Administrative Agreement on the Federal Gas Tax Fund - Canada - New Brunswick - 2014
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BETWEEN: THE GOVERNMENT OF CANADA ("Canada"), as represented by the President of the Queen's Privy Council for Canada, Minister of Infrastructure, Communities and Intergovernmental Affairs
AND: THE GOVERNMENT OF NEW BRUNSWICK ("New Brunswick"), as represented by the Minister responsible for the Regional Development Corporation ("RDC") and the Minister of Environment and Local Government ("ELG").
This Administrative Agreement sets out the roles and responsibilities of Canada and New Brunswick for the administration of the Gas Tax Fund (GTF).
With this Administrative Agreement, Canada and New Brunswick 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 per cent 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 New Brunswick 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.
Canada and New Brunswick acknowledge that this Administrative Agreement is based on the following principles:
- Principle 1 – Respect for jurisdiction: The GTF was designed to leverage the strengths of each level 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 Administrative Agreement:
- Annex A: Definitions
- Annex B: Terms and conditions, including:
- Schedule A: Ultimate Recipient Requirements
- Schedule B: Eligible Project Categories
- Schedule C: Eligible and Ineligible Expenditures
- Schedule D: Reporting
- Schedule E: Communications Protocol
- Schedule F: Asset Management
Unless defined elsewhere in this Administrative Agreement, capitalized words used throughout this Administrative Agreement are defined in Annex A (Definitions).
6. FEDERAL GAS TAX FUND
6.1 Any GTF funding that may be transferred by Canada to New Brunswick, when transferred, will be administered by New Brunswick in accordance with this Administrative Agreement, including the terms and conditions set out in Annex B (Terms and Conditions).
6.2 Any Unspent Funds, and any interest earned thereon, will be subject to the terms and conditions of this Administrative 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 New Brunswick will monitor the overall implementation of this Administrative Agreement, and will serve as the principal forum to address and resolve issues arising from the implementation of this Administrative 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 New Brunswick, and designated as Provincial Co-Chair. Replacement members from either Canada or New Brunswick may, from time to time, be appointed. Canada and New Brunswick agree to keep each other informed in writing of new appointments.
7.3 The 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 New Brunswick 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 Co-Chairs will report on the working group or subcommittee's plans and achievements on a frequency defined by the Oversight Committee Co-Chairs.
8. DISPUTE RESOLUTION
8.1 Canada and New Brunswick will work together to resolve any issues which may arise in relation to this Administrative Agreement.
8.2 It is understood that failure by Canada or New Brunswick, as appropriate, to meet the following requirements are of particular interest and will be addressed as a priority:
- ensuring that Ultimate Recipients 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 December 31 of each year and an Outcomes Report, as outlined in Schedule D (Reporting) of Annex B (Terms and Conditions); and,
- 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.
8.4 Any issue that cannot be resolved at the Oversight Committee or by senior officials will be submitted to the Canada and New Brunswick Ministers for resolution, within a reasonable timeframe.
8.5 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, at its expense, carry out audits in relation to this Administrative Agreement. New Brunswick will provide Canada and its designated representatives with reasonable and timely access to all documentation, records and accounts that are held by New Brunswick that are related to this Administrative Agreement and the use of GTF funding, and any interest earned thereon, and to all other relevant information and documentation requested by Canada or its designated representatives for the purposes of audit and evaluation, or cause Ultimate Recipients, their respective agents or Third Parties to make such material available to Canada for the purpose of audit, evaluation and ensuring compliance with this Administrative Agreement in a manner consistent with Schedule A (Ultimate Recipient Requirements).
9.2 Canada may, at its expense, complete a periodic evaluation of the GTF to review the relevance and performance (i.e. effectiveness, efficiency and economy) of the GTF. New Brunswick will provide Canada with information on program performance and may be asked to participate in the evaluation process. The results of the evaluation will be made publicly available.
9.3 New Brunswick will 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 will, upon reasonable notice, make them available to Canada.
