ADMINISTRATIVE REPORT

Date: August 29, 2002
Author: Ken Low/604-871-6674

RTS No. 02938

CC File No. 1611

CS&B:September 12, 2002

TO:	Standing Committee on City Services and Budgets
FROM:	General Manager of Engineering Services
SUBJECT:	Credits to the 2000 - 2002 Street Lighting Capital Plan

RECOMMENDATION

THAT Council approve the reallocation of $721,589.72 receifed from the closeouts of the 1994-1996 and 197-1999 Street Light Capital Plans to the current 2000-2002 Capital Plan. This reallocation was anticipated in the 2002 Engineering Basic Capital Budget and closeouts report approved by Council on May 16, 2002.

POLICY

Capital Accounts must be closed out upon completion of projects.

PURPOSE

The purpose of this report is to request Council's approval to reallocate $721,589.72, received from the closeouts of the 1994-1996 and 1997-1999 Street Lighting Capital Plans, to the current 2000-2002 Capital Plan.

BACKGROUND

In April, 2002, the 1994-1996 and 1997-1999 Street Lighting Capital Plans were closed. Some of the Local Improvement (L.I.) projects included in these two Capital Plans were completed in 1999 and subsequent years. However, at the time of the closeouts, the property owners' shares in these L.I. projects had not been credited. Consequently, the net overall balance resulting from the closeouts of the two Capital Plans was a negative variance of $73,334.

DISCUSSION

In July 2002, the Finance Department identified $721,589.72 in credits due. This was anticipated in the 2002 Capital Budget Appendix 2 - Close-Outs. Staff recommend that this $721,589.72 credit be brought into the current 2000-2002 Street Lighting Capital Plan and reallocated as follows:

Plant Replacement                                                                 $174,000.00
Facilities Management                                                           $ 80,000.00
Infill Lighting - Safer City                                                      $ 64,000.00
Balance 1994-1996 and 1997-1999 Capital Plan closeouts   $ 73,334.00
Local Improvements                                                               $250,000.00
Other Charges (MAP, Overheads, etc.)                                  $  23,000.00
Unallocated Credits (reserve for contingency)                       $  57,255.72
Total                                                                                       $721,589.72

SOCIAL/FINANCIAL IMPLICATIONS

The work categories as outlined above in the 2000-2002 Capital Plan have largely been completed. This reallocation will enable extra work be done in the areas of rusty pole replacements, conduit replacements, plant inventory, and infill lighting. In the long run, this will reduce the City's maintenance costs.

CONCLUSION

Staff support this proposal to reallocate the $721,589.72 credit to the current 2000-2002 Capital Plan.

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(c) 1998 City of Vancouver