For the 2020-2024 Draft Financial Plan - SaanichGovernment/Documents...Vehicles identified for...

Financial Plan Meetings

For the 2020-2024 Draft Financial Plan

Departmental Presentations

•Planning

•Engineering

•Water Utility

•Sewer Utility

Capital Budget

March 10, 2020

Operating Budget

Planning, Environment & Sustainability

Department Overview

4 Divisions

Community Planning

Current Planning

Environmental Services

Sustainability & Climate Change

Plus Administration

30.84 FTE

Broad Range of Services most involving

Significant Community Engagement

2020 Major Projects

Housing Strategy & Needs Assessment

Resilient Saanich Strategy & Technical Advisory Committee

Implementation of the 2020 Climate Plan: 100 % Renewable& Resilient Saanich

Development Process Efficiency Review

Implementation of the Agriculture & Food Security Plan

Cordova & Cadboro Bay Local Area Plans

Uptown Douglas Corridor Plan

Garden Suite Bylaw

Public Art Program

Planning Budget Comparison

Cost Drivers

Wage increases

and increments

Full year for

Planner, Planning

Clerk and

Community

Engagement

Coordinator

approved in 2019

Challenges - Planning

Growing Demand For Services

Balancing Capacity & Service Levels

Enhanced Community Engagement

Support for our Partners

Ongoing Retention & Recruitment

Opportunities - Planning

Evolving Service Delivery

Partnerships to enhance the delivery of our and others work programs

Supportive Technology

Planning, Environment & Sustainability

Discussion and Questions

Operating Budget

Engineering

Water Utility

Sewer Utility

Department Overview

Roads and Sidewalks

445 M21%

Potable Water400 M19%

Sewers 451 M21%

Drainage502 M23%

Facilities305 M14%

Electrical17.6 M

1%

Fleet28 M1%

$2.1 B In Assets

• 350+ Staff

• Asset Value: $2.1B

• 4 Divisions, 16 Sections

• Facilities planning and operations

• Transportation planning and operations

• Water resource planning and operations

• Project management office

• Engineering development services

• Greener garbage program

• Fleet Services

• Dedication on safety and customer service

2020 Major Projects - Engineering

• Undertake a review of the engineering

specifications in the Subdivision Bylaw

• Fire Station II Rezoning and Development Permit

application

• Undertake a business case for the

redevelopment of Parks and Public Works Yard

operations.

• Support CRD’s Active and Safe Routes to School

Program.

2020 Major Projects - Engineering

• Develop a staged strategy for an integrated

stormwater management plan and drainage

master plan delivery.

• Develop a potable water metering strategy

• Obtain Organizational Quality Management

certification (Engineers and Geoscientists of BC)

Non-discretionary increase

• Annual Facilities Maintenance

• Budgets have not increased to meet rising costs for contracted services

• Increase to electrical and mechanical budgets to meet regulatory requirements for regular servicing and maintenance.

• Water budget has not increased to meet hired equipment rentals rates

• Operational cost of curbside collection refuse trucks continue to rise

Operating increase

• Maintenance of new assets (bike lanes, bus shelters, traffic signals, litter bins, hydrants, storm mains, catch basins, etc)

2019-20 Budget Comparison

Engineering Comparison

Cost Drivers:

Increase for adjustment to labour costs

Full year for Managers of Development Services and Infrastructure Planning approved in 2019

Maintenance of new assets added in 2019

Water Utility Comparison

Cost Drivers:

CRD bulk water rates

Increase for adjustment to labour costs

Increase to meet hired equipment costs

New positions approved in 2019 budget process

2020 Utility Charges 23,525,500$

2019 Utility Charges 22,439,000$

Net Change 1,086,500$

Change by % 4.84%

2020 FTE 50.61

2019 FTE 50.61

FTE Change 0.00

FTE Change % 0.00%

BUDGET SUMMARY

Sewer Utility Comparison

Cost Drivers:

