ADMINISTRATIVE REPORT

Date: September 4, 1997 C.C. File No. 1501/4151

TO: Vancouver City Council

FROM:Acting General Manager, Parks and Recreation

SUBJECT:Capital Fund Transfers

RECOMMENDATION

A.THAT Council authorize the transfer of $129,334 from the Stanley Park Bridge Replacement Fund to the Stanley Park Works Yard Redevelopment.

B.THAT Council authorize the transfer of $205,260 as a loan to be repaid over five years from Brockton Point Wall Repairs to the Bloedel Conservatory Refrigeration Installation.

Approval of these recommendations requires a 2/3 affirmative vote of Council.

COMMENTS OF THE DIRECTOR OF FINANCE

Recommendation A requests Council approval to vary the use of debenture funding in the 1994-1996 Capital Plan by transferring $129,334 from the Park Development to the Facilities Development categories in the Park Board Capital Budget. Section 245(3) of the Vancouver Charter specifies that transfers of debenture funding between named categories within the Capital Plan requires a 2/3 majority of Council if such transfer is approved prior to the funds actually being borrowed. As the funds in question are not included in an existing borrowing by-law, Council's authority can be exercised with a 2/3 majority vote.

Recommendation B requests Council's approval to temporarily utilize the funding in the Brocton Point Wall Repairs capital budget to fund an energy conservation project at the Bloedel Conservatory. This project is justified on the basis of the energy savings that will result; savings that will be utilized to repay the indicated funding source. The Director of Legal Services has advised that although it is anticipated that the borrowed funds will be returned to their original purpose from energy cost savings, the use of these funds should be viewed as a transfer between Capital Plan categories and therefore be subject to a 2/3 majority vote of Council.

COUNCIL POLICY

Capital funding transfers in excess of $50,000 require Council approval.

Section 245(3) of the Vancouver Charter requires a 2/3 majority of Council to vary voter-approved borrowing authority between named categories in the Capital Plan up to the point at which the borrowing is specificaly provided for in a by-law.

BACKGROUND

At the regular meeting of the Board on September 15, 1997, the following resolutions were passed:

A.THAT the Board authorize the transfer of $129,334 from the Stanley Park bridge replacement fund to the Stanley Park Works Yard redevelopment.

B.THAT the Board authorize the transfer of $205,260 as a loan to be repaid over five years from Brockton Point wall repairs to the Bloedel Conservatory refrigeration installation.

C.THAT the Board is well aware, and requires no reminder, that both Park Board and City Council’s approval is required for recommendations A and B above.

Details of these fund transfers is as follows:

-Funding allocated in the 1997 Capital Plan was not adequate to cover demolition and clean up and reservicing as well as the cost of new and renovated buildings.

The bridge replacement funding was established as part of the 1993 Capital Plan. While some deterioration continues on the Park Drive pedestrian overpass and the Beaver Creek bridge, their failure is not imminent. Moreover as part of the Causeway/tunnel redevelopment, the pedestrian overpass may be removed.

-The cost of completely refurbishing the concrete work related to the Brockton Point outlook and walkways is well beyond current capital funding. Were this to become a priority, additional funding would have to be allocated in the next capital plan. Hence, there is no immediate demand on these funds.

DISCUSSION

The needs of a renovated Stanley Park works yard are more pressing than a holding account to underwrite major renovation or replacement of the Park Drive bridge and overpass. The latter can await the next capital plan when a new priority assessment can be made.

The attached Supplementary Budget Request outlines the merits and financing logic of the Bloedel Conservatory cooling system replacement. The City Finance Department responded to the Board’s funding request of May 1997 by recommending we self-finance this work. As we do not intend to deal with Brockton until the next capital plan, we can repay this temporary transfer in five years.

CONCLUSION

These fund transfers will allow staff to move forward immediately on two priority capital projects.

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(c) 1997 City of Vancouver