SUPPORTS
ITEM NO. 2
CS&B COMMITTEE AGENDA
MAY 15, 1997
ADMINISTRATIVE REPORT
Dated: May 1, 1997
C.C. File No. 1602-1
TO: City Services and Budgets Committee
FROM: Director of Finance
SUBJECT: 1997 Supplementary Capital Budget
RECOMMENDATIONS
THAT the civic projects, identified as Recommended in Appendix 1
and totalling $1,200,000, be approved, with funding from the 1997
Supplementary Capital Budget.
GENERAL MANAGER COMMENT
The General Manager of Corporate Services RECOMMENDS approval of
the foregoing.
COUNCIL POLICY
On March 28, 1995, Council approved funding for the replacement of
Police handguns at a cost of $1.3 million to funded in 1995, 1996 and
1997 from Supplementary Capital. The 1995 and 1996 allocations totalled
$877,000. The balance necessary to complete the program in 1997 is
$400,000.
On May 8, 1997 Council allocated $1.6 million in funding from the
Operating Budget (Capital from Revenue) to the 1997 Supplementary
Capital Budget.
PURPOSE
The purpose of this report is to review the requests for funding from
the 1997 Supplementary Capital Budget and to forward the recommended
projects to Council for approval.
BACKGROUND
Capital Plans normally provide for two types of funding.
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- Basic capital provides for those projects and on-going programs that
can be planned in advance,
- Supplementary Capital deals with expenditures of a capital nature
that arise during the three year duration of a Capital Plan.
Supplementary Capital has also been utilized as a source of funding
for several on-going capital maintenance programs, including the roof
replacement and asbestos control programs.
The 1997-1999 Capital Plan includes $5,000,000 in funding from the
Operating Budget for allocation to Supplementary Capital needs. The
1997 portion of that funding, totalling 1,600,000 is to be allocated as
part of the 1996 Supplementary Capital Budget.
DISCUSSION
The following table summarizes the approved funding level for
Supplementary Capital, the funding from this allocation that Council has
approved in advance, and the balance available for allocation to new
funding requests in 1997:
1997 Supplementary Capital $1,600,000
Advance Approvals:
Police Handgun Replacement $400,000
Balance Available $1,200,000
Appendix 1 summarizes the submissions to the 1997 Supplementary Capital
Budget which total $3,274,200. Details of these requests are included
in Appendix 3 entitled Submissions to the 1997 Supplementary Capital
Budget (limited distribution).
Appendix 1 also includes the recommendations of the Director of Finance
regarding the Supplementary Capital Budget requests. These
recommendation follow from a consultation with affected departments and
reflect an attempt to allocate scarce resources among a longer list of
requests. The recommendations also give consideration to priorities
based on Council policy and previous decisions, and on a judgment of
City needs.
Appendix 2 includes the comments on several of the specific projects
submitted to the Supplementary Capital Budget.
Appendix 4 provides a five year history of Supplementary Capital Budget
approvals.
* * * * *
Comments on the Submissions to the
1997 Supplementary Capital Budget
Details of the submissions to the 1997 Supplementary Capital Budget are
included in Appendix 3 (limited distribution). The following comments
highlight the issues related to the recommended funding levels of
several projects submitted to the 1997 Supplementary Capital Budget.
Many of the submissions to the Supplementary Capital Budget were beyond
the mandate of this budget, relating instead to the need for capital
improvements to City facilities which are more appropriately funded
elsewhere. These included the following items:
A-1 Roof Replacements-Old Continental $0
A-14 Non Market Housing- Non Market Housing Upgrades $0
Staff have been asked to address the needs of the Old Continental
and the Gresham Hotel, plus the issue of an appropriate funding
source, in separate Council reports.
A-5 City Hall - Fire Alarm Upgrade $0
This project was referred to the 1997-1999 Capital Plan as part of
the 1996 Supplementary Capital Budget process. Funding was
provided in the Capital Plan to undertake significant upgrading
projects in the City Hall Precinct and it is recommended that this
project be considered from that source.
A-7 Central Stores - Seismic Bracing of Shelving $0
Fund from Central Store Operating Budget.
A-8 Central Library - Safety Upgrades $0
There are funds remaining in the Library Square Capital Budget
from which these projects are recommended to be funded.
B-3 Fire Department - Information Management System $0
These funds would provide for the development and implementation of
a management information system for the Fire Department. Staff
recommend that the department request funding from the Strategic
Initiatives Fund for this work.
