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3 Table of Contents Capital Budget and Forecast 5 One Capital Budget 5 Long-term Capital Plan 7 Programs of Work 9 Corporate Administration 11 Contaminated Sites 17 Downtown Implementation 20 Economic Development 24 Full Corridor Reconstruction 27 Stormwater Management 30 Transportation 33 Wastewater Management 37 Water Services 41 Emergency Services 45 Active Transportation 48 Parks & Open Spaces 51 Recreation and Culture 55 Transit 59 Solid Waste 62 Appendix 1: Debt Continuity Schedule ( 000s) 66 Appendix 2: Council Shared Agenda 67 Appendix 3: 2018 Project List and Forecast Summary 68 Appendix 4: Reserve Fund Continuity (forecasted) Capital Budget and Forecast 3

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5 Capital Budget and Forecast The following elements were considered by staff when prioritizing capital investments for 2018 and identifying investments for 2019 through Health and safety of our community Legislated or regulatory environment mandated Contractual obligations Council Shared Agenda, previous Council decisions and the Corporate Administrative Plan Enterprise Risk Management Criterion Ensure there is capacity to successfully execute capital projects One Capital Budget For the first time we are providing Council with a single, fully integrated capital budget for approval separate from the respective Operating budgets that fund the various capital reserves. The 2018 Capital budget of $90,788,062 is funded from numerous sources and combining all projects into one document demonstrates the complete integration of those funding sources. The capital budget will also be approved in advance of the Operating budget, which further demonstrates the distinction between capital reserve transfers (operating budget) and capital expenditures (capital budget). As we work to achieve sustainable levels of capital funding for all City assets this distinction will assist in focusing on the long-term funding needs vs. the short-term project priorities. In line with the recently approved capital transfer allocation policy, the ten year forecast shows the tax funded reserves being closely aligned with the policy. Figure 1, Tax Funding Allocation % 12% Infrastructure Renewal, 79% City Building, 9% Growth, 12% 79% The total 2018 budget, including all sources of funding, is heavily focused on infrastructure renewal, with 79 per cent of the requested budget going towards projects that will provide for the replacement, renewal or reconstruction of existing City assets. These projects ensure that the City is able to deliver services while maintaining health and safety standards and meeting legislative requirements. The 17 per cent of the budget attributed to growth is primarily funded from Development Charges and supports projects required to meet the increased demands on City services by new residents and businesses. The 4 per cent of the budget invested in City building reflects ongoing projects to enhance City services to improve the overall benefit to all citizens Capital Budget and Forecast 5

6 Figure 2, 2018 Capital Expenditure Type Figure 3, Capital Expenditure Type 17% 4% 26% 10% 64% 79% Infrastructure Renewal, 79% City Building, 4% Growth, 17% Infrastructure Renewal, 64% City Building, 10% Growth, 26% The recommended Capital Budget and Forecast represents administration s response to the challenge of balancing a wide and complex range of short-term and longterm needs within existing resources. The 2018 capital requirements are 100 per cent funded based on current funding levels meaning that through prioritization, some projects were deferred to future years. The approval of the Dedicated Infrastructure Levy in 2017 enabled the City to step in the right direction towards funding tax supported capital at a sustainable level but we have not yet met this target. Capital reserves are important to address unexpected events such as asset breakdown, partnerships with other levels of government such as GO/Metrolinx and to plan for long term large asset replacement such as major facilities. Part of the sustainable funding approach is to ensure capital reserves are built to accommodate these activities and to mitigate against fluctuations in the tax rate in any given year. The Dedicated Infrastructure Levy assists in building tax supported funding to this sustainable level based on a 100 year capital replacement forecast. Reserve Fund Forecasted Balances Tax Funded 2018 Year End Contaminated Sites $133,000 Infrastructure Renewal $2,550,000 Growth $1,050,000 City Building $250,000 Rate Funded Stormwater $50,000 Wastewater $50,650,000 Water $31,175, Capital Budget and Forecast 6

7 Long-term Capital Plan As previously highlighted the Capital forecast is not fully funded, the main shortage in funding is related to tax funded transfers from operating. Even with a continuation of an annual 0.5 per cent increase via the Dedicated Infrastructure Levy until 2026 the level of funding would not be sufficient to accommodate all the projects identified. Significant re-sequencing of projects is required in order to make the long-term capital plan sustainable. This work will be carried out by staff throughout 2019, with interaction with Council to discuss impacts to project timing and scope. The goal is to provide Council with a realistic and fully funded capital forecast as part of the 2019 Capital budget. One key element to this forecast is funding certainty; Councils commitment to the annual approval of a 0.5per cent increase in the tax levy to provide additional funding to capital reserves until Without certainty in the base funding assumptions, the capital forecast to be built by staff will not be meaningful. Staff will be seeking clarity on this through the operating budget deliberations in December Debt The appropriate use of debt to cash flow large scale projects is a key part of the long-term capital plan. Currently forecasted in the 10 year plan is the use of debt for three significant projects; South End Community Centre ($43,400,000), new Main Library ($35,000,000) and Downtown Redevelopment ($9,000,000). Current Approved and Forecasted Debt Funding ( 000s) Table 1, Current Approved Obligations Description Year of Issue Amount Tax, DC or Other Previously issued debt Various $133,495 Various Previously approved 2019 $28,349 Tax Previously approved 2019 $12,200 DC Total $181,193 Table 2, 2018 Proposed Description Year of Issue Amount Tax, DC or Other Fuel tank 2019 $250 Tax replacement Total $ Capital Budget and Forecast 7

