ADMINISTRATIVE REPORT
Date: March 11, 1997
Dept. File No. H392-3
CC File No. 1602-1
TO: Vancouver City Council
FROM: General Manager of Engineering Services
SUBJECT: 1997 Engineering Basic Capital Budget
RECOMMENDATION
A. THAT the 1997 Streets, Sewers, Waterworks, Street Lighting and
Communications Basic Capital Budgets, as reported here and
detailed in Appendix 1, be approved with funding as shown in
Table 1, with the Capital from Revenue portion, subject to
approval of the 1997 Operating Budget.
B. THAT the transfer of Capital Funds, as detailed in Appendix 2,
for Streets, Sewers, Traffic Signals and Yards Capital
closeouts be approved.
C. THAT the public sewer connection fees for 1997 be increased by
approximately 1.7% as shown in Appendix 3.
D. THAT the Director of Legal Services be requested to amend the
Plumbing By-Law in accordance with the approved
recommendations in this report.
COUNCIL POLICY
In November 1996, Council approved the 1997-1999 Capital Plan which set
a level of funding for specific Capital programs over those three years.
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.
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Closeouts of completed Capital projects whose expenditures exceed
$50,000 and 15% of the approved budgets, 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; and
- 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
short-cutting with the installation of traffic controls such
as traffic circles, diverters, right-in/right-outs, etc.
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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 , and have been reaffirmed
as part of every Capital Plan since, including 1997-99.
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 September 1996, Council approved the 1997-1999 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, replacement of
water services and meters, system capacity and fire protection
improvements, emergency preparedness, and other works such as
new water service installations.
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.
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SUMMARY AND PURPOSE
This report provides Council with an overview of the 1997 Engineering
Department Basic Capital Budget, including submissions for:
Streets $ 21,641,000
Communications $ 465,000
Street Lighting $ 1,540,000
Sewers $ 16,660,000
Waterworks $ 23,100,000
The General Manager of Engineering Services will report separately on
the details of the installation and updating portion of the 1997 Traffic
Signal Program to the Vancouver Transportation & Traffic Committee.
The 1997 Basic Capital Budget allocates approximately one-third of the
funds in the 1997-1999 Capital Plan approved by Council in November
1996.
In addition, this report includes Capital account closeouts for Streets,
Sewers, Traffic Signals and Yards, as detailed in Appendix 2.
CANADA/B.C. INFRASTRUCTURE PROGRAM EXTENSION
The City has received notice from the Federation of Canadian
Municipalities that the Federal government has made an offer to the
Provinces to extend the Canada Infrastructure Works Program through $425
million in new federal funding. About $50 million of this federal
funding could be expected to go to British Columbia. With the
Provincial and local governments each contributing their one-third
share, this would provide $150 million in total funding for our
province. This compares to $675 million in total funding that was
provided for the current program. Preliminary details of the proposal
to extend the Infrastructure Program were reported to Council on January
28, 1997, in the General Manager of Engineering Services report titled
"Canada Infrastructure Works Program Extension".
With the current Infrastructure Program, Vancouver received awards for
$14 million dollars in transportation and sewers (hard infrastructure)
projects. One of the key requirements in the guidelines for this
program is that the municipal share of projects must be in excess of
existing capital budgets or at least represent accelerated funding.
Accordingly, the City s one-third share of our awards was funded through
a special $10 million dollar infrastructure borrowing authority. The
City s share of funding for an extended program would be subject to a
report back to Council.
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PROVINCIAL GOVERNMENT GRANTS
The 1997-1999 Capital Plan assumed no Local Government Grants from the
Provincial Government for Streets, 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. The City received no Local Government Grant
funding in 1993, 1995 and 1996. In 1994, the City received $600,000 in
Local Government Grants for four projects.
In 1995 and 1996 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 1997 program.
In 1996, the City received $938,000 in Provincial grants under the
Cycling Network Program. These grants are allocated to projects such as
the Cypress Street Bike Corridor, upgrading the BC Parkway/7-11 Bike
Route, the 37th Avenue Bike Route, the Kent Avenue Bike Route and four
other projects in the City s Cycling Network Program. Due to the
uncertainty of this funding in the future, only $500,000 in Cycling
Network Program funding was assumed for the 1997-99 Capital Plan.
PROJECT DETAILS
The 1997 Engineering Basic Capital Budget includes five programs which
are summarized in this report, and described in detail in Appendix 1.
The programs are Streets, Communications, Street Lighting, Sewers and
Waterworks.
