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Home My WebLink AboutFCS-13-156 - 2014 Capital ForecastStaff Report [ Finance and Corporate Services Department www.krtchener ra REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: November 21, 2013 SUBMITTED BY: Dan Chapman, Deputy CAO 519- 741 -2200 x 7347 PREPARED BY: Ryan Hagey, Director of Financial Planning 519- 741 -2200 x 7353 WARD(S) INVOLVED: All DATE OF REPORT: November 4, 2013 REPORT NO.: FCS -13 -156 SUBJECT: 2014 Capital Forecast RECOMMENDATION: For discussion. NOTE: Final approval of the 2013 Capital Forecast will take place as part of Final Budget Day, scheduled for January 30, 2014. BACKGROUND: The City's Capital Forecast provides for investments in infrastructure (assets) that provide a long term benefit to the community. Examples include recreation facilities, roads, and enterprise software systems. The projects included in the Capital Forecast can span a number of years, and could either create new assets for the City or renew existing assets. As part of the annual budget process, Council reviews, deliberates, and approves the 10 -year Capital Forecast. The objectives of this report are to: 1) Summarize the 2014 Capital Forecast 2) Describe the new investment priorities for the 2014 Capital Forecast 3) Summarize significant changes from the 2013 Capital Forecast REPORT: First Objective: Summarize the 2014 Capital Forecast The proposed 10 -year Capital Forecast includes 438 projects with a total cost of $939,954,000. The majority of the Capital Forecast remains unchanged from the prior year as capital needs are not volatile. Staff have reviewed all existing capital projects to ensure projects are proceeding as planned and reviewed all projects included in the Capital Forecast to ensure included projects are a priority. The following section highlights four key achievements of the proposed 2014 Capital Forecast. C -1 Staff Report [ Finance and Corporate Services Department www.krtchener ra The proposed Capital Forecast is balanced. Financially, this means there is adequate funding in every year to fund all of the projects budgeted for that year. Nearly 52% of the funding for the Capital Forecast is provided by the City's Enterprises, which are self- funding business lines the City operates and include Parking, Golf, Building, Water, Sanitary Sewer, Storm Sewer and Gas. The other significant funding sources are development charges (20 %), the tax supported capital pool (16 %), and reserves (11 %). Regarding priority, this means that high priority projects are completed first, and may mean that lower priority projects are deferred or cancelled. The proposed Capital Forecast has no additional impact on projected tax rates or utility rates. The multi -year projections for City tax and utility rates anticipate modest increases in future years. Part of these rate increases will be used to fund capital projects, but no additional rate increase beyond what is already planned is required as a result of the proposed Capital Forecast. The proposed Capital Forecast provides for focused investment. For 2014, the areas of focus include investment in: • Highly valued community amenities, such as community trails and major parks • Essential infrastructure, and • Critical business systems In order to add funding in these three highlight areas, City staff reviewed the existing capital forecast and reprioritized projects as necessary. Staff also used appropriate available reserve balances to fund work in these areas. The proposed Capital Forecast continues to improve the City's debt to reserve position. For the past number of years, the City has been carrying a higher than normal debt load and lower than normal reserve balances. This means that instead of paying for capital projects out of its own revenues, the City borrowed funding to achieve its capital goals. In 2014 and beyond, the City is projecting declining debt levels and increasing reserve levels. Second Objective: Describe the New Investment Priorities for the 2014 Capital Forecast In preparing a Capital Forecast, the overall goal is to develop a capital budget that is balanced financially, as well as in priority. The 2014 Capital Forecast achieves this balance and provides for new investment in: • Highly valued community amenities • Essential