1. REPORTS Chief Administrative Officer

Transcription

1 CITY OF KAMLOOPS Council Budget Meeting Agenda March 15, 2016 at 9:00 am in Council Chambers at 7 Victoria Street West, Kamloops, BC, V2C 1A2 1. REPORTS Chief Administrative Officer Supplemental Budget Items Five-Year Financial Plan Recommendation: That Council provide guidance to staff regarding: a) Which items to include in the final Five-year Financial Plan; and b) The funding source for these items. 2. ADDITIONAL BUDGET ITEMS 2.1 Administration Recommended Additional Budget Items - Operating Summary of Requests Business Cases: Administrative FTE Supporting Various Areas New Park Areas Maintenance Capital Projects - Construction Inspector (Civic Facilities) Ice Rink Demand and Capacity Study Stuart Wood Elementary Revenue Fees and Charges Administration Recommended Additional Budget Items - Capital Summary of Requests Business Cases: 42

2 3 rd Avenue Rail Crossing Enhancements (no business case) Storm Infrastructure Upgrades Related to Climate Change Emergency Generator Public Works Centre JDE Payroll Software Upgrade Riverside Park Maintenance Thermoplastic Road Marking Applicator North Shore Transit Exchange Planter Improvements BMX Park Project Completion Community Requested Additional Budget Items Summary of Requests North Shore Cultural Heritage Tour Plaques Pioneer Park Boat Launch Concept Design Pickleball and Tennis Courts Improvement Project New Rugby Clubhouse at the Tournament Capital Ranch Page 1

3 March 10, 2016 REPORT TO THE CHIEF ADMINISTRATIVE OFFICER FROM THE FINANCE DEPARTMENT ON SUPPLEMENTAL BUDGET ITEMS FIVE-YEAR FINANCIAL PLAN PURPOSE To provide Council with additional financial information and recommended funding options to seek Council's direction on which supplemental items to include in the Five-year Financial Plan and direction on the funding source for these items. SUMMARY Once the supplemental list has been set, the Finance Department will calculate the total tax impact for Council's final budget deliberations in April During this final meeting, Council will have an opportunity to discuss the allocation of the tax increase across the various tax classes. RECOMMENDATION: That Council provide guidance to staff regarding: a) Which items to include in the final Five-year Financial Plan; and b) The funding source for these items. COUNCIL POLICY There is no applicable Council policy. DISCUSSION At the public budget meetings, the Finance Department presented some comparable figures to help Council and the public to understand the current financial environment. The City's property tax rates over the past ten years have averaged 1.96%. This is significantly lower than most comparable municipalities, as presented in the following table. S:\DCS\Jobs (c3)\239842_supplemental Budget Items_REP\239843_Supplemental Budget Items_REP.docx 3

4 SUPPLEMENTAL BUDGET ITEMS March 10, FIVE-YEAR FINANCIAL PLAN Page 2 Average Tax Increases for Selected BC Municipalities 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 4.53% 4.24% 4.06% 3.98% 3.92% 3.85% 3.83% 3.53% 3.46% 3.43% 3.43% 3.39% 3.31% 3.28% 3.25% 3.20% 3.17% 3.11% 2.90% 2.77% 2.71% 2.50% 1.96% 1.94% 1.79% The average tax increase for residential properties in Kamloops from , compared to the Bank of Canada core consumer price index (CPI), is summarized below. Annual Property Tax Increase Bank of Canada Core Avg. CPI % 1.90% % 2.14% % 1.73% % 1.70% % 1.76% % 1.64% % 1.70% % 1.26% % 1.82% % 2.20% Ten-year average 1.96% 1.79% Since Council approved the provisional budget in December 2015, staff have been able to update some of the initial estimates to reflect the additional information. A summary of the changes in the budget from the prior year is attached (Attachment "A"). These changes reflect the costs of maintaining the 2015 service levels. The changes since December include an increase in the estimated property tax revenue from growth, an increase in transit costs, removal of the savings from the Westsyde pool closure (any savings could be used to fund a recreation study), and some adjustments to other revenues and expenses. These changes now reflect a requirement for a 2.07% tax increase to cover operations. S:\DCS\Jobs (c3)\239842_supplemental Budget Items_REP\239843_Supplemental Budget Items_REP.docx 4

5 SUPPLEMENTAL BUDGET ITEMS March 10, FIVE-YEAR FINANCIAL PLAN Page 3 To assist with the discussion around sources of funds for the various projects, staff have provided Council with a summary of the balances in the various reserve funds, the planned debt balances, and the associated debt repayment expenses (Attachment "B"). Most of these funds have some restrictions on the available uses. The balance in each fund represents the balance remaining after staff have applied the recommended funding source from each project. These balances are available for allocation to future projects. If Council chooses not to approve a project, the reserve balances or tax requirements would be adjusted to reflect the availability of these additional funds. Attachment "C" lists all of the operating and capital requests and provides a funding source recommendation. The Finance Department is recommending possible funding sources, not whether or not Council should approve the projects. Staff have included the approximate tax increases associated with funding projects from taxes. This list also includes significant items that the City will be required to fund within the five-year period of the Five-year Financial Plan that were not previously included in a prior plan. Staff have also included the business cases associated with many of the supplemental items, which have not been updated since they were first presented to Council earlier this year. K. Humphrey, CPA, CA Finance Director Approved for Council Consideration: KH/ts/dla/lm Attachments S:\DCS\Jobs (c3)\239842_supplemental Budget Items_REP\239843_Supplemental Budget Items_REP.docx 5

6 Analysis of 2016 Property Tax Increase Requirement A 1% property tax increase will generate: $962,540 Attachment "A" Total Tax Requirement 2015 Property Tax budget 96,254,000 Funded from property taxes Property Tax % Increase Funded from Reserves Reserve Amount Year Explanation Tax Increase (Decrease) CUPE & Management Wages and Benefits 1,029,872 Capital funding increases 802,308 RCMP Contract 438,000 Firefighters Wages and Benefits 423,648 Transit budget changes 417,527 Other expense budget changes ** 241,537 Reduced return on investments 233,930 Increased hydro and natural gas rates 128,095 Eliminate pesticides in parks & advertising 54,996 DNA Analysis Services 54,200 Increased cost of Community Solid Waste services 52,707 Other revenue budget changes *** (340,129) Transfer to/from Utilities (497,827) Total Property Tax Change 3,038, % Anticipated revenue from growth (1,050,000) (1.09%) 2016 Property Tax Increase Required for base budget 1,988, % Page 1 of 1 6

7 Reserve, Surplus, and Long-term Debt Balance Summaries Attachment "B" Amounts available each year after all current commitments and supplementals requests funded Gaming Reserve $ 125,000 $ - $ - $ 250,000 $2,000,000 Community Works Fund $ 287,360 $ - $ - $ 2,275,000 $ 2,300,000 MFA Investment Income Fund (Tax Sale) $ 435,000 $ 25,000 $ - $ - $ - RCMP Reserve $ 4,680,562 With a pending wage adjustment still to be negotiated and a current vacancy rate of 18% we are unable to determine the amount that may be deposited into or drawn from this reserve at this time. An annual review will be required. Parking Infrastructure Reserve (Parkades) $ 250,000 $ 40,000 $ 50,000 $ 30,000 $ 50,000 Downtown Parking Solutions Reserve (Meters) $ 30,000 $ 175,000 $ 225,000 $ 200,000 $ 250,000 General Fund Surplus $ 8,293,595 $ 247,037 $ 447,486 $ 139,577 $ 1,036,839 Long-term Debt Balance General Fund balance on December 31 $70,468,663 $65,374,642 $64,256,254 $59,130,730 $53,809,643 Water Fund balance on December 31 18,077,031 15,418,875 12,945,395 14,199,206 11,873,466 Sewer Fund balance on December 31 25,463,331 23,207,648 20,992,090 18,950,219 16,867,753 Total debt balance on December 31 $114,009,025 $104,001,165 $98,193,739 $92,280,155 $82,550,862 Debt principle and interest costs General Fund $5,515,515 $7,586,190 $7,514,962 $7,481,693 $7,468,988 Water Fund 3,143,558 3,221,596 3,096,122 2,633,647 2,880,059 Sewer Fund 2,605,381 2,847,559 2,760,578 2,574,972 2,537,505 Total debt and interest costs $11,264,454 $13,655,345 $13,371,662 $12,690,312 $12,886,552 Page 1 of 1 7

8 Analysis of 2016 Property Tax Increase Requirement A 1% property tax increase will generate: $962,540 Attachment "C" Funded from property taxes Total Tax Requirement Property Tax % Increase Funded from Reserves Reserve Amount Year 2016 Property Tax Increase Required for base budget 1,988, % Additional Operating budget requests Revenue Fees and Charges Admin. Recommend. (43,300) (0.04%) 2016 Administrative FTE - supporting various areas Admin. Recommend. 60, % 2016 New Park Areas Maintenance Admin. Recommend. 104, % 2016 Capital Projects Construction Inspector truck Admin. Recommend. 50, % 2016 Stuart Wood Elementary Admin. Recommend. 37, % Property Tax Increase Required for base budget and additional operating requests 2,197, % Page 1 of 3 8

9 Analysis of 2016 Property Tax Increase Requirement A 1% property tax increase will generate: $962,540 Additional Capital Requests Funded from property taxes Total Tax Requirement Property Tax % Increase Funded from Reserves Reserve Amount Year 1 Hillside Stadium indoor track Admin. Recommend. Gaming 1,500, Gaming 2,000, Hillside Stadium outdoor track Admin. Recommend. 3 Community Works 500, Sandman Centre roof replacement Admin. Recommend. Gaming 1,500, Tranquille Road and Airport/Gateway Corridor CLASS recreation booking system replacement Admin. Recommend. Community Works 2,500, & 2018 Admin. Recommend. Tax Sale 400, rd Avenue Rail Crossing Enhancements Admin. Recommend. Gaming 20, Storm Infrastructure Upgrades Related to Climate Change - FTE (staffing) Storm Infrastructure Upgrades Related to Climate Change (option A in business case) Storm Infrastructure Upgrades Related to Climate Change Storm Infrastructure Upgrades Related to Climate Change Storm Infrastructure Upgrades Related to Climate Change Admin. Recommend. 50, % 2016 Admin. Recommend. RCMP Reserve 980, Admin. Recommend. 325, % Tax Sale 745, Admin. Recommend. 325, % Tax Sale 395, Admin. Recommend. 325, % Emergency Generator Public Works Centre Admin. Recommend. Tax Sale 350, JDE Payroll Software Upgrade Admin. Recommend. Transfer from Asset Mgt project 185, Page 2 of 3 9

10 Analysis of 2016 Property Tax Increase Requirement A 1% property tax increase will generate: $962,540 Funded from property taxes Total Tax Requirement Property Tax % Increase Funded from Reserves Reserve Amount Year 11 Riverside Park Maintenance Admin. Recommend. 50, % Thermoplastic Road Marking Applicator Admin. Recommend. Gaming 20, North Shore Transit Exchange Planter Improvements Admin. Recommend. Gaming 18, BMX Park Project Completion Admin. Recommend. Gaming 65, North Shore Cultural Heritage Tour Plaques Community Request Gaming 2, Pioneer Park Boat Launch Concept Design Community Request Gaming 50, Pickleball and Tennis Courts Improvement Project - phase 1 Pickleball and Tennis Courts Improvement Project - phase New Rugby Clubhouse at the Tournament Capital Ranch - Phase 1 New Rugby Clubhouse at the Tournament Capital Ranch - Phase Community Request Gaming 225, Community Request Gaming 250, Community Request Gaming 50, Community Request 690, % 2017 Page 3 of 3 10

11 Administration Recommended Additional Budget Items - OPERATING Line # Item OPERATING EXPENSES Administrative FTE - supporting various areas New Park Areas Maintenance Capital Projects Construction Inspector Business Case Business Case Business Case Business Case Operating Budget Impact FTE Amount Capital Budget Impact Admin Priority ,000 20, , ,000 3 Notes The operating impact will include a further $40,000 increase in 2017 to reflect full 1.0 FTE The utilities will fund the additional $40,840 identified in the business case. The $50,000 requests is to purchase a vehicle. The operating costs are included in each capital projects 4 Ice Rink Demand and Capacity Study Business Case 50, Stuart Wood Elementary OPERATING REVENUE Business Case ,600 5 The operating impact will include a further $2,400 increase in Revenue Fees and Charges Business Case (43,300) N/A 11

12 ADMINISTRATIVE FTE SUPPORTING VARIOUS AREAS Prepared by: Kathy Humphrey Finance Director 12

13 ADMINISTRATIVE FTE SUPPORTING VARIOUS AREAS January 14, 2016 INDEX EXECUTIVE SUMMARY... 1 TERMS OF REFERENCE... 1 Background... 1 General Goals and Specific Objectives... 1 Strategic Implications... 2 Stakeholders... 2 Boundaries... 2 Alternatives Considered... 2 Operating Costs... 2 Capital Costs... 3 Implementation Costs (if applicable)... 3 CONCLUSION... 3 RECOMMENDATION... 3 S:\DCS\Admin FTE Finance_BUS.docx 13

14 ADMINISTRATIVE FTE SUPPORTING THE FINANCE DEPARTMENT January 14, 2016 Page 1 EXECUTIVE SUMMARY There has been a significant increase in requirements to provide information to various external and internal sources. This includes information requested through Freedom of Information and Protection of Privacy Act (FOI) requests, documentation to support claims, and distribution of information to assist internal decision making. We require additional non-union administrative support to respond to the increase in the number of FOI requests that are handled by the City. To complement this work, we have identified a significant amount of administrative work that is not currently being done or is being completed "off the side" of various people's desks. By combining these administrative tasks into the workload of an additional staff member, capacity will be increased in various areas, which would allow us to meet our reporting obligations. The incumbent would report directly to the Finance Director, but would provide support for many areas. TERMS OF REFERENCE Background Over the past few years, there has been an increase in the requirement to track, report, and provide information to various agencies, the public, and others. This requirement includes FOI requests, information for legal counsel with regard to claims, tracking drivers to comply with National Commercial Vehicle Safety Code, and other internal requests. Currently, all of these tasks are either added to the workloads of existing CUPE and exempt staff or are not being completed to the level they should be. These administrative duties do not require specialized knowledge in most cases; however, they are critical to ensure that the City complies with its obligations under various acts and codes. To create efficiencies, we propose consolidating many similar functions into one role. In addition to providing an increase in the ability to support FOI requests, having an additional administrative support staff member will help alleviate some of the identified inefficiencies and pressure points within the Finance and Human Resources (HR) Departments. General Goals and Specific Objectives Priority General Goal Specific Objective 1 Increase capacity to respond to FOI requests To ensure that the City has adequate staffing to meet the 30-day timeline as required under the Act. 2 Increase the Advisor capacity in HR Move some of the duties related to compliance with driver abstracts, which are currently performed by HR to this new position to free up some resources in HR. 3 Streamline insurance and risk management The increase in paperwork associated with claims can be absorbed by a reassignment of administrative duties within the Risk Management Division so that its team's expertise can be applied to insurance and claim work. S:\DCS\Admin FTE Finance_BUS.docx 14

