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HomeMy WebLinkAboutFIN-20-068 - 2021 Capital Budget & 10-Year ForecastNote: Final approval of the 2021 Capital Budget & 10-Year Forecast will take place as part of Final Budget Day, scheduled for January 18, 2021. C - 1 C - 2 C - 3 C - 4 C - 5 C - 6 “Trails and cycling will connect Kitchener and create sustainable, safe, equitable, and healthy community for everyone year-round.” C - 7 C - 8 C - 9 C - 10 C - 11 12 - C 13 - C 14 - C 15 - C 16 - C 17 - C 18 - C 19 - C 20 - C 21 - C 22 - C 23 - C 24 - C 25 - C 26 - C 27 - C 28 - C 29 - C 30 - C 31 - C 32 - C 33 - C 34 - C 35 - C 36 - C 37 - C 38 - C 39 - C 40 - C 41 - C 42 - C 43 - C 44 - C 45 - C 46 - C 47 - C 48 - C 49 - C 50 - C 51 - C 52 - C 53 - C 54 - C 55 - C 56 - C 57 - C 58 - C 59 - C 60 - C CITY OF KITCHENER 2021 BUDGET ISSUE PAPER ISSUE: Cap 01 – Reserve Continuity Schedule FUND: Capital DEPARTMENT:All PREPARER:Ryan Hagey, Director 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 over 40 active reserves that collectively have a projected balance of $98Mat the end of 2020, dropping to $88M at the end of 2021.Reserves will play a key role in helping the City maintain financial flexibility throughout the COVID-19 pandemic, while avoiding more drastic measures like service reductions or significant rate increases. 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 ofneeding them. This helps avoid rate shock for significant expenses. RECOMMENDATION: For information. C - 61 62 - C 63 - C 64 - C 65 - C 66 - C 67 - C 68 - C 69 - C 70 - C 71 - C 72 - C 73 - C 74 - C 75 - C 76 - C 77 - C 78 - C 79 - C 80 - C 81 - C 82 - C 83 - C 84 - C 85 - C 86 - C 87 - C 88 - C 89 - C 90 - C 91 - C 92 - C 93 - C 94 - C 95 - C 96 - C 97 - C 98 - C 99 - C 100 - C 101 - C 102 - C 103 - C 104 - C 105 - C 106 - C E DDITIONAL FLEET VEHICL A 621506003 107 - C 108 - C 109 - C 110 - C 111 - C 112 - C 113 - C 114 - C 115 - C 116 - C 117 - C 118 - C 119 - C 120 - C 121 - C 122 - C 123 - C 124 - C 125 - C 126 - C 127 - C 128 - C 129 - C 130 - C 131 - C 132 - C 133 - C 134 - C 135 - C 136 - C 137 - C 900401035KOF MTCE-SPRINKLER SYSTEM UPGRAD900401036KOF MTCE - SPACE PLANNING900401033CITY HALL - EVAP FLUID COOLING BASIN900401034CITY HALL-SECUR CONTROL PANEL UPGR900401037CITS WASHROOM REFURB - SOGR PROJ900401038KOF SITE PAVING - SOGR PROJECTS900401039THE MUSEUM ROOF & WASHROOM-SOGR CITY OF KITCHENER 2021 BUDGET ISSUE PAPER ISSUE: Cap 02 – City Hall Building Envelope Rehabilitation FUND: Capital DEPARTMENT:Infrastructure Services – Facilities Management PREPARER:Lynda Stewart Manager of Projects and Energy Management BUDGET IMPACT:None (included in proposed budget) BACKGROUND: In November 2018, MTE Consultants were retained to review the spandrel glass panels and exterior panel cladding at City Hall. Visual observation shows most of the interior coating on the spandrel glass is deteriorating and some of the exterior panels are cracked or damaged and stained. All materials are original to construction of the building in 1993. MTE was asked to review the conditions, determine the mode of failure and recommend repair or replacement strategies for a future capital project. RATIONALE / ANALYSIS: The exterior cladding on the Berlin Tower is a glazed curtain wall composed of insulating glass vision units and single-pane spandrel panels with insulation in a back pan. The spandrel glass is 6mm tempered glass with an opaque vinyl coating on the interior side, which was applied using adhesives. The investigation found 65% of the glazing units have failed opacifier coatings. A section of spandrel glass was also removed for inspection and it was determined that there were no structural seals, and the glass units wereheld in place by mechanical fasteners top and bottom, and the weather seals at the side. Intermittent beads of silicone sealant were found that had been installed on site, presumably to behave as structural sealant, however it is not the class, type, size or configuration of structural sealant. The sealant should have been factory applied in a controlled setting to ensure proper mechanical and chemical bond between the