October 29, 2015

REPORT TO THE CHIEF ADMINISTRATIVE OFFICER

FROM THE PUBLIC WORKS AND UTILITIES DEPARTMENT
ON
2015 CAPITAL PROJECTS UPDATE

PURPOSE
To provide Council with sample information in advance of a proposed final capital projects report
in spring 2016 and to request the transfer of any surplus budget funds back to the original funding
source (e.g., Development Cost Charges, borrowing, capital reserve, etc.).
SUMMARY
Reporting to the Public Works and Utilities Director, the Capital Projects Division is responsible
for the administration and delivery of the City's annual Capital Plan. In 2015, the Capital Projects
Division, with direct and indirect support from all other departments, managed capital
expenditures of approximately $34 million. The majority of these projects have been completed
and/or the funds have been committed for completion of the project in early 2016. The list of
projects is included as Attachment "A".

RECOMMENDATION:
That Council:
a)

Receive this report for information;

b)

Provide staff with feedback in advance of an annual summary of

capital projects in spring 2016; and

c)

Authorize staff to transfer any surplus budget funds from the

capital projects back to their appropriate funding source if the
project is under budget when it is complete.

COUNCIL POLICY
Fiscal Responsibility - continue a thorough review of City costs and fiscal accountability, keeping
in mind the need to balance user fees and taxes.

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DISCUSSION
In 2015, the Capital Projects Division was responsible for delivering approximately $34 million in
capital expenditures. The following is a summary of the year in review, as well as a list of projects
with each one's status and budget forecast. The financial information included with the list of
projects is the most current estimate given the information available at this time. It should be
noted that this report outlines the construction of capital projects for 2015 and does not include
deferred projects, design of projects, or ongoing annual maintenance capital. Staff intend to
include these other capital budgets in the proposed annual report be presented to Council in
spring 2016.
2015 Capital Projects Year in Review
What works well within the Capital Projects Division:

Stable staff for 2015;

Administration providing direction on the role and responsibilities of the Capital Projects
Division;
Progress is being made regarding identifying the difference between maintenance capital
and capital projects;
Approximately 95% of the proposed 2015 Capital Plan has been delivered;
Evolution towards project management, not just construction/contract administration;
Monthly meetings with project stakeholders were established to help with improved
communication and project tracking;
Significant progress on consistent communication and engagement for capital projects;
and
A strong communication strategy for capital construction projects.

Areas for improvement:

Continued growth with respect to the role of Capital Projects Supervisors and Construction
Inspectors;
Development of more tools for consistent service delivery;
Continued work on communication with internal departments and stakeholders;
Annual review of contract documents and templates;
Additional annual reporting to keep Council informed; and
Creation of capital project numbers to keep budgets and reporting clear and consistent
and to provide accountability.

Overall, the 2015 capital projects have come in under budget by 5%. The final budget forecast
will need to be adjusted once all of the projects have been completed but, in general, the list of
projects is on or under budget.

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FINANCIAL IMPLICATIONS
Staff have prepared the budget forecast for the 2015 capital construction projects. This list is
included as Attachment "A". Staff recommend that in situations where the projects are under
budget, the funds be transferred back to the original funding source (e.g., arterial roads, the water
utility, etc.). In situations where the project has come in (or is forecasted to come in) over budget,
the reasons for the over-expenditure have been analyzed and, where the expenditures are valid,
funding has been used from existing budgets. For example, in the case of the Falcon Road
project, old stormwater infrastructure was uncovered during excavation for the new sanitary sewer
line, so the stormwater funds that already exist in the Capital Plan were utilized to fund some of
the additional costs.
In other instances, where the over-expenditure (or potential
over-expenditure) is based on a change in project scope, a formal report to Council will be brought
forward to request authorization to spend that additional money. An example of this situation is
the North Shore Community Police Office, for which a formal report will be brought forward to
Council shortly.