infrastructure, and • Critical business systems. The following text describes these investment areas in more detail. Investment Priority 1— Highly Valued Community Amenities Funding for highly valued community amenities has been added to the 2014 Capital Forecast, specifically in district parks and community trails. Kitchener has four district parks (Victoria Park, Kiwanas Park, McLennan Park, and Huron Natural Area), but only Victoria Park and Kiwanas Park had ongoing general provision capital accounts to deal with minor improvements and capital maintenance items. As part of the 2014 Capital Forecast, ongoing capital funding has been added for McLennan Park and Huron Natural Area to help maintain and improve these district parks. Staff will look to add to this funding in future budgets and bring the ongoing C — 2 Staff Report [ Finance and Corporate Services Department www.krtchener ra funding up to a level that sustains these district parks. Regarding community trails, funding has been added in 2014 which increases the budget for that year to the level recommended in the Multiuse Pathways and Trails Master Plan. Future years of the Capital Forecast remain below the recommended funding level, but staff will seek out ways to increase trail funding through future budgets. Investment Priority 2 — Essential Infrastructure Funding for essential infrastructure has also been added to the 2014 Capital Forecast, specifically for the Margaret Avenue bridge. Council recently received the Corporate Asset Management Program Update (report INS -13 -100), which advised that: • City infrastructure, for which detailed asset management plans have been completed, is generally in fair to good condition with confidence levels ranging from 60% to 90 %. Deficits for these assets exist but are seen to be manageable assuming that current levels of funding (plus annual construction inflation) are maintained and external, uncontrollable costs (e.g. water supply and sewage treatment) are not subsidized. • Some specific assets (e.g. water meters) are in poor condition and are funded significantly below what is required to sustain them. • The City needs to maintain existing investments in infrastructure over the next 10 years While these principles are generally true, some specific pieces of infrastructure are of high concern and must be dealt with in the short term. Margaret Avenue bridge is one of these pieces of infrastructure, and based on the multiple reports Council has received about the bridge, Council has approved its removal. Margaret Avenue is designated as a major collector roadway within Kitchener's Municipal Plan, and therefore a replacement bridge is required in the near term. Funding to replace the bridge has been included in 2014 -2016 of the 2014 Capital Forecast. Investment Priority 3 — Critical Business Systems Finally, funding for a critical business system has also been added to the 2014 Capital Forecast, specifically for the replacement of the City's tax /utility billing system. The City's current tax/utility billing system is called CIS (Customer Information System) and is used to bill and collect more than $500M per year. CIS is over 15 years old and has been maintained in -house by City staff for most of this time. Council has received multiple reports about the need to replace CIS with a piece of 3 d party software and has approved SAP as the preferred alternative. Funding to replace CIS has been included in 2014 -2021 of the 2014 Capital Forecast. Third Obiective: Summarize Sianificant Chanaes over the Prior Year Caoital Forecast Notwithstanding the items outlined above, the 2014 Capital Forecast is largely the same as the 2013 Capital Forecast. The changes that have been made to the Capital Forecast which can be grouped into two categories: 1) Significant Additions to the Capital Forecast 2) Adjustments Made Within the Capital Forecast As noted above, new additions to the Capital Forecast often require adjustments to other projects to balance the forecast. The tables below outline projects with changes in excess of $50,000 from the 2013 Capital Forecast to the 2014 Capital Forecast other than general provisions, which deal with ongoing annual capital maintenance and renewal of infrastructure accounts. C -3 a ffReport K:[ ,HE FSinarrce and Corporate Services Department