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2018 Final Capital Budget Approval Town of Aurora Council Report No. FS17-048 Subject: 2018 Final Capital Budget Report Prepared by: Karen Oreto, Financial Analyst Department: Financial Services Date: November 14, 2017 Recommendation 1. That Report No. FS17-048 be received; and 2. That the updated 2017 Asset Management Plan be received; and 3. That the updated 2017 Ten Year Capital Investment Plan be received; and 4. That the 2018 Capital Budget for Repair and Replacement of existing infrastructure totaling $13,406,329 as listed in Attachment 3, be approved; and 5. That the 2018 Capital Budget for Growth and New Capital totaling $16,029,611 as listed in Attachment 4 be approved; and 6. That the 2018 Capital Budget for Studies and Other Projects totaling $605,000 as listed in Attachment 5, be approved; and 7. That the funding sources for each capital project included in this report be approved as those reviewed and recommended by Budget Committee on October 14 and November 7, 2017. Executive Summary To present to Council for its formal adoption the 2017 Asset Management Plan, the 2017 Ten Year Capital Investment Plan and the 2018 Capital Budget as recommended by the Budget Committee on October 14 and November 7, 2017. Background Each year staff presents the town’s Asset Management Plan, Ten Year Capital Investment Plan as well as its Capital Budget Plan for the following fiscal year for its review and/or approval. Upon receipt and/or approval by council these documents Council Meeting Agenda Tuesday, November 14, 2017 Item R1 Page 1 of 12 November 14, 2017 Page 2 of 6 Report No. FS17-048 provide staff with the direction to proceed with the identified capital projects for the following year. Analysis Asset Management Plan (AMP) The Asset Management Plan forms the foundation upon which the town bases its existing asset repair, replacement and rehabilitation decisions upon. It is a strategic document stating the characteristics and condition of infrastructure assets, levels of service expected from them, planned actions to ensure the assets are providing the expected level of service, specifically including how evaluation and replacement decisions are made, and financing strategies to implement the planned actions. The overall intent of the AMP is to help the Town to ensure that its investments in its existing assets are made at the right time, future repair and rehabilitation costs are minimized, and municipal assets are being appropriately maintained for the optimal service life at the lowest cost. In the updated 2017 Asset Management Plan, the core foundational methodologies for asset repair, replacement & rehabilitation remain unchanged from those approved by Council in prior years. The only changes made to the updated 2017 AMP relate to its financial tables which have been updated to ensure continued alignment with the town’s most recent ten year capital investment strategy. A link to the complete AMP has been provided in the Attachments section under Attachment #1. Ten Year Capital Investment Plan Complementing the Town’s AMP is its annual Ten Year Capital Investment Plan which represents a consolidation of the anticipated needs of the Town’s departments. All repair, replacement & rehabilitation capital items contained within this plan are guided by the foundational philosophies outlined in the town’s AMP. This plan is intended to assist the managers responsible for each asset category to carefully plan the long term sustainability of each asset, and ensure appropriate and timely budgeting for the replacement of assets at the optimal time, balancing available funding, with the need and condition of the asset and its service. On October 14, 2017, the 2017 Ten Year Capital Investment Plan was presented to Budget Committee. A link to the complete Ten Year Capital Investment Plan has been provided in the Attachments section under Attachment #2. The Ten Year Capital Investment Plan presented contains the detailed plans for assets showing the approved 2017 capital budget plus ten forecast years from 2018 to 2027. These plans have been reviewed and updated by each asset manager. Council Meeting Agenda Tuesday, November 14, 2017 Item R1 Page 2 of 12 November 14, 2017 Page 3 of 6 Report No. FS17-048 The ten year plan shows a planned investment requirement of $262 million in total over the next ten years; $124.5 million for Repair and Replacement, $134.4 million for growth and new assets, and