CITY OF VANCOUVER
M E M O R A N D U M
From: CITY CLERK'S OFFICE Date:Feb. 16/96
Refer File: 1604-1
To: Vancouver City Council
Subject: 1996 Engineering Basic Capital Budget
Staff from Engineering Services will provide a brief presentation
on the above matter:
Introduction: Jim Hall
Budgets & Research Engineer
Streets: Don Brynildsen
Assistant City Engineer - Streets
Communications & Susan Clift, Acting City Engineer -
Street Lighting: Electrical Information Services
Water, Sewers & Tom Timm, Assistant City Engineer -
Yards Water, Sewers & Yards
The attached Administrative Report dated 13 February 1996,
refers.
CITY CLERK
:sr
ADMINISTRATIVE REPORT
Date : 13 February 1996
Dept. File No. H392-3
TO: Vancouver City Council
FROM: General Manager of Engineering Services
SUBJECT: 1996 Engineering Basic Capital Budget
RECOMMENDATIONS
A. THAT the 1996 Streets, Sewers, Waterworks, Street
Lighting & Undergrounding, Communications and Yards
Basic Capital Budgets, as reported here and detailed in
Appendix 1*, be approved with funding as shown in Table
2., with the Capital from Revenue portion subject to
approval of the 1996 Operating Budget.
B. THAT to maintain the City's sewer infrastructure
program for 1996 and to achieve environmental
improvements through the ongoing reduction and
eventual elimination of combined sewer overflows,
the borrowing authority be increased by $2.73
million, with an offsetting reduction from any
provincial revenue sharing which is received.
C. THAT the current shortfall in the 1994-1996 Waterworks
Capital Plan, due to a lack of funding contributions
from the GVRD and the Provincial Government, be
addressed for 1996 by deferring certain programs
totalling approximately $ 7.2 million, as noted in this
report.
D. THAT borrowing authority in the 1994-1996 Waterworks
Capital Plan be increased by $2.1 million, to reinstate
the dedicated pipeline construction program to the
level that was anticipated in the twelve year
implementation plan, which was reduced to fund the
additional costs that were previously reported for the
False Creek and Coal Harbour Pump Stations, and the
addition of the Grouse Mountain SCADA repeater
facility.
E. THAT the transfer of Capital Funds, as detailed in
Appendix 2. for Streets, Sewers, Street Lighting,
Traffic Signals and Undergrounding Capital closeouts,
be approved.
*LIMITED DISTRIBUTION (ON FILE IN THE CITY CLERK'S OFFICE) F .
THAT the public sewer connection fees for 1996 be increased
by approximately 3.9% as shown in Appendix 3.
G. THAT the estimated construction value amount in
Subsection 8.19,(b),(ii) of the Plumbing By-law, which
triggers the requirement for a new public sewer
connection for renovated buildings, be increased from
$65,000 to $95,000 to reflect similar increases in the
criteria used to estimate construction values.
H. THAT the Director of Legal Services be requested to
amend the Plumbing By-Law in accordance with the
approved recommendations in this report.
I. THAT the Mayor write to the Ministers of Environment
and Finance, encouraging the Province to continue to
contribute funding towards the City s sewer replacement
program, thereby aiding progress to eliminate combined
sewer overflows.
J. THAT $226,000 for Granville Bridge safety improvements
and $857,000 for Police Radio Console Replacement in
unused borrowing authority be carried over to the 1997-
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99 Engineering Capital Plan.
COUNCIL POLICY
In November 1993, Council approved the 1994-1996 Capital Plan
which set a level of funding for specific Capital programs over
those three years. Subsequently, voters approved borrowing
authority for the Public Works portion, excluding the Sewers and
Waterworks Capital Plans, which are approved by Council.