www.krtchener ra 1 Si nificant Additions to the Ca ital Forecast IIIIIIIIV � I, uuiiiiiii � m 1piii uuuluui �i mmmlo u�Vmiiulllll IIII� C -4 IVII IVU °° � u 7Funding added in 2020 and 2023 for CAO Printshop $525,000 Capital from acement of printshop Photocopiers Current poocopiers at the end of their lifec cle. CSD Stage Replacement $227,000 Capital from Funding added in 2023 to replace at the Aud Current stage at the end of its lifecycle. Rink Floor CSD Replacement $1,028,000 Capital from Funding added in 2023 to replace rink at Kinsmen Current floor at the end of its lifecycle. Arena Fire Funding added over the forecast for CSD Communication $731,000 Capital from lifecycle replacement of this Equipment Current equipment. All funding was reallocated from other Fire ro ects. ........ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital from Replacement Current Funding added in 2014 -2021 to FCS of Tax /Utility $17,912,000 Gas, Sanitary, replace existing billing system System Storm Water, (report FCS -13 -126). Water CCTV Sewer Funding increased in the first five INS Inspection $308,000 Storm Water years of the forecast to complete additional ins . ec . i. . o. . . . . . . n. . . . . . s. . . . . . . ............ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Funding added over entire forecast to Fleet Equipment address backlog of deferred INS Equipment $767,000 Reserve purchases as identified during the Replacement annual equipment replacement process. Funding added in 2014 to match the INS Community $319,000 Capital from recommended funding level from the Trails Current Multiuse Pathways & Trails Master Plan. Funding added in 2014 -2017 for high INS Victoria Park $706,000 Capital from need park projects. Nearly half of this Current funding was reallocated from other park projects. Funding added in 2015 for park INS McLennan $390,000 Capital from roadway paving and $25,000 per year Park Current added starting in 2016 as a general .......................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. provision for the park. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Huron Natural Capital from $25,000 per year added starting in INS Area $200,000 Current 2016 as a general provision for the park. C -4 a ffReport K:[ ;HE FSinarrce and Corporate Services Department www.krtchener ra 0 Security Funding added in 2014 -2"17add Management $400,000 Gas security perimeters arounINS Program regulator stations as requrey TSSA. INS Gas System $100,000 Gas Funding added in 2014 to purchase a Model modelling system for gas. INS Water Main $740,000 Water Funding added to better reflect actual Re lacements costs. INS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Bridge Street . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $987,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Federal Gas Tax, Water, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Funding added to better reflect actual Storm Water costs. INS Highland Road, $306,000 Federal Gas Tax, Sanitary, Funding added to better reflect actual Ottawa Street Storm Water costs. INS Lang Crescent $390,000 Water Funding added to better reflect actual Reconstruction costs. INS Stirling Ave $524,000 Federal Gas Funding added to better reflect actual Bridge Tax costs. INS Shirk Place $269,000 Federal Gas Funding added to better reflect actual Bride Tax costs. INS Balzer Road $290,000 Federal Gas Funding added for rehabilitation of Bridge Tax existing bridge. Capital from Margaret Current, Funding added in 2014 -2016 to INS Avenue Bridge $672687000 Federal Gas replace the Margaret Avenue Bridge Tax, Gas (report INS -13 -076). Utility Funding closed out from existing INS Idlewood Creek $750,000 Storm Water project and rebudgeted in 2014 -2015 to better align the timing of the work. Stirling Ave Funding closed out from existing INS Storm Water $695,000 Storm Water project and rebudgeted in 2014 -2015 Storage to better align the timing of the work. INS Schneider $274,000 Storm Water Funding added to better reflect actual Creek Channel costs. Funding added in 2014 for contract INS RAIN Program $230,000 Storm Water extension as approved by Council (report INS -13 -073). C -5 Staff Report [ Finance and Corporate Services Department www.krtchener ra 2) Adjustments to the Capital Forecast The following projects were adjusted in the capital forecast to a) better align the timing of the work to be performed, b) reduce budgets to reflect anticipated savings, or c) better balance the capital forecast in a specific year. I °ii��l a luu�ul.m � it pmm � u IIIIIEnvironmental Funding reduced and adjusted to better balance forecast. Remediation Development Removed $127,000 over entire forecast to better reflect projected costs. Char e Act Stud Safe and Healthy Removed $268,000 over entire forecast to better reflect projected costs Advisory Committee (report CAO -12 -047). . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fire — Major Removed $700,000 in 2015 based on the projected replacement costs and E ui ment/Fleet timing of this a ui ment. Gas Pipelines Removed $181,000 over entire forecast to better reflect r2jected costs. Light Rail Transit Modified timing of costs to Gas utility based on new information provided by the Region of Waterloo. Shut Off Valve Removed this general provision account from the Water utility as this is now Provision a homeowner res onsibilit . ......... ............................... .................... ... Road Timing of specific projects included within the Accelerated Infrastructure Reconstruction Replacement Program (AIRP) adjusted based on priority and funding constraints. ...... F. ree....... ort... Sewa....... e ........................... ..DeVe.�o.......m.e.nt....char. e......fu.n.d.�.n........ moved........ fro. m..... 20..1..4....to....20..1..5..... as..... th. i .S....WO.rk....wLLL....Inot.... p g p g g Pum in Station be pr2ceeqJ,ng in 2014. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Foundation: Efficient and Effective Government Goal: Financial Management Strategic Direction: Strive for competitive, rational and affordable taxation levels FINANCIAL IMPLICATIONS: The Capital Forecast is balanced and funding requirements for the Capital Forecast have been included in the corresponding operating budgets. COMMUNITY ENGAGEMENT: For the 2014 budget process, staff will employ a suite of traditional and electronic engagement methods in an effort to effectively inform and consult citizens. Staff will again receive feedback through mail or phone call, advertise the budget meeting schedule in City facilities and online, establish a dedicated budget web page which will contain all public budget information, and post budget updates on the City's Facebook page and Twitter feed. As well, two new initiatives piloted during the 2013 budget process will be continued for the 2014 budget process in an effort to further engage the public. These two methods are: • An "Ask An Expert" session on Facebook dedicated specifically to the 2014 budget • An interactive budget website which allows citizens to vote for various budget options and provide written feedback. C -6 Staff Report [ Finance and Corporate Services Department www.krtchener ra The dedicated budget website containing all public budget information and the interactive portion of the website is currently available. The interactive portion of the budget website allows residents to model different budget scenarios by choosing which strategic initiatives or alternative revenue items they support and then allows them to see the impact on their projected tax bill in real time. Based on the array of public input opportunities, citizens will be able to provide their input by: • Writing /phoning City Hall • Attending the public input session planned for January 2014 • Attending the virtual Ask An Expert Facebook event dedicated to the 2014 budget • Responding to the City's Facebook /Twitter posts about the 2014 budget • Completing the questions on the interactive budget website • Contacting their ward councillor ACKNOWLEDGED BY: Dan Chapman, Deputy CAO (Finance and Corporate Services) C -8 rw�oupk, M CN O CN qq T CN N ca v d L 0 Lim �a .Q V uuuuuuuuuu� cn LiIiiiiiiiiiiiiiiiiiii LiIiiiiiiiiiiiiiii o 0 M TOM O N TOM N L 0 Ja i 0 z C -9 rw�oupk, C- 10 (D U), •> W a) > p� C) a) U) cn -0 > a) U C6' o c- O cu C6 U_ O U Q -o O O CO N N O O M O co cn E E E C6 C6 O 0) > U M D O 0 O C6 C6 Q Q z I 0 C- 10 rw�oupk, M!IE .(D 1 Ll W U O A, C) LL m Q. m U Ll LL O A.-a o .0 C/) a) a) 7aw-2,719, . . COOO O E O 42 cn C� U O O LL c� c� U Ll L ^C� W L O . 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N U '- Z .