15 ADMINISTRATIVE FTE SUPPORTING THE FINANCE DEPARTMENT January 14, 2016 Page 2 4 Improve efficiencies and streamline costs The alignment of administrative duties primarily into one role will increase capacity within asset management, procurement, budgeting, and other areas. Strategic Implications Strategic Plan - Fiscal Responsibility Stakeholders n/a Boundaries 1. Work allocated to the new position will be mostly from existing staff's workloads to free up their capacity and to respond to increasing volumes of work. 2. There is space for this position on the third floor of City Hall; however, some minor renovations will be required. Alternatives Considered a) Alternatives that did not come close to meeting the business case's driving general goals/specific objectives: i) Preparing business cases for increases in resources in the various departments that experiencing capacity issues. This alternative was not considered as the other departments do not require a full FTE at this point and hiring a part-time FTE is difficult. b) Alternatives that were eliminated after more research: i) Reallocating work within existing staff. This was eliminated because there are no staff with excess capacity to take on this work. Operating Costs a) Salaries and Benefits for position Year 1 Year 2 $40,000 $80,000 Total Operating Costs $40,000 $80,000 S:\DCS\Admin FTE Finance_BUS.docx 15

16 ADMINISTRATIVE FTE SUPPORTING THE FINANCE DEPARTMENT January 14, 2016 Page 3 Capital Costs a) Renovation of space and purchase of furniture/ equipment Year 1 Total $20,000 $20,000 Total Capital Costs $20,000 $20,000 Implementation Costs (if applicable) For each material, non-quantifiable benefit: (if applicable): a) Describe the benefit: Increased capacity in many roles, including: FOI officer; HR advisors; Finance Director; Budget process; Asset Management; Risk Management; Insurance; and Procurement. b) Explain why it is important: This new FTE is important as it will allow Administration to respond to FOI requests in a timely manner. In addition, by reassigning some of these duties to this new FTE, we are able to gain capacity within the other roles. Finance and other departments will be able continue to provide services in the medium term, as demand increases, without additional FTEs. CONCLUSION As the requirement for information increases, the time and effort spent gathering information has also increased. By adding an additional resource and consolidating the administrative portion of these requests into one FTE, the City will achieve synergy and efficiencies. RECOMMENDATION Approval of a new FTE (specific job title to be determined) will address the increased demand in FOI requirements, as well as support the other areas identified in this business case. S:\DCS\Admin FTE Finance_BUS.docx 16

17 New Park Areas Maintenance Prepared by: J. Putnam, B.Comm. Parks and Civic Facilities Manager 17

18 NEW PARK AREAS MAINTENANCE January 13, 2016 INDEX EXECUTIVE SUMMARY... 1 TERMS OF REFERENCE... 1 Background... 1 General Goals and Specific Objectives... 1 Strategic Implications... 2 Stakeholders... 2 Boundaries... 2 BENEFIT/COST ANALYSIS... 2 Benefits... 2 Operating Costs... 2 CONCLUSION... 2 RECOMMENDATION... 2 S:\DCS\New Park Areas Maintenance_BUS-NEWNew Park Areas Maintenance_BUS.docx 18

19 NEW PARK AREAS MAINTENANCE January 13, 2016 Page 1 EXECUTIVE SUMMARY In 2015, the City increased its inventory of developed park and landscaped areas, which require an increase in operating costs to ensure future maintenance standards are met. TERMS OF REFERENCE Background Introduction The Parks, Recreation, and Cultural Services Department (PRCS) has acquired additional parks in its inventory over the last year. With the addition of new inventory, staff have been tasked with an increase in costs for landscape maintenance, irrigation, amenities, and snow and ice control for these areas. Details This request is for the addition of parks inventory to be maintained in This includes landscape maintenance, irrigation, amenities, and snow and ice control. A list of locations is provided below. As well, PRCS is increasing its service levels for utility lift stations from a Service Level C standard to Service Level B standard. Location Amount Rose Hill Park $12,100 Cowan Park $8,900 John Tod Centre $27,600 Various boulevard areas - Columbia Street, Overlanders Bridge, and roundabouts $27,840 North Shore RCMP Centre $27,720 Increased service level maintenance for utility lift stations (funded from Utilities) $40,840 General Goals and Specific Objectives Priority General Goal Specific Objective 1 To provide landscape maintenance for new park areas in Utility lift stations service level landscape maintenance proposed to increase from Service Level C standard to Service Level B standard (based on public complaints) Maintain standard service levels Many lift stations are in residential corridors and require additional staff time to reduce weeds and maintain flower beds and shrub areas S:\DCS\New Park Areas Maintenance_BUS-NEWNew Park Areas Maintenance_BUS.docx 19

20 NEW PARK AREAS MAINTENANCE January 13, 2016 Page 2 Strategic Implications The 2016 Financial Plan does not contemplate these additional landscape and snow and ice control costs as described. Stakeholders Civic facilities Trades Division Capital Projects Division RCMP staff Boundaries a) The 2016 PRCS operating budget (429) does not currently contain these costs. BENEFIT/COST ANALYSIS Benefits a) Maintaining these new park and landscape areas to a service level acceptable to the public and in a safe manner is necessary. Operating Costs Annual Cost a) Rose Hill/Cowan Parks $21,000 b) John Tod Centre/North Shore RCMP Centre $55,320 c) New boulevards $27,840 d) Utility lift station landscape maintenance $40,840 CONCLUSION Total Operating Costs $145,000 An annual investment of $145,000 would allow safe and appropriate landscape maintenance service levels similar to other City facilities and park areas service standards, including snow and ice control. RECOMMENDATION To direct Administration to update the 2016 Financial Plan as recommended. S:\DCS\New Park Areas Maintenance_BUS-NEWNew Park Areas Maintenance_BUS.docx 20

21 Capital Projects Construction Inspector (Civic Facilities) Prepared by: Darren Crundwell, P.Eng Capital Projects Manager 21

22 Capital Projects Construction Inspector October 26 th, 2015 INDEX EXECUTIVE SUMMARY... 1 TERMS OF REFERENCE... 2 Background... 2 General Goals and Specific Objectives (list highest to lowest in priority)... 3 Strategic Implications... 3 Stakeholders... 3 Boundaries... 3 Assumptions... 4 Alternatives Considered... 4 BENEFIT/COST ANALYSIS... 4 RECOMMENDATION... 5 S:\MANAGERS\Budgets\2016 Budget\2016 Additional Requests\2016 Additional Operating Requests - Expenses\Business Case for Capital Projects Construction Inspector Rev_1.docx 22

23 Capital Projects Construction Inspector October 30th, 2015 Page 1 EXECUTIVE SUMMARY Capital projects is responsible for the delivery and administration of the City s capital plan. Created in 2009, capital projects is one of the youngest divisions in the City. The mandate for the division, service levels and ability to deliver on all types of capital projects continues to evolve. In general, the current capital projects team is responsible for project management, contract administration, construction inspection, construction coordination and overall delivery of the majority of the City s capital projects. To provide an appropriate and consistent level of service for our clients and projects, the capital projects team dedicated a supervisor full time to civic facilities projects. In 2015, this capital projects supervisor is managing the following projects for the client groups: West Highlands Park Clubhouse - Construction; North Shore Community Policing Centre Design and Construction; Westsyde Pool Detailed Design; South Primary Lift Station Improvements - Construction; Public Works Yard Improvements (New Fire Training Centre) Detailed Design; ISC Dressing Room Renovations - Construction; and Heritage House Renovations Construction. In 2016, the capital projects supervisor will be managing: North Shore Community Policing Centre Construction; Westsyde Pool Construction; West Highlands Park Construction; South Primary Lift Station Improvements - Construction; Public Works Yard Improvements (New Fire Training Centre) Construction; CGAC Pool Building Envelope Repair Detailed Design; and Stewart Wood Detailed Building Assessment. The traditional roles on a project during the construction phase typically consist of a project manager, contract administrator and construction inspector to supervise the contractor and inspect the work. Through past experience, volume of projects and other factors such as internal coordination between departments, the City of Kamloops has blended the role of project manager and contract administrator. In addition, the construction inspector has/will take on a much more significant role in the delivery of the project through all phases, and not just construction. To allow this to happen, the traditional role of the construction inspector must evolve as well. A construction inspector s duty typically consists of: Review construction drawings and contract; Participate in construction start up meetings; Inspect the work during construction to confirm compliance with contract drawings and specifications; Prepare daily/weekly construction reports and photo log of project; and Other general miscellaneous coordination during construction. S:\MANAGERS\Budgets\2016 Budget\2016 Additional Requests\2016 Additional Operating Requests - Expenses\Business Case for Capital Projects Construction Inspector Rev_1.docx 23

24 Capital Projects Construction Inspector October 30th, 2015 Page 2 The current/future role of the inspectors must be: Participation in key project meetings during design phase as required by the project manager; Assist with review of drawings and general project details during design; Assist with review and preparation of cost estimates; Assist with preparation of tender/contract documents; Assist with coordination of construction meetings; Coordination with 3rd party utilities and internal departments; Contract administration; Performing or coordinating construction inspection and testing; and General project/construction coordination throughout the projects. Capital projects has dedicated a supervisor to our Civic Facilities Clients. Due to the volume of projects, complexity and capital investment by the City, the supervisor must have full time support to deliver these projects. This business case evaluated 2 primary options for delivery of the projects referenced above. This included hiring a construction inspector and hiring a consultant to try and provide the same level of service. The cost to the City, level of service and consistency with respect on these projects clearly identified hiring a construction inspector as the best value for the City. TERMS OF REFERENCE Background The current challenges/opportunities facing the capital projects group were/are: The City has routinely had a significant number of capital projects that were approved in the financial plan, but did not get completed. In 2015 the City will have completed or committed 95% of the proposed projects in the capital plan; City departments continue to leverage the expertise and project delivery capacity of capital projects; Due to growth and other improvements, capital projects has been able to complete more projects, but the level of service, consistency and overall quality of the project will continue to be challenging with current workload and staffing levels. The capital projects team has specific education and experience with the design/delivery of civil engineering projects. This skillset has primarily been utilized on roads/water/sewer/storm projects, but it must also include delivery of civic facilities projects as well. S:\MANAGERS\Budgets\2016 Budget\2016 Additional Requests\2016 Additional Operating Requests - Expenses\Business Case for Capital Projects Construction Inspector Rev_1.docx 24

25 Capital Projects Construction Inspector October 30th, 2015 Page 3 General Goals and Specific Objectives (list highest to lowest in priority) Priority General Goal Specific Objective 1 To provide effective project delivery and a more consistent service level 2 To provide a more consistent and higher level of service for parks and civic facilities projects 3 To leverage our capital projects supervisors more effectively 4 To ensure the successful delivery of the capital plan Add 1 FTE to support the capital projects supervisor in delivery of civic facilities projects Have 1 supervisor and 1 construction inspector specifically dedicated to the delivery of civic facilities projects Have an inspector dedicated and available to help manage and deliver civic facilities projects Complete the majority of projects on time, within budget and in the budgeted fiscal year Strategic Implications Hiring an Inspector for civic facilities projects will help meet service level expectations. The Council approved annual capital plan establishes the financial investment and subsequent service levels that are expected to be delivered each year. Those projects cannot be delivered unless the capital projects team has the time and capacity to handle the workload. Stakeholders Mayor and Council The Public Corporate Leadership Team Public Works and Utilities Parks Recreation and Cultural Services Corporate Services and Community Safety Development and Engineering Services Boundaries a) Budget availability An FTE will not be hired unless sufficient funds are available. b) Availability of qualified candidate Time and resources to train an unqualified person has not been included. c) Number of capital projects If no civic facilities projects are planned, then there is no need for a supervisor and inspector in capital projects specifically for these projects. S:\MANAGERS\Budgets\2016 Budget\2016 Additional Requests\2016 Additional Operating Requests - Expenses\Business Case for Capital Projects Construction Inspector Rev_1.docx 25

26 Capital Projects Construction Inspector October 30th, 2015 Page 4 Assumptions a) Corporate Leadership Team will continue to see value in utilizing capital projects for the delivery of the capital plan; and b) The number of projects expected to be delivered by the capital projects team in the coming years will warrant the investment of a supervisor and inspector dedicated to civic facilities. Alternatives Considered a) Alternatives that did not come close to meeting the business case's driving general goals/specific objectives: i) Don t hire a construction inspector to assist the capital projects supervisor with civic facilities projects Critical projects like Westsyde Pool, North Shore Community Policing will need to be delayed and may be over budget. ii) Utilize existing construction inspectors The current inspectors do not have the time or relevant experience to complete additional capital projects. b) Alternatives that were eliminated after more research: i) Hiring a temporary inspector during peak construction times No continuity and decreased service level for civic facilities projects. c) The one alternative or a short list of alternatives that merit further consideration: i) Hire a consultant to assist with the project delivery of civic facilities projects. BENEFIT/COST ANALYSIS Not hiring a construction inspector to support the Capital Projects supervisor for civic facilities projects is not considered a viable option. Therefore this analysis compares the 2 options that merit further consideration to help determine which one provides the best value to the City. The following table summarizes the annual cost of maintaining a fulltime, ongoing position compared to contracting the work out at the same utilization rate. This analysis includes the capital cost of a vehicle and/or yearly maintenance or charges per kilometre. S:\MANAGERS\Budgets\2016 Budget\2016 Additional Requests\2016 Additional Operating Requests - Expenses\Business Case for Capital Projects Construction Inspector Rev_1.docx 26

