Administrative Agreement on the Federal Gas Tax Fund - Canada - Yukon - 2014
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BETWEEN: THE GOVERNMENT OF CANADA, as represented by the President of the Queen's Privy Council for Canada, Minister of Infrastructure, Communities and Intergovernmental Affairs ("Canada")
AND: THE GOVERNMENT OF YUKON, as represented by the Minister of Community Services ("the Yukon Government")
This Administrative Agreement sets out the roles and responsibilities of Canada and the Yukon Government for the administration of the Gas Tax Fund (GTF).
With this Administrative Agreement, Canada and the Yukon Government 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 the Yukon Government 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 the Yukon Government 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 the Yukon Government, when transferred, will be administered by the Yukon Government 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 the Yukon Government 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, collectively referred to as the Co-Chairs. One co-chair is to be appointed by Canada, and the other co-chair is to be appointed by the Yukon Government. Replacement members from either Canada or the Yukon Government may, from time to time, be appointed. Canada and the Yukon Government agree to keep each other informed in writing of new appointments.
7.3 In addition to the Co-Chairs detailed above, the Oversight Committee will consist of up to six (6) other members. Two (2) of whom are to be designated by the Association of Yukon Communities (AYC), two (2) of whom are to be designated by the Council of Yukon First Nations (CYFN), and two (2) of whom are to be designated by Canada and the Yukon Government, respectively. The designation of these additional members will be provided to the Co-Chairs of the Oversight Committee in writing.
7.4 The Co-Chairs will examine any issues that arise, as per Section 7.1, and will, in good faith and reasonably, attempt to resolve potential disputes in consultation with, as appropriate, members of the Oversight Committee. Any issue that cannot be resolved by the Co-Chairs will be addressed through the dispute resolution process detailed in Section 8 (Dispute Resolution).
7.5 Canada and the Yukon Government 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 the Yukon Government will work together to resolve any issues which may arise in relation to this Administrative Agreement.
8.2 It is understood that failure 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 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.
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, at its expense, carry out any audits in relation to this Administrative Agreement. The Yukon Government will provide Canada and its designated representatives with reasonable and timely access to all documentation, records and accounts that are held by the Yukon Government 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 require that Ultimate Recipients, their respective agents or Third Parties make such material available to Canada for inspection or audit.
9.2 For greater certainty, the documentation, records and accounts described under Section 9.1 above will not include records of the Executive Council or any of its committees such as the Management Board.
9.3 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. The Yukon Government 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.
9.4 The Yukon Government 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.
9.5 Sections 9.1 to 9.4 will remain in effect beyond the expiration or termination of this Administrative Agreement until such time as may be determined by Canada and the Yukon Government.
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 the Yukon Government 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 the Yukon Government 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 the Yukon Government.
10.2 This Administrative Agreement will be reviewed by Canada and the Yukon Government by March 31, 2018, and may be amended to incorporate changes, if any, agreed to by Canada and the Yukon Government.
10.3 This Administrative Agreement may be amended at any time in writing as agreed to by Canada and the Yukon Government.
10.4 This Administrative Agreement may be terminated at any time and for any reason by either Canada or the Yukon Government 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 the Yukon Government 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 the Yukon Government.
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, the Yukon Government may ask Canada to agree to amend this Administrative Agreement so that, taken as a whole, it affords similar treatment to the Yukon Government as the other Administrative Agreement affords to the other province or territory. In the event of any such request, Canada and the Yukon Government 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
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 the Yukon Government; and
Government of Yukon
P.O. Box 2703
Whitehorse, Yukon Y1A 2C6
Facsimile: (867) 939-6274
or such other address or facsimile number or electronic address or addressed to such other person as the Yukon Government 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 YUKON GOVERNMENT
The Honourable Brad Cathers
Minister of Community Services
- "Annual Report"
- means the duly completed annual report to be prepared and delivered by the Yukon Government to Canada, as described in Schedule D (Reporting).
- "Asset Management"
- supports integrated, lifecycle approaches to effective stewardship of infrastructure assets in order to maximize benefits and manage risk, as described in Schedule F (Asset Management).
