TO: Standing Committee on City Services and Budgets

FROM: General Manager of Engineering Services

SUBJECT: 2003 Engineering Basic Capital Budget

RECOMMENDATIONS

POLICY

STREETS

Vancouver Transportation Plan

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 2003-2005 Capital Plan and reflected in the annual budgets.

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.

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

- both sides of arterial streets;

- one or both sides of pedestrian collector routes as required;
- both sides of streets in multiple dwelling, commercial and industrial zones;

- adjacent to parks, schools and other exempt property, as funding allows.

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.


Safety and Congestion

Neighbourhood Traffic Controls

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 on streets 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.
 

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 October 2002 Council approved the 2003-2005 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 2003 Engineering Basic Capital Budget, including submissions for:

Streets $ 21,210,000
Communications $ 715,000
Street Lighting $ 1,667,000
Sewers & Drainage $ 18,030,000
Waterworks $ 18,902,000
Yards $ 500,000
TOTAL $ 61,024,000

The General Manager of Engineering Services will report separately on the details of the 2003 Traffic Signal Program ($1,027,000) to the Standing Committee on Transportation and Traffic. Funding for the 2003 Traffic Signal Program is included in the 2003 Streets Capital Budget. The 2003 Basic Capital Budget, the first year of the 2003-2005 Capital Plan, allocates a portion of the Capital Plan funds approved by plebiscite in October 2002.

An amount of $2,428,000 has been approved by Council in advance of this report. The $2,428,000 is comprised of advances of $2,050,000 for Streets Infrastructure, $150,000 for sidewalk reconstruction, and $228,000 for speed bumps. 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 Streets 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) TransLink Funding Operating Maintenance and Rehabilitation $2,805,774

Funding from TransLink has increased for 2003 since TransLink was successful in securing new funding sources last fall. MRN funding for 2003 has been set at 85% of the total $12,000 per lane km. In 2002, MRN funding was 75% of $12,000. In 2004, we expect 100% funding.

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 quality standard. Currently only 8.5 lane km of the City's 549 lane kilometers MRN is below that standard and will only receive $7,000 per lane km of funding. In 1999, the city had 51 lane kilometres below standard, so considerable upgrading has happened over the past 3 years

The following table explains the impact on the Capital Budget:

2003 MRN funding

$ per lane km

Qualifying lane km

Operating

Capital

Operating & Main

$5,000 @85%

549

$2,333,250

$0

Rehabilitation

$5,000 @85%

540.5

$0

$2,297,125

Other OM&R

$2,000 @85%

549

$424,651

$508,649

Totals

$12,000

  

$2,757,901

$2,805,774

Capital Components of TransLink Funding

Rehabilitation $2,297,125

3) TRANSLINK Minor Capital $1,600,000

Under TransLink's definition, this category only includes new works, not replacement of improvements on the MRN that generally address congestion, safety, and capacity issues. TransLink will fund 50% of the cost of these projects including property acquisition. For 2003, TransLink funding has been tentatively approved for $20 million region wide, up from $15 million in 2002. Vancouver will be receiving approximately $1.6 million upon completion of the awarded projects. These funds will be matched for safety and intersection improvements at Hastings at Victoria and along the Clark-Knight Corridor 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 2003 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

This program, announced formally on January 19, 2001, was the subject of a report to Council on February 13, 2003. 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, six City projects have been awarded funding of $21,580,000. Council has approved a priority listing of 34 projects and we await word of new awards. Three of the six City projects awarded are for additional sewer separation and the city will receive $18.26 million for these three projects over the next three years. Staff estimate that the city will receive about $4 million of the $18.26 million in 2003.

2003 BASIC CAPITAL BUDGET PROJECT DETAILS

The 2003 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 2003 Traffic Signal Program ($1,595,000) is included in the 2003 Streets Capital Budget. The General Manager of Engineering Services will report separately on the details of the 2003 Traffic Signal Program to the Standing Committee on Traffic and Transportation.

A. STREETS 2003 Budget $ 21,210,000

The 2003 Streets Capital Budget is comprised of a number of programs, which address Council's Capital, CityPlan and Transportation Plan priorities. Adjustments have been made for the 2003 Basic Capital Budget to better address current needs. Funding requested for Transit and Safety has been increased above the 3 year average to better provide for the long lead-time on Arterial projects, while funding for major projects is not requested at this time, as the projects will not begin during 2003. A brief description of the Streets programs follows:

Infrastructure $3,920,000

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. Translink's funding of an MRN roadway only occurs if the street meets TransLink's minimum standard for pavement quality. As a result, a portion of the City funding in this category is being applied to upgrade those remaining substandard MRN streets, resulting in reduced funds being available for Non MRN arterial streets and local streets. Categories also included in this program are the Major Maintenance of City bridges, and Pavement Research, which for 2003 have modest requirements.

Pedestrians, Bicycles & Greenways $4,695,000

This program provides for pedestrian and cycling priorities. Funding needs for the construction of new sidewalks and curb ramps, and sidewalk reconstruction are addressed. Both of these areas include cost sharing with property owners, while some projects are 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.

