2011 – 2020 capital budget discussion · • prelim designprelim design – 43 st43 st - hwy 3 /...

NOTE

All Materials to be distributed at the Meeting Members of City Council, Administration and the Media may with to bring

City of Lethbridge 2011 – 2020 Capital Improvement Program Binder

FINANCE COMMITTEE MEETING 2011 – 2020 Capital Budget Discussion

DATE: Monday, May 10, 2010 TIME: 1:00 PM

PLACE: CITY COUNCIL CHAMBERS

Public is Welcome to Attend

A G E N D A

CALL TO ORDER

1. PRESENTATIONS:

1:00 PM 1.1. Garth Sherwin, City Manager, re Introduction by City Manager

1.2. Corey Wight, City Treasurer, re Overview of Capital Improvement Program (CIP), including funding

1.3. Doug Hawkins, Director of Infrastructure Services, re Review of Transportation Projects

1.4. Doug Hawkins, Director of Infrastructure Services, re Review of Parks Projects

LUNCH: 12:00 Noon to 1:00 PM

BREAK: 2:00 PM

1

City of Lethbridge2011‐2020 Capital Improvement Program

May 10, 2010

Finance Committee

Agenda

Objective

Timeline Timeline

Review of Draft CIP Book

Project evaluation

Pay‐As‐You‐Go

Debt Debt

Funding by category

Operating costs

Grants

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Objective

Approve a three year capital program (2011 to 2013) within a ten year plan(2011 to 2013) within a ten year plan (2011 to 2020)

Target for approval July 5, 2010

Operating costs that flow from this capital plan will feed the 2012 to 2014 Operatingplan will feed the 2012 to 2014 Operating Budget

CIP needs to be balanced within the three year window

What is the Capital Improvement Program (CIP)

A plan which matches the capital wants, needs and priorities of the communityneeds, and priorities of the community with a financial strategy

Wants/Needs Dollars Available

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Pre CIP Planning Master Plans

Transportation

Parks

Bikeways and Pathways

Cemeteries

Emergency Services

Recreation and Cultural Facilities

Heart of our City

Police Needs Assessment and 25 yr facility

F ili C di i A di Facility Condition Audit

Transit and Para‐transit Service Standards

Lethbridge Performing Arts Centre Study

Growth Management Plan

Various Community Based Plans

Timeline

Planning

Feb 1 2010 Feb 1, 2010

CIP process and financial overview

Project updates and accomplishments Transportation

Community

28th Street North project

March 1, 2010

Police Facility project

Nature Centre Expansion project

Transit Facility Expansion

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Timeline

March 15, 2010

D ft CIP Draft CIP

Water, Wastewater, Stormwater

Waste & Recycling

Electric

March 29 2010 March 29, 2010

Draft CIP

Parks

Community Services Master Planning

Timeline (cont.)

April 12, 2010

Draft CIP – Transportation

Bill Kergan Centre project

Exhibition Park project

Apr 26, 2010

Family Village Co‐location project

Offsite Levy

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Timeline (cont.)

May 10‐11, 2010

Overview of CIP book, Funding, Process

Review of Projects

Transportation, Utilities

Community (including Parks & Storm)

Specific Project Information

Transit Smart Card Technology

Police Facility

May 12‐13, 2010

Resolutions & Debate

Timeline (cont.)

May 17‐21 and June 7‐11, 2010

Community information – City Hall Foyer

Hosted May 18 & 20 from 5:00‐8:00p.m.

June 14, 2010

Amended Draft CIP document presentedAmended Draft CIP document presented to Finance Committee

July 5, 2010

City Council approval of CIP

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REVIEW OF DRAFT CIP BOOK

Directional Resolutions

Resolutions from 2008‐2017 CIP requiring some future actionrequiring some future action

listed at front of book including the action taken on the resolution

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Section A

Some portions of A will not be included until the final draftuntil the final draft

A‐1 transmittal letter

A‐3, A‐4 Pie charts

will be included in story boards following decisions on projects occurring this weekdecisions on projects occurring this week

Section A

A‐2 Evaluation Process

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Section A

A‐2 Evaluation Process

Proposed projects are subjected to anProposed projects are subjected to an evaluation process

Planning documents (including master plans) are a key part of these evaluations

Helps to ensure high priority projects are considered in the Capital Improvement Program

Section A

A5 Pay‐As‐You‐Go (PAYG) Plan

Th C t f PAYG Pl Three Components of PAYG Plan

Annual PAYG amounts for Community and Transportation Projects

Annual tax supported debt payments (currently all internal)

Balancing amount to (or from) the Major Capital Projects Reserve.

