ADMINISTRATIVE REPORT Date: October 10, 1995 Dept. File No. 1.40.95.09 TO: Vancouver City Council FROM: General Manager of Engineering Services SUBJECT: Waterworks Capital Funding RECOMMENDATION THAT $1.5 million budgeted in 1995 for watermain replacement in the 650 Zone (Account 17/35/1800/999) be reallocated to the Distribution Main Replacement program (Account 17/35/1000/999) for use in other high priority areas of the City. COUNCIL POLICY Reallocation of capital funding in excess of $50,000 must be approved by Council. PURPOSE This report describes an update to the City s water transmission planning and recommends reallocation of affected funds to the Distribution Main Replacement program. BACKGROUND AND DISCUSSION The City has been upgrading the Waterworks transmission and distribution system in the 650 Pressure Zone since 1993. Approximately 32,000 feet of distribution main and 4,800 feet of transmission main have been completed to date. This represents about two-thirds of the work originally proposed for this area in the 1993 to 1996 construction programs. Council approved $2.6 million, including $500,000 of potential GVWD funding, in the 1995 capital budget for 650 Pressure Zone watermain upgrading. Approximately $1.5 million of this budget was proposed for the construction of the north half of a 24-inch transmission main that would link GVWD mains on 45th Avenue and 29th Avenue. The remainder of the funding was for continued replacement of local distribution mains. Since the budget was approved, the City has had further discussions with the GVWD regarding cost-sharing for the City s transmission main project and co-ordinating mutually beneficial projects. These discussions have resulted in commitments from the GVWD to feed this area entirely from 45th Avenue rather than from 45th Avenue and 29th Avenue, which in turn has permitted us to build only the south half of our 24-inch transmission project. This change in scope benefits both the City and the GVWD, and has superseded GVWD funding for this project. The City Engineer recommends that the $1.5 million proposed for the 650 Zone transmission main construction be reallocated to the Waterworks Distribution Main Replacement program. The City has a goal of replacing approximately 1% of the City s water distribution mains in a given year to spread out ageing infrastructure replacement costs. During the 1994 to 1996 Capital Plan, we are replacing approximately 0.7% of the City s watermains annually. If the available 650 Zone transmission funding is transferred into the Distribution Main Replacement program, it will help boost this annual - 2 - replacement rate. Specifically, two large projects are planned for this fall and winter which require funding under the Distribution Main Replacement program. The first is 8 blocks of watermain at the intersection of Nanaimo St. and McGill St. that must be replaced prior to planned street improvements at this intersection. The second is the replacement of a 16-inch steel watermain on Hastings St. from Cambie St. to Main St., which is the same age and similar condition as the main on E. 12th Avenue that was replaced as an emergency in the summer of 1994. As both these projects are higher priorities than additional work in the 650 Zone, it is recommended that the funds be reallocated to account 17/35/1000/999 for Distribution Main Replacement. One million dollars have been included in the Capital Plan for 650 Zone distribution main replacement work in 1996. A review of this works priority, compared to other distribution main replacement work, will be undertaken as part of the 1996 Capital Budget submission. * * * * *