CITY OF VANCOUVER M E M O R A N D U M From: CITY CLERK'S OFFICE Date:Feb. 16/96 Refer File: 1604-1 To: Vancouver City Council Subject: 1996 Engineering Basic Capital Budget Staff from Engineering Services will provide a brief presentation on the above matter: Introduction: Jim Hall Budgets & Research Engineer Streets: Don Brynildsen Assistant City Engineer - Streets Communications & Susan Clift, Acting City Engineer - Street Lighting: Electrical Information Services Water, Sewers & Tom Timm, Assistant City Engineer - Yards Water, Sewers & Yards The attached Administrative Report dated 13 February 1996, refers. CITY CLERK :sr ADMINISTRATIVE REPORT Date : 13 February 1996 Dept. File No. H392-3 TO: Vancouver City Council FROM: General Manager of Engineering Services SUBJECT: 1996 Engineering Basic Capital Budget RECOMMENDATIONS A. THAT the 1996 Streets, Sewers, Waterworks, Street Lighting & Undergrounding, Communications and Yards Basic Capital Budgets, as reported here and detailed in Appendix 1*, be approved with funding as shown in Table 2., with the Capital from Revenue portion subject to approval of the 1996 Operating Budget. B. THAT to maintain the City's sewer infrastructure program for 1996 and to achieve environmental improvements through the ongoing reduction and eventual elimination of combined sewer overflows, the borrowing authority be increased by $2.73 million, with an offsetting reduction from any provincial revenue sharing which is received. C. THAT the current shortfall in the 1994-1996 Waterworks Capital Plan, due to a lack of funding contributions from the GVRD and the Provincial Government, be addressed for 1996 by deferring certain programs totalling approximately $ 7.2 million, as noted in this report. D. THAT borrowing authority in the 1994-1996 Waterworks Capital Plan be increased by $2.1 million, to reinstate the dedicated pipeline construction program to the level that was anticipated in the twelve year implementation plan, which was reduced to fund the additional costs that were previously reported for the False Creek and Coal Harbour Pump Stations, and the addition of the Grouse Mountain SCADA repeater facility. E. THAT the transfer of Capital Funds, as detailed in Appendix 2. for Streets, Sewers, Street Lighting, Traffic Signals and Undergrounding Capital closeouts, be approved. *LIMITED DISTRIBUTION (ON FILE IN THE CITY CLERK'S OFFICE) F . THAT the public sewer connection fees for 1996 be increased by approximately 3.9% as shown in Appendix 3. G. THAT the estimated construction value amount in Subsection 8.19,(b),(ii) of the Plumbing By-law, which triggers the requirement for a new public sewer connection for renovated buildings, be increased from $65,000 to $95,000 to reflect similar increases in the criteria used to estimate construction values. H. THAT the Director of Legal Services be requested to amend the Plumbing By-Law in accordance with the approved recommendations in this report. I. THAT the Mayor write to the Ministers of Environment and Finance, encouraging the Province to continue to contribute funding towards the City s sewer replacement program, thereby aiding progress to eliminate combined sewer overflows. J. THAT $226,000 for Granville Bridge safety improvements and $857,000 for Police Radio Console Replacement in unused borrowing authority be carried over to the 1997- -3- 99 Engineering Capital Plan. COUNCIL POLICY In November 1993, Council approved the 1994-1996 Capital Plan which set a level of funding for specific Capital programs over those three years. Subsequently, 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. Closeouts of completed Capital projects, involving transfers of more than $50,000 between Capital accounts, 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; - 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 -4- short-cutting with the installation of traffic controls such as traffic circles, diverters, and right-in/right- outs etc.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 . 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 July, 1993, Council approved the 1994-1996 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, system capacity and fire protection improvements, emergency preparedness, and other works such as new water service installations. Subsequent budgets have been similarly structured. 