2015-2018 final capital plan -...

Council Meeting Sept. 30, 2014

2015-2018 Final Capital Plan

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Strategic Capital Investments (2015-18): $1.635B

Capital investments for the next 4 years: • 2015-18 Capital Plan ($1.085B new investments)

• multi-year projects from 2012-14

Capital Plan to be delivered in 2015/16 ($200M approved investments) • Rezoning-related in-kind amenities to

be delivered in the next few years ($300M approved investments)

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Capital Planning Framework

Long-term Strategies

& Plans (see below)

Public Engagement

10 Year Capital

Strategic Outlook

4 Year Draft

Capital Plan

4 Year Final

Capital Plan

1 Year Capital Budget

Public Engagement

Phase 2

Public Engagement

Phase 1 Plebiscite

Examples: Greenest City Action Plan, Housing & Homelessness Strategy, Transportation Plan, Healthy City Strategy, Cultural Plan

May Aug-Sept

July Sept

Nov 15

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• Public Engagement

• Proposed Investments

• Funding Strategy

Agenda

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Public Engagement – Approach

IDENTIFY PRIORITIES

REVIEW DRAFT CAPITAL PLAN

May 2014 Aug-Sept 2014

Draft Capital Plan

Final Capital Plan

NEW INITIAL PHASE

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It’s not easy to entice people to talk about finances. We tried to make it relevant to their lives.

Public Engagement – Communications

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Public Engagement – Participation

May 5 – 18: ~1,000 participants

Aug 15 - Sept 14: ~2,000 participants

• Open survey on web (963) • In-person events: 2 public,1 multi-group

workshop (30) • Stakeholder idea collection for Park

Board projects (44)

• Open survey on web (1,087) • Random sample survey (526 residents, 269

businesses) • In-person events - 2 public,1 multi-group

workshop, individual group meetings (155)

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Public Engagement – Participation

Capital Plan Open Survey Random Sample Survey

2003-2005 236 no survey

2006-2008 372 636 residents

2009-2011 137 600 residents & 300 businesses

2012-2014 200 600 residents

2015-2018 1,087 526 residents & 269 businesses

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What did we hear from the public when we went out in May?

Community Priorities – Prior to Draft Capital Plan

RENEWAL Top five city infrastructure

Waterworks

Sewers

Sidewalks

Seawall and trails

Natural areas

NEW Top three investment priorities

Rapid transit (TransLink)

Affordable housing

Childcare

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Explaining the Content of the Draft Capital Plan

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RANDOMLY RECRUITED SAMPLE • recruited by telephone and provided with a unique URL to complete

online • Two sample groups collected: Residents & Businesses • English & Chinese

OPEN SURVEY ON WEB (same questions) • vancouver.ca • Talk Vancouver panels • public open house events

Survey Methodology - Two-pronged Approach

Final results show similar responses from all sources

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Does draft plan reflect community priorities?

Response Open Survey Resident Sample Business Sample Yes 28% 23% 22%

Unsure/don’t know 31% 40% 42% No 41% 37% 36%

• 22-28% agree that the Draft Capital Plan reflects community priorities

• 31-42% are unsure

• 36-41% feel we didn’t get it right and of those, most want to see: o an increase for childcare o an increase for community

facilities

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Balance between renewal & new assets

• 71-74% agree that the Draft Capital Plan has the right balance between renewal & new assets

• those who disagree favour renewal over new assets



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Do you support proposed funding strategy?

Funding sources (who pays)

Payment methods (when to pay) • 52-54% are supportive

• 13-22% are unsure

• 26-34% are opposed

o comments referenced debt and developer contributions



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• Proposed New Investments


Agenda

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Strategic Capital Investments (2015-18): $1.635B

Capital investments for the next 4 years: • 2015-18 Capital Plan ($1.085B new investments)




