Vancouver City Council

ADMINISTRATIVE REPORT

	Date:	April 27, 2004
	Author:	Mark Vulliamy
	Phone No.:	604.257-8461
	RTS No.:	04201
	CC File No.:	1602
	Meeting Date:	May 20, 2004

TO:	Standing Committee on City Services and Budgets
FROM:	General Manager - Parks and Recreation
SUBJECT:	2004 Park Board Capital Budget

RECOMMENDATION

A. THAT Council approve the 2004 Park Board Capital Budget of $20,593,000, including advance approvals and cost escalation transfers previously approved, outlined in Appendix A to this report. The source of funding includes:

· Capital Plan City Funding $14,306,000 ($11,276,000 from borrowing authority and $3,030,000 from Capital from Revenue);

· Other Funding sources $6,287,000 ($4,480,000 from City Wide Development Cost Levies for park development, $1,250,000 from Community Amenity Contribution provided by the Bayshore development and $557,000 from prior year capital transfer).

B. THAT Council approve the receipt of contributions totaling $487,850 from Community Centre Associations towards Park Board capital projects, as detailed in this report.

COUNCIL POLICY

Park Board's annual Capital expenditure requires Council approval.

BACKGROUND

Capital Plan

On October 8, 2003 Council approved the 2003 - 2005 Park Board Capital Plan totaling $45,500,000, plus $240,000 for debenture costs, derived from the following funding sources:

· Electorate-approved borrowing authority (including debenture costs): $18,690,000
· Capital from operating revenue: $7,500,000
· City Wide Development Cost Levy for park acquisition and development: $9,200,000
· SE False Creek Development for Mt. Pleasant Community Centre renewal: $2,000,000
· HEI Lease 2003 - 2005 for Hastings Park restoration: $1,350,000
· Waterworks Capital for QE Park Reservoir Roof Deck Plaza: $2,000,000
· Bayshore Development funds for Stanley Park Seawall upgrading: $2,000,000
· Matching Funds for Sunset Community Centre renewal (contingent upon
receipt of senior government funding): $3,000,000

On May 15, 2003, Council approved the Park Board's 2003 basic Capital Plan Budget of $8,080,000 and $4,000,000 in additional allocations, including $600,000 in donations from partner organizations of the Park Board to specified capital projects, for a total parks and recreation capital spending program of $12,080,000.

On February 24, 2004, Council approved allocation of $2,030,000 towards current Park Board Capital projects, in advance of the 2004 Capital Budget.

Adjustments to Capital Plan Funding

At its meeting of April 20, 2004, Council approved a number of adjustments to the 2003-2005 Capital Plan funding allocations, in order to address escalating construction costs on a number of major capital projects. The following adjustments were approved to the Park Board Capital Plan Allocations:

· reallocation of $695,000 of existing funding within the Park Board envelope as identified in Appendix A,
· reallocation of $680,000 of existing tax-supported funding for Park Enhancement and Playfields to the Queen Elizabeth Park Reservoir and Killarney Pool projects, and
· allocation of an additional $680,000 of City-wide DCL funds to the Park Enhancement ($385,000) and Playfields ($295,000) components.

At the April 20, 2004 meeting Council also approved funding for the grant to the Millennium Sports Facility project (subsequently confirmed at $1.1 million) from the $20 million of borrowing authority approved by the voters in 2002 for the City share of cost shared capital projects.
Previous Year Budget Allocation

The approved 2003 Park Board Capital Budget is shown in column E of the appended spreadsheet. These allocations enabled the following significant park and facility capital projects to be undertaken:

· Development of a new multipurpose room at the West End Community Centre from space previously leased as a restaurant.
· Design of the new Community Aquatic facility at Killarney and start of construction of the upgraded Renfrew Pool.
· Acquisition of property to complete the development of McGill Park.
· Resurfacing of the Stanley Park pay tennis courts.
· Upgrades to Sunrise, Kensington and Charleson Park grass playing fields.
· Playground upgrades at Portside, Kerrisdale and Delamont Parks.
· Neighbourhood park enhancement at Victory Square and Strathcona Parks.
· Design of the new plaza on the restored reservoir roof at Queen Elizabeth Park.
· Seawall repairs to reinforce the balustrade at the Coal Harbour entrance to Stanley Park.
· Park Drive resurfacing at the English Bay entrance to Stanley Park.
· Upgrading of Stanley Park sewer and water supply systems.