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.WATERWORKS (continued) In May 1995, Council approved revised funding for new water services to single family and duplex residences installing fire sprinkler systems, such that property owners now fund 50% of the water service cost. SUMMARY This report provides Council with an overview of the 1996 Engineering Department Basic Capital Budget, including submissions for: -5- Streets $ 22,443,000 Communications $ 656,000 Street Lighting $ 1,474,000 Sewers $ 13,295,000 Yards $ 60,000 Waterworks $ 16,597,000 The General Manager of Engineering Services will report separately on the details of the installation and updating portion of the 1996 Traffic Signal Program to the Vancouver Traffic Commission. The 1996 Basic Capital Budget allocates all of the remaining funds in the 1994-1996 Capital Plan approved by Council and voters in the November 1993 plebiscite, with the exception of $857,000 for Police Dispatch Console replacement and $226,000 for Granville Bridge Safety Improvements, which are being carried over to the 1997-1999 Capital Plan. In addition, this report includes Capital account closeouts for Streets, Sewers, Street Lighting, Traffic Signals and Undergrounding. Also discussed are funding difficulties being experienced in Sewers and Waterworks: - due to a lack of funding contributions from the Province s Local Government Grant program for Sewers projects, we are recommending that the borrowing authority in the 1994-96 Sewers Capital Plan be increased by $2.73 million, with an offsetting reduction from any provincial cost-sharing which is received, in order to maintain the City's sewer infrastructure program for 1996. - due to a lack of funding contributions from the Province s Local Government Grants program and from the GVRD for Waterworks projects, we are recommending $7.2 million worth of Waterworks programs be deferred. - due to increased costs for the False Creek and Coal Harbour Pump Stations, and the addition of the Grouse Mountain SCADA repeater facility, all of which have previously been reported to Council, we are recommending that borrowing authority in the 1994-96 Waterworks Capital Plan be increased by $2.1 million for the Dedicated Fire Protection System. PURPOSE This report provides Council with an overview of the 1996 Engineering Capital Budget and recommends its approval. Streets, Sewers, Street Lighting, Traffic Signals and Undergrounding Capital account closeouts, and funding difficulties for Sewers and Waterworks, are also discussed. LOCAL GOVERNMENT AND GVRD GRANTS The 1994-1996 Capital Plan assumed Local Government Grant funding of $9 million, or about $3 million a year, for 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. Although the 1994-96 Streets Capital Plan does not assume any Local Government Grant -6- funding for streets projects, any funding that was received would have been used to provide additional facilities to serve transportation needs supported by the Province. The City received no Local Government Grant funding in 1993 and 1995. In 1994, the City received $600,000 in Local Government Grants for four projects. In early 1995 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 1996 program. The 1994-1996 Capital Plan also assumed GVRD funding of $8.7 million for waterworks projects. This cost sharing was based on regional benefits arising from improvements to the municipal system. However the GVRD has stated that they are also facing fiscal constraints, and that these projects are municipal issues. Although the GVRD Board have offered to consider regional projects that will also benefit the City, they have declined to provide any cost-sharing funds for projects that were envisioned in this Capital Plan. In Waterworks, slightly less than half ($5.5m) of the $12.7 million 1994-96 Waterworks Capital Plan shortfall, caused by the combined decrease in funding from the Province and the GVRD, was dealt with in the 1995 Capital Budget by deferring work, primarily in Transmission Mains and in the 650 Pressure Zone. For the $7.2 million shortfall in 1996, we plan to defer further transmission main projects. (see Table 1) In Sewers, approximately half ($2.0 million) of the net 1994-1996 Sewers Capital Plan shortfall, caused by the decrease in Provincial Government funding, was dealt with in last year s Capital Budget. Council elected to replace $2.0 million of anticipated Local Government Grant funding with funds from a $12 million Federal/Provincial Infrastructure grant for sewer work. This decision allowed the City to maintain the sewer infrastructure program through 1995. However, for 1996, a $2.73 million shortfall in Local Government Grant funding is anticipated (see Table 1). Strategies for dealing with the continuing funding shortfalls in Sewers and Waterworks are discussed in the Project Details section for these programs. PROJECT DETAILS The 1996 Engineering Basic Capital Budget includes six programs which are summarized in this report, and described in detail in Appendix 1. The programs are Streets, Communications, Street Lighting and Undergrounding, Sewers, Yards, and Waterworks. The funding for the 1996 Traffic Signal Program ($1,178,000) is included in the 1996 Streets Capital Budget and details of this program will be dealt with independently by the Traffic Commission in early 1996. This is the third year of a three year Capital Plan (1994-1996). The Capital Plan is now somewhat less than originally approved, as a result of the 1994 Budget Management Program approved by Council. The 1994 Budget Management Program reflected a major reduction in the Capital from Revenue portion of the Engineering Capital Plan, totalling $4.04 million. This represented 80% of the total reduction for all City Departments ($5.1 million). The