Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council/et au Conseil

14 October 2003/le 14 octobre 2003

Submitted by/Présenté par : Kent Kirkpatrick, General Manager/Directeur général

Corporate Services Department/Services généraux

Contact/Personne ressource : Lloyd Russell, Director, Financial Services and City Treasurer/Directeur des Services financiers et trésorier municipal

580-2424, ext./poste 21312, Lloyd.Russell@ottawa.ca

Ref N°: ACS2003-CRS-FIN-0033

SUBJECT: Capital Closing, Adjustments and Status Report

– September 2003

OBJET: Clôture des projets d’immobilisations et rajustements

– Septembre 2003

REPORT RECOMMENDATIONS

That the Corporate Services and Economic Development Committee recommend Council approve the following as described in the report:

1. The closing of capital projects listed in Appendix A, the return of balance of funds to funding sources and the funding of deficits as identified;

The budget adjustments as detailed in Appendix B;
A net decrease in debt authority of $1,252,324; and
The reinstatement of project 990184 Scott / Wellington with funding of $49,500 from the City Wide Reserve Fund.

RECOMMANDATIONS DU RAPPORT

Que le Comité des services organisationnels et du développement économique recommande au Conseil d’approuver les dispositions suivantes décrites dans le rapport :

La clôture des projets d’immobilisations stipulés à l’annexe A, le retour du solde des fonds aux sources de financement et le financement de déficits indiqués;
Les rajustements budgétaires précisés à l’annexe B;
La réduction nette de 1 252 324 $ de la dette autorisée;

4. Le rétablissement du projet 990184 Scott/Wellington assorti de fonds de 49 500 $ puisés à même le fonds de réserve panmunicipal.

BACKGROUND

On June 11, 2003, City Council approved the following:

“Be it resolved that City Staff be directed to produce and table quarterly capital status works in progress reports for Council”.

This is the first of these reports and is comprised of three sections: a list of projects that have been completed and will be closed upon Council approval; a list of recommended budget adjustments which require Council approval because they are not within the delegated authority of the General Manager of Corporate Services and the Director of Financial Services; and a status of active capital works in progress.

DISCUSSION

Capital Projects Recommended for Closure

Departments identified projects for closure if the work was completed and if all commitments related to the work will be discharged by the end of this year. As a general direction, staff is recommending that surplus funds be returned to source. Where those projects identified for closure are in a surplus due to revenues, the surplus revenues will be contributed to the City Wide Reserve Fund, if not otherwise restricted. For those projects that have been funded from a combination of reserve funds and debt, the surplus funds will be returned to the reserve fund (except in those cases involving development charges where the proportion returned to source is maintained). Where those projects have been funded exclusively from debt that has not been issued, there will be a reduction in the total debt authority required.

Of those projects recommended for closure, Project 900099 – Strategic Transportation Planning Studies shows the largest deficit. The budget for this legacy project included federal revenues that were not received.

In summary, the estimated funds no longer required from those capital projects recommended for closure is $2.7 million.

Capital Budget Adjustments

Those budget adjustments requested by departments that require Council approval because they are not within the General Manager of Corporate Services and the Director of Financial Services delegated authority are listed in Appendix B. These adjustments are summarized below:

1. City Council Meeting of May 23, 2003 – Transfers of Debt Authority

During the Special Meeting of Council on May 23^rd, a list of projects for reduction or closure was approved in order to make available the funds necessary for a rebate to those property owners who were experiencing increases in taxation as a result of the assessment shift. Some of these projects were debt financed and budget adjustments are necessary to transfer the debt portion of the funding to other projects that are pay as you go financed. Refinancing is required in order to fully implement City Council’s directive.

City Council Meeting of May 23, 2003 – Adjustments to Existing Projects

Also during the Council meeting of May 23^rd, project 900338 Nepean Landfill Buffer Land Rehabilitation was identified for reduction. Funds are required to undertake an Order from the Ministry of the Environment to construct and operate a groundwater collection system and associated pipeline. Appendix B includes reductions in three other projects totaling $1.6 million that are recommended in lieu of the reduction originally approved.

2. Realignment of Funding in Accordance with Development Charge Legislation

A further group of projects for which budget adjustments are recommended are those involving development charge revenues. In some cases, development charge funding was originally approved for a project only to the extent that funding was available and not necessarily to the full extent allowed under the legislation and the former municipal by-laws. Four projects identified in this schedule are of this nature. In addition, upon review, projects have been identified as being overfunded by development charges. Refinancing is recommended in order to realign funding in accordance with the development charge legislation.

