REVISED See Attachment 2 P.O. Box 1749 Halifax, Nova Scotia B3J 3A5 Canada Item No. 3 Committee of the Whole December 4, 2018 January 16, 2019 TO: Mayor Savage and Members of Committee of the Whole SUBMITTED BY: Jacques Dubé, Chief Administrative Officer DATE: November 19, 2018 SUBJECT: Proposed 2019-20 Multi-Year Capital Program Budget ORIGIN (1) April 24, 2018 Proposed 2018/2019 Budget and Business Plan: “THAT Halifax Regional Council: 2. Direct staff to develop and return with a two-year business and capital plan for 2019/20 and 2020/21 in accordance with the multi-year financial strategy for 20172021”. (2) October 3, 2017 Long-term Strategic Capital Update: “THAT Halifax Regional Council direct staff to bring forward a framework for a ten-year capital outlook aligned with Regional Council Priorities, along with an initial ten-year capital outlook that includes funding for the Planned Strategic Projects as noted in the September 6, 2017 staff report, and options for other capital outlays including the Potential Strategic Projects”. (3) December 5, 2017 Integrated Mobility Plan: “THAT Halifax Regional Council: 4. Direct staff to prepare the long-term capital outlook, funding options and priorities, as directed by Regional Council on October 3rd, 2017, to include the Integrated Mobility Plan, and return to Halifax Regional Council for discussion of the capital outlook and its implications”. LEGISLATIVE AUTHORITY Pursuant to the Halifax Charter, section 35(1), the Chief Administrative Officer shall (b) ensure that an annual budget is prepared and submitted to the Council. Recommendation on page 2 Proposed 2019-20 Multi-Year Capital Program Budget Committee of the Whole -2- December 4, 2018 RECOMMENDATION It is recommended that Committee of the Whole recommend to Halifax Regional Council to: 1. a. Approve the capital budget for 2019-20 and approve, in-principle, the 2020-21 and 2021-22 capital budgets as per Attachment 1a, b. Approve the schedule of 2019-20 reserves withdrawals as per Attachment 1b, and c. Direct staff to prepare the ten-year capital plan as per Attachment 1c, as presented to the Committee of the Whole. 2. Approve the list of 2019-20 advanced tender projects as per Attachment 2. 3. Approve the list of multi-year projects as per Attachment 3. BACKGROUND During the annual planning process, asset managers review the current asset inventory and its various states of condition and demand of use. To develop the future years’ asset-related budgets, asset managers must consider what regular operating maintenance will be required as well as any larger rehabilitation or replacement interventions to minimize the overall lifecycle costs of ownership and to maximize its value towards delivering service. In addition to this assessment, asset managers consult with their associated service managers to be informed of any proposed additions or changes to service levels, influenced by approved strategic initiatives, and then assess whether additional asset inventory or new functionality requirements are necessary. Asset-related operating and capital budgets incorporate these maintenance plan assumptions and the resourcing requirements to carry them out, within the fiscal direction provided. At the October 16, 2018 Regional Council meeting, municipal staff presented a capital budget update in association with the ‘Approval of the 2019/20 Budget Schedule, Update on Business Planning, Operating & Capital Budgets’ report. The presentation reinforced the December 13, 2017 message to Council that the ten-year capital outlook highlights a significant funding gap. It was noted that this forecasted gap did not include an additional $5 to $10 million investment required annually to fulfill the Integrated Mobility Plan’s objectives and that some Strategic Planned and Potential Projects proposed in July 2014 reflect funding risks associated with the original funding strategy. Staff created a Capital Reform project in early 2018 to address the future challenges discussed during the 2018-19 budget and business planning process. The decision was made to integrate the recently implemented asset management system into the capital planning process. Adopting the formalized structure aims to improve HRM’s effectiveness to minimize the total cost of owning and operating assets while delivering the desired service levels. As it relates to the capital budget process, this integration plan supports the transition from short-term capital investment decisions based on immediate requests to a longterm strategic plan providing a reliable, safe and sustainable asset inventory. This transition will be a multiyear iterative process and involve a great deal of effort to evolve our maintenance program from a largely reactive base to a more proactive and predictive base. The Capital Reform’s first improvement was the design and implementation of a Capital Prioritization Framework (‘The Framework) to assist the review of the 2019-20 capital project portfolio submission. The Framework required asset managers and service managers to evaluate each project submission in the portfolio against four decision matrices that consider: Proposed 2019-20 Multi-Year Capital Program Budget Committee of the Whole -31) 2) 3) 4) December 4, 2018 Current Capacity to Deliver, Strategic Alignment as it relates to Council’s Priority Areas, Impact to the associated Level of Service, and Assessed Risk if the project is not completed. The Capital Steering Committee utilized the new prioritization ratings to better inform their decision of which projects should be included in the capital program budget recommendation within the current available funding model that maximize the value of investment and minimize service risk. DISCUSSION The proposed capital program list submitted by staff for the ten-years ending 2028-29 include projects which address recommended rehabilitation interventions, replacement of aging infrastructure, and additions of new assets to support Council and strategic plan directed initiatives. A focus was placed on providing a capital budget recommendation to Council that balances the three years, 2019-20, 2020-21, and 2021-22, under the current fiscal direction. These funding allocation assumptions for capital-from-operating and debt levels are similar to recent years in order to keep the average tax bill steady. In effort to better understand the whole lifecycle cost impacts of assets on the long-term municipal budget, project investment classifications have been updated. The new classifications are: 1) Asset Renewal - investment in existing infrastructure to restore its former condition and extend its service life, which may include replacement of individual components as they age or become obsolete. 