Streets Division was reduced by $3.55 million (70% of total) -7- and the remainder was taken from the Electrical Division ($0.49 million). In September 1995, Council approved the reallocation of $1,269,000 from the 1994-96 Streets ($1.0m) and Communications ($.269m) Capital Plans to consultant contracts related to the Emergency Operations and Communication Centre. A. STREETS 1996 Budget $ 22,443,000 The 1996 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 $2,721,000 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 seismic upgrading, resurfacing, and other repairs. Pedestrians and Bicycles $2,811,000 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: the completion of the Arbutus Street Bicycle Corridor, improvements to the 7-Eleven Bike Route and provision for the new S.W. Marine Drive Bike Route, which is the next stage of the Vancouver Bicycle Network. Traffic Signals $1,290,000 Renovate & Replace Plant ($ 112,000) Includes ongoing replacement of traffic signal infrastructure. 1996 Traffic Signal Program ($1,178,000) Details of the 1996 Traffic Signal program, which includes the installation and updating of traffic signals, will be reported separately to the Traffic Commission by the General Manager of Engineering Services. Transit & Safety Improvements $ 3,575,000 Enhances transit operations and reduces delays, and includes other roadway changes to improve safety and reduce shortcutting through neighbourhoods. The 1996 Capital Budget provides the overall funding for this area and the individual projects are reported to Council for approval after a public notification process. Additional projects have been included in this area due to extra funding provided through the Canada/B.C. Infrastructure Program. Local Area Traffic Plans and Other Improvements $4,337,000 Provides for the installation of neighbourhood traffic controls and local improvements, by petition and initiative programs. Major Projects $7,623,000 -8- Provides funding for capital projects for the major bridges in the City. In 1996, funding is required to fund anticipated transportation improvements that will address safety and neighbourhood concerns related to the Burrard Bridge, as outlined in submission A-6b. The final decision on which option to proceed with should be made by Council in early 1996. These measures address safety concerns at the connection between Burrard and Hornby at Pacific, eliminate traffic that shortcuts through the False Creek North Community, address left turn needs at the South End Connection and provide a connecting link for cyclists and pedestrians between the south shore of False Creek and Downtown. Although an option has not been selected by Council for the Burrard Bridge upgrade, the funding provision is sufficient to accommodate either option. Funding for Granville Bridge Safety Improvements ($226,000) is being carried over to the 1997-1999 Capital Plan, as a review is currently underway to further enhance pedestrian safety at the Seymour ramp which will require further adjustments. B. COMMUNICATIONS 1996 Budget $656,000 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 1996 Capital Budget contains funding for the continuation of the Underground Cable Plant replacement program. The City is currently proceeding with plans for the Emergency Operations and Communications Centre (EOCC). This centre will provide a post disaster dispatch centre for Vancouver Police and Fire daily operations, and an operations centre to direct Vancouver s response to significant emergency incident or major disaster. Existing communications systems would be relocated to this centre. In September 1995, Council approved the reallocation of $269,000 from the 1994-96 Communications Capital Plan to consultant contracts related to this project. Funding for the replacement of Police Dispatch Consoles ($857,000), which could be part of the Police Dispatch Centre of the EOCC, is being carried over to the 1997-1999 Capital Plan. C. STREET LIGHTING & UNDERGROUNDING 1996 Budget $1,474,000 Street Lighting $1,349,000 As with all City infrastructure, the street lighting plant is aging and many components are now past their estimated service life. The 1994-1996 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 -9- concerns brought forward through both the Safer City Task Force and community interaction. Undergrounding $125,000 Overhead wiring and its associated poles, cross arms, platforms and transformers are commonly considered a visual nuisance. This program beautifies City streets, by contributing to the costs of undergrounding existing overhead wires. The City s contribution is usually 1/3, with the remainder shared equally between the benefitting property owners and the utility companies. D. SEWERS 1996 Budget $13,295,000 The significant relevant Council Policies are quoted in the Council Policy section at the beginning of this report The Sewers program includes the following: System Replacement $12,495,000 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, - 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 