

Can make the request to the department If there is urgency

Municipality has to decide whether or not to issue a change order for the work without prior approval from MA

If the town issues the change order without prior approval, it risks being responsible for 100% of the additional costs

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Unforeseen work Added to the contract as a force account item There is no contingency amount in the contract

to deal with unforeseen circumstances Municipality resumes 100% responsibility for

the force account until MA agrees to cost-share it

Municipality may not include the force account in a claim until MA authorizes it

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What is the process to obtain approvals for changes to the contract?

Municipality may send a letter to the Regional Engineer

Include: The additional amount sought Description of the change Rationale and any relevant reports

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The department will: Assess the request Consider the cost and whether funding is

available Consider technical aspects as if the request

for additional work were an application Determine municipality’s ability to afford the

extra work

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Conclusion

The programs and processes are comprehensive and, at times, complex.

BUT, the intent is to ensure that funding: Is properly distributed Is professionally administered Helps municipalities gain valuable and needed

infrastructure

117Last updated March 28, 2011 by Melanie Sheppard

1 municipal infrastructure roles and responsibilities…

Documents

municipal cost

municipal infrastructure

application process

introduction slide

application approval

fall slide

strong municipal services

whats capital works