9.4 Sections 9.1 to 9.3 will remain in effect beyond the expiration or termination of this Administrative Agreement until such time as may be determined by Canada and New Brunswick.
10. DURATION, TERMINATION, REVIEW AND AMENDMENT
10.1 This Administrative Agreement will be effective as of April 1, 2014 and will be in effect until March 31, 2024 unless Canada and New Brunswick agree to renew it. In the event where this Administrative Agreement is not renewed, any GTF funding and Unspent Funds, and any interest earned thereon held by New Brunswick or Ultimate Recipients, that have not been expended on Eligible Projects as of March 31, 2024 will nevertheless continue to be subject to this Administrative Agreement until such time as may be determined by Canada and New Brunswick.
10.2 This Administrative Agreement will be reviewed by Canada and New Brunswick by March 31, 2018 and may be amended to incorporate changes, if any, agreed to by Canada and New Brunswick.
10.3 This Administrative Agreement may be amended at any time in writing as agreed to by Canada and New Brunswick.
10.4 This Administrative Agreement may be terminated at any time and for any reason by either Canada or New Brunswick on two (2) years written notice. In the event where this Administrative Agreement is so terminated, any GTF funding and Unspent Funds, and any interest earned thereon held by New Brunswick or Ultimate Recipients, that have not been expended on Eligible Projects as of the date of termination will nevertheless continue to be subject to this Administrative Agreement until such time as may be determined by Canada and New Brunswick.
10.5 If Canada concludes an Administrative Agreement with respect to the GTF for similar purposes with any other province or territory of Canada, and that Administrative Agreement taken as a whole is materially different from this Administrative Agreement, New Brunswick may ask Canada to agree to amend this Administrative Agreement so that, taken as a whole, it affords similar treatment to New Brunswick as the other Administrative Agreement affords to the other province or territory. In the event of any such request, Canada, and New Brunswick agree to discuss the request and any agreement reached between them to amend this Administrative Agreement will be effected in accordance with Section 10.3 (Duration, Termination, Review and Amendment).
Any correspondence under this Administrative Agreement may be delivered in person, sent by electronic mail, sent by facsimile, or sent by mail addressed to:
Assistant Deputy Minister
Program Operations Branch
1100-180 Kent Street
Ottawa, Ontario K1P 0B6
Facsimile: (613) 960-9423
or to such other address or facsimile number or electronic address or addressed to such other person as Canada may, from time to time, designate in writing to New Brunswick; and
Corporate Services Programs
Regional Development Corporation
P. O. Box 6000
Fredericton, New Brunswick E3B 5H1
Facsimile: (506) 453-7988
Assistant Deputy Minister
Corporate Services, Community Funding and Performance Excellence Process Division
Department of Environment and Local Government
P. O. Box 6000
Fredericton, New Brunswick E3B 5H1
Facsimile: (506) 444-2734
or such other address or facsimile number or electronic address or addressed to such other person as New Brunswick may, from time to time, designate in writing to Canada.
12. COUNTERPART SIGNATURE
This Administrative Agreement may be signed in counterpart, and the signed copies will, when attached, constitute an original agreement
The Honourable Denis Lebel
Minister of Infrastructure, Communities and Intergovernmental Affairs
The Honourable Paul Robichaud
Minister responsible for the Regional Development Corporation
The Honourable Danny Soucy
Minister of Environment and Local Government
- "Administrative Agreement"
- means this Canada – New Brunswick Administrative Agreement on the Federal Gas Tax Fund, including its Annexes and Schedules.
- "Annual Report"
- means the duly completed annual report to be prepared and delivered by New Brunswick to Canada, as described in Schedule D (Reporting).
- "Capital 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.
- "Capital Investment Plan for Incorporated Areas"
- means a document created and approved by locally elected officials, detailing the anticipated investments in Incorporated Areas into Tangible Capital Assets and capacity building projects that are priorities.
- "Capital Investment Plan for Unincorporated Areas"
- means a document created by New Brunswick detailing the anticipated investments in Unincorporated Areas into Tangible Capital Assets and capacity building projects that are priorities.
