Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO: City Services and Budgets Committee

FROM: General Manager of Engineering Services

SUBJECT: 2002 Engineering Basic Capital Budget

RECOMMENDATIONS

A. THAT the 2002 Streets, Street Lighting, Yards and Communications Basic Capital Budget totalling $23,214,100 as summarized in this report and detailed in Appendix 1 be approved. Funding, excluding pre-approved borrowing of $10,573,600, to be provided as follows:

B. THAT the 2002 Sewers Basic Capital Budget totalling $17,015,000 as summarized in this report and detailed in Appendix 1, be approved. Funding, excluding pre-approved borrowing of $12,985,000, to be provided in new borrowing approved under Council authority for the Sewer component of the budget.

C. That the 2002 Waterworks Basic Capital Budget totalling $14,000,000 as summarized in this report and detailed in Appendix 1, be approved. Funding, excluding pre-approved borrowing of $9,950,000, to be provided in new borrowing approved under Council authority for the Water component of the budget.

D. That the Capital closeouts as detailed in Appendix 2 be approved and that the required carry forward of surpluses and deficits be brought into the 2000-02 Capital Plan Account Structure.

POLICY

On January 22, 2002 Council approved a total of $37,524,300 in borrowing authority in advance of the 2002 Capital Budget.

In November 1999, Council approved the 2000-2002 Capital Plan which set a level of funding for specific Capital programs over those three years. Through plebiscite, voters approved borrowing authority for the Public Works portion, excluding the Sewers and Waterworks Capital Plans, which are approved by Council.

Funding from the Capital Plan is allocated to specific capital programs through annual Capital Budgets. Funding for annual Capital Budgets is provided from a combination of borrowed funds, as approved in the plebiscite, and revenue funds, with the revenue portion being subject to approval of Capital from Revenue in the Operating Budget. Council approval of the annual Capital Budget is required before work can proceed on specific projects.

Closeouts of completed Capital projects whose expenditures exceed $50,000 and 15% of the approved budgets, require Council approval.

In June 1995, Council directed departments to use CityPlan to guide policy decisions, corporate work priorities, budgets and Capital Plans.

Major policies for Engineering Services Programs are summarized below:

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.

Policies (continued)

Bicycles / Greenways
The Clouds of Change Report (1990), CityPlan (1991) and the current Greenways Program (1995), City of Vancouver Transportation Plan (1997) and the 1999 Bicycle Plan: Reviewing the Past, Planning the Future 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.

Sidewalks
It is Council policy to give sidewalks high priority, and to provide walks on:

Transit
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.

The City has a policy of improving traffic safety at intersections. Work in this area continues to focus on improving safety in existing corridors, in accordance with the Transportation Plan.

The City has a policy of protecting neighbourhoods from shortcutting with the installation of traffic controls such as traffic circles, diverters, and right-in/right-outs.

STREET LIGHTING

The Safer City Task Force indicated the importance of making the public feel
secure. This involves taking proactive measures to provide appropriate light levels onstreets and at bus stops to assist in the protection of citizens from theft and violence. The Infill Lighting program funds the improvements to low levels of lighting on residential streets and around bus shelters.

Policies (continued)

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.

In 1981, the above-noted policy was reaffirmed with the adoption of the 1% life cycle replacement policy for sewer mains as part of the Sewers Long Range Capital Plan.

Both of these policies were reaffirmed in the 1991 Policy Report on Vancouver's "Design and Service Level Standards for Sewer Collection Infrastructure," and have been reaffirmed as part of every Capital Plan since.

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 infrastructure, 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 2002 Engineering Basic Capital Budget, including submissions for:

The General Manager of Engineering Services has reported separately on the details of the 2002 Traffic Signal Program ($1,163,000) to the Standing Committee on Transportation and Traffic. Funding for the 2002 Traffic Signal Program is included in the 2002 Streets Capital Budget. The 2002 Basic Capital Budget, the last year of the 2000-2002 Capital Plan, allocates the remainder of the Capital Plan funds approved by plebiscite in November 1999.

In addition to the $1,163,000 already approved for the 2002 Traffic Signal program, an additional $4,512,815 has been approved by Council in advance of this report. The $4,512,815 is comprised of advances of $1,000,000 for Streets Infrastructure, $710,000 for construction of the Kent bikeway, $150,000 for corner bulges, $1,720,875 for Streets Local Improvement Initiatives and $931,940 for Streets Local Improvement petitions. These pre-approvals are included in the Budget and have not been excluded from the requested amount.

This report also includes Capital account closeouts for Traffic Signals, Communications, Street Lighting, Sewers, Waterworks and Yards, as detailed in Appendix 2.