The following comments pertain to funding recommendations for other
items in the Supplementary Capital Budget.
Recommended
Allocation
Civic Use Buildings
A-1 Civic Buildings-Roofing Program $275,000
In the mid-1980s, Council began a roof replacement program funded from
Supplementary Capital. The recommended funding will continue that
program by dealing with the highest priority replacements
identified by Building Management. Two replacements are
recommended from this year s list:
Police Building - 312 Main Street $190,000
City Pound - Office / Kennel Buildings 85,000
A-2 Asbestos Program $140,000
Ongoing funding for the Asbestos Program is provided in both the
Building Management and Park Board Operating Budgets. The 1997
program will provide for the highest priority abatement and removal
projects in a variety of civic facilities and will supplement
existing funding of approximately $25,000.
A-3 City Hall - Exterior Painting $0
A-4 City Hall - Exterior Refurbishment $234,000
The exterior finishes on the City Hall main building are in need of
refurbishment to correct spalling, cracking or blossoming due to
water penetration. The project will involve construction of full
scaffolding on the west and south faces of the building and a
complete cleaning of all four faces of the building to prevent
further deterioration. The funding recommended in A-4 includes the
funding requested in A-3 so that the wooden finishes on the
building will be painted as part of the project.
A-6 Building Management - Consolidate Shops $0
This proposal would see the maintenance shops and some storage
facilities consolidated at either 450 or 456 West Broadway. While
there may be some advantages for this project and the department
made the case for additional storage facilities, staff believe a
lower cost option along with some alternative space within City
Hall should be further investigated before a decision is made to
proceed.
A-9 Bloedel Conservatory - Refrigeration Plant $0
This project involves the installation of a refrigeration plant at
the Park Board facility at Queen Elizabeth Park. This installation
has a payback of approximately 5 years as a result of lower water
costs and future savings in sewer utility fees. The department was
requested to finalize the business case for this project and to
submit a separate report to Council with a financing proposal
similar to the PowerSmart loans provided for electricity cost
savings.
A-12 St. Roch Shelter - Endwall Glazing $0
Under a cost sharing arrangement with the federal government,
Council provided $200,000 to upgrade the St. Roch Shelter. An
additional $80,000 was provided in 1995 to provide physical
integration of the shelter with the Maritime Museum. In the near
future, Council will be asked to make decisions about the future
operation of the St. Roch. While the work outlined in this request
will have to be completed in the future, the need is not critical
at this time and staff recommend that the proposed upgrading be
delayed for reconsideration in 1998.
Other:
B-1 Fire - Computer Resources
B-2 Fire - Building Renovation and Furniture
Total $86,000
These requests deal with the expansion of computer technology to 17
fire halls located throughout the City, including purchase or
upgrade of computer equipment, purchase of appropriate computer
furniture and modest renovation to some fire halls. As the timing
of the connection of the halls to the City s communications
network is later this year, it is proposed to fund only a portion
of these costs in 1997, with the Fire Department to determine how
the funds are allocated to the proposed needs. A further funding
request will be considered in 1998.
B-4 Fire Department - Renovate Hall #1 $0
Staff were not convinced that the department had developed this
proposal to the point where funding should be allocated when
compared against higher competing priorities.
B-5 Parking Meter Equipment $180,000
In 1996, the Engineering Department began an upgrade to electronic
parking meters. These meters provide greater flexibility in rate
setting, reduced maintenance and the possibility of using advanced
technology (Smart Cards) to provide more convenient payment
options. Of the funding necessary to continue the upgrading
program, $60,000 can be provided from the Operating Budget
provision for equipment replacement, leaving $180,000 as the
requirement for this purpose.
Staff note that, of the $550,000 request, approximately $180,000
represents meters in new areas. These installations have normally
been funded from new revenues. The Engineer will report separately
to Council on these areas.
The final component of the request, which would see purchase of 150
meters, essentially for stores purposes, can be reported back to
Council with the meter area expansion proposals.
B-6 Museum Complex - Additional Storage Space $85,000
As part of the redevelopment of the Vanier Park Complex for the BC
Space Centre and Vancouver Museum, there is the opportunity to
provide an additional 3,000 square feet of storage space in the
basement. Staff note that this space will benefit the
organizations that occupy the complex rather than the City, and
that both are currently in the midst of major capital refurbishing
programs which should be utilized if this project is a
priority.