KEY CONSIDERATION #2:

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1 KEY CONSIDERATION #2: STRATEGIC INVESTMENTS The second key consideration is targeted strategic investments that contribute to the strategies contained in Council s Strategic Plan. A total of 23 business cases with total gross expenditure investment of $53.1 million over the period ($13.3 million average) are included in the requested budget that require Council decision making. Strategic Investments to be considered by Council are listed in the table below including a reference to the Strategic Area of Focus as defined in Council s Strategic Priorities. A brief synopsis of each business case follows the table. Complete business cases with detailed information about the investments, initiative deliverables, required resources, timing, and risks are included in Appendix F (page 253). ($000 s) STRATEGIC AREA OF FOCUS INVESTMENT REQUESTED # INITIATIVE Building a Sustainable City 1 Library s Ten Year Capital Plan $1,900 $3,600 2 Road Map 2.0 Road to Increased Resource Recovery and Zero Waste 400 1,200 3 Urban Forest Strategy 3,455 11,310 4 Thames Valley Corridor Plan 1,200 2,400 5 Road Safety Strategy Rapid Transit Implementation Strategy (1) 7 State of Infrastructure Report 6,000 39,000 Leading in Public Service 8 Garbage Collection On board Weighing and Tracking Technologies $150 $0 9 Technology Amanda 1,000 1, Establish Public Engagement as an Area of Focus Service London Implementation Plan 5,863 9, Computerized Maintenance Management System 2,100 3,900 Strengthening our Community 13 London Strengthening Neighbourhoods Strategy (LSNS) $750 $2, Ontario Works Service Plan Low Income Supports Enhancement 1,280 2, Mental Health and Addictions Strategy 200 $ London Homeless Prevention and Housing Plan London Homeless Prevention System Implementation Plan 3,800 7, Winter Maintenance Strategy 1,750 3,000 Growing Our Economy 18 London Community Foundation s Back to the River Project $5,350 $7, Streamline Approval Process in Development Services London s Downtown Plan Small Scale Projects 100 3, Regenerating Public Housing Plan 750 5, Dundas Place 15,614 2, City of London Internship Program TOTAL $53,114 $107,343 (1) Funding for the Rapid Transit initiative is included in the base Growth Capital Budget ($268 million in and $87 million in for a total of $355 million). The business case is included because Rapid Transit is a major strategic investment that must be considered with the other cases listed above. Page 48

2 STRATEGIC INVESTMENTS BY SOURCE OF FINANCING STRATEGIC AREA OF FOCUS TOTAL ($000) # INITIATIVE LEVY DEBT OTHER Building a Sustainable City 1 Library s Ten Year Capital Plan $1,900 2 Road Map 2.0 Road to Increased Resource Recovery and Zero 400 Waste 3 Urban Forest Strategy 3,455 4 Thames Valley Corridor Plan 1,200 (1) 5 Road Safety Strategy Rapid Transit Implementation Strategy 7 State of Infrastructure Report 6,000 Leading in Public Service 8 Garbage Collection On board Weighing and Tracking Technologies $150 9 Technology Amanda 1, Establish Public Engagement as an Area of Focus Service London Implementation Plan 2,527 2,736 (1) 600 (2) 12 Computerized Maintenance Management System 2,100 Strengthening our Community 13 London Strengthening Neighbourhoods Strategy (LSNS) Ontario Works Service Plan Low Income Supports Enhancement 100 1,180 (3) 15 Mental Health and Addictions Strategy 200 (3) London Homeless Prevention and Housing Plan ,600 1,200 (1) 2. London Homeless Prevention System Implementation Plan 17 Winter Maintenance Strategy 1,750 Growing Our Economy 18 London Community Foundation s Back to the River Project $5,350 (4) 19 Streamline Approval Process in Development Services London s Downtown Plan Small Scale Projects Regenerating Public Housing Plan Dundas Place ,000 (1) 23 City of London Internship Program 360 TOTAL BY SOURCE OF FINANCE $25,648 $20,136 $7,330 GRAND TOTAL $53,114 (1) Debt servicing costs are included in the net requested tax levy for each business case. (2) Funding from Efficiency, Effectiveness & Economy Reserve (3) Funding from Social Service Reserve Fund and Provincial subsidy (4) Funding from London Hydro Dividend Page 49