- means an agreement between an Ultimate Recipient 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 November 24, 2005 by the Government of Canada and the Government of New Brunswick, as amended on October 6, 2008, and on January 12, 2009, with an expiry date of March 31, 2015.
- 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.
- "Incorporated Area" or "Incorporated Areas"
- means any municipality, rural community or regional municipality pursuant to the New Brunswick Municipalities Act.
- "Ineligible Expenditures"
- means those expenditures described as ineligible in Schedule C (Eligible and Ineligible Expenditures).
- "Local Government" or "Local Governments"
- means one or more municipality, rural community, regional municipality and any other public authority responsible for delivering local services in New Brunswick, and other public authority responsible for delivering local services in New Brunswick if that authority has been given the said responsibility by statute.
- "Municipal Infrastructure"
- means municipal or regional, publicly or privately owned, tangible capital assets primarily for public use or benefit in New Brunswick.
- "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 accordance with Section 7 (Oversight Committee) of this Administrative Agreement.
- "Tangible Capital Assets"
- means non-financial assets having physical substance that:
- are held for use in the production or supply of goods and services for administrative purposes or for the development and construction of other tangible capital assets;
- have useful economic lives extending beyond one year;
- are to be used on a continuing basis; and,
- are not for sale in the ordinary course of operations
- "Third Party"
- means any person or legal entity, other than Canada, New Brunswick or an Ultimate Recipient, who participates in the implementation of an Eligible Project by means of a Contract.
- "Ultimate Recipient" or "Ultimate Recipients"
- a Local Government or its agent (including its wholly owned corporation);
- a non-municipal entity on the condition that the Local Government has indicated support for the Eligible Project through a formal resolution of its council. A non-municipal entity includes:
- for profit organization;
- not-for-profit organizations; and
- non-governmental organizations.
- New Brunswick entities in the form of departments, corporations and agencies where they provide core municipal services.
- "Unincorporated Area" or "Unincorporated Areas"
- means an area or areas outside the territorial limits of a municipality, a rural community or a regional municipality, that is established as an unincorporated area.
- "Unspent Funds"
- means the amount reported as unspent by New Brunswick and by Eligible Recipients (as defined under the First Agreement) in the 2013-14 Annual Expenditure Report (as defined under the First Agreement).
TERMS AND CONDITIONS
1. ALLOCATION FORMULA
1.1 Any Unspent Funds held by New Brunswick and any GTF funding that may be received by New Brunswick from Canada, as well as any interest earned thereon, will be allocated annually in accordance with Section 1.1.1 (Incorporated Areas Allocation), Section 1.1.2 (Unincorporated Area Allocation), and subject to Section 1.1 (a) (Allocation Formula).
1.1 (a) Unspent Funds that were allocated by New Brunswick to Eligible Recipients (as defined under the First Agreement) but not expended by New Brunswick, including Unspent Funds that have been withheld from Eligible Recipients (as defined under the First Agreement) by New Brunswick, will remain allocated to those Ultimate Recipients.
1.1 (b) Before determining any allocation to the Incorporated Areas and the Unincorporated Areas, New Brunswick may apply up to a maximum of 1.35 per cent of any GTF funding it may receive from Canada for administrative expenses in accordance with Section 5 of Annex B.
1.1.1 INCORPORATED AREAS ALLOCATION
1.1.1 (a) New Brunswick will allocate eighty per cent (80%) of any GTF funding that may be transferred to it from Canada annually to the Incorporated Areas Allocation.
1.1.1 (b) New Brunswick will allocate to eligible Ultimate Recipients in Incorporated Areas, a portion of the Incorporated Areas Allocation. This portion will be determined on a per capita basis subject to the provisions of Section 1.1.1 (c), below.
