Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

Dated: April 25, 2002
Author/Local: Annette Klein 7789
RTS # 02545
C.C. File No. 1602
CS&B: May 16, 2002

TO: Standing Committee on City Services and Budgets

FROM: General Manager of Corporate Services / Director of Finance

SUBJECT: 2002 Supplementary Capital Budget

RECOMMENDATIONS

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 2002 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. The 2000 and 2001 Supplementary Budgets included funding of $1,906,400 and $1,500,000 respectively, therefore leaving unallocated funds of $1,593,600 for 2002.

DISCUSSION

Appendix 1 summarizes the submissions to the 2002 Supplementary Capital Budget that total $3.7 million. Details of these requests are included in Appendix 2 entitled "Submissions to the 2002 Supplementary Capital Budget" (limited distribution).

Appendix 1 also summarizes the recommendations of the staff group that reviewed these requests. That group was composed of the Deputy City Manager, Director of Facilities Development, the Director of Financial Planning and the Manager of Budgets. Each of the stakeholders who submitted requests for funding were invited to participate in the review meeting.

The highest priority items are recommended for funding from the 2002 Supplementary Capital Budget. In addition, funding from alternative sources have been identified for several projects submitted to the process, including existing City sources (the Operating Budget or Basic Capital Budget) as well as outside sources. As necessary, these items will be submitted to Council for specific funding approval.

1. Comments on Projects Recommended for Funding

The following comments highlight the issues related to the recommended funding levels of several projects submitted to the 2002 Supplementary Capital Budget.

Olympic Bid $75,000

The City of Vancouver and the Vancouver Parks and Recreation are currently preparing documentation for the 2010 Olympic Bid Submission. Facility consultancy work is required for Hastings Park and Nat Bailey Park. The request from Supplementary Capital will allow for cost-sharing with the Bid Corporation while ensuring that the any facility built for the 2010 Olympics will remain as a legacy to the City.

Renovations at 450 West Broadway $150,000

The use of the building at 450 West Broadway has changed due to the relocation of Records Storage in 2001. The site will now house the Elections Office and the studio for Greater Vancouver TV.Com. The current condition of the facility needs to be upgraded to make the facility suitable for this new use.

SAP Plant Maintenance and Asset Management $400,000

Significant benefits to the management of the City's plant and assets can be provided through the implementation of SAP Plant Maintenance (PM) and Asset Management (AM) modules. The first phase of implementation will provide this functionality to the Park Board and Building Management. The experience will then be utilized in the transition of Engineering in the second phase of the project. The total cost of the project is estimated at $808,000, however, for 2002, funding of $400,000 is required. The balance of the necessary funding would be committed from the 2003 Capital Budget.

Expansion of the Animal Control Centre $130,000

With the introduction of a "no kill policy" for healthy dogs by the City and increased dog apprehensions from the Grow Buster's Program, the existing facility cannot accommodate the number of animals entering the shelter. Supplementary Capital funding is required to expand the facility by 16 kennels and to renovate the facility to include a recovery isolation centre.

Vancouver Police Building Security $174,200

The Vancouver Police Department has identified a need to improve building security by theinstallation of a card access security system similar to the one currently being used at City Hall. 312 Main does not have any controlled access system while 2120 Cambie and the Fleet lot have obsolete systems. The proposal is to have one system that connects the three main police buildings (312 Main, 2120 Cambie, and 5 E8th) as well as their Fleet lot.

Vancouver Police Crowd Control Equipment $200,000

The Vancouver Police Department has identified the need to enhance their crowd control capabilities by not only expanding the crowd control unit from 90 to 120 members but also to equip existing patrols with core crowd control equipment. The submission provided by the VPD totaled $335,660. Given the competing requirements within the Supplementary Capital Budget, it is recommended that $200,000 funding be provided in 2002. The department has prioritized their request by equipping the crowd control unit as follows:

Stanley Park Sea Wall Repairs $216,700

On December 12, 2001, a severe wind storm hit the City of Vancouver which resulted in substantial damage to the Stanley Park sea wall. The total cost of the repair to the wall is estimated at $359,700 . By re-prioritizing existing projects, the Park Board has identified existing funding of $143,000 in Basic Capital, leaving $216,700 to be funded from Supplementary Capital.

Britannia Re-Roofing Projects $92,900

Britannia Community Services Centre submitted re-roofing projects for their gym, ice rink, and elementary school totaling $323,400. Britannia's operating and capital maintenance expenditures are cost shared with the Vancouver School Board (VSB). Therefore, the City's share of these projects would be $92,900. These projects will only go ahead if the VSB obtains funding approval.

Other Maintenance/Upgrade Projects $154,000

Finally, three other projects, the Old Continental/Gersham Residence renovations, carpet replacement at Joe Fortes Branch Library, and ventilation improvements at the Police Forensic Garage were considered a priority for 2002 Supplementary Capital funding.

2. Comments on Other Projects
There are a number of requests to the Supplementary Capital Budget that are more appropriately funded elsewhere. These include:
· A number of building maintenance requests that are more appropriately referred to ongoing maintenance budgets in the Operating Budget or to the Basic Capital provision for Major Building Maintenance.
· Dorothy-Lam Day Care will need to be realigned to accommodate a new school being built adjacent to the day care. Funding for this work is more appropriately funded within existing Social/Cultural Facilities Basic Capital Budgets.
· Issues relating to the occupancy and upgrading of the City Analyst Building will be the subject of a future report to Council.
· The replacement of diesel fuel tanks for Firehall #14 and #21 to ensure that the all Firehalls have a secure source of fuel for emergency Fire Department vehicles will be provided within existing Firehall Upgrade Basic Capital Budgets.
· Three energy use related requests had strong business cases. These included an energy use study at City Hall and Library Square, replacement of Exit signs with more efficient LED (light emitting diodes) signs, and installation of occupancy sensors at Library Square. It is recommended that these projects be financed from internal sources on terms acceptable to the Director of Finance based on the merits of the respective business cases.
Appendix 3 provides a five-year history of the Supplementary Capital Budget approvals.
CONCLUSION
The 2002 Supplementary Capital Budget recommends the allocation of $1,593,600 from the Basic Capital Budget to specific projects that are considered to be high priority for funding.

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Appendix 1 available from the City Clerk's Office

Link to Appendix 2 - Limited Distribution

Link to Appendix 3 - Limited Distribution

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