27 Capital Projects Construction Inspector October 30th, 2015 Page 5 Scenario Hourly Rate Pension & Benefits Per Hour Hours Per Year Annual Cost Notes City of Kamloops Inspector $38.49 $ $87, Consultant Inspector $ $ $170, (Hourly Rate + Benefits) x Hours Hourly Rate x Hours Cost Summary COK Inspector Consultant Inspector COK Vehicle ($6/hr x 1700hrs) Consultant Vehicle ($15/hr x 1700hrs) Year 1 $87, $170, $65, $25, Year 2 $89, $173, $15, $25, Year 3 $91, $176, $15, $25, Year 4 $92, $180, $15, $25, Sub-Totals $360, $700, $110, $102, Notes Year 1 includes $50,000 capital expenditure for CoK Truck Assume 2% annual escalation on wages Assume 2% annual escalation on wages Assume 2% annual escalation on wages Cumulative year Costs City of Kamloops Inspector $471, Consultant Inspector $802, Total Savings $330, CONCLUSION Not providing the capital projects supervisor with full time support for the delivery of civic facilities projects is not considered a viable option. This business case has discussed service levels, consistency on projects, volume of projects and the costs associated with other options to deliver these projects. The analysis clearly indicates that hiring a full time inspector to support the capital projects supervisor in the delivery of civic facilities projects is the best value for the City. RECOMMENDATION Authorize 1 additional construction inspector to support the capital projects supervisor on civic facilities projects, and purchase an additional light duty pick-up truck for the capital projects division. S:\MANAGERS\Budgets\2016 Budget\2016 Additional Requests\2016 Additional Operating Requests - Expenses\Business Case for Capital Projects Construction Inspector Rev_1.docx 27

28 Ice Rink Demand and Capacity Study Prepared by: J. Putnam, B.Comm. Parks and Civic Facilities Manager 28

29 ICE RINK DEMAND AND CAPACITY STUDY January 11, 2016 INDEX EXECUTIVE SUMMARY... 1 TERMS OF REFERENCE... 1 Background... 1 General Goals and Specific Objectives... 1 Strategic Implications... 2 Stakeholders... 2 Boundaries... 2 BENEFIT/COST ANALYSIS... 2 Benefits... 2 Operating Costs... 2 CONCLUSION... 2 RECOMMENDATION... 2 S:\DCS\Ice Rink Demand_BUS.docx 29

30 ICE RINK DEMAND AND CAPACITY STUDY January 11, 2016 Page 1 EXECUTIVE SUMMARY The City currently operates six ice pads in five arena facilities, as well as a curling rink. Due to the loss of a private ice rink in the community, and based on increasing ice rental demand, Administration recommends conducting a comprehensive ice rink facility demand and capacity review in The output will provide a general market overview, future ice demand projections, and current/future ice rink capacity shortfalls/surpluses. For the purpose of the study, the focus will be on non-curling ice capacity and demand (a curling review was conducted in consultation with both curling clubs in 2014). TERMS OF REFERENCE Background The Tournament Capital Committee recommended that this request be brought forward to the 2016 budget discussions. Situational Analysis Kamloops is a growing community and has been a leader in terms of hosting tournaments and events in hockey and other ice sports such as short track speed skating and figure skating. The five ice rink facilities vary in age from the 1949 Memorial Arena to the newest facility, the Olympic Rink at the McArthur Island Sport and Event Centre (MISEC), which was completed in 2005 in addition to a lobby and lounge renovation at the MISEC. Since 2005, the Kamloops Minor Hockey Association has grown to be the largest single minor hockey organization in BC. Kamloops is also home to several short track speed skating and figure skating clubs. Existing strong demand for peak period ice rental use by youth groups, adult hockey recreation groups, and City public skating programs has resulted in full capacity during peak ice times (4:00-10:00 pm, Monday-Friday, and 8:00 am-10:00 pm, Saturday-Sunday). Kamloops also hosts two junior hockey clubs and a major midget program, all of which will be consulted as part of the research portion of the proposed study, as well as all regular ice rink facility user groups and those groups that were displaced due to the closure of a private rink facility in Alternatives The alternative would be to not proceed with the study and to continue operating the arenas as they are; however, this would not address future capacity projections for recreation facility capital planning purposes. General Goals and Specific Objectives Priority General Goal Specific Objective 1 To complete the review by fall 2016 The results of review will provide Administration and Council with an accurate report of current and future ice rink capacity and needs S:\DCS\Ice Rink Demand_BUS.docx 30

31 ICE RINK DEMAND AND CAPACITY STUDY January 11, 2016 Page 2 Strategic Implications This review will support the City's goal of maintaining Kamloops' leadership position with the Tournament Capital Program. Stakeholders All regular ice user groups and facility partners such as Kamloops Minor Hockey Association, figure skating clubs, speed skating clubs, adult recreation leagues, junior hockey clubs, private hockey school/program operators, School District No. 73, public recreation patrons, plus facility partners and many more program/facility stakeholders. Boundaries a) The basis for the review will focus on City ice rink facilities and will not include facilities outside of the municipality. BENEFIT/COST ANALYSIS Benefits a) The benefit of the review will be to better understand future operational and capital needs for these key City assets, which will satisfy Council's strategic objectives of good governance and financial planning. Operating Costs Total a) Consulting costs $50,000 Total Operating Costs $50,000 CONCLUSION If Council agrees to the recommendation to proceed with this proposed ice rink demand and capacity review study, the results of the review will provide a better understanding of the City's future ice rink recreation facility needs to allow more certainty with capital planning. RECOMMENDATION That Council direct Administration to include $50,000 in the 2016 Financial Plan for the estimated cost of a future ice rink recreation facility needs study. S:\DCS\Ice Rink Demand_BUS.docx 31

32 Stuart Wood Elementary Prepared by: J. Putnam, B.Comm. Parks and Civic Facilities Manager 32

33 STUART WOOD ELEMENTARY January 12, 2016 INDEX EXECUTIVE SUMMARY... 1 TERMS OF REFERENCE... 1 Background... 1 General Goals and Specific Objectives... 1 Strategic Implications... 1 Stakeholders... 1 BENEFIT/COST ANALYSIS... 2 Operating Costs... 2 Implementation Costs... 2 Benefit/Cost Analysis Summary... 2 CONCLUSION... 3 RECOMMENDATION... 3 S:\DCS\Stuart Wood Elementary_BUS 33

34 STUART WOOD ELEMENTARY January 12, 2016 Page 1 EXECUTIVE SUMMARY School District No. 73 will permanently close Stuart Wood Elementary School on June 30, The City owns the land and property and will need to invest in basic maintenance for the park, grounds, and building structure until a future use is determined. TERMS OF REFERENCE Background This request is for basic general maintenance of the building structure and park and playground areas of the Stuart Wood Elementary School property. These costs are based on preliminary discussions between the City and School District No. 73 facility staff. The building facility maintenance costs are for unoccupied use only and do not include any unforeseen future capital improvements or maintenance issues that may be required. The park and playground area will be maintained to Service Level B standard to satisfy the needs of the neighbourhood and the Kamloops Regional Farmers' Market Society. For Council information, nearby Memorial Hill Park is also maintained to Service Level B standard. NOTE: These operating costs are based on an annualized basis; therefore, the 2016 request will be lower when the City takes the title to the property after July 1, Once Council determines the future use for the park and the facility, Administration will bring a report to Council to provide a budget plan for any required operating and capital costs at that time. General Goals and Specific Objectives Priority General Goal Specific Objective 1 To provide basic maintenance of building and park areas 2 To keep building costs as minimal as possible until a future use is determined Strategic Implications Work closely with School District No. 73 to capture all facility and park infrastructure maintenance information by July 1, 2016 Quantify basic utilities costs and security systems maintenance This heritage facility and park area will provide social benefits for the neighbourhood through increased interaction in the neighbourhood, as well as continuing as a key focal point for the Kamloops Regional Farmers' Market Society. Stakeholders School District No. 73 and City facilities, trades, and parks staff will all be equally involved during the transition. S:\DCS\Stuart Wood Elementary_BUS 34

35 STUART WOOD ELEMENTARY January 12, 2016 Page 2 BENEFIT/COST ANALYSIS For each material, non-quantifiable benefit: a) Maintaining the park and playground area to a Service Level B standard will provide social benefits for the community. Operating Costs a) Parks maintenance b) Building Maint/Security Year 1 Year 2 Year 3 $7,500 $15,000 $15,000 $12,500 $25,000 $25,000 Total Operating Costs $20,000 $40,000 $40,000 Implementation Costs a) Facility Inspection Study Year 1 Total $17,600 $17,600 Total Implementation Costs $17,600 $17,600 For each material, non-quantifiable cost: a) A detailed facility inspection fee is necessary to fully understand the condition of the building and the necessary improvements that may be required, depending on Council's decision on its future use and occupancy loads of the building. This amount is based on a detailed quote from the City's building envelope and structure consultant. Benefit/Cost Analysis Summary Year 1 Year 2 Year 3 Operating Costs $20,000 $40,000 $40,000 Implementation Costs $17,600 Net by Year $37,600 $40,000 $40,000 S:\DCS\Stuart Wood Elementary_BUS 35

36 STUART WOOD ELEMENTARY January 12, 2016 Page 3 CONCLUSION An investment of $37,600 in 2016 would allow continued public use of the park and playground areas and keep the school building safe and secure until its future use is determined by Council. RECOMMENDATION To direct Administration to update the 2016 Financial Plan as recommended. S:\DCS\Stuart Wood Elementary_BUS 36

37 Revenue Fees and Charges Prepared by: David Bregoliss Grants and Revenue Services Manager 37

38 REVENUE FEES AND CHARGES January 5, 2016 INDEX EXECUTIVE SUMMARY... 1 TERMS OF REFERENCE... 1 Background... 1 General Goals and Specific Objectives... 2 Alternatives Considered... 2 BENEFIT/COST ANALYSIS... 2 Benefits... 2 CONCLUSION... 3 RECOMMENDATION... 3 S:\DCS\Revenue Fees and Charges_BUS 38

39 REVENUE FEES AND CHARGES January 5, 2016 Page 1 EXECUTIVE SUMMARY The Revenue Division has determined that it can recover revenues through fees charged for services provided to customers. The services include Mortgage Company Listing, Property Tax Refund Fee, Returned Cheque Payment Fee, and Payment Transfers to Correct Account. The Mortgage Company Listing is an electronic file produced for mortgage companies. It is uploaded into the companies' systems and provides a listing of customer information, which allows the companies to check for accuracy and pay the necessary municipal taxes electronically. The Property Tax Refund Fee is used for payments that the City refunds to mortgage companies for overpayment of their clients; property taxes. The Returned Cheque Payment Fee is used to account for insufficient funds from the payer. The Payment Transfers to Correct Account is required when a customer makes an online payment to the wrong account. These are services that other municipalities (Prince George, Kelowna, Vernon, Surrey, Coquitlam, Victoria, and Nanaimo) provide to their customers for a fee. Based on 2015 statistics, the estimated revenue to be recovered would be $43,300 per year. TERMS OF REFERENCE Background The Revenue Division completed a review of its fees and charges. Staff also considered what Prince George, Kelowna, Vernon, Surrey, Coquitlam, Victoria and Nanaimo are doing. Staff discovered that those municipalities charge more for services than the City charges. In some cases, they charge for services that the City is providing for free. Services Mortgage Company Listing - An electronic file produced for mortgage companies to upload into their system that provides them with a listing of customer information, which allows checks for accuracy and permits the companies to pay their clients' municipal taxes electronically. While the file provides for accurate and timely payment, it is time consuming to put together and check before it is sent out. In 2015, the City processed 7,705 folios. The City currently charges $7.50 per folio and would like to increase the fee to $10 per folio, which would be in line with other municipalities. Property Tax Refund Fee - Each year the City refunds mortgage companies for overpayment of their clients' property taxes. This usually occurs because the mortgage companies pay on the gross tax amount so they are not penalized for late payment. The work involved to produce these refund cheques has become time consuming. In 2015, 346 tax refunds were processed between mid-july and the end of August. This process is labour intensive because each refund has to be individually calculated. Currently the City does not charge for this transaction. The proposed fee is $25 per refund. Returned Cheque Payment Fee - This is a fee that would be charged by the City when the payments are returned by the bank for non-sufficient funds (NSF). Over the course of a year, the amount of NSF payments can be substantial. The monthly Pre-authorized Withdrawal Program S:\DCS\Revenue Fees and Charges_BUS 39

40 REVENUE FEES AND CHARGES January 5, 2016 Page 2 (PAWS) for taxes and utilities generates approximately 25 to 30 NSF infractions a month, as well as with additional NSF charges throughout the year. The proposed fee is $25 per NSF. Payment Transfers to Correct Account - This is a fee that would be charged to customers who make payments to wrong accounts. This normally happens when customers make a payment to their tax or utility account through online banking. A manual transfer is required to correct the payment. Annually, approximately 200 corrections are done. The City currently doesn t charge for this transaction. The proposed fee is $25 per transfer. General Goals and Specific Objectives Priority General Goal Specific Objective 1 To recover revenue through services that are provided to customers. Alternatives Considered To align fees with other benchmark municipalities. a) Alternatives that did not come close to meeting the business case's driving general goals/specific objectives: i) Status quo equals lost revenue opportunities. BENEFIT/COST ANALYSIS Benefits a) Mortgage Listings** b) Property Tax Refund c) Returned Cheque Payment Year 1 Year 2 Etc. $19,250 $19,250 $19,250 $8,800 $8,800 $8,800 $10,250 $10,250 $10,250 d) Payment Transfer $5,000 $5,000 $5,000 Total Benefits $43,300 $43,300 $43,300 S:\DCS\Revenue Fees and Charges_BUS 40

41 REVENUE FEES AND CHARGES January 5, 2016 Page 3 CONCLUSION The Revenue Division proposes that the City increase the Mortgage Company Listing fees and implement fees for Property Tax Refunds, Returned Cheque Payments, and Payment Transfers to Correct Accounts. In each one of these cases, the workload has increased every year, which requires more staff time. RECOMMENDATION It is recommended that Council approve these fees by incorporating them into Bylaw No. 44-1, which is a bylaw to set fees for providing copies of documents. S:\DCS\Revenue Fees and Charges_BUS 41

