ADMINISTRATIVE REPORT

TO: City Services and Budgets Committee

FROM: General Manager of Engineering Services

SUBJECT: 2001 Engineering Basic Capital Budget

RECOMMENDATIONS

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 in the 2000-2002 Capital Plan and 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), CityPlan (1991) and the current Greenways Program (1995) establish the City's policy prioritizing pedestrians and promoting and encouraging cycling as a transportation alternative. Greenways also address the growing needs on the part of communities to have a voice in the design and use of the urban landscape.

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 & DRAINAGE

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 2001 Engineering Basic Capital Budget, including submissions for:

The General Manager of Engineering Services will report separately on the details of the 2001 Traffic Signal Program ($1,241,000) to the Standing Committee on Transportation and Traffic. Funding for the 2001 Traffic Signal Program is included in the 2001 Streets Capital Budget. The 2001 Basic Capital Budget, the second year of the 2000-2002 Capital Plan, allocates slightly more than one-third of the Capital Plan funds approved by plebiscite in November 1999.

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 $1,749,625

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 matches the remaining funds. The Province has pledged to accept claims for the funds over three years commencing April 1, 2001 through March 31, 2003. Last year, $1,049,775 in funding was available and the City received that amount from the Province. For 2001, $1,749,625 of the grant is available to claim with the remaining $699,850 available in 2002.

The Local Government Grant Program has not been renewed for 2001.

2) TransLink Funding $ 5,804,000

While only a portion of the Translink funding deals with Capital, for completeness, the entire funding impact has been detailed in the following section:

A) Operations/Maintenance/Rehab Funding (OMR) $3,832,116

As of April 1, 1999, the City became a member municipality of TransLink, the new regional transportation agency. In exchange for managing the streets within the Major Road Network (MRN), the City receives funding for Operation, Maintenance & Rehabilitation (Capital). The City of Vancouver currently has a total of 549 lane km on the MRN.

Full annual funding in the amount of $12,000 per lane km was to be provided to each member municipality, assuming that their MRN streets met Translink's minimum Pavement Quality Index (PQI) of 5.5. Currently, 34 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. However in 1999, the first year of the program, Translink funded 70% of the total MRN funding and committed to 80% in 2000, 90% in 2001 and 100% in 2002. Subsequently, Translink froze the funding at 70% in 2000 and revised the plan which currently proposes 59% in 2001 and 49% in 2002 due to the failure to implement a vehicle levy.

This has resulted in a $670,000 reduction from 2000 funding.

The OMR funding is distributed in the following areas:

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 2001, the City will receive approximately $1,266,000 for Maintenance of MRN roads well below the estimated $2.5 million required to provide adequate maintenance.

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.

TOTAL CAPITAL OPERATING

B) Minor Capital $1,972,000

Under TransLink's definition, this category only includes new works, not replacement. TransLink will fund 50% of the cost of these projects. For 2001, TransLink funding has been tentatively approved for $10,000,000 region wide with Vancouver likely receiving $1,972,000. Approximately $1.5 million will be allocated to the Stanley Park S curve with the remainder allocated to miscellaneous projects.

SUMMARY OF TRANSLINK FUNDING

For 2001, it is estimated that approximately $5.8 million in TransLink funding will be received through the MRN program:

3) ICBC Safety Programs ~$900,000

Since the early 1990's the Insurance Corporation of British Columbia (ICBC) and the City have participatedin 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 2001 construction season. These projects include signal improvements, stop signs, traffic calming and construction of left turn bays already approved by Council. ICBC funding will complement existing City funding and is expected to total $900,000. This amount is variable as funding depends on suitable projects, not a funding formula.

4) Canada-B.C. Infrastructure Program $unknown

As brought forward at the March 8, 2001 CS&B meeting, the Canada-B.C. Infrastructrue Program has commenced with Engineering Services submitting $130 million of suitable projects to the first round of awards. A total of $267 million has been allocated to British Columbia by the Federal Government. Once matched by the Province and Municipalities, over $800 million will be available over 5 years for Green and Other Capital Works projects. To date, no indication has been made as to when awards will be announced.

