Administrative Agreement on the Federal Gas Tax Fund
2014-2024 - Canada - Alberta

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BETWEEN: HER MAJESTY THE QUEEN IN RIGHT OF CANADA, as represented by the President of the Queen's Privy Council for Canada, Minister of Infrastructure, Communities and Intergovernmental Affairs ("Canada")

AND: HER MAJESTY THE QUEEN in Right of the Province of Alberta as represented by the Minister of Municipal Affairs ("Alberta")

1. PURPOSE

This Administrative Agreement ("the Agreement") sets out the roles and responsibilities of Canada and Alberta for the administration of the Gas Tax Fund (GTF).

2. CONTEXT

With this Agreement, Canada and Alberta wish to help communities build and revitalize their public infrastructure that supports national objectives of productivity and economic growth, a clean environment and strong cities and communities, building on:

  • The success of the First Agreement;
  • Section 161 of the Keeping Canada's Economy and Jobs Growing Act, S.C. 2011, c. 24, under which the Government of Canada makes up to $2 billion per year available for allocation by the Government of Canada for the purpose of municipal, regional and First Nations infrastructure starting in 2014-2015;
  • Economic Action Plan 2013, through which the Government of Canada announced a renewed GTF which included the indexation of the gas tax funding at two percent per year, with increases to be applied in $100 million increments (confirmed through section 161 of the Keeping Canada's Economy and Jobs Growing Act, S.C. 2011, c. 24 as amended by section 233 of the Economic Action Plan 2013 Act, No. 1, S.C. 2013, c. 33);
  • Economic Action Plan 2013 which encouraged provinces, territories, cities and communities to support the use of apprentices in infrastructure projects receiving federal funding. Canada recognizes that Alberta has developed and implemented its own initiatives with regards to the use of apprentices in infrastructure projects;
  • Economic Action Plan 2013, through which the Government of Canada announced an expanded list of GTF eligible project categories and encouragement for asset management planning;
  • Building Alberta Plan, through which the Government of Alberta is investing in families and communities by building new roads, schools and health facilities;
  • Municipal Sustainability Initiative, through which the Government of Alberta will invest $3.7 billion in communities across Alberta in order to give municipalities the support they need to address growth pressures; and
  • Capital Plan 2014-17, through which the Government of Alberta will invest $19.2 billion in schools, hospitals and other public infrastructure.

3. PRINCIPLES

Canada and Alberta acknowledge that this Agreement is based on the following principles:

  • Principle 1 – Respect for jurisdiction: The GTF was designed to leverage the strengths of each order of government and is based on the principle that each has areas of jurisdiction and is accountable to its population. Canada respects the jurisdiction of provinces and territories over municipal institutions.
  • Principle 2 – A flexible approach: In recognition of the diversity of Canadian provinces, territories, regions and communities, the GTF recognizes the need for a flexible approach to program delivery. Wherever possible, the GTF aims to employ regionally adapted delivery mechanisms, including the leveraging of existing delivery mechanisms and reporting structures.
  • Principle 3 – Equity between jurisdictions: The GTF recognizes the importance of ensuring that the inter-provincial/territorial allocation is equitable while supporting meaningful infrastructure investments within the least populated jurisdictions.
  • Principle 4 – Long-term solutions: The GTF provides predictable, long-term funding for communities, where communities choose projects locally and prioritize them according to their needs, while respecting the principle of incrementality and not displacing current infrastructure investments.
  • Principle 5 – Transparency: The GTF is administered via an open and transparent governance process which recognizes and communicates Canada's contribution to communities' infrastructure priorities and includes regular program evaluations and progress reporting to Canadians.

4. ANNEXES AND SCHEDULES

The following annexes and schedules are attached to and form part of this Agreement:

  • Annex A: Definitions
  • Annex B: Terms and conditions, including:
    • Schedule A: Additional Provincial Responsibilities
    • Schedule B: Eligible Project Categories
    • Schedule C: Eligible and Ineligible Expenditures
    • Schedule D: Reporting
    • Schedule E: Communications Protocol

5. DEFINITIONS

Unless defined elsewhere in this Agreement, capitalized words used throughout this Agreement are defined in Annex A (Definitions).

6. FEDERAL GAS TAX FUND

6.1 Any GTF funding that may be transferred by Canada to Alberta when transferred, will be administered by Alberta in accordance with this Agreement, including the terms and conditions set out in Annex B (Terms and Conditions).

