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City of Kamloops
Committee of the Whole
Meeting
November 19, 2019
313622
City of Kamloops | Committee of the Whole Meeting
RECOMMENDATION:
That Council proceed into Committee of the Whole, and
approve the agenda.
APPROVAL OF THE AGENDA
City of Kamloops | Committee of the Whole Meeting
RECOMMENDATION:
That the minutes of the October 29, 2019, Committee of the
Whole meeting be adopted.
MINUTES
City of Kamloops | Committee of the Whole Meeting
REPORTS
City of Kamloops | Committee of the Whole Meeting
PURPOSE:
To seek the Committee of the Whole’s support for the
priorities outlined in the 2019–2022 Corporate Action Plan
2019–2022 CORPORATE ACTION PLAN
City of Kamloops | Committee of the Whole Meeting
SUMMARY
Pillar Complete Current Ongoing Y2 Y3 Y4 Future
Governance
and
Accountability
4 34 50 22 6 1 -
Livability 6 35 53 20 8 2 -
Environmental
Leadership2 11 23 18 - - 2
Vibrant
Economy- 7 8 7 2 - 3
Total 12 87 134 67 16 3 5
City of Kamloops | Committee of the Whole Meeting
RECOMMENDATION:
That the Committee of the Whole recommend that Council
approve the priorities outlined in the 2019–2022 Corporate
Action Plan, as shown on Attachment “A”.
2019–2022 CORPORATE ACTION PLAN
City of Kamloops | Committee of the Whole Meeting
BUDGET 2020-2024
City of Kamloops | Committee of the Whole MeetingCity of Kamloops
Asset Management
Update
November 19, 2019
313622
City of Kamloops | Committee of the Whole Meeting
ASSET MANAGEMENT PROGRAM UPDATE
Purpose:
To provide Council with information on the current status and progress of the Corporate Asset Management Program.
City of Kamloops | Committee of the Whole Meeting
Supports Council’s strategic priorities and areas of focus
regarding:
COUNCIL STRATEGIC PLAN
Governance and Accountability• Asset Management: We proactively plan for the repair and
replacement of our infrastructure.
• Fiscal Responsibility: We are fiscally responsible and accountable.
Environmental Leadership• Climate Action: We enhance the City’s resiliency and capacity for
mitigating and adapting to the impacts of climate change.
City of Kamloops | Committee of the Whole Meeting
BACKGROUND
The benefit of a strong asset management program helps the City do the
following:
• provide for the stewardship of public assets, which is a core purpose of
local governments, as defined in Section 7 of the Community Charter
• allocate financial and human resources effectively and efficiently
• balance the community’s service expectations with its willingness and
capacity to pay for the services
• effectively manage risks to public and staff safety, the environment,
municipal finances, and the City’s reputation
• provide a structured to use this data to make informed decisions about
the acquisition, operations, maintenance, renewal, and replacement of
assets
City of Kamloops | Committee of the Whole Meeting
BACKGROUND
What are the goals of our asset management program?
• the right intervention is made on the right asset at the right
time
• service delivery is financially sustainable both today and in
the future
• services are provided in a way that balances trade-offs
between life cycle costs, risks, customer expectations, and
willingness to pay
City of Kamloops | Committee of the Whole Meeting
BACKGROUNDWhat are the objectives of our asset management program?
• demonstrate organizational alignment, commitment, and
collaboration
• relevant and reliable data about assets is available to those
who need the information.
