A2 ADMINISTRATIVE REPORT Date: October 10, 1996 Dept. File No. 1.40.96.08 To: Vancouver City Council FROM: General Manager of Engineering Services SUBJECT: Reallocation of Waterworks Capital Funding RECOMMENDATION THAT Council authorise the transfer of $1.06 million from the 1996 Waterworks Transmission Replacement program into other Waterworks capital programs as follows: Amount Program $800,000 Pit Cast Iron Pipe Replacement $260,000 Lined Cast Iron Pipe Replacement COUNCIL POLICY Transfers to/from approved capital accounts over $50,000 must be approved by Council. PURPOSE The purpose of this report is to seek Council s approval to transfer $1.06 million out of the Transmission Main Replacement program into other Waterworks capital programs, distributed as specified in the aforementioned Recommendation. BACKGROUND As the 1994 to 1996 capital plan comes to an end, a timing issue has come to light. Two twelve inch diameter watermains are planned for Clark Drive (one on each side of the road) from Franklin to Venables as part of the 1996 capital construction program. These watermains are being installed as the final step in replacing a worn out 24-inch transmission main, and construction is being co-ordinated with current sewer construction on Clark Drive. However, the sewer construction has been delayed by approximately 3 months and will not be complete until mid-December 1996. - 2 - The delay requires one of the following actions: A. Watermain construction could start before sewer construction is complete. This would be an awkward situation with two crews working right on top of each other. It is unlikely that either the sewer work or the water work would be cost effective under this circumstance. B. The construction of the Clark Drive watermains could be delayed until early 1997 and the capital budget could be reorganised accordingly. There is enough capital funding remaining to keep both of the watermain construction crews working for the remainder of 1996, but the funds are assigned to specific programs. Approximately half of the remaining capital funding for watermain construction is dedicated to the Transmission Main Replacement program and there are no other transmission projects that can be scheduled before the end of 1996. However, there are several projects in the Pit Cast Iron Replacement and the Lined Cast Iron Replacement programs that can be constructed this year if $1.06 million is transferred from the Transmission Main Replacement program. The Clark Drive watermains would be funded by increasing the 1997 Transmission Main Replacement program s budget submission by $1.06 million. The Pit Cast Iron Replacement and Lined Cast Iron Replacement programs budget submissions for 1997 would be lowered by $800,000 and $260,000 respectively, resulting in no increase to the 1997 capital budget. Engineering Services believes that the second approach would be more efficient, and is consistent with our overall infrastructure replacement strategies. * * * * *