3. Identification of Funding for Approved Authority

In the same schedule are four budget adjustments where the expenditure was approved by City Council, but no funding source(s) was identified at the time of consideration. Council approval of the source of funds is required in order to enact the transfer.

q In the case of project 900040 Future Transportation Corridor–Abandoned, Council approved a transfer of $1,472,320 to this project at its meeting of June 25, 2003, from a project that had been previously approved for closure. No new funding authority is requested, but approval of the funding source (development charge revenue) is required.

q Funding was also approved for the Glebe Community Centre Renovations (902286) and Standard Bus Replacement Program (900525) on July 23, 2003. Reductions in other projects have been identified for transfer to these projects.

q In September 2002, the Ottawa Police Services Board approved the relocation of the Evidence and Property facility to a new facility at the Charles Sim Municipal Workshops and Garage on Swansea Crescent. The 2003 capital budget submission identified a contribution from Real Property and Asset Management (RPAM) towards the costs associated with the displacement of existing City client users. RPAM has since identified budget transfers of $750,000 from various projects so that the work on this facility may be completed.

4. Other Authority Adjustments

q Staff is recommending reinstatement of capital project 990184 Scott / Wellington which was inadvertently identified for closure in the works in progress closure report approved by City Council on January 8, 2003. Funding was originally approved for enhancements to the Parkdale Market and Park by the former City of Ottawa, but only the simple components, like banners and signage, were implemented immediately. The major landscaping elements required significant design work and public consultation and therefore the project appeared inactive. A major goal of the work was to find better ways to link the market, park and parking on Hamilton Avenue. It was also determined that a larger contract combining the works in the Parkdale Market and Park with the reconstruction for water and sewer replacement on Hamilton Avenue would be more cost effective and efficient.

The Hamilton Avenue construction is taking place this year. The Market and Park works were tendered with that project in May, without the knowledge that the project had been closed. Re-instatement of this project is required to provide for the completion of this work.

If approved, the amount of $49,500 is to come from the City Wide Reserve Fund. This request for additional funding is in compliance with the “lame duck” provisions of the Municipal Act, 2001.

q The second budget adjustment is recommended to amend the source of funding for project 901112 Area Planning and Design – Central / West. This project consists of studies that are not eligible for debt financing. A Council approved budget adjustment is required to remedy the source of funds.

Capital Works in Progress

A list of all of the active capital projects, the approved expenditure authority, actual expenditures and commitments as of September 22, 2003, unspent authority and comments relating to the status of each project have been forwarded under separate cover to the committee.

CONSULTATION

Capital closings and adjustments are administrative in nature and all departments have been involved in the preparation of this report.

FINANCIAL IMPLICATIONS

The estimated excess funding from those projects being closed is $2.7 million. The total effect on funding sources from the closure of projects and budget adjustments is estimated as follows:

Return to Source

($)

Contributed from Source ($)

Tax and other supported reserve funds

Rate supported reserve funds

Development charge revenues

Debt authority

8,517,897

4,918,320

5,358,211

3,936,324

7,712,025

3,398,613

7,687,895

2,684,000

Total

22,730,752

21,482,533

The total recommended increase in authority as a result of departmental requests is $49,500 to be funded from the City Wide Reserve Fund.

SUPPORTING DOCUMENTATION

Appendix A – Capital Projects Recommended for Closure

Appendix B – Capital Budget Adjustments

Appendix C – Capital Works in Progress (distributed separately and held on file with the City Clerk)

DISPOSITION

Upon approval of this report, the Financial Services Branch will process the necessary adjustments.