1.1.1 (c) The per capita portions referred to in section 1.1.1 (b) above, will be determined by New Brunswick. For the period from 2014 to 2018, New Brunswick will rely on the final figures published in the Statistics Canada Census of 2011 to determine its allocation to Ultimate Recipient in Incorporated Areas. For the period from 2019 to 2023, New Brunswick will rely on the final figures published in the Statistics Canada Census of 2016 to determine its allocation to Ultimate Recipient in Incorporated Areas.
1.1.2 UNINCORPORATED AREAS ALLOCATION
1.1.2 (a) New Brunswick will allocate twenty per cent (20%) of any GTF funding that may be transferred to it from Canada annually, and any interest earned thereon, to the Unincorporated Areas Allocation.
1.1.2 (b) New Brunswick may allocate to the Unincorporated Areas Allocation, Unspent Funds of an amount equal to the unspent portion of the province's administrative funding from the First Agreement.
1.1.2 (c) New Brunswick will allocate any interest earned on Unspent Funds held by New Brunswick, and any interest earned on any GTF funding that may be received by New Brunswick from Canada, to the Unincorporated Areas Allocation.
1.3 New Brunswick agrees to provide to Canada, upon request, a table detailing the Ultimate Recipient allocations, and promptly provide to Canada updates to the table upon any revision to the allocations.
2. DELIVERY MECHANISM
2.1 INCORPORATED AREAS ALLOCATION
2.1 (a) New Brunswick will allocate directly to each Ultimate Recipients in Incorporated Areas a portion of the Incorporated Areas Allocation based on the Allocation Formula described above, and the agreement entered into between New Brunswick and each eligible Ultimate Recipient in an Incorporated Area. New Brunswick will negotiate into each agreement with eligible Ultimate Recipients, at a minimum, the elements detailed in Schedule A (Ultimate Recipient Requirements), Schedule C (Eligible and Ineligible Expenditures), and Schedule E (Communications Protocol) of this Administrative Agreement.
2.1 (b) New Brunswick will ensure that Ultimate Recipients allocated funding by New Brunswick under the Incorporated Areas Allocation develop and provide to New Brunswick a Capital Investment Plan for Incorporated Areas before New Brunswick will disburse the allocations.
2.1 (c) New Brunswick will ensure that Ultimate Recipients in Incorporated Areas will decide which Eligible Projects will receive GTF funding in accordance with any allocation, and in accordance with their Capital Investment Plan for Incorporated Areas submitted to New Brunswick.
2.1 (d) Any new Local Government entity duly incorporated by virtue of an Order of the Lieutenant-Governor in Council and in force between April 1, 2014 and March 31, 2019 shall have access to GTF funding under Section 2.2 (c) of the Unincorporated Areas Allocation for the 2014-2018 funding period. For the 2019-23 funding period, the LocaI Government entity will have access to GTF funding under Section 2.1 (a) of the Incorporated Areas Allocation.
2.1 (e) Any new Local Government entity duly incorporated by virtue of an Order of the Lieutenant-Governor in Council and in force between April 1, 2019 and March 31, 2024 shall have access to GTF funding under Section 2.2 (c) of the Unincorporated Areas Allocation for the 2019-2023 funding period.
2.1 (f) New Brunswick will ensure that in the case where an Incorporated Area and an Unincorporated Area are part of a regional water, wastewater or regional services commission, the Ultimate Recipient in the Incorporated Area will provide GTF funds for the work through the commission as long as it is part of their Capital Investment Plan for Incorporated Areas.
2.2 UNINCORPORATED AREAS ALLOCATION
2.2 (a) New Brunswick will administer the Unincorporated Areas Allocation based on regional need and priority.
2.2 (b) New Brunswick will act as Ultimate Recipient on behalf of Unincorporated Areas. Within one year of the effective date of this Administrative Agreement, New Brunswick will make public a five-year Capital Investment Plan for Unincorporated Areas identifying Eligible Projects of regional priority.
2.2 (c) New Brunswick may act as Ultimate Recipient on behalf of any new Local Government entity accessing GTF funding in accordance with the stipulations set out in Sections 2.1 (d) and 2.1 (e) of the Incorporated Areas Allocation and where the new Local Government entity has submitted its Eligible Project priorities to New Brunswick for review.