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 $ 635,000

At its meeting of February 23, 1999, Council approved our recommendations to apply to the Province's1999 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. In 2000 and 2001 , two installments with a total of $2,864,250 in funding were received by the City from the Province. The remaining $ 635,000 of the grant is available to claim in 2002.

The Local Government Grant Program has not been renewed for 2002.

2) TransLink Funding Operating Maintenance and Rehabilitation $2,443,808

Funding from TransLink has increased for 2002 since TransLink was successful in securing new funding sources last fall. MRN funding for 2002 has been set at 75% of the total $12,000 per lane km.

Annual funding in the amount of $12,000 per lane km is provided to each member municipality, assuming that their MRN streets met TransLink's minimum pavement standard. Currently, 17 lane km of the City's MRN is below that standard and will only receive $7,000 per lane km of funding. It is expected that all of the substandard 17 lane km will be upgraded in 2002 thus qualifying for full funding in 2003.

The following table explains the impact on the Capital Budget:

2002 MRN funding

$ per lane km

Qualifying lane km

Operating

Capital

Operating & Main

$5,000 @75%

549

$2,058,750

0

Rehabilitation

$5,000 @75%

532

0

$1,995,000

Other OM&R

$2,000 @75%

549

$374,692

$448,808

Totals

$12,000

  

$2,433,442

$2,443,808

Capital Components of TransLink Funding

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.

Other OM&R $448,808

3) TRANSLINK Minor Capital ~$2,958,000

Under TransLink's definition, this category only includes new works, not replacement. TransLink will fund 50% of the cost of these projects. For 2002, TransLink funding has been tentatively approved for $15,000,000 region wide with Vancouver receiving $2,958,000 upon completion of the awarded projects. Approximately $2.0 million will be allocated as matching funds for intersection improvement projects (1st Avenue at Boundary, Grandview Hwy at Skeena St, Clark Dr. at 6th Ave and SE Marine at Elliott.) with the remainder allocated to miscellaneous projects.

4) ICBC Safety Programs ~$850,000

Since the early 1990's the Insurance Corporation of British Columbia (ICBC) and the City have participated in 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 2002 construction season. These projects include signal installations and 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 $850,000. This amount is variable as funding depends on suitable projects, not a funding formula.

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

As brought forward at the March 8, 2001 CS&B meeting, the Canada-B.C. Infrastructure 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, only $37 Million has been awarded to British Columbia's less populated communities. No indication has been made as to when awards will be announced for the larger urban centres.

2002 BASIC CAPITAL BUDGET PROJECT DETAILS

The 2002 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 2002 Traffic Signal Program ($1,594,000) is included in the 2002 Streets Capital Budget. The General Manager of Engineering Services has reported separately on the details of the 2002 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, localimprovements, or lighting, there could be demands placed upon these Capital Budgets, which would be reported to Council separately.

A. STREETS 2002 Budget $ 14,810,500

The 2002 Streets Capital Budget comprises a number of programs which address Council's Capital, CityPlan and Transportation Plan priorities. A number of minor re-allocations have been done for the 2002 Basic Capital Budget to better address needs. Slightly more funding has been allocated to Pedestrian & Bikes and Infrastructure while slightly less has been allocated to Transit and Safety. A brief description of the Streets programs follows:

Infrastructure $2,881,500

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 meets TransLink's minimum standard for pavement quality. To date, approximately 17 lane km of the network does not meet the minimum standard. The remaining 17 lane km will be improved this year honouring a commitment made to TransLink to improve those streets by 2002. However, a significant portion of the City funding in this category is applied to those substandard MRN streets resulting in limited funds being allocated to Non MRN arterial streets and local streets. Also, included in this category is the major maintenance of City bridges, which for 2002 is a relatively small joint replacement project.

Pedestrians, Bicycles & Greenways $3,960,000

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 2002 include the accommodation of bicycles on Pender Street, Pacific Boulevard, Georgia Street, Central Valley Trail along Grandview Highway North, 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 Ontario Street Greenway and the Trans-Canada Trail. Further development of the citywide Greenway networks will continue . In 2002, it is proposed to upgrade the existing BC Parkway (Molson's/7-11 route) to a Greenway standard. Work will also continue on several Neighbourhood Greenway projects, with funding remaining from previous years.

Traffic Signals $1,594,000

This section includes funding of $1,163,000 for the proposed 2002 Traffic Signal Program which will install new traffic signals ($788,000) and modify existing traffic signals ($375,000). Details of this program have been reported separately to the Transportation and Traffic Committee. This section also contains funding remaining new signal funding ($76,000) and funding for a program to renovate and replace traffic signal infrastructure ($355,000).