Corporate Services

900013 Surveys & Mapping Program	110,000	107,277	2,723	2,030		693
	110,000	107,277	2,723	2,030	-	693	-

Development Services

900099 Strategic Transportation Planning Studies	710,000	1,395,599	(685,599)	(281,457)		(404,142)
900900 Manotick Services Engineering Study	257,500	257,500	-
901167 Ottawa 20/20 Strategic Initiatives	252,635	252,635	-	-
901759 Innes Road at Esprit	300,000	175,000	125,000	31,250		93,750
901768 Innovation Drive	50,000	33,692	16,308			16,308
901808 East/South - Blackburn Woodlot	103,459	-	103,459	15,519		87,940
901811 East/South-Greenpointe Park	26,541	26,541	-	-		-
901819 East/South-Integrated Paths-Gloucester	25,000	-	25,000	3,750		21,250
901821 East/South-Rosetta Park	241,000	235,308	5,692	854		4,839
901832 East/South-Daybreak Park	65,738	65,738	-	-		-
901839 Area Planning & Design-St Joseph Blvd	90,000	88,629	1,371	137		1,234
901847 Research & Modeling-Digitizing Plans	20,000	-	20,000	20,000
902216 Environmental Planning Studies	447,365	-	447,365	447,365
902266 Goldridge Park	482,000	450,000	32,000	32,000
991227 Lorenzetti Forest Site	106,992	88,718	18,274	18,274
991230 Park Site #6-Stinson Park	138,797	108,524	30,273			30,273
991231 Stonecrest Park-Park Development	175,000	79,782	95,218	4,353		90,865
991307 Highbury Woods	45,000	83,184	(38,184)	(4,243)		(33,942)
991310 Woodlot Site 16	20,000	17,113	2,887	289		2,599
992078 Sil Hns/Hns/Cul-de-Sac Construction	263,500	251,663	11,837			11,837
992114 Hines Road	72,000	71,552	449			449
992117 Northtech Internal Road #2	342,000	335,983	6,017			6,017
992262 Frank Nighbor Extension DC	80,000	80,587	(587)			(587)
	4,314,527	4,097,748	216,779	288,091	-	(71,312)	-

People Services

900124 Montfort Hospital - Renovations	6,599,250	6,599,250	-
900910 (Trstn) Change Management-2001	160,000	160,000	-
900917 (Trstn) Materials Delivery Project	36,400	36,400	-	-
900994 Programming Retrofits-2002	90,000	90,000	-
901862 (Trstn) OPL-Manager of Transition	60,000	60,000	-
901866 (Trstn) EFA-Transition Manager	60,000	60,000	-
902306 Ottawa Capital Games (2003)	50,000	50,000	-
902875 Kanata Reserve Fund Dispersal	131,500	131,500	-
990283 Plant Pool	230,000	230,000	-
990286 Glebe Community Centre	145,000	145,000	-
991269 Centrepointe Theatre-Capital	104,000	104,000	-
991379 Library Tech-Automated Info. Services	50,000	50,000	-
992184 Bridlewood Community Centre	1,895,000	1,895,000	-
992274 Bridlewood C.C. Equipment	20,000	20,000	-
992292 0utdoor Rink Board Morgans Grant	15,000	15,000	-
993189 Seiveright Park Addition	30,000	30,000	-
993258 CRPB - Blackburn Minor Capital	4,058	4,058	-
993259 CRPB - Cyrville Minor Capital	11,958	11,958	-
993260 CRPB - South Gloucester Capital	8,024	8,024	-
993261 CRPB - North Gloucester Capital	14,513	14,513	-
993262 CRPB - Orleans Minor Capital	80,000	80,000	-
994213 Marsha's Park - Major Capital	51,101	51,101	-
	9,845,804	9,845,804	-	-	-	-	-

Transportation, Utilities & Public Works

900048 Hawthorne Road (Hunt Club to Walkley)	12,349,000	11,079,836	1,269,164			1,015,311	253,853
900051 Conroy Road (Hunt Club to Walkley)	11,269,465	11,210,648	58,817	11,766		47,051
900065 Travel Environment Management	2,120,000	2,117,325	2,675	2,038		637
900092 St. Laurent Blvd. Bridges	4,400,000	4,399,822	178	178
900097 Street Lighting Program	220,000	174,605	45,395	34,046		11,349
900116 Rebuilding, Modernization, Upgrading TC	2,532,000	2,515,870	16,130	16,130
900188 Cypress Gardens - Service Extension	314,500	(15,348)	329,848	329,848
900197 Water Distribution System Rehabilitation	37,250,000	37,060,687	189,313		144,081	45,232
900244 South Ottawa Collector Rehabilitation	17,000,000	17,001,163	(1,163)		(1,047)	(116)
900557 2001 Resurfacing Program	14,427,000	14,426,131	869	869
900810 Parks Maintenance Equipment	11,000	5,632	5,368	5,368
901187 Contaminants in Right of Way	-	(90,000)	90,000	90,000
901250 Road Reconstruction - 9th Line Road	244,977	244,977	-	-
901292 Road Reconstruction - Ross Avenue	763,500	730,617	32,883		32,883
990003 2000 Sewer Alarm System	500,000	555,766	(55,766)		(55,766)
990124 2000 Surface Parking Lot LCR	80,000	80,000	-
990268 Glebe/Bank St. Parking Study	51,403	31,132	20,271	20,271
990282 Woodward/Laperrier	12,500	9,409	3,091	3,091
990432 Studies - Infrastructure	322,598	104,242	218,356		218,356
992139 Walter Baker Park-New Parking	100,000	96,018	3,982	1,991		1,991
992250 Hazeldean/Traffic Signal - Installation	-	(53,021)	53,021	53,021
992277 Taysham - Tree Maintenance	-	(5,468)	5,468	5,468
993096 Traffic Calming Implementation	50,000	37,221	12,779	12,779
993206 Ice Storm 98 Tree Replacement Program	13,601	13,601	-
994001 Tree Maintenance/Replacement Program	15,000	36,613	(21,613)	(21,613)
	104,046,544	101,767,478	2,279,066	565,251	338,507	1,121,455	253,853