6.2 Any Unspent Funds, and any interest earned by Local Governments thereon, will be subject to the terms and conditions of the Agreement and will no longer be governed by the terms and conditions of the First Agreement.

7. OVERSIGHT COMMITTEE

7.1 An Oversight Committee established by Canada and Alberta will monitor the overall implementation of this Agreement, and will serve as the principal forum to address and resolve issues arising from the implementation of this Agreement.

7.2 The Oversight Committee will be co-chaired by two (2) members, one of whom is to be appointed by Canada, and designated as Federal Co-Chair, and one of whom is to be appointed by Alberta, and designated as Provincial Co-Chair. Replacement members from either Canada or Alberta may, from time to time, be appointed. Canada and Alberta agree to keep each other informed in writing of new appointments.

7.3 The Oversight Committee Co-Chairs will examine together any issue that arises, and will, in good faith and reasonably, attempt to resolve potential disputes.

7.4 Canada and Alberta agree that, in addition to the requirements set out in Section 2.3 of Schedule E (Communications Protocol), any communications working group or subcommittee that is established by the Oversight Committee Co-Chairs will report on the working group's or subcommittee's plans and achievements on a frequency defined by the Oversight Committee Co-Chairs.

8. DISPUTE RESOLUTION

8.1 Canada and Alberta will work together to resolve any issues which may arise in relation to this Agreement.

8.2 It is understood that Alberta will meet the following requirements as a priority:

  • ensuring that Local Governments comply with Schedule B (Eligible Project Categories) and Schedule C (Eligible and Ineligible Expenditures) of Annex B (Terms and Conditions);
  • submitting an Annual Report to Canada by September 30th of each year and an Outcomes Report, as outlined in Schedule D (Reporting) of Annex B (Terms and Conditions);
  • conducting communications activities in accordance with the requirements outlined in Schedule E (Communications Protocol) of Annex B (Terms and Conditions).

8.3 An escalating dispute resolution approach would begin with an Oversight Committee discussion followed by senior official-level discussions, and ultimately Ministerial-level discussions for resolution, within a reasonable timeframe, to the satisfaction of Alberta and Canada.

8.4 In the event of any unresolved issue, if the above resolution mechanisms fail to achieve a resolution it is understood that the final decision with respect to such issue will rest solely with Canada.

9. AUDITS AND EVALUATION

9.1 Canada may request and Alberta agrees to complete, and provide to Canada an audit of any one or more individual Eligible Projects. The scope, coverage and timing of this audit will be determined by the Oversight Committee.

9.2 Canada may, at its cost, complete a periodic evaluation of the GTF to review the relevance and performance (i.e. effectiveness, efficiency and economy) of the GTF. Alberta will provide Canada with information on program performance as appropriate and may agree to participate in the evaluation process. The results of the evaluation will be made publicly available.

9.3 Alberta agrees to require that proper and accurate accounts and records are kept in respect of all Eligible Projects for at least six (6) years after completion of the Eligible Project, and Local Governments will, upon reasonable notice, make them available to Alberta.

9.4 Sections 9.1 to 9.3 will remain in effect beyond the expiration or termination of this Agreement until such time as may be determined by Canada and Alberta.

10. DURATION, TERMINATION, REVIEW AND AMENDMENT

10.1 This Agreement will be effective as of April 1, 2014 and will be in effect until March 31, 2024 unless Canada and Alberta agree to renew it. In the event where this Agreement is not renewed, any GTF funding and Unspent Funds held by Alberta, and any GTF funding and Unspent Funds and interest earned thereon held by Local Governments, that have not been expended on Eligible Projects as of March 31, 2024 will nevertheless continue to be subject to this Agreement until such time as may be determined by Canada and Alberta.

10.2 This Agreement will be reviewed by Canada and Alberta by March 31, 2018 and may be amended to incorporate changes, if any, agreed to by Canada and Alberta.

10.3 This Agreement may be amended at any time in writing as agreed to by Canada and Alberta.

10.4 If Canada concludes an Agreement with respect to the GTF for similar purposes with any other province or territory of Canada, and that Agreement when taken as a whole is materially different from this Agreement, Alberta may ask Canada to agree to amend this Agreement so that, taken as a whole, it affords similar treatment to Alberta as the other Agreement affords to the other province or territory. In the event of any such request, Canada and Alberta agree to discuss the request and any agreement reached between them to amend this Agreement will be effected in accordance with Section 10.3 (Duration, Termination, Review and Amendment).