Funding from the Capital Plan is allocated to specific capital
programs through annual Capital Budgets. Funding for the annual
Capital Budgets is provided from a combination of borrowed funds,
as approved in the plebiscite, and revenue funds, with the
revenue portion being subject to approval of Capital from Revenue
in the Operating Budget. Council approval of the annual Capital
Budget is required before work can proceed on specific projects.
Closeouts of completed Capital projects, involving transfers of
more than $50,000 between Capital accounts, require Council
approval.
In June 1995, Council directed departments to use CityPlan to
guide policy decisions, corporate work priorities, budgets and
Capital Plans.
Major policies for Engineering Services Programs are summarized
below:
STREETS
BICYCLES / GREENWAYS
The Vancouver Comprehensive Bicycle Plan (1988), the
Clouds of Change Report (1990), the City-wide Bicycle
Network (1992) and the recent Greenways Program,
established the City's policy of promoting and
encouraging cycling as a transportation alternative.
On July 18th, 1995, Council approved the Vancouver-
Greenways Plan. This plan supports environmental
initiatives such as Clouds of Change and Council's top
transportation priorities (approved in CityPlan);
pedestrians and bicyclists. Greenways also addresses
the growing need on the part of communities to have a
voice in the design and use of the urban landscape.
SIDEWALKS
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 all streets in multiple
dwelling, commercial and industrial zones;
- in residential areas as requested by petition;
- adjacent to parks, schools and other exempt
property, as funding allows.
SAFETY AND CONGESTION
The City has a policy of improving safety at
intersections by constructing left-turn bays, subject
to a review of the design.
NEIGHBOURHOOD TRAFFIC CONTROLS
The City has a policy of protecting neighbourhoods from
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short-cutting with the installation of traffic controls
such as traffic circles, diverters, and right-in/right-
outs etc.STREET LIGHTING
The Safer City Task Force indicated the importance of
making people feel more secure and taking proactive
measures in providing appropriate street and bus
shelter lighting to protect people from violence. The
Infill Lighting program funds the improvements to low
levels of lighting on residential streets and bus
shelters.
SEWERS
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.
In 1981, the above-noted policy was reaffirmed with the
adoption of the 1% life cycle replacement policy for
sewer mains as part of the Sewers Long Range Capital
Plan.
Both of these policies were reaffirmed in the 1991
Policy Report on the Vancouver s Design and Service
Level Standards for Sewer Collection Infrastructure .
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 July, 1993, Council approved the 1994-1996
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, system capacity and fire
protection improvements, emergency preparedness, and
other works such as new water service installations.
Subsequent budgets have been similarly structured.
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.WATERWORKS
(continued)
In May 1995, Council approved revised funding for new
water services to single family and duplex residences
installing fire sprinkler systems, such that property
owners now fund 50% of the water service cost.
SUMMARY
This report provides Council with an overview of the 1996
Engineering Department Basic Capital Budget, including
submissions for:
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Streets $ 22,443,000
Communications $ 656,000
Street Lighting $ 1,474,000
Sewers $ 13,295,000
Yards $ 60,000
Waterworks $ 16,597,000
The General Manager of Engineering Services will report
separately on the details of the installation and updating
portion of the 1996 Traffic Signal Program to the Vancouver
Traffic Commission.
The 1996 Basic Capital Budget allocates all of the remaining
funds in the 1994-1996 Capital Plan approved by Council and
voters in the November 1993 plebiscite, with the exception of
$857,000 for Police Dispatch Console replacement and $226,000 for
Granville Bridge Safety Improvements, which are being carried
over to the 1997-1999 Capital Plan.
In addition, this report includes Capital account closeouts for
Streets, Sewers, Street Lighting, Traffic Signals and
Undergrounding.
Also discussed are funding difficulties being experienced in
Sewers and Waterworks:
- due to a lack of funding contributions from the Province s
Local Government Grant program for Sewers projects, we are
recommending that the borrowing authority in the 1994-96
Sewers Capital Plan be increased by $2.73 million, with an
offsetting reduction from any provincial cost-sharing which is
received, in order to maintain the City's sewer infrastructure
program for 1996.
