TAMRMS#: B06
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City Manager Delegation - Federal Grant agreement
Presented by: Diane McMordie, Director of Financial Services
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RECOMMENDATION(S)
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1. That the City Manager be authorized to execute a federal grant funding agreement with Transport Canada with an amount not to exceed $500,000 for the “Railroad Safety Enhancement” project.
2. That on August 22, 2018, administration bring back amendments to Council Policy C-CAO-01 City Manager Delegation that allows for the City Manager to execute and sign grant/rebate agreements of any value for Council approved projects.
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PURPOSE OF REPORT
As per current policy C-CAO-01 City Manager Delegations, Council must approve all revenue contracts in excess of $100,000. Seeking Council’s approval specific to the awarded federal grant related to the Railway Enhancement project.
Secondarily, seeking Council support to amend the City Manager Delegation policy to have a separate section related to Grant type revenue contracts
COUNCIL DIRECTION
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BACKGROUND AND DISCUSSION
On December 15, 2014 Council approved project 415102 Railroad Safety Enhancement. The City applied for and was awarded a grant towards this project which will likely value between $400-$500 thousand. Based on current language in policy C-CAO-01 City Manager Delegations the City Manager only has authority to enter into revenue contracts up to $100,000 which is why this item is being brought to Council for approval at this time.
While this language in the policy has been in place for many years, grant contracts have historically never been brought to Council for approval as they were not interpreted as a “revenue” contract as stated in the policy. Recent review of the policy has now led us to believe that given no other section in the policy dealing with grant agreements specifically, these would be classified as a revenue contract.
As it would not be practical for Council to approve all grant agreements over $100,000 (approximately 20/year), it is recommended that, for clarity, an additional section be added to the policy that specifically references grant & rebate contracts/agreements to indicate that the City Manager can execute any of these agreement that are directly tied to a Council approved project.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
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IMPLICATIONS OF RECOMMENDATION(S)
Financial:
Recommendation one allows us to be in compliance with the current policy by having council approve (delegate to the city manager to approve) this specific grant agreement.
Recommendation 2 clarifies the current practice related to execution of grant agreements with the policy and maintains an efficient process with no increase to risk.
Legal / Risk:
There is limited risk associated with delegating this responsibility to the City Manager for Council approved projects. Further, grant or rebate agreements are, and would be, reviewed by Legal and Financial Services staff to ensure the terms thereof are acceptable.
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ALTERNATIVES AND IMPLICATIONS CONSIDERED
1. Do not grant approval to execute the federal grant agreement. This would mean that there is lost revenue opportunity and the project would be funded solely from City funds
2. Do not direct administration to bring a policy amendment to Council. This would mean that all grant agreements in excess of $100,000 would need to come to Council for approval (approx 20/year)
Report Date (Council Meeting Date): June 25, 2018
Author(s): Diane McMordie, Director, Financial Services
Committee/Department: Financial Services
General Manager: Michelle Bonnici, GM Corporate Services
City Manager: Kevin Scoble