2) Growth - investment in new assets as well as investment in projects that add to or enhance components of existing infrastructure assets to improve the type of service provided and/or improve functionality. Generally, Asset Renewal projects will not require an ongoing increase to annual operational budgets but may provide operational savings if the project involves modern efficiency improvements. Growth projects, however, directly impact future operational budgets by increasing the asset inventory base and therefore not only increasing associated operating and maintenance costs, including future capital investment for rehabilitation and replacement, but also possibly staff resource levels. The capital program budget recommendation presented in this report utilized the new capital prioritization framework evaluation ratings to provide a more objective and consistent base across all asset categories for decision-making. Staff also referred to the September 2018 Citizen Survey results to incorporate additional feedback on citizen priorities and perspectives. Of interest, the Citizen Survey results indicated that 81% of respondents are Satisfied or Very Satisfied with “delivery of all services provided by the municipality” (question SI2), and questions SI4_A through SI4_Y indicate the majority of respondents prefer to “maintain service levels” instead of increasing or decreasing levels. Over 50% of respondents indicated they would prioritize the “maintenance of current streets and roads (e.g. fill potholes, patching, crack sealing)” as the top municipal infrastructure project to pursue over the next 5 years. These results reinforce for staff to prioritize investment in Asset Renewal projects and those which seek to mitigate the potential risk of service failure, so as to maintain a high quality of service delivery that is affordable for the community. The capital-related projects supporting the Integrated Mobility Plan (IMP) have been described in previous Council reports to be a strategic investment whose design results in a more efficient approach for our community’s growth. Although the current transit, road and active transportation asset inventory is the municipality’s most expensive asset group to maintain, the estimated $190 million IMP capital investment Proposed 2019-20 Multi-Year Capital Program Budget Committee of the Whole -4- December 4, 2018 is expected to minimize the asset group’s long-term expansion costs related to easing congestion under previous design methods. The July 2014 Council report presenting planned and potential strategic projects identified a conceptual funding strategy that consisted of sale of properties, debt policy changes and tax increases. An update to Council on the progress of these projects and funding-related risks was presented on October 3, 2017. Based on the recommendation from that report, the updated ten-year capital program outlook reflects prioritization ratings to better inform the discussion on which projects currently represent a high value of investment for the community within our long-term available resources. In an effort to further support delivery of the desired capital program, staff annually seek opportunities for external funding sources. One of the sources of interest recently is the Federal Infrastructure Funding Program, ‘Investing in Canada Infrastructure Program” (ICIP). The ICIP program describes additional potential funding from the federal and provincial governments in support of social, environmental and economic outcomes. Key to the bi-lateral agreement supporting the ICIP program, is that funds received under this agreement are not meant to displace municipal funds. HRM has not yet been invited to apply for funding on eligible projects and therefore most of the previously identified projects have been deferred beyond the next three years of the capital plan. Whereas there is a higher level of confidence that HRM will receive funding under the public transit stream, which is distributed based on ridership, staff have included this funding assumption within the three-year balanced budget. Staff have identified and accepted the associated risk with not receiving the public transit funds and are considering alternative funding strategies should they not be received. FINANCIAL IMPLICATIONS The recommendations in this report provide Regional Council with a basis for decision-alignment between Council’s priority outcome plans and the multi-year business plans. The financial implications of the approved capital program budget not only impact the capital funding sources including withdrawals from available reserves, but also associated operational budgets. New capital assets being completed or delivered in 2019-20 through 2021-22 require increases to annual business unit budgets for new operating and maintenance costs and for new staff resources in some instances. These increases may be offset, for some projects, by identified potential revenues or savings. In many cases, if a capital project to rehabilitate or replace an asset is delayed, the maintenance costs and staff costs will be higher in the operational budgets. Approval of the Advance Tender request, as outlined in Attachment 2, will result in preliminary procurement activities during 2018-19, however, no capital work will be started until 2019-20. The financial implications of the overall budget impact will be presented for discussion as each business unit delivers their budgets and business plans in more detail, before a final capital program budget decision is made. RISK CONSIDERATION Risks related to the recommendations in this report include assumptions of current asset condition and future level of service delivery demand. An evaluation of risk impact and likelihood for each proposed capital project has been performed as part of the budget preparation process and considered during the recommendation decision. Proposed 2019-20 Multi-Year Capital Program Budget Committee of the Whole -5- December 4, 2018 COMMUNITY ENGAGEMENT The annual budget deliberations by Committee of the Whole is open to the public.  