2019 2023 Financial Plan Electoral Area Services Budget Meeting - - PowerPoint PPT Presentation

2019 – 2023 Financial Plan

Electoral Area Services Budget Meeting November 28, 2018

Agenda

• Strategic Business Cases
• Draft Capital Plans
• SRD Roadshow Community Feedback

2019 – 2023 Financial Plan

Presentation of Strategic Business Cases Electoral Area Services Budget Meeting November 28, 2018

Area C Business Case Re-Direct Funds Q-Cove Sewer Improvements

2019 – 2023 Financial Plan

EASC Budget Meeting November 28, 2018

Executive Summary

• With the Clean Water and Wastewater Fund grant, the

Quathiaski Cove Sewer Extension project became feasible.

• Scope extended to include previously approved

Community Works Funded (CWF) projects

➢ Emergency Generator $9,780 ➢ Equalization Tank $10,000

• Request to re-allocate CWF to the $100,000 Q-Cove

marine outfall improvement project.

Business Problem & Opportunity

• Outfall infrastructure subject to erosion of sea

bed and bank where upland equalization tank transfer pump is located.

• To protect infrastructure, an opportunity exists to

stabilize the bank.

• Recommendation to undertake marine outfall

project in 2019 with the completion of the Q- Cove sewer extension project.

Proposed Project Objectives

• To apply best management practices.
• Improve and protect sanitary system

infrastructure.

Business Risks & Project Benefits

Tangible risks Failures to the sewer system with bank erosion. Intangible risks Risk to users of system and not maintaining service levels. Tangible benefits Improving the exposed marine outfall. Protecting the proposed improved outfall an upland equalization tank transfer pumps from future sea bed and shore-line erosion. Intangible benefits Improved credibility of the SRD as a local government that is following best management practices and who are proactively protecting critical infrastructure.

Cost Benefit Analysis & Proposed Sources of Funding

• Recommend $19,780 existing Q-Cove Sewer projects

released from CWF.

• Allocate $100,000 to Marine outfall improvement project;

any unspent funds would remain in CWF for future projects.

2019 2020 2021 2022 2023 Capital costs $100,000 $- $- $- $- Operational costs

• Total costs

$100,000 $- $- $- $- Total over 5 years $100,000

Recommendation

THAT the Committee recommend that 2019-2023 Financial Plan include $100,000 for the Q-Cove Marine Outfall Improvements with funds from the Area C Community Works Fund reserve. THAT the Q-Cove Sewer emergency generator of $9,780 and Q-Cove Sewer treatment plant equalization tank transfer pump replacement of $10,000 be released from the Area C Community Works Fund Reserve allocation.

Area D Business Case Hagel Park Permanent Accessible Washroom

2019 – 2023 Financial Plan

EASC Budget Meeting November 28, 2018

Executive Summary

• The need for a permanent accessible washroom

facility at Hagel Park has been identified by the community.

• The existing platform for the current facility is at

the end of its service life.

• An accessible facility would enable use for all

ages and needs of park users.

Business Problem & Opportunity

• Issue:

➢The existing platform that houses the portable facility is at the end of its service life and requires replacement. ➢The current portable facility is insufficient for the needs of current park users.

• Opportunities:

➢To improve on service standards. ➢To construct a permanent facility utilizing an in-ground holding tank or alternative design.

Proposed Project Objectives

• To make better strategic decisions about

managing and upgrading accessibility within the SRD’s parks and facilities.

• To provide responsible service delivery.
• To improve on asset management within the

parks service.

• To provide park amenities to accommodate

growing usage and needs of users.

Business Risks & Project Benefits

Tangible risks Not meeting the accessibility requirements of park users Intangible risks Denying a portion of the population access to park amenities Tangible benefits Improved park amenity which meets park accessibility standards Intangible benefits High standard of park amenity which responds to users desired improvements

Cost Benefit Analysis & Proposed Sources of Funding

• Increased capital costs are to be funded from Area D

Community Works Fund reserve.

• Operational costs are not expected to increase beyond

what is currently allocated for the existing service.

2019 2020 2021 2022 2023 Capital costs $65,000 $- $- $- $- Operational costs

• Total costs

$65,000 $- $- $- $- Total over 5 years $65,000

Recommendation

THAT the Committee recommend that 2019-2023 Financial Plan include $65,000 for the Hagel Park Permanent Accessible Washroom with funds from the Area D Community Works Fund reserve.