Transit & Safety Improvements $1,475,000

This program provides funding to address various transportation priorities to enhance transit and improve safety. The projects proposed in this category will be the alterations to Pacific Street/Boulevard between Burrard and Nelson, pedestrian improvement from 6th Avenue to Granville and traffic calming measures on Lamey's Mill Road and also a number of geometric improvements on Downtown or arterial streets. Some of these projects are cost-shared between the City and the developer. This program also includes arterial local improvements, bus slabs and landings, and the Left Turn Bay Property Fund.

Local Area Traffic Plans and Other Improvements $ 4,120,000

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 demand for 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. In 2002, it is proposed that pedestrian curb bulges will be installed at high priority locations identified with the help of the School Traffic Working Group to increase the safety of the pedestrian.

Pedestrian Facilities - Special Projects $780,000

Engineering has $780,000 remaining in the unallocated funding brought forward from the previous Capital Plans. This amount is reserved for pedestrian facilities improvement projects. This funding is not related to the closeout in Appendix 2.

B. COMMUNICATIONS 2002 Budget $ 320,000

The City's communications system is made up of the 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 2002 Capital Budget contains funding for the continuation of the Underground Cable Plant replacement and expansion programs.

C. STREET LIGHTING 2002 Budget $1,155,600

Similar to a majority of the City's infrastructure, the street lighting plant continues to age with manycomponents now past their estimated service life. The 2002 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 2002, funding is included to upgrade lighting levels in response to help 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 2002 Budget $17,015,000

The Sewers program includes the following:

System Replacement/Separation $16,285,000

The 2002 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 physical failure, 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 recently approved 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.

System Management $ 300,000

The system management programs provide funds to support a variety of information and research projects.These projects provide key information that is used to prioritize our 1% replacement program and establish routine maintenance programs. This program also provides funds for a variety of tools that support cost-effective capital work programs, including sewer system modeling, field monitoring of sewer flows, construction site exposures, soundings of underground facilities, and investigation of new products and technical standards for sewer design and construction.

Other Pollution Abatement $ 430,000

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. Over the last two years considerable sewer separation work occurred in the West End and in 2002 this program will continue in other areas to compliment the main sewer separation program.

E. WATERWORKS 2002 Budget $14,000,000

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 2002 Budget continue to address the major issues identified in the LRP and subsequent planning work.

The total funding for 2000-2002 Waterworks Capital Plan is $58,950,000 which includes $12.4 million
planned borrowing authority in 1997-99 Capital Plan which was not utilized in that plan. Over the last two years, $38.4 millions had been allocated and the funding available for 2002 is $20,550,000. The 2002
Basic Capital Budget for Waterworks requires allocation of $14 million and the remaining funding of
$6,550,000 will remain unspent.

The 2002 Waterworks Capital Budget is composed of the following:

Infrastructure Replacement $10,100,000

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 $3,600,000

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 2002, $2.7 million of funding is provided for the 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. The program also includes funding for water conservation projects and for services, meters and distribution system improvements to accommodate new developments.

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 2002, this work includes improving radio communication from existing unreliable sites, replacing outdated software, and other investigation needs.

F. YARDS 2002 Budget $ 6,928,000

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 the balance of the funding in the Capital Plan, $6,928,000, to continue with the construction project.

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.

Of the borrowing authority for Streets, Communications, Street Lighting and Yards, $10,573,600 has been previously approved on January 22, 2002 in advance of this budget.

There are several projects contained in the 2002 Engineering Capital Budget, such as bike routes, traffic

TABLE 1
(000'S Dollars)

Program 2000-02 2000 2001 Debenture from 2002
Funding Budget Budget Funding Revenue Budget

Streets

$ 46,045

$16,970

$14,264.5

$ 9,315.5

$5,495


$ 14,810.5

Communications

$ 920

$ 300

$ 300

$ 0

$ 320

$ 320

Street. Lighting

$ 4,227

$ 1,412

$ 1,659

$ 754.6

$ 401

$ 1,155.6

Sewers

$ 51,045

$17,015

$ 17,015

$ 17,015

$ 0

$ 17,015

Waterworks

Yards

$ 58,950

$ 15,928

$18,350

$ 3,000

$ 20,050

$ 6,000

$ 14,000

$ 6,928

$ 0

$ 0

$ 14,000

$ 6,928

Total Engineering

$177,115

$57,047

$59,288.5

$48,013.1

$ 6,216

$ 54,229.1

CAPITAL CLOSEOUTS

Every Capital plan 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. Appendix 2 provides a summary of the 1997-1999 Capital closeouts for Traffic Signals, Communications, Street Lighting, Sewers, Waterworks, and Yards. The transfers requiring Council approval are noted.

* * * * *
Link to Appendix 1, Part 1 (Limited Distribution)

Link to Appendix 1, Part 2 (Limited Distibution)

Link to Appendix 2 (Limited Distribution)

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