Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

General Manager of Engineering Services

SUBJECT:

Provincial Local Government Grants and Applications -
Water, Sewer and Other Infrastructure

 

RECOMMENDATIONS

POLICY

Council has supported the renewal of an on-going cost-sharing program with the Province for water, sewer and road projects.

Council has a policy to replace the combined sewers in the City with separated sewers in order to eliminate combined sewer overflows.

PURPOSE

The purpose of this report is to update Council on the 1999 Provincial Local Government Grants Program which has awarded the City $3,499,250 for sewer works, to seek authority to proceed with the approved projects and to provide information on the status of 2000 infrastructure grant submissions.

BACKGROUND

Between 1989 and 1992, the City received funding averaging about $5 million per year from the Province for water, sewer and street infrastructure projects. In 1993, the City's awards were cut drastically, and the City received no grants in 1994. In 1995 new legislation was brought in under the Local Government Grants Act to cover sewer, water and street revenue sharing programs with municipalities. During 1995 to 1998, the Provincial Local Government Grants program was used to pay off commitments to existing projects. During this period both the Mayor, on behalf of City Council, and staff, wrote to the Province on several occasions urging them to return cost-sharing to historic levels for water, sewer and road projects.

In 1994, the Federal Government introduced the first Federal/Provincial/Municipal Infrastructure program and the City subsequently received $4 million from the Federal government and $4 million from the Provincial government for sewer system reconstruction and separation.

In December, 1998, at the same time they announced that they were eliminating the Provincial Equalization Grant Program, the Province announced that they would be initiating a new Local Government Grants Program for water, sewer and other infrastructure. The new program provides Province wide funding of $50 million annually for 3 years. On February 23, 1999 Council approved a recommendation asking the General Manager of Engineering Services to submit projects to the Province for grant funding consideration.

DISCUSSION

1999 Sewer Award of $3.5 Million

As a result of the 1999 submissions, the Province has awarded grants to the City of $3,499,250 for sewer system reconstruction and upgrading and $50,000 for phase 1 of the Wellness Greenway. Payments from the Province will be made in three equal annual installments beginning in April, 2000. An agreement will be required to establish specific terms and conditions. We are requesting that Council provide the authority for the Director of Legal Services, in consultation with the General Manager of Engineering Services, to enter into this agreement.

The grant for sewer system reconstruction indicates the continued support of the Province for the City's commitment to eliminate combined sewer overflows through our sewer separation program. The grant funds will be used to accelerate our combined sewer replacement efforts particularly in the Grandview Woodlands and China Creek areas tributary to the combined sewer overflow outfall at Clark Drive. Presently, our sewer construction program is carried out by three in-house crews. It is proposed that contractors be used for the grant construction program. This will allow us to maintain present staffing levels and to benchmark sewer construction methods and costs against our own crews. A similar benchmarking was done in 1996 with the Canada/Provincial/Municipal Infrastructure program grants for sewers which we received. In that case, the additional work was carried out by a combination of contractors and an additional City crew.

In order to assemble the plans, design the works, and put together and manage the contracts, some temporary staff and furniture and computers will be needed. It is anticipated that the work will take place in 2000 and 2001 and be spread over 2 or 3 separate contracts. This report recommends that the following temporary staff be approved: Civil Engineer II for 2 years, Civil Engineer I for 1 year, Engineering Assistant III for 1 year and a budget of $42,200 for temporary inspection staff. The cost of this staffing complement is $287,800. In addition, a budget of $48,000 is recommended for furniture, office renovations and computers, bringing the total to $335,800 (or 9.6% of the grant). Funding for these expenses would be provided from the grant monies as an overhead loading.

2000 Application for Local Government Grants - Phase II

In November of last year, the Ministry of Municipal Affairs sent a circular and application package to all municipalities in British Columbia. In that Circular, the Ministry announced that the Provincial Local Government Grants Program has been renewed for two additional years, with $50 million being awarded in 2000 and in 2001. For some unknown reason, the City of Vancouver did not receive the package. Fortunately, a call was placed to the Ministry on January 11 inquiring about the program, and staff were notified that the application deadline for phase II was January 14, 2000. Each department worked extremely hard to pull together an application which was delivered on time; however, we were unable to submit the package for Council approval in advance.