Area D Business Case Re-Directing Booster Pump Station Funds

2019 – 2023 Financial Plan

EASC Budget Meeting November 28, 2018

Executive Summary

• $735,000 Area D Booster Pump Station project budget

approved in 2017, funding from Community Works Fund reserve

• Works completed to date:

➢ Design works completed in late 2016 that fitted the subject property along Craig Rd, to improve water pressure in the area ➢ BC Hydro provided cost estimate to have three-phased power installed at subject property; costs made the project cost prohibitive

• Request to re-allocate Area D CWF to:

➢ $100,000 for localized pressure solution in Craig Rd area ➢ $530,000 for Water Supply Connection Improvements

Business Problem & Opportunity

• Address water pressure problem in Craig Rd area

➢ Booster pump station may be preferred, but given cost escalation an alternative localized water pressure solution can be explored at a cost of $100,000

• Re-direct allocated CWF to Water Supply Connection

Improvements

➢ Other deficiencies have been identified in system ➢ Need to conserve water as Area D pays per meter rate for bulk water consumption; meter installation grant applied in fall 2018 ➢ Replace existing four bulk water meter readers; will allow the SRD to monitor consumption and manage distribution system ➢ Install back-flow prevention valves to prevent water pollution

Proposed Project Objectives

• Resolve water pressure problems through a

localized plan to those most impacted at significantly reduced cost.

• To continue water conservation efforts.
• Better manage water distribution system in Area

D to best practices with timely and accurate information.

• Prevent potential pollution between systems.

Business Risks & Project Benefits

Tangible risks SRD risks not getting accurate water use readings from the old water meters the City uses. Continue being unable to verify the readings. Not being able to properly manage the system with receiving

• nly one in-frequent interval reading per month.

Intangible risks Not having timely and accurate information to manage and plan ahead for infrastructure maintenance and service delivery. Tangible benefits Increased water pressure where needed. Accurate measurement of water. Measurement integrity. Preventing water system pollution. Intangible benefits Improved credibility of the SRD as a local government that is following best management practices and who are proactively addressing infrastructure problems and managing the water service to its residents.

Cost Benefit Analysis & Proposed Sources of Funding

• Recommended remaining $681,000 for Area D Booster

Pump station released from CWF.

• Allocate $100,000 to Craig Rd Pressure Zone Upgrade.
• Allocate $530,000 to Water Supply Connection

Improvement project.

2019 2020 2021 2022 2023 Craig Rd Upgrades $100,000 $- $- $- $- Water Supply Upgrades $530,000 $- $- $- $- Operational costs $1,000 $1,500 $2,000 $2,500 $3,000 Total costs $631,000 $1,500 $2,000 $2,500 $3,000 Total over 5 years $640,000

Recommendation

THAT the Committee recommend that 2019-2023 Financial Plan include $100,000 for the Craig Road Pressure Zone Upgrade and $530,000 for the Area D Water Supply Connection Improvements with funds from the Area D Community Works Fund reserve, in addition to $10,000 to be included in the Area D operating budget. THAT the remaining budget of $681,000 for the Area D Booster Pump Station project be released from the Area D Community Works Fund Reserve allocation.

Area D Business Case Water Study Update

2019 – 2023 Financial Plan

EASC Budget Meeting November 28, 2018

Executive Summary

• Area D’s water study is from 2012 and outdated.
• Water study is the guiding document for operations,

upgrades, expansion and infrastructure renewal strategies to the system.

• Ensures the capital plan is accurate and focuses on the

most efficient use of available funds.

• Primes the SRD for infrastructure grant applications.

Business Problem & Opportunity

• Federal and provincial agencies recognize the benefits
• f interventions at the local government level and is

redirecting funds to grant programs.

• To be competitive and position Area D to receive grant

funding, SRD needs to proactively plan for interventions and seek out funding opportunities.

• The SRD needs to reposition itself and improve capacity

to be shelf-ready on grant applications, including matching funds in place (CWF excluded - stacking rules)

Proposed Project Objectives

• To proactively plan and have studies shelf-ready to seek

and administer funding when opportunities arise.

• To ensure the long-range capital plan is accurate and

the SRD ensures the most efficient use of resources, to focus on key upgrades required to maintain service levels.