8 Table 3, Forecast Description Year of Issue Amount Tax, DC or Other South End Rec 2020 $11,400 Tax Centre South End Rec 2020 $32,000 DC Centre Downtown Library 2022 $35,000 Tax Downtown 2022 $9,000 Tax Redevelopments Total $87,400 In addition, the City is reserving a portion of debt capacity for the potential purchase of land needed as per the facility needs assessment mentioned earlier. For complete debt continuity schedule see appendix Capital Budget and Forecast 8

9 Programs of Work The following programs have been laid out to more closely align with front facing service delivery. This is intended to provide the public and Council with a clearer picture of the capital needs of the City s core services. Each program has a lead area(s) identified but is supported by a number of departments. New for 2018 is the Corporate Administration Program, this program is focused on providing the capital infrastructure that City departments rely on to provide services to their customers. The departments that support this program are focused on key initiatives to support the long-term operations and efficiency of the corporation. Operating Impacts City Building and Growth projects directly impact department operating budgets in order to support or deliver the enhanced or expanded service projects that will have a direct impact on future operating budgets have been identified. These items will come forward as part of the base budget and not as individual expansions as part of the 2019 operating budget. Departments continue to work at projecting out long term impacts of future capital work as well as the impacts of delaying capital projects into future years. As the 2019 capital budget is developed, these items will be refined and shared as part of the long-term capital plan. Table 4, 2019 Operating Impacts Program of Work Division 2019 Operating Impact Corporate Administration IT Licencing $80,000 Corporate Administration Corporate Asset Management $60,000 Downtown Implementation Parks Operations $15,000 Transportation System Road & Right of way $28,700 Water Services Water Services $209,600 Active Transportation Parks Operations $14,160 Parks & Open Spaces Parks Operations $7,500 Transit Mobility Transit $145,000 Total Tax Supported $350,360 Total Non-tax Supported $209, Capital Budget and Forecast 9

10 Table 5, Directory of Programs of Work Program of Work 2018 Capital Budget 2019 Operating Impact Page Corporate Administration $6,601,600 $140, Contaminated Sites $2,645,000 $0 17 Downtown Implementation $6,704,000 $15, Economic Development $625,000 $0 24 Full Corridor Reconstruction $20,440,000 $0 27 Stormwater Management $1,295,000 $0 30 Transportation $5,705,000 $28, Wastewater $9,737,700 $0 37 Water $15,320,060 $209, Emergency Services $3,523,700 $0 45 Active Transportation $1,214,000 $14, Parks & Open Spaces $5,195,500 $7, Recreation & Culture $2,201,200 $0 55 Transit $6,460,802 $145, Solid Waste $3,719,500 $0 62 Total $90,788,062 $559,960 Each program contains highlights of the 2018 projects, a summary of 2018 budgets and funding and a summary of the forecast. For additional details see appendix 3. Abbreviations used in the Programs of work Corporate Services Public Services Infrastructure, Development and Enterprise CS PS IDE Capital Budget and Forecast 10

11 Corporate Administration Lead departments: Engineering and Capital Infrastructure, IDE Facilities Management, IDE Information Technology, CS Planning, Building and Urban Design, IDE 2018 Capital investment: $6,601, Operating budget investment: $140, to 2027 Capital investment: $52,881,405 Figure 4, 2018 Capital Expenditure Type 6% 3% Figure 5, 2019 to 2027 Capital Expenditure Type 11% 2% 91% Infrastructure Renewal, 91% City Building, 6% Growth, 3% 87% Infrastructure Renewal, 87% City Building, 2% Growth, 11% Description Focused on ensuring the overall administrative operations of the corporation are able to effectively deliver service and guidance to the City s service delivery areas. Four key areas: Corporate Asset Management Facilities Management Information Technology Planning, Building and Urban Design The Corporate Asset Management division through the implementation of the asset management program provides better accountability, sustainability, risk management, Capital Budget and Forecast 11

12 service management and financial efficiency. This is accomplished by leading and assisting service areas through the exercises required to develop a comprehensive asset management plan. These include, risk assessments, inventory collection and recording, asset condition assessments, level of service studies and integrated asset investment decision making. The Facilities Management department is responsible for ensuring the ongoing operations of all City facilities, ensuring that all health and safety, accessibility and operational needs are met. This includes planning for the long-term needs of service areas. One current focus is on the need to replace a number of significant facilities within the next 10 to 20 years; this includes main operating facilities for Operations, Park Operations, Fire, Paramedics and Transit. Corporate Facilities Management is currently undertaking a comprehensive space needs assessment involving all these groups as well as considering impacts to other facilities. The outcome of this study will inform capital needs over the next 20 years and will be reflected in the long-term capital plan presented as part of the development of the 2019 capital budget. The Information Technology department is working to implement the final stages of the Corporate Technology Strategic Plan that was approved several years ago. Completion of this plan will see the City having introduced new technology and enhanced capabilities as well as maximizing the value of current systems through improved integration and expanded capacity. This work will allow service areas to access information easier, provide better information and plan for the future with more reliability. The Planning department is responsible for leading and coordinating a number of studies and plans related to the City s Official Plan with respect to development of policies and plans as well as the implementation of policy directions through the development of manuals/guidelines/area specific studies. These plans have a significant impact on the City s growth related infrastructure needs based on levels of intensification and zoning policies. Further these plans contribute to the assumptions used in setting development charge rates; a significant capital revenue stream for the City. Each department ensures a consistent corporate approach with respect to the assets under their area of expertise. Where applicable, service specific capital budgets related to facilities, equipment and planning have been included in the appropriate program of work Capital Budget and Forecast 12

