Transcript Departmental Overview: - Northwest Territories

DEVELOPING
CAPITAL INVESTMENT
PLANS
Outline
 Identify Services and Needs
 Asset Inventory
 Gap Analysis and Project Selection
 Project Substantiation
 Project Prioritization
 Capital and O&M Cost Estimating
 Draft Capital Plan and Plan Approval
What Is Capital Planning?
The process will help communities….
 Understand and identify service related
infrastructure needs…
 Provide a clear vision for administration to
follow
 Allow greatest number of important needs to
be met
Identify Services
 Good quality of life for citizens
 What services to deliver?
 Is the service affordable?
 Infrastructure required to deliver services?
Identify Services
 Water and sewer delivery/pick-up,
 Solid waste storage and pick-up,
 Road maintenance,
 Recreation program, etc…
Identify Needs
 What’s more important…good
roads or recreation facilities?
 What infrastructure is a must for
communities?
 Is it important to link
infrastructure needs to community
service?
Identify Needs
 Immediate Needs
 Grader engine blows
 Predictable Growth Need
 Population
results in
lot development
 Future Needs
 Community interest in a new facility
 Facility replacement requirements
Identify Services and Needs
Identify Existing Assets
 Asset inventory should include:
 Buildings & Contents
 Mobile Equipment
 Water/sewer/solid waste infrastructure
 Roads/Bridges/Signs
Identify Existing Assets
Infrastructure Information Sources:
 NORCIX Information (Bldg and ME)
 Community Infrastructure Assessment
 PW&S Water Systems Review
Inventory
Asset Useful Life
 What is the remaining life of your:
 arena?
 office building?
 mobile equipment ?
 What affects the useful life of an
asset?
Identify Gaps
??
Identify Gaps
 Identify Infrastructure Gaps
 Identify Projects
Identify Projects
Ensure Compatibility
Consider…
 How all projects are connected to
existing infrastructure.
 The O&M implications of new
infrastructure or betterments.
Ensure Compatibility
 Consider affects of new infrastructure
on old.
 Will new water truck fit in garage?
 Will granular stockpile be ready for lot
development?
 Can new pool use heating system from
arena?
 Do assets need to be disposed of?
Project Substantiation
Documenting the:
 What
 Why
 How Much
 When
Of your project……
Project Substantiation
Project Prioritization
What project outweighs another?
 Health and Safety vs Community
Development …balance
 Water Plant or Youth Centre?
 Road Development or Library?
Project Prioritization
Sample Criteria to assess projects…

Health and Sanitation

Wellness

Basic Safety Needs

Legal Requirements

Project Need/Urgency

Public Support
Prioritize Projects
Develop Capital Cost Estimates
 Capital Infrastructure Cost Estimating
 Several methodologies used
 Varying degrees of accuracy
 Capital Equipment Cost Estimating
 Use marketplace including factors such as:
• Freight
• Pre-delivery inspections
• Custom Specifications, etc…
Develop Capital Cost Estimates
 General rule:
 As project approaches implementation the
accuracy of the estimate increases.
Cost Estimating
 A, B, C, D Class Cost Estimates
 Class D: Accuracy 30-35%
• Preliminary approval
 Class C: Accuracy 20-25%
• Planning, definition of project requirements, approval
 Class B: Accuracy 10-20%
• Approval,budgetary control, design cost control
 Class A: Accuracy 5-20%
• Evaluate tenders for cost control during construction
Cost Information Resources
 Capital, O&M, and Energy
 GNWT - MACA and PWS
 Engineering - Consultant or through planning study
 Power - NWT Power Corp.
 Construction - Historic values, NWT Construction
Association.
 Mechanical servicing/inspections - Past invoices
 Tools/supplies - Catalogues/Internet
Total Cost of Capital
 Capital
 Initial purchase or construction cost
 Operations and Maintenance
 Maintenance and repair (per yr)
 Staff Time (per yr)
 Fuel, Power costs (per yr)
Cost Estimates (Capital & O&M)
Example – Grader
Capital Cost = 250 K (Initial Purchase)
O&M Cost = 30 K (Annual)
Energy Cost (Fuel) = 10 K (Annual)
6yrs of O&M = Initial Capital Cost
example
Project Substantiation
Documenting the:
 What
 Why
 How Much
 When
Of your project……
Project Substantiation
Identify Funding Sources
 New Deal provides opportunity for
innovation.
 Local property taxation revenue now an
option.
 Be aware of all of potential funding
sources:
 Territorial
 Federal
 Municipal – FCM
Identify Funding Sources
 Corporate Contributions
 Green Project Grants
 Identify Capital Reserve in Budget
Feasibility Check
 Are projects achievable considering
all factors?
 Is their enough O&M funding to
sustain the asset?
 Capital Policy includes section on
Feasibility.
Draft Capital Plan
 Take the priority project list and fit
into a plan.
 May have to move/drop projects to
future years.
 Decisions will need to be made.
 What needs to be done now and in
the future?
Cash Flow Projects
 Fit projects into available budget.
example
Project Substantiation
Documenting the:
 What
 Why
 How Much
 When
Of your project……
Project Substantiation
Plan Approval
 Typically SAO presents to council for
approval.
 Consultant and other staff may assist if
required.
 Opportunity to discuss and address
“minor” issues.
Plan Approval
 Consultation complete.
 This is your approved working
capital plan.
Next Steps - 20 Year Forecast
 Capital Plans - focus on 1 to 5 years.
 Larger plans will include future years
(up to 20)
 Maps out longer term plan for
community.
 Delayed projects can be kept on plan.
Thank You!
QUESTIONS