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Pay‐As‐You‐Go in Operating Budget

Page 119 in 2009‐2011 Approved Operating BudgetOperating Budget

PAYG Capacity

10,000,000

4,000,000

6,000,000

8,000,000

0

2,000,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Transportation PAYG Leisure & Comm PAYG Debt Payments PAYG Total

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Section B ‐ Debt

B‐2 Tax Supported External Debt

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B‐3 Utility/Self Supported Debt

B‐4 Offsite Supported Debt

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Section B – Debt Schedules

B‐5 Proposed Borrowing

l b B‐6 External Debt Payments

B‐7 Internal Loan Payments

B‐8 External Debt Balance

B‐9 Internal Loan Balance

Transportation (C):

Roadways

Bridges

Pathways/Sidewalks

Community (D):Sport/Rec/Cultural Facilities

Other Facilities (Public Ops, West Leth Ctr)

Transit

Community Partnership

EnvironmentalUtilities (E):

Water

Wastewater

Solid Waste

Electric Utility (F):

Transmission

Distribution

Support

Stormwater

Basic Capital Grant

Pay‐As‐You‐Go

MSI / AMIP Grant

Other Grants

MSI / AMIP Grant

Pay‐As‐You‐Go

MSI / AMIP Grant

Other Grants

MSI / AMIP Grant

Other Grants

Offsite Levy

External Loan

Offsite Levy

Other Grants

Internal Loan

External Loan

MRSR

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Section C – Transportation

Section D ‐ Community

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Section E – Environmental Utilities

Environmental Utility Budgets

Operating & Capital Mtce

Funded fromUtility Rates

Debt Payments

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eed

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Section F – Electric Utility

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Section G – Grants/Funding

Municipal Sustainability Initiative (MSI) G 1G‐1

Alberta Municipal Infrastructure Program (AMIP) G‐2

Federal Gas Tax Fund (formerly NDCC) G‐3

Basic Capital Grant (BCG) G‐4

Municipal Sustainability Initiative (MSI) – Page G‐1

Purpose: Provide long‐term sustainable funding to enhance municipalfunding to enhance municipal sustainability.

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MSI – Page G‐1

Eligible projects:

“R d d B id P bli T it “Roadways and Bridges, Public Transit Vehicles and Facilities, Water, Wastewater, and Storm Sewer Management, Emergency Service Facilities and Equipment, Solid Waste Management Facilities and Equipment, Maintenance Equipment, Infrastructure Management Systems, Community & Recreation Facilities, and other Municipal Buildings and Facilities”

Alberta Municipal Infrastructure Program (AMIP) – Page G‐2

For “Core Infrastructure”

R d & B id Roadways & Bridges

Public Transit

Water Supply and Treatment Systems

Wastewater Treatment Systems

Storm Sewer drainage Systems

Emergency Service Facilities and Vehicles

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Alberta Municipal Infrastructure Program (AMIP) – Page G‐2

Other infrastructure can only be funded after the City has certified that it’s coreafter the City has certified that it s core infrastructure is in good condition

2009/2010 is the final year of Grant Funding

Projects must be completed by December 31, 2015

Grants – Federal Gas Tax FundPage G‐3

Purpose: Development of environmentally sustainable municipalenvironmentally sustainable municipal infrastructure to maintain or enhance economic, social and cultural opportunity and well being, while protecting and improving the quality ofprotecting and improving the quality of our environment upon which people and economies of Alberta depend

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Grants – Federal Gas Tax FundPage G‐3

Eligible projects:

P bli T it Public Transit

Water and Wastewater Management

Stormwater

Solid Waste Management

Community Energy Systems

Roadways and Bridges

Grants – Basic Capital Grant (BCG)Page G‐4

$60 per capita based on the previous year’s official populationofficial population.

75 percent Province/25 percent City cost sharing

For transportation capital‐related projects.

The City’s 25% matching share is funded The City s 25% matching share is funded from the Pay‐As‐You‐Go program

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Grants – Basic Capital Grant (BCG)Page G‐4

Eligible projects: Roadways and Bridges, Utility Rehabilitation and Public TransitUtility Rehabilitation, and Public Transit System

Note: City of Lethbridge uses this grant for the maintenance and upgrades to our transportation system

Questions?

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2011 – 2020 2011 – 2020 Capital Improvement ProgramCapital Improvement Program

Presentation to Finance CommitteeMay 10 2010


Infrastructure Services

May 10, 2010May 10, 2010

TRANSPORTATION 2011 - 2020 CIP

TRANSPORTATION 2011 - 2020 CIP


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Transportation CIP Project Identification

• Growth – with the Growth Management Plan

• Capacity – through the Transportation Master Plan and Intersection counts

• Condition Assessments – through condition assessments of our system we determine the annual rehab necessary

• System Upgrades – through public requests, inspection programs, warrant analysis and planning studies system


y p g yupgrades are identified (ie. Pathway missing links, sidewalk pararamps, traffic calming)

Transportation CIP Project Prioritization

• Maintaining Safety• Maintaining Safety• Maintaining Levels of Services• Preserving Existing Infrastructure• Upgrades to Existing System• Providing Access for Growth


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Transportation CIP Funding Options

Transportation projects are funded by the following sources

• Tax supported – Pay as you Go• Provincial / Federal Grants• Offsite Levies – restricted to growth projects