3 SUMMARY OF STRATEGIC INVESTMENTS (000 S) Strategic Investment # 1 Library s Ten Year Capital Plan $1,900 Total Net Budget $1,900 The need for an increase to the Library s capital projects was identified for 2016 as part of the 2015 budget development process. Funding is required to sustain the current infrastructure and avoid future costly repairs, upgrade meeting room spaces to meet public needs as well as increase rental revenue and to incorporate additional accessibility features. In 2015 a Technical Standards and Safety Authority audit identified a need to replace the 25 year old Central Library emergency generator. In order to accommodate the cost of the generator within the 2015 envelope, capital budget requests were shifted from the Integrated Library System project to the Library Branch Facilities Upgrade project for three years ( ). In addition, through the tendering process it was discovered that the cost of two roof projects will be more than double the budgeted amount. This adds an unanticipated $418 thousand to the budget. Priorities were shuffled and projects deferred to accommodate the additional costs and lighting upgrades to LED were eliminated from the project list. Strategic Investment # 2 Road Map 2.0 Road to Increased Resource Recovery and Zero Waste $400 Total Net Budget $400 Residents expect the City to make continuous progress on increasing waste diversion and move closer to the Provincial goal of 60% waste diversion. Implementing new initiatives or expanding existing initiatives identified in the Road Map 2.0 is expected to result in 2% additional waste diversion (by weight) over the planning horizon. Depending on the initiatives ultimately selected, actual volume associated with the waste diversion may be in the range of 5% if the target materials and actions focus on lighter, bulky items. New Provincial legislation is anticipated in and this legislation will influence how and what initiatives from Road Map 2.0 are implemented. Strategic Investment # 3 Urban Forest Strategy $3,455 Total Net Budget $3,455 This initiative has two parts. The first, A, is maintaining existing trees as they pertain to the tree canopy cover targets in the approved Urban Forest Strategy. Existing trees are important because they will provide the majority of tree canopy cover in the short term until newly planted trees get large enough to provide significant cover which is years from the time they are planted. Both the Urban Forest Strategy and Corporate Asset Page 50

4 Management Plan have identified that the current level of maintenance of existing trees and newly planted trees does not meet the current best management practices and cannot sustain the long term health and structure of street, park and woodland trees. Funding will permit the overall management of trees on a proactive rather than reactive basis. This will prolong the life and health of trees, reduce the City s liability and result in lower individual tree life cycle costs in the long term. The second, B, has to do with increased planting and monitoring to achieve tree canopy targets. The Council approved Urban Forest Strategy includes increasing the tree canopy cover targets from an estimated current level of 23% to 28% by 2035 and 34% by This is a long term increase of 48% in tree canopy cover from current levels. Note that a 1% increase represents the equivalent of 42 fully treed Victoria Parks. Current tree planting funding will not achieve these targets, nor will the amounts being requested through this multi year budget; however, with the requested funding, the number of trees planted annually will ramp up over the 4 year period under this new program. Strategic Investment # 4 Thames Valley Corridor Plan $1,200 Total Net Budget $314 London s Thames Valley Pathway (TVP) currently has two major gaps that require additional funding beyond the base budget to complete. There is previously approved funding of $1.7m available to support this project. This business case addresses one gap which is located between Richmond and Adelaide streets on the North Branch. Filling this gap would open access to the pathway system to a large area within the Northeast portion of the city. Strategic Investment # 5 Road Safety Strategy $500 Total Net Budget $500 In 2014, Council approved the London Road Safety Strategy (LRSS) which was led by the City of London in collaboration with the Middlesex London Health Unit, London Police, Middlesex County and other partners. The LRSS is a five year plan to achieve a 10% reduction of injury and fatal collisions. Based on a comprehensive review of the 4 year traffic collision history and with the findings of several forms of public input collected by the City, six target areas were identified: Intersections; Distracted and Aggressive Driving; Young Drivers; Pedestrians; Cyclists; and Red Light Running. The City and its partners signed a Program Charter in support of the London Road Safety Strategy and committed to be an active member to the London Middlesex Road Safety Committee to participate in accomplishing the LRSS Vision, Mission, Goal and Action Plan. The identified program will implement City led initiatives to improve road safety such as intersection geometric modifications, traffic signal adjustments, signage improvements, pedestrian facility upgrades and pavement markings. Page 51