approximately $3 million for studies and other. Draft 2018 Capital Budget On October 14, 2017, an overview of the draft of the Town’s Capital Budget was presented to the Budget Committee. The committee concluded its review of the 2018 capital budget on November 7, 2017. As in the past, the capital budget has been presented in three parts: • Repair and Replacement Infrastructure Capital • Growth and New Infrastructure Capital • Studies and Other Non-Infrastructure Projects As a result of the concept of a “Cash to Capital” reserve allocation from tax levy and the internal funding of capital coming from resultant infrastructure and other reserves, there is no longer a direct impact on the tax rate by the capital budget. As such, the Committee recommended capital budget is driven by asset need rather than impact on taxes. A number of projects have been noted in the schedules as “conditional approval – additional information required.” These projects have been approved in principle, but the Committee has asked staff to provide additional information by a future report, prior to any contractual commitments being made for the project. Repair and Replacement Infrastructure Projects The proposed Repair and Replacement (R&R) Capital Budget for 2018 represents a gross cost of $13,406,329 funded mainly from capital reserves including specific R & R reserves. The 2018 R&R program includes repair work to facilities, roads, sidewalks, playgrounds, parks and the replacement of vehicles and equipment. Management has confirmed that they have the resource capacity to deliver the proposed capital program. Attachment #3 provides a summary of the recommended Repair and Replacement Capital program by project, by decision for 2018. The detailed capital project pages can be viewed through the link provided in the Attachments section under Attachment #3. Growth and New Infrastructure Projects The proposed Growth and New Capital Budget for 2018 represents a gross cost of $16,029,611. This capital program includes funding for the construction of new sidewalks, a new skid steer, a new park in 2C and a playground and design for a new Council Meeting Agenda Tuesday, November 14, 2017 Item R1 Page 3 of 12 November 14, 2017 Page 4 of 6 Report No. FS17-048 recreation facility. Attachment #4 provides a summary of the recommended Growth and New Capital program by project, by decision for 2018. The detailed capital project pages can be viewed through the link provided in the Attachments section under Attachment #4. Studies and Other Projects The proposed major Studies and Other Projects Capital Budget presents a gross cost of $605,000. This includes a DC Background Study and Municipal Energy Plan. Attachment #5 provides a summary of the recommended Studies and Other program by project, by decision for 2018. The detailed capital project pages can be viewed through the link provided in the Attachments section under Attachment #5. Advisory Committee Review Not applicable Financial Implications All funding is sourced from existing reserve funds of the Town, and not directly from the tax rate budget or utility rate budgets. The operating budget is a draft at this time for 2018, but it does include a sustainable contribution of funding into a variety of reserve funds in support of the town’s ten year capital investment requirements, and is not tied to any specific capital project. Accordingly, the capital budget as recommended may be approved independently of the operating budget. The draft capital budget materials included proposed funding sources for each capital project. To simplify this report, the recommendations refer to the approval of all funding as recommended by Budget Committee for all applicable projects. Where funding was amended by Budget Committee, the Town’s web site detailed materials will be updated to reflect such decisions immediately following approval of this report. Communications Considerations This report along with all attachments will be posted to the Town’s website on the Budget and Financial Information page. Council Meeting Agenda Tuesday, November 14, 2017 Item R1 Page 4 of 12 November 14, 2017 Page 5 of 6 Report No. FS17-048 Link to Strategic Plan Developing, reviewing and presenting the annual capital investment plan supports several aspects of the Strategic Plan. This report supports the Plan principles of Leadership in Corporate Management, Leveraging Partnerships, and Progressive Corporate Excellence and Continuous Improvement. Alternative(s) to the