2.2 (d) In the case where an Incorporated Area and an Unincorporated Area are part of a regional water, wastewater or regional services commission, New Brunswick will determine the level of GTF funding that will be allocated through the Unincorporated Areas Allocation to the Eligible Project.
2.2 (e) When acting as an Ultimate Recipient under this Administrative Agreement, New Brunswick, including any of its entities in the form of departments, corporations and agencies, agree to comply with the terms and conditions of this Administrative Agreement applicable to Ultimate Recipients, including Schedule A (Ultimate Recipient Requirements).
3. USE AND RECORDING OF FUNDS
3.1 New Brunswick will ensure that any GTF funding that may be transferred to it by Canada, Unspent Funds, and any interest earned thereon, are used solely in accordance with the terms and conditions set out in this Administrative Agreement.
3.2 New Brunswick will ensure that any GTF funding that may be transferred to it by Canada, Unspent Funds, and any interest earned thereon is used by Ultimate Recipients in accordance with this Administrative Agreement and specifically to Schedule A (Ultimate Recipient Requirements).
3.3 Pending payment to Ultimate Recipients in accordance with the terms and conditions of this Administrative Agreement, New Brunswick will record into a distinct account any GTF funding it may receive from Canada and any interest earned thereon.
3.4 Any GTF funding that may be transferred by Canada to New Brunswick, will be treated as federal funds with respect to other federal infrastructure programs.
Any GTF funding that New Brunswick may receive from Canada is not intended to replace or displace existing sources of funding for municipal tangible capital expenditures.
The average annual tangible capital expenditures by New Brunswick will not be less than the provincial base amount. The provincial base amount is the five-year (April 2000 - March 2005) average of funds spent by New Brunswick on municipal infrastructure, including funding allocated through the Provincial Environment Trust Fund, the Clean Water Program and the Canada – New Brunswick Infrastructure Program. For the purposes of this Administrative Agreement, the provincial base amount is $11.2 million.
The municipal base amount average of $46.5 million, as reported by New Brunswick in the 2012-13 Annual Expenditure Report (as defined in the First Agreement), will also be used by New Brunswick when measuring and reporting on incrementality for Incorporated Areas.
5. ADMINISTRATION EXPENSES
Upon the review and acceptance by Canada of a detailed business case, which must be submitted by April 1, 2015, New Brunswick may apply a portion of any GTF funding it may receive from Canada for administration expenses related to program delivery and implementation of this Administrative 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 federal communication activities and federal signage. Schedule C (Eligible and Ineligible Expenditures) sets out specific requirements for eligible and ineligible expenditures.
New Brunswick will provide to Canada an Annual Report reporting on expenditures as well as project-level information. Furthermore, New Brunswick 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.
This Administrative Agreement formalizes clear requirements to support federal communications objectives. Schedule E (Communications Protocol) sets out specific communications requirements, including:
- providing upfront project information on an annual basis for communications purposes;
- including the federal government in local project communications; and
- installing federal project signs.
10. ASSET MANAGEMENT
Asset management will be undertaken in accordance with the approach agreed upon between Canada and New Brunswick, as set out in Schedule F (Asset Management), and New Brunswick will report to Canada on progress made on asset management, as set out in Schedule D (Reporting).
SCHEDULE A – Ultimate Recipient Requirements
Ultimate Recipients will be required to:
- 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 Ultimate Recipient requirements outlined in Schedule E (Communications Protocol).
- Develop and/or implement a Capital Asset Management Plan in accordance with Schedule F (Asset Management).
- Invest, in a distinct account, GTF funding it receives from New Brunswick in advance of it paying Eligible Expenditures.
- With respect to Contracts, award and manage all Contracts in accordance with their relevant policies and procedures and, if applicable, in accordance with the Agreement on Internal Trade and applicable international 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 Canada 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 Canada 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 Canada.
- Ensure 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 Ultimate 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.