13 Benefits and Risks Providing corporate standards and consistency in these areas ensures that citizens experience a consistent look and feel in there interactions with the corporation. Risks of not ensuring corporate approach to these areas may lead to incompatible systems and strategies which may lead to decreases in overall service efficiency and increased costs of delivery. Facilities Management Enhancing community experience by maintaining the buildings in good working condition Ensuring that the City is able to provide services without interruption to laid out programs. Providing the functions needed, at the right levels of comfort, so that staff are able to maintain the levels of service that they are required to Ensuring that these facilities are accessible to community members with special needs and comply with Accessibility for Ontarians with Disabilities Act requirements Providing a safe environment for community in keeping with Crime Prevention Through Environmental Design (CPTED) requirements Ensuring facilities are sustainable and efficient in terms of energy and water usage Delays in replacement and repair of facilities can lead to increased operating costs Prevention again lost revenue due to unscheduled or unplanned shutdowns Human rights challenges where accessibility requirements do not meet the current legislation can be costly i.e. Accessibility for Ontarians with Disabilities Act(AODA) or Facility Accessibility Design Manual (FADM) Information Technology Completion of critical work to provide the benefits envisioned by the Corporate Technology Strategic Plan Continued momentum of progress from recent activities to maximize the investment to date Best practice lifecycle program of equipment ensures City staff area able to deliver required services Delays in project approval may result in lost value, time and missed opportunities Legislative non-compliance for critical data and systems can be costly Service delivery interruption due to unavailable data and tools to front line staff can mean lost revenues, increased costs and reputational concerns Planning Studies are essential in both the capital and operating planning processes for front line service delivery departments. Provide Council with critical decision-making information for long-range planning of the City Assist in aligning the desires of the public, development and business communities and Council Ensure compliance with provincial plans and legislation Capital Budget and Forecast 13

14 Uncertainty in future plans may lead to inefficient use of resources or poor outcomes Lack of clarity in future needs impacts the City s ability to effectively plan for future financial requirements Corporate Asset Management The asset management program provides better accountability, sustainability, risk management, service management and financial efficiency through: improved financial performance; informed asset investment decisions; managed risk; improved services and outputs; demonstrated social responsibility; demonstrated compliance; enhanced reputation; improved organisational sustainability, and improved efficiency and effectiveness highlights Facilities Management Building condition assessments Needs assessments for space and location efficiency Structural repairs to ensure integrity of all facilities Accessible facilities in terms of AODA within available budgets Energy/water and material efficiency is built into all new construction and renovations Information Technology Council Chamber updates Audio/visual and systems enhancements Electronic meeting management Physical remodeling of Council Chambers Enterprise systems modernization Citizen relationship management (CRM) Digital services and online citizen portal (myguelph) Automating business processes and data integration (Service Oriented Architecture [SOA]) New system functionality to manage Human Resources and Finance workflow Data management and enhanced reporting Lifecycle and asset management Computers, mobility, network, software and telephony lifecycle Regulatory compliance and efficiency measures Capital Budget and Forecast 14

15 Cybersecurity enhancements Network modernization (ex. Virtual Desktop Infrastructure [VDI]) Server virtualization and private cloud technologies ( pay for use efficiencies) Planning Environmental Initiatives Zoning By-law Review Official Plan Review Corporate Asset Management Completion of the implementation of the Enterprise Asset Management System Analysis, selection and implementation of an IT based Decision Support System to aid in the City wide asset related decision making Operating impacts Forecasted 2019 impacts from 2018 recommended capital spending will be $140,000 CRM: $80,000 annually for licencing and maintenance Decision Support System:$60,000 annually for licencing and maintenance Operating impacts from future year s capital budget will be identified as work progresses on the Corporate Asset Management Plan. These impacts will be shared with Council as they are developed and in future budgets. Table 6, 10 Year Financial Investment ('000s) Corporate Asset Management Equipment & Vehicles 3,138 3,851 2,952 2,206 2,795 12,719 Facilities Management 1,474 4,984 2,208 1,709 1,520 8,791 Planning & Studies 465 1,195 1, ,285 4,275 Total 6,002 10,330 6,510 4,665 5,600 25, Capital Budget and Forecast 15

16 Table 7, 2018 Budget Approval ('000s) Project Budget Corporate Asset Management Levels of Service 75 Decision Support System 650 Enterprise Asset Management Optimization 200 Equipment & Vehicles Council Chamber Upgrades 480 Court Building Equipment 40 Information Technology Lifecycle 2,508 Information Technology Strategic Plan 110 Facilities Management Corporate Wide Accessibility 536 Court Facility 15 Security Infrastructure Replacement 73 Structural Assessment & Repairs 850 Planning & Studies City Planning 465 Table 8, 2018 Budget Approval ('000s) Funding source Funding amount Tax reserves 4,717 Development charges 157 Grants 160 Own revenue 39 Rate Reserves 848 Partner 81 Total 6,002 Figure 6, 2018 Funding Sources 1% 14% 1% 3% 3% 78% Tax Reserves, 79% Development Charges, 3% Grants, 3% Own Revenues, 1% Rate Reserves, 14% Partner, 1% Capital Budget and Forecast 16

