Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO: Standing Committee on City Services and Budgets

FROM: General Manager of Engineering Services

SUBJECT: 2000 Engineering Basic Capital Budget

RECOMMENDATION

POLICY

STREETS

On May 27, 1997, the Vancouver Transportation Plan was approved by Council. There are many policies in the Transportation Plan which have Capital Budget implications. As outlined in Action Item “F2" of the Transportation Plan, the priority for pedestrians, bikes and transit require funding to support these modes. Re-allocations to support these priorities were made to the 2000-2002 Capital Plan reflected in the annual budgets. After maintenance requirements, priority projects will include pedestrian traffic signals, new sidewalks, Greenways, bike network, wheel chair ramps and bus stops and shelters.

Policies (continued)

Bicycles / Greenways
The Vancouver Comprehensive Bicycle Plan (1988), the Clouds of Change Report (1990), the Citywide Bicycle Network (1992) and the recent Greenways Program, established the City's policy of promoting and encouraging cycling as a transportation alternative. On July 18, 1995, Council approved the Vancouver Greenways Plan. This plan supports environmental initiatives such as Clouds

It is Council policy to give sidewalks high priority, and to provide walks on:

The CityPlan direction for Transit, Walking and Biking as a priority calls for making better use of existing streets for buses and implementing HOV lanes and other measures to provide priority for transit users. In this category, measures are being developed with Translink to implement priority improvements.

Policies (continued)
STREET LIGHTING

The Safer City Task Force indicated the importance of making the public feel

SEWERS

In the early 1970's, Council approved the policy of separating sanitary and storm sewers, starting in the West End and Downtown areas, in order to begin reducing and eliminating combined sewer overflows.

CityPlan direction is to make environmental improvements a priority in decision-making with particular attention to air and water quality. One CityPlan step is to reduce combined sewage overflows to surrounding water bodies by continuing to separate storm runoff and sewage systems.

WATERWORKS

In September 1999 Council approved the 2000-2002 Waterworks Capital Plan, which was based on the Waterworks Long Range Plan (LRP). The LRP and Capital Plan focus on the issues of uniform replacement of aging infrastructures, replacement of water services and meters, system capacity and fire protection improvements, emergency preparedness, and other works such as new water service installations.

In April 1992, Council approved the construction of the Dedicated Fire Protection System, including saltwater pumping stations, a downtown distribution grid, and a pipeline extension to Kitsilano, subject to funding approval in subsequent Capital Plans.

SUMMARY & PURPOSE

This report provides Council with an overview of the 2000 Engineering Basic Capital Budget, including submissions for:

The General Manager of Engineering Services will report separately on the details of the 2000 Traffic Signal Program ($1,420,000) to the Standing Committee on Transportation and Traffic. Funding for the 2000 Traffic Signal Program is included in the 2000 Streets Capital Budget. The 2000 Basic Capital Budget, the first year of the 2000-2002 Capital Plan, allocates slightly less than one-third of the Capital Plan funds approved by Council in November 1999.

This report also includes Engineering Capital account closeouts, as detailed in Appendix 2.

SENIOR GOVERNMENT COST-SHARING

Additional sources of funding from the provincial and regional governments that is available, or could be available, to help fund capital projects is described below.

1) Local Government Grants

At its meeting of February 23, 1999, Council approved our recommendations to apply to the Province’s 1999 Local Government Grants Program for $28.7 million worth of projects, primarily for sewer and water infrastructure. Subsequently, the City was awarded a grant for Sewer System Reconstruction and Upgrading in the amount of $3,499,250. This award funds 25% of the project costs provided the City match the remaining funds. The Province has pledged to accept claims for the funds over three years commencingApril 1, 2000 through March 31, 2003. For 2000, $1,049,775 in funding is available from the Province, $1,749,625 in 2001 and $699,850 in 2002.

The Local Government Grant Program has been renewed for 2000 and 2001 with an additional $50 Million to be awarded each year. At its meeting of February 22, 2000, Council approved our recommendation to apply to the program for $26,925,000 worth of projects. In general, Local Government Grants would fund 25% of the projects that are approved. Although awards for this program are expected to be made in 2000, payments would not begin until April 1, 2001. Because of this timing, any funding received would not impact the City’s 2000 Capital Budget.