10.5 This Agreement may be terminated at any time and for any reason by either Canada or Alberta on two (2) years written notice. In the event where this Agreement is so terminated, any GTF funding and Unspent Funds held by Alberta, and any GTF funding and Unspent Funds and interest earned thereon held by Local Governments, that have not been expended on Eligible Projects as of the date of termination will nevertheless continue to be subject to this Agreement until such time as may be determined by Canada and Alberta.

11. CORRESPONDENCE

Any correspondence under this Agreement may be delivered in person, sent by electronic mail, sent by facsimile, or sent by mail addressed to:

Canada:

Assistant Deputy Minister,
Program Operations Branch
Infrastructure Canada
180 Kent Street
Ottawa, Ontario
K1P 0B6
Fax: 613-960-9423

or to such other address or facsimile number or addressed to such other person as Canada may, from time to time, designate in writing to Alberta and

Alberta:

Assistant Deputy Minister
Municipal Assessment and Grants
Municipal Affairs
17th Floor, Commerce Place
10155 102 St.
Edmonton, AB
T5J 4L4
Fax: 780-427-0453

or such other address or facsimile number or addressed to such other person as Alberta may, from time to time, designate in writing to Canada.

SIGNATURES

CANADA:

The Honourable Denis Lebel
Minister of Infrastructure, Communities and Intergovernmental Affairs

Date

ALBERTA:

The Honourable Greg Weadick
Minister of Municipal Affairs

Date

Approved Pursuant to the Government Organization Act

International and Intergovernmental Relations

Date

ANNEX A
DEFINITIONS

"Annual Report"
means the duly completed annual report to be prepared and delivered by Alberta to Canada, as described in Schedule D (Reporting).
"Asset Management Plans"
means documents that support integrated, lifecycle approaches to effective stewardship of infrastructure assets in order to maximize benefits, and manage risk. Plans can include:
  • an inventory of assets;
  • the condition of infrastructure;
  • level of service or risk assessment;
  • a cost analysis;
  • community priority setting; and,
  • financial planning.
"Base Amount"
means the average annual tangible capital asset spending, excluding federal and provincial capital transfers, for the period from January 1, 1999 to December 31, 2003.
"Contract"
means an agreement between a Local Government and a Third Party whereby the latter agrees to supply a product or service to an Eligible Project in return for financial consideration.
"Eligible Expenditures"
means those expenditures described as eligible in Schedule C (Eligible and Ineligible Expenditures).
"Eligible Projects"
means projects as described in Schedule B (Eligible Project Categories).
"First Agreement"
means the agreement for the transfer of federal gas tax revenues entered into on May 14, 2005 by the Government of Canada and Alberta with an expiry date of March 31, 2015, as amended on December 12, 2008.
"GTF"
means the Gas Tax Fund, a program established by the Government of Canada setting out the terms and conditions for the administration of funding that may be provided by Canada to recipients under section 161 of the Keeping Canada's Economy and Jobs Growing Act, S.C. 2011, c. 24 as amended by section 233 of the Economic Action Plan 2013 Act, No. 1, S.C. 2013, c. 33, or any other source of funding as determined by Canada.
"Ineligible Expenditures"
means those expenditures described as ineligible in Schedule C (Eligible and Ineligible Expenditures).
"Infrastructure"
means municipal or regional, publicly or privately owned, tangible capital assets primarily for public use or benefit in Canada.
"Local Government"
means any municipality (city, town, village, summer village, specialized municipality, municipal district, improvement district, and special area), Métis settlement, or the Townsite of Redwood Meadows Administration Society.
"Outcomes Report"
means the report to be delivered by March 31, 2018 and again by March 31, 2023 to Canada which reports on how GTF investments are supporting progress towards achieving the program benefits, more specifically described in Schedule D (Reporting).
"Oversight Committee"
means the committee established in Section 7 of this Agreement.
"Third Party"
means any person or legal entity, other than Canada, Alberta or a Local Government, who participates in the implementation of an Eligible Project by means of a Contract.
"Unspent Funds"
means the amount reported as unspent by Alberta and by Eligible Recipients (as defined under the First Agreement) in the 2013-14 Annual Expenditure Report (as defined under the First Agreement).
"Unspent Funds"
means the amount reported as unspent by Saskatchewan and by Municipalities and other recipients in the 2013-14 Annual Expenditure Report (as defined under the First Agreement).