The results from the Citizen Survey completed in September 2018, provided additional information on current priorities and expectations. ENVIRONMENTAL IMPLICATIONS Any project-specific environmental considerations are addressed during the individual capital project planning. Additionally, the corporate risk register has been updated to include climate change as a factor to be considered for mitigation going forward. Further integration into the Capital Prioritization Framework evaluations will occur during the 2020/21 capital planning process. ALTERNATIVES The Committee of the Whole can choose to amend the Capital Program Budget, including advance tender requests, as proposed in the accompanying presentation through specific motion. ATTACHMENTS Attachment 1a 2019-20 to 2021-22 Proposed Capital Program List, Years 1-3 Attachment 1b 2019-20 to 2021-22 Proposed Reserve Withdrawals List Attachment 1c 2019-20 to 2028-29 Ten-Year Outlook Attachment 2 2019-20 Advanced Tender Project List Attachment 3 2019-20 Multi-Year Project List Attachment 4 2019-20 to 2021-22 Alternative Priority Projects Recommendation for Consideration A copy of this report can be obtained online at halifax.ca or by contacting the Office of the Municipal Clerk at 902.490.4210. Report Prepared by: Crystal Nowlan, Manager, Asset Management 902.237.8768 Report Approval by: Jerry Blackwood, Acting Director of Finance and Asset Management/CFO, 902.490.6308 ATTACHMENT 1a 2019-20 to 2021-22 Proposed Capital Program List, Years 1-3 Capital Program Expenditures (Summary) Buildings Business Tools District Capital Funds Equipment & Fleet Halifax Transit Parks & Playgrounds Roads & Active Transportation Solid Waste Traffic Improvements Grand Total Operating Costs of Capital (Operating Savings of Capital) Buildings Business Tools District Capital Funds Equipment & Fleet Halifax Transit Parks & Playgrounds Roads & Active Transportation Solid Waste Traffic Improvements Grand Total Capital Program Expenditures (Detail) Buildings CBX01154 CB190004 CBX01157 CB190002 CB000067 CB000064 CB000045 CBX01268 CB000047 CB000075 CB000006 CB000007 CBX01161 CBX01162 CB000052 CB000088 CB000065 CB000090 CB180003 CBX01340 CB190003 CB180004 Build5 CB190001 CB000089 CB000073 CB180001 CB000022 CB000032 CB180007 CBX01165 CB180005 CB000060 CB000079 CB000028 CB000080 CB000084 CB000011 CB000087 Business Tools BT1 CI000002 CI990001 CI000015 CI990020 CI990018 BT2 CI990032 BT3 2018/19 Approved Gross Capital Budget 24,520,000 12,529,300 1,504,000 6,900,000 21,157,000 10,208,500 44,335,000 4,750,000 2,680,000 128,583,800 2018/19 Approved Net Capital Budget 12,036,000 10,969,300 1,504,000 6,800,000 19,157,000 7,150,000 42,600,000 2,500,000 102,716,300 2018/19 One-time OCC(OSC) 2018/19 Ongoing OCC(OSC) - 2018/19 Approved Gross Capital Budget Accessibility - HRM Facilities Alderney Gate Library Renovations Alderney Gate Recapitalization Bedford Library Replacement Bedford Outdoor Pool BMO Centre Cole Harbour Place Consulting Buildings Corporate Accommodations Dartmouth North Community Centre Upgrades Dartmouth Sportsplex Revitalization Eastern Passage High School Enhancements Energy Efficiency Initiatives Environmental Remediation/Building Demolition Fire Station 2, University Ave Recapitalization Fire Station Functional Improvements Fire Station Replacements General Building Recapitalization Halifax City Hall and Grand Parade Restoration Halifax Forum Redevelopment Halifax North Memorial Public Library Renovations HRM Depot Upgrades Keshen Goodman Library Renovations LeBrun Centre Renovations Mackintosh Depot Replacement Metropark Upgrades Multi-District Facilities (MDF)-Upgrades Police Headquarters Power House Recapitalization RBC Centre Regional Library Facility Upgrade Roof Recapitalization Sackville Sports Stadium Sambro/Harrietsfield Fire Station Scotiabank Centre Sheet Harbour Rec Centre South Peninsula School Gym Enhancement St. Andrew's Community Centre Renovation Wharf Recapitalization 2020 Municipal Election (eVoting) Application Recapitalization Business Intelligence (BI) Program Corporate Scheduling (Incl. Time Reporting) CRM Software Replacement Enterprise Content Management Program Fleet SAP Interface Improve & Upgrade HR Improvement Project HRFE AVL Devices 500,000 150,000 250,000 1,450,000 100,000 600,000 6,975,000 250,000 1,000,000 250,000 500,000 200,000 125,000 750,000 100,000 1,980,000 250,000 100,000 1,200,000 540,000 1,500,000 2,850,000 100,000 2,800,000 800,000 795,000 476,000 500,000 - 2019/20 Gross Capital Budget 28,745,000 18,106,950 1,504,000 8,591,000 30,835,000 12,860,000 37,641,000 2,240,000 4,325,000 144,847,950 2019/20 Net Capital Budget 19,755,000 7,533,450 1,504,000 7,291,000 22,554,000 6,950,000 36,590,000 2,215,000 104,392,450 2019/20 One-time OCC(OSC) 2019/20 Ongoing OCC(OSC) 2020/21 One-time OCC(OSC) (695,000) 3,348,979 3,370,888 11,250 196,300 175,000 49,980 6,457,397 (385,000) (385,000) 80,600 2,102,000 2,785,600 349,650 380,500 205,600 5,903,950 - 2018/19 Approved Net Capital Budget 2019/20 Gross Capital Budget 500,000 1,450,000 100,000 600,000 1,000,000 250,000 500,000 200,000 125,000 750,000 1,980,000 250,000 1,200,000 540,000 1,500,000 100,000 991,000 800,000 