42 Administration Recommended Additional Budget Items - CAPITAL Line # CAPITAL 1 2 Item 3rd Avenue Rail Crossing Enhancements Storm Infrastructure Upgrades Related to Climate Change Business Case No Business Case Business Case Operating Budget FTE Amount Capital Budget Admin Priority 20, S ,000 2,200, S Notes Report received Jan 15, 2016 with requirement to improve safety of crossing. Costs and recommendations to be investigated. Options presented in business case. 3 Emergency Generator Public Works Centre Business Case 350, S There will be a requirement to increase the operating budget by $2,500 starting in 2017 for annual inspections and repairs. 4 5 JDE Payroll Software Upgrade Riverside Park Maintenance Business Case Business Case 185, M 50, M The recommendation is to transfer unspent funds in the Asset Management capital project to fund this upgrade This request is for an ongoing annual budget of $50, Thermoplastic Road Marking Applicator Business Case 20, E 7 North Shore Transit Exchange Planter Improvements Business Case 18, E Could be funded from Transit surplus if reserve established. 8 BMX Park Project Completion Business Case 65, E Priority: Category: 1 - High C Community driven requests 2 - Medium E Enhances current levels of service 3 - Low M Maintenance of existing infrastructure S Statutory / legal / safety requirement 42

43 Storm Infrastructure Upgrades Related to Climate Change Prepared by: M. Firlotte Utility Services Manager and J. Welke Drainage Engineer 43

44 STORM INFRASTRUCTURE UPGRADES January 14, 2016 RELATED TO CLIMATE CHANGE INDEX EXECUTIVE SUMMARY... 1 TERMS OF REFERENCE... 1 Background... 1 General Goals and Specific Objectives... 5 Stakeholders... 5 Boundaries... 5 Assumptions... 5 Alternatives Considered... 6 BENEFIT/COST ANALYSIS... 6 OTHER FINANCIAL ANALYSIS... 9 CONCLUSION...10 RECOMMENDATION...10 S:\DCS\Storm Infrastructure Upgrades_BUS-NEWStorm Infrastructure Upgrades_BUS.docx 44

45 STORM INFRASTRUCTURE UPGRADES January 14, 2016 RELATED TO CLIMATE CHANGE Page 1 EXECUTIVE SUMMARY Climate change is impacting our city, as can be seen from a number of micro burst type rain events recently experienced throughout the city. This business case outlines a recommended approach to upgrade our existing storm infrastructure so that the City can better cope with these extreme events and mitigate damage where possible. This funding envelope will allow the Public Works and Utilities (PWU) and Development and Engineering Services (DES) Departments to inspect, plan, and repair both the overland and storm pipe network and to mitigate future potential issues moving forward. TERMS OF REFERENCE Background Over the past several years, Kamloops has experienced significant rain events that have caused damage to both private property and public infrastructure. There has been a noticeable increase in events causing damage particularity over the past five years, with the two most notable events occurring on July 23, 2014, and June 30, These events highlighted many ongoing issues, which include: Damaged infrastructure; Undersized overland flow network; Erosion of natural gullies and debris flows; Infrastructure subject to chronic plugging; Increasing storm intensities (micro bursts); Increasing the impervious area coverage (pavement); and Increased insurance claims due to flooding. Staff continue to prioritize the existing storm budget so that high-priority areas are addressed first, with the goal of reducing the overall risk to the City and its residents. Despite prioritization of these funds, there are still many high-priority areas that need to be addressed. This results in the City being exposed to many levels of risk with regard to under performance of the existing linear (pipe) and overland stormwater systems. In looking closely at the damage caused by the two main storms and various smaller storms, PWU and DES began to take a closer, critical look at the stormwater system and at its current condition. Staff have also benchmarked the state of the City's systems as well as the City's expenditures as compared to other cities. It became clear that not enough resources or budget have been identified in the past to correct or mitigate stormwater issues. It should be stated that the reinvestment dollars required to get the City to a steady state is large and beyond the scope of our budgeting process. That said, staff have looked at how the City can make improvements while still remaining realistic with its budget/expenditure requests. Along that line of thinking, this business case outlines various options for Council's consideration with respect to how to make improvements to the stormwater budget so that the City is in a better position to be able to deal with pending storms. S:\DCS\Storm Infrastructure Upgrades_BUS-NEWStorm Infrastructure Upgrades_BUS.docx 45

46 STORM INFRASTRUCTURE UPGRADES January 14, 2016 RELATED TO CLIMATE CHANGE Page 2 Capital and Operating Requirements To further mitigate the risk and to provide infrastructure readiness, additional funding and capital projects are required. There are currently two major and various minor capital stormwater projects that require funding. Additional operating costs are required in order to monitor and repair the existing stormwater system. The capital projects that require funding are as follows: Capital Project - Hillside Drive North Rip-rap Channel The Hillside North Channel and downstream detention pond were compromised during the July 2014 storm event. An emergency project and budget were created based on armouring (rip-rap) techniques that have been utilized in the past. At that time, the full breadth of geotechnical issues and risks were not fully understood for all sections of the channel, especially in the natural sections. Currently, the rip-rap channel sections, including grouted, are slowly eroding and the energy dissipation pool is damaged. Additionally, the natural channel is quickly degrading, with substantial bank failures and slope failures. S:\DCS\Storm Infrastructure Upgrades_BUS-NEWStorm Infrastructure Upgrades_BUS.docx 46

47 STORM INFRASTRUCTURE UPGRADES January 14, 2016 RELATED TO CLIMATE CHANGE Page 3 These issues prompted staff to evaluate a range of different alternatives for the storm servicing of this area. The range of alternatives included a minimalist repair of the existing system to a complete rerouting of the system. The recommended strategy is to pipe the entire system along the current alignment of the channel all the way to the detention pond. In this case, piping the majority of the system is cheaper than rip-rap options due to the complexity of site. The piping system is also more robust and less prone to future failure. This is deemed a high-priority project based on the fact that the detention pond at the bottom of the gully fills up with sediment during storm events. Although the detention pond is cleaned, which in itself is costly, it is at risk of being overwhelmed with sediment during a large storm event and discharging downstream onto Mission Flats Road, the railway tracks, and ultimately into the South Thompson River. It should also be noted that pond cleanout costs are also increasing as on-site disposal of sediment material is no longer an option due to space restrictions. Capital Project - Juniper Creek Bank Stability S:\DCS\Storm Infrastructure Upgrades_BUS-NEWStorm Infrastructure Upgrades_BUS.docx 47

48 STORM INFRASTRUCTURE UPGRADES January 14, 2016 RELATED TO CLIMATE CHANGE Page 4 The Juniper Creek channel along Barnhartvale Road has been slowly eroding. The channel is deeply incised with near vertical cut banks. The banks continue to slough into the channel and the fine silts are washed into the South Thompson River. Juniper Creek has previously been identified as a significant source of sediment to the South Thompson River and is upstream from the Kamloops Centre for Water Quality. Some sections of the channel are now threating Barnhartvale Road. This project will consist of regrading the channel and installing rip-rap for approximately 700 m. Armouring the channel will provide the benefit of minimizing the amount of silt washed into the river and protecting the road from future damage. This was deemed a high-priority project because of the impacts on other City infrastructure (Barnhartvale Road) and the amount of sediment that is discharged into the South Thompson River. Capital Projects - Storm Upgrades A number of smaller projects have also been identified. The order of the following projects is associated with the criticality and risk of each project. Strathcona Storm Main Repair Westsyde Overland Flow Upgrades Parkview Drive Debris Basin Downtown Peterson Creek Channel Rehabilitation Guerin Creek at Lombard Bank Stabilization Orchard Drive Overland Flow Upgrades Bestwick Channel Restoration Valleyview Drive Overland Flow Upgrades Additional projects are anticipated to be identified as part the ongoing effort to complete Watershed Master Plans (WMP) for the City. Currently, two watersheds, Guerin and Peterson Creek, are being worked on concurrently. Working through the WMP process will allow staff to adequately prioritize the projects, identify overall needs, and scope along with associated project cost estimates. Operating Requirements As previously indicated, additional operating funds are also required. The requirements include a 0.5 FTE for a Utilities Maintenance Tech for the overland flood network inspections. This person would assist existing personnel with overland flood routes inspections. The incumbent's role would include regular inspections of all stormwater channels to ensure there are no blockages and that any erosion is identified and managed accordingly. S:\DCS\Storm Infrastructure Upgrades_BUS-NEWStorm Infrastructure Upgrades_BUS.docx 48

49 STORM INFRASTRUCTURE UPGRADES January 14, 2016 RELATED TO CLIMATE CHANGE Page 5 Normally, there would be a request for a partial Capital Projects Division staff member to administer the capital projects outlined above; however, the Capital Projects Division hopes that the projects can be managed with the existing staff and the additional Capital Projects Construction Inspector. If this is not feasible, some project administration work will need to be contracted out. Depending on the scope of contracting out, a formal business case may be forthcoming, but every attempt will be made to administer the additional storm projects with the existing Capital Projects Division staff. General Goals and Specific Objectives Priority General Goal Specific Objective 1 Protection of human life and environment Hold human life paramount and mitigate urban induced erosion processes 2 Cost-effective system that balances risk Appropriately finance a stormwater system that reduces risk to a tolerable level taking into account social, economic, and environmental values 3 Reduction of flooding/debris flows and resulting property damage 4 Manage stormwater using sustainable practices 5 Integrate storm initiatives into the community and other capital projects Stakeholders Development and Engineering Services (Engineering Division) Public Works and Utilities General Public Boundaries Increase the capacity of the overall system to handle increasing intensities of storms Implement low impact development techniques and best management practices where appropriate/practical a) Completion of projects to prevent and mitigate future damage claims. Assumptions a) Storm infrastructure will continue to age and degrade over time. Leverage opportunities with other capital projects while looking for opportunities to have storm infrastructure become a public amenity space b) The region will experience increasing intensity of storms due to climate change and shifting weather patterns. S:\DCS\Storm Infrastructure Upgrades_BUS-NEWStorm Infrastructure Upgrades_BUS.docx 49

50 STORM INFRASTRUCTURE UPGRADES January 14, 2016 RELATED TO CLIMATE CHANGE Page 6 Alternatives Considered a) Alternatives that did not come close to meeting the business case's driving general goals/specific objectives: i) Status quo - No operational or capital enhancement. b) Alternatives that violate a boundary: i) Existing practise of repairing after damage has occurred. c) Alternatives that were eliminated after more research: i) Increase funding of stormwater infrastructure and operations. BENEFIT/COST ANALYSIS Option A - 1% per year Tax Increase Option A uses the strategy of phasing projects to fit within an annual increase of $950,000 (1% tax increase). Capital Hillside Drive North Channel Juniper Creek Bank Stability $980,000 $850,000 $850,000 $950,000 $950,000 Unspecified $220,000 $195,000 $25,000 $25,000 Operational 0.5 FTE $50,000 $50,000 $50,000 $50,000 $50,000 Total Costs $1,030,000 $1,120,000 $1,095,000 $1,025,000 $1,025,000 S:\DCS\Storm Infrastructure Upgrades_BUS-NEWStorm Infrastructure Upgrades_BUS.docx 50

51 STORM INFRASTRUCTURE UPGRADES January 14, 2016 RELATED TO CLIMATE CHANGE Page 7 The advantage of Option A is that there is a consistent ongoing tax increase. Although this would be a benefit to the stormwater infrastructure, it would mean that the large, high-priority capital projects mentioned earlier in this business case would need to be split into many phases. The Hillside Drive North Channel project would be split in two phases with the upgrades to the energy dissipation basin completed in 2016 and the upgrades of the natural gully sections to the detention pond completed in In order to fund Phase 2 of the Hillside Drive North Channel project, funding would be required in 2017 and Phasing the project is anticipated to increase the total project cost by approximately $580,000. The Juniper Creek Bank Stability project would be constructed in The estimate includes a 5% inflation rate per year in order to have adequate funds in 2020 dollars. It is anticipated that delaying the project to 2020 will cost an additional $220,000. Option B - Option A with Increased Funding for 2016 and 2017 (Recommended Option) Option B is a combination of Option A and expediting the Hillside Drive North Channel and Juniper Creek Bank Stability projects. Capital Hillside Drive North Channel Juniper Creek Bank Stability $2,200,000 $1,680,000 Unspecified $850,000 $850,000 $850,000 Operational 1 x FTE $50,000 $50,000 $50,000 $50,000 $50,000 Total Costs $2,250,000 $1,730,000 $900,000 $900,000 $900,000 This option will require increased funding in 2016 and 2017, but reduces the overall costs of both the Hillside Drive North Channel and Juniper Creek Bank Stability projects as compared to Option A. S:\DCS\Storm Infrastructure Upgrades_BUS-NEWStorm Infrastructure Upgrades_BUS.docx 51

52 STORM INFRASTRUCTURE UPGRADES January 14, 2016 RELATED TO CLIMATE CHANGE Page 8 This option includes additional funds in 2018 through These funds will be used to fund future capacity upgrades and storm infrastructure renewal projects. These funds will be prioritized in future years as the WMPs are completed and increased inspections of storm infrastructure are completed. Option C - Funding Required for Long-term Updates and Renewal of Existing Infrastructure Option C represents the costs required to perform a real fix of updating and maintaining the City's infrastructure in wake of climate change. As mentioned earlier in this business case, the costs to provide the real fix are extreme and very likely not palatable for Council; however, this option was provided as a frame of reference for how much money would be required to get to a steady state. It should be noted that this option includes an additional 0.5 FTE for the Capital Projects Division as the number of capital projects requiring administration/management in this option is much larger. Capital Hillside Drive North Channel Juniper Creek Bank Stability $2,200,000 $1,680,000 Unspecified - Upgrade $1,700,000 $1,700,000 $1,700,000 Unspecified - Renewal $1,000,000 $1,000,000 $1,000,000 Storm Reserve $1,920,000 $2,320,000 $1,300,000 $1,300,000 $1,300,000 Operational 1 x FTE $100,000 $100,000 $100,000 $100,000 $100,000 Unspecified $100,000 $100,000 $100,000 $100,000 $100,000 Total Costs $4,320,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 S:\DCS\Storm Infrastructure Upgrades_BUS-NEWStorm Infrastructure Upgrades_BUS.docx 52