Regional Sewage Program

Increase for adjustment to labour costs

New positions approved in 2019 budget process

Utility costs

2020 Utility Charges 25,460,500$

2019 Utility Charges 23,532,700$

Net Change 1,927,800$

Change by % 8.19%

2020 FTE 25.56

2019 FTE 25.52

FTE Change 0.04

FTE Change % 0.16%

BUDGET SUMMARY

Challenges - Engineering

12,000 Total Calls

for service

per year

2016 2017 2018 2019

Transportation Calls for Service

• Significant call volumes for service related requests

• 49% increase in transportation related calls for service

Challenges - Engineering

54.2%43.7%

33.0% 33.4%

18.7%20.7%

26.6% 23.4%

27.1% 35.5% 40.4% 43.2%

2016 2017 2018 2019

Equipment

Material

Labour

• Equipment and Material costs

increasing at higher rate than Labour

Development Servicing Cost Drivers

Challenges - Engineering

• The Saanich Operations Centre (Parks & Public

Works Yard) is in poor condition and is impacting

operational efficiencies.

• Many large scale regional projects requiring staff

resources to ensure the District’s best interests are

met

Opportunities - Engineering

• Increased energy efficiency realized through

renewals/replacements

• Planned construction activities allows for value

added approach to subsequent works

• Leveraging infrastructure related grant funding

• Outreach to schools/ participation in job fairs to

promote public works and engineering as a viable

career

• Partnering with academic institutions to develop

creative solutions to municipal challenges while

providing practical curriculum to students.

Engineering

Discussion and Questions

What other factors are there?

•Grants from other levels of government

•Annual surplus transfers into the IT and Facilities Reserve

Funds

•Changes in technology can reduce project costs

•Other revenue sources

•Sharing service delivery with other municipalities

Capital Funding Levels

•Reflects the District’s commitment to asset stewardship – taking care of what we already own,

balanced with

•Commitment to moving forward with significant transportation projects – Shelbourne Valley and Active Transportation Plan

Capital Budget

Capital Budget

Vehicles

Equipment

Technology

Divided into 6 Sections Presenter

•Police Vehicles, Equipment and Technology Finance

•Fire Vehicles, Equipment and Technology Finance

•Engineering Equipment Engineering•Fleet Vehicles (Parks & Public Works)

•Parks and Recreation Equipment Parks & Rec

• Information Technology Corporate Services

Vehicles, Equipment & Technology

•The expenditures in 2020 are for annual fleet replacement, new computer hardware and software and equipment for offices, investigations and officer safety

•Funding is a combination of core, reserves, carryforward and grants.

Police Vehicles, Equipment and Technology

All Fire Vehicle acquisitions are funded from the Vehicles and Equipment Replacement Reserve.

Reserve has annual budgeted funding to manage the replacement of the current fleet.

Impact of USD exchange rate, rising costs

Fire Vehicles and Equipment

All vehicle replacements are funded from the Vehicles and Equipment Replacement Reserve.

Vehicles identified for replacement in 2020 include:

•4 hybrid cars

•7 half tonne pickup trucks

•2 two tonne trucks

•5 one tonne trucks

•1 ten yard packer

Criteria to determine vehicles due for replacement includes age, mileage, condition, and GHG reduction potential

Engineering Equipment / Fleet Vehicles

Annual replacements from core and reserves

•Golf course grounds equipment - $105,000

•Paramobile - $40,000

•Recreation equipment - $216,200

• Ice resurfacer - $169,300

•Parks equipment - $266,300

Parks and Recreation Equipment

Capital Budget

Corporate Technology

Council Strategic Plan Initiatives

Organizational Excellence

Corporate Technology Principles

• Maintain integrity and security of large, complex systems

• Maintain functionality of products and services

• Maintain compliance with licensing and maintenance

• Maintain up-to-date versions of corporate applications

• Average life cycle of hardware and software of 3-5 years

Principles

Life Cycle and CostingAs a project becomes better defined, budget estimates become increasingly accurate. The project budgets covers three distinct phases:

1. Discovery and Requirements Gathering – the assessment of needs and scope of project followed by design and planning for resources, budget, interdependencies with other systems and creation of RFP

2. Awarding of RFP, creating contractual agreement with vendor followed by construction and installation

3. Implementation – partnership between business and vendor to implement software and adjust internal workflows

4. Maintenance of asset and work; budgeting towards replacementand return to phase 1

Assets

IT Infrastructure

End user systems and other tools that support all of the computer applications, security and data storage as well as mobile and remote access