A brief description of projects being applied for through the Provincial Local Government Grants Program, along with their estimated costs is attached in Appendices 1 through 3. The total cost of all proposed projects is $26.93 million. In most cases the grant amount expected from an approved application would be 25% of the project's estimated cost.

Appendix 1 proposes $9,950,400 in watermain projects. The purpose of the work is to replace aging watermains which will improve hydraulic conditions within the distribution network and will reduce the likelihood of costly main breaks. Any awards would contribute to the City's infrastructure program which currently replaces 1.0% of the distribution system annually.

Appendix 2 proposes $16,265,000 in sewer projects. The majority of the funding would assist with replacing old combined sewers with separated sewers at the rate of about 1% annually. This program allows the City to continuously reduce and eventually eliminate sewage overflows to our surrounding waterbodies. The remainder of the funding would help the following programs: Connection and Manhole Reconstruction, Local Repairs, Catch Basins and Spurs and Upgrades to Pump Stations.

Appendix 3 proposes $710,000 in the "Other Infrastructure Projects" category. Greenway and Blueway projects make up this request.

The three Greenway projects will continue work identified in the Vancouver Greenways Plan. In 1999, the City was awarded $50,000 towards construction of the Wellness Walkway through phase I of the Provincial Local Government Grants Program. One of the three submitted projects for phase II of the Provincial Local Government Grant Program will be for continuation of the Walkway. The two Blueway projects will provide motorized ferry dock ramps on the north and south sides of false creek making each site wheelchair accessible.

FINANCIAL IMPLICATIONS

The grants awarded to the City represent 25% of the cost of the works. The Province requires that the remaining 75% be provided by the municipality. It is recommended that the City's share of the project ($10,497,750) be provided from previously approved 2000-2002 Sewers Capital funds. This would therefore not result in a need to increase borrowing authority or taxes to undertake the program.

- - - - -

APPENDIX 1

2000 Local Government Grant Applications

WATER DISTRIBUTION MAIN PROJECTS

Project Estimate

33rd - Larch to Pine $770,000
Terminal - Thornton to Begg $527,800
10th Ave - Arbutus to Burrard $289,600
11th Ave - Carnarvon to Trafalgar $275,200
Shaughnessy (Nanton, Arbutus, Maple) $568,000
16th Ave - Kingsway to Knight $550,800
72nd Ave - French to Oak $340,800
Osler - 71st to 73rd $158,400
Ash - 65th to 71st $275,200
69th Ave - Ash to Laurel $216,000
Cassiar - Oxford to Adanac $600,000
Slocan - Charles to Adanac $312,000
Commercial - Venables to Powell $673,400
Gore - Alexander to Prior $537,600
Jackson - Hastings to Prior $311,600
Blanca, Courtenay, 2nd, 12th $1,600,000
Dunbar - 17th to 36th $1,944,000

APPENDIX 2

2000 Local Government Grant Applications

SEWER PROJECTS

Project Estimate

Fraser River Drainage Basin Upgrade $1,230,000
West Point Grey Drainage Basin Upgrade $2,330,000
Balaclava Drainage Basin Upgrade $2,570,000
Kitsilano/South Granville Drainage Basin Upgrade $1,230,000
Cambie/Heather Drainage Basin Upgrade $1,770,000
Terminal Avenue Drainage Basin Upgrade $200,000
Downtown Drainage Basin Upgrade $270,000
Grandview/Woodlands Drainage Basin Upgrade $1,730,000
Hastings/Sunrise Drainage Basin Upgrade $630,000
China Creek Trunk Drainage Basin Upgrade $2,930,000
Still Creek Drainage Basin Upgrade $200,000

Connection and Manhole Reconstruction $830,000
Local Repairs: Catch Basin and Spurs $230,000
Upgrade and Replacement of Pump Stations $115,000

APPENDIX 3

2000 Local Government Grant Applications

OTHER INFRASTRUCTURE IMPLEMENTATION

GREENWAYS AND BLUEWAYS PROJECTS

Greenways

Project Estimate

Ontario Greenways Projects $100,000
Trans-Canada Trail Burnaby/Vancouver Connection $50,000
Mount Pleasant Wellness Walkway - Phase II $100,000

Blueways

Project Estimate

Motorized Ferry Dock Ramp $300,000
Motorized Ferry Dock Ramp $160,000

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