• life cycle costs, risk, and impacts to level of service—and
trade-offs between them—are considered in planning
processes and whenever decisions are made about City
assets
• resources are in place to enable sustainable service delivery
and continuous improvement in asset management
City of Kamloops | Committee of the Whole Meeting
BACKGROUND – Asset Management Program
InventoryAsset
MaintenanceService Levels
Inspection and
Condition Reports
Determine Replacement
Costs
Long-term Financial Program
Asset Management Program
City of Kamloops | Committee of the Whole Meeting
HISTORY
The program began in 2009, focusing on:
• inventorying the city assets
• implementing a life-cycle cost tracking tool (Asset
Maintenance)
• aligning assets to services levels
In 2012 the Public Sector Accounting Board (PSAB) introduced requirements for the formalized accounting of Tangible Capital Assets (TCAs)
City of Kamloops | Committee of the Whole Meeting
HISTORY
in the last 2 years:
• established a cross functional Asset Management Working
Group
• applied for and received the Province of BC Infrastructure
Planning Grant – monies use to engage Urban Systems to
develop the Asset Management Policy
• developed the preliminary Asset Management Classification
structure
• applied for and received the UBCM Asset Management
Grant that will be used to develop the Asset Management
Strategy
City of Kamloops | Committee of the Whole Meeting
ASSET MANAGEMENT CLASSIFICATIONS - 2019
Water System Information
System Sanitary System Drainage Solid Waste
Parks and Cemeteries
Transportation Network
Buildings & Structures
Equipment
• Mains
• Reservoirs
• Booster
Stations
• PRVS
• Treatment
Plant Systems
• Dams
• Irrigation
• Enterprise
software
• Enterprise
hardware
• Desktop software
• Desktop
hardware
• Enterprise
infrastructure
• Mains
• Lift Stations
• Treatment
Processing
• Landfills
• Diversion Sites
• Containers
• Dikes
• Pumps
• Ponds
(retention)
• Drainage
Collection
• Cemeteries
• Sports Fields
• Multi-useCourts
• Trees
• Amenities
• Roads
• Sidewalks /
Pathways
• Bridges
• Parking Lots
• Street /
Traffic Lights
• Signs
• Arenas
• Pools
• Recreational
• Community/Lease
• Admin/Operational
• Water Buildings
• Sewer Buildings
• Solid Waste
Buildings
• Retaining Walls
• Parkades
• Fleet
• Specialty
Equipment
City of Kamloops | Committee of the Whole Meeting
Establishes a high-level, systematic
approach that supports local governments
in moving toward service, asset, and
financial sustainability through an asset
management approach
The Framework addresses:
• why asset management is necessary
• what asset management is
• how it can be implemented
THE ASSET MANAGEMENT BC (AMBC) FRAMEWORK
City of Kamloops | Committee of the Whole Meeting
CHALLENGES FOR ALL MUNICIPALITIES
External Factors
• rising operating expenses
• stagnating revenues
• new / increased service offerings
• demands for new infrastructure
• insufficient reserves funds
• short-term focus (Council)
City of Kamloops | Committee of the Whole Meeting
CHALLENGES FOR ALL MUNICIPALITIES
Internal Factors
establishing appropriate asset
classification
• maintaining an accurate inventory
• aligning asset use and service levels
• managing risks appropriately
• developing and implementing a long-
term financial program and longer
capital program
City of Kamloops | Committee of the Whole Meeting
WHAT THE DATA TELLS US
$0
$20
$40
$60
$80
$100
$120
$140
$160
0 - 5Years
6 - 10 Years11 - 20 Years21 - 30 Years31 - 40 Years41 - 50 Years51 Years andBeyond
mill
ion
s
Timing of Replacement based on Theoretical Useful Life BRIDGES
City of Kamloops | Committee of the Whole Meeting
WHAT THE DATA TELLS US
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
mill
ion
s
Years
Timing of Replacement based on Theoretical Useful Life
Fleet Reserve Contribution
FLEET
City of Kamloops | Committee of the Whole Meeting
WHAT THE DATA TELLS US
$0
$10
$20
$30
$40
$50
$60
$70
$80
Less than 0 0-5 years 6-10 years 11-20 years 21-30 years 31-40 years 41-50 years more than50 years
mill
ion
s
Timing of Replacement based on Theoretical Useful Life WATER MAINS
City of Kamloops | Committee of the Whole Meeting
How Do we Use the information and where does it come from
City of Kamloops | Committee of the Whole Meeting
RECOMMENDATION:
That the Committee of the Whole receive the Asset Management
update for information.
ASSET MANAGEMENT UPDATE
City of Kamloops | Committee of the Whole MeetingCity of Kamloops
IT AND DIGITAL
STRATEGY UPDATE
November 19, 2019
313622
City of Kamloops | Committee of the Whole Meeting
PURPOSE:
To provide the Committee of the Whole with an update on
the Information Technology (IT) Division and the Digital
Strategy.
IT AND DIGITAL STRATEGY UPDATE
City of Kamloops | Committee of the Whole Meeting
Supports Council’s strategic priorities and areas of focus
regarding:
COUNCIL STRATEGIC PLAN
• Environment – implement strategies that reduce our
impact on the environment by improving technical
capabilities to reduce paper and manual processes,
reduce travel, and promote collaboration
• Infrastructure - invest in the long-term financial stability
of our assets and improve the overall infrastructure
standards of the city by developing strategies to replace
dated IT assets
City of Kamloops | Committee of the Whole Meeting
SUMMARY
• Early 2018 CGI Information Systems (CGI) engaged to
assess current state of technology.
• The City of Kamloops IT Division initiated a technical
assessment summer of 2019.
• Both have been combined into a multi-year roadmap.
• An IT Modernization Program has been kicked off to
manage, design and implement the roadmap activities.
City of Kamloops | Committee of the Whole Meeting
DIGITAL STRATEGY REPORT
• Process:
- Assess current state
- Identify potential future states
- Develop recommendations
• Recommendations were grouped into People, Process and
Technology categories.
