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HomeMy WebLinkAboutFIN-19-002 - 2019 Capital Budget and 10-Year ForecastNote: Final approval of the 2019 Capital Budget & 10-Year Forecast will take place as part of Final Budget Day, scheduled for January 31, 2019. 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Cap 01 Southwest Community Library Yes Cap 02 Reserve Continuity Schedule N/A Cap 03 Improving Cycling Infrastructure Yes Cap 04 Rehabilitating City Hall Outdoor Spaces Yes Cap 05 Enhancing Iron Horse Trail (Lighting & Trestle Bridge) Yes Cap 06 Existing Capital Balances N/A C - 173 CITY OF KITCHENER 2019 BUDGET ISSUE PAPER ISSUE: Cap 01 - Southwest Community Library FUND:Capital DEPARTMENT: Kitchener Public Library PREPARER: Mary Chevreau – CEO Kitchener Public Library BUDGET ASK: None (included in the proposed capital budget) BACKGROUND: Since 2006, Kitchener Public Library’s capital forecast has included a new community library for southwest Kitchener. On May 18, 2011, the Kitchener Public Library Board passed a resolution to endorse the Rosenberg site as the preferred future location for the newsouthwest community library. The building project was initially planned for 2015-2016 and has been deferred due to changes in the capital forecast and to fit the pace of development in the planning area. The 2018-2027 capital budget forecast approved by Council on January 22, 2018, allocates development charge recovery funds for the southwest community library in 2019-2024. On November 21, 2018, the Kitchener Public Library Board endorsed a standalone library building on the Rosenberg site as the preferred option for the southwest community library. This option supports a vision for a Rosenberg community campus connecting the library and a proposed co-located community centre/elementary schoolwith connected public spaces including parks, community gardens, pathways and lighting. RATIONALE / ANALYSIS: Planning for library service in southwest Kitchener, on the proposed Rosenberg site, is dependent upon the completion of the infrastructure required to bring services to the site. Based on our current understanding of the infrastructure timelines, Kitchener Public Library’s proposed timeline: 2019: Development of a detailed business case 2020: Council approval of capital budget for southwest community library 2020/2021: Library design and planning approvals 2021/2022: Construction of standalone community library 2022: Opening of southwest community library C - 174 CITY OF KITCHENER 2019 BUDGET ISSUE PAPER FINANCIAL IMPLICATIONS: The 2019-2028 capital forecast allocates $10M in capital funding for a southwest community library in 2019-2024. Based on the anticipated construction of the infrastructure to bring service to the Rosenberg site, the timing for the capital and operating budgets to supportthe southwest community library are as follows: Capital Budget Forecast Funding20192020202120222023TOTAL Capital D/C36,000 900,0006,220,000 1,969,000125,000 9,250,000 Capital C/C 750,000 750,000 TOTAL 36,000 900,0006,970,000 1,969,000125,000 10,000,000 Operating Budget Forecast Funding 2021 2022 Operating101,000 1,081,000 TOTAL 101,000 1,081,000 Due to an adjusted project timeline, it is anticipated that costs may increase with a proposed construction start date in 2021. RECOMMENDATION: The Kitchener Public Library Board recommends the Rosenberg site as the preferred location for a standalone communitylibrary in southwest Kitchener, and that the development of a detailed business case proceed in 2019. C - 175 CITY OF KITCHENER 2019 BUDGET ISSUE PAPER C - 176 CITY OF KITCHENER 2019 BUDGET ISSUE PAPER ISSUE: Cap 02 – Reserve Continuity Schedule FUND:Capital DEPARTMENT: All PREPARER: Debra Fagerdahl, Manager of Financial Planning BUDGET ASK: None BACKGROUND: One of the components of the capital budget process is a review of reserve balances. Reserves are funds set aside in the present for a future use (similar to a personal long-term savings account). Kitchener has a consolidated reserve policy that governs the use of all reserves maintained by the City. RATIONALE / ANALYSIS: The City has 43 active reserves that collectively have a projected balance of $57.2M as at December 31, 2019. The attached reserve continuity schedule shows summary information for each of the City’s reserves for the upcoming