17 Contaminated Sites Lead departments: Engineering and Capital Infrastructure, IDE 2018 Capital investment: $2,645, Operating budget investment: $ to 2027 Capital investment: $24,230,000 Figure 7, 2018 Capital Expenditure Type Figure 8, 2019 to 2027 Capital Expenditure Type 40% 60% Infrastructure Renewal, 60% City Building, 40% Growth, 0% 100% Infrastructure Renewal, 0% City Building, 100% Growth, 0% Description Consists of the investments required to manage and mitigate the City s liabilities associated with city owned environmentally contaminated sites. There are at least 43 City owned properties, roads and/or right-of-way (ROW) that are known to be contaminated or are potentially contaminated based on their historical usage (e.g. as former industrial or commercial uses or historical landfill sites). The financial liability associated with these sites was identified and accounted for under the Public Sector Accounting Board (PSAB) Standard PS 3260 Liability for Contaminated Sites in 2015 and the City estimates it could cost up to $30 million to maintain, mitigate, or remediate these properties based on current information. The main focus is to manage the City s contaminated site liabilities from an engineering perspective Capital Budget and Forecast 17

18 Benefits and associated risks The benefits to managing these sites include: investing in our assets to prepare them for potential divestiture or redevelopment, working towards revitalizing neighborhoods, reducing the city's liability for contaminated sites, protecting the city's groundwater, managing public health/safety, compliance with the Ministry of the Environment and Climate Change (MOECC). A second focus is on cultivation of potential investment partnerships with other levels of government and/or the private sector. Active discussion and promotion of the potential for redevelopment of sites is key to accessing external sources of funding. The risks of not managing the contaminated site portfolio include: fines for non compliance with MOECC orders, issuance of future orders (loss of control of scope, schedule, and cost), stalling redevelopment, exacerbation of contamination (i.e., making the problem worse), continued liability (reported in City s Financial Statements)), and risk to public health/safety and environmental protection will not be managed. Inadequate funding of redevelopment promotion may impede the City s ability to respond in a business like manner with the Council-approved development partners. It may also put the City s ability to re act quickly to Provincial/Federal funding program announcements, which may benefit the remediation of these brownfield properties highlights Environmental Due Diligence Environmental Data Management Contaminated Site Operations Maintenance &Management Phase I Environmental Site Assessments Operating impacts No forecasted 2019 impacts from 2018 recommended capital spending. As additional investigation work is undertaken on the various sites, potential operating impacts may be identified and brought forward as part of future capital budgets. Table 9, 10 Year Financial investment ('000s) Beverley St 1, Baker St Parking Lot 550 1, Fountain St Parking Lot ,075 9,650 Municipal St Other Environmental Work ,400 1,485 1,885 2,630 Total 2,645 3,380 2,525 1,835 3,135 13, Capital Budget and Forecast 18

19 Table 10, 2018 Budget Approval ('000s) Project Budget 200 Beverley St. 1,150 Baker St Parking Lot 550 Fountain St Parking Lot 100 Municipal St. 250 Other Environmental Work 595 Table 11, 2018 Budget Funding ('000s) Figure 9, 2018 Funding Sources Funding source Funding amount Tax reserves 1,045 Development charges Grants Own revenue Rate Reserves 1,350 Partner Debt 250 Total 2,645 9% 40% 51% Tax Reserves, 40% Development Charges, 0% Grants, 0% Own Revenues, 0% Rate Reserves, 51% Partner, 0% Debt, 9% Capital Budget and Forecast 19

20 Downtown Implementation Lead departments: Business, Development and Enterprise, IDE 2018 Capital investment: $6,704, Operating budget investment: $15, to 2027 Capital investment: $115,756,100 Figure 10, 2018 Capital Expenditure Type 2% 3% Figure 11, 2019 to 2027 Capital Expenditure Type 22% 34% 95% Infrastructure Renewal, 95% City Building, 2% Growth, 3% 44% Infrastructure Renewal, 34% City Building, 44% Growth, 22% Description The Downtown Secondary Plan is a comprehensive vision for revitalizing and intensifying the population and economic activity levels of downtown Guelph through to It addresses the requirements of both municipal and provincial growth plans by planning for increased residential development to complement the growth of our commercial, employment and cultural activities in the downtown core. The implementation of the Secondary Plan is complex, requiring the alignment of projects and partnerships between the City, private landowners, institutions, downtown businesses, neighbours and others. Benefits and associated risks Significant private sector development momentum has been created around the Downtown Secondary Plan since There are over 1,000 housing units and over 100,000sqft of commercial space that has been approved, is in development, or has been constructed over the past five years. This progress represents approximately one-third of the growth targets in the 2031 planning horizon and has created significant new assessment growth and economic activation in the downtown for the benefit of the city as a whole Capital Budget and Forecast 20