2001 BASIC CAPITAL BUDGET PROJECT DETAILS

The 2001 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 2001 Traffic Signal Program ($1,420,000) is included in the 2001 Streets Capital Budget. The General Manager of Engineering Services will report separately on the details of the 2001 Traffic Signal Program to the Standing Committee on Traffic and Transportation. 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 $ 14,264,500

The 2001 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 $3,430,000

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 roadways 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, a significant portion of the City funding in this category is applied to MRN streets with PQI less than 5.5 so that they will qualify for future funding. This results in limited funds being allocated to Non MRN arterialstreets and local streets. Also, included in this category is the major maintenance of City bridges, which for 2001 is a relatively small joint replacement project.

Pedestrians, Bicycles & Greenways $3,320,000

This program provides for pedestrian and cycling priorities. The construction of new sidewalks and curb ramps, 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 over 130 km built. Proposed cycling improvements in 2001 include the accommodation of bicycles on Pender Street, Pacific Boulevard, Georgia Street, Kent Avenue, 16th Avenue, 10th Avenue and Inverness/Windsor. As well, more bike logos will be painted on the road and more streets name signs will be installed. 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/Bikeway between Renfrew Station and Commercial is being provided at no cost to the City as part of the Broadway-Lougheed Skytrain project. Later this year, Council will receive a report outlining the funding arrangements for the remaining portions of the Grandview Cut Greenway/Bikeway.

Traffic Signals $1,596,000

This section includes funding of $1,241,000 for the proposed 2001 Traffic Signal Program which will install new traffic signals ($866,000) and modify existing traffic signals ($375,000). 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 ($355,000).

Transit & Safety Improvements $2,205,000

This program provides funding to address various transportation priorities to enhance transit and improve safety. The projects proposed in this category will be the Left Turn Bay at Grandview Hwy and Skeena St, and a Left Turn Bay at Arbutus St. and Valley Dr.. Also for 2001, projects in this program will include a number of discrete safety related geometric improvements that will be constructed in conjunction with ICBC. This program also includes arterial local improvements, bus shelters and bus slabs and landings, and the Left Turn Bay Property Fund.

Local Area Traffic Plans and Other Improvements $ 3,940,000

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 increasing demandfor 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 1994-1996 Capital Plan

Engineering has $226,500 in unallocated funding from the 1994-1996 Capital Plan originally planned for work on the Granville Bridge Safety Improvements. These funds have been brought forward into the 2001 Streets Capital Budget and are reflected in the figures provided in this report.

B. COMMUNICATIONS $ 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 2001 Capital Budget contains funding for the continuation of the Underground Cable Plant replacement and expansion programs.

C. STREET LIGHTING $1,659,000

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 2001 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 2001, funding is included to upgrade lighting levels in response help to local public safety and security concerns raised by the Police and public.

Funding is also provided for street lighting relocations in coordination with other utility companies' replacement programs and for the City's share of new lighting projects approved through the Local Improvement process.

D. SEWERS & DRAINAGE $17,015,000

The Sewers program includes the following:

System Replacement/Separation $16,280,000

The 2001 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 physicalfailure, deterioration from age, inadequate capacity and related flooding problems, and environmental benefits. 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:

- provides for continuous environmental improvements by reducing Combined Sewer Overflows (CSO's),
- meets the City's and Liquid Waste Management Plan's combined sewer overflow (CSO) management goal of gradual reduction and eventual elimination over 50 years.
- it avoids crisis funding and spreads the cost of Capital replacement works to taxpayers more evenly over time,
- maintains a stable, well-trained workforce,

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 is also a key component of the proposed Liquid Waste Management Plan.

Other Pollution Abatement $ 735,000

This program funds other pollution abatement initiatives such as the Liquid Waste Management Plan and Sewer Separation on Private Property. The 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, by taking advantage of sewers which have been separated in the street area. These benefits follow Provincial policy objectives and thus minimize Provincial requirements for more costly short-term improvements to reduce Vancouver's sewage overflows. For 2001, Sewer Separation will focus on the Downtown Peninsula drainage basin.