ANNEX B
TERMS AND CONDITIONS

1. ALLOCATION FORMULA

1.1 Any Unspent Funds held by Alberta and any GTF funding that may be received by Alberta from Canada, will be distributed in accordance with the following formula:

  • All Unspent Funds held by Alberta will be allocated to Local Governments in accordance to allocation amounts specified in the First Agreement.
  • Up to 0.3% of the GTF funding received by Alberta from Canada will be allocated to cover administration expenses related to program delivery and implementation of this Agreement, subject to Section 5 (Administration Expenses) of Annex B (Terms and Conditions).
  • The remainder of the GTF funding will be recalculated annually and will be allocated according to the following:
    • Funds shall be allocated to each Local Government on a per capita basis according to the previous year's Municipal Affairs Population List;
    • Summer villages will receive a base allocation of $5,000 per year in addition to the per capita amount; and
    • Local Governments, with the exception of summer villages, will receive a minimum allocation of $50,000 per year.
    Alberta may review the allocation formula and propose to Canada revisions to Section 1.1 of the allocation formula based on the outcomes of the review. In accordance with Section 10.3 (Duration, Termination, Review and Amendment) any revision to Section 1.1 (Allocation Formula) of Annex B (Terms and Conditions) or subsection therein, is subject to Canada's approval and will constitute an amendment to this Agreement.

1.2 Alberta agrees to provide to Canada, upon request, a table detailing the Local Government allocations, and promptly provide to Canada updates to the table upon any revision to the allocations.

2. DELIVERY MECHANISM

2.1 Alberta will execute an agreement with each Local Government prior to transferring any GTF funding to the Local Government. Each agreement will include requirements for Local Governments, as outlined in Schedule A.

2.2 Alberta will provide GTF funding to Local Governments subject to the following:

  • Alberta Treasury Board and Finance approval of cash-flow and funds;
  • Submission of sufficient eligible projects by Local Governments;
  • Completion of reporting requirements for the previous year by the Local Government; and
  • Compliance by the Local Government with all other terms outlined in Schedule A of this Agreement.

2.3 All funds provided to a Local Government and interest earned thereon and not expended prior to December 31 in the year that funding is received, may be retained by the Local Government for Eligible Projects.

3. USE AND RECORDING OF FUNDS

3.1 Alberta will require that any GTF funding that may be transferred to it by Canada, Unspent Funds, and any interest earned thereon in the case of Local Governments, are used solely in accordance with the terms and conditions set out in this Agreement. Alberta does not earn interest on any GTF funding that may be transferred to it by Canada or any Unspent Funds it may hold.

3.2 Pending payment to Local Governments in accordance with the terms and conditions of this Agreement, Alberta will accept any GTF funding it may receive from Canada into its General Revenues.

3.3 Any GTF funding that may be transferred by Canada to Alberta will be treated as federal funds with respect to other federal infrastructure programs.

4. INCREMENTALITY

Any GTF funding that Local Governments may receive from Canada via Alberta is not intended to replace or displace existing sources of funding for Local Government tangible capital expenditures. As such, the average annual tangible capital expenditures by Local Governments within Alberta for the periods of January 1, 2014 to December 31, 2018 and January 1, 2019 to December 31, 2023 will not be less than the Base Amount.

5. ADMINISTRATION EXPENSES

Upon the review and acceptance by Canada of a detailed business case, which must be submitted within one (1) year of the date of last signature of the Agreement, Alberta may apply a portion of any GTF funding it may receive from Canada for administration expenses related to program delivery and implementation of this Agreement, including expenditures associated with communication activities such as public project announcements and signage.

6. ELIGIBLE PROJECT CATEGORIES

Eligible Project categories under the GTF will continue to include: public transit, local roads and bridges, wastewater, water, solid waste and community energy infrastructure and non-capital investments in capacity building initiatives. As announced in Economic Action Plan 2013, new eligible project categories have been added to include highways, local and regional airports, short-line rail, short-sea shipping, disaster mitigation, broadband and connectivity, brownfield redevelopment, culture, tourism, sport, and recreation infrastructure. Schedule B (Eligible Project Categories) provides further details regarding Eligible Project categories.

7. ELIGIBLE EXPENDITURES

Eligible Expenditures are those associated with: the acquiring, planning, designing, constructing, or renovating a tangible capital asset; the strengthening of the ability of Local Governments to improve local and regional planning and asset management as well as joint communication activities and federal signage. Schedule C (Eligible and Ineligible Expenditures) sets out specific requirements for eligible and ineligible expenditures.

