creating partnerships through capital investments
TRANSCRIPT
Creating Partnerships Through Capital Investments
BC Transit’s Capital Program• BC Transit’s Five Year Capital
Plan is approved annually by the Province and BCT’s Board of Directors
• Capital infrastructure requirements have increased significantly over the last ten years
• Annual reviews are used to balance the needs to replace ageing or undersized infrastructure with affordability
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
6.8 8.421.4 16.5
35.7
70.7
150.0
39.2 37.6
90.4 87.3
109.9
81.3
104.8
$ m
illio
ns
Fiscal Year
Historical and Forecast Capital Expenditures
Developing the Capital Plan
Annual Capital Planning Timeline
ONGOING - SPECIFIC PROJECT APPROVALS (BUSINESS CASES)
MAY and JUNE
•Project Identification
•Development of Draft Capital Plan
JULY
•BCT BoD Approves Draft Capital Plan for Submission to Province
AUGUST
•Draft Capital Plan Submitted to Province
SEPTEMBER
•Local Governnment Budgets Sent
JANUARY
•Province and BCT BoD Approves Service Plan and Capital Plan
APRIL
•New Capital Plan Starts
Capital Planning Challenges• Provincial and Local Government planning and funding cycles don’t always
align• BCT Board of Directors approves a 5 Year Capital Plan• Province approves a 3 Year Service Plan• Local Governments approve 3 Year Budgets and 1 year AOAs• Fiscal Year versus Calendar Year
• Some projects will have long lead times for implementation• Approvals may be required well in advance despite funding uncertainties
• Infrastructure requirements must continually be balanced with affordability – this may vary from community to community
Categories of Projects Projects in the Capital Plan are divided into two categories to better manage the planning and approval processes:
• Base Projects: projects that are a requirement for maintaining the existing transit system (ex. asset replacement). These projects are approved by BCT’s BoD and financial implications are included in local government AOA/budgets.
• Expansion Projects: projects involving major expansion of the asset base, typically required to meet growing ridership demand. These projects are often discretionary and require specific approval from local government and the Province.
Base Projects
66%
Expansion Projects
34%
2012/13 - 2016/17Total Cashflow by Project Category
Base Project Approval Process
Base Projects Identified
Local Government
Budgets
Business Case Development
BCT BoD Approval Implementation
Expansion Project Approval Process
Feasibility Planning
Local Government
Committment to Proceed
Business Case Development
Local Government Endorsement
MOTI Approval
Federal Funding
Approval
BCT BoD Approval
Local Government
Budgets
Planning as a Partnership• Projects should be planned in partnership with local governments
• This will assist in mitigating funding and approval timing challenges
• Planning and local government endorsement requirements will vary depending upon the project type
• Several activities must happen before a project can move to the implementation stage
Example #1: Transit Exchanges
Pre-implementation Planning
Conceptual Designs
Order of Magnitude Costs
Stakeholder Consultation
Options Evaluation
Recommended Option
Local Government
Endorsement of Recommended
Option and Funding
(Term Sheet or Council
Resolution)
3-5 Months Varies
BCT Business Case
MOTI Business Case
FederalBusiness Case(if applicable)
Approvals
2-6 months
Operational Requirements
GeographicBoundaries
Site Options
Options Evaluation (high level)
Shortlist Options
Feasibility Planning
Local GovernmentCommittment
to Project
2-4 Months Varies
Example #2: Expansion VehiclesPre-impPlanning
BC Transit Vehicle AssetManagement
Determines Fleet Allocations and Bus Purchase Requirements
1-2 Months
BCTBusiness Case
MOTI Business Case
Approvals
2-3 months
Years 2-3Buses are Ordered
8-18 months
Implementation
Transit Improvement
Plan
Prioritize expansion requests
3 Year Service Plan Development
Local GovernmentEndorsement
ofExpansion Hours and
Buses
Local Government
BudgetsPrepared
2 Months 2 Months
Breakout Session #1Objective: To gather feedback on the best way to work with local governments and operators to develop capital projects.
Group 1 & 2: Exchange ProjectGroup 3 & 4: Expansion Vehicle Project
• At what stage would you like to be engaged and how?• Who should BCT staff work with?• What information can you provide to assist in the planning process?• What should BCT be providing that will assist local partners in
endorsing the projects?
Summary of Breakout Session #1
Breakout Session #2
Objective: To discuss various approaches available to secure local government funding endorsement for expansion projects.
Group 1 & 2: Exchange Project
Group 3 & 4: Expansion Vehicle Project
• What mechanisms are available and are they acceptable? AOA process, Council resolutions, Term Sheets, etc.
• What information needs to be provided to local partners in order for BCT to receive their endorsement?
• Is endorsement at the Council level or staff level?• What, if any, challenges exist with the endorsement model? How can
these challenges be mitigated?
Summary of Breakout Session #2
Looking Ahead
• Five year capital plan totals $474 million
• The 2012/13 Capital Plan is largely focused on replacing core assets required to maintain or modestly grow the existing transit system
• Additional expansion projects will be included in future Capital Plans as consultation with local partners occurs
Conclusion• BC Transit is committed to planning for major infrastructure
investments in partnership with local governments
• Feedback from this session will be used to improve the process moving forward