2) TransLink (GVTA) Cost Sharing for Major Road Network

As of April 1, 1999, the City became a member municipality of TransLink, the new regional transportation agency. As a member, the City receives funding for the Maintenance, Rehabilitation and Capital work on the Major Road Network (MRN) in Vancouver. For the first year of the MRN program, Translink opted to fund 70% of the total MRN funding, 80% in 2000, 90% in 2001 and 100% in 2002. However, due to budgeting challenges, Translink have revised the plan to fund year 2000 and 2001 at 70% total funding, stepping up to 100% in 2002.

The City of Vancouver currently has a total of 549 lane km on the MRN. Annual funding in the amount of $12,000 per lane km is provided to each member municipality, assuming that their MRN streets meet Translink’s minimum Pavement Quality Index of 5.5. Currently, 39 km of the City’s MRN has a PQI less than 5.5 and will only receive $7,000 per lane km of funding until brought to minimum standard.

The MRN funding is distributed in the following areas:

Maintenance

This helps ensure MRN streets are maintained in good condition. Besides street pavements, it will also include related items such as lighting, signals, signs, roadmarkings, etc. All of the “Maintenance” category work would be carried out under the City’s Operating Budget. For 2000, the City will be receiving approximately $1,920,000 for Maintenance of MRN roads.

Rehabilitation

This category covers reconstructing or replacing existing facilities (both pavements and other related items). Rehabilitation is required to keep the City’s MRN roads up to the average standard of the region. Primarily, Rehabilitation funding will be for what the City designates as Capital Budget infrastructure renewal work, but it also will include some City Operating Budget programs such as pavement overlays.

TOTAL CAPITAL OPERATING

Capital

Under TransLink’s definition, this category only includes new works, not replacement. For this year, TransLink funding has been approved for general road projects totaling $3,900,000. These include the Stanley Park entrance ($2,380,000), S.W. Marine and Cambie ($580,000) and Georgia East of Gilford ($500,000) and new pedestrian and vehicle signals ($490,000). TransLink will fund 50% of the cost of these projects.

Summary of TransLink Funding

For 2000, it is estimated that approximately $6.5 million in TransLink funding will be received in the following City budget categories:

During preparation of the City’s 1999 Operating Budgets, adjustments were made to reflect the MRNfunding from Translink and are carried forward into 2000. As well, the 2000-2002 Capital Plan was reduced to reflect anticipated funding from Translink.

3) ICBC Safety Programs

Since the early 1990's the Insurance Corporation of British Columbia (ICBC) and the City have participated in reviews of traffic safety along several corridors within the city. As a result of these reviews, ICBC has contributed funding towards specific Council approved projects having a road safety benefit. Several projects have been identified and will be completed during the 2000 construction season. These projects include signal improvements, stop signs, traffic calming and construction of left turn bays already approved by Council. Funding of these projects will complement existing City funding and is expected to total $450,000.

2000 BASIC CAPITAL BUDGET PROJECT DETAILS

The 2000 Engineering Basic Capital Budget consists of six programs: Streets, Communications, Street Lighting, Sewers, Waterworks and Yards. These are summarized in this report, and described in detail in Appendix 1. Funding for the 2000 Traffic Signal Program ($1,420,000) is included in the 2000 Streets Capital Budget. Council has approved Visioning programs, currently underway in two neighbourhoods, Dunbar and Kensington-Cedar Cottage. To the extent that these programs result in a need for capital work such as signals, local improvements, or lighting, there could be demands placed upon these Capital Budgets, which would be reported to Council separately.

A. STREETS 2000 Budget $ 16,970,000

The 2000 Streets Capital Budget comprises a number of programs which address Council's Capital, CityPlan and Transportation Plan priorities. A brief description of the Streets programs follows:

Infrastructure $3,680,000

This program addresses the need for reconstruction of MRN and Non MRN arterial streets and local streets which have deteriorated to the point where normal maintenance is not effective. As mentioned earlier, Translink’s funding of the MRN only occurs if the street has a Pavement Quality Index greater than 5.5. To date, approximately 39 km of the network does not meet the minimum standard of 5.5. A commitment was made to Translink to improve those streets to a PQI greater than 5.5 by 2002. Therefore, much of the City funding in this category must be applied to MRN projects so that they qualify for future funding. This results in limited funds being allocated to Non MRN arterial streets and local streets. Also, included in this category is the major maintenance of City bridges, including concrete repairs and joint replacement.