Refer to C-1Infrastructure – TransportationInfrastructure – TransportationCapital Improvement Program

2011 – 2020 ProjectsCommencing in the First Three

Years


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Upgrade Existing System – C-16, Scenic Drive North, 9 Ave / Stafford Dr

Projects, next three years:

• Scenic Dr North 9 Ave N / Stafford DrScenic Dr North, 9 Ave N / Stafford Dr• 2010 -$1,000,000 previously approved

Budget, next three years:• 2011 - $9,500,000• 2012 - $9,500,000

Prepare a detailed design and provide construction services


Construct the initial two lanes of an ultimate four lane roadway with ultimate earthwork

Upgrade Existing System – C-17, 43 Street N


• Prelim design – 43 St - Hwy 3 / 62 Ave NPrelim design 43 St Hwy 3 / 62 Ave N

• Construct a four lane roadway from Hwy 3 to • 9 Ave N divided

Budget, next three years:• 2011 - $300,000• 2013 - $6,600,000

Prepare a detailed design and provide


p g pconstruction services.

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Upgrade Existing System – C-18, 26 Avenue N, 23 Street to 28 Street


• 26th Ave N 23 Street / 28 Street N26 Ave N, 23 Street / 28 Street N

Budget, next three years:• 2012 - $2,100,000

Prepare a detailed design and construct a four lane roadway to connect with that recently constructed in 2007 at 28 Street.


Upgrade Existing System – C-19Mayor Magrath Drive, 40 Ave S to City Limit,


Mayor Magrath Dr 40 Ave S to City Limit• Mayor Magrath Dr, 40 Ave S to City Limit


Prepare a detailed design and construct embankment fill to accommodate the Ultimate six lane divided roadway.


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Provide Access for Growth - C-31, Metis Trail, Simon Fraser to Garry Drive


• Metis Trail Temple Blvd / Whoop-up DriveMetis Trail, Temple Blvd / Whoop up Drive

• Metis Trail, Simon Fraser / Temple Blvd

Budget, next three years:• 2011 - $3,000,000• 2013 - $2,200,000

Prepare a detailed design and construct the


Prepare a detailed design and construct the initial two lanes of Arterial Roadway to accommodate development

Provide Access for Growth - C-32, Garry Drive, Existing to 600m west of Metis Trail


• Garry Drive existing to 600m west ofGarry Drive, existing to 600m west ofMetis Trail (to first development entrance)


Prepare a detailed design and construct the initial two lanes of Arterial Roadway to accommodate development


p

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C-2 shows the Transportation program out to 2020C 2 shows the Transportation program out to 2020

Questions?


Maintain Safety - C- 5, Gravel Road Upgrading

Projects, next three years: • 43 Street from 26 Ave north • Whoop-up Dr, to City Limits

As required (unidentified)• As required (unidentified)

Budgets, next three years:• 2011 - $700,000• 2012 - $525,000• 2013 - $550,000

Involves reconstruction of existing gravel roads or upgrading to a paved standard rural roadway if traffic volumes warrant


roadway if traffic volumes warrant.

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Maintain Safety – C-6, Intersection Improvements –Growth

Projects, next three years:• 13 Street N / 26 Ave N• Garry Drive / Squamish W

43 N / 2 A N• 43 N / 2 Ave N• 43 N / 5 Ave N• University Dr. W / Highlands Blvd. W

Budget, next three years:• 2011 - $1,000,000• 2012 - $1,051,000• 2013 - $1,104,000


As Warranted:- Traffic and Pedestrian Volumes,- Accidents History, - Congestion

Project involves new traffic signals and geometric improvements in new growth areas.

Maintain Safety – C-7, Intersection Improvements –Non-Growth

Projects, next three years:• MMDr / 5 Ave S• 9 Ave / 36 St N• 23 St / 9th Ave N• 13 St / 5 Ave N• 13 St /6 Ave S• 16 Ave / 13 St S

Budget, next three years:• 2011 - $1,000,000• 2012 - $1,051,000• 2013 - $1,104,000


As Warranted:- Traffic and Pedestrian Volumes,- Accidents History,- Congestion

Project involves new traffic signals, signal upgrades and geometric improvements in older non-growth areas.

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Maintain Safety – C-8, Sidewalk Mobility Ramps

Projects, next three years: • Downtown / Hospital Areas• Older Communities (central

neighborhoods in Lethbridge)

Budgets, next three years:

• 2011 - $250,000• 2012 - $263,000• 2013 - $275,000

Approximately 25 intersections and 25 handicap parking stalls per year will be reconstructed until 2016


reconstructed until 2016

Follows the request of the Canadian Paraplegic Association.

Maintain Safety – C-9, Bikeways/Pathways on Roadways


Bicycle Lanes• 13 St – 16 Ave S / 26 Ave N

10 Ave S MMDr / 13 St S• 10 Ave S –MMDr / 13 St SPathways

• Scenic Drive -1 Ave S/5 Ave N

Budget, next three years:

• 2011 - $500,000• 2012 - $525,000• 2013 - $551,000


Program will complete pathway connections and develop bikeways within roadways as per the Bikeways/Pathways Master Plan adopted by Council in 2007.