The funding for the 1997 Traffic Signal Program ($3,655,000) is included
in the 1997 Streets Capital Budget and details of this program will be
dealt with independently by the Transportation and Traffic Committee in
early 1997.
This is the first year of the 1997-1999 Capital Plan.
A. STREETS 1997 Budget $ 21,641,000
The 1997 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 $3,225,000
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 concrete repairs and joint replacement.
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Pedestrians, Bicycles & Greenways $4,131,000
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: bikeway links along
Heather Street and Lakewood Drive, extension of the 37th Avenue
Greenway/Bikeway and the development of the Kent Avenue Bike Corridor.
This program also includes further development of the City Greenway
Network.
Traffic Signals $3,655,000
Renovate & Replace Plant $ 500,000
Includes ongoing replacement of traffic signal
infra-structure.
1997 Traffic Signal Program $ 720,000
Details of the 1997 Traffic Signal program, which includes the
installation and updating of traffic signals, will be reported
separately to the Transporta-tion & Traffic Committee by the
General Manager of Engineering Services.
Traffic Signal Management
System Upgrade (phase 1) $2,000,000
This is the first phase of a two-year phased implementation of
upgrading the Traffic Signal Management System. Upgrading will
allow for the expansion of the TSMS to control 1,200 traffic
signals and allow flexibility in signal controls to service
responses to pedestrian and cyclist service calls, bus
priority pre-emption for HOV lanes, designated route
pre-emptions for emergency vehicles, and allow for the ability
to communicate with other systems in the Lower Mainland.
Modifications to Existing Signals $435,000
Includes modifications, upgrading and retrofitting exist-ing
traffic signals, including pedestrian indicators, audible
signals and left-turn phasing.
Transit & Safety Improvements $3,245,000
Projects in this section deal with implementing HOV Lanes and left-turn
bays to enhance transit operations and reduce delays, and also includes
other roadway changes to improve safety and reduce shortcutting through
neighbourhoods. A major transit corridor such as Main Street or Fraser
Street will be chosen for the construction of bus bulges and other
measures to improve transit travel time. The 1997 Capital Budget
provides the overall funding for this area and the individual projects
are reported to Council for approval after a public notification
process. Also included in this program are arterial local improvements,
bus shelters and bus slabs and landings.
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Local Area Traffic Plans
and Other Improvements $4,285,000
Provides for the installation of neighbourhood traffic controls and
construction of streets and lanes by Local Improvements petitions or
initiatives.
Major Projects $3,000,000
Provides funding for capital projects in the City. In 1997, funding is
required to fund the purchase of the CP Rail False Creek Corridor for
the Downtown Heritage Railway.
B. COMMUNICATIONS 1997 Budget $465,000
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 1997 Capital Budget contains funding for the continuation of the
Underground Cable Plant replacement and expansion programs. Also
included is funding for the replacement of parts of the City Hall
switchboard.
C. STREET LIGHTING 1997 Budget $1,540,000
As with all City infrastructure, the street lighting plant is aging and
many components are now past their estimated service life. The
1997-1999 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 concerns brought forward through both the
Safer City Task Force and community interaction.
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D. SEWERS 1997 Budget $16,660,000
The Sewers program includes the following:
System Replacement $15,540,000
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; and
- 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 the 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.
System Management $210,000
Consists of projects, data collection and analysis to support
cost-effective capital work programs.
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D. SEWERS (continued)
Pollution Abatement $610,000
Consists of pollution abatement projects such as the Inflow/Infiltration
Reduction Program and the Sewer Separation on Private Property Program.
Work in 1997 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 1997
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 1.7% is recommended for 1997 (refer to
submission D-1, Part 3 in Appendix 1 and Appendix 3 for details).
E. WATERWORKS 1997 Budget $23,100,000
The Waterworks 1997-1999 Capital Plan was approved by Council in
September 1996, 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 1997-1999
Capital Plan is based on the Waterworks Long Range Plan (LRP), updated
with our more recent Storage and Transmission Optimization (STOR) work.
Implementation of the Long Range Plan was initially planned to be 8
years, but was extended to 12 years to reduce its financial impact.
Subsequent coordination with the GVRD, through the STOR project, has
also resulted in deferral of the storage (reservoir) project envisioned
in the LRP to begin construction during this Capital Plan. The
1997-1999 Capital Plan reflects this change and proposes watermain
projects which are required independent of whether or not the city
ultimately builds its own emergency storage facilities. The results of
our STOR study will be reported to Council during 1997.