our 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. As noted in the earlier section on Local Government and GVRD Grants, the remaining funding in the Sewers Capital Plan is insufficient, by $2.73 million, to maintain the sewer infrastructure replacement program for 1996. Staff recommend that Council authorize an increase in the Capital Plan and Sewers borrowing authority by this amount. The potential consequences if this increase is not approved -10- include; - a slow down in the sewer separation and CSO reduction program, - increased pressure to deal with CSO's in a more expensive, short term manner, - the need to shutdown one of our three main sewer construction crews for the second half of 1996 and layoffs of some staff who cannot be reassigned to other programs. A further related recommendation of this report is that the Mayor write to the Minister of the Environment and to the Minister of Finance, encouraging the Province to continue to provide grants towards the City's sewer replacement program. System Management $300,000 Consists of projects, data collection and analysis to support cost-effective capital work programs. The majority of the funds in 1996 will be spent on video camera inspection of the system. Pollution Abatement $500,000 Consists of pollution abatement projects such as the Inflow/Infiltration Reduction Program and the Sewer Separation on Private Property Program. Work in 1996 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 1996 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 3.9% is recommended for 1996 (refer to submission D13 in Appendix 1. and Appendix 3. for details). Plumbing By-Law Revisions - New Renovations The City s Plumbing By-Law makes provisions for new public sewer connections when new buildings are constructed or major renovations are undertaken to existing buildings. Subsection 8.19,(a),(ii) of the by-law requires a new connection to be installed if the estimated cost to renovate an existing building exceeds $65,000 and the work involves other conditions as outlined in the by-law. This amount is reviewed from time to time and adjusted in accordance with changes the City uses in estimating construction costs. To remain in line with current construction cost estimating, an increase from $65,000 to $95,000 is proposed. E. YARDS 1996 Budget $60,000 -11- The City's Engineering Yards, consisting of two major yards, Cambie and Manitoba, along with 4 minor (district) yards, serve as bases for providing essential public works and emergency operations. In 1996 funding will provide for repairs or replacement of deteriorated aggregate storage bins at the South Vancouver district yard. F. WATERWORKS 1996 Budget $16,597,000 The Waterworks 1994-1996 Capital Plan was approved by Council on July 27, 1993, 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 1994-1996 Capital Plan is based on the Waterworks Long Range Plan, which was an comprehensive three-year planning process addressing immediate and long term water system replacement and upgrading needs. The first implementation phase of the Long Range Plan was planned to be 8 years, but was extended to 12 years to reduce its financial impact. In addition, quite generous Provincial Revenue Sharing and GVRD contributions were assumed, to reduce the plan's financial impact and to encourage senior governments to participate in the programs. As noted below, the lack of contributions to date has created some significant funding issues. However, it should be recognized that the water system is primarily a City responsibility, and we will need to address any lack of outside funding, so that needed programs can proceed. Although a number of projects were applied for under the Canada- B.C. Infrastructure Program, none were approved. The 1996 Waterworks Capital Budget is composed of the following: Aging Infrastructure Replacement $8,400,000 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. This category also includes construction of replacement transmission mains from Second Narrows into the center of the City. Due to the lack of outside funding, construction startup for this transmission project was deferred until the next Capital Plan, and only minor transmission main work is being undertaken in 1996. Increased Capacity & Fire Protection Requirements $1,613,000 This program involves the replacement or extension of watermains in various areas throughout the City to increase or maintain the capacity of the system. During 1993 to 1995, substantial upgrading work was undertaken in the 650 Pressure Zone, to address existing deficiencies and accommodate redevelopment. In 1996, our efforts will focus on other fire protection improvements which are now higher priorities than any additional -12- work in the 650 Zone. In addition, our Storage and Transmission Optimization review will be completed in 1996. Drafting Stations $300,000 This program involves providing access to the Fraser River for emergency water supply for fire fighting purposes. Dedicated Fire Protection System (DFPS) $3,268,000 Previous Capital Budgets