Business Risks & Project Benefits

Tangible risks SRD risks losing significant amounts of grant funding and lost time on failed grant applications. Continued aging of infrastructure in the system, leading to breaks that require emergency repairs without funding in place. Intangible risks Using outdated water studies to build capital plans on unreliable information puts system and services at risk. Tangible benefits Capacity to undertake engineering studies that will improve grant application successes and identify priorities in upgrades and maintenance requirements. Provide funding to budget and plan for the carrying out of upgrades and improvements. Intangible benefits Credibility of the SRD as a local government that applies fiscal responsibility and good management practices of its assets. Reduces the risks associated with breaks in the system without having funds in place to cover the repair costs.

Cost Benefit Analysis & Proposed Sources of Funding

• Investment to increase SRD’s capacity to seek and be

successful in applying for grant funds, rather than rely fully on user fee and requisition increases.

2019 2020 2021 2022 2023 Capital costs $- $- $- $- $- Operational costs $30,000

• Total costs

$30,000 $- $- $- $- Total over 5 years $30,000

Recommendation

THAT the Committee recommend that 2019-2023 Financial Plan include $30,000 to update the 2012 Area D Water Study.

Business Case Enhanced Bylaw Enforcement and Building Inspection Services

2019 – 2023 Financial Plan

EASC Budget Meeting November 28, 2018

Executive Summary

• Community Services capacity is at its limit
• Demand for Bylaw and Building Inspection Service

exceeds existing staff complement

• To improve service capacity:

➢Split existing Bylaw Officer/Building Official Role ➢Increase Bylaw Enforcement Officer position (from 2 to 3 days/wk) ➢Increase Building Inspector position (from 3 to 5 days/wk)

Business Problem & Opportunity

CURRENTLY:

• Challenges managing bylaw workloads resulting in:

➢Back log of bylaw enforcement files (50 open files) ➢Low and untimely compliance rates ➢Low credibility with the public

• Limitations to building inspection service creating:

➢Additional building permit and inspection wait times ➢No capacity to provide more appropriate level of building resources and bylaw regulations

Proposed Project Objectives

IMPROVE OVERALL COMMUNITY SERVICES CAPACITY (Planning, Parks, Engineering, Bylaw, Building, GIS)

• Enhance Bylaw Enforcement Service

➢Provide dedicated Bylaw Compliance Officer ➢Increase position to 3 days per week

• Enhance Building Inspection Service

➢Create stand alone Building Official position ➢Increase position to 5 days per week

Business Risks & Project Benefits

Tangible risks Continued back log of bylaw enforcement and building files. Lower bylaw compliance rate. Intangible risks Inability to retain a full staff complement due to competing job tasks and roles. Tangible benefits Increased resource capacity to complete work plan items and be in line with service delivery expectations. Intangible benefits A more sustainable work environment. Increased credibility with the public in being positioned to provide bylaw and building inspection service in a timely manner. Ability to meet expectations of area directors and their constituents.

Cost Benefit Analysis & Proposed Sources of Funding

(Areas A/B/C/D) 2019 2020 2021 2022 2023 Bylaw Officer Salary $12,800 $13,056 $13,317 $13,583 $13,855 Bylaw Officer Benefits 3,840 3,917 3,995 4,075 4,157 Furnishings/Equipment 4,500

• Total costs

$21,140 $16,973 $17,312 $17,658 $18,012 Total over 5 years $91,095 (Area D) 2019 2020 2021 2022 2023 Building Official Salary $25,600 $26,112 $26,634 $27,167 $27,710 Building Official Benefits 7,680 7,834 7,990 8,150 8,313 Total costs $33,280 $33,946 $34,624 $35,317 $36,023 Total over 5 years $173,190

Recommendation

THAT the Committee recommend that the 2019-2023 Financial Plan include:

• $91,095 to create a Bylaw Enforcement Officer position

at 3 days per week, and

• $173,190 to create a full-time Building Official position.

2019 – 2023 Financial Plan

Presentation of Electoral Area Draft Capital Plans Electoral Area Services Budget Meeting November 28, 2018

2019 – 2023 Financial Plan

SRD Roadshow Community Feedback Electoral Area Services Budget Meeting November 28, 2018

Next Steps

• January 9th Board

➢Corporate Business Cases

• January 30/31st Board

➢2019-2023 Financial Plan deliberations