Pedestrians, Bicycles & Greenways $3,370,000

This program provides for pedestrian and cycling priorities. The construction of new sidewalks and curbramps, and sidewalk reconstruction are addressed. Both of these areas include cost-sharing with property owners, and some projects may be fully City funded. In the New Sidewalk construction program, the majority of the arterials are now complete and construction is concentrating on pedestrian collector routes in residential areas. Pedestrian curb bulges that enhance safety at school crosswalks are also included.

Significant progress has been made in creating the City's Bicycle Network, with the 120 km mark being passed in 1998. Proposed cycling improvements in 2000 include the accommodation of bicycles on Pender Street, Pacific Boulevard and Dunbar Street, as well as bike logos painted on the road and streets name signs. Work will continue on the Ridgeway Greenway, Ontario Street Greenway and the Trans-Canada Trail. Further development of the citywide Greenway networks will continue. Work will also continue on several Neighbourhood Greenway projects, with funding remaining from previous years. In addition to the funding provided herein, the Grandview Cut Greenway is being provided in conjunction with the Broadway-Lougheed rapid transit.

Design development of the following routes is anticipated:

Kent Avenue Corridor Bikeway;
Knight Street Corridor Bikeway;
Central Valley Greenway, along the new skytrain line;
and eastward extension of Off-Broadway Bikeway to connect to Central Valley Greenway.

Traffic Signals $1,910,000

This section includes funding of $1,420,000 for the proposed 2000 Traffic Signal Program which will install new traffic signals ($870,000) and modify existing traffic signals ($550,000). Details of this program will be reported separately to the Transportation and Traffic Committee. This section also contains funding for a program to renovate and replace traffic signal infrastructure ($490,000).

Transit & Safety Improvements $3,000,000

This program provides funding to address various transportation priorities to enhance transit and improve safety. The major project in this category will be the work in and around the Stanley Park Entrance and Causeway. It should be noted that $1,550,000 has been approved in advance of this budget in order to match Translink funding on the Causeway project. Also for 2000, projects in this program will include a number of discrete transit related geometric improvements for TransLink, as well as Visioning initiatives on the arterial streets system that may arise during the course of the year. This program also includes arterial local improvements, bus shelters and bus slabs and landings.

Local Area Traffic Plans and Other Improvements $ 5,010,000

This program addresses the installation of neighbourhood traffic controls and construction of streets and lanes by Local Improvement petitions or initiatives. Neighbourhood Transportation Plans and local street traffic calming measures are integral components of the Transportation Plan. There has been an increasingdemand for these measures on local streets over the past few years. These projects include public consultation and the installation of traffic circles, bulges, diverters, and other traffic calming measures.

Unallocated Funding from 1991-1993 Capital Plan

Engineering has $1,038,500 in unallocated funding from the 1991-1993 Capital Plan originally planned for work on the Grandview Cut Bridges. These funds have been allocated to the 2000 Streets Capital Budget.

B. COMMUNICATIONS 2000 Budget $ 300,000

The City's communications system is made up of Fire, Police and Engineering radio dispatch systems as well as a communications cable network. An effective communication system is essential to the efficient operation of these departments. This system is essential to all aspects of emergency response and, therefore, it must have an eminent degree of survivability. The 2000 Capital Budget contains funding for the continuation of the Underground Cable Plant replacement and expansion programs.

C. STREET LIGHTING 2000 Budget $1,412,000

Similar to a majority of the City’s infrastructure, the street lighting plant continues to age with many components now past their estimated service life. The 2000 Street Lighting Capital Budget is an ongoing infrastructure replacement program for street lighting plant. Some examples are street lighting poles, service panels and conduit replacement. We are also reducing street lighting outages by rebuilding electrical connections on trolley routes and replacing badly corroded service panels.

In 2000, funding includes helping to address local public safety concerns regarding street, lane and bus stop lighting brought forward through community interaction.

Funding is also provided for street lighting relocations in coordination with other utility companies’ replacement programs. The City's share of new lighting projects approved through the Local Improvement process is also funded from the 2000 Capital Budget.