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Preserve Existing Infrastructure – C-10, Arterial Rehab


• Various locations


• 2011 - $1,000,000• 2012 - $1,051,000• 2013 - $1,104,000

Ongoing program varies as indentified from annual condition inspection program.M i i l P t M t


Municipal Pavement Management Application (MPMA)

Intent of the Overlay program is to maintain our Arterial roads to an acceptable standard and protect this valuable asset.

Preserve Existing Infrastructure – C-11,Bridge Rehab


• Whoop-up BarrierR l t (2011)Replacement (2011)

Budget, next three years:• 2011 - $1,315,000• 2012 - $319,000• 2013 - $293,000

Ongoing program varies as indentified from annual condition inspection program.Bridge Management System


Bridge Management System

Intent of the Bridge Rehab program is to maintain our Parks and Transportation bridges to an acceptable standard and protect this valuable asset.

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Preserve Existing Infrastructure – C-12, Community Lighting - Rehab


• Arterials / Downtown / Older neighborhoodsg

Budget, next three years:• 2011 - $300,000• 2012 - $316,000• 2013 - $332,000

Condition Assessment completed in 2010

Program replaces 1% of street lights annually


Program replaces 1% of street lights annually that are beyond their useful life.

Secondary benefit is to replace street lights with LED bulbs (less electricity).

Preserve Existing Infrastructure – C-13, Traffic Signal Replacement


• Older traffic signals that require upgrades


Condition Assessment completed in 2010.

I t t f thi l T ffi Si l


Intent of this program replaces Traffic Signals that are beyond their useful life .

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Preserve Existing Infrastructure – C-14, Major Sidewalk Rehab


• Downtown/London Road


• 2011 - $190,000• 2012 - $200,000• 2013 - $210,000

Ongoing program varies as indentified from annual condition inspection program.


Infrastructure Management System

Intent of this program replaces approx. 750 m (1 or 2 blocks) annually that are beyond their useful life.

Preserve Existing Infrastructure – C-15,Railway Rehab Program


• Signalization of approx 5 Rail-Road crossings

• Rehabilitation of Rail Spur lines as required• Rehabilitation of Rail Spur lines as required


Initial crossing assessment indicates 11 signalized crossings required of 24


Intent of this program is to repair spur lines as required through ongoing inspections

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Upgrade Existing System – C-20, C-21,Planning Projects


• Mayor Magrath Drive 3 Ave S to 3 Ave NMayor Magrath Drive, 3 Ave S to 3 Ave N

• 6 Ave South, Mayor Magrath Dr to Scenic Dr


• 2012 - $315,000, each project

Conduct a Functional Design of Roadways to determine upgrades to accommodate increased traffic and growth


g

Upgrade Existing System - Planning Projects

2014 -2020, Planning Studies

• C-22, 5 Avenue North, Stafford Dr to MMD,

• C -23, Interchange preliminary design –Whoop-up/University Dr and Whoop-up/ Scenic Dr

• C-24, 13 Street N, Crowsnest Trail to 26 Ave N

• C-25, University Drive, North of Rail tracks to Hwy3,

• C-26 Transportation Master Plan


C-26, Transportation Master Plan,

Planning Studies are needed to determine land requirements, initial costs estimates, determine constraints, obtain public and Council approval.

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Upgrade Existing System – Construction Projects

2014 -2020, Construction Projects

• C-27, Whoop-up Drive (McMaster to Aquatania Blvd.), 2016

• C-28, University Drive (Sunridge Blvd to Community Stadium), 2018

• C-29, 26th Ave N (31st N to 43rd Street N), 2020

• C-30, 28th Street N (5th Ave to 18th Ave N), 2020

• C-17, 43rd Street North (9th Ave to 26th Ave N) 2019


Ave N), 2019

• C-18 26th Ave N (Scenic Drive N to 23rd Street N), 2021

• C-19 Mayor Magrath Drive (40th Ave S to South City Limits), 2015

As Warranted: Traffic and Pedestrian Volumes, Accidents History, Congestion

Provide Access for Growth – C-33, C-34Planning Projects


• C-33, North Scenic Drive, Upland Blvd / 62 Ave, in 2013

• C34, 44 Avenue North, Scenic Dr N to 43 Street N, in 2013

Planning Studies are needed to determine land requirements, initial costs estimates, determine constraints, obtain public and Council approval.