795,000 476,000 500,000 - 500,000 1,600,000 200,000 750,000 1,300,000 500,000 630,000 1,000,000 400,000 500,000 525,000 5,000,000 500,000 300,000 400,000 200,000 500,000 200,000 2,250,000 100,000 1,200,000 150,000 500,000 1,500,000 4,540,000 3,200,000 300,000 391,500 200,000 350,000 965,000 53,000 500,000 1,500,000 200,000 2019/20 Net Capital Budget 500,000 750,000 1,300,000 630,000 500,000 525,000 5,000,000 500,000 300,000 400,000 200,000 200,000 2,250,000 1,200,000 500,000 1,500,000 3,200,000 300,000 200,000 350,000 965,000 53,000 500,000 200,000 2020/21 Gross 2020/21 Net Capital Capital Budget Budget 20,410,000 13,910,000 12,754,354 9,609,354 1,504,000 1,504,000 8,825,000 8,225,000 25,440,000 14,040,000 4,150,000 3,400,000 45,000,000 44,500,000 1,790,000 25,855,000 2,350,000 145,728,354 97,538,354 2020/21 Gross Capital Budget 500,000 600,000 250,000 250,000 1,400,000 1,000,000 400,000 500,000 500,000 7,000,000 100,000 800,000 150,000 700,000 1,000,000 460,000 2,000,000 2,800,000 450,000 750,000 1,220,000 950,000 500,000 595,000 500,000 - 2020/21 Ongoing OCC(OSC) (1,352,000) 4,088,944 3,370,888 31,000 336,000 175,000 57,480 6,707,312 2020/21 Net Capital Budget 500,000 250,000 1,400,000 500,000 500,000 4,000,000 800,000 700,000 460,000 2,000,000 2,800,000 450,000 750,000 1,220,000 950,000 500,000 - 2021/22 Gross Capital Budget 18,800,000 6,335,000 1,504,000 9,678,000 31,735,000 6,250,000 45,000,000 450,000 21,305,000 141,057,000 2021/22 One-time OCC(OSC) - 2021/22 Gross Capital Budget 500,000 500,000 600,000 100,000 250,000 500,000 1,000,000 400,000 500,000 500,000 4,000,000 500,000 3,500,000 100,000 800,000 1,000,000 150,000 250,000 900,000 500,000 1,000,000 750,000 500,000 450,000 875,000 950,000 500,000 410,000 - 2021/22 Net Capital Budget 9,800,000 5,175,000 1,504,000 9,678,000 12,000,000 5,500,000 44,500,000 3,100,000 91,257,000 Total 3-Year Gross Capital Budget 67,955,000 37,196,304 4,512,000 27,094,000 88,010,000 23,260,000 127,641,000 4,480,000 51,485,000 431,633,304 Total 3-Year Net Capital Budget 43,465,000 22,317,804 4,512,000 25,194,000 48,594,000 15,850,000 125,590,000 7,665,000 293,187,804 Total 3-Year 2021/22 Ongoing Total 3-Year OCC(OSC) One-time OCC(OSC) Ongoing OCC(OSC) (2,097,000) 4,166,262 2,708,900 31,000 475,700 175,000 164,980 5,624,842 2021/22 Net Capital Budget 500,000 500,000 100,000 500,000 500,000 500,000 3,500,000 800,000 250,000 900,000 500,000 750,000 500,000 450,000 875,000 950,000 500,000 - (385,000) (385,000) Total 3-Year Gross Capital Budget 1,500,000 500,000 2,800,000 250,000 100,000 700,000 750,000 2,700,000 500,000 500,000 630,000 3,000,000 1,200,000 500,000 1,525,000 5,000,000 1,500,000 300,000 4,400,000 500,000 200,000 500,000 200,000 12,750,000 300,000 2,800,000 1,000,000 450,000 250,000 2,100,000 500,000 1,500,000 6,540,000 750,000 460,000 5,200,000 3,600,000 391,500 1,100,000 1,975,000 2,185,000 1,953,000 1,500,000 1,005,000 2,000,000 200,000 (4,144,000) 11,604,185 9,450,676 73,250 1,008,000 525,000 272,440 18,789,551 Total 3-Year Net Capital Budget 1,500,000 500,000 250,000 100,000 750,000 2,700,000 500,000 630,000 500,000 1,525,000 5,000,000 1,500,000 300,000 400,000 200,000 200,000 9,750,000 2,800,000 250,000 2,100,000 500,000 1,500,000 750,000 460,000 5,200,000 3,600,000 1,100,000 1,975,000 2,185,000 1,953,000 1,500,000 200,000 Capital Program Expenditures (Detail) CI990028 BT4 CI990023 CI000016 CI990004 CI000004 CI990002 BT5 BT6 CI990031 CI990013 CI000005 CI990009 BT8 CIN00200 BT9 District Capital Funds VARIOUS Equipment & Fleet CE180002 CE180004 CE010002 Fleet1 CE020002 CE180001 CVU01207 CE180003 CE020001 CVK01207 Halifax Transit CM180002 CVD00430 CB000082 CM000005 CM000012 CM000018 CV020006 CM180007 CBX01171 CB000039 CM180004 CM180008 CM180005 CB000125 CM180001 CB000016 CM000009 CMU01095 CV000004 CB000042 Parks & Playgrounds CP000018 CP000020 CP000011 CD990003 CP180004 CP180001 CPX01193 CP190002 CP180002 CP180003 CP180005 CP000014 Roads & Active Transportation CR180001 CR180003 CT000010 CR180006 CR180007 CR180004 CR180005 CR180002 CR000009 Solid Waste Waste1 CW000004 CWU01353 CW000001 CW000013 CW000012 CW000007 CW000011 CW000009 CW000003 Traffic Improvements Traffic1 CT000013 2018/19 Approved Gross Capital Budget HRFE Fire Department Management (FDM) Review & Enhancements HRFE Intelligent Dispatching (AVRR) HRP Records Management System Optimization (Incl. eDisclosure & Data Mgmt) HRP Source Management ICT Business Tools ICT Infrastructure Recapitalization IT Service Management iVos Implementation Office 365 Migration Parking Technology Permitting, Licensing, and Compliance Replacement Solution Recreation Services Software Revenue & Financial Accounting Management Solution Road Disruption Management Solution SAP Optimization SAP: Procurement District Capital Funds Fire Apparatus Replacement Fire Services Equipment Replacement Fire Services Water Supply Fire/Rescue Boat Replacement Fleet Expansion Fleet Vehicle Replacement Ice Resurfacer Replacement Police Fleet Police Services Equipment Replacement Police Vehicle Equipment Access-A-Bus Expansion Access-A-Bus Replacement Burnside Transit Centre Roof Repairs Bus Maintenance Equipment Replacement Bus Stop Accessibility & Improvement Commuter Rail Conventional Bus Replacement Ferry Refit Ferry Terminal Pontoon Rehabilitation Halifax Ferry Terminal Mid-Life Rebuild Moving Forward Together Plan Implementation New Transit Technology Ragged Lake Transit Centre Expansion Sustainable Fuel Study Transit Facility Investment Strategy Transit Priority Measures Transit Strategy Transit Support Vehicle Replacement Woodside Ferry Terminal Upgrades Beazley Park Cemetery Upgrades Cornwallis Park Master Plan Implementation Cultural Spaces Park Land Acquisition Park Recapitalization Public Gardens Upgrades Recreational Trails Regional Water Access/Beach Upgrades Sports Fields/Courts - State of Good Repair Sports/Ball Fields/Courts - New Western Common Master Plan Implementation Active Transportation - Strategic Projects Bridges Macdonald Bridge Bikeway