53 STORM INFRASTRUCTURE UPGRADES January 14, 2016 RELATED TO CLIMATE CHANGE Page 9 The financial analysis on this option is extremely high level and involves large, wide-ranging assumptions. This option is presented to show an idea of the funding levels required to sustainably fund the storm system, taking into account the pending infrastructure gap. This option assumes that all infrastructure will have an overall average useful life of 75 years. The option also assumes the 15% of the storm system is upgraded over the next 25 years. If Option C is chosen, additional analysis will need to be completed to refine the annual sustainable funding level. The sensitivity range at this time is approximately -25% to +80%. This option includes setting up a reserve to start accumulating money for future projects. These future projects will be identified through the watershed planning process and increased level of inspections. Out of those processes, it is anticipated that a large number of projects will be identified to start addressing the capacity and aging infrastructure issues. Based on the available data, a large amount of infrastructure will reaching the end of their useful lives in OTHER FINANCIAL ANALYSIS The key to all infrastructure is adequate and sustainable funding to support that infrastructure over the long-term. Historically, stormwater infrastructure has been a lower priority for investment in Kamloops and other municipalities in BC and Canada. Recent storms in Kamloops and across the country have highlighted to the need to invest more in to storm infrastructure. Combined with the need to upgrade infrastructure is the growing need to renew aging infrastructure. Despite the relative young age of the City, staff are finding infrastructure that is severely degraded and requiring replacement. Sustainable funding of stormwater is a very complex question, which can be taken to a very detailed level requiring time and resources to complete. This detailed level is in the works as part of the global asset management strategy for the entire City. To aide in this discussion at the current time, a simplified analysis was completed. The analysis includes high-level global assumptions that are subject to wide ranges of variability. Amortization Renewal Upgrades* Operations** Yearly Funding 100 $2,800,000 $1,700,000 $1,400,000 $5,900, $3,800,000 $1,700,000 $1,400,000 $6,900, $5,700,000 $1,700,000 $1,400,000 $8,800, $7,100,000 $1,700,000 $1,400,000 $10,200,000 *Assumes 15% of the system is upgraded over the next 25 years **Assumes $3/m of sewer and channels These numbers are in 2016 dollars and do not account for growth of the system or yearly inflation. More importantly, this analysis does not take into account the required timing of storm infrastructure renewal and spreads the costs evenly over the amortization period. Current funding levels are as follows: Capital Operations Total $1,500,000 $1,200,000 $2,700,000 S:\DCS\Storm Infrastructure Upgrades_BUS-NEWStorm Infrastructure Upgrades_BUS.docx 53

54 STORM INFRASTRUCTURE UPGRADES January 14, 2016 RELATED TO CLIMATE CHANGE Page 10 CONCLUSION Over the past several years, Kamloops has experienced significant rain events that have caused damage to both private property and public infrastructure. There has been a noticeable increase in events causing damage particularity over the past five years Staff time and resources have been primarily used in dealing with the fall-out of these extreme events and have monopolised the stormwater budgets available to reduce the overall immediate risk to the overall City and its residents. Despite allocation of these funds, the City is still exposed to many levels of risk regarding performance, the existing linear pipe, and the overland stormwater systems. The key to all infrastructure is adequate and sustainable funding to support that infrastructure over the long term. Historically, stormwater infrastructure has been a lower priority for investment in Kamloops and other municipalities in BC and Canada. Recent storms in Kamloops and across the country have highlighted to the need to invest more in to storm infrastructure. Although Option B will not fix all the stormwater issues, it is presented as the City's best use of resources, and funds to start a renewal and maintenance program to help limit the effects of climate change. RECOMMENDATION That Option B, as shown, be adopted and added to the Financial Plan. S:\DCS\Storm Infrastructure Upgrades_BUS-NEWStorm Infrastructure Upgrades_BUS.docx 54

55 Emergency Generator Public Works Centre Prepared by: Ken Wilk Trades Supervisor Facilities Concurrence: Dan Sutherland Emergency Program Coordinator 55

56 Emergency Generator August 27, 2015 INDEX EXECUTIVE SUMMARY... 1 TERMS OF REFERENCE... 1 Background... 1 General Goals and Specific Objectives (list highest to lowest in priority)... 1 Stakeholders... 1 Boundaries... 2 Assumptions... 2 Alternatives Considered... 2 Capital Costs... 3 OTHER FINANCIAL ANALYSIS... 3 CONCLUSION... 3 RECOMMENDATION... 3 S:\MANAGERS\Budgets\2016 Budget\2016 Additional Requests\2016 Additional Capital Requests\Business Case for Emergency Generator Revised.docx 56

57 Emergency Generator August 27, 2015 Page 1 EXECUTIVE SUMMARY The Public Works Centre has operated since 2008 with a designated area for an Emergency Operations Centre (EOC). To help facilitate operations at the EOC a portable generator was used from the Utility Services Division to ensure that phone and computer service could be maintained in the event of a power outage. This portable generator provides power only to select phones, computers, and lighting for EOC only. It does not provide power for any amenities such as fuel pumps, sanitary sewer pumps, security (gates), or any other buildings and areas of the Public Works Centre. Additionally, if there were concerns within the utilities system during a storm event, the generator would need to be moved to that (different) location. TERMS OF REFERENCE Background An emergency generator was planned for the Public Works Centre when it was built; however, it has never been purchased or installed. The original plan called for an emergency generator for the EOC only, but after some discussion it seemed prudent that the whole Public Works Centre should have emergency power. By doing this we would have the capacity to run the EOC with a fully functioning building (heating and air conditioning), as well as having the ability to fuel and repair vehicles/equipment on site, maintain site security, and have a reliable and secure backup site for the City of Kamloops servers. In order to provide services to the community and the EOC during an emergency event, access to the facilities at the PWC must be maintained during a power outage. Additionally, the IT Disaster Recovery Site at PWC requires continuous power in order to function correctly. An always available generator is a necessity, working together with an Uninterruptable Power System (UPS). When a power outage occurs, the UPS system supplies power to handle the transition to the generator, which may take a minute or more. It also protects from surges, low or high voltages or other power events which may burn out sensitive gear. The current system at building C (where the EOC is located) is inoperable for two reasons, since (1) the UPS system cannot handle the load and immediately fails causing equipment to go down 'hard' and (2) there is no standby generator in place since it is trucked in and only available if utilities is not using it. Another consideration is that with the current situation emergency lighting is not available in Building C, which is against building/fire codes. General Goals and Specific Objectives (list highest to lowest in priority) Priority General Goal Specific Objective 1 To ensure a reliable backup power supply for the EOC. Purchase a designated emergency generator for the EOC (Emergency Operations Centre). S:\MANAGERS\Budgets\2016 Budget\2016 Additional Requests\2016 Additional Capital Requests\Business Case for Emergency Generator Revised.docx 57

58 Emergency Generator August 27, 2015 Page 2 2 Provide Information Technology systems that support City operations during all levels of emergency, including loss to City Hall. 3 Provide backup power for the entire Public Works Centre. Have a mirrored site for City of Kamloops computer systems. Relocate IT server equipment so that existing UPS can provide backup for EOC and new UPS (separately funded) can provide backup for all City of Kamloops computer systems. Ability to maintain COK business continuity during an emergency and to provide critical community services as required. Stakeholders Kamloops Fire & Rescue Emergency Operations Centre Information Technology Public Works & Utilities Internal & External Customers Boundaries a) Eliminating the use of a portable generator that may not always be readily available when required for the EOC. Assumptions a) City Administration sees the value in having a self-sufficient EOC site that can be mobilized quickly and efficiently in the event of a power outage. b) City Administration sees the value in having a fully functional Public Works Yard in the event of an emergency. c) Backup for City computer systems is required. Alternatives Considered a) Alternatives that did not come close to meeting the business case's driving general goals/specific objectives: i) Use an existing City-owned portable generator. The City does not own a generator which is large enough to power the entire Public Works Centre. b) The one alternative or a short list of alternatives that merit further consideration: i) Continue to use the generator from the Utility Services Division (for select items for EOC only). S:\MANAGERS\Budgets\2016 Budget\2016 Additional Requests\2016 Additional Capital Requests\Business Case for Emergency Generator Revised.docx 58

59 Emergency Generator August 27, 2015 Page 3 Capital Costs 2016 a) Estimate $350, Total Capital Costs $350, Operating Costs In order to maintain and perform inspections/repairs as needed there will need to be a reoccurring yearly budget of $2, OTHER FINANCIAL ANALYSIS The continued use of a portable utilities generator for the EOC could be compromised should the Utility Services Division require it for use at another location. There is also a time delay in transporting the generator to the EOC and hooking it up when required. CONCLUSION A permanent emergency backup generator at the Public Works Centre would ensure a safe, reliable, uninterrupted power supply for the whole yard including the EOC. This would allow Public Works to work in conjunction with the EOC by providing support and services to the community and the EOC in the event of a power outage. The RCMP building, City Hall, Fire Halls #1, #2, #3, and #7 already have fixed emergency back-up generators for critical systems. By adding one for the PWC the City would ensure core functions could be provided should a major event take place. RECOMMENDATION Authorize the purchase of a fixed emergency backup generator that will be capable of providing emergency power for the whole Public Works Centre including the EOC at an estimated cost of $350, S:\MANAGERS\Budgets\2016 Budget\2016 Additional Requests\2016 Additional Capital Requests\Business Case for Emergency Generator Revised.docx 59

60 JDE Payroll Software Upgrade Prepared by: Doug Stewart Assistant Finance Director 60

61 JDE Payroll Software Upgrade November 10, 2015 INDEX EXECUTIVE SUMMARY... 1 TERMS OF REFERENCE... 1 Background... 1 General Goals... 3 Boundaries... 3 Alternatives Considered... 3 COST ANALYSIS... 4 Implementation Costs... 4 CONCLUSION... 4 RECOMMENDATION

62 JDE Payroll Software Upgrade November 10, 2015 Page 1 EXECUTIVE SUMMARY It has been determined that the City must invest resources to improve the way the JDE Payroll system is utilized. By doing so, efficiencies can be found and manual processes can be eliminated. Although we are confident that the information being produced by the Payroll division is accurate a number of manual processes, that could be automated, are currently being employed that take more time and effort and raise the potential for errors being made. To achieve the outcomes desired an upgrade of the Payroll system from JDE is recommended. This project would include the City engaging Syntax Systems Limited to provide consulting and project management services. The budget for this project is estimated to be $185,000. There are sufficient uncommitted funds in the Asset Management project to allow for a transfer to cover the cost of this initiative. The City will also need to commit time from the Payroll Supervisor, the Payroll Coordinator and a Business Analyst to support this project. These positions are funded from our regular operating budget. TERMS OF REFERENCE Background The City s payroll division is not using the JDE software as efficiently as possible. Although we are confident that the information being produced by the Payroll division is accurate a number of manual processes, that could be automated, are currently being employed that take more time and effort and raise the potential for errors being made. In 2012 isp3, a JDE Software consulting firm, was engaged to review how the City was utilizing the JDE payroll module. The individual from isp3 who conducted the review is the same person who managed the original payroll implementation in The following is an excerpt from the Payroll Process Review by isp3 dated April 2, 2012: The following content outlines areas that if implemented and administered properly, will decrease resource time to complete required tasks, better utilize the software to dismiss manual efforts, and improve functional task requirements using current release requirements. In addition, process changes proposed here will help enable better and more accurate reporting by ensuring the correct data is updated to associated records when changes occur. Current state: The group has managed to utilize the software to generate required outputs but is not aware if, or has not yet discovered, alternate efficient solutions. The City of Kamloops upgraded to JDE 8.12 from The City was on Xe prior to 8.10 and had upgraded from which was the original payroll application release with Electronic Software Updates. All of these were basically Technical upgrade efforts. 62

63 JDE Payroll Software Upgrade November 10, 2015 Page 2 Enhancements available in the new product have not been adequately reviewed with respect to current business processes. Issues are not always diagnosed well for resolution, i.e. Checking Oracle s site for SR s that may have been reported by other customer(s). The process seems to be to try to resolve to the payroll team s capabilities. If the root cause cannot be determined, the team resorts to manual effort as the solution. In some cases, fixes (ESUs) may exist to correct current problem areas. If Oracles s site is not being monitored or used for issues resolution, it is possible that the City s current software code may be below baseline. During the annual financial audit conducted by the City s Auditor, BDO Canada, any process deficiencies noted are communicated to the Audit Committee through a Management Letter. The following is an excerpt from the BDO Management Letter dated April 23, 2015: During the course of our audit, several instances of non-compliance with payroll processes and controls were noted. We recommend that management consider the current processes and staffing to determine if changes need to be made to the control environment. Syntax Systems Limited (Syntax) was hired to support the software upgrade and to conduct a further review of how the City utilizes the payroll module. The review identified a number of areas where the software configuration setup is more complicated than required for the City s payroll needs and other features of the software that the City was not utilizing. Syntax identified two potential approaches to dealing with the payroll issues identified. One approach proposed is to make system changes in the live payroll environment over time. The other approach, and the one supported by the City, is to re-implement the payroll system in the test environment and then move the revised system to the live environment when it is complete. Syntax recommends that the City consider the re-implementation solution for the following reasons: Better transfer of knowledge to staff We can create an environment based on Kamloops requirements The estimation effort is more accurate We can work in a more stable (test) environment In addition to the benefits listed above Syntax also provided some risks associated with making the fixes in the live environment: The estimation of effort is difficult The current environment is unstable The effort and investment is similar compared to a re-implementation The live environment fix is not based on Kamloops needs 63

64 JDE Payroll Software Upgrade November 10, 2015 Page 3 In 2015 we conducted an internal review of our payroll processes. We confirmed that the staff were not utilizing the system to automate certain functions that were resulting in duplication of efforts, manual processes and inefficient use of time checking and reviewing reports. Although some errors were not found and corrected in a timely manner we were fortunate that nothing serious or costly occurred. The results of the internal review were discussed with the Audit Committee in October The Audit Committee agreed that we need to treat our financial system like other assets of the City and commit resources to ensure it is maintained properly. The Audit Committee agreed to have a Payroll Upgrade project include in the list of Additional Requests to be discussed by Council during the 2016 budget deliberations. General Goals: Priority Boundaries General Goal 1 Use the payroll system more efficiently 2 Eliminate manual business processes that can be automated 3 Take advantage of new features available in updated software releases 4 Segregate tasks between Payroll and Human Resources 5 Improve the system knowledge of the Payroll division staff a) Any solution cannot impact the ability of the payroll division to meet its bi-weekly or yearend payroll obligations Alternatives Considered a) Alternatives that did not come close to meeting the business case's driving general goals/specific objectives: i) Do not engage an external consultant and attempt to find efficiencies on our own This option was rejected as we do not believe we have the skill set in-house to successfully meet the goals of this initiative b) Alternatives that were eliminated after more research: i) Make system changes in a live environment Syntax s preliminary estimate for this work was a range from $167,000 to $250,000 plus expenses and City staff time. They felt this was the best they could provide given the uncertainty of making changes in a live environment. 64