- due to a lack of funding contributions from the Province s
Local Government Grants program and from the GVRD for
Waterworks projects, we are recommending $7.2 million worth of
Waterworks programs be deferred.
- due to increased costs for the False Creek and Coal Harbour
Pump Stations, and the addition of the Grouse Mountain SCADA
repeater facility, all of which have previously been reported
to Council, we are recommending that borrowing authority in
the 1994-96 Waterworks Capital Plan be increased by $2.1
million for the Dedicated Fire Protection System.
PURPOSE
This report provides Council with an overview of the 1996
Engineering Capital Budget and recommends its approval.
Streets, Sewers, Street Lighting, Traffic Signals and
Undergrounding Capital account closeouts, and funding
difficulties for Sewers and Waterworks, are also discussed.
LOCAL GOVERNMENT AND GVRD GRANTS
The 1994-1996 Capital Plan assumed Local Government Grant funding
of $9 million, or about $3 million a year, for Sewers and
Waterworks projects. Although annual awards for Sewer and
Waterworks projects between 1989 and 1992 averaged about $3.7
million a year, since 1993, we have not received any awards.
Annual awards for streets projects, between 1989 and 1992,
averaged about $1.4 million a year. Although the 1994-96
Streets Capital Plan does not assume any Local Government Grant
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funding for streets projects, any funding that was received would
have been used to provide additional facilities to serve
transportation needs supported by the Province. The City
received no Local Government Grant funding in 1993 and 1995. In
1994, the City received $600,000 in Local Government Grants for
four projects.
In early 1995 the City expressed concerns, to both the Minister
of Municipal Affairs and ministry staff, about the sudden drop in
funding from the Local Government Grant Program. However, to
date, there has been no announcement for applications for a 1996
program.
The 1994-1996 Capital Plan also assumed GVRD funding of $8.7
million for waterworks projects. This cost sharing was based on
regional benefits arising from improvements to the municipal
system. However the GVRD has stated that they are also facing
fiscal constraints, and that these projects are municipal issues.
Although the GVRD Board have offered to consider regional
projects that will also benefit the City, they have declined to
provide any cost-sharing funds for projects that were envisioned
in this Capital Plan.
In Waterworks, slightly less than half ($5.5m) of the $12.7
million 1994-96 Waterworks Capital Plan shortfall, caused by the
combined decrease in funding from the Province and the GVRD, was
dealt with in the 1995 Capital Budget by deferring work,
primarily in Transmission Mains and in the 650 Pressure Zone.
For the $7.2 million shortfall in 1996, we plan to defer further
transmission main projects. (see Table 1)
In Sewers, approximately half ($2.0 million) of the net 1994-1996
Sewers Capital Plan shortfall, caused by the decrease in
Provincial Government funding, was dealt with in last year s
Capital Budget. Council elected to replace $2.0 million of
anticipated Local Government Grant funding with funds from a $12
million Federal/Provincial Infrastructure grant for sewer work.
This decision allowed the City to maintain the sewer
infrastructure program through 1995. However, for 1996, a $2.73
million shortfall in Local Government Grant funding is
anticipated (see Table 1).
Strategies for dealing with the continuing funding shortfalls in
Sewers and Waterworks are discussed in the Project Details
section for these programs.
PROJECT DETAILS
The 1996 Engineering Basic Capital Budget includes six programs
which are summarized in this report, and described in detail in
Appendix 1. The programs are Streets, Communications, Street
Lighting and Undergrounding, Sewers, Yards, and Waterworks.
The funding for the 1996 Traffic Signal Program ($1,178,000) is
included in the 1996 Streets Capital Budget and details of this
program will be dealt with independently by the Traffic
Commission in early 1996.
This is the third year of a three year Capital Plan (1994-1996).