5 Strategic Investment # 6 Rapid Transit Implementation Strategy $0 Total Net Budget $0 The downtown continues to be an important part of London. The city is structured along key corridors radiating out from the downtown Wellington Street to the South, Richmond Street to the North, Oxford Street to the West and Dundas/Oxford Street to the East. Over the next 20 years, London is projected to grow by 77,000 people and 43,000 jobs. By focusing this growth on Rapid Transit corridors, London can capitalize on its established transit supportive urban form, becoming a more attractive city in Ontario for regeneration and sustainable cost effective growth. Several options are being considered for Rapid Transit and they vary quite drastically in cost. Once an option is chosen then the cost for this initiative can be determined, noting that the City s contribution is capped at $125M and that amount is included in the base budget. Additional funding is based on the assumption that both the Provincial and Federal levels of government will fund the additional amount required over and above what is in the existing plan. Strategic Investment # 7 State of Infrastructure Report $6,000 Total Net Budget $6,000 As set out in the 2013 State of Infrastructure Report, increased investment is required over and above planned budgetary levels in order to mitigate and manage the growth in the infrastructure gap. Additional funding for this initiative would be allocated based on the analysis undertaken in 2013 where Transportation accounted for approximately 67% of the gap, Corporate Facilities accounted for 19% and Parks accounted for 10%. It should be highlighted that an increase in funding is just one of many initiatives that the City is utilizing in order to improve its management of its infrastructure. Strategic Investment # 8 Strategic Area of Focus Leading in Public Service Garbage Collection On board Weighing and Tracking Technologies $150 Total Net Budget $150 On board weighing technologies and radio frequency identification (RFID) tags are complementary systems that provide increased opportunities for route optimization, asset utilization and customer service. Fleet telematics (Fleetmatics) systems provide a wide variety of critical information that can be used to help manage all collection operations. Fleetmatics track each garbage packer in real time identifying start time, shut down, idling status, location and speed. Through analysis and controls this information can be used to increase productivity, optimize use of labour, control fuel costs, mitigate risks and improve customer service. Page 52

6 Strategic Investment # 9 Strategic Area of Focus Leading in Public Service Technology AMANDA $1,000 Total Net Budget $1,000 The AMANDA system was first implemented in 1999 to be used for development tracking and processing of planning applications, plans of subdivision and condominium approvals, building permits, by law enforcement, site plan approvals, residential rental unit licensing, minor variance applications, consents, zoning information and call center operations and database. Over time, the use of AMANDA has expanded into most service areas in the corporation making it a corporate platform. To establish AMANDA as a viable, stable platform, to sustain it over time and to leverage it fully, the City needed to invest in bringing the system to the current supported standards as well as implement future upgrades that will be required every three years. In addition AMANDA partnerships need to be upgraded. Identifying AMANDA as a strategic priority is three fold: 1. A project manager is needed to ensure the successful coordination of the AMANDA program between all service areas. 2. Ongoing enhancements are needed to be functional and improve operations. 3. Routine upgrades every three years are warranted. Strategic Investment # 10 Strategic Area of Focus Leading in Public Service Establish Public Engagement as an Area of Focus $340 Total Net Budget $340 In response to multiple Council requests, Planning Staff presented a report to the Planning and Environment Committee in March, 2015 which outlined a number of significant improvements that could be made to public engagement practices within the planning process. Some changes have already begun. However, several of the changes presented in the report require additional resources for such things as improved notification signage for planning application, current information for each planning application posted and available on the City s website, proactive notification of new information and upcoming meetings relating to specific files for those that request such information, making new mediums of information available for obtaining planning related information, and holding community level meetings at accessible locations with child minding resources available when required. Council s Strategic Plan identifies five initiatives three of which can be achieved by implementing the actions outlined in the business case. Those three initiatives include: Make community engagement a priority. Make the public a partner who has access to our information and helps make decisions with Council; Implement Plain Language writing in all City documents, reports, agendas, websites, signs and notifications; and Improve the City of London website so people can find what they want, when they want it, and how they want it. Page 53