The 1997 Waterworks Capital Budget is composed of the following:
Aging Infrastructure Replacement $12,100,000
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. In combination with other programs, this work results in a
replacement rate of about 1.5% per year, as necessitated by system
aging.
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E. WATERWORKS (continued)
Addressing Growth $3,300,000
This program involves the replacement or extension of transmission mains
in various areas throughout the City to address pressure and fireflow
problems, due to historic and continuing City and Regional growth.
Funding is also included for cost-shared distribution system
improvements to accommodate specific developments' local water system
improvements.
Emergency Planning $6,100,000
The majority of funding in this category is for the Dedicated Fire
Protection System (DFPS). Previous Capital Budgets have funded the
design and construction of the False Creek and Coal Harbour pump
stations and the design and construction of the first portion of the
downtown high pressure distribution pipe line system. The 1997 program
proposed the construction of the remaining one-third of the high
pressure pipe line required to connect the False Creek and Coal Harbour
pump stations, site selection and design for the Kitsilano pump station,
and engineering review of the DFPS distribution system design prior to
proceeding with the next phase, and the supply of a third hose tender
support vehicle for the Fire Department.
The DFPS was originally envisioned as an 8-year project, beginning in
1992, based on desirable construction scheduling. This was extended to
12 years for funding reasons.
Minor funding is also included in this category for the evaluation and
development of other alternative water supplies such as groundwater
sources, and access to Fraser River water.
Other Works $1,500,000
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. As of this year, new water
services are funded by the City only when they are required for
residential fire sprinkler installations for secondary suites. This has
reduced the "New Services and Meters" portion of the budget from $1.75
million/year (1996) to $600,000 (1997). Since the preparation of the
1997-99 Waterworks Capital Plan, $600,000 in funding has been
reallocated from PRV Stations to the Discontinuing of Old Water Services
section of New Meters & Services in recognition of reduced revenues
from discontinuing old services.
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FUNDING
As shown in Table 1, funding for Streets, Communications and Street
Lighting is partially from Operating Budget revenues and partially from
borrowing authority approved by voters in the November 16, 1996
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.
There are several projects contained in the 1997 Engineering Capital
Budget, such as bike routes, traffic signals, neighbourhood traffic
plans, etc., that will require various forms of maintenance in the
future. Increases that may be required to the Engineering Operating
Budget for these maintenance items will be identified with the
individual projects as they are reported to Council.
TABLE 1
000'S DOLLARS
Program 1997-99 1997 Remaining 1997 Funding From
Funding Budget Funds Borrowing Revenue
Streets $ 55,980 $21,641 $ 34,339 $18,641 $ 3,000
Communications $ 960 $ $ 495 $ 465 $ 0
465
Street Lighting $ 4,373 $ 1,540 $ 2,833 $ 1,540 $ 0
Sewers $ 49,717 $16,660 $ 33,057 $16,660 $ 0
Waterworks $ 74,100 $23,100 $ 51,000 $23,100 $ 0
Total Engineering $185,130 $63,406 $121,724 $ 60,406 $ 3,000
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 between Capital accounts
of $50,000 and 15% of the budget, or more, require Council approval.
Appendix 2 provides a summary of the Streets, Sewers, Traffic Signals
and Yards closeouts, including a calculation of their under and over
expenditures, respectively. The transfers requiring Council approval
are noted.
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APPENDIX 3
Sewer Connection Fee Increases for 1997
Current
Recommended
Fee Fee - 1997
Public Sewer Connection Fees for
One & Two Family Dwellings........... $ 4,240 $ 4,310
Public Sewer Connection Fees for
other than One & Two Family
Dwellings:
4 inch/100mm Diameter............. $ 5,540 $ 5,630
6 inch/150mm Diameter............. $ 6,680 $ 6,800
8 inch/200mm Diameter............. $ 7,560 $ 7,690
10 inch/250mm Diameter............ $ 8,730 $ 8,880
12 inch/300mm Diameter............ $ 9,920 $10,090
15 inch/375mm Diameter............ $11,090 $11,280
Manhole installed in conjunction
with a Public Sewer Connection........ $ 3,330 $ 3,390
Connections greater than
15 inch/375mm Diameter................ $11,090 $11,280
New Fittings - Twin Sewer............. $ 2,050 $ 2,080
New Fittings - Single Sewer........... $ 890 $ 910
Inspection fee for Connection
to a Public Sewer..................... $ 115 $ 120
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