- Ensure 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, and interest earned thereon, unless the provision or receipt of such benefits is in compliance with such legislation, guidelines, policies or codes.
- Ensure 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 Administrative Agreement, will extend beyond such expiration or termination.
SCHEDULE B – Eligible Project Categories
Eligible Projects include investments in Municipal Infrastructure for its construction, renewal or material enhancement in each of the following categories:
- 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).
- Highways – highway infrastructure.
- Short-sea shipping – infrastructure related to the movement of cargo and passengers around the coast and on inland waterways, without directly crossing an ocean.
- Short-line rail – railway related infrastructure for carriage of passengers or freight.
- Regional and local airports – airport-related infrastructure (excludes the National Airport System).
- Broadband connectivity – infrastructure that provides internet access to residents, businesses, and/or institutions in Canadian communities.
- Public transit – infrastructure that supports a shared passenger transport system which is available for public use.
- Drinking water – infrastructure that supports drinking water conservation, collection, treatment and distribution systems.
- Wastewater – infrastructure that supports wastewater and storm water collection, treatment and management systems.
- Solid waste – infrastructure that supports solid waste management systems including the collection, diversion and disposal of recyclables, compostable materials and garbage.
- Community energy systems – infrastructure that generates or increases the efficient usage of energy.
- 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.
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 Ultimate Recipients 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 Capital 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 communication activities and with federal project signage for GTF-funded projects.
1.2 Employee and Equipment Costs: The incremental costs of the Ultimate Recipient's employees or leasing of equipment may be included as Eligible Expenditures under the following conditions:
- the Ultimate Recipient is able to demonstrate 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 in advance and in writing by New Brunswick, or when New Brunswick is acting as Ultimate Recipient, is approved in advance and in writing by Canada.
1.3 Administration expenses of New Brunswick related to program delivery and implementation of this Administrative 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:
- 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 Ultimate Recipient, except as provided for under subsection 1.2, above, any overhead costs, including salaries and other employment benefits of any employees of the Ultimate Recipient, its direct or indirect operating or administrative costs of Ultimate Recipients, 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 Ultimate Recipient 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 April 1 to March 31.
In the case of Ultimate Recipients with a year-end other than March 31, and with prior approval of New Brunswick, the Annual Report may include information in respect of Eligible Projects related to that Ultimate Recipient to the year end of that Ultimate Recipient (e.g. December 31).
1. Annual Report
By December 31 of each year, New Brunswick 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|
|New Brunswick in aggregate|
|Opening BalanceTable note 1||$xxx||empty|
|Received from Canada||$xxx||$xxx|
|Transferred to Ultimate Recipients||($xxx)||($xxx)|
|Closing Balance of unspent funds||$xxx||empty|
|Ultimate Recipients in aggregate (Incorporated Areas)|
|Opening BalanceTable note 2||$xxx||empty|
|Received from New Brunswick||$xxx||$xxx|
|Spent on Eligible Projects||($xxx)||($xxx)|
|Closing Balance of unspent funds||$xxx||empty|
|Ultimate Recipients in aggregate (Unincorporated Areas)|
|Opening BalanceTable note 3||$xxx||empty|
|Received from New Brunswick||$xxx||$xxx|
|Spent on Eligible Projects||($xxx)||($xxx)|
|Closing Balance of unspent funds||$xxx||empty|
1.2 Independent Audit or Audit Based Attestation:
Details of the audit approach will be discussed by the Oversight Committee. New Brunswick will provide an independent audit opinion, or an attestation based on an independent audit and signed by a senior official designated in writing by New Brunswick, 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, were expended for the purposes intended.
1.3 Project List:
New Brunswick will maintain, and provide to Canada a project list submitted in accordance with the following template.
|Project ID||Ultimate Recipien||Project
(Yes / No)
|Yes or No|
2. Outcomes Report
By March 31, 2018 and March 31, 2023, New Brunswick 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 New Brunswick 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
1.1. The provisions of this Communications Protocol apply to all communications activities related to any GTF funding, including allocations, and Eligible Projects funded under this Administrative Agreement. Communications activities may include, but are not limited to, public or media events, news releases, reports, web articles, blogs, project signs, digital signs, publications, success stories and vignettes, photo compilations, videos, advertising campaigns, awareness campaigns, editorials, awards programs, and multi-media products.
