TAMRMS#: B09
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Approval of 10 Year Utility RMR
Presented by: Anne Victoor, Financial Services Manager, Finance & Assessment Department
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RECOMMENDATION(S)
recommendation
1. That the 10 Year Utility RMR (Repair, Maintain, Replace) Capital plan provided as an attachment to the June 17, 2019 agenda report titled “Approval of 10 Year Utility RMR Capital Plan” be approved.
2. That the following postponed motion be approved:
PM-20-043
“That the 2020 Utility Municipal Capital Budget of 14 capital RMR (Repair, Maintain, Replace) projects be funded in the amount of $11,622,500.”
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PURPOSE OF REPORT
This report presents 10 Year Utility RMR (Repair, Maintain, Replace) plan as originally presented to Governance, Priorities and Finance Committee (GPFC) on May 13, 2019 for Council consideration of the 2020 Utility RMR Capital Plan.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
N/A
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
Financial Planning
Stewardship of development of annual operating and capital budgets for Municipal and Utility operations.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
On May 13, 2019 Governance, Priorities, and Finance Committee passed the following motions:
(AR-19-221)
That the Governance, Priorities and Finance Committee recommend to Council that:
1. That Committee members submit any motions for proposed amendments to the 10 Year Utility RMR Capital Plan to Administration by May 21, 2019.
2. That Administration prepare backgrounders for proposed changes to the 10 Year Utility RMR Capital Plan and present to Council at the June 17, 2019 meeting for consideration of approval.
Council Policy C-FS-05 Budget and Taxation Guiding Principles:
Service Standards/Expectations:
Section 3 - Municipal and Utility capital budgets shall be prepared and approved by Council for a rolling ten (10) year period and Administration shall be given approval to execute on year one (1) of the plan.
Section 5-The approved operating and capital budgets shall serve as the financial plan for the City and provide Administration with the direction and resources necessary to accomplish Council’s strategic direction and Council approved services and service levels in accordance with the Services and Service Levels Inventory.
Section 7- The City is committed to the preservation and long term viability of its current infrastructure and as such commits available capital dollars towards the repair, maintenance and replacement of existing assets prior to consideration of new capital growth projects and assets.
Section 19(e)- Council shall review and provide final approval of the RMR Capital Budget approximately six months prior to the next fiscal year.
Section 19(f)-This approval shall grant Administration the authority to issue binding procurement documents such as Request for Proposals, Invitations to Tender and purchase orders and to award contracts at any time after final approval is received from Council.
Any contracts awarded will ensure that the goods and/or services will not be received until after January 1 of the following year when the budget dollars become available. Complete project charters supporting the current year’s RMR capital plan will be provided to Council as part of the review process.
BACKGROUND AND DISCUSSION
At the GPFC meeting on May 13, 2019, the 10 Year (2020-2029) Utility RMR Capital Plan was presented. Capital projects that have been identified as RMR are critical to sustain current service levels, required as part of detailed lifecycle plans, and are essential for rehabilitation of existing equipment and infrastructure.
No notices of motion were submitted.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
N/A
IMPLICATIONS OF RECOMMENDATION(S)
Financial:
Approval of the 2020 Utility capital projects relating to RMR are critical to support the City’s existing infrastructure and maintain current service levels. Without an approved recommendation, it could result in increased operating costs, higher future replacement costs, and adversely affect planning.
Legal / Risk:
None at this time.
Program or Service:
None at this time.
Organizational:
None at this time.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Council ‘do nothing’. The 2020 Utility RMR plan would not be approved and Administration would not be able to begin preparatory work towards the execution of the 2020 Capital RMR projects. These projects would need to be addressed again during the budget process in late fall.
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Report Date: June 17, 2019
Author: Anne Victoor
Department: Finance & Assessment Department
Chief Administrative Officer: Kevin Scoble