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2014 -2020, construction projects

Provide Access for Growth – Construction Projects

•C-31, Metis Trail (Whoop-up Drive to Caledonia), 2016

•C-31, Metis Trail (Jerry Potts W to Garry Drive W), 2018

•C-35, Jerry Potts, 2018

•C-36, Whoop-up Drive (Coalbanks Gate to 30th Street W), 2014


•C-37 43rd Street S (24thAve/Hwy4 to 40th Ave), 2018

As Required by development

2011 – 2020 2011 – 2020 Capital Improvement ProgramCapital Improvement Program




May 11, 2010May 11, 2010

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Waste & Recycling Services 2011 - 2020

Capital Improvement Program


Waste & Recycling Services CIP Project Identification

• Regulations• Planning DocumentsCity Council Strategic initiativesMaster Plans (eg. Waste Prevention &

Diversion)Business plans


• Lifecycle management of assets

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Waste & Recycling Services CIP Project Prioritization

• Health & Safety• Health & Safety• Regulatory compliance• Condition assessment• Maintaining a Level of Service

Fi i l i bilit


• Financial viability

Refer to E-1Environmental UtilitiesEnvironmental Utilities

Capital Improvement Program 2011 – 2020 Projects

Commencing in the First Three Years


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Disposal Cell Construction (E-7)Description• Design & construction of waste disposal cells

•2011 - $4 5M

Description• Design & construction of waste disposal cells

•2011 - $4 5M•2011 - $4.5M•2014 - $5.7M

Purpose & Justification• Consume 200,000 cu m of air space per year• Current staging plan

• Cell #4 – 2011

•2011 - $4.5M•2014 - $5.7M

Purpose & Justification• Consume 200,000 cu m of air space per year• Current staging plan

• Cell #4 – 2011


Cell #4 2011• Cell #5 – 2014• Final 2 cells = 8 to 10 yr capacity

Cell #4 2011• Cell #5 – 2014• Final 2 cells = 8 to 10 yr capacity

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Environmental Management at the Closed Sites (E-8)

Description• Design & construction of a gas/leachate collection &

Description• Design & construction of a gas/leachate collection &gas/leachate collection & treatment facility:

•Northside site –2011 - $660K2012 - $660K

•Centre Site –2015 - $550K2016 - $275K

gas/leachate collection & treatment facility:

•Northside site –2011 - $660K2012 - $660K

•Centre Site –2015 - $550K2016 - $275K


Purpose & Justification• Protect public health & safety• Environmental compliance

Purpose & Justification• Protect public health & safety• Environmental compliance

Environmental Management at the Closed Sites

Background• 2 closed sites in Lethbridge• Have been monitoring since 2000

Background• 2 closed sites in Lethbridge• Have been monitoring since 2000• Have been monitoring since 2000• Centre site:

• has an active vapor extraction system venting to atmosphere

• Northside site: • No collection or treatment system• Elevated methane gas level beyond the perimeter• Elevated leachate heads

• Have been monitoring since 2000• Centre site:

• has an active vapor extraction system venting to atmosphere

• Northside site: • No collection or treatment system• Elevated methane gas level beyond the perimeter• Elevated leachate heads


• 2010 - Engineering study and preliminary design ($65K)• May require a CIP amendment in 2011 based on design• 2010 - Engineering study and preliminary design ($65K)• May require a CIP amendment in 2011 based on design

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Environmental Management at the Closed Sites

Funding• Unfunded liabilityFunding• Unfunded liability• Unfunded liability• 2010 engineering study will provide better understanding• No dedicated funding source• Create an additional cost pressure for the operating site

• Unfunded liability• 2010 engineering study will provide better understanding• No dedicated funding source• Create an additional cost pressure for the operating site


E-2 shows the Waste Services program out to 2020E 2 shows the Waste Services program out to 2020

Questions?


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Landfill Gas Management (E-9)

Description• Design & construction of a gas collection &

Description• Design & construction of a gas collection &a gas collection & treatment facility (flaring)

•2014 - $2.2M •2015 - $2.0M

Purpose & Justification• Generation of 60,000

a gas collection & treatment facility (flaring)

•2014 - $2.2M •2015 - $2.0M

Purpose & Justification• Generation of 60,000


tonnes of CO2 equiv.• To meet Specified Gas Emitters Regulation

tonnes of CO2 equiv.• To meet Specified Gas Emitters Regulation

Landfill Gas Management

Background• Specified Gas Emitters Regulation

• 2003 reporting requirement > 100K tonnes of C02 equiv/yrd

Background• Specified Gas Emitters Regulation

• 2003 reporting requirement > 100K tonnes of C02 equiv/yrd• 2007 – 12% reduction

• 2009 reporting requirement > 50K -100K tonnes of C02 equiv/yr• 20?? – ??% reduction

• Legislation – Federal, provincial, US EPA• Delayed construction to 2014/2015 • Options (from Master Plan)

• reduce gas generation

• 2007 – 12% reduction• 2009 reporting requirement > 50K -100K tonnes of C02 equiv/yr• 20?? – ??% reduction

• Legislation – Federal, provincial, US EPA• Delayed construction to 2014/2015 • Options (from Master Plan)

• reduce gas generation


g g• purchase offset credits• Collect & treat gas• Current cost estimate based on a flaring system

g g• purchase offset credits• Collect & treat gas• Current cost estimate based on a flaring system