Recommendation 1. May provide alternative directions with respect to the recommendations arising from Special Budget Committee. Conclusions The 2017 Asset Management Plan provides the framework upon which the town’s repair and replacement budget is built by documenting the rationale and processes upon which all R&R capital project decisions are prepared by staff. The Budget Committee recommends that Council formally receive the updated 2017 Asset Management Plan. The Budget Committee also recommends that council formally receive the Town’s updated 2017 Ten Year Capital Investment Plan. Staff presented to the Budget Committee a capital budget that balanced the repair and replacement of existing assets with new asset requests, all of which are required to maintain the Town’s existing levels of service that taxpayers have come to expect. Budget Committee has reviewed each proposal in detail, and recommends the approval by Council of the final capital budget as presented herein. Attachments Attachment #1 – 2017 Asset Management Plan (link only) Attachment #2 – 2017 Ten Year Capital Investment Plan (link only) Attachment #3 – 2018 Final Repair & Replacement Capital Program Summary Attachment #4 – 2018 Final Growth and New Infrastructure Capital Program Summary Attachment #5 – 2018 Final Studies and Other Capital Program Summary Council Meeting Agenda Tuesday, November 14, 2017 Item R1 Page 5 of 12 Council Meeting Agenda Tuesday, November 14, 2017Item R1 Page 6 of 12 Attachment 3 BUDGET COMMITTEE APPROVED Corporate Services 12002 Accessibility Committee 175,000 13018 Human Resources Information/Payroll System 250,000 14047 Computer & Related Infrastructure 172,278 Corporate Services Sub Total 597,278$ Financial Services 14012 Financial System 100,000 Financial Services Sub Total 100,000$ Fleet 34410 Frt/FL80 (#33)* 210,000 24017 Replacement of By-Law Vehicle (#404)40,000 34191 GMC/Savana (#501)45,000 71107 Skid Steer Loader (#253)60,000 71108 GMC Sierra Crew Cab (#224)65,000 71109 GMC 1 Tonne Dump (#228)60,000 71111 GMC Sierra (#200)45,000 71113 Cold Planer Attachment 45,000 Fleet Sub Total 570,000$ Parks, Recreation & Cultural Services 73134 Parks/ Trails Signage Strategy Study & Implementation 96,350 73154 Playground Surface Restoration 10,900 73160 Emerald Ash Borer Management Program 235,000 73198 Field Renovation - Norm Weller Park 350,000 73211 Playground Replacement - Hamilton Park 100,000 73216 Playground Replacement - Copland Park 200,000 73291 Traffic Circle Improvements in 2B 25,000 74007 AFLC Fitness Equipment Replacement 50,000 Parks & Recreation Sub Total 1,067,250$ Facilities 72171 AFLC - Dasher Board System 300,000 72180 SARC - Signs 50,000 72201 Workstation Refresh, Carpet, Paint 150,000 72204 Cameras - HDIP 400,000 72281 AFLC - Skate Park 75,000 72282 SARC - Compressor Repair and Computer SW Upgrade 50,000 72283 SARC - Replacement of Pylon sign Message Board 50,000 72296 ACC - North End - Replacement of Radiant Tube Heaters 20,000 72304 48" Ride On Auto Scrubber 60,000 72307 SARC - Pool Pumps 35,000 Facilities Sub Total 1,190,000$ 2018 Repair and Replacement Capital Projects Summarized by Results of Council Discussions Project ID Project New 2018 Requests Council Meeting Agenda Tuesday, November 14, 2017 Item R1 Page 7 of 12 Roads 31109 Recon - Kennedy St W and Temperance St 1,439,082 31113 Full Depth Asphalt - Murray Dr and Pinehurst M & O - Murray Dr, Kennedy St W 2,232,291 31114 Recon - Ransom Crt and Ransom St 617,341 31118 Recon - Browning Crt, Johnson Rd, Holman Cres, Baldwin Rd 180,000 31119 Recon - Adair Dr., Bailey Cres, Davidson Rd 140,000 31126 Full Depth Asphalt- Harriman Rd M & O - Harmon Ave., Orchard Hts. Blvd., Whispering Pine Tr 1,014,110 31134 M & O - Victoria (Wellington - Harrison), Yonge St (Golf Links to Orchard Hts) 1,594,319 31140 M & O - Archerhill Crt., Jarvis Ave., Gilbert Dr., Westview Dr., McClellan Way 641,578 34613 S/W - St John's Sdrd - Gateway - Industrial Pkwy 183,480 Roads Sub Total 8,042,201$ Rates 41011 Sanitary Sewer CCTV Inspection 150,000 43038 Water Meter Replacement Program 600,000 42054 Maintenance of Culverts on Yonge St and Batson Dr 520,000 42067 Storm Outfall Erosion at Mill St 50,000 42068 Bridge Assessment 25,000 42072 Vandorf Sideroad Culvert and Ditch Repair 130,000 Rate Sub Total 1,475,000$ TOTAL PROJECT FUNDING APPROVED AS PRESENTED 13,041,729$ CONDITIONAL APPROVAL - ADDITIONAL INFORMATION REQUIRED CAO 12037 Town of Aurora Website 70,000 CAO Sub Total 70,000$ Corporate Services 