- L X C - 72 O cm U) AMP ° 0) ., 0' •Q o E a) 4a m cn �O o N N O O Q m U- _� — — C - 72 U N m L U C6 rw u',. .L r O C/) N cu E N O .� E CL -0 0 O v U �CY)o� N C L .x O N — w 3: C: Lu v O L a c� E 0 U) Q CD CD _ is O Cn Cn M C- 73 cn _r_ c� U O 0-+ � U � CD 0O C U I Q U c Q N CO � 0 O � .O U C', C'7 cu O O N N LJJ v � � � LLJ � Cn � -0 O U 0� m M C- 73 c� U U � CD z U I Q M C- 73 rw�oupk, 0 C - 74 rw�oupk, O O ry m m p W O Ll C- 75 V, CU C W L O L� }O C: W .O A.-O L E 42 con ♦^ E W 0 2-0 0� U M� Ll C- 75 C- 76 Capital Budaet Issue Paper Index IP # Description Included in Proposed Budget? Cap 01 Existing Capital Balances N/A Cap 02 Customer Information System (CIS) Replacement Yes Cap 03 Kinsmen Rink Floor Replacement Yes Cap 04 Planning Framework in Lower Doon and Doon Pioneer Park No Cap 05 Margaret Avenue Bridge Replacement Yes C- 77 ISSUE: CAP 01 - Existing Capital Balances FUND: Capital DEPARTMENT: All PREPARER: Debra Fagerdahl, Manager of Financial Planning BUDGET IMPACT: None BACKGROUND: Current reporting capabilities do not allow for the addition of existing capital balances to the ten year capital forecast report. As an alternative, a listing of capital account balances as at September 30, 2013 has been provided. RATIONALE / ANALYSIS: In preparation for the presentation of the capital budget to the Finance and Corporate Services Committee, staff has provided a listing of the existing capital balances, including 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 $70.1 million. Commitments have already been made to a number of projects that will continue to advance in 2014. Some of the more significant projects include: • Kitchener Public Library $9.SM • New Construction projects (e.g. Blockline Road E $1.2M) • Full Re- construction projects (Idlewood Creek $1.8M, King St. $1.8M) • Pumping Station Upgrade (e.g. Freeport $ 6.1M, Old Mill $1.2M) • Customer Information System $1.9M FINANCIAL IMPLICATIONS: Not applicable. RECOMMENDATION: Information only. 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G! G! G! G! G! G! G! w w w w w w w w N N N N N N N N w w w w w w w w G! G! G! G! G! G! G! G! H H H H H H H H U U U U U U U U LL LL LL LL LL LL LL LL G! G! G! G! G! G! G! G! H H H H H H H H a a a a a a a a LL LL LL LL LL LL LL LL Z Z Z Z Z Z Z Z C -92 ISSUE: CAP 02 - Customer Information System (CIS) Replacement FUND: Capital DEPARTMENT: Finance & Corporate Services Department — Revenue Division PREPARER: Saleh Saleh, Supervisor of Collections and Payment Processing (519- 741 -2200 extension 7346) BUDGET IMPACT: $17,912,663 increase (funded through existing capital and Enterprise reserve funds) BACKGROUND: At the September 9, 2013 Finance and Corporate Services Committee, staff provided an update on the replacement options for the City's existing property tax and utility billing system — Customer Information System (CIS). The staff report (FCS -13 -126) confirmed SAP Customer Relationship & Billing (CR &B) as the preferred option at an estimated cost of $19,912,663. RATIONALE / ANALYSIS: The staff report on September 9, 2013 clearly identified that the preferred solution for the replacement of CIS is SAP CR &B. The cost of the SAP CR &B implementation project is estimated at $19,912,663. It is expected that funding for the project will be required in years 2014 — 2016, which is when the project will be implemented. The proposed ten year capital forecast for 2014 — 2023 currently includes $17,912,663 of the funding related to this project. The remaining $2,000,000 will be funded through the existing balance in the CIS Capital account. Further, the Storm Utility portion of the funding will be allocated in 2017 — 2021 which is when funding will be available in the enterprise. The portion of the ten year capital forecast that relates to the SAP CR &B project is presented below. Project Name: Enhancements to Tax /Utility System Source 2014 2015 2016 2017 2018 2019 2020 2021 Total C/C 745 1,694 69 - - - - - 2,508 ENT -GAS 2,792 6,364 338 - - - - - 9,494 ENT -SAN 580 1,321 70 - - - - - 1,971 ENT -SWM - - - 394 394 394 394 393 1,969 ENT -WAT 580 1,321 70 - - - - - 1,971 4,697 10,700 547 394 394 394 394 393 1 17,913 It is expected staff will commence the vendor selection process for the SAP CR &B implementation project through an open Request For Proposal (RFP) in 