Connection New Paving Streets - HRM Owned Roads New Paving Subdivision Streets - Provincial Other Road Related Works Road Operations and Construction - State of Good Repair Sidewalk Renewals Street Recapitalization Burnside Composting Facility Repairs Composting/Anaerobic Digestion (AD) Plant Environment Monitoring Site Work 101 Landfill Green Carts for New Residents/Replacement Green Carts Leachate Forcemain Materials Recovery Facility Purchase Materials Recovery Facility Repairs Miller Composting Purchase New Era Recapitalization Rural Depots Bedford Highway Burnside Connection to Highway 107 150,000 200,000 240,000 800,000 125,000 1,560,000 2,618,300 1,950,000 2,065,000 250,000 1,504,000 2,455,000 1,250,000 135,000 1,300,000 125,000 1,000,000 460,000 175,000 100,000 2,000,000 625,000 235,000 500,000 9,022,000 100,000 685,000 900,000 4,100,000 2,000,000 200,000 350,000 250,000 90,000 50,000 250,000 2,500,000 3,185,000 600,000 500,000 2,850,000 223,500 50,000 4,100,000 2,500,000 300,000 650,000 490,000 2,250,000 4,000,000 2,750,000 27,295,000 250,000 100,000 400,000 300,000 1,200,000 50,000 2,100,000 350,000 - 2018/19 Approved Net Capital Budget 150,000 200,000 240,000 800,000 125,000 2,618,300 1,950,000 2,065,000 250,000 1,504,000 2,455,000 1,250,000 35,000 1,300,000 125,000 1,000,000 460,000 175,000 100,000 2,000,000 625,000 235,000 500,000 9,022,000 100,000 685,000 900,000 2,100,000 2,000,000 200,000 350,000 250,000 90,000 50,000 500,000 2,750,000 600,000 400,000 2,800,000 50,000 4,100,000 2,500,000 300,000 305,000 2,250,000 4,000,000 2,750,000 26,395,000 - 2019/20 Gross Capital Budget 250,000 125,000 300,000 1,875,000 275,000 205,000 150,000 1,682,000 1,050,000 351,450 4,500,000 284,000 400,000 2,500,000 1,504,000 3,780,000 1,130,000 75,000 1,300,000 1,750,000 106,000 250,000 200,000 580,000 2,800,000 350,000 15,400,000 288,000 176,000 7,601,000 500,000 500,000 640,000 2,000,000 2,000,000 250,000 7,000,000 1,970,000 100,000 1,500,000 40,000 4,000,000 3,090,000 1,000,000 242,000 270,000 2,000,000 4,000,000 500,000 22,539,000 500,000 1,000,000 280,000 460,000 250,000 - 2019/20 Net Capital Budget 250,000 125,000 300,000 1,875,000 275,000 205,000 150,000 1,050,000 351,450 284,000 400,000 1,504,000 3,780,000 1,130,000 75,000 1,750,000 106,000 250,000 200,000 580,000 2,800,000 350,000 9,240,000 288,000 176,000 5,601,000 500,000 379,000 640,000 2,000,000 2,000,000 1,500,000 1,870,000 80,000 1,500,000 4,000,000 3,090,000 1,000,000 161,333 2,000,000 4,000,000 500,000 21,838,667 250,000 - 2020/21 Gross Capital Budget 665,000 250,000 200,000 1,225,000 400,000 650,000 1,805,000 794,354 900,000 400,000 500,000 1,504,000 3,850,000 1,130,000 1,700,000 125,000 1,400,000 420,000 200,000 1,275,000 300,000 350,000 14,000,000 600,000 600,000 685,000 3,530,000 100,000 4,000,000 250,000 500,000 1,500,000 250,000 150,000 1,500,000 3,000,000 3,500,000 500,000 2,000,000 4,000,000 2,000,000 30,000,000 1,000,000 400,000 50,000 340,000 - 2020/21 Net Capital Budget 665,000 250,000 200,000 1,225,000 400,000 1,805,000 794,354 400,000 1,504,000 3,850,000 1,130,000 1,700,000 125,000 800,000 420,000 200,000 1,275,000 300,000 350,000 4,600,000 600,000 600,000 685,000 3,530,000 100,000 2,000,000 1,500,000 250,000 150,000 1,500,000 3,000,000 3,500,000 2,000,000 4,000,000 2,000,000 30,000,000 - 2021/22 Gross Capital Budget 250,000 400,000 950,000 400,000 750,000 400,000 1,504,000 3,850,000 1,078,000 2,000,000 125,000 1,900,000 500,000 225,000 990,000 300,000 350,000 26,500,000 600,000 250,000 685,000 60,000 2,000,000 250,000 350,000 250,000 500,000 1,500,000 250,000 150,000 3,000,000 3,000,000 3,500,000 500,000 2,000,000 4,000,000 2,000,000 30,000,000 400,000 50,000 4,000,000 2021/22 Net Capital Budget 250,000 400,000 950,000 400,000 400,000 1,504,000 3,850,000 1,078,000 2,000,000 125,000 1,900,000 500,000 225,000 990,000 300,000 350,000 8,765,000 600,000 250,000 685,000 60,000 250,000 350,000 1,500,000 250,000 150,000 3,000,000 3,000,000 3,500,000 2,000,000 4,000,000 2,000,000 30,000,000 1,000,000 Total 3-Year Gross Capital Budget 665,000 750,000 125,000 900,000 4,050,000 1,075,000 205,000 150,000 3,082,000 2,855,000 1,145,804 5,400,000 284,000 1,200,000 3,000,000 4,512,000 11,480,000 3,338,000 75,000 1,300,000 5,450,000 356,000 3,300,000 1,170,000 625,000 2,845,000 2,800,000 600,000 1,050,000 55,900,000 1,488,000 850,000 1,546,000 7,601,000 4,030,000 500,000 640,000 160,000 8,000,000 2,250,000 350,000 750,000 8,000,000 4,970,000 500,000 400,000 6,000,000 40,000 10,000,000 10,090,000 1,000,000 242,000 1,270,000 6,000,000 12,000,000 4,500,000 82,539,000 500,000 2,000,000 800,000 380,000 460,000 340,000 250,000 4,000,000 Total 3-Year Net Capital Budget 665,000 750,000 125,000 900,000 4,050,000 1,075,000 205,000 150,000 2,855,000 1,145,804 284,000 1,200,000 4,512,000 11,480,000 3,338,000 75,000 5,450,000 356,000 2,700,000 1,170,000 625,000 2,845,000 2,800,000 600,000 1,050,000 22,605,000 1,488,000 850,000 1,546,000 5,601,000 4,030,000 379,000 640,000 160,000 4,000,000 2,250,000 350,000 1,500,000 4,870,000 500,000 380,000 6,000,000 10,000,000 10,090,000 1,000,000 161,333 6,000,000 12,000,000 4,500,000 81,838,667 250,000 1,000,000 Capital Program Expenditures (Detail) CT000007 Cogswell Interchange Redevelopment CT180004 Controller Cabinet and Detection Program CTR00904 Destination Signage Program CT190003 Downtown Dartmouth Infrastructure Renewal CTX01116 Herring Cove Road CT000014 Integrated Mobility Program Land Acquisition CEJ01220 Opticom Signalization System Traffic3 Portland Street CT000015 Railway Crossing Improvements CT180006 Road Corridor Land Acquisition CT180005 Road Safety Improvement Program CT000016 Shearwater Connector CT180001 Street Lighting CT180007 Traffic Signal Installation CT180002 Traffic Signal Rehabilitation CT180003 Traffic Signal Re-lamping Program Grand Total - Proposed Three-Year Capital Program 2018/19 Approved Gross Capital Budget 300,000 80,000 100,000 150,000 100,000 330,000 400,000 700,000 520,000 128,583,800 2018/19 Approved Net Capital