Significant progress has been made in creating the City's Bicycle Network, with eighteen bikeways now part of this network. Vancouver's new bikeways have been effective in encouraging more people to cycle, and development of the network will continue in 2003 with construction of both the 10th Avenue, and Windsor Bikeways. Design and consultation will begin on some of the routes approved in the Downtown Transportation Plan, and enhancements will be carried out on some of the existing routes. The cost sharing and goals of the sidewalk program will be reviewed this year as directed by council.

Traffic Signals $1,595,000

This section includes funding of $1,120,000 for the proposed 2003 Traffic Signal Program which will install new traffic signals ($850,000) and modify existing traffic signals ($270,000). Details of this program have been reported separately to the Transportation and Traffic Committee. This section also contains funding for a program to renovate and replace existing traffic signal infrastructure ($475,000).

Transit & Safety Improvements $6,120,000

This program provides funding to address various transportation priorities to enhance transit and improve safety. The projects proposed in this category will include the Clark/Knight corridor, Bus Bulges, Hastings and Victoria LTB, and implementation of the Downtown Transportation Plan. The program also includes arterial local improvements, bus slabs and landings, and the Left Turn Bay Property Fund. Full 3 year funding for the Left Turn Bay Property Fund is being requested to take advantage of a number of needed properties that have recently been listed for sale.

Local Area Traffic Plans and Other Improvements $ 4,880,000

This program addresses the need for 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 2003, it is proposed that work continue to install pedestrian curb bulges at high priority locations identified with the help of the School Traffic Working Group, to increase the safety of the pedestrians. The City continues to receive requests from property owners to pave local area streets and lanes. Work is continuing on developing innovative, environmentally friendly designs.

B. COMMUNICATIONS 2003 Budget $ 715,000

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 2003 Capital Budget contains funding for the continuation of the Underground Cable Plant replacement and expansion programs.

C. STREET LIGHTING 2003 Budget $1,667,000

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 2003 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 2003, 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 2003 Budget $18,030,000 2003 Budget $18,279,000

The Sewers program includes the following:

System Replacement/Separation $17,190,000

The 2003 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, catch basins 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, environmental benefits and Liquid Waste Management Plan requirements. 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:

System Management $ 310,000

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 $ 530,000

This program funds other pollution abatement initiatives such as Liquid Waste Management Plan initiatives 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. This work helps the City to achieve the LWMP objectives and minimize 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 2003 this program will continue in other areas to compliment the main sewer separation program.

E. WATERWORKS 2003 Budget $18,902,000

The 2003-2005 Capital Plan is based on the Waterworks Long Range Plan (LRP), updated with the 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 Capital Plan and the 2003 Budget continue to address the major issues identified in the LRP and subsequent planning work.

The total funding for the 2003-05 Waterworks Capital Plan is $46 million. The 2003 Basic Capital Budget for Waterworks requires allocation of $18.9 million.

The 2003 Waterworks Capital Budget is composed of the following:

Aging Infrastructure Replacement $10,634,000

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 0.8% per year, down from 1.0% 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 $3,556,000

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 2003, $1.9 million of funding is provided for the transmission main project on 37th Avenue from Arbutus to Trafalgar. 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.

On September 27, 2002, Council approved an increase in the Waterworks Capital Plan allocation of $2.0 million (total of $46 million) to provide partial funding for the rehabilitation of the Queen Elizabeth Park Reservoir roof.

Emergency Planning, Water Quality and Other Works $4,712,000

The final leg of the currently approved scope of work for the Dedicated Fire Protection System will be built in 2003 on Sixth Avenue from McDonald to Cypress at a cost of $3.9 million. Ongoing components of this program include water quality projects, the installation and replacement of telemetry (monitoring) equipment, and engineering and site investigation in advance of capital projects.

F. YARDS 2003 Budget $ 500,000

Manitoba Work Yard Improvement Project

The 2003-05 Capital Plan budget for the Manitoba Works Yard Improvement Project is $2.765 million. Capital funding for the works yard improvements is being provided from two sources, $1.915 million from capital borrowing and $850,000 from the Utility Branches working out of Manitoba Yards, of which $420,000 is being appropriated from Waterworks Capital and $430,000 from the Solid Waste Capital Reserve.

For the 2003 fiscal year, funding of $1,350,000 is required. To limit the amount being borrowed upfront, the full Utilities portion of the project funding will be utilized for the 2003 capital budget with the remaining amount required, $500,000 to be secured from capital borrowing. The Waterworks funding is included in their 2003 Capital Budget submission and, in the 2003 Capital Budget Report, Council is being requested to approve the funding share from the Solid Waste Capital Reserve.

FUNDING

The funding shown in Table 1 for Streets, Communications, Street Lighting, and Yards is from borrowing authority approved by voters in the October 2002 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 2003 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)

Programs

2003-05 Funding

2003 Debenture Funding

Funds from Revenue

2003 Budget

Streets

$59,935

$21,210

$0

$21,210

Communications

$2,015

$715

$0

$715

Street Lighting

$5,060

$1,667

$0

$1,667

Sewers

$58,750

$18,030

$0

$18,030

Waterworks

$46,000

$18,902

$0

$18,902

Yards

$1,935

$500

$0

$500

TOTAL

$173,695

$61,024

$0

$61,024

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 Streets.. The transfer requiring Council approval is noted.

NOTE FROM CLERK:  Appendix 1 is not in electronic form - on file in the City Clerk's Office

Link to Appendix 2

cs20030515.htm

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© 2002 City of Vancouver