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                                                        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.





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     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.



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