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Landfill Rate Impacts

Rate Changes to support capital programRate Changes to support capital program• 2011 - $2.00/tonne ($54.50/tonne -> $56.50/tonne)

• 2012 – 2014 - no rate increase to support capital costs

• 2010 preliminary design study may result in additional pressure on the capital budget

• 2011 - $2.00/tonne ($54.50/tonne -> $56.50/tonne)

• 2012 – 2014 - no rate increase to support capital costs

• 2010 preliminary design study may result in additional pressure on the capital budget



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Landfill Master Plan Projects

Description• Master plan is underway• Master plan may create

Description• Master plan is underway• Master plan may create• Master plan may create additional projects• Do not anticipate any projects within 2011-2013 CIP time frame

• Master plan may create additional projects• Do not anticipate any projects within 2011-2013 CIP time frame


Recycling Depot Enhancement

Description• Needs survey has been completed

Description• Needs survey has been completedcompleted• Design options review• Council presentation on options – May, 2010• May result in capital expenditures in 2011• Amend CIP at that time if required

completed• Design options review• Council presentation on options – May, 2010• May result in capital expenditures in 2011• Amend CIP at that time if required


requiredrequired

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Water and WastewaterWater and Wastewater

2011 – 2020

Capital Improvement Program


Water / Wastewater / StormwaterCIP Project Identification

• Regulations Upgrades to meet regulatory requirements Upgrades to meet regulatory requirements

• System Growth New facilities and network extensions (offsite funded)

• Performance Failure to meet levels of service Analysis predicting performance issues

A t Lif l R l t


• Asset Lifecycle Replacement Elevated maintenance costs End of useful life

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Water / Wastewater / StormwaterCIP Project Prioritization

• RegulationsMust doMust do

• Risk AssessmentConsequence and likelihood of failure

• Cost-Benefit AnalysisValue comparison of alternatives


• Budget & funding alternatives Can we afford to do this?

Refer to E-1Environmental UtilitiesEnvironmental Utilities

Capital Improvement Program 2011 – 2020 Projects

Commencing in the First Three Years


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Protective PlumbingProgram (E-10)

The purpose of the PPP is to install sump pumps and backwater valves into homes that were damagedhomes that were damaged as a result of the July 1, 2008 rain storm.154 of 379 basements completed as of April 2010

Estimated cost: $3.6M


$Schedule : 2009-2012Funding: -Stormwater Capital

-Wastewater Capital(from Operations)

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Wastewater Treatment Plant Headworks and Clarifier Upgrade (E-14)

This project will implement improvementsimplement improvements recommended in a 2003 WWTP Asset Condition Assessment.

Estimated cost: $8.1MSchedule : 2011-2012


Schedule : 2011-2012Funding: -NDCC Grant

-AMIP Grant -Debenture (Utility Rates)

Water Treatment Plant Residuals Management (E-22)

This project will provide for treatment of water treatment waste streamstreatment waste streams before they are discharged to the river. Regulatory requirements pending.



Estimated cost: $10.7MSchedule : 2012-2013Funding: Debenture

(Utility Rates)

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Northwest Lethbridge Utility Servicing (E-25)

New water, wastewater and storm lines are req ired to maintainrequired to maintain existing levels of service and to allow continued growth in west Lethbridge.



Schedule : 2010-2013Funding: Debenture

(Offsite Levies)

Garry Drive Reservoir (E-29)

This project will provide 15 ML of additional storageML of additional storage capacity and have a pumping capacity of approximately 40 MLD.




(Offsite Levies)

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Southeast Regional Sanitary Lift Station (E-28)

This project will provide the wastewater collection capacity required for continued growth of southeast Lethbridge.


the subject of a


the subject of a negotiation to advance timing

Funding: Debenture (Offsite Levies)

E-2 shows the Water and Wastewater programsE 2 shows the Water and Wastewater programs out to 2020

Questions?


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Wastewater Treatment Plant Additional Bioreactors(E-11)

Thi j t ill idThis project will provide additional bioreactors to double the plant's treatment capacity.



(Utility Rates)

Wastewater Treatment Plant Additional Digester (E-12)

This project will construct a third digester and pro ide the red ndancprovide the redundancy needed for maintenance and increased digestion capacity to accommodate future growth.

d $



(Utility Rates)

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Wastewater Treatment Plant Cogeneration Upgrade (E-13)

This project will consist of removal of equipment from the digester gas floorfrom the digester gas floor and installation of replacement or upgraded equipment; upgrade boilers and standby power transformer.



(Utility Rates)

Treatment Plants SCADA Upgrade (E-15 & E-20)

This upgrade project will replace aging hardware, impro e historical dataimprove historical data handling, and provide enhancements in the system configuration and security.




(Utility Rates)50% / 50%

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Wastewater Treatment Plant Security (E-16)

This project will consist of installing additional fencing controlled gatesfencing, controlled gates and interior and exterior video surveillance; upgrade of plant fire alarm system.

