ADMINISTRATIVE REPORT

                                           Date: April 21, 1997
                                           Dept. File No.
                                           CC File No. 5750-1

   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services

   SUBJECT:  Enhanced Canada-B.C. Infrastructure Works Program 


   RECOMMENDATION

        THAT Council endorse the prioritized list of transportation 
        projects and the Hastings Park sewer project in Appendix A, for
        submission to the Enhanced Canada - B.C. Infrastructure Works
        Program, and authorize staff to submit applications to the
        Provincial government.

   COUNCIL POLICY

   In 1985, Council endorsed the Federation of Canadian Municipalities
   (FCM) initiative to take steps to halt the significant decline in the
   condition of infrastructure in urban areas, placing emphasis on 
   maintenance and reconstruction as opposed to new construction, in
   partnership with senior governments.

   In 1993 and 1994, Council reiterated this position to the Federal and
   Provincial Governments, and noted the need for municipal involvement in
   the Management Committee reviewing projects for the Infrastructure Works
   Program.

   In 1995, Council again informed the Federal and Provincial Governments
   of the City s views regarding the Infrastructure Program, including a
   request to place more emphasis on municipal infrastructure and provide
   more timely project approvals.

   PURPOSE

   This report presents Council with an overview of recently released
   information on the Enhanced Canada-B.C. Infrastructure Works Program, 
   and recommends approval of a prioritized list of projects for submission
   to the program.

   BACKGROUND

   As part of the 1987-1990 Capital Plan, voters approved a $10 million
   borrowing plebescite for cost-sharing infrastructure improvements with
   senior governments.  In February 1994, agreements between the Provincial
   and Federal Governments were signed to start the first Canada-B.C.
   Infrastructure Works Program.  Funding totalling $675 million was made
   available in British Columbia.  Public works awards to the City were
   received for sewer separation ($12,000,000), left turn bays and arterial
   street realignment($1,350,000) and the Port Roadway/Transit Lane
   ($840,000).  The majority of this work has been completed.

   On January 6, 1997, the FCM forwarded a communique to Mayors in cities
   across Canada, informing them that the Federal Government had made an
   offer to the Provinces to extend the Infrastructure Program.  The
   communique also stated concerns that some provinces may hesitate or
   propose initiatives that do not address municipal needs.  Based on this
   communique and the City s own concerns, Council passed several motions
   regarding extension of the Infrastructure Program on January 28, 1997:

        THAT the Mayor write a letter to the Federal and Provincial
        Governments informing them that Council supported the
        Federation of Canadian Municipalities (FCM) resolution on
        renewal of the National Infrastructure Program;

        THAT the Mayor's letter to the Federal and Provincial
        Governments also reiterate the City s previous comments that
        there be municipal representation on the Management Committee
        reviewing projects submitted under the Infrastructure Works
        Program, that the only priority be for projects that replace
        existing, deteriorating municipal infrastructure, and that
        soft infrastructure projects be eliminated;

        THAT Council request the Union of B.C. Municipalities to
        provide the municipal representation on the Infrastructure
        Works Program management committee; and

        THAT the General Manager of Engineering Services report back
        to Council, in consultation with the Director of Finance, on
        details of the projects, and the source of the City s share of
        funding for projects.

   Accordingly, letters from the Mayor were sent to the Federal and
   Provincial governments, and the Union of B.C. Municipalities. 
   On March 25, 1997, the Minister for Transportation and Highways, the
   Minister for Municipal Affairs, and a delegation headed by the president
   of the Union of B.C. Municipalities (UBCM) met to discuss the terms and
   status of the Gederal Government offer to enhance the Canada-B.C.
   Infrastructure Works Program.  At this meeting, the ministers expressed
   concerns regarding the Federal Government s requirement that all
   projects be completed by March 31, 1998, and the limitations this put on
   the level of consultation that the UBCM would have preferred. 

   In anticipation that a new agreement would be signed shortly, and in
   acknowledgement of the very brief window for project construction, a
   Program Guide and Application Kit was forwarded to municipalities in
   advance (copy on file with the City Clerk).  This kit was received by
   the City on April 11th, and gives a deadline for submissions of April
   22nd.  It covers only the transportation component of the program.  The
   general content is similar to the original Infrastructure Works Program
   kit.