- "Association of Yukon Communities" or "AYC"
- means the organization incorporated on May 28, 1975, the membership of which includes all eight incorporated municipalities as well as all Local Advisory Councils in Yukon.
- "Capacity Building Projects"
- means investments related to strengthening the ability of Municipal Governments, Yukon First Nations, and the Yukon Government on behalf of Unincorporated Communities to develop long-term planning practices, in accordance with Schedule B (Eligible Project Categories) and Schedule C (Eligible and Ineligible Expenditures).
- "Community Infrastructure"
- means publicly or privately owned community, municipal or regional, tangible capital assets primarily for public use or benefit in Yukon.
- "Comprehensive Municipal Grants"
- means a grant paid to a Municipal Government each year and in the aggregate amount set out in the Yukon Government's Municipal Finance and Community Grants Act, R.S.Y. 2002 c. 155.
- 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.
- "Council of Yukon First Nations" or "CYFN"
- means the non-profit society in existence since 1973 that works for ten of the Yukon First Nations serving the needs of First Nations within Yukon and the MacKenzie delta, with a mandate to be a unified organization supporting First Nations Governments and First Nations aspirations, and advocating on key issues.
- "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).
- "Executive Council"
- means the Executive Council appointed under the authority of section 4 of the Yukon Act, S.C. 2002, c.7.
- "First Agreement"
- means the agreement for the transfer of federal gas tax revenues entered into on May 26, 2005 by the Government of Canada and the Government of Yukon, with an expiry date of May 26, 2015, as amended on April 6, 2009.
- "Gas Tax Fund" or "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.
- "GTF Trust Account"
- means the separate and distinct accounting records the Yukon Government maintains for the receipt and disbursement of Funds, as defined under the First Agreement, which will continue to be utilized for the delivery of this Administration Agreement.
- "Ineligible Expenditures"
- means those expenditures described as ineligible in Schedule C (Eligible and Ineligible Expenditures).
- "Integrated Community Sustainability Plan" or "ICSP"
- means a long term plan, developed in consultation with community members, which provides direction for the community to realize its sustainability objectives for the environmental, cultural, social, and economic dimensions of its identity.
- "Management Board"
- means the management board established by Yukon's Financial Administration Act, R.S.Y. 2002 c.87.
- "Municipal Government" or "Municipal Governments"
- means a municipality or municipalities incorporated under the Yukon Government's Municipal Act R.S.Y. 2002 c.154.
- "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).
- "Third Party"
- means any person or legal entity, other than Canada, the Yukon Government or an Ultimate Recipient, who participates in the implementation of an Eligible Project by means of a Contract.
- "Ultimate Recipient"
- a Municipal Government or its agent (including its wholly owned corporation);
- a Yukon First Nation or its agent (including its wholly owned corporation);
- a non-municipal or non-Yukon First Nation entity on the condition that the Municipal Government or Yukon First Nation has indicated support for the Eligible Project through a formal resolution of its council. A non-municipal or non-Yukon First Nation entity includes:
- for profit organizations;
- not-for-profit organizations; and,
- non-governmental organizations;
- Yukon Government entities in the form of departments, corporations and agencies where they provide core municipal services in municipalities or in Unincorporated Communities. For greater clarity, providing core municipal services includes the provision of Community Infrastructure and Capacity Building Projects.
- "Umbrella Final Agreement"
- means the Umbrella Final Agreement signed on May 29, 1993 by representatives of the Council for Yukon Indians, Her Majesty the Queen in right of Canada and the Government of the Yukon Territory.
- "Unincorporated Communities"
- means communities, either individually or collectively, within Yukon that are not governed by a Municipal Government or a Yukon First Nation and receive municipal-type services from the Yukon Government.
- "Unspent Funds"
- means the amount reported as unspent by the Yukon Government and by Eligible Recipients (as defined under the First Agreement) in the 2013-14 Annual Expenditure Report (as defined under the First Agreement) as well as any funds received by the Yukon Government from Canada under the First Agreement in 2014-15.