D. SEWERS 2000 Budget $17,015,000

The Sewers program includes the following:

System Replacement $16,280,000

The 2000 Sewers Capital Budget is a continuation of an ongoing infrastructure program that began in the early 1970's. This program consists of the renewal of sewer mains, connections, manholes, street drains and pump stations. Factors considered in selecting the projects in this category are: replacements for physical failure, deterioration from age, inadequate capacity and related flooding problems, and environmentalbenefits. The City has adopted a strategy of continuous sewer replacement to replace 1% of the existing sewer system over a 100-year life instead of periodic large reconstruction programs. The benefits of this strategy include:

- it avoids crisis funding and spreads the cost of Capital replacement works to taxpayers more evenly over time,
- provides for continuous environmental improvements,
- maintains a stable, well-trained workforce,
- maintains an adequate level of service in sewers by providing for the ongoing, timely replacement of older sewers and thus reducing the risk of sewer collapse and sewage flooding of private residences and businesses,
- meets the City's combined sewer overflow (CSO) management goal of gradual reduction and eventual elimination over about 60 years.

The City's ongoing commitment to the sewer separation program has been one of the key factors in the Province's support for our approach to dealing with CSO's. It may also have been a significant consideration in the Province's earlier decision to stay charges against the GVRD for ongoing CSO's at the Clark Drive outfall.

System Management $ 300,000

The system management programs provide funds to support a variety of information and research projects. These projects provide key information that is used to prioritize our 1% replacement program and establish routine maintenance programs. This program also provides funds for a variety of tools that support cost-effective capital work programs, including sewer system modeling, field monitoring of sewer flows, construction site exposures, soundings of underground facilities, and investigation of new products and technical standards for sewer design and construction.

Pollution Abatement $ 435,000

This program funds pollution abatement initiatives such as Sewer Separation on Private Property. This Sewer Separation Program was established by Council in 1978 in order to achieve the pollution control benefits of a separated sewer system. The major benefit of the program has been a reduction in the fecal coliform levels in waters that are adjacent to the City. It also allows us to completely eliminate combined sewer outfalls in the City. These benefits follow Provincial policy objectives and thus minimize Provincial requirements for more costly short-term improvements to reduce Vancouver’s sewage overflows.

Sewer Connection Fees for 2000

Fees for public sewer connections are reviewed annually and adjusted as necessary to reflect actual costs incurred in the previous year as well as anticipated inflationary increases in the next year. Accordingly, a fee increase of approximately 1.5% is recommended for 2000 (refer to submission D-1 and Appendix 3 for details).

E. YARDS 2000 Budget $3,000,000

Yards Closure and Replacement

In 1993, the City purchased lands on the former BN Rail yard for the purpose of relocating Cambie Yards and three satellite yards. Existing buildings at Cambie Yard are near the end of their useful life, new facilities are required, but cannot be replaced in their current locations. Pressures from adjacent residential developments to relocate are being felt at Cambie Yard and the satellite yards.

The 2000-2002 Capital Plan provides $15,928,000 of funding for this new facility and relocation of thefacilities from Cambie Works Yard and satellite yards. This submission is for $3,000,000 to begin the first phase of the project including the planning, design development, consultancies and site preparation. The majority of the construction and funding will occur in the second year of the Capital Plan.

F. WATERWORKS 2000 Budget $18,350,000

The 2000-2002 Capital Plan is based on the Waterworks Long Range Plan (LRP), updated with our more recent Storage and Transmission Optimization (STOR) work. Implementation of the Long Range Plan was initially planned to be eight years, but was extended to 12 years to reduce its financial impact. Subsequent coordination with the GVRD, through the STOR project, also resulted in the deferral of the storage (reservoir) project envisioned in the LRP. The 2000-2002 Capital Plan reflects this change and includes watermain projects which are required independent of whether or not the city ultimately builds its own emergency storage facilities.

The 2000 Waterworks Capital Budget is composed of the following:

Infrastructure Replacement $12,550,000

This program addresses the aging infrastructure of the City’s waterworks system. Aging pit cast iron and lined cast iron distribution mains and steel pipe transmission mains are identified and replaced. Waterworks annual work programs result in a replacement rate of about 1.0% per year, down from 1.5% in the previous plan, as necessitated by system aging. Water meters that read inaccurately, service pipes that have worn out due to corrosion, and fire hydrants are also replaced in this program.