8. REPORTING

Alberta will provide to Canada an Annual Report reporting on expenditures as well as project-level information. Furthermore, Alberta will provide to Canada periodic Outcomes Reports indicating progress and results of the GTF in order to demonstrate overall GTF progress toward the national objectives. Schedule D (Reporting) sets out specific reporting requirements.

9. COMMUNICATIONS

Schedule E (Communications Protocol) sets out specific communications requirements, including:

  • providing upfront project information on submitted eligible projects on an annual basis for communications purposes;
  • including the federal government in local project communications; and
  • installing federal project signs.

10. ASSET MANAGEMENT

Canada and Alberta agree to work in collaboration to develop the approach to asset management planning based on where Alberta is today, in order to ensure continued progress is made while setting achievable goals against which Alberta will measure progress as part of the Outcomes Report. At minimum, Alberta will require that Local Governments prepare a multi-year capital plan that includes projects funded through the GTF.

Alberta agrees that the approach to asset management planning will be finalized and presented to the Oversight Committee Co-Chairs by December 31, 2015.

SCHEDULE A – Additional Provincial Responsibilities

Alberta will:

  1. Sign a Memorandum of Agreement with each Local Government prior to the transfer of any GTF funding from Alberta. Each Memorandum of Agreement will require that each Local Government:
    • Be responsible for the completion of each Eligible Project in accordance with Schedule B (Eligible Project Categories) and Schedule C (Eligible and Ineligible Expenditures).
    • Comply with all Local Government requirements outlined in Schedule E (Communications Protocol).
    • Develop an Asset Management Plan, within a reasonable timeframe, which will, at minimum, include a multi-year capital plan with projects funded through the GTF.
    • Invest, in a distinct account, GTF funding it receives from Alberta in advance of it paying Eligible Expenditures.
    • With respect to Contracts, award and manage Contracts in accordance with their relevant policies and procedures and, if applicable, in accordance with the Agreement on Internal Trade and applicable international and interprovincial trade agreements, and all other applicable laws.
    • Invest into Eligible Projects, any revenue that is generated from the sale, lease, encumbrance or other disposal of an asset resulting from an Eligible Project where such disposal takes place within five (5) years of the date of completion of the Eligible Project.
    • Allow Alberta reasonable and timely access to all of its documentation, records and accounts and those of their respective agents or Third Parties related to the use of GTF funding and Unspent Funds, and any interest earned thereon, and all other relevant information and documentation requested by Alberta or Canada via Alberta or its designated representatives for the purposes of audit, evaluation, and ensuring compliance with this Administrative Agreement.
    • Keep proper and accurate accounts and records in respect of all Eligible Projects for at least six (6) years after completion of the Eligible Project and, upon reasonable notice, make them available to Alberta.
    • Ensure that their actions do not establish or be deemed to establish a partnership, joint venture, principal-agent relationship or employer-employee relationship in any way or for any purpose whatsoever between Canada and the recipient or between Canada and a Third Party.
    • Ensure that they do not represent themselves, including in any agreement with a Third Party, as a partner, employee or agent of Canada.
    • Require that no current or former public servant or public office holder to whom any post-employment, ethics and conflict of interest legislation, guidelines, codes or policies of Canada applies will derive direct benefit from GTF funding, Unspent Funds, unless the provision or receipt of such benefits is in compliance with such legislation, guidelines, policies or codes.
    • Require that they will not, at any time, hold the Government of Canada, its officers, servants, employees or agents responsible for any claims or losses of any kind that they, Third Parties or any other person or entity may suffer in relation to any matter related to GTF funding or an Eligible Project and that they will, at all times, compensate the Government of Canada, its officers, servants, employees and agents for any claims or losses of any kind that any of them may suffer in relation to any matter related to GTF funding or an Eligible Project.
    • Agree that the above requirements which, by their nature, should extend beyond the expiration or termination of this Agreement will extend beyond such expiration or termination.
  2. Permit the use of multiple grant funding sources for a GTF-funded project; however, if a Local Government chooses this approach, it will be the Local Government's responsibility to understand the separate requirements of each program providing funding noted in Section 3.3 (Use and Recording of Funds) of Annex B (Terms and Conditions).