- "Yukon First Nations"
- means the collection of self-governing First Nations or Indian Act Bands in Yukon. For greater clarity, the individual Yukon First Nations are:
- Carcross Tagish First Nation;
- Champagne and Aishihik First Nations;
- Tr'ondek Hwechin;
- Kluane First Nation;
- Kwanlin Dun First Nation;
- Liard First Nation;
- Little Salmon / Carmacks First Nation;
- First Nation of Na-Cho Nyak Dun;
- Ross River Dena Council;
- Selkirk First Nation;
- Ta'an Kwach'an Council;
- Teslin Tlingit Council;
- Vuntut Gwich'in First Nation; and,
- White River First Nation.
TERMS AND CONDITIONS
1. ALLOCATION FORMULA
1.1 Any GTF funding that may be received by the Yukon Government from Canada, as well as any interest earned thereon, will be allocated in accordance with the following:
- Any GTF funding that may be received from Canada, as well as any interest earned thereon, will be allocated across three core Ultimate Recipient categories as follows:
- sixty eight percent (68%) for Municipal Governments;
- twenty five percent (25%) for Yukon First Nations; and,
- seven percent (7%) for Unincorporated Communities.
- Before applying the percentage breakdown in Section 1.1 a) to any GTF funding that may be received from Canada, the Yukon Government may deduct administration expenses as approved by Canada in accordance with Section 5 (Administration Expenses). Any administrative expenses approved by Canada that exceed two percent (2%) of any GTF funding that may be received from Canada may be drawn from the Unincorporated Communities allocation or be funded by the Yukon Government from other sources.
- The Association of Yukon Communities (AYC), through the unanimous consent of its Municipal government representatives, will determine how the sixty eight percent (68%) for Municipal Governments funding will be sub-allocated to individual Municipal Governments. The AYC will inform the Yukon Government of the sub-allocation formula in writing. Any amendment to the agreed upon sub-allocation would only apply to any GTF funding that may be received from Canada after the amendment.
- As per the First Agreement, the twenty five percent (25%) for Yukon First Nations funding will be sub-allocated to individual Yukon First Nations according to a formula based on Chapter 19, Schedule A of the Umbrella Final Agreement. The formula may be amended through a Memorandum of Understanding signed by all Yukon First Nations Chiefs, a copy of which is to be provided to the Yukon Government. Any amendment to the agreed upon sub-allocation formula would only apply to any GTF funding that may be received from Canada after the amendment.
- The Yukon Government will determine the distribution of the seven percent (7%) for Unincorporated Communities funding on a needs-based, priority basis, while ensuring an equitable distribution over the life of this Administrative Agreement.
1.2 The Yukon Government agrees to provide to Canada tables detailing the specific sub-allocations described in Sections 1.1 c) and 1.1 d) and promptly provide to Canada updates to the tables upon any revision to the sub-allocations.
1.3 Any Unspent Funds, as well as any interest earned thereon, will be allocated as follows:
- Any Unspent Funds held by the Yukon Government in the GTF Trust Account on behalf of individual Ultimate Recipients, which were formally referred to as Eligible Recipients under the First Agreement, will be allocated under this Administrative Agreement to each of those Ultimate Recipients in the amounts accrued under the First Agreement.
- The portion of Unspent Funds allocated to specific projects through existing funding agreements entered into by the Yukon Government and Eligible Recipients, as defined under the First Agreement, will remain allocated to those projects. For greater certainty, such Unspent Funds include those held by:
- the Yukon Government and that have yet to be transferred to Eligible Recipients under the terms and conditions of existing funding agreements, including amounts being withheld by the Yukon Government pending an Eligible Recipient's compliance with the terms and conditions of an existing funding agreement; and,
- Eligible Recipients and that have yet to be expended as per the terms and conditions of the existing funding agreements.