21 The downtown has a new role as a contributor to new, dense assessment growth which supports the City meeting its budget targets and community objectives. Major components to implementation consist of the continuation of: Vision and Policy Alignment (Downtown Secondary Plan, Downtown Zoning By-law Update, etc.) Infrastructure Renewal (Street and Linear Infrastructure reconstructions) Land Availability (both publicly and privately held) Access and Transportation investments, including Guelph Central Station, Parking and Transit Private investment (supported and shaped through the Downtown Community Improvement Plan programs) Public investment (in such things as our major anchor visitation drivers and community assets such as the Guelph Public Library, Sleeman Centre and RiverRun Centre) 2018 and 2019 priorities have been set through recent Council direction on the Parking Master Plan, including the Wilson Street Parkade, as well as the marketing of Baker Street as a development opportunity, which come with the interconnected investments in on-street reconstructions and program elements such as the Guelph Public Library. Related documents to Downtown Implementation Downtown Parking Master Plan Award of Wilson Street Parkade Design-Build Contract (page 3) Downtown Guelph Secondary Plan Implementation (page 11) GPL Presentation to City Council 2018 highlights Main Branch Library, Continued work on the business case and RFP participation details as part of the Baker District Redevelopment. Parking As per the Parking Master Plan, this funding is for the continued reinvestment in the existing parking system, particularly in IT systems upgrades and existing parkade restoration work. Parks & Open Spaces Phase 2 Riverwalk implementation this is the ongoing partnership contribution with The Metalworks on Arthur Street for the construction of the Speed River public space between Elizabeth and Neeve Streets Capital Budget and Forecast 21

22 Planning & Studies Funding to support the RFP process and partnership evaluation for Baker District Redevelopment process. Transportation and Utilities The major project for 2018 is Phase 4 of the Arthur Street Trunk Re-alignment project (from Cross to Elizabeth) In addition, the design phase of Wyndham Street North reconstruction will be commenced (in preparation for future phased reconstruction projects from Carden to Woolwich Street, including St. George s Square) Operating impacts Forecasted 2019 impacts from 2018 recommended capital spending will be $15,000 Park & Recreation Department - $15,000 Riverwalk Trail Operations and maintenance Guelph Public Library any impacts to the capital spending will be discovered during the completed Business Case for the new Main Library as per the Tier-1 capital project. Estimated impacts from forecasted capital spending will be included in future years capital budgets as they are more clearly defined through current work being undertaken. Table 12, 10 Year Financial Investment ('000s) Main Library 100 1,900 55,200 Parking 1,325 1, ,340 1,341 5,221 Parks & Open Spaces 100 1, ,700 1,000 Planning & Studies 126 Transportation & Utilities 5, ,958 10,748 5,546 4,967 Total 6,704 5,498 63,220 12,263 23,587 11, Capital Budget and Forecast 22

23 Table 13, 2018 Budget Approval ('000s) Project Budget Main Library Main Branch Library Business Case 100 Parking Parkade Facility Lifecycle 1,325 Parks & Open Spaces Downtown Riverwalk 100 Planning & Studies Baker Street 126 Transportation & Utilities Wyndham St. Planning & Design 400 Arthur Trunk Sewer: Howitt St. to Wyndham St. 100 Arthur Trunk Sewer: Cross St. to Macdonell St 4,553 Table 14, 2018 Budget Funding ('000s) Funding source Funding amount Tax reserves 1,769 Development 223 charges Grants 2,094 Own revenue Rate Reserves 2,618 Partner Total 6,704 Figure 12, 2018 Funding Sources 39% 27% 3% 31% Tax Reserves, 26% Development Charges, 3% Grants, 31% Own Revenues, 0% Rate Reserves, 39% Partner, 0% Capital Budget and Forecast 23

24 Economic Development Lead department: Business Development and Enterprise 2018 Capital investment: $625, Operating budget investment: $ to 2027 Capital investment: $19,140,500 Figure 13, 2018 Capital Expenditure Type Figure 14, 2019 to 2027 Capital Expenditure Type 100% Infrasturcture Renewal, 0% City Building, 100% Growth, 0% 100% Infrastructure Renewal, 0% City Building, 100% Growth, 0% Description Economic development requires the City to invest in studies and assets that support the growth of businesses and residents within the City. Two key initiatives are the Hanlon Creek Business Park (HCBP) and the completion of the new Prosperity 2030 Plan. The Hanlon Creek Business Park is a joint venture business park subdivision between the City and three private property owners. Prosperity 2030 is a key guide for businesses when making long-term investments in the City. Benefits and associated risks HCBP work ensures the City is being compliant with environmental conditions of subdivision approval for Phase 1 as provided by the Ontario Municipal Board. The resulting work will also allow for the pre-engineering/environmental assessment work that is required to achieve final development approvals for Phase Capital Budget and Forecast 24

25 Failure to complete the Prosperity 2030 plan will create uncertainty which may delay or inhibit investment in the City highlights Environmental Monitoring Programs Annual Groundwater & Wetland Monitoring Annual Aquatic, Terrestrial & Wildlife Movement Monitoring Real Estate Marketing and Transactional Costs Legal Survey Costs Marketing Costs Professional Services & Commissions Prosperity 2030 In-depth analysis of quantitative and qualitative outcomes of Prosperity 2020 Communication with the community and Council of these outcomes Development of economic baseline based on outcomes to inform the direction, recommendations and goals of the City's next 10-year economic development strategy Operating impacts No forecasted impacts from 2018 recommended capital spending. No expected operating impacts from future capital budgets forecasted at this time. Table 15, 10 Year Financial Investment ('000s) HCBP ,250 7,666 Planning & Studies 150 Total ,250 7, Capital Budget and Forecast 25

26 Table 16, 2018 Budget Approval ('000s) Project Budget HCBP Hanlon Creek Business Park 475 Planning & Studies Prosperity Table 17, 2018 Budget Funding ('000s) Figure 15, Funding Sources Funding source Funding amount Tax reserves 150 Development charges Grants Own revenue 475 Rate Reserves Partners Total % 76% Tax reserves, 24% Development charges, 0% Grants, 0% Own revenue, 76% Rate Reserves, 0% Partner, 0% Capital Budget and Forecast 26