SCHEDULE B – Eligible Project Categories

Eligible Projects include investments in Infrastructure for its construction, renewal or material enhancement in each of the following categories:

  1. Local roads and bridges – roads, bridges and active transportation infrastructure (active transportation refers to investments that support active methods of travel. This can include: cycling lanes and paths, sidewalks, hiking and walking trails).
  2. Highways – highway infrastructure.
  3. Short-sea shipping – infrastructure related to the movement of cargo and passengers around the coast and on inland waterways, without directly crossing an ocean.
  4. Short-line rail – railway related infrastructure for carriage of passengers or freight.
  5. Regional and local airports – airport-related infrastructure (excludes the National Airport System).
  6. Broadband connectivity – infrastructure that provides internet access to residents, businesses, and/or institutions in Canadian communities.
  7. Public transit – infrastructure that supports a shared passenger transport system which is available for public use.
  8. Drinking water – infrastructure that supports drinking water conservation, collection, treatment and distribution systems.
  9. Wastewater – infrastructure that supports wastewater and storm water collection, treatment and management systems.
  10. Solid waste – infrastructure that supports solid waste management systems including the collection, diversion and disposal of recyclables, compostable materials and garbage.
  11. Community energy systems – infrastructure that generates or increases the efficient usage of energy.
  12. Brownfield Redevelopment – remediation or decontamination and redevelopment of a brownfield site within municipal boundaries, where the redevelopment includes:
    • the construction of public infrastructure as identified in the context of any other category under the GTF, and/or;
    • the construction of municipal use public parks and publicly-owned social housing.
  13. Sport Infrastructure – amateur sport infrastructure (excludes facilities, including arenas, which would be used as the home of professional sports teams or major junior hockey teams (ex. Junior A)).
  14. Recreational Infrastructure – recreational facilities or networks.
  15. Cultural Infrastructure – infrastructure that supports arts, humanities, and heritage.
  16. Tourism Infrastructure – infrastructure that attracts travelers for recreation, leisure, business or other purposes.
  17. Disaster mitigation – infrastructure that reduces or eliminates long-term impacts and risks associated with natural disasters infrastructure that reduces or eliminates long-term impacts and risks associated with natural disasters.
  18. Capacity building – includes investments related to strengthening the ability of Local Governments to develop long-term planning practices.

Note: Investments in health infrastructure (hospitals, convalescent and senior centres) are not eligible.

SCHEDULE C – Eligible and Ineligible Expenditures

1. Eligible Expenditures

1.1 Eligible Expenditures of Local Governments will be limited to the following:

  • the expenditures associated with acquiring, planning, designing, constructing or renovating a tangible capital asset, as defined by Generally Accepted Accounting Principles (GAAP), and any related debt financing charges specifically identified with that asset;
  • for capacity building category only, the expenditures related to strengthening the ability of Local Governments to improve local and regional planning including capital investment plans, integrated community sustainability plans, life-cycle cost assessments, and Asset Management Plans. The expenditures could include developing and implementing:
    • studies, strategies, or systems related to asset management, which may include software acquisition and implementation;
    • training directly related to asset management planning; and
    • long-term infrastructure plans.
  • the expenditures directly associated with joint federal communication activities and with federal project signage.

1.2 Employee and Equipment Costs: The incremental costs of the Local Government's employees or leasing of equipment may be included as Eligible Expenditures under the following conditions:

  • the Local Government must declare that it is not economically feasible to tender a contract;
  • the employee or equipment is engaged directly in respect of the work that would have been the subject of the contract; and
  • the arrangement is approved through the project submission process.

1.3 Administration expenses of Alberta related to program delivery and implementation of this Agreement, in accordance with Section 5 (Administration Expenses) of Annex B (Terms and Conditions).

2. Ineligible Expenditures

The following are deemed Ineligible Expenditures:

  • project expenditures incurred before April 1, 2005;
  • project expenditures incurred before April 1, 2014 for the following investment categories:
    • highways;
    • regional and local airports;
    • short-line rail;
    • short-sea shipping;
    • disaster mitigation;
    • broadband connectivity;
    • brownfield redevelopment;
    • cultural infrastructure;
    • tourism infrastructure;
    • sport infrastructure; and
    • recreational infrastructure.
  • the cost of leasing of equipment by the Local Government, any overhead costs, including salaries and other employment benefits of any employees of the Local Government, direct or indirect operating or administrative costs of the Local Government, and more specifically its costs related to planning, engineering, architecture, supervision, management and other activities normally carried out by its staff, except in accordance with Eligible Expenditures above;
  • taxes for which the Local Government is eligible for a tax rebate and all other costs eligible for rebates;
  • purchase of land or any interest therein, and related costs;
  • legal fees; and
  • routine repair and maintenance costs.