year. This information includes: Opening balance Projected revenues Projected expenses Projected ending balance Minimum/Maximum target level FINANCIAL IMPLICATIONS: Reserves are maintained to set aside funds in advance of needing them. This helps avoid rate shock for significant expenses. RECOMMENDATION: For information. C - 177 C - 178 179 - C 180 - C 181 - C C - 182 CITY OF KITCHENER 2019 BUDGET ISSUE PAPER ISSUE: Cap 03 – Improving Cycling Infrastructure FUND: Capital DEPARTMENT:Development Services – Transportation Services PREPARER:Barry Cronkite, Director of Transportation Services BUDGET ASK: None (included in the proposed capital budget) BACKGROUND: With the adoption of Kitchener’s Cycling Master Plan in 2010 and Multi-Use Pathways and Trails Master Plan in 2012, the city started to establish a vision for a cycling friendly community. While the City is reviewing and incorporating the Cycling and Trails master plans into one guidance document there is opportunity to invest in separated cycling infrastructure in parallel with that review.Investment in high quality bicycle infrastructure leads to a more equitable transportation system, better quality of life for citizens, stronger social cohesionand safer, traffic calmed streets. The installation of separated cycling facilities help to implement a vision that promotes active transportation as the first choice for mobility within Kitchener, while simultaneously meeting the demands of climate change and economic diversity. In order to achieve this vision, a connected network of safe cycling infrastructure and traffic calmed roadways that are comfortable for all ages and abilities and all modes of travel is necessary. RATIONALE / ANALYSIS: In order to ensure that separated cyclingfacilities are viable within the City of Kitchener’s municipal rights of way, staff are proposing to pilot separated cycling infrastructure and related facilities (enhanced pedestrian crossings, narrowed travel lanes, etc.). These facilities will calm traffic and make roadways safer in areas where it has traditionally been uncomfortable to cycle and walk. They will also help to inform the Cycling and Trails Master Plan and begin to shape what our municipal roadways might look like in the City of Kitchener. Staff will report success of these facilities to Council approximately 2 years after their installation, prior to installing separated and protected facilities more broadly across the community. In addition to the need for more separated and protected facilities along roadways, cyclists and community members have also indicated that roundabouts are challenging to cycle through. As a result, staff are also proposing a modification to the roundabout at Huron and Strasburg Roads to install a “Dutch roundabout”. A Dutch roundabout provides a protected outer ring adjacent to pedestrian crossings and allocates right of way to cyclists in the same manner that right of way has already been allocated to pedestrians. It will be one of the first of its kind in Canada and will set the stage to determine if the design is feasible at other locations throughout Waterloo Region. Proposed Projects(in prioritized order) 1)Dutch Roundabout - The proposed “Dutch roundabout” is proposed for the intersection of Huron Road and Strasburg Road. This approach will connect the existing multi use trails on all legs, and serve Huron Heights Secondary School and Southwest Kitchener as a whole. C - 183 CITY OF KITCHENER 2019 BUDGET ISSUE PAPER 2)Water Street - Currently there are unprotected bicycle lanes on Water Street and delivery vehicles often block these lanes. Additional protection on Water Street will highlight what protected facilities could look like in a high profile, downtown location, and make cycling safer. There is little impact to other travel modes, as protection can be accommodated within the existing facilities. 3)Belmont Avenue – Separated cycling facilities along Belmont Avenue will provide a suitable detour for the Iron Horse Trail Closure in 2019. This pilot will also demonstrate integration of transit and pedestrian facilities with separated cycling facilities while also reducing traffic speeds, thereby creating a more “complete” and safer street. Better connections to the north/west end of the city will be created as this location connects to Glasgow Street bike lanesand Filsinger Park Trail. 