1.4 The portions of Unspent Funds, as well as any interest earned thereon, which remain after the conclusion of the projects or funding agreements described in Section 1.3 b) will continue to be allocated to the associated Ultimate Recipients and be accounted for in the GTF Trust Account accordingly and will be used towards Eligible Projects as per the terms of this Administrative Agreement.
2. DELIVERY MECHANISM
2.1 The Yukon Government will distribute any GTF funds that have been allocated according to Section 1 (Allocation Formula) of Annex B (Terms and Conditions) through contribution agreements with Ultimate Recipients that are in accordance with the terms and conditions of this Administrative Agreement.
2.2 When acting as an Ultimate Recipient on behalf of Unincorporated Communities, the Yukon Government agrees to be bound by Schedule A (Ultimate Recipient Requirements) of this Administrative Agreement without the necessity of an additional contribution agreement.
2.3 Municipal Governments, Yukon First Nations and the Yukon Government on behalf of Unincorporated Communities, collectively referred to as Local Governments, will choose and prioritize their own projects. All eligible project categories are available to Local Governments under this Administrative Agreement.
2.4 Prior to the Yukon Government entering into a contribution agreement with an Ultimate Recipient for the transfer of GTF funds, projects will be reviewed by a Review Committee. The Review Committee will only ensure proposals are eligible under the Administrative Agreement.
2.5 The Review Committee will consist of:
- two (2) Yukon Government members, one of whom will be designated as the Chairperson;
- two (2) Association of Yukon Community-designated representatives; and,
- two (2) Council of Yukon First Nations-designated representatives.
3. USE AND RECORDING OF FUNDS
3.1 The Yukon Government 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 The Yukon Government 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, the Yukon Government will record into a separate and 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 the Yukon Government, will be treated as federal funds with respect to other federal infrastructure programs.
Any GTF funding that the Yukon Government may receive from Canada is not intended to replace or displace existing sources of funding for tangible capital expenditures within Yukon. Accordingly, average annual tangible capital expenditures will not be less than a base amount defined as ten percent (10%) of a Municipal Government's Comprehensive Municipal Grant, on average, from 2001 to 2006, and ten percent (10%) of the annual capital expenditures for Unincorporated Communities from 2001 to 2006.
5. ADMINISTRATION EXPENSES
Upon the review and acceptance by Canada of a detailed business case, which must be submitted by April 1, 2015, the Yukon Government 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, as well as preparation of reporting to Canada, including audit costs.
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 Municipal Governments, First Nations and the Yukon Government on behalf of Unincorporated Communities 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.
The Yukon Government will provide to Canada an Annual Report on expenditures as well as project-level information. Furthermore, the Yukon Government 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 the Yukon Government, as set out on Schedule F (Asset Management), and the Yukon Government will report to Canada on progress made on asset management, as set out in Schedule D (Reporting).
SCHEDULE A – Ultimate Recipient Requirements
Ultimate Recipients, including the Yukon Government when acting as Ultimate Recipient on behalf of Unincorporated Communities, will be required to agree:
- to respect the terms of any agreement entered into with the Yukon Government with respect to the transfer of any GTF funds.
- that the Yukon Government may withhold funds if the Ultimate Recipient is not in compliance with agreed upon requirements, including those outlined here in Schedule A (Ultimate Recipient Requirements).
- 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).
- to comply with all Ultimate Recipient requirements outlined in Schedule E (Communications Protocol).
- to develop and/or implement Asset Management in accordance with Schedule F (Asset Management).
- to invest, in a distinct account, GTF funding it receives from the Yukon Government in advance of it paying Eligible Expenditures.
- with respect to Contracts, to 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.
- to 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.
- to 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.
- to 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.
- that their actions will 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.
- that they will not represent themselves, including in any agreement with a Third Party, as a partner, employee or agent of Canada.
- 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.
- 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.
- 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 Community 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.
- 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 (e.g. Junior A)).
- Recreational Infrastructure — recreational facilities or networks.
- Cultural Infrastructure — infrastructure that supports arts, humanities, and heritage.
- Tourism Infrastructure — infrastructure that attract travelers for recreation, leisure, business or other purposes.
