Report to: General Committee Date of
Meeting: February 14, 2011
SUBJECT: Status of Capital
Projects as of November 30, 2010
PREPARED BY: Andrea Tang, Manager Financial
Planning
RECOMMENDATION:
1)
THAT the report entitled “Status
of Capital Projects as of November 30, 2010” be received;
2)
AND THAT $10.65M from closed
capital projects be transferred to the sources of funding as listed on Exhibit
A;
AND THAT Staff be authorized and directed
to do all things necessary to give effect to this resolution.
BACKGROUND:
There are approximately 170 projects recommended for closure with a
total budget remaining of $10.65M as of November 30, 2010, which will be returned
to the original sources of funding as listed in Exhibit A. There are three projects identified to be
closed of which the remaining funds from theses projects represent 65% of the
$10.65M. Details on these projects will
be discussed later in this report.
PURPOSE:
To obtain approval from Council on the closure of capital projects
as outlined in Exhibit B and the corresponding remaining funds be returned to
the original sources of funding.
FINANCIAL
CONSIDERATIONS:
A detailed listing of projects to be
closed and the funding amounts to be transferred are included in the following exhibits:
Exhibit A “Summary of Closed Project Funding to be Transferred”
summarizes where the closed capital project balances will be transferred;
Exhibit B “Closed Projects – With Funds to be Returned
to Original Sources of Funding” provides a detailed summary by project where
the closed capital project balances will be transferred.
Exhibit C “Closed Projects – Fully Expended” provides
a list of projects have been fully expended and there are no remaining funds to
transfer.
Exhibit A summarizes the return of funds
from the closed capital projects to the original sources of funding. In
accordance with the Capital Budget Control Policy, the remaining funds from the
closure of operating budget and life cycle replacement and capital reserve
funded capital projects will be transferred as follows;
The capital contingency is topped up to a maximum
of $250k from closed projects. Currently the capital contingency account has a
zero balance therefore the first $250,000 of remaining funds from Life Cycle
and Operating Budget projects will be allocated to the contingency account.
Similarly, there are Planning Development
Charge (DC) and Design DC capital contingencies that are funded from the
closure of capital projects in the Planning department and in the Design department
to a maximum of $50,000 and $100,000 respectively. The Planning DC contingency
currently has a balance of $50,000, therefore no additional funding is required
at this time. The Design DC contingency
currently has a balance of $14,870 however the funds available from Design
projects identified for closure total to $46,781. The Design DC contingency will be topped up to
$61,651 ($14,870 + $46,781).
In accordance with the Capital Budget Control Policy Section 4.1,
projects that remain inactive for a period of twenty-four months or longer are
subject to closure. The non-compliant projects were reviewed by the business
units and where appropriate, projects were closed and included in Exhibit A.
In
summary, the net amount of $10.65M as outlined in Exhibit A will be transferred back to the original sources of funding as
follows:
Source of Funding Amount
DCA $8.79M
Design Contingency $0.05M
Reserve
Funds $0.72M
Reserves $0.84M
Capital
Contingency $0.25M
Total $10.65M
The
majority of the projects listed in Exhibit B are projects that were completed
within budget. Projects that were under spent will have the balance transferred back to the
original source(s) of funding. As
previously discussed, there are three Engineering projects listed on Exhibit B
that represent approximately 65% of the $10.65M to be returned to the original
funding sources and details on each of the projects are outlined below:
Project #6745 – 14th
Watermain: McCowan to Boxwood – Budget of $7.20M with remaining funds of
$1.64M. Report entitled “Award of Tender
#001-T-06 and RFP #012-R-06 14th Avenue Watermain Construction,
McCowan Road to Boxwood Crescent” was approved by Council with the awarded
costs lower than budget and contingent funds were not fully utilized.
Project 6749 – Hwy 7 Sanitary Sewer Design
& Construction – Budget of $1.96M with remaining funds of $1.70M. The budget request was for detailed design
and construction of sanitary trunk sewer.
The design was initiated in 2008 and completed in 2009. The remaining funds were budgeted for the
construction of the second phase of the Hwy 7 trunk sanitary sewer. Subsequent to discussions with the developer
in 2009, it was agreed that the developer will upfront the full construction
cost of the second phase of the trunk sanitary sewer with condition the
developer will receive Development Charge credits/reimbursements. As such, the capital project is requested to
be closed and the remaining funds be returned to the original funding sources.
Project 7261 – PD 1-7 / Markham Centre
Stormwater Management Pond #2 – Budget of $6.44M with remaining funds of
$3.61. The budget request was for
detailed design and property acquisition for Stormwater Management (SWM)
Pond. Property acquisition took place in
2007. Subsequently, an agreement was
made between the Town and the developers that the developers to complete the
SWM pond design and construction with provisions for Development Charge
credits/reimbursements.
RECOMMENDED
BY:
ATTACHMENTS:
Exhibit
A Summary of Closed Projects
Funding to be Transferred
Exhibit
B Closed Projects – With Funds to
be Returned to Original Sources of Funding
Exhibit
C Closed Projects – Fully Expended