_____________________________________
J. Fretz, P.Eng.
Public Works and Utilities Director
Approved for Council Consideration:
Concurrence: K. Humphrey, CPA, CA, Finance Director
Author:

D. Crundwell, P.Eng., Capital Projects Manager

DC/lm/kjm
Attachment

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Attachment "A"
Capital Project

Status

Budget

Forecast

River Street High lift Station - Install Stand-by Power

Complete

$1,000,000.00

$600,000.00

$400,000.00

40%

East Trans-Canada Highway - Sanitary Main Upgrades

Completion Spring 2016

$1,460,000.00

$1,460,000.00

$0.00

0%

South Primary Lift Station Improvements

Completion Spring 2016

$2,440,000.00

$2,300,000.00

$140,000.00

6%

Dallas Drive Sanitary Twinning

Complete November 2015

$2,200,000.00

$1,350,000.00

$850,000.00

39%

Falcon Lift Station Replacement

Complete

$915,000.00

$1,100,000.00

-$185,000.00

-20%

Mission Flats Landfill Electrical Upgrade

Complete November 2015

$80,000.00

$80,000.00

$0.00

0%

Mission Flats Landfill Gas Collection System

Complete November 2015

$650,000.00

$650,000.00

$0.00

0%

Complete Spring 2016

$490,000.00

$800,000.00

-$310,000.00

-63%

Highland Drive Widening - Valley View / Qu'Appelle

Complete

$500,000.00

$450,000.00

$50,000.00

10%

Columbia Street Upgrades

Complete

$4,795,000.00

$4,300,000.00

$495,000.00

10%

Complete November 2015

$1,630,000.00

$1,600,000.00

$30,000.00

2%

Erona Place Reconstruction

Complete

$125,000.00

$115,000.00

$10,000.00

8%

McQueen Drive Reconstruction

Complete

$200,000.00

$180,000.00

$20,000.00

10%

Nicolani Drive Reconstruction

Complete

$250,000.00

$230,000.00

$20,000.00

8%

McInnes Place Reconstruction

Complete

$60,000.00

$50,000.00

$10,000.00

17%

Pinegrove Road Reconstruction

Complete

$120,000.00

$110,000.00

$10,000.00

8%

Overlanders Bridge Rehabilitation

Complete

$10,375,000.00

$10,075,000.00

$300,000.00

3%

Guerin Greek Channel Improvements

Complete

$1,130,000.00

$1,080,000.00

$50,000.00

4%

6th Ave Drainage Upgrades

Complete

$50,000.00

$50,000.00

$0.00

0%

Strathcona Drainage Upgrades

Complete

$125,000.00

$125,000.00

$0.00

0%

Springhill Creek Drainage Repair

Complete Spring 2016

$500,000.00

$500,000.00

$0.00

0%

Trophy Court Gully Rehabilitation

Complete December 2015

$500,000.00

$500,000.00

$0.00

0%

Peterson Creek Channel/604 Nicola Drainage Improvements

Complete

$125,000.00

$135,000.00

-$10,000.00

-8%

Springhill Creek/1435 Summit Drive Drainage Improvements

Complete

$225,000.00

$250,000.00

-$25,000.00

-11%

Springhill Creek/Peterson Creek Bridge Drainage Improvements

Complete

$130,000.00

$180,000.00

-$50,000.00

-38%

1200 Rogers Way Storm Improvements

Complete

$260,000.00

$260,000.00

$0.00

0%

Complete December 2015

$180,000.00

$150,000.00

$30,000.00

17%

Complete

$175,000.00

$175,000.00

$0.00

0%

Complete December 2015

$120,000.00

$120,000.00

$0.00

0%

Rose Hill Park

Complete

$100,000.00

$100,000.00

$0.00

0%

Boys/Girls Club Demolition

Complete

$400,000.00

$500,000.00

-$100,000.00

-25%

Complete December 2015

$150,000.00

$150,000.00

$0.00

0%

Complete January 2016

$225,000.00

$225,000.00

$0.00

0%

Franklin Road and Centennial Park Pedestrian Upgrades

Complete November 2015

$150,000.00

$150,000.00

$0.00

0%

11th/Columbia - Pedestrian Crossing Updgrades

Complete December 2015

$275,000.00

$250,000.00

$25,000.00

9%

2015 Arterial Roads Rehabilitation - Aberdeen Drive

Complete November 2015

$900,000.00

$800,000.00

$100,000.00

11%

Complete October 2015

$265,000.00

$265,000.00

$0.00

0%

60% Complete

$600,000.00

$750,000.00

-$150,000.00

-25%

Complete November 2015

$400,000.00

$300,000.00

$100,000.00

25%

Totals

$34,275,000.00

$32,465,000.00

$1,810,000.00

5%

North Shore Community Police Office

Capital Projects 2015

12th Street Road Reconstruction

ISC Dressing Room Renovations

Westsyde Water Park
Riverside Park Family Washroom

Sheep Breeder Building Repair/Retrofits

Old Courthouse Renovations

Dickenson/Walkem Road Safer Schools Project

West Highlands Clubhouse
Aberdeen Booster Station Emergency Repairs

Variance

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