7 Strategic Investment # 11 Strategic Area of Focus Leading in Public Service Service London Implementation Plan $5,863 Total Net Budget $3,125 Service London is about Delivering value through integrated customer centered service. This means that we want to deliver services that are important to citizens in a way that is focused on their needs ( citizen centered ). We are committed to providing customer service and experiences that are: Simple, Seamless, Personalized and Accountable. In order to achieve these outcomes, we need to continue our efforts to transform the way we deliver customer services. This means focusing on the needs of customers and modernizing our three main service channels: online, telephone, in person. Operating funding will be required to: Establish a permanent Service London Office Support operating costs of the Customer Relationship Management (CRM) software system Support streamlining of corporate phone system Capital funding will continue to be focused on improving customer service channels: online, telephone, in person. Additional funding will allow improvements to: CRM hardware and software Build integration between CRM and other key enterprise systems Develop and launch online self service portal Renovate the lobby (Election Office) for improved customer experience Implement the Service London Counter Strategy Strategic Investment # 12 Strategic Area of Focus Leading in Public Service Computerized Maintenance Management System $2,100 Total Net Budget $2,100 The proposed Computerized Maintenance Management System (CMMS) initiative will become the nucleus of the City s day to day operations, enabling staff to deliver a strategic, timely, effective, efficient and economical service to its valued customers. Further, a CMMS will have the capability of providing critical information to support the Corporate Asset Management program. The adoption of this technology will bring the City of London up to par with most of the City s surrounding municipalities in the application of this technology. Long term benefits include but are not limited to: Decreases in capital asset replacement (properly maintained assets have a greater life cycle) Improved asset reliability (assets that are properly maintained work when needed and require less emergency repairs) Total cost of asset ownership reduced (preventative maintenance is less expensive over the long term versus an approach to do nothing and deal with emergency repairs) Optimizing the use of operating and maintenance staff (slower growth in staff complement) Page 54

8 Strategic Investment # 13 Strategic Area of Focus Strengthening our Community London Strengthening Neighbourhoods Strategy (LSNS) $750 Total Net Budget $750 In 2010, Council endorsed the London Strengthening Neighbourhoods Strategy (LSNS) and Five Year Implementation Plan. In the 2012 budget, $100,000 was allocated to support resident led strategies identified in the LSNS Plan. Through these strategies several programs and tools were developed that strive to provide measurable, sustainable outcomes in neighbourhoods, build capacity, and strengthen London s neighbourhoods. LSNS is fundamentally a resident driven strategy that invited and encouraged resident participation and engagement to help make all of London s neighborhoods stronger. Additional funding is required to support the next phase of the LSNS in order to support neighbourhood decision making by growing the SPARKS! Program, which allocates funds to each neighbourhood enabling neighbourhood driven projects that residents create and implement as one neighbourhood. Additional funding will also support the new resident driven initiatives that come out of the next phase of the LSNS as well as one full time employee in A temporary position has been added from Strategic Investment # 14 Strategic Area of Focus Strengthening our Community Ontario Works Service Plan Low Income Supports Enhancement $1,280 Total Net Budget $100 The Bridges out of Poverty/Circles initiative has operated in London since 2011 to expand the understanding of poverty and the issues facing those who experience it. There has been a 48% increase in the number of individuals/families receiving assistance since 2007, the number of households receiving benefits for one year or longer has grown to 63% and the average time on assistance has gone from 21.7 months in 2009 to 31.2 months in Funding to continue the implementation of this program is being requested to support costs for the delivery of the 15 week Getting Ahead program and the Circles model. Funding will cover: One Employment Support Specialist for the Ontario Works Employment team to continue to facilitate Circles and support the Ontario Works clients who are participating in these services. Contract funding to Goodwill, the lead community partner, for the Circles Coordinator and Circles Coach, and also to fund some client specific supports that are not covered through Ontario Works funding. Strategic Investment # 15 Strategic Area of Focus Strengthening our Community Mental Health and Addictions Strategy $200 Total Net Budget $0 A community mental health and addiction strategy has been identified in the City of London Strategic Plan as one important approach to assist in the elimination of barriers for individuals facing poverty, mental health and addiction. Mental health and addictions are health issues and as such, the Province is the lead. Current needs Page 55