Estimated cost: $1 3M



(Utility Rates)

Water Reservoir Upgrades (E-17)

This project will consist of the replacement of existing mechanical and electrical equipment, controls and instruments to extend the service life and reliability of the stations.

d $



(Utility Rates)

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Water Treatment Plant and Reservoir Security (E-18)

This project will consist of installing additionalinstalling additional fencing, controlled gates and interior and exterior video surveillance.



Schedule : 2016 - 2017Funding: Debenture

(Utility Rates)

Water Treatment Plant No. 2 HLP Switchgear Upgrade (E-19)

This project will consist of the replacement ofthe replacement of existing electrical switchgear and pump motors to extend the service life of the plant.



Schedule : 2012Funding: Water Capital

(from Operations)

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Water Treatment Plant Transmission Pipeline Rehabilitation (E-21)

This project will consist of th li i f th i tithe relining of the existing steel water pipelines to extend their service life.



Schedule : 2010-2013Funding: Water Capital

(from Operations)

Water Treatment Plant Process Redundancy (E-23)

This project will retrofit Plant No. 2 (constructed in 1956) with new technology1956) with new technology and provide the required level of treatment process redundancy.




(Utility Rates)

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Water Treatment Plant Additional Filters

This project will provide the additional filters tothe additional filters to increase the plant's treatment capacity.




(Utility Rates)

Métis Trail Drive Deep Utilities Phase II (E-24)

This project will provide the additional water distribution anddistribution and wastewater collection capacity required for growth in the southwestern areas of west Lethbridge.



(Offsite Levies)

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North Sanitary Siphon Twinning (E-26)

This project will provide the additional wastewater collection capacitcollection capacity required for growth in the northern areas of north Lethbridge.




(Offsite Levies)

West Siphon Screen Relocation (E-27)

This project will increase the capacity of the existingthe capacity of the existing siphon and allow continued growth in the southeastern areas of west Lethbridge.


Estimated cost: $2.0MSchedule : 2015Funding: Offsite Levies

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Distribution System Looping (E-30)

This project consists of water distribution system improvements such as additional interconnections, parallel mains and upsized mains.



Estimated cost: $3.0MSchedule : 2011-2016Funding: Offsite Levies

Infrastructure ServicesWastewater


Debt Servicing ChartTo be inserted here

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Steel Pipeline

Infrastructure ServicesWater

Infrastructure ServicesWastewater

D bt S i i Ch t

Steel Pipeline Relining Project




Electric2011 – 20202011 2020 Capital Improvement Program


Presentation – Finance Committee

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Electric Utility CIP Project Identification

Transmission• Large projects – external (AESO/AUC).Large projects external (AESO/AUC).• Smaller projects – same as Distribution

Distribution• Regulatory Compliance• Condition assessment• Planning and Design (includes Load Growth and

Safety)


Safety).• Financial (cost/benefit, risk/liability analyses)• Support – process improvement/change.

Electric Utility CIP Project Prioritization

In order of importance• Safety• Regulatory Compliance• Maintenance of Service Level• Financial


• Improvement of Service Level

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Electric Utility

Classification of Electric PlantClassification of Electric Plant

• Transmission, Distribution, Support

Capital Plan primarily Program Based.


Refer to F-1Infrastructure – Electric UtilityInfrastructure – Electric UtilityCapital Improvement Program

2011 – 2020 ProjectsCommencing in the First Three

Years


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Capital Plan Organization

TransmissionDistribution

P i S i E t i d• Primary Service Extensions and Programs

• Secondary Service Programs• Transformation Programs• Special – Cable Replacement Program


• Special – Advanced Metering Infrastructure.

Support

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Distribution Projects - DetailsGroupings (F-16, F-18, F-21)

• Primary, Secondary, Transformation

Typically based on % of plant value• New construction or life extensions/inflation (9.5%), ( ),

and depreciation (3.0%) of base primary values.

Example Projects for 2011/2012• Remove existing river crossing (111S-2)• Replace concrete poles 43rd St./Hwy. #3 to 146S (9th

Ave. N)• Underground lines 241S - #3 and #4 (Industrial area).


• Build new tie line between substations 241S (Sherring Park) to 146S (9th Ave. N. industrial park).

• Build new circuit between switching cubicles (SC91-SC204)

Distribution - Special

F-17 : Infrastructure Replacement• Underground cable installed in 1960’s and 70’s.• Older cable quality unacceptable.• Global replacement required.• Late 2010/2011 – establish program and evaluate

results.• $ 5 million to $7 million annually.• Community Impact.


Minimize service interruptions. Extensive customer communication.

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Red(1970)

F-17

Orange(1975)

Yellow

Infrastructure Services93

(1980)

Impact on Rates

Transmission Projects have no impactDistribution ProjectsDistribution Projects

• Increases based on primarily on new investments• 2012 and on – cable replacement/AMI has

significant impact.

Approximately 2.2% impact in 2011• Average residential ($ 0 95/month)


• Average residential ($ 0.95/month)

AMI initiative not included in above amount.