4)Queens Boulevard -Staff are proposing separated cycling facilities along Queens Boulevard from Westheights Drive to Belmont Avenue. This would provide a key cycling connection to the downtown from the west end of Kitchener through the use of Belmont Avenue, Henry Sturm Greenway, Victoria Park and Water Street. This establishes a significant connected link between several neighbourhoods and three city wards that has been identified as a need by the cycling community. This route would also serve three schools, commercial centers, a community center and high density residential homes. FINANCIAL IMPLICATIONS: Funding of $1,000,000 has been added in 2019 for this cycling infrastructure. The anticipated costs to fund each project is as follows: Length Project (km) Value ($) Dutch Roundabout n/a 200,000 Water Street 0.5 50,000 Belmont Avenue2350,000 Queen's Boulevard 2.5 400,000 TOTAL $1,000,000 RECOMMENDATION: For information. C - 184 CITY OF KITCHENER 2019 BUDGET ISSUE PAPER ISSUE: Cap 04 – Rehabilitating City Hall Outdoor Spaces FUND: Capital DEPARTMENT:Infrastructure Services - Facilities Management PREPARER:Cynthia Fletcher – Director, Facilities Management Lynda Stewart–Manager, Projects & Energy Management BUDGET ASK: None (included in the proposed capital budget) BACKGROUND: In September 2016, Council received the City Hall Outdoor Spaces Master Plan INS-16-066, which detailed the redevelopment vision to meet critical infrastructure, accessibility, flexibility and programming needs. In December 2017, Council received City Hall Outdoor Spaces Functional Design report INS-17-066, which highlighted design considerations including elements and possible layouts. Through these discussionswith Council, emphasis was placed on the critical infrastructure (surface concrete, parking garage membrane and trench drains) and the refurbishment of the other elements such as the ice rink/fountain and stage were to be considered concurrently with critical infrastructure replacements; and, subject to available funding. RATIONALE / ANALYSIS: The existing site conditions and concerns are outlined in report INS 16-066; specifically, water penetration into the parking garage causing leaking cracks, peeling paint, and efflorescence, which is evidence of moisture in the concrete; damage to the surface concrete has created accessibility and liability issues; mechanical systems for the rink and fountain are nearing end of serviceable life; existing stage, rink/fountain designs limit flexibility and creates operational challenges; and, the ice rink and fountain are original equipment and reaching the end of expected lifecycle. Staff worked throughout the past yearwith consultants to develop detailed designand related costing for the replacement of the surfaceconcrete, garage membrane and drainage for the Duke, College and Young St. elevations. For Carl Zehr Square, the detailed design includes the replacement of surfaceconcrete, garage membrane and drainage, upgrades to lightingand the refurbishment and re-sloping of the rink and water feature. Cost estimates are provided in Table 1 for these design features. Overall, this project would provide multiple benefits. Infrastructure components that are nearing end of life will be replaced Addressing accessibility and liability issues. This includes the surface concrete, garage membrane and site drainage components. Upgraded LED lighting and mechanical systems in the rink and fountain will operate more efficiently. C - 185 CITY OF KITCHENER 2019 BUDGET ISSUE PAPER As the premier outdoor event space in the city, Carl Zehr Square is a vital and integral part of citizen and community interactions at city hall. By redesigning the fountain basin, an accessible, welcoming space that encourages social and community interaction will be created. The flexibility and reduced operational requirements will enhance the functionality of the space for many different kinds of events. The detailed design is in final stages and next steps to completion include the following major milestone activities: 2019: Consultant selection for construction phases Develop Construction Drawings and tender packages, Tender the project in Q3/Q4 2020: Rehabilitation of the Carl Zehr Square and College St elevations 2021: Rehabilitation of the Duke St and Young St elevations The redevelopment