2014. FINANCIAL IMPLICATIONS: The total implementation costs for the project will be approximately $19,912,663. RECOMMENDATION: That funding for the SAP CR &B implementation project be approved as presented in the 2014 capital forecast. C -93 ISSUE: CAP 03 - Kinsmen Rink Floor Replacement FUND: Capital DEPARTMENT: Community Services Department, Enterprise Division PREPARER: Jeff Coulter, Supervisor of Event Operations Paul Pickard, Manager KMAC & Community Arenas BUDGET IMPACT: $1,027,995 increase BACKGROUND: The Kinsmen arena was built in 1987. The life expectancy of a rink floor is 25 -30 years. RATIONALE / ANALYSIS: By 2023, the rink floor at the Kinsmen Arena will be approaching the end of its lifecycle. Replacing the floor will ensure a safe playing surface for floor rentals and safe installation of ice during the ice season. FINANCIAL IMPLICATIONS: A total of $1,027,995 is required in 2023 for the replacement of the Kinsmen rink floor. RECOMMENDATION: That funding for the Kinsmen Rink Floor Replacement be approved as presented in the 2014 capital forecast. C -94 ISSUE: FUND: DEPARTMENT: PREPARER: BUDGET IMPACT: BACKGROUND: CAP 04 - Planning Framework in Lower Doon and Doon Pioneer Park Capital CSD — Planning Alain Pinard, Director of Planning $ 50,000 — $ 75,000 On June 24, 2013, City Council referred an investigation into changes to the existing planning policies and zoning regulations in the Lower Doon and Doon Pioneer Park areas, to the 2014 budget process as a potential strategic addition. This issue paper provides information on the potential areas of focus for such a study, as well as the resources required to complete this work given other priorities within the Planning Division that are either already underway, or are deemed a higher short -term priority by staff. RATIONALE / ANALYSIS: Staff has considered the potential to investigate changes to the existing planning policies and zoning regulations in these two areas of the City and have identified three Planning matters that could be studied further: (1) Revisiting Lower Doon Block Plan 58 Is this vision still valid? Are there merits in a new vision that would include well designed, purpose -built housing for students? (2) Revisiting duplexing restrictions in the area Are the conditions that justified this restriction still valid? What are the advantages and disadvantages of removing this restriction? (3) Creating a high density precinct near Conestoga College Where would it be? Should it be incorporated as part of a larger focal point at the intersection of Homer Watson Boulevard and Conestoga College Parkway that is currently being explored in the new Official Plan? What are the advantages and disadvantages? Should the new Official Plan be completed first? What is the demand for this housing form near Conestoga College? Would additional supply of this housing form reduce the rate of conversion of low rise dwellings? It is important to note there are strict limitations on attempting to use the land use planning process to deal with behavioural and safety issues. For this reason, there is no guarantee that studying these three Planning matters would result in meaningful changes that will address the behavioral and /or safety issues identified by a variety of stakeholders in the areas. FINANCIAL IMPLICATIONS: Given the existing workload of Planning Division staff who are already working on other priorities, staff do not have the capacity to take on this new Lower Doon /Donn Pioneer Park study within existing resources. C -95 To undertake a new study of the existing planning policies and zoning regulations in the Lower Doon and Doon Pioneer Park areas, Council would need to reprioritize existing priorities and hire an external professional planner. The following provides two options Council may wish to consider to engage an outside consultant to complete this work: Option #1: Study all three components listed above (Donn Block Plan 59, duplexing restrictions, high density precinct) $75,000 + city staff time (approx. 100 hours) Option #2: Study any one component listed above $50,000 + city staff time (approx. 