Budget 300,000 150,000 100,000 330,000 400,000 700,000 520,000 102,716,300 2019/20 Gross Capital Budget 660,000 200,000 120,000 200,000 250,000 1,450,000 150,000 30,000 215,000 275,000 385,000 140,000 144,847,950 2019/20 Net Capital Budget 200,000 120,000 200,000 250,000 150,000 30,000 215,000 275,000 385,000 140,000 104,392,450 2020/21 Gross Capital Budget 23,500,000 350,000 5,000 250,000 500,000 250,000 500,000 500,000 145,728,354 2020/21 Net Capital Budget 350,000 250,000 500,000 250,000 500,000 500,000 97,538,354 2021/22 Gross Capital Budget 15,200,000 350,000 5,000 500,000 250,000 500,000 500,000 141,057,000 2021/22 Net Capital Budget 350,000 500,000 250,000 500,000 500,000 91,257,000 Total 3-Year Gross Capital Budget 39,360,000 900,000 120,000 200,000 250,000 1,450,000 10,000 150,000 280,000 1,215,000 775,000 1,385,000 1,140,000 431,633,304 Total 3-Year Net Capital Budget 900,000 120,000 200,000 250,000 150,000 280,000 1,215,000 775,000 1,385,000 1,140,000 293,187,804 ATTACHMENT 1b 2019-20 to 2021-22 Proposed Reserve Withdrawals List Q421 General Contingency Reserve Fleet1 Fire/Rescue Boat Replacement CP180004 Park Land Acquisition Q511 Municipal Elections Reserve BT1 2020 Municipal Election (eVoting) Q526 Capital Fund Reserve CBX01161 Energy Efficiency Initiatives CBX01162 Environmental Remediation/Building Demolition CT000014 Integrated Mobility Program Land Acquisition CI990031 Parking Technology TBD To Be Allocated to Various Projects Q531 Vehicle Fleet & Equipment Reserve CEJ01220 Opticom Signalization System CE180003 Police Fleet Q536 Central Library Recapitalization Reserve CB190003 Halifax North Memorial Public Library Renovations Build5 Keshen Goodman Library Renovations Q541 Building Recapitalization and Replacement Reserve CBX01157 Alderney Gate Recapitalization CB000089 Mackintosh Depot Replacement CB000073 Metropark Upgrades Q546 Multi District Facilities Reserve CB000064 BMO Centre CB180007 RBC Centre CB000028 Scotiabank Centre Q551 Transit Capital Reserve CB000016 Transit Facility Investment Strategy Q556 Solid Waste Facilities Reserve Waste1 Burnside Composting Facility Repairs CW000004 Composting/Anaerobic Digestion (AD) Plant CW000001 Green Carts for New Residents/Replacement Green Carts CW000007 Materials Recovery Facility Repairs CW000009 New Era Recapitalization CW000003 Rural Depots Q606 Strategic Capital Reserve CT000007 Cogswell Interchange Redevelopment CB000006 Dartmouth Sportsplex Revitalization CBX01340 Halifax Forum Redevelopment CB000022 Police Headquarters Q611 Parkland Development Reserve CP180004 Park Land Acquisition Q616 Business/Industrial Park Expansion Reserve CT000013 Burnside Connection to Highway 107 Q621 Community and Events Reserve CD990003 Cultural Spaces Q631 Debt Principal and Interest Repayment Reserve BT2 Fleet SAP Interface Improve & Upgrade CI990032 HR Improvement Project CI990009 Revenue & Financial Accounting Management Solution BT9 SAP: Procurement TBD To Be Allocated to Various Projects Grand Total - Reserve Withdrawals to Fund Capital Program 2019/20 Reserves 4,800,000 1,300,000 3,500,000 391,500 391,500 4,532,000 1,000,000 400,000 1,450,000 1,682,000 500,000 500,000 1,700,000 1,600,000 100,000 4,890,000 200,000 150,000 4,540,000 121,000 121,000 2,240,000 500,000 1,000,000 280,000 460,000 1,160,000 660,000 500,000 2,000,000 2,000,000 250,000 250,000 18,500,000 1,500,000 4,500,000 2,500,000 10,000,000 41,084,500 2020/21 Reserves 6,050,000 1,000,000 400,000 650,000 4,000,000 605,000 5,000 600,000 3,700,000 600,000 3,000,000 100,000 1,400,000 250,000 150,000 1,000,000 1,790,000 1,000,000 400,000 50,000 340,000 23,500,000 23,500,000 500,000 500,000 250,000 250,000 2,495,000 595,000 500,000 900,000 500,000 40,290,000 2021/22 Reserves 2,150,000 1,000,000 400,000 750,000 5,000 5,000 500,000 500,000 700,000 600,000 100,000 1,400,000 250,000 150,000 1,000,000 450,000 400,000 50,000 20,200,000 15,200,000 4,000,000 1,000,000 500,000 500,000 3,000,000 3,000,000 250,000 250,000 410,000 410,000 29,565,000 ATTACHMENT 1c 2019-20 to 2028-29 Ten-Year Outlook Buildings Business Tools District Capital Funds Equipment & Fleet Halifax Transit Parks & Playgrounds Roads & Active Transportation Solid Waste Traffic Improvements Grand Total - Ten-Yr Capital Program 2018/19 Gross Capital Budget 24,520,000 12,529,300 1,504,000 6,900,000 21,157,000 10,208,500 44,335,000 4,750,000 2,680,000 128,583,800 2019/20 Gross Capital Budget 28,745,000 18,106,950 1,504,000 8,591,000 30,835,000 12,860,000 37,641,000 2,240,000 4,325,000 144,847,950 2020/21 Gross Capital Budget 20,410,000 12,754,354 1,504,000 8,825,000 25,440,000 4,150,000 45,000,000 1,790,000 25,855,000 145,728,354 2021/22 Gross Capital Budget 18,800,000 6,335,000 1,504,000 9,678,000 31,735,000 6,250,000 45,000,000 450,000 21,305,000 141,057,000 2022/23 Gross Capital Budget 90,083,000 8,275,000 1,504,000 16,852,600 30,831,835 14,700,000 66,720,000 550,000 47,745,000 277,261,435 2023/24 Gross Capital Budget 114,231,000 9,000,000 1,504,000 8,325,000 29,277,572 18,900,000 68,145,000 550,000 32,395,000 282,327,572 2024/25 Gross Capital Budget 57,450,000 8,000,000 1,504,000 8,425,000 22,019,923 12,900,000 68,370,000 920,000 15,385,000 194,973,923 2025/26 Gross Capital Budget 45,230,000 7,000,000 1,504,000 12,635,000 21,003,922 12,600,000 64,800,000 550,000 7,715,000 173,037,922 2026/27 Gross Capital Budget 22,560,000 8,000,000 1,504,000 8,275,000 18,720,000 9,600,000 66,235,000 550,000 17,285,000 152,729,000 2027/28 Gross Capital Budget 15,260,000 8,000,000 1,504,000 8,275,000 19,320,000 8,800,000 68,520,000 940,000 11,500,000 142,119,000 2028/29 Gross Capital Budget 15,260,000 8,000,000 1,504,000 8,275,000 25,120,000 6,800,000 69,805,000 550,000 17,540,000 152,854,000 Revised - Addition of Beazley Park ATTACHMENT 2 - Revised (Jan 7/19) 2019-20 Advanced Tender Project List Budget Category Project Account # Buildings CB000006 Buildings CB000052 Buildings CB000065 Buildings CB180003 Buildings CB190001 Buildings CB180001 Buildings CB180005 Buildings CB000079 