A8 ADMINISTRATIVE REPORT Date: April 24, 1996 Dept. File No. SA TO: Vancouver City Council FROM: Director of Finance SUBJECT: 1997-99 Capital Plan Process - CityPlan, Staff Review Group, and Public Information Program RECOMMENDATION A. THAT Council approve the establishment of a Capital Plan staff review group, including the proposed membership, as further described in this report, and that the staff review group be instructed to report back to Council in early July with a short-list of recommended projects to be included in the City's 1997-99 Capital Plan. B. THAT Council approve the proposed Public Information Program as further described in this report, and the Director of Finance be instructed to report back to Council with further details and a suggested budget for the Public Information Program. GENERAL MANAGER'S COMMENTS The General Manager of Corporate Services RECOMMENDS approval of A and B. COUNCIL POLICY The City's present policy is to plan for capital expenditures on a three-year cycle. Funding for Capital expenditures comes from a mix of borrowed funds, cost-sharing from senior levels of government (e.g., conditional revenue sharing grants) and a contribution from the Operating Budget (pay-as-you-go financing). The borrowing of funds (except for borrowing for sewer and water purposes) requires approval of the voters through a capital plebiscite. The plebiscite usually takes place at the same time as the civic elections. In past plans, Council has appointed a staff group to review capital project submissions and make recommendations to Council on the composition of the Plan. On June 6, 1995, City Council adopted CityPlan: Directions for Vancouver as a "broad vision to guide policy decisions, corporate work priorities, budgets, and capital plans." PURPOSE This report recommends the creation of a Staff Review Group to review capital project submissions and make recommendations to Council on the Plan content, describes how CityPlan directions will be addressed in the submission and review process, and proposes a public process to inform the public on the process and elicit their comments on Plan priorities. BACKGROUND In terms of the City's 1997-99 Capital Plan, Council has already taken the following actions: - Agreed on a Capital Plan development schedule. - Agreed on a three-year term for the plan. - Agreed that the Capital Plan borrowing plebiscite would be held at the same time as the 1996 civic elections. - Agreed on three categories for project submissions to the plan. - Category A - projects that maintain existing capital plant, address safety and security concerns, and mandated environmental improvements. - Category B - projects that maintain existing service levels and remedy service deficiencies. - Category C - projects that increase service levels, provide new services, beautification, and non-mandated environmental improvements. - Agreed on a financial ceiling for the 1994-96 Capital Plan of $175 million. - Approved an allocation equal to 14% of the financial limit ($24.5 million) to the Park Board with report back in June with details of their proposed Capital Plan. - Approved a maximum allocation of $5 million to Supplementary Capital budget. - Approved a maximum allocation of $5 million for affordable housing. - Instructed departments to use CityPlan directions to guide capital plans. This present report deals with the relationship of the Capital Plan with CityPlan, the establishment of a staff review group, and a public information program. All three will set the stage for the next phase in the process of developing the final content of the 1997-99 Capital Plan. DISCUSSION 1. Relationship of CityPlan to the Capital Plan City Council approved CityPlan in June 1995 and instructed departments to use CityPlan directions to guide policy decisions, corporate work priorities, budgets and capital plans. A major theme of the CityPlan direction on Financial Accountability is that the City should re-direct rather than increase spending to achieve CityPlan directions. The 1997-99 Capital Plan process is the first opportunity for the City to consider capital expenditures within the CityPlan framework. For many staff who are preparing or reviewing Capital Plan submissions this will also be their first encounter with CityPlan directions "in action". For all of us it will be a challenge to go through a fairly familiar process with a new road map. In each step of the Capital Plan process, from the formulation and submission of project ideas to establishing priorities to communicating with the public to the decision on what goes into the final plan, CityPlan directions will be considered. 2. Establishment of a Staff Review Group As a matter of policy and practice, City Council has relied on the recommendations of staff review groups to assist its decisions on the content of past Capital Plans. In terms of the City's 1997-1999 Capital Plan, we are proposing that a staff review group again be established for that purpose. The terms of reference for this group will be to review capital project submissions in the three categories previously approved by Council and make recommendations on a short-list of projects for inclusion in the Plan. In the past, the staff review group has been comprised of representatives of the major departments directly involved with Capital Works, and with Finance in an advise and guide role. The proposed membership of the staff review group is set out below. The department heads of the participating departments will be responsible for assigning a staff member to the review group. Financial Services staff will also provide financial analyses and historical research services to assist the review group. - City Manager - Deputy City Manager - Engineering Services - General Manager - Corporate Services - Director of Finance - Public Safety - Chief Constable - Community Services - Manager of Non-Market Housing - Park Board - General Manager - CityPlan - Director of CityPlans It is expected that the staff review group will commence its meetings in mid-May and conclude its deliberations with a short-list of recommended capital projects by mid-June, for Council consideration and community review in early July. 3. Proposed Public Process As in the previous 1994-96 Capital Plan process, there will be a public information and consultation program. In the CityPlan section on Financial Accountability, it states that there should more opportunities for citizens to participate in setting City budget priorities and selecting projects for Capital Plan consideration and more information provided on the nature and location of City spending. Staff will be exploring a variety of options for providing public information about the Plan and input to the Capital Planning process. These include the use of newspaper advertising, the Internet, and community television. The objective would be to provide the public with information about the financial limitations in the Plan, the kinds of projects that are proposed, and the difficult decisions that are required in developing a final plan. In this process, the public will have opportunities to ask questions, discuss proposed projects and provide comments to Council through a public opinion survey, public meetings, the Internet, and mail and fax-in questionnaires. Council will consider this input prior to finalizing the Plan in September. Once the Plan has been finalized the content will be communicated to the public through a pre-election information process involving print and electronic media. Further details on the public process and a budget will be presented to Council in early July when the Staff Review Group reports back on the submissions to the Plan and their recommended Plan. SOCIAL IMPLICATIONS The 1997-99 Capital Plan will be guided by the CityPlan directions which encompass a range of social considerations. While CityPlan says that spending should be re-directed rather than increased, there is also a clear message from people that they supported spending on services such as subsidized housing, parks, crime prevention and improved transit. Staff will be commenting how the various project submissions relate to CityPlan. CONCLUSION This report comments on the relationship between CityPlan and the Capital Plan, recommends that a Capital Plan staff review group be created to review submissions and make recommendations to Council on the content of the City's 1997-99 Capital Plan. The report also proposes a public information program. * * * * *