ADMINISTRATIVE REPORT


                                           Date: October 10, 1995
                                           Dept. File No. 1.40.95.09


   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services

   SUBJECT:  Waterworks Capital Funding

   RECOMMENDATION

        THAT $1.5 million budgeted in 1995 for watermain replacement in the
        650   Zone   (Account  17/35/1800/999)   be   reallocated  to   the
        Distribution Main Replacement program (Account 17/35/1000/999)  for
        use in other high priority areas of the City.

   COUNCIL POLICY

   Reallocation of capital funding in excess of $50,000 must be approved by
   Council.

   PURPOSE

   This  report  describes  an  update  to the  City s  water  transmission
   planning  and   recommends  reallocation   of  affected  funds   to  the
   Distribution Main Replacement program.

   BACKGROUND AND DISCUSSION

   The City has been upgrading the Waterworks transmission and distribution
   system in the 650 Pressure Zone since 1993. Approximately 32,000 feet of
   distribution  main  and  4,800  feet  of  transmission  main  have  been
   completed  to  date.   This  represents  about  two-thirds  of the  work
   originally  proposed  for this  area in  the  1993 to  1996 construction
   programs.

   Council  approved $2.6  million,  including $500,000  of potential  GVWD
   funding,  in the  1995 capital  budget for  650 Pressure  Zone watermain
   upgrading.  Approximately $1.5  million of this budget was  proposed for
   the construction of the north  half of a 24-inch transmission main  that
   would link GVWD mains on 45th Avenue and 29th Avenue.  The  remainder of
   the funding was for continued replacement of local distribution mains.

   Since the budget was approved, the City has had further discussions with
   the GVWD regarding cost-sharing for the City s transmission main project
   and co-ordinating mutually beneficial  projects.  These discussions have
   resulted in commitments from  the GVWD to  feed this area entirely  from
   45th Avenue rather than from 45th Avenue and 29th Avenue,  which in turn
   has  permitted  us  to   build  only  the  south  half  of  our  24-inch
   transmission  project. This change in  scope benefits both  the City and
   the GVWD, and has superseded GVWD funding for this project.

   The  City Engineer recommends that the $1.5 million proposed for the 650
   Zone  transmission main  construction be  reallocated to  the Waterworks
   Distribution Main Replacement program.  The City has a goal of replacing
   approximately 1% of the City s water distribution  mains in a given year
   to spread  out ageing infrastructure replacement costs.  During the 1994
   to 1996 Capital Plan, we are replacing approximately 0.7% of the  City s
   watermains annually.

   If the available 650  Zone transmission funding is transferred  into the
   Distribution  Main Replacement program,  it will help  boost this annual

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   replacement rate.  Specifically, two large projects are planned for this
   fall and  winter  which  require funding  under  the  Distribution  Main
   Replacement  program.    The first  is  8  blocks  of  watermain at  the
   intersection  of Nanaimo St. and McGill  St. that must be replaced prior
   to planned street improvements at this intersection.  The second is  the
   replacement of a 16-inch steel watermain on Hastings St. from Cambie St.
   to Main St., which is the same  age and similar condition as the main on
   E. 12th Avenue that was replaced as  an emergency in the summer of 1994.
   As both these projects are higher priorities than additional work in the
   650 Zone, it  is recommended that  the funds be  reallocated to  account
   17/35/1000/999 for Distribution Main Replacement.

   One million  dollars have been included in the Capital Plan for 650 Zone
   distribution main replacement  work in 1996.   A  review of this  works 
   priority, compared  to other distribution main replacement work, will be
   undertaken as part of the 1996 Capital Budget submission.



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