Buildings CB000028 Buildings CB000011 Buildings CB000087 Business Tools CI990032 Business Tools CI990031 Business Tools BT9 Business Tools CI990009 Equipment & Fleet CE180002 Equipment & Fleet CE180001 Halifax Transit CV020006 Halifax Transit CM180008 Parks & Playgrounds CP000018 Parks & Playgrounds CP180004 Parks & Playgrounds CP180001 Parks & Playgrounds CP180002 Parks & Playgrounds CP180003 Roads & Active Transportation CR180001 Roads & Active Transportation CR180003 Roads & Active Transportation CT000010 Roads & Active Transportation CR180006 Roads & Active Transportation CR180007 Roads & Active Transportation CR180004 Roads & Active Transportation CR180002 Roads & Active Transportation CR000009 Roads & Active Transportation CR180005 Grand Total - 2019/20 Advanced Tenders Project Name Dartmouth Sportsplex Revitalization Fire Station 2, University Ave Recapitalization Fire Station Replacements Halifax City Hall and Grand Parade Restoration LeBrun Centre Renovations Multi-District Facilities (MDF)-Upgrades Roof Recapitalization Sambro/Harrietsfield Fire Station Scotiabank Centre St. Andrew's Community Centre Renovation Wharf Recapitalization HR Improvement Project Parking Technology SAP: Procurement Revenue & Financial Accounting Management Fire Apparatus Replacement Fleet Vehicle Replacement Conventional Bus Replacement Moving Forward Together Plan Implementation Beazley Park Park Land Acquisition Park Recapitalization Regional Water Access/Beach Upgrades Sports Fields/Courts - State of Good Repair Active Transportation - Strategic Projects Bridges Macdonald Bridge Bikeway Connection New Paving Streets - HRM Owned Roads New Paving Subdivision Streets - Provincial Other Road Related Works Sidewalk Renewals Street Recapitalization Road Operations & Construction - State of Good Repair 2019/20 Proposed Gross Capital Budget 500,000 500,000 5,000,000 300,000 200,000 1,200,000 500,000 1,500,000 4,540,000 3,200,000 300,000 2,000,000 1,682,000 2,500,000 4,500,000 3,780,000 1,750,000 15,400,000 7,601,000 2,000,000 7,000,000 1,970,000 100,000 1,500,000 4,000,000 3,090,000 1,000,000 242,000 270,000 2,000,000 500,000 22,539,000 4,000,000 107,164,000 2019/20 Advanced Tendering Request 500,000 500,000 5,000,000 300,000 200,000 300,000 500,000 1,500,000 3,200,000 3,200,000 300,000 2,000,000 1,682,000 2,500,000 4,500,000 3,780,000 1,390,000 15,400,000 7,601,000 2,000,000 7,000,000 1,870,000 50,000 1,500,000 4,000,000 2,500,000 1,000,000 242,000 270,000 1,500,000 500,000 13,000,000 2,000,000 91,785,000 ATTACHMENT 3 2019-20 Multi-Year Project List Budget Category Buildings Project Name Mackintosh Depot Replacement St. Andrew's Community Centre Renovation Corporate Scheduling CRM Software Replacement Enterprise Content Management Program HR Improvement Project Parking Technology Permitting, Licensing, and Compliance Replacement Solution Recreation Services Software Revenue Management Solution SAP: Procurement Halifax Transit Moving Forward Together Plan Implementation New Transit Technology Woodside Ferry Terminal Upgrades Parks & Playgrounds Beazley Park Traffic Improvements Cogswell Interchange Redevelopment Grand Total - 2019/20 Muti-Year Projects Business Tools This list supercedes the list Attachment C, April 24, 2018 Project Account # CB000089 CB000011 CI000015 CI990020 CI990018 CI990032 CI990031 CI990013 CI000005 CI990009 BT9 CM180008 CM180005 CB000042 CP000018 CT000007 2016/17 Approved Gross Budget 150,000 400,000 900,000 250,000 5,700,000 3,000,000 10,400,000 2017/18 2018/19 2019/20 2020/21 Approved Approved Proposed Gross Proposed Gross Budget Gross Budget Budget Gross Budget 700,000 750,000 250,000 150,000 470,000 457,000 1,645,000 500,000 700,000 15,000,000 20,622,000 750,000 2,800,000 795,000 476,000 500,000 500,000 1,560,000 2,618,300 1,950,000 2,065,000 900,000 4,100,000 19,014,300 2,250,000 3,200,000 965,000 53,000 500,000 1,500,000 1,682,000 1,050,000 351,450 4,500,000 2,500,000 7,601,000 7,300,000 2,000,000 2,000,000 175,000 37,627,450 7,000,000 2,000,000 1,222,000 950,000 500,000 500,000 650,000 1,805,000 795,354 900,000 500,000 4,000,000 25,000,000 45,822,354 2021/22 Proposed Gross Budget 3,500,000 950,000 500,000 750,000 2,000,000 250,000 17,825,000 25,775,000 2022/23 Proposed Gross Budget 3,000,000 500,000 4,036,835 200,000 7,736,835 2023/24 Proposed Gross Budget 2024/25 Proposed Gross Budget 2025/26 Proposed Gross Budget 500,000 4,117,572 1,000,000 5,617,572 4,199,923 2,000,000 6,199,923 4,283,922 4,283,922 Grand Total 13,500,000 8,700,000 3,882,000 5,679,000 3,150,000 2,500,000 5,112,000 6,330,300 5,641,804 8,215,000 3,000,000 25,139,252 17,800,000 8,000,000 3,450,000 61,000,000 181,099,356 ATTACHMENT 4 2019-20 to 2021-22 Alternative Priority Projects Recommendation for Consideration Net Funded Within 3Year Budget Recommendation Project Name Project # Active Transportation CR180001 10,000,000 6,348,000 12,000,000 Complete Streets Dartmouth North Community Centre/Library CT180008 CB000075 500,000 350,000 - 550,000 2,000,000 Downtown Dartmouth Infrastructure Renewal CT190003 200,000 Fire Station Replacements (#8, #9, Training) Fleet Replacement Heavy Equipment General Building Recapitalization CB000065 CE180001 CB000090 5,000,000 5,450,000 1,500,000 Halifax North Memorial Library Renos Moving Forward Together CB190003 CM180008 New Transit Technology (Fare Mgmt) Off-Leash Dog Park Park Recapitalization CM180005 - 5,601,000 2019/20 Net 2020/21 Net 417,000 700,000 500,000 - 3,500,000 5,000,000 325,000 5,500,000 3,233,400 2021/22 Net RISK Rating OVERALL Rating 12,000,000 VERY HIGH HIGH 1,500,000 750,000 VERY HIGH MED HIGH MED-HIGH MED MED VERY HIGH MED HIGH HIGH MED MED-HIGH 6,000,000 250,000 325,000 - 5,173,400 HIGH VERY HIGH HIGH HIGH CP180001 4,030,000 4,870,000 650,000 5,212,000 300,000 1,500,000 2,500,000 HIGH LOW HIGH MED-HIGH MED HIGH Ragged Lake Transit Centre Expansion Regional Park Washrooms (Penhorn) Sidewalk Renwals Sports Fields/Courts - SOGR CB000125 CB000010 CR180002 CP180003 4,500,000 6,000,000 400,000 2,440,000 1,500,000 