have funded the design and construction of the False Creek and Coal Harbour pump stations and the final design for the downtown portion of the high pressure distribution pipe line system. The 1996 program proposes the construction of a portion of the high pressure pipe line required to connect the False Creek and Coal Harbour pump stations, the final design for the Kitsilano pump station, and the supply of a second hose tender support vehicle for the Fire Department. The intake structure for the Kitsilano pump station will be delayed until the 1997 Capital program, to offset the installation of the second pump and engine at the Coal Harbour pump station, which was advanced from 1997. The 1995 Capital Budget submission noted that the 1994-96 Capital Plan program was about $2.1 million over-expended due to the increased final cost of the False Creek and Coal Harbour Pump Stations and the addition of the Grouse Mountain SCADA repeater facility, which had not been anticipated in the original scope of work. This additional funding is requested in 1996, beyond the existing Capital Plan balance, to maintain the scope of work set out in the twelve year implementation plan for the DFPS project. Maintaining the original implementation plan will allow a pipeline construction program that will be large enough to attract effective construction pricing for this complex work. This will be the first DFPS pipeline construction, hence each incremental length of pipe line significantly enhances the system's coverage and the value of the completed pump stations at False Creek and Coal Harbour. If pipeline funding is restored to the original level anticipated during this Capital Plan, about two-thirds of the pipeline required to connect the False Creek and Coal Harbour pump stations will be constructed. If the additional funding is not approved; - The complete DFPS will not be fully implemented within the original 12 year schedule, - The areas served by the pump stations at False Creek and Coal Harbour will be reduced until additional pipeline is constructed following funding approval in the next Capital Plan, - Costs for the pipeline that can be built with the available funding will likely be higher, on a per meter basis, because of the smaller scale of the project. The DFPS was originally envisioned as an 8-year project, based on -13- desirable construction scheduling. This was extended to 12 years for funding reasons. Extending this project to more than 12 years, however, will impact upon the availability of the specialized design team and result in a construction program that is sporadic and inefficient. The addition of $2.1 million to the Waterworks Capital Plan would represent a 0.6% increase in the City s water rates. The water rates have already been set for 1996, however this addition can be funded from the Water Rates Stabilization Reserve. Water rates have been rising at a rate of about 10% per year for the past several years due to increases in both the City s and the GVWD s programs. They are projected to rise at a significantly faster rate in future years, based on the GVWD s long range Capital Plan and on our own ongoing review of the need for expanded transmission and/or storage programs. Council may wish to consider the issue of affordability of this funding increase this year, but should also note that the demands for Capital Expenditures over the next several years are likely to be higher than this year. Other Works $2,900,000 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. The majority of funding is for the installation of City funded services for new single- family homes. FUNDING FOR INFRASTRUCTURE REPLACEMENT/INCREASED CAPACITY There are significant funding issues in Waterworks related to a lack of funding contributions from the Province and the GVRD. The Waterworks 1994-1996 Capital Plan assumed the receipt of approximately $4 million in Local Government Grant funding and $8.7 million from the GVRD. As noted in the Local Government and GVRD Grants section of this report, we have not received any of this funding. In the 1995 Capital Budget, we deferred about $5.5 million of work for the $12.7 million total shortfall, primarily in transmission mains and in the 650 pressure zone (projects for which we requested funding from the GVRD). For the $ 7.2 million shortfall remaining in the 1996 Capital Budget, we plan to defer further transmission main projects. FUNDING As shown in Table 2, funding for Streets, Communications, Street Lighting and Yards is partially from Operating Budget revenues and partially from borrowing authority approved by voters in the November 17, 1993 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. 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 of -14- $50,000 or more between Capital accounts require Council approval. Appendix 2 provides a summary of the Streets, Sewers, Street Lighting, Traffic Signals and Undergrounding closeouts, including a calculation of their under and over expenditures, respectively. The transfers requiring Council approval are noted. * * * * *