80 hours) Funds within the existing Planning Studies account (Capital) have already been allocated or are intended for the other higher - priority initiatives. Most of these initiatives are already underway and /or identified in the corporate business plan. As a result, additional funding would be required ($50,000 - $75,000) and 80 — 100 hours of staff time would need to be re- allocated in order to proceed. The Planning Studies account includes a growth - related component that is funded through Development Charges and a smaller, non - growth component that is tax supported. Several projects have growth - related and non - growth components and are funded by both sources. Because this item is not growth - related, it cannot be funded through Development Charges. The following table provides a summary of the non - growth Planning projects that have already been allocated capital funding. These projects are not funded through Development Charges. PLANNING STUDIES CAPITAL PROJECT NON - GROWTH RELATED (NOT D.C. FUNDED) o1 iciad (Plan Review 4,1G ,01 Zoning Bylaw Review 12,10010 12,1G 01 Cultural Heritage (Landscape study 310,1,010 3110,10010 Other Planning iniativeF, 1,000 3,10100 3,10010 Total 5,000 1 45,000 Beginning Balance Expenses per above Funclin:gfrarntax Base Ending Balance RECOMMENDATION: For information and consideration by City Council. 71,928 72,7106 34,706 5,000 45,10,010 45,0010 5,778 7,000 11,1000 72,7606 34,706 7606 C -96 ISSUE: Cap 05 — Margaret Avenue Bridge Replacement FUND: Capital DEPARTMENT: Infrastructure Services - Engineering PREPARER: Chris Spere, Manager, Engineering Construction BUDGET IMPACT: $6,268,000 increase BACKGROUND: The Margaret Avenue Bridge was constructed in 1959 and rehabilitated in 1986 and 2003. An engineer's report commissioned in 2013 determined this bridge has a similar joint configuration as the bridge that collapsed in Quebec in 2006. As such, the bridge has been closed to pedestrian and vehicular traffic. RATIONALE / ANALYSIS: As identified by two engineering firms retained by the City to complete an assessment of the existing bridge, the Margaret Avenue bridge required immediate attention. This immediate attention includes the removal of the bridge decks followed by the replacement of the structure. Margaret Avenue is designated as a major collector roadway and includes a significant density of residential development that generates high traffic volumes. It is also a major cycling network link between Kitchener's Downtown and the City of Waterloo. The linkage of Margaret Avenue to Victoria Street is very important in serving the needs of the neighbourhood. At a special Council meeting on September 9, 2013, Council approved staff's recommendation to remove the existing bridge, and directed staff to find funding sources to pay for a new bridge as part of the 2014 budget process. FINANCIAL IMPLICATIONS: Funding of $6,268,000 has been included in the 2014 capital forecast. This funding is made up of $4,768,000 of federal gas tax funds, $1,200,000 from capital from current, and $300,000 from the Gas utility. RECOMMENDATION: That funding for the construction of Margaret Avenue Bridge be approved as presented in the 2014 capital forecast. 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o z c Ir U N af U Z p w H U) O Q = w ui O Z a C (� U Z_ Z d U > Q Y U) O L � d O O Q W H H H H H H H H H H H H H H H H H H H H H H H H H 9 af Q L Z _ m z Z J Z W U- V (0 r- O O 0 N 00 �/ O O O O O O O O O O = LO w y O O O O E o � JE N o N 0 N 0 N 0 N 0 N 0 N _ O 0 M c a` +, Q> w 3 O R U o o in zl z a C - 146 ^� N �D r- (fl 00 r- 0) V N CO I- CO 0) 00 � 0 N V N 0 V 0 a N co 00 00 N Q N 0 I- V I- V 0 CY) [- V V (O 00 (h V N CY) N N 00 V Lfi Lfi O w U O o ~ Z Z S Z ZO O. r Z Z U Z >� >Q LOU Q > > > QQ d' Q > > >Q LL' W Q > > >Q N co > > >Q Q > > >Q Q i (n > LL (n (n > W (n (n > W LL (n (n M W (n (n > W (n (n > W (n 7 C H H (n H H H 2 H H H 2 (n � N H H 2 H H H 2 H H H 2 H O 7 Z Z W Z Z Z H Z Z Z O W Z Z Z H Z Z Z H Z Z Z H Z cN LL W W W- W W W O W r N r W O Of W W W O W W W O W W W O W � Q M U H U Z < U O O w W Q V Z Y W r O C • — U d D U J W p U y O Q O m Z Q E m m w a C7 V U z O a cai� LL 0 L d O N W U H H H H H H H H H H H H H H H H H H H H H H H H H 9 O �I (o Q Z _ m LL Z z J N N V Z W LL 00 0) O M V N V O 'IT O O O O O O O O O O O O w N C y O O y E E .