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Distribution - Special

F-19 : Advanced Metering Initiative (AMI)• AB government regulation (2010) – currently

in draft form.• Current draft would require replacement of all

meters in the City of Lethbridge.• Implementation 2012 – 2017.• Automatic meter reading – all customers.• In Home Display (IHD) for all customers.


p y ( )• Influence customer behaviour.• $ 25 - $30 million cost over CIP timeframe.

Impact on Rates

Transmission Projects have no impactDistribution ProjectsDistribution Projects

• Increases based on primarily on new investments

• 2012 and on – cable replacement/AMI has significant impact.

AMI initiative may add approximately $7.00


AMI initiative may add approximately $7.00 to $10.00/month to each electric customer.

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F-2 shows the Electric programs out to 2020F 2 shows the Electric programs out to 2020

Questions?


Electric Capital Plan Organization

Transmission• As defined by Electric Utility Act (EUA)• 138 000 volts – from generator to City substation• 138,000 volts from generator to City substation.

Distribution• As defined by EUA• 25,000 volts and below – from City substation to

home.


Support Programs• Contribute to both Transmission and Distribution.• Allocated to Transmission or Distribution

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Electric Utility SystemTransmission

• 5 major subs (138/13.8 kV)

• 35 km 138,000 volt Distribution

• 780 km underground

• 200 km overhead• 4,000 transformers

Support


pp• SCADA, Fiber,

Work and Facilities Management.

Typical Substation


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Distribution Underground


Distribution Overhead


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Support - SCADA


Transmission vs DistributionTransmission Distribution

D fi iti El t i Utilit A t El t i Utilit A tDefinition Electric Utility Act Electric Utility Act

Cost Recovery

Transmission Rate to Province

Distribution Rate to Customers.

Standards Set by Province Set by industry/City


Projects Assigned by AESO.

Approved AUC

Approved by Council

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Transmission Projects - Details

Projects based on condition assessment.

• Major projects either completed or underway.

West side substation – additional transformer (2009).

Transmission line (26th Ave. N.) rebuild (2010).

• New projects

‘Like-for-like’ replacement


Like for like replacement.

Require AESO (Alberta Electric System Operator) and AUC (Alberta Utilities Commission) approval.

Transmission Projects – (2011 – 2020)

Like-for-like (no specific approvals required).• North and South East substations – protection and control.

$ 600,000 (2012) (Ref : F-4)$ , ( ) ( )• West side substation – T1 (first transformer).

$1.5 million (2015) (Ref : F-6).• Industrial Park substation – Switchgear replacement.

$ 1.5 million (2014) (Ref : F-9).

Enhancements or New (AESO and AUC approvals) • Line rebuild (26th Ave. N. to substation)

$ 1 1 million (2011) (Ref : F 14)


$ 1.1 million (2011) (Ref : F-14).

• River valley substation –transformer replacement. $ 1.4 million (2013) (Ref : F-6). Requires distribution system analysis and approvals.

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2011 - 2020Transmission

- 146S and 593S –protection and control.

241SSwitchgear

138 kV Line

- 111S (River Sub) – T3

- 674S (West Sub) – T1

- 241S (Industrial Sub) –Switchgear replace. 674S – T1

111S – T3

146S – P&C

593S – P&C


- 734L/813L Line rebuild.

Other Transmission Projects.

Potential Generator – Industrial Park• $ 1.7 million (2011) (Ref : F-12).• External influence – ‘direct assigned’ project.

Potential new west side substation and 138 kV line.

• $ 6.8 million (2017) (Ref : F-11) – substation.• $ 3.4 million (2017) (Ref : F-13) – 138 kV line.


• Requires extensive distribution analysis and approvals.

Misc. Upgrading (Ref : F-7, F-10).

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Capital Plan Organization

TransmissionTransmissionDistribution

Support• Allocated to

T i i /Di t ib ti


Transmission/Distribution

Support

Information Technologies• AM/FM and Work Management (F-27,

F-28) Roll out to field crews – new regulatory

requirements (AUC). Add transmission and fiber. $ 900,000 (2011 to 2013).


• Fiber Network (F-29) Several major extensions and replacements. $ 1.1 million (2011 to 2013)

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Support – cont.SCADA (F26)

• Supervisory Control and Data Acquisition• Maintenance and cycle replacement of existing.• $ 800 000 (2011 to 2020)• $ 800,000 (2011 to 2020)

Critical Infrastructure (F-31)• Regulatory compliance (AESO/NERC)• Protection of critical transmission components.• $ 1.3 million (2011 to 2020).

Fleet (F-24)R l t d h t f El t i


• Replacement and enhancement of Electric vehicles.

• $ 1.9 million (2011 to 2020).Other – Environmental,

Advanced Metering Infrastructure

From “Executive Summary” of Draft.• “The role of Advanced Metering

Infrastructure (AMI) in Alberta is envisioned to be enabling –empowering Albertans in wise energy use, setting the stage for further development of retail markets and as


development of retail markets and as one of the key features necessary to move to smart grid technologies.”

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