SCHEDULE D – Reporting

Reporting requirements under the GTF consist of an Annual Report and an Outcomes Report which will be submitted to Canada for review and acceptance. The reporting year is January 1st to December 31st.

1. Annual Report

By September 30th of 2015 and each year thereafter, Alberta will provide to Canada an Annual Report in an electronic format deemed acceptable by Canada consisting of the following:

1.1 Financial Report Table

The financial report table will be submitted in accordance with the following template.

Annual Report Financial Table Annual Cumulative
20xx - 20xx 2014 - 20xx
Alberta in aggregate
Opening Balance1 $xxx empty
Received from Canada $xxx $xxx
Administrative Cost ($xxx) ($xxx)
Transferred to Local Governments ($xxx) ($xxx)
Closing Balance $xxx empty
Local Governments in aggregate
Opening Balance2 $xxx empty
Received from Alberta $xxx $xxx
Interest Earned $xxx $xxx
Spent on Eligible Projects ($xxx) ($xxx)
Closing Balance $xxx empty

[1] For the 2014-2015 Annual Report this means the amount reported as unspent by Alberta in the 2013-2014 Annual Expenditure Report (as defined under the First Agreement).

[2] For the 2014-2015 Annual Report this means the amount reported as unspent by Eligible Recipients (as defined under the First Agreement) in the 2013-2014 Annual Expenditure Report (as defined under the First Agreement).

1.2 Independent Audit or Audit Based Attestation

Alberta will provide an independent audit opinion, or an attestation based on an independent audit and signed by a senior official designated in writing by Alberta as to:

  • the accuracy of the information submitted in the Financial Report Table; and
  • that GTF funding and Unspent Funds, and any interest earned thereon reported to Alberta by Local Governments are consistent with their submission.

1.3 Project List

Alberta will maintain, and provide to Canada a project list submitted in accordance with the following template.

Annual Report – GTF Project List Template
Project ID Local Government Project
Title
Project
Description
Investment
Category
Total
Project Cost
Funds (GTF)
Spent
Completed
to be filled in to be filled in to be filled in to be filled in to be filled in to be filled in to be filled in to be filled in
to be filled in to be filled in to be filled in to be filled in to be filled in to be filled in to be filled in to be filled in
to be filled in to be filled in to be filled in to be filled in to be filled in to be filled in to be filled in to be filled in
to be filled in to be filled in to be filled in to be filled in to be filled in to be filled in to be filled in to be filled in

2. Outcomes Report

By March 31, 2018 and March 31, 2023, Alberta will provide to Canada and make publicly available, an Outcomes Report that will report in aggregate on the degree to which investments are supporting the progress in Alberta towards achieving the following program benefits:

  • Beneficial impacts on communities of completed Eligible Projects;
  • Enhanced impact of GTF as a predictable source of funding including incrementality; and
  • Progress made on improving Local Government planning and asset management.

The Outcomes Report will present performance data and a narrative on how each program benefit is being met. Performance measurement methodology in respect of each program benefit will be approved by the Oversight Committee Co-Chairs.

SCHEDULE E – Communications Protocol

1 Purpose

1.1. The provisions of this Communications Protocol apply to all communications activities related to any GTF funding, including allocations, and Eligible Projects funded under this Agreement. Communications activities may include, but are not limited to, public or media events, news releases, reports, project signs, digital signs, and publications.

1.2. Through collaboration, Canada and Alberta agree to work to ensure clarity and consistency in the communications activities meant for the public.

2 Joint communications approach

2.1. Canada and Alberta agree to work in collaboration to develop a joint communications approach that identifies guiding principles, including those related to the provision of upfront information on submitted eligible projects, project signage, and planned communications activities throughout the year. This joint communications approach will have the objective of ensuring that communications activities undertaken each calendar year communicate a mix of Eligible Project types from both large and small communities, span the full calendar year and use a wide range of communications mediums.

2.2. Canada and Alberta agree that the joint communications approach for the first year of the program will be finalized and approved by the Oversight Committee Co-Chairs within 60 working days following the inaugural meeting of the Oversight Committee.

2.3. Canada and Alberta agree that communications activities completed under the joint communications approach will be reported to the Oversight Committee once a year, or more frequently as requested by the Oversight Committee.

2.4. Canada and Alberta agree to assess the effectiveness of the joint communications approach on an annual basis and, as required, update and propose modifications to the joint communications approach. Any modifications will be brought to the Oversight Committee Co-Chairs for approval.