� JE N o N 0 N 0 O N 0 N 0 N O 0 e c (o (o W M CL > d O R U N o a) co zl (fl V z a �I O (fl 00 p N (O N N OOI N O N �I N N N � N O N O O V � I N O N N r Lo 00 V N N 0 CD 1041 N � O ONO N V N N (fl N I V N N � N V L O LL. o_ 0 0 N U) U) N J < O N Q z Q O w U O o ~ Z Z S Z ZO O. r Z Z U Z >� >Q LOU Q > > > QQ d' Q > > >Q LL' W Q > > >Q N Q > > >Q Q > > >Q Q i (n > LL (n (n > W (n (n > W LL (n (n > W (n (n > W (n (n > W (n 7 C H H (n H H H 2 H H H 2 (n H H H 2 H H H 2 H H H 2 H O 7 Z Z W Z Z Z H Z Z Z H W Z Z Z H Z Z Z H Z Z Z H Z cN LL W W W- W W W O W W W O Of W W W O W W W O W W W O W N N J < O N z O w U o S > ZO O. r W Z U O m w O U d N O Y Q W �+ (n ~ C1 Z U W m 3 Z O0 O w O w w O W ~ (�j V � ZO o L J C w w 0 w O Of m O U a LL "' Y o+ LL w� p R Q Q c � Q u U H U Z < U O O w W Q V Z Y W LL O C • — U d D U J W p U y O Q O m Z Q E m m w a C7 V U z z a cai� LL 0 L d O Q W U H H H H H H H H H H H H H H H H H H H H H H H H H 9 O Q Z _ m LL Z z J V Z W LL 00 0) O M V N V 'IT O O O O O O O O O O O O w C y O O y E E .� JE N o N 0 N 0 N 0 N 0 N 0 N O 0 e c a` W CL > d O R U o o a) co zl z a C - 147 � 0 \ � � 2 - o m 0 r» m r z 0 0 » m r m » r 0 0 0 0 r e »» « m r R r r < m �§ o a o r- r m r o a r r e 0 0 e» 0 0 » m r - o - 4 r o r � < 4 �. m C4 m m w m m w m ® ; w m m w m m w m m �2 & & z & & & z & & & z & & & z & & & z & co & z & & om z z e z z z e z z z e z z z e z z z e z z z e z z mL �LLI U) o w w w o w w w o w w w o w w w Q w w w o �LLI 0 0 ■ w \ ° o ¥ e e CD 0 § g / 0 U) Lu / LU CRI E \ k \ z ( z Im § / § Q j i ± \ \ / \ U) E p z CD ® UJ < § 2 o ƒ { 3 ui / § § _ " 0 § \ \ \ \ \ o o § \§ 2 k o k § ± o k 3 0 o § \§ w e e w e r e w e r e w e r e w e r e w e r e e e I § � 2 § \ j - R® 3 2 2 R G p R 2 2 S S G S S S S m ) g g g g g g g + k ) a JE ( § o ( ( ( ( /: j / § - ) q / & _ f t » U o 8 $ z z a - 148 2 ° 2 3- 2° 2 3^ 0 9) § § r 2 2 m 9 R g- 9 g m^ \ / / \ \ \ ) CD � 0 \ � � 2 - 2 e z e z e e z M e z e z e z (� 4 < 4� W- < 4 < 4 < 4 < 4 < 4 < 4 < 4 < 4 < 4 < 4 < 4 �. m C4 m m w m m w m m ; w m m w m m w m m �2 & & z & & & z & & & z & & & z & & & z & & & z & & om z z e z z z e z z z e z z z e z z z e z z z e z z mL �LLI U) o w w w o w w w o w w w o w w w o w w w o �LLI e � M z _ C4 0 0 o U) C4 LLI ; e _ ¥ 2 \ \ § 4) $ z E 0 U) I U) 0 » k 2 ■ \ o 0 0 ■ w \ ° o ¥ e e J 0 § g / 0 U) Lu / LU < E \ k \ z ( z Im § / § Q j i ± \ \ / \ U) E p z , ® UJ < § 2 o ƒ { 3 ui / § § _ 0 § \ ui \ o o § \§ k o k § ± o k 3 0 o § \§ w e e w e r e w e r e w e r e w e r e w e r e e e I § 2 § \ j - R® 3 2 2 R G p R 2 2 S S G S S S S m ) g g g g g g g + k ) a JE ( § § ( ( ( ( /: j § - E & _ f t » U o 8 $ z z a - 148 ^� N V O O 00 (h CY) O N 00 V I- N N 0 00 O V 0 N m O V N a R N N 00 O V Lo N I- V 00 O V LO LO (h O I- 0 (h I- V (`") 0 I- I- (h O LO m m 00 00 — 0 LO m m N O O (O (h H LLI z a, r w I p Z �> >Q d' Q > >Q d' Q > >Q d' Q > >Q d' Q > >Q d' Q > O o' w Q > LLI () (n > LLI (n (n > LLI (n (n > LLI (n (n > LLI (n (n > LLI LL () (n L 7 C H 2 H H H 2 H H H 2 H H H 2 H H H 2 NI H H 2 0 H H O 7 Z H Z Z Z H Z Z Z H Z Z Z H Z Z O LO 9 O Z Z Z H W Z Z W LL. 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2 § § § ) CA 2 LO ° R $ § ) ® § m o 2 S q ƒ) o w < ui z E z o- E r 3 S IL ' g S 2 F ° \ / ) R \§ u r o m 2 I e m m i { g 3 / \ / \ 0 0 0 r\ < z ƒ e ® r Q w- e z 2 ) / § G 2\ 3$ @ ) 8 S g ° \ CY) 00 \ / LO 1041 + 0 2 (D � JE m m { q ƒ § % ( \ g § 0 k � � 0 LL \ � 2 \) )) § § \ \ z z LLI LLI < \ < z z z LLI LLI LLI E > g » o 8 $ z \ $ \ 0 0 \ § \ § 0 \ \ \ 0 \ o \ \ \ \ \ § \ / / \ \ 2 k k ( L § _ z a C — 169 § / \ C4 j § LLI / C4 0 \ 2 � z { I Of / ± z $ 0 2 j \ § § § z / / ƒ ƒ o U) e e o § \ o ® k E\ 0 ± @ 2 < E k } E \ m / a > ° _ ° 2 G z ° co _ ® ƒ 0 LL < 2 0 w-<§ E §_ E § § § 0- ° R $ § ) ® § m o 2 \ = ƒ) o w < ui z E z o- E 3 S IL ' / ) E F ° ƒ / R R \§ u o m 2 I e m m i { ± 0 0 0 r\ < z ƒ e ® Q w- e z 2\ 3$ @ ) 8 S g ° \ \ \ \ / / / + 2 JE m m { ƒ § ( \ \ \ \ \ 0 k E > g » o 8 $ z \ $ \ 0 0 \ § \ § 0 \ \ \ 0 \ o \ \ \ \ \ § \ / / \ \ 2 k k ( L § _ z a C — 169 � 0 LL \ 0 k o g m \ r o r r r r r o 0 o 0 o r 0 r j m o m m r � o » � 0 j 0 0 « o o § o r 'IT r m 'IT R o m o %\ § LO 'IT z FO � 0 o a o C L LLI e e LLI e LLI a o r + A e LLI e LLI e LLI m \ = � o Of / j j LL, 0 co / \ M 0 � IL S 3 ƒ e § o e ƒ ) j § O E E± § a LL w- 2§ / \ e / § / ] < af ) 2 UJ Of / § § j / Ir \ z § 0 Of { \ Of c § / § / / o \ § e o LLI \ / 0 O 0 0 § o CD e \ § ) / ® d 0 0 " / 2 \ 3 \ / f } \ § U) \ 2 / / ) 0 ) / 0 / JE m 0 0 k 2 ( § § - 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