   On April 18th, a local newspaper article indicated that the signing of
   the agreement for the Enhanced Canada-B.C. Infrastructure Works Program
   would be announced later that day.  It also noted that $85 million or
   55% of the $155 million in program funding would be allocated to
   improving transit services ($25 million for new buses and $60 million to
   other transit improvements such as park-and-ride facilities and transit
   terminals).  Subsequently, the Mayor s Office received a News Release
   dated April 18, 1997 announcing that the top-up to the program had been
   signed.

   New information contained in the News Release includes the following:

      - projects already earmarked under the Province's expenditure
        plans will be accelerated to meet the requirement for completion
        in their 1997/98 fiscal year;

      - this phase will focus primarily on road and transit
        improvements;

      - projects will be reviewed by a committee with representation
        from both the Provincial and Federal governments;

      - proposed projects must be approved not later than December 31,
        1997;

      - there will be three components: (1)  Local  roads and cycling
        network, (2) Cultural and (3) Telecommunications and Transit;
        and
      - there is not a hard deadline for applications, but applicants
        should submit their information as soon as possible.

   The "local" roads component is the only component covered in the Program
   Guide and Application Kit that the City received earlier.

   DISCUSSION

   As with the original program, the Federal, Provincial, and local
   governments would each contribute one-third of the total program
   funding. Also, projects must represent new or accelerated investment,
   result in short term job creation, and develop physical infrastructure.

   The "local" roads guidelines note that the purpose of this component of
   the Infrastructure Works Program is "to assist municipalities in the
   construction of major roads by sharing the cost of new roads, additional
   traffic lanes on existing roads, and upgrading of existing poor standard
   roadways".  Further, funding will be available for major roads in the
   following order of preference:

      1.  Planned in accordance with Official Community and Regional
          Plans, containing a transportation component;

      2.  Planned in accordance with approved transportation network
          systems, where no Official Community or Regional Plan exists;
          and

      3.  Others which are determined to be of community wide
          significance and demonstrated necessity.

   Based on the guideline's emphasis on new construction, they still do not
   meet Council's intent with respect to giving top priority to the
   replacement of deteriorating municipal infrastructure.  This concern has
   been raised numerous times to Provincial and Federal Government
   officials over the last three years by both Council and staff. 
   Accordingly, it is disappointing to see that our requests have not been
   incorporated.

   Although the Program Guide and Application Kit that the City  received
   only considers the "local" road or transportation component of the
   Infrastructure Works Program, staff feel that a sewer reconstruction
   project in Hastings Park is also a very strong candidate for a potential
   project.  This project would help support the Park Board s plans to
   daylight a stream in the park, which has strong community support. 
   The projects listed in Appendix A take into account the program
   requirements with respect to completing all work by March 1998, the
   short notification received, other eligibility guidelines, and City
   priorities for infrastructure replacement.  The General Manager of
   Engineering Services recommends that Council endorse the prioritized
   list of transportation projects and the Hastings Park sewer
   reconstruction project.  Staff will be submitting the City s projects
   immediately after Council's approval, since the deadline is the same day
   as Council's meeting.  Staff will also be including two submissions from
   the Park Board in the package that is sent out.  These two projects are
   also noted in Appendix A for Council's information.

   FUNDING

   Guidelines for the enhanced Infrastructure Program state that funding
   for the municipal share of projects must be in excess of existing
   capital budgets or at least represent accelerated funding. A total of
   $296,000 in existing funding remains from the $10 million infrastructure
   borrowing authority approved as part of the 1987-1990 Capital Plan.

   Without knowing the details regarding all the components of the enhanced
   Infrastructure Works Program, and the exact amount of funding that would
   be needed, it is not possible to report any further information on
   funding at this time.  The Director of Finance indicates that any
   additional funding for new streets infrastructure projects would have to
   come from existing authorities.  This means that Council may have to
   make substitutions within the existing Capital Plan if the City s share
   of awards exceeds $296,000.