65 JDE Payroll Software Upgrade November 10, 2015 Page 4 COST ANALYSIS Implementation Costs Total a) Consulting costs $125,000 b) Consulting travel costs 10,000 c) Consulting contingency 25,000 c) Staff overtime and backfill 25,000 Total Implementation Costs $185,000 Non-quantifiable costs a) Project sponsor b) Business Analyst c) Payroll Supervisor d) Payroll Coordinator CONCLUSION It has been determined that the City must invest resources into improving the way the JDE Payroll system is utilized. By doing so, efficiencies can be found and manual processes can be eliminated. This will reduce the potential for errors and provide a more stable environment. RECOMMENDATION It is recommended that the City engage Syntax to support the re-implementation of the payroll system from JDE. The budget for this project is estimated to be $185,000. The source of funds will be a transfer from the Asset Management Project #

66 Riverside Park Maintenance Prepared by: J. Putnam, B.Comm. Parks and Civic Facilities Manager 66

67 RIVERSIDE PARK MAINTENANCE January 13, 2016 INDEX EXECUTIVE SUMMARY... 1 TERMS OF REFERENCE... 1 Background... 1 General Goals and Specific Objectives... 1 Strategic Implications... 1 Stakeholders... 1 Assumptions... 2 BENEFIT/COST ANALYSIS... 2 Operating Costs... 2 CONCLUSION... 2 RECOMMENDATION... 2 S:\DCS\Riverside Park Maintenance_BUS.docx 67

68 RIVERSIDE PARK MAINTENANCE January 13, 2016 Page 1 EXECUTIVE SUMMARY Riverside Park is one of the City's key civic assets and experiences steady visitor growth and requests for additional event permits every year. In order to ensure protection of this key City asset, Administration recommends creating a dedicated annual maintenance fund of $50,000. TERMS OF REFERENCE Background Riverside Park is considered the park jewel of the community. We have recently completed the Riverside to Pioneer Parks Management Plan, which recognizes the need to provide a high-level maintenance standard, as the park visitor levels continue to grow due to population growth and increasing numbers of event participants. These maintenance funds will be used for the rehabilitation of turf, shrub beds, and/or floral displays that may be damaged by events or vandalism; Rivers Trail repairs as required; and park amenity repairs (water park, washrooms, fountains, and benches) as required. Impact on Other Departments/Divisions Maintenance of Riverside Park may involve assistance from the Capital Projects Division, the Trades Division, and possibly the Utility Services Division. Alternatives The alternative would be to continue to maintain the park using existing operating budgets; however, service levels for maintenance may decrease in other areas to offset these growing repair and maintenance costs. General Goals and Specific Objectives Priority General Goal Specific Objective 1 To maintain the existing high level of landscape and park maintenance at Riverside Park Strategic Implications Key goal is to not reduce existing service levels of park maintenance due to strong growth of visitors and park use demand The Riverside to Pioneer Parks Management Plan recognizes the importance of maintaining a high standard of parks service levels in this high-traffic waterfront corridor. Stakeholders Heritage House Music in the Park visitors Sports Council Large event permittees (RibFest, Canada Day, and charity events) S:\DCS\Riverside Park Maintenance_BUS.docx 68

69 RIVERSIDE PARK MAINTENANCE January 13, 2016 Page 2 Assumptions a) Riverside Park will continue to receive growth in demands for permitted events and from day use visitors. BENEFIT/COST ANALYSIS Operating Costs Annual Cost a) Staff, supplies, contractors, etc. $50,000 CONCLUSION Total Operating Costs $50,000 With the available repair and maintenance funds dedicated to Riverside Park, it is possible that higher future costs may be avoided. RECOMMENDATION That Council direct Administration to update the 2016 Financial Plan as described. S:\DCS\Riverside Park Maintenance_BUS.docx 69

70 Thermoplastic Road Marking Applicator Prepared by: G. Farrow, BBA Streets and Environmental Services Manager and J. Luison Streets and Sign Shop Supervisor 70

71 THERMOPLASTIC ROAD MARKING APPLICATOR January 12, 2016 INDEX EXECUTIVE SUMMARY... 1 TERMS OF REFERENCE... 1 Background... 1 General Goals and Specific Objectives (list highest to lowest in priority)... 2 Strategic Implications... 2 Stakeholders... 2 Assumptions... 2 Alternatives Considered... 2 Capital Costs... 3 RECOMMENDATION... 3 S:\DCS\Thermoplastic Applicator_BUS.docx 71

72 THERMOPLASTIC ROAD MARKING APPLICATOR January 12, 2016 Page 1 EXECUTIVE SUMMARY The Streets and Sign Shop Section has seen steady growth in City road markings in the past years. To help facilitate the growing needs, the City has been testing thermoplastic markings in key areas throughout the City to reduce maintenance costs. This trial has been very successful as the thermoplastic markings are lasting significantly longer than traditional paint. In order to continue with thermoplastic markings, existing staff can apply the material or a contractor will need to be hired. The recommended option is to purchase an applicator to take advantage of applying the thermoplastic markings when needed at a lower cost. TERMS OF REFERENCE Background Under the Streets and Sign Shop Section, the City has provided traffic road marking services throughout the City's road network. The Sign Shop is currently using a low volatile organic compounds (VOCs) paint for all road markings. In the last three years, the Sign Shop staff have tested thermoplastic symbols at a number of locations in place of paint. The results have shown good value as use of this product will reduce maintenance costs and the disturbance to traffic flow since it lasts up to five times longer. The thermoplastic markings have been applied to areas that are high risk and create traffic control issues (e.g., roundabouts) during the painting season. Thermoplastic markings have also been applied to walking and bike paths to help reduce maintenance costs in upcoming years. Each year, the City receives numerous customer complaints with regard to lines that have worn away during the snow clearing season and before new markings are applied in June. By using thermoplastic markings, the City will reduce the number of complaints and the ongoing maintenance costs in difficult areas. With continuously expanding road designs and the implementation of numerous bike- and pedestrian-friendly routes throughout the City, the traffic marking inventory has grown significantly. By purchasing a thermoplastic road marking applicator, the City will be able to maintain and produce quality markings. This equipment will allow the Sign Shop to replace painted markings with thermoplastic in a cost-effective manner. The added value of having the work done in-house is that it will allow projects to be done quickly and the City will avoid large mobilization costs charged by contractors. There have been two recent examples where the mobilization costs were in excess of $10,000. The operating budget for marking applications will be minimally impacted by this new process. The cost of thermoplastic material is higher, but it is easily offset with the reduction in labour and traffic control costs and by not having to reapply markings for up to five years or more. The thermoplastic markings will improve safety in high-risk intersections because of the lack of wear during the winter months. S:\DCS\Thermoplastic Applicator_BUS.docx 72

73 THERMOPLASTIC ROAD MARKING APPLICATOR January 12, 2016 Page 2 General Goals and Specific Objectives (list highest to lowest in priority) Priority General Goal Specific Objective 1 To determine if the City should purchase a thermoplastic applicator 2 To apply thermoplastic markings at key areas throughout the City Strategic Implications To maintain current inventory To meet or exceed current service levels in a safe environment Greenhouse gas emissions will be reduced as the application of thermoplastic would reduce frequency of markings being applied. Stakeholders Streets and Environmental Services Division - 10 Fleet and Mechanic Shop Section - 8 Customers - 7 Assumptions a) Administration sees value in continuing to service the public with maintained road markings. b) Administration sees value in utilizing new equipment to reduce maintenance costs. c) Administration sees value in providing the public with long-lasting, high-quality road markings. Alternatives Considered a) Alternatives that did not come close to meeting the business case's driving general goals/specific objectives: i) Attempting to rent equipment on long-term basis; and ii) Contracting out the thermoplastic marking work. b) Alternatives that were eliminated after more research: i) Reducing the number of markings applied; and ii) Extending the paint marking season. c) The one alternative or a short list of alternatives that merit further consideration: i) Continuing to utilize paint for all inventoried markings. S:\DCS\Thermoplastic Applicator_BUS.docx 73

74 THERMOPLASTIC ROAD MARKING APPLICATOR January 12, 2016 Page 3 Capital Costs Year 1 Total a) Thermoplastic Application Unit $20,000 $20,000 RECOMMENDATION Total Capital Costs $20,000 $20,000 Authorize the purchase of a thermoplastic marking applicator for the Streets and Sign Shop Section at an estimated cost of $20,000. S:\DCS\Thermoplastic Applicator_BUS.docx 74

75 North Shore Transit Exchange Planter Improvements 75

76 NORTH SHORE TRANSIT EXCHANGE PLANTER IMPROVEMENTS December 14, 2015 INDEX EXECUTIVE SUMMARY... 1 TERMS OF REFERENCE... 1 Background... 1 Alternatives Considered... 1 COST ANALYSIS... 2 Capital Costs... 2 RECOMMENDATION... 2 S:\MANAGERS\Budgets\2016 Budget\2016 Additional Requests\2016 Additional Capital Requests\North Shore Transit Exchange Planter Improvements_BUS.docx 76

77 NORTH SHORE TRANSIT EXCHANGE PLANTER IMPROVEMENTS December 14, 2015 Page 1 EXECUTIVE SUMMARY Improvements are required to one of the planter areas of the North Shore Transit Exchange. The improvement would involves removing irrigation lines and filling this area with bricks to match the brickwork of the rest of the transit exchange, which would be completed in TERMS OF REFERENCE Background Due to the high volume of foot traffic around the transit exchange, the south planter, which runs the entire length of the exchange, has very little vegetation growth and often has the irrigation lines become exposed. Risk Management and Bylaws have expressed concerns regarding the tripping hazard of the rough surface and exposed irrigation lines. To reduce the tripping hazard, as well as improve the attractiveness of the exchange, this planter needs to be bricked to match the rest of the transit exchange area. To replace the vegetation that will be lost with this work, four hanging baskets will be added to the transit exchange. The cost of providing and maintaining these baskets fits within the current parks maintenance budget. Planting thorny bushes in this planter was discussed with parks staff as a way to deter foot traffic and increase the number of plants, however parks did not support the addition of any ground vegetation at the exchange due to the high likelihood it would be vandalized or trampled. Improvement in transit infrastructure supports alternative transportation initiatives and reduces the impact on other road infrastructure. Engineering Services will be responsible for the scoping and design of the project. The Trades Division of the Public Works & Utilities Department may be required to construct the project. The Public Works & Utilities Department will be required to maintain the new infrastructure through the life of the asset. Alternatives Considered i) The alternative would be to not add brick to the planters. Thorny bushes could be added to reduce foot traffic, however these will likely be vandalized or trampled and would result in the current condition with the irrigation lines exposed. ii) A second alternative would be to remove the irrigation lines and keep the area as bare dirt or multch.this option is not recommended as some tripping hazards and safety issues will remain and the aesthetics of the exchange will continue to diminish possibly leading to undesired activities to increase at this exchange. S:\MANAGERS\Budgets\2016 Budget\2016 Additional Requests\2016 Additional Capital Requests\North Shore Transit Exchange Planter Improvements_BUS.docx 77

78 NORTH SHORE TRANSIT EXCHANGE PLANTER IMPROVEMENTS December 14, 2015 Page 2 COST ANALYSIS Capital Costs Year 1 Total a) Contractor $18,000 $18,000 Total Capital Costs $18,000 $18,000 RECOMMENDATION Administration recommends that this project be added to the 2016 Financial Plan. S:\MANAGERS\Budgets\2016 Budget\2016 Additional Requests\2016 Additional Capital Requests\North Shore Transit Exchange Planter Improvements_BUS.docx 78

79 BMX Park Project Completion Prepared by: J. Putnam, B.Comm. Parks and Civic Facilities Manager 79

80 BMX PARK PROJECT COMPLETION January 13, 2016 INDEX EXECUTIVE SUMMARY... 1 TERMS OF REFERENCE... 1 Background... 1 General Goals and Specific Objectives... 1 Stakeholders... 1 Alternatives Considered... 2 BENEFIT/COST ANALYSIS... 2 Costs... 2 CONCLUSION... 2 RECOMMENDATION... 2 S:\DCS\BMX Park Project Completion_BUS-NEW 80

81 BMX PARK PROJECT COMPLETION January 13, 2016 Page 1 EXECUTIVE SUMMARY $65,000 is required to complete the relocation of the Kamloops BMX Club (Club) track and amenities from McArthur Island Park to its new location on Ord Road beside the transit maintenance facility. TERMS OF REFERENCE Background In 2013, the City began to plan the relocation of the BMX track and amenities from McArthur Island Park to Ord Road. In 2014, the project budget was $321,000, which provided enough funds to complete the majority of the move, including a new and improved race track, bleachers, fencing, asphalt parking and entrance road, and a utility services extension from the road to the site. This move also created 190 new parking spaces for McArthur Island Park visitors at the former BMX location, which is a significant benefit to the City. The Club moved to its new Ord Road location in 2014 and has been working hard to re-establish its membership, which had dropped due to business disruption and a partially completed facility. Although the facility is functioning, more work is required make it presentable and attractive as a major tournament centre. There are no funds remaining in the original BMX budget. This request would go toward cleaning up the site by adding much needed landscaping ($50,000) and installing a roof structure on the partially completed washroom/concession/storage building ($15,000). Once this is complete, the Club would like to host a national tournament in 2016 or Impact on Other Departments/Divisions This project may require some project management and coordination from the Capital Projects Division. General Goals and Specific Objectives Priority General Goal Specific Objective 1 To complete the original project intent for the BMX facility (a new roof and landscaping) Stakeholders Kamloops BMX Club Executive The current facility is not a tournament centre standard as the washroom/concession building is not ready for occupancy S:\DCS\BMX Park Project Completion_BUS-NEW 81