Business Systems

Core systems upon which the entire organization depends to meet legal, statutory, business and citizen requirements

New Assets / Projects

Projects and items as identified in Council’s strategic plans or by departments

2020 2021 2022 2023 2024

Total Capital $6,051,400 $4,612,000 $5,385,400 $5,142,100 $3,577,300

Associated

Operating

Costs

$300,000 $630,900 $142,400 $373,900 $313,000

5 Year Technology Capital Plan

• Data for 2020 and 2021 is accurate, data for 2022-2024 is a best estimate

• Operating costs of new hardware and software is estimated at 22% of original cost

• Current sustainable funding insufficient

• Current estimates see technology capital requests supporting existing IT

technologies stabilizing between $4 and $5 million annually

Capital – IT Infrastructure

2020 Capital Plan - $2,187,185

Estimated operating increase 2020 - $165,013

Infrastructure being upgraded includes:

o Network - Move off Muni-link; Upgrade Wireless Access

Points; Enhance wireless networks

o Email - Implement MS Outlook

o Desktops / Laptops - Replace all desktop hardware and

move to current software versions

o Cell phones - New Cellular contract

o Printers - Implement new hardware and processes

Capital – Existing Business Systems

2020 Capital Plan - $2,187,185

Estimated operating increase 2020 - $165,013

Systems being upgraded (either major and minor) include:

o Tempest database conversion

o JDE - ongoing improvements

o Council Technology Refresh

o GIS - ongoing improvements

o Privacy Project completion

Capital – New Business Systems

New initiatives

• Budget Software (continuation of project from 2019)

• Fire staffing (continuation of project from 2019)

• Agenda Management software

• Fuel Software and hardware

• Business Intelligence tool for Fire

• Reporting software for JDE

• Council Chambers update (to be reduced to $30,000)

• Safety, disability management and training software

2020 Capital Plan - $1,305,040

Estimated operating increase 2020 - $32,380

• Maintenance

• Support for all hardware and software

• Licensing

• Vendors changing their licensing models

• Cloud systems vs in-house applications

• Complexity of systems

• Special resources required

• Limiting down time – operations need to keep functioning

Funding Changes –Increase Operating / Decrease Capital

Questions?

Capital Budget

Engineering

Water Utility

Sewer Utility

Engineering Capital Investments

Transportation12.3 M

29%

Water10.2 M

24%

Sewer8.6 M20%

Drainage7.5 M17%

Facilities4 M9%

Fleet0.3 M

1%

$42.9 M

Expected Outcomes

• Meet Regulatory Requirements

• Continue Rehabilitation and Renewal of aging assets

• Deliver Growth Related Utility Upgrades in high growth areas

• Provide Safe and Inclusive Streets

• Deliver on Council Strategic Plans

• Meet Climate Change Priorities

• Leverage Grant and Funding Partner opportunities

FacilitiesMajor Facility Repairs ($1.5 M)

• Building interior and exterior repairs (e.g., roofs, washrooms, kitchens)

• Electrical (e.g., emergency lighting, network, distribution, emergency backup power)

• Elevator replacement

Energy Retrofits ($1.3 M)• Mechanical upgrades to heating and cooling plants (e.g., design, RTU

replacement)

• Upgrades to Gold Arena ice slab

• Lighting upgrades

Facility Redevelopment ($1.1 M)• Facilities replacement: Saanich Operations Centre, Fire Station #2

• Building expansion

Future Replacement Reserve ($2.8 M)

2019 Carry Forward

• SCP HVAC design

• Annual Roof Replacement Program

• Pearkes Slab Remediation

• 3500 Blanshard / Mun Hall-Annex operational re-fits

2020 Capital Plan

• SCP Main Electrical Distribution Replacement

• Municipal Hall Envelope Remediation Phase 1

• Public Safety Lighting Replacement

• Pearkes Elevator Replacement

Facilities

Transportation

Bri

dges

Roads, Transit Stops and Bridges ($4.42M) • Repaving streets• Upgrading transit stops• Replacing and upgrading bridges