The Capital Plan is now somewhat less than originally approved,
as a result of the 1994 Budget Management Program approved by
Council. The 1994 Budget Management Program reflected a major
reduction in the Capital from Revenue portion of the Engineering
Capital Plan, totalling $4.04 million. This represented 80% of
the total reduction for all City Departments ($5.1 million).
The Streets Division was reduced by $3.55 million (70% of total)
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and the remainder was taken from the Electrical Division ($0.49
million).
In September 1995, Council approved the reallocation of
$1,269,000 from the 1994-96 Streets ($1.0m) and Communications
($.269m) Capital Plans to consultant contracts related to the
Emergency Operations and Communication Centre.
A. STREETS 1996 Budget $ 22,443,000
The 1996 Streets Capital Budget is comprised of a number of
programs which address Council's Capital and Transportation
Priorities. A brief description of the Streets programs
follows:
Infrastructure
$2,721,000
Includes reconstruction of arterial streets and local streets
which have deteriorated to the point where normal maintenance is
not effective. Also included in this category is the major
maintenance of City bridges, including seismic upgrading,
resurfacing, and other repairs.
Pedestrians and Bicycles
$2,811,000
Deals with the construction of new sidewalks and curb ramps, and
sidewalk reconstruction (both cost-shared with property owners,
and fully City funded). Cycling improvements include: the
completion of the Arbutus Street Bicycle Corridor, improvements
to the 7-Eleven Bike Route and provision for the new S.W. Marine
Drive Bike Route, which is the next stage of the Vancouver
Bicycle Network.
Traffic Signals $1,290,000
Renovate & Replace Plant ($ 112,000)
Includes ongoing replacement of traffic signal
infrastructure.
1996 Traffic Signal Program ($1,178,000)
Details of the 1996 Traffic Signal program, which includes
the installation and updating of traffic signals, will be
reported separately to the Traffic Commission by the General
Manager of Engineering Services.
Transit & Safety Improvements $
3,575,000
Enhances transit operations and reduces delays, and includes
other roadway changes to improve safety and reduce shortcutting
through neighbourhoods. The 1996 Capital Budget provides the
overall funding for this area and the individual projects are
reported to Council for approval after a public notification
process. Additional projects have been included in this area due
to extra funding provided through the Canada/B.C. Infrastructure
Program.
Local Area Traffic Plans and Other Improvements $4,337,000
Provides for the installation of neighbourhood traffic controls
and local improvements, by petition and initiative programs.
Major Projects
$7,623,000
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Provides funding for capital projects for the major bridges in
the City. In 1996, funding is required to fund anticipated
transportation improvements that will address safety and
neighbourhood concerns related to the Burrard Bridge, as outlined
in submission A-6b. The final decision on which option to
proceed with should be made by Council in early 1996. These
measures address safety concerns at the connection between
Burrard and Hornby at Pacific, eliminate traffic that shortcuts
through the False Creek North Community, address left turn needs
at the South End Connection and provide a connecting link for
cyclists and pedestrians between the south shore of False Creek
and Downtown. Although an option has not been selected by
Council for the Burrard Bridge upgrade, the funding provision is
sufficient to accommodate either option.
Funding for Granville Bridge Safety Improvements ($226,000) is
being carried over to the 1997-1999 Capital Plan, as a review is
currently underway to further enhance pedestrian safety at the
Seymour ramp which will require further adjustments.
B. COMMUNICATIONS 1996 Budget $656,000
The City's communications system is made up of Fire, Police and
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 1996 Capital Budget contains funding for the continuation of
the Underground Cable Plant replacement program.
The City is currently proceeding with plans for the Emergency
Operations and Communications Centre (EOCC). This centre will
provide a post disaster dispatch centre for Vancouver Police and
Fire daily operations, and an operations centre to direct
Vancouver s response to significant emergency incident or major
disaster. Existing communications systems would be relocated to
this centre. In September 1995, Council approved the
reallocation of $269,000 from the 1994-96 Communications Capital
Plan to consultant contracts related to this project. Funding
for the replacement of Police Dispatch Consoles ($857,000), which
could be part of the Police Dispatch Centre of the EOCC, is
being carried over to the 1997-1999 Capital Plan.