- Disaster mitigation — infrastructure that reduces or eliminates long-term impacts and risks associated with natural disasters.
- 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 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 the capacity building category only, the expenditures related to strengthening the ability of Municipal Governments, Yukon First Nations and the Yukon Government on behalf of Unincorporated Communities 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 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 i) the Yukon Government, or ii) Canada when the Yukon Government is acting as an Ultimate Recipient.
1.3 Administration expenses of the Yukon Government 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, 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 1st to March 31st.
1. Annual Report
By September 30th of each year, the Yukon Government 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|
|The Yukon Government in aggregate|
|Received from Canada||$xxx||$xxx|
|Transferred to Ultimate Recipients||($xxx)||($xxx)|
|Closing Balance of unspent funds||$xxx||empty|
|Ultimate Recipients in aggregate|
|Received from the Yukon Government||$xxx||$xxx|
|Spent on Eligible Projects||($xxx)||($xxx)|
|Closing Balance of unspent funds||$xxx||empty|
 For the 2014-2015 Annual Report this means the amount reported as unspent by the Yukon Government in the 2013-2014 Annual Expenditure Report (as defined under the First Agreement).
 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:
Details of the audit approach will be discussed by the Oversight Committee. The Yukon Government will provide an independent audit opinion, or an attestation based on an independent audit and signed by a senior official designated in writing by the Yukon Government, 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:
The Yukon Government will maintain, and provide to Canada a project list submitted in accordance with the following template.
|Project ID||Ultimate Recipient||Project
(Yes / No)
|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, the Yukon Government 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 Yukon 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 community and regional-level 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.
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 the Yukon Government agree to work to ensure clarity and consistency in the communications activities meant for the public.
2 Joint communications approach
2.1. Canada and the Yukon Government 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 the Yukon Government 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 the Yukon Government 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 the Yukon Government 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 The Yukon Government 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 the Yukon Government 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 the Yukon Government 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 the Yukon Government 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, the Yukon Government and Ultimate Recipients may each have a sign recognizing their contribution to Eligible Projects.
4.2 At Canada's request, the Yukon Government 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 the Yukon Government 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 The Yukon Government or the Ultimate Recipient is responsible for the production and installation of Eligible Project signage, or as otherwise agreed upon.
4.5 The Yukon Government 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 the Yukon Government 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, the Yukon Government 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, the Yukon Government 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 upon date and location. Canada, the Yukon Government and the Ultimate Recipient will have the opportunity to participate in such events through a designated representative. Each party and the Ultimate Recipient will designate their own 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, the Yukon Government 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 the Yukon Government 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, the Yukon Government 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 The Yukon Government 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, the Yukon Government or the Ultimate Recipient will share information promptly with the other parties to this Administrative Agreement if significant emerging media or stakeholder issues relating to an Eligible Project arise. Canada and the Yukon Government will advise Ultimate Recipients, when appropriate, about media inquiries received concerning an Eligible Project.
8 Communicating success stories
The Yukon Government 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, the Yukon Government 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
Municipal Governments and Yukon First Nations will undertake Asset Management and will report to the Yukon Government by December 31, 2017, and periodically thereafter on progress made towards mutually agreed upon objectives. The Yukon Government will summarize this progress in its Outcomes Reports due to Canada, as per Schedule D (Reporting).
The Yukon Government, in its capacity as Ultimate Recipient on behalf of Unincorporated Communities, will undertake Asset Management for these communities either individually or collectively, as the Yukon Government deems appropriate. The Yukon Government will report on progress made with respect to Asset Management for Unincorporated Communities in the Outcomes Reports due to Canada, as per Schedule D (Reporting).
Asset Management supports integrated, lifecycle approaches to effective stewardship of infrastructure assets in order to maximize benefits and manage risk. The approach within Yukon will build upon the Integrated Community Sustainability Plans already developed under the First Agreement and will, in a phased implementation process, address areas including:
- infrastructure and asset inventories;
- lifecycle and condition assessments;
- capital investment planning; and,
- cost of replacement analysis.
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