glass and metal surface. It is not known that why the structural sealant was not applied at the time of construction. This does not meet the wind load requirements of the Ontario Building Code. In a bad windstorm, there is a risk that the added deflection in the glass would result in breakage. Since there is some mechanical retention, it’s unlikely that a full unit would become dislodged, but it is possible under extreme conditions. Repair strategies of applying a new film or replacement of the failed spandrels only are not recommended. Salvaging the glass would be costly and new film would need to be applied in a factory setting making the re-use of the glass unfeasible. Replacement of failed units only would be difficult to colour match new and existing units. The remaining units will continue to age and are predicted to fail at a higher frequency. The replacement of all spandrel panels is recommended to maximize the lifecycle of the asset overall and minimize repair or interim replacement costs. It should be noted that the failure of the film is not adversely affecting the curtain wall overall, it is primarily aesthetic. However, lack of structural sealant is a safety concern and is the rationale to recommend replacing the spandrel panels. With improvements in technology, it is now possible to retrofit structural sealant, however it is not recommended as removal of spandrel glass to install sealant will most likely result in separation of opacifier coating which will then require replacement of spandrel glass with the new coating. The opinion of cost to replace all spandrel panels is $1.93M. C - 138 CITY OF KITCHENER 2021 BUDGET ISSUE PAPER Cladding on various other elevations are a combination of granite, terra cotta and aluminum panels. The terra cotta and aluminum panels are generally in good condition, with surface staining due to air pollution and water run-off that should be cleaned. Some areas have broken/cracked panels or failed seals that should be repaired. On the granite panels, the following work should be done: repair or replace cracked or broken panels; install a waterproofing membrane between the curtain wall and granite panel; clean and seal the panels and repair and realign the panel anchors. The opinion of cost for thiswork is estimated to be $300,000. Given that all of this work relates to the building envelope, a combined project is suggested. This will achieve economies of scale, more efficient work processes, and reduced mobilization costs. The combined cost is estimated to be $2.23M if the work is completed with one mobilization and not over successive construction seasons. Cladding work cost will increase by 30% if done as a separate project. The work on City Hall Outdoor Spaces in 2021 and 2022 would preclude another contractor from working in that general vicinity. While the design work and tendering can be completed in 2022, the majority of site works will be completed in 2023. FINANCIAL IMPLICATIONS: The total budget for this combined project isapproximately $2.23M. The City currently has an existing capital balance of $192,000 for this work. The additional budget ($2.038M) has been included in the budget forecast with $538,000 in 2022 and $1.5M in 2023. It is anticipated the construction phase of the project will be tendered in late 2022. RECOMMENDATION: For Informationonly. C - 139 140 - C 141 - C 142 - C 143 - C C - 144 C - 145 146 - C 147 - C 148 - C 149 - C LPINE PARK TRAIL A 901306003PED BRIDGES-INSPECT & MTCE901306004PED BRIDGE 881 - MONTGOMERY CR901306006PED BRIDGE 898 MELITZER CR TRAIL901306007PED BRIDGE 903 IDLEWD CR TRAIL901306008PED BRIDGE ROTHSAY901306009STIRLING TO MADISON TRAIL901306010LAURENTIAN TRAIL901306011 150 - C 151 - C CANOE LAUNCH 901308004BUILDG REPAIRS - WOODSIDE PARK901308009PARK REHAB - IDLWD/KINZIE/CHICOPEE901308010PARK REHAB - ALPINE901308011SHOEMAKER (DMAF)901308012PROSPECT PARK (DMAF)901308013COUNTRYSIDE (DMAF)901308014MILLWOOD PARK (DMAF)901308016901308015WATER REUSE SYSTEM - RBJ SCHLEGEL 152 - C 153 - C 901310006ROCKWAY GARDENS - RECONSTRUCTION901310007ROCKWAY GARDENS ANNUAL REPAIRS901310008HNA ECOLOGICAL MGMT PLAN 154 - C 901311001TREE