C. STREET LIGHTING & UNDERGROUNDING 1996 Budget $1,474,000
Street Lighting $1,349,000
As with all City infrastructure, the street lighting plant is
aging and many components are now past their estimated service
life. The 1994-1996 Capital Plan provides a comprehensive,
ongoing infrastructure replacement program for street lighting.
It emphasizes infrastructure replacement programs such as street
lighting poles, service panels and conduit. The Capital Plan
also addresses street lighting outages through rebuilding some
electrical connections and control panels.
Funding is provided for coordination of street lighting
relocations with other utility companies replacement programs,
the City's share of new lighting projects approved through the
local improvement process, and addressing local public safety
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concerns brought forward through both the Safer City Task Force
and community interaction.
Undergrounding $125,000
Overhead wiring and its associated poles, cross arms, platforms
and transformers are commonly considered a visual nuisance. This
program beautifies City streets, by contributing to the costs of
undergrounding existing overhead wires. The City s contribution
is usually 1/3, with the remainder shared equally between the
benefitting property owners and the utility companies.
D. SEWERS
1996 Budget $13,295,000
The significant relevant Council Policies are quoted in the
Council Policy section at the beginning of this report
The Sewers program includes the following:
System Replacement $12,495,000
Consists of the renewal of sewer mains, connections, manholes,
street drains 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, and environmental benefits.
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;
- it avoids crisis funding and spreads the cost of
Capital replacement works to taxpayers more evenly over
time,
- provides for continuous environmental improvements,
- maintains a stable, well trained workforce,
- maintains an adequate level of service in sewers by
providing for the ongoing, timely replacement of older
sewers and thus reducing the risk of sewer collapse and
sewage flooding of private residences and businesses,
- meets the City's combined sewer overflow (CSO)
management goal of gradual reduction and eventual
elimination over about 60 years.
The City's ongoing commitment to our sewer separation program has
been one of the key factors in the Province's support for our
approach to dealing with CSO's. It may also have been a
significant consideration in the Province's decision to stay
charges against the GVRD for ongoing CSO's at the Clark Drive
outfall.
As noted in the earlier section on Local Government and GVRD
Grants, the remaining funding in the Sewers Capital Plan is
insufficient, by $2.73 million, to maintain the sewer
infrastructure replacement program for 1996. Staff recommend
that Council authorize an increase in the Capital Plan and Sewers
borrowing authority by this amount.
The potential consequences if this increase is not approved
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include;
- a slow down in the sewer separation and CSO reduction
program,
- increased pressure to deal with CSO's in a more expensive,
short term manner,
- the need to shutdown one of our three main sewer
construction crews for the second half of 1996 and layoffs
of some staff who cannot be reassigned to other programs.
A further related recommendation of this report is that the Mayor
write to the Minister of the Environment and to the Minister of
Finance, encouraging the Province to continue to provide grants
towards the City's sewer replacement program.
System Management $300,000
Consists of projects, data collection and analysis to support
cost-effective capital work programs. The majority of the funds
in 1996 will be spent on video camera inspection of the system.
Pollution Abatement $500,000
Consists of pollution abatement projects such as the
Inflow/Infiltration Reduction Program and the Sewer Separation on
Private Property Program. Work in 1996 would include ongoing
development of City's sewer strategy, planning at the regional
level on the Liquid Waste Management Plan, and further pollution
reductions through inflow/infiltration work and sewer separation
on private property.
Sewer Connection Fees for 1996
Fees for public sewer connections are reviewed annually and
adjusted as necessary to reflect actual costs incurred in the
previous year as well as expected inflationary increases in the
next year. Accordingly, a fee increase of approximately 3.9% is
recommended for 1996 (refer to submission D13 in Appendix 1. and
Appendix 3. for details).