   Once details of all the components of the enhanced Infrastructure Works
   Program are known, and as project awards are received, Engineering
   Services, will report back on the details of funding, in consultation
   with the Director of Finance.

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                                                                 APPENDIX A




                                   SUMMARY -
            TRANSPORTATION PROJECTS & HASTINGS PARK SEWER PROJECTS

                   FOR ENHANCED INFRASTRUCTURE WORKS PROGRAM



   TRANSPORTATION

   1.  Commercial Drive Bus Bulges                                $ 300,000
   Installs bus bulges along the retail portion of Commercial Drive.  This
   project would improve bus service by eliminating the need for buses to
   merge in and out of traffic in this area.  It would also allow for wider
   passenger loading areas at stops, outside of the existing a sidewalk. 
   Among the benefits are greater flexibility in the design of bus
   shelters, and increased space on the existing sidewalks for pedestrians. 
   Accordingly, this would help promote transit use in the area, and
   improve pedestrian conditions along this retail strip.

   2.  Powell Street Pavement Reconstruction                      $ 700,000
   Reconstructs the pavement on Powell Street between Rogers Street and
   Commercial Drive.  This project will reconstruct the portion which has
   deteriorated past the point where normal maintenance is worthwhile. 
   This improvement will benefit goods movement to the Port and local
   businesses.  In addition, this section of street is also a transit
   route.                

   3. Traffic Signal Management System                           $1,000,000
   The first phase of the $3,000,000 upgrading of the Traffic Signal
   Management System (TSMS)was approved in the 1997 Capital Budget. This
   project accelerates the final phase to complete all upgrading of the
   TSMS this year. The new TSMS will provide improved service for
   pedestrian and cyclist signals, bus priority, emergency vehicles, and
   will be able to communicate with other lower mainland systems to help
   implement Transport 2021 strategies.

   4. Burrard Bridge Seismic Upgrading, Phase III                $3,100,000
   Completes the seismic upgrading of Burrard Bridge, which is a historic
   landmark and major access route to downtown.  This project would  bring
   the bridge approaches up to current seismic standards.  It would prevent
   the collapse of the concrete approach spans in a major earthquake.  
   This would be the last of the major seismic bridge upgrading projects
   for the City.  


                                                                      .../2



                                                        Appendix A - Page 2


   TRANSPORTATION (continued)

   5.  Downtown Historic Railway Streetcar                        $ 280,000
   Constructs a permanent building for display of the heritage streetcar
   leased by the City, provides further restoration of the streetcar,
   installation of an overhead trolley power system, drainage improvements
   and related improvements for pedestrian access from Leg in Boot Square
   and Granville Island. 

   6.  49th Avenue Pavement Reconstruction                        $ 540,000
   Reconstructs the pavement on 49th Avenue between Prince Albert and
   Windsor, and Sophia and Frederick. These two sections of 49th require
   reconstruction which will benefit transit usage along this route and
   east/west circulation in this area.


                                    TOTAL TRANSPORTATION        $ 5,920,000


   SEWER 

   1. Hastings Park Sewer Infrastructure Reconstruction $5,000,000
   Replaces the existing deteriorated combined sewer located in Hastings
   Park.  A new sanitary sewer would be constructed, while storm water
   would be directed to the original stream which would be opened up by the
   Park Board (see below).  Reconstruction would help reduce combined sewer
   overflows and City assessments for dry weather flows to Iona Sewage
   Treatment Plant.


   PARK BOARD

   1.  Hastings Park Biofiltration for Storm Water               $5,000,000
   This work would be done in connection with the sewer construction
   projects noted above and would complete day lighting of the old stream
   through the site.  The biofiltration system will collect and clean the
   storm water, such that the water entering the stream will be of very
   high quality. Re-establishment of the Hastings stream will provide
   long-term aesthetic and recreational benefits.  The local share of this
   project would be funded by the Park Board.

   2.  Stanley Park - Park Drive Road Resurfacing               $ 2,770,000

   Resurfaces the existing deteriorated road surface, and installs new curb
   and gutter, and sidewalks where needed, and provides additional
   wheelchair accessible transit stops.                   

       
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