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Affordable Housing

Parks & Recreation $125M

Childcare

Equipment & Technology

Community Facilities City Facilities

Utilities

Transportation

Parks and Recreation

Emerging Priorities

2015-18 Final Capital Plan: $1.085B New Investments

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Affordable Housing

Council Policies • Housing & Homelessness Strategy (2011) Guiding Principles • Non-market housing: maintain existing stock in

acceptable condition + increase supply • SROs: gradually replace with non-market

housing + upgrade conditions of existing stock Investment Strategies • optimize value for City contributions through

strategic partnerships • rationalize design to improve cost-

effectiveness • prioritize securing new units through rezonings

Partner with the Province, BC Housing & NPOs to achieve deeper affordability

Total Investments $362M

Target: 2,801 units (251 renewal + 2,550 new) + 400 SRO upgrades

Renewal ($40 M) • 3 City-owned projects in DTES (251 units): Roddan, Central & Alexander • ongoing capital maintenance & renovations • capital grants for SRO upgrades (~400 rooms) New ($85 M) • 2,550 units of non-market rental:

• 30% City-owned projects • 45% non-City owned projects on City Land • 25% partner projects

• secure shelter & interim housing sites with partners

Public Feedback

Long-term priorities (Phase 1) • New: affordable housing ranked 2nd out of 7 priorities

2015-18 priorities (Phase 2) • support investments

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Affordable Housing

2015-18 Capital Plan Multi-year Projects (2012-14 Capital Plan)

Rezoning-related In-kind Amenity

$125M $67M $170M

Total City Investments $362M

Note: City contribution is expected to leverage over $200M of partner funding

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Affordable Housing

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Childcare

Council Policies • Healthy City Strategy • Economic Action Strategy (2011) Guiding Principles • maintain facilities in acceptable condition • increase supply Investment Strategies • optimize value for City contributions through strategic partnerships • rationalize design to improve cost-effectiveness • prioritize securing new spaces through rezonings

Partner with Park Board, Vancouver School Board & community partners to deliver childcare


Target: 1,100 spaces (100 renewal + 1,000 new)

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Childcare

Renewal ($5 M) • 1-2 City-owned facilities (Britannia + one

additional) • ongoing capital maintenance & renovations • capital grants New ($25 M) • 400 daycare & pre-school spaces (0-4 yr old) • 500 before & after school care spaces (5-12

yr old) In-kind CACs • 100 new daycare & preschool spaces

Public Feedback

Long-term priorities (Phase 1) • New: childcare ranked 3rd out of 7 priorities

2015-18 priorities (Phase 2) • increase investments



$30M $10M $9M

Final Plan

• prioritize in-kind amenities through rezoning


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Childcare

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Parks & Recreation

Council Policies • Greenest City Action Plan (2011) • Park Board Strategic Plan (2012) • Urban Forest Strategy (2014) Guiding Principles • maintain facilities to acceptable conditions • accommodate needs to address growth

Investment Strategies • optimize value for City contributions through

strategic partnerships • explore co-location & functional integration

opportunities to enhance service level & cost-effectiveness


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Parks & Recreation

Renewal ($82 M) • Britannia Phase 1 renewal • Marpole-Oakridge Community Centre renewal • Hastings Park/PNE renewal • ongoing replacement of park & open space

features New ($72 M) • 40,000-50,000 new trees • new parks (e.g. DT South, Fraser River

(Marpole), East Fraser Lands) • new sport facilities (e.g. track & field, synthetic

turf playfield, running tracks)

Public Feedback

Long-term priorities (Phase 1) • Renewal: seawall, natural areas & community centres ranked 4th, 5th & 6th out of 19 choices

2015-18 priorities (Phase 2) • add Marpole-Oakridge Community Centre renewal

Final Plan

• funding earmarked for Marpole-Oakridge Community Centre renewal in Emerging Priorities pending decisions on location & scope

2015-18 Capital Plan

Multi-year Projects (2012-14 Capital Plan)


$155M $24M $75M


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Parks & Recreation

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Community Facilities: Libraries, Social & Cultural

Council Policies • Vancouver Public Library Strategy (2013-15) • Culture Plan for Vancouver Guiding Principles • maintain facilities in acceptable condition • accommodate needs to address growth &

changing demographics Investment Strategies • optimize value for City contributions through strategic partnerships • explore co-location & functional integration



Renewal ($30 M) • Evelyne Saller in DTES • Marpole Library • ongoing capital maintenance & renovations

• library branches • kitchen upgrades at Gathering Place & Carnegie Centre • cultural facilities