27 Full Corridor Reconstruction Lead department: Engineering & Capital Infrastructure, IDE 2018 Capital investment: $20,440, Operating budget investment: $ to 2027 Capital investment: $191,653,500 Figure 16, 2018 Capital Expenditure Type Figure 17, 2019 to 2027 Capital Expenditure Type 15% 39% 0% 61% Infrastructure Renewal, 61% City Building, 0% Growth, 39% 85% Infrastructure Renewal, 85% City Building, 0% Growth, 15% Description The full corridor reconstruction program includes the replacement of the road, sidewalk, water, wastewater and stormwater infrastructure within the municipal right-of-way. When identifying candidate projects for this program, a full analysis of all data available, for each of the these infrastructure items, will be completed. This includes a review of historical data, work orders, condition data, industry standards, anticipated future deterioration and more, to develop a complete picture of all the needs associated with that corridor in order to evaluate the option of rehabilitating or repairing a single asset group against the need for a complete reconstruction. These projects have been included in this program of work because this integration analysis has indicated that the best decision is to complete a full reconstruction of the corridor rather than focused repairs for a single asset group Capital Budget and Forecast 27

28 Benefits and associated risks The integrated capital budgeting approach that was used for this year s capital budget aims to optimize the project list to ensure that levels of service are being maintained and risks are being minimized in the most cost effective manner. It coordinates work between various service areas, allowing staff to realize efficiencies in capacity as well as costs, while effectively managing risk by prioritizing work. There are a number of risks faced by both the public and the City if work is not completed. Maintenance and operation costs increase as assets age, and the chance of unexpected failures are associated with higher repair costs, with an overall lower level of service available to the user. Additionally, assets that have experienced unexpected failure remain out of service for a longer period of time, so decreased levels of service are experienced. The consequences of underground infrastructure failure can potentially include contamination of the drinking water supply, water service interruptions, sink holes, vehicle damage (due to pot holes), property damage, sewer backups, or basement flooding highlights Growth Niska Road: City Boundary to Downey Road Bristol Street Phase 2: Yorkshire Street to Wellington Street West Elizabeth Street: Splitter installation York Road: Victoria Road South to East City Limits Detailed Design York Trunk Phase 2b - Waterworks Place to Victoria Road South Renewal Alma Street North: Willow To Paisley Design Bagot Street: Drew Street To Mercer Street Pre-design For right-of-way construction projects Operating impacts No forecasted impacts from 2018 recommended capital spending. Operating impacts from future year s capital budget will be identified as work progresses on the Corporate Asset Management Plan. These impacts will be shared with Council as they are developed and in future budgets. Table 18, 10 Year Financial Investment ('000s) Transportation 4,014 6,146 8,840 8,882 7,154 69,401 Stormwater 1,117 1, ,115 1,428 13,729 Wastewater 1,139 2,139 1,699 3,193 2,298 26,766 Water 14,171 2,347 4,688 4,456 3,087 20,648 Total 20,440 12,427 16,069 18,646 13, , Capital Budget and Forecast 28

29 Table 19, 2018 Budget Approval ('000s) Project Budget Transportation & Utilities Combined Alma St. N: Willow St. to Paisley St. 40 Bagot St: Drew St. to Mercer St 2,600 Niska Rd: City Boundary to Downey Rd 3,000 Bristol St Trunk Sewer: Yorkshire St to Wellington St 1,000 Bullfrog Stormwater Upgrade: Elizabeth St Splitter 700 York Trunk Sewer to Victoria Rd 12,600 Pre-design for road construction projects 500 Table 20, 2018 Budget Funding ('000s) Figure 18, 2018 Funding Sources Funding source Funding amount Tax reserves 1,399 Development charges 7,917 Grants 733 Own revenue Rate Reserves 10,259 Partner 132 Total 20,440 50% 1% 7% 39% 3% Tax Reserves, 7% Development Charges, 39% Grants, 4% Own Revenues, 0% Rate Reserves, 50% Partner, 1% Capital Budget and Forecast 29

30 Stormwater Management Lead department: Engineering & Capital Infrastructure, IDE 2018 Capital investment: $1,295, Operating budget investment: $ to 2027 Capital investment: $22,330,000 Figure 19, 2018 Capital Expenditure Type Figure 20, 2019 to 2027 Capital Expenditure Type 8% 100% Infrasturcture Renewal, 100% City Building, 0% Growth, 0% 92% Infrastructure Renewal, 92% City Building, 0% Growth, 8% Description The City of Guelph s first stormwater management (SWM) facility was built in Today, the City currently owns and operates 118 SWM facilities including 39 wet ponds, 42 dry ponds and 37 greenways. The City also owns and operates 25 stormwater drainage channels of varying age and design as well as 153 oil/grit separators (OGS). This group of infrastructure forms the SWM facility assets. The program of work involves constructing, operating, maintaining and improving the City s existing SWM infrastructure for the purpose of providing flood and erosion control, water quality treatment, and environmental protection Capital Budget and Forecast 30