E. WATERWORKS $20,050,000

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. Coordination with the GVRD through the STOR project also resulted in the deferral of the storage reservoir envisioned in the LRP. The 2000-2002 Capital Plan and the 2001 Budget continue to address the major issues identified in the LRP and subsequent planning work.

The 2001 Waterworks Capital Budget is composed of the following:

Infrastructure Replacement $9,950,000

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 $2,400,000

This program involves the replacement or extension of transmission mains to address pressure and fire flow problems, due to historic and continuing City and Regional growth. In 2001, $1.5 million of funding is recommended for the pre-purchase of materials for a transmission main project from Little Mountain Reservoir to the west. This area is prone to low water pressures during the summer and has very little supply redundancy. Conceptual design for the project is underway, with construction anticipated to begin in 2002. The program also includes funding for water conservation projects and for services, meters and distribution system improvements to accommodate new developments. Due to reduced development activity in the last two years, $500,000 in funding for the 2001 portion of these programs is available from the 1999 Capital Budget.

Emergency Planning $7,200,000

The majority of funding in this category is for the Dedicated Fire Protection System (DFPS). Approved in April 1992, this project has a 12-year implementation schedule. To date, the False Creek and Coal Harbour pump stations, and 6.1 kilometers of pipeline between them, are complete. The False Creek underwater crossing will be completed this spring (with 2000 capital funding).

In 2001 this program will fund construction of the pipelines to connect the False Creek crossing to the existing downtown system and to extend the DFPS into Kitsilano and Fairview Slopes. The proposed $7 million funding is the balance of DFPS funding in this Capital Plan. This will ensure uninterrupted pipeline construction for maximum efficiency.

Funding is also included in this category for the evaluation and development of alternative water supplies such as groundwater sources and access to Fraser River water for firefighting. In 2001, $200,000 is proposed for investigation and potential development of an emergency groundwater supply in partnership with the Vancouver Hospital complex. The hospital group is presently considering the development of on-site storage during their site redevelopment, which would provide and excellent opportunity for a shared groundwater facility.

Other Works $300,000

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. In 2001, this work includes improving radio communication from existing unreliable sites, replacing outdated software, and the potential development of a ductbank across False Creek during the DFPS crossing project.

Water Quality Projects $200,000

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 is also included for the design and advance material purchases for any neighbourhood treatment facilities (such as re-chlorination stations) required in order to comply with the BC Safe Drinking Water Regulation.

F. YARDS $ 6,000,000

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 the facilities from Cambie Works Yard and satellite yards. This submission is for $6,000,000 to continue the first phase of the project, including the planning, design development, consultancies, letting of contracts and site preparation. The majority of the construction will occur in the third year of the Capital Plan but funds must be allocated to facilitate entering into construction contracts. The General Manager of Engineering Services will report to Council separately on the details of this project and, depending upon progress of construction, may need to increase the amount of money allocated this year.

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 2001 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)

Program 2000-02 2000 Debenture Funds from 2001 Remaining
Funding Budget Funding Revenue Budget Funding

Streets

$ 44,780

$16,970

$14,264.5

$ 0

$14,264.5


$13,545.5

Communications

$ 920

$ 300

$ 300

$ 0

$ 300

$ 320

Street. Lighting

$ 4,227

$ 1,412

$ 1,659

$ 0

$1,659

$ 1,156

Sewers

$ 51,045

$17,015

$ 17,015

$ 0

$17,015

$ 17,015

Waterworks

Yards

$ 58,950

$ 15,928

$18,350

$ 3,000

$ 20,050

$ 6,000

$ 0

$ 0

$20,050

$ 6,000

$ 20,550

$ 6,928

Total Engineering

$175,850

$57,047

$59,288.5

$ 0

$59,288.5

$ 59,514.5

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. Due to staffing shortages, a Capital closeout of the 1997-1999 Capital Plan was not prepared with this report. That work should be completed this summer for Council's review in early fall.

* * * * *

 

General Mgr./Dept. Head:

Date:

This report has been prepared in consultation with the departments listed to the right, and they concur with its contents

Report dated:

May 1, 2001

Author:

Peter Navratil

Phone:

873-7283

Concurring Departments

Financial Services