• capital grants (social, cultural, mural, heritage facades, DTES) New ($25 M) • Central Library expansion (Levels 8 & 9) –

increase in indoor public space + publicly accessible rooftop garden

• Qmunity relocation & expansion

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Community Facilities: Libraries, Social & Cultural

Public Feedback

Long-term priorities (Phase 1) • Renewal: libraries & cultural facilities ranked 9th & 14th out of 19 choices

2015-18 priorities (Phase 2): • increase investments



$55M $35M $53M


Final Plan

• significant in-kind amenities through rezoning

• funding earmarked for Marpole library renewal in Emerging Priorities

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Community Facilities

New Vancouver Art Gallery

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Civic Facilities: Public Safety & City Facilities

Corporate Policies • Capital Strategic Outlook (2011-2021) • Asset Management Best Practices Guiding Principles • maintain facilities in acceptable condition • accommodate needs to address growth &

changing demographics Investment Strategies • explore co-location & functional integration


• continue to right-size and upgrade facilities as part of renewal


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Renewal ($35 M) Public Safety ($22M) • Fire Hall #17 @ Knight & 55th built in 1954 • ongoing capital maintenance & renovations

(e.g. fire hall upgrades including facilities for women firefighters, capacity for larger fire trucks, seismic upgrades)

City Facilities ($13M) • ongoing capital maintenance (e.g. roofing,

windows, flooring, mechanical, electrical & plumbing systems)

• renovations (e.g. office space optimization & accessibility improvements)

Public Feedback

Long-term priorities (Phase 1) • Renewal: fire halls ranked 7th out of 19 choices





$35M $31M -


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Transportation

Council Policies • Transportation 2040 Plan (2012) • Greenest City Action Plan (2011) Guiding Principles • maintain infrastructure in acceptable

condition • make walking, cycling, and public transit

preferred transportation options

Investment Strategies • 2/3 for renewal of road network • 1/3 for new/expanded active transportation

modes to support economic development • manage lifecycle costs


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Transportation

Renewal ($110 M) • reconstruct ~6 km of sidewalk • repave ~32 km of major roads (incl. Water St in Gastown $10M) • repave ~45 km of local

roads/lanes • reconstruct 22 traffic signals • replace ~3,500 street lighting

poles • repair sidewalks & replace

railings & lighting on Burrard Bridge ($20M)

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Transportation – Mode Share Target

• Continue new investment in the network to enable growth in Transit & Active Transportation Modes (Walking & Cycling)

• Focus on zero fatality through investment in pedestrian & cycling safety

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Transportation – Walking, Cycling & Transit

New/Upgrades ($40 M) • 260 new/upgraded curb ramps + 2 km of

new sidewalk • complete Comox-Helmcken & Seaside (Pt.

Grey Rd) greenways • upgrade & improve facilities on False

Creek bridges • upgrade 10th Ave, Adanac & Ontario

bikeways to AAA • add 12 new pedestrian-bicycle signals • pedestrian safety & public realm

improvements as part of Community Plans • add new/upgrade bus stops to accommodate bus route changes in downtown • Broadway Millennium Line Extension – no funding identified at this time; future

funding options to be developed




$150M $8M $1M


Public Feedback

Long-term priorities (Phase 1) • New: rapid transit ranked 1st out of 7 priorities

• New: improved walking & cycling infrastructure ranked 6th out of 7 priorities


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Transportation

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Utilities

Council/Regional Policies Water: have best drinking water & reduce per capita consumption by 33% Sewer: meet 2050 regulatory requirements to eliminate CSOs & adapt to intense storms Landfill: meet regulatory requirements re. closure, gas capture & leachate treatment NEU: expand distribution system to new development Guiding Principles • maintain infrastructure in acceptable condition • upgrade/expand infrastructure to address

growth • design resilient infrastructure to address climate

change


Investment Strategies • secure Build Canada Fund to expedite sewer separation • enhance cost-effectiveness through strategic procurement & project planning

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Utilities

Renewal ($256 M) • Water: 30-35km of water main • Sewer:

• separate 55-65 km of sewer main • 4 sewer pump station

• 5,000-6,000 water-sewer connections New/Expansion ($69 M) • Water - 4,000-5,000 new water meters • Landfill- closure & gas collection • NEU - expansion of energy centre &

distribution system to serve new development

Public Feedback

Long-term priorities (Phase 1) • Renewal: water & sewers ranked 1st & 2nd out of 19 choices

2015-18 priorities (Phase 2) • reduce investments by up to 10%




$325M $18M -


Final Plan

• focus on critical infrastructure renewal & regulatory requirements

• ~$70M recovered from development

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Equipment & Information Technology

Council Policies • Greenest City Action Plan (2011) • Digital Strategy (2012) Guiding Principles • maintain fleet & equipment in acceptable

condition • reduce fleet by 20% • build in flexibility to accommodate

technological advancements & alternative service delivery models

Investment Strategies • prioritize investments to support business

transformation, enhanced productivity, & economic development


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Equipment & Information Technology

Renewal ($105 M) • ongoing replacement & rightsizing of vehicles

& heavy equipment • key legacy replacement of hardware &

business applications (e.g. SAFARI recreation management, CCG fleet management, E-recruiting)

New ($10 M) • Permits & Licenses transformation • Digital Strategy (wi-fi expansion, mobile

workforce) • geo-remote data centre to address seismic

risk • business transformation & web-based

productivity enhancement

Public Feedback

Long-term priorities (Phase 1) • N/A

2015-18 priorities (Phase 2) • reduce investments by 10-20%

Final Plan

• Equipment & IT lower than 2012-14 by 33%




$115M $49M -


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Emerging Priorities & Inflation Contingency

Emerging Priorities: $75M • emerging investment opportunities as

partner funding arises (e.g. Build Canada Fund, BC Housing, Vancouver School Board, NPOs)

• Marpole-Oakridge Community Centre & Library renewal (scope & location pending)

Inflation Contingency: $10M • contingency for construction cost inflation

Capital Overhead: $10M • debt issue transaction fees • legal & finance support for capital program

Public Feedback

Long-term priorities (Phase 1) • N/A

2015-18 priorities (Phase 2) • reduce investments by up to 25%

Final Plan

• reallocation of Emerging Priority funds by Council over the 4-yr period

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• Proposed Investments


Agenda

$0

$50

$100

$150

$200

$250

$300

2000-2002 2003-2005 2006-2008 2009-2011 2012-2014 2015-2018

Mill

ions

per

yea

r

Debt Pay-as-you-go Other Funding Sources

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Managing Capital Plan Growth: Impact on Debt, Property Tax & User Fees

Other funding sources not tracked prior to 2009

? ?

?

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Debt • reduced by 5% from Draft Capital Plan ($18M) • flat at 2012-14 level ($96M/yr)

Capital from Revenue + Other Operating Funding • flat at 2012-14 level ($27M/yr)

Public Feedback

Funding Strategy (Phase 2)

• 52-54% supported • 26-34% opposed

• comments referenced debt and developer contributions

Managing Capital Plan Growth

Final Plan

• reduce debt by 5% ($18M)

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A Balanced Funding Strategy

Funding Sources (who pays)

Payment Methods (when to pay)

Total: $1.085B

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Financial Indicator #1: Net Debt per Capita

Increased debt financing in prior plans

in preparation for 2010 Winter Olympics

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Financial Indicator #2: Tax-supported Debt Service Costs as % of Operating Expenditures

Every $1 M of Debt = $140K Annual Debt Servicing

(Tax-supported Debt = General Debt + 50% Sewer Debt + CPI)

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Summary

Strategic capital investments for the next 4 years ($1.635B): • 2015-18 Capital Plan ($1.085B new investments)




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Summary

2015-18 Capital Plan: $1.085B

• Maintain infrastructure & facilities in acceptable condition (2/3)

• Add new/expanded amenities to

address growth (1/3)

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Summary

• A strategic capital investment plan guided by: o Council & board policies & regional policies

o Community Plans & public benefit strategies

o City service plans & asset management best practices

o public engagement results

• Key objectives: o prioritize asset renewal over new & expansion

o increase supply of affordable housing & childcare

o prioritize recreation & community facilities over civic facilities

o manage impact on future property tax & user fees

2015-2018 final capital plan -...

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