Police Services

900327 O.P.P. Unification/Start Up Costs	4,428,000	4,156,529	271,471				271,471
Sub-total	4,428,000	4,156,529	271,471				271,471

Total	122,744,875	119,974,836	2,770,039	855,372	338,507	1,050,836	525,324

1. City Council meeting of May 23, 2003

Transfers of Debt Authority
902320 Acacia/Montrose Avenue Rehabilitation	-	(270,000)	-	270,000
900706 Innes Rd(Tauvette-Beddoe/E Prk to Bypass)	-	270,000	-	(270,000)

901850 Traffic Signals - Lynda Lane at Smyth Rd	-	(100,000)	-	100,000
901101 New Vehicles - Traffic Operations	-	100,000	-	(100,000)

900338 Nepean Landfill Bufferland Rehabilitation	-	(965,000)	-	965,000
900339 Trail Road Landfill Leachate Treatment	-	965,000	-	(965,000)

900764 Minor Park Improvements-2001	-	(168,000)	-	168,000
900756 Relocation of Cultural Spaces	-	168,000	-	(168,000)

900780 Life Cycle Renewal and Asset Mgmt - Bldg	-	(165,000)	-	165,000
900426 Castlefrank Rd Overpass & Int. (Hwy 417)	-	165,000	-	(165,000)


Adjustments to Existing Projects

900351 Waste Management Alternatives	-	-	-	(600,000)
901018 Landfill Assessment & Remediation	-	-	-	(500,000)
902358 Trail Road Landfill - Expansion	-	-	-	(500,000)
900338 Nepean Landfill Bufferland Rehabilitation	-	-	-	1,600,000

2. Realignment of Funding in Accordance with Development Charge Legislation

900217 Lietrim Pumping Station, Forcemain	-	-	2,114,000		(2,114,000)

900221 Munster Lagoons Rehabilitation	-	-	(439,000)		439,000

900226 Combined Sewer Area Ops Control-Tunnel	-	-	709,000		(709,000)

900244 South Ottawa Collector Rehabilitation	-	-	1,700,000		(1,700,000)

900321 Facility Acquisition Plan	-	(727,000)	727,000	-	-

901859 Sawmill Creek Constructed Wetland	-	-	(2,902,800)		2,902,800

3. Identification of Funding for Approved Authority

900040 Future Transportation Corridor-Abandoned	-	-	1,472,320		-


901046 Lansdowne Park - Retrofits	-	-	-	(300,000)
902286 Glebe Community Centre Renovations	-	350,000	-	300,000
900764 Minor Park Improvements - 2001	-	(350,000)	-	-


900526 Articulated Bus Replacements	(934,018)	-	(189,000)	(876,982)
900862 New Buses	(376,333)	-	(337,787)	(245,880)
901165 Rural Service Expansion	(104,000)	(166,000)	-	-
900525 Standard Bus Replacement Program	1,414,351	166,000	526,787	1,122,862


900780 Life Cycle & Renewal Asset Mgmt - Bldg	-	-	-	(376,578)
900011 Denis Coolican Building Mechanical Retro	-	-	-	(332,918)
900108 Renovation/Replacement of Maintenance	-	-	-	(40,504)
902088 CAM-00530 Police Storage Project-Swansea	-	-	-	750,000

4. Other Authority Adjustments

990184 Scott/Wellington	-	-	-	49,500
Reinstatement requested

901112 Area Planning and Design - Central/West	-	(500,000)	-	500,000
900706 Innes Road (Phase 4)	-	500,000	-	(500,000)
2003 Road Reconstruction/Rehabilitation Program

Total	-	(727,000)	3,380,520	49,500	(1,181,200)