Addressing Growth $900,000

This program involves the replacement or extension of transmission mains in various areas throughout the City to address pressure and fire flow problems, due to historic and continuing City and Regional growth. Funding is also included for cost-shared distribution system improvements to accommodate specific developments local water system improvements. Due to reduced development activity in the last two years, $1,400,000 in funding for the 2000 portion of these programs is available from the 1999 Capital Budget.

Emergency Planning $4,500,000

The majority of funding in this category is for the Dedicated Fire Protection System (DFPS). In April 1992, City Council approved an 8- year implementation schedule for the construction of the DFPS. This was extended to a 12-year schedule as a result of funding limitations, and the scope of the project was revised subsequent to a Value Engineering study in 1997. When completed, this system will consist of two pump stations, which can use either salt water or potable water, and a dedicated distribution grid of large diameter, high pressure, watermains. To date, the False Creek and Coal Harbour pump stations and the construction of 6.1 kilometers of pipeline between them is complete.

The 2000 DFPS program will include funding to design and construct the False Creek crossing.

Existing funding is also included in this category for the evaluation and development of other alternative water supplies such as groundwater sources, and access to Fraser River water for firefighting.

Other Works $100,000

The main ongoing components of this program include the installation and replacement of telemetry (monitoring) equipment, and engineering and site investigation in advance of capital projects. This year’s telemetry program has been deferred due to staff turnover, so the 2000 request is limited to investigation needs.

Water Quality Projects $300,000

This program constructs watermains and makes other system improvements in order to reduce or eliminate stagnant areas of the water distribution system, and their associated water quality problems.

FUNDING

The funding shown in Table 1 for Streets, Communications and Street Lighting is partially from Operating Budget revenues and partially from borrowing authority approved by voters in the November 20, 1999 plebiscite. Funding for the Yards is solely through borrowing authority approved by voters in the November 20, 1999 plebiscite. Funding for Sewers originates from Council approved borrowing authority, and Waterworks is a Council approved, self-funding utility with debt financing through water rates revenue.

There are several projects contained in the 2000 Engineering Capital Budget, such as bike routes, traffic signals, neighbourhood traffic plans, etc., that will require various forms of maintenance in the future. Increases that may be required to the Engineering Operating Budget for these maintenance items will be identified with the individual projects as they are reported to Council.

TABLE 1
(000'S Dollars)

Funding Funding Revenue Budget

Streets $ 44,780 $ 14,715 $ 2,255 $16,970
Communications $ 920 $ 0 $ 300 $ 300
Street. Lighting $ 4,227 $ 773 $ 639 $1,412
Sewers $ 51,045 $ 17,015 $ 0 $17,015
Waterworks

Yards

 $ 58,950

$ 15,928

 $ 18,350

$ 3,000

$ 0

$ 0

 $18,350

$3,000
Total Engineering $175,895 $ 53,853 $ 3,194 $57,047

CAPITAL CLOSEOUTS

Every year, Capital projects are reviewed to determine accounts that can be closed out. Closeouts of completed Capital projects involving transfers between Capital accounts of $50,000 and 15% of the budget, or more, require Council approval. Appendix 2 provides a summary of the 2000 Waterworks closeouts, including a calculation of their under and over expenditures, respectively. The transfers requiring Council approval are noted.

* * * * *

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APPENDIX 1

Limited Distribution - on file in the City Clerk's Office

APPENDIX 2.

Waterworks Closeouts - on file in the City Clerk's Office

APPENDIX 3


Sewer Connection Fee Increases for 2000*

                                                    Current Fee   /  Recommended Fee - 2000

Public Sewer Connection Fees for
One & Two Family Dwellings........... $ 4,400 $ 4,470

Public Sewer Connection Fees for
other than One & Two Family Dwellings:

Manhole installed in conjunction
with a Public Sewer Connection........ $ 3,460 $ 3,520

Connections greater than
15 inch/375mm Diameter................ $ 11,510 $ 11,690

New Fittings - Twin Sewer............. $ 2,130 $ 2,170
New Fittings - Single Sewer........... $ 930 $ 950

Inspection fee for Connection
to a Public Sewer..................... $ 130 $ 140

* 2000 fee represents a 1.5% increase rounded up to the nearest 10 dollars

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