Walking ($4.82M) • Building new sidewalks• Reconstructing existing sidewalks• Upgrading curb ramps• Installing new crosswalks• Implementing Safe Routes to School plans

Cycling ($2.23M) • Building new bike routes• Upgrading existing bike routes

Streetlights and Traffic Signals ($775k) • Upgrading traffic signals• Building new traffic signals• LED Streetlights

Roads, Transit and Bridges -$4.42M

Streetlights and Traffic Signals -

$775k

Cycling -$2.23M

Walking -$4.82M

2019 Carry Forward

• Shelbourne Phase 1

• Prospect Lake / West Saanich / Sparton Intersection Improvements

2020 Major Projects

• Wilkinson Rd Upgrade

• Cordova Bay Rd Sidewalk

• Vanalman Bike Route

• McKenzie Paving

Transportation

• The SSIP is 3 phase project to deliver the short term improvements identified in the Shelbourne Valley Action Plan

• Phase 1, from McKenzie Avenue to Torquay Drive, includes:Buffered bike lanesImprovements to pedestrian facilitiesImprovements to transit infrastructureRenewal or upgrades to sewer, storm and water infrastructureNew traffic signal at Cedar Hill Rd and Feltham Rd

• Phase 1 design is complete and construction is anticipated to begin in early to mid-2020, and to take approximately 18 months

• Phase 2 design will begin in 2020, and is anticipated to take approximately 12 months

Shelbourne Street Improvements Project (SSIP)

Water Resources InfrastructureSewer, Drainage, and Watermain replacements ($26.3M)

• Infrastructure replacement based on end-of-lifecycle (age, condition, material, break history, continual maintenance)

• Infrastructure upgrades to add capacity for pre-existing system deficiencies and to support growth

• Planning for future investments

• Major maintenance repairs

Growth Related Projects ($2.1M) • Growth related Utility upgrades for DCC’s

Pump Stations ($1.25M) • Infrastructure replacement and upgrades

2020 Investment Breakdown• Water Utility: $10.2M• Sanitary Sewer: $8.6M• Storm Drainage: $7.5M

2019 Carry Forward

• Shelbourne Phase 1

• Gorge Road (Admirals to Tillicum) storm drain replacement

2020 Major Projects

• Regina Avenue, mulit-utility (Tillicum to Wascana)

• Vanalman Ave, multi-utility (Commerce Circle to Mann)

• Albina Sewer (Gorge to Obed, interim works)

Water Resources Infrastructure

Questions?

Capital Budget

Parks and Recreation

Parks Assets

• Over 100 km of trails

• 62 sportsfields

• 35 tennis/pickleball courts

• 21 sports courts

• 56 playgrounds

• 1 water park

• 1 skate park

• 21 public washrooms

• 36 beach accesses

• Over 350 km of irrigation lines

• Over 100 bridges and stairs

Parks Capital Programs

Playgrounds

Sportsfields

Tennis

Sportscourts

Irrigation

Bridges / StructuresParking lots

Signs

Trails

Washrooms

Horticulture Islands & Streetscapes

Natural Areas

Urban Forestry

Major Parks Projects

Horner Park Renewal ($650,000)

Mount Douglas Park new trail and bridge ($205,000)

Cedar Hill Park Plan implementation ($100,000)

George Tripp Youth Park ($286,700)

Other Parks Projects

McMinn Phase 2 ($282,900)

Cuthbert Holmes Management Plan ($150,000)

Hampton Park path & parking ($300,000)

Parks Projects

Recreation

• Cedar Hill Community Recreation Centre – Ceramic Studio upgrades, front desk ergonomic improvements, liquor area bounding

• Gordon Head Community Recreation Centre –Feltham Room improvements, Lighting upgrades, Continuation of acoustic tiling work in natatorium (Leisure Pool), Doors for Universal Change Rooms; miscellaneous building improvements

Recreation

• G.R. Pearkes Community Recreation Centre – During Gold arena shutdown complete various upgrades (change-room, Score Clock), Lighting upgrades, Lobby space public seating

• Saanich Commonwealth Place –renovations in aquatic office, complete design plan for new health and wellness space, continue locker repair/replacements

Questions