DEVELOPING DEVELOPING CAPITAL INVESTMENT CAPITAL INVESTMENT

PLANSPLANS

Outline

Identify Services and Needs

Asset Inventory

Gap Analysis and Project Selection

Project Substantiation

Project Prioritization

Capital and O&M Cost Estimating

Draft Capital Plan and Plan Approval

What Is Capital Planning?

The process will help communities….

Understand and identify service related infrastructure needs…

Provide a clear vision for administration to follow

Allow greatest number of important needs to be met

Identify Services

Good quality of life for citizens

What services to deliver?

Is the service affordable?

Infrastructure required to deliver services?

Identify Services

Water and sewer delivery/pick-up,

Solid waste storage and pick-up,

Road maintenance,

Recreation program, etc…

Identify Needs

What’s more important…good roads or recreation facilities?

What infrastructure is a must for communities?

Is it important to link infrastructure needs to community service?

Identify Needs

Immediate Needs Grader engine blows

Predictable Growth Need Population results in lot development

Future Needs Community interest in a new facility Facility replacement requirements

Identify Services and Needs

Identify Existing Assets

Asset inventory should include:

Buildings & Contents

Mobile Equipment

Water/sewer/solid waste infrastructure

Roads/Bridges/Signs

Identify Existing Assets

Infrastructure Information Sources:

NORCIX Information (Bldg and ME)

Community Infrastructure Assessment

PW&S Water Systems Review

Inventory

Asset Useful Life

What is the remaining life of your:

arena? office building? mobile equipment ?

What affects the useful life of an asset?

Identify Gaps

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Identify Gaps

Identify Infrastructure Gaps

Identify Projects

Identify Projects

Ensure Compatibility

Consider…

How all projects are connected to existing infrastructure.

The O&M implications of new infrastructure or betterments.

Ensure Compatibility

Consider affects of new infrastructure on old.

Will new water truck fit in garage?

Will granular stockpile be ready for lot development?

Can new pool use heating system from arena?

Do assets need to be disposed of?

Project Substantiation

How Much WhenOf your project……

Project Substantiation

Documenting the:

What Why

WhatWhat WhyWhy

Project Prioritization

What project outweighs another?

Health and Safety vs Community Development …balance

Water Plant or Youth Centre?

Road Development or Library?

Project Prioritization

Sample Criteria to assess projects…

Health and Sanitation

Wellness

Basic Safety Needs

Legal Requirements

Project Need/Urgency

Public SupportPrioritize Projects

Develop Capital Cost Estimates

Capital Infrastructure Cost Estimating

Several methodologies used Varying degrees of accuracy

Capital Equipment Cost Estimating

Use marketplace including factors such as:• Freight• Pre-delivery inspections• Custom Specifications, etc…

Develop Capital Cost Estimates

General rule:

As project approaches implementation the accuracy of the estimate increases.

Cost Estimating

A, B, C, D Class Cost Estimates Class D: Accuracy 30-35%

• Preliminary approval

Class C: Accuracy 20-25%• Planning, definition of project requirements, approval

Class B: Accuracy 10-20%• Approval,budgetary control, design cost control

Class A: Accuracy 5-20%• Evaluate tenders for cost control during construction

Cost Information Resources

Capital, O&M, and Energy

GNWT - MACA and PWS

Engineering - Consultant or through planning study

Power - NWT Power Corp.

Construction - Historic values, NWT Construction Association.

Mechanical servicing/inspections - Past invoices

Tools/supplies - Catalogues/Internet

Total Cost of Capital

Capital Initial purchase or construction cost

Operations and Maintenance Maintenance and repair (per yr) Staff Time (per yr) Fuel, Power costs (per yr)

Cost Estimates (Capital & O&M)

Example – Grader

Capital Cost = 250 K (Initial Purchase)

O&M Cost = 30 K (Annual)

Energy Cost (Fuel) = 10 K (Annual)6yrs of O&M = Initial Capital Cost

example

Project Substantiation

Documenting the:

What Why How MuchHow Much WhenOf your project……

Project Substantiation

Identify Funding Sources

New Deal provides opportunity for innovation.

Local property taxation revenue now an option.

Be aware of all of potential funding sources: Territorial Federal Municipal – FCM

Identify Funding Sources

Corporate Contributions

Green Project Grants

Identify Capital Reserve in Budget

Feasibility Check

Are projects achievable considering all factors?

Is their enough O&M funding to sustain the asset?

Capital Policy includes section on Feasibility.

Draft Capital Plan

Take the priority project list and fit into a plan.

May have to move/drop projects to future years.

Decisions will need to be made.

What needs to be done now and in the future?

Cash Flow Projects

Fit projects into available budget.

example

Project Substantiation

Documenting the:

What Why How Much When

Of your project……

Project Substantiation

Plan Approval

Typically SAO presents to council for approval. Consultant and other staff may assist if

required.

Opportunity to discuss and address “minor” issues.

Plan Approval

Consultation complete.

This is your approved working capital plan.

Next Steps - 20 Year Forecast

Capital Plans - focus on 1 to 5 years.

Larger plans will include future years (up to 20)

Maps out longer term plan for community.

Delayed projects can be kept on plan.

Thank You!

QUESTIONS