• What is People, Process and Technology?
• It is a common framework used in Business Transformation activities
City of Kamloops | Committee of the Whole Meeting
WHAT IS PEOPLE, PROCESS, TECHNOLOGY?
City of Kamloops | Committee of the Whole Meeting
TECHNICAL ASSESSMENT
• In Spring 2019, RFP issued to secure an IT Services
Partner
• Goal was to find a partner that brings technical expertise
and experience to help us execute the Digital Strategy
• Initial activity was a detailed Technical Assessment
completed
Summer 2019
• Several recommendations where identified
City of Kamloops | Committee of the Whole Meeting
DIGITAL STRATEGY ROADMAP
• Recommendations from both the Digital Strategy and
Technical Assessment were combined into one plan
• A roadmap has been developed to address immediate
items and plan for future phases
• An IT Modernization Program using Project Management
best practices has been initiated to implement the
roadmap
City of Kamloops | Committee of the Whole Meeting
DIGITAL STRATEGY ROADMAP
• Details are not important at this time; size and scope is
• Roadmap is in Draft format only; as more information is uncovered additional items will be added/moved
Q2 Q3 Q4 Q1 Q2 Q3 Q4SEP OCT NOV DEC JAN FEB MAR2019 2020 2020 2021
Assessment
Wireless Remediation
Unified Communications Remediation
Data Resiliency
Patch Management
AD Design AD Migrations
Backoffice Upgrade ImplementationBackoffice Upgrade Design
Network Remediation Phase 1
IT M
od
ern
iza
tio
n
Firewall Resliency Network Remediation Phase 2
Core Network Resiliency
Fibre Ring Resliency
Monitoring and Alerting Access Management
DR Planning DR Implementation
City of Kamloops | Committee of the Whole Meeting
DIGITAL STRATEGY ROADMAP HIGHLIGHTS
• Several factors were considered to develop the roadmap:- Expand IT Asset Management from physical replacement of
computers, laptops and phones to include all of our IT
Infrastructure
- Digital security and protection underlies all work and priorities
- Focus on our infrastructure foundation first and then build up
- Implement technologies that will enable new capabilities
- Apply Total Cost of Ownership (TCO) principles by balancing
short term costs with long term savings
City of Kamloops | Committee of the Whole Meeting
DIGITAL STRATEGY ROADMAP HIGHLIGHTS
• Overall, this requires 3-6 years of remediation work to properly address
• Most of the first 2 years will be “under the hood” work but we will include some organizational improvements
- Improve internal wireless access
- Move to a modern email and calendar technology
- Implement technologies that support “Single Sign-On” that allow
users to login once and access all their applications
City of Kamloops | Committee of the Whole Meeting
DIGITAL STRATEGY ROADMAP HIGHLIGHTS
• After the foundational work is complete, we will transition
to enabling capabilities:
- Allow other groups to provide different levels of service such as
pervasive mobile citizen engagement
- Allow us to pursue Smart City services and operational
efficiencies
- Allow us to begin automating internal processes
City of Kamloops | Committee of the Whole Meeting
BUDGETS
• IT Reserve funding process already in place to replace
technical assets
• Some of the funding would be shifted to purchase services
instead of technical assets
• Additional operational funding of $250K is required to
complete these asset management (IT) initiatives
• There are a number of unknowns that will be uncovered as
the roadmap is implemented
City of Kamloops | Committee of the Whole Meeting
KAMLOOPS COMMUNITY NETWORK (KCN)
• Background:
- In 2005, the City of Kamloops built a high-speed fibre network ring
connecting our major facilities
- This immediately reduced our costs to purchase these services from
other providers
- Initial partners were brought on-board to use the service, and share in
costs and revenues
- Over the years, the network itself has expanded but the business
model has not been reviewed
- While it serves the City and our partner needs, it has not expanded
beyond that
City of Kamloops | Committee of the Whole Meeting
KAMLOOPS COMMUNITY NETWORK (KCN)
• In order to develop a plan on how to better utilize the KCN, IT
has undertaken a KCN Commercialization Study through our IT
Services Partner.
• This study will:
- Review our current implementation and business model
- Gather feedback from a set of current and potential customers
- Identify commercialization opportunities
- Provide options and recommendations
• Target completion is Spring 2020
City of Kamloops | Committee of the Whole Meeting
RECOMMENDATION:
That the Committee of the Whole receive the IT and Digital
Strategy Update for information.