9 exceed services and funding available and projections suggest service needs will continue to increase significantly over the next seven years. The Province has recently developed a comprehensive approach to transforming the mental health system. Coordination is needed between health and community based sectors such as employment, homelessness, education and justice in order to fully support individuals and maximize positive community outcomes. The Provincial strategy is designed to address coordination and reduce fragmentation. Building on the Provincial approach and cognizant of the lead roles played by various mental health and addiction service providers in the community, Civic Administration will initiate engagement with key stakeholders to explore the development of a coordinated community mental health and addictions strategy. Funding will be used during 2016 to facilitate cross sector community engagement to support the development of an integrated and coordinated local strategy that combines the strengths of the transformed mental health and addictions system with the needs of the community. Once developed, City staff will support the community agencies to determine what elements of the strategy can be implemented within the funding/resources available and what additional resourced/request are needed. Strategic Investment # 16 Strategic Area of Focus Strengthening our Community 1. London Homeless Prevention and Housing Plan London Homeless Prevention System Implementation Plan $3,800 Total Net Budget $2,892 Operating funding is required for housing supplement programs available to households moving from homelessness into housing. Starting in 2016, housing supplements will be provided to a minimum 150 households at an annual cost of $200 thousand for the first year, $400 thousand for the second year and the full cost of $500 thousand for each subsequent year with the aim of providing supplements to a minimum of 300 households per year. A significant challenge is the affordability of units for low income Londoners. Housing supplements provide an immediate and effective way to support attaining housing in neighbourhoods where families and individuals choose where they believe they can be most successful in achieving stability. Street involved youth and youth experiencing homelessness in London require youth specific, trauma informed immediate services to address the existing gap in services. To respond to the growing trend of youth, the goal is to design and open a youth focused Housing First Emergency Shelter aimed at rapid housing, reconnection to family and lasting support services. Both capital and annual operating costs are required. Strategic Investment # 17 Strategic Area of Focus Strengthening our Community Winter Maintenance Strategy $1,750 Total Net Budget $1,750 On September 14, 2015 a placeholder with a cumulative budget impact of $1.75 million was included as an estimated cost of the Winter Maintenance Strategy. On November 3, 2015, Civic Works Committee received a report on various options to enhance the existing winter maintenance program. There were several options presented at the Page 56