Plumbing By-Law Revisions - New Renovations
The City s Plumbing By-Law makes provisions for new public sewer
connections when new buildings are constructed or major
renovations are undertaken to existing buildings. Subsection
8.19,(a),(ii) of the by-law requires a new connection to be
installed if the estimated cost to renovate an existing building
exceeds $65,000 and the work involves other conditions as
outlined in the by-law. This amount is reviewed from time to
time and adjusted in accordance with changes the City uses in
estimating construction costs. To remain in line with current
construction cost estimating, an increase from $65,000 to $95,000
is proposed.
E. YARDS 1996 Budget $60,000
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The City's Engineering Yards, consisting of two major yards,
Cambie and Manitoba, along with 4 minor (district) yards, serve
as bases for providing essential public works and emergency
operations.
In 1996 funding will provide for repairs or replacement of
deteriorated aggregate storage bins at the South Vancouver
district yard.
F. WATERWORKS 1996 Budget
$16,597,000
The Waterworks 1994-1996 Capital Plan was approved by Council on
July 27, 1993, with increased annual expenditures compared to
past Waterworks budgets. This funding was intended to address a
number of significant deficiencies in the Waterworks system. The
1994-1996 Capital Plan is based on the Waterworks Long Range
Plan, which was an comprehensive three-year planning process
addressing immediate and long term water system replacement and
upgrading needs.
The first implementation phase of the Long Range Plan was planned
to be 8 years, but was extended to 12 years to reduce its
financial impact. In addition, quite generous Provincial Revenue
Sharing and GVRD contributions were assumed, to reduce the plan's
financial impact and to encourage senior governments to
participate in the programs. As noted below, the lack of
contributions to date has created some significant funding
issues. However, it should be recognized that the water system
is primarily a City responsibility, and we will need to address
any lack of outside funding, so that needed programs can proceed.
Although a number of projects were applied for under the Canada-
B.C. Infrastructure Program, none were approved.
The 1996 Waterworks Capital Budget is composed of the following:
Aging Infrastructure Replacement $8,400,000
This program consists of: replacement of pit cast iron, lined
cast iron and steel pipes; reconstruction of PRV stations which
control the water pressure in the City's eight pressure zones;
replacing water meters and service pipes that have worn out due
to corrosion; and replacing fire hydrants. This category also
includes construction of replacement transmission mains from
Second Narrows into the center of the City. Due to the lack of
outside funding, construction startup for this transmission
project was deferred until the next Capital Plan, and only minor
transmission main work is being undertaken in 1996.
Increased Capacity & Fire Protection Requirements $1,613,000
This program involves the replacement or extension of watermains
in various areas throughout the City to increase or maintain the
capacity of the system. During 1993 to 1995, substantial
upgrading work was undertaken in the 650 Pressure Zone, to
address existing deficiencies and accommodate redevelopment. In
1996, our efforts will focus on other fire protection
improvements which are now higher priorities than any additional
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work in the 650 Zone. In addition, our Storage and Transmission
Optimization review will be completed in 1996.
Drafting Stations $300,000
This program involves providing access to the Fraser River for
emergency water supply for fire fighting purposes.
Dedicated Fire Protection System (DFPS) $3,268,000
Previous Capital Budgets have funded the design and construction
of the False Creek and Coal Harbour pump stations and the final
design for the downtown portion of the high pressure distribution
pipe line system. The 1996 program proposes the construction of
a portion of the high pressure pipe line required to connect the
False Creek and Coal Harbour pump stations, the final design for
the Kitsilano pump station, and the supply of a second hose
tender support vehicle for the Fire Department. The intake
structure for the Kitsilano pump station will be delayed until
the 1997 Capital program, to offset the installation of the
second pump and engine at the Coal Harbour pump station, which
was advanced from 1997.