82 BMX PARK PROJECT COMPLETION January 13, 2016 Page 2 Alternatives Considered a) The one alternative or a short list of alternatives that merits further consideration: i) The only alternative is to maintain status quo, but it may take the Club years to raise enough funds to complete the building and landscape work. BENEFIT/COST ANALYSIS Costs a) Site Completion, Landscaping and Irrigation b) Roof on Partial completed building CONCLUSION Year 1 Total $50,000 $50,000 $15,000 $15,000 Total Costs $65,000 $65,000 Administration recommends providing funds to the Club, as described, to bring the facility to modern tournament standards. RECOMMENDATION To direct Administration to update the 2016 Financial Plan as described. S:\DCS\BMX Park Project Completion_BUS-NEW 82

83 Community Requested Additional Budget Items Line # Item Business Case Operating Budget Impact FTE Amount Capital Budget Impact Notes 1 North Shore Cultural Heritage Tour Plaques Business Case 2,000 3 Pioneer Park Boat Launch Concept Design Business Case TBD 50,000 A construction plan with estimated costs will be brought to Council for approval after the Concept Design is complete. 2 Pickelball and Tennis Courts Improvement Project Business Case TBD 250,000 This request is for $250,000 in 2016 for pickleball and $250,000 for tennis courts in The Pickleball Club will contribute $25,000 in New Rugby Clubhouse at the Tournament Capital Ranch Business Case TBD 50,000 $50,000 is requested for 2016 and $1 million in The Rugby Club will contribute $310,000 in cash and inkind services in

84 City of Kamloops Capital Plan COMMUNITY REQUEST *Please note that a business case has not been prepared for this request; therefore, a full analysis of capital expenses and future operating costs and benefits is not included. If Council directs staff, a business case can be prepared and brought forward prior to inclusion in the Financial Plan. Project Name: Department: North Shore Cultural Heritage Tour Plaques Parks, Recreation, and Cultural Services 1. Description of Work: This is a community driven request from the Heritage Commission that Council approve financial support in the amount of $2, to assist with the installation of 19 plaques for the North Shore Cultural Heritage Tour plaque project. 2. Estimated budget by year: Source of Funds City funds $2,000 External contribution Total Project Cost $2,000 84

85 City of Kamloops Capital Plan COMMUNITY REQUEST *Please note that a business case has not been prepared by City staff for this request; therefore, a full analysis of capital expenses and future operating costs and benefits is not included. Should Council direct staff, a business case can be prepared and brought forward prior to inclusion in the Financial Plan. Project Name: Department: Pioneer Park Boat Launch Concept Design Parks, Recreation, and Cultural Services 1. Description of Work: To improve the use of the Pioneer Park boat launch for recreational boaters and to improve public parking in this area. The plan is also to create a new multi-use trail along the river and beach area, as identified in the Riverside to Pioneer Park Waterfront Management Plan. 2. Project Justification: This project is required based on an increase in use and access to the river for recreational use for boats. This increase in use has created a lack of parking capacity and boat launch access during peak periods. Administration is receiving feedback from concerned boaters about making the boat launch easier to use. This project is supported by user groups such as recreational boat users and the Dragon Boat Club. Timing is important to carry out this project, and any new construction of the boat launch dock and area has to be conducted in the late fall/winter seasons, when the water level is lower. If Council approves the plan, Administration proposes to phase this project over two phases in 2016 and 2017, as follows: Phase 1 (2016) - Consultation and Design - During this phase, Administration will conduct a site review, create preliminary designs and plans, obtain government approvals, and work with user groups. The total cost will be $50,000. Phase 2 (2017) - Administration will bring a complete construction plan and expected costs forward to Council. Council will decide at that time whether or not to proceed with the Pioneer Park Boat Launch and Park Area Upgrade. Improving this amenity supports livability by providing the public with better access to Kamloops waterfront areas. S:\DCS\Pioneer Park Boat Launch Capital Request_WRD.docx 85

86 3. Impact on Other Departments/Divisions: Capital Projects Division Trades Division Utility Services Division 4. Alternatives: None. 5. Estimated budget by Year: Source of Funds City funds $50,000 External contribution Total Project Cost $50,000 S:\DCS\Pioneer Park Boat Launch Capital Request_WRD.docx 86

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88 City of Kamloops Capital Plan COMMUNITY REQUEST *Please note that a business case has not been prepared for this request; therefore, a full analysis of capital expenses and future operating costs and benefits is not included. If Council directs staff, a business case can be prepared and brought forward prior to inclusion in the Financial Plan. Project Name: Department: Pickleball and Tennis Courts Improvement Project Parks, Recreation, and Cultural Services 1. Description of Work: To install six new pickleball courts at Riverside Park between the existing tennis courts in 2016 and upgrade the existing tennis courts and the practice facility in Project Justification: Introduction Pickleball has become one of the fastest growing sports for seniors. There is a need for more courts to supplement a tournament venue in addition to a purpose-built pickleball facility at McDonald Park to host local, provincial, and national events. This falls under the Tournament Capital Program in growing sports locally and providing world-class facilities for tournaments. This proposed work includes creating six new pickleball courts, resurfacing the existing tennis courts, upgrading lighting and electrical, installing new fencing, making water improvements, relocating the practice tennis court amenity, and undergoing other trail and landscape rehabilitation. Proposed Work Plan Phase 1 (2016) - Remove the natural earth berm, install lighting and related infrastructure, and construct six pickleball courts between the existing tennis courts. The estimated cost is $225,000, plus a $25,000 contribution from the Kamloops Pickleball Club ($250,000 in total). Phase 2 (2017) - Resurface the tennis courts, install additional potable water fountains and hose bibs, relocate the practice tennis court amenity to the south side of Tennis Courts 1 and 2, and rehabilitate the landscape and trail where the practice tennis court is being moved from (cost $250,000). 3. Impact on Other Departments/Divisions: The Utility Services and Capital Projects Divisions will require project coordination and other services. S:\DCS\Pickleball and Tennis Courts Capital Request_WRD.docx January 13,

89 4. Alternatives: The alternative is maintaining status quo, but the tennis courts are highly used; therefore, there will not be an opportunity to share court space for pickleball at Riverside Park on a consistent basis. 5. Estimated budget by year: A community group has proposed a $25,000 contribution towards this project. Source of Funds City funds $225,000 $250,000 External contribution $25,000 Total Project Cost $250,000 $250,000 S:\DCS\Pickleball and Tennis Courts Capital Request_WRD.docx January 13,

90 City of Kamloops Capital Plan COMMUNITY REQUEST *** Please note that a Business Case has not been prepared by City staff for this request; therefore, a full analysis of capital expenses and future operating costs and benefits is not included. Should Council direct staff, a Business Case can be prepared and brought forward prior to inclusion in the Financial Plan. Project Name: New Rugby Clubhouse at the Tournament Capital Ranch Department: Parks, Recreation and Cultural Services 1. Description of Work: Introduction The City and the Kamloops Rugby Club (Club) have been working in partnership to develop a modern, tournament-ready rugby centre at the Tournament Capital Ranch since Currently, there are two modern rugby fields and a temporary change room facility with no water/sewer services. The Club's long-term goal is to build a clubhouse/washroom/change room facility that meets the needs of the sport and the City's Tournament Capital brand. Phase 1 Administration has identified surplus, City-owned portable trailers that can be relocated to TCR for the Club's use after September These temporary facilities will provide basic needs for assembly space and showers, change rooms, and washrooms. We estimate the relocation and set-up fee will be $50,000, which will be required in Phase 2 The Club is seeking to build a new clubhouse facility at the Tournament Capital Ranch in The facility will be operated by the Club and made available to other sports and community groups on a rental basis in order to generate revenue to support ongoing operations of the facility and the Club. Plans for the new facility will include change room facilities for home and visiting teams with showers and washrooms, public washrooms, a social space where players can meet after practices and games with a small kitchen for food preparation, a hall/banquet facility for club events and rentals to other groups to generate income for the club, office space for club administration, storage for club equipment, and associated service upgrades (see attached business plan for architectural drawings). S:\DCS\Rugby Clubhouse TCR Capital Request_WRD January 12,

91 2. Project Justification: The new facility will allow the Club to rebuild programs, such as mini rugby and youth rugby, and will provide a first-class facility that the Club can use to work towards making Kamloops the hub of rugby in the Interior of BC. Without a new clubhouse, these programs and the longevity of the club will be in jeopardy. 3. Impact on Other Departments/Division: This project may involve assistance from the Capital Projects Division in the construction management process and the Utility Services Division with the provision of temporary sewer and potable water services currently at the site. 4. Alternatives: The alternative would be to continue to utilize the temporary trailers in place for an extended period; however, they will require further repair and maintenance in future years. This alternative option would require $50,000 from the City in Estimated budget by Year: The Club has identified $310,000 in cash and in-kind services that are available to the project. Administration recommends an additional $50,000 in 2016 from the Gaming Reserve to invest in relocating temporary, City-owned trailers/shower facilities to the site. Source of Funds City funds 50, ,000 External contribution 310,000 Total Project Cost $50,000 $1,000,000 S:\DCS\Rugby Clubhouse TCR Capital Request_WRD January 12,

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93 Request for Funding and Business Plan Kamloops Rugby Club Table of Contents Our Goal... 2 Request for Support from the City of Kamloops... 2 The Importance of a Confirmed Commitment from the City... 3 Fund Raising and Expenses to Date... 3 The KRC Building Committee... 3 KRC Business Plan... 4 Business Plan - Year Business Plan - Year Business Plan - Year and beyond... 7 Youth Rugby Development... 8 University Players... 8 Kamloops High School Teams... 8 Under-16 Teams and Under-18 Teams... 8 Fun Rugby (Mini s)... 9 Who is the Kamloops Rugby Club? Our Vision Our Mission Statement Our Commitment Appendix 1 Design and Layout of Facility Appendix 2 Operating Budget for new Facility Page 1 of 16 93

94 Request for Funding and Business Plan Kamloops Rugby Club Our Goal The Kamloops Rugby Club is seeking to build a new clubhouse facility at the Tournament Capital Ranch. This facility will allow us to rebuild club programs such as Mini Rugby and Youth Rugby, and will provide a firstclass facility which we can use to work towards making Kamloops the hub of rugby in the Interior of BC. This facility will be operated by the Rugby Club, and as documented later in this document, will made available to other sports and community groups on a rental basis in order to generate revenue to support ongoing operations of the facility and the rugby club. Request for Support from the City of Kamloops The Kamloops Rugby Club (KRC) is seeking financial and logistical support from the City of Kamloops to build a new clubhouse facility at the Tournament Capital Ranch, in order to provide the basic needs that are required to sustain and grow the sport of rugby in the interior. The estimated retail cost of the basic needs facility (see appendix 1 for details) is $1,000,050 (as per the Preliminary Construction budget provided separately from this document). To date, the rugby club has raised over $160,000 in capital, and has received approximately $150,000 of inkind donations, for a total of $310,000 that the club is able to contribute to this project. We continue to look for other potential sources of funding and in-kind donations to support the project. Based on the cash and in-kind donations, the KRC is able to contribute $310,000 to the project, reducing the overall retail cost to $690,000. Therefore, our request from the city is as follows: A capital grant of $690,000 Waive all DCC charges Logistical support during construction In addition, the development of a fully licensed water treatment system for the entire TCR site is essential to this project. The current use of a cistern at the Slo-Pitch venue is considered a temporary solution by IHA expansion of the use of cisterns is unlikely to be approved. This is an issue that will affect all users of the TCR, not just rugby. Page 2 of 16 94

95 Request for Funding and Business Plan Kamloops Rugby Club The Importance of a Confirmed Commitment from the City We continue to look for sources of funding and non-financial support in order to reduce the overall cost of the project, and anticipate that by having a commitment from the city for financial and logistical support, our fund raising efforts will be even more successful in raising additional capital for the project. Why is this important? When approaching potential sponsors for support, before we even begin to show them our concept, we are often asked about the city s involvement in the project (apart from owning the property of course). Our response to date has been that we continue to work with the city on options, but nothing is confirmed at this point, which often results in a smaller donation or a suggestion to come back when we have a confirmed commitment. To clarify, we are NOT implying that our fund raising to date has been impeded in any way by the City we recognize that it is our responsibility to do everything we can to fund raise for our project. But we believe there are a number of potential sponsors in the community who would be more willing to contribute once we can show that KRC and the City are working together, and there is commitment from both sides. Fund Raising and Expenses to Date Through a grass-roots level fund raising campaign, the KRC has raised over $175,000 in cash to support the project over the past 18 months. Another $135,000 has been pledged as in-kind donations, including: Cash pledged and yet to be received Materials at cost (savings from what retail would be) Equipment rentals and / or labor at no cost KJHM Ajax is our largest sponsor to date, donating $15,000 in 2014, with another $5,000 pledged for We are also continuing to seek donations from the Kamloops community, as well as through various grants and donations from public / private organizations, foundations, and other similar sources. To date, the club has spent approximately $35,000 on design work for the new facility, $2,500 on promotional materials for a sponsorship program, and approximately $500 on miscellaneous administrative expenses related to the project. The KRC Building Committee In September 2013, the Rugby Club began planning for the new facility. A steering committee was formed, made up of past and present members of the club. Current committee membership includes: Andy Fraser, Committee Chair and KRC Alumni Chris Chan, Committee Member and Current KRC president Greg Thomson, Planning and Construction Manager and Current Player Kirby Robillaird, Design Consultant and KRC Alumni Nick Smith, Financial Management and current player Tony Stobie, Committee Member and KRC Alumni This committee meets on a regular basis and reports back to the KRC Executive Board. Page 3 of 16 95