14070 Boardroom Audio/Video Equipment 130,000 Corporate Services Sub Total 130,000$ Parks, Recreation & Cultural Services 73302 22 Church St - Landscaping 30,000 Parks, Recreation & Cultural Services Sub Total 30,000$ Facilities 72164 SARC - Rubber Flooring 134,600 Facilities Sub Total 134,600$ 364,600$ 13,406,329$ *Pre-approved TOTAL 2018 REPAIR & REPLACEMENT CAPITAL BUDGET CONDITIONAL APPROVAL - MORE INFORMATION REQUIRED Council Meeting Agenda Tuesday, November 14, 2017 Item R1 Page 8 of 12 Attachment 4 Summarized by Results of Council Discussions BUDGET COMMITTEE APPROVED Corporate Services 14037 Joint Ops LAN Room & DR site 60,000 14068 Wireless Upgrades and Enhancements 55,000 14069 Emergency Cooling 25,000 140,000$ Fleet 34168 New 6 Tonne Dump Truck with Plow*250,000 34187 3 Tonne Truck 90,000 34412 Additional Plow 250,000 71090 Mini Excavator 40,000 71091 Skid Steer 100,000 71106 New 1/2 Tonne Pick Up Truck 40,000 71114 Hydro Seed Mulcher 45,000 815,000$ Parks, Recreation & Cultural Services 73085 Arboretum Development 96,000 73169 Wildlife Park - Phase 1/2/3 1,000,000 73174 Trail - Atkinson Park 85,000 73247 Trail Construction (Coutts/Pandolfo Development)100,000 73251 GPS Tracking System 15,000 73286 Stewart Burnett Park Playground and Parking Facility 1,100,000 73290 Tree Inventory for 2C 10,000 73292 Picnic Tables/Garbage Receptacles 15,000 73299 Non - Programmed Park in 2C 1,500,000 74013 Museum Collcation Infrastructure 15,000 74016 Cultural Precinct Plan 1,000,000 4,936,000$ Facilities 72113 New Recreation Facility 2,400,000 2,400,000$ Project ID Project New 2018 Requests 2018 Growth and New Capital Projects Corporate Services Sub Total Facilities Sub Total Fleet Sub Total Parks, Recreation & Cultural Services Sub Total Council Meeting Agenda Tuesday, November 14, 2017 Item R1 Page 9 of 12 Infrastructure and Environmental Services 34619 S/W - Kitimat Cres 100,000 34629 S/W - Mary St - Industrial Pkwy S to Wellington 115,461 34630 S/W - Yonge St - Batson Dr - N Town Limit 95,000 34637 S/W - Leslie St - 600m N of Wellington - N Town Limit 100,000 Infrastructure and Environmental Sub Total 410,461$ Planning and Building Services 24014 Digital Plan Review and E-Permit Applications 120,000 Planning and Building Services Sub Total 120,000$ 8,821,461$ CONDITIONAL APPROVAL - ADDITIONAL INFORMATION REQUIRED Corporate Servces 12016 Customer Care Centre Implementation 200,000 24016 Animal Control Start Up 100,000 300,000$ Parks, Recreation & Cultural Services 73287 Hallmark Lands - Baseball Diamonds 3,000,000 74015 Cultural Services Master Plan 100,000 74017 Aurora Sports Hall of Fame 26,500 3,126,500$ Facilities 72285 JOC - Additional Work 1,750,000 72114 New Library 665,000 72310 22 Church St - Exterior Sign 50,000 2,465,000$ Infrastructure and Environmental Services 34518 Pedestrian Crossings as per 2014 DC Study 144,100 34519 Traffic Calming as per 2014 DC Study 122,550 Infrastructure and Environmental Sub Total 266,650$ Planning and Building Services 81016 Aurora Promenade Streetscape Design & Implementation 1,050,000 Planning and Building Services Sub Total 1,050,000$ 16,029,611$ Parks, Recreation & Cultural Services Sub Total Facilities Sub Total TOTAL PROJECT FUNDING APPROVED AS PRESENTED Corporate Services Sub Total TOTAL 2017 GROWTH & NEW CAPITAL BUDGET Council Meeting Agenda Tuesday, November 14, 2017 Item R1 Page 10 of 12 NOT APPROVED Infrastructure and Environmental Services 34525 Yonge St Parking Plan 200,000 200,000$ Planning and Building Services 81015 Community Improvement Plan 200,000 Planning and Building Services Sub Total 200,000$ 400,000$ *Pre-approved Parks, Recreation & Cultural Services Sub Total NOT APPROVED Council Meeting Agenda Tuesday, November 14, 2017 Item R1 Page 11 of 12 Attachment 5 BUDGET COMMITTEE APPROVED Corporate Services 13011 Emergency Response Plan Update & Continuation of Operations Plan 20,000 13014 Employee Engagement Survey 80,000 Corporate Services Sub Total 100,000 Financial Services 14061 DC Background Study - 2019 125,000 Financial Services Sub Total 125,000 Infrastructure & Environmental Services 31052 Salt Management Plan 100,000 34529 Master Transportation Study Update - 2018 100,000 42809 Municipal Energy Plan 180,000 IES Sub Total 380,000 605,000$ 2018 Studies and Other Capital Projects Project ID Project New 2018 Requests Summarized by Results of Council Discussions TOTAL 2018 STUDIES & OTHER CAPITAL BUDGET Council Meeting Agenda Tuesday, November 14, 2017 Item R1 Page 12 of 12