5,200,000 400,000 1,750,000 1,500,000 500,000 400,000 2,000,000 4,000,000 MED HIGH HIGH HIGH MED-HIGH MED-HIGH HIGH MED-HIGH Street Recapitalization CP180003 81,838,667 5,000,000 3,000,000 4,000,000 HIGH HIGH Transit Priority Measures Corridor (Bayers Rd) CM000014 Transit Priority Measures Corridor (Robie Street) CM000014 Additional Net Budget Request 3-Yr Cumulative Total 129,489,667 3,500,000 21,805,000 5,000,000 1,500,000 57,470,400 39,398,400 118,673,800 VERY HIGH VERY HIGH HIGH HIGH Identified Risk of Current Project Deferral Staff will be unable to deliver on new AT or Sidewalk projects as directed/anticipated by Council. For example, staff will be unable to construct the AAA bike network for 2022 as directed by Council as part of the IMP. As well, pavement recapitalization projects will need to proceed and exclude consideration of new sidewalks/AT where warranted. Desired roadway changes may require land acquisition and public engagement which can otherwise delay capital investment if not done in advance. Roadway asset renewal projects may miss opportunities to make desired changes that would advance IMP goals and then need to be redone before they have reached the end of their useful asset life. Building condition would continue to remain poor with limited functionality for public Loss of (a) connectivity of Green way, (b) Sawmill Creek daylighting opportunity, and (c)development/integration of underutilized land with Downtown Dartmouth By not proceeding with the new station builds, HRFE will continue to not be able to meet minimum response time targets for residents and businesses located in the Larry Uteck area. This could compromise public safety and create high risk and liability for HRM. Potential failure to provide vehicles for snow and ice control Potential service disruption If renovations are delayed there is a significant risk of service interruption due to the age of the building and known issues with the existing building systems. This is a public space of critical importance to the surrounding community, and any closure would negaitvely impact members of the community. Delays in renovation to Halifax North Library would also impact the opportunity to use the Library as a comfort centre in the event of an emergency. There are very high public expectation around the completion of this in-flight project. The planning and council approval of this project involved three years of staff effort and more importantly, intense engagement with the public and council on what their future transit network should look like. We are roughly half way through implementation and the service improvements are grouped geographically. As a result, not finishing implementation of the plan will result in a discontinuous/inconsistent network, and significant inequalities in service levels between communities. Early service changes under this plan has yielded significant ridership increases, indicating that the plan is working. However it must be completed to have full effect. This is Halifax Transit's top priority and is packaged with the Ragged Lake Transit Centre Expansion. There are very high public expectations around the electronic fare payment project (fare management phase 2). Council's approval to break the original fare management project into two phases was predicated on doing both phases. We have been making operational decisions (ie unpopular large tickets) on the basis that they were a shortterm gap solution until electronic fare payment was in place. This is has been a key component of our communications around this. There is evidence of revenue increases from other installations of electronic fare payment due to a significant decrease in fare evasion. Continued pressure on remaining parks, specifically Shubie with safety, environmental and conflict issues due to overcrowding Added burden on operational budget to maintain assets beyond life, safety concerns, some assets may need to be closed This project is required to go forward in order to create storage and maintenance capacity for any fleet expansion beyond 2019-20. It is a packaged requirement with Moving Forward Together Plan implementation in 20/21 and 21/22. Current building condition is substandard and well beyond life cycle, potential closure would be required Sidewalk condition will continue to deteriorate and opportunities will be missed to integrate renewals with pavement recapitalization. Added burden on operational budget to maintain assets beyond life, safety concerns, some assets may need to be closed Staff will be unable to maintain current pavement condition index. Year one budget represents a 40 percent shortfall to maintain current index while encompassing complete street designs. Bayers Road is among the worst chokepoints in the Halifax Transit network. It was identified in the Moving Forward Together Plan as a key link in the transportation network that needs addressing, and this project to construct transit lanes will have a significant positive impact on service reliability. The current congestion levels on Bayers Road are such that as an interim measure, the Route 1 is currently being detoured through a residential neighbourhood on Roslyn Road, with the understanding that this is a temporary measure until the project is complete. Completion of this project not only greatly improves service quality and reliabilty for the passengers in the immediate neighbourhood, on local routes, but will increase the attractiveness of transit for people travelling to and from Tantallon, Clayton Park, Bedford and surrounding communities. As such, this project has the potential to significantly increase ridership and provide high quality options for commuters in a cost effective way, forming the building blocks for future higher order transit. If this project is delayed, it will delay the implementation of the Integrated Mobility Plan as approved by Regional Council. An increase to average taxes at the end of Year 3 by 13.4%. (increase in the average home tax of $256)