3 Inform Canada on allocation and intended use of GTF funding for communications planning purposes

3.1. Alberta agrees to provide to Canada upfront information on Eligible Projects and Eligible Projects in progress on an annual basis, prior to the construction season. Canada and Alberta will agree, in the joint communications approach, on the date this information will be provided. The information will include, at a minimum:

Local Government name; Eligible Project name; Eligible Project category, a brief but meaningful Eligible Project description; amount of GTF funds being used toward the Eligible Project; and anticipated construction start date.

3.2 Canada and Alberta agree that the above information will be delivered to Canada in an electronic format deemed acceptable by Canada. This information will only be used for communications planning purposes and not for program reporting purposes.

3.3 Canada and Alberta agree that the joint communication approach will define a mechanism to ensure the most up-to-date Eligible Project information is available to Canada to support media events and announcements for Eligible Projects.

4 Project signage

4.1 Canada, Alberta and Local Governments may each have a sign recognizing their contribution to Eligible Projects.

4.2 At Canada's request, Alberta will require the Local Government to install a federal sign to recognize federal funding at Eligible Project site(s). Federal sign design, content, and installation guidelines will be provided by Canada and included in the joint communications approach.

4.3 Where Alberta or a Local Government decides to install a permanent plaque or other suitable marker with respect to an Eligible Project, it must recognize the federal contribution to the Eligible Project(s) and be approved by Canada.

4.4 The Local Government is responsible for the production and installation of Eligible Project signage, or as otherwise agreed upon.

4.5 Alberta agrees to inform Canada of signage installations on a basis mutually agreed upon in the joint communications approach.

5 Media events and Announcements for Eligible Projects

5.1 Canada and Alberta agree to have regular announcements of Eligible Projects that are benefiting from GTF funding. Key milestones may be marked by public events, news releases and/or other mechanisms.

5.2 Media events include, but are not limited to, news conferences, public announcements, official events or ceremonies, and news releases.

5.3 Canada, Alberta or a Local Government may request a media event.

5.4 Media events related to Eligible Projects will not occur without the prior knowledge and agreement of Canada, Alberta and the Local Government.

5.5 The requestor of a media event will provide at least 15 working days notice to other parties of their intention to undertake such an event. The event will take place at a mutually agreed date and location. Canada, Alberta and the Local Government will have the opportunity to participate in such events through a designated representative of their own choosing.

5.6 The conduct of all joint media events and products will follow the Table of Precedence for Canada.

5.7 All joint communications material related to media events must be approved by Canada and recognize the funding of the parties.

5.8 All joint public communication material in relation to this Agreement shall be produced in a manner that allows each party to respect their own official language requirements.

6 Program communications

6.1 Canada, Alberta and Local Governments may include messaging in their own communications products and activities with regard to the GTF.

6.2 The party undertaking these activities will provide the opportunity for the other parties to participate, where appropriate, and will recognize the funding of all contributors.

6.3 Canada and Alberta agree that they will not unreasonably restrict the other parties from using, for their own purposes, public communications products related to the GTF prepared by Canada, Alberta or Local Governments, or, if web-based, from linking to it.

6.4 Notwithstanding Section 5 (Communications Protocol), Canada retains the right to meet its obligations to communicate information to Canadians about the GTF and the use of funding through communications products and activities.

7 Operational Communications

7.1 The Local Government is solely responsible for operational communications with respect to Eligible Projects, including but not limited to, calls for tender, construction, and public safety notices. Operational communications as described above are not subject to the federal official language policy.

7.2 Alberta and Canada will share information promptly with each other should significant emerging media issues relating to an Eligible Project arise. Alberta will advise Local Governments, when appropriate, about media inquiries received concerning an Eligible Project.

8 Communicating Success Stories

Alberta agrees to facilitate communications between Canada and Local Governments for the purposes of collaborating on communications activities and products including but not limited to Eligible Project success stories, Eligible Project vignettes, and Eligible Project start-to-finish features. This would include requesting reasonable information from Local Governments and providing this information to Canada, and/or setting up direct communications between Canada and Local Governments, at Alberta's discretion.

9 Advertising campaigns

Recognizing that advertising can be an effective means of communicating with the public, Canada, Alberta or a Local Government may, at their own cost, organize an advertising or public information campaign related to the GTF or Eligible Projects. However, such a campaign must respect the provisions of this Agreement. In the event of such a campaign, the sponsoring party or Local Government agrees to inform the other parties of its intention, and to inform them no less than 21 working days prior to the campaign launch.