The 1995 Capital Budget submission noted that the 1994-96 Capital
Plan program was about $2.1 million over-expended due to the
increased final cost of the False Creek and Coal Harbour Pump
Stations and the addition of the Grouse Mountain SCADA repeater
facility, which had not been anticipated in the original scope of
work.
This additional funding is requested in 1996, beyond the existing
Capital Plan balance, to maintain the scope of work set out in
the twelve year implementation plan for the DFPS project.
Maintaining the original implementation plan will allow a
pipeline construction program that will be large enough to
attract effective construction pricing for this complex work.
This will be the first DFPS pipeline construction, hence each
incremental length of pipe line significantly enhances the
system's coverage and the value of the completed pump stations at
False Creek and Coal Harbour.
If pipeline funding is restored to the original level anticipated
during this Capital Plan, about two-thirds of the pipeline
required to connect the False Creek and Coal Harbour pump
stations will be constructed.
If the additional funding is not approved;
- The complete DFPS will not be fully implemented within
the original 12 year schedule,
- The areas served by the pump stations at False Creek and
Coal Harbour will be reduced until additional pipeline is
constructed following funding approval in the next Capital
Plan,
- Costs for the pipeline that can be built with the available
funding will likely be higher, on a per meter basis, because
of the smaller scale of the project.
The DFPS was originally envisioned as an 8-year project, based on
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desirable construction scheduling. This was extended to 12 years
for funding reasons. Extending this project to more than 12
years, however, will impact upon the availability of the
specialized design team and result in a construction program that
is sporadic and inefficient.
The addition of $2.1 million to the Waterworks Capital Plan would
represent a 0.6% increase in the City s water rates. The water
rates have already been set for 1996, however this addition can
be funded from the Water Rates Stabilization Reserve.
Water rates have been rising at a rate of about 10% per year for
the past several years due to increases in both the City s and
the GVWD s programs. They are projected to rise at a
significantly faster rate in future years, based on the GVWD s
long range Capital Plan and on our own ongoing review of the need
for expanded transmission and/or storage programs. Council may
wish to consider the issue of affordability of this funding
increase this year, but should also note that the demands for
Capital Expenditures over the next several years are likely to be
higher than this year.
Other Works
$2,900,000
The main components of this program include the installation and
replacement of telemetry (monitoring) equipment, construction and
replacement of mains prior to paving or on short notice, and
installation of new services and meters. The majority of funding
is for the installation of City funded services for new single-
family homes.
FUNDING FOR INFRASTRUCTURE REPLACEMENT/INCREASED CAPACITY
There are significant funding issues in Waterworks related to a
lack of funding contributions from the Province and the GVRD. The
Waterworks 1994-1996 Capital Plan assumed the receipt of
approximately $4 million in Local Government Grant funding and
$8.7 million from the GVRD. As noted in the Local Government and
GVRD Grants section of this report, we have not received any of
this funding. In the 1995 Capital Budget, we deferred about $5.5
million of work for the $12.7 million total shortfall, primarily
in transmission mains and in the 650 pressure zone (projects for
which we requested funding from the GVRD). For the $ 7.2
million shortfall remaining in the 1996 Capital Budget, we plan
to defer further transmission main projects.
FUNDING
As shown in Table 2, funding for Streets, Communications, Street
Lighting and Yards is partially from Operating Budget revenues
and partially from borrowing authority approved by voters in the
November 17, 1993 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.
CAPITAL CLOSEOUTS
Every year, Capital projects are reviewed to determine which ones
are complete and to identify accounts that can be closed out.
Closeouts of completed Capital projects involving transfers of
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$50,000 or more between Capital accounts require Council
approval. Appendix 2 provides a summary of the Streets, Sewers,
Street Lighting, Traffic Signals and Undergrounding closeouts,
including a calculation of their under and over expenditures,
respectively. The transfers requiring Council approval are
noted.
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