of the outdoor areas supports three strategic areas: Safe and thriving neighbourhoods - by creating active and vibrant public spaces Strong and resilient economy – development of downtown Kitchener as the heart of the city Sustainable environment and infrastructure – managing assets to be sustainable and dependable in the long term; and managing storm water FINANCIAL IMPLICATIONS: Table 1: outlines a comparison between replacement of critical infrastructure in current configuration and a re-design of the rink/water feature, which will achieve the benefits outlined above. The cost of the re-design ($8.8M) has been included in budget. Element Replacement Redesign General Requirements: Approvals, Permits, Site Preparation $ 705,207 $ 705,207 Removals/Demolition $ 389,625 $ 389,625 Structural Repairs & Waterproofing $ 1,152,850 $ 1,152,850 Stormwater & Drainage$ 435,700 $ 620,200 Surface Concrete $ 1,452,256 $ 1,485,000 Site Structures & Grade Change $ 267,460 $ 427,000 Electrical: Power distribution, lighting $ 138,750 $ 244,000 Site Furnishings: waste receptacles, bike racks, umbrellas, furniture $ 113,510 $ 344,000 Landscaping $ 46,220 $ 40,000 Ice Rink $ 745,000 $ 745,000 Water Feature $ 540,150 $ 750,000 Subtotal $ 5,986,728 $ 6,902,882 Contingency 15% $ 898,009 Contingency 25%$ 1,725,721 Construction Value $ 6,884,737 $ 8,628,603 HST - 2% $ 137,695 $ 172,572 TOTAL $ 7,022,432 $ 8,801,175 C - 186 CITY OF KITCHENER 2019 BUDGET ISSUE PAPER The project has an existing capital balance of $345,000 that will be appliedto the overall project cost. The additional funding required is $8.5M with the proposed funding source as follows: Funding Source2019202020212022Total Capital Pool$400,000$1,200,000$1,500,000$1,000,000$4,100,000 Parking$500,000$500,000$500,000$0$1,500,000 Economic Devt Reserve$0$750,000$750,000$0$1,500,000 Federal Gas Tax$0 $1,000,000 $400,0000 $0 $1,400,000 Total $900,000 $3,450,000 $7,050,000 $1,000,000 $8,500,000 RECOMMENDATION: For information. C - 187 CITY OF KITCHENER 2019 BUDGET ISSUE PAPER ISSUE: Cap 05 – Enhancing the Iron Horse Trail (Lighting & Trestle Bridge) FUND: Capital DEPARTMENT:Infrastructure Services Department – Parks & Cemeteries PREPARER:Dan Ritz, Supervisor Design & Development BUDGET ASK: None (included in the proposed capital budget) BACKGROUND: The Iron Horse Trail is a 5.5 km primary multi-use pathway that forms part of the Trans Canada Trail and travels from Ottawa Street to Union Boulevard in the City of Kitchener. Consultation for improvements on the Iron Horse Trail concluded with the approval of the Master Plan on November 16, 2015. Through the consultation, users identified a 91% support for lighting of the Iron Horse Trail, identifying the trail is heavily used in the mornings and evenings as a primary commuter route. In addition, the City conducts regular maintenance inspectionsas well as bi-annual engineering inspections guided by the Ontario Structure Inspection Manual (OSIM) on bridges and currently owns 65 pedestrian bridges. The most recent OSIM inspection identified 5 bridges that are requiring full replacementin the next 5 years, this issue paper only addresses the most immediately pressing of these, the Trestle Bridgeon the Iron Horse Trail near Victoria Park. RATIONALE / ANALYSIS: Iron Horse Trail Lighting During the 2018 capital budget process, budget for both construction and lighting of the Iron Horse Trail north and south sections was included into the 2019 capital forecast as follows: IRON HORSE TRAIL C/C950,000 IRON HORSE TRAIL GRANT 700,000 IRON HORSE TRAIL RES-FEDGAS600,000 The grant portion ($700,000) identified above had been originally anticipated from The Ontario Municipal Commuter Cycling (OMCC) program however this program has been cancelled and no further funding will be issued by the province. This funding was proposed to fund a portion of the lighting of the north & south sections of the Iron Horse Trail estimated at $1,150,000 (including design, consulting & implementation).The proposed budget reestablishes the $700,000 of funding for lighting, funded through the Tax Capital reserve instead of a grant. The central section lighting is already under construction and will be completed by the end of 2018 through previously approved budgets and tenders. C - 188 CITY OF KITCHENER 2019 BUDGET ISSUE PAPER Iron Horse Trestle Bridge