CANADA - BC - UBCMCANADA - BC - UBCMAGREEMENT IN PRINCIPLEAGREEMENT IN PRINCIPLETransfer of Federal Gas Tax RevenuesTransfer of Federal Gas Tax RevenuesNew Deal for Cities and CommunitiesNew Deal for Cities and Communities

Agreement in PrincipleAgreement in Principle

To be signed todayTo be signed today Tripartite: Canada, BC and UBCMTripartite: Canada, BC and UBCM Largest ever Agreement in Largest ever Agreement in

Principle (AIP) to involve local Principle (AIP) to involve local governmentgovernment

First gas tax agreement in CanadaFirst gas tax agreement in Canada

AIP is not a Final AgreementAIP is not a Final Agreement

Needed time for federal Needed time for federal government to get government to get Cabinet/Treasury Board approvalsCabinet/Treasury Board approvals

New federal budget approvals to New federal budget approvals to flow fundsflow funds

OVERVIEW OF THE OVERVIEW OF THE AGREEMENT IN PRINCIPLEAGREEMENT IN PRINCIPLE

Contents of the AIPContents of the AIP

13 Parts plus Preamble and 13 Parts plus Preamble and PrinciplesPrinciples

5 Appendices5 Appendices

Parts of the AIPParts of the AIP

PreamblePreamble PrinciplesPrinciples

1.1. InterpretationInterpretation

2.2. PurposePurpose

3.3. Areas of Further CollaborationAreas of Further Collaboration

4.4. Gas Tax Purposes/OutcomesGas Tax Purposes/Outcomes

5.5. Commitments of PartiesCommitments of Parties

6.6. Contribution ProvisionContribution Provision

Parts of the AIP continuedParts of the AIP continued

7. 7. Allocation to Local Governments, Allocation to Local Governments, Delivery Mechanism and Use of FundsDelivery Mechanism and Use of Funds

8. Governance8. Governance

9. Reporting, Audits and Evaluation9. Reporting, Audits and Evaluation

10. Dispute Avoidance and Resolution10. Dispute Avoidance and Resolution

11. Communications11. Communications

12. Amendments to the Agreement12. Amendments to the Agreement

13. Review and Renewal13. Review and Renewal

Appendices of the AIPAppendices of the AIP

Schedule A:Schedule A: Eligible Investment Eligible Investment Categories and Subcategories by Categories and Subcategories by Community TierCommunity Tier

Schedule B:Schedule B: Eligible Costs Eligible Costs Schedule C:Schedule C: BC Allocation Formula, BC Allocation Formula,

Delivery Mechanism and Accountability Delivery Mechanism and Accountability FrameworkFramework

Schedule D:Schedule D: Reporting and Audits Reporting and Audits Schedule E:Schedule E: Communications Protocol Communications Protocol

PartiesParties

Canada, British Columbia, UBCMCanada, British Columbia, UBCM UBCM is a party and a major part UBCM is a party and a major part

of this agreementof this agreement This is a firstThis is a first

Funds and Flow of FundsFunds and Flow of Funds

Two complementary Component Programs and a Special Two complementary Component Programs and a Special Priorities Fund:Priorities Fund:

Community Works FundCommunity Works Fund allocated based on % of per capita shareallocated based on % of per capita share Disbursed directly to LGs for their prioritiesDisbursed directly to LGs for their priorities Funding floor starts at $25,000Funding floor starts at $25,000

Strategic Priorities FundStrategic Priorities Fund Pooled fund from per capita calculationPooled fund from per capita calculation

Tier 1 - 25% pooledTier 1 - 25% pooled Tier 2 - 50% pooledTier 2 - 50% pooled Tier 3 (GVRD) - up to 100% pooledTier 3 (GVRD) - up to 100% pooled

Confirms the Annual BC Allocations Confirms the Annual BC Allocations

Fiscal year Canada’s Contribution

2005-2006 $76.3 million

2006-2007 $76.3 million

2007-2008 $101.7 million

2008-2009 $127.1 million

2009-2010 $254.2 million

TOTAL $635.6 million

Funds will flow to UBCM from Federal GovernmentFunds will flow to UBCM from Federal Government

Not to BC first and then to local Not to BC first and then to local governmentgovernment

This is a major changeThis is a major change $635.6 million could flow to UBCM $635.6 million could flow to UBCM

over the next five yearsover the next five years

Delivery MechanismsDelivery Mechanisms

New Deal FundingEntitlement/Strategic Priority

$ / $$$GVRD

$$ / $$East CoastVancouver

IslandOkanagan

$$$ / $All Other

Areas

Per Capita Allocation to i.e. Local / Regional funds

GovernanceGovernance

PartiesParties Partnership CommitteePartnership Committee Management Committee (UBCM Management Committee (UBCM

Chairs)Chairs)

Eligible InvestmentsEligible Investments

Tier 1 -Tier 1 - All areas of BC except those in Tier 2 and Tier All areas of BC except those in Tier 2 and Tier 3:3:

Public Transit, Community Energy Systems, Public Transit, Community Energy Systems, Water and Wastewater, Solid Waste Management, Water and Wastewater, Solid Waste Management, Capacity BuildingCapacity Building

Tier 2 -Tier 2 - RDOS, CORD, NORD, Capital RD, CVRD, RDOS, CORD, NORD, Capital RD, CVRD, RDN, FVRD, SLRD:RDN, FVRD, SLRD:

Same as above list with more limited Same as above list with more limited subcategoriessubcategories

Tier 3 - GVRDTier 3 - GVRD Public Transit, Water and Waste Water SystemsPublic Transit, Water and Waste Water Systems

Eligible CostsEligible Costs

Capital cost of acquiring, constructing or renovating Capital cost of acquiring, constructing or renovating a capital asseta capital asset

Fees paid to professionals, contractors, etc.Fees paid to professionals, contractors, etc. Costs related to:Costs related to:

environmental assessments, monitoring and environmental assessments, monitoring and follow-up programs required by legislationfollow-up programs required by legislation

public announcementspublic announcements development of integrated sustainability plansdevelopment of integrated sustainability plans LG employees or equipment under conditionsLG employees or equipment under conditions

Capacity building activities related to sustainability Capacity building activities related to sustainability planningplanning

Other Important Features of AIPOther Important Features of AIP

““Most favoured province” clause:Most favoured province” clause:

Where Canada concludes a New Deal Where Canada concludes a New Deal agreement elsewhere and taken as a whole it agreement elsewhere and taken as a whole it is materially different from our Agreement, is materially different from our Agreement, BC can require to Canada to amend this BC can require to Canada to amend this agreement to provide similar treatment to agreement to provide similar treatment to BCBC

Questions and AnswersQuestions and Answers