CITY OF VANCOUVER
ADMINISTRATIVE REPORT
Date: |
April 30, 2004 | |
Author: |
Annette Klein | |
Phone No.: |
873-7789 | |
RTS No.: |
4191 | |
CC File No.: |
1602 | |
Meeting Date: |
May 20, 2004 |
TO: |
City Services and Budgets Committee |
FROM: |
General Manager of Corporate Services/Director of Finance |
SUBJECT: |
2004 Supplementary Capital Budget |
RECOMMENDATION
A. THAT the projects identified as RECOMMENDED in Appendix 1 and totaling $1,000,000 be approved; source of funds to be the 2004 Supplementary Capital Budget.
B. THAT Council approve the allocation of $176,000 from the 2002 and 2003 Unallocated Building Management Capital, as outlined in Appendix 1, to fund: the replacement of water cooled AC unit at 312 Main (project 19); to improve access to and the replacement of the shutoff valve at City Hall Campus (project 10); and the replacement of a boiler at the VanCity Building (project 21).
C. THAT Council approve the allocation of $75,000 from Waterworks Capital to partially fund the provision of Fire Equipment related to the Dedicated Fire Protection System (project 24).
CITY MANAGER'S COMMENTS
The City Manager RECOMMENDS approval of the foregoing.
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 2004 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 2004 - 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 2004 allocation takes one third of this provision or $1 million.
DISCUSSION
Appendix 1 summarizes the submissions to the 2004 Supplementary Capital Budget that total $3.6 million. Details of these requests are included in
Appendix 2 entitled "Submissions to the 2004 Supplementary Capital Budget" (limited distribution).
Appendix 1 also summarizes the recommendations of the staff group that reviewed these requests. The staff group was composed of three departmental representatives, the Director of Budget Services with advise from the Director of Information Technology and the Director of Facility Design and Management. Each of the stakeholders who submitted requests for funding were invited to participate in the review meeting. Final approval of the recommendations was provided by the Deputy City Manager, the General Manager of Corporate Services/Director of Finance, the Director of Financial Planning. Departments were satisfied with the recommended allocation and the review group did not receive any appeals to the allocation.
The highest priority items are recommended for funding from the 2004 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, items are also submitted to Council for specific funding approval.
1. Comments on Projects Recommended for Funding
The following comments highlight the rationale related to the recommended funding levels of several projects submitted to the 2004 Supplementary Capital Budget as summarized in Appendix 1.
Supplementary Other
Capital Capital
Human Resources Renovation of Training Centre $140,000 n/a
The current training centre, which was relocated in 1999 from the second floor of City Hall to the sub-ground on an interim basis, is deficient for its current use. The original proposal from Human Resources was to fully renovate the area and combine staffing from Staff and Organizational Development. However, given the limited funding within Supplementary Capital, the project was segregated into phases. Funding is recommended for the first phase of renovations to improve utilization of the training centre. Future capital plans will consider the balance of the renovation requests of approximately $582,000.
City Clerk's Microfilm Office $60,300 n/a
Deficiencies were identified by the City's Occupational Health and Safety coordinator in the areas of air quality, workstations ergonomics and storage operations. Funding is recommended to bring this work area up to an appropriate health and safety standard.
Vancouver Police - Card Access System $68,000 n/a
Continuing with the Police Department's security program that was funded in both the 2002 and 2003 Supplementary Capital Budget, $68,000 from 2004 Supplementary Capital is recommended to install security card access systems in evidence and storage areas.
Vancouver Police - Forensic Crime Lab $87,000 n/a
Funding of $87,000 from Supplementary Capital is recommended to replace the hardware and software for the Police Department's Computer Forensic Laboratory that has become obsolete.
Vancouver Police - Storage Area Network $60,000 n/a
To increase the Vancouver Police Department's network storage which currently resides at VPD, Corporate IT will collate VPD with the City's storage area network rather than replacing the existing server at VPD. This will reduce the needed funding from $200,000 to $60,000 which is needed for expanding the City's server capacity to accommodate VPD.
Supplementary Other
Capital Capital
Vancouver Police - Ventilation and Fire Suppression $62,000 $50,000
As approved in the 2003 Supplementary Capital Budget, a study was conducted on the ventilation system at the Vancouver Police Department Forensic Investigations Area Property Office. Based on the results of the study, funding of $62,000 from Supplementary Capital is recommended along with $50,000 from 2003 Unallocated Building Management Basic Capital to tackle the highest priority safety issues which has been approved under Department Head authority.
Civic Theatres Capital Improvements $243,200 n/a
Two projects have been recommended for Civic Theatres. First, $125,000 is recommended to fund the replacement of the electrical substation at the Orpheum Theatre and $118,200 is recommended to fund the replacement of aged water piping at the Queen Elizabeth Theatre.
Fire and Rescue - Outfitting Equipment - DFPS $22,500 $75,000
The Dedicated Fire Protection System (DFPS), approved in 1992 and 1995 by Council, provides alternate pressurized water supply for fire protection in the event of an earthquake or other emergency. The Fire Department has identified a number of equipment requirements that were not included in the original DFPS capital project, which is now complete. The Fire Department scaled down their original request from $150,400 to $97,500 and alternate funding of $75,000 from Waterworks capital has reduced the Supplementary Funding requirement to $22,500.
Other Maintenance/Upgrade Projects $257,000 n/a
Finally, a number of Building Maintenance and Facility projects are recommended:
_ Shelving replacement at Marpole and Britannia Branch Libraries,
_ Replacement of shower piping and hot water tanks at Gathering Place,
_ Installation of an emergency generator at the Maritime Museum,
_ Renovation of the Engineering Department's Information Services office to provide additional work space and separate printing area, and
_ Replace the ventilation system at City Hall Daycare.
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 Basic Capital provision for Major Building Maintenance:
_ $60,000 - Replacement of water cooled AC unit - 312 Main (Unallocated 2003 Building Maintenance Capital)
_ $51,000 - Access to valve shut off - City Hall Campus (Unallocated 2002 Building Maintenance Capital)
_ 65,000 - Replace Boiler - VanCity Building (Unallocated 2002 Building Maintenance Capital)
_ $53,000 - Replacement of heat pumps at Gathering Place (Operating Budget)
b) The Vancouver Police Department included a number of information technology related requests which should be integrated with overall Corporate infrastructure technology needs in future years.
Appendix 3 provides a five-year history of the Supplementary Capital Budget approvals.
CONCLUSION
The 2004 Supplementary Capital Budget recommends the allocation of $1 million from the Basic Capital Budget to specific projects that are considered to be high priority for funding.
* * * * *
