Vancouver City Council |
ADMINISTRATIVE REPORT
Dated: April 29, 2003
Author/Local: Annette Klein:
604-873-7789
RTS # 3347
CC File No. 1602
CS&B: May 15, 2003
TO: Standing Committee on City Services and Budgets
FROM: General Manager of Corporate Services / Director of Finance
SUBJECT: 2003 Supplementary Capital Budget
RECOMMENDATIONS
A. THAT the projects identified as RECOMMENDED in Appendix 1 and totaling $1,000,000 be approved; source of funds to be the 2003 Supplementary Capital Budget.
B. THAT Council authorize the Director of Finance to approve the installation of occupancy sensors at Library Square; to be financed from internal sources on terms acceptable to the Director of Finance, based on the merits of their business case.
C. THAT Council approve the allocation of $86,000 from the Plant and Equipment Reserve for the addition of 1 reach-forklift and 1 stockpicker to the Yards New Stores Operation. Funding for the annual rental and operating charge of $19,200 to be provided in the 2004 Engineering Yards Budget without offset.
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 2003 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:
· Basic Capital provides for those projects and on-going programs that can be planned in advance,
· Supplementary Capital deals with expenditures of a capital nature that arise during the three-year duration of a Capital Plan.
The 2003 - 2005 Capital Plan includes provision for $3.0 million in Supplementary Capital expenditures to be funded from the Operating Budget (Capital from Revenue) over the three years of the plan. The 2003 allocation takes one third of this provision or $1 million.
Council pre-approved $0.3 million of the 2003 Supplementary Budget for the Woodwards redevelopment project, thereby leaving only $0.7 million to allocate to projects. This pre-approval is included in the Budget and is included in the requested amount.
DISCUSSION
Appendix 1 summarizes the submissions to the 2003 Supplementary Capital Budget that total $3.3 million. Details of these requests are included in Appendix 2 entitled "Submissions to the 2003 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, the General Manager of Corporate Services/Director of Finance, the Director of Financial Planning and the Director of Budget Services. 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 2003 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 2003 Supplementary Capital Budget.
Woodwards Redevelopment (Pre-Approved) $300,000
On April 22, 2003, Council approved a Process Framework and Public Consultation Process for the redevelopment of Woodwards. Funding was approved from the 2003 Supplementary Capital Budget for the Public Consultation Process and completing a detailed report on the building's structural, mechanical, and electrical systems
Vancouver Police Building Security $66,500
The Vancouver Police Department identified additional building security measures totaling $294,500 since the initial installation of a card access system in 2002 funded from Supplementary Capital. The Police Department have determined the most urgent requirements to be for additional card access points and video surveillance equipment totaling $66,500.
Vancouver Police Information Technology Security Upgrades $68,000
The Vancouver Police Department have prioritized their most critical areas for IT Infrastructure security upgrades to their firewall and associated server ($28,000) and network switches ($40,000).
Vancouver Police Ventilation and Fire Suppression $25,000
The Vancouver Police Department submitted proposals for improving the ventilation system at the Police Forensic Investigations Area ($262,000) and for a fire suppression system in the Property Office at 312 Main ($300,000). A preliminary assessment by external consultants indicated the problems in these areas are more complex than originally envisioned, therefore, funding is recommended for conducting a study for the long term ventilation and fire suppression needs in these areas.
Fire Department Confined Space Structural Training Area $110,000
With the development of the new Chess Street Works Yard, the Vancouver Fire Department will need to replace the confined space training area currently located on the Chess Street site. The City Manager will approve the project scope and terms of reference to ensure the project considers the impact of joint usage by the cross-Canada Heavy Urban Search and Rescue program.
Expansion of the Animal Control Centre $176,000
In 2002, Council approved $130,000 to expand the Animal Control Centre by 16 kennels since the existing facility cannot accommodate the number of animals entering the shelter. A study in the summer of 2002 indicated that the original estimate was insufficient and that a further $176,000 is required, bringing the project budget to $306,000.
Britannia Facilities Master Plan $55,000
Britannia Community Centre facilities are nearing 30 years and require maintenance and upgrading. To ensure the facilities are upgraded in the most effective and strategic manner, funding is recommended for a Facilities Master Plan. Given the uniqueness of the Britannia Community Centre in its relationship to the City, the City Manager will approve the terms of reference and the level of City staff involvement to the project prior to any funds being allocated.
Other Maintenance/Upgrade Projects $199,500
Finally, a number of Building Maintenance and Facility projects are recommended:
· carpet replacement at Kitsilano Branch Library
· renovations to the Mayor's Office to add office space to accommodate staffing changes and to improve public access,
· rehabilitation of Committee Room 1,
· realign Corporate IT Office space to improve utilization of Call Centre Staff, and
· two high priority maintenance issues at 312 Main and Queen Elizabeth Theatre.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) 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.
b) The installation of occupancy sensors at Library Square is recommended to be financed from internal sources on terms acceptable to the Director of Finance based on the merits of the respective business cases.
c) Civic Theatres identified three projects that more appropriately funded from the Civic Theatres Capital Reserve. Should Civic Theatres wish to proceed with these purchases, a report will be provided to Council.
d) Engineering requested equipment for their New Stores that would be more appropriately funded from the Plant and Equipment Reserve and is recommended in this report.
e) Costs for repairs for playfields at Dororthy Lam and Quay Side Children's Centres is to be recovered from the original developer due to deficient construction and design.Appendix 3 provides a five-year history of the Supplementary Capital Budget approvals.
CONCLUSION
The 2003 Supplementary Capital Budget recommends the allocation of $700,000 from the Basic Capital Budget to specific projects that are considered to be high priority for funding. A further $300,000 of 2003 Supplementary Capital was pre-approved on April 22, 2003, for the Woodwards Redevelopment.* * * * *
NOTE FROM CLERK: Appendix 2 is Limited Distribution - on file in the City Clerk's Office