10 time for winter maintenance of sidewalks and paths with associated costs projected. During budget deliberations, specific enhancements are required to be identified. Strategic Investment # 18 Strategic Area of Focus Growing Our Economy London Community Foundation s Back to the River Project $5,350 Total Net Budget $0 The goal of this project is an active, accessible and attractive riverfront to give Londoners a place to work, play and call home; a place that draws the community together. Similar projects have been proven to spur private investment in residential and business development. In Pittsburgh, PA, every $1 invested in riverfront improvement has generated $32 in private investments along the riverfront. In 2015, the London Community Foundation (LCF), the Upper Thames River Conservation Authority (UTRCA) and the City of London partnered to lead an international design competition in an effort to revitalize a five kilometer stretch of the Thames River radiating from the Forks in three directions. Implementation of Phase 1 the inaugural project will see significant improvements to areas around the Forks that may include features such as extensive public gathering spaces, docks, enhanced events space, boardwalks and ecological enhancements. The funding requested through this business case will be utilized to construct the Phase 1 improvements as per the detailed design by Civitas & Stantec Consulting Ltd. Proceeding with Phase 1 implementation supports recommendations made in the Thames Valley Corridor Plan, Downtown Master Plan, Parks & Recreation Strategic Master Document and ReThink London. Strategic Investment # 19 Strategic Area of Focus Growing Our Economy Streamline Approval Process in Development Services $252 Total Net Budget $252 This investment will be for an additional position whose primary responsibility will be enhancing the relationship between Development & Compliance Services Staff and the public by providing a web based customer communication channel focusing on easily accessible electronic information with respect to planning applications and development applications as well as serve other areas within Development & Compliance that require web assistance. Strategic Investment # 20 Strategic Area of Focus Growing Our Economy London s Downtown Plan Small Scale Projects $100 Total Net Budget $100 In April, 2015, Council adopted Our Move Forward: London s Downtown Plan, as Municipal s Council s strategy for future public and private investment in London s Downtown. With the launch of Our Move Forward, a base roster of 18 small and medium scale projects was drafted to implement the 6 Strategic Directions in the Plan. They respond Page 57

11 to current and foreseeable needs and opportunities, spanning a period of two 4 year budget cycles so that options can be weighed with flexibility to advance or postpone projects and their timelines. Although the Plan anticipated an expenditure of $500K per year, an investment of $100K is being recommended due to resource constraints and the significant investment represented by the business case for Dundas Place. Strategic Investment # 21 Strategic Area of Focus Growing Our Economy Regenerating Public Housing Plan $750 Total Net Budget $750 The 2018 funding request will be utilized to develop a detailed strategic plan that will define the process for regeneration/re development of London & Middlesex Housing Corporation (LMHC) properties, inclusive of funding and partnership strategies, tenant impact and engagement strategies. The initial focus of regeneration activities will be on the re development of aging townhouse complexes. The 2019 funding request will provide for necessary assessments, land valuations and other costs to initiate the regeneration process and will be the basis for future capital development. Strategic Investment # 22 Strategic Area of Focus Growing Our Economy Dundas Place $15,614 Total Net Budget $1,977 The project aims to turn Dundas Street between Wellington Street and the Thames River into a flexible street serving as a prominent public place in London beyond just a space to move through. Instead it will become a destination to arrive at for shopping, leisure, civic activities and celebrations. In April 2015, Council adopted Our Move Forward: London s Downtown Plan, as Municipal Council s strategy for future public and private investment in London s Downtown. The bi annual State of the Downtown Report has tracked steady progress in the regeneration of London s Downtown using a variety of quantitative and qualitative measures. This is the first of 10 larger scale Transformational Projects presented in Our Move Forward: London s Downtown Plan, which together focus mainly on public space capital investments that complement the public buildings capital investments made in the former Downtown Millennium Plan. Given that the condition and uses along Dundas Street reflect London s face to the world, it is a strategic direction of the Plan to make Dundas Street the most exciting place in London with the ability to sustain quality businesses, increase property values and attract visitors. The initiative includes efforts to animate Dundas Street with a variety of programmed events and activities. For project success, the proposed facility requires a higher level of ongoing operations and maintenance than typical for the current Dundas Street. To achieve this, following its construction, estimated operating allocations of $150 thousand annually will fund extra materials and specialized equipment to effectively and efficiently clean the space, remove snow, transition it from vehicle to non vehicle use, provide shade/shelter, distinguish spaces for certain uses, Page 58

12 etc. There is a potential for the Business Improvement Association to play a role in the ongoing operation of the facility. Strategic Investment # 23 Strategic Area of Focus Growing Our Economy City of London Internship Program $360 Total Net Budget $360 The funding will expand the existing program to provide for the addition of two full time internships for up to 12 months. This will provide an opportunity for the foreign trained professionals, who require longer term placement, to obtain accreditation in their chosen profession. By expanding the existing internship program permanently, the Corporation has the ability to work as an active participant within the community, breaking down barriers to employment for those that are traditionally marginalized in the job market. Page 59