The Capital Plan expenditure allocated in 2003 was augmented by $600,000 in contributions to specific projects made by partner organizations to Park Board. The West End Community Association contributed $180,000 towards the creation of the new multipurpose room at the Centre. The Renfrew Community Centre Association committed $390,000 towards the rebuild of Renfrew Pool. The Meraloma Club matched the $30,000 allocation of the Park Board to enable a fire suppression system to be installed in Connaught Park Fieldhouse. These funds were included in the 2003 Capital Budget as approved by Council and the Board.

DISCUSSION

This report outlines a proposed 2004 Park Board Capital Budget for Council approval, and includes information on the effect of the cost escalation measures on the 2004 Budget for Council's information. This report also recognizes and seeks approval for the receipt by Park Board of contributions made by three community centre associations to capital projects at their respective facilities. All relevant figures with respect to this report can be found in the spreadsheet attached to this report as "Appendix A."

The proposed distribution of the 2004 Parks capital budget is outlined in Appendix A, Column H, which sums the original Capital Plan allocation proposed for this year and the adjustments and additions approved by Council last month in relation to project cost escalation measures. The net gain to the Parks Capital Budget is $680,000 in additional City-wide DCL funds.
The total budget advanced for Council consideration totals $20,593,000, with breakdown of funding sources as follows:

CITY FUNDING Total: $14,306,000
-Capital from revenue $ 3,030,000
-Debenture Funding $10,276,000

-Additional Debenture ($20 Million Fund)* $ 1,000,000

OTHER FUNDING Total: $6,287,000
-City-Wide Development Cost Levy $4,480,000
-Bayshore Development $1,250,000
-Transfer from previous Capital Plans $ 557,000

Highlights of proposed capital spending for 2004 are as follows:

· The $1,000,000 of Additional Debenture funding for the Sunset Community Centre rebuild will enable design development to proceed up to and including construction drawings. City funding of $3,000,000 was committed in 2002, contingent upon receipt of matching capital from senior governments to this project. A funding award of $4,000,000 from the Canada British Columbia Infrastructure Program was announced in October of last year.
· Funding for two synthetic turf field developments is proposed for the current year, following a public process and technical evaluation that has narrowed a list of potential sites from 58 to a current shortlist of five candidate locations. After further public review, a final selection of sites is expected to be made by the Park Board in June of this year.
· Approval to release the remaining allocation for Killarney Pool is sought in this year so that construction tender can proceed on a timely basis. With added Cost Escalation funds of $825,000, the project budget increases to $9,725,000.
· The proposed allocations for facility painting for 2004 and 2005 have been adjusted in accordance with the transfer of funds from this account to the Renfrew Pool upgrade, approved by the Board in November 2003.
· Neighbourhood park enhancement projects planned for the current year include an upgrade of Kingcrest Park, a second phase of Victory Square upgrading, and completion of a revised Master Plan for Everett Crowley Park.
· Remaining asphalt resurfacing Capital Plan funds are proposed for allocation in the current year to address major road repairs in Queen Elizabeth Park and Stanley Park and the asphalt replacement of the tennis courts at McBride Park.
· The Queen Elizabeth reservoir deck plaza project budget increases to $3,950,000 as a result of cost escalation funding of $550,000.
· Seawall upgrading received advance approval from both Board and Council, to enable foundation stabilization and path separation in the section between Lions' Gate Bridge and Second Beach.

In 2004, as in preceding years, some capital projects have benefited from contributions from Association partners. The details of contributions are outlined in Column I in Appendix A and summarized in the following table:

Park Board will continue to liaise with the Millennium Sport Facility Society and to monitor the development of their new facility on a site approved by Park Board in Nat Bailey Stadium Park. Construction is about to commence, with a total project budget of $4,750,000, including $1,100,000 in City funds approved by Council for this purpose, derived from the "$20 Million" Cost Sharing Projects Debenture Fund.

The remaining column in Appendix A, Column J, identifies the capital funds for allocation in 2005. These funds will be the basis of the Capital Budget reports to Board and Council next year, and are shown at this time for information only.

SUMMARY

Council is asked to approve the 2004 Park Board Capital Budget of $20,593,000, along with partner contributions to capital projects totaling $487,850, as outlined in this report. Information on 2003 Capital projects and Capital funds remaining for allocation in 2005 is provided for information.

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