96 Request for Funding and Business Plan Kamloops Rugby Club KRC Business Plan This business plan is intended to provide the reader with information about the Kamloops Rugby Club s plans to build a new facility at the Tournament Capital Ranch, and how we will operate the club over the next 5 years. Our current facility is lacking many of the basic amenities you would expect to see at a sports facility, such as readily-available potable water, segregated changing facilities for men and women, or for home and visiting teams, shower facilities, and public washrooms. Plans for the new facility will include: Change room facilities for home and visiting teams, including showers and washrooms Public washrooms Social space where players can meet after practices and games, with a small kitchen for food preparation A hall / banquet facility for club events and rentals to other groups to generate income for the club Office space for club administration Storage for club equipment The business plan of the Kamloops Rugby Club is hinged upon three main items: 1. The construction of a new facility at the Tournament Capital Ranch, to provide a more functional operating base for future club program development. 2. Expansion of Youth and Mini Rugby Development Programs to attract the next generation of athletes for the club 3. Rental of the clubhouse facility to other sports and community groups in order to generate revenue to support the ongoing operations of the club, the facility, and the programs we run. As evident in the province s larger and older sporting organizations, a functional clubhouse is paramount to success: it provides the venue for families to offer support and cheer, for participants of all ages to commune, and for the community to gather. The most successful sporting organizations in the province are, not by coincidence, also owners of the most preeminent homes in the province. Once a sound, attractive, and functional facility exists, the club is confident that we can make The Tournament Capital Ranch the premier rugby destination in the BC Interior. Youth programs can grow with the security of a home, and the knowledge that each level of rugby leads finally to that elite level, hosted on the very pitch on which the kids practice each night, and from the very clubhouse where parents have watched and cheered them along throughout their career. All activities and time frames listed are dependent on having a functional facility in place. Future growth of the club is almost entirely dependent on this. Please note that this may change somewhat depending on what happens with the KXA. Page 4 of 16 96

97 Request for Funding and Business Plan Kamloops Rugby Club Business Plan - Year Year 1 is a new beginning. The basic needs clubhouse facility is completed, and the club begins to work on increasing membership including fan base, development of youth rugby programs, and marketing our facility within the community. We will: Recruit new players both men and women - through marketing the club at TRU and in local high schools. Year 1 Targets: o Field two full men s sides which will require at least players o Increase women s team membership by 20% or approximately new players Work with other interior clubs to develop a junior rugby league (eg U19, U17) to provide potential future senior players with an opportunity to play competitive rugby. Restart our mini rugby program for kids age 4 to 13, which has been inactive since our move to the TCR. At its peak, our previous mini rugby program consistently had over 60 kids registered in different age groups. Encourage alumni to come out and support the club through incentive programs, reduced membership rates, social activities specifically for alumni, and of course the opportunity to watch a rugby game from the stands of the new facility. Year 1 targets: o Increase social membership by 25%, or approximately members Explore the market to determine what we can reasonably expect to earn through use of the facility for club social events and rental of the clubhouse on an annual basis weddings, re-unions, Rayleigh community events, and other social activities that require a medium size hall. Year 1 targets: o Host at least 3 social events open to all club members and guests; spring, summer and fall events o 3 to 5 rentals to the general public, community groups and similar organizations. Volunteers will manage all clubhouse rentals. Liquor licensing will be on a case-by-case basis, given the complexities of obtaining a commercial license. Reboot the Purple Haze Rugby Tournament, a social tournament that in the past has seen up to 6 men s and 6 women s teams attend. Use the new facility as the central hub for RugbyFest, the high school tournament that the club has run for the past 15 years. In 2014, the club earned almost $4000 from this event, without a proper facility and using high school fields. We estimate an increase in teams registering for the event of about 10% as we will heavily market to these teams past tournaments have seen up to 40 teams participate. Provide info to our overseas contacts about the new facility, and work to host at least one overseas team each summer. Establish a detailed operating budget for maintaining the facility and generating income for the club to support our programs Maintain the Kamloops Rugby Club Legacy Fund and Scholarship/Bursary Fund. Page 5 of 16 97

98 Request for Funding and Business Plan Kamloops Rugby Club Business Plan - Year is the 50 th year of operation for the Kamloops Rugby Club! Year 2 is our growth year. The clubhouse is established, membership is on the increase, and we expect to generate more revenue from facility rentals. We will: Plan and host the 50 th Anniversary Celebration of the Kamloops Rugby Club. Continue with our player recruitment and alumni programs, anticipating a modest 5% increase in player base and 10% increase in alumni. Junior boys and girls teams (U18) will be formed to provide high school athletes with a place to continue their rugby career. Begin development programs for coaches and referees, where the club will provide sponsorship for anyone who is working towards certification in either area. Anyone involved in coaching rugby at any level in BC must be certified, and in order to grow our young player base in the area we need more coaches. Getting more coaches into the community at the high school and mini rugby level (mini rugby is ages 4 to 12 is key to this. And of course without qualified referees Continue to market the facility as a place for socials events. Based year 1 results, we hope to increase the number of rentals to at least 12 per year. These rentals will continue to be managed on a volunteer basis until such time as demand requires a different operating model such as a paid facility manager. Liquor licensing will be done on a case-by-case basis. Continue to host the Rugbyfest and Purple Haze tournaments, or variations thereof. Work with the BC Rugby Union to explore opportunities for hosting higher level events such as provincial rep team camps and exhibition games. Continue to develop our junior programs, including the addition of a junior girls team Continue to refine and revise the operating budgets for all rugby club activities. An estimated operating budget for year 2 is shown in Appendix 2. Page 6 of 16 98

99 Request for Funding and Business Plan Kamloops Rugby Club Business Plan - Year and beyond With a baseline established for rental revenue, player base and alumni membership, we will continue to develop new coaches and referees, expand our junior and mini rugby programs, and continue to seek ways to promote rugby in Kamloops and surrounding areas. Projections for revenue growth, increase in membership etc are difficult to estimate at this point. Being a relatively small club in the BC Rugby Union, we intend to create reasonable and attainable goals for growth in revenue and membership each year. We will: Our coaching development programs will help increase the number of players Our alumni numbers will continue to slowly grow as existing players retire from active duty Our Youth and Mini rugby programs will continue to grow. Plan a U18 International Tour with the continual plan of an International Youth Rugby Tour every two years, and hosting a group of International teams on every other year. Undertake a senior men s and senior women s tour to mark the celebration of 50 years of rugby in Kamloops. Increase the amounts awarded and the number of scholarships provided to the University level members of the Kamloops Rugby Club, including high school students who intend on attending University. Increase the number of participants at every level of rugby by 10 percent annually. Continue to market the facility as an ideal venue for a range of sporting and community events. Page 7 of 16 99

100 Request for Funding and Business Plan Kamloops Rugby Club Youth Rugby Development The building of a sports club facility is essential to the continued development of youth rugby in the Kamloops area. With a completed facility, spectator areas for parents to stay while their children participate in rugby will be available, especially critical with the distance from the Kamloops City Centre to the Tournament Capital Ranch. University Players Each year, the Kamloops Rugby Club continues to attract more and more Thompson Rivers University students as rugby players. The KRC offers a scholarship/bursary program to players who are currently attending University. Finances for the scholarship/bursary were funded by events held at the previous club facility. Over the past 18 years, the KRC has awarded over $30,000 in scholarships and will look to double the yearly contributions with the new club operations. Kamloops High School Teams The Kamloops Rugby Club has a close partnership with each of the Kamloops area high school teams - all of the high school rugby coaches in Kamloops are KRC members or alumnus. The high school rugby year is highlighted by Provincial Championships and by RugbyFest which is a large tournament hosted by the KRC that attracts an average of 30 teams. With no clubhouse currently available, the KRC hosts the tournament in association with high schools and the City of Kamloops, who together provide adequate fields, wash facilities, and change rooms. Once construction on the new Sports Club Facility is complete, it will enable the KRC to build RugbyFest into the premier high school tournament in Canada. The Kamloops Rugby Club will continue to interact with Kamloops area high schools by providing coaches, referees, and volunteers. The KRC s involvement with Kamloops area high schools is also demonstrated by the sustenance of the Under-16 and Under-18 rugby teams that continue to play in succession with the high school season. Under-16 Teams and Under-18 Teams Each year, the British Columbia trials occur in July for Under-16 and Under-18 men s and women s competition. The KRC has been successful in fielding competitive teams at these levels through a continued and concerted effort toward the development of rugby in Kamloops. The ongoing development and growth of these youth teams are essential to feed the men s and women s provincial championship teams. In 2013, the Kamloops Rugby Club participated in a Rugby Exchange Tour with junior teams from Ottawa. The KRC s Under-16 team travelled to Ottawa and southern Ontario to compete against high school teams that travelled to Kamloops for RugbyFest. In March 2014, the team that travelled to Ottawa in 2013 toured England and Wales on a 10-day tour, playing against various club and school teams. Two of these teams toured to Canada in July 2014, and came to Kamloops to play the U18 boys. Page 8 of

101 Request for Funding and Business Plan Kamloops Rugby Club Fun Rugby (Mini s) The Kamloops Rugby Club established a mini rugby program 2002, which at its peak, had over 100 kids aged 4 to 13 involved in rugby. With the move to Rayleigh (and the loss of the old clubhouse), our mini rugby program has seen a significant drop in registration numbers. As an interim measure, we have partnered with TRU Sports Camps to hold week long mini rugby camps as part of their summer program. Once we have established a new facility with all the amenities that parents of young children would expect shelter from the weather, proper bathroom facilities, access to concession we will reboot our mini rugby program and build it back into a strong and successful kids sport program. The program also provides several of the Kamloops Rugby Club high school and university aged players an opportunity to gain valuable coaching and volunteer experience. Page 9 of

102 Request for Funding and Business Plan Kamloops Rugby Club Who is the Kamloops Rugby Club? The first evidence of rugby in Kamloops comes from an article in the Daily Sentinel in 1899 reporting the Rugby Football Club was seeking players for a match against Ashcroft. During the early 1900 s matches were also contested against Revelstoke and several clubs in Vancouver. From , several matches were played against Vernon, Kelowna and Walhachin. With the start of World War I, rugby disappeared from the Kamloops area until 1968, when the present club was formed. The KRC has had many homes since 1968, moving around the city to various field locations, including the former Macarthur Park Secondary School field and the Kamloops Indian Band Residential School field. We have also had a wide variety of clubhouses including the basement of a few players houses, a classroom at the Indian Residential School, an unoccupied bus service bay, an old house on Lorne Street, our previous home at the KXA and now at the Tournament Capital Ranch in Rayleigh. The city and the club have a longstanding relationship and continue to work together on finding ways to develop our sport in Kamloops and surrounding areas. The club has hosted provincial and national level events including the 1993 Canada Summer Games, the 2006 BC Summer Games, provincial level high school playoffs, as well as many senior men s and women s league and playoff games. We provide coaching support to local high school teams, and have run the annual Rugbyfest high school tournament for the past 15 years. We have taken two U18 Boys teams on tours to the UK (2010 and 2013), and currently operate a mini-rugby program for kids 4 to 13 as part of the TRU Wolfpack Sports Camp program. Currently we have 1 men s and 1 women s team operating in the BC Rugby Union. Our men s team won a provincial 3 rd division title in 2012, and our women s team won the BC 1 st Division Championship in The Kamloops Rugby Club is a member of the BC Rugby Union, currently competing in Senior Men s and Women s leagues against teams from Kelowna and various locations in the Fraser Valley and Greater Vancouver area. Page 10 of

103 Request for Funding and Business Plan Kamloops Rugby Club Our Vision To create an environment where rugby can be played and enjoyed by all ages, gender, and talent levels. Our Mission Statement To develop and grow all levels of amateur rugby in the City of Kamloops and area through a commitment to providing competitive and recreational rugby teams, with an emphasis on fitness, fair play, and cooperation. To be recognized as the premier rugby club in the Interior by striving for and achieving excellence both on and off the pitch, through play, coaching, volunteering, community involvement, facilities, and program development. Our Commitment The Kamloops Rugby Club is committed: To cultivate all levels of rugby in Kamloops, with a focus on youth participation and player development; To establish and maintain the facilities necessary to nurture a steadily growing and substantial rugby club; To provide the opportunity for athletes to ascend to and participate in a higher level of sport, through promotion to provincial and national amateur teams, associations with professional teams, travel to international rugby clubs, and placement on other brethren clubs; To promote the sport of rugby leading into its Olympic induction in 2016; and To represent the City of Kamloops, the British Columbia Rugby Union, and amateur athletics with dignity, class, and pride. Page 11 of

104 Request for Funding and Business Plan Kamloops Rugby Club Appendix 1 Design and Layout of Facility The drawings shown in this section are based on a two-level design for a new facility, with the lower level addressing the clubs basic needs and the upper level providing a banquet hall facility which would be used for public rentals and fund raising events. Estimated cost of the basic needs facility (lower level) as shown here is $750,000. That cost is based on having a general contractor do the entire project, and does not take into account in-kind donations of materials or skilled labor that could lower the overall cost of the project, The club continues to reach out to our membership and the local business community for such support in order to reduce the overall financial cost of the project. 1 Home Team Change Room s Separate Change room and shower facilities for Men and Women. Currently, we share a common change room area, which doesn t always provide the appropriate level of privacy for either team. 2 Match Officials Change room This is a separate changing area for Referees, which would also provide them with a secure space in which to lock their personal items while officiating. 3 Interior Storage Area Currently, we are using the two Sea Cans for all of our storage needs. This space would provide a place for items such as balls, tackling pads and bags, goal post pads etc. This may allow us to get rid of one of the Sea Cans. This space will also provide space for janitorial supplies. 4 Visitor Change Rooms This is probably the biggest issue we have at the moment providing our visiting teams with a proper place to change before and after the games, including having a shower. Having this option will encourage visitors to stay a little longer after the games so we can provide some proper hosting, and rebuild the rugby-spirit which we are currently lacking. 5 Meeting Room / Office Currently, club executive meetings are held at the KSC office (subject to availability), or at BCLC (subject to approval). In addition, club records such as Financial Statements and meeting minutes, and club memorabilia such as photo albums and other historically significant club items are stored at various club members house, or are in currently in storage at Interior Vault. This space would provide a place for the executive to meet, and would also serve as an office / library space for the club. 6 Multi-Purpose Room This would serve as the social center for the club, where our members could gather after practices and games and socialize. We could host small social events from this space, such as watching World Cup 2015 games live, SuperBowl, Grey Cup etc to raise funds to support the clubs operations. This Page 12 of

105 Request for Funding and Business Plan Kamloops Rugby Club is also where we would provide food and beverage service to visiting teams, spectators etc. It will allow us to once again be able to display pictures, trophies, plaques etc, all of which help to support and build the sense of camaraderie and club spirit which is a huge part of the game of rugby. 7 Service Area This is where we would provide food and beverage service. Coolers, an ice machine, and a small stove would be installed here to allow us to provide food and beverage service to members, visiting teams and spectators. 8 Public accessible washrooms This is another of our bigger issues providing our spectators with a clean, sanitary washroom facility, which we currently don t have. + Other Areas These areas are associated with the two-level design as noted previously. Page 13 of

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