In addition to the lighting, the Iron Horse Trail Trestle Bridge supports the Iron Horse Trail crossing of Henry Sturm Greenway. The wood bridge narrows the corridor to 2.4m (from 3.6m) and changes surface (asphalt to wood). The last OSIM inspection (2016) identified the need for a full replacement of the Trestle Bridge. Operationally the bridge does not support maintenance vehicles, with wood plank replacement becoming increasingly difficult to secure to the degrading wood stringers. Replacement with a pre-fabricated weathered steel structure with concrete/asphalt travel surface will address maintenance & pedestrian/cycling user shortfalls. The bridge replacement is included in the proposed budget at an estimated cost of $425,000. FINANCIAL IMPLICATIONS: 1)Previously approved grant funding in the amount of $700,000 has been replaced with a transfer from the Tax Capital reserve to address the Iron Horse Trail lighting. 2)Funding of $425,000 is included in the proposed budget for the replacement of the Iron Horse Trestle Bridge. RECOMMENDATION: For information. C - 189 CITY OF KITCHENER 2019 BUDGET ISSUE PAPER ISSUE: Cap 06 – Existing Capital Balances FUND:Capital DEPARTMENT: All PREPARER: Debra Fagerdahl, Manager of Financial Planning BUDGET ASK: None BACKGROUND: Included in the capital budget package each year is a listing of existing capital account balances. The attached listing shows balances as at November 13, 2018 and provides brief commentary about each of the projects. RATIONALE / ANALYSIS: As a part of the annual budget process, staff undertakes a detailed review of all existing capital balances. During this review, staff evaluates the need for all approved funds, and in some cases close out balances in capital accounts to the appropriate capital reserve. These reserve funds can then be usedto fund other priority projects. This practice ensures that high priority projects are completed in a timely fashion and reduces the impact on rate increases. It is reasonable for the City to carry capital balances for a number of different reasons: th First, the attached report is as of November 13, and not as of the end of the year. This means that work on projects is still ongoing, and that the balances in accounts will continue to be drawn down until the end of the year. Second, some capital projects require coordination with other organizations (e.g. Region of Waterloo), which may have discretion over the timing of the project. In these cases, the City budgets for its share of the project in the year described by the other organization, but then has little say in when the project actually proceeds. This can cause a balance to remain in the account if the work is delayed. Third, the City uses a number of general provision accounts. Rather than budgeting for a specific project (e.g. City Hall roof), the City budgets this type of work at a more generalized level (e.g. Roof – General Provision). These general provision accounts typically have standard, annual funding transfers even though they may not have a specific project to fund every year. It is common for general provision accounts to build up balances over a number of years and then consume them for a single significant project. Using standard, annual transfers to general provision capital accounts helps smooth funding needs and avoids spikes in capital budget requests for large, costly projects. The attached listing of existing capital balances represents the funds that have been allocated by Council for capital projects. The balances shown in the attachment include encumbrances (e.g. tenders already approved by Council that have not been fully invoiced). At this time, the unexpended balance of all capital projects, regardless of funding source, is $55.2 million. C - 190 CITY OF KITCHENER 2019 BUDGET ISSUE PAPER In addition to the complete listing of existing capital balances, a listing of the Top 10 Balances has also been provided. These 10 projects account for nearly 79% of the total outstanding balance as of November 13 and have been arranged from highest to lowest. FINANCIAL IMPLICATIONS: None. RECOMMENDATION: For information. C - 191 192 - C 193 - C 194 - C 195 - C 196 - C 197 - C 198 - C 199 - C 200 - C 201 - C 202 - C 203 - C 204 - C 205 - C 206 - C 207 - C 208 - C 209 - C 210 - C 211 - C 212 - C 213 - C 214 - C 215 - C 216 - C 217 - C