IT AND DIGITAL STRATEGY UPDATE
City of Kamloops | Committee of the Whole MeetingCity of Kamloops
2020 UTILITY FUNDS
NOVEMBER 19, 2019
313622
City of Kamloops | Committee of the Whole Meeting
PURPOSE:
To provide Council with a summary of the 2020 – 2024
Financial Plan for the Utility Services
2020 UTILITY FUNDS
City of Kamloops | Committee of the Whole Meeting
Supports Council’s strategic priorities and areas of focus
regarding:
COUNCIL STRATEGIC PLAN
Governance and Accountability• Asset Management: We proactively plan for the repair and replacement of our
infrastructure.
• Fiscal Responsibility: We are fiscally responsible and accountable.
Livability• Safety: We recognize the importance of a safe and secure community.
Environmental Leadership• Climate Action: We enhance the City’s resiliency and capacity for mitigating
and adapting to the impacts of climate change.
City of Kamloops | Committee of the Whole Meeting
Utility funds consists of:
• Water
• Sewer
• Solid Waste and Recycling
Accounted for separately from general operating and capital funds
Each fund sets rates to cover the related operating / capital costs and all surplus funds are set aside for future management of the assets
Utilities overview
City of Kamloops | Committee of the Whole Meeting
SUMMARY
Change in Surplus Reporting Methodology (Water and
Sewer)
• Historically surplus balances were presented as a percentage
of annual revenue
• This method failed to consider asset health and the need to
replace aging or end of life equipment
• Linking surplus (reserve) balance to asset value provides a
stronger financial asset management relationship
City of Kamloops | Committee of the Whole Meeting
2020 Projection Water Sewer
Projected 2020 Ending Surplus Balance $8,533,000 $5,908,000
Projected 2020 Budget Revenues $17,243,000 $16,508,000
Surplus as a % Budget Revenues 49.49% 35.79%
Historical Investment Costs – 2018 $180,858,000 $101,202,000
Surplus as a % of Historical Investment Costs 4.72% 5.84%
Net Book Value - 2018 $108,190,000 $71,634,000
Surplus as a % of Net Book Value 7.89% 8.25%
(Net Book Value – depreciated value of assets)
SUMMARY
City of Kamloops | Committee of the Whole Meeting
SUMMARY
Water
• The utility is financially strong due to effective asset management practices
• Anticipation in the water reserve to grow over the 5 year plan related to assets valuation
• Administration does not recommend any rate changes for 2020
City of Kamloops | Committee of the Whole Meeting
SUMMARY
Sewer• Identified in the 2019 Utility Funds Report to Council, the
sewer utility requires a 7% rate increase for 2020
• Recent approved increases have been required to address
the management of bio-solids and support effective asset
management
• The increase this year provides the financial resources to
complete Phase 2 and 3 of the Tranquille Road sewer main
replacement projects without incurring any debt
City of Kamloops | Committee of the Whole Meeting
SUMMARYSewer, continued
• Staff continue to seek efficiencies in the operation of the sewer
collection and treatment systems:
• The staff at the Kamloops Sewage Treatment Center have implemented
process changes resulting on a $155,000 cost reduction in electrical power
required
• This reduction is the result of a multi-year effort by staff researching
opportunities to optimize the performance of the blowers that provide critical
air to our treatment process.
• Staff working on the sewer collection system are trialing a new
technology that will provide a reduction in frequency in sewer main
flushing requirements through predictive modeling.
City of Kamloops | Committee of the Whole Meeting
SUMMARYSolid Waste
• The solid waste utility remains balanced and healthy, with ongoing efficiency improvements within the collection sector and strong revenues through landfill tipping fees
• The Solid Waste Reserve is currently healthy in anticipation of funding significant upgrades required at all three landfill sites
• These projects are required based on the existing operational certificates and active Design and Operations and Closure Plans for each site
• Administration does not recommend any rate changes for 2020
City of Kamloops | Committee of the Whole Meeting
Utilities Cost to AverageHousehold
2019 2020 $ Change % Change
Utility Rates:
Water $ 379 $ 379 0 0.0%
Sewer $ 417 $446 $29 7.0%
Garbage and Recycling $ 152 $ 152 0 0.0%
PROPOSED UTILITY RATE CHANGES -2020
City of Kamloops | Committee of the Whole Meeting
$0
$100
$200
$300
$400
$500
$600
2019 2020 2021 2022 2023 2024
Water Sewer Solid Waste
PROPOSED UTILITY RATE CHANGES2019 - 2024
City of Kamloops | Committee of the Whole Meeting
RECOMMENDATION:
That the Committee of the Whole authorize:
a) Staff prepare a Sanitary Sewer Amendment Bylaw to be
brought forward at a later date
2020 UTILITY FUNDS
City of Kamloops | Committee of the Whole Meeting
ADJOURNMENT