Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

Dated: April 17, 2000
Author/Local: J. Beresford 7789
RTS #01451
C.C. File No. 1602
CS&B: May 18, 2000

TO: Standing Committee on City Services and Budgets

FROM: General Manager of Corporate Services / Director of Finance

SUBJECT: 2000 Supplementary Capital Budget

RECOMMENDATION

COUNCIL POLICY

It is Council policy to identify capital funding priorities in three year Capital Plans. These Plans and the associated Capital Financing Plan are developed such that the plan and necessary borrowing authority can be put to the voters at the time of triennial civic elections.

The Capital Plan forms the framework within which annual capital budgets are prepared. The two components of the annual capital budget are:

… Basic Capital, which includes project/program - specific items that were included in the Capital Plan, and
… Supplementary Capital, which includes items which had not been anticipated in the Capital Plan but which have become a priority during the course of the Plan.

PURPOSE

The purpose of this report is to review the requests for funding from the 2000 Supplementary Capital Budget and to forward the recommended projects to Council for approval.

BACKGROUND

The City’s Capital Plan normally provide two types of funding:

The 2000 - 2002 Capital Plan includes provision for $5.0 million in Supplementary Capital expenditures to be funded from the Operating Budget (Capital from Revenue) over the three years of the plan.

On February 12, 2000, Council approved the purchase of the CLEU Building for Vancouver Police Department Use, including the following recommendation.

DISCUSSION

The allocation of Supplementary Capital funding from the 2000 - 2002 Capital Plan would normally be set at around $1.65 million annually. However, there is some flexibility around the timing of the annual allocation depending on funding requirements for project funding. Funding of $1,906,400 is recommended for 2000 Supplementary Capital, to provide for the Criminal Intelligence Section (Police), along with a number of other high priority maintenance projects.

The need to fund the creation and outfitting of the Criminal Intelligence Section was identified following the completion of the 2000 - 2002 Capital Plan and therefore could not be included in Basic Capital. Recognizing that funding $1.625 million for the Criminal Intelligence Section from Supplementary Capital essentially utilizes the entire 2000 Supplementary Capital funding allocation, the Supplementary Capital review process focusedon identifying high priority maintenance, health and safety items or completion of existing work. During the review process, projects that could be delayed without a detrimental impact on health and safety were deferred to subsequent years of the Capital Plan or where possible, referred to alternative funding sources.

Appendix 1 summarizes the submissions to the 2000 Supplementary Capital Budget that total $3.66 million (excluding the Criminal Intelligence Section). Details of these requests are included in Appendix 3 entitled "Submissions to the 2000 Supplementary Capital Budget" (limited distribution - on file in the City Clerk’s Office).

Appendix 1 also summarizes the recommendations of the staff group that reviewed these requests. That group was composed of the Deputy City Manager, Manager of Facilities, 2 representatives of the Corporate Management Team, the General manager of Corporate Services and the Manager of Budgets.

Allocation of the limited funding available in this year's budget required difficult choices to be made among the projects submitted. The recommendations give priority to:

The highest priority items are recommended for funding from within the 2000 Supplementary Capital Budget. There are several other projects for which other funding sources will be sought or which will be referred to back the Facilities Strategic Plan for priorization. The 2000 - 2002 Capital Plan includes $5.0 million to address basic building maintenance issues. Formerly, these projects were referred to the Supplementary Capital budget process. It is therefore appropriate to refer particular building maintenance items to this allocation within the Basic Capital budget.

Appendix 2 includes comments on several of the specific projects submitted to the Supplementary Capital Budget, including those where alternative funding sources are recommended.

Appendix 4 provides a five-year history of the Supplementary Capital Budget approvals.

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Link to Appendix 1

 

Appendix 2

Comments on the Submissions to the
2000 Supplementary Capital Budget

Projects Recommended for Funding

Details of the submissions to the 2000 Supplementary Capital Budget are included in the Appendix 3 (limited distribution). The following comments highlight the issues related to the recommended funding levels of several projects submitted to the 2000 Supplementary Capital Budget.

Approvals in Advance

Start-up Costs - Police Criminal Intelligence Section (CLEU) $1,625,000

Supplementary Capital Funding for this project has received prior Council approval.

On-going Building Programs

A-1 Carpet Replacement Program $100,000

Extensive renovations are scheduled for the East Wing and the Main City Hall Building. It is more cost effective and less disruptive to replace worn carpet in adjacent areas in conjunction with the renovation work. Additional carpet repair /replacement work will be completed as the priority and funding allow. Several departments' requests will be addressed by the 2000 allocation including replacement of the 5th floor of City Hall, and areas of the East Wing.

City Hall Precinct - Maintenance / Upgrades

A-5 Council Chamber - Audio-Visual System $ 35,000

In 1999, the sound audio-visual and TV lighting systems in the Council Chamber were upgraded at a cost of $300,000. Several items not contemplated in the original scope have been requested, which will enhance the use of the new computer controlled system. The remaining cost of this work is $35,000.

A-9 East Wing - Washroom Upgrade $ 21,000

The washrooms in the East Wing are original to the building construction. They are subject to heavy use by staff and the public, difficult to clean adequately, and are the subject of regular complaints. This work will restore the facilities to an acceptable standard.

Other Building Maintenance & Upgrades

B - 1 Police Services and Facilities Study

The Police Chief and the City Manager have agreed on a process for review of Police space needs. Work will begin this year, however it is unlikely that this will require an outlay of funds in 2000. The next phase of the work will involve consultants and is estimated to cost $200,000. Funding for this portion of the work will be included in the 2001 Supplementary Capital budget.

B-2 Retrofit Canopy at Playhouse Childcare $ 10,000

The Playhouse Childcare at 4121 Brand Street in Vancouver has a canopy over the play area that was installed several years ago. Construction did not meet permitted standards. Efforts to have the Contractor rectify the problem have been unsuccessful. The building inspector has ordered the canopy removed, as it could be unsafe, however the canopy is necessary to meet licensing requirements for provision of covered outdoor play space. The City will retain an engineer to design and construct the required upgrade.

F-2 Relocation of Champlain Branch Library $ 50,000

The Champlain Branch Library is being relocated within the Champlain Mall. As part of a voluntary capital contribution, the developer is providing an 8,500 square foot "turnkey ready" branch. This request covers remaining furniture and equipment not funded as part of the capital construction.

Civic Theatres

H-1 Civic Theatres Fire Suppression System $15,000

Inspection of the exhaust hood/Fire Suppression System for the Civic Theatres restaurant revealed that it is not in compliance with current standards and represents a fire hazard. Initial funding to undertake this project was provided through the 1999 Supplementary Capital Budget. The 2000 funding request completes the project.

H-2 Civic Theatres Fire Alarm Upgrade $20,400

At the time of construction, the Fire Code did not demand that ventilation systems be integrated with the Fire Alarm. This "tie-in" is necessary in order to shut down all ventilating equipment when an alarm is triggered there-by preventing a continuous supply of fresh air to a fire. This is a high priority safety issue.

H-4 Civic Theatres Ventilation Duct Work $30,000

WCB regulations effective March 1, 1999 dictate that a program of power vacuuming all ventilation Duct Work be in place. Access to some areas of the Theatre complex has not been possible with traditional truck mounted power vacuuming equipment. Newer, portable equipment can now be used to clean all of the Duct Work in the complex. Any repairs required to the duct system can be done in conjunction with this project.

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Appendices 3 and 4 on file in the City Clerk's Office

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