31 Benefits and associated risks The benefits of managing these assets: improving stormwater runoff quality thus protecting the health of our streams and rivers, mitigating flooding in extreme weather (reducing property damage or risk to human life), maintaining SWM facility assets to function as designed and in some cases comply with regulations set by the Ministry of the Environment and Climate Change (MOECC). The risks of not managing these assets includes: assets deteriorating to a state of disrepair and ceasing to meet the performance expected; potentially causing harm to property, the environment, and human life. In addition, without continued maintenance and monitoring the City will be in a state of non compliance with the MOECC. Non compliance with regulations set forth by the MOECC can result in charges and/or fines against the City highlights Storm Sewer Investigation Oil-grit Separator Condition Assessment Program River Outlet Condition Assessment Program Oil Grit Separator Operations And Maintenance Program Cost Of Service Study Storm Sewer Reline/Repair Benchmarking & Performance Measurement Storm System Upgrades SWM Pond Retrofits Pond Monitoring Operating impacts No forecasted impacts from 2018 recommended capital spending. Estimated impacts from forecasted capital spending will be determined as continued review of the current system is undertaken throughout Table 21, 10 Year Financial Investment ('000s) Facilities 450 1,575 1,575 1,010 1,290 4,910 Linear 140 1, ,600 Planning & Studies 705 1,130 1, ,350 Total 1,295 3,720 3,720 2,850 2,180 9, Capital Budget and Forecast 31

32 Table 22, 2018 Budget Approval ('000s) Project Budget Facilities SWM Pond Retrofits 200 SWM Pond Monitoring 250 Linear Oil Grit Separator Operations & Maintenance 10 Stormwater Sewer Reline & Repair 100 Stormwater System Upgrades 30 Planning & Studies Benchmarking & Performance Measurement 30 Condition Assessment Program 500 Cost of Service Study 25 Stormwater Sewer Investigation 150 Table 23, 2018 Budget Funding ('000s) Figure 21, 2018 Funding Sources Funding source Funding amount Tax reserve Development charges Grants Own revenue Rate Reserves 1,295 Partner Total 1, % Tax reserves, 0% Development charges, 0% Grants, 0% Own revenue, 0% Rate Reserves, 100% Partner, 0% Capital Budget and Forecast 32

33 Transportation Lead departments: Engineering and Capital Infrastructure, IDE Operations, PS 2018 Capital investment: $5,705, Operating budget investment: $28, to 2027 Capital investment: $137,937,100 Figure 22, 2018 Capital Expenditure Type 6% 5% Figure 23, 2019 to 2027 Capital Expenditure Type 3% 6% 89% Infrastructure Renewal, 89% City Building, 6% Growth, 5% 91% Infrastructure Renewal, 91% City Building, 3% Growth, 6% Description This program of work captures the City wide road restoration and resurfacing program and the expansion and improvements of the road surface including road widening, installation of turning lanes, design and installation of bike facilities, installation of new and modernization of existing traffic control signals and localized road improvements identified through the Neighborhood Traffic Management Program. The City's paved road surface should provide a durable even running surface with adequate skid resistance. Over time, the pavement surface becomes worn or damaged, resulting in pot holes, rutting, cracking and many other defects. Rehabilitating the road extends the life of the road, and restores the road surfaces level of service. The road segments to be rehabilitated have been identified based on available road condition information, number of work orders for cracks and pot holes based on the Minimum Maintenance Standard (MMS) for Municipal Highways, and operational input. All projects identified for resurfacing have Capital Budget and Forecast 33

34 been assessed to ensure that the underground and adjacent infrastructure do not require replacement or rehabilitation The need for road widening, turning lanes or bike facilities is determined by the City s Master Plans as well as overall growth plans. Implementation of City wide new traffic control signals, existing improvements to signalized locations as a result of customer requests, overall network improvements, and traffic signal enhancements. Neighborhood traffic management initiatives are proposed to be implemented on Local and collector roads that qualify The City owns and maintains a large number of bridges, culverts, retaining walls, and stairs, many of which are over 50 years old and require ongoing operation and maintenance activities to ensure public safety. Currently, the estimated value all bridges and culverts over three metres in diameter included in the inspection program is valued at $65M. Provincial regulations require that all bridges be inspected at least once every two years, and it is through these inspections that the capital budget is developed. Capital projects are based on the recommended life cycle rehabilitation work as reported in the structure inspection reports. These projects are then aligned with the reconstruction of streets, underground infrastructure improvements, and active transportation planning to prioritize work and optimize planning. Benefits and associated risks An active restoration and resurfacing program ensures that all road surfaces are maintained at the desired condition levels, improving traffic flow and safety. Work is also undertaken to improve adjoining storm water infrastructure and pedestrian usage. Improvements through road reconstruction improve the connections between roads and development for motorists, active transportation users and those accessing public transit. These programs align with Strategic Directions 3.1. If funding is not obtained there is a health and safety risk to our customers and a greater potential for sections of the traffic signal network to be inefficient, creating delays, congestion and driver frustration as well as not address neighborhood issues regarding traffic speeds and cut through traffic Pedestrian and vehicle bridges are a substantial and vital part of the City's transportation infrastructure system. In many cases, the bridges span over watercourses and roadways, and require regular maintenance, rehabilitation, and eventual replacement to minimize the risk of failure, and ensure levels of service. Ensuring that the City s bridges and structures are maintained consistently and according to industry standards also minimizes operational costs, and costs associated with unexpected failure, as well as to realize efficiencies in both scheduling and pricing by coordinating with other similar works Capital Budget and Forecast 34