PLANTING901311002TREE STUMPING901311003TREE & RISK INSPECTIONS & MITIGATION901311004TREE CANOPY & PROTECTION 155 - C 156 - C 157 - C 158 - C 159 - C 160 - C 161 - C CITY OF KITCHENER 2021 BUDGET ISSUE PAPER ISSUE: Cap 04 – Shoemaker Creek Rehabilitation FUND: Capital DEPARTMENT:Infrastructure Services Department – Sanitary and Stormwater Utilities PREPARER:Nick Gollan, Manager, Planning and Programs BUDGET IMPACT:None (included in proposed budget) BACKGROUND: Shoemaker Creek is identified in the Stormwater Master Plan (ISWM-MP) as a Priority 1 subwatershed. Due to this, the rehabilitation of the Creek to address erosion and fix an exposed sanitary trunk sewer to mitigate risks of failure, is of top significance. The length of stream to be rehabilitated is approximately 1.1 kilometers and will connect to a new culvert being placed under Stirling Avenue as part of a road reconstruction project to allow fish passage to Lakeside Park. RATIONALE / ANALYSIS: The ISWM-MP and associated City report INS-16-047, endorsed by City Council on May 30, 2016 identified several large-scale watercourse improvement projects. One of these projects, the Shoemaker Creek rehabilitation, involves the restoration of Shoemaker Creek between Stirling Avenueand the railway corridor between Courtland Avenue and Mill Street. The proposed works include removal of deteriorating concrete channels, the creation of a natural channel (using the principles of natural channel design), removal of barriers to fish passageand improvements to the deteriorating inlets and outfalls throughout the study area. This project also qualifies for Fish Habitat Credits under the banking arrangement the City has with the Department of Fisheries and Oceans (DFO) Canada. In conjunction with the creek work, a new multi-use pathway identified in the Cycling and Trails Master Plan, a sanitary maintenance access over the length of the trunk sanitary sewer (where one does not currently exist) and an accompanying retaining wall have also been included in the scope of work. Parks and Cemeteries division is contributing funding towards the installation of the multi-use trail; however, the sanitary utility has not previously assigned capital funding to address the upgrades that primarily benefit the sanitary infrastructure. The completion of this work supports objectives of two (2) recently completed Master Plans in addition to providing protection to critical sanitary infrastructure and creating maintenance access for this section of the sanitary network. FINANCIAL IMPLICATIONS: The Shoemaker Creek Rehabilitation project was originally tendered in August 2020, and the tender closed on September 2, 2020.Seven bids were received, with the majority of the compliant bids falling within the range of $5.5M - $6.5M. The bid prices received exceeded the original project budget of $3.5M. In the analysis of the bid prices, it was determined that the bid prices were reflective of the true costs to complete this project. The resulting budget shortage was partly attributed to higher costs due to the tight timelines for creek work to be completed (imposed by DFO to minimize impact to resident fish communities), as well as budget development using a conceptual design estimate (Class C) that did not adequately price several component costs. C - 162 CITY OF KITCHENER 2021 BUDGET ISSUE PAPER Approximately $2.5M is required to be added to the Shoemaker Creek project budget, which will be re-tendered in Spring 2021. Based on the post-tender analysis in September, it was determined that approximately $2.0M of the overall project costs were directly associated to benefits for the sanitary utility (installation of an access road and retaining wall to protect the trunk sewer). Therefore, the sanitary utility will be contributing $2.0M from the Sanitary Capital Reserve. The remaining $500K of additional budget will come from the Storm Water Management Fee paid to the City by Developers that cannot meet required SWM criteria. This is not to be confused with the monthly stormwater rate all property owners are charged. RECOMMENDATION: For information only. C - 163 164 - C 165 - C