1.2. Through collaboration, Canada and New Brunswick agree to work to ensure clarity and consistency in the communications activities meant for the public.
2 Joint communications approach
2.1. Canada and New Brunswick agree to work in collaboration to develop a joint communications approach that identifies guiding principles, including those related to the provision of upfront project information, 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 New Brunswick agree that the initial annual joint communications approach 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 New Brunswick agree that achievements 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 New Brunswick 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. New Brunswick agrees to provide to Canada upfront information on planned Eligible Projects and Eligible Projects in progress on an annual basis, prior to the construction season. Canada and New Brunswick will agree, in the joint communications approach, on the date this information will be provided. The information will include, at a minimum:
Ultimate Recipient name; Eligible Project name; Eligible Project category, a brief but meaningful Eligible Project description; amount of funds being used toward the Eligible Project; and anticipated start date.
3.2 Canada and New Brunswick 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 New Brunswick 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, New Brunswick and Ultimate Recipients may each have a sign recognizing their contribution to Eligible Projects.
4.2 At Canada's request, New Brunswick or Ultimate Recipients will 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 New Brunswick or an Ultimate Recipient 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 New Brunswick or the Ultimate Recipient is responsible for the production and installation of Eligible Project signage, or as otherwise agreed upon.
4.5 New Brunswick 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 New Brunswick agree to have regular announcements of Eligible Projects that are benefiting from GTF funding that may be provided by Canada. 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, New Brunswick or an Ultimate Recipient may request a media event.
5.4 Media events related to Eligible Projects will not occur without the prior knowledge and agreement of Canada, New Brunswick and the Ultimate Recipient.
5.5 The requester 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, New Brunswick and the Ultimate Recipient will have the opportunity to participate in such events through a designated representative. Each party and the Ultimate Recipient will choose their own designated representative.
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 communications material must reflect Canada's policy on official languages and the federal identity program.
6 Program communications
6.1 Canada, New Brunswick and Ultimate Recipients 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 New Brunswick 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, New Brunswick or Ultimate Recipients, 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 New Brunswick or the Ultimate Recipient 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 Canada, New Brunswick or the Ultimate Recipient will share information promptly with the other parties to this Administrative Agreement should significant emerging media or stakeholder issues relating to an Eligible Project arise. Canada and New Brunswick will advise Ultimate Recipients, when appropriate, about media inquiries received concerning an Eligible Project.
8 Communicating success stories
New Brunswick agrees to facilitate communications between Canada and Ultimate Recipients 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.
9 Advertising campaigns
Recognizing that advertising can be an effective means of communicating with the public, Canada, New Brunswick or an Ultimate Recipient 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 Administrative Agreement. In the event of such a campaign, the sponsoring party or Ultimate Recipient agrees to inform the other parties of its intention, and to inform them no less than 21 working days prior to the campaign launch.
SCHEDULE F – Asset Management
New Brunswick will ensure that Ultimate Recipients in Incorporated Areas:
- undertake asset management planning which will be achieved through the development of a Capital Asset Management Plan; and,
- submit the Capital Asset Management Plan to New Brunswick, specifically the Department of Environment and Local Government.
Each Capital Asset Management Plan will include, at a minimum the following information:
- An inventory of infrastructure assets, including but not limited to Municipal Infrastructure funded under the First Agreement and/or this Administrative Agreement;
- An assessment of the physical condition of the infrastructure asset; and,
- A list of priorities for life cycle management based on the Ultimate Recipient's needs and planning.
New Brunswick's goals are to receive completed Capital Asset Management Plans:
- from 25 per cent of Local Governments by December 31, 2017;
- from 50 per cent of Local Governments by December 31, 2022; and,
- from 100 per cent of Local Governments by December 31, 2027.
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