35 2018 highlights Road Restoration and Resurfacing Program Roadway Preventative Crack Sealing Road Reconstruction Surface Asphalt Operations Road Infrastructure Sustainability Traffic Signal Equip Replacement Intersection - Signal Rebuild Well St W: Imperial Rd S to City Limit Widening Design Downey Rd: Niska to Teal Dr. Transportation Improvement (Phase 2 Vertical Deflection) New Sidewalk Construction Transportation Master Plan 2018 New Signal Installation Pedestrian Crossovers Speed River Retaining Wall Rehabilitation Operating impacts Forecasted 2019 impacts from 2018 recommended capital spending will be $4,700 Operations Department - $28,700 o Maintenance of expanded road network o Maintenance of additional signalized intersections Operating impacts from future year s capital budget will be identified as work progresses on the Corporate Asset Management Plan. These impacts will be shared with Council as they are developed and in future budgets. Table 24, 10 Year Financial Investment ('000s) Bridges & Structures 165 2,915 1,473 16, ,969 Operations 1,399 4,821 6,614 3,706 3,377 19,144 Planning & Studies ,180 Right of Way 2,150 6,231 4,170 6,349 3,710 33,157 Traffic Signals & Controls 1,791 1,773 1,616 2,587 1,759 6,419 Total 5,705 15,990 13,973 28,776 10,332 68, Capital Budget and Forecast 35

36 Table 25, 2018 Budget Approval ('000s) Project Budget Bridges & Structures Structural Rehabilitation & Renewal 165 Operations Equipment & Vehicles replacement 1,399 Planning & Studies Transportation Master Plan 200 Right of Way Road Surface Maintenance, Renewal & Reconstruction 1,660 Wellington St W: Imperial Rd to City Limits 140 Downey Rd: Niska Rd to Teal Dr 50 Guelph Hydro Lighting 300 Traffic Signals & Controls Traffic Signal Controller Replacement 175 Intersection Signal Rebuild 1,030 New Signal Installation 180 Pedestrian Crossings 85 Table 26, 2018 Budget Funding ('000s) Funding source Funding amount Tax reserves 4,102 Development charges 262 Grants 1,341 Own revenue Rate Reserves Partner Total 5,705 Figure 24, 2018 Funding Sources 5% 25% 70% Tax Reserves, 70% Development Charges, 5% Grants, 25% Own Revenues, 0% Rate Reserves, 0% Partner, 0% Capital Budget and Forecast 36

37 Wastewater Management Lead departments: Engineering and Capital Infrastructure, IDE Environmental Services, IDE 2018 Capital investment: $9,737, Operating budget investment: $ to 2027 Capital investment: $127,308,292 Figure 26, 2018 Capital Expenditure Type Figure 25, 2019 to 2027 Capital Expenditure Type 33% 2% 6% 67% Infrastructure Renewal, 67% City Building, 0% Growth, 33% 92% Infrastructure Renewal, 92% City Building, 2% Growth, 6% Description Wastewater Services is responsible for ensuring the City has sufficient wastewater treatment and biosolids management capacity to meet the needs of the community. This includes proactively maintaining and renewing existing facilities and increasing capacity as needed for growth. Wastewater Treatment Growth Includes evaluation of the biosolids storage facility (ST0003) to ensure the overall solution and timing provides value, financial accountability and is the best option for solids management moving forward. Related to this project, and of additional benefit to the plant is a planned upgrade of the plant automation system and programmable logic controllers (PLC s). This upgrade will ensure that the automation technology responsible for the continuous operation of the treatment process is current and reliable (ST0006) Capital Budget and Forecast 37

38 Renewal Includes studies and maintenance/replacement work to meet industry best practice for asset management. The digester maintenance program will continue by completing the work as recommended by the structural assessment of digester #3 (ST0014). Back-up generators (ST0001) will be installed to mitigate risks to the treatment process caused by intermittent and extended power outages. Wastewater Collection The City of Guelph has approximately 530 km of sanitary sewers and five sewage pump stations, all delivering sanitary sewage flows from the city to a central wastewater treatment facility located at the southwest corner of Wellington Street and the Hanlon Expressway. Treated effluent (outflow) from the treatment facility is discharged to the Speed River. Planning, expansion and renewal of the collection system is the responsibility of Engineering and Capital Infrastructure in conjunction with Wastewater Services. Growth Includes projects to assess current hydraulic conditions within the sanitary sewer system, determine the relative amount of dry weather and wet weather flow that may be entering the system, and to determine how this flow could be mitigated or eliminated to free up sewer capacity for improved operations under current conditions, and/or to facilitate growth. Renewal Trenchless sewer lining is non invasive and does not require significant closures of roads or areas used by the public. The sewer lining activities will be bundled together in order to gain efficiencies and economies of scale. Assessment programs for maintenance holes and wastewater sewers, and inflow and infiltration locations within the city will improve capital planning and inform future budgets. Benefits and associated risks Critical infrastructure must be maintained to mitigate the risk and the higher costs of unplanned maintenance. Proactive investment in wastewater infrastructure renewal and expansion provides long term reliability of assets and capacity. A reliable and upgraded Programmable Logic Controller (PLC) network will reduce unexpected downtime. This capital program of work supports the facility s Environmental Compliance Approval (ECA) requirement to exercise due diligence in ensuring that works and related equipment used to achieve compliance are properly operated and maintained at all times. Optimizing existing systems, increasing capacities of existing systems, reducing water loss, increasing water conservation, protecting the natural environment, enhancing asset Capital Budget and Forecast 38